Change Management

1. Change Management Presentation for RCB Regional Conference ACMA by Bill Synnot at The Telstra Dome, Melbourne May 30, 2007

2. Topics to be Covered • Framework as a road map to create a peak-performance, innovative & agile organisation • How to turn around an unsuccessful change process and/or keep a successful organisation on track

3. Topics cont. • Address the challenge of implanting the change process permanently into your organisation’s culture (including behavioural change) • Some useful change implementation tools

4. Six Characteristics of aPeak-Performance, Innovative, Agile and Robust Organisation 1 Customer–focused 2 Concentrating more on leadership & less on management/administration 3 Entrepreneurial (based on innovation) 4 People–orientated 5 Tightly Focused on “decisive opportunities” 6 Resilient (for more details see article on web site: www.billsynnotandassociates.com.au)

5. Change means experiencing something different and/or doing something differently Usually with the basic aim of “…Increasing the organisation’s capability to adapt to and adopt new ways of doing business…”

6. QUOTES “…organisation today - has to be designed for change as the norm and to create change rather than react to it …” Peter Drucker, 2001 “…it is not the strongest of the species that survives, nor the most intelligent; it is the one that is the most adaptable to change…” Charles Darwin as quoted in Harvard Business Review, 1998 “. . .you can resist change and win one or more battles, but you will lose the war...” Noel Tichy, 1999

7. (quotes cont.) “…change does not come from a slogan or a speech. It happens because you put the right people in place to make it happen…” Jack Welch as quoted in Jack Welch et al, 2001 “…An organisation is a web of interconnections; a change in one area can throw a different part of the organisation off balance. Managing these ripple effects and the unexpected outcomes is the challenge of change…” Harvard Business Review, 1998

8. (quotes cont.) “…The real voyage of discovery consists not in seeking new lands, but in seeing with new eyes…” Marcel Proust as quoted by David Osborne in “Re-Inventing Government”, 1993 “…Given the choice between changing and proving that change is not necessary, most people will get busy on the proof…” John Kenneth Galbraith quoted in Australian Financial Review, 1999

9. (quotes cont.) “…When the rate of change inside an institution becomes slower than the rate of change outside, the end is in sight …” Jack Welch, 2001 “…it has become a truism that the only constant is change; with one change overlapping with another, the time-frame to accomplish change is shortening…” Harvard Business Review, 1998

10. (quotes cont.) “…the question that faces the strategic decision-maker is not what his/her organization should be tomorrow. It is what do we have to do today to be ready for an uncertain tomorrow…” Peter Drucker as quoted in AFR Boss, 2000 “…Change programs often seem like they’re being shot out of cannons. They start with a bang, then quickly fall flat…” Harvard Business Review, 1998

11. (quotes cont.) Change involves “… combining “inner shifts” in people’s values, aspirations and behaviours with “outer shifts” in processes, strategies, practices and systems…...It is not enough to change strategies, structures, and systems, unless the thinking that produced those strategies, structures and the systems also changes…” Peter Senge, 1999

12. Levels of Change Personal Group Organisational Environmental NB: There is overlap & interaction between the different levels

13. Stability is No Longer the Norm

14. Competition comes from “where you least expect it” In a survey it was found that “…industry newcomers – not the traditional competitors – had taken the best advantage of change over the past ten years...…by profoundly changing the rules of the game…” Gary Hamel, 1997 eg Murdoch, Branson, Gates, etc

15. SACRED COWS MAKE THE BEST BURGERS “…an outmoded belief, assumption, practice, policy, system or strategy, generally invisible, that inhibits change and prevents resources being used for new opportunities…” Robert Kriegel et al., 1996

16. Remember: “…Over 50% of technological breakthroughs that influence an industry or organisation come from outside that industry…” Peter Drucker, 2001

17. Point of Diminishing Returns This involves organisations trying to wring the last efficiency out of business models that have reached their use-by date; their strategies are indistinguishable from their competitors

18. Why Do Some Organisational Transition Efforts Fail ? In many organisational transitions, the gap between expectations and achievements is very large

19. The J-Curve What We Expect Desired Status Quo What Actually Happens ChangeInitiative Organization’sPerformance VOD Time

20. Most Common Management Error “…generally social and behavioural causes frustrate change initiatives rather than technical problems…” Patrick Dawson, 2005

21. Current Situation The formula for success now is no guarantee of success in the future

22. The Hardest Organisation To Change is a Successful One(or one which perceives itself to be successful) ie why dabble with the formula for success?!! BUT “…over 40% of the businesses listed in the 1985 Fortune 500 are not in business today…” Karlson Hargroves et al, 2005

23. Active Inertia • Strategic frames become blinkers • Processes become routines • Relationships become shackles • Values become dogma Important question is“…what is hindering us?…” Definition of insanity!

