MGTO 650N Managing Organizational Change

Bob Galvin and Motorola

Group Members: Angela Lee Dragon Pak Gary Wong Peter Petrov Suki Chan

MGTO 650N Managing Organizational Change

Our team analysis approach

Galvin's missions but no Vision Evaluation of Galvin's delivery Internal response to the speech Can we do it better? When should we Do it? Good Time? Bad Time?

MGTO 650N Managing Organizational Change

Galvin's missions but no VISION

Mission Simpler Organization structure with direct ties to the customers
Bring management to market/consumer Smaller, sharp focused business units Decrease layers of management

Where does this lead to ?

Nowhere

MGTO 650N Managing Organizational Change

No Vision but more effective?

Galvin is still struggling with the vision of future Motorola More effective running of business change Motorola

From Christensen Claytons central analysis, more effective running business cycles without clear central strategy always lead to faster and disastrous downfall of large corporate

MGTO 650N Managing Organizational Change

Hewlett-Packard lesson
Carly Fiorina mission failed and fired

Confused central strategy HP = Printer ? PC maker?

Carly Fiorina thought

or

HP= Printer + PC 5 years later, mission failed and kicked out HP share drops $80 $
20

MGTO 650N Managing Organizational Change

Evaluation of Galvins Style

(Initiating Change)

Authoritarian - Thought he could turn the corporation up-sidedown - Thought everyone would follow with no questions

Did not structure the change Did not communicate it Got no support

MGTO 650N Managing Organizational Change

Evaluation of Galvins Style

(Visionary Leadership)
Elements of Visionary Leadership
Visions of the future
- Technology Roadmap - Promoting investment in R&D

Great inspiration
- Initiating the issue of structural reorganization Initiate action
- Fighting unfair trade practices

MGTO 650N Managing Organizational Change

Evaluation of Galvins Style

(Visionary Leadership) cont
Set achievable goals
- Participative Management Program

Enlist the participation of others

- 3 Bears - Sharing COO positions

MGTO 650N Managing Organizational Change

Impacts After The Speech

May have few supporters Most left the hall with a fear of unknown Feeling being treated unfairly Surprise and confusion more than eagerness

MGTO 650N Managing Organizational Change

What should be done next?

Create a Burning Platform Clearly state the vision (a road map) Well-communicate the burning platform and the vision (Campaign, workshop..etc.) Put together a critical mass of Change Agent Top-down approach. Leaders Walk the Talk Identification and managment of resistance (structural, political, cultural and technical) Sustain gains on successful changes.

MGTO 650N Managing Organizational Change

Burning Platform
Significant culture change begins with the creation of a burning platform, a compelling vision of why change is needed An enterprise can not move forward unless the need for change is clearly established

MGTO 650N Managing Organizational Change

Threat Opportunity Matrix

Threats
(if we dont change)

Opportunity
(if we change)

This matrix helps determine the driving factors behind the changes which can then be used in communicating the need.

Short Term

Short Term Threats: What are the threats if the project does not happen / if we do not do the project?

Short Term Opportunities: What are the short term opportunities with the proposed project?

Long Term

Long Term Threats: What are the threats if the project does not happen / if we do not do the project?

Long Term Opportunities: What are the long term opportunities with the proposed project?

Focusing on the Long Term ensures involvement beyond what can be gained from the Short Term sense of urgency!

MGTO 650N Managing Organizational Change

What should be done next?

Create a Burning Platform Clearly state the vision (a road map) Well-communicate the burning platform and the vision (Campaign, workshop..etc.) Put together a critical mass of Change Agent Top-down approach. Leaders Walk the Talk Identification and managment of resistance (structural, political, cultural and technical) Sustain gains on successful changes..

MGTO 650N Managing Organizational Change

A Basic Change Model

As Is
To Be

Change can cause a mixture of thoughts and emotions

Excitement Yearning for the past Unfocused energy Productivity dipremember, the dip is going to happen, however the objective is to lessen the dip, not remove all the pain

MGTO 650N Managing Organizational Change

What should be done next?

