change management in hard times
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1
Change Management in Hard Times
Some Basics, Some Differences, Some Tools, Some Tips
Photo Courtesy of the FDR Library
© Fred Nickols 2013
2
The Agenda
Some Change Management Basics
Some Differences (The Impact of Hard Times)
Some Tips (and Some Tools Along the Way)
Q & A
© Fred Nickols 2013
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Some CM Basics
Change Management Defined The Change Problem A Psychological View The EL PASO Model A Couple of Cycles
© Fred Nickols 2013
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What isChange Management?
A control mechanism A body of knowledge An area of professional
practice A managerial task (reactive
& proactive) Managing organizational
impact Managing personal impact
Others Self
© Fred Nickols 2013
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The Change Problem
CurrentState
FutureState
(Unfreeze) (Refreeze)
Transition Path
(Change)
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Force Field Analysis
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A Psychological View
CurrentState
FutureState
(Letting Go) (New Beginnings)
Transition Path
(Neutral Zone)
© Fred Nickols 2013
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CM: An Endless Loop
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A Positive Cycle
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10© Fred Nickols 2013
Life Cycle
StartupGrowth, Chaos &
OrganizationSuccess Institution Ostrich Demise
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Some Differences Harsh and unforgiving
economic environment Number of externally-
imposed changes goes up Rate of externally-imposed
changes goes up Urgency becomes crisis Emphasis on “Just do it” Long-term sacrificed to
short-term Unintended consequences
multiply
Downward spiral in performance
Intense focus on financials Operational & behavioral
domains neglected Quantitative displaces
qualitative Authority and decision-
making centralizes Politics become fierce Stakeholders neglected
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Some Skill Sets & Tools
Political
Analytical
People
System Process Business
The Unfreeze-Change-Refreeze Model
Force-Field Analysis Four Change
Management Strategies The Acceptance Process The Goals Grid The GAP-ACT Model Models, Models, Models
Skill Sets Tools
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Tip #1
Beware those Unintended Consequences
© Fred Nickols 2013
Do We Want It?
Do We Have It?
YesNo
Yes
No
I
AchieveII
Preserve
III
AvoidIV
Eliminate
The Goals Grid
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Tip #2
Avoid Carelessness & Over-Confidence
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Tip #3
Move Surely But not Necessarily Swiftly
© Fred Nickols 2013
Execution
Strategy
Flawed Sound
Sound
FlawedDoomedfrom the
Beginning
ABotched
Job
Flirtingwith
Disaster
AFightingChance
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Tip #4
Don’t Sacrifice the Long-Term View
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Facets of Change
Structure Strategy Systems Processes Culture
People
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Tip #5
Adapt Your Approach to Fit the Change at Hand
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Elements
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Tip #6
Visualize Your Organization and the Changes in and to It
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An Enterprise View
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The Big Picture
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Tip #7
Understand All Three Domains of Performance
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Performance Pyramid
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Return on Equity
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Load Rate
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Changing Behavior
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The Mix of Work
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GAP-ACT (Target) Model
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Tip #8
Get Good Counsel
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Tip #9
Use a Mix of CM Strategies
© Fred Nickols 2013
Rational-Empirical Persuasion based on communication
and incentives Normative-Reeducative
Redefining norms and values, and developing commitments to new ones
Power-Coercive (Directive) Exercising authority and imposing
sanctions Environmental-Adaptive
Shifting the burden
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Strategy Mix Factors
Scope & Scale of the Change Degree & Intensity of Resistance Size of the Target Population Size of the Stakes The Time Frame Available Expertise Direction of Dependency Degree of Urgency
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Tip #10
Share, Share, Share; Listen, Listen, Listen
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Tip #11
Do Some Homework and Get Connected
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Tip #12
Break Down Boundaries and Don’t Stand on Formalities
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Tip #13
Don’t Make Slashing Staff Your First Move
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The Math
Do the Math 2000 employees Average salary =
$75K Total payroll = $150M Reduce staff by 10% 1800 employees Savings = $15M
Do it again Total payroll = $150M Across the board pay
cut of 10% Average salary =
$67.5K 2000 employees Savings = $15M
© Fred Nickols 2013
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Tip #14
Refocus and Reallocate Resources
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Tip #15
Manage the Emotional Reactions
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The “Natural” Process
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A Managed Process
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Obstacles to Buy-In
Don’t like change Uncomfortable with
uncertainty Negatively affected Like things the way they are Perceived breach of
contract Aren’t persuaded as to the
need for the change Low tolerance for ambiguity
Unclear expectations Too much change Too fast Ethical clash Been burned before Don’t like the way it’s being
managed Cumulative impact Unfavorable balance of
consequences
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Indicators ofLack of Buy-In
Criticizing & ridiculing Distorting and manipulating
information Blaming or accusing Raising barriers Undermining others Dealing in rumors Arguing vs reasoning Outright sabotage
Failing to follow-through “Malicious compliance” Foot dragging Playing dumb Hoarding information Not supporting others Taking a hands-off or stand
clear posture (letting it fail)
© Fred Nickols 2013
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Tip #16
Engage and Involve Your People
© Fred Nickols 2013
Sponsors Architects Champions Straw Bosses Envoys Brokers Mechanics Pawns
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Employee Engagement
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Energy Equations
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Tip #17
Hone Your Political Skills
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Tip #18
Pay Attention to ALL Your Stakeholders
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Tip #19
Encourage Divergent Views
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The Question
How do you manage change?
(In Hard Times or in Good)
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My Answer
© Fred Nickols 2013
You don’t.
Not in good times or bad.
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What You Can Do…
Jump in Stay focused on mission
and purpose Build a team Maintain a flat structure Pick high energy people Toss out the rulebook Shift to short-interval
scheduling and informal reporting
Set flexible priorities Treat everything as
temporary Ask for volunteers Get a good “straw boss” Give the teams what they
ask for – except authority Concentrate dispersed
knowledge
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More You Can Do…
Be the change… Take everything at face value
(don’t second guess) Give everyone the benefit of
the doubt Whenever possible,
collaborate, don’t dictate Be open to influence Get good help
© Fred Nickols 2013
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The Tips: A Recap Avoid unintended
consequences Avoid carelessness & over-
confidence Move surely, not necessarily
swiftly Avoid sacrificing the long-
term to the short-term Adapt your approach Visualize your organization
and changes to and in it Map and understand all
three domains Hone your political skills
Attend to all stakeholders Use a mix of strategies Share, share, share; listen,
listen, listen Do your homework Break down boundaries Don’t cut staff first Do the math Refocus & reallocate
resources Engage and involve your
people Manage the emotions
© Fred Nickols 2013
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Remember…
Change = Opportunity Change is low risk for many people You can’t go wrong trying to help Change is high payoff – if you pull it off A skeptic brought around is invaluable People don’t resist change per se Change management is very situational There are no OTC or “vanilla” approaches The task is to bring order to a messy situation,
not pretend that it’s already well organized The task is as much a matter of leading people
as it is one of managing change
© Fred Nickols 2013
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Further Reading
Managing Transitions by William Bridges
www.skullworks.com
Change Management 101: A Primer
Change Management in Hard Times
A Change Management Bibliography
© Fred Nickols 2013
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Q & A
© Fred Nickols 2013
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Contact Information
Fred Nickols
Managing Partner
Distance Consulting, LLC
(740) 504-0000
fred@nickols.us
www.nickols.us
“Assistance at a Distance”SM
© Fred Nickols 2013
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