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TRANSCRIPT
Leading Organizational Change
The Change House
Cleveland SHRM
April 17, 2019
Tom Daniels
Learning Outcomes• Stronger understanding of the six stages of the change
journey
• Understand the Formula for Change
• More effectively assess current state in preparation for leading change
• Effectively “move” a department through the change process and be part of the solution
Putting Change Into Perspective
Facts About Change
It’s
inevitable
It’s
uncomfortable
It’s exciting It’s disruptive
It causes
more
change
People want
progress
People avoid
discomfort and
disruption
The speed of
change is
acceleratingThe complexity
of change is
increasing
The Change Curve
1.Status Quo
2.Disruption
3. Tipping Point
4. Testing
5. Implementation
6. New (upgraded)
Status Quo
TIME
Impac
t/
Per
cepti
on
Related to Lewin’s Model
The Change Curve
1.Status Quo
2.Disruption
3.
Tipping
Point
4. Testing
5. Implementation
6. New (upgraded)
Status Quo
TIME
Impac
t/
Per
cepti
on
Related to Lewin’s Model
Why Changes Do Not Produce Results
• Not tied to strategy
• Fad, “flavor of the month”
• Political Realities
• Inflexible change designs
• Lack of leadership
• Lack of measurable, tangible results
• Unable to mobilize commitment to sustain change
The Formula for Change
The Formula for Change
D x V x F x S > R
Cady & Dannemiller
Cady & Dannemiller
The Formula for Change
The Change House
Signs of Contentment
What we say…
• We’re the market leaders
• If it isn’t broken, don’t fix it
• Not invented here
• Management has decided
• It’s a stable industry
• I have a great track record
• We’re the most profitable
• I’ll decide later
• We achieve our budgets
• I’m the best
How we act…
• Ignore the outside world
• Bureaucratic
• Arrogant
• Uninformed about competitors
• Don’t listen to staff
• HQ focus
• Publish the company history
• No sense of urgency
• Focus on day-to-day details
• Automatic salary increases
E
Signs of DenialWhat we say…
• It’s an industry trend
• What problem?
• Not my problem
• Corporate doesn’t understand
• My staff is no good
• Competitors are worse
• I’ve always done it this way
• My area is different
• If adjusted for…it’s OK
• It’s our customers fault
• It’s a short term issue
How we act…
• Defend the past
• Defend the present
• Aggressive
• Protect the guilty
• Maintain taboos
• Kill the messenger…
• … but miss the message
• Blame everybody else
• Don’t listen to staff
• Tell stories about past glories
• Massage the figures
E
Signs of Confusion
What we say…
• How did I get into this mess?
• Let’s hire some consultant
• What’s happening?
• What have I done wrong?
• I’ve been saying that for years
• We did that years ago
• It’s all my fault
• Help!
How we act…
• Frustration
• Depression
• Anger
• Withdrawal
• Blaming management
• Loss of self-esteem
• Insecurity
• No sense of direction
• Irrational behavior
• Set up committees
• Slow
E
Name the company…• Founded 1889, as a playing
card company• 1956 – licensed Disney
characters for cards• 1963-68 – set up…and
eventually closed• taxi company • love hotel chain• TV network• Food company
• 1966, moved into the toy industry
• 1973, moved into family entertainment centers (Laser Clay Shooting Systems)
• 1974, entered the video game market
Signs of Renewal
What we say…
• let’s make it happen
• let’s do it together
• let’s tell everybody about it
• now I understand it
• it’s been tough, but I did it
• I’m/we’re stronger now
• I don’t really miss it now
• it’s better than I expected
• we have to trust each other
• I/we could be better
• let’s beat the challenge
How we act…
• Accept responsibility
• Renewed energy, enthusiasm
• Communicate
• Listen
• Learn
• Trust
• Delegate
• Independent
• Accept risk
• Flexible, creative
• Continuously improve
E
Using the Change House
Rules of the Change House
• All organizations and individuals have to go from room to room in a counter-
clockwise direction . . .
• . . . They do not have to spend the same amount of time in each room
• There is no end point …. some die on the way, usually in one of three rooms
• At times they slip back a room
Using the Change House
• Break into 4 groups
• What can you do to help people move out of…
• Consider three headings
• What you might achieve (“That people will start to…”)
• What you should NOT expect yet (“That people will
be able to…”)
• Possible actions (3-4 ideas)
Moving out of Contentment
▪ What you might achieve:
▪ people start to think about the change
▪ What you should NOT expect yet people
▪ accept that things need to change
▪ Possible actions:
▪ shock people out of complacency
▪ benchmark with best practice
▪ break up teams, move people
▪ define performance indicators
▪ give feedback about performance
▪ customer satisfaction surveys
▪ challenge assumptions
▪ get people to visit other organizations
E
Moving out of Denial
▪ What you might achieve:
▪ people accept that something needs to be done
▪ What you should NOT expect yet:
▪ they will see the way forward as clearly as you
▪ they understand what has to be done, and their role in it
▪ Possible actions:
▪ continue to benchmark
▪ communicate the results to everybody
▪ explain the “big picture” (purpose, benefits of change)
▪ show respect for the past: avoid blame
▪ don’t offer detailed solutions yet
▪ look for small, early successes
▪ give people time and space
▪ encourage positive health habits
E
Moving out of Confusion
▪ What you might achieve:
▪ people understand what needs to be done,
▪ accept their roles & responsibilities in it
▪ What you should NOT expect yet:
▪ people stop talking about “the good old days”
▪ they don’t slip back sometimes
▪ Possible actions:
▪ provide vision and overall direction . . .. . . but allow people to influence how
to get there
▪ give a sense of ownership by allowing contributions
▪ encourage open expression of feelings, positive and negative
▪ emphasize what is not changing
▪ focus on concrete, achievable first steps
▪ give fast feedback about results
▪ reward desired new behaviors
▪ ensure systems and processes support the new approach
▪ encourage experiments
E
Staying in Renewal
▪ What you might achieve:
▪ people understand that change is never-ending
▪ they are energized for continuous improvement
▪ What you should NOT expect:
▪ nobody will ever slip back into Confusion
▪ nobody will ever slip forwards into Contentment
▪ Possible actions:
▪ constantly “raise the bar”- increased targets
▪ keep providing benchmarks, surveys, feedback
▪ celebrate successes
▪ bring in outsiders
▪ use 360º feedback continuously
▪ encourage learning & self-development
▪ don’t punish unsuccessful experiments
▪ be alert for “unconscious incompetence”
▪ job rotation
E
The Change Curve
1.Status Quo
2.Disruption
3. Tipping Point
4. Testing
5. Implementation
6. New (upgraded)
Status Quo
TIME
Impac
t/
Per
cepti
on
Related to Lewin’s Model
Contentment Denial Confusion Contentment
“There are risks and costs to a
program of action but they are
far less than the risks and costs of
comfortable inaction.”
John F Kennedy
