1. www.growthaccelerator.com Change management: Navigating your
high growth journey Presentation byRichard Crooks
2. Change Management January 2013 hello 2 3. Change Management
January 20133 4. Change Management January 2013 The ability to
learn faster than your competitors may be the only sustainable
competitive advantage Arie de Gues 4 5. Change Management January
2013 Summary of today Change in your business Change in your people
01 02 5 6. Change Management January 2013 Our roadmap for this
morning Change in your business 1. Visioning Orbit (touch on
briefly) 2. Red Ocean / Blue Ocean thinking 6 Change in your people
3. X model Engagement 4. The Golden Circle 7. Change Management
January 2013 Any kind of change can feel like a crisis 8. Change
Management January 2013 1. Change your business 8 9. Change
Management January 2013 The competition changes you and your
business You initiate the change that you want to create in the
market Low growth thinking High growth thinking 9 10. Change
Management January 2013 if you dont know where youre going all
roads lead there! 11. Change Management January 2013 Investors in
People 5% reduction 3% reduction 3% reduction 100k -400k -600k
Articles in Trade Press Featured on local radio & TV 11(2)
18(2) 28(3) ABC Limited Preferred supplier to 3 national health
OEMs 50% automotive 40% medical 10% aerospace 1.2 mil 2.3 mi 4 mil
30% automotive 70% medical 0% aerospace Self-Managing Teams
Preferred supplier to 3 regional health OEMs Preferred supplier to
3 Manchester health OEMs DEF Limited GHI Limited China Europe
National Profit Centres with Bonus scheme 20% 45% 75% Av. value -
projects Net Promoter Score Net Profit Turnover No. of partners /
route to market Key Markets No. of employees No. of customers
(projects / retainers) Apr 13 / Mar 14 Apr 14 / Mar 15 Apr 15 / Mar
16 Av. Value - retainers Blend of business 9 720K (40%) 50 / 55 13
10 (40%) 1.8M 800K new 250K existing 800K retainers East Mids./Nat
ional (50/50) 16K 14.5K 8.5 420K (35%) 40 /40 12 1.2M 600K new 200K
existing 350K retainers 50K recurring 15K 7 (30%) East
Mids./National (60/40), incl. Notts. 8.75K 14K 8 240K (30%) 35/ 32
10 500K new 150K existing 120K retainers 30K recurring 800K East
Mids./Natio nal (80/20) incl Sheffield, 10+ 3.75K 4 (20%) 12.
Change Management January 2013 Changing your business Red Ocean
thinking To create a compelling point of difference to your
competitors 12 13. Change Management January 2013 Contested market
strategy Blue Ocean strategy Compete in existing market space
Create uncontested market space Beat the competition Make the
competition irrelevant Exploit existing demand Create and capture
new demand Make the value-cost-trade-off Break the value-cost
trade-off Strategic choice is differentiation or low cost Strategic
choice is differentiation and low cost13 14. Change Management
January 2013 Differentiation or low(est) cost your compelling point
of difference? 14 15. Change Management January 2013
Differentiation increasing value for your customer 15 16. Change
Management January 2013 What value do you provide / do you
customers seek? 16 17. Change Management January 2013 Core &
Surround 17 18. Change Management January 2013 WHAT IF? My business
was run by Virgin Disney Apple etc. 18 19. Change Management
January 201319 20. Change Management January 2013 Exercise:
Alternative Grid in your industry In pairs: Define what your
product or service delivers in terms of value Choose a
differentiation tool Apply that tool to your product or service how
can you increase value to the customer? 20 21. Change Management
January 2013 Changing your business Blue Ocean thinking To create
uncontested market spaces ripe for growth 21 22. Change Management
January 2013 Red Oceangrowth will always be limited by the fact
that there is both stiff competition and fewer customers Blue
Oceanif we create new uncontested markets we make our competitors
irrelevant and invest fresh markets ripe for growth 22 23. Change
Management January 2013 Contested Market Strategy Blue Ocean
Strategy Compete in existing market space Create uncontested market
space Beat the competition Make the competition irrelevant Exploit
existing demand Create and capture new demand Make the
value-cost-trade-off Break the value-cost trade-off Strategic
choice is differentiation or low cost Strategic choice is
differentiation and low cost Game enhancer or game changer? 24.
