Ch.

8 - Be a positive change agent

Mrinal Varshney 11BM60016 Saiyam Chhabra 11BM60051 Rohit Sharma 11BM60121 Sorabh Rathore 11BM60127

 In order to survive in a competitive environment, organizations must improve continually. This means they have to change continually. Organizations that fail to changewhether from complacency, ignorance, or conceit- are doomed to mediocrity, or worse yet, failure. The Author

 Explain the importance of leadership in achieving positive change Summarize the representative views of managers and employees regarding change Explain the relationship of restructuring and change Describe the process for leading change Summarize the change-related lessons of selected leaders

 Organizational change call for effective leadership It takes an effective leader to overcome organizational inertia (inherent) Analogy with laws of Physics Static culture (body at rest)- Remain static until sufficient leadership is applied Dynamic organization (body in motion)- Remain dynamic unless sufficient force is applied to stop it In a nutshell An organizations culture, once established, will tend to perpetuate itself until sufficient leadership is applied to change it

 In a competitive and rapidly changing market place, technology companies are constantly involved in the development of strategies for keeping up, staying ahead, or setting new directions. David Shanks recommendations to Managers to play a positive role in change: Have a clear and corresponding goals Exhibit a strong sense of responsibility Be an effective communicator Have a high energy level Have the will to make change happen These strategies help executives guide their companies through periods of corporate stress and change

 The following statement by management consultant Donna Deepose carries a relevant message for technical professionals who would lead: In an age of rapidly accelerating technology, restructuring, repositioning, downsizing, and corporate takeovers, change may be the only constant. Is there anything you can do about it? Of course there is. You can make change happen, let it happen to you, or you can stand by while it goes on around you.

Deeprose divides people into three categories based on how they handle change:

Driver- lead their organizations in new directions as a response to change Rider- just go along, reacting to change as it happens rather than getting out in front of it

Spoiler- who actively resist change

Deeprose gives examples of how a driver would behave in a variety of situations: In viewing the change taking place in an organization, drivers stay mentally prepared to take advantage of the change When facing change about which they have misgivings, driver step back and examine their own motivations When a higher manger has an idea that has been tried before and failed, drivers let the boss know what difficulties were experienced earlier and offer suggestions for avoiding the problems this time When a company announces major changes in direction, drivers find out all they can about the new plan, communicate what they learn with employees, and solicit input to determine how to make a contribution to the achievement of the companys new goals

 When a change will affect other departments, drivers go to these other departments and explain the change in their terms, solicit their input, and involve them in the implementation process
When demand for their units work declines, drivers solicit input from users and employees as to what modifications and new products or services might be needed and include the input in a plan for updating and changing direction When an employee suggests a good idea for change, drivers support the change by justifying it to higher management and using their influence to obtain resources for it while countering opposition to it When their unit is assigned a new, unfamiliar task, drivers delegate the new responsibilities to their employees and make sure they get the support and training needed to succeed

EMPLOYEES VIEW : Something done to us.

MANAGERS VIEW: Something done in spite of employees who just wont cooperate.

Considers managers as bad guys

I am struggling with this new business environment of ours. I am doing the best I can, but I am scared. A little more sensitivity and patience on your part will go a long way towards helping me cope. Inference: Employees do not dislike change but the way it is done. Key to win involvement; give them a voice on how the change is implemented. Change should be something done with them rather than to them.

Considers employees as inhibitors of change.

May be you see me as the instigator of change. To a degree you are right. Sponsoring and supporting change is one of my responsibilities required to keep organization successful and protect our jobs. Solution: Promote a we are in this together attitude. Make sure employees understand the change is driven by market forces, not management. Involve everyone who will be affected by change in planning and implementing.

Business, more than any other occupation, is a continual dealing with the future; it is a continual calculation, an instinctive exercise in foresight. ~ Louis E. Boone Restructuring: General Perception: Synonymous to terminations, closing and workforce cuts. layoffs,

Activities involving corporate restructuring: Acquisitions, mergers, buyouts, downsizing etc. Said changes cannot be controlled, they are market driven, however, the way to restructure can be and the way they respond to this change, and it is this effort which will determine the Effectiveness of the restructuring effort.

Be Smart and Empathetic: Following strategies can help maintain employee loyalty and calm employee fears: Take time to show employees that management cares and is concerned about them on personal level. Let employees vent. Effectively Communicate with employees about why the changes are necessary. Provide formal outplacement assistance to all the employees who will loose their jobs. Be fair, equitable and honest with employees. Use a definitive criteria to lay-off. Provide support to those individuals who will be the primary change agents. Have a clear vision: Leaders should have a clear vision and be able to articulate that vision. It will give organization a beacon to guide it through the emotional fog that can accompany change.

Establish Incentives that Promote the Change: Can be monitory or non-monitory, but they should motivate employees on a personal level. Form an ad hoc task force of employees and discuss, list out as many incentives as group can identify. Those employees after discussing with their peers can rank the incentives, and same can be used by management to promote the change.

Continue to Train: Generally, in situations of restructuring, organizations put trainings on hold, however, it should be the last thing to be done. Trainings should be increased during times of intense change to make sure that employees have the skills required during and after the restructuring.

