change management in hard times

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Change Management in Hard Times

Some Basics, Some Differences, Some Tools, Some Tips

Photo Courtesy of the FDR Library

© Fred Nickols 2013

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The Agenda

Some Change Management Basics

Some Differences (The Impact of Hard Times)

Some Tips (and Some Tools Along the Way)

Q & A


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Some CM Basics

Change Management Defined The Change Problem A Psychological View The EL PASO Model A Couple of Cycles


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What isChange Management?

A control mechanism A body of knowledge An area of professional

practice A managerial task (reactive

& proactive) Managing organizational

impact Managing personal impact

Others Self


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The Change Problem

CurrentState

FutureState

(Unfreeze) (Refreeze)

Transition Path

(Change)


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Force Field Analysis


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A Psychological View

CurrentState

FutureState

(Letting Go) (New Beginnings)

Transition Path

(Neutral Zone)


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CM: An Endless Loop


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A Positive Cycle


10© Fred Nickols 2013

Life Cycle

StartupGrowth, Chaos &

OrganizationSuccess Institution Ostrich Demise

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Some Differences Harsh and unforgiving

economic environment Number of externally-

imposed changes goes up Rate of externally-imposed

changes goes up Urgency becomes crisis Emphasis on “Just do it” Long-term sacrificed to

short-term Unintended consequences

multiply

Downward spiral in performance

Intense focus on financials Operational & behavioral

domains neglected Quantitative displaces

qualitative Authority and decision-

making centralizes Politics become fierce Stakeholders neglected


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Some Skill Sets & Tools

Political

Analytical

People

System Process Business

The Unfreeze-Change-Refreeze Model

Force-Field Analysis Four Change

Management Strategies The Acceptance Process The Goals Grid The GAP-ACT Model Models, Models, Models

Skill Sets Tools


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Tip #1

Beware those Unintended Consequences


Do We Want It?

Do We Have It?

YesNo

Yes

No

I

AchieveII

Preserve

III

AvoidIV

Eliminate

The Goals Grid

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Tip #2

Avoid Carelessness & Over-Confidence


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Tip #3

Move Surely But not Necessarily Swiftly


Execution

Strategy

Flawed Sound

Sound

FlawedDoomedfrom the

Beginning

ABotched

Job

Flirtingwith

Disaster

AFightingChance

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Tip #4

Don’t Sacrifice the Long-Term View


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Facets of Change

Structure Strategy Systems Processes Culture

People


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Tip #5

Adapt Your Approach to Fit the Change at Hand


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Elements


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Tip #6

Visualize Your Organization and the Changes in and to It


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An Enterprise View


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The Big Picture


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Tip #7

Understand All Three Domains of Performance


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Performance Pyramid


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Return on Equity


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Load Rate


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Changing Behavior


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The Mix of Work


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GAP-ACT (Target) Model


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Tip #8

Get Good Counsel


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Tip #9

Use a Mix of CM Strategies


Rational-Empirical Persuasion based on communication

and incentives Normative-Reeducative

Redefining norms and values, and developing commitments to new ones

Power-Coercive (Directive) Exercising authority and imposing

sanctions Environmental-Adaptive

Shifting the burden

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Strategy Mix Factors

Scope & Scale of the Change Degree & Intensity of Resistance Size of the Target Population Size of the Stakes The Time Frame Available Expertise Direction of Dependency Degree of Urgency


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Tip #10

Share, Share, Share; Listen, Listen, Listen


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Tip #11

Do Some Homework and Get Connected


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Tip #12

Break Down Boundaries and Don’t Stand on Formalities


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Tip #13

Don’t Make Slashing Staff Your First Move


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The Math

Do the Math 2000 employees Average salary =

$75K Total payroll = $150M Reduce staff by 10% 1800 employees Savings = $15M

Do it again Total payroll = $150M Across the board pay

cut of 10% Average salary =

$67.5K 2000 employees Savings = $15M


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Tip #14

Refocus and Reallocate Resources


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Tip #15

Manage the Emotional Reactions



The “Natural” Process

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A Managed Process


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Obstacles to Buy-In

Don’t like change Uncomfortable with

uncertainty Negatively affected Like things the way they are Perceived breach of

contract Aren’t persuaded as to the

need for the change Low tolerance for ambiguity

Unclear expectations Too much change Too fast Ethical clash Been burned before Don’t like the way it’s being

managed Cumulative impact Unfavorable balance of

consequences


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Indicators ofLack of Buy-In

Criticizing & ridiculing Distorting and manipulating

information Blaming or accusing Raising barriers Undermining others Dealing in rumors Arguing vs reasoning Outright sabotage

Failing to follow-through “Malicious compliance” Foot dragging Playing dumb Hoarding information Not supporting others Taking a hands-off or stand

clear posture (letting it fail)


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Tip #16

Engage and Involve Your People


Sponsors Architects Champions Straw Bosses Envoys Brokers Mechanics Pawns

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Employee Engagement


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Energy Equations


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Tip #17

Hone Your Political Skills


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Tip #18

Pay Attention to ALL Your Stakeholders


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Tip #19

Encourage Divergent Views



The Question

How do you manage change?

(In Hard Times or in Good)

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My Answer


You don’t.

Not in good times or bad.


What You Can Do…

Jump in Stay focused on mission

and purpose Build a team Maintain a flat structure Pick high energy people Toss out the rulebook Shift to short-interval

scheduling and informal reporting

Set flexible priorities Treat everything as

temporary Ask for volunteers Get a good “straw boss” Give the teams what they

ask for – except authority Concentrate dispersed

knowledge

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More You Can Do…

Be the change… Take everything at face value

(don’t second guess) Give everyone the benefit of

the doubt Whenever possible,

collaborate, don’t dictate Be open to influence Get good help


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The Tips: A Recap Avoid unintended

consequences Avoid carelessness & over-

confidence Move surely, not necessarily

swiftly Avoid sacrificing the long-

term to the short-term Adapt your approach Visualize your organization

and changes to and in it Map and understand all

three domains Hone your political skills

Attend to all stakeholders Use a mix of strategies Share, share, share; listen,

listen, listen Do your homework Break down boundaries Don’t cut staff first Do the math Refocus & reallocate

resources Engage and involve your

people Manage the emotions


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Remember…

Change = Opportunity Change is low risk for many people You can’t go wrong trying to help Change is high payoff – if you pull it off A skeptic brought around is invaluable People don’t resist change per se Change management is very situational There are no OTC or “vanilla” approaches The task is to bring order to a messy situation,

not pretend that it’s already well organized The task is as much a matter of leading people

as it is one of managing change


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Further Reading

Managing Transitions by William Bridges

www.skullworks.com

Change Management 101: A Primer

Change Management in Hard Times

A Change Management Bibliography


http://www.skullworks.com/

http://www.nickols.us/change.pdf

http://www.nickols.us/cminhardtimes.pdf

http://www.nickols.us/change_biblio.pdf

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Q & A


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Contact Information

Fred Nickols

Managing Partner

Distance Consulting, LLC

(740) 504-0000

[email protected]

www.nickols.us

“Assistance at a Distance”SM


mailto:[email protected]

http://www.nickols.us/

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