Leading Organizational Change

(automotive company example) I think there are two common reasons why we fall into this trap. First, we often don't think through carefully enough what new _______, skills, and attitudes will be needed when major changes are initiated. Second, we sometimes do recognize correctly what is needed, but when we translate that into time and money, we are overwhelmed by the results.

behavior

Real leaders often create these sorts of __________ rather than waiting for something to happen.

artificial crises

Error #5: Permitting Obstacles to _____ the New Vision

block

One well emplaced _________ can stop an entire change effort.

blocker

Managers tend to think in terms of their immediate subordinates and boss, not the _______ that need to buy into a vision.

broader constituencies

The most important aspects of management include planning,_________, organizing, staffing, controlling, and problem solving

budgeting

These kinds of organizations tend either to repel people with leadership potential or to take those individuals and teach them only about _______________.

bureaucratic management

If you've had experience with this kind of change, you'll know that you need to slow down at first to build up the _______ to deal successfully with the situation.

capacity

They develop the ___________ to handle a complex and changing business environment.

capacity

Firms are finding that without big inventories, the various parts of a plant need to be much more _________, that with pressure to bring out new products faster, the elements of product development need much closer integration, and so on.

carefully coordinated

The process fails for two interrelated sets of reasons: 1. The management approach back then was usually too __________ to handle twenty complex change projects. 2. Without the guiding vision and alignment that only __________ can provide, the people in charge of each of the projects wind up spending endless hours trying to coordinate their efforts so that they aren't constantly stepping on each other's toes

centralized/leadership

In celebrating short term wins, _________ can give the opposition just that opportunity.

change agents

A good short-term win has at least three characteristics: 1. It's visible: large numbers of people can see for themselves whether the result is real or just hype. 2. It's unambiguous: there can be little argument over the call. 3. It's clearly related to the______________.

change effort

The ___________ inside organizations would become less worrisome if the business environment would soon stabilize or at least slow down.

change problem

Reengineering, restructuring, and other ________ never work well over the long run unless they are guided by visions that appeal to most of the people who have a stake in the enterprise

change programs

Again: Without sufficient leadership ________, and excelling in a rapidly changing world becomes problematic.

change stalls

Sources of complacency are rarely _____________ because urgency is not an issue for people who have been asked all their lives merely to maintain the current system like a softly humming Swiss watch.

attacked adequately

Changing this reality (education and training for managerially empowered employees) is usually more of an_______________ than a technical or economic issue.

attitudinal challenge

The guiding coalitions concluded that important ______ were needed to implement the visions and strategies.

attitudinal changes

An effective vision and __________ help resolve these issues.

back-up strategies

The purpose of stage 5 is to empower a broad base of people to take action by removing as many _________to the implementation of the change vision as possible at this point in the process.

barriers

When you neglect any of the warm-up or defrosting activities (steps 1-4), you rarely establish a solid enough ________ on which to proceed.

base

With urgency low it's difficult to put together a group with enough power and credibility to guide the effort or to convince key individuals to spend the time necessary to create and communicate a __________.

change vision

An organization with more delegation, which means a lean and flat hierarchy, is in a far superior position to maneuver than one with a big, _______________ lump in the middle.

change-resistant

In the most commonly known historical model, leadership is the province of the __________

chosen few

Leadership is a set of processes that creates organizations in the first place or adapts them to significantly changing____________.

circumstances

The time and energy required for effective vision communication are directly related to the _________ of the message.

clarity and simplicity

Brief effective statements: 1. Eliminate many possibilities 2. Point specifically to areas that need to change 3. State a ___________

clear target

Most of the successful transformation efforts I've seen exploit the fact that much useless information typically ________expensive channels of communication.

clogs

Lifelong learners take risks. Much more than others, these men and women push themselves out of their ___________ and try new ideas.

comfort zones

Vision refers to a picture of the future with some implicit or explicit __________ on why people should strive to create that future.

commentary

Error#4: Under __________________ the Vision by a Factor of 10 (or 100 or even 1,000)

communicating

Complex efforts to change strategies or restructure businesses risk losing momentum if there are no short-term goals to meet and celebrate Unless they see ___________ within six to eighteen months that the journey is producing expected results.

compelling evidence

Managing change is important. Without ___________ the transformation process can get out of control.

competent management

Without ________, inadequate thought is usually given to the while question of measurement.

competent management

Truly adaptive firms with adaptive cultures are awesome_____________.

competitive machines

Error #1: Allowing too much _________.

complacency

Transformations always fail to achieve their objectives when __________ levels are high.

complacency

Major change is never successful unless the _________ is low

complacency level

IF you study the marcels, Mannys, and Matsushitas of the world, you find that the secret to their capacity to develop leadership and other skills is closely related to the power of _____________.

compounded growth

A majority of employees, perhaps 75 percent of management overall, and virtually all of the top executives need to believe that ______________ is absolutely essential.

considerable change

In an environment of ____________, individuals won't have enough time or expertise to absorb rapidly shifting competitor, customer, and technological information.

constant change

In a change process, a good vision serves three important purposes: 1) By clarifying the general direction for change, it simplifies hundreds or thousands of more detailed decisions. 2) It motivates people to take action in the right direction, even if the initial steps are personally painful. 3) It helps ____________of different people, in a remarkable fast and efficient way.

coordinate the actions

The leadership provided by senior executives helps give those other people the information they need to help____________ without endless planning and meetings.

coordinate their activities

Anchoring a new set of practices in a culture is difficult enough when those approaches are consistent with the __________.

core of the culture

The point is to _________ insider myopia with external data. In a fast-moving world, insider myopia can be deadly.

counteract

• Confront supervisors who undercut needed change: Nothing __________ the way a bad boss can.

disempowers people

Great leaders know how to make ambitious goals look _________.

doable

Effective visions are always _________ enough to guide employees-to convey which actions are important and which are out of bounds.

