TEST 1

Garvin's 6 dysfunctional routines that stop change.

1. A Culture of No 2. The dog and pony show must go on 3. The grass is always greener 4. After the meeting ends, debate begins. 5. Read, aim, aim... 6. This too shall pass

Pitfalls of Establishing a sense of urgency

• underestimating the difficulty of driving people from comfort zones, ♣ Becoming paralyzed by risks

Kotter's 8 steps to transforming your organization

1. Establish a sense of urgency. 2. Forming a powerful guiding coalition 3. Creating a vision 4. Communicating the Vision 5. Empowering Others to act on the vision 6. Planning for and creating short term wins 7. Consolidating improvements and producing still more change. 8. Institutionalizing new approaches

Percentage of all organizational interventions are unsuccessful

70%

Kotter, event vs process

Change is a process because it advances through states that build on each other.

The 4 hurdles

Cognitive Hurdle Resources Hurdle Demotivated Employees Political Hurdle

Leaders vs. Managers

Leaders inspire, managers instruct.

Stage where most change failure occurs

Most companies fail in step 1

What Kotter says about shortcuts

Shortcuts NEVER work

How an organization is like an ecosystem with "food" and "predators" and how that relates to change.

o Deer population control o There needs to be enough food for everyone to see how it's going to work, but there can't be too many predators to kill it off.

Changes made by Oliveira at Clothes and Accessories

o Focused on internal issues more than external ♣ Should have done something to get more foot traffic to the store. o Fix the showcase mannequins ♣ Employees wouldn't do it unless he confronted it. o Urgency code ♣ Better customer service o Weekly meetings o Too big changes, too soon ♣ People resented the changes and went back to their old ways, it worked in the past, why can't it work now? He was young with not much experience.

Tipping point leadership

o In any organization, once the beliefs and energies of a critical mass of people are engaged, conversion to a new idea will spread like an epidemic, bringing about fundamental change very quickly. o Quickly get enough people on board, and the change will come about quickly and more easily (fill it up to tip over and spill)

Major changes by Mulally at Ford

o Less models (more globalization of current models) it was successful in saving money, confusion, suppliers, and unifying the organization. o Less platforms (chassis) saving money and confusion. o One Team, One Plan, One Goal. Simplification and focus. Unification. o Mortgaging assets. Raised millions of dollars and saved the company from the recession. o Sold off foreign brands and reduced stake in Mazda, saved and gained money. o Transparency, praised bravery when bringing bad news.

According to Garvin, why is change so hard?

o Most people are reluctant to alter their habits. What worked in the past is good enough. When a company is had a succession of leaders, resistance to change is even stronger.

Major Changes Ron Johnson JC Penney

o New logo, new pricing strategy, new store design, new spokesperson ♣ Went back to old logo after he was fired ♣ New pricing didn't work, lost lots of customers ♣ New store design worked ♣ Pricing also didn't work because employees lost commission, which brings down customer service.

Changes made by Levy at BIDMC

o Praised good habits ♣ Moral went up, work ethic improved o Shut down naysayers publicly ♣ Praised by the people under him because they too were offended. o Cut jobs but kept nursing staff ♣ Got rid of unnecessary positions, keeping nurses meant quality of care was still up. o Open conversations and open intervention and coaching ♣ Staff felt open to go to him and email him.

According to Garvin, what is a persuasion campaign? How is it like a political campaign?

o Taking a series of deliberate but subtle steps to recast employees' prevailing views and create a new context for action. o Its like politics because you differentiate from the past. You have to clearly lay out why your plan is different from your predecessors'. Must communicate that the organization is on it's deathbed and needs to change to survive.

Consequences of unsuccessful interventions

o Undermine credibility of leaders o High financial cost o Damage willingness to try new ideas o High opportunity cost

Resources Hurdle

• Focus what resources you have where it is needed most. Biggest payoffs • Look at the data and make decisions from there, if you don't have the data go get it. • Trade for resources.

Cognitive Hurdle

• Make unarguable calls for change • Make key managers experience problems that lower people and customers face. (made everyone in the organization ride the subway, no cars, to see the safety flaws) • Might need new ways to communicate • It doesn't work to just point to numbers and demand change

Motivational Hurdle

• Most organizations are too big to motivate everybody, it takes too much time • Focus on key influencers, ones that can affect connections, transactions, etc. make them happy and motivate them and it will pass down to the people beneath them. • Frame the challenge so people can believe the results are attainable.

