Transcript How to Handle Change in Your Organisation

Leading Change &
Organisational Transitions
Presentation
for
University of South Australia
by
Bill Synnot
at
August 30, 2007
Topics to be Covered

Background to change management

Framework as a road map to create a peakperformance, innovative & agile organisation

How to turn around an unsuccessful change process
and/or keep a successful organisation on track
Topics cont.

Address the challenge of implanting the change
process permanently into your organisation’s
culture (including behavioural change)

Some useful change implementation tools
Peak-Performance, Innovative, Agile, Resilient and Robust
Organisation
(6 Characteristics)
1 Customer–focused
2 Concentrating more on leadership & less on
management/administration
3 Entrepreneurial (based on innovation)
4 People–orientated
5 Tightly Focused on “decisive opportunities”
6 Resilient
(for more details see article on web site: www.billsynnotandassociates.com.au)
Six Key Criteria for an Enduring and Successful Organisation
(Based on 30 high profile & successful firms over 100 years old)
1
2
3
4
5
6
Consistent set of values
Willingness to change
People are the most important assets
Conservatism in financing
Actively fosters a learning environment
Organising for continuity, ie succession planning
Change
means experiencing something different and/or doing something
differently
Usually with the basic aim of
“…Increasing the organisation’s capability to
adapt to and adopt new ways of doing
business…”
“…organisation today - has to be designed for
change as the norm and to create change rather
than react to it …”
Peter Drucker, 2001
“…it is not the strongest of the species that survives,
nor the most intelligent; it is the one that is the
most adaptable to change…”
Charles Darwin as quoted in Harvard Business Review, 1998
“. . .you can resist change and win one or more
battles, but you will lose the war...”
(quotes cont.)
“…change does not come from a slogan or a speech.
It happens because you put the right people in
place to make it happen…”
Jack Welch as quoted in Jack Welch et al, 2001
“…An organisation is a web of interconnections; a
change in one area can throw a different part of
the organisation off balance. Managing these
ripple effects and the unexpected outcomes is the
challenge of change…”
Harvard Business Review, 1998
(quotes cont.)
“…The real voyage of discovery consists not in
seeking new lands, but in seeing with new eyes…”
Marcel Proust as quoted by David Osborne in “Re-Inventing Government”, 1993
“…Given the choice between changing and
proving that change is not necessary, most people
will get busy on the proof…”
John Kenneth Galbraith quoted in Australian Financial Review, 1999
(quotes cont.)
“…When the rate of change inside an institution
becomes slower than the rate of change outside,
the end is in sight …”
Jack Welch, 2001
“…it has become a truism that the only constant is
change; with one change overlapping with
another, the time-frame to accomplish change is
shortening…”
Harvard Business Review, 1998
(quotes cont.)
“…the question that faces the strategic decisionmaker is not what his/her organization should be
tomorrow. It is what do we have to do today to be
ready for an uncertain tomorrow…”
Peter Drucker as quoted in AFR Boss, 2000
“…Change programs often seem like they’re
being shot out of cannons. They start with a
bang, then quickly fall flat…”
Harvard Business Review, 1998
(quotes cont.)
“…Few goals are more challenging to achieve than
significant change in adult human beings…”
Howard Gardner, 2006
Change involves
“… combining “inner shifts” in people’s values,
aspirations and behaviours with “outer shifts” in
processes, strategies, practices and systems…...It is
not enough to change strategies, structures, and
systems, unless the thinking that produced those
strategies, structures and the systems also
changes…”
Peter Senge, 1999
Levels of Change
Personal
Group
Organisational
Environmental
NB:
There is overlap & interaction between the different levels
Competition comes from
“where you least expect it”
In a survey it was found that
“…industry newcomers – not the traditional
competitors – had taken the best advantage of
change over the past ten years...…by profoundly
changing the rules of the game…”
Gary Hamel, 1997
eg Murdoch, Branson, Gates, etc
“…an outmoded belief, assumption, practice,
policy, system or strategy, generally invisible, that
inhibits change and prevents resources being used
for new opportunities…”
Robert Kriegel et al., 1996
Remember:
“…Over 50% of technological breakthroughs
that influence an industry or organisation come
from outside that industry…”
Peter Drucker, 2001
Point of Diminishing Returns
This involves organisations:
- trying to wring the last efficiency out of
business models that have reached their useby date;
- whose strategies that are indistinguishable
from their competitors
Why Do Some
Organisational Transition
Efforts Fail ?
In many organisational transitions, the gap between expectations and
achievements is very large
The J-Curve
What We Expect
Desired
Organization’s
Performance
Status
Quo
What Actually
Happens
Change
Initiative
VOD
Time
Most Common Management Error
“…generally social and behavioural causes frustrate
change initiatives rather than technical
problems…”
Patrick Dawson, 2005
Each table to identify some common management errors
(most common management errors cont.)

