Cognitive Hurdle: Messages through numbers seldom stick.

To high level
managers change seems abstract or remote, the very people you need to win over.
Instead put your managers face to face with the operational problems so that
managers cannot evade reality.

Resource Hurdle: Many people agree on change and what needs to be done but
then are faced with the reality of limited resources. Instead of trimming their
ambitions or fight for more resources, which takes time away from solving the
problems. Instead look to concentrate the resources you have in the places that are
most in need. Force your subordinates to re-think how they are using their resources
now and if they are using them effectively in the first place.

Motivational Hurdle: How to move from knowing what to do but wanting to do it.
Getting people motivated to make change through incentives can take a long time
to implement across a large organization with a wide variety of needs and can be
expensive. Single out the key influencers, which act like kingpins in bowling. When
you hit them just right, all the pins topple over. Determine those that have access to
persuade or ability to block access to resources. So once you identify them, you put
them under a spotlight. Possibly at a large scale strategy review type meeting.

Political Hurdle: Identify and slice powerful naysayers early on. First bring on a
respected senior insider onto the top team (your #2 for instance). Determine
internally the attitudes of your personnel. Dont fire everyone but use data /
indisputable facts and make an example out of someone or some task everyone is
against.

Cracking the Code of Change Itself:

Theory O: geared toward building up the corporate culture, employee

behaviours, attitudes, capabilities and commitment.
Theory E: Strategies usually involve heavy use of economic incentives,
drastic layoffs, downsizing and restructuring. Shareholder value is the only
legitimate measure of corporate success.
To understand the difference in Theories, look at the key dimensions
o Goals: Theory O to development org capabilities, Theory E to max
shareholder value
o Leadership: Theory O encourage participation from the bottom up,
Theory E management change from the top down
o Focus: Theory O Build up corp culture through behaviour and attitudes,
Theory E emphasize structure & systems
o Process: Theory O experiment and evolve, Theory E plan & establish
programs
o Rewards System: Theory O motivate through commitment, Theory E
motivate through financial incentives
o Use of Outside Help: Theory O support in mgmt. in shaping their own
solutions, Theory E analyze problems and shape the solutions

Sequence E and then O restructuring if you intend to combine the strategies. State
the goals so there is no contradiction and confront the tension between E & O. Think
about the overall strategy required to solve the problem, then think about the
capabilities or behaviors and use of available resources to attain that strategy.
Anything that doesnt support either restructure or remove it (E). Communicate the
direction from top and engage people from below. Focus on hard and soft sides of
the organization, plan for spontaneity, use incentives to reinforce positive
behaviors/attitudes/developing of capabilities. Use consultants in specialized ways
to support / working alongside leaders.
There are formal hierarchies and informal networks. To be able to achieve great
change you have to go beyond the formal hierarchy, understand the informal
network and utilize those at the heart of them.

Look for those who everyone else seeks out for advice, information, or how to
perceive recent public information.

Look for people who bridge disconnected groups and individuals.

Understand the indifferent or fence sitters about the proposed change.

Be careful about relationships with hard resisters, you can attain minor changes but
major changes can be hindered.

Informal networks always matter. Formal authority may give you the illusion of
power.
Ensure that the organization understands the opportunity and importance of taking
advantage of a positive (i.e growing scale) or understands the problem (revenue or
profits) and importance of addressing the causes/concerns (changing
technology/products/services)

Clearly understand what the new business model needs to look like and where the
culture needs to shift to. Develop tools to help the people interact, make decisions,
behave in the manner that is conducive to supporting the new business model.
(Culture Change Toolbox)

- Metrics: Describe what the culture values and make clear what people will be
held accountable for
- Process: Change how work is done and thus integrates the new culture into
the organization
- Programs: These generate support for and provide the first demonstration of
the new cultures effectiveness
- Structure: These provide the formal framework for the new culture to grow,
often by changing where and how decisions are made.

Culture Change Toolbox:

Establish the following:

Data Templates: Forms to organize performance data for quarterly business reviews.

Strategic Operating & Resource Planning: A session for top management to balance
priorities and select investments most likely to achieve financial and business
targets

Disciplined Talent Reviews

Manager Learning Forums: Role playing, simulation or other exercises to highlight

the competitive threats and make transparent the companys future plans

Weekly Conference Calls: Top 15 executives are held accountable to their previous
weeks commitments to achieve financial and business results & sharing information
about operations / customers / markets / competitive conditions

Employee Task Forces: Used to gather unfiltered input from the people closest to the
problem and gain their support for the changes the solution requires

Leadership Development Programs: Future Leaders, Store Leaders (or where there
will always be a need for talent),

Mapping of the HR process: Ensure the process to sustain cultural change is intact.
Identifies ways that HR tasks could be improved.

In the game of change, velocity is your friend

The eight errors firms typically make during their transformation change.
Vision is needed to guide people through a major change, so a vision of the change
process can reduce the error rate. Fewer errors can spell the difference between
success and failure.

Leading Change When Business is Good

A focus on how to change your value system so the same resources understand how
to do their job on the front line. How to make decisions that positively impact the
company.

Not changing your view, when the market is shifting underneath you is a great way
to go out business.

Focusing on having a set of beliefs or principles, precepts or DNA are what helps
your firm act. Some beliefs over time can breed the wrong attitudes though, such as
what happened at IBM. Entitlement, Arrogance.

To manage a values jam you ask

Company Values, what are they now?

A first draft from all the inputs you put together

Then ask two questions, one with and one without your firm. Getting stories from
others in the firm.