Change Management - Harvard Management Or

Change ManagementChange ManagementChange ManagementChange Management

What would you do?What would you do?What would you do?What would you do?

For ten years, New Brew Coffee was a privately run company. The long-standing culturewas laid-back, informal, and nonhierarchical. Last year, New Brew went public andeverything changed. New people were hired, new policies and procedures were put inplace, and new goals were established. Veteran employees were having a tough timedealing with all the changes. When Debra, a new manager, asked all departments tosubmit detailed weekly reports, she encountered significant resistance. Debra couldn'tunderstand why: Didn't they see that going public would require more efficient andtransparent record keeping? How could Debra establish an effective record keepingsystem in a culture that resisted formal structures?

What would you do?

To get everyone on the right track, Debra might have spoken with each of thedepartments to better understand how they currently keep records within their groupsand share information with others in the company. She then might have explained theneed for greater accountability and asked them for suggestions on how to improveexisting practices. Next, Debra might have framed the new plan as an experiment—onethat would be modified over time in response to feedback. By asking for input andagreeing to modify the trial plan, Debra would have enlisted the help of the groups inimproving record keeping and reaching her desired outcome.

In this topic, you'll learn how to deal constructively with change and position change asan opportunity for experimentation and growth.

Topic ObjectivesTopic ObjectivesTopic ObjectivesTopic Objectives

This topic helps you:

Recognize the different types of change programs observed in organizationsPrepare your unit or group to become change-readyUnderstand a systematic approach for creating and implementing changeRecognize the importance of communicating throughout all phases of a changeeffortUnderstand and address people's reactions to changeTake care of yourself during a change program

About the MentorAbout the MentorAbout the MentorAbout the Mentor

Linda A. HillLinda A. HillLinda A. HillLinda A. Hill

Change Management - Harvard ManageMentor http://atl.ltindia.com/atlv2/clients/client-99/courses/course295/change_m...

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From her more than 20 years of extensive field work, Professor Linda A. Hillhas helped managers create the conditions for effective management intoday's flatter and increasingly diverse organizations. She is a professor andChair of the Leadership Initiative at Harvard Business School. She is also theauthor of the best-selling Becoming a Manager (Harvard Business School Press), now outin paperback. Linda served as the content expert for Coaching for Results and ManagingDirect Reports, two award-winning interactive programs from Harvard Business SchoolPublishing. She also served as a mentor for many Harvard ManageMentor topics.

The Dimensions of ChangeThe Dimensions of ChangeThe Dimensions of ChangeThe Dimensions of Change

Types of changeTypes of changeTypes of changeTypes of change

Key IdeaKey IdeaKey IdeaKey Idea

In order to respond to the challenges of new competitors, markets, and technologies,organizations must undergo continual change. Some change programs are strategic innature, while others are more operational. Some are radical and take place only once;others are more incremental, purposefully paced to promote continuous improvementand stability.

Change programs can take many forms. Generally, these programs fall into the followingcategories:

Structural changeStructural changeStructural changeStructural change. These programs attempt to reconfigure the organization inorder to achieve greater overall performance. Examples include mergers,acquisitions, consolidations, divestitures, promotions, layoffs, or the arrival of a newleader.Cost-cutting changeCost-cutting changeCost-cutting changeCost-cutting change. These programs focus on the elimination of nonessentialactivities or on other methods for squeezing costs out of operations—for example,headcount, expense, capital, or unit cost reductions; outsourcing; partnering;creating industry alliances; or negotiating long term vendor contracts.Process changeProcess changeProcess changeProcess change. These programs concentrate on altering how things get done.Examples include reengineering a process or introducing a new technology.Cultural changeCultural changeCultural changeCultural change. These programs focus on a company's operating values, norms ofbehavior, and the relationship between its management and employees. Shiftingfrom command-and-control to participative management or reorienting a companyfrom an inwardly focused "product push" mentality to an outward-looking customerfocus are examples of cultural change.Strategic purpose changeStrategic purpose changeStrategic purpose changeStrategic purpose change. These initiatives attempt to reinvent an organization bychanging its strategic intent, core purpose, or mission. Examples include shiftingfrom selling individual products to selling complete solutions that add value for thecustomer or expanding from local to global markets.

Sources of changeSources of changeSources of changeSources of change

While external forces, such as an economic downturn or the introduction of new


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legislative laws, can cause a company to change, most changes that occur within anorganization are typically generated from within. Managers at all levels in an organizationcan and do initiate change. Frontline managers, for example, may implement a newtechnology, mid-level managers may create a plan to reduce costs, and senior managersmay merge the company with another organization.

Change is almost always disruptive and, at times, traumatic. Because of this, many peopletry to avoid it. Nevertheless, change is part of organizational life and essential forprogress. Accepting the necessity and inevitability of change enables managers to seetimes of transition not as threats, but as opportunities—opportunities for reinventingtheir companies and themselves. Managers who approach change with an open mind andfocus on its positive elements find ways to motivate others and harness enthusiasm forfurther progress.

Characteristics of effective managers of changeCharacteristics of effective managers of changeCharacteristics of effective managers of changeCharacteristics of effective managers of change

What lies behind us and what lies before us are tiny matters compared withwhat lies within us.—Oliver Wendell Holmes

Whether managers are asked to carry out a change program initiated by seniormanagement or create a change program within their unit or group, successful managersof change share these common characteristics:

Are accepted by others as trustworthy and competentHave a big-picture perspective—they understand the long-range strategy for theirorganization and unitHave a clear, compelling vision of the change they wantCan articulate what the change is, why it is necessary, and how it will benefit bothemployees and the organizationCan identify the people who can make the change a reality and determine how to gettheir support and cooperationAre able to align and engage team members and stakeholdersCan motivate others to achieve the change visionCan see opportunities and diagnose problems from their audience's perspectiveAre able to eliminate barriers that interfere with the change initiative

Although it is impossible to anticipate every change effort, the likelihood of change issomething managers can count on—and plan for. Managers who know how to anticipate,catalyze, and manage it will find their careers, and their experience in their companies,more satisfying and successful.

Overcoming change resistersOvercoming change resistersOvercoming change resistersOvercoming change resisters

Personal InsightPersonal InsightPersonal InsightPersonal Insight

I don't believe that people inherently resist change; I don't think there's an anti-changegene. I think people can learn to like change, certainly can learn to live with it, if thesituation is correct. And what does it take?


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Well, it takes a valid reason, certainly, for change that somebody understands. It's notenough just to have somebody seven levels in the organization above them say "Hey,you've got to change your life and do this and that otherwise the organization isn't goingto survive. "We don't have faith in our leaders like we used to, if we ever did, such thatpeople are willing to accept that kind of top-down information. What people need tochange is the belief that, yes, this is important, yes it is going to make my life better—orat least prevent a disaster from occurring.

As a first fundamental building block upon which to build change, of course, they needmore than just the belief that things will get better or that things will be better if theychange. They need to know the specifics of what that change is going to be. Usually, youget the most acceptance of that by getting them involved in designing the change,planning the change, and certainly helping with the implementation. Then there's the,what I would call, organizational bureaucratic blocks to successful change that have beenin place for a long time. These are things that you can remove before, like rigid, tight jobdescriptions; supervisors who are essentially top-down, one-way supervisors;information systems which don't provide details to employees of how the business isdoing and what customers think and not giving employees customer contact so theyunderstand what's going on in the business environment; a whole host of practices thatcan make them more willing to change and more understanding of why you're changingin a particular way.

People often resist change and top-down directives if they don't understand the need forthe change. However, they can learn to live with change if they see the valid reason for it,so involving them in the planning and implementation of change will help them to buyinto the belief that it is important and will help make their lives better.

Edward LawlerEdward LawlerEdward LawlerEdward Lawler

Distinguished Professor of Business, Marshall School of Business, University ofDistinguished Professor of Business, Marshall School of Business, University ofDistinguished Professor of Business, Marshall School of Business, University ofDistinguished Professor of Business, Marshall School of Business, University ofSouthern CaliforniaSouthern CaliforniaSouthern CaliforniaSouthern California

Edward Lawler is Distinguished Professor of Business and the Director of the Center forEffective Organizations in the Marshall School of Business at the University of SouthernCalifornia.

Professor Lawler joined USC in 1978. One year later, he founded and became Director ofthe University's Center for Effective Organizations.

Professor Lawler has consulted with more than 100 organizations on employeeinvolvement, organizational change, and compensation. He has also been honored as atop contributor to the fields of organizational development, organizational behavior,corporate governance, and human resource management.

The distinguished author of 41 books, Professor Lawler's most recent titles include:Rewarding Excellence (2000), Corporate Boards: New Strategies for Adding Value at theTop (2001), Organizing for High Performance (2001), Treat People Right (2003), HumanResources Business Process Outsourcing (2004), Achieving Strategic Excellence: AnAssessment of Human Resource Organizations (2006), Built to Change (2006), America atWork (2006), and The New American Workplace (2006).

Professor Lawler has published more than 300 articles, which have appeared in leading


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academic journals as well as Fortune, Harvard Business Review, Fast Company, andnewspapers including USA Today and Financial Times.

Being Ready for ChangeBeing Ready for ChangeBeing Ready for ChangeBeing Ready for Change

The change-ready organizationThe change-ready organizationThe change-ready organizationThe change-ready organization


For an organization to successfully implement change, it must be change-ready—meaning that the people and structure of the organization are prepared for and capableof change. How do you know when an organization is change-ready? Typically, threeconditions are present:

First, effective leadership is in place at all levels in the organizationFirst, effective leadership is in place at all levels in the organizationFirst, effective leadership is in place at all levels in the organizationFirst, effective leadership is in place at all levels in the organization. Ineptleaders are deterrents to organizational performance and ability to change. Acompany may have excellent pay, benefits, and employee-friendly policies, but ifincompetent leaders are in place, its employees will not be motivated to change.Second,Second,Second,Second, employees are personally motivated to changeemployees are personally motivated to changeemployees are personally motivated to changeemployees are personally motivated to change. Change happens whenpeople are sufficiently dissatisfied with the status quo and are willing to make theeffort and accept the risks involved in doing something new.Third, the organization is accustomed to working collaborativelyThird, the organization is accustomed to working collaborativelyThird, the organization is accustomed to working collaborativelyThird, the organization is accustomed to working collaboratively. Effectivechange demands collaboration between willing and motivated parties.

