Managing change and transitions

1. Managing Change and
Transition
Rey Lugtu
www.reylugtu.com

2. What we will cover
 Understand forces of change
 Preparing for change
 Managing the change process and
transitions
 Building change management skills
 Changing organizational culture

3. Case Study:
Philippine Telecom Industry, 1997-2003
 Growth industry due to deregulation, 5% mobile
penetration in 1998
 High bargaining power of buyers/customer
 Low to moderate bargaining power of suppliers

4. • Global market leader
• Market leader in Philippines in 90’s
(analog technology)
• Relatively new global player in telecom
• Entered Philippines in mid 90’s
with GSM in Globe
Strategy: Project-focused strategy
PLDT Account
Globe Account
Smart Account
Services
Manager
Technical
Manager
Support
Functions
Country
Manager
Productivity and efficiency
What do you do if you were Nokia?

5. • Relatively new global player in telecom
(a rubber boots manufacturer)
• Entered Philippines in mid 90’s
with GSM in Globe
• 10% share in network equipment in 1995Our Vision
• A world where everyone can be connected.
• In 2015, 5 billion people always connected, and 100 fold more network traffic.
• It’s a world of experiences, shared experiences.
Our Promise
• We help customers feel close to what matters to them.
• One of our basic needs as human beings is the need to communicate and share.
• Our promise is to help fulfill this need, to help them feel close to what matters to them.
Objective in Philippines
•To gain market leadership in network equipment by 2003

6. Our Promise
• We help customers feel close to what matters to them.
• One of our basic needs as human beings is the need to
communicate and share.
• Our promise is to help fulfill this need, to help them feel
close to what matters to them.
Objective in Philippines
•To gain market leadership in network equipment
Strategy: Project-focused strategy
PLDT Account
Globe Account
Smart Account
Services
Manager
Technical
Manager
Support
Functions
Country
Manager
Productivity and efficiency
What do you do if you were Nokia?

7. PLDT Account
Globe Account
Smart Account
Nokia’s Structural Reorganization, 1999
Services
Manager
Technical
Manager
Support
Functions
Country
Manager
Project-Focused Strategy
Regional
Manager
Smart Account
Services
Managers
Technical
Managers
Support
Functions
Customer Focus Strategy
Globe Account
Services
Managers
Technical
Managers
Support
Functions

8. Changes in the environment
(market growth, bargaining power of buyers)
Change in strategy
(from project-focus and efficiency
to customer focus and effectiveness)
Change in structure and culture

9. Changing an
Organization
Changing an organization is the process of
modifying an existing organization to increase
organizational effectiveness.
4
Organizations undergo changes in response
to environmental forces – external and internal

10. Some External Forces for
Change
Environmental
factors
Marketplace
factors
 Attract or retain high-caliber
people
 Develop a global mind-set
 Improve collaboration with
government agencies
 Implement regulatory
changes
Technology &
Process
factors

11. Some Internal Forces for
Change
Cultural
factors
Skills
Technology &
Process
factors
 Establish greater trust
between team members
either functionally or cross-
functionally
 Reduce organizational
layers
 Work in a more
boundaryless way
 Improve cross-functional
communication/execution

12. Some Internal Forces for
Change
Cultural
factors
Skills
 Identify and develop the next
generation of leaders
 Improve understanding of the
business
 Improve technical skillsTechnology &
Process
factors

13. Some Internal Forces for
Change
Cultural
factors
Skills
Technology &
Process
factors
 Do a better job of utilizing or
leveraging technology
 Display greater flexibility or
adaptability in processes
 Improve productivity
 Create new products or offer
new services
 Reduce new product or service
introduction time
 Reengineer key processes

14. What are the external and
internal forces of change
that you are facing?
What happens if you don’t
respond to these changes?

15. 2010

24. How ready are we to
address these changes?
Changing complexities
Changing customer relationships
Changing operational requirements

25. THE SEVEN TRAITS OF
CHANGE-READINESS
 Resourcefulness
 They see more than one way to achieve a goal, and
they're able to look in less obvious places to find help.
They have a real talent for creating new ways to solve
old problems.
 Optimism
 Is the glass half empty or half full?
 Optimist recognizes opportunities and possibilities.
 Adventurousness
 Inclination to take risks and the desire to pursue the
unknown, to walk the path less taken.

26. THE SEVEN TRAITS OF
CHANGE-READINESS
 Passion / Drive
 Nothing appears impossible.
 intensity and determination.
 Adaptability
 Flexibility and resilience.
 Confidence
 Confidence is the belief in your own ability to handle it.
 Tolerance for Ambiguity
 The one certainty surrounding change is that it spawns
uncertainty. No matter how carefully you plan it, there is always
an element of indefiniteness or ambiguity.

