This document discusses managing organizational change and leading others through change. It covers: 1. The characteristics of an adaptive organization and prerequisites for successful change, such as developing a shared vision and communicating needs. 2. The different roles in a change process, including change sponsors, advocates, agents, and targets. Outside consultants can assist with assessments, training, and planning. 3. Leading others through change involves understanding what stage they are at - coming to grips, working through, or sustaining change - and addressing obstacles in mindset, motivation, and behaviors. Change should be implemented in steps over time.

1. Managing Change
April 13, 2000
Peter Levin, MBA, Ph.D.
RHR International Company
949-364-8909
CSULA

2. “It’s not so much that we’re afraid of change,
or so in love with the old ways, but it’s the
place in between that we fear… it’s like being
between trapezes. It’s Linus when his blanket
is in the dryer. There’s nothing to hold on to.”
- M. Ferguson

3. Class agenda
 Part I: Organizational Issues and change
 Part II: The nature of change.
 Part III: Leading others through
change.

4.  Characteristics of The Adaptive Organization
 The Prerequisites for Change
 Characteristics of Effective Change Sponsors
 What Effective Change Leaders Need to Do
 The Internal Players in the Change Process and
their Roles
 The Role of Outside Consultants
Part I: Organizational IssuesPart I: Organizational Issues

5. The Adaptive Organization
 Willingness to make change
 Identifies problems quickly
Internal and external looking
 Implements solutions
rapidly
 Focus on innovation
Upward communication
 Trust
 Risk taking is rewarded
 Candidness
Open to feedback
 Enthusiasm
 Long-term focus
 Skill Development
 Learning Organization

6. Prerequisites for Change
 Vision: Develop, articulate and communicate a shared
vision of the desired change
 Need: A compelling need has been developed and is
shared
 Means: The practical means to achieve vision: planned,
developed and implemented
 Rewards: Aligned to encourage appropriate behavior
compatible with vision and change
 Feedback: Given Frequently

7. An Effective Change Sponsor Must Have
 Power: to legitimize change
 Pain: Personal Stake
 Vision: Total in-depth view
 Public/Private Role: Commitment and ability to support
change publicly/ meet privately with agents
 Performance Management: Ability to reward/confront
 Sacrifice: Pursue change despite personal price

8. What Effective Change Leaders Do
 Embrace change when it’s needed
 Develop a vision for change
 Communicate effectively
 Shake things up by challenging status quo and encouraging others to do
the same
 Stay Actively Involved by walking the walk and being visible about it.
 Direct, Review Implementation of change - continued participation -
never done attitude. Be in position to notice and coach.

9. Roles: The Change Players
 Sponsors: Senior management leaders - the driving force
of change - must walk the walk.
 Advocates: Allies of leaders, deploy the vision -
communicate - involve - sell - MOTIVATE
 Agents: Influence sponsors’ commitment, target
resistance, measure readiness, assess existing
people/structures
 Targets: Everyone in organization - develop, train,
reinforce, support

10. Role of Consultants
 Assessment of: management, key players, barriers, opportunities
 Coach/Develop/Train: help people adopt new behavior
 Plan: Assist in process/knowledge
 Values / Vision: Facilitate their development
 Redesign Organizational Factors: Rewards, Reports, Re-engineer
 Communications: Facilitate the process
 Project Management Assistance

11. Introduction
Change in business is not new — it’s just accelerating due
to…
 New technology.
 Global competition.
 Growth & increased complexity.
 The result: Change or die
Part II: The Nature of ChangePart II: The Nature of Change

12. What to expect from change
 Sense of loss, confusion.
 Mistrust and a “me” focus.
 Fear of letting go of that which led to success in the past.
 People hold onto & value the past.
 High uncertainty, low stability, high emotional stress
 Perceived high levels of inconsistency.
 High energy — often undirected.
 Control becomes a major issue.
 Conflict increases — especially between groups.

13. Individual prerequisites for change to occur
Thinking &
understanding
Emotional/
Motivational
Behavioral
Head Heart
Hands
Why should I change?Why should I change?
What’s in it for me?What’s in it for me?
What do I do differently?What do I do differently?

14. Change management
Effective Change
Equals
Altering
Mind-set
Harnessing
Motivation
Shaping
Behavior
The Effective Management of Change Involves An
Integrated Approach In Each Of These Three Arenas

15. Stages of change management
“Coming to Grips with the Problem”
“Working through the Change”
“Attaining and Sustaining Improvement”

16. Strategy/change implementation
“Coming to
Grips with
the Problem”
1.
Arenas of
Change
Stages
of Change
Management
2. “Working
through the
Change”
3. “Attaining and
Sustaining
Improvement”
Changing
Behavior and
Developing
Competency
and Capability
Behavior
(Capability)
Mind-set
(Thinking/
Understanding)
Breaking the
Conventional
Mind-set and
Generating a
Picture of the
Future
Dealing with
Reactions to
Loss and
Creating the
Will to
Succeed
Motivation
(Emotional/
Intuitive Dynamics)

