ESTABHLISHING A SENSE OF URGENCY

1. ESTABHLISHING A SENSE OF URGENCY

2. Learning Objectives • Examining the market and competitive realities • Identifying and discussing crisis, potential crisis or major opportunities • Describing sources of complacency • Describing the role of manager • Discussing enough information of urgency

3. Complacency If complacency filled organization, change initiatives are dead on arrival.

4. Sources of Complacency The Absence of A major and visible crisis Too many visible resources Too much happy talk from senior management Human nature, with its capacity for denial, especially if people are already busy or stressed COMPLACENCY Low overall performance standards Organizational structures that focus employees on narrow functional goals A-kill-the-messenger-of-bad-news, low-candor, low-confrontation culture Internal measurement system that focus on the wrong performance indexes A lack of sufficient performance feedback from external sources

5. Urgency level Pushing Up the Urgency Level • Create a crisis by allowing a financial loss • Eliminate obvious examples of excess • Set revenue, income, productivity, customer satisfaction and cycle time targets so high • Stop measuring subunit performance based only narrow functional goals

6. Send more data about customer satisfaction and financial performance to more employees • Insist that people talk regularly to unsatisfied customers, unhappy suppliers and disgruntled shareholders • Use consultants and other means to force more relevant data • Stop senior management “happy talk” • Bombard people with information on future opportunities

7. The Role of Crises Economic crises are so visible, major change is often said to be impossible until organizations problem become severe enough to generate significant losses The Role of Middle and Lower Level Managers • The key players of change is middle or lover level managers • They will need to reduce complacency an increase urgency

8. They will need to create : a. change coalition b. develop a guiding vision c. sell vision to others • Give them enough autonomy How Much Urgency is Enough ? Organizations can find out how much urgency is enough is from : • Well informed customers • Well informed suppliers • Stockholders

9. Summary • Establishing a sense of urgency is crucial to gaining needed cooperation • With complacency high, transformations usually go nowhere • Key role of change is middle and lower level managers • Gathering more relevant information about urgency are from customer, supplier & stakeholders