strategic leadership issues - madison · 8/2/2018 · of change. 5. failed to highlight the...

STRATEGIC LEADERSHIP ISSUES

“Leading Change”

Jeffrey H. Wulf Partner Wipfli

Westchester, IL [email protected]

630-368-7038

August 2, 2018

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Leading Change

Date or subtitleJeff Wulf, Partner

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Learning Objectives

Define the role of a change leader/sponsor

Explore what techniques to use to help in your success rate as a change leader.

Determine how to course correct if your change initiative is falling short of expectations

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The Other ROI: Reality of Org. Initiatives

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Both research and experience show that change initiatives fail because the people component of change is mismanaged…

People’s resistance to change is discounted.

“According to an IBM study, only 40% of projects meet schedule, budget, and quality goals. Further, they found that the biggest barriers to success are people factors.”

“According to a Harvard eLearning alert, 70% of all business initiatives fail to fully meet objectives.”

“According to a McKinsey study, on average, large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less value than predicted.”


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Change Management = Risk Mitigation

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Gain shared understandingExpectation

Understand readiness and manage changeAcceptance

Achieve the potential valueAlignment

Deliver effectively and efficientlyExecution

Manage complexity to deliver expectationsSolution

Account for all the investments requiredResource

Enables one to better plan and set up initiatives for success

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A Definition of Change Management

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The process, tools and techniques to manage

the people side of change to achieve

the required business results.


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Leading and Managing Change

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When organizations do this well:

Employees approach future changes with optimism and enthusiasm

Managers believe leadership and the company care about their futures and value their contributions

Leadership feels satisfied about the initiative – they can see how the change is making them successful

Results come faster and exceed expectations

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Change Leadership Values & Beliefs

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Because of science and experience, we believe:

1. Involvement and collaboration lead to buy-in, which lead to change ownership

2. Human resistance is both normal and a business risk that needs to be proactively managed

3. Specific changes (such as tools, procedures, or even roles) are not as important as people’s internal transition processes

4. Training is not the silver bullet for change or resistance; while smart skill development plays a role

5. Sponsorship, change communication, and culture alignment are your keys.


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Success Factors for Change Leaders

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Shared Vision for Change

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D x V x F > R =

Every successful large-scale change that I have seen has, as a part of it, a change vision. - John Kotter

Dissatisfactionwith the status

quo

Visionof a positive future

we all prefer

Firststeps we can

take toward the vision

Resistanceto change

Change


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Vision for Change

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“Leadership defines what the future should look like, aligns people with that vision, and inspires them to make it happen, despite the obstacles.”

John Kotter, Leading Change

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Shared Vision in 4 Steps

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1. Comes from the head and the heart

2. Expresses the hope of the organization

3. Is shared and simple

4. Is easy to communicate, in 1-2 minutes


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Leaders Tell a Story About Their Vision

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Leader’s brief statement that provides:

•Reasons for the change

•Importance

•Costs of not changing

•Expected role for change for each level

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Communicate Directly

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Participants identified senior business leaders as the preferred senders of messages about the business reasons for the change.


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Key Tips

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1. Repeat key messages 5-7 times

2. Use face to face when possible

3. Answer WIIFM or WIDTT (Impacts)

4. Make feedback easy

5. Learn their interpretation

6. Q&A, FAQ’s

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Communication Plan Template

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Stakeholder Objective Information Method When Owner Engage Due Date

Boards, Staff, Customers, Vendors, etc.

Purpose for communicating, typically "Awareness" or some action needed

What you’re telling them, up to 3 key messages and a call to action

Mail, email, meeting, call, etc.

Frequency 1 Accountable Person

Who to consult/inform (typically before the communication goes out)

Final Date the communication will send or stop

Ex: Staff Ex: Stay

abreast of

impact, solicit

ideas for

improvement

Ex: Quarter to

quarter

progress on

indicators

Ex: Team

meetings,

dashboards

Ex: one time

(date) or

quarterly

Ex. CXO Ex. Managers Ex. End of

each quarter


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Ownership

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Level of Commitment

Time

Ownership

Buy-in

Understanding

Awareness

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Ownership > Buy-in

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There is an important link between deep change at the personal level and deep change at the organizational level.

