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Confidential & Proprietary • Internal Kaplan Use Only.
CHANGE MANAGEMENT: RESULTS
___% of change initiatives fail to achieve desired outcomes
2006 Study in Harvard Business Review
___% of organizations experience a decline in workforce
productivity during change management initiatives
Recent research by Accenture
___% of organizations experience a decline in employee
engagement after a major cultural change
2005 report from Towers Perrin
Confidential & Proprietary • Internal Kaplan Use Only.
Implementing Effective Change requires that
Solutions be addressed hand in hand with the
Acceptance of the People
Your Change
(A)Acceptanceof the People
(E) EFFECTIVE CHANGE
(S)Solution’sCapability
Confidential & Proprietary • Internal Kaplan Use Only.
Change Management
Change Management Addresses the Human
Element of Change
Confidential & Proprietary • Internal Kaplan Use Only.
CHANGE MANAGEMENT: DEFINITION
The process, strategies, and activities that support
organizational and personal transitions from the
current state, to the desired future state, in order to
achieve and sustain the desired business vision and
strategy.
CHANGE MANAGEMENT: DEFINITION
Confidential & Proprietary • Internal Kaplan Use Only.
WHY CHANGE MANAGEMENT?
We have significant business challenges
Changes are required to respond to these challenges
We all need change management skills to
successfully implement these business changes
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FOCUS ON LEADERSHIP
“Because of the seriousness of today’s change related
problems and the great potential for opportunities. It is
essential that as many people as possible learn how to
better assimilate major transitions. This challenge is best
approached, however, by those in leadership positions.”
Daryl R. Conner, Managing At The Speed of Change
Confidential & Proprietary • Internal Kaplan Use Only.
GOAL OF CHANGE MANAGEMENT
TIME
BU
SIN
ES
S P
ER
FO
RM
AN
CE
Denial
Anger
Depression
Bargaining
1. Minimize the dip
2. Ensure change is sustainable
Acceptance
Confidential & Proprietary • Internal Kaplan Use Only.
• Establishes strategic vision and manages
goals to fulfill it
• Inspires others to see the strategic vision and
their part in it
• Builds a strong team with clear roles for team
members
• Demonstrates passion and enthusiasm
• Builds trust with internal and external
customers
• Communicates personal and business
perspective and values
Leadership Developing People
Change Agent
Analysis
• Motivates and empowers others
• Hires and staffs effectively
• Provides direct reports with feedback
and coaching
• Delegates work effectively
• Creates clear lines of accountability
• Fosters a high performance team
• Manages conflict
CommunicationProblem Solving
& Execution
• Participates in and drives change in the
organization
• Manages others through change
• Adjusts priorities to changing situations
• Demonstrates organizational agility and
versatility
• Embraces innovation
• Articulates a clear and compelling message
• Uses business communication skills and
etiquette
• Influences, persuades and negotiates
effectively
• Listens and inquires (vs. advocates)
• Communicates assertively and with
confidence
• Facilitates effective meetings
• Plans and executes projects effectively
• Establishes standards and
measurements
• Sets priorities
• Manages risks
• Holds self accountable for problems in
own area of control
• Demonstrates proficiency in fundamental
financial and business concepts
• Applies financial knowledge to business
risks/opportunities
• Understands business
interrelationships/how things work
together
• Gains insight from business experience
• Uses financial analysis to deliver results
KAPLAN COMPETENCIES
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CHANGE MANAGEMENT: FORMULA
14
E = S X A
Effectiveness = Solution Capability X Acceptance
Today we will focus on the A
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DO THE MATH…
E = S X AEffectiveness = Solution Capability X Acceptance
________E =____________ S X ___________ A
________E =____________ S X ___________ A
________E =____________ S X ___________ A
Confidential & Proprietary • Internal Kaplan Use Only.
FOCUS OF THIS MODULE
How individuals react to change
Individuals Response to Change
Steps to successfully implement change
Organizational Change Model
Confidential & Proprietary • Internal Kaplan Use Only.
I’m driving the
changeI’m not
driving the
change, but it
affects me
WHAT IS YOUR ROLE?
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I’m driving the changeDog, Dolly and Cat, Mr. Darcey
Not involved in decision
DEE MANAGING CHANGE
Family, we are
moving from
the North GA
mountains to
Ft Lauderdale!
