Managing Change March 8, 2012

Agenda Why is Change Important? The Three Laws of Change Creating a “Culture of Change” Five Step Process Eight things successful people do Success Stories - Open discussion

Change can be one of the most difficult challenges that people face. People cling to the known. The future is dark, unknown and frightening. Yet the reality today is change is no longer the exception but the rule!

I believe that “Change” will be the most significant force in determining: Which organizations will grow and prosper Which organizations will be acquired or worse yet—fail!!!!! Who will be successful

Sports - A Warning for American Business Swimming Do you realize that in 2008, the year that Michael Phelps dominated the Olympics, Mark Spitz’s winning times of 1972 wouldn’t even qualify him for the USA Olympic Team. NASCAR / Indy Car Racing Success or failure is measured in seconds NFL – Speed of the game

How do you become and stay a successful manager in a world of constant change?

Change is…. A “Mindset”…….. It’s A “Culture” People get confused… the single most important element of change is not time, but commitment

Understand what your dealing with… Three Laws of Change 1.When change is forced upon you from the outside, it comes twice as fast as expected. 2.Good ideas take twice as long to be accepted and implemented as you think they will. 3.An idea is not unworkable until it fails the second time

Step One – In Creating a “Change Culture” People are more committed to change if they are co-architects of the change… People resist change is they think it’s being forced upon them. People are more committed if they are part of the idea Employees participation in the identification of problems and the development of improvement plans isn’t just a good idea…it’s essential!

Steve Jobs…. Was the visionary Set the standard Created the culture He was the drive behind Apple The app store just passed 25 Billion in downloads!!!

Step Two – In Creating a “Change Culture” You have to inform your people not only what is happening, but why things have to change They need to recognize that the present is not good enough and will not get them to where they want to go… This is a critical step…and one that is most frequently forgotten and ends up being the single reason why change programs fail

Case for Change: we are differentiating to become the #1 Food Company in America

Welcome to the new US Foods

Innovation  Differentiated  Unique  Relevant offering Expertise  Center of expertise integrated with local representation  Deeper category specialization  Greater focus on the kitchen Simplification  IT investments  Supply chain streamlining

Step Three – In Creating a “Change Culture” Good managers give people time to adjust Use that time to fine tune your idea by continuing to gather data You will know when it’s time to push

Step Four – In Creating a “Change Culture” People tend to go in the direction of greatest reward. Monetary - $$$$$$ Quietly or Publically…. Non-Monetary is really the most powerful…. Praise Recognition Positive Feedback

Step Five – In Creating a “Change Culture” Change should be evolutionary not revolutionary in nature. Keep in mind: People are more likely to accept small changes Successful change managers manage change daily Talk about change – all of the time Share success stories Highlight new initiatives

There are three key themes in this book. Their research showed great companies and great managers all have three things in common; All are discipline All use empirical Information All have a healthy level of paranoia “Bullets and Cannon Balls”

Recap…. First - Three Laws of Change 1.When change is forced upon you form the outside it comes twice as fast as expected. 2.Good ideas take twice as long to be accepted and implemented as you think they will. 3.An idea is not unworkable until it fails the second time

Recap…. Creating a “Change Culture” Step #1 – Get your people involved Step #2 – Communicate the case for change Step #3 – Give your people time to adjust Step #4 – Reward your people Step #5 – Change is Evolutionary not Revolutionary Bullets and Cannon Balls

8 Things that Excellent Managers do…. 1.They act. 2.They stay close to the customer. 3.They encourage entrepreneurship. 4.They promote productivity through people. 5.They are hands on. 6.They don’t get involved with things they don’t understand. 7.Organization structures are simple – Staffs are lean. 8.Rigidly adhere to a few key values.

Success Stories…..

Thank you!!!