1. “Are you with me?” Leading in a time of change Malcolm Alder KPMG

2. Agenda 1.Why change? Creating the imperative 2.The change journey 3.A few lessons

3. Agenda 1.Why change? Creating the imperative 2.The change journey 3.A few lessons

4. Sometimes both the change imperative and the vision are obvious… Alison lost 55.2kg

5. Sometimes the change imperative is clear… 0% 10% 20% 30% 40% 50% 60% 15-2425-3435-4445-5455-6465+ Percentage of respondents: first means of accessing news in Germany Source: KPMG Over 45 year olds: -more likely to use newspapers InternetNewspaper

6. But deciding how to respond is far less clear… Source: Future Exploration Network – Future of Media Report, July 2008

7. When to change is a critical decision… Real $ Time Traditional revenue Traditional costs New revenue (net)

8. Agenda 1.Why change? Creating the imperative 2.The change journey 3.A few lessons

9. Change is not a single, linear journey… Future state Current state Organisation change journey Staff change journey LeadingDesigningRealizingEndingExploringBeginning

10. Resistance is inevitable in this journey… Future state Organisation change journey Staff change journey Current state Habit Economic concerns Job security Fear of unknown Selective listening Structural inertia Power status quo Threat to resources Group inertia Insufficient focus

11. What is required to lead this journey? Future state Organisation change journey Staff change journey Current state Create the motivation Share the vision Build political support Manage the transition Sustain momentum

12. The personal change journey can differ greatly… Source: KPMG & UTS Demographic group Work preferences Implications for managing change Baby boomers (born 1946-1961) Hard work brings rewards Hierarchy & its benefits are important Align personal actions to organisation goals Starting to re-balance work & life Demonstrable goal alignment Respect & recognition Increasing flexibility Generation X (born 1962-1976) Personal development is a priority Mixed views on hierarchy Low value on organisational loyalty Personal development is critical & over-rides long-term organisation goals Work-life balance (including workplace flexibility) key Personalisation of roles Communicate in terms of WIFM Increasing flexibility Generation Y (born 1977-1991) Work-life balance is highly important Seek input in planning & development Require instant & continual recognition Highly socially conscious Acquiring broad range of skills is important Ambitious & resent hierarchy on age/experience High process involvement Communication of rationale & broad benefits (including external) Regular feedback Increasing flexibility Common themes Communication Transparency Flexibility

13. Sample Strategies for Employee Engagement 1.Constantly communicate clear goals & vision of future state 2.Meet regularly with employees & openly discuss the changes & rationale 3.Encourage people to discuss fears and concerns in teams 4.Recognise employees know leaders may not have all the answers - but it’s important to have open access & honest feedback 5.Whenever possible, assign roles & responsibilities in line with peoples interests Communication Transparency Flexibility

14. Suggestions for motivating staff 1.Recognise differences 2.Match people to jobs 3.Use goals and make them attainable 4.Link rewards to performance 5.Individualize rewards 6.Be equitable 7.Be approachable 8.Celebrate achievement

15. Key Features of Successful Transformational Change Design around key business drivers Wins emotional & intellectual support Models & reinforces the new way of working Invests heavily in communication Creates experiences that shape future behaviour Aligns all dimensions of management behind the change Key Features Incorporates drivers in the project plan Develop clear engagement / involvement strategies Heavy staff involvement right through Communicate from the start & don’t stop Allow for processing resistance & conflict – it is natural Performance measures probably need to change Implications

16. 8 Signs of Potential Failure 1.Leadership saying one thing and doing another 2.Staff asking “so what?” 3.Short-term perspective 4.Under-resourcing 5.Failure to translate commitment to change at the top to the middle of the organisation 6.Imposing major organisational change on an old, inappropriate structure 7.Over-dependence on others, including consultants 8.Constant search for cookbook solutions

17. What People Pay Attention To: 1.Leader attention, measurement, rewards and controls 2.Leader reaction to critical incidents 3.Leader role modelling, coaching 4.Criteria for recruitment, promotion, retirement and ex-communication 5.Formal and informal socialisation 6.Recurring systems and procedures 7.Organisation design and structure 8.Design of physical space 9.Stories and myths about key people & events 10.Formal statements, charters, codes etc. >75% of behaviour is determined by the first three points Source: Piers Schrieber, thecommunicationmatrix

18. Agenda 1.Why change? Creating the imperative 2.The change journey 3.A few lessons

19. Consider this example of change in media…

20. Recommendations Be led by the audience and always test what you are doing by their experience Don’t make too many easy assumptions eg. staff resistance is inevitable Find champions in the organisation, wherever they are in the hierarchy Specific messages when “going digital” –set up separately until integration will ensure whole is greater than sum of parts –set KPIs appropriate to that business and its maturity –aim to become an “employer of choice” in digital –be even-handed with staff right across the business –take all staff down the path – silo mentality is death –don’t let short-term profit imperative sideline the strategy –study the experience of others who’ve gone before –nurture “controlled innovation” –apply new business disciplines & rigour, especially with acquisitions Walk the walk, all the time – be a true leader

21. Questions