Ce diaporama a bien été signalé.
Le téléchargement de votre SlideShare est en cours. ×

Changing behaviors to_drive_growth_and_performance_pov

Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Prochain SlideShare
Change management
Change management
Chargement dans…3
×

Consultez-les par la suite

1 sur 8 Publicité
Publicité

Plus De Contenu Connexe

Diaporamas pour vous (20)

Les utilisateurs ont également aimé (20)

Publicité

Similaire à Changing behaviors to_drive_growth_and_performance_pov (20)

Changing behaviors to_drive_growth_and_performance_pov

  1. 1. Organization Transformation  POINT OF VIEW CHANGING BEHAVIORS TO DRIVE GROWTH AND PERFORMANCE A ROADMAP TO OVERCOMING RESISTANCE AND ACHIEVING SUCCESSFUL TRANSFORMATION For most executives and senior leaders today, the consequences of not transforming organizations at the right moment or of managing change poorly are much more visible and more widely understood. Once-successful companies considered “too big to fail” have done just that, by not addressing performance issues in time, by sticking to a flawed strategy in the face of disappointing results or by simply not embedding the required behaviors to deliver sustainable results.
  2. 2. Copyright © 2013 Oliver Wyman 2 OVERCOMING OBSTACLES TO CHANGE The first thing leaders of change have to realize, as they prepare to turn everybody’s life upside down, is this one simple truth: for the foreseeable future nobody is going to love them for what they’re about to do. For most people, the notion of dramatic change is downright scary. The natural response is resistance; it might not be obvious or overt, but rest assured it’s there. The depth of this resistance bears a direct correlation to the scope and intensity of the change at hand. Because resistance is so common, learning to overcome it is crucial to managing change at every level. The issues inherent in transitions present problems and challenges no CEO can handle without the active support of senior executives and middle managers up and down the line. – David A. Nadler Champions of Change, How CEOs and their Companies are Mastering the Skills of Radical Change ACCELERATING SUCCESSFUL BEHAVIOR CHANGE Why is it that about two-thirds of major organizational transformations still fail to achieve their stated goals, despite the reality that “ability to lead change” is now a required core competency in most leaders’ job descriptions? From experience, we’ve learned that most efforts derail because people are not fully engaged in, or committed to the transformation and don’t adopt new ways of working that will sustain changes for the long term. When we analyze change efforts that are in trouble, what we see most often is that one or more of the following has been forgotten or taken for granted: SETTING CLEAR AND SHARED OBJECTIVES FOR THE TRANSFORMATION It’s difficult to motivate people to support – let alone drive – a trans­formation effort if they’re at all fuzzy about what the organization is trying to achieve, what the desired end state looks like, and why they might care about getting there. ENGAGING LEADERS IN THE CHANGE PROCESS Failure of leaders at all levels to engage their teams and act as role models for the change is a sure path to disappointment. Any whiff of dissension or misalignment among the senior leaders over the fundamental strategic direction of the change – as opposed to the details of how to get there – will encourage people to retreat into wait-and-see mode and ultimately delay the application of new ways of working. OVERCOMING RESISTANCE TO CHANGE Change is a journey – creating an emotional connection to the future is an essential ingredient to initiate movement. Likewise, providing tools, training and time while building awareness, understanding and ultimately commitment, are all keys to overcoming resistance. PERSISTENCE, FOLLOW THROUGH, AND ACCOUNTABILITY Some leaders confuse the direction to “make it so” with an actual transformation. Many leaders vastly underestimate the resources, time, and effort that will be required to execute well. Unclear accountability, insufficient attention to managing risks, and lack of regular monitoring against clear targets are all factors we see at play in organizations that are struggling to execute or sustain change. Thenecessityofpayingattentiontoalltheseissuesdoesnotreallycome asasurprisetoexecutiveswhenweidentifytheweaknesseswesee.The challengeisthatmostwerealreadyworkingflat-outontheirdayjobswhen thetransformationeffortwasaddedintothemix.Tryingtomanageboth duringamajortransformation–lastingmonthsorevenyears–isnota sustainableproposition.
