Change Management Cooking Class

Luc's slides taken from www.reply-mc.com

Change Management Cooking Class

© 2002 - 2007 Reply Management Consulting bvba 2

• 95% of the population worries about change. The remaining 5% are managers who
wish to implement change. Imagine your relief if there was such a thing as a recipe for
successful change management. No more doubts, everyone would be motivated and
production wouldn’t be at risk. The cooking class in this slide deck may not guarantee
you a Michelin star, but if applied properly, you will save yourself a lot of time and
worries.
• Even though the comparison with cooking may not seem so obvious, it’s worth noting
that the chemistry of cooking involves molecules of different ingredients to be blended
through heating into a new form: a prepared meal. The same goes for organizational
change: heating up existing ingredients, occasionally adding some elements and
blending them into a new shape with a new objective.

Copying and distribution is allowed! 2


Think of a time in your life that you made a learning
breakthrough.
breakthrough.

What
was
it?


• If you were to write down the learning breakthroughs in your own life, what would they
be?
• If you were to map them on a scale of « in isolation – through interaction », where
would you put them?



Fact N°1: The Learning Pyramid
ISOLATION

10% READ

20% HEAR

30% SEE

50% HEAR + SEE
INTERACTION

70% DISCUSS WITH OTHERS

80% DO / EXPERIENCE
Brown, J.S. (2000)
Growing up Digital,
Change (march-april
2000) 90% EXPLAIN / SHOW
www.johnseelybrown
.com


• The Learning Pyramid illustrates how much of each level of learning we remember later
on. For example, we remember 10% of what we read, 20% of what we hear, 30% of
what we see and 80% of what we do. The pyramid illustrates what is meant by the
saying: ‘what I hear I forget, what I see I remember, what I do I understand’.
• This learning pyramid also illustrates the point of John Seely Brown when he says that
it is very easy for us to think that all knowledge is in the head, but we often ignore how
much of our knowledge exists in action, action through participation, participation with
the world, participation with the problem and participation with other people, i.e.,
practices. A lot of the knowing comes into being through the practices of the people and
the environment you’re working in.



Fact N°2: Teaching versus Learning
N°

Miller F. Improving
Business Performance
through Strategy
Based Learning
http://www.fernstar.co
m.au/publications/pap
ers/business_performa
nce.htm


• Bob Dylan sings: “you can lead a horse to the water but you can not make it drink.”
• There are several way to make the horse drink:
A) Push it
B) Pull it
C) When it is thirsty
• Which one works best?
• So the real question is: how can we make sure the horse is thirsty?
• The point is that teaching does not always result in learning. You can teach all you
want – learning happens at the speed of interest.
• The same logic applies to organizational change management: « Change all you want -
but execution happens at the speed of sense making »



Fact N° 3: People are People (1)
N°

THE CHASM

Pragmatists Conservatives
(Early Majority) (Late Majority)
Visionaries
(Early Adopters)
Technology
Skeptics
Enthusiasts
(Laggards)
(Innovators)

PEOPLE WHO PEOPLE WHO WANT SOLUTIONS AND
WANT THE CONVENIENCE
• Everett Rogers
(1962) Diffusion of NEWEST THINGS
Innovations
• Moore, G.A.:
Crossing the Chasm:
Marketing and Selling
High-Tech Products to
Mainstream
Customers,
HarperBusiness 1999


• In a 1962 book called Diffusion of Innovations Everett Rogers stated that adopters of
any new innovation or idea could be categorized on a classic bell shaped curve divided
according to following protagonists: Innovators (2.5%), Early Adopters (13.5%), Early
Majority (34%), Late Majority (34%), Laggards (16%)
• The point here is that you will find the exact same diffusion inside of organizations.
• Building further on Rogers’ observations, Geoffrey Moore's key insight is that the
groups adopt innovations for different reasons. According to Moore, early adopters are
technology enthusiasts looking for a radical shift, while the early majority wants a
productivity improvement. Both groups are divided by a chasm. Moore’s observations
come close to what you can expect when introducing a shift inside your organization, be
it a new performance evaluation system, new software or simply moving from one
building to another. According to Moore:
- Technology Enthusiasts (Innovators) are explorers.
- Visionaries (Early Adopters) are more geared towards exploitation. They are not
especially bothered by the fact that the product doesn't work. They are willing to make it
work.
- Pragmatists (Early Majority) want a product that works. They want a 100% solution
to their business problem. If they get the 80 % that delighted the visionary, they feel
cheated, and they tell their pragmatist friends.
- Conservatives (Late Majority) buy products because they really have no choice. They
are not reassured by having books about the product,because the existence of books
implies the product isn't simple enough to use. Conservatives will not tolerate
complexity.
- Skeptics (Laggards) are not going to buy, though they may talk other people out of
buying.



Fact N° 3: People are People (2)
N°

85%
PEOPLE WHO WANT SOLUTIONS
AND CONVENIENCE

To do:
- Integrate
- Be clear
- Communicate better
- Get better at how I
make knowledge
available.

The Jensen Group &
Northern Illinois
University College of
Business (1997)
The Search for a
Simpler Way. pp147,
www.simplerwork.com


• We should note that a five-year research for 461 American companies, which was
carried out by The Jensen Group and Northern Illinois University College of Business in
1997 discovered that complexity in teams and organizations is not an external factor,
but rather an ‘in-house’ creation. They documented the four primary sources of ‘work
complexity’, namely:
1. An inadequate integration of ongoing initiatives in the organization;
2. Unclear goals;
3. How we communicate (i.e. not only the bare fact of communicating but the
way you do it!);
4. How we share knowledge and make it available (i.e.: in isolation or in
interaction?).
• This top four emphasizes the importance of the relationship between project teams and
the organization for which they work. It is the primary task of the project leader to
manage these relationships, by making sure that these top four items are positively
integrated in the core activities of the team.



