The Merlin Factor
Change Management
Stages of Excellence Model
The Merlin Institute
The Merlin Institute
Windermere, Florida
The Merlin Factor tm
The Merlin Factor Best Practice Change Management Model
CONTENTS
1. Definition
–
–
2.
Stages in the Merlin Change Management Model
Dimensions in the Merlin Change Management Model
Best practice stages of excellence
–
Dimension Characteristics
3. Usage
–
–
–
How can the Merlin Stages of Excellence Change Management Model
be used?
Strategy analysis process
Change management process
4. Value
–
What difference can this Change Management Model make?
The Merlin Institute17-Sep-04
The Merlin FactorTM
2
1. Definition: Best practice Change Management Model (CMM)
•
4 Stages of Excellence (SOE) define the characteristics of best practices of change
management
•
The model is used to assess a company’s current position in change management
relative to global best practice
•
The model is based along five dimensions:
–
–
–
–
–
•
Customer service
Leadership
Strategy and execution
Process
Sustainability
Each of the 5 dimensions contains a number of sub-topics against which a company
can be compared. Each of the topics categorizes a description of the capabilities
required for the four stages of excellence
The Merlin Institute17-Sep-04
The Merlin FactorTM
3
1. Definition: There are 4 stages in this model
Enabling and sustaining
positive change …
Change
management
motivated
Change
management
aware
Change
management
neutral
Company does not
engage actively in
conscious change
management but is
focused on immediate
transactions

Company is aware of
the need for coherent &
managed approaches to
change. Begins to try
different approaches on
an isolated basis
Analysis & deliberate
change management
begins to drive projects
& attempts to improve
customer service

Reactive
The Merlin Institute17-Sep-04

Change
management
centric
Company behaviour,
organization & strategy
revolve around specific
customer-focused
change management &
human values

Intentional
The Merlin FactorTM
4
1. Definition: There are 5 dimensions within the model
The model identifies best practice characteristics under 5 key dimensions of change management:
1. Customer Service
•
Operations linked to focus on customer experience and relationship
2. Leadership
•
The platform for success is supporting people with great ambition discover what is personally holding
them back and then helping them to move forward to breakthrough outcomes
3. Strategy
•
•
•
•
Strategy is co-invented by those who control structure and resources and those who will have to
implement it
Strategy is recognized as politics as well as rational action, and necessary conversations happen
fearlessly
End to end customer strategy is aligned with individual customers’ value chain
Strategies that enable Landmark organizations to provide true one-to- one customer relationship
management through all the channels
4. Process
•
Processes are collaborative and tailored to internal and external customer needs and experiences
5. Sustaining execution and performance
•
•
Problem resolution is commitment based rather than reactive
Breakdowns are intentionally turned into breakthroughs
The Merlin Institute17-Sep-04
The Merlin FactorTM
5
Dimension Characteristics: CUSTOMER SERVICE
Dimension




Change Mgmt.
Neutral
Change Mgmt.
Aware
Change Mgmt.
Motivated
Change Mgmt.
Centric
CUSTOMER
SERVICE
STAGE 1
•
No organizing STAGE
service goal.
(Strategic Intent)
2
•
Services standards
vary with
and group
• Service
goalindividual
and
standards
are seen as missing and the need
STAGE
3
for their
development
is acknowledged
Customer experience
is not
defined
• Service goal (Strategic
makes sense to all staff in terms
STAGEIntent)
4
• Service
standards
registered and
of and
theircustomer
own role complaints
Instrumental customer
relationships
and
company
commitmentare
is to
• Consistently
highest
quality service ratings compared with competitors across all
there is no systemic
and reliable
response
its own success. acknowledged• but
Customer relationship,
quality & service goals have been well
countries
• value
Customer
experience
is definedare
butalmost
not in fully
detail
demonstrated
imbedded throughout
Undifferentiated
proposition
for customers
with
internal
focus
• Majority of customers acknowledge your trusted advisor relationships
organisation
on sales volume
• Value propositions developed but not fully differentiated
• Customers, staff and potential recruits recognize consistent competence and
•advisor
Value
propositions
are always
Each functional
distinct
set ofcustomer
customer
processes
andwell developed and directed
• group
A fewhas
trusted
relationships
demonstrated quality in service excellence standards, recruiting, training and reward
toward
customer
value
chains
procedures resulting in average and
ad-hoc
customer
service
• Value propositions can be reliably aligned with individual customers value chains,
experience
• Seamless integration between service excellence standards,
immersed in customer’s aims and substantiate compelling business case
recruiting, training and reward
• Learning from sales and operations provide basis for continuous innovation
• Research into customer experience and demand trends is
aligned with new products and services development
•
•
•
•
•
The Merlin Institute17-Sep-04
Focus across divisions on single customer’s lifetime value
The Merlin FactorTM
6
Dimension Characteristics: LEADERSHIP
Dimension




