1. ASQ Meeting A Positive Approach to Change November 8, 2005 Ann C Manning ann@anncmanning.com 612-870-8454

2. The Results Pyramid SM

3. Change Model: Diagnostic Vision SkillsIncentivesResourcesAction Plan Imple- mentation Result XXXXXXChange NOXXXXXConfusion XNOXXXXAnxiety XXNOXXXSlow Change XXXNOXXExtreme frustration XXXXNOXFalse starts XXXXXNONo activity

4. Cultural Transition R1R1 A1A1 B1B1 E1E1 C1C1 Desired/Needed Culture R2R2 A2A2 B2B2 E2E2 C2C2 Current Culture

5. Identifying Your R 1 to R 2 Shift A. B. C. D. A B. C. D. R 1 ResultsR 2 Results TO Significance Score ____

6. Scoring Your Shift In Results 1. Difficulty12345678910 No real changeSignificantly higher in difficultythan past results 2. Direction12345678910 Same directionSignificantly different direction 3. Deployment12345678910 No majorSignificant re-deployment deployment requiredor deployment of people and/or resources required 4. Development12345678910 Current organizationalProcess, systems, skills and/ deployment requiredor structure must radically change

7. Your Stop/Start/Continue Analysis 1. STOP_______________________________________________ _______________________________________________ ___________________________________________________________ START_______________________________________________ _______________________________________________ ___________________________________________________________ CONTINUE_______________________________________________ _______________________________________________ 2. STOP_______________________________________________ _______________________________________________ ___________________________________________________________ START_______________________________________________ _______________________________________________ ___________________________________________________________ CONTINUE_______________________________________________ _______________________________________________ RESULTSACTIONS

8. One Company’s Stop/Start/Continue Analysis R 2 Results  Launch two new products and achieve targeted market penetration on schedule  Maintain market share on existing products  Double the number of employees STOP START CONTINUE o Acting as if Japan and the Ministry of Health are the same as the United States and the Food and Drug Administration o Emphasizing individual rather than team play o Pointing out people’s weaknesses instead of their strengths o Blaming and finger-pointing o Allowing each department to “do its own thing” o Defining and communicating a long-term strategy o Investing more in developing people o Improving more in developing people o Improving communication both between the U.S. headquarters and Japan, and within the Japanese operations o Encouraging more open dialogue between management levels o Generating greater teamwork o Producing excellent products o Enabling people to have freedom and to control their own work o Having a simple decision-making process o Mixing nationalities: Westerners emphasize logic and Japanese emphasize relationships, which produces good balance o Hiring people with strong skills and high intelligence Company #2JAPANESE AFFLIATE OF A GLOBAL HEALTH CARE COMPANY A 2 ACTIONS

9. Levels of Belief Level One BELIEF Level Two BELIEF Level Three BELIEF Relatively easy to change on better information. Not easily changed and requires significant experience to shift. Almost unchangeable, requires significant life experience to alter.

10. A Shift in Belief in Your Organization List the RESULT_______________________________ List the current BELIEF________________________________ List the desired BELIEF________________________________ that is held would improve the ability to achieve the result

11. C 1 CULTURE B 1 BELIEF A 1 ACTIONS

12. C 2 CULTURE B 2 BELIEF A 2 ACTIONS

13. Working With The Experience Types A key B 2 belief you want to create: Experience TypeExperiences that you could create to instill the B2 belief Type One A meaningful event leading to immediate insight; needs no interpretation. Type Two An experience which needs to be interpreted in order to form the desired beliefs. Type Three Experiences that will not have an impact on prevailing beliefs because they are perceived as insignificant. Type Four Experiences that will always be misinterpreted regardless of the amount or quality of the interpretation.

14. Maintaining Alignment Around the Culture Change The Alignment Checkpoints Are we aligned around the urgency of the need to shift the way we think and act? Are we aligned around our cultural beliefs? Are we aligned around the actions we expect people to take? Are we aligned around the experience we are creating as a team in leading the change? Are we aligned around the personal commitment each of us needs to make in creating new experiences for the organization. Are we aligned around how we agreed to hold ourselves accountable for the change?

15. Resource n Based on the book, Journey to the Emerald City by Roger Connors and Tom Smith, Prentice Hall Press, 1999 –Highly recommended book for planning and implementing culture change. –Also The Oz Principle, developing a culture of accountability. n Slide #3 Author unknown