Fact N°4: Change is up Close and Personal
N°

51%
Anxiety
44%

43%
Confusion 22%

44%
Frustration
23%

34%
Fatigue
24%

28%
Resistance 24%

28%
Sense of Focus
55%

24%
Enthusiasm
51%

Feeling of 32%
Momentum 47%

32%
The McKinsey Hope
40%
Quarterly (June 2006)
global survey of
business executives. 24%
Organizing for
Confidence
39%
successful change
management: A Succesful Unsuccesful
McKinsey Global
Survey


• A recent survey conducted by the McKinsey Quarterly (2006) among 1536
executives of publicly and privately held businesses across a full range of
industries reveals the importance of emotions in the success of an
organizational change. The respondents who experienced a performance
transformation over the past 5 years were asked to rate it on a scale ranging
from completely successful to completely unsuccessful. Those who rated
their transformation as Completely / Mostly Successful and Completely /
Mostly Unsuccessful were asked what characterized the mood in the
organization during the transformation. The graphic shows the responses to
that question for both successful and unsuccessful organizations.
• McKinsey concludes that negative and positive moods are reported in
roughly equal proportions, with anxiety as the most common emotion, ahead
of confusion, frustration, fatigue and resistance. Among the positive moods,
a sense of focus, enthusiasm, and feelings of momentum occur significantly
unequal. Finally more of the top performers report positive moods, especially
focus and enthusiasm.
• Two points of attention here:
- This research confirms that you will be confronted with anxiety
and resistance, regardless of whether the change is positive or
negative.
- You can channel these emotions to the benefit of your change in
order to obtain more clarity and less confusion.
• Now the real question is: how do we channel these emotions so they can fuel
your project instead of blocking it?




Basic
Ingredients
(Knowledge, Skills, Motivation)


• Cooking can’t start without the basic ingredients. In cooking we often find them in
three groups: carbohydrates , lipids and proteins.
• In organizations these easily translate into Knowledge, Skills and Motivation. In this
first cooking lesson we will point out why these are the three basic ingredients in
anything you are likely to do with people in an organization.



The Three Basic Ingredients

ANSWERS TO THE QUESTIONS ANSWERS TO THE QUESTIONS
THAT REFER TO THAT REFER TO

en
‘HOW’ ‘WHAT’

K
KN
S
I LL

OW
nn
SK

LE
E DG
ku

E
SKILLS AND KNOWLEDGE
‘WHY’ IS THE FOUNDATION
WILL NOT GET ABSORBED IF
FOR ‘HOW’ AND ‘WHAT’
PEOPLE DON’T KNOW WHY

ANSWERS TO THE
QUESTIONS THAT
Overgenomen en
REFER TO MOTIVATION
aangepast uit
Greenhouse Group ‘WHY’
(2004), Organizational
Change Management.
Training modules
(unpublished).


As you can see on this slide every organizational change always has the same three
ingredients : Motivation (the emotional stuff below the surface), Knowledge and Skills.
These determine the domains of action for making the change happen. They are the
biggest needs during every cycle of change.
• Questions and reactions, which fall into the ‘Knowledge’ category, often indicate a
need for vision, a business case or an overview. These refer to the ‘what’ of the change.
• The ‘Skills’ category indicates a need for concrete and explicit knowledge, tools and
working instructions. In other words: people want to know ‘how’ they will make the
change happen.
• In addition there is also an entire range of reactions that fall into the ‘Motivation’
category (the underlying reason that drives the change: the ‘why’). These reactions
reflect people’s need for involvement and inspiration. The ingredient ‘Motivation’
determines whether people undergo the change or are part of it.



Why the Classic Approach Does Not Work

RUSH, RUSH, LET’S TRAIN THE QUICK, QUICK, INFORM THE
USERS! ORGANIZATION ABOUT THE
CHANGES!

en

KN
KN
S
ILL

OW
nn
SK

LE
DG
DG
ku

E
LET’S NOT WASTE
TIME ON
PARTICIPATION!

Adapted from: MOTIVATION
Greenhouse Group
Change Management.
Training modules
(unpublished).


• An often made mistake in organizational change projects consists of postponing all
contacts with the target group until the very last minute. Too much influence from the
target group often has a delaying and disturbing impact. ‘Now we really need to provide
information’, is the usual statement. Your team isolates itself from the rest of the
company and the communications department fires unidirectional communication
(Knowledge) at the target group.
• As we illustrate on this slide, people feel as if a concept is being forced upon them and
they aren’t really given the time to fully comprehend it. The knowledge provided during
training is so theoretical that it has nothing in common with practice. Many of the
workers wonder why they have to spend all that time in training and are annoyed
because their day-to-day work is just laying around.
• People have received all the explicit knowledge that is – rationally speaking –
necessary to face the change. They have had the Know-whats pushed down their
throats. But the project grinds to a halt in the production phase because people have not
been given the time to participate and build up Know-how. As a law of nature, you will
be confronted with a performance drop anyhow. Postponing participation to the very last
minute will only make it worse.
• Even before the change really has started, you are stuck in a negative, downward
spiral because most target groups are not being motivated to take the project in hand.
When reactions indicate that there is a need for involvement, an information session or
training will have the wrong effect. It’s important to know where the needs lie at what
precise moment. The best way to find out is to involve the target group in the project in
a timely manner. A change is always a discomfort, and discomforts are easier to
deal with when you participate in making it happen.



