Contents

MODULE 1 Corporate culture in the age

of radical change

MODULE 2 Navigating the course of

change

MODULE 3 Changing smart people

 Contents
MODULE 4 Managing smart people

MODULE 5 Changing corporate

strategies

MODULE 6 Striving downturn

 Contents

MODULE 7 Institutional stability during

change

MODULE 8 Facilitate acceptance of what

can not be changed

MODULE 9 Enable change

 Contents

MODULE 10 Beware the fads and fix it

MODULE 11 Mobilize people behind the

values and vision

MODULE 12 Empower people to control

their work and life
 Contents

MODULE 13 Recognize individual and

team contributions

MODULE 14 Articulate the cultural

requirements for success

MODULE 15 Create a culture revolution

 MODULE 1

CORPORATE
CULTURE

IN THE AGE OF

RADICAL
CHANGE
ITS ABOUT
CHANGE
CHANGE
CHANGE MANAGEMENT
AND
ORGANIZATION
TRANSFORMATION
 Questions about change

e nt Res Know
in g
Ch
an
i tm ou r v s . N vs. ge
m m c e D oing o tc
Co Con What ha
e ef it ng
t i ta ti v t i nu b e n e
a n
Qu vs. Dis vs. ous os t /
rup G ra C
l it a t ive d Purpose
u a ti
Q on Ra vs. ual
W eep di Wh o ge
i n/ o w d c a an
Lo H l u ch
se Yo vs. ge
Why
c h an
i f I
t Le
ha a Con
k

W Fo vs. d fus
ion
Ris

llo
g e
w te rm
You chan Succ
ess M h o rt .
vs. n ea s
S vs erm
t
I change Whe urem
ent Lo n g
 Different types of change

• Reactive/Proactive/Preventive

• Constructive/Destructive

• Continuous/Disruptive
 The learning curve
* Method of Experimentation
1 Establish premise/hypothesis
True competence
2 Design & conduct experiments
3 Make observation & gather data
4 Analyze data & reach conclusions
5 Apply conclusions to real issues Practice & Feedback
Results

Discovery  Insights

Unconsciousness
• Denial Experimentation*
• Certainty
• Righteousness
Curiosity

Time

Confusion
Paradigm shift and continuous
renewal process
Results

• Success becomes the engine of failure

• Initiate change or force to change
• Deep change or slow death

Time
The organizational challenges for a
growth company
•Strategy: Focus Vs Diversification, Profit Vs Market Share,
Build Vs Buy, New Products Vs New Markets, Old Vs
New Business Models, Risk Vs Rewards, Aggressive Vs
Conservative
• People: Attracting New Talents, Developing Existing
People, Managing the Misfits, Owners Vs Managers,
Founder’s syndrome, Leadership and Succession
• Structure: Hierarchy, Bureaucracy, Synergy
• Process: Complexity, Duplication, Internal-focused,
Disconnection, Speed, Quality
• Resource: Competition, Wastage, Idle
• Culture: Keeping the core values at the top, Inertia
 The path of technological
development
Abundant

Region of High
Region of High Customer Power and
Product Vendor Power and Low Vendor Power
Functionality Low Customer Power (except if a monopoly
exists)

Dominant
Design
Scarce Emerges

Creation Stage Transition Commoditization

Stage Stage
 The innovation mix shifts as
technology matures
100% Enabled by a
Base-Process Innovation Business-
(such as design, procurement, Innovation
manufacturing, distribution and Cultural Bias
service processes)

Marketing
Innovation
Innovation Mix
Styling/ Enabled by
Packaging Both Cultural
Innovation Biases

Human Factors
Innovation
Enabled by a
Base-Product Innovation Product-
0% (such as performance, functionality, Innovation
size/portability, reliability) Cultural Bias
Acceptance Early Mainstream Maturity
Adoption Dominant Adoption
Design
Emerges
The cultural bias landscape

