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October 29th, 2009

Strategic Change Management

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To paraphrase Kenny Rogers, as a change manager, you have to know when to hold ‘em and when to fold ‘em.

Our firm worked with a large coalition in California, helping it develop a strategic plan and a new governance structure. The strategic change management process we initially designed called for multiple meetings with coalition members to clarify the goals of the coalition — and then look at options for a new governance structure. It was a solid process, grounded in our 12 years of doing similar work.

The key funder for this coalition was a large California-based foundation. When we began work, the woman assigned to manage the coalition told us to scale the process down in order to meet her timetable. That was the first warning sign. After the first stakeholder meeting, she heavily edited our synopsis to spin it in a way she felt would play better to coalition members. That was another sign of trouble.

As we were designing the next stakeholders meeting, she told us to shrink the timeline even further. It was gut check time. I called some people.  Their stories resonated: the coalition manager treated people with disrespect; she pushed her agenda at the expense of collaborating with others. Feeling that our firm’s reputation was on the line, I told her of my concerns about the quality of the process. She replied with a blistering email, criticizing me and criticizing our staff.

I tried to imagine whether our firm could successfully partner with her. Looking at the evidence, I realized it was highly unlikely that the process could ever be as robust as it needed to be. At that point, I decided the best strategic change was to end the engagement. I communicated that to her in an email. The next day, I got a voicemail  from her, asking if we could talk. Perhaps we needed to clear the air, she said.

I told her the decision was final. It was unfortunate. But a good change management process needs to be anchored in a strong, trusting partnership between the consulting firm and the client.

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September 9th, 2009

Strategic Change Management and the First Five Percent


Strategic Change Management
I have written before about the “First Five Percent.” That’s my approach to strategic change management that says the quality of the first five percent determines what happens in the rest of the process.

I was in Los Angeles last week, working with a large association, on a strategic plan for their organization. It was the beginning of a year-long process to create a high-performing organization.

One of the rules of the First Five Percent is to engage as many people as possible early on. You never know who has the good ideas. The more people you engage early on, the quicker you can identify the best thinking and the hidden resources.

There were 300 people in the room, including board members, chapter leaders, and local officers. The agenda was flexible. Depending on how the first exercise went, I was prepared to go in different directions to assure high levels of participation.

The first question I posed was this: “Think about where you want the association to be in two years. Tell me the specific changes you want to see and your measures of success.” They worked on this question for 60 minutes and wrote down their responses on flip chart paper.

Each group then reported out. I then asked them: “What did you hear yourselves say? What did you agree on?” Everyone called out what they heard. “Increase membership.” “Fill our vacancies.” “Create a new business line.” Their juices were flowing. “How would you measure success?” I asked. They shouted out what they’d heard. I listed four specific measures of success. I asked if they all agreed. Everyone raised their hands. They took a quick break for lunch.

While the room was quiet, I thought about my next move. I looked over all of their reports, and decided I should simply tap into their energy. I listed 12 goals on flip chart paper. Each goal came from them, like “Double our membership” or “Increase our political clout.” I posted these goals on the walls of the room.

When they came back from lunch, I said: “Take a look around the room. These are your goals. Find a goal you feel passionate about. Go stand by that goal. For those of you who are passionate about some other goal, there are blank pieces of paper.”

The group divided itself into teams around each goal. I asked them to develop an action plan for each goal and then report out. During the report-outs, I identified key issues that needed to be resolved and facilitated a discussion around each issue. When people drifted off topic, I invoked the two-minute rule (”Anything important can be said in two minutes”) and they got back on course.

We wrapped it up at 4 p.m. I asked people to tell me what they liked about the meeting. “It was energizing,” someone said. “Great ideas!” several people said. “Your guidance,” someone said. “The two minute rule!” several shouted. “We’re excited to be building our organization,” a woman said. “And what would you like to change?” I asked.

“That we have to leave!” a man shouted. Everyone laughed.

Next blog article: “Our Change Management Model“

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September 9th, 2009

Three Principles of Our Change Management Model


Change Management Model

When people ask me to describe our change management model at LRI, I tell them it boils down to three principles.

