A vote of trust

Content

• Statistics and graphs;

• Latvian view on change management;

• Common mistakes;

• Why a vote of trust?

• Building trust

Division of Latvian managers by the average time in post

History from 1991 to 2012.05.22

The average age of managers and shareholders

Turnover

Median values in LVL. Banks, other financial institutions and companies with more than 250 employees not included (for these companies annual accounts for 2011 will be processed in August)

Profit after taxes

Median values in LVL. Banks, other financial institutions and companies with more than 250 employees not included (for these companies annual accounts for 2011 will be processed in August)

Rentability

Median values %. Banks, other financial institutions and companies with more than 250 employees not included (for these companies annual accounts for 2011 will be processed in August)

Equity capital

Median values in LVL. Banks, other financial institutions and companies with more than 250 employees not included (for these companies annual accounts for 2011 will be processed in August)

Average number of employees

Banks, other financial institutions and companies with more than 250 employees not included (for these companies annual accounts for 2011 will be processed in August)

Performance after the change of management

Two types of performance: Up (not steady) Down (always steady)

Companies with AA for 10 years and at least one management change during this period. 11255 companies analysed.

Total turnover and profit

What are the most important things in change management? Answers from Latvian enterpreuners.

Our great philosopher and poet Rainis said: «Only those will exist who 'will change.»

•The leader - he/she is the team's coach, who support and guide the team to the target. Y/N ?

•Eeverything depends on the charisma of a leader. Y/N ?

•The primary is the CEO and his key department heads. Y/N ?

•Change initiators and managers should understand that people are not unhappy handicaps of change plans, they are the main components of this plan, they can be the most important instrument of a change. Y/N ?

•The reforms are part of life, even a part of everyday life, but better if they take place gradually and the people are prepared. Otherwise it can happen that change leads to paralysis. Y/N ?

•Change happens when the right moment has come. Y/N ?

•To try to reduce fixed costs. Y/N ?

•A clear strategy and vision for the future, as well as a return to fundamental values and principles will be important. Y/N ?

•Clearly defined change target. Y/N ?Source: www.news.lv, Lursoft customers

Before proceeding to common mistakes

One of the most popular mistakes mentioned on the Internet

Moving too slowly with the changes.Change management isn’t a waltz, it’s rock ‘n roll.*

Do you agree?

*From: http://www.pritchettnet.com/

General view on common mistakes in change management

• Failing to create a sense of urgency and leadership involvement. A sense of urgency motivates employees to buy in and help in the change process. Additionally, by involving company leaders, employees will be further motivated in their efforts.

• Communicating poorly. Develop a clear vision of where the company needs to be, and communicate that vision to all employees, customers and shareholders.

• Not empowering employees to lead the change. Encourage employees to develop new ideas, try new approaches and serve as stewards of change.

• Focusing only on the long term. Large-scale organizational change is a long process. Break down your vision into smaller short-term goals, and communicate short-term successes at each opportunity.

• Assuming that change is complete once initial goals are achieved. If you declare victory too soon, the focus will be taken away from your efforts, and all traces of your hard work could soon disappear. Successful companies consistently re-evaluate their change efforts to determine where other areas can be improved, such as employee development and retention, new projects and new systems and structures.

* Adapted from “Leading Change: Why Transformation Efforts Fail” by John P. Kotter, Harvard Business on http://blog.tatumllc.com

Why a vote of trust?

We think that main mistake is: Excessive focus on change target!!!

Why a vote of trust?

• Life does not end with the concrete target.

• With whom we will achieve the next ones?

• If you don't have trusted relationships between your employees you will not have trusted relationships with your customers.

• It's critical for your business!!!

Building trust

List of 10 steps to building trust from Christian Fea. Drawing from J.Miruskins.

Alice Cooper's 1989 Album Trash ! / Why Trust You

Thank You!!!