1. RHR International Company
CSULA
Managing Change
Welcome.
Introductions.
Expectations.
Hopes.
Concerns.
April 13, 2000
Peter Levin, MBA, Ph.D.
RHR International Company

2. “It’s not so much that we’re afraid of change, or so in love with the old ways, but it’s the place in between that we fear… it’s like being between trapezes. It’s Linus when his blanket is in the dryer. There’s nothing to hold on to.”
- M. Ferguson

3. Part I: Organizational Issues and change
Class agenda
Part I: Organizational Issues and change
Part II: The nature of change.
Part III: Leading others through change.
Objectives:
Understanding change as a process.
Learn about & practice using some tools for managing change.
Be better equipped to manage change, both for/in yourself & for/in others whom you manage/lead, directly or indirectly.
Gain an understanding of the dynamics of change.
Develop yourself as a leader of change.
Build skills needed to effectively manage change.

4. Part I: Organizational Issues
Characteristics of The Adaptive Organization
The Prerequisites for Change
Characteristics of Effective Change Sponsors
What Effective Change Leaders Need to Do
The Internal Players in the Change Process and their Roles
The Role of Outside Consultants

5. The Adaptive Organization
Willingness to make change
Identifies problems quickly
Internal and external looking
Implements solutions rapidly
Focus on innovation
Upward communication
Trust
Risk taking is rewarded
Candidness
Open to feedback
Enthusiasm
Long-term focus
Skill Development
Learning Organization

6. Prerequisites for Change
Vision: Develop, articulate and communicate a shared vision of the desired change
Need: A compelling need has been developed and is shared
Means: The practical means to achieve vision: planned, developed and implemented
Rewards: Aligned to encourage appropriate behavior compatible with vision and change
Feedback: Given Frequently

7. An Effective Change Sponsor Must Have
Power: to legitimize change
Pain: Personal Stake
Vision: Total in-depth view
Public/Private Role: Commitment and ability to support change publicly/ meet privately with agents
Performance Management: Ability to reward/confront
Sacrifice: Pursue change despite personal price

8. What Effective Change Leaders Do
Embrace change when it’s needed
Develop a vision for change
Communicate effectively
Shake things up by challenging status quo and encouraging others to do the same
Stay Actively Involved by walking the walk and being visible about it.
Direct, Review Implementation of change - continued participation - never done attitude. Be in position to notice and coach.

9. Roles: The Change Players
Sponsors: Senior management leaders - the driving force of change - must walk the walk.
Advocates: Allies of leaders, deploy the vision - communicate - involve - sell - MOTIVATE
Agents: Influence sponsors’ commitment, target resistance, measure readiness, assess existing people/structures
Targets: Everyone in organization - develop, train, reinforce, support

10. Role of Consultants
Assessment of: management, key players, barriers, opportunities
Coach/Develop/Train: help people adopt new behavior
Plan: Assist in process/knowledge
Values / Vision: Facilitate their development
Redesign Organizational Factors: Rewards, Reports, Re-engineer
Communications: Facilitate the process
Project Management Assistance

11. Part II: The Nature of Change
Introduction
Change in business is not new — it’s just accelerating due to…
New technology.
Global competition.
Growth & increased complexity.
The result: Change or die
After making the slide point, you may add this:
Change was not “invented” in the 20th century but it’s received immense attention because it is the most visible feature of business today.
Change has impacted virtually every business, industry, & profession including non-profits & governmental entities.

12. What to expect from change
Sense of loss, confusion.
Mistrust and a “me” focus.
Fear of letting go of that which led to success in the past.
People hold onto & value the past.
High uncertainty, low stability, high emotional stress
Perceived high levels of inconsistency.
High energy — often undirected.
Control becomes a major issue.
Conflict increases — especially between groups.
I know that, for most of you, this is a review of things you already know.
No matter how positive, promising or proactive the change is, expect a sense of loss.
No matter how competent & committed you or your team members are, expect a sense of confusion.
No matter how loyal team members are, expect loss & confusion to cause some degree of mistrust and a “me” focus.
No matter how much you believe new behavior is required, expect fear of trying new ways.
To what extent have you seen this going on around us?
Ask for 1-2 examples (don’t need to use names).

13. Individual prerequisites for change to occur
Why should I change?
What’s in it for me?
Thinking & understanding
Emotional/ Motivational
Heart
Head
Behavioral
What are the psychological aspects of change?
Areas for focus in helping people change.
There are other questions that characterize these arenas.
These are for example.
Hands
What do I do differently?

