Dr. Abdurrahman Baş Fall 2013
Develop «D»
Execution & Change
Management
Contents
• Three Core Processes of Execution
• Forces for Change
• Principles of Change
• Five Activities Contributing to Effective Change Management
• Creating Vision of Change
• Motivating Change
• Developing Political Support
• Managing the Transition
• Sustaining Momentum
• Elements of Change Enablement
Wordle
EXTROVERT
Execution & Change Visionary & Communicator
Strategic Planning & Control Teamwork & Collaboration
TASK RELATIONSHIP
Personality and Leadership
Change &
Performance Driver
• Maintains focus on Vision &
Goals
• Self-reliant
• Autocratic managerial skills – great in a crisis!
• Pushes group to make decisions
• Willing to speak out
Problem Solver
• Innovative in obtaining results
• Welcomes challenges without fear
• Ability to overcome obstacles
• Accepts risks
Multitasker
• Sees big picture
• Ability to handle multiple projects
in a
Team Dynamic
E
xecution is a discipline, and integral part to strategy - No worthwhile strategy can be planned without taking it into account the organization’s ability to execute itWhy Execution is Needed?
E
xecution is the major job of the business leader - Execution requires a comprehensive understanding of a business, its people and its environment and the leader is only person in a position to achieve that understandingE
xecution must be a core element of an organization’s culture - Execution has to be embedded in the reward systems and in the norms of behavior that everyone practices.Three Core Processes of Execution
❶Strategy Process: Defines where a business wants to go
❸Operational Process: Provides the path for those people.
❷People Process: Defines who’s going to get it there
Strong & challenging strategy, most of the time, necessitates a comprehensive change in structure and/or in culture
throughout the organization…
The Need for a Strong Strategy & Forces for Change...
Electronic commerce
Virtual organizations
Digital convergence
“Knowledge economy”
“Information Superhighway”
... are transforming the vision of businesses !
Mergers & acquisitions
Privatizations
Not Very Successful Very Successful
Moderately Successful
Too soon to tell
Unsure 33%
27%
27%
9%
4%
Rate of Success in Change Efforts
Technical Side of Change Human Side of Change
Two Sides of Change
1. Change is a process that can be enabled, not managed
2. The change process must be linked to business and performance goals
3. Building capacity to change is a strategic imperative
4. Building capacity for change is an evolutionary process
Principles of Change
5. Effective change processes require a systemic view of the organization
6. The change process involves both organizational and personal transitions
7. Behavioral change is a function of perceived need and occurs at the emotional, not the intellectual level
Principles of Change
8. Resistance to change is predictable reaction to an emotional process and depends on a person’s perception of a change situation
9. A handful of change enablement best practices account for the success of most change
processes
10.Change strategies are situational
Principles of Change
Five Activities Contributing to Effective Change Management
1. Creating Vision of Change
2. Motivating Change
3. Developing Political Support
4. Managing the Transition of Change
5. Sustaining Momentum
Effective
Change
Management
1. Creating Vision of Change
Constructing the Envisioned Future
Bold and Valued Outcomes
Desired Future
State
VISION
To be the world’s largest and the most preferred Turkish ready to wear retail brand in the world by the end of 2015.
VALUES: Reliability, Proactiveness, Swift Actions, Freedom, Respect, Commitment to Excellence, World Citizenship
MISSION: Our business – is not only to sell clothes; But also to make people happy with our products COMPETENCIES: Communication Skills, Commercial Approach, Customer Orientation,
Team Work, Leadership and Management
FINANCE CUSTOMER OPERATIONS
PEOPLE
2. Motivating Change
Motivating change and creating readiness for
change
Sensitize organizations to
pressure for change
Reveal discrepancies between current and desired states
Convey credible positive
expectations for
Force Field Analysis Model
Current Situation Restraining Forces for Change
Driving Forces for Change
Force Field Analysis Model
Strengthening or adding driving forces
Removing or reducing restraining
forces
Changing the direction of some of the
Change
Resistance to Change
20% 40% 60% 80% 100%
Limitations of Existing Systems Lack of Executive Commitment Lack of Executive Champion Unrealistic Expectations Lack of Cross-Functional Team
Inadequate Team and User Skills Technology Users Not Involved Project Charter Too Narrow
Barriers to Change
Individual Resistance
Individual Resistance Habit
Selective Information
Economic Factors Job Security
Fear of the Unknown
Organizational Resistance
Organizational Resistance Threat to Established
Power Relationship
Group Inertia
Threat to Established Resource Allocations
Structural Inertia
Limited Focus of Change
Denial
Past Future
Four Phases of Transition
Commitment
• “How good things were in the past”
• “It can’t happen here”
• Numbness
• Everything-as-usual attitude
• Refusing to hear new information
• Anger
• Loss and hurt
• Stubbornness
• Blaming others
• Complaining
• Getting sick
• Doubting your ability
Some of the Signs in Each Phase
Denial Resistance
Exploration Commitment
• “What’s going to happen to me?”
