1.
By Giana Rosetti

2.
 An idea without and execution is an illusion
 The biggest challenge is to implement it
 Successful change programs begin with
targeted results
 Your level of success is determined by your
ability to deliberately alter business practices in
a timely and cost effective manner.

3.
 Change is hard
 We all go through it
 Change is never sequential
 Some of us manage our transitions better than
others
 Change impacts different people differently

4.
Who will I What
report to? decisions do I
How will my job have to
change? make? It‟s how changes will affect you!
What‟s
?
in it for How will my
me? performance
be
measured?
Who
will I During times of change, employees focus
work What on personal implications of the changes.
with? new skills
do I
need?
When will
the
Why
change
should I
?
impact
care?
me?
How will my Will this change be
co-workers be as difficult as the
effected? last change?

5.
 Each individual’s needs (and personal
consequences for failure) must be
analyzed.
 Your change management plan needs to
be that specific.
 Individuals formulate responses to
questions in large part by evaluating
their relationship with their boss.

6.
When Change Initiatives Fail, There Are Tangible Impacts to the Business:
 Change occurs only after great expense, both
financial and human
 Future change efforts are compromised
 Destroyed shareholder value
 Uncontrolled loss of knowledgeable and
valuable employees
 Prolonged, reduced productivity
 Lost opportunity in the marketplace
 Poor customer perceptions or worse
 Customer Attrition

7.
Change Management “bridges the gap”
between the technical and the human
sides, and prepares the organization to
accept and embrace change.
Successful transformations can lead to:
 Higher morale
 Increased productivity
 “Ownership” of new processes and
systems
 Accepted roles and responsibilities
Personal Change Management  Increased employee knowledge
“bridges the gap” between your  Reduced re-training
emotional and logical side
 Reduced “post change” support

8.
Working Metric Capabilities
Stages Knowledge Focus Reactive Proactive
0 Accidental Examples Pass/Fail Lucky Lucky
1 Repeatable Concepts Time Safe Occasional
2 Defined Metrics Cost Confident Competitive
3 Managed Responsibilities Robust Sure Aggressive
4 Mastered Vision Scope Automatic Formidable

9.
Focusing on these practices can help accelerate the change process.
Determine organizational readiness & build the business case for change.
Develop a compelling vision for change & create a sense of urgency
Create a strong guiding coalition of executives & generate stakeholder
commitment
Establish pervasive communications
Align organizational design and performance management systems
Build individual and team capacity to change
Generate short terms wins, consolidate gains & produce more change
Align culture and change process

10.
The Four Questions
 What’s changing or what needs to change in your organization?
 What factors external to your organization are causing you to
make these changes (e.g., lost market share, reduced product
life, increased competition)?
 What difficulties have you encountered in making changes?
 What are your organization’s strengths and weaknesses (highly
flexible, dedicated employees/legacy accounting system)?

11.
• To what extent have you been given reasons for why a significant change was necessary?
• To what extent did you feel a sense of urgency about the transition ?
• To what extent did your co-workers feel a sense of urgency about the transition?
• To what extent do your fellow employees understand the potential benefits of change?
• To what extent do managers discuss the linkage between daily activity and the new vision?
• To what extent does your manager generate energy and urgency in others to get things
done?
• To what extent does your manager create a sense of pride and trust in working with him or
her?
• To what extent are you provided with information about problems (e.g., profits up but
market share down?
• To what extent are you provided with information about potential problems (e.g., a new
competitor is showing signs of becoming more aggressive)?
• To what extent are you provided with information about potential opportunities (e.g.,
through technology or new markets)?

