PEPPERBOX SOLUTIONS Susan Rollwagen STRATEGIES FOR SECURING SUCCESSFUL BUSINESS CHANGE

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1 PEPPERBOX SOLUTIONS Susan Rollwagen STRATEGIES FOR SECURING SUCCESSFUL BUSINESS CHANGE

2 PLANS FAIL WITHOUT PEOPLE No matter how grand the plans, business change can t be successful without execution. Execution only happens through people. Too many times the people are not prepared to support the change-plan all the way to its reality. Be the heroes! Prepare the human resources!

3 PRITCHETTNET.COM This presentation is not about giving you more content on Change Management This presentation IS intended to share a structure to help ensure your change strategy contains the content topics needed to navigate successfully the changes you face: it is a skeleton on which to attach your content. Much of the content used to give context to the structure is from this resource.

4 IMPACTS OF CHANGE PEOPLE Most critical focus is RESISTANCE BUSINESS Most critical focus is PERFORMANCE

5 CRITICAL PRIORITIZATIONS Equip employees to manage change! Communicate, communicate, communicate! Move fast to implementation! Consistent application of new methods

6 MOST CRITICAL DRIVER: EQUIPPING EMPLOYEES CULTURAL EXPECTATION: SIMPLE + FAST Create a common change-language so employees learn how to be PARTNERS of change not victims of the frequent, moderate changes they will face MAJOR, BUSINESS-WIDE INITIATIVES: COMPLEX + SLOW Create a strategy that equips employees and all levels of leadership to face the expected challenges with an awareness of their responsibilities and opportunities RAPLEXITY: FAST + COMPLEX Escalate efforts to equip your organization to face the trauma of these complex changes if they must be implemented rapidly!

7 BUILD THE FOUNDATION BY EQUIPPING EMPLOYEES FOR THE CULTURAL EXPECTATION OF CHANGES Engage Employees as Change Partners Develop Leaders to Lead Change

8 ENGAGE EMPLOYEES AS PARTNERS OF TYPICAL, INCREMENTAL CHANGE: Create expectation to control what you can control Share principles of the guaranteed realities Create and share support resources Explore phases of emotional response to expect

9 Create expectation to control what you can control In Your CONTROL OWN IT Your Influence

10 Share principles of the guaranteed realities Change won t go away; so learn to control what you can control and expand your influence where possible to other factors of concern. The more aware we are of what drives change, the more prepared we ll be for the direction it comes from. No matter how well planned, change won t be trouble-free The better we learn to handle change, the better prepared we will be for any situation

11 WHY DID WE HAVE TO DO THIS? WHERE DID THIS COME FROM? Competitors extreme pricing tactics regulatory changes Standardizations Billing platform change Night Crew Restructuring National economic conditions Competitor attacks

12 PHASES OF EMOTIONAL RESPONSE 4 TH RESPONSE: SEARCH FOR SOLUTIONS 3 RD RESPONSE: IDENTITY CRISIS 2 ND RESPONSE: DENIAL 1 ST RESPONSE: BETRAYAL

13 DEVELOP LEADERS TO LEAD TYPICAL, INCREMENTAL CHANGE: Acknowledge guaranteed realities Know how to prepare employees before details are public Link vision & results to the company direction Equip leaders with key change dynamics Phases of resistance Skills necessary for change The productivity impact of change

14 THE IMPACT OF CHANGE ON PRODUCTIVITY PRODUCTIVITY LEVEL

15 Cont d DEVELOP LEADERS TO LEAD TYPICAL, INCREMENTAL CHANGE: Learn how to equip their employees to own their personal management of changes Confirm skills for communicating change Facilitate productive discussions about the change Respect the company communication plan Manage resistance from employees Respect audience emotion

16 PREPARE LEADERS FOR ANNOUNCEMENT EMOTION SENIORS LEADERS FRONTLINE Week 1 Week 3 Week 6 Week 9 Week 12 SEARCH FOR SOLUTIONS IDENTITY CRISIS DENIAL BETRAYAL Beginning of Plan Implementation of Change

17 PREPARE FOR COMPLEX, BUSINESS-WIDE CHANGE: BUILD ON THE FOUNDATION OF CULTURAL LEARNING Equip people-leaders to keep employees moving forward Ensure the right people creating the change Survive the announcement with people intact Equip everyone to manage profits through integration Help leaders keep themselves engaged CULTURE OF CHANGE ENGAGEMENT

