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Cost Effective Change Management
Thursday, June 16, 2011Mr. Shahnawaz khan
TrainerSEEKERS INTERNATIONAL
WWW.seekersintl.com
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What was advertised This session will discuss why change management needs to be a key
competency for people and organization, and will share some tips regarding how to improve the practice of change management in your work.
All of us desire to see improvement in our lives and in our society. In our workplaces, the pace of change is accelerating. This can often bring about major enhancements to our lives. Many changes, from email to cell phones, from employee empowerment to Lean Six Sigma, have altered our workplaces dramatically, and forever. Managing change, and managing it well, is becoming one of the most critical competencies for any organization.
This session has 2 dimensions
1. organizations wants to bring change to be more competitive and effective 2. The organization is SME and their sole purpose of bringing change is
safeguard expenses
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Today’s Discussion Let’s diagnose this Situation Do some introspection Discuss Some ideas – won’t necessarily have all of
the right answers And, develop action plans for ourselves to
move from thought to results
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Takeaways Key points you agree with Key points you don’t What are YOU going to do
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Let’s start!
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Food for Thought
Imagination is better then knowledge
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“Everyone thinks of changing the world, but no one thinks of changing himself.”
- Leo Tolstoy
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A question for you:
What is Change management?
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Change is the only constant thing Organizational change is the movement of an
organization from the existing plateau toward a desired future state in order to increase organizational efficiency and effectiveness (Cummings and Worley, 2005; George and
Jones, 2002).
The process, tools and techniques manage the people-side of change to achieve
the required business outcome
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Cost and Cost Effectiveness Cost is expense consumed to produce
RESULTAll costs are the result of some decision or activity
Cost is a function of the amount of resource consumed and the price per unit of the resource
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Change Revolves around 3 areas1.Change PEOPLE
Mentality Attitude / Behavior Expectation Perception Resistance
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My organization is good at managing the “people” side of change initiatives. ”
36%
20% 24%
8%2%
10%
0%
10%
20%
30%
40%
StonglyDisagree
Disagree Neutral Agree StronglyAgree
Don't Know& N/A
Almost 1/2 disagreed
Managing change: people
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Causes of resistance
Employees: 1. Not aware of the
business need for change
2. Lay-offs were announced or feared
3. Unsure if they had the skills needed for success in the future state
4. Comfort with the current state
5. Believed they were being asked to do more with less, or do more for the same pay
Managers: 1. Loss of power and
control 2. Overloaded with current
responsibilities 3. Lacked awareness of
the need for change 4. Lacked the required
skills 5. Fear, uncertainty and
doubt
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Techniques to reduce resistance 1. Communicate and educate your employees
the logic of change 2. Participation 3. Facilitation and support 4. Negotiation 5 Manipulation and Cooptation “using a threat
with no intentions just to get an advantage Buy off the leaders of resistance group by giving them a key role in change decision
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2.Change Structure Complexity Centralization Redesign How authority and responsibility is distributed
across the organization. Authority pattern in organization shows who reports whom and who is answerable and accountable to whom. Departmentation or task grouping, hierarchy layers, span of control and the extent of formalization (bureaucratic or participative one).
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3.Induction of Technology
Work process Methods Equipments
Technology is considered the engine of growth in today’s world. Perhaps the greatest challenge for contemporary organizations is the acquisition and integration of technology in its strategy, structure and process.
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WHY CHANGE Economic conditions change as they are
impacted by organizational failures, terrorist attacks, natural disasters, etc.
