© Philippe Leliaert September 2004 Slide 1 Management of Change & Influencing Skills in China feat....

© Philippe Leliaert September 2004

Slide 1

co-financed byorganised by co-financed byorganised by

Management of Change & Influencing Skills

in China

feat. LingHe Simulation®

LingHe Simulation® is a registered trademark of AlphaLabs, France


Slide 2


Change Management & Influencing Skills in China09:00 – 10:00 Introduction

change dynamics & resistance to change Introduction to the LingHe Simulation®

10:00 – 12:30 the LingHe Simulation® - Change Management business game

lunch 13:30 – 14:00 Lessons learned 14:00 – 15:00 innovators & resisters: how to spot them, …

and how to influence them 15:00 – 15:45 importance of Formal vs Informal structures15:45 – 16:30use and misuse of authority and coercion16:30 – 17:00Feedback, Key lessons & Closing Remarks


Slide 3


Management of Change & Influencing Skills in China

An event organised byMaastricht School of ManagementINSEADNanjing University School of Business

… and co-financed bythe European ASIA IT&C Programme


Slide 4


The European ASIA IT&C Programme

an initiative from the European Commission designed to promote mutual benefit & understanding

between the European Union and Asia aims at improving eight key sectors through the

innovative use of information technology and communication

for non-profit making partnerships


Slide 5


Change Initiatives

Benchmarking

Business Process Re-engineering

Customer Retention

Customer Satisfaction

Surveys

Cycle TimeReduction

Core Competencies

Self-Directed Teams

Shareholder Value Analysis & EVA

TQM

1990 1992 1994 1996 1998 2000 20021988

Source: Management Tools & Techniques (Bain & Co, 1995)

EmpowermentNetwork

OrganisationseCommerceeBusiness

Knowledge Management

ERP XRP

Balanced Scorecard


Slide 6


Typical outcomes:• 50 to 70% of Re-engineering Initiatives FAIL• <20% of IT projects

completed on time and within budget; • ~30% of IT projects cancelled before completion

(Standish Group report, 1995)

• sophisticated Management Systemsare seldom used or mis-used …

• … and generate a lot of FRUSTRATION

Change Initiatives: facts & figures


Slide 7


Key Factors:• Organisational resistance

82%• Insufficient executive sponsoring/support

72%• Unrealistic expectations

65%• Inadequate programme management

54%• Unclear business case

46%• Lack of qualified resources

44%• Scope of expansion/uncertainty

44%• Ineffective leadership

43%

Change Initiatives: facts & figures


Slide 8


Dynamics of Change

Change is a Process in 4 Steps: Awareness: people become aware of the need

Interest: people show an interest – they are curious to know more about it

Trial: people want to try – to test & evaluate

Adoption: people become regular users


Slide 9


Dynamics of Change

Attitude towards Change / Resistance to Change

Attitude towards change

Early Adopters

Resisters“Outlaws”

Late Majority“10-proof people”

Early Majority“1-proof people”

5% 45% 45% 5%

Innovators“Pioneers”

positivenegative


Slide 10


Dynamics of Change

Speed of Adoption / Ease to Convince

“easy”“very hard”

“hard” “normal”

5% 45% 45% 5%

Attitude towards change

positivenegative


Slide 11


LingHe Simulation®

a Business Game… ? Management “flight simulators”

Flexible Risk-free Fun

Used at major business schools and in corporateexecutive & management development programmes



Slide 12


LingHe Simulation® - Briefing

ContextYour MissionTactics / InitiativesThe User InterfaceSupporting Materials

Turn to your PC


Slide 13


Context click on “YOUR MISSION” Why this particular context ?

privatisation of State-owned Company local management have no real motivation to change HQ have no real power base to impose change traditional top-down ‘rule by edict’ no longer works



Slide 14


The impact for LingHe Company click on “The Change Plan” What is a Performance Management System ? (PMS)



Slide 15


What is the aim of the business game ? click on “YOUR CHALLENGE”

So what do we do ? click on “HOW TO GO ABOUT IT”



Slide 16


Define your Strategy from: clear objectives

to: “how to get there” Determine which tactics will you use,

with whom, and when



Slide 17


choose among 20 different initiatives (tactics) initiatives are aimed at

gathering information taking direct action to convince one or several managers, and thus influence their willingness to adopt the proposed innovation.

immediate feedback on impact of your decision



Slide 18



Study the Tactics / Initiatives Do not take at face value (eg. “breaks”, “sandwich”)

Discuss & Agree on Strategy Determine which tactics will you use, with whom, and when You may at any time review your strategy

(take note of when & why)


Slide 19


Good luck !


Slide 20


LingHe Simulation® - Debriefing

Lessons learned: DO’s & DON’Ts Informal Influence / Use of Power Types

How to spot them How to deal with themOvercoming Resistors

Choice of Tactics


Slide 21


DO’s DON’Ts

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Slide 22


Expectations of Adoption Process

Time

Results

AB

C

or something else … ?


