Paul EVANS
The Shell Chaired Professor of Human Resources & Organisational
Development, Emeritus
INSEAD Fontainebleau, Singapore & Abu Dhabi
KL’s Ledertraef, Kolding, 10 September 2014
Ledelse og forandring
Managing Culture Change
Overview
• Two introductory
remarks …
• 7 lessons for leaders
about managing
culture change
Paul Evans
How do countries
score on Talent
Competitiveness* ?
Denmark is
#3 in the
world
(out of 104
countries)
* See http://global-indices.insead.edu/
Paul Evans
Verden har forandret sig
Welcome to the 21C world …
… where competing, winning and even keeping
your nose above the water means
BOTH-AND rather than EITHER-OR
Welcome to the
world of Dualities
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Michael Porter got it wrong
• Strategy = a choice on how
you are going to compete
• Either MARKET
DIFFERENTIATION or LOW
COST
• But firms were finding ways
of doing things BETTER &
CHEAPER & FASTER
Paul Evans
Faa mere ud af
det du har
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7 LESSONS
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How about CAP?
Change
Acceleration
Process
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The Quality
of the analysis
Effectiveness
Acceptance
of the decisions
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GE’s Change Acceleration Framework
Proprietary to GE; used with permission
Leading Change
Creating A Shared Need
Shaping A Vision
Mobilizing Commitment
Current
State
Transition
State
Improved
State
Making Change Last
Monitoring Progress
Changing Systems & Structures
Paul Evans
Change LESSON # 1:
Spend almost as much time managing
the PROCESS of change as you do in
managing the CONTENT of change
NB: You can delegate some of the Content
challenges, but you cannot delegate the
Process challenges
Paul Evans
Change LESSON # 2:
There is too much change …
… and not enough
CONTINUITY in change
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McKinsey study on why change programs
don't produce change
 Unclear or wrong goals or vision
25%
 Insufficient communication
and motivation
35%
 Inability to sustain change
and implementation
40%
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How do you provide continuity in change?
Provided by
ambitious,
clear,
understood
strategic
aspirations !
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Shared Strategic Aspiration or Vision:
What Makes a Good One?
HEAD
People must be able to understand the vision.
• Clear
• Concrete
HEART
People must be inspired by the the vision.
• Compelling
• Challenging
HANDS
People must do something because of the vision.
• Capabilities
• Course of action
Paul Evans
Change LESSON # 3:
Make sure that you agree on
an ambitious strategic
aspiration …
… and that this appeals to the
Head, the Heart, and the Hands
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Change LESSON # 4:
“People don’t resist change.
They resist being changed.”
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What happens if
we DO change?!!
What happens if
we DON’T change???
Threat
Opportunity
Short
Term
1
3
2
4
Long
Term
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Keep the “tipping point” in mind
Innovators Early Adopters Early Majority Late Majority
Resisters
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A Strategy for Change
Resistance
Low
High
Critical Mass
High
The Silent Majority
Search for Champions
Bandwagon Effect
Innovators
Holdouts
Influence
Quick Wins
Low
Push to sidelines
If the necessary initial support is not present, then you
may need to rethink the change and its strategic aspirations
Paul Evans
Change LESSON # 5:
Focus early on visible quick wins
through the innovators &
champions.
Remember that the “silent majority” will be
more influenced by what their friends are
saying than by what you are saying.
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The S-curve dynamics of transformational
change
Desired
Behavior
Change
“Words”
Behaviors
Time
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Yes
???
Empowering the
champions
CAPABLE?
No
Outplace
Sideline
Create new
organizations
Train, coach
Low
High
WILLING?
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King Louis
Louis V. Gerstner Jr.
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Change LESSON # 6:
Develop a pipeline of
leaders with the competences that
match your strategic aspirations
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Back to the basics …
How do you develop people?
How do you develop leaders?
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Relationship
with a mentor
Learning from
mistakes
Experience
Responsibility
CHALLENGE!
Coaching
Education
Providing
feedback
Training
Support
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MANAGING
THE RISKS
PROVIDING
CHALLENGE
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Change LESSON # 7:
Build teamwork throughout
the organization.
Redefine jobs to reflect teamwork
oriented to borgerne.
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What gets you fired …
and what gets you promoted
30%
The Development/
Project Role
70%
The Operational
Role
Strategy, satisfaction of the needs of
citizens, development projects
(EXTERNAL)
INTERNAL development
(e.g. cost reduction; digitalization)
Leverage and linkage across the
organization (HORIZONTAL)
Uncompromising attention to
getting the right people in the right
places at the right times
Clarity of objectives and areas of
accountability
Coaching and developing people
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A Summary
1. Spend time as a management team managing the PROCESS
2&3. Continuity in change in provided by an ambitious, clear,
communicated STRATEGIC ASPIRATION
4.
People don’t resist change; they resist being changed
5.
Focus on visible quick wins through innovators and
champions. The “silent majority” will be convinced by their
friends
6. Develop a pipeline of leaders with competences that match
your strategic aspirations. Use Challenge + Coaching.
7. Build teamwork throughout the organization – Build the
necessary “split egg” mentality.
Paul Evans
Paul Evans