This newsletter describes the beginning of the change management industry in the early 1990s.

1. r{
,(
€APTURING A
By Sco?t Whelehqn
What is chonge rncn-
ogernenf, exoctly? Who
Ieods the lield & whql
does a leading practice
Iook like? In the first of
o 2-port series, CN-od-
dresses fhe first gues-
fion. ilexf month, we
protile s selection o!
Ieoding /irms in fhe
tield
Chonge monogemenl, con!... 2-3
Here & There ...................... 4-5
Morkeling ideos ..................... 6
On morketing & delivery .........7
Feedbock ....,,...8
U7. KEH}'EDY
ftN puslrcArrols
IttOVl NG IARGET: GHAHGE fiANAGEII,IENT
"Chqnge monogement" is everywhere, qnd finding its woy into o
growing number of consulting engogements of qll kinds. Ii's received
porticulor ottention qS.the key "soft-side" of business process reengi-
neering
- or whot's been missing in foiled BPR work, Cleorly, os mqny
services become commoditized, including technicol qspects ol BPR,
mostery ol humon ond orgqnizotionol dynomics of chonge will prove
criticoi to monogement consulting's future
More thqn semontics
Token literolly, "chonge monogement" oppeors to deline consulting,
Symmetrix chqirmon George Bennett is not olone in describing oll ol
his firm's work qs chonge monogement. But let's be more specific: it's q
holistic opproqch to implementing lorge-scole chonge thot integrotes
on orgqnizotion's strotegy ond processes with its people ond culture
How this tokes shope in on engqgement hos qs mony voriqtions os
there ore consuliing lirms. Deltq Consulting Group's Dovid Nodler ob-
serves thqt "most compqnies hove developed chqnge mqnogement qs
on implementqtion qrm of their core content proctice," ond it lollows
thqt chqnge mqnqgement qt o strotegy firm meons something very
dilferent from chonge mqnogement of o systems firm
The chonge mqnqgement process con.begin os broodly qs strotegic
visioning ond communicqtion. It might qddress resisionce points, both
culturql ond individuql, explore methods to generote commiiment ond
elicit desired behqviors, qnd qlign plonned chqnge to the
orgonizotion's structure ond HR systems such os opproisol ond rewqrd.
Bennett feels chqnge mqnogement "hqs lots to do with mqnqging the
psychology of qn orgonizotion,'qnd hence the term's qssociqiion with
behqviorol sciences. Mercer Monogement Consulting's Borry Spiker
notes thot "whqt is colloquiolly known qs chonge mqnqgement hos its
roots in OD (Orgqnizc.tion Development) ond sociotechnicol sysiems,'
wNch suggests equci qtiention to both sociql ond technicql elements
of on orgonizqtion
The morket cqlls
Why the mounting demond for chonge mqnogement consulting? With
chqnge qs q constqnt todoy, shell-shocked employees hqve under-
stondobly lost their qppetite lor monogement initiqtives. Though tNs
mokes implementotion of the next chonge
- or the -cleonup'of on old
one
- more chollenging, mony CEOs qre whqt Doryl Conner of ODR
cqlls -scqrred
ond scqred' themselves from fqiled chonge, ond thus
reody to listen to orgonizqtionql qnd behoviorol issues neglected in the
post. Adds OD pioneer Wqrner Burke: "Clients now use the term culture
before I do"
Conlinued on poge 2

2. r' FEBRUARY I995t
Z- CONSULTANTS NEWS
e.
}IOW CONSI'LTANTS ARE ADDRESSING GHANGE iTAHAGEftIEF{T
Continued from poge I Consultonts onswer
in on effort io sell qnd deliver more losting, systemic chonge, consult-
ing firms qre responding with chonge mqnogement services thot
Nqdler suggests cqn be dilferentiqted olong 4 dimensions:
' Content ol the chonge (lT, strqiegy, etc)
' Client level within orgonizotion
r Mognitude of chonge (incrementol vs. discontinuous)
r Stqffing model (i.e., will front-line chonge ogents be from consulting
or client firm?)
in delivering chonge monogement services, consulting films hove or-
gonized themselves in two bosic wqys:
. Estsblishment of o distinct functionol proctice or skill group
Development ol o smoll core ol "thought leodership" used to build Cchonge mqnqgement skills qmong multidisciplined consultonts
In qddition, we find q number of niche ployers
- either smoller firms
or very smqll proctices within lorge firms
It's importont to note thot the internol orgonizqtionol model does not
necessorily represent how the firm goes to mqrket, ond moy even be
invisible to clients. (Next month, CN profiles q selected group of leod-
ing chonge mqnogement consultoncies in eqch of these cotegories)
Chollenges to growth
Potentiol for growth in chonge monogement is cleqr ond significont,
but the ideol monner in which to opprooch the mqrket is not obvious.
