Day of Learning for Next-Generation HR Leaders Don t Bother if You Can t Commit What leaders need to do to make change happen Anne Beutler and Daniel Imbeault
Discussion outline Why is change so difficult? The Importance of Leaders in the Change Agenda Change Leadership vs. Change Management Change Leader Competencies Supporting Your Change Leaders 2
Leadership challenges are driven by different external and internal factors Increased Competition Changing Workforce/place Demographics Clients, Sales, Retaining Talent Constant Change Different Systems & Technology The Mergers & New Acquisitions Global vs. Regional Approaches What are you facing today? 3
Recent research is shedding light on this challenge Emotions play a much bigger role in how people behave and make decisions Predictably Irrational By Dan Ariely People don t always behave in ways that would be defined as rational If we understand the sources of resistance, we can do a better job of preparing people for change and getting them to embrace change How We Decide By Jonah Lehrer Nudge By Richard H. Thaler and Cass R. Sunstein 4
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Change is also difficult because it involves both rational and emotional processing Emotional processing My fear of the unknown My sense of loss My need to feel in control My lack of trust in mgt Rational processing My grasp of the problem we re trying to solve My agreement with our strategy and work plan My analysis of the data My resentment about not being consulted My confidence in our collective ability to deliver My insecurity about succeeding in the new world My confusion about what I m supposed to do My feeling that the changes aren t fair My understanding of the technical issues involved My understanding of the business case My knowledge about how people will be affected by the changes 6
Inside the sustainable engagement model Sustainable Engagement The intensity of employees connection to their organization, marked by a committed effort to achieve work goals (being engaged) in environments that support productivity (being enabled) and maintain personal well-being (feeling energized). Engaged Belief in company goals and objectives Emotional connection (pride, recommendation) Willingness to give extra effort to support success Enabled Freedom from impediments to individual and team success at work Availability of resources to achieve excellent performance Ability to meet work challenges effectively Energized Sustaining the energy needed at work Social supports in the work environment Feelings of enthusiasm/ accomplishment at work 7
and what matters most It s Almost All About Leadership 8
Leadership IS a critical lever for change but also can POTENTIALLY be a barrier for success Top Ten Barriers to Success in Large-Scale Transformation Resistance to change 82% Inadequate sponsorship 72% Unrealistic expectations 65% Poor project management 54% Case for change not compelling Project team lacked skills Scope expansion/uncertainty No change management program Not horizontal process view 46% 44% 44% 43% 41% IT perspective not integrated 30% Source: D&T CIO Survey 9
Change Curve Understanding Ownership Trust Commitment Behaviour No commitment Let it happen Help it happen Make it happen 10
Understanding Stakeholders What does stakeholder mean? People who have some form of interest in the change... change targets, managers or other interested parties Successful change can require different things from different stakeholders Anything from: We need you to fully support this initiative to we just need you to get out of the way! Stakeholder assessment defines what we need from who Change plan defines how do we get them to do it *Source: Changing Minds.Org. 2013 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 11
Understanding Stakeholders Where key people are on the change curve and how to influence them Awareness I know things will change Understanding I understand why we need a change like this and what benefits we want to achieve Ownership I am ready to help making the change a success 2013 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 12
Change Agent Toolkit Six Levers to influence people/stakeholders Leading Involving Provides sponsorship and creates involvement in projects that brings employees onboard Engages key employees to ensure their ownership of the changes Communicating Measuring Learning Supporting Makes people aware and knowledgeable about the vision, rationale and requirement for change Uses a balanced set of measures to define success and support continuous improvement Make sure people have the knowledge and skills to be successful; reducing anxiety about the change and ensuring readiness Align technology, rewards, systems and processes with the change plan, reinforcing desired behaviors 13
Management vs. Leadership Management Keeps current system operating through planning, budgeting, organizing, staffing, controlling and problem solving Executes through controls Works through hierarchy and systems Fundamental purpose: keep current system functioning Leadership Develops vision and strategies Engages and aligns people behind those strategies Empowers individuals to make vision happen, despite obstacles Executes through inspiration Works through people and culture Fundamental purpose: produce useful especially non-incremental change Source: Based on J. P. Kotter, On What Leaders Really Do (Boston: Harvard Business School Press, 1999) 14
Towers Watson s Leader Effectiveness point of view Leaders Live the Leadership Brand of the Organization Leaders Perform Across Four Key Dimensions Leaders Drive Employee Engagement and Business Results 15
Towers Watson s leader effectiveness model (with related competencies for each stage) Envision Customer Focus Knowing the Business Planning & Organizing Strategic Envisaging Inspire Assertiveness & Courage Influence & Persuasion Inspiring & Motivating Others Integrity & Ethics Adapt Adaptability Learning Orientation/ Continuous Self Improvement Resiliency Transform Building Talent Change Leadership Creativity & Innovation Results Orientation 16
Creating a Successful Leadership Profile Based on Strategic Priorities Attributes aligned to strategic priorities: 17
Change Leadership Diagnostic Assess competencies that are characteristic of effective change leaders 1. Shared Vision Align with or buy into the shared vision of the organization 2. Communication 3. Integrity Communicate the purpose of change and change objectives to peers and employees Actions reinforce the change they are asking others to make and the change they are communicating to their team 4. Inspiration Motivate others to follow the new direction set by the change initiative 5. Citizenship 6. Ensure Buy-in 7. Execute with certainty and speed Are active stewards of the change process, displaying the extra effort needed to maximize the effectiveness of the change process Successfully gain the buy-in and support of employees to the goals and steps needed to drive lasting change Demonstrate clear prioritization, making a realistic assessment of how much can be accomplished with the resources available and planning the work accordingly in order to meet required timelines to meet business objectives 8. Accountability Exhibit ownership and accountability for the change agenda 2013 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 18
Understand, Believe, Do to articulate learning objectives Audience / Stakeholders Understand Believe Do Team Solution framework Associates Directors Work backwards: Identify what stakeholders have to DO, then what it is they have to BELIEVE, and lastly, what they have to UNDERSTAND (these are your learning objectives) 19
Why leadership matters 1. The equation is simple: Effective leaders drive sustainable engagement. Ineffective leaders create a disengaged workforce 2. The context of what is expected of leaders is changing. Some of what made leaders successful in the past will help in the future but not everything 3. HR can build change leadership Support an adaptive process in leading change Provide resources and tools to navigate the journey Recognize different leadership competencies required 20
If I have seen farther than others, it is because I was standing on the shoulder of giants. - Isaac Newton Source: Towers Watson Global Workforce Study 2012 21
Anne Beutler Daniel Imbeault anne.beutler@ 416-960-2760 Daniel.Imbeault@ 416-960-4490 2013 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.