THE IMPORTANCE OF
LEADING CHANGE
– CHANGE IS MORE RAPID TODAY
A VERY COMPETITIVE MARKETPLACE
 INCREASING TECHNOLOGICAL CHANGE
 INCREASING EXPECTATIONS OF KEY
EMPLOYEES WHO MUST BE RECRUITED
AND RETAINED

– THE ORGANIZATION HAS TO CHANGE
TO KEEP UP
– SO LEADING CHANGE IS AN
INCREASINGLY IMPORTANT SKILL
THE CHANGE PROCESS
CHANGE IS A PROCESS ITSELF,
SEPARATE FROM WHAT THE CHANGE
IS
 LEADING CHANGE IS A SKILL IN
ITSELF, DIFFERENT FROM
MANAGING THE ORGANIZATION
AFTER IT’S BEEN CHANGED
 SO WE MUST SEPARATE THE CHANGE
ITSELF FROM THE PROCESS OF
CHANGE TO LEARN HOW TO LEAD
CHANGE

“THE MOST DIFFICULT
THING ISN’T TO GET THE
NEW IDEA IN -- IT’S TO GET
THE OLD IDEA OUT!”
B. H. LIDDELL HART
MILITARY ANALYST AND
HISTORIAN
LEADING CHANGE IN AN
INDIVIDUAL




TRY TO GET BEHAVIOR CHANGED
– COUNSELING
– ADAPT INCENTIVES TO DESIRED BEHAVIOR
– SEE HOW OTHERS SEE THE PERSON
TRY TO CHANGE THE PERSONALITY
– OFF-SITE COUNSELING
– OFF-SITE INSTITUTIONAL PROGRAM
ADD A BUFFER PERSON
REPLACE THE PERSON
EIGHT STEPS TO TRANSFORMING AN
ORGANIZATION








ESTABLISH A SENSE OF URGENCY
FORM A GUIDING COALITION
CREATE A VISION
COMMUNICATE THE VISION
EMPOWER OTHERS TO ACT ON THE VISION
COACHING CHANGE LEADERS
PLAN FOR AND CREATE SHORT TERM WINS
CONSOLIDATE GAINS
ESTABLISH A SENSE OF
URGENCY
PEOPLE WON’T ACCEPT A NEED TO
CHANGE UNLESS THEY THINK
THERE IS A REAL NEED
 PEOPLE WON’T TAKE THE NEED FOR
CHANGE SERIOUSLY UNLESS THEY
THINK IT URGENT
 IT MAY IN FACT BE URGENT, BUT IF
IT’S A LITTLE WAYS OFF, A SENSE OF
URGENCY MUST BE CONTRIVED

FORM A GUIDING COALITION
DON’T TRY TO MANAGE THE
CHANGE ALONE, ESPECIALLY IF IT’S
A MAJOR OR TRANSFORMATIONAL
EFFORT
 ASSEMBLE A GROUP OF PEOPLE WHO
SEE THE NEED FOR CHANGE
 SOME MAY BE FROM OUTSIDE YOUR
OWN ORGANIZATION IN OTHER
AFFECTED UNITS

CREATE A VISION
DRAW UP A PICTURE OF WHAT THE
CHANGED ORGANIZATION WILL BE
LIKE
 LET OTHERS CONTRIBUTE THEIR
VIEWS

– LET THE VISION BELONG TO AS MANY
PEOPLE AS POSSIBLE BY LETTING THEM
CONTRIBUTE TO IT
– PRECISION IS LESS IMPORTANT THAN
BUY-IN
COMMUNICATE THE VISION
LET THOSE WHO DIDN’T
PARTICIPATE IN BUILDING THE
VISION LEARN ABOUT IT
 SEEK QUESTIONS AND COMMENTS
AND RESPOND TO THEM
 TRY TO GET BUY-IN ESPECIALLY
WHERE PEOPLE ARE CRITICAL TO
SUCCESS OF THE CHANGES

EMPOWER OTHERS TO ACT ON
THE VISION
LET PEOPLE DISCUSS THE VISION
AND HOW TO IMPLEMENT IT
 LET PEOPLE KNOW THAT WHEN THEY
ACT IN ACCORDANCE WITH THE
VISION, YOU WILL SUPPORT THEM
 HAVE YOUR GUIDING COALITION
INITIATE STEPS TOWARD THE NEW
VISION

COACHING YOUR CHANGE
HELPERS
WATCH FOR COACHING
OPPORTUNITIES
 MONITOR PREFORMANCE
 SUPPORT EFFORTS
 CUSTOMIZE YOUR APPROACH TO
THE PERSON

