Colour Template - Operating Principals

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Leading Change
Gemini Skills Workshop
Gemini Consulting
January 1999
Purpose of this session
• To provide an overview of thinking about change:
–And how it is changing.
• To provide an overview of Gemini’s approach:
–History and direction for the future.
• To understand how we lead the change process and increase mobilisation
and learning within the client organisation
• To familiarise you with models, frameworks and vocabulary commonly used
within Gemini and client teams.
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Content of this session
•
Why and how to change:
– Business environments.
•
The Roots of Gemini’s Approach to Change:
– Core principles and tools.
•
Gemini’s Evolving Change Model:
– Capability framework.
– Value chain implications.
– Client examples.
•
Change, Learning and Individuals:
– Psychological safety.
– Emotional cycle of loss.
– Anxiety and aspiration.
– Conditions for capability development.
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V-O - 3 -
Why and how to change
WHY AND HOW TO CHANGE
Truths about change—why it happens, where it happens
External
change . . .
. . . requires
personal
change
. . . requires
organisational
change . . .
–
Technology
– Strategies
–
Economy
– Structures/de-layering
–
Government
– Practices
–
Society
– Processes
–
Customer/competitors
– Products
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–
–
–
–
–
–
Role
Responsibilities
Habits
Thinking
Values
Behaviours
-5-
WHY AND HOW TO CHANGE
Change requires individuals and organisations to think, act
and perform differently
• No matter how well motivated, an individual cannot make change alone.
• And yet, it is the rate of individual change which determines the rate of
organisational change.
• Business change results from a critical mass of individuals participating in a
change process together.
Gemini works with our clients to involve multiple parts of an organisation,
at different levels, to ensure sustainable change.
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WHY AND HOW TO CHANGE
Academics and practitioners are starting to apply thinking
from science about living systems to organisations
• The traditional view of organisations is largely derived from Newtonian
physics:
–Linear, rational, predictable.
–Machine model: made up of parts; parts have limited and controllable impact on the whole.
–Cultures of administration, planning, policy; values of control, hierarchy.
–Role of managers is to control the work of others.
• New thinking from physics is permeating other fields including business,
organisations and leadership:
–Non-linear, unpredictable, butterfly effect.
–Living systems model: interconnected parts; direction of the whole system can be influenced rather
than outcomes controlled.
–Cultures of entrepreneurialism, innovation, experimentation: values of openness, learning.
–Role of leaders is to amplify impact of events which create movement towards desired outcomes.
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WHY AND HOW TO CHANGE
Experimentation and learning are key to leading this
change, control and pressure are not!
Traditional Change Paradigm
Evolving Change Paradigm
•
Change can be managed with a Gantt
chart
•
Change requires leadership of people,
not management of things
•
Change can be planned and controlled
•
•
The consultant or manager is the driver,
manager of the change process
Change requires critical mass to
emerge—where, when and how cannot
always be predicted; seeing and using
opportunities is key
•
The consultant or manager is outside
the process
•
The consultant or manager is part of the
context, involved in the learning
process:
•
Control is the key value
– Client and consultant are learning about different things
•
Creativity is the key value
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The Roots of Gemini’s Approach
to Change
THE ROOTS OF GEMINI’S APPROACH TO CHANGE
Gemini’s change approach is grounded in the practical tools
developed from behavioural change insights by United Research
Behavioural Change Insights
Tools
• Change starts with an individual
• Central role of the Joint Team Member
• Change happens in relationships
• Partnership between JTM and Gemini
consultant; coaching relationship; openness;
trust
• Small groups provide the means to accelerate
• Natural Work Team; Joint Team; RAT
individual change
• Give people frameworks and vocabulary to help
• Emotional cycle of loss; LIFO
them articulate and understand their experience:
then they can let go and move on
• Use structure to build security and confidence
• Charters; milestones; deliverables
about the process
• Make the change tangible ad meaningful
• Business case
• Provide ways of clarifying messy issues;
• PSTB; Brown Papers; RACI
externalise them, make them visible
• Focus on the positive
• Bs before Cs; opportunities not problems;
“and”—not “but”; IWIK, H2; celebrate successes
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THE ROOTS OF GEMINI’S APPROACH TO CHANGE
A Gemini change intervention takes place through a project
organisation
• The project is a joint team, made up of client people and Gemini people
working together.
• Gemini ways of working (processes, values, behaviour) provide role models
of a To-Be culture and ways of working.
