Intel Corporate Change Agent

Researcher/Author: Richard Platt | Intel Corporation

Innovation and Change Management:

“Reflections of a Corporate Change Agent”

Richard PlattSenior Instructor Innovation Methods

Intel Corporation

26 June 2006


Innovation: Engine of Economic GrowthBusiness is Darwinian

o “Survival of the fittest” → Evolve or your species dies outo “Innovate or Die” → John Kao

Relevant for ALL companieso From the local shoe store to the automotive manufacturer, to the hi-

tech firm, no company is immune or can escape this reality


Organizational BarriersOrganizational Arrogance: “overbearing pride evidenced by a superior manner toward inferiors”

» Typified by the attitude of: “We know innovation better than anyone else, we lead the industry”

Resistance to change – Clinging to old standards, resist new ideas, culture of resistance

Threats and fears – Others pose threat, fear of competition, lack of trust

Lack of time or interest – Constant interruptions, unwilling to invest time

Corporate atmosphere/Political maneuvering – Lack of cooperative efforts, stove-piped approach to holistic solutions

Continuity – More convenient to make incremental changes, significant gains believed to be unachievable

Rush to results – Failure to invest appropriate time. Ideas too quickly rejected

No competitive pressure – Necessity is the mother of invention

Lack of opportunity for partnerships with other organizations


The Dark Side of SuccessIndividual and Organizational Challenge of the inevitable

Downward spiral of Repeated Successes

Repeated Successes

Attitude of “we can do no wrong”

Arrogance

Complacency

Decline

Basic Guideline: Honesty with oneself and NEVER, EVER believe your own PR


What are we up against?

The corporate structure and its immune system (ALL companies have it)

Innovative Concept

Get ready to run the corporate gauntlet


Change Management Iceberg(according to Wilfried Krüger)

Top of the Iceberg: o Most managers only consider

the topBelow the Surface:

o Management of Perceptions and Beliefs

o Power and Politics Management

People Involved in Changeo Opponentso Promoterso Hidden Opponentso Potential Promoters


Four Main Reasons for Resistance to Change(according to Kotter and Schlesinger [1979])

1. Parochial self-interest: o Some people are more concerned with the implication of the change

themselves and how it may affect their own interests rather thanconsidering the effects for the success of the business

2. Misunderstanding: o Communication problems, inadequate information

3. Low tolerance of Change: o Certain people are very keen on feeling secure and having stability in

their work

4. Different assessments of the situation:o Some employees may disagree with the reasons for the change and with

the advantages/disadvantages of the proposed change

Best Advice: “Some people will get it about what you do and some wont, work around those that don’t” – Senior Intel VP


Are you ready for the Challenge?Conviction Courage Capability

Firm belief thata) Change isneeded, andb) The change isright …anIntellectualcommitment

Willingness to “do the right thing” and take on the necessary personal and professional risks and sacrifices…a ‘gut”emotional commitment

The ability to act effectively on commitments…a matter of talent, skills, experience and support

Yourself

Others Around and Below YouTop Management

→ →


Real Change Leaders / Maverick ChampionsReal Change Leaders / Maverick Champions have:

• A No Excuses mind-set• More focus on changing leadership styles depending on the situation, learning

as they go• Broad-based change efforts are catalyzed by Maverick Champion’s creative

ideas• Real Change Leaders / Maverick Champions act within the scope that they can

reach and often beyond the normal bounds of their authorityo They follow the Jesuit belief that it is easier to ask forgiveness than permission

Maverick Champions:• Invent new products• Discover new markets• Find new resources• Land new accounts• Create new approaches

Excellent institutions / High-performing companies nourish and encourage them and capitalize on their unique insights and gifts

Source: “Real Change Leaders”, Jon R. Katzenbach and the RCL Team. 1999


Driving the Innovation Agenda Using a Team or a Maverick Champion

1. Real Teams are best when: o Potential for collective performance is higho The solution and approach are unclearo You have the time and skills to build a real teamo Are essential for broad-based change, assuming organizational commitment to move

forward with the change

2. Single-leader working groups are best when:o Time and Efficiency are criticalo The task/solution are straight forwardo Their potential for high collective or joint performance and skill enhancement is not high

3. Maverick Champions are best when: o You want individual attentiono Creativity, and accountability o And when individual expertise is more important than multi-person skillso When you need to pilot broad-based, behavioral change to prove the value proposition

Source: “Real Change Leaders”, Jon R. Katzenbach and the RCL Team. 1999


6 Approaches to Deal with Resistance(according to Kotter and Schlesinger [1979])

1. Education and Communication

2. Participation and Involvement

3. Facilitation and Support

4. Negotiation and Agreement

5. Manipulation and Co-Option

6. Explicit and Implicit Coercion


Organizational Change Model FormulaPowerful tool for quick 1st impression of the possibilities and conditions to change an organization

