How to Handle Change How to Handle Change in Your Organisationin Your Organisation

Breakfast presentationfor

Society of Business Communicators (Qld)by

Bill Synnotat

The Chifley at Lennons, Brisbane

May 2, 2007

Topics to be CoveredTopics to be Covered

Framework as a road map to create a peak-performance, innovative & agile organisation

Analyse you and your organisation’s current capability in meeting the change challenge

How to turn around an unsuccessful change process and/or keep a successful organisation on track

Topics contTopics cont..

Identify, explore and overcome the most common pitfalls and management errors in organisational change that can result in an ineffectual process

Address the challenge of implanting the change process permanently into your organisation’s culture (including behavioural change)

Six Characteristics of aSix Characteristics of aPeak-Performance, Peak-Performance,

Innovative, Agile and Robust Innovative, Agile and Robust OrganisationOrganisation

1 Customer–focused

2 Concentrating more on leadership & less on management/administration

3 Entrepreneurial (based on innovation)

4 People–orientated

5 Tightly Focused on “decisive opportunities”

6 Resilient (for more details see article on web site: www.billsynnotandassociates.com.au)

ChangeChangemeans experiencing something

different and/or doing something differently

Usually with the basic aim of

“…Increasing the organisation’s capability to adapt to and adopt new ways of doing business…”

“…organisation today - has to be designed for change as the norm and to create change rather than react to it …”

Peter Drucker, 2001

“…it is not the strongest of the species that survives, nor the most intelligent; it is the one that is the most

adaptable to change…”Charles Darwin as quoted in Harvard Business Review, 1998

“. . .you can resist change and win one or more battles, but you will lose the war...”

Noel Tichy, 1999

(quotes cont.)(quotes cont.)

“…Few goals are more challenging to achieve than significant change in adult human beings…”

Howard Gardner, 2006

“…Three things can be said about change in today’s increasingly competitive environment: it’s hard, it’s necessary and most people are bound to resist it…”

Noel Tichy, 1999

(quotes cont.)(quotes cont.)

“…change does not come from a slogan or a speech. It happens because you put the right people in place

to make it happen…”Jack Welch as quoted in Jack Welch et al, 2001

“…An organisation is a web of interconnections; a change in one area can throw a different part of the

organisation off balance. Managing these ripple effects and the unexpected outcomes is the

challenge of change…”

Harvard Business Review, 1998

“…The real voyage of discovery consists not in seeking new lands, but in seeing with new eyes…”

Marcel Proust as quoted by David Osborne in “Re-Inventing Government”, 1993

“…Given the choice between changing and proving that change is not necessary, most people

will get busy on the proof…”John Kenneth Galbraith quoted in Australian Financial Review, 1999

(quotes cont.)(quotes cont.)

“…When the rate of change inside an institution becomes slower than the rate of change outside,

the end is in sight …”Jack Welch, 2001

“…it has become a truism that the only constant is change; with one change overlapping with

another, the time-frame to accomplish change is shortening…”

Harvard Business Review, 1998

(quotes cont.)(quotes cont.)

(quotes cont.)(quotes cont.)

“…the question that faces the strategic decision-maker is not what his/her organization should be tomorrow. It is what do we have to do today to be

ready for an uncertain tomorrow…”Peter Drucker as quoted in AFR Boss, 2000

“…Change programs often seem like they’re being shot out of cannons. They start with a

bang, then quickly fall flat…” Harvard Business Review, 1998

(quotes cont.)(quotes cont.)

“…the challenge of unpredictability can be met by remaining flexible at all times, recognising change as inevitable and an opportunity, and not locking

yourself into a set path…”

Michael Chaney in AFRBoss, 2002

Change involves “… combining “inner shifts” in people’s values, aspirations and behaviours with “outer shifts” in processes, strategies, practices

and systems…...It is not enough to change strategies, structures, and systems, unless the

thinking that produced those strategies, structures and the systems also changes…”

Peter Senge, 1999

Levels of ChangeLevels of Change

Personal

Group

Organisational

Environmental

NB: There is overlap & interaction between the different levels

Competition comes from

“where you least expect it”

In a survey it was found that

“…industry newcomers – not the traditional competitors – had taken the best advantage of

change over the past ten years...…by profoundly changing the rules of the game…”

Gary Hamel, 1997

eg Murdoch, Branson, Gates, etc

“…an outmoded belief, assumption, practice, policy, system or strategy, generally invisible, that inhibits change and prevents resources being used

for new opportunities…”Robert Kriegel et al., 1996

Remember:Remember:

“…Over 50% of technological breakthroughs that influence an industry or organisation come

from outside that industry…” Peter Drucker, 2001

Point of Diminishing ReturnsPoint of Diminishing Returns

This involves organisations trying to wring the last efficiency out of business models that have reached their use-by date; their strategies are

indistinguishable from their competitors

Why Do Some Why Do Some Organisational Transition Organisational Transition

Efforts Fail ?Efforts Fail ?

