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Chapter 4: Building and Energizing the Need for Change

Chapter Overview

• This chapter asks the question “Why change?”

• A framework for assessing and understanding the need

for change from multiple perspectives is developed

• It describes what makes organizations ready for change • It outlines how change leaders can create an awareness

for change • The importance of developing the vision for change is

addressed. It can be a powerful aid in energizing and

focusing action

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

• Identify the need for change

• Articulate the gap between current situation and desired future state and develop awareness of need for change

• Develop and disseminate a powerful vision for change

• Disseminate the vision through multiple channels

Recognizing the Need for Change Is Not Enough!

• There is no shortage of things needing change • Recognizing the need for change is not sufficient

• “Why change” is aided by solid analysis of what needs to change and why its important to expend resources on this area, but…

• We need to be able to craft a compelling vision of: • Where we want to go (the desired change) • Why it is worth the effort

The Need for Change: Have You Done Your Homework?

• What is your assessment of the need for change and the important dimensions and issues that underpin it?

• Have you investigated fully the perspectives of internal and external stakeholders?

• Can the different perspectives be integrated in ways that offer the possibility for collaborative solutions?

• Have you developed and communicated the need for change in ways that will heighten readiness and willingness to change?

Develop Your Understanding of the Need for Change

Develop Your Understanding of the Need for Change and Create Awareness and Legitimacy for it

Seek Out & Make Sense of External

Data

Seek Out & Make Sense

of the Perspectives

of Other Stakeholders

Seek Out & Assess Your

Personal Concerns & Perspectives

Seek out & Make

Sense of Internal Data

Readying an Organization for Change

• Need for change is identified in terms of the gap between the current state and the desired state

• People must believe that the proposed change is the right change

• People must believe they can accomplish the change

• The change is supported by key individuals that organizational members look to

• “What’s in it for me?” has been addressed

A Second Look at Readiness

1. Leadership viewed as trustworthy by followers

2. Followers viewed as trustworthy and able to dissent by leaders

3. Have capable Champions of Change

4. Involved middle management

5. Innovative culture

6. Accountable culture

7. Effective communications

8. Systems thinking

Rate the Organization’s Readiness for Change

Readiness Dimensions:

Previous Change Experience Score Range (−8 to +4) Score? _________ Executive Support Score Range (−3 to +7) Score? _________

Credible Leadership & Change Agents Score Range (0 to +11) Score? _________

Openness to Change Score Range (−9 to +22) Score? _________

Rewards for Change Score Range (−5 to +2) Score? _________

Measures for Change & Accountability Score Range (0 to +4) Score? _________

Rate the Organization’s Readiness for Change (cont.)

• Total scores can range from −25 to +50

• The higher the score, the more ready the organization is for change • Organizations that score below +10 are likely not ready for

change, making change very difficult

• Use scores from each area as a guide to focus your attention on those low-scoring sections. What could be done to increase readiness?

• This tool’s purpose is to raise awareness of the organization’s readiness for change. It is not meant to be used as a formal research tool!

Creating Awareness of the Need for Change

• Create awareness that a crisis is near, or create a crisis that needs to be addressed

• Develop a transformational vision for the change based on compelling values

• Find a transformational leader to champion the change

• Focus on common or shared goals and work out ways to achieve them

• Create dissatisfaction with status quo through information and education

Barriers to Recognizing the Need for Change (“Active Inertia”)

• Mental models about the world become blinders

• Past successes reinforce existing practices

• Existing values and corporate culture may harden into dogma

• Leadership practices may impede recognition of need for change

• Embedded systems and processes can harden into unquestioned routines and habits

• Existing relationships can become shackles that impede the ability to respond to a changing environment

Groupthink

• Illusion of invulnerability

• Construct rationalizations

• Morality of position is unquestioned

• Stereotypes—distort image of other parties

• Pressure applied to those who express doubts about the group’s position

• Self-censorship— deviations from consensus are avoided

• Illusion of unanimity

• Mind-guards: leaders and fellow members protected from adverse information

Overcoming Groupthink

• Have the leader play an impartial role • Actively seek dissenting views. Have members

play the role of devil’s advocate • Actively discuss and assess the costs, benefits

and risks of diverse alternatives • Establish a methodical decision-making process

at the beginning • Ensure an open climate and solicit input from

informed outsiders and experts • Allow time for reflection and do not mistake silence

for consent

Value of a Vision for Change

What is Your Experience with Vision Statements?