12.
RATING SCALE
Absolutely Top-Notch...........Score 90-100
Does the Job.........................Score 50- 90
Needs Work..........................Score 0- 50
0 20 40 60 80 100
“Needs Work” range “Does the Job” range “Absolutely Top-Notch”
range

13.
The vision, mission, and goals of your organization:
a. ...are well defined for individuals.
0 20 40 60 80 100
CEO
b. ... are accepted by individuals and used to guide their daily priorities.
0 20 40 60 80 100
CEO

14.
• To what extent are the workforce‟s ideas and knowledge being tapped to question and test
the validity of the proposed methods of operation?
• To what extent do you feel you have a real stake in improving your organization‟s
performance as opposed to just your narrow job responsibilities?
• To what extent do business unit leaders act on criticisms and suggestions for
improvement?
• To what extent is your input valued for improving your job responsibilities during the
transition?
• To what extent were you trained on change management concepts and techniques?
• To what extent was information about the transition easily understood by every member of
the workforce?
• To what extent does your manager constantly demand new ideas and perspectives?
• To what extent does your manager sustain pressure for topeople achieve more than
expected?

15.
 Using every vehicle possible to constantly communicate the new vision
and strategies
 When communicating major change to employees, keep it simple and
avoid mission statements and management proclamations – most
important, give them the facts; be straight.
 Introduce the planned change face to face, not through
videos, publications or vast, impersonal public meetings.
 Target supervisors: get senior managers who are involved in the change
to brief small groups of supervisors face to face.
 As a consultant, spend 80% of your time concentrating efforts on
supervisors
 Do briefings in two rounds – first, to explain the change and get
supervisors’ reactions and recommendations, second, to explain any
modifications of the planned change based on the supervisors’
feedback.

16.
• To what extent do you feel the organization communicates honestly and openly about the
changes going on?
• To what extent does information about the status of the business flows freely throughout
the organization with minimal filtering?
• To what extent does information (business, industry, production, etc.) flow to the right
people, at the right time, in the most appropriate/effective medium throughout the
organization, without barriers?
• To what extent do you have access to the information you needed (daily? in the long run?)
• To what extent does useful knowledge and good ideas travel across the organization?
• To what extent do business units learn from one another (i.e., reinventing the wheel
almost never happened)?

17.
a. Information about the status of the business flows freely throughout organization with minimal filtering.
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CEO
b. Your organization’s leaders continuously display decisiveness, consistency, and approachability
during times of transition.
0 20 40 60 80 100
CEO

18.
• To what extent is the design of your job based on the tasks that need to be performed
rather than on position descriptions, reporting relationships, and title changes?
• To what extent does your organization encourage individuals, regardless of job description,
to search for innovation?
• To what extent where you briefed on how your job impacts the goals and targets of other
department?
• To what extent are there lots of planned opportunities for talk with other departments and
joint activities?
• To what extent do you feel you receive a sufficient amount of feedback from internal and
external sources to help you improve what you do?
• To what extent does your current performance appraisal and compensation system
support/promote the new way for doing work?
• To what extent does your current promotion system support/promote the new way?
• To what extent do you understand what you must do to satisfy the customer‟s needs?

19.
a. You can link your individual contributions to satisfaction of client’s needs.
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CEO
b. Your organization seeks to partner with its clients on product and service
conception, design, production, and evaluation.
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CEO

20.
 Getting rid of obstacles
 Skills (Technical, Management, Leadership)
 Changing systems or structures that
undermine the change vision
 Encouraging risk taking and nontraditional
ideas, activities, and actions

21.
• To what extent do you understand how your department‟s performance is measured?
• To what extent is it the “norm” for you to look for problems and opportunities that might
impact the success of the transition?
• To what extent is there sufficient motivation and rewards (policies, procedures, and
methods) for encouraging people to contribute in ways that exceed their job/work
descriptions?
• To what extent does your organization provide „idea‟ resources for innovation and
improvement (industry journal, internet , competitors analysis)?
• To what extent were there specific individuals named as change agents for your business
unit?
• To what extent does the organization focus on the deliberate selection (hire or promotion)
and development of people who can embrace and thrive in fast changing environments?
•

