2. Agenda
Goal: Review class AB did on Leading Change in Fall 2018 and see
how we can integrate to our strategy practice
1. Understanding change
2. Planning change
3. Implementing change
4. Sustaining change
4. Defining change
● to make (someone or something) different / the act or result of becoming different
● Can be either
○ 1st (linear, continuous) or 2nd order (multidimensional/level, discontinuous)
○ Micro (personal), meso (organizational) or macro (societal)
○ Physical, structural, biological, chemical, technological, procedural, mental,
attitudinal, behavioural, cultural, or etc.
○ Evolutionary or revolutionary
○ Positive/effective or negative/ineffective
5. Defining organizational change
● Planned alterations of organizational components to improve the
effectiveness of the organization.
● Organizational components are the organizational mission and
vision, strategy, goals, structure, processes or systems, technology,
and people in an organization.
● When organizations enhance their effectiveness they increase
their ability to generate value for those they serve.
6. The grim reality
● Over the last 15 years, the amount of major change in
organizations that failed has remained constant at 70%.
● The Paradox of Change
7. Immunity to change (Boiling Frog Syndrome)
● Similar to our body biological immune system
● Own individual beliefs & collective mindsets prevent us from
changing
● Creates gap between what we know/want and actually do
● Needs both an
○ adaptive formulation (how problem tests current limits of our current level of
thinking); and
○ adaptive solution (need to adapt our mindset, before our skillset)
8. Change as a journey
● Change is a process, by which you move, from where you are to
where you want to be and from who you are to who you want to
be.
○ Not easy
○ Need to confront reality
○ Focus on future and monitor that it happens
○ Hold self / others accountable
○ Requires both leadership and management
12. What is a sense of urgency?
● First, leaders take actions that capture the attention of critical
organizational stakeholders
● Second, leaders explain the importance of making speedy changes
to the existing condition
● Urgency is important because meaningful organizational change
cannot occur without the cooperation of the affected stakeholders
13. How to create a sense of urgency?
● Leaders create a sense of urgency by both selling the value of a
future state to organizational stakeholders and making the status
quo a dangerous place for the stakeholders to remain
○ Showing the seriousness of leadership commitment to the coming change by
eliminating obvious waste
○ Sharing bad news with the organization
○ Sharing data throughout the organization that supports the claim that change
is necessary
○ Ensuring organizational decisions and management actions are in agreement
with change communications (walk the talk)
15. Create guiding coalition
● identify the right people who can become committed partners with
the change leader through the change launch and its
implementation.
● Change leader has to gain the willingness of the guiding coalition
members to work with the change leader to bring about the actual
organizational change
● An effective guiding coalition has the right mix of individuals at
different levels of the organization
19. The future cannot be predicted, it must be first imagined.
● Change starts with a vision/dream
● Ideal image of the future
● Need to know where you’re going, if you expect others to follow
● Needs to be communicated so others see what the leader sees
26. Choosing change strategies: Decision-Making
● How important is the issue for you (goal achievement, values, etc.)?
● What are the consequences if this issue is not resolved?
● What is the nature of the relationship between you and the other
person (short/long term, central/peripheral, equal or more/less
power, etc.)
● Is time of the essence?
33. Communications Plan
● Think strategically, consider…
○ Target audience, stakeholders
○ Purpose, desired effect
○ Key message(s)
○ Messenger / timing
● Build-in 2-way communication – input/feedback
● Use multiple forms (e.g. e-mail, intranet, wiki page, videos, F2F meetings, forums,
town halls, hot lines, etc.)
● Repeat, repeat, repeat … and
● Never underestimate the power of communication
35. Empower Broad Based Action
● End goal: organizational resistance to change is lessened and the existing
organizational infrastructure aligns more closely with the goals of the change effort
● This is a series of actions to remove obstacles that do not support the change vision
● Need an accurate understanding of the organizational barriers that hinder the
change implementation
● Organizational processes, structures, procedures, and reward systems will need to be
aligned with the new change vision as necessary
● Empowering broad based action also involves investment in employee and
managerial training and development
36. Most managers forget a critical principle of change
management: Organizations don't change; people do.
40. Why are we reluctant?
● Normal response
● Concerns vary
○ Information – why, what, how fast, etc.
○ Personal – WIIFM, win/lose, new skills, etc.
○ Implementation – how, support systems, what ifs, etc.
● People differ in their preferences / needs
● Perceived barriers
41. Dealing with reluctance
● Actively listen to understand their…
○ concerns
○ position and why it’s important to them
● Present to them how your ideas/proposals will address their concerns and help their
position
45. What is a short-term win?
● A short-term win is an organizational improvement that can be implemented in 6 to
18 months
● An effective short-term win is not a gimmick. It is a significant organizational
improvement
● A short-term win must meet three criteria:
○ Its success must be unambiguous.
