Managing change and transitions

Managing Change and

Transition

Rey Lugtu

www.reylugtu.com

What we will cover

Understand forces of change

Preparing for change

Managing the change process and

transitions

Building change management skills

Changing organizational culture

Case Study: Philippine Telecom Industry, 1997-2003

Growth industry due to deregulation, 5% mobile penetration in 1998

High bargaining power of buyers/customer

Low to moderate bargaining power of suppliers

http://www.suncellular.com.ph/index2.html

http://www.nokia.com/index

• Global market leader

• Market leader in Philippines in 90’s

(analog technology)

• Relatively new global player in telecom

• Entered Philippines in mid 90’s

with GSM in Globe

Strategy: Project-focused strategy

PLDT Account

Globe Account

Smart Account

Services Manager

TechnicalManager

Support Functions

Country Manager

Productivity and efficiency

What do you do if you were Nokia?


• Relatively new global player in telecom

(a rubber boots manufacturer)

• Entered Philippines in mid 90’s

with GSM in Globe

• 10% share in network equipment in 1995Our Vision

• A world where everyone can be connected.

• In 2015, 5 billion people always connected, and 100 fold more network traffic.

• It’s a world of experiences, shared experiences.

Our Promise

• We help customers feel close to what matters to them.

• One of our basic needs as human beings is the need to communicate and share.

• Our promise is to help fulfill this need, to help them feel close to what matters to them.

Objective in Philippines•To gain market leadership in network equipment by 2003


Our Promise

• We help customers feel close to what matters to them.

• One of our basic needs as human beings is the need to

communicate and share.

• Our promise is to help fulfill this need, to help them feel

close to what matters to them.

Objective in Philippines

•To gain market leadership in network equipment

Strategy: Project-focused strategy

PLDT Account

Globe Account

Smart Account

Services Manager

TechnicalManager

Support Functions

Country Manager

Productivity and efficiency

What do you do if you were Nokia?


PLDT Account

Globe Account

Smart Account

Nokia’s Structural Reorganization, 1999

Services Manager

TechnicalManager

Support Functions

Country Manager

Project-Focused Strategy

Regional Manager

Smart Account

Services Managers

TechnicalManagers

Support Functions

Customer Focus Strategy

Globe Account

Services Managers

TechnicalManagers

Support Functions

Changes in the environment

(market growth, bargaining power of buyers)

Change in strategy

(from project-focus and efficiency

to customer focus and effectiveness)

Change in structure and culture


Changing an

Organization

Changing an organization is the process of

modifying an existing organization to increase

organizational effectiveness.

4

Organizations undergo changes in response

to environmental forces – external and internal

Some External Forces for

Change

Environmental

factors

Marketplace

factors

Attract or retain high-caliber

people

Develop a global mind-set

Improve collaboration with

government agencies

Implement regulatory

changes

Technology &

Process

factors

Some Internal Forces for

Change

Cultural

factors

Skills

Technology &

Process

factors

Establish greater trust

between team members

either functionally or cross-

functionally

Reduce organizational

layers

Work in a more

boundaryless way

Improve cross-functional

communication/execution


Change

Cultural

factors

Skills

Identify and develop the next

generation of leaders

Improve understanding of the

business

Improve technical skillsTechnology &

Process

factors


Change

Cultural

factors

Skills

Technology &

Process

factors

Do a better job of utilizing or

leveraging technology

Display greater flexibility or

adaptability in processes

Improve productivity

Create new products or offer

new services

Reduce new product or service

introduction time

Reengineer key processes

What are the external and

internal forces of change

that you are facing?

What happens if you don’t

respond to these changes?

How ready are we to

address these changes?

Changing complexities

Changing customer relationships

Changing operational requirements

THE SEVEN TRAITS OF

CHANGE-READINESS Resourcefulness

They see more than one way to achieve a goal, and they're able to look in less obvious places to find help. They have a real talent for creating new ways to solve old problems.

Optimism Is the glass half empty or half full?

Optimist recognizes opportunities and possibilities.

Adventurousness Inclination to take risks and the desire to pursue the

unknown, to walk the path less taken.

THE SEVEN TRAITS OF

CHANGE-READINESS Passion / Drive

Nothing appears impossible.

intensity and determination.

Adaptability

Flexibility and resilience.

Confidence

Confidence is the belief in your own ability to handle it.

Tolerance for Ambiguity

The one certainty surrounding change is that it spawns

uncertainty. No matter how carefully you plan it, there is always

an element of indefiniteness or ambiguity.