27. Change Readiness Test
 Adventurers are great starters,
 Resourceful people are excellent problem
solvers,
 Optimists make good cheerleaders, and
their input is especially useful when people
feel discouraged.

28. Changes that we experience
 Job change
 New boss
 Office move
 Job loss
 Career change
 Learned new
technology
 Reorganization
 Promotion
 Got married
 Home purchase
 Built a home
 Community
involvement
 Started new hobby

29. Five Types of Change
 Evolutionary change: slow and incremental
 Developmental change: improving something
to make it better
 Transitional change: change that requires
something new and different
 Sweeping or dramatic change: immediate
change, often imposed on us
 Transformational change: a complete
alteration, conversion, or renovation

30. Examples of Each Type of Change

31. Change versus
Transition

32. Old organization
Is it immediately effective and performing
Regional
Manager
Smart Account
Services
Managers
Technical
Managers
Support
Functions
Globe Account
Services
Managers
Technical
Managers
Support
Functions
New organization
Transition
PLDT Account
Globe Account
Smart Account
Services
Manager
Technical
Manager
Support
Functions
Country
Manager

34. Rackmount
UPS
Desktop
UPS
Large Facility
UPS
Network
UPS
Row Based
Cooling
Inverters
President &
Country Mgr
Telecom
Products
Enterprise
Products
Services
Industrial
Products
Apodys AC UPS
5-500 kVA
Apodys Charger
10-500kW
T&Dys Charger
<10kW
AC & DC Switchgears
After-sales support
Data center assessment
Battery monitoring
Facilities management

35. But there are changes in the
environment…..
 Competitive environment
 Entry of Chinese competitors
 High bargaining power of customers
 Opportunities in certain sectors (BPO,
Government)
 Acquisition of Avocent, a data center
software company

36. Smart anticipation of our customers’ rapidly changing business environments
makes Emerson Network Power the singular choice for integrated infrastructure
management solutions and best-in-class pre- and post-sales support in
Philippines.
•Intellectual Curiosity – We hire and develop the best and challenge ourselves to
continuously learn, grow, collaborate and collectively engage in the business
•Passion to Win – We relentlessly tackle tough problems, play to win and deliver results
for the entire enterprise
•Commitment to Our Customers – We believe in creating relationships with our
customers that are built on a foundation of market knowledge, a focus on quality and a
commitment to protect and enhance their business
•Relationship of Trust – We are committed to ethical behavior, integrity and honesty,
and being respectfully direct with all.
Our Values
Our Vision

37. President &
Country Mgr
Telecom
Products
Enterprise
Products
Services
Industrial
Products
Product focused
Strategy
President &
Country Mgr
Telecom
Vertical
Banking &
Financial
Services
Vertical
Services
Industrial
Vertical
BPO
Vertical
Govt
Vertical
Customer focused
Strategy
Transition

38. Three Phases of Transition
William Bridges
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go
Time

39. Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go

40. The First Phase – The
Ending
Letting go of the old ways and the
old identity people had

41. Minimizing
Resistance
to Change
Communication
Training
Employee
Involvement
Stress
Management
Negotiation
Coercion
Minimizing Resistance to
Change

42. How to get people to let go
 Identify who is losing what
 Accept the reality and importance of the
subjective losses
 Don’t be surprised at overreaction
 Acknowledge the losses openly and
sympathetically

43. How to get people to let go
 Expect and accept the signs of grieving
 Compensate for the losses
 Give people information repeatedly
 Define what is over and what isn’t

44. How to get people to let go
 Mark the endings
 Treat the past with respect
 Let people take a piece of the old way with
them
 Show how endings ensure the continuity
of what really matters

45. How to get people to let go
 Finally, whatever must end, must end!
Don’t drag it out. Plan carefully, allow time
for healing, but make sure that the action
is large enough to get the job done!
In taking possession of a state, the conqueror should well
reflect as to the harsh measures that may be necessary, and
then execute them at a single blow…Cruelties should be
committed all at once.
Niccolo’ Machiavelli, Italian Political Philosopher
It doesn’t work to leap a 20-foot chasm in two 10-foot jumps.
American Proverb

46. Keys to Responding to Resisters
(DuFour & Eaker, 1998)
 Assume good intentions
 Identify specific behaviors essential to the
success of the initiative
 Focus on behavior, not attitude. Monitor
behavior.
 Acknowledge and celebrate small victories
 Confront incongruent behavior with
specific concerns and communicate logical
consequences.

47. Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go

48. The Second Phase –
The Neutral Zone
The psychological no-man’s land
between the old reality and the
new one

49. Dangers of the Neutral Zone
 Anxiety rises and motivation falls
 Productivity suffers
 Old weaknesses reemerge with a vengeance
 People are overloaded and get mixed signals.
 People become polarized (poorly managed, this
can lead to terminal chaos)
 Organization is vulnerable to attack from the
outside and sabotage within

50. Helping people through the Neutral
Zone
 Normalize
 Redefine
 Create temporary systems
 Strengthen communications and
relationships
 Use the time creatively (leaders should
model this – start with yourself!)

51. Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go

52. The Third Phase –
Launching a New
Beginning
A start can and should be carefully
planned. Starts take place on a
schedule as a result of decisions
The Four P’s

53. The Four P’s
 Purpose
 Clarify and communicate
 Picture
 Give them a vision
 Plan
 This is not a plan for the change but a plan for the
transition (should be detailed, person-oriented, and
step-by-step)
 Part
 Integrate and show people how they fit into the new
scheme

54. Be Very Clear in Your Direction
 If you cry, “Forward,” you must make it
clear the direction in which to go.
 Don’t you see that if you fail to do that and
simply call out the word to a monk and a
revolutionary, they will go in precisely the
opposite directions.
 Anton Chekhov, Russian Writer

55. Reinforce the New Beginning
 Rule 1 – Be consistent
 Rule 2 – Ensure quick successes
 Rule 3 – Symbolize the new identity
 Rule 4 – Celebrate the success
William Bridges: “Managing Transitions”

56. Doing an Impact Analysis
 Strategy. How does the change align with the big picture? In
what ways does it support the strategic direction of my
organization?
 Structure. Can I implement this change within the current
structure of my organization, or is there a need to shift roles
and responsibilities?
 Skills. Is there a need for training or education? Do those who
have to make the change work have the necessary skills?
 Processes. What impact will this change have on the way we
do our work? Do we have to change the way we communicate,
coordinate our work, manage priorities, make decisions, and
meet deadlines? Do we need to introduce new procedures or
processes?
 Culture. What behaviors are important to support this change?
Do we need to improve our teamwork, communication,
responsibility sharing, customer responsiveness, or quality of
execution in order to make this change successful?

57. Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go

58. Managing Culture
Change

59. Organizational Culture
 A set of values or beliefs that is unique to
any one organization
 Some issues
• Strength of the culture
• Hidden elements
• Clicks
• Values
• Trying to get on the inside

60. Positive Aspects of an
Organizational Culture
 Guides decision making
 Provides identity for members
 Amplifies commitment
 Guides employee behavior
 Provides justification for actions

61. Strength of an Organizational
Culture
 A strong culture could help an organization
adapt to the environment
 A strong culture can also be an anchor
around the neck of change

62. Visible Signs of Strong
Organizational Culture
 Stories
 Heroes
 Rituals
 Ceremonies
 Symbols
 Myths

63. Types of Cultures
 The Clan Culture
 A very friendly place to
work where people
share a lot of
themselves. It is like
an extended family.
Cameron, K., & Quinn, R., (1999). Diagnosing and Changing
Organizational Culture. New York: Addison-Wesley.

64. Types of Cultures
 The Hierarchy Culture
 A very formalized
structured place to
work. Procedures
govern what people
do.
Cameron, K., & Quinn, R., (1999). Diagnosing and Changing
Organizational Culture. New York: Addison-Wesley.

65. Types of Cultures
 The Adhocracy
Culture
 A dynamic
entrepreneurial, and
creative place to work.
People stick their
necks out and take
risks.
Cameron, K., & Quinn, R., (1999). Diagnosing and Changing
Organizational Culture. New York: Addison-Wesley.

66. Types of Cultures
 The Market Culture
 A results oriented
organization whose
major concern is with
getting the job done.
People are competitive
and goal-oriented.
Cameron, K., & Quinn, R., (1999). Diagnosing and Changing
Organizational Culture. New York: Addison-Wesley.

67. Studies show that
culture is closely related
to the effectiveness of
organizations.

68. Effectiveness depends on . . .
 the core values and beliefs of the
members of the organization.
 the policies and practices used by the
organization.
 the success in translating the core values
and beliefs into policies and practices.
 the match between values, beliefs,
policies, practices, and the organization’s
environment.

69. Model of Organizational Culture
Types

70. Studies on Culture Types
 Deshpande, Farley, and Webster (1993)
found that competing values of the market
culture outperform those of the clan
culture.
 Those of the adhocracy culture
outperformed those of the diagonally
opposing hierarchy culture.
 The speed of response to environmental
changes which determine a higher
performance is thus culturally dependent.

71. EXERCISE-
Organizational Culture
Assessment Instrument
(OCAI)

72. How Organizational Cultures
Form
Philosophy
of the
Organization’s
Founders:
Bill Hewlett &
Dave Packard
John Gokongwei
Bill Gates
Organizational
Culture
Selection
Top
Management
Socialization

73. Strengthening
Organizational
Culture
Founders
and leaders
Culturally
consistent
rewards
Stable
workforce
Selection
and
socialization
Managing the
cultural
network
Strengthening Organizational
Culture

74. Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go

75. Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go
The Results

76. Thank You