Robert E. Quinn, Deep Change

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WIIFM?

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When people are treated as whole people, they volunteer their highest efforts and energies. When people are treated as things, they withhold their full commitment.

Stephen R. Covey

Accept the fact that we have to treat almost anybody as a volunteer.

Peter Drucker

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WIIFM: Sponsor’s “Business Case” to Change

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Seven levels of business case messages:

1. Functional benefits

2. Dollars and cents

3. External landscape

4. Change explanations

5. Risk and reward

6. Vision and mission alignment

7. Emotional benefits


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A Process for Ownership

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ADKAR Definition

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Prosci Change Methodology

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Key Deliverables:• Change readiness and

impact analysis• Business change analysis• Sponsor/Key leader

competency assessment• Project risk assessment

Key Deliverables:• Communication strategy

and plan• Sponsor roadmap/Leader

Guide• Coaching plan• Training gap analysis and

plan• Resistance management

plan

Key Deliverables:• Feedback plan• Root cause analysis• Corrective action plan• After-action review

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Individual Transitions & Resistance

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Where is Everyone?

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Beginning of Transition End of Transition

Acceptance

Resistance

Anger

Shock

Time 0 3 6 9 12Board / Leaders Managers / Supervisors Employees / The Community

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Resistance “Clues” to Change

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Leading Through Resistance

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Reinforce and Reward

Teach, Train and Enable

Communicate and Lead

NotWilling

Not Able

Not Knowing

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Your Changes

What critical change is your bank experiencing, or will you be experiencing, in the near future?

Discuss with 4-5 of your adjacent classmates for 5-10 minutes

Regroup, solicit responses and talk about change management implications

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Changes You Might Be Facing

M&A

Technology changes

FinTech pressures

Succession

Customer expectations

Regulatory risk/uncertainty

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Sponsoring Change vs. Participating in Change


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Why are sponsors so important?

In each of Prosci’s nine benchmarking studies, participants identified the # 1 contributor to success:

“Active and visible sponsorship”

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Primary role of sponsors

1. Participate actively and visibly throughout the project (Key messages, expectations and updates)

2. Build change coalitions throughout the organization

3. Establish and empower a change team

4. Communicate directly with employees

Executive Sponsor’s role?


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Change Team

Successful change is externally associated with one (or more) highly visible leader

The reality is that it takes high-performing teams of leaders

1. Uncover, discuss and communicate the “burning platform” for change

2. Articulate a compelling shared vision for the future to create and sustain momentum and support

3. Connect people and organizations (and their assets and resources) to the vision by convening and leading them

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Middle to frontline leader role

1. Seek to fully understand the strategic purpose of change and be personally committed

2. Work with managers and staff to secure full understanding and commitment

3. Have a defined method for problem solving and use it

4. Translate organizational messages with more details specific to their areas/associates

5. Establish clear expectations and create accountability

6. Seek out resistance, then reinforce the right behaviors


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Biggest sponsor mistakes

1. Failed to remain visible and engaged throughout the project

2. Didn’t have the time, and didn’t make it a priority

* From the 2018 Best Practices in Change Management benchmarking report

“Was involved only at the beginning –announced the

change and then walked away.”

“Too busy with other important things,

defaults to carrot and stick and gets

compliance, not commitment .”

Common Sponsor Mistakes

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Common Sponsor Mistakes

3. Failed to effectively communicate messages about the need for change.

4. Discounted the people side of change.

5. Failed to highlight the problem solving process.

“Did not articulate the change or the

benefits.”

“Assumed the initiative will sell itself because we

said so”

“Blames the associates for not

trying hard enough.”

* From the 2018 Best Practices in Change Management benchmarking report


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Change Management – Summary

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The Bad: According to vast and diverse research, the majority of

“change” initiatives fail to fully meet objectives (7 of 10)

The Good: The levers to pull to help avoid this are known:

Objectively understand readiness and impact

Focus on: Culture

Shared Vision

Ownership

Individual Transitions and Resistance

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Thank You!

Questions?

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Contact Information

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Jeff Wulf

Partner

Wipfli LLP

630.368.7038

[email protected]

© Wipfli LLP 40

www.wipfli.com/fi

strategic leadership issues - madison · 8/2/2018 · of change. 5. failed to highlight the...

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