acceleratingchange l · 2018. 4. 3. · jw marriott live los angeles, california, usa april 14-17,...
TRANSCRIPT
![Page 1: ACCELERATINGCHANGE L · 2018. 4. 3. · JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013 ACCELERATINGCHANGE* LESSONS*LEARNED*FROM*MANAGING* CRISES** Lawrence*J*Ramaekers*&*](https://reader036.vdocuments.net/reader036/viewer/2022071510/612f74691ecc5158694374a5/html5/thumbnails/1.jpg)
ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
ACCELERATING CHANGE LESSONS LEARNED FROM MANAGING
CRISES
Lawrence J Ramaekers & Lawrence E Ramaekers
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
Most Organizations will never be faced with a Burning Platform There are, however, Change Acceleration Strategies from the world of Crisis Management for Change Leaders
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
THE LARRYS Lawrence J Ramaekers 40 years of experience serving as Chief Executive OfQicer, Chief Operating OfQicer, Chief Financial OfQicer, Chief Restructuring OfQicer
Lawrence E Ramaekers More than 28 years of industry and consulting experience
Advisory and CRO Roles • Kmart Corporation • General Motors • First Energy • Calpine • Dow Chemical • Dana Corporation • Dura • Exide Technologies • Century 21 Realty • Catholic Diocese of Wilmington Delaware. AlixPartners, LLC. Bank of Boston Deloitte & Touche, LLP.
CEO • Micro Warehouse, Inc. • ANC Rental Corp. • United Companies Financial Corp. • Umbro, Inc. • Medical Resources, Inc. • Centennial Technologies, Inc. • Color Tile, Inc. • Family Restaurants, Inc.
COO • National Car Rental System, Inc. • Cardinal Industries, Inc. • Phoenix Steel Corp. • Fred Sanders
Advisor and CRO Hartmarx Corp., Wang Laboratories, Inc., Schwinn, Inc., AM International, Inc., Northwestern Corp.
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
LEARNING OBJECTIVES
• Crisis should be embraced • Change leadership is industry agnostic • Brooks’ Law – bigger change teams are not better
• Honest communication is scary but necessary
• Quick wins and reversible change
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
WELCOME CRISIS INTO YOUR LIFE
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
HEALTHY ORGANIZATIONS AND THOSE IN CRISIS
Healthy organization
• Employees fear doing nothing more than they do change
• Change is easy, just do nothing • Fewer change levers –
decreasing by the day • Need to keep employees in their
chairs • Quick decisions and immediate
action are critical • Decisions and actions for
survival
Organization in crisis
• Employees fear the change more than the status quo
• Change requires effort and action
• Several change levers are available
• Need to get employees out of their chairs
• Breathing room • Decisions and actions for
proQitability
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
CRISIS REDEFINED
“A successful company needs a ‘heightened sense of crisis,’ so that it always looks ahead even when it's doing well, and needs to be able to respond to change.” – Samsung Chairman Lee Kun-‐hee, 1997
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
ALL COMPANIES ARE FACING CRISIS EVEN IF THEY ARE NOT IN TROUBLE
• Negative change will come if you do nothing • Change levers are decreasing by the day • Chosen changes are better than imposed changes
• Decisions and actions are a matter of survival
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
CHANGE IS INDUSTRY AGNOSTIC MANAGEMENT BELIEFS THAT GET IN THE WAY
• “The _______ business is different” • ”What we need is increased sales" • “The bank needs to give us more time/money”
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
HONEST COMMUNICATION
“I am a &irm believer in the people. If given the truth, they can be depended upon to meet any national crisis. The great point is to bring them the real facts.” – Abraham Lincoln
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
HONEST COMMUNICATION
• Give the real scoop – do not sugar coat or be an alarmist
• Tell people there is a plan – and have one • Who, what, when, where and how and especially why
• Blame and hindsight are wastes of time – you are where you are
• Trust is hard to gain and easy to lose – lie, dilute or obfuscate and you have lost
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
NINE WOMEN CAN'T MAKE A BABY IN ONE MONTH
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
BROOKS’ LAW ”[A]dding manpower to a late software project makes it later” – Fred Brooks – “The Mythical Man Month,” 1975
• Group intercommunication formula: n(n − 1) / 2
(1=0, 3=3, 5=10, 10=45) • Fast decisions require smaller, informed and focused teams
• The best model of an effective crisis team is a surgical team, each with a speciQic skill and area of responsibility – lead by one
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
CHANGE TEAM MAKEUP
• Many executives believe that difQicult decisions must be made by the most competent people – Them
• Levels 4 to 7 in a company are more receptive to change and know it’s required
• Decisions should be made by the lowest level person who has the skills and knowledge
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
CULTURE AND INCENTIVES MATTER THE BALLAD OF DANIEL
“If a CEO commands people to do something, why isn’t it done?” • Corporate culture has more to do with individual motivation than pronouncements of the “King”
• Why did the subjects squat in the sand? – The king paid them to be there – The Guillotine was clearly visible next to the king – Maybe they really loved and trusted the king
• Participants will play the game using the rules you give them to maximize their payout – change the rules and incentives
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
QUICK WINS AND REVERSIBLE ACTIONS
• Early and quick wins, regardless of their size – Demonstrate organization focus – Follow through – Create a positive winning feeling – Are often easy
• A reversible action – the cost to undo is low • The size and complexity of challenges that people willingly tackle will increase
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
BEWARE OUTSIDE PRESSURES
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
ACCELERATING CHANGE
• Communicate honestly • Change the business, not the product • Blame, regret and hindsight waste scarce resources
• Take reversible actions quickly • Encourage and reward ideas from all levels
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
IN ADDITION
• Watch for outside inQluences • Don’t spare the sacred cows • Learn the language • Set a consistent standard and expect compliance
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ACMP GLOBAL CONFERENCE JW MARRIOTT LIVE LOS ANGELES, CALIFORNIA, USA APRIL 14-17, 2013
QUESTIONS