Change Mgmt.
Neutral
Change Mgmt.
Aware
Change Mgmt.
Motivated
Change Mgmt.
Centric
LEADERSHIP
STAGE 1
•
•
•
•
•
•
•
•
•
•
•
•
•
STAGE 2
STAGE 3
Business as usual
• Need
structures
for riskyand
goals
processes
is statedare
butused
not executed
in changeinefforts.
a sustained
Peopleway
work inside the system
• Developmental
projects are progressing well in leadership behaviour, coaching, career
STAGE
4
Need for novel
• approaches
Feedback istosolicited
improvement
from subordinate
is acknowledged
groups
but mostly lip service
progression, professional development and change
•
Leaders
have
developed
strong
leadership
capability
for change
People only promise
• Leaders
whatand
they
staff
canknow
predict
much of what’s missing but
culture
punishes
risk or they
are riskso that staff challenge the system
• Bold breakthrough
goals are
stated and
committed
byand
cross
sections
of
staff to produce breakthrough results
(implementation
processes
and
structures)
can
reliably
innovate
averse
Problems are solved
in peer groups
• Multi level
groups areare
brought
together
for information
and to solve problems
• isOutcomes
promised
that in
cannot
beway
predicted
The value their
of coaching
accepted
but only
happens
ad-hoc
Leaders avoid• addressing
unspoken
fears
• Leaders
powerfully
aboutinbreakthrough
actions and
results and commit to projects
• speak
Problems
are solved
cross functional
groups
of their
passion
in private
but notlarge
in public
Promises are•notLeaders
made orspeak
keptand
without
consequences
resources
• does
Fearsnot
arework
turned
goals
• not
People
talkinabout
what
butinto
do not
get to ‘awful truth’ with each other except
Coaching does
happen
• change
Leadersefforts
speak out for their passion and values in public but full enrolment and ignition
in private
• happen
Staff are adept at powerful committed speaking and it is a strongly held value in the organization
does not
People are not emotionally connected
to each other or company
• People promise tactical
results vs.
shifts
in strategyword
or genuine
performance
breakthroughs
• People
always
and
require
it of
others
coaching
ishonor
on thetheir
increase in
a project
or
career
context
Leaders are pragmatic and •notFrequency
directed byoftheir
passion
• Problems are generally
solved inare
cross
functional
groupswhere they want fundamental change and haven’t been able to do it
• Leaders
coached
by experts
Attention is paid only to visible, physical themselves.
performance and processes
• Leaders avoid addressing their unspoken fears
The truth is not often told about what •does
not work
People
are connected
to the company based on what they deeply care about
• People feel some emotional
connection
with company
Planning is based on existing resources
and
opportunities
• Leaders
speak inspired,
central
consistent with the consuming passion of their lives
• Attention is paid partially
to staff experience,
values
andmessages
relationships
Speaking does not enroll others in possibility
and
inspired
action
• The absolute
truth isstrategic
told about
what’s not working at all levels and across all levels
• Planning is based intermittently
on a future
intent
•
• Equal
attention
paid to values
and howaction
people are being as well as to actions and results
Speaking does not enroll
others
in new is
possibilities
and inspired
The Merlin Institute17-Sep-04
The Merlin FactorTM
7
Dimension Characteristics: STRATEGY
Dimension