Principle number one: focus on the first five percent. What you do to gather champions, set expectations, how extensively you engage stakeholders, and how well you paint a picture for people of the decision-making process will go a long way toward guaranteeing a successful outcome. Let me emphasize the importance of engaging many people early on – those who will be affected by the decision and those whose expertise can help. Even when ideological stances are strong, early engagement is always the better approach (as opposed to shutting people out of the process).

Principle number two: Focus on defining the root problem. Solutions don’t matter unless you define the problem correctly. We emphasize a systems approach. Too often people say things like: “We need better products,” or “we need more sales, or “staff isn’t working hard enough,” without looking at the reasons why. Very often, the answer lies in looking in the mirror – at what you’re doing or not doing. One systems approach is to look at the organization’s core values – the things essential for its success. You can make tough decisions look easy if you ground them in well-understood core values.

Principle number three: Find a good guide.  An experienced guide can set the tone, keep an open mind, identify key issues, articulate points of agreement, and keep things moving. A guide should be able to offer models and examples from other organizations. The courage to handle uncertainty and adversity is also important, along with a healthy sense of humor. Good, experienced guides are hard to find. But they are absolutely essential to our change management model.

Next blog article: “Strategic Change Management“

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September 30th, 2008

Peter Drucker Management | What Would Drucker Do?


In 1957, Peter Drucker first used the expression “postmodern organization” to describe a new kind of fluid, organic, flexible company. In a book titled, Landmarks of Tomorrow, Drucker wrote that the shift from the universe of mechanical cause and effect to a new universe of pattern, purpose, and process would permanently transform how leaders view themselves and their jobs.

Drucker was right. The world did become more complex. Our global markets became so complex that a single action can send tremors through the world’s financial markets. We are inter-connected in ways never before seen.

So I found myself asking the last few days: “What would Peter Drucker have done?” How would he react to Wall Street’s meltdown? One thing I know for sure, he would have disapproved of the bailout. It pushes more money into the wrong places – into the hands of bankers. He would have looked to fix the problem at its source.

And where’s the source? The commercial paper that enables corporations to do business is tied to the money markets. When it froze up, when the value of a money market share “broke the buck,” that’s when the panic began.

I believe that Peter Drucker would have looked to the money markets to fix the problem. He would have insured it against “breaking the buck.” That would enable the commercial paper to flow freely again and the panic would end.

Yes, it’s a far different world from 1957. But if Peter Drucker were alive, the conversation would be different. Peter Drucker would have said: “Resist the stampede to the simple, quick fix. Work for the long term systemic solution.”

Related executive management blog post: “Executive Leadership Coaching” Learn the characteristic traits of a successful leader coach.

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August 15th, 2008

Managing Change: The CEO’s Change Strategy


managing change

A CEO of a high-tech company told me today his story of managing change. The company has doubled in size over the past three years. Alex decided to split the company into two business units, headed by two new senor vice presidents. From a structural perspective, it made sense.

Rather than promote from within, however, he brought in two people from the outside whom he felt would change the company’s culture. He wanted more discipline and management expertise, he told me. The problem is that the people who used to report to Alex are chafing. They don’t feel respected for the work they’ve done. They miss the direct access and the open culture. They feel the new structure isn’t working.

“What can I do?” Alex asked me.

First, I said, think about managing change. That’s your role. How are you communicating why the new structure is important and the value it will have for the company? What are you doing to make sure everyone understands?

“I know I’m not doing enough,” he said.

I also talked about his leadership style. “In the old structure, you were comfortable directing people and telling them what to do.” That won’t work in this new structure, I told him.

He listened as I went on. “You’re the one who has to change. Otherwise, you’ll undercut your new senior vice presidents. You’ve got to be their coach.  As a coach, you can’t tell them what to do. You have to ask them good questions, and get them to assume responsibility for making the change work successfully.”

He thought about it for a while, asked a few questions, and then said: “It makes a lot of sense. How could you help us?”

“I could help the three of you develop a game plan for managing change. I think that would have enormous impact.”

“Great!” he said. “When can we start?”

Related blog: “Change Management Model“

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