dennis hightower case the situation disney europe was successful but corporate hq thought they could...
TRANSCRIPT
Dennis Hightower CaseThe Situation
• Disney Europe was successful but corporate HQ thought they could be more successful
• Euro community changing
• Dennis Hightower selected – Hightower’s background
• Military (Europe)• Consulting
The Situation (contd.)
• Disney wants to increase profitability of their European operation– Move to consolidate/unify country
operations– Problem is to grow an already profitable
business
Burbank’s Perspective
• Europe a “golden opportunity”
• Good past performance but EEC opens new opportunities
• European theme park will open doors for consumer items
• Decision to create Paris HQ and hire a European head
Country Manager’s Perspective
• Proud of past success• New level of control unknown before• Possible perception of a “condemnation of
previous performance”• Feeling “sandbagged” having opened up to
Hightower when he interviewed them• Ostensible approval of Hightower’s selection
by three
Hightower’s Perspective
• “I’m the boss they don’t want”
• Burbank wants me but has high expectations
• Somewhat embarrassed by having interviewed as a consultant & now coming as boss
• “I’m stuck in the middle”
Potential Barriers to Change
• Stereotypes of Americans vs Europeans
• Cultural differences
• National differences
• Personal status issues – Tenure– Relationship with the Disney family
Hightower’s Task
• Produce a strategic plan in 90 days
• To do that he must:– Learn the territory– Obtain “buy-in” from the country
managers– Develop and write the plan
• While overcoming the barriers
Three Approaches
• Just do it
• Collective approach with the CMs
• Individual approach with the CMs
• Combination
Just Do It
• Easiest and fastest
• But least likely to produce “buy-in” and cooperation in implementation
• And he’s got a lot to learn about the territory
Collective Approach
• Convene a meeting with all the CMs
• Pros– Set tone & agenda at once with no rumors– All on “same page” & “one for all/all for
one
• Cons– Might become an “Us vs Him” situation– He lacks knowledge and is an outsider
Individual Approach
• Meet with each CM individually• Pros
– Can question and learn– Can “pollinate” with his ideas– Forge personal connections
• Cons– Time-consuming & keeps him away from HQ– Raises the issue of who/where to start
Combination
• Question of time
• Could dilute the positives of either approach
The Older CMs - Keep?
• Temptation to eliminate the barriers & get young blood– A new broom sweeps clean
• Situational approach called for– Never throw the baby out with the bath
What he did
• Non-stop tour of the territory spending 4/5 days with each CM by seniority– Learned the territory/built personal
credibility
• Developed his strategy – Including at least one or two of their ideas
• Then held general meeting presenting their “jointly developed” strategy – Each CM saw himself as a Change Agent
The Country Managers
• Over the next year– replaced four CMs based on adaptability– 3 of the over 60 crowd remained – French Mgr delicately “elevated” to senior
consultant role
• In his first year, consumer products doubled bottom line
Lessons
• Perspectives - we all see through different eyes
• Constant need to balance perspectives– Consider the feelings of all
• One way to overcome resistance is to co-opt it– Make resisters into change agents
Roles in Change
• Jick - four roles to perform change– Sponsor - suggesting or demanding the
change– Agent - the person actually ordering
change & making it happen– Target - recipient of the change– Advocate - cheerleaders/promoters
Roles in Change
• Dalziel & Schoonover– Inventor - big picture modeler– Entrepreneur - identifies new possibilities– Integrator - forges alliances to gain
acceptance– Expert - provides technical knowledge &
skill– Manager - delegates and runs others – Sponsor - ensures support and resources
The Sponsor’s Role
• Too often adopt the “spinning top” approach
• Effective sponsors remain involved– They initiate– They follow– They reinforce– Until agents become sponsors – And even the targets become sponsors
The Change Agent
• Ideally becomes a sponsor
• Establishes close relationship with targets– dilemma of change that really hurts people
• Must be a Trainer/Teacher
• Great human sensitivity called for
History of Change Agent Concept
• Term first referred to external help– The “hired gun”
• Has evolved to an internal function– Either integral to normal responsibilities– Or as a “project”– Change teams or change agent positions
Pros & Cons
• Pros – Internal agents know the territory & culture– Communication is usually easier/better– Trust is usually there
• Cons– May be difficult to take the hard decisions– Time limits when you have a “regular job” too– “Prophet without honor” syndrome
Cascading Change - the Ideal
• Begins with sponsor’s convincing & attractive vision which includes appropriate sense of urgency
• Results in buy-in at all levels – The good and the bad are shared
• Everyone sees themselves as change agents
Northwest Airlines Case
• Situation– Volatile environment of airline industry– Intense competition at multiple levels– Regulation/deregulation issues– Hugh capital investments and tight
margins
• Rothmeir takes over in ‘85 with Northwest is poor shape.
Rothmeir’s Vision?
• Better performance through– Better customer service– Increased efficiency & economic operation– Employee participation
Dr. Ken Myers’ Role
• Double team/ good cop-bad cop approach– Rothmeir to be Mr. Outside– Myers Mr. Inside
• Is this approach likely to be effective?
Pros and Cons
• Pros– One makes the hard decisions– The other provides the soft shoulder
• Cons– Mixing “oil and water”?– Trust?
Environmental Changes
• Acquisition of Republic– Impact?
• The Crash at Detroit– Impact?
• Bidding war over takeover by Al Checchi
Lessons
• Even change agents susceptible to change– Need to “bend their knees”
• Pros and cons of internal vs external change agents
• It takes more than one or two agents to effect change
Microswitch Case
• The situation– Microswitch attempting change to better
quality and customer satisfaction– Three middle managers singled out as
change agents – Transitional pace
Problems of Transitional Change
• Measured pace easier to cope with
• No sense of urgency can be deleterious
The Cast
• Alvarez - new GM – Playing the “sponsor” role
• Rick Rowe - former renegade/bad cowboy
• Ellis Stewart - consummate trainer & optimist
• Deb Massof - “outsider” from Honeywell, skeptical but enthusiastic
Mid-Term Report Card?
• What’s been achieved so far?
• Is this adequate?
• Has something gone wrong?
• How do the change agents feel?
• Threats to the change effort at this point?
Change Agent’s Frustration
• A sign of failure?
• A normal part of being in the middle– Burnout and self-doubt possible– Constant questions of support &
empowerment– Can appear an endless process when
you’re in the middle• Article on “Converting Middle Powerlessness”
Empowerment vs Control
• Alvarez ultimately responsible to the corp.
• But can’t get the job done without giving up some control to others
• Delicate balancing act– Finding those you can trust– Giving them the power they need– Using the vision as control
Lessons
• The problem of being in the “middle”
• Need for delicately balanced empowerment
• Relationship between sponsors and agents
• The ups and downs of all change efforts