Strong
High-Tech MORE
Startups, Labs, INNOVATION,
Think Tanks, MORE CULTURAL
Artisans TENSION
High-Value
Product and Dominant
Service Design
Product- Companies Emerges

Innovation
Cultural Bias
High-Volume
Product and Service
Companies, Upscale
Retailers
LESS
INNOVATION,
LESS CULTURAL Distribution and
Logistics Companies,
TENSION
Discount Retailers

Weak
Business-
Weak Innovation Strong
Cultural Bias
 Why
good
companies
go
bad
?
 THE
TRAPS OF
PREVIOUS
SUCCESSES
 Some common traps

We are a great company with great history

We are a happy family
We did it, and we will do it again
We have a super technology/product
We know what is the best for the market
Our competitors will never catch up
Our competitors are our enemies
Our ISO Certification ensure our quality
Bigger is better - Market share ensure profitability
Success formula
Frames

Resources Relationships
Processes 資源
Resources 關係
Relationships

Culture
價值
Values
 Success breeds failure
Success Formula Active Inertia

Frames Changed
Environment

Processe Resources Relationships

Relation
s Resources
資源 關係
ships

Culture
Values
價值
 3 steps of transformation
1. Select the anchor 2. Secure it 3. Align the rest

Frame Frame

Resources
New Frame Relation
Processes 資源
Resources
ships

Resources
Relation Relation
Processes 資源
Resources 關係 Processes Resources 關係 Values
ships ships

Values Values
 Corporate transformation
Key Factors

Talent Attraction and Assimilation

1. Vision

Evaluation and Reward Systems

2. Values

Talent Development
3. Processes
4. Organization policy
5. Customer Focus
6. Dynamic Management
7. Innovation
8. Initiatives
Conditions for change

Mind
Belief/Possibility

Body Spirit
Desire/Want Intention/Commitment
Organization transformation

Anatomical

Strategy and
Structure
Physiological
Systems and
Policies

Culture and Vales Psychological

Core competencies for change

• Perseverance
• Endurance
• Tenacity
AQ
Adversity Quotient Purpose
• Positive mental Purpose&&Beliefs
Beliefs
attitude

IQ EQ
Intelligent Quotient Emotional Quotient

• Passion, empathy,
• Ability to learn, reason, sensitivity
think, and solve problems • Inspire others
• Right skills and knowledge • Building confidence & trust
• Good common sense • Integrity & personal
leadership
 Embracing and managing
change
• Massive disruptive change
• New direction, new model, new games,
new rules
• Capability & capacity for change
• Urgency for change
Definition of “change agent”

Some one that adds value in the change process

• Identify issues & opportunity for change

• Visualize purpose & desired outcome
• Initiate and cause change
• Mobilize & organize change
• Support & facilitate change
• Execute & implement change
• The role of constructive diversity
• Invent, innovate, intervene.
 Who are change agents

Conscious Vs. Unconscious change agents

Teachers Investors
Writers Bankers
Politicians Businessmen
Governments Managers
Scientists Doctors
Religion workers Social workers
Media workers Stars
You & me
 Be a conscious change agent

• Change myself
• Change my job
• Change my life
• Change my profession
• Change my company
• Change my society
• Change my world
• ………………………
 The change process
• Visioning

Milestones Management
• Mobilization
• Diagnosis

Communication

Motivation
• Design
nderstand
• Plan
• Execute
• Break
• Build
ommit lign

• Measure
• Review
 Steps for change

• Awareness
• Urgency
• Diagnosis
• Take Accountability
• Be at cause
• Find how you can contribute
• Solutions
• Execution
• Reinforcement
• Forgiveness : Self and others  Freedom
 Changing the behavior

• Step out of the box

• Turn on the watcher
• Examine
• the cause
• the stimulant
• the behavior
• Make conscious choice of
your behavior
• This takes efforts &
attention
• Focus only one or two to
work on
• From automatic old habit
to automatic new habit
• AWARE that you can make
a choice
 Levers for change
Individual Behavior Organizational Behavior

