Innovations in Information Technology 2006 - Dubai fileLeading Change: A Choice or a Must? Raed H....

Leading Change: A Choice or a Must? Raed H. Charafeddine – November 20, 2006

A Choice or A Must? Leading Change:

Raed H. Charafeddine November 20, 2006

Innovations in Information Technology 2006 - Dubai


AGENDA

1. Winds of Change 2. The Evolution of Executive Concerns 3. Change Management defined 4. Elements of Successful Organizational Change 5. Level 5 Leadership 6. A Systematic Approach to Change 7. Resistance to Change 8. “You” and Change 9. Successful Change Initiatives


The Aral Sea Story

Aral Sea Region


The Aral Sea Story

Aral Sea original area


The Aral Sea Story

Aral Sea - After


The Aral Sea Story


1. Winds of Change

Rapid Expansion

New Markets

Relocations

Changes in Corporate Culture

Changes in Corporate Objectives

Restructuring/Re-engineering

Revamped Product Lines

New Technologies

Deregulation

Budget Cuts

Globalization

Faster Cycle Time


2. The Evolution of Executive Concerns


3. Change Management – Can it Be Defined?

Change Management is a structured methodology

designed to increase the likelihood of success in

managing the human variables associated with major

change.

80% of projects fail due to the “human” variables.


Productivity Drops During

Significant Change

During an Eight hour workday - average employee

produces around 4.8 hours.

During times of significant change - average employee

produces 1.2 hours.


Change Response Curve

Immobilization

Denial

Anger

Bargaining

Depression

Testing

Acceptance

Time

Em

oti

on

al

Resp

on

se

Active

Passive

Note: This model is an adaptation of Elisabeth Kubler-Ross’ clinical work with terminally ill

patients


McKinsey’s 7 – S Framework

Structure

Strategy Systems

Superordinate

Goals

Skills Style

Staff


4. Successful Change Elements

A Shared Vision

Articulating, discussing, and consciously

modeling beliefs and capabilities by leaders.

1


Sponsors and Agents

Sponsors: Employ, authorize, and lead.

Agents: Internal Change catalyst.

Successful Change Elements

2


Time and Money:

Age of Organization

History of Success


3


People as The Solution, Not as Problems

Conditional: Seriously (and effectively)

changing tools, skills, and work processes.


4


The Loyal Opposition

Keeping the old systems running and

profitable as new methods are tried and

proven.


5


Competent Training Using effective training techniques to develop people’s

required competences.


6


Powerful Coaching

Unlocks enormous potential in the human asset.

Hidden capability that can offset the costs of change.


7


The Critical Mass

Litmus Test: when all management efforts to drive or

support the change are withdrawn and the process

continues in motion on its own.


8


Timely Turnover and Withdrawal

Shifting energies from the offense (making good new

things happen) to the defense (keeping bad new

things from happening).


9


Conservation of Change Skills

Becoming a mind-set, a way of life.

10



Level 5

Executive

Effective Leader

Competent Manager

Contributing Team Member

Highly Capable Individual

5. Level 5 Leadership Hierarchy


Level 5 Leaders: Elements

Professional Will

Creates superb results, a clear catalyst in the transition from Good to

Great.

Demonstrates an unwavering resolve to do whatever must be done to produce the best long-term results, no matter how difficult.

Sets the standard of building an enduring great company; will settle for nothing less.

Looks in the mirror, not out the window, to apportion responsibility for poor results, never blaming other people, external factors, or bad luck.


Personal Humility

Demonstrates a compelling modesty, shunning public adulation;

never boastful.

Acts with quiet, calm determination; relies principally on inspired

standards, not inspiring charisma, to motivate.

Channels ambition into the company, not the self; sets up successors

for even greater success in the next generation.

Looks out the window, not in the mirror, to apportion credit for the

success of the company – to other people, external factors, and good

luck.

