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€APTURING ABy Sco?t Whelehqn

What is chonge rncn-ogernenf, exoctly? WhoIeods the lield & whqldoes a leading practiceIook like? In the first ofo 2-port series, CN-od-dresses fhe first gues-fion. ilexf month, weprotile s selection o!Ieoding /irms in fhetield

Chonge monogemenl, con!... 2-3

Here & There ...................... 4-5

Morkeling ideos ..................... 6

On morketing & delivery .........7

Feedbock ....,,...8

U7. KEH}'EDYftN puslrcArrols

IttOVl NG IARGET: GHAHGE fiANAGEII,IENT"Chqnge monogement" is everywhere, qnd finding its woy into ogrowing number of consulting engogements of qll kinds. Ii's receivedporticulor ottention qS.the key "soft-side" of business process reengi-neering - or whot's been missing in foiled BPR work, Cleorly, os mqnyservices become commoditized, including technicol qspects ol BPR,

mostery ol humon ond orgqnizotionol dynomics of chonge will provecriticoi to monogement consulting's future

More thqn semonticsToken literolly, "chonge monogement" oppeors to deline consulting,Symmetrix chqirmon George Bennett is not olone in describing oll olhis firm's work qs chonge monogement. But let's be more specific: it's qholistic opproqch to implementing lorge-scole chonge thot integroteson orgqnizotion's strotegy ond processes with its people ond culture

How this tokes shope in on engqgement hos qs mony voriqtions osthere ore consuliing lirms. Deltq Consulting Group's Dovid Nodler ob-serves thqt "most compqnies hove developed chqnge mqnogement qs

on implementqtion qrm of their core content proctice," ond it lollowsthqt chqnge mqnqgement qt o strotegy firm meons something verydilferent from chonge mqnogement of o systems firm

The chonge mqnqgement process con.begin os broodly qs strotegicvisioning ond communicqtion. It might qddress resisionce points, bothculturql ond individuql, explore methods to generote commiiment ondelicit desired behqviors, qnd qlign plonned chqnge to theorgonizotion's structure ond HR systems such os opproisol ond rewqrd.Bennett feels chqnge mqnogement "hqs lots to do with mqnqging thepsychology of qn orgonizotion,'qnd hence the term's qssociqiion withbehqviorol sciences. Mercer Monogement Consulting's Borry Spikernotes thot "whqt is colloquiolly known qs chonge mqnqgement hos itsroots in OD (Orgqnizc.tion Development) ond sociotechnicol sysiems,'wNch suggests equci qtiention to both sociql ond technicql elementsof on orgonizqtion

The morket cqllsWhy the mounting demond for chonge mqnogement consulting? Withchqnge qs q constqnt todoy, shell-shocked employees hqve under-stondobly lost their qppetite lor monogement initiqtives. Though tNsmokes implementotion of the next chonge - or the -cleonup'of on oldone - more chollenging, mony CEOs qre whqt Doryl Conner of ODRcqlls -scqrred ond scqred' themselves from fqiled chonge, ond thusreody to listen to orgonizqtionql qnd behoviorol issues neglected in thepost. Adds OD pioneer Wqrner Burke: "Clients now use the term culturebefore I do"

Conlinued on poge 2

r' FEBRUARY I995tZ- CONSULTANTS NEWS

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}IOW CONSI'LTANTS ARE ADDRESSING GHANGE iTAHAGEftIEF{TContinued from poge I Consultonts onswer

in on effort io sell qnd deliver more losting, systemic chonge, consult-ing firms qre responding with chonge mqnogement services thotNqdler suggests cqn be dilferentiqted olong 4 dimensions:

' Content ol the chonge (lT, strqiegy, etc)

' Client level within orgonizotionr Mognitude of chonge (incrementol vs. discontinuous)

r Stqffing model (i.e., will front-line chonge ogents be from consultingor client firm?)

in delivering chonge monogement services, consulting films hove or-gonized themselves in two bosic wqys:. Estsblishment of o distinct functionol proctice or skill group

Development ol o smoll core ol "thought leodership" used to build Cchonge mqnqgement skills qmong multidisciplined consultonts

