My presentation for a Leading Change module in an executive education program that has three modules spread over three months. This presentation is made during the first module and the participants are broken into teams to work on their own live projects within their company.

1. Leading Change:
Integrating Theory and
Practice
Robin Teigland
Center for Strategy and Competitiveness
Stockholm School of Economics
robin.teigland@hhs.se
Twitter: RobinTeigland
www.knowledgenetworking.org
August 2013

2. Who am I? (LinkedIn Inmaps)
SS
E
IFL
Swedish
Industry
ResearchWharton
Stanford
McKinsey
SSE MBA

3. 3
Agenda
Afternoon
1. Live Project Groupwork
2. Some Change Tools
Morning
1. What is Change
2. Kotter’s 8 Stages
3. Groupwork
Going Forward

4. 4
Leading Change objectives
 To expose participants to some Change
concepts, frameworks, and tools
 To develop Change techniques and skills
through developing and discussing a live
change project
 To deliver real business benefits for your
company
 To provide participants with an interactive and
reflective team experience in which everyone
(participants and faculty) learns together

5. Jack Welch…
5
"...when the rate of change
outside an organization is
greater than the change inside,
the end is near...."

6. Competitive advantage increasingly
based on organization’s ability to change
 Of original Forbes 100 in 1917
- 61 companies ceased to exist by 1987
- 18 of remaining 39 underperformed market by 20%
- Only 2 beat market index (GE & Eastman Kodak)
- Only 1 (1%) today!
 Average S&P 500 company lifespan
 1920s – 67 years
 2010s – 15 years
 Dr. Richard Foster, Yale, Sept 2012
 Today's rate of change is at faster pace than ever
 By 2020 prediction is >75% of S&P 500 will be companies
we do not know about today
http://www.fastcompany.com/3001444/what-zara-pg-and-berlitz-know-about-agility

7.  Only 20-30% of all change projects achieve full value
 Less than 20% of anticipated value from M&A materialized
 Only 25% of JVs stay together after “honeymoon”
 Less than 50% of quality-improvement efforts make satisfactory
progress
 Only 9% of all major software development applications in large
organizations worth cost
 31% of software implementation projects cancelled before
completion
 Irrespective success or failure, 53% software implementations
result in cost overruns by up to 189%
High number of change initiatives unsuccessful!
So, are change initiatives successful?
Beer 2002, Gratton 2007, Maurer and Co

8. 9
Your Experience with Change
Discuss in pairs
Choose one of your more significant experiences with change
(either successful or unsuccessful).
Which events/phases of change from the Iceberg story do you
recognize in your experience? Did you experience all the phases
or only some of them? Why or why not?
Do you recognize any of the key characters in this change
experience? Freds, Alices, NoNos? Other?
Reflect on your own role in this change experience. Which
character(s) did you play in these?
Was this change experience successful? Why or why not? How
does the outcome differ from that of the Iceberg story?
www.ouricebergismelting.com

9. Organizational Change
 An alteration of an organization’s environment,
structure, culture, technology, or people
 A constant force
 An organizational reality
 An opportunity or a threat
 Change agent
 A person who initiates and assumes the responsibility
for leading a change in an organization
10

10. 12
Change focus
Burnes 2004
Small-scale change
Large-scale change
Rapid changeSlow change
Level: The organization
Focus: Structures & processes
Level: The organization
Focus: Culture
Level: Individual/group
Focus: Tasks & procedures
Level: Individual/group
Focus: Attitudes/behavior

11. 13
What triggers change?

12. 14
PESTEL – External pressures for change
Johnson & Scholes 1997
Political
Environmental Technological
Legal Social
Economic
Organization

13. PeoplePeople
• ““Net generation”Net generation”
• 24x7 “mobile” workforce24x7 “mobile” workforce
• Social entrepreneurshipSocial entrepreneurship
TechnologyTechnology
• Broadband accessBroadband access
• Mobile hardwareMobile hardware
• ICTsICTs
• 3D printing3D printing
Open SourceOpen Source
• SoftwareSoftware
• HardwareHardware
• PhysiblesPhysibles
Convergence of…..
FinanceFinance
• Microlending/microfinanceMicrolending/microfinance
• Crowdfunding/equityCrowdfunding/equity
• Digital, non-fiat currenciesDigital, non-fiat currencies

