Consulting with a Realization Mindset
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1 Consulting with a Realization Mindset Association of Internal Management Consultants (AIMC) April 26, 2010 Research and experience from ODR
2 Three Types of Consulting Strategy Formulation Strategy Execution Operational Excellence 2
3 Failure Is More Common Than Success 30% 70% 54% RESTRUCTURING 63% TQM-DRIVEN CHANGE 67% MERGERS & ACQUISITIONS 70% RE-ENGINEERING 74% SOFTWARE INSTALLATION 80% BUSINESS EXPANSION 81% CULTURE CHANGE 3 Source: Smith, M.E., Success rates for different types of organizational change Performance Improvement, 41 (1), 2, 2002.
4 The Bottom-Line Impact of Failed Change 143% of expected ROI 35% of expected ROI 4 AIMC Source: Keynote LaClair, Address Jennifer A. and Rao, Ravi P. Helping Employees Embrace Change. The McKinsey Conner Quarterly, Partners September , All rights reserved.
5 When are consulting assignments most vulnerable? 5
6 Degree of Difficulty Transformational Intent Realization- Focused 20 Business Imperative 6
7 Difficulty Criteria: Transformational Change 7 Executing Strategic Change to Realize Success, March 31, 2010
8 What Is Transformational Change? Indicators of Incremental Change Modified methods, systems, and behaviors Clear direction Similar, improvement, better Few changes; impacts a smaller span of the organization Minor disruption of people s expectations More linear path Minimal change to existing politics Small number of people will be unwilling or unable to complete the journey Indicators of Transformational Change Modified behaviors, beliefs, and assumptions No right answer; many right answers Different, unrecognizable, challenging A significant number of changes across a large span of the organization Major disruption of people s expectations Multiple interdependent components to integrate High shift to the politics of the organization Significant number of people will be unwilling or unable to complete the journey 8
9 Difficulty Criteria: Full Realization 9
10 Installation vs. Realization Installation: Putting the intended change in place Installation occurs when a change is deployed into a work setting Realization: Achieving the expected value of the change Realization occurs when the intended outcomes of the change are attained 10
11 Difficulty Criteria: Cost of Status Quo 11 Executing Strategic Change to Realize Success, March 31, 2010
12 Selecting Business Imperatives 12
13 Four Types of Business Imperatives Problem Opportunity Current Immediate discomfort The loss of a gain that is within our grasp Anticipated Impending discomfort The loss of a gain that was possible to achieve 13
14 Project Degrees of Difficulty Vary Transformation Project A Project B Project C Imperative Realization
15 Client Mindset Consultant Mindset 15
16 To what degree are you and your clients predisposed toward a realization mindset? 16
17 Realization Mindset Beliefs, assumptions, and expectations drawn from lessons learned as people in key roles face the tough realities of what it really takes to deliver the promised benefits of critically important change 17
18 Client Mindset: Communication and Consequences 18
19 Client Mindset: Strong Leadership 19
20 Client Mindset: Discomfort 20
21 Client Mindset: The Messiness of Change 21
22 Client Mindset: Resilience RESILIENCE 22
23 Client Mindset: Start With Oneself 23
24 Client Mindset: Courage and Discipline 24
25 Consultant Mindset: Frank and Straightforward 25
26 Consultant Mindset: Avoid Bad Business 26
27 Consultant Mindset: Avoid Working Harder Than Your Client 27
28 Consultant Mindset: Surface Risk 28
29 Consultant Mindset: Capacity to Absorb 29
30 Consultant Mindset: Some of the Work Is Cathartic in Nature 30
31 Consultant Mindset: Sometimes the Client s Best Isn t Good Enough 31
32 Net/Net: Degree of Difficulty Transformational Intent Realization- Focused 20 Business Imperative 32
33 Net/Net: Client and Consultant Mindset 33
34 34
35 35
36 36
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