John Kotters the Six Step Model for effectively leading change.
1. Educate employees about the need for continual change Employees at all levels in an organization need to understand the reason for change. Employees who object to change in reality most of the times object to how it is handled, not the fact that its happening. Kotter identified the reasons why employee may not understand the need of change. Absence of major crisis- Difficult to Manage if its caused by external forces Low overall performance standards- Standards should be based on what it takes to succeed in the global marketplace. No View of the Big picture-Organizations should have strategic plan that puts Big Picture in writing, and every employee should know about it. Internal evaluation measures that focus on the wrong benchmarks- It should mirror overall performance in comparison with global competition. Insufficient external feedback- Systematic collection, analyses and use of external feedback is needed. A Kill the Messenger mentality among managers-Employees are messengers for change, Managers should encourage and use feedback to anticipate change. Overfocus among employees on the day-to-day stresses of the job- Instead management must communicate market trends and other Big picture issues. Too much Happy Talk from executives- It is like deceiving employees and create panic and should be avoided.

2. Establish and charter the steering committee. Although a visible and visionary individual can certainly be a catalyst for organizational change, in reality a person alone does not change it. Organizations that do the best job handling change have Guiding Coalition, and every member should have following characteristics. 1. Authority- Necessary to make decisions and commit resources 2. Expertise- Pertinent to change in questions so that informed decisions can be made. 3. Credibility- Members should be well respected all stakeholders so they will listened to and taken seriously. 4. Leadership- This Quality is necessary to drive the effort. It includes al above qualities plus influence, vision, commitment, persevernace and persuasivness.

3. Establish Antenna Mechanisms Organizations need to have mechanisms for sensing trends that will generate future change. It can take many form, and the more it is , the better it is. Reading Professional journals, attending conferences, studying global markets, and even reading the newspaper can help identify trends that might affect an organization. So can attentive marketing representatives.
4. Develop a change vision Vision is a sensitive and appealing picture of the future- Kotter Having a cogent vision of positive change can help employees accept change more readily. Five characteristics of an effective vision for change are. 1. Imaginable-Conveys to others the picture of how things will alter the change. 2. Desirable- One which points to better future for all stakeholders will be well received by everyone, even who counter change. 3. Feasible- Realistic and attainable. 4. Flexible- General enough to allow for initiative in responding to ever changing conditions. 5. Communicable- Which can be explained to outsider who has no knowledge of the business.

Communicate the Vision to all Stakeholders People will buy into the vision if they know about it. Hence it should be communicated effectively. A Good Communication Package has the following characteristics. 1. Simplicity- Dont beat around the bush, lead with rationalizations. The simpler the message, the better it is. 2. Repetitiveness- Critical when communicating a new message. It forces employees to take notice. 3. Multiple formats- Ex. Small group meetings, large group meetings, newsletter articles, fliers, bulletin boards, Videotaped message, emails etc. A combination of visual, reading and listening will be most effective. 4. Feedback Mechanism- Direct Feedback : face to face meetings(Best form). Other methods like telephone, fax, email and written feedbacks are also valuable.

Incorporate the positive change process Once the organization has gone through the change, both the change itself and the process of change should be incorporated into organization's culture. If this does not occur organization will begin to backslide and retrench. Some strategies to anchor a change in culture. 1. Showcase the results- Projected benefits should be showcased as soon as it is realized. The sooner , the better. 2. Communicate constantly- Do not assume that stakeholders will automatically see, understand and appreciate the results gained by change. We need to talk about results and corresponding benefits constantly. 3. Remove resistant employees- If key personnel are still fighting the change that has been made and producing the desired results, give them get with it or get out option. This may seem harsh but employees in all organization are paid to move organization forward and not to hold it back.

Colin Powell

Achievements
Rose from humble background to top military command and high governmental office Chairman of coalition of 48 nations during Persian Gulf War(1990-91) Successfully led one of the most diplomatically and logistically difficult military operation to remove Iraqi forces from Kuwait. (Deployed half a million troops & supervise logistics in just 100 hours) In 2001, Nations first African American secretary of states

Important lessons
Effective leader are willing to innovate and improvise Effective leaders accept personal responsibility for their decisions but recognize the necessity of coordinating the efforts of many different stakeholders

Robert Noyce, Andrew Grove and Gordon Moore

Achievements
Three of the most renowned names in computer revolution Established Intel corporation and led it to become worlds largest microprocessor manufacturer Andrew Grove, First CEO; known for his entrepreneurial skills Exemplified creative problem solving by inventing smaller chips called microprocessors

Important lesson
To lead their organizations into new frontiers, leaders must be willing to innovate and think creatively when making decisions

Margaret Thatcher

Achievements
Britains first woman prime minister Her era Thatcher Revolution lasted longer than any other prime minister in the 20th century Reversed the downward spiraling economy and change the course of social welfare in the United Kingdom Reduced welfare programs, privatized government agencies and functions and took strong stand against labor unions Looked at a bigger picture, had clear goals and made decisions although controversial but in long term interest of nation Successfully led the country through the Falkland Island war in 1982

Important lessons

Leaders must be willing to make difficult decisions that may not be popular, at least not in the short run Leaders must be willing to be responsible and accountable for the results of their decisions