• The project provides challenging work—an adventure zone—which requires
client people to work in different ways, to experiment with their approach, in
order to get the results required.
• The project provides a safe place in which to experiment—risks are reduced
through support from a Gemini consultant who has done this before,
through change tools which structure problems and processes.
• Content is used to provide safety, to give client people the confidence to
innovate for themselves, not to provide the answer.
• The vocabulary of the change tools reinforces positive orientation, can-do
attitudes role modelled by the Gemini team members.
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THE ROOTS OF GEMINI’S APPROACH TO CHANGE
Our change approach is evolving to adapt to shifts in client
needs and to incorporate new insights about change
Issues
• H2 apply insights around the behaviour of complex, adaptive systems (such
as people, organisations) to the process of business change.
• H2 address change as a way of life: continuous change rather than a crisis
event.
• H2 address the “corporate big picture” rather than “the project and the joint
team”.
• H2 consult with clients on individual or organisational transformation, when
their main or initial focus is content expertise or strategic insight .
• H2 retain and spread learnings once joint teams dissolve, beyond the joint
team during an engagement.
Understanding “sustainable change” was chosen as an area of focus to
increase Gemini’s differentiation.
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Gemini’s Evolving Change Model
GEMINI’S EVOLVING CHANGE MODEL
The vision for our Change Model emerged from
three key drivers
•
Changing environments of clients:
– Continuous change, driven by technology/market shifts.
– Sustainable change.
– Faster change.
– Increased client capability (analytics, programme design and management, BPR tools).
•
Changes the consulting service market:
– Increasing maturity/sophistication of buyers.
– Highly imitative Big 6 players: increasing in size/skills: commoditising products (e.g. BPR).
– Product/service life cycles shortening.
– New specialist entrants in change management arena: visual identify, communications consultancies.
– People and IT emerging as key integrating factor.
– Lack of differentiation within general management consulting.
– Low awareness and reputation of Gemini.
•
Sources of Gemini success with clients:
– “How we worked with people – up and down and across the organisations.”
– “The way we worked reflected the way work needed to be done in the future: empowered individuals and teams,
values driven, results oriented.”
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GEMINI’S EVOLVING CHANGE MODEL
We are positioning Gemini by putting a stronger emphasis
on a capability-oriented approach to the change process
Traditional View
Evolving View
Change as a process of loss and
acceptance, a crisis-oriented
adaptation to an imposed event,
and resulting in achievement of
a new status quo.
Change as continuously
responding to and shaping a
dynamic environment through
the on-going development of
capability.
Unfreeze
Refreeze
Create
Aspiration
Move
... For superior
results
Capitalize
Capabilities
Develpo
Capabilities
This view is based on an underlying business model of a “systems view”,
rather than a “machine view”, of organisations.
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GEMINI’S EVOLVING CHANGE MODELc
We view capability as the next generation of consulting and
we intend to get there faster than our competitors
+
Impact on
the
Organisation
Capability
+
Results
+
Direction
Setting
Advice
1970s
1980s
1990s
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2000s
- 16 -
GEMINI’S EVOLVING CHANGE MODEL
We view change as a continuous process of
translating aspirations into results . . .
Change as an on-going, capability focused process
Create
Aspiration
Client need:
... for superior
Results
Develop
Capabilities
• Faster change
• Deeper change
• Sustainable change
Capitalise
Capabilities
... through the development and capitalisation of capabilities.
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GEMINI’S EVOLVING CHANGE MODEL
We believe that all living systems, including business
organisations, need an aspirational view on their future …
The process of change - The creation of aspiration
1
Envision the
desired future
2
Clarify the
mid-term “To-Be”
• energizing
• open
• driven by value
creation
• “Strategic direction”
3
Understand the
impact on capability
• “Reason why”
• “Development stretch”
•
To-Be vs. As-Is
•
•
constraint based view
in line with strategic
direction
•
•
•
•
•
•
“Stretched targets”
attractive to financial community
customer driven
innovation focused
explicit and measurable
action focused
Time horizon
… in order to continously adapt to or even shape their environment, and achieve
the fast, deep, and sustainable change required to survive and evolve.
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GEMINI’S EVOLVING CHANGE MODEL
We are therefore developing our own definition of
capability, based on our experience with our clients
Definition of Capability
• The ability to adapt and respond creatively to unforeseen circumstances or
events to achieve a desired outcome.
Definition of Capability at the Organisational Level
• Organisational capability has five dimensions:
–Environmental intelligence.
–Asset management.
–Process.
–Alignment.
