leadership & change management, lecture 6, by rahat kazmi

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LEADERSHIP AND CHANGE MANAGEMENT - CHANGE MANAGEMENT TECHNIQUES CHANGE TECHNIQUES LECTURE 6 BY RA HAT KAZMI PREPARED BY: RAHAT KAZMI SEPTEMBER 2010 Follow him on Twitter: twitter.com/srahatkazmi or Join Facebook Fan’s page : facebook.com/TrainingConsultant Vist the website: www.softskillsexperts.com

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This Lecture was prepared for my MBA students in London. It will benefit students, lecturers or managers who like to polish up their leadership skills. Feel Free to download this lecture in pdf, however, if you need the ppt slides, please send me a payment of £1 by paypal at: [email protected] and I will happy to send you the lecture. Hope it was beneficial to you.

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Page 1: Leadership & change management, lecture 6, by Rahat Kazmi

LEADERSHIP AND CHANGE

MANAGEMENT

- CHANGE MANAGEMENT TECHNIQUES

CHANGE TECHNIQUES

LECTURE 6

BY

RA HAT KAZMI PREPARED BY: RAHAT KAZMI

SEPTEMBER 2010

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Page 2: Leadership & change management, lecture 6, by Rahat Kazmi

To discuss various types of “Change Techniques”

To Cover the Methods of these Changes

To Give and take examples of these change techniques

To have concluding discussion about each change technique

Objectives

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Page 3: Leadership & change management, lecture 6, by Rahat Kazmi

Boiling the frog: Incremental changes may well not be noticed.

Burning bridges: Ensure there is no way back.

Burning platform: Expose or create a crisis to get things going.

Challenge: Inspire them to achieve remarkable things.

Coaching: Psychological support for executives.

Command: Tell them what to do.

Destabilizing: Shake people of their comfort zone.

Evidence for change: Cold, hard data to show need for change.

Evidence stream: Show them time and again that the change is happening.

Change Techniques

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Page 4: Leadership & change management, lecture 6, by Rahat Kazmi

Education: Learn them to change.

Facilitation: Use a facilitator to guide team meetings.

First steps: Make it easy to get going.

Golden handcuffs: Keep key people with delayed rewards.

Institutionalization: Building change into the formal systems and structures.

Involvement: Give them an important role.

Management by Objectives (MBO): Tell people what to do, but not how.

Management causality mapping: Helping a team see its own role.

Open Space: People talking about what interests them.

Change Techniques

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Page 5: Leadership & change management, lecture 6, by Rahat Kazmi

Rationalization trap: Get them into action first. Re-education: Train the people you have in new

knowledge/skills. Restructuring: Redesign the organization to force behavior

change. Reward alignment: Align rewards with desired behaviors. Rites of passage: Use formal rituals to confirm change. Setting goals: Give them a formal objective. Shift-and-sync: Change a bit then pause to restabilize. Socializing: Build it into the social fabric. Spill-and-fill: Incremental movement to a new organization. Stepwise change: Breaking things down into smaller

packages. Visioning: Create a motivating view of the future. Whole-system Planning: Everyone planning together.

Change Techniques

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Page 6: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Make the changes very quietly and slowly without telling anyone, so each small change is hardly noticeable. For example:

Make temporary changes that become long-term.

Slip things in whilst people are distracted elsewhere.

Bury changes in larger items.

Gradually isolate unwanted people and organizations.

Boiling the Frog

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Page 7: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A company that wants to reduce the amount of social space in a building nibbles at it during moves, taking small amounts out for needed desk space. It also puts meeting equipment such as tables, flipcharts and network points in what were once just rest areas. Before long, the occasionally-used soft areas are in constant use.

Boiling the Frog

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Page 8: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

There is a story that if you drop a frog into hot water, it will jump out. But if you slowly warm up the water, then the frog will stay there until it boils to death.

People notice change largely through contrast. The larger the perceived contrast, the larger the change is assumed to be. So if you change in a number small moves, you may well be able to slip the whole thing under the wire without being noticed.

There are no guarantees with this method. Vigilant resistors may spot what is happening and mobilize a counter-response. If this happens, you may have to give up the frog method and be more open about the change.

Boiling the Frog

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Page 9: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

When you have made a change, ensure that there is no way back to previous ways of working.

Example:

A company that is moving to a new low-cost operational model fires its high-cost sales force, sells it's fancy headquarters and moves to a plain and simple out-of-town low-cost factory.

