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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