Prepare your group for changePrepare your group for changePrepare your group for changePrepare your group for change

If you manage a business unit or group, there are certain steps you can take to help yourorganization become change-ready:

Encourage participative work within your unit.Encourage participative work within your unit.Encourage participative work within your unit.Encourage participative work within your unit.1.

Develop more participative approaches to how everyday business is handled.Specifically:

Push decision making down to lowest levels possible. Allowing others to makeinformed decisions, rather than imposing your own, increases the group'sperception of their own effectiveness—and yours.

Share information freely. Information is the lifeblood of any organization.During times of change, getting and disseminating information is critical tooperating effectively, flexibly, and quickly.

Make communication a two-way process—talk but also listen, especially topeople who are resistant to change.

Get into the trenches with frontline employees to better understand the


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day-to-day issues that they face.

Give people practice in collaborative work between functions by tacklingproblems and assigning projects through cross-functional teams.

Help people see the "why" of change.

Give your employees a voice.Give your employees a voice.Give your employees a voice.Give your employees a voice.2.

Employees who can freely express their ideas will feel more empowered to act.Encourage people to openly discuss their thoughts and feelings about the changeprogram. Work to understand resistance by exploring their concerns and by takingtheir feelings seriously. When people believe their voice counts, they are more apt tomobilize for change.

Drive fear out of your group.Drive fear out of your group.Drive fear out of your group.Drive fear out of your group.3.

An organizational culture dominated by fear is incapable of serious change. Fearencourages everyone to avoid risks, become internally focused, and stopcommunicating. In addition, fear costs organizations real money in the form ofincreased absenteeism, reduced productivity, and diminished quality of products andservices.

While managers should aim to reduce fear, they should not deny the challengingaspects of the change itself—nor should they minimize the intensity of employees'reactions to it. Managers should openly acknowledge employees' concerns and workwith them to support and embrace the change initiative.

Once an organization is primed for transition, a change initiative can be rolled out.

Activity: Manage resistance to changeActivity: Manage resistance to changeActivity: Manage resistance to changeActivity: Manage resistance to change


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Brian is an inventory process improvement manager at SaveMart, a large retailer.SaveMart recently decided to adopt new shipment-tracking software that promisesto increase efficiency in receiving and decrease shipping times. Brian is surprised tolearn that employees in SaveMart's stores opposed the software change, despite itspotential advantages.

What step should Brian take at this point?

Ask store managers to collect comments and concerns about the proposedchange from employees and to share with Brian any responses that themanagers consider most legitimate

Not the best choice.Not the best choice.Not the best choice.Not the best choice. It's true that employees should begiven a voice to discuss their reactions to the proposedchange, both positive and negative. However, the fullrange of people's concerns and opinions should becommunicated to Brian, rather than just the issues thatstore managers consider legitimate.

Visit stores and speak directly with employees who have objections andconcerns regarding the proposed new software

Correct choice. Correct choice. Correct choice. Correct choice. By visiting stores and speaking toresisters in person, Brian allows his employees theopportunity to voice their concerns to a decision makerand participate in an open dialogue. When people feelheard by a decision maker, they're more likely toconsider a proposed change.

Write a memo to all employees assuring them that the benefits of thechange far outweigh the short-term inconvenience of adopting the newsystem

Not the best choice.Not the best choice.Not the best choice.Not the best choice. By taking this action, Brian wouldbe ignoring employees' legitimate concerns. As a result,they would be less likely to support the proposedinitiative.

After speaking with several employees, Brian discovers that many of theirobjections relate to the use of new technology that will interface with the newsoftware. SaveMart demands specific performance on certain order-processing timemetrics as a condition of employment. Employees are hesitant to take the time tolearn a new technology when they know they can meet the required performanceusing the old process.


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Change ManagementChange ManagementChange ManagementChange Management

Process overviewProcess overviewProcess overviewProcess overview


Is there a formula to ensure the success of a change initiative? Many organizations wishthere was, but launching a change program is not that easy. Barriers to changeabound—poor leadership, lack of collaboration and teamwork, paralyzing companypolitics, and fear of the unknown are just a few examples. To overcome these barriers,and to make a change strategy successful, managers typically follow these six steps:

First, mobilize energy and commitment by identifying business problems andsolutions.

1.

Next, develop and communicate a shared vision of the change program.2.

Then, identify the leadership.3.

Then, create near-term wins by focusing on results, not activities.4.

Next, institutionalize success through formal processes, systems, and structures.5.

Finally, monitor and adjust strategies in response to problems in the changeprocess.

6.

Mobilize energyMobilize energyMobilize energyMobilize energy

You mobilize energy and commitment by identifying business problems and solutions.

The starting point of any effective change effort is a clear definition of the businessproblem. Problem identification answers the most important question employees will ask:Why must we undergo change? The answer lays the foundation for motivating allemployees in an organization, and thus must be convincing.

Informing people why change must occur is essential not only for its motivating potential,but also because of the sense of urgency it creates. Simply put, change won't happenwithout urgency. People will not grapple with the pain and extra work associated with aserious change effort unless they are genuinely convinced that maintaining the status quois more dangerous than striking out on a new path.

After defining the business problem, the next step is to develop a solution to it. A set ofalternatives should be generated and then evaluated against the objectives of the changeinitiative.

While identifying the business problem and its possible solutions are a must, how theyare identified is equally important. Motivation and commitment to change are greatest


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when employees—especially those who will be most affected by the change effort—areinvolved in identifying the problem and planning its solution. Failure to involve keyemployees in these processes typically results in two serious errors: The problem isimproperly defined and the solution is too narrowly drawn.

Develop a shared visionDevelop a shared visionDevelop a shared visionDevelop a shared vision

It isn't enough to just identify the problemand agree on how to proceed. You have toget people excited and involved. Thepeople in charge of change must,therefore, develop a clear vision of wherethe organization or unit needs to go. Theymust also be able to communicate thatvision to others in ways that make thebenefits of the change effort clear. Incommunicating the vision, they should be very specific about:

How the change will improve the business (through greater customer satisfaction,product quality, or sales revenues), and if possible,How these improvements will benefit employees (higher pay, larger bonuses, or newopportunities for advancement)

Managers throughout the organization must then communicate that vision to their unitsand groups. Doing so ensures that all employees understand the change effort that iscurrently under way.

Identify the leadershipIdentify the leadershipIdentify the leadershipIdentify the leadership

In order for change to succeed, strong leadership must be in place at all levels in anorganization, not just at the top. Leaders of change—say, the director of sales or themanager of manufacturing—must champion the change effort by assembling theresources needed for the project and take responsibility for its success or failure.

Often, when change programs are being rolled out, some units present themselves asmore change-ready than others—that is, they have respected and effective leaders inplace, employees are motivated to change, and people in those units are accustomed toworking together in collaborative ways. It is wise for change programs to be rolled outfirst in these units; they can be then used as test beds for the change initiative.

Activity: Are you ready for change?Activity: Are you ready for change?Activity: Are you ready for change?Activity: Are you ready for change?


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Kerry is a manager in Human Resources at Baritone Music, a manufacturer ofmusical instruments. Kerry is responsible for overseeing a change in Baritone'shiring process, allowing individual departments to make their own hiring decisionsthrough informal interviews conducted by team members, all with limited oversightfrom Human Resources. She wants to test the process in a small number ofdepartments.

The sales team has a strong department already in place. The Director of sales hashad great success with the old hiring process, and she doesn't see the need for thechange. Most salespeople have been with the company for several years, andvacancies are filled rapidly and efficiently.

Is the sales department suitable for testing the new hiring process?

Yes

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Though the Sales team iswell-established within the company, the Directordoesn't see the value in the new hiring process, and hersalespeople will not be motivated to adopt a new processwhen the old one has served them well.

No

Correct choiceCorrect choiceCorrect choiceCorrect choice. Though the Sales team iswell-established within the company, the Directordoesn't see the value in the new hiring process, and hersalespeople will not be motivated to adopt a new processwhen the old one has served them well.

The product development team has been understaffed for months, and new talentis needed to develop the large number of ideas coming from the researchdepartment.

Is the product development department suitable for testing the new hiring process?

Yes

Not the best choice.Not the best choice.Not the best choice.Not the best choice. It is not known whether thedepartment leader is effective or respected, or whetherthe department's employees are accustomed to workingtogether in collaborative ways.

No


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Create near-term winsCreate near-term winsCreate near-term winsCreate near-term wins

Create near-term wins by focusing on results, not activities.

During a change initiative, many organizations make the mistake of focusing managerialattention on training, team-creation, and other programmatic activities that seem asthough they should produce desirable results, but in fact contribute little or nothing tobottom-line performance.

Instead of focusing on activities, managers should focus their attention on near-term,results-driven programs—even though the change campaign is a long-term, sustainedone.

For example, a company might create the following goal: "Within the next 12 months, we

will reduce fuel costs by 15 percent."

Generating near-term wins helps change programs in the following ways:

Provides evidence that sacrifices are worth itProvides evidence that sacrifices are worth itProvides evidence that sacrifices are worth itProvides evidence that sacrifices are worth it. Wins greatly help justify thenear-term costs involved.Rewards people involved in the change effortRewards people involved in the change effortRewards people involved in the change effortRewards people involved in the change effort. After a lot of hard work, positivefeedback builds morale and motivation.Helps fine-tune vision and strategiesHelps fine-tune vision and strategiesHelps fine-tune vision and strategiesHelps fine-tune vision and strategies. Near-term wins give leaders concrete dataon the viability of their ideas.Undermines cynics and self-serving resistersUndermines cynics and self-serving resistersUndermines cynics and self-serving resistersUndermines cynics and self-serving resisters. Clear improvements inperformance make it difficult for people to block needed change.Builds momentumBuilds momentumBuilds momentumBuilds momentum. Momentum turns neutrals into supporters, and reluctantsupporters into active helpers.

Institutionalize successInstitutionalize successInstitutionalize successInstitutionalize success

Institutionalize success through formal processes, systems, and structures

Once a change program objective has been achieved, it is important to cementhard-earned gains through processes, information systems, or new reporting structuresthat describe how work should be done going forward.

For example, an innovative unit of an office furniture manufacturer was given theopportunity to develop a new, faster, and low-cost approach to manufacturing andfulfillment. Employees in the unit completely redesigned the furniture-building

process—from order-taking to delivery—basing it on digital connectivity, masscustomization, and a new relationship with supply-chain partners. By the time themakeover was complete, the unit had cut the order-to-shipment cycle from eight weeks toless than one week. On-time shipments reached 99.6 percent. Once this unit reached its

goal, it institutionalized its gains through a performance measurement system that kepteveryone's focus on that metric.