  3. 3. Copyright © 2013 Oliver Wyman 3 CHANGING BEHAVIORS TO CLOSE THE PERFORMANCE GAP AND ACHIEVE SUSTAINABLE RESULTS Organization transformation can be a messy and difficult journey – especially because it typically requires people to join a journey, not of their choosing. In our experience, the likelihood of staying on course and reaching the destination goes up dramatically if leaders focus on six key elements on which they must personally engage. We know that at the launch of any major transformation effort, productivity will immediately go down as people turn their attention to mentally processing what’s happening and what it might mean for them. A disciplined, well-executed change plan can make this gap smaller and close it faster. It can minimize the transition costs – in terms of actual funds expended and time before benefits are realized – and also the soft costs of disruption to customers, employees, and shareholders...clearly elements of success. 1. ESTABLISH THE VISION AND ARTICULATE THE CASE FOR CHANGE A clear view to where the organization is heading and a strong business rationale is essential. The fact that this mantra is repeated in every discussion of change doesn’t make it any easier to do. Leaders are often very clear in their own minds why the organization must move in different directions, but struggle to put it into terms that will resonate with others. What is the key business challenge the transformation is addressing? Outdated strategic positioning coupled with increased threats from new competitors? Costs going up while revenue stays flat? Exodus of key talent? Loss of ability to innovate? Whatever the reason driving the need to transform, it’s important to set measurable (and achievable) targets that ground the change in something concrete. Doing so helps people to see the destination, and understand how they’ll know when they’ve reached it and clearly links the vision to the expected benefits from the perspective of the shareholders, the company and the employees. Although change can be complex, using the power of leaders communicating and cascading to leaders, with patience, persistence and commitment, top leaders can share and establish the case for change with hundreds of middle and front line managers who can ultimately reach the front line employees. EXHIBIT 1: DEFINING SUCCESS TIME Response to change if transition is well-managed The typical response to change PRODUCTIVITY Source: Adapted from William Bridges’ Managing Transitions “Transformation is a strategic imperative. It is the CEO’s job to manage the transformation. To speed it up if necessary. It means overcoming any resistance to change in the organization. It means disrupting the status quo. The CEO has to communicate his vision, and to keep everybody on board.” SCOTT DAVIS CEO, UPS
  4. 4. Copyright © 2013 Oliver Wyman 4 EXHIBIT 2: A SENIOR TEAM THAT THINKS AND ACTS AS A TEAM IS A MUST-HAVE FOR SUCCESS CEO LEADING THE CHARGE EXECUTIVE TEAM LEADING THE CHARGE DECIDING TO PULL THE TRIGGER •• Making sure you have a license for change (board approval, ...) •• Confirming your hunches on the vision, case for change and future state EMBARKING THE EXECUTIVE TEAM •• Building the case for change (why, what, how, when) •• Building the target blueprint •• Taking ownership of the change •• Adjusting the team as/ if necessary MOBILIZING THE LEADERSHIP COMMUNITY •• Communicating the case for change •• Presenting the new organization principles •• Ensuring buy-in, leading by example •• Addressing pockets of resistance •• Engaging leaders in thematic workstreams EMBARKING THE WHOLE FIRM •• Rolling out the new organization •• Leading change (envisioning, energizing, enabling) •• Providing guidance and coaching •• Monitoring and managing change 2. ENGAGE AND DEVELOP AN ALIGNED LEADERSHIP COMMUNITY A cornerstone of the foundation is the engagement strategy. Once again, skipping steps in this process in the interest of speed often leads to circling back and time wasted. Engagement starts with a shared vision and a definition of the future state. Then, there needs to be a clearly defined mandate with the associated resources and a clear view of the expected returns. Next up is gaining alignment among the senior leaders who will play key roles in making change happen and/or influence how others will view it. Gradually the circle of engagement widens to the larger leadership community. Time spent with front-line managers in advance of broader communication is a wise investment. Employees will listen to messages from the top, but then turn to their direct managers to understand what it really means to them. If managers are taken by surprise, the risk is they’ll speculate wildly or wonder out loud whether senior management knows what they’re doing. Briefed in advance and equipped to answer questions, they can be supportive change agents. “In an uncertain environment, people naturally look for leadership. They are looking for a vision. If you are honest with them and if you consistently walk the talk, the organization will start to believe.” PETER CUNEO former CEO, Marvel Entertainment
