www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 1
CHANGE HOUSEChange Management – Why so difficult? Why so important
This Session …
� Reviews what it feels like to have change done to us
� What happens to people during change
� How can we as leaders help mitigate the impact of organisational change
� Share some thoughts and views on ways of implementing the new changes
� Discuss some tools and techniques to help
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 2
CHANGE HOUSEChange Leadership: Fun and Frustration
��
Some thoughts beforeto get started …
CHANGE HOUSEA view about failures
70 % of major changes fail
only 30 % are successful
• BMW/Rover,
•Daimler-Chrysler,
• Take over of Dresdner Bank by Allianz.
Ernst & Young 2006
Reasons:
�Bad preparation, time pressure
� Risks and Challenges
�Managers are enough experienced
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 4
CHANGE HOUSEFailores (2)
The Company culture which actually forms theorganisation is relatively unknown for most Managers.
This is the reason why 70% of the restructuringprograms are not successful.
Source: James Champy, Hammer, quoted by manager magazi n 5/94, S.172
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 5
CHANGE HOUSEReasons for Insolvency: The past catches up
Scopefordesign
Insolvency
Profit crisis
� Goals notreached
� Decreased costefficiency
� Negative results
� Cost savingprogramms
� etc.
Strategy crisis
� Increasedcomplaints
� Decrease in customercommitment
� Major customersgo elsewhere
� Failure to foreseemarket changes
Leaderhip crisis
� Bad leadership
� No work cohesion
� Manager and employees do notlearn quickly enough
Liquidity crisis
� More control
� Repeated overdraft
� etc.
Source: According to Michael Butte
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 6
CHANGE HOUSEHow we cope with change – sometimes ...
DON'T DISTURB ME - CAN'T YOU SEEI AM BUSY WINNING THIS BATTLE
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 7
CHANGE HOUSELeadership model ‚Minestrone‘
Management of company has to
know?
!$
�
Shareholder
Value
Vision/Mission
Customer Focus as strategy
CompetitoranalysisBenchmarking
Relationshi
p
Management
Innovation-management
Busíness ProcessReengineering
Management b
y Objectiv
es
Balanced Score Card
Portfolio Management
Core competencies
Value Based
Management
LeanManagement
KVPKVP2
TQM
Outsourcing
Project-managment
LearningOrganisationKn
owled
ge
manageme
nt
Lean Banking
Kaizen Team-
management
Profit Center
Matrixorganisation
Change Management
Values
Attitudes
Leadership Guidelines
Employee Survey
360°-Fee
dback
Leading th
e boss
LeadershipStyle
HR Management for the New Economy
Cost-management
SixSigma
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 8
CHANGE HOUSEChange for self purpose?
� We practiced without intermission, but everytime we wanted to form a group, we found ourselves being separated
� Later I learnt that it lies within our very nature to turn things upside down when confronted with new situations
� What a wonderful way to deceive progress, whilst one only ends up producing confusion, inefficiency and frustration
� We practiced without intermission, but everytime we wanted to form a group, we found ourselves being separated
� Later I learnt that it lies within our very nature to turn things upside down when confronted with new situations
� What a wonderful way to deceive progress, whilst one only ends up producing confusion, inefficiency and frustration
(Source: Petronius Arbiter, Satyricon 1. Century p.D. )
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 9
CHANGE HOUSE
THE CHANGE HOUSE
DUNGEONOF DENIAL
THECONTENTMENT
ROOM
THERENEWAL
ROOM
THECONFUSION
ROOM
THEDENIALROOM
THESUN
LOUNGE
PARALYSISPIT
WRONGDIRECTION
DOOR
Source: Claes Janson, Paul Kirkbride
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 10
CHANGE HOUSE
�we’re the market leaders�if it isn’t broken, don’t fix it�not invented here�management has decided�we know our customers�we have a great track record�we’re the most profitable�let’s decide later�we achieve our budgets�we’re the best
� ignore the outside world� bureaucratic� arrogant� uninformed about competitors� don’t listen to staff � Head Office focus� publish the company history� no sense of urgency� focus on day-to-day details� automatic salary increases
How we act What we say ….
SIGNS OF CONTENTMENT
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 11
CHANGE HOUSE
�what problem?�not my problem�Corporate doesn’t understand�it’s an industry trend�my staff are no good�competitors are worse�we’ve always done it this way�our business is different�if adjusted for … it’s OK�it’s our customers’ fault�it’s a short-term issue
What we say ….