In qddition, we find q number of niche ployers - either smoller firmsor very smqll proctices within lorge firms

It's importont to note thot the internol orgonizqtionol model does notnecessorily represent how the firm goes to mqrket, ond moy even beinvisible to clients. (Next month, CN profiles q selected group of leod-ing chonge mqnogement consultoncies in eqch of these cotegories)

Chollenges to growthPotentiol for growth in chonge monogement is cleqr ond significont,but the ideol monner in which to opprooch the mqrket is not obvious.The Deltq model of PhDs-turned-sirqtegists indicqtes q morkedly differ-ent skill set thqn thqt of the typicol MBA (ond, subsequently, the typi-col mqncgement consultqnt), Most leoding B-schools now stress "OB"

courses ond reloted skills, but the overoge MBA still feels rnore com-fortoble in q closs on corporqte finonce thqn in one on corporqte cul-ture

This stqffing dilemmo is compounded by the foct thqt systemic chongeneeds to stqrt qt the top, ond credibility with CEOs, occording io Ernst& Young's Gory Von Glinow, 'requires some groy hoirs'

The need for experienced consultqnts with this unique skill set shouldcontinue to keep seorch lirms busy, ond niche ployers populor ocquisi- tJ'tion torgets

For more on chcngemqnogement, see CNSpeciol Report / Apr'9 3:'HR Aspects Criticql toSuccess in BusinessReengineering,' byDcrvid Clinkenbeqrd

1995 -iaN EWS \)

. . . AND HOW THEY I'IUS? CHAilOE TO ADAPT TO ITS FUTURE

The future of chongeAndersen's Terry Neill notes thqt "there is o lorge body of knowledgeobout humqn beings qnd their behqvior, but it hos tended to be in theheods ond the librories of onthropologists, sociblogists qnd psycholo-gists." Consultonts hqve now trqnsloted this knowledge into the imple-mentotion of orgonizotionol chonge, but so for hqve been generollylimited to single engogements

The future moy lie in multiple engqgements ihot expond the scole oichonge mqnogement. Rqndy Mortin of KPMG Peqt Morwick cites oneclient currently undelgoing 35 chonge initioiives speorheoded by mul-tiple consulting firms. True systemic chonge would require some or-chestrotion of these efforts, ond Peot Morwick, Ernst & Young qnd oth-ers ospire to provide this by octing os o client's'portfolio monoger" ofchonge

The increqsed poce ond lrequency of chonge is keeping consultontsbusy, bui mony engsgements remqin reoctive in noiure. In fqct, MoryRobout of EDS feels thot the term chonge mqnqgement corries reoctiveconnototions ond prefers insteqd the notion of 'chonge creqtion." Theinherent odvontoge of a compqny thot could onticipote chonge ondodopt in q reol-time foshion hqs inspired firms such qs CSC Index toexplore o service thqt would creqte client c<imponies thqt were per-petuolly qmenqble to chongb -= in essence, qllow Kurt Lewin's're-freeze'to creote o kinetic, or qmoebic stqte

The next buzzword?Individuql ond orgonizotionol issues qssocioted with chonge mqnqge-ment qre - in themselves - nothing new, but iheir growth in impor-tonce to manogement consulting is noteworthy

Nodler cqlls the trend 'heolthy for our economy'qnd believes thqtmore effective orgonizotions hqve been the direct result, It's qlso truethot while the octuql work of reengineering is.here to stoy, thebuzzword moy be neoring the peok of its product lifecycle. As the twoterms do shqre underpinnings of lorge-scole system chonge, perhops'chonge mqnqgement'is the heir oppqrent

Mercer's Borry Spiker estimotes thqt chqnge monogement olreody oc-counts for up to 30o/o of the reengineering morket (qnd growing), ondthe news for consultonts is good: 'There's so much'chonge'in the mor-ketploce, thqt there's room for everyone'

Aboui the quthor: Scott Whelehon is c groduote studeniot Columbiq University ondthis spring will receive both qn MBA qnd o Mqster's in Orgonizotionol Psychology. Heis erploring q cqreer in chonge mqnqgement. For more informqtion on his reseqrchfor this report, Scott con be reoched at212-724-6079

