MGTO 650N Managing Organizational Change
Bob Galvin and Motorola
Group Members:
Angela Lee
Dragon Pak
Gary Wong
Peter Petrov
Suki Chan
MGTO 650N Managing Organizational Change
Our team analysis approach
Galvin's missions but no Vision
Evaluation of Galvin's delivery
Internal response to the speech
Can we do it better?
When should we Do it? Good Time? Bad Time?
MGTO 650N Managing Organizational Change
Galvin's missions but no VISION
Mission
• Simpler Organization structure with direct ties to the customers
– Bring management to market/consumer
– Smaller, sharp focused business units
– Decrease layers of management
Where does this lead to ?
Nowhere
MGTO 650N Managing Organizational Change
No Vision but more effective?
Galvin is still struggling with the vision of future Motorola
More effective running of business
change Motorola
From Christensen Clayton’s central analysis,
more effective running business cycles without clear central strategy
always lead to faster and disastrous downfall of large corporate
MGTO 650N Managing Organizational Change
Hewlett-Packard lesson
Carly Fiorina mission failed and fired
• Confused central strategy
HP = Printer ? PC maker?
or
Carly Fiorina thought
HP= Printer + PC
5 years later, mission failed and kicked out
HP share drops $80
$
20
MGTO 650N Managing Organizational Change
Evaluation of Galvin’s Style
(Initiating Change)
Authoritarian
- Thought he could turn the corporation up-sidedown
- Thought everyone would follow with no
questions
Did not structure the change
Did not communicate it
Got no support
MGTO 650N Managing Organizational Change
Evaluation of Galvin’s Style
(Visionary Leadership)
Elements of “Visionary Leadership”
• Visions of the future
- Technology Roadmap
- Promoting investment in R&D
• Great inspiration
- Initiating the issue of structural reorganization
• Initiate action
- Fighting “unfair” trade practices
MGTO 650N Managing Organizational Change
Evaluation of Galvin’s Style
(Visionary Leadership) – cont’
Set achievable goals
- Participative Management Program
Enlist the participation of others
- “3 Bears”
- Sharing COO positions
MGTO 650N Managing Organizational Change
Impacts After The Speech
May have few supporters
Most left the hall with a fear of unknown
Feeling being treated unfairly
Surprise and confusion more than
eagerness
MGTO 650N Managing Organizational Change
What should be done next?
Create a “Burning Platform
Clearly state the vision (a road map)
Well-communicate the burning platform and the vision (Campaign,
workshop..etc.)
Put together a critical mass of ‘Change Agent”
Top-down approach. Leaders “Walk the Talk”
Identification and managment of resistance (structural, political,
cultural and technical)
Sustain gains on successful changes.
MGTO 650N Managing Organizational Change
Burning Platform
• Significant culture change begins with the
creation of a “burning platform”, a
compelling vision of why change is needed
• An enterprise can not move forward unless
the need for change is clearly established
MGTO 650N Managing Organizational Change
Threat Opportunity Matrix
This matrix
helps determine
the driving
factors behind
the changes
which can then
be used in
communicating
the need.
Threats
Opportunity
(if we don’t change)
(if we change)
Short
Term
Short Term Threats:
What are the threats if
the project does not
happen / if we do not do
the project?
Short Term
Opportunities: What
are the short term
opportunities with the
proposed project?
Long
Term
Long Term Threats:
What are the threats
if the project does not
happen / if we do not
do the project?
Long Term
Opportunities:
What are the long
term opportunities
with the proposed
project?
Focusing on the Long Term ensures involvement beyond what can
be gained from the Short Term sense of urgency!
MGTO 650N Managing Organizational Change
What should be done next?
Create a “Burning Platform
Clearly state the vision (a road map)
Well-communicate the burning platform and the vision (Campaign,
workshop..etc.)
Put together a critical mass of ‘Change Agent”
Top-down approach. Leaders “Walk the Talk”
Identification and managment of resistance (structural, political,
cultural and technical)
Sustain gains on successful changes..
MGTO 650N Managing Organizational Change
A Basic Change Model
As Is
To Be
• Change can cause a mixture of thoughts and emotions
–
–
–
–
Excitement
Yearning for the past
Unfocused energy
Productivity dip—remember, the “dip” is going to happen,
however the objective is to lessen the dip, not remove all the pain
MGTO 650N Managing Organizational Change
What should be done next?