focused

Chapter 2: Successful Change and the_______ that Drives It

force

Irrational and political resistance to change never __________.

fully dissipates

Short term wins that support transformation are usually ___________. They aren't the product of smoke and mirrors.

genuine

In a successful transformation, managers actively: -look for ways to obtain clear performance improvements, -establish__________ in the early planning system -achieve these objectives -and reward the people involved with recognition, promotions, or money

goals

In a slow-moving world, all an organization needs is a __________ in charge: teamwork at the top is not essential.

good executive

The last stage _______ the changes in the corporate culture and helps make them stick.

grounds

In the twentieth century, we have found ___________and shared values in organizations mostly to be barriers to change-they don't need to be.

group norms /shared values

The amount of significant, often traumatic, change in organizations has ________tremendously over the past two decades.

grown

People also fail to reinforce earlier stages as they move on and as a result the sense of urgency dissipates or the ________ breaks up.

guiding coalition

A globalized economy is creating both more ______ and more opportunities for everyone.

hazards

Major change is often said to be impossible unless the ________-is an active supporter.

head of the organization

Developing a good vision is an exercise of both the ________ and the ________, it takes some time, it always involves a group of people, and it is tough to do well.

head/heart

A powerful enough guiding coalition with sufficient leadership is not created by people who have been taught to think in terms of __________.

hierarchy and management

Your initial question will be: Is the urgency rate, especially around the issue of helping customers, _____________?

high enough around here

Easy solutions to this sort of problem often don't exist. From what I've seen the best solution to this kind of problem is usually____________.

honest dialogue

Missing leadership is generally addressed in three ways 1. People are brought in from outside the firm 2. Employees who know _______are promoted from within 3. Employees who hold positions requiring leadership, but who rarely lead, are encouraged to accept the challenge.

how to lead

(Marcel example) With a relative ______________ of himself, he watched more closely and listened more carefully than did most others.

humble view

In larger and older firms, the problem of insufficient management is typically associated with either a new strong leader who ___________ or a lack of commitment from those managers to the transformation.

ignores his managers

Consequences o New strategies aren't __________ well o Acquisitions don't achieve expected synergies o Reengineering doesn't get costs under control o Quality programs don't deliver hoped-for results.

implemented

I'm communicating here what I have seen, heard, and concluded on a set of interrelated topics that appear to be increasingly ______________________

important

In successful transformations, the president, division general manager, or department head plus another five, fifteen, or fifty people with a commitment to _________ pull together as a team.

improved performance

One simple question-is this ________ with the vision?- can help eliminate hours, days, or even months of torturous discussion.

in line

In short, nothing undermines the communication of a change vision more than behavior on the part of key players that seems ____________ with the vision.

inconsistent

Nothing undermines change more than behavior by important individuals that is _________ with the verbal communication.

inconsistent

Progress can slip quickly for two reasons. One has to do with corporate culture. The second is directly related to the kind of______________that is created by a fast-moving environment.

increased interdependence

Successful organizations in the 21st century will have to become more like_______________ of leadership.

incubators

But these new interconnections greatly complicate transformation efforts, because change happens much more easily in a system of _________.

independent parts

Because of the nature of management processes, managers often think in terms of ________ time frames. For them, the short term is this week, the medium term a few months, the long term a year.

much shorter

The key lies in understanding why organizations resist needed change, what exactly is the _________ that can overcome destructive inertia, and, most of all, how the leadership that is required to drive that t process in a socially healthy way means more than good management.

multistate process

(WWII Pharmac Example) Fourth; the organizational structure focused most people's attention on_________instead of broad business performance.

narrow functional goals

The combination of trust and a common goal shared by people with the right characteristics can make for a powerful team. The resulting guiding coalition will have the capacity to make __________ happen despite all the forces of inertia.

needed change

Until changed practices attain a _____________ and have been driven into the culture, they can be very fragile.

new equilibrium

Table 12-1, Mental habits that support lifelong learning • Risk taking • Humble self-reflection • Solicitation of opinions • Careful listening • Openness to ________

new ideas

____________ have even higher standards of proof.

nonbelievers

Given a choice, customers rarely tolerate producers that are not _______ on their interests.

not focused

By far the most common vehicle used now is some form of carefully planned __________.

off-site meetings

No ___________, even a monarch-like CEO, is ever able to develop the right vision, communicate it to large numbers of people, eliminate all the key obstacles, generate short-term wins, lead and manage dozens of change project, and anchor new approaches deep in the organization's culture.

one individual

Much of the time is spent encouraging honest discussions about how individuals think and feel with regard to the organization, its problems, and ___________

opportunities

For 6-24 months people take decisive actions to stop negative cash flow and keep the _____________

organization alive.

Environmental change demands ________change. Major internal transformation rarely happens unless many people assist.

organizational

Customer focused visions often fail unless customer-unfocused ___________are modified.

organizational structures

People like Manny or Matsushita win nevertheless because they _________ their rivals.

outgrow

_________ can be helpful here. Ask well-informed customers, suppliers, or stockholders what they think.

outsiders

Arrogant managers can_______ their current performance and competitive position, listen poorly, and learn slowly.

over evaluate

First, people don't plan sufficiently for these wins because they are _________. Often the urgency rate hasn't been pushed high enough, or the vision isn't clear.

overwhelmed

Needed change can still stall because of • inwardly focused cultures • _______________ • parochial politics • a low level of trust • lack of teamwork • arrogant attitudes • lack of leadership in middle management • general human fear of the unknown.

paralyzing bureaucracy

Vision creation can be difficult for at least five reasons 4. If teamwork does not exist in the guiding coalition, ______can turn vision creation into an endless negotiation.

parochialism

Ironically, _______ is usually the key ingredient in producing this outcome.

past success

Smart individuals fail to create sufficient urgency at the beginning of a business transformation for many different but interrelated reasons. -overestimate how much they can force big changes on an organization - underestimate how hard it is to drive people out of their own comfort zone -don't recognize how their own actions can inadvertently reinforce the status quo -lack ___________ -become paralyzed by the downside possibilities associated with reducing complacency: people becoming defensive, morale and short-term results slipping

patience

• Provide the training employees need: without the right skills and attitudes

people feel disempowered.