–Learning and innovation.
Capability is not competency, it is organisational, not individual:
Competency = individual skills, knowledge, behaviour
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GEMINI’S EVOLVING CHANGE MODEL
The capabilities are defined generally - each
industry has different dimensions for each of the five
Environmental Intelligence
Asset Management
•
To observe your organisation and what is
in and outside the organisation.
•
To understand who your customers are
and their needs (today’s and tomorrow’s
customers).
•
To understand the borders of your
organisation in a dynamic way
(organisation as part of an ecology).
•
To understand an organisation as a
portfolio of assets (HR, knowledge,
financial, physical, brands, customer
relationships, supplier relationships)
•
Which assets are key to your strategy?
– How assets create value for whom (customer,
stakeholders, etc).
– How to allocate resources to assets.
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GEMINI’S EVOLVING CHANGE MODEL
The capabilities are defined generally - each industry
has different dimensions for each of the five(cont.)
Process
Alignment
•
To link actions to produce reasonable output and create
value.
•
To understand critical processes across functions and
use these as key drivers for value.
•
To focus on decision points within processes as a key
point of leverage.
•
•
To build a unified, focused leadership cadre(s).
To produce agreed sense of purpose and common
mission.
To ensure that sense of purpose is lived to align
individual activities to the organisation’s goals.
To align resource allocation, rewards, and performance
management with these goals.
•
•
Learning
•
•
•
•
To reflect, review, understand and act on implications; to
identify critical learning areas.
To capture knowledge and connect it to value (for
customers, stakeholders).
To create space for risk.
To be open to challenge current assumptions and mindset.
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GEMINI’S EVOLVING CHANGE MODEL
Capability can be found by identifying its component
elements
People
Competencies
Tools
Process
Systems Paradigms
Environmental
Intelligence
Asset
Management
Process
Alignment
Learning &
Innovation
Developing capability takes place through the interaction of people in
developing new competencies, designing and using new tools, processes and
systems and in absorbing new paradigms—people are the integrating factor.
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GEMINI’S EVOLVING CHANGE MODEL
Developing capabilities therefore takes place by
intervening at the individual, group or organisational level
Capability Dimensions
The process of change - The development of capabilities
Environmental
Intelligence
Asset
Management
Process
Delivery
Alignment
Learning/
Innovation
Individual
Key Group Organisation
Development Levels
Capabilities can be developed and capitalised on individual, group
and/or organisational levels.
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GEMINI’S EVOLVING CHANGE MODEL
Effective transfer of client learnings from their partnership
with Gemini enables clients to capitalise their capabilities
The process of change - The capitalization of capabilities
Related Client
Issues
Gemini Project
Results of the project:
Capability
Dimensions
Environmental
Intelligence
• Capture the return on
investment in
capabilities in the
specific business area
Asset
Management
Process
Intelligence
• Apply capabilities to
related issues or
organisational units
Alignment
Learning/
Innovation
• Establish new base-line
for a next generation of
aspiration
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GEMINI’S EVOLVING CHANGE MODEL
Market development activities will put a strong focus on the
value-added resulting from capability development
The process of change - The role of Market Development
Client need:
• Faster change
• Deeper change
• Sustainable change
Market Development Perspective
•
Relationship driven
•
Industry and content focused
•
Aspiration- rather than crisis-oriented
MDE Profile
•
•
•
Strong on industry and content
“Experience heavy”
Role model for positive approach
to change
– Aspirational thinking
– Pragmatic and flexible
– Positioning change as a positive challenge
rather than a “must achieve” or a “fix it”
– Linking capability development to issue-based
problem solving and benefits realisation
•
Sound understanding of how change
materialises in organisations, groups and
individuals
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GEMINI’S EVOLVING CHANGE MODEL
An A&D will focus on the creation of aspiration, diagnosing
development needs and creating a developmental experience
The process of change—The role of A&D: Creation of aspiration
1
2
3
A&D Perspective
•
•
•
•
A&D Consultant Profile
•
•
•
Aspiration-driven rather than crisis-driven
– Creating confidence in client people and
tapping into their desire to develop themselves
and their business
Focused on capability gaps
– … as well as process gaps
Mobilising the organisation around aspiration
– … in addition to “Quick Hits”/“Early Wins”
Giving the organisation a taste of the capability
development experience
•
•
Strong on industry and content
Strong intuition: “taste and judgement”
Role model for positive approach
to change, learning and growth
–Strong tolerance for ambiguity
–Aspirational thinking
–Pragmatic and flexible
–Open, not defensive
People-oriented
“Experience heavy”
Leading interventions with a focus on aspiration requires a specific
project approach and consultant profile.
