Jack Smalley, SPHR

Director, Human Resources

Managing Organizational Change

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Ten Business Drivers for Organizational Change

• 2009/2010 recession

• New leadership

• Move to shared services

• Outsourcing

• Mergers/acquisitions

Ten Business Drivers for Organizational Change

• Downsizing/rightsizing

• Going for growth

• Under new management

• New technology

• Going public

• 95% of companies are going through organizational change

• 30% are due to change in upper management including HR

• Why organizational change fails 60% of the time

Interesting Facts

1. Structural

2. Cultural

3. Process

4. Cost-cutting

5. Leadership

Top Five Types of Change Initiatives:

For Organizational Change To Be Effective You Must Have:

• Leadership– Don’t waste time waiting for orders– Effectiveness depends on credibility – Admit mistakes– Team reconstruction bogs down when

employees stop believing in leaders

20-50-30 Rule

• 20% of employees are “change friendly”

• 50% of employees are “fence sitters”

• 30% of employees are “resisters”

• The “resisters” make the most noise and require the majority of your time

• Spend your time wisely with the “fence sitters”

For Organizational Change To Be Effective You Must:

• Seek opportunities to involve your people– Find an immediate role for the 20% “change

friendly” group– Use your employees for the design phase

For Organizational Change To Be Effective You Must:

• Analyze your people assets– Identify subject experts– Mix together right combinations– Spread out the talent– Surround yourself with the best and most

trusted employees– Re-recruit your keepers

Competencies Needed to Lead Change

• Integrity• Honesty• Trust• Communication skills• Presentation skills• Leadership skills

Competencies Needed to Lead Change

• Proven track record• Ability to win over peers• Relationship skills

- Know your audience

- Get out of your office• Financial and metrics knowledge• Conflict resolution

Your Role in Communicating Change

MANAGE IT FROM BEGINNING TO END

Change initiatives usually fail due to poor communication which breeds conflict

Your Role in Communicating Change

Communicate everything– Often– Good news– Bad news– Dispel rumors– “ME” issues– Avoid promises

Key Points to Managing Change Communication

• Don’t surprise employees

• Give employees a voice

• Communicate change timely and thoroughly

• Ensure effective manager-subordinate relationships

• Deal quickly with conflict

Resistance to Organizational Change

• Most resistance dies out once employees believe change is finished

• Softening your position stiffens the resistance

• Actions speak louder than words- Resisters beware- It’s time to get on board

Wear Your Commitment on Your Sleeve

Be prepared for resistance from:• Above• Sideways• Below

*Don’t assume they believe your mission.

Resistance

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• September 11

- Leading in Turbulent Times