Leading Organizational Change

Risk and RewardRisk and Reward::Practical Steps in Practical Steps in

Leading Organizational Leading Organizational ChangeChange

Donald R. Simon, Donald R. Simon, J.D./LL.M.J.D./LL.M.

Simon Business Consulting, Inc.Simon Business Consulting, Inc.

Central Region Leadership Central Region Leadership DayDay

February 13, 2013February 13, 2013

Risk and RewardRisk and Reward

• AgendaAgenda::

– Welcome!Welcome!

– The Biggest Obstacle The Biggest Obstacle to Changeto Change

– 8 Steps to Change8 Steps to Change

– Q & AQ & A

Me:Me:

• 9 years of experience in the 9 years of experience in the areas of business and law.areas of business and law.

• 8 years of experience 8 years of experience teaching entrepreneurs teaching entrepreneurs about legal and business about legal and business issues.issues.

• Board member: KC Board member: KC Volunteer Lawyers and Volunteer Lawyers and Accountants for the Arts.Accountants for the Arts.

““The most difficult The most difficult thing is the decision thing is the decision to act, the rest is to act, the rest is merely tenacity. You merely tenacity. You can do anything you can do anything you decide to do.”decide to do.”

~~Amelia Earhart~~Amelia Earhart


• Successful executives lead Successful executives lead fundamental changes in the fundamental changes in the ways that the organization ways that the organization operates.operates.

• They are not satisfied with They are not satisfied with the status quo.the status quo.

• In other words, they look to In other words, they look to the sky and ask: “the sky and ask: “Why can’t Why can’t I?I?””


• They envision far-reaching They envision far-reaching changes and follow up changes and follow up with action to make sure with action to make sure that the changes occur.that the changes occur.

• They successfully deal They successfully deal with ambiguity, learn from with ambiguity, learn from experience, and think experience, and think critically and creatively.critically and creatively.


• Successful executives are Successful executives are willing to take some risk in willing to take some risk in order to reap some reward.order to reap some reward.

• Affecting change is an act Affecting change is an act of courage.of courage.


• Ask yourselfAsk yourself::

– ““Do I have the courage it Do I have the courage it takes to lead change?”takes to lead change?”


• It requires a willingness It requires a willingness to:to:

– Take on one’s fearsTake on one’s fears

– Take on the unknownTake on the unknown

– Take the road less traveledTake the road less traveled

• Not everyone is willing to Not everyone is willing to do these things.do these things.


• An organization’s culture is An organization’s culture is built on collective traditions, built on collective traditions, norms, long-standing values, norms, long-standing values, and shared history.and shared history.

• You need to change the You need to change the behavior of the behavior of the peoplepeople in in your organization.your organization.

A HUGE CHALLENGE!A HUGE CHALLENGE!


• It’s not easy to change It’s not easy to change people.people.

• Especially, if those people Especially, if those people are afraid of or resist the are afraid of or resist the opportunity to change.opportunity to change.


• Why do we fear change?Why do we fear change?

– Because, by the very nature Because, by the very nature of being human, we are of being human, we are constantly striving for constantly striving for comfort and safetycomfort and safety..

• Survival is our priority…Survival is our priority…not putting ourselves at not putting ourselves at risk or out there on the risk or out there on the edge.edge.


• Yet we live in a climate Yet we live in a climate where organizations must where organizations must evolve and change if they evolve and change if they hope to survive.hope to survive.

• You’ll be pushing the edges, You’ll be pushing the edges, tearing down barriers, and tearing down barriers, and forging new territory.forging new territory.

• And mostly, it’s a And mostly, it’s a thanklessthankless role to play. role to play.


• The biggest obstacle in The biggest obstacle in leading organizational leading organizational change may be:change may be:

YOU!YOU!


1. 1. Let go of the Let go of the need to be likedneed to be liked..


• Very few people will thank Very few people will thank you for creating chaos in their you for creating chaos in their lives.lives.

• Or asking them to transform Or asking them to transform who they are, what they who they are, what they think, what they believe, or think, what they believe, or how they function.how they function.

• Or where their desk is Or where their desk is located!located!


• Let go of wanting everyone Let go of wanting everyone to love or like you.to love or like you.

• Accept they may Accept they may reject youreject you..

• Think to yourselfThink to yourself::

– ““So what if they don’t love So what if they don’t love me? In the end they might me? In the end they might actually thank me.”actually thank me.”


2. 2. Take the long-Take the long-term viewterm view..


• You may not get credit for You may not get credit for your role in the change and your role in the change and maybe not even in this maybe not even in this lifetime.lifetime.

• Be prepared to start Be prepared to start building things that you building things that you may never see completed in may never see completed in your lifetime.your lifetime.


• No doubt Jacqueline No doubt Jacqueline Cochran and Bessie Cochran and Bessie Coleman got frustrated Coleman got frustrated when changes weren’t when changes weren’t happening fast enough.happening fast enough.


