Develop «D» Execution & Change Management

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1 Develop «D» Execution & Change Management Dr. Abdurrahman Baş Fall 2013

2 Contents Three Core Processes of Execution Forces for Change Principles of Change Five Activities Contributing to Effective Change Management Creating Vision of Change Motivating Change Developing Political Support Managing the Transition Sustaining Momentum Elements of Change Enablement 2

3 Wordle 3

4 TASK Personality and Leadership EXTROVERT Execution & Change Visionary & Communicator RELATIONSHIP Strategic Planning & Control Teamwork & Collaboration INTROVERT 4

5 in a Team Dynamic Change & Performance Driver Maintains focus on Vision & Goals Self-reliant Autocratic managerial skills great in a crisis! Pushes group to make decisions Willing to speak out Problem Solver Innovative in obtaining results Welcomes challenges without fear Ability to overcome obstacles Accepts risks Multitasker Sees big picture Ability to handle multiple projects Functions well with heavy workloads 5

6 Why Execution is Needed? Execution is a discipline, and integral part to strategy - No worthwhile strategy can be planned without taking it into account the organization s ability to execute it Execution is the major job of the business leader - Execution requires a comprehensive understanding of a business, its people and its environment and the leader is only person in a position to achieve that understanding Execution must be a core element of an organization s culture - Execution has to be embedded in the reward systems and in the norms of behavior that everyone practices. 6

7 Three Core Processes of Execution ❶Strategy Process: Defines where a business wants to go ❷People Process: Defines who s going to get it there ❸Operational Process: Provides the path for those people. Strong & challenging strategy, most of the time, necessitates a comprehensive change in structure and/or in culture throughout the organization 7

8 The Need for a Strong Strategy & Forces for Change... Knowledge economy Virtual organizations Mergers & acquisitions Electronic commerce Digital convergence Privatizations Information Superhighway... are transforming the vision of businesses! 8

9 Rate of Success in Change Efforts Moderately Successful 4% Very Successful 9% 27% Not Very Successful Too soon to tell 27% 33% Unsure 9

10 Two Sides of Change Technical Side of Change Human Side of Change 10

11 Principles of Change 1. Change is a process that can be enabled, not managed 2. The change process must be linked to business and performance goals 3. Building capacity to change is a strategic imperative 4. Building capacity for change is an evolutionary process 11

12 Principles of Change 5. Effective change processes require a systemic view of the organization 6. The change process involves both organizational and personal transitions 7. Behavioral change is a function of perceived need and occurs at the emotional, not the intellectual level 12

13 Principles of Change 8. Resistance to change is predictable reaction to an emotional process and depends on a person s perception of a change situation 9. A handful of change enablement best practices account for the success of most change processes 10.Change strategies are situational 13

14 Five Activities Contributing to Effective Change Management 1. Creating Vision of Change 2. Motivating Change 3. Developing Political Support 4. Managing the Transition of Change Effective Change Management 5. Sustaining Momentum 14

15 1. Creating Vision of Change Constructing the Envisioned Future Bold and Valued Outcomes Desired Future State 15

16 VISION To be the world s largest and the most preferred Turkish ready to wear retail brand in the world by the end of FINANCE CUSTOMER OPERATIONS PEOPLE COMPETENCIES: Communication Skills, Commercial Approach, Customer Orientation, Team Work, Leadership and Management VALUES: Reliability, Proactiveness, Swift Actions, Freedom, Respect, Commitment to Excellence, World Citizenship MISSION: Our business is not only to sell clothes; But also to make people happy with our products and service. 16

17 2. Motivating Change Sensitize organizations to pressure for change Motivating change and creating readiness for change Reveal discrepancies between current and desired states Convey credible positive expectations for the change 17

18 Force Field Analysis Model Restraining Forces for Change Current Situation Driving Forces for Change 18

19 Force Field Analysis Model Strengthening or adding driving forces Removing or reducing restraining forces Changing the direction of some of the forces Change 19

20 Barriers to Change 20% 40% 60% 80% 100% Resistance to Change Limitations of Existing Systems Lack of Executive Commitment Lack of Executive Champion Unrealistic Expectations Lack of Cross-Functional Team Inadequate Team and User Skills Technology Users Not Involved Project Charter Too Narrow Source: Information Week, June 20,

21 Individual Resistance Habit Economic Factors Job Security Individual Resistance Fear of the Unknown Selective Information Processing 21

22 Organizational Resistance Threat to Established Power Relationship Threat to Established Resource Allocations Structural Inertia Organizational Resistance Limited Focus of Change Group Inertia 22

23 Four Phases of Transition Denial Commitment Past Future Resistance Exploration 23

24 Some of the Signs in Each Phase Denial Resistance How good things were in the past It can t happen here Numbness Everything-as-usual attitude Refusing to hear new information Anger Loss and hurt Stubbornness Blaming others Complaining Getting sick Doubting your ability 24