Level 5 Leaders: Elements


6. A Systematic Approach to Change


7. Resistance

A Natural Attempt to Slow Things Down to the Point of Manageability

“People don’t resist change; victims resist change.”

F. Capri


Transition is Never Smooth

Characteristics of the Transition State

Low Stability

High emotional stress

High, often undirected energy

Control becomes a major issue

Past patterns of behavior become highly valued

Conflict increases


Resistance is Personal

“No One Likes Change, Except a Baby with A Wet Diaper”

Old Quote

To understand and deal with resistance, we have to look at

individualized reasons for opposing change.

The decision to resist or cooperate is very personal.

Different people resist change for different reasons.


Types of Resistors

Heel

Draggers

Firehosing Give reasons why new thinking will not work: This

won’t work, It is not realistic,…

Shoot them straight in the face with your water gun

Heel

Draggers

Silent opposition through non-cooperation Bring resistance into the open

Saboteurs Silent resistors but with more aggressive actions Flush them out by giving them permission to criticize and vent

Fence

Riders

Cautious. Long time to make up their mind. Don’t

want to make mistakes

Face them with convincing and persuasive information to blow them off the fence

Ostriches Pretend nothing is happening. Haven’t paid or do not

want to pay attention

Inform them one-on-one, if possible

Dissenters Express honest differences with the plans and offer

logical reasons for opposition

Incorporate their best ideas, show that you value their input, make rational responses

Antagonists Vocal, loud and annoying. Unwilling to compromise or

negotiate. Oppose simply because it is “change”

Ignore them and withdraw energy from them. Don’t allow them the soap box


Resistance Drivers | FEAR

Most common cause of resistance and most powerful one

Understanding how the cycle of fear works is the secret to neutralizing it

Fear can be stopped with early intervention

Imagined

Consequences (negative thoughts)

Perception (distorted perception)

Physical Response (body signals)

Behavior

Performance (panic / procrastination)

Fear Realized

The Fear Cycle


Communicating Change


8. You And Change

“Indeed, Allah will not change the conditions of a people until

they change what is in themselves.” - Quraan – 13:11

“You must be the Change you want to see in the world” - Gandhi

“Change before you have to” - Jack Welch


IQ- Intelligence Quotient The ratio of the tested mental age to chronological age.

The Capacity to acquire and apply knowledge; the faculty of thought

and reason.

EI- Emotional Intelligence The capacity to know and manage one’s emotions, to marshal

emotions in the service of goals, to recognize emotions in others,

and to effectively handle relationships.

IQ & EI


Self –Awareness

Emotional Self-Awareness

Accurate Self-Assessment

Self-Confidence

Social Awareness

Empathy

Organizational Awareness

Service Orientation

Self-Management

Self-Control

Trustworthiness

Conscientiousness

Adaptability

Achievement Orientation

Initiative

Social Skills

Developing others

Leadership

Influence

Communication

Change Catalyst

Conflict Management

Building Bonds

Teamwork & Collaboration

The Competency Framework


Understanding Human Emotional Needs

accepted

accepting

accomplished

acknowledged

admired

alive

amused

appreciated

appreciative

approved of

attention

capable

challenged

clear (not confused)

competent

confident

developed

educated

empowered

needed

noticed

open

optimistic

powerful

privacy

productive

protected

proud

reassured

recognized

relaxed

respected

safe

satisfied

secure

significant

successful

supported

treated fairly

focused

forgiven

forgiving

free

fulfilled

grown or growing

happy

heard

helped

helpful

important

in control

included

independent

interested

knowledgeable

listened to

loved

understanding

understood

useful

valued

worthy


Workshop

Personal Mission Statement


9. Successful Change Initiatives

“It is not the strongest of the species that survives, nor

the most intelligent, but the one most responsive to

change.”

- Charles Darwin


Successful Change Initiatives

Mashreqbank



Nissan Motors



Dr. Martin Luther King, Jr.


Thank You

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