Create a Burning Platform Clearly state the vision (a road map) Well-communicate the burning platform and the vision (Campaign, workshop..etc.) Top-down approach. Leaders Walk the Talk and put together a critical mass of Change Agents Identifify Stakeholders for the change Identification and managment of resistance (structural, political, cultural and technical) Sustain gains on successful changes.

MGTO 650N Managing Organizational Change

Communication is the Key to Overcoming Resistance

Keep stakeholders aware and involved in your project
Gate Reviews Update Meetings

Gallery Walks

MGTO 650N Managing Organizational Change

A war could have been avoided, had Saddam Hussain known better about Arms Inspection....

MGTO 650N Managing Organizational Change

MGTO 650N Managing Organizational Change

What should be done next?

Create a Burning Platform Clearly state the vision (a road map) Well-communicate the burning platform and the vision (Campaign, workshop..etc.) Top-down approach. Leaders Walk the Talk and put together a critical mass of Change Agents Identifify and leverage on Stakeholders to maximize change efforts Identification and managment of resistance (structural, political, cultural and technical) Sustain gains on successful changes

MGTO 650N Managing Organizational Change

Leaders Committment
Highly visible Involve senior management Serve as role models - Walk the Talk Be consistent with message with the organizations visions, goals and expectations Listen and address concerns Allocate resources and remove barriers

MGTO 650N Managing Organizational Change

What should be done next?

Create a Burning Platform Clearly state the vision (a road map) Well-communicate the burning platform and the vision (Campaign, workshop..etc.) Top-down approach. Leaders Walk the Talk and put together a critical mass of Change Agents Identifify and leverage on Stakeholders to maximize change efforts Identification and managment of resistance (structural, political, cultural and technical) Sustain gains on successful changes.

MGTO 650N Managing Organizational Change

What is Stakeholder Management?

Identify Stakeholders

Understand Stakeholders

Influence Stakeholders

MGTO 650N Managing Organizational Change

Stakeholder Management
Leadership Team:
First link in the action leadership
chain

Middle Management:
Second link in the action leadership
chain

Frontline Employees:
Third link in the action leadership
chain

Successful Change Needs an Unbroken Leadership Chain, Top to Bottom

MGTO 650N Managing Organizational Change

What should be done next?

Create a Burning Platform Clearly state the vision (a road map) Well-communicate the burning platform and the vision (Campaign, workshop..etc.) Top-down approach. Leaders Walk the Talk and put together a critical mass of Change Agents Identifify and leverage on Stakeholders to maximize change efforts Identification and managment of resistance (structural, political, cultural and technical) Sustain gains on successful changes.

MGTO 650N Managing Organizational Change

Major Types of Resistance

Technical Resistance: believe changes reveal inadequacy or stupidity on business and process knowledge Political Resistance: see change (or any restructuring as a re-shuffle (and possibly loss of power and control ) Structural Resistance: Organization structure is not conducive to change (e.g. rigidly structured hierarchy that does not encourage collaboration and/or communication) Cultural Resistance: Deeply entrenched beliefs, assumptions, patterns of behaviours. It is human nature to attach to the Status Quo.

MGTO 650N Managing Organizational Change

What should be done next?

Create a Burning Platform Clearly state the vision (a road map) Well-communicate the burning platform and the vision (Campaign, workshop..etc.) Top-down approach. Leaders Walk the Talk and put together a critical mass of Change Agents Identifify and leverage on Stakeholders to maximize change efforts Identification and managment of resistance (structural, political, cultural and technical) Sustain gains on successful changes

MGTO 650N Managing Organizational Change

Sustaining Gains
Communication Spread success stories Replication of best practices Rewards (monetary and/or psychological) system Continuous improvement Control plan

MGTO 650N Managing Organizational Change

Initiating change in a good time

(Advantages) Enough financing Financial strong for correction Basis for a future growth Philosophy of life change and grow or stagnate

MGTO 650N Managing Organizational Change

Initiating change in a good time

(Difficulties) Resistance of employees Misunderstanding of Board of Directors and shareholders

MGTO 650N Managing Organizational Change

uestions? - Thank you!