• But they were catalysts for But they were catalysts for change that far surpassed change that far surpassed their lifetimes.their lifetimes.

• Change is a process, an Change is a process, an ongoing endeavor that you ongoing endeavor that you probably didn’t start and probably didn’t start and will most likely not finish. will most likely not finish.


3. Let go of the 3. Let go of the outcomeoutcome..


• Our ego wants the result Our ego wants the result nownow..

• It wants us to succeed and It wants us to succeed and get credit for our hard work get credit for our hard work nownow..

• Not 10 years from now Not 10 years from now when people look back and when people look back and say…say…


““Wow, Mary really Wow, Mary really pushed us to make pushed us to make changes, and it was changes, and it was pretty painful at the pretty painful at the time, but, hey! Look at time, but, hey! Look at us now!”us now!”


Are you up to the challenge?Are you up to the challenge?


• 8 Steps for Leading Change8 Steps for Leading Change::

1.1. Create a sense of urgency.Create a sense of urgency.

2.2. Build a “guiding team.”Build a “guiding team.”

3.3. Create a change vision.Create a change vision.

4.4. Communicate the vision.Communicate the vision.

5.5. Remove obstacles.Remove obstacles.


• 8 Steps for Leading Change8 Steps for Leading Change::

6.6. Create short-term wins.Create short-term wins.

7.7. Don’t let up.Don’t let up.

8.8. Make change stick.Make change stick.


1.1. Create a Sense of UrgencyCreate a Sense of Urgency::

– For change to happen, the For change to happen, the whole department or even whole department or even company must really want it.company must really want it.

– Develop a sense of urgency Develop a sense of urgency around the need for change.around the need for change.



– Open an honest and Open an honest and convincing dialogue about convincing dialogue about what’s happening (or not what’s happening (or not happening).happening).

– Inspire people to move and Inspire people to move and make objectives real and make objectives real and relevant.relevant.



– You have to really work hard You have to really work hard on this step.on this step.

– Spend significant time and Spend significant time and energy building urgency, energy building urgency, before moving on. before moving on.

– If you act without proper If you act without proper preparation, you could be in preparation, you could be in for a very bumpy ride.for a very bumpy ride.


2.2. Build a Guiding TeamBuild a Guiding Team::

– Convincing people that Convincing people that change is necessary often change is necessary often takes strong leadership and takes strong leadership and visible support from key visible support from key people.people.

– Get the right people in place Get the right people in place with the right emotional with the right emotional commitment and the right commitment and the right mix of skills and levels.mix of skills and levels.



– Don’t necessarily follow the Don’t necessarily follow the traditional company traditional company hierarchy. hierarchy.



– Bring together a team whose Bring together a team whose power comes from a power comes from a variety of variety of sourcessources: job title, expertise, : job title, expertise, status, political importance, status, political importance, etc.etc.

– Your “Guiding Team” needs to Your “Guiding Team” needs to work as a team, continuing to work as a team, continuing to build urgency and momentum build urgency and momentum around the need for change. around the need for change.


3.3. Create a Change VisionCreate a Change Vision::

– Get the team to establish a Get the team to establish a simple vision and strategysimple vision and strategy..

– A clear vision can help A clear vision can help everyone understand why everyone understand why you’re asking them to do you’re asking them to do something.something.

– Focus on emotional and Focus on emotional and creative aspects.creative aspects.




– When people see When people see for themselves for themselves what you’re what you’re trying to trying to achieve, then the achieve, then the directives directives they’re given they’re given tend to make tend to make more sense. more sense.

4.4. Communicate the VisionCommunicate the Vision::

– What you do with your vision What you do with your vision after you create it will after you create it will determine your success.determine your success.

– Talk often about your change Talk often about your change vision. vision.

– Involve as many people as Involve as many people as possible.possible.



– Communicate the essentials Communicate the essentials in a simple way.in a simple way.

– Be passionate and show Be passionate and show conviction.conviction.


5.5. Remove ObstaclesRemove Obstacles::

– Remove obstacles and Remove obstacles and enable constructive enable constructive feedback.feedback.

– Empower the people you Empower the people you need to execute your vision need to execute your vision and it can help the change and it can help the change move forward. move forward.



– Reward and recognize Reward and recognize progress and achievements.progress and achievements.


6.6. Create Short-Term WinsCreate Short-Term Wins::

– Set aims that are easy to Set aims that are easy to achieve--in bite-size chunks.achieve--in bite-size chunks.

– Give your team a taste of Give your team a taste of victory early in the change victory early in the change process.process.



– This also means setting a This also means setting a manageable number of manageable number of initiatives.initiatives.

– Each “win” can further Each “win” can further motivate the entire team.motivate the entire team.


7.7. Don’t Let UpDon’t Let Up::

– After every win, analyze what After every win, analyze what went right and what needs went right and what needs improving.improving.

– Set goals to continue building Set goals to continue building on the momentum you've on the momentum you've achieved. achieved.