Participation is the Platform

en
TRAINING & COMMUNICATION
COACHING

KN
S
ILL

OW
nn

WL
SK

E
ED
GE
ku
INVOLVEMENT

Adapted from: MOTIVATION
Greenhouse Group
Change Management.
Training modules
(unpublished).


• The inevitable truth is that people will need to build the Know-how anyway in
order for the project to work, so it is better to do that during project
preparation than to pay for it in terms of a sputtering go-live. As we illustrated
in this slide, people should be given the opportunity to be part of the creative
process that is expected from them. That is why it’s necessary to effectively
involve them before, during and after the change.




Basic Tastes
(Mad, Sad, Glad, Scared)


• In cooking it’s all about tastes. We all have personal preferences with regards
to tastes and often our preferences are influenced by our culture and social
background.
• Likewise, in organizational change management it’s all about feelings. Two
remarkable parallels with the basic tastes stand out:
- There are also 4 basic feelings
- How we experience a change emotionally is to a large extent influenced
by our culture and personality



The taste buds on our tongue
(regardless of our cultural background)

ANGER

FEAR

HAPPINESS

Based on: Callahan, SADNESS
Clint (2004),
Abenteuer Denken,
Genius Verlag.


• You need to know that there are four basic emotions at hand; i.e., four basic
fuels that contain the energy we need in order to move from one state to
another. Fear, anger, sadness, and happiness are the four basic emotions that
can be experienced by every person in any culture. Just like the four basic
tastes: bitter, sweet, sour, and salty.
• However, as we grow up, the way we experience things is more and more
determined by our cultural context (family, social class, organization, country,
friends, generation,…). At birth we all have the same starting point: all the food
that we eat has a taste (sweet, sour, bitter, salty) and is stored as such in our
brain. Likewise we encode each change in our lives with a feeling (Happiness,
Fear, Anger, Sadness). Whether we experience change in a positive or negative
manner also depends on our cultural context. This is a very valuable insight,
because it proves that emotions follow perception (and not the other way
around).

In other words: WE CHOOSE OUR RESPONSES TO THE
WORLD

• Of course, our perceptions are not only determined by our cultural context.
The intensity of our experience is partly determined by our very personality.
• In short: if you want to talk about organizational change you are not going to
‘get it’ from an academic essay, but rather from the personal witness of the 43
year old helpdesk employee, mother of two adolescents, meeting ends for a
mortgage and a car loan and worrying about her jobless husband.



Perception = A Choice


Now hang on, because this is where it gets interesting. There are three things
you should know about emotions.

1. Perception is a choice. As a result, whatever feelings we experience are
not an outside event but the result of our personal choice on how we perceive
an outside event. It is the basic insight that is underlying one of the key points
of the bestseller Fish!(*): Choose Your Attitude - Each day you choose how you
are going to act or which "side of the bed" you wake up on. The choice is yours
and, the way you act, affects others.
2. Emotions are fuel. Emotions provide the basic energy that is necessary to
get anywhere from your current state.
3. Emotions are data. Once you are able to disconnect the emotion and read
the valuable information that is hiding behind it, you will soon find out that
there is a positive use of these emotions.

(*) Fish! A Remarkable Way to Boost Morale and Improve Results by Stephen C. Lundin,
Harry Paul, John Christensen. ISBN: 0786866020



The mechanics of our perception?
(or: ‘why don’t you like what I like?’)
don’ like?’

• Luc Galoppin &
Siegfried Caems
(2007) Managing
Organizational Change
During SAP
Implementations, SAP
Press.

• Based on: Weick, K.:
Sensemaking in
Organizations,
Thousand Oaks: Sage
Pubications. 1995


• Culture is a sense making mechanism that works like a pair of glasses you are wearing. Pink-
lensed glasses will make you feel happier than black-lensed glasses; that much is certain. What is
less obvious, though, is that glasses of a certain color will make you see certain things more clearly
and completely ignore other things; in other words, they determine the data you select. So, as a
starting point: culture is a sense making mechanism that determines our perception.
• Sense making is something we do all the time (you can not 'not do it‘, like it is impossible to ‘not
taste’ the food that is in our mouth) and it always follows the seven steps that are derived from Karl
Weick’s seven characteristics of Sense Making in organizations:
1. The Past: We make sense of our experiences by comparing them with previous experiences. The
organizational past is an important indicator in predicting the reaction to the current organizational
change. The past is something that comes walking in through the back door of emotions. People
remember events that have the same emotional tone as what they currently feel. Past events are
reconstructed in the present as explanations, not because they look the same but because they feel
the same.
2. My Relations: We make sense of changes in organizations while in conversation with others,
while reading communications from others, and while exchanging ideas with others.
3. My Labels: People are sense-making creatures. Whenever a change happens that affects us we
give it a label and put it into a known category (dangerous, stupid, beautiful, etc.). In terms of
Almost instinctively, we respond with familiar questions: Who is behind this? What are the
credentials of those people? Who said so? What will become of us after that change? Do they have
the support of management?
4. A Declaration: Words have consequences. We should never underestimate the power of words
and conversations. A situation is “talked” into existence, and the basis is laid for action to deal with
it. Declarations are the way we translate stuff from below the surface into explicit knowledge. As a
simple example, when people constantly say that “this project stinks” they create a climate in which
the observation of difficulties is stimulated and the observation of possibilities is constrained.
5. The Real Story: People are interested in the truth, not the details. And people are not stupid.
We construct the meanings of things based on reasonable explanations of what might be happening
rather than through scientific discovery of “the real story.” Here is a warning flag to heed at this
point: What is a simple truth for one group, such as managers, often proves implausible for another
group, such as employees.
6. The Timeslot: Sense making is linked to timing. Like an airplane waiting for takeoff, an event
will only get a limited slot for takeoff in the attention span of an individual. If that moment of
attention happens to be the right one, it helps in setting a culture.
7. The Triggers: Nobody is capable of observing it all. Our observation is based on extracted cues.
The cues that we observe depend on what we expect to observe, As a kind of self-fulfilling
prophecy, we shape our reality according to how we expect it to be. When we think we are going to
succeed at something, we will be triggered by every cue that confirms this reality and act upon it,
and vice versa.
• One final note: Focusing on cultural differences, analyzing, and interpreting cultural indexes and
theories will only get you paralyzed because there is no true or false when it comes to cultures.
Rather, focus on sense making mechanisms like the above.