An organization that is instituting new software deletes the old software from the system, thus forcing people to use the new software.

Burning Bridges

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Page 10: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Show how staying where you are is not an option, and that doing nothing will result in disaster.

Look for a crisis that you can highlight. They are often lurking nearby, forlorn and unnoticed.

You can also engineer your own crisis that forces change.

Example:

A company floats off a slow backwater division, forcing it to compete without the shelter of the parent company.

An organization educates its workforce in business finance and shows its dire financial situation.

Burning Platform

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Page 11: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

When the oil platform Piper Alpha in the North Sea caught fire, a worker was trapped by the fire on the edge of the platform. Rather than certain death in the fire, he chose probable death by jumping 100 feet into the freezing sea.

The term 'burning platform' is now used to describe a situation where people are forced to act by dint of the alternative being somewhat worse. The crisis may already exist and just needs to be highlighted.

Burning Platform

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Page 12: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Stimulate people into change by challenging them to achieve

something remarkable. Show confidence in their ability to get out

of their comfort zone and do what has not been done before.

This works particularly well with small groups, as well as

individuals. Once the group has bought the challenge, then they

will bounce off each other to make it happen.

This is most effective when the people create their own stretch

goals, so rather than telling them to do something, challenge them

to achieve greatly, then, when they are fired up, ask them how far

they can go.

Challenge

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Page 13: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A manufacturing managers challenges his team to break

company records in building a new product at much reduced

costs. He does not give them actual targets, but they set their

own goals of halving normal assembly costs. Using concurrent

engineering in collaboration with the design group and DFM

(Design for Manufacturing) techniques, they reduce parts count

by 80% and turn what would otherwise be a 6 hour assembly

time into 30 minutes.

Challenge

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Page 14: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

When you have individual people who are having difficulty in

managing to adapt to change, then hire an executive coach to

help them through this time.

Coaching

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Page 15: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

An executive used to a command-and-control environment

where people did what he said without question finds himself in

a more 'empowered' environment, where he is supposed to be

supportive and trust others more. The company, realizing his

difficulty with this, get him a personal coach for six months.

Together, he and his coach explore his deeper motivations and

beliefs about other people, and find practical ways to change

these.

Coaching

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Page 16: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Coaches have the time and skills to understand the individual

person and uncover their internal problems which are causing

them problems.

In many ways, coaches are actually therapists. However, in

many business circles, it is not acceptable to be in therapy.

This is an expensive method, so it is usually only afforded to

senior executives.

Coaching

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Page 17: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Enforce change by telling people what to do and what is going

to happen.

Do not accept any input or objection from them. If they do

object, punish them.

Command

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Page 18: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A person arrives for work on Monday to find that they no

longer have a job.

A sales person is summarily moved to another region, selling

different products.

A manager is demoted to a lower grade in a restructuring of

the organization.

Command

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Page 19: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Commands are the least considerate of the psychological

factors and simply use the principle of force. Typically in

organizations it means giving the person marching orders,

telling them to change rather than convincing them. The person

turns up for work and are simply told that change is going to

happen to them.

The result of such methods is that people are very likely to fall

into the Kübler-Ross cycle. This can make commands seem

effective as those in shock and denial may seem to have

accepted the change without fuss.

Command

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Page 20: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

It is an approach favoured by managers whose style is largely

task-oriented and transactional.

Command does have its place when urgency is total and there

is no time for other methods. However, the backlash later can

be very costly.

Command

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Page 21: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Stimulate the need for change by creating instability that leads

people to seek somewhere other than where they are at present. For

example, you can:

Make the current safe place less safe.

Show that which is held to be true is not true, at least not in all

important areas.

Open the doors of the house to show the real terrors just outside.

Get in angry customers to berate people for poor products and

service.

Show them the realities of financial instability.

Destabilizing

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Page 22: Leadership & change management, lecture 6, by Rahat Kazmi

Show them competitors' products (and how much better they are).

Reorganize to break up cosy groups.

Give them jobs that are outside of their current skills.

Example:

A company seeking to re-stimulate a marketing team cannibalizes

the existing team, taking key players out to work on new product

areas, whilst requiring remaining people to keep the show on the

road.

A company takes away a comfortable cash cow from one of its

divisions, forcing it to think harder about how to contribute in the

future.

Destabilizing

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Page 23: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

When people are comfortable (in their 'comfort zone'), there no

driving need for them to change. If they are shocked too much then

they may freeze or rebel. If, however they are simply made less

comfortable by some destabilization technique, then when change is

announced they more likely to be ready for it and are less likely to

resist.