In many organisational transitions, the gap between expectations and

achievements is very large

Organization’sPerformance

Organization’sPerformance

TimeTime

Status Quo

DesiredWhat We Expect

What Actually Happens

VOD

ChangeInitiative

The J-Curve The J-Curve

Most Common Most Common Management Errors Management Errors

“…generally social and behavioural causes frustrate change initiatives rather than

technical problems…”Patrick Dawson, 2005

Each table to identify some common management errors

((most common management errors cont.)most common management errors cont.)

Not understanding the organisational culture and imposing your views

Lack of ownership or emotional “buy-in” by staff at the start of the process

Not “co-creating”, ie staff and management not working together

Structural inertia - most organisations are designed to promote stability

((most common management errors cont.)most common management errors cont.)

Ignoring that change will be a threat to the status quo, ie balance of power

Law of unintended consequence - overacting & doing the wrong thing

Not psychologically ready, ie importance of timing

Ignoring that change is a personal journey, ie human aspect of change (dealing with people)

((most common management errors cont.)most common management errors cont.)

Underestimating the importance of intuition (gut feeling) and story telling, while over-focusing on conventional measurement

One Size Fits All/Silver Bullet/Instant Coffee/ Magic Wand/Cure-all Recipes/Quick Fixes/ Management by Best Seller (the boom theory of change)

Too much complacency (paying “lip service”, organisation too successful, not holistic approach, etc)

((most common management errors cont.)most common management errors cont.) Not realising that change is a continuous process

that needs regular reviews

Lack of a sense of urgency (not shared)

Not focusing on the correct issues, such as - concentrating on the tangibles (hard options eg

economic incentives, organisational structure, etc) - ignoring intangibles (soft options eg corporate

culture, values, beliefs, relationships, personal journey, etc.)

- concentrating on symptoms rather than causes (shifting-the-burden)

(most common management errors cont.)(most common management errors cont.)

Change fatigue - too many/multiple change projects

Need to achieve balance between - hard and soft approaches

- present (short-term) and future (long-term)

Too many fiefdoms/silos/stovepipes/cocoons/ kingdoms allowed to exist/prevail

Not appreciating the power of leverage, ripple effect, interdependence, time delays and holistic approach

(most common management errors cont.)(most common management errors cont.)

A previous failed change effort is not acknowledged or addressed or learnt from

Past not treated with respect

Technocratic approach to transitions, i.e. linear (cause and effect)

Lack of resources (time, money, etc.)

The formula for success now

is no guarantee

of success in the future

The Hardest Organisation To The Hardest Organisation To Change is a Change is a SSuccessfuluccessful O Onene

(or one which perceives itself to be successful)(or one which perceives itself to be successful)

ie why dabble with the formula for success?!!BUT

“…over 40% of the businesses listed in the 1985 Fortune 500 are not in business today…”

Karlson Hargroves et al, 2005

Active InertiaActive InertiaStrategic frames become blinkersProcesses become routinesRelationships become shacklesValues become dogma

Important question is “…what is hindering us?…”

Definition of insanity!

eg - happy the way we are (zone of comfort)

- custodians of the traditions, etc

The combination of cultures that resist change and managers who support the status quo is

lethal for any change process

“…Status Quo: Isn’t that Latin for the mess we are in now?…”

(AIM 2000)

ATTITUDES TO CHANGEATTITUDES TO CHANGEATTITUDES TO CHANGEATTITUDES TO CHANGE

“…Change creates fear in established organisations and paranoia in the minds of executives hired to protect the status quo…”

Gene Landrum, 1996Working harder and harder

“…like driving a car and putting your foot down harder on the accelerator when you

should instead change gears…”

Seen as a threat unless staff have ownership

Trust is one of the first casualties

Encountering change too often “…alternates between short bouts of radical

surgery and long doses of studied inattention…”

Conflicting messages of change, ie staff are encouraged to realise their aspirations but basic needs such as job security are threatened

Code word for “something nasty”

Pushes people outside zone of comfort

(attitudes to change cont.)(attitudes to change cont.)

(attitudes to change cont.)(attitudes to change cont.)

People feel that they are not in control of what is happening (learned helplessness)

Indications of resistance – mistrust, resignations, transfers, absenteeism (includes phantom), lateness, lower productivity, loss of quality, slowdowns, wildcat-strikes, sullenness and quarreling

WIIFM, ie gains and losses

Creates conflict and chaos

Most Models Over-Simplify Most Models Over-Simplify the Situationthe Situation

Most Models Over-Simplify Most Models Over-Simplify the Situationthe Situation

Change is very

• contextual

• situational

Most Models Are Like Supernova

Quotes

“…All models are wrong – some models are useful…”

Edward Deming (1980)

“…The value of the model is not in its predictive power but in its power to catalyze reflective

conversations…”Andrea Shariro (1999)

“…There is no science of transformation, only an art…”

Fortune Magazine (1996)

Limitations of Limitations of Overseas Models for Overseas Models for

AustraliaAustralia

Australia’s situation is different from other countries like USA, Europe and Japan.