Consumer behavior changes, e.g., children use computers at a very early age
Suppliers fail as big customers force them to lower prices or as other changes impact them e.g., Mattel toys manufactured in China containing lead
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Employee unions strike as organizational leaders give themselves bigger bonuses salaries and ask for concessions from unions
Violence spills over from society to the work place and schools. Children and adults are injured and/or
Natural disasters occur throughout the world and individuals, organizations and nations try to respond to the impact of hurricanes, earthquakes, tornadoes, tsunamis, fires and floods
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Revised Objective/s Once objective revised the whole Scenario changed
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ProcessTransformation input to out put.For e.g. production process means conversion of raw material to finished goods. Total Quality Management (TQM) working with in the system
Business Process Restructuring (BPR) working on the system’. Similarly in context of organization there are other processes such as decision making, objective setting, communicating, controlling & coordinating
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Culture Values, beliefs and mind-set of a manager at work “Corporate
Culture” Cognitive style (thought process), Personality, Behavior Individualism - Collectivism Masculinity - Feminism Power Distance - Low or High Uncertainty Avoidance - Low or High Time orientation - Low or High Organization Politics Changes have political consequences Change disturbs power-distribution in organization Managers have interests & groupings Therefore power may enable or resist change.
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External Environment Social and cultural Issues
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Political Issues Political Impacts
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Government policies Monitory & Fiscal Policies
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Legal System Impacts
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Economical Condition Impact of Economy
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Consumer Behavior Impacts
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Globalization Impacts
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Types of Change Natural Evolutionary Change
Planned & Managed Change
Unplanned Revolutionary Change
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Food for Thought
The “changers” or the change agents may be “living” in the future state, while everyone else “the changees” are living in the present state
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Three Phases of Change: How people experience change
Current State
Transition State
Future State
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Current State Employees (including management and executives!)
generally prefer the current state, because that is where they live
Current State
Transition State
Future State
“better the devil you know is better than the devil you don’t”
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Future State The future state is unknown to the employee; will it be
better, or worse? This is where Project teams “live”
Current State
Transition State
Future State
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Transition State The transition state creates stress and anxiety
Current State
Transition State
Future State
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LOUD THINKING
Effective change management MUST be focused on helping individuals change
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Successful change addresses both the technical and the people side
Solution is designed, developed
and delivered effectively(Technical side)
Solution is embraced, adopted and utilized
effectively(People side)
= CHANGE SUCCESS
+
Project management
Change management
Current Transition FutureCurrent Transition Future
Individual PEOPLE change, NOT organizations
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Individual change management it theCenterpiece of success
The secret to successful change lies beyond the visible and busy activities that surround change. Successful change, at its core, is rooted in something much simpler:
How to facilitate change with one person.
RAKDA
From ADKAR: a model for change by Jeff Hiatt
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Effective change management requires two perspectives
Individual perspective
How does one person makes a change successfully?
Organizational perspective What tools we** have
to help individuals make changes successfully?
** “we” means project leaders and team members, HR, OD, training, communications, managers, supervisors
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The focus of Change management is on helping individuals make their own personal transition
Organizational “The change” to how we
do business
IndividualCurrent Transition FutureCurrent Transition Future
How I do my job today
How I will do my job after the change is
implemented
Current Transition FutureCurrent Transition Future
Current Transition FutureCurrent Transition Future
Current Transition FutureCurrent Transition Future
From:
To:
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Individual change is a process
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The five building blocks of successful individual change
Awareness of the need for change
Desire to participate and support the change
Knowledge on how to change
Ability to implement required skills and behaviors
Reinforcement to sustain the change
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ADKAR
Awareness of the need for change (why). Desire to support and participate in the change
(our choice). Knowledge about how to change (the learning
process). Ability to implement the change (turning
knowledge into action). Reinforcement to sustain the change
(celebrating success).
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Employees have preferred sendersof change messages
0% 10% 20% 30% 40% 50% 60%
Other
CM team leader
CM team member
Project team leader
Project team member
The employee's supervisor
Department head
Senior manager
Executive manager
CEO/President
Percent of respondents
Personal messages
Business messages
Top-level executives and senior leaders when the message pertains to the business need for change and alignment of the change with the organization's overall direction.
Employees’ immediate supervisors for messages that pertain to the individual impact resulting from the change (discussing 'what's in it for me' with each employee).
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Communication checklist
Yes No Question:
Have you identified all of the different audiences you need to communicate with throughout the organization?
Have you identified who the ideal sender of communication messages will be?
Have you identified what are the most effective channels of communication?
Have you created mechanisms to enable two-way communication to take place?