We all have deep needs for safety, control and certainty. If these

(and other needs) are all met, then an announcement of change will

cause resistance as the change threatens these. If, however, they have

already been shaken, then there is less to react against when change

is announced (especially if the change promises to restore these).

Destabilizing

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Page 24: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Find evidence that supports the need for change.

Use data and statistics to create impressive graphs and charts.

Example:

A organization shows its people its financial performance in a

set of alarming graphs.

A dissatisfied major customer is brought in to talk to the board.

Evidence

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Page 25: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

When you have incontrovertible evidence staring you in the

face, where the numbers are showing the company in the red or

sales sinking into the sunset, it is difficult to put your head in the

sand and wish it away.

Cold, hard evidence is a good way of changing minds as

counter-arguments require better data or sufficient strength to

show the data as invalid.

Evidence

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Page 26: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Get people to accept that a change is real by providing a steady

stream of evidence to demonstrate that the change has happened

and is successful.

Plan for change projects to reach milestones and deliver real results

in a regular and predictable stream of communications that is

delivered on a well-managed timetable. This is as opposed to the

early 'big bang' followed by a long period of relative silence.

Communicate through a range of media. Get people who have been

involved to stand up and tell their stories of challenge and

overcoming adversity. Ensure the communications reach everyone

involved, and do so multiple times.

Evidence Stream

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Page 27: Leadership & change management, lecture 6, by Rahat Kazmi

Keep posters and data charts up to date. Regularly show progress,

demonstrating either solid progress against plan or robust action to

address any slippage.

Example:

A global company that is implementing a project-based system of

work regularly prints photos of teams and tell success stories in the

company newspaper.

A police force that is cracking down on low-level crime regularly

sends officers out to local community meetings with stories of the

actions taken and prosecutions that have been successful.

Evidence Stream

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Page 28: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Evidence is a powerful tool for persuasion, particularly when

people are doubtful whether something is real. This is

particularly powerful when presented by people who are

trusted by the audience for the information.

Lack of evidence is evidence of nothing happening. Aging

charts and posters will be seen as evidence of change projects

that have either died or are quietly fading away. When

people hear nothing, they assume nothing is happening.

Evidence Stream

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Page 29: Leadership & change management, lecture 6, by Rahat Kazmi

A common trap in change management is to put lots of effort (and money)

into a big bang kick-off, with lots of announcements, hand-outs, posters, and

other marketing. This is successful in getting attention. It also sets

expectations. What often happens next is that the 'quick wins' are quickly

harvested, leaving a long dead space before the more difficult work starts

to complete. In this gap, commitment can easily wane as the initial flush is

forgotten and the tough stuff starts to bite.

A steady stream of evidence is needed because people are not always

convinced by a few pieces of early evidence. However, if they see evidence

in every direction that they turn and that new evidence continues to appear

over a period of time, then eventually even the most hardened opponent will

have to concede that the change is real and is here to stay.

Evidence Stream

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Page 30: Leadership & change management, lecture 6, by Rahat Kazmi

How long the evidence stream should be is a good question. In

some cases, it need only be repeated three to six times, but

more often something more like weekly evidence for six months

is worth the communications effort. Even better is that the

communication becomes institutionalized and that provision (and

attention to) evidence of whatever change is going on is a

norm.

Evidence Stream

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Page 31: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Teach people about the need for change and how embracing

change is a far more effective life strategy than staying where

they are or resisting.

Teach people the methods of change, about how to be logical

and creative in improving processes and organizations.

Example:

A 3-day class is set up in process improvement in which people

apply methods to a designed problem.

Coaches work with teams, supporting their process of change.

Education

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Page 32: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

A gentler way of helping people see the need for change is via

educative means. This includes presentations, communications and full-

on training sessions.

Education, done well, is more of a process of elicitation, drawing out

understanding from the other person rather than talking at them. The

root of the word is the Latin duco, 'meaning to lead', and is the same

as duke. Leading in change is itself often a process of education, and

may be done in many situations.

An issue in change is that people often feel powerless. Education

gives them the power to change.

Education

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Page 33: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Use skilled facilitators to support change activities (if you don't

have any, either hire them in or train your own).

Facilitators can be used to guide various group events, from

brainstorming and planning to improvement projects and

change activities.

Facilitators can also act as team coaches, helping people to

improve within themselves and work together in better ways.

