Leading Organizational Change

Risk and RewardRisk and Reward ::
Practical Steps in LeadingPractical Steps in Leading
Organizational ChangeOrganizational Change
Donald R. Simon,Donald R. Simon,
J.D./LL.M.J.D./LL.M.
Simon Business Consulting, Inc.Simon Business Consulting, Inc.
Central Region Leadership DayCentral Region Leadership Day
February 13, 2013February 13, 2013

Risk and RewardRisk and Reward
• AgendaAgenda::
– Welcome!Welcome!
– The BiggestThe Biggest
Obstacle toObstacle to
ChangeChange
– 8 Steps to Change8 Steps to Change
– Q & AQ & A

Me:Me:
• 9 years of experience in the9 years of experience in the
areas of business and law.areas of business and law.
• 8 years of experience8 years of experience
teaching entrepreneurs aboutteaching entrepreneurs about
legal and business issues.legal and business issues.
• Board member: KC VolunteerBoard member: KC Volunteer
Lawyers and Accountants forLawyers and Accountants for
the Arts.the Arts.

““The most difficultThe most difficult
thing is the decision tothing is the decision to
act, the rest is merelyact, the rest is merely
tenacity. You can dotenacity. You can do
anything you decide toanything you decide to
do.”do.”
~~Amelia Earhart~~Amelia Earhart

• Successful executives leadSuccessful executives lead
fundamental changes in the waysfundamental changes in the ways
that the organization operates.that the organization operates.
• They are not satisfied with theThey are not satisfied with the
status quo.status quo.
• In other words, they look to theIn other words, they look to the
sky and ask: “sky and ask: “ Why can’t I?Why can’t I?””

• They envision far-reachingThey envision far-reaching
changes and follow up withchanges and follow up with
action to make sure that theaction to make sure that the
changes occur.changes occur.
• They successfully deal withThey successfully deal with
ambiguity, learn fromambiguity, learn from
experience, and thinkexperience, and think
critically and creatively.critically and creatively.

• Successful executives areSuccessful executives are
willing to take some risk inwilling to take some risk in
order to reap some reward.order to reap some reward.
• Affecting change is an act ofAffecting change is an act of
courage.courage.

• Ask yourselfAsk yourself::
– ““Do I have the courage it takesDo I have the courage it takes
to lead change?”to lead change?”

• It requires a willingness to:It requires a willingness to:
– Take on one’s fearsTake on one’s fears
– Take on the unknownTake on the unknown
– Take the road less traveledTake the road less traveled
• Not everyone is willing to doNot everyone is willing to do
these things.these things.

• An organization’s culture is builtAn organization’s culture is built
on collective traditions, norms,on collective traditions, norms,
long-standing values, and sharedlong-standing values, and shared
history.history.
• You need to change the behaviorYou need to change the behavior
of theof the peoplepeople in yourin your
organization.organization.
A HUGE CHALLENGE!A HUGE CHALLENGE!

• It’s not easy to changeIt’s not easy to change
people.people.
• Especially, if those people areEspecially, if those people are
afraid of or resist theafraid of or resist the
opportunity to change.opportunity to change.

• Why do we fear change?Why do we fear change?
– Because, by the very nature ofBecause, by the very nature of
being human, we arebeing human, we are
constantly striving forconstantly striving for comfortcomfort
and safetyand safety..
• Survival is our priority…notSurvival is our priority…not
putting ourselves at risk orputting ourselves at risk or
out there on the edge.out there on the edge.

• Yet we live in a climate whereYet we live in a climate where
organizations must evolve andorganizations must evolve and
change if they hope to survive.change if they hope to survive.
• You’ll be pushing the edges,You’ll be pushing the edges,
tearing down barriers, andtearing down barriers, and
forging new territory.forging new territory.
• And mostly, it’s aAnd mostly, it’s a thanklessthankless rolerole
to play.to play.

• The biggest obstacle inThe biggest obstacle in
leading organizational changeleading organizational change
may be:may be:
YOU!YOU!