  5. 5. Copyright © 2013 Oliver Wyman 5 3. TAKE A SYSTEMATIC PERSPECTIVE LINKING STRATEGY AND ORGANIZATION We think of organizations as systems – where strategy in response to external drivers ultimately defines organizational performance. In a high-performing organization, there is a high degree of congruence or “fit” among the major building blocks. work. While some organization systems are more favorable for cost reduction and operational efficiency, others are capable of unleashing the potential for growth. Whenever anything changes in any one of these – the environment, the strategy, the people, the work, or the formal and informal organization – the whole system goes out of whack and performance suffers. Tinkering with one piece without analyzing the impact on the whole can be dangerous. EXHIBIT 3: THE CONGRUENCE MODEL INTEGRATES THE VARIOUS ELEMENTS OF TRANSFORMATIONAL CHANGE Strategy Work Formal organization Performance Informal organization People State at departure, constraints, resources and environment OUTPUT Desired state, behaviors and operating model and performance INPUT Note: Congruence Model: Tushman/Nadler “With Airbus’ current decision making process,youcaneasily lose 3-6 months. We want to recreate the sense of operating as multifunctional teams on a local level.” FABRICE BREGIER CEO, Airbus 4. IDENTIFY DRIVERS TO SHAPE BEHAVIOR To change behavior, it’s important to understand its roots in the organization. Behavior is shaped by organizational systems, policies, and practices, as well as leaders’ behavior. Changing employee behavior requires changing those aspects of the organizational context that produce or “drive” the behavior – examples include: compensation, professional and career development, performance metrics, and the mechanics of recognition and reward. Considering these drivers and the extent to which each driver supports or inhibits the desired behavior is key to aligning desired behaviors to the vision, future state and ultimately the desired performance outcomes.
  6. 6. Copyright © 2013 Oliver Wyman 6 “The leader must shift the culture, the employee mindset, from living with the status quo, to one that celebrates success.” JIM SKINNER former CEO, McDonald`s EXHIBIT 4: CULTURAL DIMENSIONS AND BEHAVIORS TO ALIGN WITH STRATEGIC PRIORITIES STRATEGIC WHAT PEOPLE FOCUS ON WORK HOW PEOPLE APPROACH THEIR WORK INTERPERSONAL HOW PEOPLE WORK TOGETHER External Orientation •• Competitor focus •• Customer focus Corporate Responsibility •• Corporate responsibility Process excellence •• Cost sensitivity •• Discipline/rigor •• Quality/excellence Growth •• Partnerships •• Acquisitions Autonomy •• Independence •• Uniqueness Adaptability •• Flexibility/adaptability Entrepreneurial spirit •• Entrepreneurship •• Innovation •• Creativity Learning Orientation •• Learning orientation Future Orientation •• Future orientation Enthusiasm •• Energy •• Optimism Bias for Action •• Calculated Risk-taking •• Speed •• Aggressiveness •• Results orientation Personal Responsibility •• Personal responsibility Cooperation •• Cross-unit collabration •• Teamwork •• Collegiality Informality •• Fun •• Informality Ehtics •• Integrity •• Respect •• Acceptance of diversity Openess •• Open debate/courage •• Openess/honesty •• Trust Diplomacy •• Diplomacy 5. ANTICIPATE AND MANAGE RISK ­– MANAGING THE EMOTIONAL RESPONSE Leaders are continually surprised by others’ “irrational” responses to change – and sometimes also by their own. Even when people intellectually accept that transformation is necessary for the organization, there are darker forces at play that should not be ignored. They fear loss of control as they try to imagine themselves in an unfamiliar context. They suffer anxiety about the future and how it will impact them personally. The power games ramp up as people jockey for position or try to protect themselves and their teams by not taking sides or showing all their cards too soon. Transformation leaders should expect to spend considerable time managing and shaping these dynamics. Whether it is garnering support from the informal power groups, motivating constructive behaviors or simply working with their own teams to reassure key people, it will be important to acknowledge these natural responses while being clear on the expectation that they will be handled appropriately, to reassure without sugar-coating reality, and to constantly remind people of the case for change and the end state vision. 6. MANAGE THE PACE OF TRANSFORMATION The team needs to understand what time pressures they are under and leaders need to think carefully about how pacing and sequencing change. What is the right balance between speed-at-all-costs and thoughtful execution? At what point does a motivating sense of urgency tip over into burnout, low morale, and sloppy work?