Change Readiness Test

Adventurers are great starters,

Resourceful people are excellent problem

solvers,

Optimists make good cheerleaders, and

their input is especially useful when people

feel discouraged.

Changes that we experience

Job change

New boss

Office move

Job loss

Career change

Learned new technology

Reorganization

Promotion

Got married

Home purchase

Built a home

Community involvement

Started new hobby

Five Types of Change

Evolutionary change: slow and incremental

Developmental change: improving something

to make it better

Transitional change: change that requires

something new and different

Sweeping or dramatic change: immediate

change, often imposed on us

Transformational change: a complete

alteration, conversion, or renovation

Examples of Each Type of Change

Change versus

Transition

Old organization

Is it immediately effective and performing

Regional Manager

Smart Account

Services Managers

TechnicalManagers

Support Functions

Globe Account

Services Managers

TechnicalManagers

Support Functions

New organization

Transition

PLDT Account

Globe Account

Smart Account

Services Manager

TechnicalManager

Support Functions

Country Manager

Rackmount UPS

Desktop UPS

Large Facility UPS

Network

UPS

Row BasedCooling

Inverters

President &

Country Mgr

Telecom

Products

Enterprise

ProductsServices

Industrial

Products

Apodys AC UPS 5-500 kVA

Apodys Charger10-500kW

T&Dys Charger <10kW

AC & DC Switchgears

After-sales support

Data center assessment

Battery monitoring

Facilities management

But there are changes in the

environment…..

Competitive environment

Entry of Chinese competitors

High bargaining power of customers

Opportunities in certain sectors (BPO,

Government)

Acquisition of Avocent, a data center

software company

Smart anticipation of our customers’ rapidly changing business environments makes Emerson Network Power the singular choice for integrated infrastructure management solutions and best-in-class pre- and post-sales support in Philippines.

•Intellectual Curiosity – We hire and develop the best and challenge ourselves to

continuously learn, grow, collaborate and collectively engage in the business

•Passion to Win – We relentlessly tackle tough problems, play to win and deliver results

for the entire enterprise

•Commitment to Our Customers – We believe in creating relationships with our

customers that are built on a foundation of market knowledge, a focus on quality and a

commitment to protect and enhance their business

•Relationship of Trust – We are committed to ethical behavior, integrity and honesty,

and being respectfully direct with all.

Our Values

Our Vision

President &

Country Mgr

Telecom

Products

Enterprise

ProductsServices

Industrial

Products

Product focused

Strategy

President &

Country Mgr

Telecom

Vertical

Banking &

Financial

Services

Vertical

ServicesIndustrial

Vertical

BPO

Vertical

Govt

Vertical

Customer focused

Strategy

Transition

Three Phases of TransitionWilliam Bridges

The New Beginning

The Neutral

Zone

Ending, Losing,

Letting Go

Time

Time

The New Beginning

The Neutral

Zone

Ending, Losing,

Letting Go

The First Phase – The

EndingLetting go of the old ways and the

old identity people had

Minimizing

Resistance

to Change

Communication

Training

EmployeeInvolvement

StressManagement

Negotiation

Coercion

Minimizing Resistance to

Change

How to get people to let go

Identify who is losing what

Accept the reality and importance of the

subjective losses

Don’t be surprised at overreaction

Acknowledge the losses openly and

sympathetically


Expect and accept the signs of grieving

Compensate for the losses

Give people information repeatedly

Define what is over and what isn’t


Mark the endings

Treat the past with respect

Let people take a piece of the old way with

them

Show how endings ensure the continuity

of what really matters


Finally, whatever must end, must end!

Don’t drag it out. Plan carefully, allow time

for healing, but make sure that the action

is large enough to get the job done!

In taking possession of a state, the conqueror should well

reflect as to the harsh measures that may be necessary, and

then execute them at a single blow…Cruelties should be

committed all at once.

Niccolo’ Machiavelli, Italian Political Philosopher

It doesn’t work to leap a 20-foot chasm in two 10-foot jumps.

American Proverb

Keys to Responding to Resisters(DuFour & Eaker, 1998)

Assume good intentions

Identify specific behaviors essential to the success of the initiative

Focus on behavior, not attitude. Monitor behavior.

Acknowledge and celebrate small victories

Confront incongruent behavior with specific concerns and communicate logical consequences.

Time

The New Beginning

The Neutral

Zone

Ending, Losing,

Letting Go

The Second Phase –

The Neutral ZoneThe psychological no-man’s land

between the old reality and the

new one

Dangers of the Neutral Zone

Anxiety rises and motivation falls

Productivity suffers

Old weaknesses reemerge with a vengeance

People are overloaded and get mixed signals.

