Managing Change Dr Wesam Al Madhoun Class agenda

Managing Change Dr. Wesam Al Madhoun

Class agenda n Part I: Organizational Issues and change n Part II: The nature of change. n Part III: change. Leading others through

Part I: Organizational Issues n Characteristics of The Adaptive Organization n The Prerequisites for Change n Characteristics of Effective Change Sponsors n What Effective Change Leaders Need to Do n The Internal Players in the Change Process and their Roles n The Role of Outside Consultants

The Adaptive Organization n Willingness to make change n Risk taking is rewarded n Identifies problems quickly n Candidness ä n n Implements solutions rapidly Focus on innovation ä n Internal and external looking Upward communication Trust ä Open to feedback n Enthusiasm n Long-term focus n Skill Development n Learning Organization

Prerequisites for Change n Vision: Develop, articulate and communicate a shared vision of the desired change n Need: A compelling need has been developed and is shared n Means: The practical means to achieve vision: planned, developed and implemented n Rewards: Aligned to encourage appropriate behavior compatible with vision and change n Feedback: Given Frequently

An Effective Change Sponsor Must Have n Power: to legitimize change n Pain: Personal Stake n Vision: Total in-depth view n Public/Private Role: Commitment and ability to support change publicly/ meet privately with agents n Performance Management: Ability to reward/confront n Sacrifice: Pursue change despite personal price

What Effective Change Leaders Do n Embrace change when it’s needed n Develop a vision for change n Communicate effectively n Shake things up by challenging status quo and encouraging others to do the same n Stay Actively Involved by walking the walk and being visible about it. n Direct, Review Implementation of change - continued participation never done attitude. Be in position to notice and coach.

Roles: The Change Players n Sponsors: Senior management leaders - the driving force of change - must walk the walk. n Advocates: Allies of leaders, deploy the vision communicate - involve - sell - MOTIVATE n Agents: n Targets: Everyone in organization - develop, train, Influence sponsors’ commitment, target resistance, measure readiness, assess existing people/structures reinforce, support

Role of Consultants n Assessment of: management, key players, barriers, opportunities n Coach/Develop/Train: help people adopt new behavior n Plan: Assist in process/knowledge n Values / Vision: Facilitate their development n Redesign Organizational Factors: Rewards, Reports, Re-engineer n Communications: Facilitate the process n Project Management Assistance

Introduction Part II: The Nature of Change in business is not new — it’s just accelerating due to… n New technology. n Global competition. n Growth & increased complexity. n The result: Change or die

What to expect from change n Sense of loss, confusion. n Mistrust and a “me” focus. n Fear of letting go of that which led to success in the past. n People hold onto & value the past. n High uncertainty, low stability, high emotional stress n Perceived high levels of inconsistency. n High energy — often undirected. n Control becomes a major issue. n Conflict increases — especially between groups.

Individual prerequisites for change to occur Why should I change? Thinking & understanding Emotional/ Motivational Heart Head Behavioral Hands What do I do differently? What’s in it for me?

Change management The Effective Management of Change Involves An Integrated Approach In Each Of These Three Arenas Effective Change Equals Altering Mind-set Harnessing Motivation Shaping Behavior

Stages of change management “Coming to Grips with the Problem” “Working through the Change” “Attaining and Sustaining Improvement”

Strategy/change implementation Arenas of Change Stages of Change Management 1. “Coming to Grips with the Problem” 2. “Working through the Change” 3. “Attaining and Sustaining Improvement” Mind-set (Thinking/ Understanding) Breaking the Conventional Mind-set and Generating a Picture of the Future Motivation (Emotional/ Intuitive Dynamics) Dealing with Reactions to Loss and Creating the Will to Succeed Behavior (Capability) Changing Behavior and Developing Competency and Capability

Part III: Leading Others through Change 1. Identify (roughly) the stage person/group is in. 2. Determine obstacles/arenas: a. Head b. Heart c. Hands d. All of the above 3. Use tools to move through obstacles. ä May need several simultaneously. 4. Recognize and acknowledge steps forward. 5. Cycle back to Step 1.