○ It must be visible throughout the organization.
○ It must be clearly related to the change effort.
46. Why are short-term wins necessary?
● Generating short-term wins is necessary to prevent the loss of momentum and keep
the organization engaged. In reality, implementing major change takes time
● Senior leaders and the guiding coalition use short-term wins to eliminate
organizational discouragement with the slow pace of lasting major change
● Short-term wins also derail cynics and self interested resisters of change as the wins
provide real evidence about the validity of the change vision
47. How are short-term wins accomplished?
● Senior leaders and the guiding coalition identify feasible organizational efforts that
meet all of the three criteria for an effective short-term win
● This could be a short organizational effort that results in significant cost savings,
increased revenue, streamlined procedures, more effective use of existing
technology, etc.
● Senior leadership will need to support the allocation of organizational resources to
the short-term wins
● By implementing short-term wins that are clearly successful, visible throughout the
organization, and clearly related to the change effort, senior leadership and the
guiding coalition maintain the momentum for change
49. How to consolidate gains and implement more
change
● Through its communication and actions, senior leadership must keep the urgency level high
to effect change
● Using its organizational power, senior leadership sponsors the removal of unnecessary
inter-dependencies
● This requires the allocation of additional resources as the effort here is generally not on low
hanging fruit
● Lower level managers are needed to work with the guiding coalition. Working together, they
identify unnecessary inter-dependencies and lead projects as needed to effect change
● These gains further validate the legitimacy of the change effort and help to counter
organizational resistance
51. How to anchor change in the culture
● Senior leadership can anchor change by discussing the superiority of the new
changes and clearly explaining the benefits they bring. Must work on:
○ Identifying the norms and values that support the changes;
○ Ensuring selection, promotion, and succession processes screen talent according to the new norms
and values;
○ Modifying reward programs to align with the new norms and values;
○ Supplementing training and development activities to include the skills and competencies
associated with the changes; and
○ Modifying and eliminating organizational processes and procedures that do not support the changes.
● Anchoring change in the culture may require employee and managerial turnover or
reassignment to remove individuals who are barriers to progress.
53. Conclusion
1. Everything we do is change!
2. Important to help (our guide) our customers on how communicate the changes
3. Make sure we have the right people in the room to enact change
4. We should include bottom-up interviews to test the waters
5. We need to make sure our customers are not peanut butter spreading: put the right
incentive in place + remove barriers + focus on fewer than more initiatives
6. We play an important role in supporting the morale of our customers and help them
realize a bigger vision
7. Quarterly review of strategic plan with team to see if there’s any resistance + how we
can build up on the changes
63. Leadership vs Management
● Leadership: the process of influencing an organized group toward accomplishing its
goals.
● Management: the process of planning, organizing, coordinating and controlling the
efforts of an organized group toward achieving its goals.
74. Servant leadership
1. Listening – hears and is receptive to what others say
2. Empathy – understands others' thoughts/feelings
3. Healing – cares about others’ well-being, makes people whole
4. Awareness – understands oneself/their impact on others and is attuned to their context
5. Persuasion – influences others through clear and persistence communication that convinces others to
change
6. Conceptualization – responds to problems creatively, integrates presents realities / future possibilities
7. Foresight – understands how past, present & future are connected to predict the future
8. Stewardship – takes responsibility for leadership role entrusted to them
9. Commitment to others’ growth – treats others’ uniquely, helps each person grow personally/professionally
10. Building community – creates a supportive environment in which people feel safe and connected, but can
still express their individuality
75. Transformational leadership
● Provides vision, mission, purpose
● Empowers and stimulates others to create new ideas
● Instills pride, gains respect & trust
● Overcomes resistance by own charisma & inspiration
● Treats / coaches others individually
● Are best in times of change
● Differs from transactional leaders, who manage by exception & through reward
80. Creativity
● Multi-dimensional concept
○ Orientation: Flexibility vs. control
○ Size: Small vs. large
○ Focus: Internal vs. external
● People differ in their approach
● Context specific
● Entails both ideation and action
84. Fostering Creativity
● Stimulation and new experiences
● Fun
● Encouragement
● Experiment, test things out
● Promote constructive disagreement/divergent views
● Openness and tolerance
● Trust and respect
● Share thoughts, feelings, and hunches
● Value failure
● Use the “whole person”
94. What is Trust and Credibility?
Trust
● belief that someone or something is reliable, good, honest, effective
● reliance on the character, ability, strength, or truth of someone or something
● one in which confidence is placed
● dependence on something future, hope
● … can be measured by the degree of safety & security that we feel toward each other.
Credibility
● quality of being believed or accepted as true, real, or honest
● inspiring belief.
● based on expertise + trust