Adjust strategiesAdjust strategiesAdjust strategiesAdjust strategies


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Monitor and adjust strategies in response to problems in the change process.

Change programs almost never go according to plan. All types of unanticipated problemscrop up as change moves forward. Developments in the external environment can alsoaffect what's going on inside the company. So, change leaders must be flexible andadaptive, and their plans must be sufficiently robust to accommodate alterations inschedules, sequencing, and personnel.

Implementing ChangeImplementing ChangeImplementing ChangeImplementing Change

Expect the unexpectedExpect the unexpectedExpect the unexpectedExpect the unexpected

Once people are convinced that change isnecessary, and that the change vision isthe right one, it's time to move forwardwith implementation. While good planningand front-end analysis should ideally leadto seamless implementation, execution israrely smooth. Mistakes are made.Resources and support fall through.External factors upset schedules. Keypeople leave or are transferred. Groups forget to communicate with each other.

Although implementation can be a tricky and unpredictable challenge, you can improvethe odds of success if you: enlist the support and involvement of key people, craft a solidimplementation plan, support the plan with consistent behaviors, develop enablingstructures, celebrate milestones, and develop a comprehensive communication plan.

Enlist the support and involvement of key peopleEnlist the support and involvement of key peopleEnlist the support and involvement of key peopleEnlist the support and involvement of key people

Never doubt that a small group of thoughtful, committed citizens canchange the world. Indeed, it is the only thing that ever has.—Margaret Mead

As you execute your organization or unit's implementation plan, be sure to enlist thesupport and involvement of key employees within—and outside of—your group. Thismeans assembling a team with the right blend of leadership skills, authority, resources,and expertise. Ask yourself the following questions to ensure the effectiveness of yourteam:

Do key leaders support the change effort?Do members of the team have the relevant expertise to do the job and makeintelligent decisions?Do team members have a range of differing points of view so that they can analyzeand address problems creatively?Does the team include people with sufficient credibility to ensure that employeesand management will treat its decisions seriously?Does the team include people with demonstrated leadership skills?Are the team members capable of foregoing their personal immediate interests in


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favor of the larger organizational goal?

If you answer "no" to any of these questions, it might be a good idea to revisit your teamchoices.

Activity: Some assembly requiredActivity: Some assembly requiredActivity: Some assembly requiredActivity: Some assembly required


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Frederic, a research director at BestPharma, has been asked to initiate strategicpartnerships with universities to facilitate new-product testing. He assembles ateam comprising the heads of several major research projects. One team member,Sasha, expresses excitement about getting access to the resources of localacademic institutions to use in her research. Another, Ty, says he wants to push forthe opportunity to test his product in hospitals.

What mistake has Frederic made in assembling his team?

The team members are not credible in their fields.

Not the best choice.Not the best choice.Not the best choice.Not the best choice. As heads of major projects, all theteam members are likely credible in their fields. Theircredibility will make it easier for them to convince othersof the change initiative's value.

The team members will not be able to benefit directly from the change.

Not the best choice.Not the best choice.Not the best choice.Not the best choice. Several team members do seempositioned to benefit directly in some respects from thenew strategic partnerships. When a change team'smembers benefit from the proposed change, they feelmore enthusiasm for implementing the new plan.

The team members favor immediate personal interests over the company'sgoals.

Correct choice.Correct choice.Correct choice.Correct choice. Some of these team members seemmore focused on how they might best benefit from thenew strategic partners than they are on how the changewill create important advantages for the companyoverall. This disproportionate focus on individual gainmay cause problems during implementation of thechange initiative.

Susan, a process improvement manager for Clayburn Associates, a hospitalityservices company, has been charged with reshaping her division's culture to bettersupport Clayburn's strategic goals.

Traditionally, employees in this division have followed mandates handed down bytheir direct supervisor. Susan has been asked to change the division's culture sothat employees provide input to their supervisors on key decisions. Top executivesbelieve that a more empowered culture will lead to greater efficiency and creativity,two qualities essential to the company's high-level strategy. The supervisors inSusan's division don't support this change, because they're worried it will undercut


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Craft an implementation planCraft an implementation planCraft an implementation planCraft an implementation plan

While a vision may guide and inspire employees during a change process, an organizationor unit needs an implementation plan for what to do, and when and how to do it. Such aplan ensures that everyone's efforts are aligned with the goals of the change program.

What are the characteristics of an effective unit implementation plan? A plan should:

Be simpleBe simpleBe simpleBe simple. An overly complex plan may confuse and frustrate participants in thechange effort. Make your plan clear, concise, and coherent.Be created by people at all affected levelsBe created by people at all affected levelsBe created by people at all affected levelsBe created by people at all affected levels. An implementation plan should not beimposed on the people asked to move it forward. Rather, the people affected by thechange should be involved in the creation of the plan. If people have played a part inthe development of the plan, they will be more likely to support it.Be structured in achievable chunksBe structured in achievable chunksBe structured in achievable chunksBe structured in achievable chunks. Overly ambitious plans are usually doomed tofailure. Build a plan that can be tackled in manageable, achievable chunks.Specify roles and responsibilitiesSpecify roles and responsibilitiesSpecify roles and responsibilitiesSpecify roles and responsibilities. Establishing accountability in anyimplementation plan is essential. Define clear roles and responsibilities from thebeginning to avoid any confusion later.Be flexibleBe flexibleBe flexibleBe flexible. Change programs seldom follow their planned trajectories ortimetables. Thus, a good implementation plan is open to revision.

Support the plan with consistent behaviors and messagesSupport the plan with consistent behaviors and messagesSupport the plan with consistent behaviors and messagesSupport the plan with consistent behaviors and messages

Once the need for change has beenarticulated convincingly and broad supporthas been enlisted, that support must bemaintained through consistent behaviorsand messages.

For example, consider an organization thatwas being restructured. All divisions wereasked to reduce expenses. Senior

managers and unit heads set the tone byflying coach on commercial flights. Instead of hiring limousines to pick them up at theairport, they took cabs. And instead of eating overpriced meals at fancy restaurants, theydined in more modest eateries. Other managers followed suit. People within the

organization quickly took notice.

Develop enabling structuresDevelop enabling structuresDevelop enabling structuresDevelop enabling structures

Enabling structures are the activities and programs that underpin successfulimplementation and are a critical part of the overall plan. Such structures include:

Pilot programsPilot programsPilot programsPilot programs. These programs give people opportunities to grapple withimplementation and its problems on a smaller, more manageable scale. Pilots aretest beds in which implementers can experiment with change initiatives beforerolling them out more broadly.


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Training programsTraining programsTraining programsTraining programs. These programs provide employees with opportunities toimprove their skills so that they can contribute more effectively to the changeinitiative.Reward systemsReward systemsReward systemsReward systems. These programs reward employees for results and behaviors thatare aligned with the change program. Be sure to visibly recognize and reward peoplewho have contributed to the successful generation of short-term wins.

Leading people through changeLeading people through changeLeading people through changeLeading people through change


A good example of changing the mindset was Doreen, who had been in collections for 26years. I promoted her to Head of Collections. I remember seeing her one day about twomonths after she had been promoted, and she was all smiling and proud of herself. Iasked "What are you doing today, Doreen?" And she said "Oh, we're changing ourexception report. We're running it differently, and we found some accounts that wehadn't really paid attention to before because we'd been running it the same way forabout five years."

Just because she had been given the opportunity to lead the group, she was thinkingdifferently, and that was making a difference. There's a gentleman, who was an AssistantController and is now our Treasurer, whose whole life has changed. His whole demeanorhas changed. He has been able to do things that he never was able to do, and here he isputting in a cash management system, negotiating our insurance, and managing a $1billion portfolio with external advisers. This person's whole life has changed. And otherpeople in the department see that.

Times of change often require a leader to take their department through an uneasytransitioning period. In such times, a leader needs to be aware that no matter how greatthe vision, they will not get there without the buy-in of their people.

Amy ButteAmy ButteAmy ButteAmy Butte

Former CFO, New York Stock ExchangeFormer CFO, New York Stock ExchangeFormer CFO, New York Stock ExchangeFormer CFO, New York Stock Exchange

Amy Butte is the Chief Financial Officer of Man Financial.

Ms. Butte started her career in equity research at Merrill Lynch, and also worked at BridgeTrading Co. Inc., Merrin Financial, and Andersen Consulting.

Ms. Butte then moved to Bear Stearns & Co., Inc., where she became a senior ManagingDirector in equity research, responsible for coverage of the brokerage, asset-gathering,and financial technology industries.

Following this, Ms. Butte became Chief Strategist and Chief Financial Officer with CreditSuisse First Boston's financial services division. There she helped lead the development ofthe firm's global asset-gathering division and the sale of the firm's correspondentclearing business, Pershing, to the Bank of New York.

Ms. Butte joined the NYSE in February 2004 as Executive Vice President. She became ChiefFinancial Officer two months later. In this role, she was responsible for all NYSE financialplanning and operations.


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Additionally, Ms. Butte serves on the Corporate Advisory Board of the New York CityBallet, and is an active member of the New York Women's Foundation.

Celebrate milestonesCelebrate milestonesCelebrate milestonesCelebrate milestones

Change initiatives can be frustrating andtake a long time. It is therefore critical tocelebrate milestones once they have beenreached. Taking the time to celebrate isimportant because it acknowledgespeople's hard work, boosts morale, keepsup the momentum, and neutralizesskepticism about the change effort.

Some managers, however, make the mistake of celebrating milestones before they'veactually been achieved. Declaring premature victory only dissipates the sense of urgencyneeded to keep people motivated about the change initiative.

Communicating ChangeCommunicating ChangeCommunicating ChangeCommunicating Change

Develop a comprehensive communication planDevelop a comprehensive communication planDevelop a comprehensive communication planDevelop a comprehensive communication plan


Effective communication sets the tone for the change program and is critical toimplementation. Everyone—from senior management to unit and group heads—shouldhave communication plans in place in order to make employees understand why thechange is taking place, what the change program is intended to do, and how long it willtake. The communications also must inform employees about key decisions that havebeen made and changes that have been incorporated into the implementation plan.

