Driving Change in Tough Times

Stockholm, 6. May 2009

Bo Øksnebjerg

Todays program

� The challenge of change

� Communicating change

� Driving strategic direction in tough times

� Discussion

What the boss is saying

We will merge with company

XXX

This is a great opportunity for the

company to reach new markets

We have a detailed plan

It’s going to be great!

What are employees hearing

Bla Bla

Bla Bla

Bla Bla

We will merge with company

XXX

What the boss thinks the employees are thinking

This is a great idea!

I will immidiately start planming my

part of this project

I miss a little info – I will find it myself

Perhaps I should also do xxx and yyy

to help the process

What employees actually think!

Oh No! not again!

New markets? Perhaps this is my

chance to get a job in England!

I wonder if this means I will no

longer share my office with Peter

That’s what they said to YYY

company – and then 120 people were

laid off

I’ll bet you this means another

reorganization of our department

After the merger, he will get fired.

Maybe I can get a chance for a promotion

He doesn’t have a clue. He has no

idea what is going on.

They should have done this years

ago – but they never listen to my

advice

They have said stuff like this

before – but it never happens

What employees actually think!

Me!

Me!

Me!

What’s in it for me?

Personal gain

Personal involvement

Inspiring goals

Inspiring leaders

Strong company culture

I’m better off after this

I invented this

I want to follow that guy

I want to make this come true

I feel great here

It’s all about : ”What’s in it for me?”

Source: Bo Øksnebjerg

Change is not linear

Time

Accept

Source: Bo Øksnebjerg

Everybody starts off with a ”Big Bang”

Source: Bo Øksnebjerg

Time

Accept

But it also requires a series of small moves

Time

Accept

Launch of the new strategy

Source: Bo Øksnebjerg

The ’Attention makers’

Time

Accept

Large, coordinated initiatives set the agenda

Source: Bo Øksnebjerg

Everyday changes

Time

Accept

Managers and ’small everyday

changes’ keeps up momentum

Source: Bo Øksnebjerg

Communications

Time

Accept

Communications ’fill the gaps’

Source: Bo Øksnebjerg

The 4 phases to succes

Communicating progressSource: Bo Øksnebjerg

Reactions to a big change process

Inattention

Denial

Fear

Anger Acceptance

Engaged

Responsability

Negotiation

Employee A

Source: Adams 1976

Employees respond later than managers

Manager A Employee B

Inattention

Denial

Fear

Anger Acceptance

Engaged

Responsability

Negotiation

Source: modified from Adams 1976 by Bo Øksnebjerg

Only 4 out of 10 knows the goals of their organization

Imagine if only 4 out of 10 knew that the Apollo project was aiming for the Moon …

The information level is good

A very clear objective

But they see 72 different objectives

”What is the objective for the creation of the new GEOCENTER?”

� MOST SAY: ”Have no idea”

� COPERATION: ”Cooperation”, ”Synergy”, ”Utilize ressources better”

� ECONOMY: ”Cost reductions”, ”Make more money”, ”Rationalizations”

� IDEOLOGY: ””Advance knowledge of the Geosciences”

� VISIBILITY: ”Visibility” , ”Prestige”, ”Bosses that wants brass plates in front of the buildings”, ”Higher profile compared to other research areas”

� POSITION: ”Become a leading Geoscience center in Europe”, ”Create a strong center for geosciences in Denmark”.

� SOLVE PROBLEMS: ”Create a symbiosis and tear down the walls between us”, ”attract more money to geosciences in Denmark”.

What is the colour of the zebras’ stripes?

Employees want information anddirections from their nearest manager

Importance

state 1-5

87%

81%

71%

54%

47%

55%

43%

45%

34%

30%

39%

�0% �10% �20% �30% �40% �50% �60% �70% �80% �90% �100%

Nearest manager

Colleagues

Meetings

Executives

Union

Message boards

Intranet

Employee magazine

Trade press

Newspapers

Radio/TV

4,48

3,84

3,68

3,38

2,77

2,54

2,16

2,04

2,02

2,51

2,32

Source: AC Nielsen

Translate and fit message to and witheach specific target group…

My

picture

While at the same time keeping line of sight…While at the same time keeping line of sight…

The big pictureThe big picture

Manager training and network groups

Please notice

� Beware

� Of

� The

� Powerpoint©

� CEO

� (8 out of 10 CEOs abandon their big change projects)

Source: Post mortem on 20 big change projects, 2007; Bo Øksnebjerg

Beliefs

Values

Assumptions

Visible changes

Cultural changes

Stories

Heroes

SymbolsRituals, rites, ceremonies

Routines and key processesRecognitions / rewards

Status symbols

Management style

Source: Schein, 1992