• What makes for a good vision statement?

• What is the difference between a vision for the organization and one for change?

• What does the organization and senior management want from the vision?

• How much time, energy and resources should be devoted to creating a vision? Who should be involved?

What is a Vision Statement?

It is an attempt to articulate what a desired

future for a company would look like… an organizational dream. Visions are big

pictures.—Todd Jick

What is a Vision Statement? (cont.)

According to Tichy and Devanna:

It provides a conceptual framework for understanding the organization’s purpose—the vision includes a road map

It has emotional appeal with which people can identify

A vision’s value lies in its ability to guide behavior

What is a Vision Statement? (cont.)

According to Simons:

A vision without task is a dream world, and task without vision is drudgery.

Approaches to Visions for Change

• Leader-developed vision

• Leader-senior team-developed vision

• Bottom-up visioning

Your Thoughts on Organizational Vision

• How do you think an organization should go about developing a vision? Bottom up? Top down?

• To whom should it be communicated? How should it be communicated?

• When does an organization need to consider or revisit its vision?

Value of a Vision Is to Guide Behaviour

Good visions are:

• Clear, concise, easily understandable

• Memorable

• Exciting and inspiring

• Challenging

• Excellence-centered

• Stable but flexible

• Implementable and tangible

Why Is It Necessary to Have a Vision?

• A vision enhances performance measures

• It promotes change and provides a basis for a strategic plan

• It motivates individuals and facilitates recruitment

• It establishes a context for decision making

What Is a Useful Vision?

• A useful vision focuses on the future • Vision integrates three factors:

• Mission: What business are we in? What’s our reason for being and our fundamental values?

• Strategy: How are we to achieve our mission and our competitive advantage?

• Culture: The enactment of who we are in our values, beliefs, rituals, etc., relative to ourselves, our coworkers and our clients

Why Do Visions Fail?

• Senior management’s walk doesn’t match the talk

• Ignores needs of those putting it into practice

• Unrealistic expectations develop that can’t be met

• Lacks grounding in the reality of the present

• Either too abstract or too concrete

• Lack of creative input

• Poor management of participation

• Complacency—no sense of urgency

The Vision Trap

• Watch for vision creep

• Get back to basics:

• Language people can identify with

• Language people can do something with and focus upon

• Vision that engages and energizes and is not abstract and ambiguous

“Handy-Dandy Vision Crafter” We Strive to be the… ________________________________________________ (Premier, Leading, Pre-eminent, World-class, Dominant, Best of Class)

Organization in Our Industry. We Provide the Best… _______________________________________________ (Committed, Caring, Innovative, Expert, Environmentally friendly, Reliable, Cost-effective, Focused, Diversified, High-Quality, On Time, Ethical, High value added)

________________________________________________ (Products, Services, Business Solutions, Customer-Oriented Solutions)

“Handy-Dandy Vision Crafter” (cont.)

To… ________________________________________________ (Serve Our Global Marketplace; Create Customer, Employee and Shareholder Value; Fulfill Our Covenants to Our Stakeholders; Exceed Our Customers’ Needs; Delight our Customers)

Through… _______________________________________________ (Committed, Caring, Continuously Developed, Knowledgeable, Customer focused)

Employees in this Rapidly Changing & Dynamic… ________________________________________________ (Industry, Society, World)

Organizational Vision and Change Vision

• The approach to vision crafting remains the same but the focus shifts and becomes more specific around the particular change you have in mind

• The change leader’s goals are advanced when they develop or facilitate the development of a compelling change vision that appeals to groups critical to the change initiative and effectively communicate it to them

Save the Children

Vision for Its “Survive to 5” Program

We believe all children should live to celebrate their fifth birthday.

The Survive to 5 campaign supports Millennium Development Goal 4:

• To reduce child mortality by two-thirds by 2015 and save the lives of over 5 million children under 5 who are dying of preventable and treatable diseases.

Tata’s Vision for the Nano • Create a $2,000 “people’s car.” It has to be safe,

affordable, all weather transportation for a family. It should adhere to regulatory requirements, and

• achieve performance targets such as fuel efficiency and acceleration.

The Result: The Nano. 50 miles per gallon and seats five. At $2,500—least expensive car in the world when launched.

Change Vision for the Procurement System in a Midsize South African Manufacturer

• We believe providing reliable and cost-effective procurement services is critical to the future survival and success of our organization.