Garvin's 4 part communication strategy

• Phase 1 - convince employees that radical change is imperative; demonstrate why the new direction is the right one • Phase 2 - position and frame preliminary plan; gather feedback; announce final plan. • Phase 3 - manage employee mood through constant communication • Phase 4 - reinforce behavioral guidelines to avoid backsliding. • Development plan - implement plan.

Political Hurdle

• Powerful vested interests will resist change and have the power to shut it down • The more likely the change will be the more vocal they will become. • Identify and silence people against the change, remove them if need be. • Put a respected top tier manager as an internal insider so they know what is going on and who is saying things. • Isolate external opponents, make connections with supporters.

A culture of no

♣ A culture that overvalues criticism where anybody can say no but nobody can say yes. Likely in segment or subunit organizations where leaders have great power and are unwillingly to comply with directives from above. ♣ "skeet shoot" example.

Institutionalizing new approaches

♣ Articulating the connections between the new behaviors and corporate success.

Forming a powerful guiding coalition

♣ Assembling a group with enough power to lead the change effort ♣ Encouraging the croup to work together as a team.

Pitfalls of communicating the vision

♣ Behaving in ways antithetical to the vision

Creating a vision

♣ Creating a vision to help direct the change effort ♣ Developing strategies for achieving that vision

Pitfalls of Consolidating improvements and producing still more change

♣ Declaring victory too soon ♣ Allowing resistors to convince "troops" that the war has been won

Establish a sense of urgency

♣ Examining market and competitive realities ♣ Identifying and discussing crises, potential crises, or major opportunities.

Pitfalls of empowering others to act on the vision

♣ Failing to remove powerful individuals who resist the change efforts

Empowering others to act on the vision

♣ Getting rid of obstacles to change ♣ Changing systems or structures that seriously undermine the vision ♣ Encouraging risk taking and nontraditional ideas, activities, and actions

After the meeting ends, debate begins

♣ Hard to spot because most of is takes place undercover. Cooperative meetings are followed by resistance. Resisters can be covert; often they end-run forums entirely and make their concerns directly to the top. The results are politics triumph over substance, meetings become meaningless. Meddling becomes the norm.

Ready, aim, aim....

♣ Inability to settle on a definitive course of action. Constant stream of proposals and reports, managers tinker with them and do research into them, fine tune their choices without ever making a decision. "analysis paralysis". Common in perfectionist cultures.

Pitfalls of Planning for and creating short term wins

♣ Leaving short term successes up to chance ♣ Failing to score successes early enough (12 to 24 months into the change effort)

Pitfalls of forming a powerful guiding coalition

♣ No prior work experience at the top ♣ Relegating team leadership to an HR, quality, or strategic planning executive rather than a senior line manager

Pitfalls of Institutionalizing new approaches

♣ Not creating new social norms and shared values consistent with changes ♣ Promoting people into leadership positions who don't personify the new approach

Planning for and creating short term wins

♣ Planning for visible performance improvements ♣ Creating those improvements ♣ Recognizing and rewarding employees involved in the improvements

Pitfalls of creating a vision

♣ Presenting a vision that's too complicated or vague to be communicated in five minutes.

This too shall pass

♣ Prior leaders repeatedly proclaimed a state of crisis but then made few substantive changes, employees become jaded. Heads - down bunker mentality and reluctance to respond to directives. Tend to ignore new initiatives, work around them, or wait things out.

The Dog and pony show must go on

♣ So much weight on process that ends and means, form and content are confused. How you present something becomes more important than what you are proposing. Death my PowerPoint, little real headway is made in the company.

The grass is always greener

♣ To avoid challenges in their core business, managers look to new products, services, and new lines of business. Sometimes this diversification is healthy, but you're really just keeping the problems away at arm's length.

Communicating the vision

♣ Using every vehicle possible to communicate the new vision and strategies ♣ Teaching new behaviors by the example of the guiding coalition

Consolidating improvements and producing still more change

♣ Using increased credibility to change systems, structures, and policies that don't fit the vision ♣ Hiring, promoting, and developing employees who can implement the vision ♣ Reinvigorating the process with new projects, themes, and change agents.