Change Management January 2013 Strategic innovation Value Increase
Cost reduction Strategic Innovation Company actions favourably
affect both cost structure and value proposition 24 25. Change
Management January 2013 Create Which factors should be created that
your industry has never offered? Raise Which factors should be
raised well above the industry's standard? Reduce Which factors
should be reduced well below the industrys standard? Eliminate
Which of the factors that your industry takes for granted should be
eliminated? Disrupting the market Costs Value 25 26. Change
Management January 2013 Exercise: Eliminate| reduce| raise| create
26 27. Change Management January 2013 Think youre in a tough
industry? Declining industry Very limited growth Supplier power
high Buyer power high Negativity about using animals Seat prices
tumbling 27 28. Change Management January 2013 Cirque du Soleil 28
29. Change Management January 2013 The strategy canvas of Cirque du
Soleil Price Star performers Animal shows Multiple show arenas Fun
and humour Thrills and danger Unique venue Aisle concessions
Smaller Regional Circuses Low High Amount company offers buyers
Factors the industry competes on Ringling Bros. and Barnum &
Bailey 29 30. Change Management January 2013 Create Raise Reduce
Eliminate Eliminate |reduce| raise| create: Cirque du Soleil Star
performers Animal shows Aisle concession sales Multiple show arenas
Unique venue Fun and humour Thrill and danger Theme Refined
environment Multiple productions Artistic music and dance 30 31.
Change Management January 2013 Three elements to a great growth
strategy 3. TAG LINE: RE-INVENTING CIRCUS Animal shows Multiple
Arenas Thrills & Danger Unique venue Fun/ Humour Artistic
music/dance Refined environment 2. DIFFERENTIATION Price Large
Nationals Cirque du Soleil Low Hig h Smaller Regionals 1. FOCUS:
Eliminate Star performers Animal shows Aisle concession sales
Multiple show arena Unique venue Fun and humour Thrill and danger
Theme Refined environment Multiple productions Artistic music and
dance? Raise Reduce Create 31 32. Change Management January 2013
Creating uncontested market spaces Considering alternative
industries 32 33. Change Management January 2013 Considering
alternative industries Industry: Principal offering: Alternative
industries: (not just substitutes) Bus Transportation of commuters
Car Trains Taxis Trams Bus Train Highly attractive aspects
Unattractive aspects Unattractive aspects Focused on most lucrative
commuter 33 34. Change Management January 2013 Look across
alternative industries grid Why customers would choose Why
customers would not choose The Bus The Train Relatively cheap No
problems with parking No drink & drive problems Town centre
drop off Bus lanes less congestion Good for environment 34 35.
Change Management January 2013 Look across alternative industries
grid Why customers would choose Why customers would not choose The
Bus The Train Speed... no traffic congestion Cleaner more
comfortable Better class of passengers Easier to find out train
times Relatively punctual More comfortable 35 36. Change Management
January 2013 Look across alternative industries grid Why customers
would choose Why customers would not choose The Bus The Train
Unpleasant environment Unreliable Vulnerability - possibly unsafe
Long, possibly inconvenient route Not knowing when next bus is due
Waiting in wind and rain Moody bus drivers Need the right change 36
37. Change Management January 2013 Look across alternative
industries grid Why customers would choose Why customers would not
choose The Bus The Train Relatively expensive at peak times Station
is not always convenient Got to get to station Have to wait for a
train Poor service at non-peak times 37 38. Change Management
January 2013 3. TAG LINE: 2. DIFFERENTIATION 1. FOCUS Eliminate
Delays caused by congestion Stigma about using the bus Complex
timetables Maintenance of older Buses Buying ticket from driver
Raise Reliability & frequency of service Directness of service
into cities Green credentials Level of customer information Quality
/ cleanliness image Commuter targeted marketing Reduce Waiting
times Boarding time Stigma about using the bus The number of buses
and drivers Bad press about old polluting buses Overall running
costs on busy routes Create Off road transit routes Deep windows
& clear interior space Cash, Smart card & Mobile ticketing
A real alternative to car drivers Bus Pilots (rather than Bus
Drivers) High Low StreetCar Reliability Comfort & environment
Frequency Ticket price Speed of journey Use of E - ticketing Amount
company offers buyers Traditional bus Hybrid Traditional train Off
road (no congestion) route Running Costs 38 39. Change Management
January 2013 Wright Bus Articulated StreetCar Light Rail with no
rails - Lower capital cost - Shorter lead times Copyright Wright
Group Limited 39 40. Change Management January 2013 Create Raise
Reduce Eliminate Eliminate | Reduce | Raise | Create: Accounting
Firm (alternative industry: creative agency) Head Office Partners
Hourly rates / traditional pricing An experience
Pro-activity/empathy Bespoke-ness Availability 24/7 Complexity
Direct staff Delays Grey-ness Transparent pricing Helpful stuff
Events / community Relationships 40 41. Change Management January
201341 42. Change Management January 2013 Exercise: Alternative
Grid in your industry Define what your product or service delivers
Choose an alternative that delivers the same outcome Use the grid
to compare your product/service with the alternative What could be
introduced to your industry? Which aspects should be removed?