Facilitation

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Page 34: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A team wants to do some process improvement, but do not

know how, so they take on a facilitator who manages this

process for them, guiding them through the analysis and solution

processes.

A leader wants to engage in a heart-to-heart discussion with

her team. She gets a facilitator to manage the meeting for her.

Afterwards, she sits down with the facilitator to discuss how well

the meeting went and to plan a follow-up session.

Facilitation

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Page 35: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Often in change people know what needs doing, but they do not

know how to change or work together in the new context. Facilitators

literally 'make things easier'. They do this in meetings and group

sessions by owning the process whereby decisions and other activities

are done, although they never own the content. Thus, they will help

you make a decision, but they will not make the decision for you.

Normal coaching feeds people, helping them solve problems without

teaching them how to solve problems.

'Developmental Facilitation' seeks to teach people to fish, for

example by having sessions at the end of meetings where

dysfunctional behaviours are surfaced and discussed.

Facilitation

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Page 36: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Make the first steps of change particularly easy. Make them

the most obvious thing to do. Then make the next steps easy.

Keep the people focused on the next steps. Before long, they

will have climbed a mountain.

Example:

Instead of asking a person to move to another site, the

company first gets them to finish the task on the first site.

First Steps

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Page 37: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Actually starting something is often the hardest thing. The

Greek poet Horace said, „He has half the deed done who has

made a beginning.‟

People look at the effort of the transition of change as a single

monolithic effort. It seems as a great big step to make. It is the

overwhelm that this creates that often stops people from

getting started.

Taking the reverse approach is what works. Making the next

step so small and easy takes away all reasonable objections to

enacting it.

First Steps

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Page 38: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

When you want someone to stay with you who may be tempted to

leave, make it worth their while to stay by putting significant benefits

in their middle-term future.

Example:

A company is closing down a division and needs a few key players to

stay engaged until the bitter end. They offer them significant bonuses

to stay on to the final date, even though they could leave for a new

job earlier.

An engineer is kept on a dull project by promising him that he will

work on a sexy new project that is starting in six months time.

Golden Handcuffs

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Page 39: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

When loyalty and the joy of the job are not enough to keep people,

then they may need some financial or other rewards. However,

paying them today could still lead them to leave. The promise of

future reward, however, may be enough to keep them engaged.

The promised rewards cannot be too far out or they would not be

enticing -- usually reasonable reward needs to be within a twelve-

month timeframe.

When a reward is gained, this could be a point at which the person

leaves. If you want them to stay, you may need to keep a rolling

handcuff system.

Golden Handcuffs

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Page 40: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Make changes stick by building them into the formal fabric of

the organization, for example:

Make them an organizational standard, building them into the

systems of standards.

Put them or aspects of them into the primary strategic plan.

Build them into people personal objectives.

Ensure people are assessed against them in personal reviews.

Institutionalization

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Page 41: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

An R&D organization creates a review process to be

implemented before products are released to manufacturing.

They put the process into their ISO9000 system, which ensures it

goes through the organizational audit system and any non-

conformances will be identified.

Institutionalization

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Page 42: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

The formal systems and structures within the organization are

those which are not optional. People do them because they are

'business as usual' and because they will be criticized or

otherwise punished if they fail to do them.

After a while, institutionalized items become so entrenched,

people forget to resist and just do what is required, even if

they do not agree with them.

Institutionalization

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Page 43: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Get them involved in the change. Invite them to participate in

discussions. Give them things to do.

Example:

A manager whose cooperation with change is essential is given

a leading role where they are co-opted onto the main steering

committee and are required to go out to various places in the

organization and help persuade others.

Involvement

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Page 44: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

When people are a part of something, they bond with it,

making it a part of their identity. When they become attached

then they attach their fate and objectives with that something.

In this way, when they attach themselves to a change, if the

change succeeds, they succeed, and vice versa. In some sense,

they become the change and the change becomes them -- this is

what full bonding is: an undifferentiated merging of identities.

Involvement

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Page 45: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Set formal objectives for people that they will have to achieve,

but do not tell them how they have to achieve this.

In particular, if you can, give people objectives that they can

only achieve by working in the intended change.

Give them relatively free rein in how they go about achieving

the objectives. Particularly if you want encourage a change in

behaviour or attitude, then you might encourage them to 'look

outside the box' for creative new ways of achieving the

objective.

Management by Objectives (MBO)

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Page 46: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A company that is seeking to get people to work more

collaboratively than individually gives its people objectives that

they cannot achieve alone. There is no explicit requirement to

work together, but the people soon find that they only way to

succeed is to collaborate.