• Felt need • Measurement and

• Specific goal and Commitment
measurement • Process and
• Feedback from Systems
someone who you • Accountability
valued • Skills
• Social relationship • Communications
The tipping point, quantitative to
qualitative change
Qualitative Transformation

The tipping point

Gaining Momentum

Initiation

80%

Fence
Early Adopters
Pioneers Sitters/Followers
Rome is not built in a day
 Transformation
• A butterfly is not a better or
improved caterpillar, it looks and
feels completely different, and has
completely new capabilities
• The new capabilities liberate and
free the creature from the world
of the caterpillar to the
“new”world of the butterfly
 Managing change

• Evolution vs. revolution

• Planned vs. unplanned events
• Change can get out of control
• Contingency planing
• Crisis management
• Change leader for one phase
may become road block for
the next phase
• Change at the right time,
right place, with the right
people
• Too early? Too late? Just in
time?
 Freedom and discipline
• Freedom without
discipline

• Instituting discipline at
the expense of freedom

• Affordability of freedom
when discipline is
instituted

• Freedom with discipline

Managing organizational change
Strategy
• Establish a transition team to ensure consistent
communication and to tackle issues raised by the change
• Promote a clear vision to clarify the direction in which the
organization needs to move
Organization
• Leaders should ask tough questions and
challenge the way the company does business
• Good management requires respect for
employees and the organization and is
responsible for shaping the new reality

People
• Losing key employees may destabilize the organization; communicating
the desire to retain these people, early in the process, is important
• Give priority to the "me" issues—personal opportunity, security and the
quality of the work environment

Communication
• Communication plans should address four considerations: audience,
timing, mode and message
• Tips include:
• Communicating rapidly, honestly and frequently
• Ensuring consistency between messages
• Establishing multiple mechanisms to reach employees
• Repeating common themes
 Eight steps to transform your
organization
Establishing a Sense of
Urgency
Forming a Powerful
Guiding Coalition
Creating a Vision
Communicating the Vision
Empowering Others to Act on
the Vision
Planning for and
Creating Short-Term
Wins
Consolidating Improvements
and Producing Still More
Change
Institutionalizing New
Approaches
• Examine market and competitive realities
• Identify and discuss crises, potential crises, or major
opportunities
• Assemble a group with enough power to lead the change
effort
• Encourage the group to work together as a team
• Create a vision to help direct the change effort
• Develop strategies for achieving that vision
• Use possible vehicles to communicate the new vision and
strategies
• Teach new behaviors by the example of the guiding coalition
• Plan for visible performance improvements
• Create those improvements
• Recognize and reward employees involved in the
improvements
• Use increased credibility to change systems, structures, and
policies that won’t fit the vision
• Reinvigorate the process with new projects, themes, and
change agents
• Articulate the connections between the new behaviors and
corporate success
• Develop the means to ensure leadership development and
succession
 Common mistakes
• Writing a memo instead of lighting a fire
• Talking too much and saying too little
Three Mistakes • Declaring victory before the war is over

• Managing multiple time lines—Change leaders should

create short-term wins, but look to long-term success.
Three Tasks • Building coalitions—Change leaders should engage the
right talent, grow the coalition and foster teamwork.
• Creating a vision—Change leaders must engage
employees emotionally behind a vision of the future.
 Why do employees resist change