14.  Only 20-30% of all change projects achieve full value
 Less than 20% of anticipated value from M&A materialized
 Only 25% of JVs stay together after “honeymoon”
 Less than 50% of quality-improvement efforts make satisfactory
progress
 Only 9% of all major software development applications in large
organizations worth cost
 31% of software implementation projects cancelled before
completion
 Irrespective success or failure, 53% software implementations
result in cost overruns by up to 189%
Remember…. Are initiatives successful?
Beer 2002, Gratton 2007, Maurer and Co
Why? According to Fortune 500 executives,
resistance/people not accepting changes

15. Why do people resist change?
18
Prentice Hall 2002

16. Innovators - Leap with enthusiasm at change proposal and strongly
support.
- Expect others to be active in pursuing change.
Early Adopters - Rapidly persuaded, especially by early success.
- Likely to want to adapt change proposals to own
circumstances.
Early Majority - Want to see tangible outcomes to change proposals.
- Not convinced merely by idea or principle.
Late Majority - Follow powerful person when agree and support change
ideas.
- Commitment centered on political calculation.
Resistors
(Laggards)
- Predictable.
- Need considerable evidence – more vivid and directly
observable, the better – before they can be mobilized.
- Relatively risk adverse.
People react differently...
Rogers 1983, 1995

17. Reactions to change distribution
Rogers 1983, 1995

18. 24
Say the color, not the word
YELLOW BLUE ORANGE
BLACKBLACK
GREEN PURPLE YELLOW RED
ORANGEORANGE GREEN BLACK
BLUE Stroop

19. 25
The challenge of change
Change
Leadership
Change
Management
The WHAT
The ‘hard’ edge:
Systems, processes, structures,
and business strategy
The HOW
The ‘soft’ side:
Culture, behaviors,
values, and people
Zwanenberg

20. 26
Kotter’s eight-stage process for change
Kotter 1996
2. Form a powerful guiding coalition
1. Establish a sense of urgency
3. Create a vision
8. Anchor new approaches
4. Communicate the vision
5. Empower others to act on the vision
6. Plan for and create short-term wins
7. Consolidate improvements and produce more change

21. 2727
Tata Motors

22. 2828
Tata Motors
 India’s largest commercial vehicle maker for
decades
 World’s fifth largest manufacturer of medium and
heavy trucks
 India’s largest automobile company (#1 in
commercial and #2 in passenger)
 Building global presence (e.g., partnership/acquisition
with Fiat, acquisition of Jaguar/Land Rover)
 Major turnaround 2001 to 2007
 March 2001 - $110 mln loss for fiscal year, corporate
India’s biggest loss
 3Q 2007 - $132 mln profit
http://www.youtube.com/watch?v=rOnQpP5haUQ

23. 29
Groupwork - In your groups
 Discuss how change was implemented at Tata
Motors
 What triggered the change?
 How does the change process map onto Kotter’s eight
stages?
 What is the real change?
 What are the lessons learned from the case?
 Prepare a maximum 10 minute presentation
 Present groupwork
 Discussion
http://www.mckinseyquarterly.com/Leading_change_An_interview_with_the_managing
_director_of_Tata_Motors_1908

24. 30
1. Establish sense of urgency
Forces
for
change
Forces
for
stability
The
status
quo
Burnes 2004http://www.youtube.com/watch?v=U5802FBaMSI

25. Force field modelWhoandWhatCanChangeWhoandWhatCanChange
Lewin 1947, 1951; Iles & Southerland, 2001

26. 32
1. How to create a sense of urgency?
 Create a crisis/rivalry
 Benchmark within and outside industry
 Find/develop a “red hot” burning issue
 Align with a powerful sponsor
 Revise existing or develop new standards
 Income, profitability, effectiveness, efficiency,
customer satisfaction
 Get an outside opinion
 Bring in consultants, customers, shareholders
Adapted from Kotter 1996

27. 33
2. Form a powerful coalition
 Ensure shared understanding
& right attitude
 Ability to share vision
 Trustworthy
 Commitment to means and end
 Has access to necessary
resources
 Formal position power
 Expertise
 Reputation
 Leadership
 Informal network position
But look out for
people with big
egos or
“snakes”
Beer 2002, Kotter 1996
The small
team that will
lead the
change

28. 34
Who has informal power in the organization?
Teigland 2003

29. 35
3. Create (and operationalize) a vision
 Create the vision
 To direct the change effort
 To coordinate across and outside the
organization
 Develop a strategy to achieve the
vision (operationalize)
 To engage people through participation
 To find their “passion”
 To overcome forces for stability
Adapted from Kotter 1996