Discussion:

MBO uses a 'what-how' approach. The people in question are

told what to do, but not how. The 'how' thus becomes a part of

their contribution to a successful conclusion.

Management by Objectives (MBO)

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Discussion:

MBO has received bad press in the past. This is typically where

it has been badly implemented, for example when managers

used it as an excuse to give people tasks that were impossible.

This may happen as a result of laziness on the part of the

particular managers in question or may even be a deliberate

ploy, such as to force people to work beyond their normal work

hours.

Management by Objectives (MBO)

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Page 48: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Here is a basic mapping that can be used. You can also get more

complex (depending on what the team is ready to accept). A good

sequence that minimizes resistance is as follows:

What the organization and my people say and do.

What thinking and choosing leads them to this.

What we as a management team say and do (is this the same as our

people?)

Our methods of thinking and choosing that lead to our actions and

words.

Management Causality Mapping

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Page 49: Leadership & change management, lecture 6, by Rahat Kazmi

Pause here to reflect on discuss how what we say and do

affects what the people in the organization say and do.

Next it is time to get personal:

What I say and do.

How I think and choose that leads to what I say and do.

Management Causality Mapping

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Page 50: Leadership & change management, lecture 6, by Rahat Kazmi

When it is realized how dysfunctional current thinking and

behaviour is, you can then move to discussing how these should

change.

Discussion:

Management Causality Mapping

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Page 51: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

This process is based first on the following simple model, that

what people say and do is based on what they think and

choose.

The extension to this (in the dotted lines in the first diagram) is

that what people think and choose is based on what other

people say and do, in particular significant others such as

managers, friends and social leaders.

Management Causality Mapping

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Page 52: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Gather up to several hundred people in a large, open space, such as

a conference centre. You need at least half a day, although Open

Space sessions can be up to three days long.

Explain the rules briefly and state the overall theme around which

you want people to talk.

This should be very general and enable many different interests and

concerns.

Individual people stand up, explain briefly a subject in which they

are interested (for a big room, give them a microphone), write their

name and the subject on a flipchart page, then sit down again. This

process is continued until no more people want to stand up.

Open Space

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Page 53: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A company implementing a cultural change programme holds

an Open Space session with the general theme of 'culture'.

Groups start talking about belief systems, management culture,

trust, national differences and so on.

Open Space

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Discussion:

'Open Space' (or, more fully, Open Space Technology, or OST)

is a simple but very useful way of getting people to openly

discuss issues that are of concern to them.

It started when Harrison Owen was running conferences and

found that people preferred talking to others during the breaks

than listening to speakers. He then began running conferences

without speakers.

In change, this is useful for getting people talking together. For

example, you can use it to get people to talk about their fears

and concerns.

Open Space

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Page 55: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Get them doing something for some trivial reason. Ask them

nicely. Put something in their way that they will naturally do.

Then help them explain to themselves why it is important and

why they are doing it.

When they have bought doing small things, get them doing

increasingly significant things.

Rationalization Trap

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Page 56: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A senior manager who has been doubtful is asked to speak at

a meeting about the importance of a change project. She does

so, and later is seen in a corridor, reinforcing the importance of

the change with several other managers. With more

encouragement and being given a slide set to help, they are

soon presenting to the executive board on the subject.

Rationalization Trap

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Page 57: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

People have a deep need for consistency, and when they do

something they need to have consistency and alignment between

their actions and their beliefs. When there is inconsistency, they must

either change what they are doing or what they belief in order to

restore consistency.

It is important that the person is unable to rationalize why they acted

in this way by thinking about the encouragement they were given.

Thus, for example, the person should not be paid or commanded to

act, otherwise they may rationalize that they did it for the money or

the boss, not because they really believed it was the right thing to

do.

Rationalization Trap

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Page 58: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

When making a change that requires different skills, provide

education that ensures people have the skills and knowledge

they need in their new jobs.

For knowledge education, you can use computer-based courses

as well as more traditional methods. A good way of ensuring

people have required knowledge is to put them through some

form of test at the end.

For skill education, there is little substitute for actual practice,

and education courses should included a significant practical

element, for example with role-plays of the new situations.

Re-education

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Page 59: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

An organization finds that sales have dipped significantly and

so decide to re-train a number of office-based people in

selling.

After putting them out on the road, several of these are still

having difficulties, so further coaching is provided. Those few

who are unable to change and who want to stay with the firm

are re-integrated back into the office, albeit in lower salary

positions.