• Human tendency to stay in existing comfort zone

• Lack of awareness or urgency for change
• Lack of clear understanding or alignment on purpose,
vision, and process of the change
• Lack of trust on the leaders
• Fear of unknown/uncertainty/consequences
• Comfort with long standing habits
• Dependency on existing social dynamics
• Lack of sufficient resources for the change
• Overload of ongoing tasks and responsibilities
• What is the benefit for me to change?
 Why do employee resist
challenges
• The organization's architecture is not aligned and
integrated with a customer-focused business strategy.
• The individual and/or group is affected negatively
• The organization does not communicate expectations
clearly.
• Employees perceive more work with fewer
opportunities.
• Change requires altering a long-standing habit.
• Relationships harbor unresolved past sentiments.
• Employees have fears of future competency/job
security.
 Why organization
transformation fails
• Unclear purpose, vision, and process.
• Lack of commitment from the top.
• Poor communication and engagement.
• Middle management/employee
resistance.
• Focus only on results/process/people.
• Delegated to “outsiders”.
• Lack overall systematic alignment.
• Lack of resources.
 Key strategic questions

• Are we investing in the right things?

• Are we staying ahead of the competition?
• Are we leading and following appropriately?
• Do we have the right skill mix and depth?
• Are we building the right strategic

partnerships?
 Key challenges
• Maintaining self
motivation
• Gaining credibility,
confidence, and trust
• Dealing with objection
• Acting with courage and
virtue
• Acquiring new capability
and capacity
• Mobilizing and allocating
resources
• Building a real team
• Developing shared vision
and common language
• Ensuring continuous
 The road less traveled
“Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;
Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same,
And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.
I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I-
I took the one less traveled by,
And that has made all the difference.“
- By Robert Frost
Don’t get lost

Purpose

Desired Outcome

Actual Outcome
Corporate Culture Change
What is Corporate Culture ?

• System of shared meaning

• Governs the behavior of its
members

• Patterns of values, symbols,

rituals and practices
 Corporate Culture
• Organization Culture Defined:
•Set of key behaviors, beliefs and shared understandings that are
shared by members of the organization.

•Defines basic organizational values and communicates to new

members
•The correct way to think and act.
•Everyone participates in culture, but culture generally goes
unnoticed.
•It is only when organizations attempt to implement new
strategies or programs that go against cultural norms and values
that they come face-to-face with culture.

•Each firm has a distinct culture.

 Corporate Culture
• Levels and Purpose of Culture:
• Culture exists :
• At the surface are visible artifacts and observable behaviors –
dress, actions, symbols, stories, and ceremonies that are
shared.

• Visible elements reflect deeper values such as underlying

assumptions, beliefs, and thought processes or “true culture.”
• Critical Functions:
• Integrate members so they know how to relate to one
another.

• Members develop a collective identity and relationships to

work together effectively.
• Culture guides day-to-day working relationships and
communication.
• Help the firm adapt to the external environment.
Corporate Culture Change
Characteristics of Culture
• Member Identity

• Group Emphasis
• People Focus
• Unit Integration
• Control
• Risk Tolerance
• Reward Criteria
• Conflict Tolerance
• Means-ends Orientation
• Open System Focus
Corporate Culture Change

"Culture must not

remain a relic of the
organization's past. It
needs to
evolve...adapt...help
deliver a successful
future."

—Price Pritchett
Corporate Culture Change
Why Change ?

• The Global Village

The emerging economies are
placing competitive pressures on companies
as never before.

• Customer-Focused Relationships
The new challenge is to develop
interdependent relationships with customers
to provide tailored solutions for their specific
problems.
 Why Change ?

• Faster Pace
The increasing development in
global village is creating fast-paced workflow
with greater flexibility. Speed has become a
major competitive factor.

• Strategic Collaboration
Companies are shifting attitudes
to more cooperative existence to build a
better mousetrap than either could build
separately.
Corporate Culture Change
The Need for Renewal

Organizations may face difficulty in

recognizing and identifying

• pressure of change
• need for renewal
 Corporate Culture
Cultural Change:
Central Issue:
• Just one strategic change is impossible because any strategic
change must be accompanied by accommodations from other
strategic elements inside and outside the corporation.

• General consensus regarding corporate culture

• Organizations should have strong cultures.
• A firm’s culture must fit its environment.
• Culture must contain values supporting continuous change in
order to adjust to new environmental conditions.