Recipes
(Forms of Resistance)


• There are different ways of preparing something with the same ingredients
and most of the times we have a preference for a certain style of cooking:
French, Italian, Fast Food, Veggie, Fusion, Grandmother’s kitchen,…
• In the same way there are different ways to go about with the basic emotions.
Here as well, we often have certain preferences.



The Drama Triangle

Persecutor Rescuer
Anger Fear

• Callahan, Clint
(2004), Abenteuer

Victim
Denken, Genius
Verlag.
• Karpman, S. (1968).
Fairy Tales and Script
Drama Analysis.
Transactional Analysis
Bulletin, vol. 7, no.
26, pp. 39-43.
Sadness
(http://www.itaa-
net.org/TAJNet/articles
/karpman01.html)


• The problem with emotions is not their intensity, but rather the fact that they
always come in disguise. You will almost never hear people saying that they are
scared, angry, or sad because of a certain change. People communicate their
emotions through “playing games.” The analysis of these games is the study
domain of Transactional Analysis. Transactional Analysis proposes a simple
decoder for reading the emotions that occur as a result of changes: it is called
the Drama Triangle. Fear, Anger and Sadness hold the principal roles in this
game. The associated roles are: The Persecutor role, The Rescuer role, The
Victim role.
• A persecutor will think of others as “not OK” and will use this against them by
accusing them, belittling them, suppressing them, etc.
• A rescuer also thinks that others are “not OK” and helps them because he is
convinced that they are not capable of helping themselves.
• A victim thinks of himself as not OK and therefore will seek out a persecutor
for confirmation or a rescuer because he or she “is incapable of dealing with it.”
The role of the victim is probably the most powerful of all three. A good victim
can create a persecutor in every situation.



Warning

“Far and away
the greatest source of bullshit
with which we must contend
is ourselves”
-- Postman, N. & Weingartner, C. (1969) Teaching as a Subversive Activity


Google: « cognitive dissonance » and you will find that Wikipedia describes it as
« Overjustification ».
Unfortunately every human being is equipped with cognitive dissonance
(evolutionary biologists may claim that it is a survival mechanism).



An Alternative Response to Resistance
I have no idea why All victims, They’re so stupid Yeah, I know the
these a**holes persecutors that they don’t type: you invest all
resist the stuff I and rescuers… even understand your time and
prepared for them the drama knowledge, and all
triangle! they do is react like
monkeys

Either I know OR MAYBE…
something they They did
don’t, or they something you
know something did not want
I don’t them to do

What they did They did
does not fit into something you
my model of how did not expect
change happens
You are asking
Maybe I them to do
have made something that
a mistake feels unsafe

I don’t You have
Karten, N. (2002). understand created a
Communication Gaps
and How to Close their point problem
Them. Dorset House of view…yet for them
Publishing, New York.


• How can we get the people who resist so hard to pull the cart with same
amount of energy? You don’t need to reduce the energy of the resistance, but
instead you should change the underlying beliefs that guide it against the
change.
• The starting point for doing so is to offer yourself an alternative interpretation
of resistance. For all the people that you labeled as “resistant,” have a look at
the following alternatives in the grey text balloons:
- I don’t understand their point of view…yet.
- They did something I did not expect.
- They did something I did not want them to do.
- What they did does not fit into my model of how change happens.
- Either I know something they don’t, or they know something I don’t.
- Maybe I have made a mistake.
- I have created a problem for them.
- I am asking them to do something that feels unsafe.
• The point is that when we label a person as “resistant,” we stop the
conversation, we map them on the drama triangle, and we place ourselves high
above it. Rather than sitting in judgment (ISOLATION), seek additional
information that would help you understand the person’s reactions
(INTERACTION).



Managing Resistance (NOT: Avoiding it)

Counter
resistan
ce with
Respec
t

W
hy
t
ts until i
n persis
?
unicatio
A comm is receiv
ed
?
So
Managing resistance
=
Acknowledging receipt



Your Reminder on Resistance

To do:
- Don’t take it personal
- Acknowledge receipt
- Shut up
- Listen
- Involve
- Shut up
- Listen





Cooking is
Chemistry
(The Basics)


• In organizational change management you will find as much schools of
thought as there are cooking manuals. The purpose of this part is to
demonstrate which ones are the absolute basics you should be aware of
(actually, all the others are variations to their main theme!).
•So who are the likes of Escoffier, Bocuse, Carliccio and Parker in the kitchen of
organizational change?