People become polarized (poorly managed, this

can lead to terminal chaos)

Organization is vulnerable to attack from the

outside and sabotage within

Helping people through the Neutral

Zone

Normalize

Redefine

Create temporary systems

Strengthen communications and

relationships

Use the time creatively (leaders should

model this – start with yourself!)

Time

The New Beginning

The Neutral

Zone

Ending, Losing,

Letting Go

The Third Phase –

Launching a New

BeginningA start can and should be carefully

planned. Starts take place on a schedule as a result of decisions

The Four P’s

The Four P’s

Purpose Clarify and communicate

Picture Give them a vision

Plan This is not a plan for the change but a plan for the

transition (should be detailed, person-oriented, and step-by-step)

Part Integrate and show people how they fit into the new

scheme

Be Very Clear in Your Direction

If you cry, “Forward,” you must make it

clear the direction in which to go.

Don’t you see that if you fail to do that and

simply call out the word to a monk and a

revolutionary, they will go in precisely the

opposite directions.

Anton Chekhov, Russian Writer

Reinforce the New Beginning

Rule 1 – Be consistent

Rule 2 – Ensure quick successes

Rule 3 – Symbolize the new identity

Rule 4 – Celebrate the success

William Bridges: “Managing Transitions”

Doing an Impact Analysis Strategy. How does the change align with the big picture? In

what ways does it support the strategic direction of my organization?

Structure. Can I implement this change within the current structure of my organization, or is there a need to shift roles and responsibilities?

Skills. Is there a need for training or education? Do those who have to make the change work have the necessary skills?

Processes. What impact will this change have on the way we do our work? Do we have to change the way we communicate, coordinate our work, manage priorities, make decisions, and meet deadlines? Do we need to introduce new procedures or processes?

Culture. What behaviors are important to support this change? Do we need to improve our teamwork, communication, responsibility sharing, customer responsiveness, or quality of execution in order to make this change successful?

Time

The New Beginning

The Neutral

Zone

Ending, Losing,

Letting Go

Managing Culture

Change

Organizational Culture

A set of values or beliefs that is unique to

any one organization

Some issues

• Strength of the culture

• Hidden elements

• Clicks

• Values

• Trying to get on the inside

Positive Aspects of an


Guides decision making

Provides identity for members

Amplifies commitment

Guides employee behavior

Provides justification for actions

Strength of an Organizational

Culture

A strong culture could help an organization

adapt to the environment

A strong culture can also be an anchor

around the neck of change

Visible Signs of Strong


Stories

Heroes

Rituals

Ceremonies

Symbols

Myths

Types of Cultures

The Clan Culture

A very friendly place to

work where people

share a lot of

themselves. It is like

an extended family.

Cameron, K., & Quinn, R., (1999). Diagnosing and Changing Organizational Culture. New York: Addison-Wesley.

Types of Cultures

The Hierarchy Culture

A very formalized

structured place to

work. Procedures

govern what people

do.


Types of Cultures

The Adhocracy

Culture

A dynamic

entrepreneurial, and

creative place to work.

People stick their

necks out and take

risks.


Types of Cultures

The Market Culture

A results oriented

organization whose

major concern is with

getting the job done.

People are competitive

and goal-oriented.


Studies show that

culture is closely related

to the effectiveness of

organizations.

Effectiveness depends on . . .

the core values and beliefs of the

members of the organization.

the policies and practices used by the

organization.

the success in translating the core values

and beliefs into policies and practices.

the match between values, beliefs,

policies, practices, and the organization’s

environment.

Model of Organizational Culture

Types

Studies on Culture Types

Deshpande, Farley, and Webster (1993)

found that competing values of the market

culture outperform those of the clan

culture.

Those of the adhocracy culture

outperformed those of the diagonally

opposing hierarchy culture.

The speed of response to environmental

changes which determine a higher

performance is thus culturally dependent.

EXERCISE-


Assessment Instrument

(OCAI)

How Organizational Cultures

Form

Philosophy

of the

Organization’s

Founders:

Bill Hewlett &

Dave Packard

John Gokongwei

Bill Gates

Organizational

CultureSelection

Top

Management

Socialization

Strengthening

Organizational

Culture

Foundersand leaders

Culturallyconsistentrewards

Stableworkforce

Selectionand

socialization

Managing theculturalnetwork

Strengthening Organizational

Culture

Time

The New Beginning

The Neutral

Zone

Ending, Losing,

Letting Go

Time

The New Beginning

The Neutral

Zone

Ending, Losing,

Letting Go

The Results

Thank You

Managing change and transitions

Business

Transcript of Managing change and transitions