Understanding what stage of change they’re in Questions n Do they see a need for change? n How uncomfortable are they with the status quo? n Do they have any sense of urgency about changing? n Are they struggling with making the change work? n Are they looking for ways to make it work? n Are they communicating with others involved in the change, to get salutations to problems, share Best Practices, etc. n Are they looking for ways to leverage the change? To enhance it? Stage One: Coming to grips with the problem. Two: Working through the change. Three: Attaining & sustaining improvement.

The technology of leading sustainable change Arenas of Change Stages of Change Management Stage One: “Coming to Grips with the Problem” Mind-set (Thinking/ Understanding) n n Gather data to convince you/others that old way no longer works. Confront myths, assumptions, & beliefs that prevent seeing problem & changing. Motivation (Emotional/ Intuitive Dynamics) Behavior (Capability) n Increase dissatisfaction with old ways. n Form team to gather data. n Increase confidence that change is achievable. n Have management talk about data & need for change. n Outline costs of old way & benefits of new way. n Assess individual readiness to change. n Identify specific behaviors to change.

The technology of leading sustainable change Arenas of Change Stages of Change Management Mind-set (Thinking/ Understanding) n Stage Two: “Working through the Change” n n n Create a vision of the future & articulate the new mind-set. Help people understand both the big picture & the details. Communicate the purpose & benefits broadly. Help people make the link between solving today’s issues & the new plan. Motivation (Emotional/ Intuitive Dynamics) n n Hold “reality check” meetings to work through the threats, losses, and resistance. Work through the leaders’ emotion/ resistance first. Use individual gain/loss analysis as as tool. Discuss how to manage stress. Be supportive of one another. Behavior (Capability) n n n Develop a new profile of leadership success. Evaluate the top levels of management in stores. Involve employees in building change plans. Reward successes; expect & learn from mistakes. Drive individual behavior change.

The technology of leading sustainable change Arenas of Change Stages of Change Management Mind-set (Thinking/ Understanding) n Stage Three: “Attaining & Sustaining Improvement” n n Continually update vision of desired future & teamwork. Create forum for feedback & continuous learning. Continue to articulate why’s & benefits. Motivation (Emotional/ Intuitive Dynamics) n n n Celebrate & reward successes. Deal with people who will not change. Establish two-way communication. Involve people for buyin. Continue to support each other in managing stress & change. Behavior (Capability) n n Make sure systems & rewards reinforce desired behaviors. Train incoming people in the new behaviors. Coach, give feedback, & reinforce new behavior. Deal with people who cannot change.

Addressing mind-set Working with Mind-Set n Learn it thoroughly yourself. n Build relationships. n Explain the purpose of change. Help them understand & teach concept. n Articulate the benefits. n Link daily activities to their higher purpose & benefits. n Repetition: Provide frequent & consistent communication about change & what’s needed. n Paint a picture of the successful future using best practices.

Addressing behaviors Working with Behaviors n Model desired behaviors & attitudes. n Clearly define desired behaviors & behaviors that need to change. n Give feedback frequently to reinforce changed behavior & correct wrong behavior. n Coach & teach desired behavior.

Addressing behaviors Working with Behaviors n Identify training needs & communicate upwards. n Create goals to work toward: a vision of success. n Help people create specific, concrete behavior-change plans as needed. n Communicate in multiple forms.

Summary n You have to be comfortable with the change before you can get others to change. n People can’t (or don’t want to) change when they don’t understand. ä What, why, how, WIIFM. n You can’t intervene until you understand the situation. n Resistance is part of the change process. ä Work with it. n Address change at all three levels to be successful. n Sustainable change occurs in steps. ä Define your priorities. Don’t take on too much at once.

A stepped approach to change Success A journey of a thousand miles occurs one step at a time. X Start