Managing and leading change

Managing and Leading ChangeManaging and Leading Change

Warren WatsonWarren WatsonArizona State University

2012

Why Do We Care About Change?Why Do We Care About Change?

• We’re living in a period where most We’re living in a period where most organizations, including this newspaper, are organizations, including this newspaper, are undergoing significant organizational change.undergoing significant organizational change.

• Managers must learn to embrace, lead and Managers must learn to embrace, lead and manage change to survive and thrive.manage change to survive and thrive.

• This means adopting management styles that are This means adopting management styles that are open, flexible and decentralized.open, flexible and decentralized.

• Problem is: Most of us resist change even though Problem is: Most of us resist change even though it may lead to improvements. it may lead to improvements.

What is Change: What is Change: Textbook Definition?Textbook Definition?

““Vast, titanic force hurtling us on a roller-Vast, titanic force hurtling us on a roller-coaster adventure of seething white-water coaster adventure of seething white-water chaos, threatening to grind us like chaos, threatening to grind us like roadkillroadkill!”!”

--- Training Magazine--- Training Magazine

Ways to Promote Organizational ChangeWays to Promote Organizational Change

• Establish a sense of urgencyEstablish a sense of urgency• Develop a vision and strategyDevelop a vision and strategy• Communicate the change visionCommunicate the change vision• Empower staffers to actionEmpower staffers to action• Generate short-term winsGenerate short-term wins• Consolidate gains, then produce more changeConsolidate gains, then produce more change• Anchor new approaches in the cultureAnchor new approaches in the culture

--- Sources: John Kotter, “Leading Change;” Kathy --- Sources: John Kotter, “Leading Change;” Kathy RutkowskiRutkowski

The Stages of ChangeThe Stages of Change

As in death and divorce, those going through As in death and divorce, those going through change reach various stages of experience:change reach various stages of experience:

• 1) Denial1) Denial• 2) Anger2) Anger• 3) Bargaining3) Bargaining• 4) Despair4) Despair• 5) Acceptance5) Acceptance

Challenges to ChangeChallenges to Change

• ““We don’t have time We don’t have time for this stuff”for this stuff”

• ““The stuff isn’t The stuff isn’t working”working”

• ““Where are we going Where are we going with this”with this”

• ““We don’t have We don’t have enough help”enough help”

• ““This stuff isn’t This stuff isn’t relevant”relevant”

• ““We keep reinventing We keep reinventing the wheel”the wheel”

• ““They never let us do They never let us do this stuff”this stuff”

• ““We’ve tried this We’ve tried this before”before”

Why People Resist ChangeWhy People Resist Change

• No one has sold the reasons for change No one has sold the reasons for change effectively enougheffectively enough

• There is low tolerance for changeThere is low tolerance for change• Parochial self interest gets in the wayParochial self interest gets in the way• There is misunderstanding and lack of trustThere is misunderstanding and lack of trust

““Most failures can be traced to a lack of Most failures can be traced to a lack of commitment … Commitment is the glue that commitment … Commitment is the glue that binds the people and goals behind changebinds the people and goals behind change .”.”

--- Tom Silvestri, Media General Inc.--- Tom Silvestri, Media General Inc.

Techniques in Managing ChangeTechniques in Managing Change

• Create a strategy to help change, and Create a strategy to help change, and communicate, communicate, communicatecommunicate, communicate, communicate

• Terminate the presentTerminate the present• ID and explain new performance requirementsID and explain new performance requirements• Allow some “learning” mistakesAllow some “learning” mistakes• Create apparatuses that reward desired new Create apparatuses that reward desired new

behaviorbehavior more more

More TechniquesMore Techniques

• Train to improve skillsTrain to improve skills• Reinforce expectationsReinforce expectations• Give consistent and supportive feedbackGive consistent and supportive feedback• Celebrate short-term victoriesCelebrate short-term victories• Continue to encourage innovation, Continue to encourage innovation,

creativitycreativity• Do things face to face!Do things face to face!

