1 leading & managing change february 9, 2010 mgmt-4000 linda miklas, christina finegold harvard...
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Leading & Managing Leading & Managing ChangeChange
February 9, 2010February 9, 2010
MGMT-4000MGMT-4000Linda Miklas, Christina FinegoldLinda Miklas, Christina Finegold
Harvard UniversityHarvard University
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Key QuestionsKey Questions
What is What is Change ManagementChange Management?? What do we know about change?What do we know about change? How do we successfully manage change How do we successfully manage change
in an organizational context?in an organizational context? What goes wrong most often?What goes wrong most often?
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What is Change Management?What is Change Management?
Change management is the continuous process of aligning an organization with its marketplace-Change management is the continuous process of aligning an organization with its marketplace-and doing so more responsively and effectively than competitors.and doing so more responsively and effectively than competitors.~Lisa M. Kudray& Brian H. Kleiner, “Global Trends in Managing Change,” Industrial Management 1997~Lisa M. Kudray& Brian H. Kleiner, “Global Trends in Managing Change,” Industrial Management 1997
Change management is the formal process for organizational change, including a systematic Change management is the formal process for organizational change, including a systematic approach and application of knowledge. Change management means defining and adopting approach and application of knowledge. Change management means defining and adopting corporate strategies, structures, procedures, and technologies to deal with change stemming corporate strategies, structures, procedures, and technologies to deal with change stemming from internal and external conditions.from internal and external conditions.~Society for Human Resource Management, Change Management Survey Report 2007~Society for Human Resource Management, Change Management Survey Report 2007
Change management is a critical part of any project that leads, manages, and enables people to Change management is a critical part of any project that leads, manages, and enables people to accept new processes, technologies, systems structures, and values. It is the set of activities that accept new processes, technologies, systems structures, and values. It is the set of activities that helps people transition from their present way of working to the desired way of working.helps people transition from their present way of working to the desired way of working.~Lambeth Change Management Team, Change Management Toolkit~Lambeth Change Management Team, Change Management Toolkit
In thinking about what is meant by “change management,” at least four basic definitions come to In thinking about what is meant by “change management,” at least four basic definitions come to mind:mind:
• The task of managing changeThe task of managing change• An area of professional practiceAn area of professional practice• A body of knowledgeA body of knowledge• A control mechanismA control mechanism
~Fred Nikols, “Change Management 101: A Primer,” Distance Consulting 2006~Fred Nikols, “Change Management 101: A Primer,” Distance Consulting 2006
Source: 2008 Corporate Executive Board, Corporate Leadership Council’s “Change Management Fundamentals”
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Dynamics of Change Dynamics of Change (Individual)(Individual)
No Matter How Exciting the Change….No Matter How Exciting the Change….Expect a Expect a Sense of LossSense of Loss
No Matter How Competent People Are….No Matter How Competent People Are….Expect Expect a Sense of Confusion and Ambiguitya Sense of Confusion and Ambiguity
To varying degrees….To varying degrees….Expect ResistanceExpect Resistance Expect the Loss and Ambiguity to Lead to a Expect the Loss and Ambiguity to Lead to a
Deterioration of TrustDeterioration of Trust and a and a Sense of Self-Sense of Self-PreservationPreservation
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Dynamics of Change Dynamics of Change (Organization)(Organization)
Communications DeteriorateCommunications Deteriorate Productivity SuffersProductivity Suffers Loss of Team Play – See Each Other as Loss of Team Play – See Each Other as
“The Competition”“The Competition” Power/Turf StrugglesPower/Turf Struggles Morale Goes Down – Lose CommitmentMorale Goes Down – Lose Commitment Bail-Outs Occur – Lose Good PeopleBail-Outs Occur – Lose Good People
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Eight Stages of TransformationEight Stages of Transformation
