Dennis Hightower CaseThe Situation

• Disney Europe was successful but corporate HQ thought they could be more successful

• Euro community changing

• Dennis Hightower selected – Hightower’s background

• Military (Europe)• Consulting

The Situation (contd.)

• Disney wants to increase profitability of their European operation– Move to consolidate/unify country

operations– Problem is to grow an already profitable

business

Burbank’s Perspective

• Europe a “golden opportunity”

• Good past performance but EEC opens new opportunities

• European theme park will open doors for consumer items

• Decision to create Paris HQ and hire a European head

Country Manager’s Perspective

• Proud of past success• New level of control unknown before• Possible perception of a “condemnation of

previous performance”• Feeling “sandbagged” having opened up to

Hightower when he interviewed them• Ostensible approval of Hightower’s selection

by three

Hightower’s Perspective

• “I’m the boss they don’t want”

• Burbank wants me but has high expectations

• Somewhat embarrassed by having interviewed as a consultant & now coming as boss

• “I’m stuck in the middle”

Potential Barriers to Change

• Stereotypes of Americans vs Europeans

• Cultural differences

• National differences

• Personal status issues – Tenure– Relationship with the Disney family

Hightower’s Task

• Produce a strategic plan in 90 days

• To do that he must:– Learn the territory– Obtain “buy-in” from the country

managers– Develop and write the plan

• While overcoming the barriers

Three Approaches

• Just do it

• Collective approach with the CMs

• Individual approach with the CMs

• Combination

Just Do It

• Easiest and fastest

• But least likely to produce “buy-in” and cooperation in implementation

• And he’s got a lot to learn about the territory

Collective Approach

• Convene a meeting with all the CMs

• Pros– Set tone & agenda at once with no rumors– All on “same page” & “one for all/all for

one

• Cons– Might become an “Us vs Him” situation– He lacks knowledge and is an outsider

Individual Approach

• Meet with each CM individually• Pros

– Can question and learn– Can “pollinate” with his ideas– Forge personal connections

• Cons– Time-consuming & keeps him away from HQ– Raises the issue of who/where to start

Combination

• Question of time

• Could dilute the positives of either approach

The Older CMs - Keep?

• Temptation to eliminate the barriers & get young blood– A new broom sweeps clean

• Situational approach called for– Never throw the baby out with the bath

What he did

• Non-stop tour of the territory spending 4/5 days with each CM by seniority– Learned the territory/built personal

credibility

• Developed his strategy – Including at least one or two of their ideas

• Then held general meeting presenting their “jointly developed” strategy – Each CM saw himself as a Change Agent

The Country Managers

• Over the next year– replaced four CMs based on adaptability– 3 of the over 60 crowd remained – French Mgr delicately “elevated” to senior

consultant role

• In his first year, consumer products doubled bottom line

Lessons

• Perspectives - we all see through different eyes

• Constant need to balance perspectives– Consider the feelings of all

• One way to overcome resistance is to co-opt it– Make resisters into change agents

Roles in Change

• Jick - four roles to perform change– Sponsor - suggesting or demanding the

change– Agent - the person actually ordering

change & making it happen– Target - recipient of the change– Advocate - cheerleaders/promoters

Roles in Change

• Dalziel & Schoonover– Inventor - big picture modeler– Entrepreneur - identifies new possibilities– Integrator - forges alliances to gain

acceptance– Expert - provides technical knowledge &

skill– Manager - delegates and runs others – Sponsor - ensures support and resources

The Sponsor’s Role

• Too often adopt the “spinning top” approach

• Effective sponsors remain involved– They initiate– They follow– They reinforce– Until agents become sponsors – And even the targets become sponsors

The Change Agent

• Ideally becomes a sponsor

• Establishes close relationship with targets– dilemma of change that really hurts people

• Must be a Trainer/Teacher

• Great human sensitivity called for

History of Change Agent Concept

• Term first referred to external help– The “hired gun”

• Has evolved to an internal function– Either integral to normal responsibilities– Or as a “project”– Change teams or change agent positions

Pros & Cons

• Pros – Internal agents know the territory & culture– Communication is usually easier/better– Trust is usually there

• Cons– May be difficult to take the hard decisions– Time limits when you have a “regular job” too– “Prophet without honor” syndrome

Cascading Change - the Ideal

• Begins with sponsor’s convincing & attractive vision which includes appropriate sense of urgency

• Results in buy-in at all levels – The good and the bad are shared

• Everyone sees themselves as change agents

Northwest Airlines Case

• Situation– Volatile environment of airline industry– Intense competition at multiple levels– Regulation/deregulation issues– Hugh capital investments and tight

margins

• Rothmeir takes over in ‘85 with Northwest is poor shape.

Rothmeir’s Vision?

• Better performance through– Better customer service– Increased efficiency & economic operation– Employee participation

Dr. Ken Myers’ Role

• Double team/ good cop-bad cop approach– Rothmeir to be Mr. Outside– Myers Mr. Inside

• Is this approach likely to be effective?

Pros and Cons

• Pros– One makes the hard decisions– The other provides the soft shoulder

• Cons– Mixing “oil and water”?– Trust?

Environmental Changes

• Acquisition of Republic– Impact?

• The Crash at Detroit– Impact?

• Bidding war over takeover by Al Checchi

Lessons

• Even change agents susceptible to change– Need to “bend their knees”

• Pros and cons of internal vs external change agents

• It takes more than one or two agents to effect change

Microswitch Case

• The situation– Microswitch attempting change to better

quality and customer satisfaction– Three middle managers singled out as

change agents – Transitional pace

Problems of Transitional Change

• Measured pace easier to cope with

• No sense of urgency can be deleterious

The Cast

• Alvarez - new GM – Playing the “sponsor” role

• Rick Rowe - former renegade/bad cowboy

• Ellis Stewart - consummate trainer & optimist

• Deb Massof - “outsider” from Honeywell, skeptical but enthusiastic

Mid-Term Report Card?

• What’s been achieved so far?

• Is this adequate?

• Has something gone wrong?

• How do the change agents feel?

• Threats to the change effort at this point?

Change Agent’s Frustration

• A sign of failure?

• A normal part of being in the middle– Burnout and self-doubt possible– Constant questions of support &

empowerment– Can appear an endless process when

you’re in the middle• Article on “Converting Middle Powerlessness”

Empowerment vs Control

• Alvarez ultimately responsible to the corp.

• But can’t get the job done without giving up some control to others

• Delicate balancing act– Finding those you can trust– Giving them the power they need– Using the vision as control

Lessons

• The problem of being in the “middle”

• Need for delicately balanced empowerment

• Relationship between sponsors and agents

• The ups and downs of all change efforts