A Refresher Change Roles Three broad roles for change Change strategists Identify the need for change and develop a new vision Change agent Helps shape enable orchestrate and facilitate change ID: 583336
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Slide1
Restructuring & GrowthSlide2
A Refresher: Change Roles
Three broad roles for change
Change strategists: Identify the need for change and develop a new vision
Change agent: Helps shape, enable, orchestrate and facilitate change.
Change recipients: Have to adopt and adapt to change.Slide3
Implementing Change
Even more important than creating a vision is the difficult process of implementing change:
The daily, detail-oriented, tactical and operational decision-making of change
Change failures usually result from flawed implementation and not from incorrect strategic choices.Slide4
Key Components
Change is about managing emotions
Anger, alarm, alienation and confusion
Effective change requires:
Employee trust through predictability and capability
Employee empowerment that involves inviting everyone to co-create the future.Slide5
Integration Issues
Culture Clash
Start up vs. 20 yr. established company
Retention of:
CEO / CTO
Key technical staff
Marketing Team
Technical Sales Team
Integration / Structure
Leadership team – corporate
R&D organization – corporate
Marketing organization – corporate
Sales Team – different customer base
Acquired Company Morale Issues
Loss of independence
Fear of “Big Company” mentality
Loss of unique identity / brand
Loss of influence, power and control
Acquiring Company Diversion
New Market / different sales capability
Diversion from profitable businessSlide6
Professionalization
New venture
Consolidation
Flamholtz
: Organization Life Cycles
stage
Growth / Size
ExpansionSlide7
Identify and Define a Market
Develop Products and Services
Acquire Resources
Develop Operational Systems
Develop Management
Systems
Manage
the
Corporate Culture
Stages of Organization Evolution
Growing Pains: Transitioning from an Entrepreneurship to a Professionally Managed Firm
by Eric G
FlamholtzSlide8
Oozing Strategy-no functional objectives
Chaotic-overwhelmed
Resource squeeze
Constant change in roles
Rebellion against beginning structure
Lots of grandiose vision / no real strategy
No processes/ systems/ structure/ little role delineation
Boredom!
Early professionalization stage
Early entrepreneurial stage
IPO able leader
Processes / systems more defined
Culture defined by team
Culture derived from Founders
Founder Group dominance
Internal coordination and linkage evolving
Roles stabilizing
90 day task implementation roadmap
Strategy of the quarter
Later entrepreneurial stage
Start Up Life CycleSlide9
Potential “new team / old team” conflicts
Marketing / engineering power struggle
Emerging push to change decision process from hub to team decision
Resentment at beginning process and structure controls
Founding team fall out
Technologists beginning to struggle with embryonic marketing
Early professionalization stage
Later entrepreneurial stage
Early entrepreneurial stage
New leadership structure / style - tension
Team “Storming” between old and new
Requires prioritization and tighter task alignment
Silo mentality / communication breakdown
Founding team beginning to
turn over - role transition
Neat technology to commercialize, but unclear how
Unrealistic business models explored
and discarded
Expand beyond Founder Team
Power shift from technology to commercial side
Founder / leader hub management
Leadership Transition COO or new CEO
Upgrade functional capability
Define 1 year strategy functional goals and 2 qtr task roadmap
Key processes / systems introduced
Functional alignment thru hallway conversations
Functional alignment thru documented objectives and key processes
Need for management growth of early executives
“Cowboys” rebel
Start Up Transitions / IssuesSlide10
Start
Over
Again
Performing
Norming
Storming
Forming
Defining purpose of team
Defining structure of the group
Selecting members
Hesitant participation
Cautious/anxious about new environment
Establish “pecking order”
Turf definition & protection
Competition & infighting over roles & opportunities
Resistance to leadership style
Negotiated agreements
Team norms jelling
Increase in candor
Silos break down
Effective decision making
Collaborative
Respect for skills and styles
Efficient problem solving
Stages of Team DevelopmentSlide11
Start Up Intervention Areas
outcome
Venture group funding
New investors
Different incentives
Board
New Board
Chairman role
Right team
Effective
Aligned
Stage of
Life Cycle
Individual executives
Right skills
Development Plan
Founders
Evolving roles
Transition out
Leadership
Right leader
Development Plan
Strayer Consulting Group, IncSlide12
Managing Change: Partnering
Partnership types: Mergers, Acquisitions, Joint Ventures
Partnership Aims: To achieve the objectives of growth, diversification, economics of scale, synergy or a global presence.Slide13
Barrier to Successful Partnerships:
Geographic distance
Language barriers
Cultural Differences
Understanding why employees behave the way that they do on the job from day to day (Gibbon, 2002)
Understanding shared beliefs, traditions, and expectations about how individuals behave and accomplish tasks (
Cartright
& Cooper, 1993).
