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Managing Change

April 13, 2000


Peter Levin, MBA, Ph.D.
RHR International Company
949-364-8909

CSULA

Its not so much that were afraid of change,
or so in love with the old ways, but its the
place in between that we fear its like being
between trapezes. Its Linus when his blanket
is in the dryer. Theres nothing to hold on to.

- M. Ferguson
Class agenda
Part I: Organizational Issues and change
Part II: The nature of change.
Part III: Leading others through change.

Characteristics of The Adaptive Organization
The Prerequisites for Change
Characteristics of Effective Change Sponsors
What Effective Change Leaders Need to Do
The Internal Players in the Change Process and
their Roles
The Role of Outside Consultants
Part I : Organizational I ssues
The Adaptive Organization
Willingness to make change
Identifies problems quickly
Internal and external looking
Implements solutions
rapidly
Focus on innovation
Upward communication
Trust
Risk taking is rewarded
Candidness
Open to feedback
Enthusiasm
Long-term focus
Skill Development
Learning Organization
Prerequisites for Change
Vision: Develop, articulate and communicate a shared
vision of the desired change
Need: A compelling need has been developed and is
shared
Means: The practical means to achieve vision: planned,
developed and implemented
Rewards: Aligned to encourage appropriate behavior
compatible with vision and change
Feedback: Given Frequently

An Effective Change Sponsor Must Have
Power: to legitimize change
Pain: Personal Stake
Vision: Total in-depth view
Public/Private Role: Commitment and ability to support
change publicly/ meet privately with agents
Performance Management: Ability to reward/confront
Sacrifice: Pursue change despite personal price
What Effective Change Leaders Do
Embrace change when its needed
Develop a vision for change
Communicate effectively
Shake things up by challenging status quo and encouraging others to do
the same
Stay Actively Involved by walking the walk and being visible about it.
Direct, Review Implementation of change - continued participation -
never done attitude. Be in position to notice and coach.
Roles: The Change Players
Sponsors: Senior management leaders - the driving force
of change - must walk the walk.
Advocates: Allies of leaders, deploy the vision -
communicate - involve - sell - MOTIVATE
Agents: Influence sponsors commitment, target
resistance, measure readiness, assess existing
people/structures
Targets: Everyone in organization - develop, train,
reinforce, support

Role of Consultants
Assessment of: management, key players, barriers, opportunities
Coach/Develop/Train: help people adopt new behavior
Plan: Assist in process/knowledge
Values / Vision: Facilitate their development
Redesign Organizational Factors: Rewards, Reports, Re-engineer
Communications: Facilitate the process
Project Management Assistance
Introduction
Change in business is not new its just accelerating due
to
New technology.
Global competition.
Growth & increased complexity.
The result: Change or die

Part I I : The Nature of Change
What to expect from change
Sense of loss, confusion.
Mistrust and a me focus.
Fear of letting go of that which led to success in the past.
People hold onto & value the past.
High uncertainty, low stability, high emotional stress
Perceived high levels of inconsistency.
High energy often undirected.
Control becomes a major issue.
Conflict increases especially between groups.
Individual prerequisites for change to occur
Thinking &
understanding
Emotional/
Motivational
Behavioral
Head
Heart
Hands
Why should I change?
Whats in it for me?
What do I do differently?
Change management
Effective Change
Equals
Altering
Mind-set
Harnessing
Motivation
Shaping
Behavior
The Effective Management of Change Involves An
Integrated Approach In Each Of These Three Arenas
Stages of change management
Coming to Grips with the Problem
Working through the Change
Attaining and Sustaining Improvement
Strategy/change implementation
Coming to
Grips with
the Problem
1.
Arenas of
Change
Stages
of Change
Management
2. Working
through the
Change
3. Attaining and
Sustaining
Improvement
Changing
Behavior and
Developing
Competency
and Capability
Behavior
(Capability)
Mind-set
(Thinking/
Understanding)
Breaking the
Conventional
Mind-set and
Generating a
Picture of the
Future
Dealing with
Reactions to
Loss and
Creating the
Will to
Succeed
Motivation
(Emotional/
Intuitive Dynamics)
1. Identify (roughly) the stage person/group is in.
2. Determine obstacles/arenas:
a. Head
b. Heart
c. Hands
d. All of the above
3. Use tools to move through obstacles.
May need several simultaneously.
4. Recognize and acknowledge steps forward.
5. Cycle back to Step 1.