Meow?
Say
what?
Confidential & Proprietary • Internal Kaplan Use Only.
BARGAINING
Let’s discuss some
alternatives…how
about you move
and come visit us?
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Stages of emotional response to change
Receive
news of the
change
Based on Elizabeth Kubler-Ross Model analyzing the emotional responses to grief by terminally
ill patients
Confidential & Proprietary • Internal Kaplan Use Only.
Stage Potential
Responses
Suggestions to
Overcome
Denial
Anger
Bargaining
Depression
Acceptance
5 STAGES OF EMOTIONAL RESPONSE TO
CHANGE
Confidential & Proprietary • Internal Kaplan Use Only.
EXAMPLE: 5 STAGES OF EMOTIONAL RESPONSE TO
CHANGEEmotional Response Response Suggestion to Overcome
Denial
Problem has corrected itself and it will be over soon
Review Business Case
Exhibit apathy and numbness Emphasize that change will happen
Rationalize change away Allow time for change to sink in
Anger
Sabotage the change effort Acknowledge legitimacy of anger
Play "Shoot the Messenger"Distinguish between feelings and inappropriate behavior
Withdraw from teamRedirect the blame from the change agent to the real reason necessitating the change (goals of the organization/business case)
BargainingCut a deal to spare them
Focus on how the individual or their area will benefit from the change
Suggest other concerns to redirect problem solving
Keep problem focused on the root cause
DepressionExpress a loss of control over the work environment
Provide a series of specific next steps and follow-up frequently
Increase in absenteeism Reinforce positive actions the individual takes
AcceptanceExpress ownership for solutions Use the individual as a coach or mentor for others
Focus on achieving benefits Provide recognition for their efforts.
Confidential & Proprietary • Internal Kaplan Use Only.
FOCUS OF THIS MODULE
How individuals react to change
Individuals Response to Change Steps an
organization needs to take to successfully implement change
Organizational Change Model
Confidential & Proprietary • Internal Kaplan Use Only.
JOHN P. KOTTER WRITES:
OVER THE PAST DECADE, I HAVE WATCHED MORE THAN A HUNDRED
COMPANIES TRY TO REMAKE THEMSELVES INTO SIGNIFICANTLY BETTER
COMPETITORS. THEY HAVE INCLUDED LARGE ORGANIZATIONS (FORD) AND
SMALL ONES (LANDMARK COMMUNICATIONS), COMPANIES BASED IN UNITED
STATES (GENERAL MOTORS) AND ELSEWHERE (BRITISH AIRWAYS),
CORPORATIONS THAT WERE ON THEIR KNEES (EASTERN AIRLINES), AND
COMPANIES THAT WERE EARNING GOOD MONEY (BRISTOL-MYERS SQUIBB).
THEIR EFFORTS HAVE GONE UNDER MANY BANNERS: TOTAL QUALITY
MANAGEMENT, REENGINEERING, RIGHT-SIZING, RESTRUCTURING, CULTURAL
CHANGE, AND TURNAROUND. BUT IN ALMOST EVERY CASE THE BASIC GOAL
HAS BEEN THE SAME: TO MAKE FUNDAMENTAL CHANGES IN HOW BUSINESS IS
CONDUCTED
IN ORDER TO HELP COPE WITH A NEW, MORE CHALLENGING MARKET
ENVIRONMENT.
A FEW OF THESE CORPORATE CHANGE EFFORTS HAVE BEEN VERY
SUCCESSFUL. A FEW HAVE BEEN UTTER FAILURES. MOST FALL SOMEWHERE IN
BETWEEN, WITH A DISTINCT TILT TOWARD THE LOWER END OF THE SCALE.
John Kotter
Confidential & Proprietary • Internal Kaplan Use Only.
INDIVIDUAL ACTIVITY
•5 Minutes: Think of successful changes you have
experienced in the work environment .
•Record the characteristics/elements of the
successful change
_Example: Clear Vision
__________________________________________________
__________________________________________________
__________________________________________________
_
Confidential & Proprietary • Internal Kaplan Use Only.
GROUP ACTIVITY - COMPARE YOURSELF TO
THE EXPERTS
• Discuss with your group the
characteristics/elements of the
Successful change
•Record on flip chart the common
elements/characteristics of a
successful change
Successful
Change
Elements
Confidential & Proprietary • Internal Kaplan Use Only.