PLAN FOR AND CREATE SHORT
TERM WINS





DIVIDE THE TOTAL CHANGE (THE
VISION) INTO SMALL PIECES
WHEN A PIECE IS ACHIEVED, CELEBRATE
THE ADVANCE
LET PEOPLE KNOW PROGRESS IS BEING
MADE
REWARD SUPPORTERS TO BUILD MORE
SUPPORT
BUILD MOMENTUM STEP BY SMALL
STEP
CONSOLIDATE GAINS






BE SURE PEOPLE KNOW THAT THE CHANGE IS
BEING ACCOMPLISHED
THIS IS ESPECIALLY IMPORTANT WHERE
THERE IS CONFUSION OR RESISTANCE
DON’T GO BACK UNLESS NECESSARY TO
ADDITIONAL STEPS FORWARD
CHANGE POLICY MANUALS AND
PROCEDURES TO REFLECT THE NEW
APPROACHES
TERMINATE THE OLD POLICIES AND
PROCEDURES FORMALLY
NOW THE CHANGE IS NO LONGER A CHANGE,
IT’S THE NORM
IN PLANNING FOR
CHANGE YOU HAVE MANY
LEVERS

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
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
DEGREE OF PARTICIPATION
SOURCE OF INITIATIVE
PACE OF CHANGE
CONTEXT
SCOPE IN THE ORGANIZATION
DEGREE OF RISK
DEGREE OF BUY-IN
KEY PERSONNEL
TECHNOLOGY
DEGREE OF
PARTICIPATION
HIGH (WHAT TO DO AND HOW TO DO
IT)
 MEDIUM (HOW TO DO IT)
 LOW (JUST FOLLOW)

SOURCE OF INITIATIVE
TOP DOWN
 MIDDLE-DRIVEN
 BOTTOM UP

PACE OF CHANGE
EVOLUTION
 GRADUAL
 REVOLUTION

CONTEXT OF CHANGE
STAGNATION
 CRISIS
 CONTINUOUS IMPROVEMENT
 REACH FOR EXCELLENCE

SCOPE OF CHANGE
ENTIRE ORGANIZATION
 PART OF THE ORGANIZATION
 PILOT PROJECT

DEGREE OF RISK YOU’RE
PREPARED TO TAKE
HIGH
 MEDIUM
 LOW

DEGREE OF BUY-IN YOU
CAN EXPECT OR ATTAIN
SUBSTANTIAL
 LIMITED
 NONE
 OVERT RESISTANCE

WHO IS TO HELP YOU LEAD
THE CHANGE
INSIDERS
 OUTSIDERS
 A MIX OF THE TWO

USING TECHNOLOGY TO
PROMOTE CHANGE




NEW TECHNOLOGY IS A VEHICLE FOR
INTRODUCING BROADER CHANGE
THE REASON IS THAT PEOPLE EXPECT
TECHNOLOGY TO CHANGE AND SO RESIST
CHANGE LESS WHEN IT COMES WITH NEW
TECHNOLOGY
IT’S VERY DIFFICULT TO MAKE THINGS
HAPPEN IN A LARGE ORGANIZATION
WITHOUT NEW TECHNOLOGY.
AN IDEA IS OFTEN UNAVAILING BECAUSE IT
ISN’T, OR CAN’T BE, IMBEDDED IN
TECHNOLOGY.
OVERCOMING RESISTANCE
TO CHANGE
MANAGING CHANGE IS MUCH
EASIER IF PEOPLE SUPPORT IT
RATHER THAN RESIST IT
 IT’S BETTER TO AVOID RESISTANCE
THAN TO OVERCOME IT

– IT’S QUICKER
– IT’S CHEAPER
– IT’S LESS STRESSFUL AND TIME
CONSUMING TO YOU
DO PEOPLE RESIST
CHANGE?



MOST MANAGEMENT GURUS SAY IT’S
HUMAN NATURE TO RESIST CHANGE
SO THEY ASSUME THERE WILL BE
RESISTANCE TO CHANGE
AND THEY ADVISE MANAGERS HOW TO
OVERCOME RESISTANCE TO CHANGE
IN MANY SETTINGS
PEOPLE WANT CHANGE



PEOPLE SEEK NOVELTY AND CHANGE
– CLOTHING STYLES
– EXPERIENCES SUCH AS EATING OUT, TRAVELING
– POSSESSIONS SUCH AS CARS, BOATS,
APPLICANCES
AND PAY A LOT FOR NOVELTY AND CHANGE
HUGE INDUSTRIES ARE BASED ON THE DESIRE OF
PEOPLE FOR CHANGE
– FASHION
– TRAVEL
– ENTERTAINMENT
– SPORTS EQUIPMENT
IT’S PART OF HUMAN
NATURE TO WANT CHANGE
PEOPLE WANT NOVELTY
 PEOPLE WANT VARIETY
 PEOPLE WANT DIVERSION