(WWII Pharmac Example) Sixth,whatever __________ people received came almost entirely from these faulty internal systems.

performance feedback

In a moderately paced context, teamwork is necessary to deal with______________, but much of the time the old model will still work.

periodic transformations

People who have been through difficult, painful, and not very successful change efforts often end up drawing both _________and angry conclusions.

pessimistic

The managerial equivalent to vision creation is ________.

planning

(Management) 3. Controlling and problem solving: Monitoring results, identifying deviations from the plan, then ____________ to solve these problems.

planning and organizing

Visions and strategies are not formulated by individuals who have learned only to deal with __________. Sufficient time and energy are never invested in communicating a new sense of direction to enough people.

plans and budgets

A guiding coalition with good managers but ________will not succeed.

poor leaders

People will not make sacrifices, even if they are unhappy with the status quo, unless they think the potential benefits of change are attractive and unless they really believe that a transformation is ________.

possible

Today's business environment -Demands more large-scale change via new strategies, reengineering, __________, mergers, acquisitions, downsizing, new products or market development, etc.

restructuring

One of the many problems in complacent organizations is that _______ and conservationism make learning difficult.

rigidity

Major change is usually impossible unless most employees are willing to help, often to the point of making short-term _________.

sacrifices

Second, A good vision acknowledges that ________will be necessary but makes clear that these sacrifices will yield particular benefits and personal satisfactions that are superior to those available today or tomorrow without attempting to change.

sacrifices

The problem with major financial crises, whether natural or rigged, is that they often drain ________ from the firm and thus leave less maneuvering room.

scarce resources

Compensation or performance-appraisal systems can force people to choose between the new vision and their _________.

self-interests

Because they have the power, __________ are usually the key players in reducing the forces of inertia.

senior executives

The implications are powerful: 1: trying to sell a vision before top management can embody it is tough, and 2: even under the best of circumstances carefully monitoring _________ behavior is a good idea so that you can identify and address inconsistencies between words and deeds.

senior management

The very best lifelong learners and leaders I've known seem to have high standards, ambitious goals, and a real ___________ in their lives.

sense of mission

By far the biggest mistake people make when trying to change organizations is to plunge ahead without establishing a high enough ___________ in fellow managers and employees.

sense of urgency

Establishing a ____________ is crucial to gaining needed cooperation. With complacency high transformations usually go nowhere because few people are even interested in working on the change problem.

sense of urgency

Without _____________ in a firm where complacency is rife, a change effort in a small unit can be doomed from the start.

sufficient autonomy

In a way, the primary purpose of the first six phases of the transformation process is to build up __________ to blast through the dysfunctional granite walls found in so many organizations. When we ignore any of these steps, we put all our efforts at risk.

sufficient momentum

Anchoring change also requires that ___________ be taken to ensure that the next generation of management really does personify the new approach.

sufficient time

If top management consists only of cautious managers, no one will push the urgency rate ___________ and a major transformation will never succeed.

sufficiently high

Vision creation can be difficult for at least five reasons. 2. Although a good vision has a certain elegant simplicity, the data and__________ required to produce it are usually anything but simple

syntheses

Without competent management, __________ are glossed over or implemented poorly.

tactical choices

(Leadership) 1. Establishing Direction: developing a ______ of the future-often the distant future-and _______ for producing the changes needed to achieve that vision.

vision/strategies

People who learn to master more ____________also usually become more comfortable with change generally and thus better able to play more useful roles in organizational transformations.

volatile career paths

If people don't accept a vision, the next two steps in the transformation process-empowering individuals for broad based action and creating short term wins, __________

will fail

A vision that balances interests perfectly by promising to provide merely average benefits to customers, employees, and stockholders _______generate the support that is needed to accomplish major change.

will not

Like Manny, people with high standards and a strong ____________ become measurably stronger and more able leaders at age fifty than they had been at age forty.

willingness to learn

________ means asking questions, challenging and arguing. This is what happens when the vision is first created by the guiding coalition.

wrestling

Vision creation can be difficult for at least five reasons 5. If the urgency rate is not high enough, you will never find enough time to complete the process.

you will never find enough time to complete the process.

___________ often works poorly even in simple situations.

Authoritarian decree

Until changes sink down deeply into the culture, which for an entire company can take ____to _____ten years, new approaches are fragile and subject to regression.

3/10

The first ______ steps in the transformation process help defrost a hardened status quo.

4

MORE PRESSURE ISN'T___________

ALL BAD

Leadership: 1. Establishing Direction 2. _____________ 3. Motivating and inspiring

Aligning people

Leadership: 1. Defines what the future should look like 2. _________ with that vision 3. Inspires them to make it happen despite the obstacles

Aligns people

ERROR #8: Neglecting to _________ Firmly in Corporate Culture

Anchor Changes

Table 8-1, The role of short-term wins • Provide evidence that sacrifices are worth it. • Reward change agents with a pat on the back. • Help fine-tune vision and strategies. • Undermine cynics and self-serving resisters. • Keep bosses on board. • ___________.

Build momentum

The size of an effective coalition seems to be related to the size of the organization._________often starts with just two or three people.