Create a “Burning Platform
Clearly state the vision (a road map)
Well-communicate the burning platform and the vision (Campaign,
workshop..etc.)
Top-down approach. Leaders “Walk the Talk” and put together a
critical mass of ‘Change Agents’
Identifify “Stakeholders” for the change
Identification and managment of resistance (structural, political,
cultural and technical)
Sustain gains on successful changes.
MGTO 650N Managing Organizational Change
Communication is the Key to
Overcoming Resistance
Keep stakeholders
aware and involved
in your project…
 Gate Reviews
 Update Meetings
 Gallery Walks
MGTO 650N Managing Organizational Change
A war could have been
avoided, had Saddam
Hussain known better about
‘Arms Inspection....’
MGTO 650N Managing Organizational Change
MGTO 650N Managing Organizational Change
What should be done next?
Create a “Burning Platform
Clearly state the vision (a road map)
Well-communicate the burning platform and the vision (Campaign,
workshop..etc.)
Top-down approach. Leaders “Walk the Talk” and put together a
critical mass of ‘Change Agents’
Identifify and leverage on “Stakeholders” to maximize change efforts
Identification and managment of resistance (structural, political,
cultural and technical)
Sustain gains on successful changes
MGTO 650N Managing Organizational Change
Leaders’ Committment
Highly visible
Involve senior management
Serve as role models - ‘Walk the Talk’
Be consistent with message with the
organization’s visions, goals and expectations
Listen and address concerns
Allocate resources and remove barriers
MGTO 650N Managing Organizational Change
What should be done next?
Create a “Burning Platform
Clearly state the vision (a road map)
Well-communicate the burning platform and the vision (Campaign,
workshop..etc.)
Top-down approach. Leaders “Walk the Talk” and put together a
critical mass of ‘Change Agents’
Identifify and leverage on “Stakeholders” to maximize change efforts
Identification and managment of resistance (structural, political,
cultural and technical)
Sustain gains on successful changes.
MGTO 650N Managing Organizational Change
What is Stakeholder Management?
Identify
Stakeholders
Understand
Stakeholders
Influence
Stakeholders
MGTO 650N Managing Organizational Change
Stakeholder Management
Leadership Team:
Middle Management:
Frontline Employees:
First link in the action leadership
Second link in the action leadership
Third link in the action leadership
chain
chain
chain
Successful Change Needs an Unbroken Leadership Chain, Top to Bottom
MGTO 650N Managing Organizational Change
What should be done next?
Create a “Burning Platform
Clearly state the vision (a road map)
Well-communicate the burning platform and the vision (Campaign,
workshop..etc.)
Top-down approach. Leaders “Walk the Talk” and put together a
critical mass of ‘Change Agents’
Identifify and leverage on “Stakeholders” to maximize change efforts
Identification and managment of resistance (structural, political,
cultural and technical)
Sustain gains on successful changes.
MGTO 650N Managing Organizational Change
Major Types of Resistance
• Technical Resistance: believe changes reveal inadequacy
or stupidity on business and process knowledge
• Political Resistance: see change (or any restructuring as a
re-shuffle (and possibly loss of power and control )
• Structural Resistance: Organization structure is not
conducive to change (e.g. rigidly structured hierarchy that
does not encourage collaboration and/or communication)
• Cultural Resistance: Deeply entrenched beliefs,
assumptions, patterns of behaviours. It is human nature to
attach to the ‘Status Quo’.
MGTO 650N Managing Organizational Change
What should be done next?
Create a “Burning Platform
Clearly state the vision (a road map)
Well-communicate the burning platform and the vision (Campaign,
workshop..etc.)
Top-down approach. Leaders “Walk the Talk” and put together a
critical mass of ‘Change Agents’
Identifify and leverage on “Stakeholders” to maximize change efforts
Identification and managment of resistance (structural, political,
cultural and technical)
Sustain gains on successful changes
MGTO 650N Managing Organizational Change
Sustaining Gains
Communication
Spread success stories
Replication of best practices
Rewards (monetary and/or psychological) system
Continuous improvement
Control plan
MGTO 650N Managing Organizational Change
Initiating change in a good time
(Advantages)
Enough financing
Financial strong for correction
Basis for a future growth
Philosophy of life
– “change and grow or stagnate”
MGTO 650N Managing Organizational Change
Initiating change in a good time
(Difficulties)
Resistance of employees
Misunderstanding of Board of Directors
and shareholders
MGTO 650N Managing Organizational Change
Q
uestions?
- Thank you!