Ensure that you look at a ALTERNATIVE INDUSTRY (not a COMPETITOR)
42 43. Change Management January 2013 TAG LINE: Eliminate Raise
Reduce Create FOCUS Low High Amount company offers buyers &
hence invests Costs Value DIFFERENTIATION To take away Blue Ocean
canvas You can now begin to develop a full blue ocean canvas for
the strategy you have just made using the alternative industries
grid for your business 43 44. Change Management January 2013 Red
vs. Blue Ocean strategies Ask customers how to improve to fuel
their growth strategy01 Benchmark against competitors on things
that are important to customers 02 Use Blue Ocean strategy?03 Not
much growth More growth but is it enough? 44 45. Change Management
January 2013 Investors in People 5% reduction 3% reduction 3%
reduction 100k -400k -600k Articles in Trade Press Featured on
local radio & TV 11(2) 18(2) 28(3) ABC Limited Preferred
supplier to 3 national health OEMs 50% automotive 40% medical 10%
aerospace 1.2 mil 2.3 mi 4 mil 30% automotive 70% medical 0%
aerospace Self-Managing Teams Preferred supplier to 3 regional
health OEMs Preferred supplier to 3 Manchester health OEMs DEF
Limited GHI Limited China Europe National Profit Centres with Bonus
scheme 20% 45% 75% Av. value - projects Net Promoter Score Net
Profit Turnover No. of partners / route to market Key Markets No.
of employees No. of customers (projects / retainers) Apr 13 / Mar
14 Apr 14 / Mar 15 Apr 15 / Mar 16 Av. Value - retainers Blend of
business 9 720K (40%) 50 / 55 13 10 (40%) 1.8M 800K new 250K
existing 800K retainers East Mids./Nat ional (50/50) 16K 14.5K 8.5
420K (35%) 40 /40 12 1.2M 600K new 200K existing 350K retainers 50K
recurring 15K 7 (30%) East Mids./National (60/40), incl. Notts.
8.75K 14K 8 240K (30%) 35/ 32 10 500K new 150K existing 120K
retainers 30K recurring 800K East Mids./Natio nal (80/20) incl
Sheffield, 10+ 3.75K 4 (20%) 46. Change Management January 2013 47.
Change Management January 2013 Changing your business X model of
engagement to win the hearts and minds of your team 47 48. Change
Management January 2013 Low growth thinking High growth thinking
Successful change management is 80% mechanics and 20% emotion
Successful change management is 20% mechanics and 80% emotion 48
49. Change Management January 2013 What can go wrong when you
present a highly challenging high growth visioning orbit and plan?
49 50. Change Management January 2013 Copyright Blessing White 50
51. Change Management January 2013 Almost engaged Engaged
Honeymooners Hamsters Crash & Burners Disengaged Copyright
Blessing White 51 52. Change Management January 2013 Exercise
Mapping your team on the X model of engagement Consider the key
members of your business or team Assuming you have shared the
visioning Orbit with them, where do they sit on the X model of
engagement currently? Are they all in the engaged box or are there
some individuals that need your attention to help move them?
Indicate who you would like to move and to where within the next
three months Discuss in pairs 52 53. Change Management January 2013
Bob Sue Sam Brian Lee Phil Paul Bill Heather Jed John Mapping your
Team on the X model of engagement 53 54. Change Management January
2013 Engagement for executive leaders C Develop a community feel to
achieving the companys growth goals A Authentic keep it real S
Significance help all employees find greater meaning in their work
E Excitement keep individuals passionate about what they do 54 55.