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Attention to cu]ture ondthe power oI humsnresistqnce cqn mean sIIthe ditference in creat-ing susfoin oble chonge.Lock o! o symbol for"chonge" in Chineser'Ilusfrirfes on importanlporodox in DarylConner's book, Monog-ing ot the Speed olChonge. Coming closeslconceplually to chongeis fhe nofjon of "crisis,'represenled by the coa-.binofion of two sym-bols: "dongef (dbove)snd'hidden opporlu-nity'(below)

Watch nexl rnonfb forPgrrt Il in fhis series

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Last month CN exqrn-ined fhe booming mar-ket tor Change Manage-ment services. In thenexl 3 issues, we'.lipresenl a serles ol pro-tiles ol leading playersdnd how they're orgq-nlzed

Says an Andersen com-pelitor: "They preltyrnuch own the muketIn many, mo,ny wdys -they really own it."Other tlrms mlght arguefhal fhis ls comparingtheir apples to.AndersenS entfue lruitbasket

LEADIHG PI.AYERS IN CHANGE II,IANAGEII,IENTb,y Scott Whelehon signed to qddress this need, but Neill

concedes thot boloncing strength ofscole qnd flexibility is "whot mqnqg-ing portners in this orgonizotion getpoid lor'Ernst & YoungE&Y recently combined Orgonizo-tionol Chonge Monogement qndOrgonizotionol Alignment groups toform Business Chonge Imp)ementc-tion group of 70 core "speciolists- inU.S. & supporting cost ol up to 500consultonts. Orgcnizotioncl Align-ment brings competencies in chonge'enoblers' such os performonce mon-cgement & reword. E&Y's Center forBuSiness Innovotion in Boston doesreseorch oround issues such oschange monqgement, ond though itdoesn't coll itsell 'think tqnk,' it's qnintellectuol tesource ior E&Y's consult-qnts & clients

€oopers & LybrondCoopers hos Chonge MonogementServices proctice of ol-'out 35 procti-tioners bosed in Woshington DC ondcurrently present of 30-40% of en-gogements

In addition, in'93, Coopers purchosedBoston-bqsed Horbrid.qe House (65pros, including 50 doitrg chongework), now port oI C&L's Humon Re-source Advisory grot- p. HorbridgeHouse - with reputqtjcn lor imple-mentotion, troining qnd executivedevelopment - hqd in post offeredchonge mcnqgement qs q distinctservice, but Monaging Principsl ErnieGlickmon now lqbels it'the umbrellothot links everything we do,'Since HR

Advisory proctice is seporote fromC&L Consulting, discussions ore ongo-ing to build synergies ond ovoid over-lop with C&L Consulting's chongeproctice

We Iind 2 bosic models for chongemonogement proctices omong lorgeconsulting firms: firms with distinctfunctionql proctices or skill groups,and firms with o smoll core ol"thought leodership' used to buildchonge skills qmong multidisciplinedconsultonts. In oddition, we lindmony niche ployers - smqller iirmsor smoll proctices within lorge firms(Note: Internol structure does notnecessorily represent how lirms go tomorket, ond moy even be invisibleto clients)

This month, we describe lirms in thelirst_cotegory: lorge-lirm procticeswith'ilistinCt tijncti6noi groripi:'(we'ltlook of the two other cotegories inApril & Moy)

Andersen ConsultingWith neqrly 2,000 chonge mqnoge-ment consultqnts worldwide, onnuqlgrowth of 3O%-plus.:ond presence qt30-40% of firm's mojor engagements,Andersen's chonge monogementproctice is mqrket's 8OO-pound go-rillo (one exomple: Current $60M jobcontoins 25% chonge moncgement).Andersen's Chonge MonogementServices (CMS) - unlike most com-petitor groups - hos historicollybeen qssocioted with lorge numbersol junior consultqnts engaged in sys-tems troining. But Andersen is olsobuilding competencies to monogebroqder orgonizotionql issues of se-nior executive level, To reflect thisdirection,'Services' designotion hosbeen dropped from group's nqme

World prcctice leqder Terry Neilllikens morket potentiol of chongemqncgement to thot of systems in'70s, qnd feels thqt despite goodideqs, mqnqgers qre olten over-whelmed by scole of chcnge.

