This Session … Reviews what it feels like to have … · Professor Dr. Klaus Eckrich; Change...

www.changehouse.de Professor Dr. Klaus Eckrich; Change Leadership Folie 1

CHANGE HOUSEChange Management – Why so difficult? Why so important

This Session …

� Reviews what it feels like to have change done to us

� What happens to people during change

� How can we as leaders help mitigate the impact of organisational change

� Share some thoughts and views on ways of implementing the new changes

� Discuss some tools and techniques to help


CHANGE HOUSEChange Leadership: Fun and Frustration

��

Some thoughts beforeto get started …

CHANGE HOUSEA view about failures

70 % of major changes fail

only 30 % are successful

• BMW/Rover,

•Daimler-Chrysler,

• Take over of Dresdner Bank by Allianz.

Ernst & Young 2006

Reasons:

�Bad preparation, time pressure

� Risks and Challenges

�Managers are enough experienced


CHANGE HOUSEFailores (2)

The Company culture which actually forms theorganisation is relatively unknown for most Managers.

This is the reason why 70% of the restructuringprograms are not successful.

Source: James Champy, Hammer, quoted by manager magazi n 5/94, S.172


CHANGE HOUSEReasons for Insolvency: The past catches up

Scopefordesign

Insolvency

Profit crisis

� Goals notreached

� Decreased costefficiency

� Negative results

� Cost savingprogramms

� etc.

Strategy crisis

� Increasedcomplaints

� Decrease in customercommitment

� Major customersgo elsewhere

� Failure to foreseemarket changes

Leaderhip crisis

� Bad leadership

� No work cohesion

� Manager and employees do notlearn quickly enough

Liquidity crisis

� More control

� Repeated overdraft

� etc.

Source: According to Michael Butte


CHANGE HOUSEHow we cope with change – sometimes ...

DON'T DISTURB ME - CAN'T YOU SEEI AM BUSY WINNING THIS BATTLE


CHANGE HOUSELeadership model ‚Minestrone‘

Management of company has to

know?

!$

�

Shareholder

Value

Vision/Mission

Customer Focus as strategy

CompetitoranalysisBenchmarking

Relationshi

p

Management

Innovation-management

Busíness ProcessReengineering

Management b

y Objectiv

es

Balanced Score Card

Portfolio Management

Core competencies

Value Based

Management

LeanManagement

KVPKVP2

TQM

Outsourcing

Project-managment

LearningOrganisationKn

owled

ge

manageme

nt

Lean Banking

Kaizen Team-

management

Profit Center

Matrixorganisation

Change Management

Values

Attitudes

Leadership Guidelines

Employee Survey

360°-Fee

dback

Leading th

e boss

LeadershipStyle

HR Management for the New Economy

Cost-management

SixSigma


CHANGE HOUSEChange for self purpose?

� We practiced without intermission, but everytime we wanted to form a group, we found ourselves being separated

� Later I learnt that it lies within our very nature to turn things upside down when confronted with new situations

� What a wonderful way to deceive progress, whilst one only ends up producing confusion, inefficiency and frustration

� We practiced without intermission, but everytime we wanted to form a group, we found ourselves being separated

� Later I learnt that it lies within our very nature to turn things upside down when confronted with new situations

� What a wonderful way to deceive progress, whilst one only ends up producing confusion, inefficiency and frustration

(Source: Petronius Arbiter, Satyricon 1. Century p.D. )


CHANGE HOUSE

THE CHANGE HOUSE

DUNGEONOF DENIAL

THECONTENTMENT

ROOM

THERENEWAL

ROOM

THECONFUSION

ROOM

THEDENIALROOM

THESUN

LOUNGE

PARALYSISPIT

WRONGDIRECTION

DOOR

Source: Claes Janson, Paul Kirkbride


CHANGE HOUSE

�we’re the market leaders�if it isn’t broken, don’t fix it�not invented here�management has decided�we know our customers�we have a great track record�we’re the most profitable�let’s decide later�we achieve our budgets�we’re the best

� ignore the outside world� bureaucratic� arrogant� uninformed about competitors� don’t listen to staff � Head Office focus� publish the company history� no sense of urgency� focus on day-to-day details� automatic salary increases

How we act What we say ….

SIGNS OF CONTENTMENT


CHANGE HOUSE

�what problem?�not my problem�Corporate doesn’t understand�it’s an industry trend�my staff are no good�competitors are worse�we’ve always done it this way�our business is different�if adjusted for … it’s OK�it’s our customers’ fault�it’s a short-term issue

What we say ….