There is no such thing as overcommunicating information about a change effort. Effectiveand ongoing communication is absolutely critical throughout all phases of a changeprogram. Senior managers, unit heads, and group leaders need to have strongcommunication plans in place to provide stakeholders with necessary information aboutthe change initiatives. Stakeholders may include: supervisors, peers, colleagues in otherparts of your organization, direct reports, as well as suppliers or vendors, shareholders,and even customers.

What to communicateWhat to communicateWhat to communicateWhat to communicate

Communicating the change program begins by looking at it from the perspective of eachof your key stakeholders. Try to identify what would energize and inspire them to achievethe goals of the change effort. Specifically, they will want—and need—to know:

What the change program is and what it plans to doWhat the change program is and what it plans to doWhat the change program is and what it plans to doWhat the change program is and what it plans to do. Define what the change is,what the organization hopes to achieve with it, how it will improve the business, and


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how the improvements will benefit employees.Why the change is taking placeWhy the change is taking placeWhy the change is taking placeWhy the change is taking place. Inform people about the business reasonsunderpinning the change program. Many people will not have been involved inidentifying the business problems and developing solution alternatives. Share thisinformation with your group and discuss the various options that were available andwhy you selected the solution you did.What the scope of the change program isWhat the scope of the change program isWhat the scope of the change program isWhat the scope of the change program is. Describe how long the changeprogram will take and discuss the implementation plan. Some people will be moreaffected by change projects than others, which might lead to fear-generatingspeculation. Fear and uncertainty tend to paralyze a group and stall its efforts. Youcan short-circuit these negative emotions by providing the facts. Be up-front andhonest about the change program—even if it contains bad news. Also remind peoplethat certain things won't change—and explain exactly what will remain constantthroughout the effort. This will help anchor uneasy employees.What hurdles stand in the way of implementationWhat hurdles stand in the way of implementationWhat hurdles stand in the way of implementationWhat hurdles stand in the way of implementation. There are bound to bebarriers to successful implementation. People should be made aware of thesebarriers so that they can be better anticipated.What the criteria for success are and how success will be measuredWhat the criteria for success are and how success will be measuredWhat the criteria for success are and how success will be measuredWhat the criteria for success are and how success will be measured. Definesuccess clearly and establish measures for what you aim to accomplish.How people will be rewarded for successHow people will be rewarded for successHow people will be rewarded for successHow people will be rewarded for success. People need incentives for the addedwork and disruptions that change requires. Be very clear about how individuals willbe rewarded for progress toward change goals.

Effecting change through active engagement with stakeholdersEffecting change through active engagement with stakeholdersEffecting change through active engagement with stakeholdersEffecting change through active engagement with stakeholders


Communication is a key part of any change management. You've got to get people tounderstand what it is you're trying to solve, how you're going to go about doing it, andwhat their role needs to be to bring that change about.

I thought I was really cracking this very well when I was in Newham. I thought I had aninspirational vision that was about the borough and the people in it. It was what peoplecame to work in the council to address, so I thought it was going with the flow. But someof the people who I'd brought in to work with me said: "You need to have feedback tofind out if what you're believing to have happened over the last year or so really has." Iwas persuaded that probably was a good idea, so we undertook a series of stakeholdersurveys—from the staff, the front line and from other agencies with whom we worked—aswell as from the public.

I couldn't have been more depressed when the staff survey came back—you could havelifted me off the floor. The good news was that most of them knew I was there whereaspreviously, there had been an invisibility around the chief executive's role and aperplexity about whether you needed one and what one was for. At least I'd cracked thatand people knew I'd arrived. But most people had never heard of the strategy. I think onlyabout 20 percent of people had heard that there was this vision for putting Newham onthe map, and about 80 percent of those were absolutely opposed to it. I thought: "I'vespent the last year consulting people, doing all this grass-roots research, really engagingpeople in discussion, thinking carefully about how I presented it, talking around the placeconstantly, and I thought we'd really done it." But the lesson was that you cannotunderestimate the number of times you need to give this message. You just have to say


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the same things—simply and repeatedly—so that the core elements of your values andvision are clearly understood.

Effective change comes through engaging people in their own workplaces, taking onboardtheir legitimate and hard-won experiences, and making sure that you make your visionwork for them.

Dr. Wendy ThomsonDr. Wendy ThomsonDr. Wendy ThomsonDr. Wendy Thomson

Former Head, The Office of Public Services ReformFormer Head, The Office of Public Services ReformFormer Head, The Office of Public Services ReformFormer Head, The Office of Public Services Reform

Dr. Wendy Thomson was Assistant Chief Executive of the London Borough of Islingtonbefore taking up the role of Chief Executive of the national charity Turning Point.

She then became Chief Executive of the London Borough of Newham, which led a radicalapproach to tackling poverty through regeneration and improving the performance oflocal services, before leaving to join the Audit Commission as Director of Inspection.

In December 2004, she was appointed Chief Executive of the Local GovernmentLeadership Center, a role she has taken up on secondment from her present role as thePrime Minister's adviser on public services reform. However, she will also continue asHead of the Office of Public Sector Reform.

She took up a new appointment to McGill University in Montreal, as Professor to lead theSchool of Social Work and Social Policy, in September 2005.

Dr. Wendy Thomson is on the Board of the Industrial Society, the charity Interchange, andhas also served on the Government's Urban Task Force.

Delivering the messageDelivering the messageDelivering the messageDelivering the message

When crafting your communication plan, be sure to use a diverse set of communicationstyles. In addition to staff meetings, stand-up presentations, and e-mails, consider suchother approaches to disseminating information as a monthly newsletter, hosted events,individual meetings, and an intranet site devoted to issues surrounding the change effort.The goal is to generate as many communications as necessary to get the message of thechange program across.

Above all, make communication an ongoing, two-way proposition. While it is importantto share information, it is equally important to listen to what others have to say. Take thetime to ask employees how they are doing and how they perceive the change programinitiatives. Listening to their concerns and different points of view will help you keepeveryone motivated and invested in the change program.


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Understanding Reactions to ChangeUnderstanding Reactions to ChangeUnderstanding Reactions to ChangeUnderstanding Reactions to Change

Anticipate positive and negative reactions to changeAnticipate positive and negative reactions to changeAnticipate positive and negative reactions to changeAnticipate positive and negative reactions to change

Even when you've taken all the stepsnecessary to implement a positive andsuccessful change program, you may findthat peoples' reactions to change vary.Organizations are social entities comprisedof people who have different personalities,perspectives, emotions, and levels ofauthority. Some people welcome theopportunities that change brings, whileothers fear change and don't want to let go of the status quo. As a manager, it's your jobto assess, leverage, and deal with people's individual reactions to change.

The following list shows some of the reasons people embrace or resist change.

Why people support change Why people resist change

They believe that thechange makes senseand is the rightcourse of action.They respect thepeople leading thechange effort.They expect newopportunities andchallenges to comefrom the change.They were involved inplanning andimplementing thechange program.They believe that thechange will result inpersonal gain.They enjoy theexcitement ofchange.

They believe thatchange is unnecessaryor will make thesituation worse.They don't trust thepeople mandating orleading the changeeffort.They don't like the waythe change has beenintroduced.They are not confidentthe change willsucceed.They have had noinput in planning andimplementing thechange program.They feel that changewill mean personalloss—of security,money, status, orfriends.They believe in thestatus quo.They've alreadyexperienced a lot of


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change and can'thandle any moredisruption.

Rethink resistersRethink resistersRethink resistersRethink resisters


Resisters are commonly seen as people who refuse to accept or adapt to change. They'reperceived as inflexible, unaccommodating, and lacking team spirit. As such, resisters areconsidered obstacles to be overcome. While some resisters can undermine a changeeffort, it is shortsighted to think all resisters will, or even fundamentally desire, to do so.

Resistance implies energy—energy that can be worked with, and possibly redirected.Instead of viewing resistance as an obstacle, try to understand its sources and motives.Doing so may uncover opportunities for improving the change effort. Resisters may havevalid concerns that need to be addressed. Put their perspectives to use for the changeeffort and make them a part of the solution.

Address resistanceAddress resistanceAddress resistanceAddress resistance

If you want to make enemies, try to change something.—Woodrow Wilson

If you encounter resisters, try to gain their support by:

Encouraging them to openly express their thoughts and feelings about the changeprogramListening carefully to their concerns, exploring their fears and taking their commentsseriouslyEngaging them in the planning and implementation processes—making them a partof the solutionIdentifying those who have something to lose and anticipating how they mightrespondHelping them find new roles either in your group or somewhere else in theorganization—roles that represent genuine contributions and mitigate their losses

Also, as you consider resisters, be sure to evaluate what part you may be playing incausing their resistance. It's possible that your approach to managing change or yourleadership style may be threatening to others, thereby causing unnecessary friction andconflict.

Taking Care of Yourself During ChangeTaking Care of Yourself During ChangeTaking Care of Yourself During ChangeTaking Care of Yourself During Change

Personal well-beingPersonal well-beingPersonal well-beingPersonal well-being


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Because change programs are almostalways disruptive, they can take both aphysical and emotional toll on thoseinvolved. While it's important to help youremployees adapt and adjust to change, it'sequally important for you to take stock ofyour own reactions to the change programand reduce any feelings of stress andanxiety that you may experience duringthe transition.

Since adapting to change can be arduous, you need to maintain your physical well-beingand nurture your psyche.

For example:

Get enough sleepPay attention to diet and exercise

Take occasional breaks at the officeRelax with friendsEngage in hobbies

These are not forms of escapism. Rather, they are practical ways of exerting control overyour life during a period of flux.

Act to overcome powerlessnessAct to overcome powerlessnessAct to overcome powerlessnessAct to overcome powerlessness

If a change program has been introduced without your input or prior knowledge, you mayexperience feelings of powerlessness. One antidote to this sensation is to work with yourboss to define your role in the new direction the company is taking. Doing so ensuresthat your expectations are aligned with those of your supervisor's and that you havesome control over the changes taking place.

Another antidote to feeling powerless is to establish a sense of personal control in otherareas of your life.

For example, you may have always wanted to learn Spanish and might decide to enroll in a

Spanish immersion class. Doing so gives you a sense of purpose and helps you grow inareas outside your organizational life.

Another antidote is to avoid taking on other efforts that sap energy. You may find thatthe best way to regain control is to just relax, think, and ponder the events that havetranspired.

