Strategy and Leadership PV237
Ing. Michala Kozinova, MBA.
Leadership Through Change
aka
Change Management
Strategy and Leadership PV237
Happy Little Cameras
Congratulations Happy Little Cameras
Martin Petrovaj Ondrej Svoren
Case study – change is ALWAYS taken
badly
Redesign of invoice approval process to reduce effort & errors and to get analytics
New Way
●
12 Mouse clicks per transaction
●
Automated
●
Fully Auditable
●
Advanced Analytics
●
Reduction in Close Process
Old Way
●
168 Mouse clicks per transaction
●
Manual
●
Labor intensive
●
Prone to error
●
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:
●
7 in person meetings
●
4 conference calls
●
113 emails
●
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”
Coaching through change exercise part 1
Situation: You are a leader of a group you
have just introduced the change to. Here
comes a practical exercise you can do to ease
the change.
● Explain the exercise and agree some ground
rules for the discussion (safety,
confidentiality, respect for individuals).
● Ask individuals in the team to write on sticky
notes how they feel about the changes.
Coaching through change exercise part 1
● Ask them to stick the notes on a flip chart and
then get the team to cluster the notes into similar
feeling groups.
● Consider the results and draw attention to
common ground (people will find comfort
knowing they are not the only ones who feel that
way).
● Start a discussion with how can these feelings be
addressed.
Coaching through change exercise part 1
● Brainstorm – no censorship – no idea is stupid.
● Sort and prioritize the action list.
● Assign actions.
● Schedule a follow up: when and where you
will discuss the progress.
● Repeat the sticky notes exercise when you feel
you moved forward to double check.
Coaching through change exercise part 2
Time
Competence&Morale
Unconsciously
Competent
Unconsciously
Incompetent
Consciously
Competent
Consciously
Incompetent
Coaching through change exercise part 2
Group work
●
Put the competency stages on the
transition curve
●
Elaborate on leadership actions
needed for each stage
Consciously
Competent
Unconsciously
Competent
Unconsciously
Competent
Unconsciously
Incompetent
Consciously
Incompetent
Competence stages
Unconscious
Competence
Change
Competence stages
Coaching through change exercise part 3
Time
Competence&Morale
Depression
Denial
Acceptance
Frustration
Bargaining
Integration
Shock
Coaching through change exercise part 3
Group work
●
Put the emotional responses to
change on the transition curve
●
Brainstorm on leadership actions
needed for each stage
DenialDepression
Acceptance
Shock
Frustration
Bargaining
Integration
Kuebler Ross model
The model was first introduced by Swiss psychiatrist Elisabeth Kübler-Ross in her 1969
book On Death and Dying, and was inspired by her work with terminally ill patients.
Bargaining
AcceptanceAcceptance
Integration
Depression
Frustration
Denial
Shock
Holding on Letting go Moving on
What are the
leadership tools at
each stage?
Kuebler Ross model
The model was first introduced by Swiss psychiatrist Elisabeth Kübler-Ross in her 1969
book On Death and Dying, and was inspired by her work with terminally ill patients.
Bargaining
AcceptanceAcceptance
Integration
Depression
Frustration
Denial
Shock
Holding on Letting go Moving on
Coaching through change exercise part 4
● Introduce and explain the Transition Curve.
● Compare the stages of the Transition Curve
with the feelings on the sticky notes.
● Ask team members to plot where they
believe they are on the curve (they can do
this publicly or privately).
● Split the team into pairs.
Coaching through change exercise part 4
● Each person, with the help of their partner, to
explore their current feelings around change:
- What are your current feelings?
- How does that impact on your behavior,
performance, ability to help yourself?
- What other feelings does this exploration
evoke?
● Break and get some feedback on this exercise.
Coaching through change exercise part 4
● Staying with the same pairs, each person with the help of
their partner to explore how they could move positively
through the Transition Curve:
- What outcome are you looking for?
- What are you already doing that’s helping?
- What other options/opportunities do you have?
- What would it take?
Coaching through change - notes
● Recommend to do this exercise when most people
are expected to be past the denial stage
● Coaching questions – when the person is done
answering, don’t satisfy yourself with the answer
and ask “What else…?” several times – that’s when
you are digging under the surface and that’s when
the person is getting to answers he was not actively
aware of
● When leading change – OVERCOMMUNICATE - at
the moment you think you’ve communicated a lot,
double the effort/introduce new channels …
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
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
●
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?
Change management hints
●
Share what is changing and what is NOT changing –
clarifying what aspects are constant might be
reassuring
●
Provide multiple paths for exploring
●
Communicate rollback scenario
●
Don't assume you understand where the other person is
coming from. Ask clarifying questions.
●
Be open to feedback. Assume positive intentions
(perhaps masked by frustration or poor communication
skills).
●
Use an active rather than passive voice
●
Agree to disagree, if you're at dead end. Let them have
the last word.
Change management hints