MANAGEMENT OF CHANGE

- A HBR ARTICLE PRESENTATION -

HOSHEDAR BATLIWALLA

CMBA2 - 1314

"IT’S NOT SO MUCH THAT WE ARE AFRAID OF CHANGE, OR SO MUCH

IN LOVE WITH THE OLD WAYS, BUT IT’S THE PLACE IN BETWEEN WE

FEAR... IT’S LIKE BEING IN BETWEEN TRAPEZES... THERE’S NOTHING TO

HOLD ONTO.“

- MARILYN FERGUSON(1938-2008, AUTHOR – THE AQUARIAN CONSPIRACY)

CHANGE AS A HUMAN PROBLEM

• CHANGE IS NOT JUST A PROFESSIONAL CONCEPT. CHANGE IS A NATURAL PART

OF THE HUMAN CONDITION. IT IS LIKELY THAT PEOPLE REACT TO PROFESSIONAL

CHANGE IN THE SAME WAY AS THEY REACT TO CHANGE IN OTHER ASPECTS OF

THEIR LIVES, SUCH AS MARRIAGE, ACCIDENTS, GROWING UP ETC.

• CHANGE IN ONE ASPECT OF A PERSON’S LIFE WILL HAVE AN EFFECT ON, AND

BE AFFECTED BY, OTHER ASPECTS. REACTIONS TO PROFESSIONAL CHANGE,

THEREFORE CAN OFTEN HAVE LITTLE OR NOTHING TO DO WITH THE ACTUAL

CHANGE ITSELF, BUT MAY BE CONDITIONED BY APPARENTLY UNRELATED

FACTORS.

• CHANGE POSES A POTENTIAL THREAT TO THE ‘KEY MEANINGS’ OF OUR LIVES.

KEY MEANINGS PROVIDE STABILITY AND SECURITY, AND MAKE OUR BEHAVIOUR

MEANINGFUL. EXAMPLES OF KEY MEANINGS ARE OUR RELATIONSHIPS WITH

OTHER PEOPLE, OUR PERCEPTION OF OUR STATUS, OUR MORAL OR RELIGIOUS

VALUES, OUR GROUP ALLEGIANCES, OUR HABITS AND ROUTINES. ANY CHANGE

POSES A THREAT TO ONE OR MORE OF THESE KEY MEANINGS.

THE 8 COMMON ERRORS TO ORGANIZATIONAL FAILURE

• ALLOWING TOO MUCH COMPLACENCY

• FAILING TO CREATE A SUFFICIENTLY POWERFUL GUIDING

COALITION

• UNDERESTIMATING THE POWER OF VISION

• UNDER COMMUNICATING THE VISION BY A FACTOR OF

10

• PERMITTING OBSTACLES TO BLOCK THE NEW VISION

• FAILING TO CREATE SHORT TERM WINS

• DECLARING VICTORY TOO SOON

• NEGLECTING TO ANCHOR CHANGES FIRMLY IN THE

CORPORATE CULTURE

THE CONSEQUENCES

• NEW STRATEGIES AREN’T IMPLEMENTED WELL

• ACQUISITIONS DON’T ACHIEVE EXPECTED SYNERGIES

• REENGINEERING TAKES TOO LONG AND COSTS TOO MUCH

• DOWNSIZING DOESN’T GET COSTS UNDER CONTROL

• QUALITY PROGRAMS DON’T DELIVER HOPED-FOR RESULTS

WHO SAID CHANGE CANNOT BE DONE??

HOW TO DO IT?THE THOUGHT PROCESS

SUCCESSFUL CHANGE MANAGEMENT IS MORE THAN A SET OF ACTIVITIES

OR TOOLS

– IT IS A WAY OF THINKING AND WORKING.

Elizabeth Kübler Ross

CHANGE MANAGEMENT = PAIN MANAGEMENT?