GENETISTS ARE STUDYING
NOVELTY-SEEKING
NOVELTY-SEEKING -- THE THIRST
FOR CHANGE AND NEW
EXPERIENCES IS A FUNDAMENTAL
HUMAN TRAIT
 IT’S BEING STUDIED BY GENETISTS
TO DETERMINE WHICH GENES
CONTROL IT -- THERE SEEM TO BE 3

WHY PEOPLE RESIST
CHANGE AT WORK


BUT AT THE WORKPLACE THERE IS OFTEN
RESISTANCE TO CHANGE
WHY?
– MANAGERS EXPECT RESISTANCE AND
ARE DEFENSIVE,, SO THEY GET
RESISTANCE
– MANAGERS MIS-MANAGE CHANGE,
CREATING LOSERS
– MANAGERS TRY TO FORCE PEOPLE TO
ACCEPT CHANGE, CREATING
RESENTMENT
RISK AND COMPULSION



PEOPLE ARE AFRAID THAT CHANGE
MEANS THEY’LL LOSE THEIR JOBS
– BECAUSE THEY CAN’T DO THE NEW
WORK
– OR THERE WON’T BE A NEED FOR THEM
PEOPLE RESENT BEING COMPELLED TO
DO SOMETHING RISKY
WHEN CHANGE IS ACCOMPANIED BY RISK
AND COMPULSION, PEOPLE RESIST
CHANGE
REDUCING RESISTANCE TO
CHANGE

ELIMINATE THE PERCEPTION OF
RISK
– TRAIN PEOPLE WELL
– PROVIDE A SAFETY NET

REDUCE COMPULSION
– USE VOLUNTEERS AS OFTEN AS
POSSIBLE
– LET PEOPLE LEAD A CHANGE WHO
WANT THE CHANGE
A MARKETING APPROACH
TO LEADING CHANGE

MARKETING PROFESSIONALS KNOW THAT
PEOPLE DIFFER IN THEIR ACCEPTANCE OF NEW
THINGS
– SOME ARE PIONEERS
– SOME ARE EARLY ADOPTERS
– SOME ARE HESITANT
– SOME WAIT TILL THE LAST
– TO MANAGE CHANGE, LET YOUR PIONEERS
AND EARLY ADOPTERS TAKE THE LEAD
TWO EXAMPLES OF
DIFFERENT
APPROACHES(1)

A YOUNG EXECUTIVE LATER CEO OF A HUGE
COMPANY, WHEN HE WAS MANAGING
OPERATIONS
– TURNED THE SYSTEM UPSIDE DOWN
– REVOLUTION, NOT EVOLUTION
– NEW SYSTEM INSTALLED OVER A WEEKEND
– LOTS OF PEOPLE LET GO
– NEW PEOPLE HIRED SIMILAR TO THE YOUNG
EXECUTIVE
– UNILATERAL DECISIONS, IGNORING OLDTIMERS
TWO EXAMPLES (2)

TOP EXECUTIVE’S APPROACH TO
REVITALIZING A DIVISION
– GET AN OUTSIDER TO LEAD THE
CHANGE SO THAT THERE’S A FRESH
LOOK
– GIVE THE LEADER INDEPENDENCE
– SUPPORT HIM OR HER AGAINST
RESISTANCE IN THE ORGANIZATION
– PROVIDE STRONG FINANCIAL AND
CAREER INCENTIVES FOR SUCCESS
TWO EXAMPLES (3)
YOUNG EXECUTIVE ASSUMED
THERE WOULD BE RESISTANCE TO
CHANGE AND USED COMPULSION TO
FORCE IT THROUGH
 OLDER EXECUTIVE FOUND A
LEADER WHO WOULD SUPPORT A
CHANGE AND PROVIDED
INCENTIVES FOR SUCCESS

CHANGE MANAGEMENT
MECHANISMS (1)

MEETINGS
–
–
–
–
ALL-EMPLOYEE OR TEAM MEETINGS
LEADERSHIP MEETINGS
FOCUS SESSIONS
UNIT HUDDLES
TELEPHONE OR ONLINE COACHING
 PERSONAL COACHING

CHANGE MANAGEMENT
MECHANISMS (2)


