CSULA

Managing Change

April 13, 2000

Peter Levin, MBA, Ph.D.

RHR International Company 949-364-8909

Its not so much that were afraid of change, or so in love with the old ways, but its the place in between that we fear its like being between trapezes. Its Linus when his blanket is in the dryer. Theres nothing to hold on to.

- M. Ferguson

Class agenda

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

Part I: Organizational Issues 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

The Adaptive Organization

Willingness to make change Identifies problems quickly

Risk taking is rewarded Candidness

Internal and external looking

Open to feedback

Implements solutions rapidly Focus on innovation

Enthusiasm Long-term focus Skill Development Learning Organization

Upward communication

Trust

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

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

What Effective Change Leaders Do

Embrace change when its 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.

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 Influence sponsors commitment, target resistance, measure readiness, assess existing people/structures

Agents:

Targets: Everyone in organization - develop, train,

reinforce, support

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

Introduction Part II: The Nature of Change

Change in business is not new its just accelerating due to New technology. Global competition. Growth & increased complexity.

The result: Change or die

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.

Individual prerequisites for change to occur

Why should I change?
Thinking & understanding Emotional/ Motivational

Whats in it for me?

Head

Heart

Behavioral

Hands

What do I do differently?

Change management
The Effective Management of Change Involves An Integrated Approach In Each Of These Three Arenas

Effective Change

Equals
Altering Mind-set Harnessing Motivation Shaping Behavior

Stages of change management

Coming to Grips with the Problem

Working through the Change

Attaining and Sustaining Improvement

Strategy/change implementation
Arenas of Change Stages of Change Management 1. Coming to Grips with the Problem

Mind-set (Thinking/ Understanding)

Motivation (Emotional/ Intuitive Dynamics)

Behavior (Capability)

2. Working through the Change

Breaking the Conventional Mind-set and Generating a Picture of the Future

Dealing with Reactions to Loss and Creating the Will to Succeed

Changing Behavior and Developing Competency and Capability

3. Attaining and Sustaining Improvement

Part III: Leading Others through Change

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.

Understanding what stage of change theyre in

Questions
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?

Stage
One: Coming to grips with the problem. Two: Working through the change. Three: Attaining & sustaining improvement.

The technology of leading sustainable change

Arenas of Change Stages of Change Management Stage One: Coming to Grips with the Problem

Mind-set (Thinking/ Understanding)

Gather data to convince you/others that old way no longer works. Confront myths, assumptions, & beliefs that prevent seeing problem & changing.

Motivation (Emotional/ Intuitive Dynamics)

Increase dissatisfaction with old ways. Increase confidence that change is achievable. Outline costs of old way & benefits of new way.

Behavior (Capability)

Form team to gather data. Have management talk about data & need for change. Assess individual readiness to change. Identify specific behaviors to change.

The technology of leading sustainable change

Arenas of Change Stages of Change Management Stage Two: Working through the Change

Mind-set (Thinking/ Understanding)

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 todays issues & the new plan.

Motivation (Emotional/ Intuitive Dynamics)

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.

Behavior (Capability)
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.

The technology of leading sustainable change

Arenas of Change Stages of Change Management Stage Three: Attaining & Sustaining Improvement

Mind-set (Thinking/ Understanding)

Continually update vision of desired future & teamwork. Create forum for feedback & continuous learning. Continue to articulate whys & benefits.

Motivation (Emotional/ Intuitive Dynamics)

Celebrate & reward successes. Deal with people who will not change. Establish two-way communication. Involve people for buyin. Continue to support each other in managing stress & change.

Behavior (Capability)
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.

Addressing mind-set
Working with Mind-Set MindLearn 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 & whats needed. Paint a picture of the successful future using best practices.

Addressing behaviors
Working with 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.

Addressing behaviors
Working with 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.

Summary
You have to be comfortable with the change before you can get others to change. People cant (or dont want to) change when they dont understand.

What, why, how, WIIFM.

You cant 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. Dont take on too much at once.

A stepped approach to change

Success

A journey of a thousand miles occurs one step at a time.

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