Establishing a sense of urgencyEstablishing a sense of urgency Forming a powerful guiding coalitionForming a powerful guiding coalition Creating a visionCreating a vision Communicating the visionCommunicating the vision Empowering others to act on the visionEmpowering others to act on the vision Planning for and creating short-term winsPlanning for and creating short-term wins Consolidating improvements and….Consolidating improvements and…. Institutionalizing new approachesInstitutionalizing new approaches
Source: Why Transformation Efforts Fail, Kotter, John P. Harvard Business Review 1995
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Leading ChangeLeading Change
The Art of Balancing content, processesThe Art of Balancing content, processes
and employees’ emotions and behaviorsand employees’ emotions and behaviors Employee trustEmployee trust
Employee empowermentEmployee empowerment
Transition Management TeamTransition Management Team
Source: Managing Change: The Art of Balancing Jeanie Daniel Duck, Harvard Business Review, 1993
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Leading Change: TMT ResponsibilitiesLeading Change: TMT Responsibilities
Establish context for changeEstablish context for change Stimulate conversationStimulate conversation Provide resourcesProvide resources Coordinate projectsCoordinate projects Ensure congruence of messages and behaviorsEnsure congruence of messages and behaviors Provide opportunities for joint creationProvide opportunities for joint creation Anticipate and address people problemsAnticipate and address people problems Prepare the critical mass Prepare the critical mass
Source: Managing Change: The Art of Balancing, Duck, Jeanie Daniel , Harvard Business Review, 1993
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Leading ChangeLeading Change
Foster adaptationFoster adaptation
Embrace disequilibriumEmbrace disequilibrium
Generate leadershipGenerate leadership
Take care of yourselfTake care of yourself
Source: Leadership in a (Permanent) Crisis, Heifetz, Ronald, Grashow, Alexander & Linsky,Marty , Harvard Business Review, 2009
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10 Commandments for 10 Commandments for Implementing Change Implementing Change Todd JickTodd Jick
1.1. Analyze the organization and its need for Analyze the organization and its need for changechange
2.2. Create a shared vision and common directionCreate a shared vision and common direction3.3. Separate from the pastSeparate from the past4.4. Create a sense of urgencyCreate a sense of urgency5.5. Support a strong leaders roleSupport a strong leaders role6.6. Line up political sponsorshipLine up political sponsorship7.7. Craft an implementation planCraft an implementation plan8.8. Develop enabling structuresDevelop enabling structures9.9. Communicate, involve people and be honestCommunicate, involve people and be honest10.10. Reinforce and institutionalize the changeReinforce and institutionalize the change
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ChangeChange versus versus TransitionTransition
Change is: an Change is: an eventevent
It is situational and is external to usIt is situational and is external to us
Something old stopsSomething old stops Something new beginsSomething new begins
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TransitionTransition is very different: is very different:
Think about the times you’ve moved…Think about the times you’ve moved…
How long did it take for you to move your How long did it take for you to move your “stuff” from point A to point B?“stuff” from point A to point B?
How long did it take you to How long did it take you to feel at homefeel at home again in the new place?again in the new place?
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The difference?The difference?
ChangeChange is is situationalsituational
TransitionTransition is is psychologicalpsychological
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The Three Phases of TransitionThe Three Phases of Transition
1.1. The EndingThe Ending • LosingLosing• Letting go…getting closure…saying goodbyeLetting go…getting closure…saying goodbye• All transitions start with endingsAll transitions start with endings
2.2. The “Neutral Zone”The “Neutral Zone”• Chaos, confusion, unsettled feelings, “in-between”Chaos, confusion, unsettled feelings, “in-between”• Could also be experienced as freeingCould also be experienced as freeing
3.3. The New BeginningThe New Beginning• A whole new chapterA whole new chapter• Sense of renewal and often increased energySense of renewal and often increased energy• Fully moving onFully moving on
NOTE: These are NOTE: These are notnot linear “steps” and can overlap. linear “steps” and can overlap.