Inventory gains and lossesInventory gains and lossesInventory gains and lossesInventory gains and losses

People have choices in how they perceive change. Some choose to focus on the benefits,others tend to focus on the losses. A more constructive approach is to assess the change


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program objectively. You do this by balancing what you will gain against what you willlose. Inventorying personal gains and losses is far different than "looking on the brightside." It is a tangible step that you can take to help you see the change objectively andgather the strength to move on.

Balance emotional investmentsBalance emotional investmentsBalance emotional investmentsBalance emotional investments

Another way people bring greater stability to their lives during times of change is tobalance the emotional investment that they put into their work (how they perform theirjobs and manage their relationships with others) with the emotional investment that theyput into their personal lives (family and social relationships as well as civic and religiousinterests).

Often, when change programs are launched, managers pour all of their emotional energyinto addressing workplace concerns. But it can take weeks—even months—for theseissues or problems to be resolved, weeks and months in which little time is left to nurturepersonal relationships and interests. To avoid such an imbalanced state, it is better tofind equilibrium between the amount of emotion that you invest in the workplace and theamount you devote to your personal life. That way, when one or more activities in theworkplace is uprooted, you can remain steady by creating, strengthening, or derivingsupport from activities in your personal life.

Activity: Choose caring choicesActivity: Choose caring choicesActivity: Choose caring choicesActivity: Choose caring choices


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Cyndi is overseeing a painful downsizing effort in her department at RazorMicrochips. The decision to layoff employees came down from her superiors, muchto her surprise, and she's been working long hours to find the best way toimplement the mandate to minimize the disruption to her staff and to make up forthe lost productivity. Cyndi's boss notices that the stress of the change seems to begetting to her.

What can Cyndi do to reduce her stress and anxiety? Should she take a middaybreak to walk around the building?

Yes

Correct choiceCorrect choiceCorrect choiceCorrect choice. It's a good practice to take occasionalbreaks from stressful work to ensure steadyperformance and a level head. Exercise is another goodway to relieve stress and tension.

No

Not the best choiceNot the best choiceNot the best choiceNot the best choice. It's a good practice to takeoccasional breaks from stressful work to ensure steadyperformance and a level head. Exercise is another goodway to relieve stress and tension.

What can Cyndi do to reduce her stress and anxiety? Should she coach herdaughter's soccer team?

Yes

Not a good choiceNot a good choiceNot a good choiceNot a good choice. Balancing work with your personallife is a good way to reach equilibrium so work does notdominate your life. However, coaching a soccer team isan added responsibility that will likely require a largecommitment of time and energy.

No

Correct choiceCorrect choiceCorrect choiceCorrect choice. Balancing work with your personal lifeis a good way to reach equilibrium so work does notdominate your life. However, coaching a soccer team isan added responsibility that will likely require a largecommitment of time and energy.


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Anticipate changeAnticipate changeAnticipate changeAnticipate change

Change is the law of life. And those who look only to the past or present arecertain to miss thefuture.—John F. Kennedy

Admittedly, inventorying gains and losses and balancing emotions is difficult for a persongoing through a change program. The ability to step back and objectively assess acomplex situation is a skill that many find challenging to master.

Perhaps the best mechanism for coping with change, then, is anticipating it. Those whorecognize that the change process will take time, that its impact will be powerful, andthat they have the strength to manage the transition, are best positioned to navigate thechallenges that typically accompany a change effort.

ScenarioScenarioScenarioScenario

Part 1Part 1Part 1Part 1


Marcus is the head of GenCo, Inc.'s corporate training group. As part of a companywidechange program to reduce costs, senior management has decided to merge his groupwith the organizational development group. He will be responsible for restructuring andmanaging the new department.

The two groups have markedly different emphases. Corporate training offerscompanywide workshops designed to help employees master specific skills, such aslearning a new computer application. Organizational development focuses exclusively onhigh-level executive development. Corporate training uses off-the-shelf training tools,while organizational development uses outside consulting services.

The restructuring will require some people to learn new skills and others to assume newroles and responsibilities—two things that create anxiety among employees. Marcusponders what to say to both groups after he announces the change.

What should Marcus say to employees after announcing the change?What should Marcus say to employees after announcing the change?What should Marcus say to employees after announcing the change?What should Marcus say to employees after announcing the change?

"This is a very doable restructuring. Don't worry. I know we all have the skills neededto implement this change successfully."


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Not the best choiceNot the best choiceNot the best choiceNot the best choice. Denying the challenging aspects of the change itself and theintensity of employees' feelings about it won't help Marcus's group embrace andsupport the initiative. In managing change, Marcus needs to acknowledgeemployees' fears without intensifying them. He also needs to share as muchinformation as possible and discuss the change program in terms of itsbenefits—both for the company and its employees.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. By emphasizing the change in roles and responsibilities,Marcus will only intensify the anxiety that employees already feel. Fear and anxietyencourage people to avoid risks, become internally focused, and communicateincompletely or not at all. In addition, fear and anxiety cost organizations realmoney in the form of increased absenteeism, reduced productivity, and diminishedquality of products and services. When announcing a change program, acknowledgeemployees' fears—but also share as much information as possible and discuss thechange program in terms of its benefits—both for the company and its employees.

Correct choiceCorrect choiceCorrect choiceCorrect choice. To capitalize on change, managers should share as muchinformation as possible with employees. Sharing information means explaining thebig picture behind the change initiative, such as the organization's long-rangestrategy. Managers should also describe the change program in terms of itsbenefits—both for the company and its employees. Finally, managers shouldacknowledge employees' anxieties. For example, allow people to express theirconcerns in productive ways during meetings. When employees can see the bigpicture, perceive the benefits offered by the change, and express their anxieties,they will be more likely to embrace and support the initiative.

"I know this is an anxious time for everyone involved. Let's work together to makesure everyone's roles and responsibilities aren't dramatically altered."

"Due to a tight economy and decreased customer spending, the entire organizationneeds to reduce costs. While the restructuring might seem scary, it will give us newopportunities."



Marcus has shared information about why the change is taking place, discussed thebenefits for both the company and its employees, and listened carefully to peoples'concerns.


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Not the best choiceNot the best choiceNot the best choiceNot the best choice. While this employee's negative comments are frustrating tohear given all the hard work that he and his team have put into the change effort,Marcus needs to address her reactions head-on. When managers encounter pushback (or even direct opposition) such as this, it's important to talk openly withemployees and explore the motives behind their resistance. Hoping that time willchange her mind is a passive approach that fails to address the reasons why shemight be resistant to the change.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. As a manager leading a change initiative, it is Marcus's job toassess and deal with people's reactions to change. Marcus needs to best understandthe nature of the resistance so that he can come up with ways to reengage theemployee or help her find a new role either in his group or somewhere else in theorganization. Delegating this task to someone else sends the message that hedoesn't care about how others are coping with change.

Correct choiceCorrect choiceCorrect choiceCorrect choice. While it may seem like he's putting the employee on the spot,

The next step is to come up with creative ways to combine the two departments so thatthe resulting group is more effective than just a union of the two. Marcus asksexperienced managers from both groups to work with him to create a formalimplementation plan. After a few weeks, the team develops a plan that defines how thegroups will work together, specifies who will need new training, and identifies everyone'snew roles and responsibilities.

One afternoon, Marcus overhears an employee in the hallway talking with anotheremployee about how the change effort is not being well led. This individual ends theconversation by saying, "Things were better before the two groups merged." Marcusreturns to his office and thinks about how to handle this situation.

How might Marcus best deal with this individual's reaction to yourHow might Marcus best deal with this individual's reaction to yourHow might Marcus best deal with this individual's reaction to yourHow might Marcus best deal with this individual's reaction to yourchange program?change program?change program?change program?

Recognize that some employees find change difficult and give her time to adjust

Ask someone in human resources to talk with this individual about coping withchange

E-mail the employee and tell her that he overheard her comments in the hallway andthat he would like to meet with her to discuss her reactions further


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asking to meet with her so that Marcus can talk openly about her reactions to thechange program is the best course of action. It is important to listen to her concernsand examine the motives and rationale behind her resistance. The information thathe receives may provide valuable insights into the change effort that he is leading.For example, this employee might point out a serious flaw in the way he'srestructured the groups—something he had not considered. This, in turn, mightuncover new opportunities to improve the change effort.

Good choiceGood choiceGood choiceGood choice. During a change program, communication is an effective tool formotivating employees. Even though he may have already stated the vision andpurpose of the change, Marcus should repeat the message over and over again.Explain how the change will improve the business and how those improvements willbenefit employees. Doing so will reinforce all the positive reasons why people areworking towards change.

Good choiceGood choiceGood choiceGood choice. During a change program, it is critical to create near-term wins thatfocus everyone's efforts on delivering results. Generating such wins shows peoplethat their hard work makes a difference and that the sacrifices of change are wellworth it.



After talking with the employee, listening to her concerns, and examining the motivesbehind her perceived resistance, Marcus realizes that she is dissatisfied with the changeeffort because she was not involved in the development of the implementation plan.Marcus also learns that she has valuable suggestions for improving the transition. Marcusdecides to seek her input throughout the rest of the change program. He successfullymoves her from passive resister to active supporter.

Five months pass. The momentum that the group had at the beginning of the processbegins to wane. Marcus wonders how to get the team back on track.

What might Marcus do?What might Marcus do?What might Marcus do?What might Marcus do?

Schedule an all-staff meeting where he reiterates the vision of the change program

Create a goal, such as launching 10 new training programs by the end of the year,for people to work toward


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Not a good choiceNot a good choiceNot a good choiceNot a good choice. While celebrating a milestone acknowledges people's hard workand boosts morale, it is a mistake to celebrate a milestone before it has actuallybeen reached. Declaring premature victory dissipates the sense of urgency needed tokeep people motivated about the change initiative.

Not the best choice. Not the best choice. Not the best choice. Not the best choice. While many changes in an organization are generated by theCEO, change can and should be initiated by managers from all levels of a company.Change is about looking for opportunities to improve business performance. Anyone—regardless of professional title or position in the organizational hierarchy—canidentify such opportunities.

Hold a party to celebrate a milestone that has almost been reached

ConclusionConclusionConclusionConclusion

ConclusionConclusionConclusionConclusion

With the help of others from his team, Marcus creates several goals for the group toachieve. These goals focus on near-term, results-driven programs—even though thechange effort is a long-term, sustained one. By generating near-term wins, Marcusboosts morale and shows employees that their hard work has a significant impact on thechange effort.