Critical issue is to identify the appropriate culture for different

types of business-level strategies.
A strategy should be congruent with an organizations most
important values, practices and beliefs.
 MOUDULE 2

Navigating the Course of

Change
Overview of the
Change Process
 “And the day came when the risk to
remain the same was greater than the
risk to change …

It is, after all, the only hope for the

cocoon to become the butterfly.”
 Types of Change

First Order Second Order

Change Change

Requires Requires
Transactional Transformational
Leadership Leadership
 Why Is Change Difficult?

• Personal Resistance
• Loss
• Challenge to Competence
• Confusion
• Conflict

Change we want in others is called “growth.”

Change others want in us is called “loss.”

 Why is Change Difficult?
• Organizational
Resistance
• Culture of the firm

• Psychological security

• People grow more

conservative with age

• Designed to maintain
the status quo
 Other Organizational or
Personal Inhibitors

• Readiness and
resistance

• A mature faculty

• Midlife issues

• Mid-career issues
Leadership Assumptions

Newtonian Physics Quantum Physics

The world is an The world is
ordered place, events composed of
relationships, fields
have a cause and an
of influence, ideas
effect, linear laws, and culture, open
everything can be systems that continue
understood provided to adapt to their
enough information is environment.
available.
 Tasks of Change
Task Goal Key Factors
Unfreezing Increase the fear of Disconfirmation
not trying Appropriate anxiety
Reduce the fear of and guilt
trying Psychological traits
Moving from loss to Make change Continuity
commitment meaningful Time
Personal Contact
Moving from old Develop new Training that is
competence to new behaviors (skills), coherent, continuous,
competence beliefs, and ways of and personal
thinking
Realign structures,
functions, and roles
 Tasks of Change

Task Goal Key Factors

Moving from Realign structures, Clarity regarding
confusion to functions, and roles responsibility,
coherence authority, and
decision making

Moving from conflict Generate broad A critical mass

to consensus support for change Pressure
Positive use of power
 Continuum of Growth and
Performance

High Growth No Growth

Key Contributors:
 Tools We Can Use

• Develop Purpose and Followership

• Consider Transactional and

Transformational Leadership
• Bartering -- exchanging ideas
• Building – moral authority based upon values
• Bonding – ways to fulfill higher order needs
• Banking – “Servant Leadership” of followers
 Leadership Imperatives
• Trust
• Authentic (True-
to-Yourself) Leadership
• Firm personal ethical
standards (Integrity)
• Build on your core
values
• Bring your experiences
to the job
• Establish clarity and
focus
• Model
• Use Top Down and
Bottom Up
• Gain optimal
participation
• Use recognition
• Use some
confrontation
 Vaill’s Envelope of
Optimal Realism
Ideal Region of instant
gratification and
“too much too
soon”
Performance

Region of realistic
progress;
envelope of
optimal realism

Region of “business
as usual”,
“gradualism”
Current

Now 5-10 years

Time
Vaill Managing as a Performing Art
 Personal and
Organizational Myths

• People act first in the best

interests of the organization.

• People want to understand the

what and why of organizational
change.

• People engage in change

because of the merits of the
change.

• People opt to be architects of

the change affecting them.

• Organizations are rationally

functioning systems.
 Personal and Organizational
Myths
• Organizations are wired to assimilate systemic
change.

• Organizations operate from a value-driven

orientation.

• Organizations can affect long-term, systemic

change even with short-term leadership.

