managing change and transitions
TRANSCRIPT
Managing Change and
Transition
Rey Lugtu
www.reylugtu.com
What we will cover
Understand forces of change
Preparing for change
Managing the change process and
transitions
Building change management skills
Changing organizational culture
Case Study: Philippine Telecom Industry, 1997-2003
Growth industry due to deregulation, 5% mobile penetration in 1998
High bargaining power of buyers/customer
Low to moderate bargaining power of suppliers
• Global market leader
• Market leader in Philippines in 90’s
(analog technology)
• Relatively new global player in telecom
• Entered Philippines in mid 90’s
with GSM in Globe
Strategy: Project-focused strategy
PLDT Account
Globe Account
Smart Account
Services Manager
TechnicalManager
Support Functions
Country Manager
Productivity and efficiency
What do you do if you were Nokia?
• Relatively new global player in telecom
(a rubber boots manufacturer)
• Entered Philippines in mid 90’s
with GSM in Globe
• 10% share in network equipment in 1995Our Vision
• A world where everyone can be connected.
• In 2015, 5 billion people always connected, and 100 fold more network traffic.
• It’s a world of experiences, shared experiences.
Our Promise
• We help customers feel close to what matters to them.
• One of our basic needs as human beings is the need to communicate and share.
• Our promise is to help fulfill this need, to help them feel close to what matters to them.
Objective in Philippines•To gain market leadership in network equipment by 2003
Our Promise
• We help customers feel close to what matters to them.
• One of our basic needs as human beings is the need to
communicate and share.
• Our promise is to help fulfill this need, to help them feel
close to what matters to them.
Objective in Philippines
•To gain market leadership in network equipment
Strategy: Project-focused strategy
PLDT Account
Globe Account
Smart Account
Services Manager
TechnicalManager
Support Functions
Country Manager
Productivity and efficiency
What do you do if you were Nokia?
PLDT Account
Globe Account
Smart Account
Nokia’s Structural Reorganization, 1999
Services Manager
TechnicalManager
Support Functions
Country Manager
Project-Focused Strategy
Regional Manager
Smart Account
Services Managers
TechnicalManagers
Support Functions
Customer Focus Strategy
Globe Account
Services Managers
TechnicalManagers
Support Functions
Changes in the environment
(market growth, bargaining power of buyers)
Change in strategy
(from project-focus and efficiency
to customer focus and effectiveness)
Change in structure and culture
Changing an
Organization
Changing an organization is the process of
modifying an existing organization to increase
organizational effectiveness.
4
Organizations undergo changes in response
to environmental forces – external and internal
Some External Forces for
Change
Environmental
factors
Marketplace
factors
Attract or retain high-caliber
people
Develop a global mind-set
Improve collaboration with
government agencies
Implement regulatory
changes
Technology &
Process
factors
Some Internal Forces for
Change
Cultural
factors
Skills
Technology &
Process
factors
Establish greater trust
between team members
either functionally or cross-
functionally
Reduce organizational
layers
Work in a more
boundaryless way
Improve cross-functional
communication/execution
Some Internal Forces for
Change
Cultural
factors
Skills
Identify and develop the next
generation of leaders
Improve understanding of the
business
Improve technical skillsTechnology &
Process
factors
Some Internal Forces for
Change
Cultural
factors
Skills
Technology &
Process
factors
Do a better job of utilizing or
leveraging technology
Display greater flexibility or
adaptability in processes
Improve productivity
Create new products or offer
new services
Reduce new product or service
introduction time
Reengineer key processes
What are the external and
internal forces of change
that you are facing?
What happens if you don’t
respond to these changes?
2010
How ready are we to
address these changes?
Changing complexities
Changing customer relationships
Changing operational requirements
THE SEVEN TRAITS OF
CHANGE-READINESS Resourcefulness
They see more than one way to achieve a goal, and they're able to look in less obvious places to find help. They have a real talent for creating new ways to solve old problems.
Optimism Is the glass half empty or half full?
Optimist recognizes opportunities and possibilities.
Adventurousness Inclination to take risks and the desire to pursue the
unknown, to walk the path less taken.
THE SEVEN TRAITS OF
CHANGE-READINESS Passion / Drive
Nothing appears impossible.
intensity and determination.
Adaptability
Flexibility and resilience.
Confidence
Confidence is the belief in your own ability to handle it.
Tolerance for Ambiguity
The one certainty surrounding change is that it spawns
uncertainty. No matter how carefully you plan it, there is always
an element of indefiniteness or ambiguity.
