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: rp000073@a1.com.au

Skype: bill.synnot

Web: www.billsynnotandassociates.com.au