Leading Effective Change Willamette Valley National Association of Purchasing Managers Leading Effective Change May 10, 2011 5/10/11 5/10/11

What’s Your Experience with Change ? What is the most successful organization change you have experienced? What made it good? Least successful? Why? 5/10/11 5/10/11

Factors Driving Change in Your Business Public Policy Changes Affecting Industry Globalization Advancements in Technology Information access Competition Customer demand Natural disasters Desire for internal cultural shift 5/10/11 5/10/11

Change won’t go away, it will only go faster. 3 Guarantees of Change Change won’t go away, it will only go faster. No matter how well planned, Change won’t be trouble-free. Each of us is accountable for making change successful. 5/10/11 5/10/11

Consider the impact on… Individual Team Leader Business 5/10/11 5/10/11

Stages of Change Ending Neutral Beginning Resistance Grieving Denial Trying to hold onto the past Confused Disoriented Uncertain Looking for solutions Concerned about risk Feeling ready for the new way 5/10/11

“People hate change. People love progress.” David Pottruck, Former CEO, Charles Schwab 5/10/11 5/10/11

Why “Leading Effective Change”? Amazingly… 70% of change efforts fail to meet objectives Immediately following an organizational change, productivity drops as much as 3.6 hours a day From Who Killed Change? By Ken Blanchard, et al & The US Department of Labor 5/10/11 5/10/11

What is Effective Change? Change is inevitable, but you can influence the effectiveness of the change! Effective change: Meets the objectives of the initiative Minimizes business disruption and productivity issues Keeps trust relationships in tact Ensures the change actually happens and is sustained 5/10/11 5/10/11

Leading Change is about…… Leadership Responsibilities Examples / Explanations Evaluating what needs to change Understanding when change is needed as prompted from either internal or external demands Articulating the destination Describing what are we changing to, painting a picture Communicating why the change is beneficial Helping others understand the impact of the change and the overall objective Understanding the organization’s readiness for change Knowing if the organization can absorb the change at this time, and what needs to be done to make sure it is successful Recognizing gaps and solutions to gaps Understanding what it will take to get from current to desired state Championing adoption plans Reinforcing and supporting new actions and behaviors along the way 5/10/11 5/10/11

How Do People React To Change? Emotional & Rational Views of The Change Willingness to Embrace Change Level of dissatisfaction with the status quo Desirability of the proposed end state Understanding the practicality of the change Openness To Change From Change the Essence by Richard Beckhard and Wendy Pritchard 5/10/11 5/10/11

How Do People React To Change? Emotional & Rational Views of The Change Willingness to Embrace Change Level of dissatisfaction with the status quo Desirability of the proposed end state Openness To Change Understanding the practicality of the change From Change the Essence by Richard Beckhard and Wendy Pritchard 5/10/11 5/10/11

Testing new concepts/reality Seizing the opportunities The Ownership Curve ownership Gain > engagement Current Day Norm acceptance < Loss shock fear denial anger confusion Letting go Testing new concepts/reality Seizing the opportunities 5/10/11 5/10/11

Uninformed Optimism (the ‘honeymoon period’) Positively Perceived Change Positive Uninformed Optimism (the ‘honeymoon period’) Informed Optimism REACTION Informed Pessimism Negative 5/10/11 5/10/11

People React to Change Based On: What triggered the change Their sense of control over the change How the change will affect their identity How long they think they will be undergoing the change The ripple effect of other changes that start happening Their past experience with change initiatives Effective Change Leadership From: Journal of Managerial Psychology 5/10/11 | Life Technologies Proprietary & Confidential | 1/1/2019 5/10/11

Address Emotional Aspects of Change Understanding How to Influence Reactions Provide Logic Anticipate desire for information & supporting facts Provide appropriate detail and information proactively Logic: the ‘why change’ message needs to make sense Address Emotional Aspects of Change Anticipate responses and underlying causes Use active listening skills Work to mitigate the negative Include and involve Provide choices when possible Build trust Send no misleading communications Stay ahead of rumors Get it done efficiently 5/10/11 5/10/11

Connecting Emotionally Providing Compelling Positions & Evidence The Four Elements of Effective Change Connecting Rationally Finding Common Ground Connecting Emotionally Influence Fundamentals Providing Compelling Positions & Evidence 5/10/11 5/10/11

Re-focus for Growth and Progress Change: Cultural – Ownership & Accountability MANAGED CHANGE Morale Productivity Commitment Minimum acceptable UNMANAGED CHANGE 5/10/11 5/10/11

Guidelines for Effectively Leading Change Prepare for the change before it occurs Provide a rationale for the change Provide a clear description of the change and a picture of success Find and remove obstacles before the change occurs Allow time for people to accept the change Involve affected people in planning the change Provide motivation of people to embrace the change Find and utilize resources and people that support the change Allow the change to be shaped by on-going feedback Provide clear implementation objectives for all people involved in the change Continually monitor the change and adjust plan/resource levels as needed Reinforce the new behaviors/processes/etc. through formal and informal methods View leading others through change as an on-going process 5/10/11 5/10/11

QUESTIONS? 5/10/11 5/10/11