14. Equals Effective Change Altering Mind-set Harnessing Motivation
Change management
The Effective Management of Change Involves An Integrated Approach In Each Of These Three Arenas
Effective Change
Equals
Altering
Mind-set
Harnessing
Motivation
Shaping
Behavior
The effective management of change involves an integrated approach in each of these 3 areas:
Head.
Heart.
Hands.

15. Stages of change management
“Coming to Grips with the Problem”
“Working through the Change”
“Attaining and Sustaining Improvement”
Maybe the first stage = denial.
Emphasize that change is a process with different stages. Give an example from Retail Simplification (SOP) showing the different stages the different groups may be at — at any one time.

16. Strategy/change implementation
Arenas of Change
Mind-set
(Thinking/
Understanding)
Breaking the Conventional Mind-set and Generating a Picture of the Future
Dealing with Reactions to Loss and Creating the Will to Succeed
Motivation
(Emotional/ Intuitive Dynamics)
Changing Behavior and Developing Competency and Capability
Behavior
(Capability)
Stages of Change Management 1.
“Coming to
Grips with
the Problem” 2.
“Working
through the
Change”
Now, put them together: The three arenas across the top and the stages along the sides.
You need to deal with people where they are, in leading change.
So, assessment/diagnosing the issues becomes key!
People, at any one time, will fall into categories:
Resist it.
Watch it.
Make it happen.
Need to find out where someone is in order to effect change. 3.
“Attaining and
Sustaining
Improvement”

17. Part III: Leading Others through Change
1. Identify (roughly) the stage person/group is in.
2. Determine obstacles/arenas:
a. Head
b. Heart
c. Hands
d. All of the above
3. Use tools to move through obstacles.
May need several simultaneously.
4. Recognize and acknowledge steps forward.
5. Cycle back to Step 1.
1. Define what would be realistic, incremental movement forward, based on where they are currently (Jennifer’s stepwise ladder approach).
2. We’ll talk about techniques for recognizing the nature of roadblocks. It doesn’t have to be an exact science, but useful, for examples…
3. (Example continued….) When you’ve presented all relevant evidence/facts and the person shows a depth of understanding, yet he or she still strangely resists--then you may be dealing with an emotional (Heart) roadblock. All the logical, rational discussions & good teaching you can apply, won’t help. Have to deal with it using tools appropriate for the emotional arena.
4. Recognize progress. Important especially for you — to sustain yourself. Important to point it out to others who may be frustrated with a person or group’s (lack of) progress. (They may be expecting too much too fast.) Warning: never gloat or say “see, I told you so!”

18. Understanding what stage of change they’re in
Questions
Stage
Do they see a need for change?
How uncomfortable are they with the status quo?
Do they have any sense of urgency about changing?
Are they struggling with making the change work?
Are they looking for ways to make it work?
Are they communicating with others involved in the change, to get salutations to problems, share Best Practices, etc.
Are they looking for ways to leverage the change? To enhance it?
One: Coming to grips with the problem.
Two: Working through the change.
Three: Attaining & sustaining improvement.
Again, no need to be scientific about it. It’s useful, however, to identify -- roughly -- where the person or group is, so your approach is appropriate.

19. The technology of leading sustainable change
Arenas of Change
Mind-set
(Thinking/
Understanding)
Motivation
(Emotional/ Intuitive Dynamics)
Behavior
(Capability)
Stages of Change Management
Gather data to convince you/others that old way no longer works.
Confront myths, assumptions, & beliefs that prevent seeing problem & changing.
Increase dissatisfaction with old ways.
Increase confidence that change is achievable.
Outline costs of old way & benefits of new way.
Form team to gather data.
Have management talk about data & need for change.
Assess individual readiness to change.
Identify specific behaviors to change.
Stage One:
“Coming to Grips with
the Problem”
Now, put them together: The three arenas across the top and the stages along the sides.
You need to deal with people where they are, in leading change.
So, assessment/diagnosing the issues becomes key!
People, at any one time, will fall into categories:
Resist it.
Watch it.
Make it happen.
Need to find out where someone is in order to effect change.

20. The technology of leading sustainable change
Arenas of Change
Mind-set
(Thinking/
Understanding)
Motivation
(Emotional/ Intuitive Dynamics)
Behavior
(Capability)
Stages of Change Management
Create a vision of the future & articulate the new mind-set.
Help people understand both the big picture & the details.
Communicate the purpose & benefits broadly.
Help people make the link between solving today’s issues & the new plan.
Hold “reality check” meetings to work through the threats, losses, and resistance.
Work through the leaders’ emotion/ resistance first.
Use individual gain/loss analysis as as tool.
Discuss how to manage stress. Be supportive of one another.
Develop a new profile of leadership success.
Evaluate the top levels of management in stores.
Involve employees in building change plans.
Reward successes; expect & learn from mistakes.
Drive individual behavior change.
Stage Two:
“Working through the Change”
Now, put them together: The three arenas across the top and the stages along the sides.
You need to deal with people where they are, in leading change.
So, assessment/diagnosing the issues becomes key!
People, at any one time, will fall into categories:
Resist it.
Watch it.
Make it happen.
Need to find out where someone is in order to effect change.

