leading strategic change (black and gregersen model) by dr. chee kim loy assoc. professor, ubd
TRANSCRIPT
LEADING STRATEGIC CHANGE
(Black and Gregersen Model)
byDr. Chee Kim Loy
Assoc. Professor, UBD
“70% of organizations that seek strategic change fail”
Black and Gregersen, 2003
Some Salient Facts about Strategic Change
• Change has never been easy since time immemorial
• Humans are biologically hard-wired to resist change – wired to survive, so hang on to what has worked!!
• The pace, size and complexity of change are greater than before
• Past successes at managing change is no guarantee for dealing with future changes
Two Major Approaches to Leading Strategic Change
• “Organization in” approach– To strategically change your organization, you
must identify all the organizational levels ( i.e. structure, processes, functions, etc.) you must pull in order to change the organization so that individual change will follow
• “Individual out” approach– To strategically change your organization, you
must first change individuals
“Individual Out” Approach
• Unlocking individual change starts with and ends with the mental maps people carry in their heads - on how they see the organization and their jobs
• Successful strategic change requires a focus on individuals and redrawing their mental maps – i.e. overcoming or break through their ‘brain barrier”
Crux of the Challenges: The Three Brain Barriers
• Why, when opportunities or threats stare people in the face, do people fail to see the need to change?
• Even when people see the need, why do they often still fail to move?
• Even when people move, why do they fail to finish – not going far or fast enough?
Distinctive Features of B-G Model
• A simplifying and focused approach based on the rationale– that something is practical only if we can
remember and recall it; and,– Achieving 80% of the desired results quickly
is much better that never attaining 100%;– 80% of the targets could be achieved by 20%
of the key factors!!– The key factors come from mastering the
fundamentals of strategic change
The Fundamentals of Strategic Change
• Stage 1: Do the right thing and do it well.
• Stage 2: Discover that the right thing is now the wrong thing!
• Stage 3: Do the new right thing, but do it poorly at first.
\• Stage 4: Eventually, do the new right thing
well ( i.e. back to Stage 1 again)
DoneWell
DonePoorly
Right Thing Wrong Thing
STRATEGIC CHANGE MATRIX
Stage 1 Stage 2
Stage 3
CONCLUSION
“The fundamental process of change captures 80% of the strategic change but to achieve the results we need to confront the three brain barriers!!”
THE THREE BRAIN BARRIERS
FAILURE TO SEE!!
THE FIRST BRAIN BARRIER
DoneWell
DonePoorly
Right Thing Wrong Thing
STRATEGIC CHANGE MATRIX: FAILURE TO SEE
Reaction#1Deny the new reality
Reaction#2: Do even more of the old right thing!
WHY FAILURE TO SEE?
• Blinded by the light of what we already see!– History of success (or customary practices)
that work well creates mental maps in us which filter out anything that does not fit our mental maps
• These mental maps keeps people from seeing impending threats & opportunities; hence make no efforts to change!!
THE KEYS TO ‘SEEING’
• CONTRAST, and
• CONFRONTATION
– Leaders have to confront their people with the key contrasts between the past, present, and the future
CIRCLES OF CONTRAST
SHARP CONTRAST!! VERY NOTICEABLE
CIRCLES OF CONTRAST
CONTRAST LESSENS…LESS NOTICEABLE
Why People Can’t See the Contrast?
• In real life, organizational settings are very complex. There are many things to look at and people selectively focus on elements form the past and present that are similar, rather than focus on elements that are different.
• They ignore the key contrasts!!
CONFRONTATION
• To force people to change, leaders must confront their people with the key contrasts between the past, present and future
• Contrast and confrontation are necessary to overcome the first resistance to change – the failure to see !!
HIGH
LOW
LOW HIGH
BREAKING THROUGH THE SIGHT BARRIER
BREAKTHROUGH!!
CONTRAST
CONFRONTATION
p
PARADE
GARBAGE CAN OLD SHOW
!!!