Change

__________ are often poor managers, yet they have a way of convincing us that all we need to do is follow them

Charismatic leaders

Four key characteristics seem to be essential to effective guiding coalitions. They are: 1. Position power 2. Expertise 3. _____________ 4. Leadership

Credibility

Table 3-1 ways to raise the urgency level. 1. Create a crisis by allowing a financial loss 2. ______________________ 3. Set targets so high they can't be reached w/business as usual 4. Stop measuring subunit performance based only on narrow functional goals 5. Send more data about customer satisfaction and financial performance to more employees 6. Insist that people talk regularly to unsatisfied customers, unhappy suppliers, and disgruntled shareholders. 7. Use consultants and other means to force more relevant data and honest discussion into management meetings. 8. Put more honest discussions of the firm's problems in company newspapers and senior management speeches. Stop senior management "happy talk". 9. Bombard people with information on future opportunities and on current inability to pursue those opportunities

Eliminate obvious examples of excess

The eight-state process of creating major change: 1. Establishing a sense of urgency 2. Creating the guiding coalition 3. Developing a vision and strategy 4. Communicating the change vision 5. _____________ 6. Generating short-term wins 7. Consolidating Gains and producing more change 8. Anchoring new approaches in the culture

Empowering broad-based action

Characteristics of an effective vision o Imaginable o Desirable o Feasible o Focused o __________ o Communicable

Flexible

SHORT TERM WINS AREN'T SHORT-TERM _______

GIMMICKS

Creating a strong sense of urgency usually demands bold or even risky actions that we normally associate with __________

Good leadership

Careful thinking is always essential but there is a lot more involved here than 1. Gathering data 2. ___________ 3. Analyzing 4. Choosing

Identifying options

Table 5-2, Creating an effective vision. • First draft • Role of the guiding coalition • _______________ • Role of the head and the heart • Messiness of the process • Time frame • End product

Importance of teamwork

When trust is raised, creating a common goal becomes much easier. _______ also helps.

Leadership

____________ is often associated with one highly visible individual.

Major transformation

Table 10-1, Anchoring change in a culture • Change comes last, not first • Depends on results • Requires a lot of talk • _____________ • Makes decisions on succession crucial

May involve turnover

____________ tries to get around this problem by specifying what employees do in detail and then monitoring compliance.

Micromanagement

Key elements in the effective communication of vision: • Simplicity • Metaphor, analogy, and example • ___________________ • Repetition • Leadership by example • Explanation of seeming inconsistencies • Give-and-take

Multiple forums

CULTURAL CHANGE COMES LAST _________

NOT FIRST

_______________ are common or pervasive ways of acting that are found in a group and that persist because group members tend to behave in ways that teach these practices to new members.

Norms of behavior

Management: 1. Planning and budgeting: 2. ______________ 3. Controlling and problem solving

Organizing and staffing

We don't see these kinds of bold moves more often because people living in _________cultures are generally taught such actions are not sensible.

Over managed and underled

__________ are important concerns and goals shared by most of the people in a group that tend to shape group behavior.

Shared values

Error #6: Failing to Create ____________

Short Term Wins

Skipping even a single step or getting too far ahead without a _________almost always creates problems.

Solid base

Teamwork on a guiding change coalition can be created in many different ways. But regardless of the process used, one omponent is necessary: __________

Trust

• Align information and personnel systems to the vison: _________ also block needed action.

Unaligned systems

Individuals alone, no matter how competent or charismatic, never have all the assets needed to overcome tradition and inertia except in very small organizations. __________ are usually even less effective.

Weak committees

_____________ are even worse. A strong guiding coalition is always needed-one with the right composition, level of trust, and shared objective.

Weak committees

____________ will often stay the course no matter what happens.

Zealous believers

Available evidence shows that most public and private organizations can be significantly improved at an ________, but that we often make terrible mistakes when we try because history has simply not prepared us for transformational challenges.

acceptable cost

The implementation of any kind of major change requires ________ from a large number of people.

action

Words are cheap but _______ is not

action

Without short term wins, too many employees give up or _________ the resistance.

actively join

They grow to become unusually competent in ____________ organizational transformation

advancing

Third, Vision helps ______, thus coordinating the actions of motivated people in a remarkably efficient way-this feature of vision is often enormously important.

align individuals

To be effective a method designed to ___________, reengineer processes, or improve quality must address these barriers and address them well.

alter strategies

One of the theories summarized: The biggest impediment to creating change in a group is culture. Therefore, the first step in a major transformation is to __________. After culture has been shifted, the rest of the change effort becomes more feasible and easier to put into effect. (I once believed this model but now think it's wrong)

alter the norms and values

In a faster-moving world, the weak committee ________.

always fails

Like the two examples of brief effective statements, the most effective transformational visions I've seen in the past few years all seem to share the following characteristics: 1. They are ________ enough to force people out of comfortable routines. 2. They aim in a general way at providing better and better products or services at lower and lower costs, thus appealing greatly to customers and stockholders. 3. They take advantage of fundamental trends, especially globalization and new technology. 4. They make no attempt to exploit anyone and thus have a certain moral power.

ambitious

Without an ______________, a transformation effort can easily dissolve into a list of confusing, incompatible, and time-consuming projects that can go in the wrong direction or nowhere at all.

appropriate vision

Sooner or later, ____________ undermine the initiatives. In the behind the scenes struggle between a single executive or a weak committee and tradition, short term self-interest, and the life, the latter almost always wins.

countervailing forces

Even though transformations start more easily with a natural financial crisis, given a choice, it's clearly smarter not to wait for one to happen. Better to ___________ better still, if possible, to help people see the opportunities or the crisis like nature of the situation without inducing crippling losses.

create the problem yourself

TABLE 4-1 BUILDING A COALITION THAT CAN MAKE CHANGE HAPPEN. Find the right people ______________________ Develop a Common Goal

create trust

___________ short term wins is different from hoping for short term wins.

creating

Because management deals mostly with the status quo, and leadership deals mostly with change, In the next century we will have to become much more skilled at __________.

creating leaders

By putting almost no emphasis on short-term results, he didn't build the _________ he needed to sustain his efforts over the long haul.

credibility

Without _____________, and a lot of it, employees' hearts and minds are never captured.

credible communication

Whenever you let up before the job is done, ___________ can be lost and regression may follow.

critical momentum

Smart people miss the mark here when they are insensitive to __________.