• We will develop and deploy a computer-based process that provides accurate and repeatable information to procurement so that those involved will be able to eliminate purchasing errors, and make more knowledgeable purchasing decisions.

• Through these actions we will reduce costs and increase the profitability and effectiveness of the organization.

• This change will completely eliminate rework on the bill of material, and will enhance the effectiveness and efficiency of the procurement process, quoting and planning phases.

• We will know we have succeeded in bringing this change to life by the measures we use to track progress, including error rates, costs, time savings, and user satisfaction.

Toolkit Exercise 4.2 Developing the Background to Understand the

Need for Change

1. Consider an organizational change that you are familiar with. What data could help you understand the need for change?

2. Have you: a) Made sense of external data? b) Made sense of the perspectives of other stakeholders? c) Assessed your personal concerns and perspectives that might

affect your judgment concerning the change? d) Understood and made sense of the internal data? e) What else would you like to know?

3. What does your analysis suggest to you about the need for change?

Toolkit Exercise 4.3 Writing a Vision for Change Statement Think of an organization you are familiar with that is in need of change. If you were the change leader, what would be your vision statement for change?

1. Write your vision statement for the change you are striving for.

2. Evaluate your vision. Is it: • Clear, concise, and easily understood? • Memorable? • Exciting and inspiring? • Challenging? • Excellence-centered? • Stable and flexible? • Implementable and tangible?

Toolkit Exercise 4.3 Writing a Vision Statement (cont.)

3. Does the vision promote change and a sense of direction? 4. Does the vision provide the basis from which you can develop

the implementation strategy and plan? 5. Does the vision provide focus and direction to those who must

make on-going decisions? 6. Does the vision embrace the critical performance factors that

organizational members should be concerned about? 7. Does the vision engage and energize, as well as clarify? What is

the emotional impact of the vision? 8. Does the vision promote commitment? Are individuals likely to

be opposed to the vision, passive (let it happen), moderately supportive (help it happen), or actively supportive (make it happen)?

Toolkit Exercise 4.3 Increasing the Value of a Vision Statement

Assess the vision against the following:

1. Is there consistency between the words and actions of senior management and the vision?

2. Does it pay attention to the needs of those who will put it into practice?

3. Are expectations related to it challenging but realistic? 4. Is it grounded in the reality of the present? 5. Is it neither too abstract or too concrete? 6. Was it forged through an appropriate combination of

synthesis and imagination? 7. Was there sufficient participation and involvement of others? 8. Does implementation contain a sense of urgency and

measurable milestones?

Toolkit Exercise 4.4 Combining the Need for Change and Vision for Change

Think of an organization in need of change:

1. What is the gap between the present state and the desired future state?

2. How strong is the need for change?

3. What is the source of this need? Is it external to the organization?

4. Is there tangible evidence (e.g., crisis) of the need for change?

Toolkit Exercise 4.4 Combining Need for Change and Vision for Change (cont.)

5. If the change does not occur, what will be the impact on the organization in the next two to six years?

6. What is the objective, long range need to change?

7. Return to the change vision statement developed in Exercise 4.3. Does it capture a sense of higher order purpose or values that underpin the change and communicate what the project is about.

8. Explain how the vision links to the need for change.

A Checklist for Creating the Readiness for Change

ü What is the objective need for change? What are the consequences to the organization of changing or not changing? Are people aware of these risks?

ü Are members aware of the need for change? Do they feel the need for change or do they deny its need? How can they be informed?

ü Individuals are motivated toward change when they perceive the benefits as outweighing the costs. Do they see the benefits as outweighing the costs? What can you do to ensure this is the case?

A Checklist for Creating the Readiness for Change (cont.)

ü If individuals believe the benefits outweigh the costs, do they also believe the probability of success is great enough to warrant the risk taking and needed investment of time and energy?

ü Are there other alternatives that are more attractive to them? What is it about their costs, benefits, and risks? How should these alternatives be addressed by the change leader?

Summary • Change occurs when there is an understanding of the

need for change, the vision of where the organization should go, and a commitment to action

• Change leaders need to address the question “Why change?” and develop both a sound rationale for the change and a compelling vision of a possible future.

• To develop the rationale, you need to do your homework! Careful assessment is used to understand and communicate the need for change and the organization’s readiness for change. The motives and interests of key stakeholders forms part of this assessment.