Knowing the Boiling Point

In order
to unde
rstand a system
,

y ou
sho
ul d
try t
o ch
ang
Quote of Kurt Lewin,
one of the founding
fathers of
e i t.
organizational change
management


• Kurt Lewin (1890 - 1947), a German-born psychologist, is of the modern
pioneers of social, organizational, and applied psychology. Lewin is often
recognized as the "founder of social psychology" and was one of the first
researchers to study group dynamics and organizational development.
• Lewin, in his wisdom, had it right. He said, ‘‘In order to understand a
system, you should try to change it.’’
• All of a sudden the surface of the water isn’t flat anymore, because the
molecules below the surface started moving in an unpredictable sense. This
is the boiling point and a different “logic” applies.



The Basics of Change Management Chemistry

• Kubler-Ross, E. : On
Death and Dying.
Macmillan, 1969
• Bruner, J.: The
Process of Education,
Harvard University
Press 1960


• It is striking how the major insights of the change cycle come from two
angles that seem at first to be opposites: development psychology, and
research on death and dying. Psychologists and biologists observed that we
typically find children whining and being more difficult when they learn
something new and it often takes a while before they adapt to and
assimilate these new abilities. For human development “things will get
worse before they get better” is almost a law of nature: A biological upgrade
of our brain software leads to a drop in performance before we pick up and
use our newfound abilities.
• On the complete other side of the spectrum, Elisabeth Kuhbler Ross (1969)
has described her work with terminally ill patients and found that they
typically come to terms with their prognosis in five stages: denial, anger,
bargaining, depression, and finally acceptance. In these cases, it is self-
esteem that shows a serious drop-off and then picks up with acceptance in
the same way as an infant coming to terms with its new abilities. Although
most organizational change is not of a life-or-death nature, people may
experience similar stages as they adjust to it, making Kuhbler Ross’ advice
highly applicable.



Unfreezing – Changing - Refreezing

« Things will get worse
before they get better »

Edward A. Murphy,
Jr. was one of the
engineers on rocket-
sled experiments
undertaken by the
U.S. Air Force in the
1940s to test ejector
seat technologies.


• In case you would wonder who « Murphy » was, apparently, the guy really
existed…
• Nevertheless, Kurt Lewin was the first to make active use of the cycle theory
that things get worse before they get better in organizations. No change will
occur unless the target organization is unfrozen, and no change will last unless
it is refrozen.
Unfreezing
By far the most difficult and important stage is that of unfreezing, the
creation of a motivation to change.
Changing
Once someone is unfrozen, he or she is more likely to pay attention to
information, ideas, suggestions, or even orders that were previously
ignored. People become active problem solvers because they are
uncomfortable. They become motivated to change. It is important to
note that people may have had strong disconfirmation in the past but
have not felt secure enough to do something about their situation.
Refreezing
During this phase the new behavior becomes a habit. Research indicated
that only internalized behavior can be permanent without outside
validation (research by Edgar Schein in 1980 – another guru of
Organizational Change Management). Identification requires regular
validation in the form of social support. Obeying, requires continuous
control. Even if the change is being induced from a position of power, it
is essential to learn the even greater power of being helpful and
supportive. People must be unfrozen to change; they must hurt
somewhere. But that is not enough. Equally important is their sense of
psychological safety: that it is OK to try something new and to give up
something old and familiar.



Microwave Expectations … Lead to Fast Food
Generations

Future
State
ct
xpe
ee
at w
Wh

Performance
Current
State

The natural
cycle of
change

Time
Luc Galoppin &
Siegfried Caems
(2007) Managing
During SAP
Press.


• Looking at the change cycles on the previous slide, they seem quite logical
and straightforward. Yet, when it comes to making a change happen in an
organization, a team, or a project, we act as if a different logic applies. We
somehow seem to think the natural cycle of change does not apply to our
project. But it does.
• The dotted line in this slide shows the expectation that people might have
with regard to a transition from a current state to a future one. The fact that we
perceive this transition in this way is caused by the fact that we look at
organizational changes purely as a mathematical exercise. However, it is a false
expectation because, when reality settles in, we are puzzled by the emotional
responses to the change and terrified by the delays and the drops in
performance. But we are only witnessing nature having its way.
• Emotional and psychological factors ultimately decide the duration and
success of the organizational change. Whenever people are involved,
performance will drop and resistance will come. Either we ignore it until the last
minute or we accept it as a given and incorporate it in our approach.




The 4 boiler
plates
(A Compelling Case)


• If you want be become a good cook, it will take some practice and “failing
forward”. Along the road you will discover how the heating equipment works
and how to make best use of it: gas, electricity, induction, fire, grill,...
• In the language of Organizational Change Management: along the way you
will find out what works best in your environment to heat up or cool down
things in your organization.



The 4 P’s
P’

Burning platform Current State

PUSH PROGRESS

PLAN PULL

Jensen, Bill (2004)
The Simplicity
Survival Handbook.

Next Steps Destination
Perseus books,
Cambridge MA.


• By now you must know that I am a firm believer and a copycat of successful
marketing concepts. (In fact, marketers know more about how to cope with a
changing environment than any other people inside an organization. In my opinion, the
survival of the majority of organizations depends on their marketers’ ability to respond to
the “more-better-faster-now” changes in customer environment. Changing is what
marketers are good at, and that is why their insights are valuable when making change
happen inside a company)
• So, here’s to marketing and one of its core concepts: the ‘marketing mix’ of
Philip Kotler. Remember what the 4 P’s of marketing are (Place, Product,
Promotion and Price). Well, in organizational change management, there is also
a mix that applies. And it equally contains 4 P’s…
• People tolerate management’s logic but they draw their own conclusions. That
is why it is essential to formulate the need for change as clearly as possible. But
a good cook is well-prepared and has a clear plan. According to Jensen Group a
compelling case for change is always built up along the lines of the 4 Ps:
1. PUSH: people will only take the leap into the unknown if their house
is on fire. That is why the first step always serves to indicate that there
is no other option than change.
2. PROGRESS: the answer to the question: 'where are we and what
have we accomplished to date?', which clearly indicates which certainties
and means are at our disposal to undertake this process of change.
3. PLAN: a clarification of the different steps ahead of us and actions
that we need to undertake in order to reach the nearest milestone and
the one after that and so on.
4. PULL: the final destination, which serves as the magnetic North or
the lodestar in case people would lose a sense of direction.
!!! There is also a 5th P: getting all the information on one and the same
Page



So what is Resistance?