– Foster determination and Foster determination and persistence.persistence.



– Encourage Encourage ongoing ongoing progress progress reporting.reporting.

– Highlight Highlight achieved and achieved and future future milestones.milestones.


8.8. Make Change StickMake Change Stick::

– Change should become part Change should become part of the core of your of the core of your organization.organization.

– It’s also important that your It’s also important that your company’s leaders continue company’s leaders continue to support the change.to support the change.



– This includes existing staff This includes existing staff and new leaders who are and new leaders who are brought in.brought in.

– If you lose the support of If you lose the support of these people, you might end these people, you might end up back where you started. up back where you started.


So how does this work logistically?So how does this work logistically?


• Jane works at a government Jane works at a government agency.agency.

• Like many people, she’s Like many people, she’s watching what she eats.watching what she eats.

• The problemThe problem: little or no : little or no healthy eating options in healthy eating options in the breakroom.the breakroom.


• Jane would like to see Jane would like to see healthy or at least healthier healthy or at least healthier snacks in the vending snacks in the vending machines.machines.


• She thinks that there may She thinks that there may be some resistance from be some resistance from her co-workers because her co-workers because healthy snacks:healthy snacks:

1.1. Tend to be more expensive; Tend to be more expensive; andand

2.2. Take space from other more Take space from other more popular snacks.popular snacks.


1.1. Create a Sense of Create a Sense of UrgencyUrgency::

– Jane starts talking to others Jane starts talking to others about her concerns.about her concerns.


1.1. Create a Sense of Create a Sense of UrgencyUrgency::

– She discusses some of the She discusses some of the health concerns for people health concerns for people with office jobs.with office jobs.

– And how unhealthy lifestyles And how unhealthy lifestyles are driving up health care are driving up health care costs for everyone.costs for everyone.



– Now that some of Jane’s co-Now that some of Jane’s co-workers understand the workers understand the urgency of the change, she urgency of the change, she needs to select her “Guiding needs to select her “Guiding Team.”Team.”

– She selects several co-workers She selects several co-workers based on their experience, based on their experience, popularity, rank, etc.popularity, rank, etc.


– These co-workers These co-workers will provide the will provide the necessary necessary direction for direction for developing and developing and implementing the implementing the healthy snack healthy snack change.change.




– Jane’s co-workers will need Jane’s co-workers will need to know what’s in it for to know what’s in it for them. them.

– She must create a vision She must create a vision that connects the proposed that connects the proposed healthy snack options to healthy snack options to long-term health benefits long-term health benefits and lower health care costs.and lower health care costs.



– Jane and the “Guiding Team” Jane and the “Guiding Team” talk often about change talk often about change vision. vision.

– They openly and honestly They openly and honestly address co-workers’ address co-workers’ concerns.concerns.

– They tie everything back to They tie everything back to the vision. the vision.



– Throughout the process, Jane Throughout the process, Jane will need to address any will need to address any barriers brought to her barriers brought to her attention to keep the change attention to keep the change process moving. process moving.

– She must also make sure that She must also make sure that a sufficient level of co-workers a sufficient level of co-workers will buy the healthy snacks will buy the healthy snacks once they are available.once they are available.



– Jane and the “Guiding Team” Jane and the “Guiding Team” have been able to get several have been able to get several members of management on members of management on board to the healthy snack board to the healthy snack idea!idea!



– Jane will need to focus on the Jane will need to focus on the role of early success as an role of early success as an enabler of future success.enabler of future success.

– She might share the results She might share the results of an employee survey that of an employee survey that shows an interest in healthy shows an interest in healthy eating options.eating options.



– She will want to monitor the She will want to monitor the sales of the new food items to sales of the new food items to see how well the see how well the organizational culture is organizational culture is adapting to them.adapting to them.

– Jane may encourage co-Jane may encourage co-workers to come forward with workers to come forward with their own healthy snack their own healthy snack suggestions.suggestions.


• You have to work hard to You have to work hard to change an organization change an organization successfully.successfully.

• If you’re too impatient, and If you’re too impatient, and if you expect too many if you expect too many results too soon, your plans results too soon, your plans for change are more likely for change are more likely to fail.to fail.


• But if you plan carefully and But if you plan carefully and build the proper foundation, build the proper foundation, implementing change can be implementing change can be much easier, and you’ll much easier, and you’ll improve the chances of improve the chances of success.success.

• If you do these things, you can If you do these things, you can help make the change part of help make the change part of your organizational culture.your organizational culture.


• Remember that with risk, Remember that with risk, there can be reward.there can be reward.


““[D]ecide...whether [D]ecide...whether or not the goal is or not the goal is worth the risks worth the risks involved. If it is, involved. If it is, stop worrying..."stop worrying..."

~~Amelia ~~Amelia EarhartEarhart


AnyAny

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Leading Organizational Change

Leadership & Management

Transcript of Leading Organizational Change