JOHN KOTTER. A PROFESSOR AT HARVARD BUSINESS
SCHOOL, KOTTER INTRODUCED HIS EIGHT-STEP CHANGE
PROCESS IN HIS 1995 BOOK, "LEADING CHANGE."
Source: http://www.kotterinternational.com/KotterPrinciples/ChangeSteps.aspx
Confidential & Proprietary • Internal Kaplan Use Only.
THE KOTTER MODEL THE MODEL IS BASED ON RESEARCH WHICH
SHOWS THAT THERE ARE EIGHT CRITICAL STEPS AN ORGANIZATION
OR SERVICE NEEDS TO GO THROUGH TO ENSURE THAT CHANGE
HAPPENS AND STICKS.
THESE STEPS ARE:
1. ESTABLISH A SENSE OF URGENCY.
2. FORM A POWERFUL, GUIDING COALITION.
3. CREATE A VISION
4. COMMUNICATE THE VISION.
5. EMPOWER OTHERS TO ACT ON THE VISION
6. PLAN AND CREATE SHORT TERM WINS
7. CONSOLIDATE IMPROVEMENTS AND PRODUCE STILL MORE CHANGE
8. INSTITUTIONALIZE NEW APPROACHES
Confidential & Proprietary • Internal Kaplan Use Only.
Step 1:
Acting With Urgency Examine market and competitive realities
Identify and discuss crises, potential crises or major opportunities
Step 2:
Developing the Guiding Coalition
Assemble a group with enough power to lead the change effort
Encourage the group to work as a team
Step 3:
Developing a Change Vision
Create a vision to help direct the change effort
Develop strategies for achieving that vision
Confidential & Proprietary • Internal Kaplan Use Only.
Step 4:
Communicating the Vision Buy-in
Use every vehicle possible to communicate the new vision and strategies
Teach new behaviors by the example of the Guiding Coalition
Step 5:
Empowering Broad-based Action
Remove obstacles to change
Change systems or structures that seriously undermine the vision
Encourage the risk-taking and nontraditional ideas, activities, and actions
Step 6:
Generating Short-term Wins
Plan for visible performance improvements
Create those improvements
Recognize and reward employees involved in the improvements
Confidential & Proprietary • Internal Kaplan Use Only.
Step 7:
Don't Let Up
Use increased credibility to change systems, structures and policies that don't
fit the vision
Hire, promote, and develop employees who can implement the vision
Reinvigorate the process with new projects, themes, and change agents
Step 8:
Make Change Stick
Articulate the connections between the new behaviors and organizational
success
Develop the means to ensure leadership development and succession
Confidential & Proprietary • Internal Kaplan Use Only.
HOW MANY OF THE 8 DID YOU IDENTIFY?
Successful
Change
Elements
Confidential & Proprietary • Internal Kaplan Use Only.
PER JOHN KOTTER VIDEO
WHAT IS URGENCY?
WHY DO WE NEED URGENCY?
WHAT IS FALSE URGENCY?
WHAT HAVE YOU EXPERIENCED A
KAPLAN? AT OTHER COMPANIES?
ALSO: 11 MIN KOTTER ON URGENCY
HTTP://WWW.YOUTUBE.COM/WATCH?V=ZD8XKV2UR_S
video 4 Min Kotter on Urgency
http://www.youtube.com/watch?v=U5802F
BaMSI&feature=channel
Confidential & Proprietary • Internal Kaplan Use Only.
ORGANIZATIONAL CHANGE PROFILE
2. Form a
powerful
guiding
coalition
1.Create
and
maintain
Sense
of urgency
3. Create
Vision in
behavior
terms
4. Mobilize
people to act on
the vision
5. Plan and
create short
term wins
6. Monitor the
progress
7. Alter the
Systems &
Structures
Well
Done
Not
Done
Individual
Exercise
Confidential & Proprietary • Internal Kaplan Use Only.
EXAMPLE: HOW SUCCESSFUL WAS THIS
CHANGE?
2. Form a
powerful
guiding
coalition
1.Create
Sense
of
urgency
3. Create
vision
4. Communicate
vision
5. Empower
others to act on
the vision
6. Plan and
create short
term wins
7.Consolidate
improvements
and produce still
more change
8.Institutionalize
new
approaches
Well
Done
Not
Done
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