The emotion
that occurs
when our
expectations of
“the way things
are today” are
interrupted.


•Resistance is the emotion that occurs when our expectations of the way things
are today are interrupted. Two words are important in this definition:
a.) Emotion. The essence of resistance is that it creates an emotion. That
means not logical, not rational, and—most of all—not predictable.
b.) Expectation. Resistance does not only occur when things change, but when
our expectations are interrupted, whether or not that makes rational sense.
(Family therapist Virginia Satir – another guru in the change management
arena - calls this “Foreign Element”)
• It's not about positive or negative change; it's about the uncertainty that is
inherent to every change. An often-heard saying with regard to change is: “The
only one who likes to change is a baby in a wet diaper.” Not only is this is true
for all changes, (whether they are positive or negative), but it gets us to the
heart of the matter: how people grow up. Just like the infant who returns into
the safety of mother’s arms, we are looking for a safe place when an upgrade of
our awareness kicks in.
• The point to remember in the context of organizational change is that human
beings will only make the shift to the next level (the future state) when they
have a safe place to return to. The best way to provide this safe place is
through participation and interaction. Participation gives people the feeling of
control over their own destinies, and that can make the difference between
success and failure of your approach.



Predicting Resistance

EASY

Degree of Behavior
Change Required
EASY SMASH
SELLS HITS

ROUGH LONG
SPOTS HAULS

DIFFICULT
LOW HIGH
Degree of WIIFM
(What’s In It For Me)
Gourville, J.
(2006) Eager
Sellers, Stony
Buyers Harvard
Business Review


This brings us to the insight of John Gourville when he says we need to pay attention to the
psychological costs when new products force consumers to change their behavior. He says the first
step is to ask what kind of change they are asking of people. As this slide points out we need to
figure out where the changes for the users fall in a matrix with four categories: Easy Sells, Rough
Spots, Long Hauls, and Smash Hits. Each has a different ratio of WIIFM (What’s In It For Me) versus
behavior change required from the person involved .
As a result of the mapping of the chart, you will be able to estimate the resistance for
each change. Accordingly, you will know which topics need more time for conversation or
in which order you want to communicate them (we recommend communicating the bad
news first). To make things a bit more concrete I have added some typical examples one
can encounter during SAP implementations.
• Rough Spots: Limited WIIFM and significant behavior changes. These changes typically refer to
transactions that require more clicking and data entry than before with no visible result for the user.
If the communication of such a topic is restricted to the know-how and know-what (i.e. the
instructions and the procedure) these users (and their supervisors) may quit on data accuracy and
timing. If you want people to commit to these rough spots, it is going to require a lot of
context (know-why) and a good monitoring of the supervisors as agents of change.
• Long Hauls: Significant WIIFM and significant behavior changes. These are typically the
transactions that require a complete different way of thinking, a considerable number of clicks and
screens and a lot of parameters to look after at the same time. We really want people to persist in
this long period of learning how to work in a totally different way. This will only work when we
communicate regularly the know-hows (refreshers course, quick reference cards,
coaching on-the-job, etc.), the know-what’s (e.g. feedback about the KPI’s to all the
stakeholders) and the know-why’s (context: why are we doing this?).
• Easy Sells: Limited WIIFM and limited behavior changes. These are the very small changes of
very basic actions. For these changes, sticking to the know-how and the know-what may work out
fine, although we recommend that you take every opportunity you get to reinforce and link back to
the know-why.
• Smash Hits: Significant WIIFM and limited behavior changes. These are the time savers and
visible process improvements compared to the old situation. Most of the times, these are kind of
features that users themselves are keen on telling their colleagues about, although initiating them
yourself can do no harm to your relationship with the users and the trust they put in you.




Nutritional
Value
(Feedback)


• Once you are able to disconnect the emotion and read the valuable
information that is hiding behind it, you will soon find out that there is a
positive use of these emotions, we call this the nutritional value.
• Of course, nothing comes for free and it will take some practice to decode a
situation and find out its nutritional value



The Nutritional Table of Feedback: Decoder

© 2005 Reply
Management
Consulting, Luc
Galoppin


Anger—Clarity. When we are angry, we are often very aware of what we want
or don’t want. This leads us to clarity about our objective and the objective of
our team. Anger helps us to take decisions, to stay alert, and to stop confusion.
There is a thin line between destructive anger and a vision that fuels a change.
They both build on the same emotion but with a different sense of
responsibility. When you allow frustrated people to find expression for their
anger and you genuinely receive their communication, ask them what you could
do to improve.
Fear—Courage. When we are afraid, this means we are approaching unknown
territory. New opportunities arise when we have the courage to take that
direction. Fear often works as an indicator towards dangers, but also towards
new opportunities. Often, the most frightened people are the closest to building
the courage to deal with the unknown. Courage builds on the same emotion
that can freak us out. Surprisingly, when you allow frightened people to put
their anxiety into words, they tend to make room for courage to meet the
challenges they are facing.
Sadness—Contact. The essence of each relationship is contact. The measure
in which we are in contact depends on the empathy and the self-confidence that
we have. Cynicism, for instance, is a hidden form of sadness. Cynical people
often are very good at sensing which relations are being left behind in a change
project. Again, there is thin line between cynical reactions and emotional
intelligence. The underlying emotion is the same. Although cynical people are
tough, they also know exactly who is left out. When they see the purpose
behind the change, they may even be the best relationship builders.