  7. 7. Copyright © 2013 Oliver Wyman 7 EXHIBIT 5: MANAGING THE PACE OF TRANSFORMATION TO ENSURE SUSTAINABLE SUCCESS Engage leadership Executive alignment on vision, strategy, desired culture and behaviors Assess gap between current and desired behaviors Audit the key drivers of the desired behaviors Design targeted interventions to change drivers Prepare change plan Transition Change monitoring and adjustments Stabilization, light monitoring and continuous improvement TRANSITION IMPROVEMENTFOUNDATION In setting the pace of change, it’s important to remember that there are steps to be taken in logical order. Trying to jump to the middle without laying the foundation rarely works. It’s also dangerous to think that the transformation is complete when the transition is over. Neglecting to build in time to adequately monitor what’s happening, to adjust plans and to continuously improve are also errors shared by leaders in a hurry to see the results of change – this generally backfires and makes sustainability virtually impossible. TAKING ACTION The reality is that senior leaders really have two jobs for the duration of any given transformation. One role should be focused on short-term objectives and day-to-day operations. The other focused on engaging people, overcoming resistance, changing behaviors and driving the strategic change agenda. Here are a few questions that CEOs and senior executives must address to change behaviors and drive sustainable results: 1. Have we created a compelling case for change and communicated the vision of the future? 2. Have we taken the time as a leadership team to ensure we’re aligned and committed to the process? 3. Do we understand our role as change leaders and are we prepared to help our employees overcome their resistance? 4. Have we identified the necessary behaviors and the drivers that will make us successful? 5. Are we managing the transition so the desired behaviors are encouraged and rewarded and there is no chance of reverting to the status quo? Armed with answers to these questions, we believe leaders will be able to achieve their expected results faster, in a manner that reduces risk and with the behaviors that will support growth and sustain performance in the long term.
  8. 8. Copyright © 2013 Oliver Wyman All rights reserved. This report may not be reproduced or redistributed, in whole or in part, without the written permission of Oliver Wyman and Oliver Wyman accepts no liability whatsoever for the actions of third parties in this respect. The information and opinions in this report were prepared by Oliver Wyman. This report is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accountants, tax, legal or financial advisors. Oliver Wyman has made every effort to use reliable, up-to-date and comprehensive information and analysis, but all information is provided without warranty of any kind, express or implied. Oliver Wyman disclaims any responsibility to update the information or conclusions in this report. Oliver Wyman accepts no liability for any loss arising from any action taken or refrained from as a result of information contained in this report or any reports or sources of information referred to herein, or for any consequential, special or similar damages even if advised of the possibility of such damages. The report is not an offer to buy or sell securities or a solicitation of an offer to buy or sell securities. This report may not be sold without the written consent of Oliver Wyman. www.oliverwyman.com OLIVER WYMAN With offices in 50+ cities across 25 countries, Oliver Wyman is a leading global management consulting firm that combines deep industry knowledge with specialized expertise in strategy, operations, risk management and organization transformation. The firm’s 3,000 professionals help clients optimize their businesses, improve their operations and risk profile and accelerate their organizational performance to seize the most attractive opportunities. The firm is part of Marsh McLennan Companies. ORGANIZATION TRANSFORMATION PRACTICE Oliver Wyman’s Organization Transformation practice works with C-suite leaders and business unit executives to design and implement large-scale transformation across the enterprise. To achieve a real and lasting impact, we offer consulting services throughout the entire transformation process, including strategy execution, organizational review, implementation support, and attainment of measurable results. For more information please contact: LAURENT THOMAS laurent.thomas@oliverwyman.com SCOTT DURIE scott.durie@oliverwyman.com

×