Managing change isn't easy. But by sharing information, dealing with resistance, andgenerating near-term wins, he can motivate a group to move forward. And by involvingothers in planning and implementation processes, he can inspire a sense of ownershipover the initiative's outcome.

Check Your KnowledgeCheck Your KnowledgeCheck Your KnowledgeCheck Your Knowledge

Question 1Question 1Question 1Question 1

Who should initiate organizational change?Who should initiate organizational change?Who should initiate organizational change?Who should initiate organizational change?

The CEO

Senior executives


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Not the best choice. Not the best choice. Not the best choice. Not the best choice. While many changes in an organization are generated bysenior executives, change can and should be initiated by managers from all levels ofa company. Change is about looking for opportunities to improve businessperformance. Anyone—regardless of professional title or position in theorganizational hierarchy—can identify such opportunities.

Correct choiceCorrect choiceCorrect choiceCorrect choice. Change can and should be initiated by managers from all levels of acompany. Change is about looking for opportunities to improve businessperformance. Anyone—regardless of professional title or position in theorganizational hierarchy—can identify such opportunities.

Correct choiceCorrect choiceCorrect choiceCorrect choice. A merger or acquisition is an example of a structural changeprogram. Such programs attempt to reconfigure the organization in order to achievegreater overall performance.

Not the best choice. Not the best choice. Not the best choice. Not the best choice. A merger or acquisition is not specifically intended to cutcosts. Instead, it is an example of a structural change program. Such programsattempt to reconfigure the organization in order to achieve greater overallperformance. By contrast, a cost-cutting change program focuses on the eliminationof nonessential activities or on other methods for squeezing costs out of operations.

Managers from all levels in a company


A merger or acquisition represents what type of change program?A merger or acquisition represents what type of change program?A merger or acquisition represents what type of change program?A merger or acquisition represents what type of change program?

A structural change program

A cost-cutting change program

A cultural change program


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Not the best choice. Not the best choice. Not the best choice. Not the best choice. A merger or acquisition is not specifically intended to changean organization's culture. Instead, it is an example of a structural change program.Such programs attempt to reconfigure the organization in order to achieve greateroverall performance. By contrast, a cultural change program focuses on altering acompany's operating values, norms of behavior, and the relationship between itsmanagement and employees.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Creating short-term wins is something you do after change isunder way, not before your organization has been primed for change. Encouragingparticipative work within your unit is one step you can take to help yourorganization become change-ready. By developing more participative approaches tohow everyday business is handled—for example, pushing decision making down tothe lowest levels possible, sharing information freely, and encouraging two-waycommunication—you can prime your organization for transition.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Developing an implementation plan is something you do afterchange is under way, not before your organization has been primed for change.Encouraging participative work within your unit is one step you can take to helpyour organization become change-ready. By developing more participativeapproaches to how everyday business is handled—for example, pushing decisionmaking down to the lowest levels possible, sharing information freely, andencouraging two-way communication—you can prime your organization fortransition.


If an organization isn't primed for transition, how might you help itIf an organization isn't primed for transition, how might you help itIf an organization isn't primed for transition, how might you help itIf an organization isn't primed for transition, how might you help itbecome change-ready?become change-ready?become change-ready?become change-ready?

Create short-term wins

Develop a strong implementation plan

Encourage participative work within your unit


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Correct choiceCorrect choiceCorrect choiceCorrect choice. By developing more participative approaches to how everydaybusiness is handled—for example, pushing decision making down to the lowestlevels possible, sharing information freely, and encouraging two-waycommunication—you can prime your organization for transition.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Before creating a vision, you must first clearly define thebusiness problem you want to address through the change. Problem identificationanswers the most important question employees will ask: Why must we undergochange? Your answer lays the foundation for motivating employees to embracechange. Thus, it must be convincing.

Correct choiceCorrect choiceCorrect choiceCorrect choice. The starting point of any effective change effort is a clear definitionof the business problem you want to address through the change. Problemidentification answers the most important question employees will ask: Why must weundergo change? Your answer lays the foundation for motivating your employees toembrace change. Thus, it must be convincing.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Before identifying who will lead the change program, youmust first clearly define the business problem you want to address through thechange. Problem identification answers the most important question employees willask: Why must we undergo change? Your answer lays the foundation for motivatingemployees to embrace change. Thus, it must be convincing.


What is the first step of change management?What is the first step of change management?What is the first step of change management?What is the first step of change management?

Create a vision of the change

Define the business problem

Identify the leadership


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Correct choiceCorrect choiceCorrect choiceCorrect choice. During a change initiative, managers should focus on near-term,results-driven programs. For example, a company might create the following goal:"Within the next 12 months we will increase revenues by 5 percent." Such programsshow people that small gains in a larger change effort are achievable and that theirhard work can have a direct impact on overall business performance.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. This statement is actually true. During a change initiative,many organizations make the mistake of focusing managerial attention on training,team-creation, and other activities that contribute little or nothing to bottom-lineperformance. Instead, managers should focus on near-term, results-drivenprograms. For example, a company might create the following goal: "Within the next12 months we will increase revenues by 5 percent." Such programs show people thatsmall gains in a larger change effort are achievable and that their hard work canhave a direct impact on overall business performance.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. An overly ambitious change-implementation plan is typicallynot effective. People assume that they won't be able to achieve the plan, so theydon't bother trying. The correct answer is that an effective implementation plan isflexible and open to revision—because change programs seldom follow their


Is the following statement true or false? During a change initiative,Is the following statement true or false? During a change initiative,Is the following statement true or false? During a change initiative,Is the following statement true or false? During a change initiative,managers should focus their attention on generating near-term wins.managers should focus their attention on generating near-term wins.managers should focus their attention on generating near-term wins.managers should focus their attention on generating near-term wins.

True

False


An effective implementation plan:An effective implementation plan:An effective implementation plan:An effective implementation plan:

Has very ambitious goals so that people are challenged to improve performance


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planned trajectories or timetables. An effective plan is also concise and coherent;created by people at all affected levels; structured in manageable, achievablesections; and clear in its definitions of roles and responsibilities.

Correct choiceCorrect choiceCorrect choiceCorrect choice. Change programs seldom follow their planned trajectories ortimetables. Thus, a good implementation plan is flexible and open to revision asneeded. It's also concise and coherent; created by people at all affected levels;structured in manageable, achievable sections; and clear in its definitions of rolesand responsibilities.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Implementation plans that are created by a few managers tendnot to receive widespread support because they represent the ideas and preferencesof a small group of people. The correct answer is that an effective implementationplan is flexible and open to revision—because change programs seldom follow theirplanned trajectories or timetables. An effective plan is also concise and coherent;created by people at all affected levels; structured in manageable, achievablesections; and clear in its definitions of roles and responsibilities.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Limiting yourself to one staff meeting a week is not the mosteffective way to communicate all the information that employees need to knowabout a change program. Instead, communicate as often as necessary and in asmany ways possible—for example, through e-mail, one-on-one meetings, or amonthly newsletter. That way, employees will hear about the purpose and goals ofthe change program over and over again—increasing the likelihood that they willembrace the change initiative. You can't overcommunicate information about achange program.

Is flexible and open to revision

Is created by a small group of highly experienced managers


What is the best way to communicate information about a changeWhat is the best way to communicate information about a changeWhat is the best way to communicate information about a changeWhat is the best way to communicate information about a changeprogram to employees?program to employees?program to employees?program to employees?

Once a week during staff meetings


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Not the best choiceNot the best choiceNot the best choiceNot the best choice. Limiting yourself to sending e-mail messages every two weeksis not the most effective way to communicate all the information that employeesneed to know about a change program. Instead, communicate as often as necessaryand in as many ways possible—for example, through e-mail, one-on-one meetings,or a monthly newsletter. That way, employees will hear about the purpose and goalsof the change program over and over again—increasing the likelihood that they willembrace the change initiative. You can't overcommunicate information about achange program.

Correct choiceCorrect choiceCorrect choiceCorrect choice. There is no such thing as overcommunicating information about achange program. Share information as often as necessary and in as many wayspossible—for example, through e-mail, one-on-one meetings, or a monthlynewsletter. That way, employees will hear about the purpose and goals of thechange program over and over again—increasing the likelihood that they willembrace the change initiative.

Correct choiceCorrect choiceCorrect choiceCorrect choice. People need incentives for taking on the added work anddisruptions that change requires. Be very clear about what the criteria for successare, how success will be measured, and how individuals will be rewarded forprogress toward change goals.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. This statement is actually true. Often, managers make the

Every other week by e-mail

As often as necessary and in as many ways as possible


Is the following statement true or false? It is important to explain howIs the following statement true or false? It is important to explain howIs the following statement true or false? It is important to explain howIs the following statement true or false? It is important to explain howpeople will be rewarded for success in achieving a change.people will be rewarded for success in achieving a change.people will be rewarded for success in achieving a change.people will be rewarded for success in achieving a change.

True

False


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mistake of not informing their employees how they will be rewarded if the change isachieved. People need incentives for taking on the added work and disruptions thatchange requires. Be very clear about what the criteria for success are, how successwill be measured, and how individuals will be rewarded for progress toward changegoals.

Correct choiceCorrect choiceCorrect choiceCorrect choice. Exploring the person's concerns and taking his comments seriouslyshow that you want to better understand the nature of his resistance and work withhim as an active partner in the change program. Resisters are commonly viewed asinflexible, unaccommodating, and lacking team spirit. While some resisters canundermine a change effort, they don't all possess such negative attributes. Find waysto get to the root of the resistance. Then try to redirect the individual's energy insupport of the change effort.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Though you may eventually move the individual out of yourgroup, this is a traumatic event and therefore shouldn't be your first response.Instead, talk with him to better understand the nature of his resistance, and listencarefully to his concerns. Often, resisters are viewed as inflexible,unaccommodating, and lacking team spirit. While some resisters can undermine achange effort, they don't all possess such negative attributes. Find ways to get to theroot of the resistance. Then try to redirect the individual's energy in support of thechange effort.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Though people can work through resistance to change ontheir own, this shouldn't be your first response—because you need to addressresistance promptly. Instead, talk with the employee to better understand the natureof his resistance, and listen carefully to his concerns. Often, resisters are viewed as


If an employee opposes your change program, what should your firstIf an employee opposes your change program, what should your firstIf an employee opposes your change program, what should your firstIf an employee opposes your change program, what should your firstresponse be?response be?response be?response be?