Not understanding the organisational culture

Structural inertia and related organisational matters

Too many fiefdoms/silos/stovepipes/cocoons/ kingdoms
allowed to exist/prevail

Lack of ownership or emotional “buy-in” or “cocreating” by staff at the start of the process
(most common management errors cont.)

Not psychologically ready, ie the importance of timing

Underestimating the importance of intuition (gut
feeling) and story telling, while over-focusing on
conventional measurement

Too much focus on symptoms rather than causes
(most common management errors cont.)

Not focusing on the correct issues, ie concentrating on
the tangibles (hard options eg economic incentives,
organisational structure, etc) while ignoring intangibles
(soft options eg corporate culture, values, beliefs,
relationships, personal journey, etc.)

Lacking the balance between
- hard and soft approaches
- present (short-term) and future (long-term)

Lack of a sense of urgency (not shared)
(most common management errors cont.)

Too much focus on “One Size Fits All/Silver Bullet/
Instant Coffee/Magic Wand/Cure-all Recipes/Quick
Fixes/Management by Best Seller (the boom theory of
change)”

Ignoring that change is a personal journey, ie human
aspect of change (dealing with people) Lack of resources
(time, money, etc.)

Not realising that change is a continuous process that
needs regular reviews. It is not a one-off event
(most common management errors cont.)

Too much complacency (paying “lip service”,
organisation too successful, not holistic approach, etc)

Change fatigue - too many/multiple change projects

Not appreciating the power of leverage, ripple effect,
interdependence, time delays and holistic approach

Past not treated with respect
(most common management errors cont.)

A previous failed change effort is not acknowledged or
addressed or learnt from

Technocratic approach to transitions, i.e. linear (cause
and effect)
The formula for success now
is no guarantee
of success in the future
The Hardest Organisation To
Change is a Successful One
(or one which perceives itself to be successful)
ie why dabble with the formula for success?!!
BUT
“…over 40% of the businesses listed in the 1985
Fortune 500 are not in business today…”
Karlson Hargroves et al, 2005
Active Inertia

Strategic frames become blinkers
 Processes become routines
 Relationships become shackles
 Values become dogma
Important question is “…what is hindering us?…”
Definition of insanity!
eg - happy the way we are (zone of comfort)
- custodians of the traditions, etc
The combination of cultures that resist change and
managers who support the status quo is lethal for
any change process
“…Status Quo: Isn’t that Latin for the mess we are in now?…”
(AIM 2000)
ATTITUDES TO CHANGE
“…Change creates fear in established organisations
and paranoia in the minds of executives hired to
protect the status quo…”
 Working harder
and harder
Gene Landrum, 1996
“…like driving a car and putting your foot down
harder on the accelerator when you should instead
change gears…”
 Seen
as a threat unless staff have ownership
 Trust
is one of the first casualties
(attitudes to change cont.)

Encountering change too often
“…alternates between short bouts of radical surgery
and long doses of studied inattention…”

Conflicting messages of change, ie staff are
encouraged to realise their aspirations but basic
needs such as job security are threatened

Code word for “something nasty”

Pushes people outside zone of comfort
(attitudes to change cont.)

People feel that they are not in control of what is
happening (learned helplessness)

Indications of resistance – mistrust, resignations,
transfers, absenteeism (includes phantom),
lateness, lower productivity, loss of quality,
slowdowns, wildcat-strikes, sullenness and
quarreling

WIIFM, ie gains and losses

Creates conflict and chaos
(attitudes to change cont.)

Technocrats treat change as a technical problem
only

Not treating the past with respect, ie need to build
on the past

Have experienced a failed change project

“Say yes, but do no”
Most Models Over-Simplify the Situation
Change is very
• contextual
• situational
Most Models Are Like Supernova
Quotes
“…All models are wrong – some models are useful…”
Edward Deming (1980)
“…The value of the model is not in its predictive power but
in its power to catalyze reflective conversations…”
Andrea Shariro (1999)
“…There is no science of transformation, only an art…”
Fortune Magazine (1996)
Limitations of Overseas
Models for Australia
Australia’s situation is different from other
countries like USA, Europe and Japan.
Some Australian Cultural Differences

One of the most ethnically-diverse countries

Preference for strong, but not hard, leaders

Comfortable with consistent leaders

Preference for slow, incremental change

Preference for pattern and order; uncomfortable with
crisis and chaos
(some Australian cultural differences cont.)