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Not Everyone Changes at the Same Pace
Awareness Desire Knowledge Ability ReinforcementPerson B Awareness Desire Knowledge Ability ReinforcementPerson B
Awareness Desire Knowledge Ability ReinforcementPerson D Awareness Desire Knowledge Ability ReinforcementPerson D
Awareness Desire Knowledge Ability ReinforcementPerson C Awareness Desire Knowledge Ability ReinforcementPerson C
Awareness Desire Knowledge Ability ReinforcementPerson A
Awareness Desire Knowledge Ability ReinforcementPerson H Awareness Desire Knowledge Ability ReinforcementPerson H
Awareness Desire Knowledge Ability ReinforcementPerson G Awareness Desire Knowledge Ability ReinforcementPerson G
Awareness Desire Knowledge Ability ReinforcementPerson E Awareness Desire Knowledge Ability ReinforcementPerson E
Awareness Desire Knowledge Ability ReinforcementPerson I Awareness Desire Knowledge Ability ReinforcementPerson I
Person F Awareness Desire Knowledge Ability ReinforcementPerson F Awareness Desire Knowledge Ability ReinforcementPerson F Awareness Desire Knowledge Ability ReinforcementPerson F Awareness Desire Knowledge Ability Reinforcement
Address the needs of each INDIVIDUAL
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Employee A D K A R Notes/actions
A 4 5 2 2 4
B 4 1 4 3 4
2 2 3 3 4
D 5 1 4 2 3
Employee A D K A R Notes/actions
A 4 5 2 2 4
B 4 1 4 3 4
C 2 2 3 3 4
5 1 4 2 3
Recommendation:Create a Change Management Profile for Each Employee
Needs knowledge
Low desire
Questionable desire
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Some Key Change Management Tools
Communications
Sponsor Roadmap
Coaching
Training
Readiness / Resistance Mgt.
These channels enableEffective change management
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Mapping the tools to the personal change elements (ADKAR)
These channels enable project
team to facilitate organization
through phases of ADKAR.
Communications
Sponsor Roadmap
Coaching
Training
Awareness
Desire
Knowledge
Ability
Reinforcement
Awareness
Desire
Knowledge
Ability
Reinforcement
Readiness / Resistance Mgt.
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Use the right tools, in right place
Communications
Sponsor Roadmap
Coaching
Training
Readiness / Resistance Mgt.
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we need the right people involved and engaged in the right ways
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Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
Change management requires a system of ‘doers’
Each ‘gear’ plays a specific role based
on how they are related to change
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Change management rolesRole Ideal implementationChange mgmt resource/team
“I develop the change management strategy and plans. I am an integral part of project success.”
Executives and senior managers
“I launch (authorize and fund) changes.”“I sponsor change.”
Middle managers and front-line supervisors
“I coach my direct reports through the changes that impact their day-to-day work.”
Project team“I manage the technical side of the change. I integrate change management into my project plans.”
Project support functions
“I support different activities of the change management team and project team.”
* Change management group, dept or office
“We own the change management methodology and support its implementation in the organization.”
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Current common reality that we need to move beyondRole Common implementationChange mgmt resource/team
“I feel like I’m on an island here – people expect me to do everything and have all the answers.”
Executives and senior managers
“I gave you funding and signed the charter – now go make it happen!”
Middle managers and front-line supervisors
“I feel like I’m the direct target for some of these changes, and I wish I knew what was going on.”
Project team “My focus is just the ‘technical’ side. Once I flip the switch, I’m moving on to the next project.”
Project support functions
“I get called in on projects and given one little task, but I’m not sure how I fit in to the overall picture.”
* Change management group, dept or office
“I don’t even exist yet.”
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Executives and senior mgrsWhat is their role
1. Participate actively and visibly throughout the project
2. Build a coalition of sponsorship and manage resistance
3. Communicate directly with employees
Not just signing checks and project charters!