COMMUNICATIONS
– NEWSLETTERS -- PRINT OR ONLINE
– BULLETIN BOARDS -- PHYSICAL OR ONLINE
– LETTERS OR EMAILS
TRAINING
– CLASSROOM, ON THE JOB, SELF-INSTRUCTION
– KNOWLEDGE PARTNERSHIPS
– LEARNING CONTRACTS
– PEER TEACHING
– MENTORING AND REVERSE MENTORING
CHANGE MANAGEMENT
MECHANISMS (3)
RECOGNITION PROGRAMS
 SURVIVAL KIT

– TIPS
– RESOURCES

NERVE CENTER
– DEPLOY RESOURCES
– ASSESS PROGRESS
– MAKE PLANS
SPECIAL ISSUES IN A
MERGER
RETAINING THE BEST PEOPLE
 KEEPING PERFORMANCE UP

TWO TOOLS FOR MERGER
SITUATIONS
POINTS OF DECISION ANALYSIS
(PDA)
 THE DISSATISFACTION GRID

POINTS OF DECISION
ANALYSIS (PDA)

THERE ARE POINTS IN A PERSON’S
CAREER AT WHICH SHE OR HE
MAKES A DECISION ABOUT
WHETHER TO GO OR STAY
– AT THE POINT OF AN EXPECTED
PROMOTION
– AT THE POINT OF AN EXPECTED PAY
INCREASE
– AT A POINT OF BOREDOM
MERGERS GENERATE
PROMOTION POINTS OF
DECISION

PROMOTION
– WILL I BE PASSED OVER FOR
PROMOTION?
BECAUSE THE LADDER IS BLOCKED BY
NEW PEOPLE FROM THE MERGED COMPANY
 BECAUSE THERE ARE NEW CANDIDATES
WHO ARE BETTER THAN I
 BECAUSE I DON’T HAVE THE RIGHT
CONNECTIONS

MERGERS GENERATE
COMPENSATION POINTS OF
DECISION
DO I GET LESS THAN SOMEONE
FROM THE MERGED COMPANY?
 DO PEOPLE FROM THE MERGED
COMPANY GET LESS THAN I, AND
WILL THEIR PAY SCALES HOLD ME
BACK?

MERGES GENERATE
BOREDOM POINTS OF
DECISION
I’M FORGOTTEN
 I’VE GOT NOTHING TO DO
 MY PROJECT’S BEEN PUT ON HOLD
SO IT’S NOT IMPORTANT
 I’M NOT TOLD ABOUT WHAT’S GOING
ON -- I’M NOT IN THE LOOP

USING PDA
LOOK AT YOUR KEY PEOPLE, AND
HAVE YOUR REPORTS LOOK AT
THEIR KEY PEOPLE
 WHICH OF THEM, IF ANY, FACES A
DECISION POINT?

– WHY?
– WHEN?

HOW DISSATISFIED IS THAT PERSON?
THE DISSATISFACTION
GRID
VERTICAL AXIS -CONTRIBUTION/PERFORMANCE
FROM LOW TO HIGH
 HORIZONTAL AXIS -DISSATISFACTION FROM LOW TO
HIGH
 PLOT EACH OF YOUR PEOPLE IN THE
FOUR QUADRANTS

USING THE
DISSATISFACTION GRID
IDENTIFY THE PERSONS IN THE
UPPER RIGHT HAND QUADRANT -THE HIGH PERFORMERS WITH HIGH
DISSATISFACTION
 THESE ARE THE KEY PEOPLE TO
TARGET BECAUSE THEY ARE AT A
POINT OF DECIDING TO LEAVE

TAKE ACTION TO KEEP THE
BEST PEOPLE



IF A HIGH PERFORMER IS DISSATISFIED
TALK TO HER OR HIM
– YOU’RE IMPORTANT TO ME
– YOUR CONTRIBUTION IS APPRECIATED
– I HAVE TIME FOR YOU
– YOU CAN GET AHEAD HERE
– YOU’RE IN THE LOOP
INCLUDE HIM OR HER IN THE TRANSITION
TEAMS -- BUT NOT TOO MUCH -- DON’T GO FROM
BOREDOM TO OVERWORK
SUMMARY



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
LEADING CHANGE IS A CRUCIAL SKILL IN
TODAY’S BUSINESS WORLD
YOU CAN LEARN HOW TO LEAD CHANGE
IN A WELL-ORGANIZED BUSINESS
MANNER
USE THE EIGHT STEP METHOD
EMPLOY ALL YOUR LEVERS
CAPITALIZE ON PEOPLE’S DESIRE FOR
NOVELTY TO AVOID RESISTANCE TO
CHANGE