6 Ways of Dealing with Resistance6 Ways of Dealing with Resistance

1) Education and Communication• When to use: Lack of information or factsWhen to use: Lack of information or facts• Advantage: Once persuaded, people will Advantage: Once persuaded, people will

helphelp


2) Participation and involvement• When to use: Designers of change need When to use: Designers of change need

information; others have power to resistinformation; others have power to resist• Advantage: Participants commit to change; Advantage: Participants commit to change;

new information is addednew information is added


3) Facilitation and support• When to use: Where people are resisting When to use: Where people are resisting

because of adjustment difficultiesbecause of adjustment difficulties• Advantage: Although time consuming, this Advantage: Although time consuming, this

is the only road to counter adjustment is the only road to counter adjustment problemsproblems


4) Negotiation and agreement• When to use: When clear that an individual When to use: When clear that an individual

or group will clearly lose outor group will clearly lose out• Advantage: An easy way to avoid major Advantage: An easy way to avoid major

resistanceresistance


5) Manipulation• When to use: Where other options are too When to use: Where other options are too

expensive or won’t workexpensive or won’t work• Advantage: Relatively quick and Advantage: Relatively quick and

inexpensiveinexpensive


6) Coercion• When to use: Where speed is essentialWhen to use: Where speed is essential• Advantage: A speedy way to combat Advantage: A speedy way to combat

resistanceresistance

Making it PermanentMaking it Permanent

Making it permanent means the change is Making it permanent means the change is no longer viewed as tentative, is a matter of no longer viewed as tentative, is a matter of routine, and is now the norm. If you arrive routine, and is now the norm. If you arrive at this stage, change becomes instinctual. at this stage, change becomes instinctual. This is ultimate level of commitment.This is ultimate level of commitment.

--- Harvard Business Review --- Harvard Business Review

Managing Through Change;Managing Through Change;Managing Through a DistractionManaging Through a Distraction

• Some lessons from Carly Fiorina, Some lessons from Carly Fiorina, chairwoman and chief executive officer of chairwoman and chief executive officer of Hewlett-Packard Co. Hewlett-Packard Co.

• Fiorina led a long and storied fight to win a Fiorina led a long and storied fight to win a merger with Compaq Computer Corp.merger with Compaq Computer Corp.

5 Lessons Learned5 Lessons Learned

1) Have a strategic vision and a peripheral 1) Have a strategic vision and a peripheral vision, so you can look ahead and look vision, so you can look ahead and look around.around.

Lessons LearnedLessons Learned

2) Be proactive in communicating 2) Be proactive in communicating constantly and thoroughly with your staff constantly and thoroughly with your staff through face-to-face meetings, emails and through face-to-face meetings, emails and voice mails.voice mails.


3) Manage and act with flexibility. Stuff 3) Manage and act with flexibility. Stuff happens!happens!


4) Build your team. Success is always 4) Build your team. Success is always derived from the right people and derived from the right people and teamwork.teamwork.

Fiorina’s LessonsFiorina’s Lessons

5) Trust that you know more about your 5) Trust that you know more about your business or specialty than outside observers business or specialty than outside observers and critics. Be confident.and critics. Be confident.

‘‘A Strong Internal Compass’A Strong Internal Compass’

““Leadership requires a strong internal Leadership requires a strong internal compass. You have to have a strong sense compass. You have to have a strong sense of what you will need and what you think is of what you will need and what you think is right, because there are a million things right, because there are a million things that can blow you off course (during that can blow you off course (during changechange.”.”

--- Carly Fiorina, Hewlett-Packard Co., as told to --- Carly Fiorina, Hewlett-Packard Co., as told to the Wall Street Journalthe Wall Street Journal

““Learn and Move On’Learn and Move On’

““The truth is I don’t spend a lot of time on The truth is I don’t spend a lot of time on hindsight. When you make a mistake, you hindsight. When you make a mistake, you have to learn from it and move onhave to learn from it and move on.”.”

--- Carly Fiorina, Hewlett-Packard Co.--- Carly Fiorina, Hewlett-Packard Co.

Change is a ProcessChange is a Process

Jellison’s J-Curve:: 1) Status quo1) Status quo

2) Taking the plunge2) Taking the plunge

3) Bottoming out3) Bottoming out

4) Gaining ground4) Gaining ground

5) Success and mastery!5) Success and mastery!