� defend the past� defend the present� aggressive� protect the status quo� maintain taboos� kill the messenger…� … but miss the message� blame everybody else� don’t listen to staff� tell stories about past glories� massage the figures

How we act

SIGNS OF DENIAL


CHANGE HOUSE

�how did we get into this mess?�let’s hire some consultant�what’s happening?�what have I done wrong?�I’ve been saying that for years�we did that years ago�it’s all my fault�Help!

What we say ….

� frustration� depression� anger� withdrawal� blaming management� loss of self-esteem� insecurity� no sense of direction� irrational behaviour� set up committees, task forces� slow� never finish things

How we act

SIGNS OF CONFUSION


CHANGE HOUSE

�Let’s make it happen�let’s do it together�let’s tell everybody about it�now I understand it�it’s been tough, but we did it�we’re stronger now�I don’t really miss it now�it’s better than I expected�we have to trust each other�we could be better�let’s beat the challenge

What we say ….

� accept responsibility� renewed energy, enthusiasm� communicate� listen� learn� trust� delegate� independent� accept risk� flexible, creative� continuously improve� set new targets

How we act

SIGNS OF RENEWAL


CHANGE HOUSE

What can you do to help people move out of …..?

- Consider 3 headings:

What you might achieve :• that people start to ….

What you should NOT expect yet :• that…..

Possible actions :•••••

USING THE CHANGE HOUSE


CHANGE HOUSE

What you might achieve :people start to think about the change

What you should NOT expect yetpeople accept that things need to change

Possible actions :• shock people out of complacency• benchmark with best practice• break up teams, move people• define performance indicators• give feedback about performance• customer satisfaction surveys• challenge assumptions• get people to visit other organisations

MOVING OUT OF CONTENTMENT


CHANGE HOUSE

What you might achieve :people accept that something needs to be done

What you should NOT expect yet :• they will see the way forward as clearly as you• they understand what has to be done, and their role in it

Possible actions :• continue to benchmark• communicate the results to everybody• explain the “big picture” (purpose, benefits of change )• show respect for the past: avoid blame• don’t offer detailed solutions yet• look for small, early successes• give people time and space• encourage positive health habits

MOVING OUT OF DENIAL


CHANGE HOUSE

What you might achieve :• people understand what needs to be done,• accept their roles & responsibilities in it

What you should NOT expect yet :• people stop talking about “the good old days”• they don’t slip back sometimes

Possible actions :• provide vision and overall direction . . .• . . . but allow people to influence how to get there• give a sense of ownership by allowing contributions• encourage open expression of feelings, positive and negative• emphasise what is not changing• focus on concrete, achievable first steps• give fast feedback about results• reward desired new behaviours• ensure systems and processes support the new approa ch• improve the working environment• encourage experiments

MOVING OUT OF CONFUSION


CHANGE HOUSE

What you might achieve :• people understand that Change is never-ending• they are energised for continuous improvement

What you should NOT expect :• nobody will ever slip back into Confusion• nobody will ever slip forwards into Contentment

Possible actions :• constantly “raise the bar”: increased targets• keep providing benchmarks, surveys, feedback• celebrate successes• bring in outsiders• use 360º feedback continuously• encourage learning & self-development• don’t punish unsuccessful experiments• be alert for “Unconscious Incompetence”• job rotation

STAYING IN RENEWAL


CHANGE HOUSEHow do people react to change?

High

low Time

1. Surprise/ Shock

2. Denial

3. Begin to

understand

(mentally)

4. Acceptance

5. Testing

6. Cognition

7. Integration

Start/Point of change

Self-Estim

ation

Perceivedcompetence

FutureOrganisation


CHANGE HOUSE

Das ist Courage !Das ist Courage !


CHANGE HOUSESome people say…

„In the Past…

…even the futurewas better!“

Karl Valentin


CHANGE HOUSE

„PEST“ -

Factors

Business

Partners

Client Competitors

Strategic

ChangeStructural

Change

Culture

Change

Leader-ship

Source: MZSG

The ‚Big Picture‘ – St. Gallen Management Model as an example


CHANGE HOUSE

1) What do you perceive as main reasons, that let your change projects

fail?

2) What can you do as a leader to avoid failure/ make the project

successful?

Change Leadership: Staying in Renewal


CHANGE HOUSE

Communicate� one-to-one� organisatian

Leading PeopleLeading Self

Change

Leadership

Strategy

Culture

LeadingSystems

Strukture

Change Leadership: Your Navigation Tool Kit

This Session … Reviews what it feels like to have … · Professor Dr. Klaus Eckrich; Change...

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