Re-education

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Page 60: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

A big question when you need new knowledge and skills is whether to

fire and re-hire or to re-train your existing workforce. Fire and hire

may seem cheaper, but there are also costs. Retraining can give

great benefits in loyalty (even to those not affected).

On the other hand, re-training may not work. People may not have

the appropriate aptitude (or motivation) and the result can be

wasted money and incompetent workers.

To make this approach work, the people being trained should first be

assessed both for aptitude, ability to learn and motivation.

Re-education

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Page 61: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Reorganize. Change the shape of the organization in ways that

force behavioural change.

Break up ineffective teams. Put moves and shakers in charge.

Flatten the organization to stop micromanagement. Create self-

managed teams to get people to take responsibility.

When doing this design work, think carefully about what

behaviours it might create that are not so desirable. A good

way of managing this is to create interlocking feedback

systems to prevent deviation from desired behaviour.

Restructuring

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Page 62: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A car manufacturer breaks work into separate units and gives

them to teams. It then publicizes the quality of the work of all

teams. Teams compete to have the best quality and, of course,

overall quality goes up!!

Restructuring

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Page 63: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Just as function follows form, so also will changing the shape of

the organization will change how people behave.

Groups that can cohere into separate units are likely to become

very internally motivated. Motivation is good, but the internal

facing may be away from the organization, so you must ensure

that group goals are aligned, for example by regular external

communications.

Restructuring

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Page 64: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

When you make a change, ensure that you align the reward system

with the changes that you want to happen.

Example:

A company wants to increase team working. To support this, they

remove individual bonuses and only give bonuses for team success.

An organization that wants to increase its customer base, pays sales

people for each new customer they gain. They also want to retain

customers, so they also cut bonuses when a customer assigned to a

sales person defects to a competitor.

Reward Alignment

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Page 65: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

A surprisingly common trap in change is to ask (or even

demand) that people change, yet the reward system that is

driving their behavior is not changed. Requesting teamwork

and rewarding individuals is a very common example.

Many people are driven by extrinsic rewards, and the saying

'Show me how I'm paid and I'll show you how I behave' is

surprisingly common.

Reward Alignment

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Page 66: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

When a change is completed, celebrate with a party or some

other ritualized recognition of the passing of a key milestone.

You can also start a change with a wake (which is a party that

is held to celebrate the life of someone who has died) to

symbolize letting go of the past.

Create new rituals to help shift the culture to a new form. Use

these, if possible, to replace the rituals that already exist.

Rites of Passage

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Page 67: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

When an acquisition begins a change, a ritual celebration is

used to mark the passing of the 'old organization', in which the

events and heroes of that time are marked out and recognized.

Whenever a training class is completed in a change program,

all people on the class are given a certificate by the CEO of

the company, who congratulates them on joining the 'new

company'.

An airline changes the standard set of greetings that are used

with customers, both to symbolize the new approach and also

to embody new philosophies.

Rites of Passage

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Page 68: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Rituals are symbolic acts to which we attribute significant

meaning. A celebration to mark a change is used in many

cultures, ranging from rites of passage to manhood for

aboriginal tribes to the wedding ceremonies of Christian and

other religions. Such ritual passings are often remembered with

great nostalgia, and even the remembrance of them becomes

ritualized.

Ritual allows people to acknowledge and move on, letting go

of a past that has had an emotional tie that may be have been

holding them back.

Rites of Passage

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Page 69: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Set the person a goal or formal objective that requires them to

change.

Goal-setting may be used incrementally, where you set the

person a goal to do something that forces them to let go of

some small thing. Then you set a further goal and then one

further again. In this way, you are getting the person to walk by

focusing on one step at a time.

Setting Goals

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Page 70: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A person is given a formal objective to redesign their working

practices to come into line with new company regulations.

A marketing manager is given the objective to introduce a new

direct-sales method.

Setting Goals

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Page 71: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

The principle here is to use the organizational goal-setting

process to motivate people to change. If I give you an objective

to do something that you have never done before, then you will

need let go of something you have now in order to do that new

thing.

When a person does something, they have to justify it to

themselves. When they do something that is outside of their

beliefs then they have to either discount it or maintain

consistency by changing their beliefs. Thus just getting

somebody to act may be enough to change them.

Setting Goals

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Page 72: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Make a planned set of changes and then pause to make sure the

whole system is still working. Fix small problems to ensure the whole

show is still working together as one before setting off on the next

change.