Encourage him to express his thoughts, and then listen to his concerns

Move the person out of your group so that he doesn't sabotage your plans

Let the person work through his feelings on his own. Change causes some degree ofdisruption, and people need time to adjust


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inflexible, unaccommodating, and lacking team spirit. While some resisters canundermine a change effort, they don't all possess such negative attributes. Find waysto get to the root of the resistance. Then try to redirect the individual's energy insupport of the change effort.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. Implementation plans are components of a change effort, notenabling structures. Enabling structures are activities and programs that underpinsuccessful implementation. A training program is an enabling structure because itprovides employees with opportunities to improve their skills so they can contributemore effectively to the change initiative. Pilot programs and reward systems areother examples of enabling structures. Pilot programs give people an opportunity toexperiment with projects before they are rolled out more broadly. Reward systemsacknowledge people for achieving results and demonstrating behaviors that supportthe change program.

Correct choiceCorrect choiceCorrect choiceCorrect choice. A training program is an enabling structure because it providesemployees with opportunities to improve their skills so they can contribute moreeffectively to the change initiative. Pilot programs and reward systems are otherexamples of enabling structures. Pilot programs give people an opportunity toexperiment with projects before they are rolled out more broadly. Reward systemsacknowledge people for achieving results and demonstrating behaviors that supportthe change program.

Not the best choiceNot the best choiceNot the best choiceNot the best choice. A mission and vision of a change program are elements of achange program, not enabling structures. Enabling structures help people contributemore effectively to a change initiative. Thus training programs are examples ofenabling structures. A training program provides employees with opportunities toimprove their skills so that they can contribute more effectively to the changeinitiative. Pilot programs and reward systems are other examples of enabling


Which of the following are examples of enabling structures?Which of the following are examples of enabling structures?Which of the following are examples of enabling structures?Which of the following are examples of enabling structures?

Implementation plans

Training programs

A mission and vision of a change program


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structures. Pilot programs give people an opportunity to experiment with projectsbefore they are rolled out more broadly. Reward systems acknowledge people forachieving results and demonstrating behaviors that support the change program.

StepsStepsStepsSteps

Steps for assessing your reactions to changeSteps for assessing your reactions to changeSteps for assessing your reactions to changeSteps for assessing your reactions to change

Reflect on past changes that you've experiencedReflect on past changes that you've experiencedReflect on past changes that you've experiencedReflect on past changes that you've experienced.1.

Consider positive and negative changes that you've undergone either on the job orin your personal life. Recall how you felt during each of those changes. Were youexcited? Shocked? Angry? A mix of different emotions?

Analyze your reactions to those changes.Analyze your reactions to those changes.Analyze your reactions to those changes.Analyze your reactions to those changes.2.

For those times when you reacted positively, identify the factors surrounding thechange that resulted in positive reactions. Did you support the change because youthought it was the right course of action? Because you respected the peoplemandating or leading the change? Because you thought the change initiative mightresult in some form of personal gain?

For those times that you reacted negatively, identify the causes of your frustration,shock, or other negative reactions. Did you resist the change because you thought itwas unnecessary or would make the situation worse? Because you weren't involvedin the planning and/or implementation of the change initiatives? Because you didn'twant to let go of the status quo?

Evaluate what you did to successfully manage your reactions to thoseEvaluate what you did to successfully manage your reactions to thoseEvaluate what you did to successfully manage your reactions to thoseEvaluate what you did to successfully manage your reactions to thosechanges.changes.changes.changes.

3.

What worked well and why? What didn't work well and why? What steps could youtake to improve the way you react to change? Answers to these questions willprepare you better for the next time you encounter change.

Steps for addressing resistance to changeSteps for addressing resistance to changeSteps for addressing resistance to changeSteps for addressing resistance to change

Encourage people to openly express their thoughts and feelings about theEncourage people to openly express their thoughts and feelings about theEncourage people to openly express their thoughts and feelings about theEncourage people to openly express their thoughts and feelings about thechangechangechangechange.

1.

Create an environment that fosters open communication and exchange of ideas.Actively reach out to employees—using informal hallway conversations, more formalone-on-one meetings, e-mail, and other channels—and ask them how they'remanaging the change effort.


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When resistance occurs, listen carefullyWhen resistance occurs, listen carefullyWhen resistance occurs, listen carefullyWhen resistance occurs, listen carefully.2.

While it's important to explain the benefits of a change program, employees who areresistant to the change don't always want to hear an explanation of why the changeis necessary. Instead, work to understand their resistance by exploring theirconcerns and by taking their feelings and comments seriously.

Treat resistance as a problem to solve, not as a character flawTreat resistance as a problem to solve, not as a character flawTreat resistance as a problem to solve, not as a character flawTreat resistance as a problem to solve, not as a character flaw.3.

Resisters may provide valuable information about a change program—informationthat you may not be aware of. For example, a resister may reveal an unanticipatedconsequence of a projected change that could result in a potential threat to eitherthe unit or organization. Instead of dismissing the resister as someone who isnegative or inflexible, try to understand his or her rationale and sources ofmotivation. Doing so can open up new, unexpected possibilities for realizingchange.

Once you understand the nature of their concerns, bring people together toOnce you understand the nature of their concerns, bring people together toOnce you understand the nature of their concerns, bring people together toOnce you understand the nature of their concerns, bring people together todiscuss and deal with the perceived problemsdiscuss and deal with the perceived problemsdiscuss and deal with the perceived problemsdiscuss and deal with the perceived problems.

4.

If people feel that they've been heard and have had opportunities to discussproblems and suggest solutions, they are more likely to support the decisions madearound the change initiative. Address all concerns head-on and provide people withas much information as possible.

Steps for creating an effective implementation planSteps for creating an effective implementation planSteps for creating an effective implementation planSteps for creating an effective implementation plan

Involve people at all levels in the planning and implementation processesInvolve people at all levels in the planning and implementation processesInvolve people at all levels in the planning and implementation processesInvolve people at all levels in the planning and implementation processes.1.

An implementation plan should not be imposed on the people asked to move itforward. Rather, the people affected by the change should be involved in thecreation of the plan. If people have played a part in the development of the plan,they will be more likely to support it.

Structure the plan in achievable chunksStructure the plan in achievable chunksStructure the plan in achievable chunksStructure the plan in achievable chunks.2.

Overly ambitious plans are usually doomed to failure. Build a plan that can betackled in manageable, achievable chunks.

Specify roles and responsibilitiesSpecify roles and responsibilitiesSpecify roles and responsibilitiesSpecify roles and responsibilities.3.

Establishing accountability in any implementation plan is essential. Define clear rolesand responsibilities from the beginning to avoid any confusion later.


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Make the plan simpleMake the plan simpleMake the plan simpleMake the plan simple.4.

An overly complex plan may confuse and frustrate those participating in the changeeffort. Make your plan clear, concise, and coherent.

Build in flexibilityBuild in flexibilityBuild in flexibilityBuild in flexibility.5.

Change programs seldom follow their planned trajectories or timetables. Thus, agood implementation plan is open to revision.

TipsTipsTipsTips

Tips for avoiding common change mistakesTips for avoiding common change mistakesTips for avoiding common change mistakesTips for avoiding common change mistakes

Don't move forward with a change program unless strong leadership is inDon't move forward with a change program unless strong leadership is inDon't move forward with a change program unless strong leadership is inDon't move forward with a change program unless strong leadership is inplace at all levels in an organizationplace at all levels in an organizationplace at all levels in an organizationplace at all levels in an organization. If you have lots of mediocre managersrunning a company, your change program won't get very far.Don't underestimate the power of a visionDon't underestimate the power of a visionDon't underestimate the power of a visionDon't underestimate the power of a vision. Without a sound vision, a changeeffort can easily dissolve into a list of confusing, incompatible, and time-consumingprojects that go in the wrong direction or nowhere at all.Don't undercommunicate the purpose of the change and actions plannedDon't undercommunicate the purpose of the change and actions plannedDon't undercommunicate the purpose of the change and actions plannedDon't undercommunicate the purpose of the change and actions planned.Without credible information, and a lot of it, employees won't be motivated tochange.Don't ignore the importance of generating short-term winsDon't ignore the importance of generating short-term winsDon't ignore the importance of generating short-term winsDon't ignore the importance of generating short-term wins. If employees donot see compelling evidence that the change program is producing results, they willlose enthusiasm and momentum.Don't impose solutions that have been suggested or developed by someoneDon't impose solutions that have been suggested or developed by someoneDon't impose solutions that have been suggested or developed by someoneDon't impose solutions that have been suggested or developed by someoneelseelseelseelse. Instead, develop solutions with the people in the unit(s) who will be mostaffected by the change.Don't attempt to change everything at onceDon't attempt to change everything at onceDon't attempt to change everything at onceDon't attempt to change everything at once. Often, managers try to do too muchtoo fast. Unless the organization is in a major crisis, roll out change initiatives on asmaller-scale—for example, in a unit that has strong leadership and a collaborativeteam of employees. Once the change program takes hold, launch similar initiatives inother units, letting change spread slowly throughout the organization.

Tips for creating a guiding visionTips for creating a guiding visionTips for creating a guiding visionTips for creating a guiding vision

Describe a desirable futureDescribe a desirable futureDescribe a desirable futureDescribe a desirable future—one that people would be happy to have right now ifthey could.Make the vision compellingMake the vision compellingMake the vision compellingMake the vision compelling. It must be better than the status quo so that peoplewill gladly undertake the effort and sacrifice necessary to attain it.Ensure that the vision is realisticEnsure that the vision is realisticEnsure that the vision is realisticEnsure that the vision is realistic. It must be perceived as being within the graspof a hardworking group of people.Focus on a manageable and coherent set of goalsFocus on a manageable and coherent set of goalsFocus on a manageable and coherent set of goalsFocus on a manageable and coherent set of goals.Build in flexibilityBuild in flexibilityBuild in flexibilityBuild in flexibility so that if the circumstances change, the vision can change too.Make sure the vision is easy to communicateMake sure the vision is easy to communicateMake sure the vision is easy to communicateMake sure the vision is easy to communicate to all levels of people, both inside


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and outside of the organization.