cultural issues

It is a very ___________ that the kind of leadership that is so critical to any change can come only from a single larger-than-life person.

dangerous belief

The combination of valid data from a number of external sources, broad communication of that information inside an organization, and a willingness to ____________ with the feedback will go a long way toward squashing complacency.

deal honestly

Today's business environment clearly demands a new process of __________.

decision making

After a few years of hard work, people can be tempted to _________in a major change effort with the first major performance improvement.

declare victory

Until new behaviors are rooted in social norms and shared values, they are always subject to _____ as soon as the pressures associated with a change effort are removed.

degradation

Cultures can facilitate adaptation if they value performing well for an organization's constituencies, if they really support competent leadership and management, if they encourage teamwork at the top, and if they _______________ of layers, bureaucracy, and interdependencies.

demand a minimum

(WWII Pharmac Example) Eighth: complacency was supported by the very human tendency to_________ that which we do not want to hear

deny

Asking the following kinds of basic questions can help determine the ________ of a vision for change. 1. If the vision is made real, how will it affect customers? 2. How will this vision affect stockholders? 3. How will this vision affect employees?

desirability

(Management) 1. Planning and budgeting: establishing _______ and timetables for achieving needed results, then allocating the resources necessary to make it happen

detailed steps

Only in the last decade or so has much thought gone into ___________-people who can create and communicate visions and strategies.

developing leaders

Vision is usually communicated most effectively when many __________ are used.

different vehicles

It is because such change is so __________to bring about that the transformation process has eight stages instead of two or three, that it often takes so much time, and that it requires so much leadership from so many people.

difficult

Culture is powerful for three primary reasons: 1. Because individuals are selected and indoctrinated so well. 2. Because the culture exerts itself through the count of hundreds or thousands of people. 3. Because all of this happens without much conscious intent and thus is _________ or even discuss.

difficult to challenge

Failure here is usually associated with underestimating the __________ in producing change and thus the important of a strong guiding coalition.

difficulties

Communication seems to work best when it is so _______ and so ______ that it has a sort of elegance.

direct/simple

(Leadership) 2. Aligning people: communicating ______ in words and deeds to all those whose cooperation may be needed so as to influence the creation of teams and coalitions that understand the vision and strategies that accept their validity.

direction

Clarifying the direction of change is important because, more often than not, people disagree on _________, or are confused, or wonder whether significant change is really necessary.

direction

Whenever smart and well-intentioned people avoid confronting obstacles, they _________ employees and undermine change.

disempower

New initiatives fail far too often when employees, even though they embrace a new vision, feel ______ by huge obstacles in their paths.

disempowered

I've seen many cases in which organizational arrangements undermine a vision by ________ people.

disempowering

Listening with an open mind, trying new things, reflecting honestly on past successes and failures, none of this requires a high IQ, and MBA, or a privileged background. Yet remarkable few people behave in these ways today, especially after age 35 and especially when they are already ______________.

doing well in their careers

Both attitude and behavior change typically begin _______ in a transformation process.

early

To some degree management was emphasized because it's ___________ than leadership.

easier to teach

Much more than most of us, lifelong learners humbly and honestly reflect on their experiences to________________.

educate themselves

An __________ of the future involves stretching resources and capabilities.

effective description

A guiding coalition that operates as an __________can process more information more quickly

effective team

With more leadership, they are in a better position to help their employees advance the transformation process so as to significantly improve meaningful results while minimizing the painful ____________.

effects of change

Past success provides to many resources, reduces our sense of urgency, and encourages us to turn inward. For individuals, it creates an __________: for firms, a cultural problem.

ego problem

Two types of individuals should be avoided at all costs when putting together a guiding coalition. 1) have_______that fill up a room 2) snakes who create enough mistrust to kill teamwork

egos

In big organizations some unambiguous wins are required by _________.

eighteen months

Vision creation is almost always a messy, difficult, and sometimes _____________ exercise.

emotionally charged

The best performing firms I know that to operate in highly competitive industries have executives who spend most of their time leading, not managing, and ____________ with the authority to manage their work groups.

employees who are empowered

(Leadership) 3. Motivating and inspiring: _______people to overcome major political bureaucratic, and resource barriers to change by satisfying basic, but often unfulfilled, human needs.

energizing

The key to creating and sustaining the kind of successful twenty-first century organization described in Ch 11 is leadership, not only at the top but through the ____________

entire enterprise

If ___________________ continues to increase, the standard organization of the twentieth century will likely become a dinosaur.

environmental volatility

The typical goal that binds individuals together on guiding coalitions is a commitment to _________, a real desire to make their organizations perform to the very highest levels possible.

excellence

The better you understand the _________, the more easily you can figure out how to push the urgency level up, how to create the guiding coalition, how to shape the vision, and so forth....

existing culture

If mixed signals can't be eliminated, they are usually ________, simply and honestly.

explained

In successful transformation, important inconsistencies in the message employees are getting are almost always addressed _________________.

explicitly

If the rate of _______________ continues to climb, then the urgency rate of the winning twenty-first century organization will have to be medium to high all the time.

external change

(WWII Pharmac Example) Seventh: when enterprising young employees went out of their way to collect _____________, they were often treated like lepers.

external performance feedback

Sources of Complacency (WWII Pharmac Example): 1. Absence of a major visible crisis. 2. Too many visible resources 3. Low overall performance standards 4. Organizational structures that focus employees on narrow functional goals 5. Internal measurement systems that focus on the wrong performance index 6. A lack of sufficient performance feedback from _______ 7. A kill-the-messenger of bad news, low candor, low confrontation, culture 8. Human nature, with its capacity for denial, especially if people are already busy or stressed. 9. Too much happy talk from senior management

external sources

RESULT: Process change often to a dramatic degree, and has the potential to produce _________ change. (new products that customers want, new approaches to labor relations that help make a firm more competitive)

extremely useful

Ch 1: Transforming Organization: Why Firms _______

fail

(WWII Pharmac Example) Ninth: those who were relatively unaffected by complacency sources 1-8 and thus concerned about the firm's future were often lulled back into a_______________ by senior management's "happy talk".

