1. Implementing Effective Change Management Bill Reeb, CPA, CITP Dom Cingoranelli, CPA, CMC Succession Institute, LLC 1 ©2010 Succession Institute, LLC (SI). All rights reserved. This document and the information contained herein is PROPRIETARY and CONFIDENTIAL and may not be not be duplicated, redistributed or displayed to any other party without the express written consent of SI.

2. Objectives Recognize why many organizational change projects are considered failures Identify a model to help assure successful implementation of change within your organization Recognize what you can do to increase commitment to your project 2

3. Change and Failure Up to 75% of change initiatives do not produce the results intended, and Many produce unintended consequences, which usually are not desirable But WHY? 3

4. Why, Indeed “Resistance to change” – Ambiguity about the future Why now? I’m comfortable with what we’re doing What do I have to give up? How badly will this affect me? What do I need to learn to be successful? Can I learn it satisfactorily? What if I don’t? – Mistrust/distrust of management – “Flavor of the Month” syndrome – Already maxed out—no energy left 4

5. Why, Indeed Lip service at the top Inadequate communication “Poof” empowerment (or lack of empowerment) Poor follow-through Lack of publication of successes Inadequate (or nonexistent) accountability Poor leadership/delegation/supervision 5

6. Kotter’s Eight-Step Process: 1.Increase urgency (among the masses) 2.Build the guiding team (with the authority, standing and skills to get it done) 3.Get the vision right (clear, simple, with strategies to get there) 4.Communicate for buy-in (simple messages many times) Source: Succeeding in a Changing World--Kotter 6

7. Kotter’s Eight-Step Process: 5.Empower action (remove the barriers) 6.Create short-term wins (select initial parts carefully) 7.Do not let up (continually monitor, adjust, queue up the next parts) 8.Make change stick (new culture—norms of behavior, shared value developed through consistency of action) Source: Succeeding in a Changing World--Kotter 7

8. Building Commitment for Success Dealing Effectively with Questions and Objections 8

9. Getting Buy-In Anticipate the “tough” questions you will encounter Be prepared to overcome the ways people will try to kill your good ideas Beef up your communication and influencing skills Win over their minds and their hearts 9

10. Four Types of Attacks You Must Address 1.Create fear about your plan 2.Find ways to delay your plan 3.Create confusion about your plan 4.Ridicule of the proponents of the plan Source: Buy-In-Kotter and Whitehead 10

11. Dealing with These Attacks Allow the naysayers to tell you what they think Provide short, clear, easy-to-understand responses to their statements Show respect to everyone Watch the large group for reactions—don’t focus on the few naysayers Prepare thoroughly—notes, rehearsals Source: Buy-In-Kotter and Whitehead 11

12. The Bottom Line Successful initiatives require broad commitment. Broad commitment requires appropriate influence behaviors Appropriate influence behaviors require good communication Do NOT underestimate the need for relentless, robust, and varied communication 12

13. What Do We Need to Do Differently What you are doing differently today that is making a positive difference? How has our economy changed your: – Client interactions and frequency – Services – Follow-up (client satisfaction assurance) – Operations (budgets, planning, etc.) – Accountability – Accepting engagements (timing, trough, pricing), etc. 13

14. Group Discussion Each Firm Needs to Be Ready to Talk About: What change project have you recently completed?, or What change project are you currently in the middle of or just about to launch?, or If you do not have a change project on the drawing board, why not? Answer the following questions: – What is/was the change project about? – How is it working? – What did you learn or could you have done better? 14

15. Thank You For Your Time! Succession Institute, LLC Phone: 512-338-1006 Dom Cingoranelli, CPA, CMC (ext 104) Bill Reeb, CPA.CITP (ext 102) Email: dom@successioninstitute.comdom@successioninstitute.com Email: bill@successioninstitute.combill@successioninstitute.com Website: www.successioninstitute.comwww.successioninstitute.com ©2010 Succession Institute, LLC (SI). All rights reserved. This document and the information contained herein is PROPRIETARY and CONFIDENTIAL and may not be not be duplicated, redistributed or displayed to any other party without the express written consent of SI. 15