Change Management Prof. Steve Phelan Lecture 15

Today LMZ Chs  OD in the entrepreneurial firm (1997)  OD in turnaround situations (1998) Downsizing Cases  Managing to communicate (1993)  Mark Margolis & Emilio Kornau  Broadway Brokers Simulation

OD in entrepreneurial firms Basic message  Can’t ignore governance issues and family dynamics Why? ‘Do you want to be king or do you want to be rich?’ issue  Different stages of firms Startup, growth, & succession stages – different issues  OD interventions almost call for a shrink Author even advocates clinical approach How much is OD beholden to clinical psychology?

OD in turnaround situation Basic message  OD is not much use in crisis Takes too long and costs too much  It may be useful in decline stage or in recovery from turnaround  Author claims OD was instrumental to several well- known turnarounds Admits it is difficult to know how useful it really was Begs question of what is OD –Vision creation, values statement, decentralization of decision making, new strategic planning process, team building, survivor counseling, outplacement services, training, reeducation

Managing to communicate Best practices  CEO as communications champion Philosophical and behavioral commitments, visible  Match between words and actions  Commitment to two-way communication Room for improvement in most companies  Emphasis on face-to-face communication Communicate promptly in as many forms as possible  Shared responsibility for employee comms Requires training and accountability  The bad news/good news ratio – don’t censor (?)  Knowing customers, clients, and audiences What do they want, how do they want it

Strategic points Five consensus items  Communicate complete answers Who, what, why, when, where and how  Timeliness is vital  Communicate continuously  Link the ‘big picture’ with the ‘little picture’  Don’t dictate the way people should feel about the news  Budget and reporting lines of communications departments don’t seem to have much effect on communications outcomes – commitment does!

Mark Margolis/Emilio Kornau Looks like a black and white situation  Mark – GOOD!  Emilio – BAD! What can we learn from the two cases? What could Emilio have done differently? What can Emilio do now? What could Mark do differently?

Broadway Brokers Choose your role  You are all members of top 2 layers– I am CEO  COO, CIO, CFO, HR, Broking Operations, Research, International, PR, Marketing, Strategy, Back office, Internal communications, rest pick a boss As a group, create a process for dealing with the suggestions by dividing tasks among the group As a group, create a consensus change strategy (that also incorporates the suggestions)  Do this at once  Start planning to do  Depends on how it is done  Waste of effort  No! Don’t do this