Tips for empowering employees to changeTips for empowering employees to changeTips for empowering employees to changeTips for empowering employees to change

Demonstrate trust and respect for employeesDemonstrate trust and respect for employeesDemonstrate trust and respect for employeesDemonstrate trust and respect for employees—and do it regularly.Encourage innovative thinkingEncourage innovative thinkingEncourage innovative thinkingEncourage innovative thinking.DelegateDelegateDelegateDelegate, and don't micromanage.Be flexibleBe flexibleBe flexibleBe flexible, and demonstrate that flexibility to others.Encourage risk-takingEncourage risk-takingEncourage risk-takingEncourage risk-taking and be tolerant of failures.Spread decision-making authority aroundSpread decision-making authority aroundSpread decision-making authority aroundSpread decision-making authority around.

Tips for making near-term wins effectiveTips for making near-term wins effectiveTips for making near-term wins effectiveTips for making near-term wins effective

Make the wins visibleMake the wins visibleMake the wins visibleMake the wins visible so that people see firsthand that their hard work is making adifference toward change.Make the wins unambiguousMake the wins unambiguousMake the wins unambiguousMake the wins unambiguous. Small gains, such as conducting a productivemeeting or resolving a scheduling discrepancy, are not examples of short-term wins.Ensure that the wins have in fact been wonEnsure that the wins have in fact been wonEnsure that the wins have in fact been wonEnsure that the wins have in fact been won and that you're not declaring victoryprematurely.Make sure the wins are related to the change effortMake sure the wins are related to the change effortMake sure the wins are related to the change effortMake sure the wins are related to the change effort.

Self-assessment for managers of changeSelf-assessment for managers of changeSelf-assessment for managers of changeSelf-assessment for managers of change


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Worksheet for communicating changeWorksheet for communicating changeWorksheet for communicating changeWorksheet for communicating change


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Worksheet for addressing resistance to changeWorksheet for addressing resistance to changeWorksheet for addressing resistance to changeWorksheet for addressing resistance to change

Worksheet for overcoming obstacles to changeWorksheet for overcoming obstacles to changeWorksheet for overcoming obstacles to changeWorksheet for overcoming obstacles to change


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Online ArticlesOnline ArticlesOnline ArticlesOnline Articles

David A. Garvin and Michael A. Roberto. "Change Through Persuasion." Harvard BusinessReview OnPoint Enhanced Edition. Boston: Harvard Business School Publishing, January2006.

In this article, the authors contend that to make change stick, leaders must conduct aneffective persuasion campaign—one that begins weeks or months before the turnaroundplan is set in concrete. Turnaround leaders must convince people that the organization is

truly on its deathbed—or, at the very least, that radical changes are required if theorganization is to survive and thrive. And they must demonstrate through word and deedthat they are the right leaders with the right plan. Accomplishing all this calls for afour-part communications strategy. Using the example of the dramatic turnaround at

Boston's Beth Israel Deaconess Medical Center, the authors elucidate the inner workings ofa successful change effort.

Kerry A. Bunker and Michael Wakefield. "Leading in Times of Change." HarvardManagement Update, May 2006.


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During change, leaders must perform a delicate balancing act: They have to make toughdecisions without losing sight of the emotions and concerns of employees. To do this, theauthors argue, requires managing the tension between seemingly opposing tasks and

capabilities, for instance: "Show a sense of urgency" and "Demonstrate realistic patience."The article guides you in striking the right balance to drive successful change. Includes thegraphic The Transition Leadership Wheel.

Harvard ManageMentor Web Site

Visit the Harvard ManageMentor Web site to explore additional online resources availableto you from Harvard Business School Publishing.

ArticlesArticlesArticlesArticles

Click on a link below to go to Harvard Business Online, the Web site of Harvard BusinessSchool Publishing, where you can browse or purchase products. Your HarvardManageMentor program will remain open while you are at the site.

Angelia Herrin. "You're Ready for Top-Line Growth—Are Your Employees?" HarvardManagement Update, April 2004.

A change in strategy is not enough. Employees need to prioritize their work and approachresources new ways. Managers can smooth and speed changes by understanding that asuccessful transition requires the completion of three phases: the ending, the neutral zone,

and the new beginning. Change management expert William Bridges tells managers how toaccomplish this.

Larry Hirschhorn. "Campaigning for Change." Harvard Business Review OnPoint EnhancedEdition. Boston: Harvard Business School Publishing, 2002.

Successful change programs have one thing in common: They employ three distinct butlinked campaigns—political, marketing, and military. A political campaign creates acoalition strong enough to support and guide the initiative. A marketing campaign must go

beyond simply publicizing the initiative's benefits: It focuses on listening to ideas thatbubble up from the field as well as on working with lead customers to design the initiative.A clearly articulated theme for the transformation program must also be developed. Amilitary campaign deploys executives' scarce resources of attention and time. Successful

managers launch all three campaigns simultaneously. The three always feed on oneanother, and if any one campaign is not properly implemented, the change initiative isbound to fail.

John P. Kotter. "Leading Change: Why Transformation Efforts Fail." Harvard BusinessReview OnPoint Enhanced Edition. Boston: Harvard Business School Publishing, 2000.

In the past decade, the author has watched more than 100 companies try to remakethemselves into better competitors. Their efforts have gone under many banners: totalquality management, reengineering, right-sizing, restructuring, cultural change, and

turnarounds. A few of these efforts have been very successful. A few have been utterfailures. Most fall somewhere in between, with a distinct tilt toward the lower end of thescale. Among the lessons learned: Change involves numerous phases that, together,usually take a long time; skipping steps only creates an illusion of speed and never

produces a satisfying result.


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BooksBooksBooksBooks


Eric Abrahamson. Change Without Pain: How Managers Can Overcome Initiative Overload,Organizational Chaos, and Employee Burnout. Boston: Harvard Business School Press,2003.

Columbia Business School Professor Abrahamson argues that although change is necessaryfor companies to grow and prosper, many organizations have blindly taken the mandatetoo far. The "creative destruction" advocated by change champions has resulted in a painfulcycle of initiative overload, change-related chaos, and widespread employee cynicism. To

reverse this cycle, Abrahamson says, companies must learn to change how they change.Drawing on a decade of research and dozens of company examples, this book offers apositive new approach to change called "creative recombination." Rather than obliteratingand then reinventing, creative recombination seeks a sustainable, repeatable

transformation by reconfiguring the people, structures, culture, processes, and networksthe company already has.

John P. Kotter. The Heart of Change: Real-Life Stories of How People Change TheirOrganizations. Boston: Harvard Business School Press, 2002.

For individuals in every walk of life and in every stage of change, this compact,no-nonsense book captures both the heart—and the "how"—of successful change.Organizations are forced to change faster and more radically than ever. How are companies

faring in meeting these challenges—and what can we learn from their experiences?Although most organizations believe change happens by making people think differently—Kotter and Cohen say the key lies more in making them feel differently. They introduce anew dynamic—"see-feel-change"—that sparks and fuels action by showing people potent

reasons for change that charge their emotions.

eLearning ProgramseLearning ProgramseLearning ProgramseLearning Programs


Harvard Business School Publishing. Case in Point. Boston: Harvard Business SchoolPublishing, 2004.

Case in Point is a flexible set of online cases, designed to help prepare middle- and

senior-level managers for a variety of leadership challenges. These short, reality-basedscenarios provide sophisticated content to create a focused view into the realities of the lifeof a leader. Your managers will experience: Aligning Strategy, Removing ImplementationBarriers, Overseeing Change, Anticipating Risk, Ethical Decisions, Building a Business Case,

Cultivating Customer Loyalty, Emotional Intelligence, Developing a Global Perspective,Fostering Innovation, Defining Problems, Selecting Solutions, Managing DifficultInteractions, The Coach's Role, Delegating for Growth, Managing Creativity, Influencing


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Others, Managing Performance, Providing Feedback, and Retaining Talent.

Harvard Business School Publishing. Managing Change. Boston: Harvard Business SchoolPublishing, 2000.

Based on the research and writings of today's top leadership and change experts, thisprogram explores how managers can balance, pace, and roll out change initiatives. It willhelp you analyze the organizational dynamics of change, choose the right strategies, andlead change initiatives for bottom-line results.

Harvard Business School Publishing. What Is a Leader? Boston: Harvard Business SchoolPublishing, 2001.

Based on the research and writings of today's top leadership experts, this program

explores what it takes to be a successful leader. You will analyze where you are and whatyou need to do to move from a competent manager to an exceptional leader.

Source NotesSource NotesSource NotesSource Notes

LearnLearnLearnLearn

Brian L. Davis, et al. Successful Manager's Handbook. Minneapolis, MN: PersonnelDecisions International, 1992.

Terrence E. Deal and M. K. Key. Corporate Celebration: Play, Purpose, and Profit at Work.San Francisco: Berrett-Koehler, 1998.

Cliff Hakim. We Are All Self-Employed: The New Social Contract for Working in a ChangedWorld. San Francisco: Berrett-Koehler, 1994.

Harvard Business School Publishing. Managing Change and Transition. Boston: HarvardBusiness School Press, 2003.

Linda A. Hill. "Power Dynamics in Organizations." Harvard Business School Case Note9-494-083, 1994.

J. Shep Jeffreys. Coping with Workplace Change: Dealing with Loss and Grief. Menlo Park,CA: Crisp Publications, Inc., 1995.

Todd D. Jick. "Note on the Recipients of Change." Harvard Business School Case Note9-491-039, 1996.

Todd D. Jick. "The Challenge of Change." Harvard Business School Case Note 9-490-016,1989.

John P. Kotter. Leading Change. Boston: Harvard Business School Press, 1996.

StepsStepsStepsSteps

Brian L. Davis, et al. Successful Manager's Handbook. Minneapolis, MN: PersonnelDecisions International, 1992.


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Cliff Hakim. We Are All Self-Employed: The New Social Contract for Working in a ChangedWorld. San Francisco: Berrett-Koehler, 1994.

John P. Kotter and Walter Kiechel. "How to Get Aboard a Major Change Effort: AnInterview with John Kotter." Harvard Management Update, September 1996.

Judith F. Vogt and Kenneth L. Murrell. Empowerment in Organizations: How to SparkExceptional Performance. San Diego, CA: Pfeiffer, 1990.

TipsTipsTipsTips

Terrence E. Deal and M. K. Key. Corporate Celebration: Play, Purpose, and Profit at Work.San Francisco: Berrett-Koehler, 1998.


ToolsToolsToolsTools


Version 1.0.030608 © 2007 Harvard Business School Publishing. All rights reserved.


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