Change Mgmt.
Neutral
Change Mgmt.
Aware
Change Mgmt.
Motivated
Change Mgmt.
Centric
STRATEGY
STAGE 1
•
Senior executives
STAGE 2create strategy and pass it on to others to implement
•
In the face
shared commitment,
decisions
are delayed
duewith
to ofpossibility
lack of thinking is
• ofRigorous
approach
to strategy
analysis
together
STAGE
3
agreement adopted by leaders and a few others
• Rigorous approach to strategy
together
4 withwith possibility thinking at
Customer• strategy
based
on needsactions
of the successfully
company or STAGE
individuals
People iswho
co-ordinate
interdepartmental
levels and produce results are recognised
influence informally and formally through appraisal
• Strategy is analysed rigorously and co-invented by those who control structure
• Facilitated strategic problemand
solving
imbedded
andwho
successful
reward
and those
need to implement
Enrollment,
the creation ofand
possibility
for others
understood
or valued
• Collaboration
participation
is in is
thenot
language
but does
not go in between
• Planning and review processes
include
back
from
the
future
intent
All leaders
to mid manager level strategic
are familiar
with facilitating strategy processes
levelsstrategy;
and interfaces
so understanding
co-odinated action
is• difficult
Ad-hoc customer
no deep
of customers
business
•
Strategic
breakthrough
projects
are
formulated
and
managed
rigorously
with
requirements
or quantified
value than
expectations
Strategic implementation is scoped and budgeted as specific breakthrough
• Projects
take longer
expected, quality is• uneven
intention to quality, cost andprojects
schedule
and enrollment conversations
• Proposed solutions are procedural in nature even when enrolment is key or
problems have not been agreed with clients • Alignment and enrolment are practiced at all levels
•
•
•
The Merlin Institute17-Sep-04
•
Customer strategy aligned with corporate strategy, sophisticated relationship
management based on value of life of each individual customer
•
Strategy and actionable execution plans are designed simultaneously
The Merlin FactorTM
8
Dimension Characteristics: PROCESS
Dimension




Change Mgmt.
Neutral
Change Mgmt.
Aware
Change Mgmt.
Motivated
Change Mgmt.
Centric
PROCESS
STAGE 1
•
•
•
•
•
STAGE 4
Useful processes
that2exist are within functional or political silos• Clearly defined cross organizational governance framework and common
STAGE
understanding of roles, responsibilities and interfaces that facilitates
No conscious• effort
to bringare
energy
into focus
and
manageor
the
human
Processes
optimized
functional
product
silos, primarily based
STAGE
3 within
integrated priorities and decision making
vitality necessaryonfor
either innovation or breakthroughs in performance
cost
• “Learning” from operations and
service experience
provide basis
for
• strategy
Training,
coaching structures
and processes
assure widespread attention to
Customer strategy
is conceived
independently
from
information
• Innovation
is taken
seriously and
formal
processes
are
introduced
continuous
innovation
to improve
customer
service
Group Alignment, Personal Responsibility for Breakthrough Results,
Communication
only informsmanagement
but• does
not is
elicit
commitment
• Information
invested
in and around
recognized
as Relationships,
vital
by leaders
Positive
Resolving
Profound Respect, and Analysis
Processes
are
designed
seamless
service
experience
for Conflict,
each
that
leads
to
action
customer
segment
–
not
internal
convenience
(e.g.1
firm
versus
3
People who need
information
to contribute
maximally
notestablished across organization
• Common
customer
processes
defineddo
and
departments)
get it
yet inconsistent collaboration
for reliable and excellent
customer
• Innovation
is recognised by competitors as leading the industry.
satisfaction
• Infrastructure exists to support
and
integrate
• Every membermulti-channel
of staff sees customer
innovation as part of their role; passionate
interface
contribution, regular forums and reliable mechanisms to commercialize
•
ideas
have
reliable pipeline
for growth
Decision support systems collect,
store
andcreated
providea customer
information
to
the right people most of the •time
Architectures and behavior fully align the information strategy with the
•
strategy
Innovation seen as critical by allcustomer
staff to future
success. Reliable innovation
processes gather best thinking
within
and
outside
industry.
• Infrastructure managed
rigorously to support and integrate multi-channel
•
customer interface
Processes to evaluate and commercialize
ideas (voice, web, email, mail, forums)
•
The Merlin Institute17-Sep-04
‘Just in time / at the point of need’ decision support systems to collect, store
customer information to the right people
9
provide
The Merlinand
FactorTM
Dimension Characteristics: SUSTAINABILITY
Dimension




