Leading Positive Change: Transforming Organizational Culture

1. Developing Management Skills Chapter 10: Leading Positive Change

2. Learning Objectives • Understand the obstacles to successful change in organizations • Develop the capability to lead positive change • Acquire the ability to mobilize the capabilities of others in achieving positive change

3. Today’s Agenda • Leadership and Change • Corporate Vision Statements • Wisconsin Art Greetings role playing exercise • Chrysler case study discussion

4. Leadership vs. Management Characteristics of Leaders • Set direction • Initiate change • Create something new Characteristics of Managers • Maintain steadiness • Control variance • Keep the status quo

5. Inertia and Change • Organizations are designed to favor stability and predictable outcomes. • Changes that disrupt an organization’s routines and processes compromise its stable and predictable outcomes • Radical change is thus very disruptive, costly and rarely successful (particularly in old and large organizations)

6. Competency Traps • The larger and more certain returns to the exploitation of well honed routines impede the exploration of novel alternatives • Successful innovation and organizational change requires carefully balancing exploitation and exploration

7. A Framework for Positive Change Insert figure 10.3

8. Establish a Positive Climate • Create a positive energy network • Ensure a climate of compassion, forgiveness, and gratitude • Focus attention on strengths and the best self

9. Creating Readiness for Change • Benchmark best practices • Institute symbolic events: an event used to signify a new future. • i.e. Chrysler’s and Iacocca’s ceremony to inspire a ‘new era’ • Create a new language to describe old realities. • i.e. Disney employees are called ‘cast members,’ their uniforms are ‘costumes’

10. Corporate Visions • Visions speak to the heart and the head • They include universal values • They help define the future • They evoke deeper meaning and provide optimism • They must be straight and simple • They should be tied to symbols

11. Generating Commitment to the Vision • Affirm public commitments • Reward small wins • Communicate the vision

12. Institutionalize the Change • Turn students into teachers • Build human capital • Establish metrics, measurements and milestones

13. A Framework for Leading Positive Change Insert figure 10.9

14. Behavioral Guidelines • Establish a climate of positivity by fostering compassion, forgiveness and gratitude • Create readiness for change in others through symbols and language • Articulate passionate vision statements • Generate commitment through communication and small wins • Institutionalize the vision and create irreversible momentum

15. Exercises Corporate vision statements (p. 568) Lee Iacocca and Chrysler case discussion (p. 574) Wisconsin Art and Greetings role play (hand out)

16. Next Steps • Read textbook Appendices A-C