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GEMINI’S EVOLVING CHANGE MODEL
The Change Model approach was used to effectively address the
capability issues of the client
Putting the Change Model into Practice - The logic of A&D
Key issues
Aspirational Picture
Competitive
Profiling*
• Understand
capability profile
of key competitors
• Build first
hypotheses
How do the
competitors manage
their capabilities?
Capabilityfocused
Interviews
• Profile
capabilities in
relation to
competition
• Discuss
hypothesis on
capability
profile with key
groups
• Identify examples,
issues, and best
practices
• Fine tune
hypotheses
Capability Profile
Capability
Workshops
1
AssetManagement
1
ProcessIntelligence
Alignment
Learning
&
Innovation
• Prioritise issues
• Outline next
steps
“Environmental
intelligence”
5
5
1
What
5 issues
capability
have to be
5
adressed?
1
5
1
5
Where are
future competitive
advantages?
The resulting capability profile served as the basis for change strategy and RD design.
* Conducted by Shop/The Institute
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GEMINI’S EVOLVING CHANGE MODEL
Results Delivery will develop sustainable capability quickly
Capability
Dimensions
The process of change - The role of RD: Development of capabilities
Environmental
Intelligence
Asset
Management
Process
Alignment
Learning/
Innovation
Development
Levels
Individuals
Groups
Organisations
RD Perspective
•
RD Consultant Profile
•
•
Creating an experimental environment
– Creating safety, enabling discovery
– “Hot Housing”
– “Rapid prototyping”
– Coach and sounding board on the individual
development level
– Facilitator, content expert and sparring partner
on the group development level
– Methodology expert on the organisational
development level
– “Action Learning”
•
Focused on capability development
– … in addition to problem solving and
benefits delivery
•
Strong on industry and content
Deep understanding of how change
materialises and able to play multiple
roles:
•
“Leaving a legacy”
Strong ability to get things done:
do - reflect - improve (80:20 rule)
– “Pilot fast - learn fast - adapt fast” approach
. . . in addition to issue-based problem solving and benefits delivery.
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GEMINI’S EVOLVING CHANGE MODEL
At Lidl & Schwartz, Gemini Consulting developed the core
capabilities to implement and run a completely new organisation
Putting the Change Model into Practice - The Lidl & Schwartz example
The Client Situation
The Approach
• Lidl & Schwartz is a
German, 30’000 employee,
DM 21B sales, hypermarket
retailer
• A capability-focused A&D
quickly discovered that
wide-scale organisational
change would be required
• Their revenues had doubled
over five years, but there
were worries whether they
would be able to stay on the
fast track
• The RD delivered against
three objectives:
• Therefore, their original
interest (1996) was to get
consulting support on
organisational design and
alignment - areas they
perceived as critical for
future success
– Build the appropriate systems
and processes for rapid
growth
– Realign the organisation and
develop the necessary
capabilities to excel in the
changed organisation
– Develop a growth platform
• The whole RD was based
on an extremly close and
trusting client relationship
The Results
• A new organisational
structure was
implemented
– … based on a competency
centre model
– … with a process-oriented
instead of a functional focus
• The new managers were
trained, coached, and
educated on and off-the-job
– … to successfully run the
business in the new
competence centres
• As much as possible
leading edge Gemini retail
industry knowledge was
transfered to the client
Changing the client by using a capability-driven approach created client enthusiam and let to a m$
10+ sale for Gemini.
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Individual Change and Learning
INDIVIDUAL CHANGE AND LEARNING
Successful change is a continuous people-focused process
. . . think of it as marketing to internal segments
• Understand the needs of different populations or segments in the
organisation
• Understand how to communicate and engage the attention of different
segments
• Lots of feedback on progress
• Positive reinforcement
• Repetition: try it, fix it, try it again
• Interim milestones
• Frequently celebrate successes
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INDIVIDUAL CHANGE AND LEARNING
Implementing change requires understanding the dynamics
of anxiety and the need for psychological safety
• The problem of organisational learning and
transformation is to overcome the negative effects of
past carrots and sticks.
• To make people feel safe in learning, they must
have a motive, a sense of direction and the
opportunity to try out new things without fear of
punishment.
Source: “The Dynamics of the Green Room”, E. Schein, Sloan Management Review, 1993.
