The Dynamics of Successful Change

1. The Dynamics of Successful Change Richard Martin 28 June 2006 MartinR@Dumar.co.uk www.dumar.co.uk

2. Objectives • Appropriate in a seminar on Consultancy, Innovation and Change to consider the interrelationship of an organisation’s • Vision and • Leadership Coalition when talking about the dynamics of successful change. It’s a Christmas and Turkey’s thing. The consultancy element of this is successful Stakeholder Management. • There are of course many other contributory dynamics to change, but few that are as fundamental.

3. Coalition – political Coalition: Reflects little how people relate. Implicit divisions - these relationships not ‘opted-for’. Silos follow each lead. “In”-groups and Sub-groups proliferate. Vision: Bias to Obedience, Conformity, Consistency and Risk geared towards maintaining status quo

4. Political Paradox Oliver Williamson’s Paradox. “Vertically integrated organisations cannot keep growing ever upward. Costs rise to a level where mechanisms to allow further growth are more costly than not growing; the goals of groups or sub-groups in an organisation start to outweigh its common aims; the proliferation of internal controls and specialists to avoid this situation become more expensive; sunk costs encourage the persistence of existing ways of doing things even if they should not now be done that way; communication becomes increasingly distorted; leaders become increasingly distant from those they lead and cooperation between those at lower levels becomes perfunctory rather than wholehearted. Coordination and common purpose lapse.” Oliver E. Williamson ‘Economic Organisation’ Wheatsheaf books, 1986 quoted in Derek S. Pugh & David J. Hickson ‘Writers on Organisations’ Fifth Edition Penguin Books 1996 p28.

5. Constructive P. Johnson Systems tension Good, active working relationship R. Hedge Empathy Intellectual Respect L. Hubbard ? Cold respect Once strong, ? Professional but cool K. Connors now strained? S. Burns C. Broadway C. Ming D. Cook (political) R. Poulton J.L.V respects intellect More tenuous B.D. Eye link with T. Bone Coalition – relational B. Mayfield H. Sanderson (new) weak link with JLV J. Wetherspoon A. Pripafo Tense (professional history) Strong relationship J. Turner (historical) Tense Relationship K. Zadeh (historical) J. Driver Sufference/no strong alliance amongst any MDs Strong links / good relationship Information T. Bone Civil / respectful relationship Weak / poor relationship Professional understanding R.K. Denver ? J.L. Veteran T. Wagner No real professional seen as relationship successor A.R. Taylor Coalition: Influence may not reflect the Organisation chart. Vision: “Does the management team possess 40 different visions? Or 1 vision and 40 people who hate each other?” Prof Andrew Korach Kakabadze. Cranfield School of Management “It is perfectly possible for a board to take a decision no member believes-in .” Prof Bob Garratt. “Performance of top teams”

6. High Medium Low Necessary Desirable Unnecessary Stakeholder Analysis Reaction to Change Opponents Followers Advocates Exec Exec X, Y, Z Line Managers COO High Legend Department ‘x’ Staff Department ‘Z’ Prima Donnas Department ‘Z’ Stars Stakeholder Power & Influence CIO Consultancy ‘B’ Exec Unions HR Impact of Change Consultancy ‘A’ Medium Department ‘y’ Exec Department ‘x’ Stakeholder Support FSA The Press Exec Exec Supplier Low Market Research CEO

7. Stakeholder Management Plan Page 9

8. Manage the Leadership • Establish a sense of urgency • Create a powerful, guiding coalition • Ensure coalition understands 'vision’ • Communicate TEN TIMES more – and more often - than you are • Remove obstacles to the vision • Plan and create short-term wins • Do not declare victory too soon • Anchor the changes into corporate culture, not vice-versa Source: Prof. John P. Kotter H.B.R. Mar/Apr 1995