Ledelse og forandring Managing Culture Change Paul EVANS The Shell Chaired Professor of Human Resources & Organisational Development, Emeritus INSEAD Fontainebleau, Singapore & Abu Dhabi KL’s Ledertraef, Kolding, 10 September 2014

Paul Evans Overview Two introductory remarks … 7 lessons for leaders about managing culture change

Paul Evans How do countries score on Talent Competitiveness* ? * See Denmark is #3 in the world (out of 104 countries)

Paul Evans Verden har forandret sig Welcome to the 21C world … … where competing, winning and even keeping your nose above the water means BOTH-AND rather than EITHER-OR Welcome to the world of Dualities

Paul Evans Michael Porter got it wrong Strategy = a choice on how you are going to compete Either MARKET DIFFERENTIATION or LOW COST But firms were finding ways of doing things BETTER & CHEAPER & FASTER

Paul Evans Faa mere ud af det du har

Paul Evans 7 LESSONS

Paul Evans How about CAP? Change Acceleration Process

Paul Evans Effectiveness The Quality of the analysis Acceptance of the decisions

Paul Evans Current State Transition State Improved State Leading Change Changing Systems & Structures Shaping A Vision Mobilizing Commitment Making Change Last Monitoring Progress GE’s Change Acceleration Framework Proprietary to GE; used with permission Proprietary to GE; used with permission Creating A Shared Need

Paul Evans Spend almost as much time managing the PROCESS of change as you do in managing the CONTENT of change NB: You can delegate some of the Content challenges, but you cannot delegate the Process challenges Change LESSON # 1:

Paul Evans There is too much change … … and not enough CONTINUITY in change Change LESSON # 2:

Paul Evans McKinsey study on why change programs don't produce change  Unclear or wrong goals or vision 25%  Insufficient communication and motivation 35%  Inability to sustain change and implementation 40%

Paul Evans How do you provide continuity in change? Provided by ambitious, clear, understood strategic aspirations !

Paul EvansHEADHEART HANDS People must be able to understand the vision. Clear Clear Concrete Concrete People must be inspired by the the vision. Compelling Compelling Challenging Challenging People must do something because of the vision. Capabilities Capabilities Course of action Course of action Shared Strategic Aspiration or Vision: What Makes a Good One?

Paul Evans Make sure that you agree on an ambitious strategic aspiration … … and that this appeals to the Head, the Heart, and the Hands Change LESSON # 3:

Paul Evans “People don’t resist change. They resist being changed.” Change LESSON # 4:

Paul Evans Threat Opportunity What happens if we DON’T change??? What happens if we DO change?!! Short Term Long Term

Paul Evans Keep the “tipping point” in mind Innovators Early Adopters Early Majority Late Majority Resisters

Paul Evans Innovators Quick Wins Critical Mass Search for Champions The Silent Majority Bandwagon Effect Holdouts Push to sidelines Influence High Low Resistance Low High If the necessary initial support is not present, then you may need to rethink the change and its strategic aspirations A Strategy for Change

Paul Evans Focus early on visible quick wins through the innovators & champions. Remember that the “silent majority” will be more influenced by what their friends are saying than by what you are saying. Change LESSON # 5:

Paul Evans Desired Behavior Change Time “Words” Behaviors The S-curve dynamics of transformational change

Paul Evans Low No High Yes CAPABLE? WILLING? Empowering the champions Train, coach Outplace Sideline Create new organizations ???

Paul Evans King Louis Louis V. Gerstner Jr.

Paul Evans Develop a pipeline of leaders with the competences that match your strategic aspirations Change LESSON # 6:

Paul Evans How do you develop people? How do you develop leaders? Back to the basics …

Paul Evans Experience Training Education Coaching Support Responsibility CHALLENGE! Learning from mistakes Providing feedback Relationship with a mentor

Paul Evans PROVIDING CHALLENGE MANAGING THE RISKS

Paul Evans Build teamwork throughout the organization. Redefine jobs to reflect teamwork oriented to borgerne. Change LESSON # 7:

Paul Evans The Operational Role The Development/ Project Role 70% 30% Strategy, satisfaction of the needs of citizens, development projects (EXTERNAL) INTERNAL development (e.g. cost reduction; digitalization) Leverage and linkage across the organization (HORIZONTAL)  Uncompromising attention to  getting the right people in the right  places at the right times Clarity of objectives and areas of accountability Coaching and developing people What gets you fired … and what gets you promoted

Paul Evans A Summary 1.Spend time as a management team managing the PROCESS 2&3. Continuity in change in provided by an ambitious, clear, communicated STRATEGIC ASPIRATION 4. People don’t resist change; they resist being changed 5. Focus on visible quick wins through innovators and champions. The “silent majority” will be convinced by their friends 6.Develop a pipeline of leaders with competences that match your strategic aspirations. Use Challenge + Coaching. 7.Build teamwork throughout the organization – Build the necessary “split egg” mentality.

Paul Evans