24. Problem of Status Quo Thinking eg - happy the way we are (zone of comfort) - custodians of the traditions, etc The combination of cultures that resist change and managers who support the status quo is lethalfor any change process “…Status Quo: Isn’t that Latin for the mess we are in now?…” (AIM 2000)

25. C . A . V . E (Citizens Against Virtually Everything)

26. ATTITUDES TO CHANGE “…Change creates fear in established organisations and paranoia in the minds of executives hired to protect the status quo…” Gene Landrum, 1996 • Working harder and harder “…like driving a car and putting your foot down harder on the accelerator when you should instead change gears…” • Seen as a threat unless staff have ownership • Trust is one of the first casualties

27. (attitudes to change cont.) • Encountering change too often “…alternates between short bouts of radical surgery and long doses of studied inattention…” • Conflicting messages of change, ie staff are encouraged to realise their aspirations but basic needs such as job security are threatened • Code word for “something nasty” • Pushes people outside zone of comfort

28. (attitudes to change cont.) • People feel that they are not in control of what is happening (learned helplessness) • Indications of resistance – mistrust, resignations, transfers, absenteeism (includes phantom), lateness, lower productivity, loss of quality, slowdowns, wildcat-strikes, sullenness and quarreling • WIIFM, ie gains and losses • Creates conflict and chaos

29. (attitudes to change cont.) • Technocrats treat change as a technical problem only • Not treating the past with respect, ie need to build on the past • Have experienced a failed change project • “Say yes, but do no”

30. Most Models Over-Simplify the Situation • Change is very • contextual • situational • Most Models Are Like Supernova

31. Quotes “…All models are wrong – some models are useful…” Edward Deming (1980) “…The value of the model is not in its predictive power but in its power to catalyze reflective conversations…” Andrea Shariro (1999) “…There is no science of transformation, only an art…” Fortune Magazine (1996)

32. Limitations of Overseas Models for Australia Australia’s situation is different from other countries like USA, Europe and Japan.

33. Some Australian Cultural Differences • One of the most ethnically-diverse countries • Preference for strong, but not hard, leaders • Comfortable with consistent leaders • Preference for slow, incremental change • Preference for pattern and order; uncomfortable with crisis and chaos

34. (some Australian cultural differences cont.) • Workplace relationships more important than self-improvement • Reluctance to confront poor performance • Hypersensitive to hypocrisy and cant • Never forgive a tyrant • Slow to anger • Culture of mateship

35. Organisational Differences with USA Australian organisations are - more conservative & have a greater fear of making mistakes - less keen to be assessed - statements (vision & mission) are less indicative of success - greater focus on finding a cause rather than a challenge

36. (Organisational Differences with USA cont.) - workforce prefers work that is worthwhile rather than being challenged to reach stretch goals - winning is less about charismatic leaders, big breakthrough ideas or high pay levels and more about team performance

37. Seven Ingredients for Effectively Handling An Organisational Change (see hand-out) • Laying a foundation for new ways (includes building on the past) • Establishing a sense of urgency • Forming a transitional team • Creating alignment • Maximising connectedness • Creating short-term wins • Consolidating performance improvements There is overlap between the ingredients, and different degrees of emphasis needed in different situations

38. Resistance to Change • It is normal • People are concerned about loss (real & perceived) • Need to understand what is under-pinning the resistance • Minimise time in this areaby focusing most attention on supporters of the change

39. Communications • Communication Formula • Words (20%) • Body Language (40%) • Tone (40%) • Make communications receiver-friendly

40. Culture is Complex, Powerful, Deep & Stable • Change challenges current culture. It requires “unlearning” and “relearning” which can be very painful and slow • Three parts to culture i) behaviours, ie action, words, relationships, etc ii) symbols, ie physical environment, recognition concepts, etc iii) systems, ie reporting, performance management, etc

41. Some ToolsDriving Forces Analysis Forces Direction Impact Term Control Strategies (+/-) (L/M/H) (S/M/T) (C/S/U)

42. Life-cycle approach

43. Non-verbal signals • As stated before, in communications body language and tone of voice are more significant than words • Describes ways to read and understand non-verbal signals

44. Story-telling • Explores the importance of story-telling • Detail ways to improve your story-telling

45. Understanding yourself A series of questions so that you can understand yourself and others who work with you

46. Analyse the Way you Spend your Time • This will show how we waste most of our time by doing work that is not adding value to the customer/client • Most managers waste more than 50% of their time doing “re-work” and “non value- adding work”

47. Network mapping This tool explores how the “informal” network works

48. Creative thinking The 6 hats that help structure a meeting so that it is more productive

49. Bill Synnot’s contact details Address: Bill Synnot & Associates, 18th Floor, 300 Queen St., Brisbane or 15 Hipwood St., Norman Park, Qld, 4170 Phone: 0418 196 707 Fax: 07 3399 7041 Email: rp000073@a1.com.au Skype: bill.synnot Web: www.billsynnotandassociates.com.au