Step 1 group assignment

LEADERSHIP AND CHANGE MANAGE-MENT

Team 4:1. Sree Harsha

Pedamallu.2. Sai Supraja Nanduri3. Sai Akash Nori4. Chirag Sharma5. Yash Pokharna 6. Naresh Sabani

Learning Objectives

1. Theoretical explanation of Complacency from the book Leading Change (TEOC)2. Theoretical explanation of Urgency level from the book Heart of Change (TEUL)3. Practical application in the cases where the above were applied (PAIC)

- This is the road map for this PPT TEOC TEUL PAIC

The presentation serves three purposes:

1. It is believed that Senior management has got only 5 mins (Slides 16,17,18)2. For stakeholders who wants a clear idea (All slides)3. Stakeholders who needs only summary of individual section (3,9,10)

Summary

TEOC TEUL PAIC TEOC

• Difficulty in creating a major change in an organization• First step is to establish a sense of urgency• Requirements Greater cooperation, initiatives and willingness to make sacrifices• Going beyond the normal call• Sense of urgency is crucial to gain cooperation of all• High complacency no/slow transformation• When urgency is low, bringing unity for common cause is difficult

Pharma Example

• A pharmaceutical company, facing a challenges from past few years. • No increase in sales and net income • Decrease in the value of the stock• Threat by investors• There were costly layoff• What you expect to be happening in corporate room of this company?• Lack of urgency in the employees.

TEOC TEUL PAIC TEOC

Complacency issues TEOC TEUL PAIC TEOC

S.N

Complacency Situation in the case

1. Too much happy talk from senior management

They generalize it by saying its problem faced by all

2. Human nature denial, if people stressed

Instead of shooting guns towards enemies, inward firing is taking place

3. A lack of sufficient performance feedback from external resources

No. of complaints risen up in past time

4. Internal measurement systems that focus on wrong performance indexes

Lack in understanding the intensity of situation

5. Organizational structure that focus employee on narrow functional goals

Pointing out other departments for fault

6. Low overall performance standards No standard procedure and low comparisons standards

7. The absence of major & visible crisis

Leisurely environment, no sense of urgency, slow paced meetings, discussion on marginal issues

8. A kill-the-messenger-of-bad-news. Low candor, low confrontation culture

Heated discussions are only seen when a manger try to point out someone or blame elsewhere

9. Too many visible resources 10% Rise in profit but lower profits as compared to profits 5 years ago

7 Reasons

TEOC TEUL PAIC TEOC

• No visible crisis existed• Firm was not losing money• No one threatened a big layoff• Bankruptcy not an issue• Raiders were not knocking at the door• Press is not serving up constantly negative headlines• Success in environment because of ambience though it is all made up & virtual

Observations

TEOC TEUL PAIC TEOC

• A complacency filled organization.• Change initiatives are dead on arrival.• Long new product development cycles.• Huge shift in discussion to marginal issue or blame game starts.• Credit department disaster• An extraordinary feeling of contentment in management.• My department is doing absolutely fine.

Pushing up the urgency level:

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L

Here are few ways of creating the urgency:

• Setting the high standards both formally (discussions) and informally.• Measuring the performance metrics on right indexes • Getting feedback from people who knows our firm and are at odds with us.• Encourage frank discussions of problems at executive level. • Avoid happy talk.

BOLD moves are not very often observed in a business environment, since it’s instilled that our culture doesn’t encourage such instances.

Ways to raise the Urgency levels

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S.N Complacency Situation in the case

1. Create a crisis – exposing managers to weakness – competitors

Cleaning up the balance sheet and creating huge loss for the quarter.