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INDIVIDUAL CHANGE AND LEARNING
Change involves letting go in order to move on—this will
always be a personal choice, and is not easy to achieve
Rational
(c. f. Kurt Lewin)
Unfreeze
Move
Refreeze
Emotional - “Me”
(c. f. Bridges)
Endings
Transitions
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Beginnings
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INDIVIDUAL CHANGE AND LEARNING
Our role is to help others through change...
•
Clarify Endings
–
–
–
–
•
–
–
–
Listening and accepting
Focusing: ask questions to pinpoint real issues
Restating: hearing it restated
by someone else can help a person
to clarify their real interests
–
–
–
–
Signal shift-move the conversation on
Explain purpose of change
Link to his/her concerns
Summarise: bottom line
–
–
–
–
“Were my comments clear?”
“What are your ideas for the future?”
“These are my ideas”
Agree to finite steps
Share Transition
–
–
–
–
•
Disengagement
Disorientation
Disidentification
Disenchantment
Explain
Confront/identify
Neutralise
Transfer
Engage Beginnings
–
–
–
–
Vision & Plans
Communications
Symbols & ceremonies
New Starts
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INDIVIDUAL CHANGE AND LEARNING
… and one step towards helping people in change is to give
them what they need in such situations
What people in change (usually) get:
What people in change want:
• Autocratic Behaviour
• Empathy
• Avoidance
• Information
• “Rah rah”
• Ideas
• Uncertainty
• Certainty
• Insecurity
• Security
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iNDIVIDUAL CHANGE AND LEARNING
People need Information and secuirty because they may
experience a sense of loss during change
•
Security
Control, knowledge of what the future holds and place
in the organisation
•
Competence
What to do, how to manage (can be embarrassing)
•
Relationships
Familiar contracts (customers, colleagues, managers,
group membership)
•
Sense of direction
Understanding of where you are going, why, how
•
Territory
Area that ‘belonged’ to you (work space,
responsibilities)
This sense of loss can generate an emotional cycle which may stall in a
number of unproductive phases before acceptance of a new direction is
complete.
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INDIVIDUAL CHANGE AND LEARNING
Needs and responses from people vary during different
emotional stages experienced in a changing environment
The Emotional Cycle of Organisational Change
Satisfaction
Certainty
Confidence
Optimism
Hope
Time
Pessimism
Doubt
This cycle traces the loss of hope, expectation and an envisioned future and the
acceptance of a different set of expectations.
Different people will be in different places at different times.
Source: Daryl Conner, adapted from Kubler-Ross’s Emotional Cycle of Loss: see “On Death and Dying”.
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INDIVIDUAL CHANGE AND LEARNING
Understanding the emotional cycle can help us deal with
the change process
Phase 1:
Uniformed optimism –
Certainty
• Honeymoon period
Phase 2:
Informed pessimism –
Doubt
• Problems surface, not all solutions are obvious
• Morale drops (“Why did I ever get involved in the first place?”)
Phase 3:
Hopeful realism –
Hope
Phase 4:
Informed optimism –
Confidence
Phase 5:
Rewarding completion –
Satisfaction
• Ideas look great on paper
• All major obstacles appear to have been anticipated
• A turning point occurs, a sense of accomplishment replaces a sense
of pushing against problems
• Problems have not all disappeared, but people’s hopes are based on
realistic data
• Optimism continues to develop
• A fresh burst of energy appears
• Successful change has been made
• Official change effort is complete
• The outcome is frequently much different from that anticipated in
Phase 1
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INDIVIDUAL CHANGE AND LEARNING
We can help people to change by responding appropriately
to their current state
• People in contentment or denial are not frozen:
–Events will move them soon enough; little can be done to hasten the day; rational problem-solving will
delay it.
–Make presence felt and accepted by acting appropriately; support their right to stay there as long as
they wish.
• To mobilise energy, we need to work with people in confusion or renewal:
–Seeds of success are sown in confusion and sprout in renewal.
• To get past resistance, people have to express it out loud.
• Letting go of the past is a pre-condition for moving forward:
–Letting go happens in its own time.
• The urge to hold on is to protect sense of identity, certainty, meaning:
–No unfreezing techniques are likely to help.
–Realistic patience and a sense of an appropriate time.
–Scale must underlie and guide the change process itself
• Any task may shake people into denial; respond by keeping talking and
waiting it out.
• People need support when in anxiety, not admonitions to hurry up and
change faster.
Source: Marvin Weisbord: op cit.
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V-O - 39 -
You cannot make
anybody change!
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