21. The technology of leading sustainable change
Arenas of Change
Mind-set
(Thinking/
Understanding)
Motivation
(Emotional/ Intuitive Dynamics)
Behavior
(Capability)
Stages of Change Management
Continually update vision of desired future & teamwork.
Create forum for feedback & continuous learning.
Continue to articulate why’s & benefits.
Celebrate & reward successes.
Deal with people who will not change.
Establish two-way communication.
Involve people for buy-in.
Continue to support each other in managing stress & change.
Make sure systems & rewards reinforce desired behaviors.
Train incoming people in the new behaviors.
Coach, give feedback, & reinforce new behavior.
Deal with people who cannot change.
Stage Three:
“Attaining & Sustaining Improvement”
Now, put them together: The three arenas across the top and the stages along the sides.
You need to deal with people where they are, in leading change.
So, assessment/diagnosing the issues becomes key!
People, at any one time, will fall into categories:
Resist it.
Watch it.
Make it happen.
Need to find out where someone is in order to effect change.

22. Addressing mind-set Working with Mind-Set
Spkr Notes: 1. 2. 3. 4. 5.
Learn it thoroughly yourself.
Build relationships.
Explain the purpose of change. Help them understand & teach concept.
Articulate the benefits.
Link daily activities to their higher purpose & benefits.
Repetition: Provide frequent & consistent communication about change & what’s needed.
Paint a picture of the successful future using best practices.
1. Big picture and details.
2. If people don’t know/trust you, they will resist your advice.
3. People need to know why change is needed. The more compelling the reason the better (WIIFM).
4. Articulate the benefits for the individual (WIIFM) and for the company.
5. E.g., when you make “saves” in Operations, you’re helping customers get product back sooner & help company save money.

23. Working with Behaviors
Addressing behaviors
Spkr Notes: 1. 2. 3. 4. 5.
Model desired behaviors & attitudes.
Clearly define desired behaviors & behaviors that need to change.
Give feedback frequently to reinforce changed behavior & correct wrong behavior.
Coach & teach desired behavior.
1. People need to understand conceptually what kind of leadership will be required of them. Helpful to do this as an exercise with them, as we did in Part II.
2. Leader behaviors that don’t match the message really undermine change.
3. We need to be specific about what behaviors need to change.
4. This is good coaching. Make sure to use as much or more positive reinforcement as correctional feedback. Ask them first what they’re supposed to be doing.
5. Coach & teach to help people learn. Understand where they are coming from. Don’t just tell them what to do; it won’t stick! Be a detective/don’t give directives! (Help them learn to use questions to guide the “student.”

24. Working with Behaviors
Addressing behaviors
Speaker Notes: 1. 2. 3. 4.
Identify training needs & communicate upwards.
Create goals to work toward: a vision of success.
Help people create specific, concrete behavior-change plans as needed.
Communicate in multiple forms.
1. If you see a global need that is beyond your ability to coach, communicate to Training.
2. Paint a tangible picture of individual, team, store, company success. People need a star to shoot for.
3. Use the technology learned in Section II. Make sure you break desired goals into concrete, achievable steps.
4. Use formal meetings, informal groups, individual conversations. The change needs to occupy a central place in leaders’ daily activities.

25. Summary
You have to be comfortable with the change before you can get others to change.
People can’t (or don’t want to) change when they don’t understand.
What, why, how, WIIFM.
You can’t intervene until you understand the situation.
Resistance is part of the change process.
Work with it.
Address change at all three levels to be successful.
Sustainable change occurs in steps.
Define your priorities. Don’t take on too much at once.
“A good physician doesn’t just give you a drug before finding out what’s wrong, right?”

26. A stepped approach to change
Success
Explain the diagram.
Example: learning to run 5 miles in 40 minutes.
You start with  mile 10 minute pace, then maybe increase every few days.
If you went out and ran 5 miles now, you’d probably quit the next day for soreness, and hate running.
If you build up (or cut down) slowly, the behavior is more likely to stick.
A journey of a thousand miles occurs one step at a time.
Start X