Warning

“The Soft Stuff
is the Hard Stuff”
-- Michael Hammer





Tools for
Cooking
(Coaching)


• The essence of cooking is in the execution of it – not in the planning and
strategizing about it. In terms of organizational change this means that the
work is done in interaction, through participation. And this will get you hurt,
surprised, confused, excited, bored, scared, etc… So you need some tools to
navigate and keep an overview throughout the adventures of human
interaction.
• You may wonder how a coach divides his or her time with the team he or she
has been assigned to. The easiest anchor point for coaches is found in two of
the three ingredients of change. To know the optimal frequency, you need to
examine the combination of the ingredients know-how and know-why.



The Skill – Will Matrix

HIGH

Coach Delegate

(KNOW-HOW)
SKILLS

Supervise Support

LOW
LOW HIGH
MOTIVATION
(KNOW-WHY)
Landsberg, Max
(1998) The Tao of
Coaching. Knowledge
Exchange


• The so-called Skill-Will Matrix (Landsberg, 1998) in this slide can be used to
this end. This matrix is often used to estimate the frequency of coaching. The
model is based on four combinations, each with a different follow-up.
- Supervising: The coach clearly defines the roles and tasks and
supervises their execution. Decisions are made by the coach and
communication is unidirectional.
- Coaching: The coach still determines the tasks and roles but also asks
the coached person for suggestions. Decisions are made by the coach,
but communications are dialogue-based.
- Support: The coached person accepts the decisions and executes
against them. The coach facilitates decision-making but is no longer in
the driver’s seat.
- Delegating: The coach is still involved in problem-solving, but the
coached person is in the driver’s seat. The coached person decides when
and how the coach is involved.
• After a day or two of walking around and helping out people, you should be
able to map the people on the Skill-Will Matrix. However, in practice we often
find that coaches use this matrix to confirm their prejudices. Supervision for
instance, will not inspire people to take responsibility and to work
independently.
• The skill-will balance of a person is not a constant given; it evolves as time
goes by. Nevertheless, it is a good guideline for estimating your timekeeping as
a coach, especially when you are coaching an entire team.




Nutritional
Pyramid
(Knowledge Management)


• Most change projects represent substantial investments in training and
documentation. But sadly we never look at the result of these actions. The
investments are considerable and the expected result is often not forthcoming.
• It’s like going on a diet, doing everything according to the book and not losing
a single pound.

Why?
Did we miss something?



“Need-to-Know” About Knowledge
Need- to- Know”

Brown, J.S. (2000)
Growing up Digital,
Change (march-april
2000)
www.johnseelybrown.c
om


• Instructions (Know-How) and documentation (Know-What) are only the tip of
the nutritional pyramid. At the top of the pyramid you will find all the
information contained in instructions, procedures and manuals. This is the
knowledge transfer, which garners the most tangible investments. But the
bottom part of the pyramid is much more important: the knowledge as it lives
within the organization. This knowledge cannot be classified in an orderly
manner; rather it’s a bricolage (*) of all the formal knowledge featuring real
issues, possible solutions, actions, war stories and your colleagues’ experience.
• A manual or a procedure will not help you figure out whether a problem is
important, or whether a solution is elegant, or whether it is even a solution.
Real knowledge is not taught, it is experienced in the form of unwritten stories
and conversation. If you’re not present when the experience is created, you will
not create knowledge. A perfect educational project, which is documented with
the best manuals and elearning is still not a guarantee for successful
organizational change.
• A second conclusion is that there is no such thing as an expert. It is wrong to
express intelligence in terms of IQ because in reality intelligence is the social
skill to work together in a network of experts. If we only take into account
Knowledge and Skills in our project, we actually overlook the most important
ingredient: Motivation.
• The real work of organizational change starts with the support of participation
in the field. In the case of a change, in combination with a reorganization,
follow-up in the shape of coaching is not a luxury.
(*) When using the word ‘bricolage’ we refer to an observation of anthropologist Claude
Lévi-Strauss. He established that people don’t use an algorithmic and logic approach in
their thought process but that our mind works according to the principle of ‘pick and
mix’. A ‘bricoleur’ uses concrete, used materials to create something new.



The 4 phases of Learning

Incompetent Competent

UNCONSCIOUS CONSCIOUS CONSCIOUS UNCONSCIOUS
INCOMPETENCE INCOMPETENCE COMPETENCE COMPETENCE

Unconscious Conscious Unconscious

Luc Galoppin &
Siegfried Caems
(2007) Managing
During SAP
Press.


Our biggest task in an organizational change will be to take people by the hand
and eventually to make sure they can help themselves. This is the domain of
learning. A useful way to understanding what happens when we go through a
change is to look at what happens when we learn something new. Learning
always takes place in 4 stages as shown in this slide:
• Unconscious Incompetence
• Conscious Incompetence
• Conscious Competence
• Unconscious Competence
Take for example the first time that you drove a car. Your whole life until then
you have been a passenger without any driving competence. But you are
unaware of it because you never tried it.
After getting into the driver seat for the first time and trying to start the car and
drive, you know enough to realize that you are incompetent at driving a car.
You are incompetent, and your first confrontation with the dashboard, the
gearbox, the steering wheel and the pedals made you painfully aware of your
incompetence. You are now the second phase of learning: Conscious
Incompetence. This is where the unfreezing happens in Organizational Change.
One day, you are ready to do the tests in order to obtain a drivers license. At
that point you are most probably in the third learning stage: Conscious
Competence. You are skilled at driving the car but it still demands a lot of your
attention.
Finally, it is only after a long while that you will be able to drive the car as an
automatic response, as doing normal checks, turning the keys and driving off.
You accomplished the 4th learning phase: Unconscious Competence. The skill
has become a habit by now, which requires no extra attention.



