Change Management Overviewa proven strategy for design andimplementation of culture change

Wayne LindholmScanlon Leadership Network

Business and Environment SeriesAveda CorporationApril 19, 2011

Change Management

The Key to Change management is The HumanElement

http://www.dow.com/hu/?story=theHumanElement

The Human Element

The Key to the Human Element isPrinciple-based Leadership

Principle-based Leadership

“For over 50 years, the Scanlon Principleshave stood at the very heart of engagingpeople to apply their full creativity, energy andcommitment toward building a winning team,helping people achieve their full potential tomake a difference.”

Dwane Baumgardner – CEO, retiredDonnelly Mirrors, Holland, MI

Scanlon Leadership Network History

- 20+ Years in Bostonarea supported by MIT- 50+ Years in Michiganarea supported byMSU

Scanlon LeadershipPrinciples featured innumerous publicationsover the decades . . .

Scanlon History

Joe Scanlon . . . - Steelworker - Accountant - Understood people

Douglas McGregorDiscovers Joe . . .

Douglas McGregor . . . - MIT Professor - Theory X, Theory Y - Managerial Trust of Subordinates

Scanlon Principle-based Leadershiphas only Four Principles

Identity

Participation

Equity

Competence

Principle of Identity

Identity is driven by the process ofeducation and based on three

assumptions:

Change is universal and is a given

Belief precedes action

Every person and every organization is in theprocess of becoming better or becoming worse

Principle of Participation

Participation is driven by theprocess of responsibility.

Participation is described as the opportunitywhich only management can give and theresponsibility which only employees can acceptto influence decisions in their areas ofcompetence.

Principle of Equity

Equity is driven by the process ofaccountability.

Equity is a genuine commitment to account forthe needs of all stakeholders includingcustomers, investors, and employees.

Principle of Competence

Competence is driven by theprocess of commitment.

Competence is the ability to respond to theconstant demand for improvement and change.It requires a commitment to continual learningand development personally, professionally, andorganizationally.

Principle-based Leadership is uniquelyeffective for Change Management . . .

Values based Employee-Focused Time-Tested Financial Benefit Proven

Principle-based Leadership is borne out of a deeprespect for all employees and the enormouscontributions they bring to the business if they arecompletely engaged.

Values Based

Principle-based Leadership transforms cultures from an“us vs. them” philosophy to one of partnershipscommitted to delivering results for all stakeholders.

Employee Focused

For more than 65 years, Principle-based Leadership hasstood at the heart of engaging people to apply their fullcreativity, energy and commitment toward building awinning team.

Time-Tested

Principle-based Leadership has created high performanceorganizations in many different industries. On average,principle-based leadership companies achieve over a 150%return on investment while increasing compensation by 5%.

Financial Benefit Proven

Two case studies . . .

One local – Fraser One in Michigan – Landscape Forms

Path to Excellence

The Fraser journey…

Began in 2006 as “Lean MBO”

CQI Quality Design team formed in Spring 2007

15 MembersAcross organization representationGuides: Wayne Lindholm and Scanlon Principles:

Identity --> Participation --> Equity --> Competence

Path to Excellence Training Fall 2007

Introduced Quarter Four 2007

The Path to ExcellenceIntent Statement

To create an overarchingframework that continuouslybuilds quality, consistency,

cooperation, safety, and betterperformance for the client.

Two case studies . . .

One local – Fraser One in Michigan – Landscape Forms

new for 2009

Principles

360˚ product development

Listen to customers’ needsCollaborate with product designersGet customer feedbackEngage employee inputProduct launch – copy/graphics/displayListen to customers’ needs

Collaborate with product designers

Get customer feedback

Engage employee input

Product launch – copy/graphics/display

serviceWe are environmentally responsible

service

We participate in the professional and commercial life of our industry.Landscape Forms supports the Landscape Architecture Foundation at theSecond Century level and is a corporate member of ASLA, CSLA, IIDA, IDA,Main Street USA, BOMA and the USGBC which administers LEED.

new for ASLA

- Top Small Business withExceptional Workplace- Leading Innovator and rolemodel for larger businesses

Landscape Formsis Recognized . . .

Some may say “I hear what yourare saying, but it sounds like

hard work.”

It is hard wok, but so is maintaining a culture by defaultwhere you don’t have fully engaged employees bringing their whole person to work.

Without fully engaged andparticipative employees, it is

harder work to . . .

Attract, motivate and retain top talentEliminate 'culture drag' that impedes group performanceCreate ‘change ready’ organizations that embrace changeCreate an environment where employees freely offer their ideas Development a hard-to-imitate culture of practices and behaviorsCreate increased client loyalty and fully deliver on a brand promise

Can you envision building achange-ready culture for your

organization?

ResourcesBooks:

o Compression: Meeting the Challenges of Sustainability Through Vigorous LearningEnterprises by Robert W. Hall, Ph.D.o A Whole New Mind: Why Right-Brainers Will Rule the Future by Daniel H. Pinko Good to Great: Why Some Companies Make the Leap...And Others Don't by JimCollinso Identity Is Destiny: Leadership and the Roots of Value Creation by Laurence D.Ackerman and Laurence D. Ackermano A Whack on the Side of the Head: How You Can Be More Creative by Roger VonOechoThe Wisdom of Crowds by James Surowieckio The Fifth Discipline Fieldbook: Strategies and Tools for Building a LearningOrganization by Peter M. Senge, Art Kleiner, Charlotte Roberts and Rick Rosso Servant Leadership: 25th Anniversary Edition by Robert K. Greenleafo Scanlon EPIC Leadership Principles by Paul Davis, Larry Spears (available fromScanlon Leadership Network - info@scanlon.org )

Monograph:o Why Scanlon Matters by Paul Davis, Larry Spears (free publication from ScanlonLeadership Network - info@scanlon.org )

Websites:o Compression - www.Compression.orgo Servant-Leadership - www.SpearsCenter.orgo Scanlon Leadership Network - www.Scanlon.org

About the SpeakerWayne Lindholm

Wayne Lindholm operates a leadership development practice basedin Edina, MN, and serves as president of the Scanlon LeadershipNetwork based in Michigan. Prior to this, he worked for over 30years leading change management programs with General Motors,Morton Salt, Warner-Lambert, and 3M. He has a passion forserving the developmental disability community and since 1998 hasserved as president of the Down Syndrome Foundation, a 501(c)(3)community-based foundation whose mission is to supportindependence for persons with Down syndrome.

Lindholm holds a BS in mechanical engineering from the Universityof Minnesota and a MS in manufacturing systems from theUniversity of St. Thomas.

Wayne Lindholm, PresidentScanlon Leadership Network

Email) wayne@scanlon.orgWebsite) www.scanlon.org

Phone) 612-240-8488