Intel Corporate Change Agent

Innovation and Change Management:

“Reflections of a
Corporate Change Agent”

Richard Platt
Senior Instructor Innovation Methods
Intel Corporation

26 June 2006

Page 1
Researcher/Author: Richard Platt | Intel Corporation

Innovation: Engine of Economic Growth
Business is Darwinian
o “Survival of the fittest” → Evolve or your species dies out
o “Innovate or Die” → John Kao

Relevant for ALL companies
o From the local shoe store to the automotive manufacturer, to the hi-
tech firm, no company is immune or can escape this reality

Page 2

Organizational Barriers
Organizational Arrogance: “overbearing pride evidenced by a superior
manner toward inferiors”
» Typified by the attitude of: “We know innovation better than anyone else, we lead the
industry”

Resistance to change – Clinging to old standards, resist new ideas, culture of
resistance
Threats and fears – Others pose threat, fear of competition, lack of trust
Lack of time or interest – Constant interruptions, unwilling to invest time
Corporate atmosphere/Political maneuvering – Lack of cooperative efforts,
stove-piped approach to holistic solutions
Continuity – More convenient to make incremental changes, significant gains
believed to be unachievable
Rush to results – Failure to invest appropriate time. Ideas too quickly rejected
No competitive pressure – Necessity is the mother of invention
Lack of opportunity for partnerships with other organizations

Page 3

The Dark Side of Success
Individual and Organizational Challenge of the inevitable
Downward spiral of Repeated Successes
Repeated Successes

Attitude of “we can do no wrong”

Arrogance

Complacency

Decline

Basic Guideline: Honesty with oneself and NEVER, EVER believe your own PR

Page 4

What are we up against?

Get ready to run the
corporate gauntlet
Innovative
Concept

The corporate structure and its immune system (ALL companies have it)
Page 5

Change Management Iceberg
(according to Wilfried Krüger)

Top of the Iceberg:
o Most managers only consider
the top
Below the Surface:
o Management of Perceptions and
Beliefs
o Power and Politics Management

People Involved in Change
Opponents
o
Promoters
o
Hidden Opponents
o
Potential Promoters
o

Page 6

Four Main Reasons for Resistance to Change
(according to Kotter and Schlesinger [1979])
1. Parochial self-interest:
Some people are more concerned with the implication of the change
o
themselves and how it may affect their own interests rather than
considering the effects for the success of the business
2. Misunderstanding:
Communication problems, inadequate information
o
3. Low tolerance of Change:
Certain people are very keen on feeling secure and having stability in
o
their work
4. Different assessments of the situation:
Some employees may disagree with the reasons for the change and with
o
the advantages/disadvantages of the proposed change

Best Advice: “Some people will get it about what you do and some wont,
work around those that don’t” – Senior Intel VP

Page 7

Are you ready for the Challenge?
→ →
Conviction Courage Capability
Firm belief that Willingness to “do the The ability to act
right thing” and take on effectively on
a) Change is
the necessary personal commitments…a
needed, and and professional risks matter of talent,
b) The change is and sacrifices…a ‘gut” skills, experience
emotional commitment and support
right …an
Intellectual
commitment
Yourself

Others
Around and
Below You
Top
Management

Page 8

Real Change Leaders / Maverick Champions
Real Change Leaders / Maverick Champions have:
• A No Excuses mind-set
• More focus on changing leadership styles depending on the situation, learning
as they go
• Broad-based change efforts are catalyzed by Maverick Champion’s creative
ideas
• Real Change Leaders / Maverick Champions act within the scope that they can
reach and often beyond the normal bounds of their authority
o They follow the Jesuit belief that it is easier to ask forgiveness than permission

Maverick Champions:
• Invent new products
• Discover new markets
• Find new resources
• Land new accounts
• Create new approaches

Excellent institutions / High-performing companies nourish and
encourage them and capitalize on their unique insights and gifts
Source: “Real Change Leaders”, Jon R. Katzenbach and the RCL Team. 1999

Page 9

Driving the Innovation Agenda Using a
Team or a Maverick Champion
1. Real Teams are best when:
o Potential for collective performance is high
o The solution and approach are unclear
o You have the time and skills to build a real team
o Are essential for broad-based change, assuming organizational commitment to move
forward with the change

2. Single-leader working groups are best when:
o Time and Efficiency are critical
o The task/solution are straight forward
o Their potential for high collective or joint performance and skill enhancement is not high

3. Maverick Champions are best when:
o You want individual attention
o Creativity, and accountability
o And when individual expertise is more important than multi-person skills
o When you need to pilot broad-based, behavioral change to prove the value proposition

Source: “Real Change Leaders”, Jon R. Katzenbach and the RCL Team. 1999

Page 10

6 Approaches to Deal with Resistance
(according to Kotter and Schlesinger [1979])

1. Education and Communication

2. Participation and Involvement

3. Facilitation and Support

4. Negotiation and Agreement

5. Manipulation and Co-Option

6. Explicit and Implicit Coercion

Page 11

Organizational Change Model Formula
Powerful tool for quick 1st
impression of the possibilities and
conditions to change an organization