2. Eliminate “ excess” Selling the corporate HQ and move into a building that looks more like a battle command center

3. Setting high revenue, productivity, cus-tomer satisfaction

Japanese, a credible entrepreneur always set high targets

4. Stop measuring narrow functional goals , insist more people to be accountable for business performance

5. Data customer satisfaction and financials that demonstrates weakness

A middle level manager in a large travel services company who confronted with data about firm’s increasing competition

6. Insist the persistent talk to unsatisfied suppliers, customers, stakeholders.

Encourage frank discussions of problems at executive level

7. External help- hire consultants – reliable data – honest discussions

Business could start a product through a new distribution channel

8. Eliminate happy talk Setting ambitious goals by aggressively removing signs of ex-cess, happy talk

9. Bombard information on future opportunities and rewards on capitalizing

Punching a time clock , collecting a cheque

Summary

TEOC TEUL PAIC PAIC

WHAT WORKS• Showing others the need for

change with a compelling• Object that they can actually

see, touch, and feel• Showing people valid and dra-

matic evidence from outside the organization that demonstrates that change is required

• Looking constantly for cheap and easy ways to reduce com-placency

• Never underestimating how much complacency, fear and anger exists, even in good orga-nizations

WHAT DOES NOT WORK• Focusing exclusively on building

a “rational” business case, get-ting top management approval, and racing ahead while mostly ignoring all the feelings that are blocking change

• Ignoring a lack of urgency and jumping immediately to creating a vision and strategy

• Believing that without a crisis or burning platform you can go nowhere

• Thinking that you can do little if you’re not the head person

STOREMEMBERRIES TO• Getting the Bosses’ Approval

(BA)• The Videotape of the Angry Cus-

tomer (VT)• When Alligators are Nipping at

Your Heels (AN)• Gloves on the Boardroom Table

(GB)• The CEO Portrait Gallery (PG)

Getting the Bosses Approval (BA)

BA VT AH BA GB PG

Multiple levels in that organization

• “We have many challenges; uniform business pro-cesses is a very low priority.” There was fear

• “Can I handle this project and still make plan?” There was anger

• “We’ll waste a fortune on this software and it will never work well.” There was pessimism

• “I wonder how much commission the slick guy who sold us the system made?” There was cynicism

• The absence of major & visible cri-sis

• Human nature denial, if people stressed

• Organizational structure that focus employee on narrow functional goals

• Create a crisis• Bombard information about future• Stop measuring the narrow func-

tional goals

Case analysis and learnings Complacency

Urgency

Video tape of angry customer (VT)

BA VT AH VT GB PG

• very concrete, visual information (not intangible datapoints such as “7.2 percent of our customers . . .”)• a dramatic offering (not a dull speech about customerorientation)• a real problem from the point of view of the customer (nota manager’s “opinion”)• information that hit the emotions (“What?” “Wow!”)• the emotions of large numbers of people (not just the bosses)• an opportunity to reduce their feelings of false pride with-out the intervention of an angry or threatening manager(no “You idiots!”)

• A lack of sufficient performance feedback from external sources

• Happy talk by the management• Internal measurement systems

that focus on wrong performance indexes

• Creating the crisis showing em-ployees visual information

• Setting high revenue, productivity, customer satisfaction

• Insist the persistent talk to unsatis-fied suppliers, customers.

Case analysis and learnings Complacency

Urgency

Seeing Feeling Chang-ing

Alligators nipping at your heal (AH)

BA VT AH AH GB PG

• One major reason people start change process with the creation and presentation of recommendations is be-cause they want clarity of direction.

• Similar logic leads people to begin change with the cre-ation of a vision. Shape the vision and make it a real-ity.

• However, I now believe that you can’t, and shouldn’t, worry about vision and long-term transformation when the house is burning down.

Three steps process:1. Facilitating the right people and gaining commitment through a level of urgency 2. Creating or forming a team 3. Now one can work on vision

• The absence of major & visible cri-sis about small things

• Human nature denial, if people stressed

• Create a crisis• Stop measuring the narrow func-

tional goals and start solving the issues that are small and about to turn into big ones

Case analysis and learnings Complacency

Urgency

Gloves on Board room table (GB)

BA VT AH GB PG

Middle managers, executive vice presidents can really feel this way, I am not powerful enough to bring change, this sensation can be very strong, very deliberating and enor-mously frustrating.• Making a change by facts and study, presenting it in an

impactful manner in an organization.• We must act now, must be the impact of the presenta-

tion or efforts which are implemented to make change.• Use the evidence you can see, not just the words • Create a dramatic, yet honest facts and no coercion.• The point we are trying to make as stated in book,

Heart of Change is, “Feelings are touched and changed, yet without provoking a deliberating sense of ,”I am going to die” or any angry counter back.