false sense of security

In a____________, teamwork is enormously helpful almost all the time.

fast-moving world

In the ____________, change sticks only when it becomes "the way we do things around here"

final analysis

In small companies or in small units of enterprises, the ____________are often needed in half a year.

first results

Whenever you cannot describe the vision driving a change initiative in _______ minutes or less and get a reaction that signifies both understanding and interest, you are in for trouble.

five

(Great Depression example) What did these new managers do? 1. They talked a great deal about the evidence showing how performance improvements were linked to their new practices. 2. They talked a great deal about where the old culture had come from, how it had served the firm well, but why it was no longer helpful. 3. They offered those over 55 an attractive early retirement program and then worked hard to convince anyone who embraced the new culture not to leave. 4. They made doubly sure that new hires were not being _________ according to the old norms and values. 5. They tried hard not to promote anyone who didn't viscerally appreciate the new practices. 6. They made sure that the three candidates being considered to replace the CEO had none of the Depression-era culture in their hearts.

informally screened

Keeping urgency up will require, first and foremost, performance ___________ that are far superior to what we generally see today.

information systems

Ironically, a combination of idealistic change ______ and self-serving change ______ often creates this problem.

initatiors/resisters

Vision plays a key role in producing useful change by helping to direct, align, and _____________ on the part of large numbers of people.

inspire actions

Urgency and a strong guiding team are necessary but _________________ conditions for a major change.

insufficient

The worst mistake was that _________ was given to short term results. People became so caught up in big dreams that they didn't effectively manage the current reality.

insufficient attention

Furthermore, a process of continual cleaning will certainly be encouraged in a faster-moving environment. Instead of waiting for _______________to reach unmanageable levels, the effective organization in the next century will reexamine linkages on a more regular basis and _____________ those that are no longer relevant.

interdependencies /eliminate

Risk taking brings failure as well as success. Honest reflection, listening, solicitation of opinions, and openness bring bad news and negative feedback as well ___________.

interesting ideas

(WWII Pharmac Example) Fifth, the various_________and control systems were rigged to make it easy for everyone to meet their functional goals.

internal planning

Consequently, all widespread communication in a change effort must be ________.

jargon free

Commitments to produce short-term wins can help ___________and encourage the detailed analytical thinking that can usefully clarify or revise transformational visions.

keep complacency down

A great vision can serve a useful purpose even if it is understood by just a few__________.

key people

The challenge will be to graft some_______ onto already well-formed cultures.

key values

Vision creation can be difficult for at least five reasons. 1. We have raised a number of generations to be talented managers not________or leader/management and vision is not a component of effective management.

leaders

They grow to be _________

leaders.

An examination of success stories reveals two important patterns: • Useful change tends to be associated with a multi-step process that creates power and motivation sufficient to overwhelm all the sources of inertia • This process is never employed effectively unless it is driven by high-quality___________ not just excellent management.

leadership

Only ________ can blast through the many sources of corporate inertia, motivate the actions needed to alter behavior in any significant way, and get change to stick by anchoring it in the very culture of an organization

leadership

Successful transformation is 70 to 90 percent ________and only 10 to 30 percent management.

leadership

_____________ builds systems or transforms old ones.

leadership

The twenty-first century employee will need to know more about both _____________ than did his or her twentieth century counterpart.

leadership and management

What stage 7 looks like in a successful, major change effort • More change, not less • More help • Leadership from senior management: • Project management and_____________ • Reduction of unnecessary interdependencies

leadership from below

They more easily develop wider_____________they have.

leadership potential

Running twenty change projects simultaneously is possible if: a. Senior executives focus mostly on the overall _______ and b. Senior executives __________ for management and more detailed leadership as low as possible in the organization.

leadership tasks/delegate responsibility

Helping individuals to better understand transformation has two components: the first relates to the various steps in the multistage process. The second component is associated with the driving force behind the process: leadership

leadership, and still more leadership.

For most organizations the much bigger challenge is __________.

leading change

With deeply cynical people, you rarely achieve __________.

successful change

Lifelong learners actively solicit opinions and ideas from others. They don't make the assumption that they know it all or that most other people have little to contribute. Just the opposite, they believe that with the right approach they can __________________ under almost any circumstance.

learn from anyone

The problem is that most managers have no history or ______ to guide them through all this.

legacy

Decisions made inside the firm are -based on bigger, more complex, more emotionally charged issues -Made more quickly -Made in a _________ environment -Require more sacrifice from those implementing the decisions

less certain

In a ________ and slower moving world, weak committees can help organizations adapt at an acceptable rate.

less competitive

In particular, the older model is nearly oblivious to the por and the potential of __________.

lifelong learning

Talk to others who know your firm or even to people who seem to be at odds with your organization. And most importantly, muster up the courage to _______________.

listen carefully

When the urgency rate isn't high enough, people don't ___________ to information about a new vision.

listen carefully

LISTEN AND BE _______________In highly successful change efforts, this rarely happens, because communication always becomes a two-way endeavor.

listened to

I suggest you look at organizations that operate in a sea of shifting conditions that thrive in intensely competitive environment. What you will find are unusually flat hierarchies

little bureaucracy, and propensity for risk taking, working forces that largely manage themselves, and senior level people who focus on providing leadership for client projects, technological development, or customer service.