Important Note: All 3 components
must be present to overcome the
resistance to change:
o Dissatisfaction with the present
situation
o A Vision of what is possible in the
future
o Achievable First steps towards
reaching that vision

If any of these are zero or near zero,
then the possibility of change will
also be near zero and the resistance
to change will dominate

Page 12

Framework for Changing Minds
LEGEND:
Type of Idea: Concept / Story / theory / skill
Desired Content: The mind change being sought
Counter-content: The idea(s) that run counter to the desired content
Type of Audience/Arena: Large/small; diverse/uniform
Format: Intelligences, media, symbol systems by which content is
conveyed
Levers of change / tipping point factors: The most germane of the
seven levers* that determine whether a tipping point is reached

Seven Change Levers: Reason, Research, Resonance,
Redescription, Resources and Rewards, Real World Events and
Resistances
Source: “Changing Minds – The Art and Science of Changing our Own and Other People’s Minds”, Howard Gardner. Pp 243, 2004

Page 13

Checklist for Innovators
1. Set a noble goal for oneself – in service to others, not your own ego
2. Develop a Plan and Execute it – start w/ the end in mind and step back
from it step-by-step

3. Develop problem solving skills. – TRIZ, “Problem Finding”, interpersonal
conflict management etc…
4. Passion for Creative / Innovative Work – This will carry you beyond the
capabilities of the normative attitude of “this is just a job”
5. “Hard Knock” Resistance – Know how to fight (appropriately) for your
ideas and win – this is a skill that is developed by experience
6. Drive For and Get Intermediate results – Do whatever is legally necessary
and appropriate for acceptance and adoption to take place.

Source: Altshuller, G. S., Vertkin, I. M., How to Become a Heretic. Life Strategy of a Creative Person, Petrozavodsk,
Karelia, 1991, Pp 11. (Russian)

Page 14

The Champion ‘Must Do’ List
Gaining Support: Change Agent
READ THE LANDSCAPE IDENTIFY STAKEHOLDERS
Identify the most important
Identify opponents
players and
and allies
target groups for a campaign

Desired Results

Identify how to influence Investigate the balance
each target group of power involved in the
issue
BUILD CONSENSUS ALIGN OBJECTIVES

Make the “Shift” in Thinking About Your Role

Page 15

Guidelines for Champions
Mantra: “Results” + “Constantly seek the ideal final
result.”
Performance Discipline
1. Set goals and measures that make sense to customers and
employees
2. Be the demanding boss who walks the talk
3. Reward those who earn it and punish those that deserve it
4. Raise the bar in the areas that are lagging
5. Reward that which you are demanding
6. Tie into already established programs and support them in
being successful

Source: “Real Change Leaders”, Jon R. Katzenbach and the RCL Team

Page 16

“ Art of the Strategist ” -10 Basic Principles
1. Commit Fully to a Definite Objective:
Define your goals. Commit to them publicly. Hold on and hold fast !
o
2. Seize the Initiative and maintain it:
Analyze thoroughly. Choose when and where to move forward. Don’t wait for perfect conditions, Act.
o
Then keep the pressure on.
3. Economize to mass resources:
Determine your competitive advantages. Concentrate your $$, people, time, and influence
o
accordingly. Cut elsewhere, ruthlessly if necessary. Take Risks
4. Use Strategic Positioning:
Locate your power spot – the point where if can win your argument then you will win everywhere.
o
5. Do the Unexpected:
Employ secrecy, speed and boldness. Surprise the current status quo argument with an
o
uncharacteristic or brand-new move. Attempt the impossible
6. Keep things simple:
Understand that complexity kills, Simplify your org chart
o
7. Prepare simultaneous alternatives:
Put backups into your strategic plan. Bypass obstacles by using multiple approaches
o
8. Take the indirect route to your objective;
Study the variables of influence, (see Seven Levers). Sidestep obstacles by doing what others cannot
o
do
9. Practice Timing and Sequencing:
Do the Right Thing, but not at the Wrong Time. Separate one-shots from on-going actions
o
10. Exploit Your Success:
Don’t Quit before the game is over. Measure your progress. Build on and promote your achievements
o

Page 17

Using Values as a Guide
At Intel we guide our behavior by the Intel Values: these may not be at your
company – but you can use them too
Subset of the Intel Values
Risk Taking: Fostering Innovation and Creative Thinking; Embracing Change
and Challenging the Status Quo; Listening to all ideas and viewpoints, Learning
from our mistakes.
Quality: Continuously learn, develop and improve
Great Place to Work: Be open and direct; Promote a challenging work
environment that develops the our diverse workforce.
Discipline: Make and meet commitments; pay attention to detail.
Results Orientation: Set challenging and competitive goals; focus on output;
assume responsibility; constructively confront and solve problems; execute
flawlessly
Customer Orientation: Listen and respond to our customers, suppliers and
stakeholders; Clearly communicate mutual expectations; Deliver innovative and
competitive products and services; Excel at customer satisfaction

Don’t be afraid to fail, but fail quickly. Don’t be afraid to go out on a limb. That is where the fruit is.
But, be careful, that is also where the nuts are!

