Change Management News

Major Study on Change and Change Management

rick maurer — Fri, 09 May 2008 12:26:25 +0000

This was a major study of CEOs conducted by IBM. CNN reports: There has been a dramatic increase in the number of global business leaders who see important change ahead and “highlights how the ability to absorb and manage change is widening the gap between winners and losers in the global economy.”

“Overall, 83 percent of surveyed CEOs expect substantial change in the future, an increase of 28 percent in just two years. However, CEOs report their ability to effectively manage change is increasing at a far slower pace.” (Italics are mine.) And then. . .

“Collectively, CEOs set their organization’s ability to manage change 22 percentage points lower than their expectations for the level of change they will have to manage — a ‘change gap’ that is widening.” The phrase “a change gap that is widening” got my attention.

“The enterprise of the future accepts change as a permanent state in an organization. Those CEOs who demonstrate the capacity to manage major change know they can beat the competition by reaching new classes of customers, and making bold moves to shift business design around principles of global integration,” said Ginni Rometty, senior vice president, IBM Global Business Services. “And it’s clear that out-performers are distancing their enterprises from the competition based on their organizational capacity to take advantage of change.”

You can read the full news feed at: CNNMoney

Change Management and Lean Manufacturing

rick maurer — Thu, 08 May 2008 13:37:12 +0000

Often my work in change management takes me to companies that want to use a lean manufacturing or sometimes Lean/Six Sigma. I claim no expertese in that discipline. I get called in to help them work with the human aspect of those types of changes. Why would people resist something as sensible as lean or Lean/Six Sigma? And what does it take to build support?
I am always looking for ways to increase my knowledge of the specifics of changes like these, even though I will never put myself in a position of advising people on the technical aspects of lean.

Gabriela Drescher who is an expert lean manufacturing. If you are interested in learning more about this subject, I suggest that you visit her website: ImplementLeanManufacutring

She provides clear (plain English) definitions and descriptions. I think her site offers a good orientation to lean.

The Creepy Cult of Management Consulting

rick maurer — Thu, 08 May 2008 01:52:52 +0000

If you are a consultant, you oughta read this piece from The Independent (London)
Gary McKeone: The creepy cult of management consultancy This guy is funny and cynical — and has a lot to say about how some people see our work. I think his words are worth remembering.

Leading Change Up the Ladder

rick maurer — Wed, 07 May 2008 16:45:26 +0000

I was visiting a forum on the lean.org site and responded to someone who asked, how he can get upper management to support lean. (Makes no difference if its lean or any other idea — getting upper management to listen seriously can be a challenge. Here is my response to him.

Here’s how I look at influence (and you’ll see how the ideas of others fit into some of these categories:

People resist us and our ideas for any of three lessons:

They don’t get it. (Level 1)

They don’t like it. (Level 2)

They don’t like us. (Level 3)

The good news is that the same dynamics are at play when they support us. They get it. They like it. And they like us or trust us.

(Here is a link to an article I wrote on this: Resistance to Change: Why It Matters and What to Do About It)

(Some suggested using case studies, so I said. . . ) Case studies can be great. It shows leaders that the idea has worked somewhere else. Preferably somewhere similar to your organization. If it is a good case it hits Level 1 (understanding), Level 2 (it packs an emotional wallop), and Level 3 (they know that this company is credible and is doing well in the marketplace.)

What often is missing when we try to influence others is Level 3. What is their reaction to you? Do they trust you – or not? Do they have confidence in you – or not? Unless Level 3 is working in your favor, no amount of Level 1 data is likely to work. And too often, we make our case based on data. We kill them with PowerPoint. If trust is low, then you either need to do things to demonstrate that you are worthy of their trust or get someone else to make the case for lean. Without that level 3 trust, your chance of succeeding (or even getting in the door) is low.

I hope this helps.

Rick Maurer
www.beyondresistance.com

Change Management Training is a Waste of Money

rick maurer — Sat, 03 May 2008 15:00:29 +0000

(This is my response to a Human Resources blog that was promoting training as major support in change management.)
I agree that organizations need to be savvy about change management. But, change management training is a bad investment of money and time.

1. Training is a poor substitute for leadership. When training is used as the primary way of engaging people in change, you put the new initiative at risk. Training supports leadership, not the reverse. Without leadership people learn skills but lack a focus to apply them.

2. Training that is offered before it is needed is soon forgotten. And, even worse, people grow cynical. They begin to believe that they know all they need to know about managing change without ever having had to apply these ideas.

When training is linked directly to a new project as a way to give everyone a common language and set of tools, it can be a fine intervention. This is especially true if the training itself is an intervention. For example, teach a model and then apply immediately to the project. Teach the next tool and then apply it right away. Etc.

Taking Out the Trash and Change Management — No, Really!

rick maurer — Fri, 02 May 2008 20:05:04 +0000

Interesting post on Maximum Customer Experience Blog using the example of the challenge of getting a child to take out the trash has lessons for those who try to influence others at work.

Celebrating Failure

rick maurer — Tue, 29 Apr 2008 15:16:27 +0000

My friend, Rich Harwood wrote a blog post yesterday titled The $100,000 Flop. He talks about his fantasy of going into a community and openly discussing a big failure. Showing people that its possible to discuss flops and learn from them. I like the way he thinks.

Leading Change and Story Telling

rick maurer — Mon, 28 Apr 2008 14:38:58 +0000

Thanks to Dr. Richard Borough’s blog for this:
Researchers have found that storytelling is far more convincing to an audience than rational arguments, statistics, or facts. In her book “Corporate Legends and Lore: The Power of Storytelling as a Management Tool,” Peg Neuhauser outlines the results of a study with MBA students that demonstrate the power of a story. MBA students are very much orientated by statistics. Neuhauser divided her statistically oriented students into three groups. The first group was given only statistics related to the potential success of a new winery. The second group was given statistics and a story. The third group received only the story. The story ended with: “And my father would be so proud to sip this wine.” A majority of students in the third group believed that the winery would be successful, while in the other two groups the skeptics predominated. The story, not the statistics, sold the winery.

Outsourcing Change Management (Yet Another Dumb idea)

rick maurer — Fri, 25 Apr 2008 19:40:54 +0000

According to a managerial recruiting service in the UK, one in five assignments were focused on change management. ONREC.COM

I am amazed that companies are deciding that change can be led by outsiders. People’s relationship to the ones leading the change is a critical factor in the success of many changes. Hiring from the outside suggests that this person can build trust in his/her thinking, commitment, fairness, etc. instantly. I think they are badly mistaken. what have you seen out there? Do you agree with my assessment or not?

Downsizing - A Dumb Change Management Strategy

rick maurer — Thu, 24 Apr 2008 14:56:45 +0000

Cost cutting by downsizing is a risky strategy. Even a small reduction in force “can unleash an exodus of valuable employees.” Here’s the really scary part. Companies that laid off half of one percent found that turnover rate was 13 percent. (Turnover in companies that didn’t downsize was 10.4 percent.)

The Academy of Management Journal report cited in Business Week. 4/21/08.