Without a good vision, a clever strategy or a _______can rarely inspire the kind of action needed to produce change.

logical plan

Outstanding leaders are willing to think ______.

long term

To a large degree, leadership deals with the ____________ and management with the immediate future.

long term

I think I can say with some authority that people who are making an effort to embrace the future are a ___________ than those who are clinging to the past.

lot happier

Because some initial movement is possible with ___________ and because the assault on complacency may create anxiety, it can be tempting to skip stage 1 and begin the transformation process with a later step.

low levels of urgency

Within this framework, conflicts are managed at ____________ in the organization by people who have the time and relevant information.

lower levels

___________ makes a system work

management

With sufficient leadership from above and lots of delegation of both ____________ activities, twenty change projects can be run simultaneously. If either element is missing, those twenty projects will create chaos, and stage 7 of a major transformation may collapse.

management and leadership

To people who have had a ____________pounded into them for decades three years can seem like a very, very long time.

managerial mindset

A _________________________ will develop plans, not vision. It will vastly under communicate the need for and direction of change; and it will control rather than empower people

managerial mindset.

Culture is not something you__________ easily.

manipulate

To some degree, all management is ___________-and that includes the production of short-term performance improvements.

manipulation

If the target of change is a plant, sales office, or work unit at the bottom of a larger organization, the key players will be those _______ managers who are in charge of that unit.

middle or lower level

Those who were working so hard to produce meaningful change, planning for the short-term results provided _______________ they could look forward to while achieving the actual wins gave them a chance to pat themselves on the back.

milestones

The net result: In a lot of reengineering and restrategizing efforts, people simply skip this step or give it ____________________. (creating guiding coalition)

minimal attention

Many people need to help with the leadership task, not by attempting to imitate the likes of Winston Churchill or Martin Luther King Jr, but by _________ with the leadership agenda in the spheres of activity.

modestly assisting

In competitive markets, ________ is required. Everyone needs to be served well.

more

Generally, shared values, which are less apparent but more deeply ingrained in the culture, are __________to change than norms of behavior.

more difficult

As a general rule, the more cynics and resisters, the ___________ are short term wins.

more important

I think the idea of helping ___________to become more powerful is important.

more people

Communication comes in both words and deeds. The latter is generally the __________ form.

most powerful

First, Vision facilitates major changes by _______ that is not necessarily in people's short-term self-interests

motivating action

Eight Common Errors -Neglecting to anchor changes firmly in the corporate culture. -Allowing too much complacency. -Failing to create a sufficiently powerful guiding coalition. -Underestimating the __________. -Under communicating the vision by a factor of 10 (or 100 or 1000) -Permitting obstacles to block the new vision -Declaring victory too soon -Neglecting to anchor changes firmly in the corporate culture.

power of vision

Error #2: Failing to Create a Sufficiently _________ Guiding Coalition.

powerful

A new decision-making process -is required because no one individual has the information needed to make all major decisions or the time and credibility needed to convince lots of people to implement the decisions. -must be guided by a __________ that can act as a team.

powerful coalition

Because major change is so difficult to accomplish, a __________ is required to sustain the process.

powerful force

But the actual changing of _________ occurs mostly in the very last stage of the process, or at the very last stage in each cycle of the process.

powerful norms and values

Regardless of level or location, culture is important because it can ____________ human behavior, because it can be difficult to change, and because its near invisibility makes it hard to address directly.

powerfully influence

Phases five to seven then introduce many new________.

practices

Structure, systems, ____________, and ________ have often been more of a drag on change than a facilitator.

practices/culture

MANAGEMENT RESULT: This produces a degree of _______ and order and has the potential to consistently produce the short-term results expected by various stake-holders (customers always on time, on budget, stockholders)

predictability

Targeting short-term wins during a transformation effort does increase the _________on people.

pressures

The syndrome: success requires some degree of market dominance which in turn produces much growth. After a while, keeping the growing organization under control becomes the ______________-attention turns inward and managerial competencies aren't nurtured. With a strong emphasis on management and not leadership, bureaucracy and an inward focus take over.

primary challenge

Normally people skip steps because they are feeling pressures to ______________

produce

After getting well into the urgency phase #1 all change efforts end up operating in multiple stages at once, but action not in the___________ rarely works well.

proper order

The _______of unnecessary interconnections can ultimately make a transformation much easier.

purging

Visible crises can be enormously helpful in catching people's attention and _________ urgency levels.

pushing up

As a result, more and more organizations will be pushed to reduce costs, improve the ________ of products and services, locate new opportunities for grown, and increase productivity.

quality

An increased sense of urgency, in turn, will help organizations change more easily and better deal with a ________________.

rapidly changing environment

Feasibility also means that a vision is grounded in a clear and _________understanding of the organization, its market environment, and competitive trends.

rational

Short term pressures and the human capacity to _______ unwise or negative actions can combine to lead reasonable people to act in unreasonable ways.

rationalize

Corporate visions that aren't deeply rooted in the ______ of product or service markets are increasingly recipes for disaster.

reality

Without a sufficiently strong foundation, the __________ collapses at some point, forcing you to go back and rebuild

redirection

When the new practices made in a transformation effort are not compatible with the relevant cultures, they will always be subject to ___________

regression

A good rule of thumb in a major change effort is: never underestimate the magnitude of the forces that __________ and that help maintain the status quo

reinforce complacency

Increasing urgency demands that you ______sources of complacency or ___________ their impact.

remove/minimize

If promotion criteria are not __________ another common error, transformation rarely lasts

reshaped

Without a sense of urgency, people won't give that extra effort that is often essential. They won't make needed sacrifices. Instead they cling to the status quo and ___________ from above.

resist initiatives

(Management) 2. Organizing and staffing: Establishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating ___________ for carrying out the plan, providing policies and procedures to help guide people, and creating methods for systems to monitor implementation.

responsibility and authority

Vision creation can be difficult for at least five reasons. 3. Both the head and heart are required in this exercise/all effective visions seem to be grounded in __________ as well as analytically sound thinking/creating a vision is not just a strategy exercise in assessing environmental opportunities and organizational capabilities.

sensible values

In successful transformations, none is more important than a ____________.

sensible vision

Successful change of any magnitude goes through all eight stages, usually in the proper _________

sequence

Trust helps enormously in creating a _________. One of the main reasons people are not committed to overall excellence is that they don't really trust other departments, divisions, or even fellow executives.