The Deltq model of PhDs-turned-sirqtegists indicqtes q morkedly differ-
ent skill set thqn thqt of the typicol MBA (ond, subsequently, the typi-
col mqncgement consultqnt), Most leoding B-schools now stress "OB"
courses ond reloted skills, but the overoge MBA still feels rnore com-
fortoble in q closs on corporqte finonce thqn in one on corporqte cul-
ture
This stqffing dilemmo is compounded by the foct thqt systemic chonge
needs to stqrt qt the top, ond credibility with CEOs, occording io Ernst
& Young's Gory Von Glinow, 'requires some groy hoirs'
The need for experienced consultqnts with this unique skill set should
continue to keep seorch lirms busy, ond niche ployers populor ocquisi- tJ'tion torgets
For more on chcnge
mqnogement, see CN
Speciol Report/ Apr'9 3:
'HR Aspects Criticql to
Success in Business
Reengineering,' by
Dcrvid Clinkenbeqrd

3. 1995 -ia
N EWS )
. . . AND HOW THEY I'IUS? CHAilOE TO ADAPT TO ITS FUTURE
The future of chonge
Andersen's Terry Neill notes thqt "there is o lorge body of knowledge
obout humqn beings qnd their behqvior, but it hos tended to be in the
heods ond the librories of onthropologists, sociblogists qnd psycholo-
gists." Consultonts hqve now trqnsloted this knowledge into the imple-
mentotion of orgonizotionol chonge, but so for hqve been generolly
limited to single engogements
The future moy lie in multiple engqgements ihot expond the scole oi
chonge mqnogement. Rqndy Mortin of KPMG Peqt Morwick cites one
client currently undelgoing 35 chonge initioiives speorheoded by mul-
tiple consulting firms. True systemic chonge would require some or-
chestrotion of these efforts, ond Peot Morwick, Ernst & Young qnd oth-
ers ospire to provide this by octing os o client's'portfolio monoger" of
chonge
The increqsed poce ond lrequency of chonge is keeping consultonts
busy, bui mony engsgements remqin reoctive in noiure. In fqct, Mory
Robout of EDS feels thot the term chonge mqnqgement corries reoctive
connototions ond prefers insteqd the notion of 'chonge creqtion." The
inherent odvontoge of a compqny thot could onticipote chonge ond
odopt in q reol-time foshion hqs inspired firms such qs CSC Index to
explore o service thqt would creqte client c<imponies thqt were per-
petuolly qmenqble to chongb -= in essence, qllow Kurt Lewin's're-
freeze'to creote o kinetic, or qmoebic stqte
The next buzzword?
Individuql ond orgonizotionol issues qssocioted with chonge mqnqge-
ment qre
- in themselves
- nothing new, but iheir growth in impor-
tonce to manogement consulting is noteworthy
Nodler cqlls the trend 'heolthy for our economy'qnd believes thqt
more effective orgonizotions hqve been the direct result, It's qlso true
thot while the octuql work of reengineering is.here to stoy, the
buzzword moy be neoring the peok of its product lifecycle. As the two
terms do shqre underpinnings of lorge-scole system chonge, perhops
'chonge mqnqgement'is the heir oppqrent
Mercer's Borry Spiker estimotes thqt chqnge monogement olreody oc-
counts for up to 30o/o of the reengineering morket (qnd growing), ond
the news for consultonts is good: 'There's so much'chonge'in the mor-
ketploce, thqt there's room for everyone'
Aboui the quthor: Scott Whelehon is c groduote studeniot Columbiq University ond
this spring will receive both qn MBA qnd o Mqster's in Orgonizotionol Psychology. He
is erploring q cqreer in chonge mqnqgement. For more informqtion on his reseqrch
for this report, Scott con be reoched at212-724-6079
fF.B.R.u.4By.