Aligning structure, politics and emotion (Clemente & Greenspan, 1999)Slide14
Historical Perspective
1960-1970: Conglomerate type that involved partnering with an organization in an unrelated field.
Often the focus was on financial and planning systems at the corporate level with operations being conducted separately.
Need for cultural integration: LowSlide15
Historical Perspective (Cont
’
d)
1980-1990
’
s: Greater number of partnerships between organizations in the same field of business activity or industry
e.g. Time Warner & AOL
Need for cultural integration: HighSlide16
Steps for Successful Partnership
Prospect search and identification
Due diligence
Negotiations
Transition management
Operation as an integrated unitSlide17
M & A Lessons
No partnership of equals. Avoid arrogance.
Change is inevitable.
Culture matters!
Two-way and open communication.
View employees as assets, not liabilities.
Employee involvement.
Overestimate timing. Slide18
Burt’s Bees
Moving forward what are the risks and opportunities from the Clorox acquisition?
What are the implications of this choice?
Can the virtuous mouse and the wealthy elephant live happily ever after?Slide19
Managing Change: Internal Structure to Foster Performance
Complex organizations require diverse experts to collaborate to get their work done across organizational boundaries:
Divisions
Departments
Client Groups
Conflicting goals, languages, cultures, and procedures can inhibit collaboration necessary to effectively performSlide20
Common Aims of Internal Restructuring
Enhance flow of information and expertise across organizational boundaries to increase:
Learning
Catching Mistakes
Innovation
Efficiency
Shared Understanding
CoordinationSlide21
Implement the Internal Restructuring
Over communicate honestly
Align goals with the restructuring Efforts
Avoid the creation of bottle-necks that require certain people to be brokers
Involve employees in the process and take their input into account
Create a climate that supports speaking up in order to enhance the flow of information resources across organizational boundaries.Slide22
Managing Internal Change: Downsizing
Downsizing= Layoffs + Restructuring
Given economic weakness, majority of CEOs report the need to reduce staff amid continued economic weakness and tight profit margins
More than 3 M people are laid off every year
Downsizing can happen even during good economic times.Slide23
Announcing a Downsizing
Use as a last resort
Communicate rationale and allow for questions and answers
Involve senior management
Let everyone know at the same time
Provide counseling at the location
Try not to make an announcement before the holidays or before the weekendSlide24
Implement the Downsizing
Over communicate honestly
Be fair
(Procedural Justice, Trevor & Nyberg, 2008)
Help victims find other jobs
Senior management should share this burden
Reduces likelihood of voluntary turnover
Explain the selection process
Focus on merit or future skill needsFit this criterion with the vision for the futureSlide25
Implementing the Downsizing (Cont
’
d)
Involve employees
Don
’
t just take people out
Work out procedures and processes
If you can’t offer job security, provide ways to enhance employabilityTraining and DevelopmentLink incentives to performance in order to motivate skill developmentSlide26
Surviving Organizational Downsizing
Depends a great deal on the way that survivors respond:
If they support the change initiative, downsizing is perceived to meet its objectives
If they feel that the downsizing has violated them and their work environment, workers will tend to work against the objectives of downsizing. Slide27
From a Worker
’
s Perspective: Survivor
’
s experience
Recommended text:
-Healing the Wounds (Noer, 2009)Slide28
Midterm Results
2015Slide29
Descriptives
Mean = 87.13%
Mode = 96%
Range = 74% - 100%Slide30
Multiple Choice
Mean = 17.69
Mode = 19
Range = 13 - 20Slide31
Short Answer #1
Mean = 4.06
Mode = 5
Range = 2 - 5Slide32
Short Answer #2
Mean = 4.75
Mode = 5
Range = 3 - 5Slide33
Short Answer #3
Mean = 3.66
Mode = 3
Range = 2 - 5Slide34
Case
Mean = 13.41
Mode = 13
Range
= 10 - 15