1.1. Let go of theLet go of the
need to be likedneed to be liked ..

• Very few people will thank you forVery few people will thank you for
creating chaos in their lives.creating chaos in their lives.
• Or asking them to transform whoOr asking them to transform who
they are, what they think, whatthey are, what they think, what
they believe, or how theythey believe, or how they
function.function.
• Or where their desk is located!Or where their desk is located!

• Let go of wanting everyoneLet go of wanting everyone
to love or like you.to love or like you.
• Accept they mayAccept they may reject youreject you ..
• Think to yourselfThink to yourself::
– ““So what if they don’t love me?So what if they don’t love me?
In the end they might actuallyIn the end they might actually
thank me.”thank me.”

2.2. Take theTake the
long-term viewlong-term view ..

• You may not get credit forYou may not get credit for
your role in the change andyour role in the change and
maybe not even in thismaybe not even in this
lifetime.lifetime.
• Be prepared to start buildingBe prepared to start building
things that you may never seethings that you may never see
completed in your lifetime.completed in your lifetime.

• No doubt Jacqueline CochranNo doubt Jacqueline Cochran
and Bessie Coleman gotand Bessie Coleman got
frustrated when changesfrustrated when changes
weren’t happening fastweren’t happening fast
enough.enough.

• But they were catalysts forBut they were catalysts for
change that far surpassedchange that far surpassed
their lifetimes.their lifetimes.
• Change is a process, anChange is a process, an
ongoing endeavor that youongoing endeavor that you
probably didn’t start and willprobably didn’t start and will
most likely not finish.most likely not finish.

3. Let go of the3. Let go of the
outcomeoutcome..

• Our ego wants the resultOur ego wants the result nownow..
• It wants us to succeed and getIt wants us to succeed and get
credit for our hard workcredit for our hard work nownow..
• Not 10 years from now whenNot 10 years from now when
people look back and say…people look back and say…

““Wow, Mary really pushedWow, Mary really pushed
us to make changes, andus to make changes, and
it was pretty painful at theit was pretty painful at the
time, but, hey! Look at ustime, but, hey! Look at us
now!”now!”

Are you up to the challenge?Are you up to the challenge?

• 8 Steps for Leading Change8 Steps for Leading Change ::
1.1. Create a sense of urgency.Create a sense of urgency.
2.2. Build a “guiding team.”Build a “guiding team.”
3.3. Create a change vision.Create a change vision.
4.4. Communicate the vision.Communicate the vision.
5.5. Remove obstacles.Remove obstacles.

• 8 Steps for Leading Change8 Steps for Leading Change ::
6.6. Create short-term wins.Create short-term wins.
7.7. Don’t let up.Don’t let up.
8.8. Make change stick.Make change stick.

1.1. Create a Sense of UrgencyCreate a Sense of Urgency ::
– For change to happen, the wholeFor change to happen, the whole
department or even companydepartment or even company
must really want it.must really want it.
– Develop a sense of urgencyDevelop a sense of urgency
around the need for change.around the need for change.

– Open an honest and convincingOpen an honest and convincing
dialogue about what’s happeningdialogue about what’s happening
(or not happening).(or not happening).
– Inspire people to move andInspire people to move and
make objectives real andmake objectives real and
relevant.relevant.

– You have to really work hard onYou have to really work hard on
this step.this step.
– Spend significant time and energySpend significant time and energy
building urgency, before movingbuilding urgency, before moving
on.on.
– If you act without properIf you act without proper
preparation, you could be in for apreparation, you could be in for a
very bumpy ride.very bumpy ride.

2.2. Build a Guiding TeamBuild a Guiding Team ::
– Convincing people that change isConvincing people that change is
necessary often takes strongnecessary often takes strong
leadership and visible supportleadership and visible support
from key people.from key people.
– Get the right people in place withGet the right people in place with
the right emotional commitmentthe right emotional commitment
and the right mix of skills andand the right mix of skills and
levels.levels.

– Don’t necessarily follow theDon’t necessarily follow the
traditional company hierarchy.traditional company hierarchy.