Part I I I : Leading Others
through Change
Understanding what stage of change theyre in
Questions Stage
Do they see a need for change?
How uncomfortable are they with the status quo?
Do they have any sense of urgency about changing?

Are they struggling with making the change work?
Are they looking for ways to make it work?

Are they communicating with others involved in the
change, to get salutations to problems, share Best
Practices, etc.
Are they looking for ways to leverage the change?
To enhance it?
One:
Coming to grips with the
problem.

Two:
Working through the
change.

Three:
Attaining & sustaining
improvement.
The technology of leading sustainable change
Mind-set
(Thinking/
Understanding)
Stage One:
Arenas of
Change
Stages
of Change
Management
Motivation
(Emotional/
Intuitive Dynamics)
Behavior
(Capability)
Gather data to convince
you/others that old way
no longer works.

Confront myths,
assumptions, & beliefs
that prevent seeing
problem & changing.
Increase dissatisfaction
with old ways.

Increase confidence that
change is achievable.

Outline costs of old way
& benefits of new way.

Form team to gather
data.

Have management talk
about data & need for
change.

Assess individual
readiness to change.

Identify specific
behaviors to change.
Coming to
Grips with
the Problem
The technology of leading sustainable change
Mind-set
(Thinking/
Understanding)
Stage Two:
Arenas of
Change
Stages
of Change
Management
Motivation
(Emotional/
Intuitive Dynamics)
Behavior
(Capability)
Working
through the
Change
Create a vision of the
future & articulate the
new mind-set.
Help people understand
both the big picture &
the details.
Communicate the
purpose & benefits
broadly.
Help people make the
link between solving
todays issues & the new
plan.
Hold reality check
meetings to work
through the threats,
losses, and resistance.
Work through the
leaders emotion/
resistance first.
Use individual gain/loss
analysis as as tool.
Discuss how to manage
stress. Be supportive of
one another.
Develop a new profile
of leadership success.
Evaluate the top levels
of management in
stores.
Involve employees in
building change plans.
Reward successes;
expect & learn from
mistakes.
Drive individual
behavior
change.


The technology of leading sustainable change
Mind-set
(Thinking/
Understanding)
Arenas of
Change
Stages
of Change
Management
Motivation
(Emotional/
Intuitive Dynamics)
Behavior
(Capability)
Attaining &
Sustaining
I mprovement
Continually update
vision of desired future
& teamwork.
Create forum for
feedback & continuous
learning.
Continue to articulate
whys & benefits.
Celebrate & reward
successes.
Deal with people who
will not change.
Establish two-way
communication.
Involve people for buy-
in.
Continue to support
each other in managing
stress & change.
Make sure systems &
rewards reinforce
desired behaviors.
Train incoming people
in the new behaviors.
Coach, give feedback,
& reinforce new
behavior.
Deal with people who
cannot change.

Stage Three:
Addressing mind-set
Learn it thoroughly yourself.
Build relationships.
Explain the purpose of change. Help them understand &
teach concept.
Articulate the benefits.
Link daily activities to their higher purpose & benefits.
Repetition: Provide frequent & consistent communication
about change & whats needed.
Paint a picture of the successful future using best
practices.

Working with Mind-Set
Addressing behaviors
Model desired behaviors & attitudes.
Clearly define desired behaviors & behaviors that need to
change.
Give feedback frequently to reinforce changed behavior &
correct wrong behavior.
Coach & teach desired behavior.

Working with Behaviors
Addressing behaviors
Identify training needs & communicate upwards.
Create goals to work toward: a vision of success.
Help people create specific, concrete behavior-change
plans as needed.
Communicate in multiple forms.

Working with Behaviors
Summary
You have to be comfortable with the change before you
can get others to change.
People cant (or dont want to) change when they dont
understand.
What, why, how, WIIFM.
You cant intervene until you understand the situation.
Resistance is part of the change process.
Work with it.
Address change at all three levels to be successful.
Sustainable change occurs in steps.
Define your priorities. Dont take on too much at once.


A stepped approach to change
Start
X
A journey of a thousand miles
occurs one step at a time.
Success