22.
Generating short-term wins
 Planning for visible improvements, or “wins”
 Create those wins
 Visibly recognize and reward people who made the
wins possible
Consolidate gains and producing more change
 Using increased credibility to change all
systems, structures, and policies that don’t fit
together and don’t fit the transformation vision
 Hire, promote, and develop people who can
implement the change vision

23.
• To what extent are you kept abreast of day to day progress during the transition?
• To what extent are you able to use the vision to guide the decisions you make on a daily
basis?
• To what extent are the workforce‟s ideas and knowledge used to question and test the
validity of how your department‟s performance would be measured?
• To what extent is HR a key element in the success of the transformation?
• To what extent are mechanisms in place to assure that new learning was rapidly captured
and disseminated throughout the organization?
• To what extent are the short-term goals achievable?
• To what extent is progress tracked against plans/goals and necessary adjustments made
on a real-time basis?
• To what extent does your department adapt to unexpected problems and identify workable
solutions?
• To what extent does your organization acknowledge mistakes fast and attempt to fix them?

24.
a. The organization is able to execute major and multiple actions quickly and efficiently.
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CEO
b. Your organization supports the continuous development of individual adaptability skills
(e.g., collaboration, communication, and continuous learning).
0 20 40 60 80 100
CEO

25.
 Change sticks only when it becomes “the way we do things around
here.”
 Culture is powerful for three primary reasons (John Kotter)
 New employees are selected and indoctrinated through culture.
 Culture exerts itself through the actions of hundreds or
thousands of people.
 All of this happens without much conscious intent and thus is
difficult to challenge or even discuss.
 Two approaches to anchoring changes in an organization’s culture.
 Actively show people how specific behaviors and attitudes have
helped improve performance.
 Verify that promotion and performance criteria are fostering the
next generation of management that personifies the new vision
(this takes time).
 Ask a co-worker to describe your organization’s culture.

26.
• To what extent is the right data tracked so that gains or improvements could be clearly
shown?
• To what extent does your organization have a culture that seeks our „difference‟ and
embraces challenge and self-critique?
• To what extent will lessons learned from this implementation be able to be shared
throughout the organization?
• To what extent did your organization clearly define how your performance would be
measured throughout the transition? (What were those measures?)
• To what extent are old work habits confronted, coached, and monitored to ensure that new
work habits were the only way for doing business?
• To what extent is poor performance confronted, coached, and monitored to instill
appropriate behavior?

27.
1. Cost vs. Volume growth comparison over the last 3 years - plot total costs ($) vs. total
product volume (units, lbs, etc.). I would use a regression analysis to compute the rate of
growth (slope) for each. Costs should not be going up as fast as volume.
2. I would separate manufacturing (materials, labor, etc) costs from non-manufacturing
(marketing, distribution, legal, etc) costs and perform the same analysis for the last 3
years. Looking to see how the functions (value vs. non-value adding) are accounting for
costs in the enterprise.
3. Product cost trend vs. Volume growth analysis for last 3 years. Perform similar analysis
to Step 1 for each product line. Need to identify which costs are shared to make
comparisons meaningful.
4. I would separate manufacturing (materials, labor, etc) costs from non-manufacturing
(marketing, distribution, legal, etc) costs and perform the same analysis for the last 3
years as in step 3.

28.
5. Cost structure vs. total cost for last 3 years. Manufacturing and non-manufacturing
costs will be plotted as a function of total costs.
6. Cost experience curve - for each product line, calculate unit product cost and chart by
year and volume over last 3 years. Did unit product cost go down significantly as
product volume went up? How did each product experience curve differ? What explains
the differences? Did cost experience curves hold? Why or why not? What is the slope
(hopefully downward)? Did the slopes decrease more rapidly as volume increased?
7. Cost variability analysis - use last 3 years to chart production costs by products. Did
unit costs vary significantly from one production run to the next? Why? Which product
exhibited the most variability in production costs? Why?
8. Value chain analysis, cost variance analysis, etc.