• Urgency goes up and the change efforts are launched.

• Human nature denial, if people stressed

• The absence of major & visible cri-sis about small things

• Stop measuring a subunit perfor-mance based only on narrow func-tional goal

• Insist that more people can be held accountable for the broader measure of the busi-ness performance

Case analysis and learnings Complacency

Urgency

CEO portrait gallery (PG)

BA VT AH PGGB

• The gallery was meant to be a tribute to a great group of people and to show a sense of continuity.

– Senior management Happy talk • We replaced the CEOs with pictures of our customer’s

stores. – Be focused on customer needs. • In some situations, especially where you are still very

successful, videotaping, portrait shifting, and much more may be needed- Capitalizing future opportunities

• Not Setting high revenue, produc-tivity, customer satisfaction

• Senior management Happy talk

• Eliminate Happy talk • Insist on talks with customer

Case analysis and learnings Complacency

Urgency

Quick reviewTEOC TEUL PAIC TEOC

S.N

Complacency Situation in the case

1. Too much happy talk from senior management

They generalize it by saying its problem faced by all

2. Human nature denial, if people stressed

Instead of shooting guns towards enemies, inward firing is taking place

3. A lack of sufficient performance feedback from external resources

4. Internal measurement systems that focus on wrong performance indexes

Lack in understanding the intensity of situation

5. Organizational structure that focus employee on narrow functional goals

6. Low overall performance standards

7. The absence of major & visible crisis

Leisurely environment, no sense of urgency, slow paced meetings, discussion on marginal issues

8. A kill-the-messenger-of-bad-news. Low candor, low confrontation culture

Heated discussions are only seen when a manger try to point out someone or blame elsewhere

9. Too many visible resources

Continued….TEOC TEUL PAIC

TEUL

S.N Complacency Situation in the case

1. Create a crisis – exposing managers to weakness – competitors

Cleaning up the balance sheet and creating huge loss for the quarter.

2. Eliminate “ excess” Selling the corporate HQ and move into a building that looks more like a battle command center

3. Setting high revenue, productivity, customer satisfaction Japanese, a credible entrepreneur always set high targets

4. Stop measuring narrow functional goals , insist more people to be accountable for business performance

5. Data customer satisfaction and financials that demonstrates weakness

A middle level manager in a large travel services company who confronted with data about firm’s increasing competition

6. Insist the persistent talk to unsatisfied suppliers, customers, stakeholders.

Encourage frank discussions of problems at executive level

7. External help- hire consultants – reliable data – honest discussions

Business could start a product through a new distribution channel

8. Eliminate happy talk Setting ambitious goals by aggressively removing signs of excess, happy talk

9. Bombard information on future opportunities and rewards on capitalizing

Punching a time clock , collecting a cheque

Continued…

TEOC TEUL PAIC PAIC

WHAT WORKS• Showing others the need for

change with a compelling ob-ject that they can actually see, touch, and feel

• Showing people valid and dramatic evidence from out-side the organization that demonstrates that change is re-quired

• Looking constantly for cheap and easy ways to reduce com-placency

• Never underestimating how much complacency, fear and anger exists, even in good or-ganizations

WHAT DOES NOT WORK• Focusing exclusively on

building a “rational” business case, getting top management approval, and racing ahead while mostly ignoring all the feelings that are blocking change

• Ignoring a lack of urgency and jumping immediately to creating a vision and strategy

• Believing that without a cri-sis or burning platform you can go nowhere

• Thinking that you can do little if you’re not the head person

STOREMEMBERRIES TO• Getting the Bosses’ Approval

(BA)• The Videotape of the Angry Cus-

tomer (VT)• When Alligators are Nipping at

Your Heels (AN)• Gloves on the Boardroom Table

(GB)• The CEO Portrait Gallery (PG)

Thank You

Any Questions?