� defend the past� defend the present� aggressive� protect the status quo� maintain taboos� kill the messenger…� … but miss the message� blame everybody else� don’t listen to staff� tell stories about past glories� massage the figures
How we act
SIGNS OF DENIAL
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 12
CHANGE HOUSE
�how did we get into this mess?�let’s hire some consultant�what’s happening?�what have I done wrong?�I’ve been saying that for years�we did that years ago�it’s all my fault�Help!
What we say ….
� frustration� depression� anger� withdrawal� blaming management� loss of self-esteem� insecurity� no sense of direction� irrational behaviour� set up committees, task forces� slow� never finish things
How we act
SIGNS OF CONFUSION
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 13
CHANGE HOUSE
�Let’s make it happen�let’s do it together�let’s tell everybody about it�now I understand it�it’s been tough, but we did it�we’re stronger now�I don’t really miss it now�it’s better than I expected�we have to trust each other�we could be better�let’s beat the challenge
What we say ….
� accept responsibility� renewed energy, enthusiasm� communicate� listen� learn� trust� delegate� independent� accept risk� flexible, creative� continuously improve� set new targets
How we act
SIGNS OF RENEWAL
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 14
CHANGE HOUSE
What can you do to help people move out of …..?
- Consider 3 headings:
What you might achieve :• that people start to ….
What you should NOT expect yet :• that…..
Possible actions :•••••
USING THE CHANGE HOUSE
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 15
CHANGE HOUSE
What you might achieve :people start to think about the change
What you should NOT expect yetpeople accept that things need to change
Possible actions :• shock people out of complacency• benchmark with best practice• break up teams, move people• define performance indicators• give feedback about performance• customer satisfaction surveys• challenge assumptions• get people to visit other organisations
MOVING OUT OF CONTENTMENT
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 16
CHANGE HOUSE
What you might achieve :people accept that something needs to be done
What you should NOT expect yet :• they will see the way forward as clearly as you• they understand what has to be done, and their role in it
Possible actions :• continue to benchmark• communicate the results to everybody• explain the “big picture” (purpose, benefits of change )• show respect for the past: avoid blame• don’t offer detailed solutions yet• look for small, early successes• give people time and space• encourage positive health habits
MOVING OUT OF DENIAL
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 17
CHANGE HOUSE
What you might achieve :• people understand what needs to be done,• accept their roles & responsibilities in it
What you should NOT expect yet :• people stop talking about “the good old days”• they don’t slip back sometimes
Possible actions :• provide vision and overall direction . . .• . . . but allow people to influence how to get there• give a sense of ownership by allowing contributions• encourage open expression of feelings, positive and negative• emphasise what is not changing• focus on concrete, achievable first steps• give fast feedback about results• reward desired new behaviours• ensure systems and processes support the new approa ch• improve the working environment• encourage experiments
MOVING OUT OF CONFUSION
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 18
CHANGE HOUSE
What you might achieve :• people understand that Change is never-ending• they are energised for continuous improvement
What you should NOT expect :• nobody will ever slip back into Confusion• nobody will ever slip forwards into Contentment
Possible actions :• constantly “raise the bar”: increased targets• keep providing benchmarks, surveys, feedback• celebrate successes• bring in outsiders• use 360º feedback continuously• encourage learning & self-development• don’t punish unsuccessful experiments• be alert for “Unconscious Incompetence”• job rotation
STAYING IN RENEWAL
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 19
CHANGE HOUSEHow do people react to change?
High
low Time
1. Surprise/ Shock
2. Denial
3. Begin to
understand
(mentally)
4. Acceptance
5. Testing
6. Cognition
7. Integration
Start/Point of change
Self-Estim
ation
Perceivedcompetence
FutureOrganisation
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 20
CHANGE HOUSE
Das ist Courage !Das ist Courage !
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 21
CHANGE HOUSESome people say…
„In the Past…
…even the futurewas better!“
Karl Valentin
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 22
CHANGE HOUSE
„PEST“ -
Factors
Business
Partners
Client Competitors
Strategic
ChangeStructural
Change
Culture
Change
Leader-ship
Source: MZSG
The ‚Big Picture‘ – St. Gallen Management Model as an example
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 23
CHANGE HOUSE
1) What do you perceive as main reasons, that let your change projects
fail?
2) What can you do as a leader to avoid failure/ make the project
successful?
Change Leadership: Staying in Renewal
www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 24
CHANGE HOUSE
Communicate� one-to-one� organisatian
Leading PeopleLeading Self
Change
Leadership
Strategy
Culture
LeadingSystems
Strukture
Change Leadership: Your Navigation Tool Kit
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