Change ManagementChange Management
Presentationfor
RCB Regional Conference
ACMAby
Bill Synnotat
The Telstra Dome, Melbourne
May 30, 2007
Topics to be CoveredTopics to be Covered
Framework as a road map to create a peak-performance, innovative & agile organisation
How to turn around an unsuccessful change process and/or keep a successful organisation on track
Topics contTopics cont..
Address the challenge of implanting the change process permanently into your organisation’s culture (including behavioural change)
Some useful change implementation tools
Six Characteristics of aSix Characteristics of aPeak-Performance, Peak-Performance,
Innovative, Agile and Robust Innovative, Agile and Robust OrganisationOrganisation
1 Customer–focused
2 Concentrating more on leadership & less on management/administration
3 Entrepreneurial (based on innovation)
4 People–orientated
5 Tightly Focused on “decisive opportunities”
6 Resilient (for more details see article on web site: www.billsynnotandassociates.com.au)
ChangeChangemeans experiencing something
different and/or doing something differently
Usually with the basic aim of
“…Increasing the organisation’s capability to adapt to and adopt new ways of doing
business…”
“…organisation today - has to be designed for change as the norm and to create change rather than react to it …”
Peter Drucker, 2001
“…it is not the strongest of the species that survives, nor the most intelligent; it is the one that is the most
adaptable to change…”Charles Darwin as quoted in Harvard Business Review, 1998
“. . .you can resist change and win one or more battles, but you will lose the war...”
Noel Tichy, 1999
(quotes cont.)(quotes cont.)
“…change does not come from a slogan or a speech. It happens because you put the right people in place
to make it happen…”Jack Welch as quoted in Jack Welch et al, 2001
“…An organisation is a web of interconnections; a change in one area can throw a different part of the
organisation off balance. Managing these ripple effects and the unexpected outcomes is the
challenge of change…”
Harvard Business Review, 1998
“…The real voyage of discovery consists not in seeking new lands, but in seeing with new eyes…”
Marcel Proust as quoted by David Osborne in “Re-Inventing Government”, 1993
“…Given the choice between changing and proving that change is not necessary, most people
will get busy on the proof…”John Kenneth Galbraith quoted in Australian Financial Review, 1999
(quotes cont.)(quotes cont.)
“…When the rate of change inside an institution becomes slower than the rate of change outside,
the end is in sight …”Jack Welch, 2001
“…it has become a truism that the only constant is change; with one change overlapping with
another, the time-frame to accomplish change is shortening…”
Harvard Business Review, 1998
(quotes cont.)(quotes cont.)
(quotes cont.)(quotes cont.)
“…the question that faces the strategic decision-maker is not what his/her organization should be tomorrow. It is what do we have to do today to be
ready for an uncertain tomorrow…”Peter Drucker as quoted in AFR Boss, 2000
“…Change programs often seem like they’re being shot out of cannons. They start with a
bang, then quickly fall flat…” Harvard Business Review, 1998
(quotes cont.)(quotes cont.)
Change involves
“… combining “inner shifts” in people’s values, aspirations and behaviours with “outer shifts” in
processes, strategies, practices and systems…...It is not enough to change strategies, structures, and systems, unless the thinking that produced those
strategies, structures and the systems also changes…”
Peter Senge, 1999
Levels of ChangeLevels of Change
Personal
Group
Organisational
Environmental
NB: There is overlap & interaction between the different levels
Competition comes from
“where you least expect it”
In a survey it was found that
“…industry newcomers – not the traditional competitors – had taken the best advantage of
change over the past ten years...…by profoundly changing the rules of the game…”
Gary Hamel, 1997
eg Murdoch, Branson, Gates, etc
“…an outmoded belief, assumption, practice, policy, system or strategy, generally invisible, that inhibits change and prevents resources being used
for new opportunities…”Robert Kriegel et al., 1996
Remember:Remember:
“…Over 50% of technological breakthroughs that influence an industry or organisation come
from outside that industry…” Peter Drucker, 2001
Point of Diminishing ReturnsPoint of Diminishing Returns
This involves organisations trying to wring the last efficiency out of business models that have reached their use-by date; their strategies are
indistinguishable from their competitors
Why Do Some Why Do Some Organisational Transition Organisational Transition
Efforts Fail ?Efforts Fail ?
In many organisational transitions, the gap between expectations and
achievements is very large
Organization’sPerformance
Organization’sPerformance
TimeTime
Status Quo
DesiredWhat We Expect
What Actually Happens
VOD
ChangeInitiative
The J-Curve The J-Curve
Most Common Most Common Management Error Management Error
“…generally social and behavioural causes frustrate change initiatives rather than
technical problems…”Patrick Dawson, 2005
The formula for success now
is no guarantee
of success in the future
The Hardest Organisation To The Hardest Organisation To Change is a Change is a SSuccessfuluccessful O Onene
(or one which perceives itself to be successful)(or one which perceives itself to be successful)
ie why dabble with the formula for success?!!BUT
“…over 40% of the businesses listed in the 1985 Fortune 500 are not in business today…”
Karlson Hargroves et al, 2005
Active InertiaActive InertiaStrategic frames become blinkersProcesses become routinesRelationships become shacklesValues become dogma
Important question is “…what is hindering us?…”
Definition of insanity!
eg - happy the way we are (zone of comfort)
- custodians of the traditions, etc
The combination of cultures that resist change and managers who support the status quo is
lethal for any change process
“…Status Quo: Isn’t that Latin for the mess we are in now?…”
(AIM 2000)
ATTITUDES TO CHANGEATTITUDES TO CHANGEATTITUDES TO CHANGEATTITUDES TO CHANGE
“…Change creates fear in established organisations and paranoia in the minds of executives hired to protect the status quo…”
Gene Landrum, 1996Working harder and harder
“…like driving a car and putting your foot down harder on the accelerator when you
should instead change gears…”
Seen as a threat unless staff have ownership
Trust is one of the first casualties
Encountering change too often “…alternates between short bouts of radical
surgery and long doses of studied inattention…”
Conflicting messages of change, ie staff are encouraged to realise their aspirations but basic needs such as job security are threatened
Code word for “something nasty”
Pushes people outside zone of comfort
(attitudes to change cont.)(attitudes to change cont.)