Change Mgmt.
Neutral
Change Mgmt.
Aware
Change Mgmt.
Motivated
Change Mgmt.
Centric
SUSTAINING
STAGE 1
•
•
•
•
•
•
•
Change initiatives
are not
STAGE
2 fully scoped and facilitated nor are they followed
through with conviction by leaders
• Change initiatives
are scoped
but eventually become weighed down by initiative
STAGE
3 and
Outcomes, metrics,overload.
accountabilities,
resources
budgets
are not agreed in
Executive
sponsorship
is intermittent
STAGE
advance of change initiatives commencing
• Change initiatives are
fully 4
scoped and reconciled with other priorities
• Leaders begin to put change into context but don’t fully co-create future for all
•
Leaders
anddifferently
majority
staff
are versed
leading
change initiatives.
Leaders change their
direction
too
frequently
for
their
staff
to
understand
the
key of
Leaders
change
initiatives
actively
and
regularly
investinto
co-create
staff to feel part •of it.
Peoplesponsor
do not know
what
to do
although
drivers for growth. Resignation
soon
sets
in
future
for
all
staff
to
feel
part
of
it.
Competent,
consistent and systematic breakthrough facilitation of project based
generally attempt to make changes at•local
level
results
management
teams in place
for each strategic initiative
There are no interdisciplinary
results
management
teams
to
deal
with
cross
•
Regular
professional
development
around execution
and leadership
• Intermittent peer reviews on performance
functional breakdowns and political issues
•for Breakthrough
coaching,
group based breakdown resolution, and enrollment
• outside
Internalsales
coaches
on career and
project development
• Ad hoc incentives
forcework
outstanding
performance
regarding
difficult interfaces is maintained with conviction
Leaders are not actively coaching. Coaching does not happen
elsewhere
• Independent sales proposal, account planning, project delivery, innovation and
• teams
Bi-annual
360
reviews at all levels with follow up and recognised consequences
There are no measures for individual’spost-project
values or how
each
individual
generates
review
reliably
operating
for positive change or lack of it
internal or external customer satisfaction
• Incentives consistent with customer service strategy and innovation
• Strong Incentive systems developed to encourage outstanding customer
Peer reviews rarely occur
• 360 reviews operatingbehavior
at least once
a year staff
at all levels
and reward
• Performance measures
that quantify
improvements
sales, marketing
and insight into customer
• Holistic
measures
for individualincustomers
that provide
customer service at a loyalty
customer
andlevel
profitability through the entire relationship life cycle
The Merlin Institute17-Sep-04
The Merlin FactorTM
10
How to use the Merlin Change Management Model?
The CMM Stages of Excellence can be used to determine an organization’s current state of change management, its
desired future state and develop and actionable plan to fill the gap
Dimension




Change Mgmt.
Neutral
Change Mgmt.
Aware
Change Mgmt.
Motivated
Change Mgmt.
Centric
Customer
service
Leadership
Strategy
Process
Sustaining
18 months
Current state
The Merlin Institute17-Sep-04
Plan to fill the gap
Future state
The Merlin FactorTM
11
A PROGRAMME DASHBOARD CAN TRACK PROGRESS
Strategic intent and breakthrough project objective
Deadline
Xxxxxxxxxxxx
12/12/04
Deliverables attained since last review [month][day]
Activities for next week ending [month][day]
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
xxxxxxxxxxxxx
Xxxxxxxxxxxxxxx
Xxxxxxxxxxxx
xxxxxxxxxxxxx
Issues / Risks:
Xxxxxxxxxxxxx
RACI
Plan
xxxxxxxxxxxxx
xxxxxxxxxxxxx
Actions to address (issues/risks)
Xxxxxxxxxxxxx
R = Responsible A = Authority
C = Consulted I = Informed
xxxxxxxxxxxxx
Actions & deliverables xxxxxxxxxxxxx
Jan
Feb
Mar
WHO
Apr
May
Jun
Jul
Aug
Xxxxxxxxxxxxx
xxxxxxxxxxxxx
xxxxxxxxxxxxx
Sep
Oct
BY WHEN
Xxxxxxxxxxxxx
xxxxxxxxxxxxx
xxxxxxxxxxxxx
Nov
Dec
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
Xxxxxxxxxxxxx
 - Change Mgmt. Neutral
The Merlin Institute17-Sep-04
 - Change Mgmt. Aware
The Merlin FactorTM
 - Change Mgmt. Motivated
 - Change Mgmt. Centric
12