• Organizations can achieve systemic change

without creating conflict in the system.
 Realities about People
• Most people act first in their
own self-interest, not in the
interests of the organization.
• Most people don’t want to
genuinely understand the what
and why of organizational
change.
• Most people engage in
organizational change because
of their own pain, not because
of the merits of the change.
• Most people expect to be viewed
as having good intentions, even
though they view with suspicion
the intentions of those initiating
organizational change.
• Most people opt to be victims of
change rather than architects of
change.
 Realities about
Organizations
• Most organizations
operate non-rationally
rather than rationally.
• Most organizations are
wired to protect the status
quo.
• Most organizations initiate
change with an event-
driven rather than value-
driven mentality.
• Most organizations engage
in long-term change with
short-term leadership.
• Most organizations expect
the greatest amount of
change with the least
amount of conflict.
 Realities about People and
Organizations
• Most people and
organizations deny that the
other ten realities are, in
fact, their own realities.

• Most people and

organizations do have the
capacity to develop
resilience (flexibility) in the
face of the other 11 realities.
 Outdated corporate cultures
• Performance-degrading
cultures have a negative
financial impact on
companies and inhabit their
ability to adopt needed
strategic and tactical
changes.
• When companies are not able
to change their cultures they
cannot expect to be
successful in responding to
radically changing business
conditions in the
marketplace. They will fail.
• Because a company was once
an industry leader does not
make it immune to the
impact of radical change.
 Outdated corporate culture

• Companies such as AT&T,

Arthur Andersen, Compaq,
Digital Equipment,
Bethlehem Steel, Adelphia,
Cray Computer, SmithKline
owe their failures to their
over reliance on outdated
and failed corporate
cultures.
 The shock of radical change
• Between World War II
and the early 1980s,
most companies found
ways to stay in business
in what was then a
relatively stable market
environment.

• People at the top did all

the planning and
expected those below to
implement those plans
without question or
devotion.
Radical change and corporate
culture
• Companies with high performing
cultures have the ability to
anticipate change or respond
effectively to change.
• Companies with
underperforming cultures
quickly lose market share and
are the first to fail when
confronted by radical change.
• The radical change of the 1980s
and 1990s seems modest by
comparison to the radical change
of the twenty first century.
• Entirely new business cultures
have to be conceived, built and
managed for companies to
ensure sustained success.
 Types of Change
• Strategic Change - A change in the firms
strategy
• Technological change
• Changing the way a company creates or markets its
products and services
• Product Change
• Changing types of products
• Culture / People Change
• Changing key people can change the culture and visa versa
• Structural Change
• Changing the organization’s structure
 Strategic Change
• Important to
remember that
strategic changes:
• Are often triggered by
factors outside the
company.
• Common in
turnaround situations
• Necessary to growth or
survival
• Can be highly risky
• Often cause major
other changes

Do not make a strategic change unless you have a strong base business or
your base business is hopeless.
 Technological Change

• These changes are usually process oriented.

They are made to improve the process for how
something is being done but not what is being
done. Automating a production line would be
a technological change.

• Often done to reduce cost.

 Product Change

• Most significant changes occur when entering

new markets with new products.
• May require
• New type of engineers
• New sales and marketing
• New production processes
• New management
 Structural Change

• Changing one or more aspects of the company’s

organization structures.
• Reorganizing: changing the firm’s organization
chart and structural elements.

• This can cause serious problems, like:

• Losing good people
• Disrupting established working processes
• Only do after reviewing other alternatives.
 Structural Change
• The only legitimate
reason for changing
organizational
structure is if the
existing structure is
preventing the business
from meetings its
objectives.*
• Peter Ducker

Change, particularly organizational change, is

disruptive and will be resisted Why?
 Structural Change
How to determine if the existing structure is a
problem? *
• Establish objectives (if you do not have them).
• Identify obstacles / barriers to meeting objectives. E.g.
losing major orders
• Generate an organizational chart (if you do not have
one).
• Identify the responsibilities and position requirements
for each position. NO NAMES!
• Look for structural (not people or other) obstacles /
barriers

* Peter Drucker
 Culture / People Change

• Usually brought on by new senior

management.
• Requires
• Training and development programs.