Source: Managing Transitions: Making the Most of Change, Bridges, William, Da Capo Lifelong Books; third edition, 2009Da Capo Lifelong Books; third edition, 2009
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Tips for Getting through each Tips for Getting through each Phase Phase
Acknowledge who is losing whatAcknowledge who is losing what Mark the endingMark the ending Let people take a piece of the old way with themLet people take a piece of the old way with them Set sort-term goalsSet sort-term goals Strengthen intragroup activitiesStrengthen intragroup activities Consider a TMTConsider a TMT Explain the Explain the purposepurpose Paint a Paint a picturepicture Lay out a step-by-step Lay out a step-by-step planplan Give each person a Give each person a partpart
Source: Managing Transitions: Making the Most of Change, Bridges, William, Da Capo Lifelong Books; third edition, 2009Da Capo Lifelong Books; third edition, 2009
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Circle of InfluenceCircle of Influence
From Stephen Covey’s, The Seven Habits of Highly Effective People
Concern
Influence
•Who/what can help me succeed?
•Who/what might serve as a barrier to my success?
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Skills for Managing ChangeSkills for Managing Change
Political SkillsPolitical Skills Diplomacy, ability to engage aDiplomacy, ability to engage a large grouplarge group
Personal SkillsPersonal Skills Communicating, listening, understanding different viewpointsCommunicating, listening, understanding different viewpoints
Analytical SkillsAnalytical Skills Workflow operations, systems analysis, financial analysisWorkflow operations, systems analysis, financial analysis
Systems SkillsSystems Skills Technological and how people, industries and economies interact Technological and how people, industries and economies interact
Business SkillsBusiness Skills Understanding how the business works so you can understand how it will changeUnderstanding how the business works so you can understand how it will change
Source: 2008 Corporate Executive Board, Corporate Leadership Council’s “Change Management Fundamentals”
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Why Transformation Efforts FailWhy Transformation Efforts Fail Not establishing a sense of urgencyNot establishing a sense of urgency Not creating a powerful enough guiding coalitionNot creating a powerful enough guiding coalition Lacking a visionLacking a vision Undercommunicating the vision Undercommunicating the vision Not removing obstacles to the new visionNot removing obstacles to the new vision Not systematically planning for and creating Not systematically planning for and creating
short-term winsshort-term wins Declaring victory too soonDeclaring victory too soon Not anchoring changes in the corporation’s Not anchoring changes in the corporation’s
cultureculture
Source: Why Transformation Efforts Fail, Kotter, John P. Harvard Business Review 1995
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Ways to Ways to HeightenHeighten Anxiety Anxiety
1. Mandate a change without explaining why 1. Mandate a change without explaining why it’s needed.it’s needed.
2. Assume people understand the new 2. Assume people understand the new “regime” and how to behave differently (new “regime” and how to behave differently (new skills are often required).skills are often required).
3. Stay behind closed doors.3. Stay behind closed doors. 4. Neglect to deal with your own anxiety.4. Neglect to deal with your own anxiety.
Source: The Change Monster, Duck, Jeanie Daniel, Three Rivers Press, 2001
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ReferencesReferences
2008 Corporate Executive Board, Corporate Leadership Council’s “Change Management Fundamentals.”
Why Transformation Efforts Fail, John P. Kotter, Harvard Business Review, 1995 Managing Change: The Art of Balancing, Jeanie Daniel Duck, Harvard Business
Review 1993 Leadership in a (Permanent) Crisis, Heifetz, Ronald, Grashow, Alexander, Linsky,
Marty, Harvard Business Review 2009 Implementing Change, Jick, Todd, Harvard Business Review 1991Implementing Change, Jick, Todd, Harvard Business Review 1991 The Seven Habits of Highly Effective People. Covey, Stephen R., 2004, Free Press.The Seven Habits of Highly Effective People. Covey, Stephen R., 2004, Free Press. Managing Transitions: Making the Most of ChangeManaging Transitions: Making the Most of Change. Bridges, William, 2009, Da Capo . Bridges, William, 2009, Da Capo
Lifelong Books; third edition.Lifelong Books; third edition. The Change Monster: The Human Forces that Fuel or Foil Corporate Transformation
& Change. Duck, Jeanie Daniel, 2001, Three Rivers Press. Reframing Organizations: Artistry, Choice, and LeadershipReframing Organizations: Artistry, Choice, and Leadership. Bolman, Lee G. and Deal, . Bolman, Lee G. and Deal,
Terrence E., 2008, Jossey-Bass.Terrence E., 2008, Jossey-Bass.