Change Management January 2013 Changing your business The Golden
Circle to help engage individuals buy into change 55 56. Change
Management January 2013 People dont buy / buy into what you do, but
why you do it! Hiring / engaging those who believe what you believe
56 57. Change Management January 2013 Apple Rogers Architects We
believe in challenging the status quo in everything we do. We
believe in thinking differently. A building without celebration is
just construction 57 Easyjet We believe in making travel easy and
affordable. 58. Change Management January 2013 Logistics business
E-commerce business We love our customers so they can be loved by
theirs. We believe in a world of possibilities, through the
Internet. 58 59. Change Management January 2013 Exercise Golden
Circle for your business Create the 3 circles Produce the what, how
and why for your business How do you communicate to your people
and, indeed, your customers? Do you keep it real What areas do you
need to work on? Discuss in pairs 59 60. Change Management January
2013 What will you do differently as a result of this session?
Start doing Stop doing Do more Do less 60 61. Change Management
January 201361 62. Change Management January 201362 63. Change
Management January 2013 Changing your business Pain and pleasure
matrix to help motivate individuals buy into change 63 64. Change
Management January 2013 Low growth thinking High growth thinking
Everybody is different. You cant motivate all the people all the
time Everyone is different. However all people are ultimately
driven by the motivating forces to avoid pain and attract pleasure
all of the time 64 65. Change Management January 2013 The aim of
the wise is not to secure pleasure, but to avoid pain. Aristotle 65
66. Change Management January 2013 Pain / pleasure principle is key
to help people buy into change and motivated to take action Discuss
the pain of DOING it The pleasure of DOING it 01 03 The pain of NOT
DOING it The pleasure of NOT DOING it 04 05 Identify what theyve
been putting off01 66 67. Change Management January 2013
DoingitNotDoingit Pleasure Pain Pleasure Pain Grid 67 68. Change
Management January 2013 DoingitNotDoingit Pleasure Pain Losing
weight Pain of doing it I dont like exercise I havent got time 68
69. Change Management January 2013 DoingitNotDoingit Pleasure Pain
Losing weight Pleasure of doing it Ill be able to wear THAT
swimwear Ill fit my expensive suit / dress Ill feel better and
fitter 69 70. Change Management January 2013 DoingitNotDoingit
Pleasure Pain Losing weight Pain of not doing it I get tired when I
run for the bus My doctor warned me about my health Ive clothes in
my wardrobe that I cant get into 70 71. Change Management January
2013 DoingitNotDoingit Pleasure Pain Losing weight Pleasure of not
doing it I like the taste of comfort food It gives me an excuse to
buy new clothes I dont have to go to the effort 71 72. Change
Management January 2013 Winning Lees commitment We want Lee to more
proactively lead the high growth strategy related to penetrating
new overseas markets 72 73. Change Management January 2013
DoingitNotDoingit Pleasure Pain Pain of doing it Its a poison
chalice I could easily fail and lose my blossoming reputation with
the Directors Criticism surrounding missing lucrative UK based
opportunities whilst away on overseas business Frustration caused
by forms, language, currency... Even more time than normal stuck in
hotels and travelling, away from my family and friends 73 74.
Change Management January 2013 DoingitNotDoingit Pleasure Pain
Pleasure of doing it The adulation of being the one who lead the
company into new more profitable overseas markets when UK growth
was slowing Feeling empowered shaping my own destiny Could help me
successfully see even more fresh innovations for the business like
new product ideas More exciting than spending everyday in Slough!
74 75. Change Management January 2013 DoingitNotDoingit Pleasure
Pain Pain of not doing it Living with the regret that I missed the
opportunity to be recognised as the person who took this business
to the next level of growth Feeling guilty if the UK only strategy
fails to generate sufficient growth to achieve our vision Jealousy
if one of our competitors won the contract Further reinforcement of
the view that my boss has of me that I dont think big enough 75 76.
Change Management January 2013 DoingitNotDoingit Pleasure Pain
Pleasure of not doing it I can now keep focused on our (my) UK
strategies without the disruptions caused by overseas ideas A
feeling of greater security Ive avoided this potentially risky
venture Far more certainty about what Im dong day to day Easy life
less stress and demands placed on me and my time 76 77. Change
Management January 2013 Getting leverage Ask PAIN-inducing
questions Get them to picture what this may look like 01 03 Ask
PLEASURE - associating questions Get them to picture what this may
look like 04 05 Complete the pleasure pain matrix physically or
mentally?01 77 78. Change Management January 2013 Exercise:
Complete the matrix for one of your staff 1. Consider one of the
people you wish to better engage 2. Complete the pain pleasure
matrix as you think they may see it. 3. Explain this to the person
you have partnered. 4. Role play the conversation where you will be
bringing them up to pain threshold by asking PAIN - inducing
questions (plus imagery) and PLEASURE inducing questions (plus
imagery) 78 79. Change Management January 2013 What will you do
differently as a result of this session? Start doing Stop doing Do
more Do less 79 80. Change Management January 201380 81. Change
Management January 201381