25 Some of the Signs in Each Phase Exploration Commitment What s going to happen to me? Seeing possibilities Chaos Indecisiveness Unfocused work Energy Clarifying goals Seeing resources Exploring alternatives Where I am headed Focus Teamwork Vision Cooperation Balance 25

26 Overcoming Resistance to Change Education and Communication Participation and Involvement Negotiation Manipulation and Cooptation Overcoming Resistance to Change Facilitation and Support Coercion 26

27 3. Developing Political Support Assessing Change Agent Power Developing Political Support Identifying Key Stakeholders Influencing Stakeholders 27

28 Roles in Organizational Change Change Sponsor These are individuals or groups with the power to determine that a change will occur Change Agents These are individuals or groups responsible for seeing that a previously determined change occurs Change Target These are individuals or groups who are asked to change something (knowledge, skills, or behavior) as a result of the change 28

29 Influencing Key Stakeholders A set of questions designed to profile an individual stakeholder: Power What is their source of power? What they can control: money, time, resources, people, information? Who they can influence: friends, admirers, those who feel obligation? What is their style of using power? Reluctant and occasional Make response to threats Assertive and direct Deception and subtlety 29

30 Influencing Key Stakeholders Effect of Change How does the change really affect them? Changes their power? Affects other needs? Affects goals, objectives and interests? What is their likely response to the change? Opposition, uncertainty or support? Action now or wait and see? Open action or hidden action? Individual action or acting with others? 30

31 Influencing Key Stakeholders Effect of Change What would be the impact of their response? Significant or limited? Local or widespread? Recoverable or permanent? 31

32 Influencing Key Stakeholders Influencing Key Stakeholders What would make them more supportive of the change? Information / understanding? Involvement and ownership? Changes in planned actions? Direction from more senior managers? Evidence of the success of the change? What would make them less supportive of the change? Personal threat? Non-involvement in decisions? Personal rivalries? Insufficient evidence in trial period (defined by them)? 32

33 4. Managing the Transition Current State Desired Future State Transition State Activity Planning Change Management Team 33

34 Change Management Team : Roles Example Head (Executive Sponsor) Head Organizational Development (Change Leaders) Communication Role (Change Agents) Human Resources Role (Change Agents) Corporate Management Key project accountability and ownership Report to CEO on project outcomes/success Coordinate overall change program Develop clear change strategies for change Responsible and accountable for overall success Develop individual and team change capability Provide clear communication to all key stakeholders on change related issues Develop 2-way communication channels to foster ongoing organizational change Provide expert HR advice on personal transitions and support Provide Change Office & project based HR infrastructure 34

35 Change Management Team : Roles Example Project Leaders Take responsibility for key initiatives Coordinate project team Report to business unit GM and Change Office on project progress Leadership Advisory Role Develop leadership change management capability Provide ongoing change advice to leaders Process Co-ordination Role Coordinate project infrastructure & integration Prioritize and plan overall project timeframes Performance Management Role Establish clear project performance measures and reporting systems Manage ongoing project performance Report to Executive on overall progress 35

36 Critical Skills of Change Agents Understands change dynamics Appreciates diversity Anticipates and manages resistance Has high credibility Understands power and influence Manages multiple tasks 36

37 5. Sustaining Momentum Providing Resource for Change Sustaining Momentum Building a Support System for Change Agents Developing New Competencies and Skills Reinforcing New Behaviors Staying the Course 37

38 Five Activities Contributing to Effective Change Management 1. Creating Vision of Change 2. Motivating Change 3. Developing Political Support 4. Managing the Transition of Change Effective Change Management 5. Sustaining Momentum 38

39 Elements of Change Enablement Realizing Future State Change Architecture Communication Cultural Culture Capacity Capacity Performance Management Current State Leadership Capacity Individual Leadership & Team Capacity Capacity Individual & Team Capacity 39

40 Elements of Change Enablement Change Architecture Leadership Capacity Communication Performance Management Change Process Team & Individual Capacity Cultural Capacity Organizational Transition Personal Transition 40

41 Change Enablement Best Practices Change Architecture There is an explicit strategy and structure which define the nature and sequence of specific activities and resources required to facilitate the change process. Communicat ion An infrastructure and plan is in place to build awareness of change goals, communicate progress toward attainment of these goals, and encourage collective ownership of the change process and outcomes. 41

42 Change Enablement Best Practices Performance Management Human Resources processes - recruiting, training, measuring and rewarding - are aligned to drive new behaviors in support of the business vision. 42

43 Change Enablement Best Practices Leadership Capacity Leaders values and behaviors are aligned with the business vision; leaders possess the skills to drive the change process to completion, and accept the responsibility for doing so Team & Individual Capacity Actions have been taken to increase individuals and teams ability to enact the business vision and operate effectively in the new environment. 43

44 Change Enablement Best Practices Cultural Capacity The organization has assessed the alignment of the current culture with the change process and built new values and behaviors as appropriate to support it. 44

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