Page 18

Summary of Results
Focus Areas of Problem Statements Product Development
Manufacturing
Pathfinding
R&D / TD

$XXXXXXXXXXX
Total cost savings of solutions generated

Keys to Buy-in and Support:

o Get Early Successes they are the Key to buy-in. State what you are going to
do and deliver it.
o Understate and Over-perform towards objectives
o Tie metrics and results to the bottom line, must be measured in $$
o Focus on constant improvement of training materials and manage
perception
o Understand why others failed in pushing similar agendas, Listen to those
that have preceded you and those who offer unsolicited advice,
o It can only help to refine your positioning statements
o Actively pursue Senior management approval / support.
o When challenging the status quo you will need the help

Page 19

BACKUP

Page 20

Typical Managerial types:
“Budget Beaters” and “Participative Managers”
Budget Beaters Participative Managers
Command-and-Control managers who Other end of the spectrum, their problem
is not being tough enough
set and make tight annual budgets no
matter what Their people like them and feel good
about being involved
Tend to be “Corporate Careerists”

Over time the problems they encounter:
1. Take a long time to generate results
1. Focusing on climbing the corporate ladder
2. Business performance erodes due to a lack of
can be seen at the expense of their people
discipline hitting the #’s
2. Not getting the better people to work for 3. Unable to make the tough people-decisions.
them, (see #1 above)
4. Tendency to focus on the feelings of people,
3. Not extracting initiative and innovative ideas instead of what is in the best interests of the
customers and the shareholders of the
from their people
company
4. Not delivering more than cost reduction
results

Source: “Real Change Leaders”, Jon R. Katzenbach and the RCL Team

Page 21

The Performance of Real Teams vs.
Single Leader Groups

Performance
Higher driven

Performance
Real
Team
Collective Personal
Work products Growth
Leader
driven

Single
Leader
Group
Individual
Efficiency
assignments

Faster Performance
Source: Adapted from “Real Change Leaders”, Jon R. Katzenbach and the RCL Team. 1999

Page 22

Example Template for Changing
Minds
Charles Darwin’s Evolutionary Revolution:
Type of Idea: Theory
Desired Content: Origin of species through natural selection over
long periods of time
Counter-content: Religious accounts, intuitive theories of
creationism
Type of Audience/Arena: Initially small and uniform, larger and
more diverse
Format: Linguistic argument in book form, corroborating evidence
in fossils, flora and fauna
Levers of change / tipping point factors: Reason, research,
representational redescription, overcoming resistances

Source: “Changing Minds – The Art and Science of Changing our Own and Other People’s Minds”, Howard Gardner. Pp 243, 2004

Page 23

Example: Challenge & Commitment Map
Conviction → Courage
→
Capability
Firm belief that Willingness to “do the The ability to act
right thing” and take on effectively on
a) Change is
the necessary personal commitments…a
needed, and and professional risks matter of talent,
b) The change is and sacrifices…a ‘gut” skills, experience
emotional commitment and support
right …an
Intellectual
commitment
+ 20 years of
John Olden - sees no big + Good record of taking
experience
(purchasing dept. issues in product on tough projects (dept
head; critical to design processes consolidation in 2003) + Knows vendors
success of product (sees main + Always willing to speak capabilities intimately
design problem as sales) his mind (reamed CEO - Probably doesn’t
reengineering team) -Doesn’t see big for awarding Acme understand
role for purchasing contract) reengineering
in improving concept and
design process mechanics
- May think entire
reengineering
effort is just a fad
pushed by
someone for their
own glory

In this situation some fact sharing (to build conviction) and exposure to reengineering (to build capability) would go a long
way to build Jim’s commitment
Page 24

The Champion’s Attitude: Risk Taking
Leads by example:
o Takes steps that no one else would attempt, fails fast, learns quick, spreads
excitement, infectious attitude towards the task at hand.
o Visualizes the end game, shares the results, offers help with no expectations in
return.
o Above all, has integrity and morals to pursue the goals of the task at hand without
(permanent) damage to those around him.

Commitment: Foundation of a Champion
A champion’s traits can be thought of as a collection of values and
beliefs that are based upon theory, constant learning and most
importantly, the impressions of “life’s experiences” have had upon
one’s outlook.
o Constantly learning being that utilizes one’s experience.
o Constantly apply improvements to seek out the optimal path
o A true champion blends one’s life’s experience both good and bad, with the
optimized and perceived paths of those around him.

Champions take a path (refer to The Way within the Art of War) and
when choosing a path considers “ideality”.
Take advantage of the traits of other innovators and work with them if
possible

Page 25

References and Resources
“Real Change Leaders”, Jon R. Katzenbach and
the RCL Team. 1999
“Changing Minds – The Art and Science of
Changing our Own and Other People’s Minds”,
Howard Gardner. Pp 243, 2004
“The Art of the Strategist - 10 Essential Principles
for Leading Your Company to Victory”, William A.
Cohen, PhD, Major General, USAFR, Ret.
12Manage Website: http://www.12manage.com

Page 26

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