Change Readiness Test
Adventurers are great starters,
Resourceful people are excellent problem
solvers,
Optimists make good cheerleaders, and
their input is especially useful when people
feel discouraged.
Changes that we experience
Job change
New boss
Office move
Job loss
Career change
Learned new technology
Reorganization
Promotion
Got married
Home purchase
Built a home
Community involvement
Started new hobby
Five Types of Change
Evolutionary change: slow and incremental
Developmental change: improving something
to make it better
Transitional change: change that requires
something new and different
Sweeping or dramatic change: immediate
change, often imposed on us
Transformational change: a complete
alteration, conversion, or renovation
Examples of Each Type of Change
Change versus
Transition
Old organization
Is it immediately effective and performing
Regional Manager
Smart Account
Services Managers
TechnicalManagers
Support Functions
Globe Account
Services Managers
TechnicalManagers
Support Functions
New organization
Transition
PLDT Account
Globe Account
Smart Account
Services Manager
TechnicalManager
Support Functions
Country Manager
Rackmount UPS
Desktop UPS
Large Facility UPS
Network
UPS
Row BasedCooling
Inverters
President &
Country Mgr
Telecom
Products
Enterprise
ProductsServices
Industrial
Products
Apodys AC UPS 5-500 kVA
Apodys Charger10-500kW
T&Dys Charger <10kW
AC & DC Switchgears
After-sales support
Data center assessment
Battery monitoring
Facilities management
But there are changes in the
environment…..
Competitive environment
Entry of Chinese competitors
High bargaining power of customers
Opportunities in certain sectors (BPO,
Government)
Acquisition of Avocent, a data center
software company
Smart anticipation of our customers’ rapidly changing business environments makes Emerson Network Power the singular choice for integrated infrastructure management solutions and best-in-class pre- and post-sales support in Philippines.
•Intellectual Curiosity – We hire and develop the best and challenge ourselves to
continuously learn, grow, collaborate and collectively engage in the business
•Passion to Win – We relentlessly tackle tough problems, play to win and deliver results
for the entire enterprise
•Commitment to Our Customers – We believe in creating relationships with our
customers that are built on a foundation of market knowledge, a focus on quality and a
commitment to protect and enhance their business
•Relationship of Trust – We are committed to ethical behavior, integrity and honesty,
and being respectfully direct with all.
Our Values
Our Vision
President &
Country Mgr
Telecom
Products
Enterprise
ProductsServices
Industrial
Products
Product focused
Strategy
President &
Country Mgr
Telecom
Vertical
Banking &
Financial
Services
Vertical
ServicesIndustrial
Vertical
BPO
Vertical
Govt
Vertical
Customer focused
Strategy
Transition
Three Phases of TransitionWilliam Bridges
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go
Time
Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go
The First Phase – The
EndingLetting go of the old ways and the
old identity people had
Minimizing
Resistance
to Change
Communication
Training
EmployeeInvolvement
StressManagement
Negotiation
Coercion
Minimizing Resistance to
Change
How to get people to let go
Identify who is losing what
Accept the reality and importance of the
subjective losses
Don’t be surprised at overreaction
Acknowledge the losses openly and
sympathetically
How to get people to let go
Expect and accept the signs of grieving
Compensate for the losses
Give people information repeatedly
Define what is over and what isn’t
How to get people to let go
Mark the endings
Treat the past with respect
Let people take a piece of the old way with
them
Show how endings ensure the continuity
of what really matters
How to get people to let go
Finally, whatever must end, must end!
Don’t drag it out. Plan carefully, allow time
for healing, but make sure that the action
is large enough to get the job done!
In taking possession of a state, the conqueror should well
reflect as to the harsh measures that may be necessary, and
then execute them at a single blow…Cruelties should be
committed all at once.
Niccolo’ Machiavelli, Italian Political Philosopher
It doesn’t work to leap a 20-foot chasm in two 10-foot jumps.
American Proverb
Keys to Responding to Resisters(DuFour & Eaker, 1998)
Assume good intentions
Identify specific behaviors essential to the success of the initiative
Focus on behavior, not attitude. Monitor behavior.
Acknowledge and celebrate small victories
Confront incongruent behavior with specific concerns and communicate logical consequences.
Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go
The Second Phase –
The Neutral ZoneThe psychological no-man’s land
between the old reality and the
new one
Dangers of the Neutral Zone
Anxiety rises and motivation falls
Productivity suffers
Old weaknesses reemerge with a vengeance
People are overloaded and get mixed signals.
People become polarized (poorly managed, this
can lead to terminal chaos)
Organization is vulnerable to attack from the
outside and sabotage within
Helping people through the Neutral
Zone
Normalize
Redefine
Create temporary systems
Strengthen communications and
relationships
Use the time creatively (leaders should
model this – start with yourself!)
Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go
The Third Phase –
Launching a New
BeginningA start can and should be carefully
planned. Starts take place on a schedule as a result of decisions
The Four P’s
The Four P’s
Purpose Clarify and communicate
Picture Give them a vision
Plan This is not a plan for the change but a plan for the
transition (should be detailed, person-oriented, and step-by-step)
Part Integrate and show people how they fit into the new
scheme
Be Very Clear in Your Direction
If you cry, “Forward,” you must make it
clear the direction in which to go.
Don’t you see that if you fail to do that and
simply call out the word to a monk and a
revolutionary, they will go in precisely the
opposite directions.
Anton Chekhov, Russian Writer
Reinforce the New Beginning
Rule 1 – Be consistent
Rule 2 – Ensure quick successes
Rule 3 – Symbolize the new identity
Rule 4 – Celebrate the success
William Bridges: “Managing Transitions”
Doing an Impact Analysis Strategy. How does the change align with the big picture? In
what ways does it support the strategic direction of my organization?
Structure. Can I implement this change within the current structure of my organization, or is there a need to shift roles and responsibilities?
Skills. Is there a need for training or education? Do those who have to make the change work have the necessary skills?
Processes. What impact will this change have on the way we do our work? Do we have to change the way we communicate, coordinate our work, manage priorities, make decisions, and meet deadlines? Do we need to introduce new procedures or processes?
Culture. What behaviors are important to support this change? Do we need to improve our teamwork, communication, responsibility sharing, customer responsiveness, or quality of execution in order to make this change successful?
Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go
Managing Culture
Change
Organizational Culture
A set of values or beliefs that is unique to
any one organization
Some issues
• Strength of the culture
• Hidden elements
• Clicks
• Values
• Trying to get on the inside
Positive Aspects of an
Organizational Culture
Guides decision making
Provides identity for members
Amplifies commitment
Guides employee behavior
Provides justification for actions
Strength of an Organizational
Culture
A strong culture could help an organization
adapt to the environment
A strong culture can also be an anchor
around the neck of change
Visible Signs of Strong
Organizational Culture
Stories
Heroes
Rituals
Ceremonies
Symbols
Myths
Types of Cultures
The Clan Culture
A very friendly place to
work where people
share a lot of
themselves. It is like
an extended family.
Cameron, K., & Quinn, R., (1999). Diagnosing and Changing Organizational Culture. New York: Addison-Wesley.
Types of Cultures
The Hierarchy Culture
A very formalized
structured place to
work. Procedures
govern what people
do.
Cameron, K., & Quinn, R., (1999). Diagnosing and Changing Organizational Culture. New York: Addison-Wesley.
Types of Cultures
The Adhocracy
Culture
A dynamic
entrepreneurial, and
creative place to work.
People stick their
necks out and take
risks.
Cameron, K., & Quinn, R., (1999). Diagnosing and Changing Organizational Culture. New York: Addison-Wesley.
Types of Cultures
The Market Culture
A results oriented
organization whose
major concern is with
getting the job done.
People are competitive
and goal-oriented.
Cameron, K., & Quinn, R., (1999). Diagnosing and Changing Organizational Culture. New York: Addison-Wesley.
Studies show that
culture is closely related
to the effectiveness of
organizations.
Effectiveness depends on . . .
the core values and beliefs of the
members of the organization.
the policies and practices used by the
organization.
the success in translating the core values
and beliefs into policies and practices.
the match between values, beliefs,
policies, practices, and the organization’s
environment.
Model of Organizational Culture
Types
Studies on Culture Types
Deshpande, Farley, and Webster (1993)
found that competing values of the market
culture outperform those of the clan
culture.
Those of the adhocracy culture
outperformed those of the diagonally
opposing hierarchy culture.
The speed of response to environmental
changes which determine a higher
performance is thus culturally dependent.
EXERCISE-
Organizational Culture
Assessment Instrument
(OCAI)
How Organizational Cultures
Form
Philosophy
of the
Organization’s
Founders:
Bill Hewlett &
Dave Packard
John Gokongwei
Bill Gates
Organizational
CultureSelection
Top
Management
Socialization
Strengthening
Organizational
Culture
Foundersand leaders
Culturallyconsistentrewards
Stableworkforce
Selectionand
socialization
Managing theculturalnetwork
Strengthening Organizational
Culture
Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go
Time
The New Beginning
The Neutral
Zone
Ending, Losing,
Letting Go
The Results
Thank You