Another ProcessAnother Process

Three steps:: 1) Preparation1) Preparation 2) Acceptance2) Acceptance 3) Commitment3) Commitment

Committed change: Employees own the change. Committed change: Employees own the change. They add enthusiasm and high-energy They add enthusiasm and high-energy involvement.involvement.

--- Tom Silvestri, Media General Co.--- Tom Silvestri, Media General Co.

Change Style IndicatorChange Style Indicator

• This Discovery instrument captures your preferred This Discovery instrument captures your preferred style in approaching changestyle in approaching change

• Identifies you as conserver, pragmatist or originatorIdentifies you as conserver, pragmatist or originator• Conservers prefer gradual and incremental changeConservers prefer gradual and incremental change• Originators prefer a faster and more radical Originators prefer a faster and more radical

approach to changeapproach to change• Pragmatists prefer change that is functional and Pragmatists prefer change that is functional and

more reflective of the demands of a situationmore reflective of the demands of a situation

ConserversConservers

• Appear disciplined, precise, methodical, Appear disciplined, precise, methodical, cautiouscautious

• Prefer solutions that are tested and provenPrefer solutions that are tested and proven• Accept conventional assumptionsAccept conventional assumptions• Enjoy predictabilityEnjoy predictability• Prefer group problem-solving, decision-makingPrefer group problem-solving, decision-making• Improve efficiency, maximize continuity and Improve efficiency, maximize continuity and

stabilitystability• Sometimes confuse the means with the endSometimes confuse the means with the end

OriginatorsOriginators

• May appear undisciplined, disorganized, abstract May appear undisciplined, disorganized, abstract and spontaneousand spontaneous

• Prefer quick and expansive changePrefer quick and expansive change• Challenge accepted assumptionsChallenge accepted assumptions• Enjoy risk-takingEnjoy risk-taking• Sometimes focus on individual contributionsSometimes focus on individual contributions• Appear as visionary in their thinkingAppear as visionary in their thinking• May treat accepted policies and procedures with May treat accepted policies and procedures with

little regard.little regard.

PragmatistsPragmatists

• May appear practical, agreeable and flexibleMay appear practical, agreeable and flexible• Are more focused on results than structure and Are more focused on results than structure and

organizationorganization• Serve as mediators and bridgersServe as mediators and bridgers• See both sides of an argumentSee both sides of an argument• Explore accepted assumptions when appropriateExplore accepted assumptions when appropriate• May take a more middle-of-the-road approachMay take a more middle-of-the-road approach• Solve problems in ways that emphasize Solve problems in ways that emphasize

workable outcomesworkable outcomes

Perceptions: Conservers v/v OriginatorsPerceptions: Conservers v/v Originators

Conservers see originators as:: --- --- DisruptiveDisruptive

--- Disrespectful of tradition and history--- Disrespectful of tradition and history

--- Generators of turbulent work --- Generators of turbulent work environmentsenvironments

--- Insensitive to the feelings of others--- Insensitive to the feelings of others

--- Wanting change for the sake of change --- Wanting change for the sake of change

Perceptions: Originators v/v ConserversPerceptions: Originators v/v Conservers

Originators see conservers as:: --- --- DogmaticDogmatic

--- Hesitant to try new ideas--- Hesitant to try new ideas

--- Compliant to authority--- Compliant to authority

--- Stuck within the system--- Stuck within the system

--- Defenders of the status quo--- Defenders of the status quo

Perceptions: PragmatistsPerceptions: Pragmatists

Pragmatists can be perceived by strong conservers AND originators as:: --- --- CompromisingCompromising

--- Mediating--- Mediating

--- Indecisive--- Indecisive

--- Easily influenced--- Easily influenced

--- Non-committal--- Non-committal

SourcesSources

• Tom Silvestri, Media General Inc.Tom Silvestri, Media General Inc.• Discovery LearningDiscovery Learning• Wall Street JournalWall Street Journal• Harvard Business ReviewHarvard Business Review