Important Note: All 3 components must be present to overcome the resistance to change:

o Dissatisfaction with the present situation

o A Vision of what is possible in the future

o Achievable First steps towards reaching that vision

If any of these are zero or near zero, then the possibility of change will also be near zero and the resistance to change will dominate


Framework for Changing MindsLEGEND:Type of Idea: Concept / Story / theory / skillDesired Content: The mind change being soughtCounter-content: The idea(s) that run counter to the desired contentType of Audience/Arena: Large/small; diverse/uniformFormat: Intelligences, media, symbol systems by which content is

conveyedLevers of change / tipping point factors: The most germane of the

seven levers* that determine whether a tipping point is reached

Seven Change Levers: Reason, Research, Resonance, Redescription, Resources and Rewards, Real World Events and Resistances

Source: “Changing Minds – The Art and Science of Changing our Own and Other People’s Minds”, Howard Gardner. Pp 243, 2004


Checklist for Innovators1. Set a noble goal for oneself – in service to others, not your own ego

2. Develop a Plan and Execute it – start w/ the end in mind and step back from it step-by-step

3. Develop problem solving skills. – TRIZ, “Problem Finding”, interpersonal conflict management etc…

4. Passion for Creative / Innovative Work – This will carry you beyond the capabilities of the normative attitude of “this is just a job”

5. “Hard Knock” Resistance – Know how to fight (appropriately) for your ideas and win – this is a skill that is developed by experience

6. Drive For and Get Intermediate results – Do whatever is legally necessary and appropriate for acceptance and adoption to take place.

Source: Altshuller, G. S., Vertkin, I. M., How to Become a Heretic. Life Strategy of a Creative Person, Petrozavodsk, Karelia, 1991, Pp 11. (Russian)


Desired Results

BUILD CONSENSUS ALIGN OBJECTIVES

READ THE LANDSCAPE IDENTIFY STAKEHOLDERS

The Champion ‘Must Do’ ListGaining Support: Change Agent

Identify the most important players and

target groups for a campaign

Identify opponents and allies

Identify how to influence each target group

Investigate the balance of power involved in the

issue

Make the “Shift” in Thinking About Your Role


Guidelines for ChampionsMantra: “Results” + “Constantly seek the ideal final

result.”Performance Discipline1. Set goals and measures that make sense to customers and

employees2. Be the demanding boss who walks the talk3. Reward those who earn it and punish those that deserve it4. Raise the bar in the areas that are lagging5. Reward that which you are demanding6. Tie into already established programs and support them in

being successful

Source: “Real Change Leaders”, Jon R. Katzenbach and the RCL Team


“ Art of the Strategist ” -10 Basic Principles1. Commit Fully to a Definite Objective:

o Define your goals. Commit to them publicly. Hold on and hold fast !

2. Seize the Initiative and maintain it:o Analyze thoroughly. Choose when and where to move forward. Don’t wait for perfect conditions, Act.

Then keep the pressure on.

3. Economize to mass resources:o Determine your competitive advantages. Concentrate your $$, people, time, and influence

accordingly. Cut elsewhere, ruthlessly if necessary. Take Risks

4. Use Strategic Positioning:o Locate your power spot – the point where if can win your argument then you will win everywhere.

5. Do the Unexpected:o Employ secrecy, speed and boldness. Surprise the current status quo argument with an

uncharacteristic or brand-new move. Attempt the impossible

6. Keep things simple:o Understand that complexity kills, Simplify your org chart

7. Prepare simultaneous alternatives:o Put backups into your strategic plan. Bypass obstacles by using multiple approaches

8. Take the indirect route to your objective;o Study the variables of influence, (see Seven Levers). Sidestep obstacles by doing what others cannot

do

9. Practice Timing and Sequencing:o Do the Right Thing, but not at the Wrong Time. Separate one-shots from on-going actions

10. Exploit Your Success:o Don’t Quit before the game is over. Measure your progress. Build on and promote your achievements


Using Values as a GuideAt Intel we guide our behavior by the Intel Values: these may not be at your

company – but you can use them too

Subset of the Intel ValuesRisk Taking: Fostering Innovation and Creative Thinking; Embracing Change and Challenging the Status Quo; Listening to all ideas and viewpoints, Learning from our mistakes.

Quality: Continuously learn, develop and improve

Great Place to Work: Be open and direct; Promote a challenging work environment that develops the our diverse workforce.

Discipline: Make and meet commitments; pay attention to detail.

Results Orientation: Set challenging and competitive goals; focus on output; assume responsibility; constructively confront and solve problems; execute flawlessly

Customer Orientation: Listen and respond to our customers, suppliers and stakeholders; Clearly communicate mutual expectations; Deliver innovative and competitive products and services; Excel at customer satisfaction

Don’t be afraid to fail, but fail quickly. Don’t be afraid to go out on a limb. That is where the fruit is.

