Strategy and Leadership PV237
Ing. Michala Kozinova, MBA.
Change Management
Strategy and Leadership PV237
Strategy and Leadership PV237
• Change Management
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Realizing why change is ALWAYS taken badly
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Coaching through change
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Best practices
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Things to avoid
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Post-mortem coaching & self-coaching
Case study
Redesign of invoice approval process to reduce efort & errors and to get analytics
New Way
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12 Mouse clicks per transaction
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Automated
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Fully Auditable
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Advanced Analytics
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Reduction in Close Process
Old Way
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168 Mouse clicks per transaction
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Manual
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Labor intensive
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Prone to error
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No analytics
How do you think it was received?
Source: MorganFranklin Consulting
Versus
Case study continued
It was not received well. To get this change approved and in
production, it took:
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7 in person meetings
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4 conference calls
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113 emails
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Personal involvement of the CIO, CFO, and two group VPs
What did they miss?
“We failed to realize
that generally people
fear change and the
personal impact of the
change”
Leadership Through Change
Based on John Kotter. professor at Harvard Business School and world-renowned change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading Change.
Eight Steps
to Successful
Change
– John Kotter
Leadership Through Change
Based on John Kotter. professor at Harvard Business School and world-renowned change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading Change.
Eight Steps
to Successful
Change
– John Kotter
Establish a sense of urgency
Institutionalize the change
Consolidate and build on the gains
Create short term wins
Empower people to act on the vision
Communicate the vision
Develop a clear shared vision
Create a guiding coalition
Why is it important?
McKinsey study on 40 companies shows how change management impacts ROI
Excellent change management 143% ROI
Poor change management 35% ROI
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11 companies with the lowest ROI all had:
1. Lack of commitment/follow up from senior executives
2. Poor project management skills of middle managers
3. Employee confusion about the project
What did the excellent companies do?
Organizational tools for changing minds
Leadership tools
Management tools
Power tools
Inspiration
Information
Intimidation
Organizational tools for changing minds
Vision
Role modelingPersuation
Conversation
Story telling
Negotiation
Strategic planning
Decision making
Learning
Rituals
Measurement
Tradition
Learning
Control systems
Role definition
Operating procedures
Hiring
Firing
Promotion
Training
Incentives
Punishment
Coercion
Threats
Coaching through change exercise part 1
Situaton: You are a leader of a group you have just introduced the
change to. Here comes a practcal exercise you can do to ease the
change.
● Explain the exercise and agree some ground rules for the
discussion (safety, confdentality, respect for individuals).
● Ask individuals in the team to write on stcky notes how they feel
about the changes.
● Ask them to stck the notes on a fip chart and then get the team
to cluster the notes into similar feeling groups.
● Consider the results and draw atenton to common ground
(people will fnd comfort knowing they are not the only ones who
feel that way).
● Start a discussion with how can these feelings be addressed.
Assignment 6
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Submit next decision Glo-bus strategic simulation game
round
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Submit your takeaway from today lesson within 24
hours
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Those who did not attend, complete Eight Steps
of Change Management on their own (I don’t
want you to google it, use your critical thinking)
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Those who did not attend, sort words on slide
12 into groups on slide 11