Workplace relationships more important than selfimprovement

Reluctance to confront poor performance

Hypersensitive to hypocrisy and cant

Never forgive a tyrant

Slow to anger

Culture of mateship
Organisational Differences with USA
Australian organisations are
- more conservative & have a greater fear of making mistakes
- less keen to be assessed
- statements (vision & mission) are less indicative of success
- greater focus on finding a cause rather than a challenge
(Organisational Differences with USA cont.)
- workforce prefers work that is worthwhile rather
than being challenged to reach stretch goals
- winning is less about charismatic leaders, big
breakthrough ideas or high pay levels and more
about team performance
Seven Ingredients for Effectively
Handling An Organisational Change
(see hand-out)
1
2
3
4
5
6
7
Laying a foundation for new ways (includes
building on the past)
Establishing a sense of urgency
Forming a transitional team
Creating alignment
Maximising connectedness
Creating short-term wins
Consolidating performance improvements
There is overlap between the ingredients, and different degrees
of emphasis needed in different situations
Resistance to Change

It is normal
 People are concerned about loss (real & perceived)
 Need to understand what is under-pinning the
resistance
 Minimise time in this area by focusing most
attention on supporters of the change
Communications

Communication Formula
Words (20%)
Body Language (40%)
Tone (40%)
 Make communications receiver-friendly
Culture is Complex, Powerful,
Deep & Stable

Change challenges current culture. It requires
“unlearning” and “relearning” which can be very
painful and slow
 Three parts to culture
i) behaviours, ie action, words, relationships, etc
ii) symbols, ie physical environment, recognition
concepts, etc
iii) systems, ie reporting, performance management,
etc
Change will not Last if
Management is Hypocritical

Preaches teamwork but rewards individual contribution
 Preaches customer service but rewards adherence to
rules
 Preaches risk-taking but rewards an absence of errors
 Preaches feedback but rewards no criticism
 Preaches entrepreneurial flair but rewards only narrow
job perspectives
 Preaches decentralised and/or delegated authority but
congratulates “hands-on” management
Book (on sale here)
Toolbox for Change:
a practical approach
by Bill Synnot & Rosie Fitzgerald
Are you feeling bewildered by the pace of change today’s
world?
 Do you want to understand and change behaviours and
attitudes to improve relationships and productivity in your
work/life/community?
 Do you want to improve your handling of people, especially
those who disagree with or misunderstand you?

(Book: Toolbox for Change cont.)






Do you want to improve your communications skills?
Do you want your group to function more effectively?
Do you suffer from unnecessary “busyness”?
Do you want to be more creative in your approach to
challenges?
Do you want to be more competitive?
Do you want to harness more support for a new direction?
If your answer is “yes” to any of these questions, you
need this book!!!!!!!!
(Book: Toolbox for Change cont.)
There are 60 widely-applicable, user-friendly tools
divided into 7 sections:
- general (10)
- personal awareness (11)
- understanding culture (13)
- creative thinking (9)
- understanding resistance (8)
- understanding teams (5)
- understanding value, vision & mission statements (4)
(Book: Toolbox for Change cont.)
This book will help you
- identify problems that need solving (causes, not
just symptoms)
- achieve ownership of the problem
- find the most appropriate solution
(more details see web site :www.billsynnotandassociates.com.au)
Some Tools
Driving Forces Analysis
Forces Direction Impact Term Control Strategies
(+/-)
(L/M/H) (S/M/T) (C/S/U)
Life-cycle approach
Non-verbal signals

As stated before, in communications body
language and tone of voice are more significant
than words

Describes ways to read and understand non-verbal
signals
Story-telling

Explores the importance of story-telling
 Detail ways to improve your story-telling
Understanding yourself
A series of questions so that you can understand
yourself and others who work with you
Analyse the Way you Spend
your Time

This will show how we waste most of our time by
doing work that is not adding value to the
customer/client
 Most managers waste more than 50% of their time
doing “re-work” and “non value- adding work”
Network mapping
This tool explores how the “informal”
network works
Creative thinking
The 6 hats that help structure a meeting so
that it is more productive
Workshop
(Successful Organisational Transition)
Partnership with Centre of Executive Education, Bond
University
Location and Dates (2007)
Sydney
September 18 & 19
Perth
September 25 & 26
Melbourne
October 3 & 4
More details visit web sites
- www.bond.edu.au
or
- www.billsynnotandassociates.com.au
Bill Synnot’s contact details
Address: Bill Synnot & Associates, 18th
Floor, 300 Queen St., Brisbane
or 15 Hipwood St., Norman Park, Qld, 4170
Phone: 0418 196 707
Fax: 07 3399 7041
Email: [email protected]
Skype: bill.synnot
Web: www.billsynnotandassociates.com.au