TWO COMMON MISTAKES
• Comprehensive mistake– Trying to focus on too many factors when it is
sufficient to just concentrate on the core 20% of the factors that contribute to 80% results
• “I get it” mistake– Forgetting that you are able to see it because
you have put in a lot of resources and gone through many processes before you see it. Now you expect your staff to see it by justing pointing to them!!
HOW TO CREATE HIGH CONTRAST?
• Focus on the core 20% of what is different
• Enhance ( or even slightly exaggerate! ) the simple description between the old and the new
• Create visual images or pictures of the old and the new, so that the contrast is understood as more than mere words
HOW TO CREATE HIGH IMPACT CONFRONTATION?
• Repeat the messages of the old and new mental maps over and over and over again!
• Create high impact and inescapable confrontations– Focus on core contrasts, the key differences– Make sure it involves as many of the senses as
possible– Ensure ( physically!) the people cannot avoid the
experience
FAILURE TO MOVE!!
THE SECOND BRAIN BARRIER
WHY FAILURE TO MOVE?
• First, even when we see the old right thing no longer works, we still don’t move if the new mental map with its destination and path is not clear (“ Articulate the vision”)
• Second, when the new vision is clear, it is easier for people to see all the specific ways in which they will be incompetent and look stupid – ways that they will do the right thing and do it badly!
THE KEYS TO MOVING
• Not just see the new destination clearly but you must help them believe in the path that will take them to the destination– Make sure others see the destination or
targets clearly– Give them the necessary skills, resources and
tools to reach the destination– Deliver valuable rewards along the journey
Are people who see but still fail to move just plain dumb??
DoneWell
DonePoorly
Right Thing Wrong Thing
STRATEGIC CHANGE MATRIX: BREAKING THROUGH THE MOVEMENT BARRIER
Stage 3
Old right thing becomes wrong
Can’t instantly be good atthe new right thingX
They are not stupid!
• They do not want to look or feel stupid by making the change
• Especially, with a work culture in which mistakes were punished and learning was rarely rewarded.
• They preferred to be competent in the wrong thing than incompetent at the right thing!!
THE SOLUTION …..
• They must be led to believe in a path that will take them from doing the right thing poorly to doing it well.– They must see the destination or target
clearly ( not you the leader only!)– Give them the skills, resources and tools so
that they believe they can do it! Walk the path!!
– Deliver valuable rewards along the journey. They value the outocmes.
A Note on Rewards
• Money? Yes and No
• ARCTIC Values– Achievement (accomplishment, competition)– Relations (approval, belonging)– Conceptual/ Thinking (problem solving,
coordination)– Improvement ( growth, exploration)– Control (competence, influence)
FAILURE TO FINISH
THE THIRD BRAIN BARRIER
Organizational Change or Transformation
• Organizational change is fundamentally meaningful when the majority of the people in the organization have changed – think differently and act differently
WHY FAIL TO FINISH?
• TWO PRINICPAL FORCES– People Getting Tired
• Change requires energy and effort• The returns to investment for these extra inputs
may not be satisfactory• Vapour of faith vs Concreteness of past practices
– People Getting Lost• Major transformations of people and organizations
are long journeys• Lost sense of direction over time and uncertainties
set in; hence hard to press ahead
KEYS TO FINISHING
TWO FACTORS• PROVIDING CHAMPIONS
– 110% Champion!– Be close to the action– Look for the desired efforts not results– Counteract negative consequences with positive ones
• CHARTING PROGRESS– Monitoring and communicating of progress– ‘Micro-level’ monitoring and feedback
SUMMARY
DoneWell
DonePoorly
Right Thing Wrong Thing
STRATEGIC CHANGE MATRIX: THE THREE BARRIERS
Stage 1 Stage 2
Stage 3
See?
Move?
Finish?
THREE KEY PRINCIPLES TO IMPLEMENT SUCCESSFULLY
• CONCEIVING
• BELIEVEING
• ACHIEVING
DoneWell
DonePoorly
Right Thing Wrong Thing
THE CBA’s OF STRATEGIC CHANGE: THREE PRINCIPLES
Believe
Achieve Conceive
TYPES OF CHANGE