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Managing Resistance to Change

Lynn Pikholz (CapitalPlus Exchange) & Rick Rothermel (LaMarsh Global)

ANDE

2

The Aspen Network of Development Entrepreneurs (ANDE) is a global network of 235+ organizations that propel entrepreneurship in emerging markets. ANDE members provide critical financial, educational, and business support services to small and

growing businesses (SGBs) based on the conviction that SGBs will create jobs, stimulate long-term economic growth, and produce environmental and social

benefits. Ultimately, we believe that SGBs can help lift countries out of poverty. ANDE is part of the Aspen Institute, an educational and policy studies organization.

Lynn PikholzCEOCapPlus

Rick RothermelCEO

LaMarshGlobal

Change Done Poorly

A cautionary tale

A CASE STUDY

How are YOUR change management instincts?

TRUE OR FALSE?

1) The new Managing Director:

____ Told everyone they would not be fired

TRUE OR FALSE?

____ Said there was room in the companyfor all who rose to the new expectations

2) The new Managing Director:

TRUE OR FALSE?

____ Focused immediately on integrating the two kitchens for the two levels of staff

3) The new Managing Director:

TRUE OR FALSE?

____ Kept every one of the senior managers, including the MD at the bank

4) The new Managing Director:

TRUE OR FALSE?

____ Paid for all workers to come to work in the first class cabin of the trains

5) The new Managing Director:

TRUE OR FALSE?

____ Gave everyone 200 shares of the new company irrespective of productivity

6) The new Managing Director:

7) Management agreed to the powerful union’s requests:

____ Over 80% of the time

____ Between 60% and 80% of the time

____ Between 20% and 60% of the time

90%

8) After 3 years, what % of upper and middle management remained with the bank?

50%30%

10%

Focus on ResultsHow does Change Management

add value?

R = Qs x A

Results = Quality of Solution x Its Acceptance

© 2015 LaMarsh Global

Why Use Managed ChangeTM?

Time

Succ

ess/

Con

trib

utio

nBreakthrough

VisionThe Organization Is Transformed

Breakthrough Point

Breakthrough Strategies

The Business of the Business

The Organization Is Marginalized

Inertia

© 2015 LaMarsh Global

Failure is Possible No Plan for

Implementation

Fuzzy Definition of

Desired State

Ignoring Potential for Resistance

FAILURE

© 2015 LaMarsh Global

Managed ChangeTM as a Process

arsh Global

A CASE STUDY: WHAT REALLY HAPPENED

TRUE OR FALSE?

1) The new Managing Director:

____ Told everyone they would not be firedT

TRUE OR FALSE?

____ Said there was room in the companyfor all who rose to the new expectations

2) The new Managing Director:

T

TRUE OR FALSE?

____ Focused immediately on integrating the two kitchens for the two levels of staff

3) The new Managing Director:

T

TRUE OR FALSE?

____ Kept every one of the senior managers, including the MD at the bank

4) The new Managing Director:

T

TRUE OR FALSE?

____ Paid for all workers to come to work in the first class cabin of the trains

5) The new Managing Director:

T

TRUE OR FALSE?

____ Gave everyone 200 shares of the new company irrespective of productivity

6) The new Managing Director:

T

7) Management agreed to the powerful union’s requests:

____ Over 80% of the time

____ Between 60% and 80% of the time

____ Between 20% and 60% of the time

x

90%

8) After 3 years, what % of upper and middle management remained with the bank?

A Change Management Mindset

When faced with change

or need to lead change, ask:

Why is any change necessary?

What is the change being proposed?

Who is leading the change?

Who is impacted by the change?

How will they be impacted?

What resistance to the change can we anticipate?

What can we do to Proactively mitigate the resistance?

Q & A