Managing Change:

1
Managing Change

• The Human Impact

Michael Collins Managing Director
2
The statistics

• Studies generally agree that somewhere between
  fifty and eighty percent of mergers fail.
• (Alexandra Reed Lajoux, The Art of MA
  Integration, 1998)

3
Common change models

• Elisabeth Kübler-Ross Death Dying (1969)
• The Five Stages of Grief denial, anger,
  bargaining, depression, and acceptance.
• William Bridges Managing Transitions (1991)
• Three Stages Ending Neutral Zone Beginning
• The Change House (AMP, 2000)
• Denial room confusion room renewal room
  contentment room

4
Problems with these models

• Relevant application (eg. is death dying that
  similar to job loss?)
• Most assume people progress through pre-defined
  stages
• They give a false impression of order and
  predictability (ie. control appealing isnt
  it?)

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So why is change so hard?

• Evolution has taught us to resist change and seek
  control of our environment
• We are hardwired to respond to threats (both
  real and perceived) eg. the fight or flight
  response
• Many people see change as a threat and as
  something they have no control over

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Its all about control

• Those with internal locus of control have the
  perception that they are responsible for what
  happens to them
• Those with external locus of control have the
  perception that luck, fate, other people or
  outside forces beyond their personal control
  determine their lives
• (Rotter, 1966)

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Research on locus of control

• Internals, tend to
• take responsibility for what happens to them
• see the events of life as having a cause-effect
  relationship with themselves as the cause
• be more independent
• be more achieving
• be more reliant on their own judgement and
  resistant to influence
• have a greater sense of personal power

• Externals, tend to
• suffer feelings of inadequacy
• suffer feelings of anxiety
• suffer feelings of fatigue
• suffer feelings of confusion
• suffer feelings of depression
• feel that things are pointless
• feel powerless
• feel worthless
• feel frustration and anger

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Does this sound familiar?

• Your involvement please
• Elect a spokesperson for your group
• As a group discuss your response to the following
  

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Its a business decision

• Your boss has asked to see you in 5 minutes to
  give you some important information
• You meet and are told that you have been made
  redundant and will finish up this week
• Questions for discussion
• Describe your initial feelings
• Describe your likely actions
• Describe your various thoughts

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Why is it so?

• Same event made redundant
• Different feelings
• Different actions
• Different thoughts
• Men are disturbed not by things, but by the
  views they take of them.
• (Epictetus, 100 AD)

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We often believe

• event thoughts feelings actions

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But you have just shown

• event thoughts feelings actions

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Change involves emotions

• Shock
• Anger
• Irritability
• Frustration
• Disbelief
• Fear
• Confusion

• Denial
• Anxiety
• Depression
• Stress
• Excitement
• Joy
• Relief

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Dont be fooled

• Change is rarely
• Rational
• Predictable
• Controllable
• Therefore, people are often not in the best frame
  of mind to take in information and to make
  decisions (leaders and followers alike!)

15
Change would be easy but ..

• Our thoughts are responsible for our feelings
• Our feelings drive our actions
• Managing change is about managing emotions
• And leaders have the biggest impact!
• Are they internals or externals?

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Effective leaders need to manage

• The rational side of change analysis, planning
  and project management
• The emotional side of change
• Being aware of their own reaction to change
• Understanding how others are reacting, or may
  react to change
• Minimising damaging emotions and the behaviours
  that delay progress

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Example restructure

• Rational Side
• Establishing key success measures
• Flexible transition planning that is well
  executed
• Involvement of all key stakeholders (where
  possible)
• Clearly defined well executed selection process
• Well planned and executed communication plan
• Risk management (customers, property, IP)
• Preparation of notifying managers/leaders

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Example restructure

• Emotional side
• Leaders need well developed abilities in
• Understanding their own emotions
• Understanding the emotions of others
• Managing strong emotions, and therefore
• using more appropriate behaviours,
• that have the right impact on others,
• who are also experiencing change.

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How do leaders learn this?

• You may recall Epictetus
• Men are disturbed not by things, but by the
  views they take of them.
• Leaders (and followers) can learn how to change
  their views
• This is a very powerful strategy when we cant
  change (ie. control) our situation

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Case study

• Background
• Manager at a local council
• Claims of bullying, harassment and intimidation
  against her
• She was stressed, angry and losing confidence in
  her ability as a manager
• Her team was understaffed, de-motivated and
  performing poorly

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Case study

• Solution
• Five one-hour coaching sessions
• Focus on understanding and managing her emotions
• Some unhelpful thoughts
• People often try to pull the wool over my eyes
• I must always have all the answers

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Case study

• Outcome
• She now feels more confident and in-control of
  the situation
• No longer takes things personally
• Is less easy to anger
• Her manager reported a change in attitude and
  better relationship skills

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Where do you focus your efforts?

• One-third who already posses the desired values,
  attitudes and behaviour and hence already fit the
  desired culture
• One-third who are willing and able to change to
  fit the desired culture
• One-third who do not fit and will never change to
  fit the desired culture

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Monitoring progress

• Forget the popular change models
• a more realistic way to navigate change is to
  monitor individual and group emotional states in
  terms of
• Frequency how often are they feeling frustrated,
  angry or stressed?
• Intensity on a scale of 1-10, how strong is this
  emotion?
• Duration how long does it last for?

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In summary

• Individuals are responsible for their own
  behaviour and are in control
• They feel what they think and then act
  accordingly
• If they control their thoughts, they can manage
  their feelings and behave more effectively
• By doing so, they gain a greater control over the
  situations they find themselves in
• They feel free to make choices which support
  their goals and objectives

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Questions?
Michael Collins Managing Director