– Bring together a team whoseBring together a team whose
power comes from apower comes from a variety ofvariety of
sourcessources: job title, expertise,: job title, expertise,
status, political importance, etc.status, political importance, etc.
– Your “Guiding Team” needs toYour “Guiding Team” needs to
work as a team, continuing towork as a team, continuing to
build urgency and momentumbuild urgency and momentum
around the need for change.around the need for change.

3.3. Create a Change VisionCreate a Change Vision ::
– Get the team to establish aGet the team to establish a simplesimple
vision and strategyvision and strategy ..
– A clear vision can help everyoneA clear vision can help everyone
understand why you’re askingunderstand why you’re asking
them to do something.them to do something.
– Focus on emotional and creativeFocus on emotional and creative
aspects.aspects.

– When people seeWhen people see
for themselvesfor themselves
what you’re tryingwhat you’re trying
to achieve, thento achieve, then
the directivesthe directives
they’re given tendthey’re given tend
to make moreto make more
sense.sense.

4.4. Communicate the VisionCommunicate the Vision ::
– What you do with your visionWhat you do with your vision
after you create it will determineafter you create it will determine
your success.your success.
– Talk often about your changeTalk often about your change
vision.vision.
– Involve as many people asInvolve as many people as
possible.possible.

– Communicate the essentials in aCommunicate the essentials in a
simple way.simple way.
– Be passionate and showBe passionate and show
conviction.conviction.

5.5. Remove ObstaclesRemove Obstacles ::
– Remove obstacles and enableRemove obstacles and enable
constructive feedback.constructive feedback.
– Empower the people you needEmpower the people you need
to execute your vision and itto execute your vision and it
can help the change movecan help the change move
forward.forward.

– Reward and recognize progressReward and recognize progress
and achievements.and achievements.

6.6. Create Short-Term WinsCreate Short-Term Wins ::
– Set aims that are easy toSet aims that are easy to
achieve--in bite-size chunks.achieve--in bite-size chunks.
– Give your team a taste ofGive your team a taste of
victory early in the changevictory early in the change
process.process.

– This also means setting aThis also means setting a
manageable number ofmanageable number of
initiatives.initiatives.
– Each “win” can further motivateEach “win” can further motivate
the entire team.the entire team.

7.7. Don’t Let UpDon’t Let Up::
– After every win, analyze whatAfter every win, analyze what
went right and what needswent right and what needs
improving.improving.
– Set goals to continue building onSet goals to continue building on
the momentum you've achieved.the momentum you've achieved.
– Foster determination andFoster determination and
persistence.persistence.

7.7. Don’t Let UpDon’t Let Up ::
– EncourageEncourage
ongoing progressongoing progress
reporting.reporting.
– HighlightHighlight
achieved andachieved and
futurefuture
milestones.milestones.

8.8. Make Change StickMake Change Stick ::
– Change should become part ofChange should become part of
the core of your organization.the core of your organization.
– It’s also important that yourIt’s also important that your
company’s leaders continue tocompany’s leaders continue to
support the change.support the change.

– This includes existing staff andThis includes existing staff and
new leaders who are brought in.new leaders who are brought in.
– If you lose the support of theseIf you lose the support of these
people, you might end up backpeople, you might end up back
where you started.where you started.

So how does this workSo how does this work
logistically?logistically?

• Jane works at a governmentJane works at a government
agency.agency.
• Like many people, she’sLike many people, she’s
watching what she eats.watching what she eats.
• The problemThe problem: little or no: little or no
healthy eating options in thehealthy eating options in the
breakroom.breakroom.

• Jane would like to see healthyJane would like to see healthy
or at least healthier snacks inor at least healthier snacks in
the vending machines.the vending machines.

• She thinks that there may beShe thinks that there may be
some resistance from her co-some resistance from her co-
workers because healthyworkers because healthy
snacks:snacks:
1.1. Tend to be more expensive; andTend to be more expensive; and
2.2. Take space from other moreTake space from other more
popular snacks.popular snacks.

– Jane starts talking to othersJane starts talking to others
about her concerns.about her concerns.