Slide 23


Expectations of Adoption Process

• Bandwagon effect (e.g. Jay-walkers, line cutters, stock markets)The presence of a critical mass of adopters is reason

enough for others to adopt without (much) management intervention

Hence:

• Tipping Point = point at which future adoption is

self-generating (Wow!)• “S-shaped” adoption curve


Slide 24


0

10

20

30

40

50

60

70

80

90

100

innovators early adopters

early majority

late majority

resisters

Adoption is self-generating past the Tipping Point

Tipping Point

© Brian Uzzi, Kellogg Graduate School of Management


Slide 25


How to Spot themAccumulate Knowledge (knows prices to the penny; warranty difference)Like to share knowledge all the timeHigh Awareness and Interest“experts”

What they doexperiment with risky but promising innovationsunselfish credibility is infectious to others

Influence TacticsMagazine, Email, Memo, Bulletin BoardFace-to-Face meeting ( time consuming !!)

Task Force ( risky !!)

Innovators …

0

10

20

30

40

50

60

70

80

90

100


early majority

late majority

resisters

“Experts”



Slide 26


0

10

20

30

40

50

60

70

80

90

100


early majority

late majority

resisters

How to Spot themKnow a lot of people in diverse parts of firmAre ‘Brokers’ close to key organizational playersdo many shared activitiesInterest increases with trial by ‘Experts’

What they DoStay well connected and well informedSpread ideas (contagious element that infects early majority)

Influence TacticsDinner Meetings; (Face-to-Face)Workshop, Staff Meeting, External Speaker, (Task Force)

Early Adopters …

Brokers



Slide 27


0

10

20

30

40

50

60

70

80

90

100


early majority

late majority

resisters

How to Spot themLook for percentage increasesLike predictable returnsRisk is not excitingThink ‘Experts’ waste their timePay attention to Brokers & Status

What they DoGet the bandwagon going with a critical mass of adopters

Influence TacticsTop Management meeting, Pilot testing, Staff Meeting (when enough adopters)

Directives, ‘Sandwich’, Neutralise Resisters ( risky !)

Early Majority …Bandwagon

begins



Slide 28


0

10

20

30

40

50

60

70

80

90

100


early majority

late majority

resisters

How to Spot them“if it ain’t broke, don’t fix it” mentality See change as a net gain of zeroThink ‘Experts’ waste their timeAre influenced by bandwagons, … but won’t admit it

What they Dothey want to fit in, so do what’s normativeJump on the bandwagon after a critical mass has adopted

Influence Tactics Make adoption rate salient: Broadcast, get message out, raise profile: Bulletin Board, Internal Magazine, Staff Meeting (when enough adopters)

Directives, ‘Sandwich’ ( very risky !)

Late Majority …Ride

Bandwagon



Slide 29


How to Spot themNever support an initiative but their ownAlways play “Devil’s Advocate.”

What they DoBlock change effort at every stage

Influence Tactics Trade-off and Conflict scale (see further)

Resisters …

0

10

20

30

40

50

60

70

80

90

100


early majority

late majority

resisters

Last efforts (?)



Slide 30


0

10

20

30

40

50

60

70

80

90

100


early majority

late majority

resisters

Establishing ‘Personal Profiles’

Fan WeiXia LanMao Ke

Xu XiaofenZhu Jie

Guo MingTang QuanZhang Hang

Ren AiPeng Yanyan

Ding PaiKang Guangtao

Ni Xiang

An ChengHua GangYang XuanQiu MengCai Zhen

Ou RanJia Ning

Shen NingjuanWan Dalin


Slide 31


Causes of Resistance to Change

Resistance to Change may come from those who … Feel threatened by the change

(power, prestige, opportunity, career, …) Do not understand the implications of changes Lack trust in the ‘change agents’

F-U-D Other: plain laziness or obstinacy


Slide 32


Causes of Resistance to Change

Resistance to Change may come from those who … Have a good reason to resist


Slide 33


Use of Authority… • How did you react to:

The LingHe Simulation®


Slide 34



Use of ‘Risky’ Tactics - neutralise resisters

- directive- ‘sandwich’

Pro

Con


Slide 35


Tactics: Demonstrate: Show how your idea may help (Workshop, Pilot) Sell: Sell your ideas, use rewards (Face to Face, Staff Meeting) Train: Help people to adapt (Management Training) Negotiate: make trade-offs (Face to Face, Top Mgt Meeting, Staff Meeting) Co-opt: Use buy-in to align moderate opponents interests with yours

(Staff Meeting, Workshop, Dinner Meeting, Face to Face, Task Force) Network: Use third parties to sell, induce tipping points, and neutralize opposition