Seven Ingredients for Effectively Seven Ingredients for Effectively Handling An Organisational Handling An Organisational

Change Change (see hand-out)

1 Laying a foundation for new ways (includes building on the past)

2 Establishing a sense of urgency

3 Forming a transitional team

4 Creating alignment

5 Maximising connectedness

6 Creating short-term wins

7 Consolidating performance improvementsThere is overlap between the ingredients, and different degrees

of emphasis needed in different situations

Resistance to ChangeResistance to Change

It is normalPeople are concerned about loss (real &

perceived)Need to understand what is under-pinning

the resistanceMinimise time in this area by focusing most

attention on supporters of the change

CommunicationsCommunications

Communication Formula Words (20%) Body Language (40%) Tone (40%)

Make communications receiver-friendly

Culture is Complex, Powerful, Culture is Complex, Powerful, Deep & Stable Deep & Stable

Change challenges current culture. It requires “unlearning” and “relearning” which can be very painful and slow

Three parts to culture

i) behaviours, ie action, words, relationships, etc

ii) symbols, ie physical environment, recognition concepts, etc

iii) systems, ie reporting, performance management, etc

Change will Change will notnot Last if Management Last if Management is Hypocriticalis Hypocritical

Preaches teamwork but rewards individual contributionPreaches customer service but rewards adherence to

rulesPreaches risk-taking but rewards an absence of errorsPreaches feedback but rewards no criticismPreaches entrepreneurial flair but rewards only narrow

job perspectivesPreaches decentralised and/or delegated authority but

congratulates “hands-on” management

WorkshopWorkshop(Successful Organisational Transition)(Successful Organisational Transition)

Partnership with Centre of Executive Education, Partnership with Centre of Executive Education, Bond University Bond University

Locations Dates (2007)

Brisbane August 21 & 22

Adelaide August 28 & 29

Darwin September 5 & 6

Sydney September 18 & 19

Perth September 25 & 26

Melbourne October 3 & 4For more details visit web sites

- www.bond.edu.au or

- www.billsynnotandassociates.com.au

Book (on sale here)Book (on sale here)Toolbox for Change: Toolbox for Change:

a practical approacha practical approachby Bill Synnot & Rosie Fitzgeraldby Bill Synnot & Rosie Fitzgerald

Are you feeling bewildered by the pace of change today’s world?

Do you want to understand and change behaviours and attitudes to improve relationships and productivity in your work/life/community?

Do you want to improve your handling of people, especially those who disagree with or misunderstand you?

(Book: Toolbox for Change cont.)(Book: Toolbox for Change cont.)Do you want to improve your communications skills?Do you want your group to function more effectively?Do you suffer from unnecessary “busyness”?Do you want to be more creative in your approach to

challenges?Do you want to be more competitive?Do you want to harness more support for a new

direction?

If your answer is “yes” to any of these questions, you need this book!!!!!!!!

(Book: Toolbox for Change cont.)(Book: Toolbox for Change cont.)

There are 60 widely-applicable, user-friendly tools divided into 7 sections:

- general (10)

- personal awareness (11)

- understanding culture (13)

- creative thinking (9)

- understanding resistance (8)

- understanding teams (5)

- understanding value, vision & mission statements (4)

Toolbox for Change cont.Toolbox for Change cont.

This book will help you

- identify problems that need solving (causes, not just symptoms)

- achieve ownership of the problem

- find the most appropriate solution

(more details see web site :www.billsynnotandassociateses.com.au)

Some ToolsSome ToolsDriving Forces AnalysisDriving Forces Analysis

Forces Direction Impact Control Strategies

(+/-) (L/M/H) (C/S/U)

Life-cycle approachLife-cycle approach

Non-verbal signalsNon-verbal signals

As stated before, in communications body language and tone of voice are more significant than words

Describes ways to read and understand non-verbal signals

Story-tellingStory-telling

Explores the importance of story-tellingDetails 6 ways to improve your story-telling

Understanding yourselfUnderstanding yourself

A series of questions so that you can understand yourself and others who work with you

Analyse the Way you Spend Analyse the Way you Spend your Time your Time

This will show how we waste most of our time by doing work that is not adding value to the customer

Most managers waste more than 50% of their time doing “re-work” and “non value- adding work”

Network mappingNetwork mapping

This tool explores how the “informal” network works

Creative thinkingCreative thinking

The 6 hats that help structure a meeting so that it is more productive

Bill Synnot’s contact detailsBill Synnot’s contact details

Address: Bill Synnot & Associates, 18th Floor, 300 Queen St., Brisbane

or 15 Hipwood St., Norman Park, Qld, 4170

Phone: 0418 196 707

Fax: 07 3399 7041

Email: rp000073@a1.com.au

Skype: bill.synnot

Web: www.billsynnotandassociates.com.au