Change Management Why so difficult? Why so important

Transcription

1 Change 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 Professor Dr. Klaus Eckrich; Change Leadership Folie 1

2 Change Leadership: Fun and Frustration Some thoughts before to get started Professor Dr. Klaus Eckrich; Change Leadership Folie 2

3 A view about failures 70 % of major changes fail only 30 % are successful BMW/Rover, Daimler-Chrysler, Take over of Dresdner Bank by Allianz. Reasons: Bad preparation, time pressure Risks and Challenges Ernst & Young 2006 Managers are enough experienced

4 Failores (2) The Company culture which actually forms the organisation is relatively unknown for most Managers. This is the reason why 70% of the restructuring programs are not successful. Source: James Champy, Hammer, quoted by manager magazin 5/94, S Professor Dr. Klaus Eckrich; Change Leadership Folie 4

5 Reasons for Insolvency: The past catches up Leaderhip crisis Scope for design Bad leadership No work cohesion Manager and employees do not learn quickly enough Strategy crisis Increased complaints Decrease in customer commitment Major customers go elsewhere Failure to foresee market changes Profit crisis Goals not reached Decreased cost efficiency Negative results Cost saving programms Liquidity crisis More control Repeated overdraft etc. etc. Insolvency Source: According to Michael Butte Professor Dr. Klaus Eckrich; Change Leadership Folie 5

6 How we cope with change sometimes... DON'T DISTURB ME - CAN'T YOU SEE I AM BUSY WINNING THIS BATTLE Professor Dr. Klaus Eckrich; Change Leadership Folie 6

7 Leadership model Minestrone Vision/Mission Shareholder Value Portfolio Management Competitor analysis $ Management of company has to? know! Customer Focus as strategy Benchmarking Busíness Process Reengineering Balanced Score Card Core competencies Management by Objectives Teammanagement Costmanagement Value Based Management Lean Banking KVP Lean Management Leadership Guidelines KVP 2 TQM Leadership Style Outsourcing Knowledge management Learning Organisation Innovationmanagement Projectmanagment Profit Center Six Sigma 360 -Feedback Change Management Employee Survey Matrixorganisation Leading the boss Kaizen Values Attitudes HR Management for the New Economy Professor Dr. Klaus Eckrich; Change Leadership Folie 7 Relationship Management

8 Change for self purpose? We We practiced without intermission, but but everytimewe we wantedto to form form a group, we we found ourselves being separated LaterI I learntthat thatitit lies lies withinour ourvery nature to to turn turn things upside down when confrontedwith withnew situations What a wonderfulway way to to deceive progress, whilstone oneonly only endsup up producing confusion, inefficiencyand frustration (Source: Petronius Arbiter, Satyricon 1. Century p.d. ) Professor Dr. Klaus Eckrich; Change Leadership Folie 8

9 THE THE SUN LOUNGE THE CONTENTMENT ROOM THE RENEWAL ROOM THE DENIAL ROOM THE CONFUSION ROOM WRONG DIRECTION DOOR Source: Claes Janson, Paul Kirkbride DUNGEON OF DENIAL PARALYSIS PIT Professor Dr. Klaus Eckrich; Change Leadership Folie 9

10 SIGNS OF CONTENTMENT What we say. 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 How we act 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 Professor Dr. Klaus Eckrich; Change Leadership Folie 10

11 SIGNS OF DENIAL What we say. How we act 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 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 Professor Dr. Klaus Eckrich; Change Leadership Folie 11

12 SIGNS OF CONFUSION What we say. 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! How we act 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 Professor Dr. Klaus Eckrich; Change Leadership Folie 12

13 SIGNS OF RENEWAL What we say. 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 How we act accept responsibility renewed energy, enthusiasm communicate listen learn trust delegate independent accept risk flexible, creative continuously improve set new targets Professor Dr. Klaus Eckrich; Change Leadership Folie 13

14 USING THE 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: Professor Dr. Klaus Eckrich; Change Leadership Folie 14

15 MOVING OUT OF CONTENTMENT What you might achieve: people start to think about the change What you should NOT expect yet people 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 Professor Dr. Klaus Eckrich; Change Leadership Folie 15

16 MOVING OUT OF DENIAL 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 Professor Dr. Klaus Eckrich; Change Leadership Folie 16

17 MOVING OUT OF CONFUSION 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 approach improve the working environment encourage experiments Professor Dr. Klaus Eckrich; Change Leadership Folie 17

18 STAYING IN RENEWAL 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 Professor Dr. Klaus Eckrich; Change Leadership Folie 18

19 How do people react to change? High Future Organisation 7. Integration 2. Denial 6. Cognition Self - Estimation Perceived competence 3. Begin to understand (mentally) 5. Testing 1. Surprise/ Shock 4. Acceptance low Start/Point of change Time Professor Dr. Klaus Eckrich; Change Leadership Folie 19

20 Das ist Courage! Professor Dr. Klaus Eckrich; Change Leadership Folie 20

21 Some people say In the Past even the future was better! Karl Valentin Professor Dr. Klaus Eckrich; Change Leadership Folie 21

22 The Big Picture St. Gallen Management Model as an example Client Culture Change Competitors Strategic Change Leadership Structural Change PEST - Factors Business Partners Source: MZSG Professor Dr. Klaus Eckrich; Change Leadership Folie 22

23 Change Leadership: Staying in Renewal 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? Professor Dr. Klaus Eckrich; Change Leadership Folie 23

24 Change Leadership: Your Navigation Tool Kit Leading Systems Communicate one-to-one organisatian Strategy Strukture Change Leadership Culture Leading People Leading Self Professor Dr. Klaus Eckrich; Change Leadership Folie 24