CHANGE MANAGEMENT BASICS

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1 CHANGE BASICS C M. Reiß

2 DRIVERS OF CHANGE 85 % CUSTOMER DEMANDS 82 % COST PRESSURES 77 % COMPETITIVE THREATS 76 % PROFIT / FINANCIAL PERFORMANCE 65 % COMPETITIVE OPPORTUNITY 55 % NEW TECHNOLOGY 36 % REGULATORY CHANGE 31 % TAKE - OVER / MERGER 29 % 27 % NEW CEO OR SENIOR MANAGEMENT STAFF DEMANDS Source: Management Centre Europe 1997

3 INHIBITORS OF CHANGE 59 % 51 % 48 % 43 % PRESSURE FOR SHORT - TERM RESULTS MIDDLE MANAGEMENT RESISTANCE LACK OF TIME NO STRUCTURED APPROACH TO 37 % LACK OF RECOGNITION OF NEED FOR CHANGE 36 % 34 % 31 % 28 % LACK OF MANAGEMENT LEADERSHIP INADEQUATE SKILLS INFLEXIBLE IT SYSTEM LACK OF VISION 13 % NO CASH FOR NECESSARY INVESTMENTS Source: Management Centre Europe 1997

4 PARADIGMS OF QUANTUM CRISIS MANAGEMENT ORGANISATIONAL DEVELOPMENT ORGANISATIONAL LEARNING LIFE CYCLE MODELS TRANSFORMATION REFORM EVOLUTION MODIFICATION MANAGEMENT IMPLEMENTATION MIGRATION CONTINUOUS IMPROVEMENT EXPERIENCE CURVES INCREMENTAL

5 MEASURING THE RADICALITY OF CHANGE STRATEGY TECHNOLOGY SCOPE OF CHANGE PROCESS STATUS QUO PERSONNEL DEPTH OF CHANGE STRUCTURE TIME SPEED OF CHANGE

6 CHALLENGES C M. Reiß

7 RESISTANCE TO CHANGE : CAUSES SKILL - BARRIERS WILL - BARRIERS LACK OF COMPETENCE QUALIFICATION LACK OF CONFIDENCE LACK OF CONTROL INFORMATION MOTIVATION ORGANISATION LACK OF COMFORT z:\int_man\resittan.ds4 ph

8 RESISTANCE TO CHANGE Average Rating Current Stress Level Lack of Rewards Low Involvement High Personal Cost Daily Work Patterns Unclear Communication Source: ODR 1995

9 UNPOPULAR MEASURES IN Making oneself redundant Closing down locations Releasing personnel Shorten salary Increasing workload Causing loss of status Cancelling career opportunities Stimulating internal competition Eliminating slack Questioning status quo

10 EFFECT - PATTERNS OF CHANGES BENEFIT Benchmark SUPPORTING IDEAL MARKETING REAL Status quo CONFUSION DIFFUSION EROSION TIME COACHING DETRIMENT z:\int_man\effectpa.ds4 gb

11 EFFECTIVE AND EFFICIENT EFFECTIVENESS ( managing the right change") Innovativity Acceptance Integrativeness EXCELLENT Flexibility Time Costs EFFECTIVENESS ( managing the change right")

12 DILEMMA OF COMMUNICATION POLICIES EFFECTIVENESS OF COMMUNICATION WORKSHOPS MANAGEMENT BRIEFINGS high TOP MANAGEMENT INVOLVEMENT BROCHURES KICK OFFS low NEWSLETTERS EMPLOYEE JOURNALS low INTRANET high EFFICIENCY OF COMMUNICATION

13 DILEMMA OF TRUST IN TRUST REQUIREMENTS GAP TRUST POTENTIAL STABILITY CHANGE TIME

14 PITFALL OF SUCCESS IN CHANGE = SUCCESS FOR THE FUTURE SMALL SUCCESSES FACILITATE CHANGE HUGE SUCCESSES INHIBIT CHANGE PAST SUCCESS

15 TOOLS C M. Reiß

16 SOFT INSTRUMENTS FOR IMPLEMENTATION ACCEPTANCE TO CHANGE SKILL WILL INFORMATION INSTRUCTION INVOLVEMENT INTEGRATION COMMUNICATION TRAINING MOTIVATION ORGANIZATION Employee magazine Project newsletter Information market Employee surveys Kick off Workshops Intranet/ Portals Hotline Presentations/ Videos Pod-/Webcasts Blogs... Project work Role playing Group dynamics Self management Case studies Kaizen Conflict tolerance Training coordinators Web Based Training Awards Intrinsic rewards Compensation Deals Success stories Successful models Bonuses Transparency Protection of vested rights... Project organization Participation Team coordinators Promoters Evangelists Benchmarks Wikis Coaching Consulting Change communities Social Networking... Platforms...

17 INSTRUMENTS FOR COMMUNICATION IN Employee magazines Bulletin boards Information for managers Press releases Income Statements Corporate Wbl Weblogs Complaint systems GENERIC COMMUNICATION INFRASTRUCTURE Regular press conferences Open door-activities Employee talks Group discussions Committee meetings Department meetings Social Networking- Platforms ONE WAY COMMUNICATION Brochures Special edition of employees magazine Change Journal Videos Conferences Memos Flyers Songs Pod/Webcasts Visual displays Info boards newsletter via e mail Business TV Individual Weblogs Surveys Letters to the editors Surveyfeedback SPECIFIC COMMUNICATION INSTRUMENTS Intranet Workshops Information markets Kick offs Contact hours of managers Special press conferences Wikis TWO WAY COMMUNICATION Town meetings Info phones Hotlines Roadshows Chats Change Communities

18 MOTIVATING IN CHANGE PROJECTS PARTICIPATION QUICK HITS AWARDS SUCCESSFUL MODELS PROMOTING CONSENT INTRINSIC REWARD COMMUNICATION PROJECT WORK TRAINING TOP -DOWN INTERVENTION PRESERVING APPROVED ITEMS AVOIDING REJECTION COUNTER BUSINESS... COMPENSATION

19 PROMOTERS IN TASK MANAGEMENT PEOPLE MANAGEMENT PROFESSIONAL PROCESS POWER SKILLS BASED x RESPONSIBLE x BASED PROMOTERS PROMOTER PROMOTERS = = = EXPERTS + CHAMPION + SPONSORS

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