• Organizational Development (OD)

 The hierarchy of business
change forces
• There are many change
forces at work today and
they tend to fall into three
categories.

• First-order change.
• Second-order change.
• Third-order change.
• FIRST-ORDER CHANGE:
Comes primarily from the business world
itself, Regulatory Agencies, Global Competitive
change forces, Domestic and Global economic
trends.

• SECOND-ORDER CHANGE:
Is generated in large part by exploding new
Technology, Scientific breakthrough, Political
and Social change forces.
• Third order change

Arises from changing

Demographics, Labor
and Talent market shifts
and the Consumer
Markets.
 First order change
First-order change
include:

• Changing economic
conditions,
• Industry
consolidation,
• Increased regulation
• Globalization of
markets.
Global competition like never
before
 Second order change
Second-order change
include:

• Scientific and
Technological
Change.

• Social and Political

Change.
 Scientific and technological
change
• Scientific and Technological
breakthroughs have been a
major force for driving change
for the past twenty years and
have spawned brand-new
industries, not just new
companies.

• These range new from software

development to new
communications devices.

• IBM, MICROSOFT and the

APPLE are widely recognized as
the progenitors of the age of
computers.
 Scientific and technological
change

• Biomedical breakthroughs have also created significant change

and spawned entirely new industries in the fields of medical
devices, bio-medicine and genetic engineering.

• These will be the new age industries of the twenty-first century

that replace nineteenth-and twentieth-century manufacturing
and distribution industries.
 Social and political change

• Ever changing social and political currents have always had a

profound impact on business.
• Changes in political parties at the local, state and federal levels
impact business.
• Social change forces also have a impact on business.
• Specific industries exert tremendous influence on the state and
federal government.
 Third order change

Third-order
change include:

• Changing
demographics.

• Consumers.
 Model of Change Sequence
of Events
Environmental
Forces

Monitor global competition,

customers, competitors,
and other factors.
Need for Initiate Implement
Change Change Change
Evaluate problems and Facilitate search, Use force field
Internal Forces opportunities, define creativity, idea analysis, tactics for
needed changes in champions, and venture overcoming
technology, products, teams. resistance.
Consider plans, goals,
structure, and culture.
company problems, and
needs.
 Types of Organizational
More often than Change
not, one change
causes at least
one other.
Structure

Technology Strategy Products

Culture/People
 Horizontal Linkage

Organization

Manufacturing
Department
Customers,
New
Market
Technology
Conditions
Research Marketing
Departmen Departmen
t t

Change in one department will likely cause change in

another.
 Organizational
Development
• Organizational Development (OD)
• An approach to organizational change in

which the employees themselves

formulate the change--- that is required
and implement it, usually with the aid of
a trained consultant.
 Organizational Development

Can help managers Consist of:

address:

• Mergers
• Team building
• Survey /
• organizational feedback
decline/revitalization. • Large group
intervention
• conflict management.
 Organizational
Development
Organizational
Development consists of
many different types of
programs. Some can be
useful but most require a
professional trained in a
particular area of OD.
There is a high risk of
failure if you try to do it
alone.

The group manager must lead the way. Do

not allow OD folks to run free.
 Managing Change
• How to overcome resistance to
change:

• Create a sense of urgency

• Decide what to change
• Choose the right lieutenants (exclude
all Rats)
• Communicate a shared vision
• Generate short term wins
• Consolidate gains and make more
changes
• Anchor (incorporate) into the
corporate culture
• Monitor progress and adjust (not the
vision or strategy unless absolutely
required)
• Empower employees
 Managing Organizational
Change
• Empowerment

• The act of giving

employees the
authority, tools,
and information
they need to do
their jobs with
greater autonomy
and confidence.
Managing Organizational
Change

BEWARE!

When leading the charge of change – the

threat from behind may far exceed the
threat ahead.
 Managing Organizational
Change
Changing
people is
one of the
most
difficult but
necessary
tasks of
good
managers.