Dennis Hightower Case The Situation

1. Dennis Hightower CaseThe Situation • Disney Europe was successful but corporate HQ thought they could be more successful • Euro community changing • Dennis Hightower selected • Hightower’s background • Military (Europe) • Consulting

2. The Situation (contd.) • Disney wants to increase profitability of their European operation • Move to consolidate/unify country operations • Problem is to grow an already profitable business

3. Burbank’s Perspective • Europe a “golden opportunity” • Good past performance but EEC opens new opportunities • European theme park will open doors for consumer items • Decision to create Paris HQ and hire a European head

4. Country Manager’s Perspective • Proud of past success • New level of control unknown before • Possible perception of a “condemnation of previous performance” • Feeling “sandbagged” having opened up to Hightower when he interviewed them • Ostensible approval of Hightower’s selection by three

5. Hightower’s Perspective • “I’m the boss they don’t want” • Burbank wants me but has high expectations • Somewhat embarrassed by having interviewed as a consultant & now coming as boss • “I’m stuck in the middle”

6. Potential Barriers to Change • Stereotypes of Americans vs Europeans • Cultural differences • National differences • Personal status issues • Tenure • Relationship with the Disney family

7. Hightower’s Task • Produce a strategic plan in 90 days • To do that he must: • Learn the territory • Obtain “buy-in” from the country managers • Develop and write the plan • While overcoming the barriers

8. Three Approaches • Just do it • Collective approach with the CMs • Individual approach with the CMs • Combination

9. Just Do It • Easiest and fastest • But least likely to produce “buy-in” and cooperation in implementation • And he’s got a lot to learn about the territory

10. Collective Approach • Convene a meeting with all the CMs • Pros • Set tone & agenda at once with no rumors • All on “same page” & “one for all/all for one • Cons • Might become an “Us vs Him” situation • He lacks knowledge and is an outsider

11. Individual Approach • Meet with each CM individually • Pros • Can question and learn • Can “pollinate” with his ideas • Forge personal connections • Cons • Time-consuming & keeps him away from HQ • Raises the issue of who/where to start

12. Combination • Question of time • Could dilute the positives of either approach

13. The Older CMs - Keep? • Temptation to eliminate the barriers & get young blood • A new broom sweeps clean • Situational approach called for • Never throw the baby out with the bath

14. What he did • Non-stop tour of the territory spending 4/5 days with each CM by seniority • Learned the territory/built personal credibility • Developed his strategy • Including at least one or two of their ideas • Then held general meeting presenting their “jointly developed” strategy • Each CM saw himself as a Change Agent

15. The Country Managers • Over the next year • replaced four CMs based on adaptability • 3 of the over 60 crowd remained • French Mgr delicately “elevated” to senior consultant role • In his first year, consumer products doubled bottom line

16. Lessons • Perspectives - we all see through different eyes • Constant need to balance perspectives • Consider the feelings of all • One way to overcome resistance is to co-opt it • Make resisters into change agents

17. Roles in Change • Jick - four roles to perform change • Sponsor - suggesting or demanding the change • Agent - the person actually ordering change & making it happen • Target - recipient of the change • Advocate - cheerleaders/promoters

18. Roles in Change • Dalziel & Schoonover • Inventor - big picture modeler • Entrepreneur - identifies new possibilities • Integrator - forges alliances to gain acceptance • Expert - provides technical knowledge & skill • Manager - delegates and runs others • Sponsor - ensures support and resources

19. The Sponsor’s Role • Too often adopt the “spinning top” approach • Effective sponsors remain involved • They initiate • They follow • They reinforce • Until agents become sponsors • And even the targets become sponsors

20. The Change Agent • Ideally becomes a sponsor • Establishes close relationship with targets • dilemma of change that really hurts people • Must be a Trainer/Teacher • Great human sensitivity called for

22. History of Change Agent Concept • Term first referred to external help • The “hired gun” • Has evolved to an internal function • Either integral to normal responsibilities • Or as a “project” • Change teams or change agent positions

23. Pros & Cons • Pros • Internal agents know the territory & culture • Communication is usually easier/better • Trust is usually there • Cons • May be difficult to take the hard decisions • Time limits when you have a “regular job” too • “Prophet without honor” syndrome

24. Cascading Change - the Ideal • Begins with sponsor’s convincing & attractive vision which includes appropriate sense of urgency • Results in buy-in at all levels • The good and the bad are shared • Everyone sees themselves as change agents

25. Northwest Airlines Case • Situation • Volatile environment of airline industry • Intense competition at multiple levels • Regulation/deregulation issues • Hugh capital investments and tight margins • Rothmeir takes over in ‘85 with Northwest is poor shape.

26. Rothmeir’s Vision? • Better performance through • Better customer service • Increased efficiency & economic operation • Employee participation

27. Dr. Ken Myers’ Role • Double team/ good cop-bad cop approach • Rothmeir to be Mr. Outside • Myers Mr. Inside • Is this approach likely to be effective?

28. Pros and Cons • Pros • One makes the hard decisions • The other provides the soft shoulder • Cons • Mixing “oil and water”? • Trust?

29. Environmental Changes • Acquisition of Republic • Impact? • The Crash at Detroit • Impact? • Bidding war over takeover by Al Checchi

30. Lessons • Even change agents susceptible to change • Need to “bend their knees” • Pros and cons of internal vs external change agents • It takes more than one or two agents to effect change

31. Microswitch Case • The situation • Microswitch attempting change to better quality and customer satisfaction • Three middle managers singled out as change agents • Transitional pace

32. Problems of Transitional Change • Measured pace easier to cope with • No sense of urgency can be deleterious

33. The Cast • Alvarez - new GM • Playing the “sponsor” role • Rick Rowe - former renegade/bad cowboy • Ellis Stewart - consummate trainer & optimist • Deb Massof - “outsider” from Honeywell, skeptical but enthusiastic

34. Mid-Term Report Card? • What’s been achieved so far? • Is this adequate? • Has something gone wrong? • How do the change agents feel? • Threats to the change effort at this point?

35. Change Agent’s Frustration • A sign of failure? • A normal part of being in the middle • Burnout and self-doubt possible • Constant questions of support & empowerment • Can appear an endless process when you’re in the middle • Article on “Converting Middle Powerlessness”

36. Empowerment vs Control • Alvarez ultimately responsible to the corp. • But can’t get the job done without giving up some control to others • Delicate balancing act • Finding those you can trust • Giving them the power they need • Using the vision as control

37. Lessons • The problem of being in the “middle” • Need for delicately balanced empowerment • Relationship between sponsors and agents • The ups and downs of all change efforts