Change as the New Normal Kathi Kraft Director

Change as the New Normal Kathi Kraft, Director, Organizational Change Stericycle

Agenda • What’s the Big Deal about Change? • Change as the New Normal – and as a business imperative • Survival Rules for the New Normal • Resources • Q&A

What does Change feel like Let’s try it out…. . Now tell us how that felt… 3

You are in good company…. 4

Change is inevitable. Change for the better is a full-time job. Adlai E. Stevenson 5

What is The Big Deal About Change?

There are there two perspectives for change. . • First, there is Personal Change (or sometimes known as WIIFM) • Personal Change may mean… § § § 7 Getting married; getting divorced. Having a new baby; losing a family member Working with different team members; losing co-workers; gaining new co-workers Being assigned to a different boss Being asked to do different work Losing a job; needing to find a new job; taking a new job Being asked to take a pay cut; being asked to do more for less Being forced to move; relocating for a new job Putting your children in a different school Finding and attending a different church Finding new grocery stores, hairdresser, ways to work, doctors…….

Then there is the business perspective… • Business or the bigger picture (also WIIFM but different) • Business Change may mean… § § § § 8 Losing company market share/gaining market share Losing customers/gaining customers Cutting products/adding new products Closing offices, stores, plants/opening new offices, stores, plants Being forced to lay off employees/Hiring new employees Required to cut prices or margins Demands to do more with less

What’s in common with these 2 perspectives? 9

No matter the type of change, it typically shows an initial dip in performance…. The change curve highlights the expected performance dip that accompanies any change. And we can have a dip in personal performance too. . 10

Multiple changes within the organization aggravate and compound this risk. 1 st Communication or 1 st Rumor Increasing resistance decreasing productivity Project 1 Project 3 Productivity loss Employee dissatisfaction Passive resistance Project 2 Tim e Prosci® Flight Risk Model 11 Turnover of valued employees Tangible customer impact Active resistance Opt-out of the change

Change as the New Normal

Living in a different world…. • Key Takeaways • Social media • Large scale internet access • Advanced payment systems/retail Point of Sale access • Competitors often come from outside your “industry” • e. g. Amazon is one of the world’s largest grocery sellers 13 Year 2000 § 97 million mobile phone subscribers § 0 Facebook users § Amazon had 20 million users Year 2010 § 293 million mobile phone subscribers § 116 million Facebook users § Amazon has @285 million users

And more changes are coming… • Huge Increase in scientific developments § Estimates point to 5 X more scientific developments over the next 100 years that those that have taken place in human history. • Hyper-speed development of disruptive technologies § § 14 Uber – Taxi Air Bn. B- hotels Spotify, Pandora – music Amazon – everything!

Industry Leaders of the 90’s

Still here, but almost gone…. 16

Change looks different today 17 Traditional Change ready Organizations Leader driven; top down Distributed; top down AND bottom up Visionary and transformational leaders determine a future for others to understand embrace Purposeful and collective leadership with a range of possible and potential futures informed by a diverse organization Project managed and phased Rapidly prototyped, tested and iterated Overcoming resistance to change status quo Removing sense of a status quo Stakeholder engaged Stakeholder driven and owned

The New Normal • Shorter development life cycles • Social media driving consumer behavior – quickly! • Change in “family” definition (and needs) • World-class, instant information and learning (along with increase of misinformation and propaganda • Information Overload Drives • Globalization (drops barriers) • Increased competition • Need for agility as a personal and business skill The three Rs- reading, ‘riting, and ‘rithmetic- are no longer enough. We must add the three Cs- computing, critical thinking and CAPACITY for change – Fred Gluck 18

Coping with the new Normal…. or creating a New Definition of Success

Agile vs agile or…. Agility [uh-jil-i-tee] the power of moving quickly and easily; nimbleness 20

What if Agility was a good thing…. Agility is a capability that helps us adapt Organizational agility: the capacity to identify and capture opportunities more quickly than rivals do. Mc. Kinsey Quarterly Take advantage of change – whether planned or unexpected – without ever letting it sideline you. Price Waterhouse Coopers The speed of a business to identify and react to internal and external events that could and do occur. EYGM Limited Anticipating Change, Adapting to and responding to change, Acting on the opportunity by exploiting change. i 4 cp Agility is the ability to adapt and respond to change; agile organizations view change as an opportunity, not a threat. Jim Highsmith

What does Agility look like? Quick and decisive Vigilant Flexible Courageous Vulnerable 22 Receptive Lithe/supple Wise Respectful Responsive Compassionate Present

What if Agility was a good thing…. Change Snapshot #1 Scenario: Fortune 100 food manufacturer. Working to integrate with Fortune 500 prepared food manufacturer. New CEO, new Chairman of the Board, 75% shift in Executive Leadership team. Major SAP project 75% done – new CTO pauses project. Challenge: Keeping IT and Business Team Engaged Approach: - Create learning opportunities (Agile, Scrum. Master, Summer Learning Series, Cloud technology) - Take vacation !!!! - Identify short term wins – complete stalled projects during Pause - Create the big picture vision and tie the pause/progress to the vision 23

What if Agility was a good thing…. Change Snapshot #2 Scenario: Fortune 500 hazardous waster/medical waste and recall /compliance service provider. Stock peaked at $150/share and is now at less than 33% of value. Settled $300 million lawsuit. Currently has 500+ systems including 40+ payroll systems. Undertaking SAP/Success. Factors and Salesforce. com transformation. Had one RIF, no bonuses, no salary increase in last 2 years. Challenge: Keeping morale up, performance stable, increase sales and prepare for 23 year deployment. Approach: - Create an all-in vision - Build the picture of the future state and make it real – repetition - Use Change Agent and Culture Ambassador program for grassroots engagement/feedback - Keep the consequences of not transforming real – make the change personal - Keep on communicating even when the feedback is awful 24

Let’s focus on individual agility…. What does personal agility look like? Anticipating and staying tuned into changes Increasing speed and quickness at changes Adapting to both proactive (planned) and reactive (unplanned) changes Desiring to learn and grow more (increase personal and business capabilities) Questioning everything Exercising more Emotional Intelligence (listen, trust) Practicing looking forward rather than behind 25

Tips for navigating the new normal…. Recognize that you will feel awkward, ill at ease and self conscious – practice it! Deal with your loss - Focus on what you have to give up and deal with it Understand you are not alone - We all feel “why me” – get a work or personal support group Break down a change into small parts with a larger strategy - Pick simple tasks you can deal with immediately Recognize everyone is at a different level of readiness - Know your readiness level and be considerate of others Focus on the resources you do have and do more with less - People focus on the loss of resources Recognize the tendency to revert to old behaviors - Focus on the benefits and positive gains from changes 26

Change agility drives results • 9 of 10 Executives said organizational agility was critical to business success and growing in importance over time Mc. Kinsey Quarterly • In a study of 94 companies, those with superior growth in net income and stock value had demonstrated strong change leadership Mastering Agility, Hans Ameli, Kurt Larsson 27

Where are You today? Change Cautious Change Averse 28 Change Ready Change Agile

Be the Change you want to see in the World….