– She discusses some of theShe discusses some of the
health concerns for peoplehealth concerns for people
with office jobs.with office jobs.
– And how unhealthy lifestylesAnd how unhealthy lifestyles
are driving up health careare driving up health care
costs for everyone.costs for everyone.

– Now that some of Jane’s co-Now that some of Jane’s co-
workers understand the urgencyworkers understand the urgency
of the change, she needs toof the change, she needs to
select her “Guiding Team.”select her “Guiding Team.”
– She selects several co-workersShe selects several co-workers
based on their experience,based on their experience,
popularity, rank, etc.popularity, rank, etc.

– These co-workersThese co-workers
will provide thewill provide the
necessary directionnecessary direction
for developing andfor developing and
implementing theimplementing the
healthy snackhealthy snack
change.change.

– Jane’s co-workers will need toJane’s co-workers will need to
know what’s in it for them.know what’s in it for them.
– She must create a vision thatShe must create a vision that
connects the proposed healthyconnects the proposed healthy
snack options to long-termsnack options to long-term
health benefits and lowerhealth benefits and lower
health care costs.health care costs.

– Jane and the “Guiding Team”Jane and the “Guiding Team”
talk often about change vision.talk often about change vision.
– They openly and honestlyThey openly and honestly
address co-workers’ concerns.address co-workers’ concerns.
– They tie everything back to theThey tie everything back to the
vision.vision.

– Throughout the process, Jane willThroughout the process, Jane will
need to address any barriersneed to address any barriers
brought to her attention to keep thebrought to her attention to keep the
change process moving.change process moving.
– She must also make sure that aShe must also make sure that a
sufficient level of co-workers willsufficient level of co-workers will
buy the healthy snacks once theybuy the healthy snacks once they
are available.are available.

– Jane and the “Guiding Team”Jane and the “Guiding Team”
have been able to get severalhave been able to get several
members of management onmembers of management on
board to the healthy snackboard to the healthy snack
idea!idea!

7.7. Don’t Let UpDon’t Let Up ::
– Jane will need to focus on theJane will need to focus on the
role of early success as anrole of early success as an
enabler of future success.enabler of future success.
– She might share the results ofShe might share the results of
an employee survey that showsan employee survey that shows
an interest in healthy eatingan interest in healthy eating
options.options.

– She will want to monitor theShe will want to monitor the
sales of the new food items tosales of the new food items to
see how well the organizationalsee how well the organizational
culture is adapting to them.culture is adapting to them.
– Jane may encourage co-workersJane may encourage co-workers
to come forward with their ownto come forward with their own
healthy snack suggestions.healthy snack suggestions.

• You have to work hard toYou have to work hard to
change an organizationchange an organization
successfully.successfully.
• If you’re too impatient, and ifIf you’re too impatient, and if
you expect too many resultsyou expect too many results
too soon, your plans fortoo soon, your plans for
change are more likely to fail.change are more likely to fail.

• But if you plan carefully and buildBut if you plan carefully and build
the proper foundation,the proper foundation,
implementing change can be muchimplementing change can be much
easier, and you’ll improve theeasier, and you’ll improve the
chances of success.chances of success.
• If you do these things, you canIf you do these things, you can
help make the change part of yourhelp make the change part of your
organizational culture.organizational culture.

• Remember that with risk,Remember that with risk,
there can be reward.there can be reward.

““[D]ecide...whether or[D]ecide...whether or
not the goal is worthnot the goal is worth
the risks involved. If itthe risks involved. If it
is, stop worrying..."is, stop worrying..."
~~Amelia Earhart~~Amelia Earhart

AnyAny
Questions?
Questions?

Contact Me:Contact Me:
• PhonePhone: 816.728.6948: 816.728.6948
• EmailEmail::
don@simonbizconsulting.comdon@simonbizconsulting.com
• TwitterTwitter: @simonbizconsult: @simonbizconsult
• WebWeb:: simonbizconsulting.comsimonbizconsulting.com
THANK YOU!THANK YOU! 

Leading Organizational Change

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