shared objective

• Communicate a sensible vision to employees: if employees have a ________ of purpose, it will be easier to initiate actions to achieve that purpose.

shared sense

Culture refers to norms of behavior and ________among a group of people.

shared values

Lifelong learners overcome a natural human tendency to shy away from or abandon habits that produce ________.

short term pain

Parochial and ________ strategies rarely lead to long-term success anymore, for either companies or their employees.

short-term

I've found that _____________can be a useful way to keep up the urgency rate.

short-term pressure

The twentieth-century model of lengthy periods of calm or complacency being punctuated by __________ of hectic activity will not work.

shorter periods

People under pressure to ________ will often try to skip phases-sometimes quite a few-in a major change effort.

show results

People often try to transform organizations by undertaking only steps 5,6, and 7, especially if it appears that a _________-to reorganize, make an acquisition, or lay people off will produce most of the needed change.

single decision

Executives have learned in the past, but the challenges have been growing as fast, or faster, than their _________.

skills

Family oriented social activity has serious drawbacks: 1. It is a ____________. 2. It works best in families with only one working spouse.

slow process

Forty years ago, firms that tried to build teams used mostly informal _______________.

social activity

Story about naive 21-year-old hired: The net result is that you and all your recently hired peers are easy candidates for what is called "___________"- the inculcation of the company's norms and values.

socialization

In many transformation efforts, the core of the old culture is not incompatible with the new vision, although some ________ will be. In that case, the challenge is to graft the new practices onto the old roots while killing off the inconsistent pieces.

specific norms

The central issue in both of these scenarios is that neither firm is taking into account the _________ of market and technological change.

speed

The material in this book remains relevant now for one simple reason: the ____________ continues to increase.

speed of change

_________ is the driving force. Leading change competently is the only answer.

speed of change

The problem for us today is that _________ is no longer the norm.

stability

(WWII Pharmac Example) Third; the __________ against which these managers measured themselves were far from high.

standards

Most firms find it is difficult to make much progress in phases 2-4 of a major change effort unless most managers honestly believe that the _______ is unacceptable. Sustaining a transformation effort in states 7 and 8 demands an even greater commitment.

status quo

A vision is only one element in a larger system that also includes ________, plans, and budgets.

strategies

Under these circumstances (lack of sufficient autonomy), plunging ahead with a transformation effort can be a terrible mistake. When people realize this fact, they often think they have only one alternative: sit back and wait for someone at the top to start providing ________ so they do nothing.

strong leadership

Sooner or later the lack of a ________ to guide the effort proves fatal.

strong team

Whenever _____________ are not removed in a timely way, the risk is that employees will become so frustrate that they will sour on the entire transformational effort

structural barriers

(WWII Pharmac Example) Second, that meeting was taking place in a room that screamed "________"

success

Risk taking inevitably produces both bigger ________and bigger _______.

successes /failures

The only rational solution is to learn more about what creates ____________ and to pass that knowledge on to increasingly larger groups of people.

successful change

Many of the same kinds of organizational attributes required to develop leadership are also needed to empower employees. Those facilitating factors would include flatter hierarchies, less bureaucracy, and a greater willingness to ____________.

take risks

Globalization is being driven by a broad and powerful set of forces associated with: • __________l change • international economic integration • domestic market maturation within more developed countries • collapse of worldwide communism.

technological

With clarity of direction, inappropriate projects can be identified and _________, even if they have political support

terminated

Short term performance improvements help transformations in at least six ways. 1. they give the effort needed reinforcement. 2. For those driving he change, these little wins offer an opportunity to relax for a few minutes and celebrate. 3. The process of producing sort-term wins can help a guiding coalition ________ against concrete conditions. 4. Quick performance improvements undermine the efforts of cynics and major league resisters.

test its vision

Highly controlling organizations often destroy leadership by not allowing people to blossom, _________, and grow.

test themselves

While most of us become set in our ways

they keep experimenting.

Inwardly focused employees can have difficulty seeing the very forces that present ___________.

threats and opportunities

Major change takes ________, sometimes lots of time.

time

Real Transformation takes _________

time

The point is: Some___________ could be required at this state in a transformation but it needs to be the right kind of experience.

training

People have successfully imitated restructuring during record profit times by relentlessly bombarding employees with information about problems, potential problems, or potential opportunities.

true

Mutual understanding is enlarged. Intellectual and social activities are designed to encourage the growth of _______.

trust

When _________is present you will usually be able to create teamwork. When it is missing you won't.

trust

When an organization is in a crisis the first change project within a larger change process is often the save the ship, or ___________.

turnaround effort

I truly believe it is impossible to overstate the severity of the challenges caused by an inadequate or _______ sense of urgency.

unaligned

• Make structures compatible with the vision: _________ structures block needed action.

unaligned

Narrow job categories can _______ to increase productivity or improve customer service.

undermine efforts

All organizations have some __________ that are the product of history instead of the current reality.

unnecessary interdependencies

One major reason why the Franks of the world aren't confronted is that others are afraid that these people can't change, yet are ________ to demote or fire them.

unwilling

A high ________ helps enormously in completing all the stages of a transformation process.

urgency rate

People often complain about being forced to produce short-term wins, but under the right circumstances that kind of pressure can be a ________in a change process.

useful element

ERROR #7: Declaring ___________ Too Soon

victory

A higher rate of urgency does not imply ever present panic, anxiety, or fear. It means a state in which complacency is ____________, in which people are always looking for both problems and opportunities, and in which the norm is "do it now".

virtually absent

Too much past success, a lack of ________________, low performance standards, insufficient feed back from external constituencies, and more all add up to: "Yes, we have our problems but they're not that terrible and I'm doing my job just fine"

visible crises

(WWII Pharmac Example)First, no __________

visible crisis

Error #3 Underestimating the Power of ___________.

vision

Without a ________ to guide decision making, each and every choice employees face can dissolve into an interminable debate.

vision