.Andersen's stoffing model is de-

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MARCH r995 Etbil'sir rr'nNr's'r.ie'ws J

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Price WoterhouseAccording to PW, 'chonge moncge-ment' describes its entire Chcnge In-tegrotion (Ci) prcctice. which qlso hoso speciiic organizotion chonge & eI-fectiveness component to accompqnystrotegy ond process redesign. ColinPrice hos grown U.S. orgonizotionchonge group to 84 consultonts (therecre severol hundred worldwide) sinceorrivol from PW's London proctice oyeqr ogo. Within CI, orgonizctionchongei grg.qp gqqresses orgonizotionaesigri,'cr.4ljriie'chong'e & technologyossimilotionl'CI Drqctice ond method-orogifjd:;11iti"o itt book entitled Bet-ter Cbonge.;:.gppqgrs well-rggorded

"'o"11:+9,Y:tryColin_Bric-e'ligirols PW's oggressivestqnce _Dy scying morket lor orgcnizc-tion chqnqe :is there to be token'

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KPMG Pdd't Morwicktnough'bhtinge monogement is nowdesigmoted. a'core skill set'Ior qllKPMG consultonts, qctuol chongework is done by U.S. teqm of qbout 15

with behqviorql bockgrounds (thereore 100 worldwide), Group hqs devel-oped globolly consistent fromeworkthqt focuses on people snd orgcnizo-tion bsrriers, Soys prcctice mqncgerRondy Mqrtin, KPMG seeks'to moin-toin o core of highly speciolized,highly volue-qdded people' qimed otentering client orgonizotion of highestlevel

CSC lndexBorn cs bridge between humqns &mochines, CSC Index has olwoys od-dressed humon dimension, but not qs

seporote service. Index reengineeringteoms lreguently contqin chongemqnqgement'speciolist,' qnd skill setis one of 4 oround which consultqntsore grouped (others ore strotegy,technology, operations). Index envi-

sions cutting-edge chonge monoge-ment service os one thot creotesodoptobility rother thon odoptoiion

-'not shilting geors, but putting in otronsmission,' exploins CSC's AlonCohen. CSC recently ocquiredDiBionco-Berkman (20-30 consuit-qnts) to explore deePer issues olchonge leodership & trqnsformotion

Gemini ConsultingGemini describes chonge monoge-ment os so pervosive in its culturethqt relevqnt concepts ore'embed-ded'in every engogement. EllenHqrt qlso heods up distinct discipline

- Orgonization ond MonogementDevelopment (OMD) - chorged with'keeping on eye on the horizon' olthis evolving field ond diggingdeeper into behoviorol issues

EDSHeoded by recent Gemini olum MorYRqbout, EDS Monogement ConsultingServices (MCS) hos built chongeproctice of obout 40 core proctitio-ners. In oddition, relevont supportIrom elsewhere in EDS is ovoilqble inIorm of systems troiners, etc., thoughMCS mointoins its own P&L

SymmetrixGeor(re Bennett believes thot osmucir ss 50% ol effort monoging onengogement should be in moPPingclient's psychologicol londscoPe,likening plcnning process to militorystrotegy. Phqses of Symmetrix en-gogement - qim, discover, dePloY

- ore'encqsed in this psychologicolplon.' Firm's 130 consultonts qreevenly grouped into four skill boses:strotegy, operotions, systems ondorganizotionql effectiveness, Lqtterboosts OD qnd humon resource-reloted copcbilities, qnd oll 4 qrerepresented on engogement teqm

About the quthor: ScottWhelehan is o graduatestudent qt Columbiq Uni-versity ond this spring wilireceive both on MBA qndc Mqster's in Orgcnizo-tionol Psychology. He isexploring q coreer inchonge monogement. For

more informqtion on hisreseqrch for this report,Scott cqn be reoched ot2t2-724-607 9