1. Leading Effective Change
Willamette Valley
National Association of Purchasing Managers
Leading Effective Change
May 10, 2011
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2. What’s Your Experience with Change ?
What is the most successful organization change you have experienced? What made it good?
Least successful? Why?
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3. 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
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4. 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.
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5. Consider the impact on…
Individual Team Leader Business
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6. 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
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7. “People hate change. People love progress.”
David Pottruck, Former CEO, Charles Schwab
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8. 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
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9. 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
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10. 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
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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
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12. 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
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13. 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
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14. Uninformed Optimism (the ‘honeymoon period’)
Positively Perceived Change
Positive
Uninformed Optimism (the ‘honeymoon period’)
Informed Optimism
REACTION
Informed Pessimism
Negative
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15. 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
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16. 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
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17. 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
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18. Re-focus for Growth and Progress
Change: Cultural – Ownership & Accountability
MANAGED CHANGE
Morale
Productivity
Commitment
Minimum acceptable
UNMANAGED CHANGE
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19. 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
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20. QUESTIONS?
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