30. 36
4. Communicate the vision
 How?
 Use multiple channels
 Regularly to reconfirm
 What?
 Keep it simple
 Use metaphors and success
stories
 Who?
 Walk the talk
 Identify key opinion leadersBut listen as well!!
Adapted from Kotter 1996

31. Information + Involvement
to build commitment & change
Increasing
Commitment
Awareness
of desired change
Understanding
of change direction
Translation
to the work setting
Commitment
to personal change
Internalization
of new behavior
“Yeah, I saw the
memo.”
“I understand
where we need to
go.”
“I know how we
need to do our jobs
differently.”
“OK, I’m ready to
do it the new way.”
“This is the way we do
things here.”
Stages of Individual
Behavior Change
Information with some
involvement sufficient here
Significant
involvement
needed
Schreiber

32. 38
5. Empower others to act on the vision
1. Does the organizational
culture encourage
individuals to act?
2.Do people have
the necessary
resources to act?
3.Do people have the
appropriate skills and
training to act?
4.Do people have
the authority to act?
5.Are the organizational
structure & systems
aligned with the vision?
Adapted from Kotter 1996

33. Barriers to empowerment
39Kotter 1996

34. 40
6. Plan for and create short-term wins
1. Create
obtainable
targets
2. Encourage
& convince
people that
targets can be
reached
3. Recognize
and reward
“winners”
Communicate
the wins
Adapted from Kotter 1996

35. 41
7. Consolidate improvements and
produce more change
Change
Project 1
Change
Project 2
Change
Project 3
Time
Scope of
change
Adapted from Kotter 1996

36. 42
8. Anchor new approaches
Company culture
Physical
artifacts
activities and routines
Underlying values,
assumptions,
beliefs, and expectations
Intangible
Adapted from Kotter 1996

37. 43
Kotter’s eight-stage process for change
Kotter 1996
2. Form a powerful guiding coalition
1. Establish a sense of urgency
3. Create a vision
8. Anchor new approaches
4. Communicate the vision
5. Empower others to act on the vision
6. Plan for and create short-term wins
7. Consolidate improvements and produce more change

38. Involving people in the change
45
http://www.mckinseyquarterly.com/What successful transformations share

39. People don’t resist change –
they resist being changed
From recipients of change to
co-creators of change

40. 49
Your Iceberg
 Reflect on your organization. What is your iceberg and what
does it look like? Is it melting? Does it have fissures?
 Is there a clear and simple message about the future and what
it may look like that is understood by all?
 Are you and your team most concerned with success in
catching fish today or planning for what may come tomorrow?
 What does your team look like? Reflect on who the Nonos,
Freds, Alices, Buddies, etc. are. How well balanced is it in
terms of having the “right” characters? Do you have
enough/too many/too few? Who will adopt the necessary roles
if no one else is doing it?
 What do you have to do to lead/encourage/support the people
'stepping up'? What can you do about the Nonos?

41. 50
Agenda
Morning
1. What is Change?
2. Kotter’s 8 Stages
3. Groupwork
Going Forward
Afternoon
1. Live Project Groupwork
2. Some Change Tools

42. 55
In your groups …..
Choosing the Change Project

43. 56
Criteria for the Change Project
 It should involve a real organizational issue or
challenge that at least one group member is
currently facing in his/her part of your organization.
 It should lead to a real change in your organization.
 The change should lead to improved business
performance that is both identifiable and
measurable.
 The project should have a stakeholder.
”This is something we would like to do!!”

44. 57
Change focus
Burnes 2004
Small-scale change
Large-scale change
Rapid changeSlow change
Level: The organization
Focus: Structures & processes
Level: The organization
Focus: Culture
Level: Individual/group
Focus: Tasks & procedures
Level: Individual/group
Focus: Attitudes/behavior

45. 58
Better to choose
a more
narrow, specific
focus!

46. 59
You will present
your projects
in Module 3

47. 60
Discuss in your groups today
 What are the current & future pressures for the change?
 Internal
 External (PESTEL)
 What is the sense of urgency for the change?
 For whom? How urgent?
 What can be done to strengthen the sense of urgency?
 What is the vision or real change that your project will lead to?
 How will the change improve business performance?
 Identifiable? Measurable?
 How will you organize your work during the program?
 How will your coordinate with your Stakeholder?