CONSULTANTS
c
f"
r&Attention to cu]ture ond
the power oI humsn
resistqnce cqn mean sII
the ditference in creat-
ing susfoin oble chonge.
Lock o! o symbol for
"chonge" in Chinese
r'Ilusfrirfes on importanl
porodox in Daryl
Conner's book, Monog-
ing ot the Speed ol
Chonge. Coming closesl
conceplually to chonge
is fhe nofjon of "crisis,'
represenled by the coa-
.binofion of two sym-
bols: "dongef (dbove)
snd'hidden opporlu-
nity'(below)
Watch nexl rnonfb for
Pgrrt Il in fhis series
(L

4. MARCH I995
b b N's ir ira'H ri' r.i ewi
l=
.*
;'ff
'aa*
i?aE
'+!!r'
a:€
-r
.=:
,-.:j
..i
:
Last month CN exqrn-
ined fhe booming mar-
ket tor Change Manage-
ment services. In the
nexl 3 issues, we'.li
presenl a serles ol pro-
tiles ol leading players
dnd how they're orgq-
nlzed
Says an Andersen com-
pelitor: "They prelty
rnuch own the muket
In many, mo,ny wdys
-they really own it."
Other tlrms mlght argue
fhal fhis ls comparing
their apples to
.AndersenS entfue lruit
basket
LEADIHG PI.AYERS IN CHANGE II,IANAGEII,IENT
b,y Scott Whelehon signed to qddress this need, but Neill
concedes thot boloncing strength of
scole qnd flexibility is "whot mqnqg-
ing portners in this orgonizotion get
poid lor'
Ernst & Young
E&Y recently combined Orgonizo-
tionol Chonge Monogement qnd
Orgonizotionol Alignment groups to
form Business Chonge Imp)ementc-
tion group of 70 core "speciolists- in
U.S. & supporting cost ol up to 500
consultonts. Orgcnizotioncl Align-
ment brings competencies in chonge
'enoblers' such os performonce mon-
cgement & reword. E&Y's Center for
BuSiness Innovotion in Boston does
reseorch oround issues such os
change monqgement, ond though it
doesn't coll itsell 'think tqnk,' it's qn
intellectuol tesource ior E&Y's consult-
qnts & clients
€oopers & Lybrond
Coopers hos Chonge Monogement
Services proctice of ol-'out 35 procti-
tioners bosed in Woshington DC ond
currently present of 30-40% of en-
gogements
In addition, in'93, Coopers purchosed
Boston-bqsed Horbrid.qe House (65
pros, including 50 doitrg chonge
work), now port oI C&L's Humon Re-
source Advisory grot- p. Horbridge
House
- with reputqtjcn lor imple-
mentotion, troining qnd executive
development - hqd in post offered
chonge mcnqgement qs q distinct
service, but Monaging Principsl Ernie
Glickmon now lqbels it'the umbrello
thot links everything we do,'Since HR
Advisory proctice is seporote from
C&L Consulting, discussions ore ongo-
ing to build synergies ond ovoid over-
lop with C&L Consulting's chonge
proctice
We Iind 2 bosic models for chonge
monogement proctices omong lorge
consulting firms: firms with distinct
functionql proctices or skill groups,
and firms with o smoll core ol
"thought leodership' used to build
chonge skills qmong multidisciplined
consultonts. In oddition, we lind
mony niche ployers
- smqller iirms
or smoll proctices within lorge firms
(Note: Internol structure does not
necessorily represent how lirms go to
morket, ond moy even be invisible
to clients)
This month, we describe lirms in the
lirst_cotegory: lorge-lirm proctices
with'ilistinCt tijncti6noi groripi:'(we'lt
look of the two other cotegories in
April & Moy)
Andersen Consulting
With neqrly 2,000 chonge mqnoge-
ment consultqnts worldwide, onnuql
growth of 3O%-plus.:ond presence qt
30-40% of firm's mojor engagements,
Andersen's chonge monogement
proctice is mqrket's 8OO-pound go-
rillo (one exomple: Current $60M job
contoins 25% chonge moncgement).
Andersen's Chonge Monogement
Services (CMS)
- unlike most com-
petitor groups
- hos historicolly
been qssocioted with lorge numbers
ol junior consultqnts engaged in sys-
tems troining. But Andersen is olso
building competencies to monoge
broqder orgonizotionql issues of se-
nior executive level, To reflect this
direction,'Services' designotion hos
been dropped from group's nqme
World prcctice leqder Terry Neill
likens morket potentiol of chonge
mqncgement to thot of systems in
'70s, qnd feels thqt despite good
ideqs, mqnqgers qre olten over-
whelmed by scole of chcnge.