(attitudes to change cont.)(attitudes to change cont.)
People feel that they are not in control of what is happening (learned helplessness)
Indications of resistance – mistrust, resignations, transfers, absenteeism (includes phantom), lateness, lower productivity, loss of quality, slowdowns, wildcat-strikes, sullenness and quarreling
WIIFM, ie gains and losses
Creates conflict and chaos
(attitudes to change cont.)(attitudes to change cont.)
Technocrats treat change as a technical problem only
Not treating the past with respect, ie need to build on the past
Have experienced a failed change project
“Say yes, but do no”
Most Models Over-Simplify Most Models Over-Simplify the Situationthe Situation
Most Models Over-Simplify Most Models Over-Simplify the Situationthe Situation
Change is very
• contextual
• situational
Most Models Are Like Supernova
Quotes
“…All models are wrong – some models are useful…”
Edward Deming (1980)
“…The value of the model is not in its predictive power but in its power to catalyze reflective
conversations…”Andrea Shariro (1999)
“…There is no science of transformation, only an art…”
Fortune Magazine (1996)
Limitations of Limitations of Overseas Models for Overseas Models for
AustraliaAustralia
Australia’s situation is different from other countries like USA, Europe and Japan.
Some Australian Cultural Some Australian Cultural DifferencesDifferences
One of the most ethnically-diverse countries
Preference for strong, but not hard, leaders
Comfortable with consistent leaders
Preference for slow, incremental change
Preference for pattern and order; uncomfortable with crisis and chaos
(some Australian cultural differences cont.)(some Australian cultural differences cont.)
Workplace relationships more important than self-improvement
Reluctance to confront poor performance
Hypersensitive to hypocrisy and cant
Never forgive a tyrant
Slow to anger
Culture of mateship
Organisational Differences with USAOrganisational Differences with USA
Australian organisations are- more conservative & have a greater fear of making
mistakes
- less keen to be assessed
- statements (vision & mission) are less indicative of success
- greater focus on finding a cause rather than a challenge
(Organisational Differences with USA cont.)(Organisational Differences with USA cont.)
- workforce prefers work that is worthwhile rather than being challenged to reach stretch goals
- winning is less about charismatic leaders, big breakthrough ideas or high pay levels and more about team performance
Seven Ingredients for Effectively Seven Ingredients for Effectively Handling An Organisational Handling An Organisational
Change Change (see hand-out)
1 Laying a foundation for new ways (includes building on the past)
2 Establishing a sense of urgency
3 Forming a transitional team
4 Creating alignment
5 Maximising connectedness
6 Creating short-term wins
7 Consolidating performance improvementsThere is overlap between the ingredients, and different degrees
of emphasis needed in different situations
Resistance to ChangeResistance to Change
It is normalPeople are concerned about loss (real &
perceived)Need to understand what is under-pinning
the resistanceMinimise time in this area by focusing most
attention on supporters of the change
CommunicationsCommunications
Communication Formula Words (20%) Body Language (40%) Tone (40%)
Make communications receiver-friendly
Culture is Complex, Powerful, Culture is Complex, Powerful, Deep & Stable Deep & Stable
Change challenges current culture. It requires “unlearning” and “relearning” which can be very painful and slow
Three parts to culture
i) behaviours, ie action, words, relationships, etc
ii) symbols, ie physical environment, recognition concepts, etc
iii) systems, ie reporting, performance management, etc
Some ToolsSome ToolsDriving Forces AnalysisDriving Forces Analysis
Forces Direction Impact Term ControlStrategies
(+/-) (L/M/H) (S/M/T) (C/S/U)
Life-cycle approachLife-cycle approach
Non-verbal signalsNon-verbal signals
As stated before, in communications body language and tone of voice are more significant than words
Describes ways to read and understand non-verbal signals
Story-tellingStory-telling
Explores the importance of story-tellingDetail ways to improve your story-telling
Understanding yourselfUnderstanding yourself
A series of questions so that you can understand yourself and others who work with you
Analyse the Way you Spend Analyse the Way you Spend your Time your Time
This will show how we waste most of our time by doing work that is not adding value to the customer/client
Most managers waste more than 50% of their time doing “re-work” and “non value- adding work”
Network mappingNetwork mapping
This tool explores how the “informal” network works
Creative thinkingCreative thinking
The 6 hats that help structure a meeting so that it is more productive
Bill Synnot’s contact detailsBill Synnot’s contact details
Address: Bill Synnot & Associates, 18th Floor, 300 Queen St., Brisbane
or 15 Hipwood St., Norman Park, Qld, 4170
Phone: 0418 196 707
Fax: 07 3399 7041
Email: [email protected]
Skype: bill.synnot
Web: www.billsynnotandassociates.com.au
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