Example:

An organization which is slimming down its headquarters does it one

department at a time, with a one month break between each

departmental restructuring. During this time, remote divisions are

scanned to see what changes they feel, and the structure of the

department just changed may be readjusted to optimize service.

Shift-and-Sync

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Page 73: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Seal changes by building them into the social structures.

Give social leaders prominent positions in the change. When they

feel ownership for it, they will talk about it and sell it to others.

Create rituals, utilize artifacts and otherwise build it into the culture.

Example:

An organization that is introducing new working practices gets the

trade union engaged (after a long negotiation), including giving its

officials a new and more prominent role. Before long, all dissent

disappears.

Socializing

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Page 74: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

A danger with large changes is that when things stabilize again,

although parts of the system may work -- even the whole of the part

that was changed, it is possible that the change may now be out of

sync with its environment.

Shift-and-sync is a method used in software development, where

changes to a large software product are regularly realigned and

tested, to ensure that the system does not lose connection with its

environment. The same principle is used here in human change, where

small changes are punctuated with pauses to resynchronize and

realign.

Pauses in a change program are also very helpful for letting people

recover from the tension of change.

Shift-and-Sync

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Page 75: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Society is almost invisible and people accept its rules without

even noticing that they are doing so. A change that is socialized

becomes normal and the 'way things are'.

When something becomes a social norm, people will be far

more unlikely to oppose it as to do so is to oppose the group

and its leaders.

Socializing

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Page 76: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

When you are starting up a new organization and closing

down an old organization, do this in a tapered way, moving a

few people over at a time. Be careful here with your best

people: they both need to be involved in setting up the new

organization and also nursing the old organization to its grave,

ensuring a smooth handover.

If you can, do the move in planned phases of activity, proving

each new part before you move people over to the next phase.

Spill and Fill

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Page 77: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A manufacturer is closing down one production line and opening up

another. They start by moving only a few key people over to get the

new line set up. They then move more to prototype and prove the

operational processes. Then they slow down the old line as they move

people over to start up the new line. As the new line gains speed,

people are continually moved across.

Some of the best people are retained on the old line to keep it

going to the end and to work in the various different roles that are

left open. They are rewarded with a bonus for their loyalty and

given good roles when they finally move over.

Spill and Fill

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Page 78: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

This approach does not suit all change situations -- it works only

where there is a move between two organizations, and when

this move can be done gradually.

A benefit of this approach is being able to provide a smooth

change. This is particularly important if both organizations are

delivering a product or service to a single customer base. The

stepwise approach also allows each new change to be trialed

and proven before the next stage. Doing a change all in one

can be rather risky, as failure of the new organization can be

disastrous.

Spill and Fill

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Page 79: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Have clear steps in the change. Break the work into distinct

packages and talk about each separately. Communicate about

the change not as a single, monolithic entity, but as a set of

activities, each of which gains specific value.

When a step has been completed, tie up all the loose ends and

celebrate the completion almost as if it were the end of the

change. Then start the next step.

Stepwise Change

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Page 80: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

A company that is introducing new IT systems breaks the change

work down by introducing one package at a time. It also does

this in pieces for separate departments. At the end of each

implementation, they have a celebratory lunch.

A company developing a new product brings it to market

initially as a simple device that is easy to understand. Then

each new version adds increasing functionality.

Stepwise Change

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Page 81: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Video game manufacturers know how to attract and keep the attention

of people in a challenging game. A key trick they use is to break the

game down into stages and levels. After a quest or fight, there is a

period of respite. The player gains treasure and experience points and

goes up to the next level. They also get a sense of closure about the

previous stage and can look forward to what comes next.

Breaking things down into individual and separate steps has a number

of advantages.

Smaller changes are easier to plan and manage. With less

interdependencies, each step is a coherent whole and is less likely to

unravel.

Stepwise Change

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Page 82: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

When people look at a big change, they are easily overwhelmed by the

size of it and cannot see past the endless pain and suffering they

associate with it. When things are broken down into smaller pieces, and

especially when most talk and attention is about the next stage, then it

does not look anywhere near as bad.

A pause between stages gives time to re-think and replan. When you are

in the thick of the change, things can start to unravel and you have

insufficient time to regroup.

Ending a stage with a celebration lets people pause and relax. It also

helps create a sense of closure and reduces any tendency to revert to old

ways.

Stepwise Change

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Page 83: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Create a motivating vision of the future.

Share it with others.

Live it until it comes true.