.Andersen's stoffing model is de-
t/
a-l

5. MARCH r995 E
tbil'sir rr'nNr's'r.ie'ws J
,n
(=,
Price Woterhouse
According to PW, 'chonge moncge-
ment' describes its entire Chcnge In-
tegrotion (Ci) prcctice. which qlso hos
o speciiic organizotion chonge & eI-
fectiveness component to accompqny
strotegy ond process redesign. Colin
Price hos grown U.S. orgonizotion
chonge group to 84 consultonts (there
cre severol hundred worldwide) since
orrivol from PW's London proctice o
yeqr ogo. Within CI, orgonizction
chongei grg.qp gqqresses orgonizotion
aesigri,'cr.4ljriie'chong'e & technology
ossimilotionl'CI Drqctice ond method-
orogifjd:;11iti"o itt book entitled Bet-
ter Cbonge.;:.gppqgrs well-rggorded
"'o"11:+9,Y:try
Colin_Bric-e'ligirols PW's oggressive
stqnce _Dy scying morket lor orgcnizc-
tion chqnqe :is there to be token'
:.--;ri:+'ii.j_::r:. _: .._ .-
KPMG Pdd't Morwick
tnough'bhtinge monogement is now
desigmoted. a'core skill set'Ior qll
KPMG consultonts, qctuol chonge
work is done by U.S. teqm of qbout 15
with behqviorql bockgrounds (there
ore 100 worldwide), Group hqs devel-
oped globolly consistent fromework
thqt focuses on people snd orgcnizo-
tion bsrriers, Soys prcctice mqncger
Rondy Mqrtin, KPMG seeks'to moin-
toin o core of highly speciolized,
highly volue-qdded people' qimed ot
entering client orgonizotion of highest
level
CSC lndex
Born cs bridge between humqns &
mochines, CSC Index has olwoys od-
dressed humon dimension, but not qs
seporote service. Index reengineering
teoms lreguently contqin chonge
mqnqgement'speciolist,' qnd skill set
is one of 4 oround which consultqnts
ore grouped (others ore strotegy,
technology, operations). Index envi-
sions cutting-edge chonge monoge-
ment service os one thot creotes
odoptobility rother thon odoptoiion
-'not shilting geors, but putting in o
tronsmission,' exploins CSC's Alon
Cohen. CSC recently ocquired
DiBionco-Berkman (20-30 consuit-
qnts) to explore deePer issues ol
chonge leodership & trqnsformotion
Gemini Consulting
Gemini describes chonge monoge-
ment os so pervosive in its culture
thqt relevqnt concepts ore'embed-
ded'in every engogement. Ellen
Hqrt qlso heods up distinct discipline
- Orgonization ond Monogement
Development (OMD)
- chorged with
'keeping on eye on the horizon' ol
this evolving field ond digging
deeper into behoviorol issues
EDS
Heoded by recent Gemini olum MorY
Rqbout, EDS Monogement Consulting
Services (MCS) hos built chonge
proctice of obout 40 core proctitio-
ners. In oddition, relevont support
Irom elsewhere in EDS is ovoilqble in
Iorm of systems troiners, etc., though
MCS mointoins its own P&L
Symmetrix
Geor(re Bennett believes thot os
mucir ss 50% ol effort monoging on
engogement should be in moPPing
client's psychologicol londscoPe,
likening plcnning process to militory
strotegy. Phqses of Symmetrix en-
gogement
- qim, discover, dePloY
- ore'encqsed in this psychologicol
plon.' Firm's 130 consultonts qre
evenly grouped into four skill boses:
strotegy, operotions, systems ond
organizotionql effectiveness, Lqtter
boosts OD qnd humon resource-
reloted copcbilities, qnd oll 4 qre
represented on engogement teqm
About the quthor: Scott
Whelehan is o graduate
student qt Columbiq Uni-
versity ond this spring wili
receive both on MBA qnd
c Mqster's in Orgcnizo-
tionol Psychology. He is
exploring q coreer in
chonge monogement. For
more informqtion on his
reseqrch for this report,
Scott cqn be reoched ot
2t2-724-607 9