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
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Middle mgrs and supervisorsWhy are they important They are close to the people who adopt the change They play a role in all types of change in the organizationThey need to be trained to be successful
Executives and senior leadersExecutives and senior leaders
Front-line employeesFront-line employees
Middle managers and supervisors
Executives and senior leadersExecutives and senior leaders
Front-line employeesFront-line employees
Middle managers and supervisors
Macro – top-down changes
Micro – daily changes
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
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Middle mgrs and supervisors What are their roles
Role 1 – Communicator Role 2 – Advocate Role 3 – Coach Role 4 – Liaison Role 5 – Resistance manager
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
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Project teamWhy are they important
Drive the technical side of change Design solutions Develop solutions Deliver solutions
Project management
Change management
Current Transition FutureCurrent Transition Future
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
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Project teamWhat is their role
1. Design the actual change 2. Manage the ‘technical side’ of the
change• Charter, business case, schedule, resources,
work breakdown structure, budget, etc.
3. Engage with CMgt team/resource 4. Integrate CMgt plans into project plan
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
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Project support functions
Examples HR OD Training Communication SMEs
Bring specific experience, knowledge, tools and expertise to the project
Sometimes act as the
change mgmt resource Key pieces of the
‘technical’ and ‘people’ puzzles
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
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Mapping change management roles
1. Authorize and fund 2. Participate actively
and visibly 3. Create coalition 4. Communicate directly
1. Design ‘the change’ 2. Manage ‘technical side’ 3. Engage with CM 4. Integrate CM
1. Communicator 2. Advocate 3. Coach 4. Liaison 5. Resistance manager
1. Experience 2. Knowledge 3. Tools 4. Expertise
1. Apply methodology 2. Formulate strategy 3. Develop plans 4. Support other ‘doers’
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
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Change management resourceWhat is their role
Enable others…
Help managers and supervisors
Effectively coach their employees through transitions
Help execs and senior leaders
Effectively fulfill the role of ‘sponsor of change’
Help project teams
Make the bridge between implementing a solution and
realizing benefits
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
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Employee-facing vs. enablingEmployee-facing roles Enabling roles
One-to-one interactionsOne-to-many interactionObservable behaviors
Creation and implementation of plans that are executed by the employee-facing roles
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
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Middle managersand supervisors
Middle managersand supervisors
Changemanagement resource/team
Changemanagement resource/team
Executives andsenior managersExecutives andsenior managers
Project team
Project team
Projectsupport
functions
Projectsupport
functions
Do you have the right people involved in the right way?
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How will you know if your change has been effective?
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“Begin with the end in mind.” -- Stephen R. Covey from “The Seven Habits of Highly Effective People”.
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… and, measure your progress accordingly …
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Two points of measurement:Organizational perspective
Outcome: Did the project deliver the
intended results? Process:
Was the project delivered on time and on budget?
Were milestones met along the way?
Current Transition FutureCurrent Transition Future
Organizational
Current Transition FutureCurrent Transition Future
Organizational
#s
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Two points of measurement:Individual perspective
Outcome: Are employees doing their
work the “new way” required by the project?
Process: How well did employees
make the transition? How well did we** support
that transition?
Current Transition FutureCurrent Transition Future
Individual
Current Transition FutureCurrent Transition Future
Individual
A D K A R
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Framework for measurement
Organizational Individual
Process
Speed of adoption Utilization rate Proficiency
Individual change management:
-Awareness-Desire
-Knowledge-Ability
-Reinforcement
Outcome Business performance against objectives
Individual performance for
each job role
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Framework for measurement
Organizational Individual
Process
Speed of adoption Utilization rate Proficiency
Measured by group, function, and or location
Individual change management:-Awareness
-Desire-Knowledge
-Ability-ReinforcementMeasure by assessment
Outcome
Business performance against objectives, such as:
Financial Performance Quality of product, service Quality of worklife Speed of implementation Etc.
Individual performance for each job role
Performance towards objectives, as defined in personal objectives
with immediate manager
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Revisited: Begin with end in mind. Measure the “right” things for this change, at the organizational level and the individual level
Change management is the process, tools and techniques to manage the people-side of change to achieve the required business outcome
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“Everyone thinks of changing the world, but no one thinks of changing himself.”
- Leo Tolstoy
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Summary
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