• Seeing possibilities
• Chaos
• Indecisiveness
• Unfocused work
• Energy
• Clarifying goals
• “Where I am headed”
• Focus
• Teamwork
• Vision
• Cooperation
• Balance
Some of the Signs in Each Phase
Overcoming Resistance to Change
Education and Communication
Participation and Involvement
Facilitation and Support
Negotiation
Manipulation and Cooptation
Coercion
Overcoming Resistance
to Change
3. Developing Political Support
Assessing Change Agent Power
Identifying Key Stakeholders
Influencing Stakeholders
Developing
Political
Support
Roles in Organizational Change
Change Sponsor
Change Agents
Change Target
These are individuals or groups with the power to determine that a change will occur
These are individuals or groups
responsible for seeing that a previously determined change occurs
These are individuals or groups who are asked to change something (knowledge, skills, or behavior) as a result of the
change
Influencing Key Stakeholders
A set of questions designed to profile an individual stakeholder:
• Reluctant and occasional
• Make response to threats
• Assertive and direct
• Deception and subtlety
What is their style of using power?
• What is their source of power ?
• What they can control: money, time, resources, people, information ?
• Who they can influence: friends, admirers, those who feel obligation ?
Power
Influencing Key Stakeholders
• Changes their power ?
• Affects other needs ?
• Affects goals, objectives and interests ?
• Opposition, uncertainty or support ?
• Action now or ‘wait and see’ ?
• Open action or hidden action ?
• Individual action or acting with others ? What is their likely
response to the change?
How does the change really affect them?
Effect of Change
Influencing Key Stakeholders
• Significant or limited ?
• Local or widespread ?
• Recoverable or permanent ? What would be the
impact of their response?
Effect of Change
Influencing Key Stakeholders
What would make them more supportive of the change?
• Information / understanding ?
• Involvement and ownership ?
• Changes in planned actions?
• Direction from more senior managers ?
• Evidence of the success of the change ?
What would make them less supportive of the change?
• Personal threat ?
• Non-involvement in decisions ?
• Personal rivalries ?
• Insufficient evidence in ‘trial period’
(defined by them) ? Influencing Key Stakeholders
4. Managing the Transition
Current State
Desired Future State
Transition State
• Activity Planning
• Change Management Team
Head
(Executive Sponsor)
Head Organizational
Development (Change Leaders)
Communication Role (Change Agents)
Human Resources Role (Change Agents)
• Corporate Management
• Key project accountability and ownership
• Report to CEO on project outcomes/success
• Coordinate overall change program
• Develop clear change strategies for change
• Responsible and accountable for overall success
• Develop individual and team change capability
• Provide clear communication to all key stakeholders on change related issues
• Develop 2-way communication channels to foster ongoing organizational change
• Provide expert HR advice on personal transitions and support
• Provide Change Office & project based HR
Change Management Team : Roles Example
Project Leaders
• Take responsibility for key initiatives
• Coordinate project team
• Report to business unit GM and Change Office on project progress
• Develop leadership change management capability
• Provide ongoing change advice to leaders
• Coordinate project infrastructure & integration
• Prioritize and plan overall project timeframes
• Establish clear project performance measures and Leadership Advisory
Role
Process Co-ordination Role
Change Management Team : Roles Example
Critical Skills of Change Agents
Understands change dynamics
Appreciates diversity
Anticipates and manages
resistance
Understands power and
influence Has high
credibility
Manages multiple tasks
5. Sustaining Momentum
Sustaining Momentum
Providing Resource for Change
Building a Support System for Change Agents
Developing New
Competencies and Skills Reinforcing New Behaviors
Staying the Course
1. Creating Vision of Change
2. Motivating Change
3. Developing Political Support
4. Managing the Transition of Change
5. Sustaining Momentum
Effective Change Management
Five Activities Contributing to Effective Change Management
Culture Capacity
Leadership Capacity
Individual
& Team Capacity
Future State
Current State
Realizing
Leadership Capacity
Individual &
Team Capacity Change
Architecture
Communication Performance Management Cultural
Capacity
Elements of Change Enablement
Change Architecture
Communication
Performance Management
Organizational Transition
Leadership Capacity
Team & Individual Capacity
Cultural Capacity
Personal Transition
Change Process
Elements of Change Enablement
There is an explicit strategy and structure which define the nature and sequence of specific activities and resources required to facilitate the change
process.
Change Architecture
Communicat ion
An infrastructure and plan is in place to build
awareness of change goals, communicate progress toward attainment of these goals, and encourage collective ownership of the change process and outcomes.
Change Enablement – Best Practices
Human Resources processes - recruiting, training, measuring and rewarding - are aligned to drive new behaviors in support of the business vision.
Performance Management
Change Enablement – Best Practices
Leaders’ values and behaviors are aligned with the business vision; leaders possess the skills to drive the change process to completion, and accept the
responsibility for doing so
Leadership Capacity
Team &
Individual Capacity
Actions have been taken to increase individuals’ and teams’ ability to enact the business vision and operate effectively in the new environment.
Change Enablement – Best Practices
The organization has assessed the alignment of the current culture with the change process and built new values and behaviors as appropriate to support it.