18 TYPICAL ORGANIZATION REACTIONS AND EVOLUTION DURING KEY CHANGE STAGES PREPARE! AND STAY AHEAD OF THE PROBLEMS THAT WILL COME STAGE ORGANIZATION BEHAVIORS IMPACT ON CLIMATE IMPACT ON INDIVIDUKAL EMPLOYEE ACTION Change Suspected Executive meetings Negotiations Due Diligence Behavioral clues Suspicion Rumors Ambiguity Fear Betrayal Uncertainty Speculation Marketable ones leave Gossip Assume the worst Formal announcements Finally! Anger More people leave Change Announced Planning meetings Implementation strategies Anxiety / Mistrust Self-Preservation Suffering Caution Productivity plummets People play it safe Kick-off events This too shall pass Deny that it s real Rumor mill active Deterioration of trust Change Imposed Decisions Assignments Discovery of what this means to me Infighting Conflict Peer pressure for loyalty to the old Traitors identified Anger Sense of Loss Identity Crisis Beginning of resolution Fire the boss quit but don t leave Forget the customer Don t make waves Mediocrity becomes acceptable Search for solutions Change Integrated Reinforcement & reward of new behaviors and activities Stabilization Team reconstruction Productivity upswing Increased risk-taking Objectivity Common sense comes back Figure out success criteria for the new job Try new behaviors and solutions Find ways to benefit from the changes Resolution begins

19 STAGE OF CHANGE LEADING EMPLOYEES THROUGH SIGNIFICANT CHANGE the first critical person to convince is YOU EMPLOYEE RESPONSE NOVICE MANAGER REACTION SAVVY MANAGER REACTION Change Suspected Betrayal Secretive Need-to-know communication only Denial Communicates insightfully about observable drivers of predictable change Re-recruit winners Individualize plans and priorities Change Announced Denial Reassurance that nothing will change Maintains credibility by promising change Focuses on short-range objectives Change Imposed Identity Crisis Slow down to do it right Avoid issues Speed up to get it moving Encourage risk-taking Gives team & individual goals Change Integrated Search for Solutions Continue to use old rules and procedures Encourage people to try new alternatives Update rules and procedures to reflect what works for the customer

20 ENSURE THE RIGHT PEOPLE ARE CREATING THE CHANGE Are their priorities aligned across the company? Do they have collaborative expertise for planning key milestones? Who needs to be prepared before the details are public or even exist? Do they represent skills and styles to ensure diverse considerations? CONSERVERS* accept structure PRAGMATISTS * explore structure CHANGE STYLE INDICATOR * ORIGINATORS * challenge structure

21 SURVIVE THE ANNOUNCEMENT WITH PEOPLE INTACT V D P Share the positive future vision wisely Answer Why the change? - including outside contributors Establish priorities to keep customers & employees confident Vision Dissatisfaction Process Lowered Resistance Successful CHANGE

22 Cont d SURVIVE THE ANNOUNCEMENT WITH PEOPLE INTACT Prepare leaders for post announcement emotion Equip leaders with announcement wording Outline timeline targets Detail key leader-priorities during first weeks after announcement Business focuses Personal focuses Awareness of change dynamics

23 HELP ALL LEADERS KEEP THEMSELVES ENGAGED IN THE TRANSITION Coach the benefits of crafting your leadership brand Encourage or provide opportunities for growth and self-health Refresh communication and change-navigation skills Warn of slippery slopes of self-preservation

24 EQUIP PEOPLE-LEADERS TO KEEP EMPLOYEES MOVING FORWARD DURING THE TRANSITION THIN ICE! Align coaching strategies to individual responses and stages Visit employee churn realities: re-recruiting best players Review basic leadership skills that will become critical Brace for the cycle of refocusing direction and priority with unrelenting changes

25 Visit employee churn realities: re-recruiting best players CHANGE PARTNERS FENCE SITTERS FOOT DRAGGERS 20% 60% will give it a good try can be persuaded to go either way 20% happy to leave or to quit and stay

26 THE CYCLE OF REFOCUSING DIRECTION AND PRIORITY WITH UNRELENTING CHANGES Productivity level before Change Betrayal Denial Search for Solutions Identity Crisis

27 EQUIP EVERYONE TO MANAGE PROFITS THROUGH EXTENDED CHANGE INTEGRATION Prioritize company-wide transition strategy Preach critical priorities aligned to business culture and survival Share what hot commodities must be maintained Review and apply the dynamics of human response to EVERY change within the integration

28 Cont d EQUIP EVERYONE TO MANAGE PROFITS THROUGH EXTENDED CHANGE INTEGRATION Acknowledge expected realities of managing people and productivity: Share data and stories illustrating revenue and productivity impacts of disengagement and extended change transition Acknowledge the most significant changes you see coming

29 Cont d EQUIP EVERYONE TO MANAGE PROFITS THROUGH EXTENDED CHANGE INTEGRATION Clarify specific expectations and commit to prioritized accountability: How will the company ensure customers are prioritized? How is front-line management expected to work with upper management? How is front-line management expected to support their employees? What individual behaviors are critical for all leaders or employees?

30 SUSAN ROLLWAGEN PEPPERBOXSOLUTIONS.COM