17. 1. Identify (roughly) the stage person/group is in.
2. Determine obstacles/arenas:
a. Head
b. Heart
c. Hands
d. All of the above
3. Use tools to move through obstacles.
May need several simultaneously.
4. Recognize and acknowledge steps forward.
5. Cycle back to Step 1.
Part III: Leading Others
through Change
Part III: Leading Others
through Change

18. Understanding what stage of change they’re in
Questions Stage
 Do they see a need for change?
 How uncomfortable are they with the status quo?
 Do they have any sense of urgency about changing?
 Are they struggling with making the change work?
 Are they looking for ways to make it work?
 Are they communicating with others involved in the
change, to get salutations to problems, share Best
Practices, etc.
 Are they looking for ways to leverage the change?
To enhance it?
One:
Coming to grips with the
problem.
Two:
Working through the
change.
Three:
Attaining & sustaining
improvement.

19. The technology of leading sustainable change
Mind-set
(Thinking/
Understanding)
Stage One:
Arenas of
Change
Stages
of Change
Management
Motivation
(Emotional/
Intuitive Dynamics)
Behavior
(Capability)
 Gather data to convince
you/others that old way
no longer works.
 Confront myths,
assumptions, & beliefs
that prevent seeing
problem & changing.
 Increase dissatisfaction
with old ways.
 Increase confidence that
change is achievable.
 Outline costs of old way
& benefits of new way.
 Form team to gather
data.
 Have management talk
about data & need for
change.
 Assess individual
readiness to change.
 Identify specific
behaviors to change.
“Coming to
Grips with
the Problem”

20. The technology of leading sustainable change
Mind-set
(Thinking/
Understanding)
Stage Two:
Arenas of
Change
Stages
of Change
Management
Motivation
(Emotional/
Intuitive Dynamics)
Behavior
(Capability)
“Working
through the
Change”
 Create a vision of the
future & articulate the
new mind-set.
 Help people understand
both the big picture &
the details.
 Communicate the
purpose & benefits
broadly.
 Help people make the
link between solving
today’s issues & the new
plan.
 Hold “reality check”
meetings to work
through the threats,
losses, and resistance.
 Work through the
leaders’ emotion/
resistance first.
 Use individual gain/loss
analysis as as tool.
 Discuss how to manage
stress. Be supportive of
one another.
 Develop a new profile
of leadership success.
 Evaluate the top levels
of management in
stores.
 Involve employees in
building change plans.
 Reward successes;
expect & learn from
mistakes.
 Drive individual
behavior change.

21. The technology of leading sustainable change
Mind-set
(Thinking/
Understanding)
Arenas of
Change
Stages
of Change
Management
Motivation
(Emotional/
Intuitive Dynamics)
Behavior
(Capability)
“Attaining &
Sustaining
Improvement”
 Continually update
vision of desired future
& teamwork.
 Create forum for
feedback & continuous
learning.
 Continue to articulate
why’s & benefits.
 Celebrate & reward
successes.
 Deal with people who
will not change.
 Establish two-way
communication.
 Involve people for buy-
in.
 Continue to support
each other in managing
stress & change.
 Make sure systems &
rewards reinforce
desired behaviors.
 Train incoming people
in the new behaviors.
 Coach, give feedback,
& reinforce new
behavior.
 Deal with people who
cannot change.
Stage Three:

22. Addressing mind-set
 Learn it thoroughly yourself.
 Build relationships.
 Explain the purpose of change. Help them understand &
teach concept.
 Articulate the benefits.
 Link daily activities to their higher purpose & benefits.
 Repetition: Provide frequent & consistent communication
about change & what’s needed.
 Paint a picture of the successful future using best
practices.
Working with Mind-SetWorking with Mind-Set

23. Addressing behaviors
 Model desired behaviors & attitudes.
 Clearly define desired behaviors & behaviors that need to
change.
 Give feedback frequently to reinforce changed behavior
& correct wrong behavior.
 Coach & teach desired behavior.
Working with BehaviorsWorking with Behaviors

24. Addressing behaviors
 Identify training needs & communicate upwards.
 Create goals to work toward: a vision of success.
 Help people create specific, concrete behavior-change
plans as needed.
 Communicate in multiple forms.
Working with BehaviorsWorking with Behaviors

25. Summary
 You have to be comfortable with the change before you
can get others to change.
 People can’t (or don’t want to) change when they don’t
understand.
What, why, how, WIIFM.
 You can’t intervene until you understand the situation.
 Resistance is part of the change process.
Work with it.
 Address change at all three levels to be successful.
 Sustainable change occurs in steps.
Define your priorities. Don’t take on too much at once.

26. A stepped approach to change
Start
X
A journey of a thousand miles
occurs one step at a time.
Success