The 4 phases of resistance

Incompetent Competent

Resistance

UNCONSCIOUS CONSCIOUS CONSCIOUS UNCONSCIOUS
INCOMPETENCE INCOMPETENCE COMPETENCE COMPETENCE

Time

Luc Galoppin &
Siegfried Caems Unconscious Conscious Unconscious
(2007) Managing
During SAP
Press.


• When we translate this dynamic to the context of an organization and start to
wonder what this means in terms of resistance, we will find that these 4 steps
are a reliable indicator to predict when resistance will occur on a larger scale.
• As shown in this slide, people will only start to react to the change from the
moment that they become aware of their own incompetence in the face of
change. What’s even more important is that this resistance is actually the
learning tension that is necessary to absorb knowledge. The frustration of one’s
own incompetence is the best motivation acquire new skills and knowledge.
• In practice this means that you will get a lot of resistance in the classroom.




Finishing
Touch
(Meeting and Integration)


• An organization does not grind to a halt while a project is preparing
organizational change. We often find that ‘our’ project has to compete with one
or more projects for the attention of the target group. It is therefore essential
to continuously watch over the integration of your project within the
organization. The organization and facilitation of meetings is the most important
instrument to do so. Realistically the course of the project may be adjusted
during the project due to a changing environment.
• The proof of the pudding is in the eating.



Doing away with bellyaching:
The four-leaf clover of efficient meeting
four-

Overgenomen en
aangepast uit
Greenhouse Group
Change Management.
Training modules
(unpublished).


• When referring to the finishing details for a dish we are referring to the
communications sauce that is poured over it. One of the most important
communications instruments for a change manager is the meeting. In order to
use this channel in the best possible manner you need to be aware of the
different reasons why meetings are held:
- providing/gathering information
- generating ideas/brainstorming
- listing of issues
- solving of issues
- taking decisions
- generating solidarity with the team/teambuilding
• When people are not capable of prioritizing one of these targets the meeting
has no just cause and the valuable time and attention of the participants is not
used.
• Secondly, it is good to bear in mind that participants are entrusting you with
part of their life, i.e. the time that you are meeting with them. Always ask
yourself the three following questions (Jensen Group, 2004):
- What is the participant getting from this meeting?
- What is the participant’s added value?
- If the participant is suddenly taken ill, can the meeting take place
without him/her?



“Excellence.
Always.”
-- Tom Peters





Secret
ingredient
(Responsibility)


• Focusing on cultural differences, analyzing, and interpreting cultural indexes
and theories will only get you paralyzed because there is no true or false when
it comes to cultures.
• But what is the one thing that blends it all together? What is the secret behind
results?



Responsibility is a choice

<< Respons – Ability >>

Theory of the free choice external control psychology
• Joseph Chilton
Pearce
“The Magical Child”
Plume Books , 1992 Whose behavior can you control?
• Glasser, William
(1998) Choice
Theory, A New
Psychology Of
Personal Freedom.
Harper Perennial,
New York.


• Instead, we advise to focus on an ingredient that all cultures have in common,
be it cross-national, cross-functional, crossgender, or cross-generational:
Responsibility. This is a very simple, yet very essential insight of the book called
Who Moved My Cheese? by Spencer Johnson (1998). According to Johnson,
when something happens that interrupts our reality we can do one of the
following:
- Put all our energy in trying to get back to how it was before (“Why is
this happening to me, it’s unfair”);
- Take it as a starting point and look for other available options
(“Something interesting happened, let's see which options we have as a
result of this change”).
• Responsibility is the specific ingredient that makes the difference here.
Responsibility is a choice, not something that happens to you.
• Everything becomes clear when we study the English definition for
“responsible”: It literally means “able to respond” or “being capable of
responding.” When people choose to take responsibility in a situation, they co-
own it. This insight is fundamental for change management. We always have
the choice of becoming the owner or the victim of a situation. William Glasser
calls this the Choice Theory. An owner will look for solutions; a victim will
search for a persecutor or a rescuer.



Procedure to change: The $64 Mio question
Who is responsible?
(2 possible answers)

Which answer gives you most possibility?


• Who is responsible?
(2 possible answers)

ME
NOT ME (victim of circumstances)
• Which answer gives you most possibility?
ME (start there)
• What is responsibility?
Respons able => to be able to repond
• It is a choice!



About me

My opinions:
http://reply-mc.blogspot.com
Your comments and questions:
luc.galoppin@reply-mc.com

Thanks!


• Luc Galoppin is managing director of Reply Management Consulting, a
consultancy specialized in organizational change. He picked up his
organizational change skills on projects with different scopes and user
communities and interim management assignments. His customers are based in
the chemicals, gas, and cosmetics industries, as well as in the public sector.
• He is the co-author with Siegfried Caems of the SAP PRESS book Managing
Organizational Change During SAP Implementations.

You may reach Luc via email at luc.galoppin@reply-mc.com

Luc blogs regularly on the following spot: http://www.reply-mc.com


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