Dennis Hightower Case
The Situation
• Disney Europe was successful but
corporate HQ thought they could be
more successful
• Euro community changing
• Dennis Hightower selected
– Hightower’s background
• Military (Europe)
• Consulting
The Situation (contd.)
• Disney wants to increase profitability of
their European operation
– Move to consolidate/unify country
operations
– Problem is to grow an already profitable
business
Burbank’s Perspective
• Europe a “golden opportunity”
• Good past performance but EEC
opens new opportunities
• European theme park will open doors
for consumer items
• Decision to create Paris HQ and hire a
European head
Country Manager’s
Perspective
• Proud of past success
• New level of control unknown before
• Possible perception of a “condemnation of
previous performance”
• Feeling “sandbagged” having opened up to
Hightower when he interviewed them
• Ostensible approval of Hightower’s selection
by three
Hightower’s Perspective
• “I’m the boss they don’t want”
• Burbank wants me but has high
expectations
• Somewhat embarrassed by having
interviewed as a consultant & now
coming as boss
• “I’m stuck in the middle”
Potential Barriers to
Change
• Stereotypes of Americans vs
Europeans
• Cultural differences
• National differences
• Personal status issues
– Tenure
– Relationship with the Disney family
Hightower’s Task
• Produce a strategic plan in 90 days
• To do that he must:
– Learn the territory
– Obtain “buy-in” from the country
managers
– Develop and write the plan
• While overcoming the barriers
Three Approaches
•
•
•
•
Just do it
Collective approach with the CMs
Individual approach with the CMs
Combination
Just Do It
• Easiest and fastest
• But least likely to produce “buy-in” and
cooperation in implementation
• And he’s got a lot to learn about the
territory
Collective Approach
• Convene a meeting with all the CMs
• Pros
– Set tone & agenda at once with no rumors
– All on “same page” & “one for all/all for
one
• Cons
– Might become an “Us vs Him” situation
– He lacks knowledge and is an outsider
Individual Approach
• Meet with each CM individually
• Pros
– Can question and learn
– Can “pollinate” with his ideas
– Forge personal connections
• Cons
– Time-consuming & keeps him away from HQ
– Raises the issue of who/where to start
Combination
• Question of time
• Could dilute the positives of either
approach
The Older CMs - Keep?
• Temptation to eliminate the barriers &
get young blood
– A new broom sweeps clean
• Situational approach called for
– Never throw the baby out with the bath
What he did
• Non-stop tour of the territory spending
4/5 days with each CM by seniority
– Learned the territory/built personal
credibility
• Developed his strategy
– Including at least one or two of their ideas
• Then held general meeting presenting
their “jointly developed” strategy
– Each CM saw himself as a Change Agent
The Country Managers
• Over the next year
– replaced four CMs based on adaptability
– 3 of the over 60 crowd remained
– French Mgr delicately “elevated” to senior
consultant role
• In his first year, consumer products
doubled bottom line
Lessons
• Perspectives - we all see through
different eyes
• Constant need to balance perspectives
– Consider the feelings of all
• One way to overcome resistance is to
co-opt it
– Make resisters into change agents
Roles in Change
• Jick - four roles to perform change
– Sponsor - suggesting or demanding the
change
– Agent - the person actually ordering
change & making it happen
– Target - recipient of the change
– Advocate - cheerleaders/promoters
Roles in Change
• Dalziel & Schoonover
– Inventor - big picture modeler
– Entrepreneur - identifies new possibilities
– Integrator - forges alliances to gain
acceptance
– Expert - provides technical knowledge &
skill
– Manager - delegates and runs others
– Sponsor - ensures support and resources
The Sponsor’s Role
• Too often adopt the “spinning top”
approach
• Effective sponsors remain involved
– They initiate
– They follow
– They reinforce
– Until agents become sponsors
– And even the targets become sponsors
The Change Agent
• Ideally becomes a sponsor
• Establishes close relationship with
targets
– dilemma of change that really hurts people
• Must be a Trainer/Teacher
• Great human sensitivity called for
History of Change Agent
Concept
• Term first referred to external help
– The “hired gun”
• Has evolved to an internal function
– Either integral to normal responsibilities
– Or as a “project”
– Change teams or change agent positions
Pros & Cons
• Pros
– Internal agents know the territory & culture
– Communication is usually easier/better
– Trust is usually there
• Cons
– May be difficult to take the hard decisions
– Time limits when you have a “regular job” too
– “Prophet without honor” syndrome
Cascading Change the Ideal
• Begins with sponsor’s convincing &
attractive vision which includes
appropriate sense of urgency
• Results in buy-in at all levels
– The good and the bad are shared
• Everyone sees themselves as change
agents
Northwest Airlines Case
• Situation
– Volatile environment of airline industry
– Intense competition at multiple levels
– Regulation/deregulation issues
– Hugh capital investments and tight
margins
• Rothmeir takes over in ‘85 with
Northwest is poor shape.
Rothmeir’s Vision?
• Better performance through
– Better customer service
– Increased efficiency & economic operation
– Employee participation
Dr. Ken Myers’ Role
• Double team/ good cop-bad cop
approach
– Rothmeir to be Mr. Outside
– Myers Mr. Inside
• Is this approach likely to be effective?
Pros and Cons
• Pros
– One makes the hard decisions
– The other provides the soft shoulder
• Cons
– Mixing “oil and water”?
– Trust?
Environmental Changes
• Acquisition of Republic
– Impact?
• The Crash at Detroit
– Impact?
• Bidding war over takeover by Al
Checchi
Lessons
• Even change agents susceptible to
change
– Need to “bend their knees”
• Pros and cons of internal vs external
change agents
• It takes more than one or two agents to
effect change
Microswitch Case
• The situation
– Microswitch attempting change to better
quality and customer satisfaction
– Three middle managers singled out as
change agents
– Transitional pace
Problems of Transitional
Change
• Measured pace easier to cope with
• No sense of urgency can be
deleterious
The Cast
• Alvarez - new GM
– Playing the “sponsor” role
• Rick Rowe - former renegade/bad
cowboy
• Ellis Stewart - consummate trainer &
optimist
• Deb Massof - “outsider” from
Honeywell, skeptical but enthusiastic
Mid-Term Report Card?
•
•
•
•
•
What’s been achieved so far?
Is this adequate?
Has something gone wrong?
How do the change agents feel?
Threats to the change effort at this
point?
Change Agent’s Frustration
• A sign of failure?
• A normal part of being in the middle
– Burnout and self-doubt possible
– Constant questions of support &
empowerment
– Can appear an endless process when
you’re in the middle
• Article on “Converting Middle Powerlessness”
Empowerment vs Control
• Alvarez ultimately responsible to the
corp.
• But can’t get the job done without
giving up some control to others
• Delicate balancing act
– Finding those you can trust
– Giving them the power they need
– Using the vision as control
Lessons
• The problem of being in the “middle”
• Need for delicately balanced
empowerment
• Relationship between sponsors and
agents
• The ups and downs of all change
efforts