(Social Networks, Process Mapping, Short Breaks; Dinner Event) Build Coalition: Build political support (Top Mgt Meeting, Pilot, Dinner Event) Authority: Force compliance through punishments (Directive)

Demonstrate

Sell Negotiate Co-opt

Build CoalitionsTrain

Authority

CONFLICT POTENTIALCONFLICT POTENTIAL

Networks

based on © Brian Uzzi, Kellogg Graduate School of Management


Slide 36


Change Management: using the ‘S’-curve

• Route of least resistance• Concentrate & Strategise

from the “waist down”– Focus resources on starting the process up to the

point where it is self-generating (i.e. Tipping Point)– Identify the Innovators & Early Adopters


Slide 37


Change Management: using the ‘S’-curve

Neutralise

INNOVATORSEARLY ADOPTERS

INNOVATORSEARLY ADOPTERS

RESISTORSRESISTORS

high

Resistance to

Change

low early lateTiming of decision

Leverage Innovators to mobilise likely

supporters

EARLY MAJORITYEARLY MAJORITY

LATE MAJORITYLATE MAJORITY

based on © Brian Uzzi, Kellogg Graduate School of Management

Enlist champion

s

•Bandwagon Effect•Tipping Point


Slide 38


Who are Key Influencers ? Are they Innovators or Resisters ?

Both have a lot of support – even if not explicit Resisters often voice the concerns of the

Late Majority (ref. Maggie Thatcher)

Where are they on the track to adoption ? How to deal with laggards ?

Change Management:Formal vs Informal Structure


Slide 39


Change Management:using the ‘Influencers’

Use of Power / Informal Influence

lowhigh

Resistance to

Change

low

Power-RESISTORS

Power-RESISTORS

LATE MAJORITYLATE MAJORITY

Power-INNOVATORS

Power-INNOVATORS

EARLY MAJORITYEARLY MAJORITY

Enlist champion

s

Leverage Innovators & Brokers to mobilise likely

supporters

Bandwagon Effect

Engage

BROKERSBROKERS

Implicate


Slide 40



Main Pitfalls Underestimation of Informal Structure

key personnel, champions, gatekeepers, … Informal networks & power

Ignoring ‘resisters’ …(esp. Wan Dalin, Xia Ning)

… has an effect on others… makes it difficult to impossible to win them over

Over-estimation of Authority


Slide 41


Change is a Process : People progress at Different Speeds It is not a one-way Evolution:

People may lose interest Create & Maintain Momentum (waves)

Evoking Change vs Enforcing Change

Key Lessons

(the Human Factor)


Slide 42


Change is a Process : Match Tactics to

Profiles (e.g. Innovator vs Late Majority), Strategies (e.g. networking), and Timing (when in 4 phases of adoption)

Make use of the Bandwagon Effect

Key Lessons


Slide 43


Appropriate Timing for Tactics:

The point at which tactics are likely to be more effective …


BREAKS

PERSONAL PROFILE

PROCESS MAPPING

SOCIAL NETWORKS

FACE-TO-FACE MEETING

ELECTRONIC MAIL

MEMORANDUM

SEEK ADVICE

BULLETIN BOARD

INTERNAL MAGAZINE

MANAGEMENT TRAINING

TOP MANAGEMENT MEETING

EXTERNAL CONSULTANT

STAFF MEETING DISCUSSION

WORKSHOP

EXPERT TEAM

PILOT TEST

'SANDWICH'

NEUTRALISE RESISTERS

DIRECTIVE


Slide 44


LingHe Simulation®

East vs West: lessons for Chinese managers

overestimation of Emotional Intelligence Too much time spent on developing relations

ignoring lower management levels… may underestimate their (informal) influence

… may overestimate one’s authority

risk avoidance when faced with uncertainty… yet risk is inherent / unavoidable !



Slide 45


LingHe Simulation®

East vs West : lessons for Western managers double "tipping point"

Lower management will not commit before top management

Top management will not commit unless certain of outcome

need to communicate at all levels… time consuming… use range of communication channels

reduce uncertainty & highlight benefits



Slide 46


"It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to

change"

(Charles Darwin)


Slide 47


Thank you for your participation

Please fill in the Feedback Questionnaire


Slide 48


Contact information:

prof. Albert A Angehrn the Alcatel Chaired Professor of the Net Economy and E-

Management, Professor of Information Technology and Entrepreneurship

Director, Centre for Advanced Learning Technologies (INSEAD) [email protected]

ir. Philippe Leliaert MBA MScvisiting lecturer MsM & NJU

project [email protected]

© Philippe Leliaert September 2004 Slide 1 Management of Change & Influencing Skills in China feat....

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Transcript of © Philippe Leliaert September 2004 Slide 1 Management of Change & Influencing Skills in China feat....