HTTP://JAKEHUBER.FILES.WORDPRESS.COM/2013/01/1-LEADING-

CHANGE-WHY-TRANSFORMATION-EFFORTS-FAIL.PDF

THE EIGHT STAGE PROCESS OF CREATING MAJOR CHANGE

Leaders who successfully transform businesses do eight things right (and they do them in the right order)

ESTABLISH A SENSE OF URGENCY

ACTION NEEDED:

• EXAMINING THE MARKET AND COMPETITIVE REALITIES

• IDENTIFYING AND DISCUSSING CRISES, POTENTIAL CRISES,

OR MAJOR OPPORTUNITIES

PITFALLS:

• UNDERESTIMATING THE DIFFICULTY OF DRIVING PEOPLE

FROM THEIR COMFORT ZONES

• BECOMING PARALYZED BY RISKS

1

FORM A POWERFUL GUIDING COALITION

ACTION NEEDED:

• ASSEMBLE A GROUP WITH SHARED COMMITMENT AND

ENOUGH POWER TO LEAD THE CHANGE EFFORT

• ENCOURAGE THEM TO WORK AS A TEAM OUTSIDE THE

NORMAL HIERARCHY

PITFALLS:

• NO PRIOR EXPERIENCE IN TEAMWORK AT THE TOP

• RELEGATING TEAM LEADERSHIP TO AN HR, QUALITY, OR

STRATEGIC-PLANNING EXECUTIVE RATHER THAN A SENIOR

LINE MANAGER

2

CREATE A VISION

ACTION NEEDED:

• CREATE A VISION TO DIRECT THE CHANGE EFFORT

• DEVELOP STRATEGIES FOR REALIZING THAT VISION

PITFALLS:

• PRESENTING A VISION THAT’S TOO COMPLICATED OR

VAGUE TO BE COMMUNICATED IN MINUTES

3

COMMUNICATE THE VISION

ACTION NEEDED:

• USE EVERY VEHICLE POSSIBLE TO COMMUNICATE THE

NEW VISION AND STRATEGIES FOR ACHIEVING IT

• TEACH NEW BEHAVIOURS BY THE EXAMPLE OF THE

GUIDING COALITION

PITFALLS:

• UNDER COMMUNICATING THE VISION

• BEHAVING IN WAYS ANTITHETICAL TO THE VISION

4

EMPOWER OTHERS TO ACT ON THE VISION

ACTION NEEDED:

• REMOVE OR ALTER SYSTEMS OR STRUCTURES UNDERMINING

THE VISION

• ENCOURAGE RISK TAKING AND NON-TRADITIONAL IDEAS,

ACTIVITIES, AND ACTIONS

PITFALLS:

• FAILING TO REMOVE POWERFUL INDIVIDUALS WHO RESIST

THE CHANGE EFFORT

5

PLAN FOR AND CREATE SHORT-TERM WINS

ACTION NEEDED:

• DEFINE AND ENGINEER VISIBLE PERFORMANCE

IMPROVEMENTS

• RECOGNIZE AND REWARD EMPLOYEES CONTRIBUTING TO

THOSE IMPROVEMENTS

PITFALLS:

• LEAVING SHORT-TERM SUCCESSES UP TO CHANCE

• FAILING TO SCORE SUCCESSES EARLY ENOUGH (12-24

MONTHS INTO THE CHANGE EFFORT)

6

CONSOLIDATE IMPROVEMENTS AND PRODUCE MORE CHANGE

ACTION NEEDED:

• USE INCREASED CREDIBILITY FROM EARLY WINS TO CHANGE

SYSTEMS, STRUCTURES, AND POLICIES UNDERMINING THE

VISION.

• HIRE, PROMOTE, AND DEVELOP EMPLOYEES WHO CAN

IMPLEMENT THE VISION

• REINVIGORATE THE CHANGE PROCESS WITH NEW PROJECTS

AND CHANGE AGENTS

PITFALLS:

• DECLARING VICTORY TOO SOON—WITH THE FIRST

PERFORMANCE IMPROVEMENT

• ALLOWING RESISTORS TO CONVINCE “TROOPS” THAT THE WAR

HAS BEEN WON

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ACTION NEEDED:

• ARTICULATE CONNECTIONS BETWEEN NEW BEHAVIOURS

AND CORPORATE SUCCESS

• CREATE LEADERSHIP DEVELOPMENT AND SUCCESSION PLANS

CONSISTENT WITH THE NEW APPROACH

PITFALLS:

• NOT CREATING NEW SOCIAL NORMS AND SHARED VALUES

CONSISTENT WITH CHANGES

• PROMOTING PEOPLE INTO LEADERSHIP POSITIONS WHO

DON’T PERSONIFY THE NEW APPROACH

8

INSTITUTIONALIZE NEW APPROACHES

MANAGEMENT OF CHANGE

THANK YOU