But, be careful, that is also where the nuts are!


Focus Areas of Problem Statements Product Development Manufacturing PathfindingR&D / TD

Total cost savings of solutions generated $XXXXXXXXXXX

Summary of Results

Keys to Buy-in and Support:

o Get Early Successes they are the Key to buy-in. State what you are going to do and deliver it.

o Understate and Over-perform towards objectiveso Tie metrics and results to the bottom line, must be measured in $$o Focus on constant improvement of training materials and manage perceptiono Understand why others failed in pushing similar agendas, Listen to those that have preceded you and those who offer unsolicited advice,

o It can only help to refine your positioning statementso Actively pursue Senior management approval / support.

o When challenging the status quo you will need the help


BACKUP


Typical Managerial types:“Budget Beaters” and “Participative Managers”

Participative ManagersOther end of the spectrum, their problem is not being tough enoughTheir people like them and feel good about being involved

1. Take a long time to generate results2. Business performance erodes due to a lack of

discipline hitting the #’s3. Unable to make the tough people-decisions. 4. Tendency to focus on the feelings of people,

instead of what is in the best interests of the customers and the shareholders of the company

Source: “Real Change Leaders”, Jon R. Katzenbach and the RCL Team

Budget BeatersCommand-and-Control managers who set and make tight annual budgets no matter whatTend to be “Corporate Careerists”

1. Focusing on climbing the corporate ladder can be seen at the expense of their people

2. Not getting the better people to work for them, (see #1 above)

3. Not extracting initiative and innovative ideas from their people

4. Not delivering more than cost reduction results

Over time the problems they encounter:


The Performance of Real Teams vs. Single Leader Groups

Performancedriven

RealTeam

CollectiveWork products

PersonalGrowth

Leaderdriven

SingleLeaderGroupIndividual

assignments Efficiency

Higher Performance

Faster PerformanceSource: Adapted from “Real Change Leaders”, Jon R. Katzenbach and the RCL Team. 1999


Example Template for Changing Minds

Charles Darwin’s Evolutionary Revolution:Type of Idea: Theory Desired Content: Origin of species through natural selection over

long periods of timeCounter-content: Religious accounts, intuitive theories of

creationismType of Audience/Arena: Initially small and uniform, larger and

more diverseFormat: Linguistic argument in book form, corroborating evidence

in fossils, flora and faunaLevers of change / tipping point factors: Reason, research,

representational redescription, overcoming resistances

Source: “Changing Minds – The Art and Science of Changing our Own and Other People’s Minds”, Howard Gardner. Pp 243, 2004


Example: Challenge & Commitment MapConviction Courage Capability

Firm belief thata) Change isneeded, andb) The change isright …anIntellectualcommitment

Willingness to “do the right thing” and take on the necessary personal and professional risks and sacrifices…a ‘gut”emotional commitment

The ability to act effectively on commitments…a matter of talent, skills, experience and support

John Olden (purchasing dept. head; critical to success of product design reengineering team)

- sees no big issues in product design processes (sees main problem as sales)-Doesn’t see big role for purchasing in improving design process- May think entire reengineering effort is just a fad pushed by someone for their own glory

+ Good record of taking on tough projects (dept consolidation in 2003)+ Always willing to speak his mind (reamed CEO for awarding Acme contract)

+ 20 years of experience+ Knows vendors capabilities intimately- Probably doesn’t understand reengineering concept and mechanics

→ →In this situation some fact sharing (to build conviction) and exposure to reengineering (to build capability) would go a long

way to build Jim’s commitment


The Champion’s Attitude: Risk TakingLeads by example:

o Takes steps that no one else would attempt, fails fast, learns quick, spreads excitement, infectious attitude towards the task at hand.

o Visualizes the end game, shares the results, offers help with no expectations in return.

o Above all, has integrity and morals to pursue the goals of the task at hand without (permanent) damage to those around him.

Commitment: Foundation of a ChampionA champion’s traits can be thought of as a collection of values and beliefs that are based upon theory, constant learning and most importantly, the impressions of “life’s experiences” have had upon one’s outlook.

o Constantly learning being that utilizes one’s experience. o Constantly apply improvements to seek out the optimal patho A true champion blends one’s life’s experience both good and bad, with the

optimized and perceived paths of those around him.

Champions take a path (refer to The Way within the Art of War) and when choosing a path considers “ideality”.Take advantage of the traits of other innovators and work with them if possible


References and Resources“Real Change Leaders”, Jon R. Katzenbach and the RCL Team. 1999“Changing Minds – The Art and Science of Changing our Own and Other People’s Minds”, Howard Gardner. Pp 243, 2004“The Art of the Strategist - 10 Essential Principles for Leading Your Company to Victory”, William A. Cohen, PhD, Major General, USAFR, Ret.12Manage Website: http://www.12manage.com

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