48. 61
Kotter’s eight-stage process for change
Kotter 1996
2. Form a powerful guiding coalition
1. Establish a sense of urgency
3. Create a vision
8. Anchor new approaches
4. Communicate the vision
5. Empower others to act on the vision
6. Plan for and create short-term wins
7. Consolidate improvements and produce more change

49. 62
Prioritize stakeholders
Low High
Low
High
Level of interest
•Visibility
•Importance
•Priority
Scholes 1998
Power
•Formal
•Informal
Keep
informed
Key
players
Minimal
effort
Keep
satisfied
http://www.mindtools.com/pages
/article/newPPM_07.htm

50. 63
Stakeholder analysis
Stakeholder Block Let Help Make Diagnosis of
stakeholder
position
Recommended action
to move to desired
position
Adapted from Nader, NTL
Current (C) & Desired (D) position regarding the Change

51. Involving people in the change
64
http://www.mckinseyquarterly.com/What successful transformations share

52. People don’t resist change –
they resist being changed
From recipients of change to
co-creators of change

53. 67
Today’s Coaching Session
 Each Group will present its Change Project to the
others, max 10 minute presentation
 One Review Group will be appointed to lead the
following discussion, max 5 minutes:
 How well does the Project fulfill the Change Project
criteria?
 What challenges are foreseen for the Project?
 How could these challenges be overcome?
 Promote learning through “Assess, Challenge,
Support”!

54. 68
Your Live Project Iceberg
 Reflect on your live project. What is the iceberg and what
does it look like? Is it melting? Does it have fissures?
 What is the clear and simple message about the future that
may be understood by all?
 What does the set of stakeholders look like? Reflect on
who the NoNos, Freds, Alices, Buddies, etc. are. Do you
have enough/too many/too few? Who will adopt the
necessary roles if no one else is doing it?
 What do you have to do to lead/encourage/support the
people 'stepping up'? What can you do about the NoNos?

55. 69
Agenda
Morning
1. What is Change?
2. Kotter’s 8 Stages
3. Groupwork
Going Forward
Afternoon
1. Live Project Groupwork
2. Some Change Tools

56. 70
Tools to achieve the “transformation”
1. Conduct stakeholder analysis
2. Develop clear project charter and roll out plan
3. Develop communication plan
4. Conduct risk analysis
5. Develop measurement plan

57. 87
Morning
1. What is Change?
2. Kotter’s 8 Stages
3. Groupwork
Afternoon
1. Live Project Groupwork
2. Some Change Tools
Agenda
Going Forward

58. Timeline
 Sept 9 (8:00 am Stockholm): Change project statement, should
be agreed with Project Stakeholder
 Oct 7 (8:00 am Stockholm): Progress report
 Timeline to completion
 Progress to date, what achieved (Kotter, frameworks, method, sources,
etc.)
 Issues/challenges outstanding with project
 Ideas to overcome issues/challenges
 Update on communication with Stakeholder
 Module 2: Respond to feedback and develop implementation
plan
 Nov 22 (8:00 am Stockholm): Progress report
 Communication plan
 Risk analysis
 Issues / challenges and how to overcome
 Update on communication with Stakeholder
 Dec 5: Module 3 – presentation

59. 89
Moving forward
 Coordinate with Stakeholder and invite to Module 3
presentation
 Provide brief update Friday morning on Thursday
evening’s progress (remember Kotter’s 8 stages!)
 Prepare and submit inter-module progress report
 By email
 Module 2
 Scheduled working time during Module 2
 Each team submits its presentation
● By email
 Prepare and submit inter-module progress report
 Submit by email

60. 90
Moving forward
 Coordinate with Stakeholder and invite to Module 3
presentation
 Provide brief update Friday morning on Thursday
evening’s progress (remember Kotter’s 8 stages!)
 Prepare and submit inter-module progress report
 By email
 Module 2
 Scheduled working time during Module 2
 Each team submits its presentation
● By email
 Prepare and submit inter-module progress report
 Submit by email

61. 92
Module 3 - Final Presentation
 Each team has 15 minutes maximum to present its Change
Project, including the following (in ppt):
● Purpose and rationale for change
● Use of tools, eg stakeholder analysis, risk analysis, etc.
● Measuring impact and preliminary results
● Plan for moving forward
● Lessons learned
 One team will then lead feedback to the Presenting Team for
10 minutes maximum
● The purpose of this feedback is to spur lively debate and help advance
each Change Project as much as possible
 Faculty and Stakeholders will provide further comments
 Each team submits its presentation
● By email

62. 93
See you in Module 3!!
Good luck with your projects!!