Example:

A management team creates a vision of their company winning

an industry award for excellence. This results in them setting up

a small team to study what is needed, which leads to a

program of change in which they improve significantly. When

they win the award, it is secondary.

Visioning

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Page 84: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Visions work only when they act to motivate and inspire the

large numbers of people that are needed to make the change

happen. For the vision to be motivating, then it must be

memorable. For it to be memorable, it must be surprising and

short. To be surprising, it should be different from everyone

else's vision. To be believed, it must be a regular part of the

conversation of senior people.

Visioning

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Page 85: Leadership & change management, lecture 6, by Rahat Kazmi

Method:

Gather together the participants in the Whole-system Planning in

a large room, where everyone can work together as equals. The

number of people are sufficient to represent all groups, but small

enough to discuss matters as a whole. Typically, this ranges from

20 upwards, sometimes to several hundred, although 50 may be

a more normal number. It is also important that there are people

from all areas who can make serious decisions and take away

actions with them.

The format and content may vary significantly, but here is a

common framing.

Whole-System Planning

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Page 86: Leadership & change management, lecture 6, by Rahat Kazmi

Past:

The first day is focused on the past. Delegates tell stories of success

and struggles. The older members of the company tell about its

beginnings and the 'wild days'. Younger members tell how it was to

join more recently. The past is honored and recalled with its full

range of emotion, from nostalgia to humor and also to the less

comfortable times. Depending on the age of the company, this

section may be shorter, but it must not be made too short.

Attention to the past also can be used to take a view of the culture

of the organization, understanding its roots and why it holds its

present form.

Whole-System Planning

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Page 87: Leadership & change management, lecture 6, by Rahat Kazmi

Present:

The next day is focused on the present. The external forces on the

organization are explored. Competitors, new legislation, technical

changes, environmental effects, the pressures of globalization are

all looked at openly. Customers and markets are also considered,

with information about how market share is going up or down,

how products and services are faring, what customers are saying

about the company (quotes and examples are good here). Focus

then moves further in, to how the organization is responding to

these forces, how it is coping, how it is structured. Strengths and

weaknesses are explored, in all departments as well as in the

leadership.

Whole-System Planning

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Page 88: Leadership & change management, lecture 6, by Rahat Kazmi

Future:

Finally, on the third day, the focus is on the future. This may well start

with a visioning exercise to determine a desired future state. This vision

is shared and developed and given local meaning for all involved.

Plans are then built to reach from today to this desirable future. These

may start with overall strategic thoughts, developed collaboratively,

then broken down into more localized plans that are discussed in smaller

groups.

Finally, the management structure for how the changes will be assured is

identified, for example with a regular re-convening of key members of

this group and perhaps less frequent full conferences to re-synchronize

and re-plan as needed.

Whole-System Planning

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Page 89: Leadership & change management, lecture 6, by Rahat Kazmi

Example:

An organization that includes many diverse and powerful sub-

groups uses a Whole-system Planning conference to bring these

people together to understand one another and build the main

bones of a plan to realign the organization around current and

future realities.

Discussion:

The Whole-system Planning approach is particularly useful for

collaborative change settings where you want to engage a large

audience in actively planning for the future and then taking

forward those actions.

Whole-System Planning

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Page 90: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

Celebrating the past can seem like a waste of time, but it has several

benefits. First, it is an excellent socializing process. It brings people

together in a common frame. It also plays strongly to older members of

the group, many of whom may have strong social, if not political,

influence. When they feel recognized, people from this group who may

resist are far more likely to now collaborate. It is also an easy

beginning to presage the increasingly hard work beyond. Having

invested in this, people will already feel a part of the change. This

activity also tends to show how everyone is intimately connected in

many ways, and that any one individual cannot hide or sit back whilst

others take the heat.

Whole-System Planning

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Page 91: Leadership & change management, lecture 6, by Rahat Kazmi

Discussion:

A focus on the present identifies the current issues from which there is no

escape. It highlights the inescapable burning platform which forces

people to contemplate change. It also identifies those things which are

good and which must be kept.

Of course not all plans may be created in detail, but the overall shape

can be built together. In particular, where there are interdependencies,

having everyone in the same room lets you quickly and easily walk

across to another table to negotiate and agree how you will work

together.

There are a number of variants on the principle of Whole-system

Planning, including 'Search Conference', 'Future Search' and 'Real-time

Strategic Change'.

Whole-System Planning

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Page 92: Leadership & change management, lecture 6, by Rahat Kazmi

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