Slide1 : Change Management and Organization Transformation
Slide2 : Questions About Change Why What When Change
vs.
Not change Win/Lose Who Quantitative
vs.
Qualitative You change
vs.
I change Lead
vs.
Follow You change
vs.
I change Gradual
vs.
Radical Cost/benefit Success Measurement Short term
vs.
Long term Commitment What if How deep Purpose Knowing
vs.
Doing Continuous
vs.
Disruption Risk Confusion Resource
Slide3 : Different Types of Change Reactive/Proactive/Preventive
Constructive/Destructive
Continuous/Disruptive
Slide4 : Confusion Curiosity Results Unconsciousness
Denial
Certainty
Righteousness Time True competence Practice & Feedback Experimentation* * Method of Experimentation
Establish premise/hypothesis
Design & conduct experiments
Make observation & gather data
Analyze data & reach conclusions
Apply conclusions to real issues Discovery Insights The Learning Curve
Slide5 : Paradigm Shifts and Continuous Renewal Process Success becomes the engine of failure
Initiate change or force to change
Deep change or slow death Results Time
Slide6 : The Organizational Challenges of a growth company Complexity of size, speed and sophistication
Strategy: Focus Vs Diversification, Profit Vs Market Share, Build Vs Buy, New Products Vs New Markets, Old Vs New Business Models, Risk Vs Rewards, Aggressive Vs Conservative
People: Attracting New Talents, Developing Existing People, Managing the Misfits, Owners Vs Managers, Founder’s syndrome, Leadership and Succession
Structure: Hierarchy, Bureaucracy, Territory, Synergy
Process: Complexity, Duplication, Internal-focused, Disconnection, Speed, Quality
Resource: Competition, Wastage, Idle
Culture: Keeping the core in fast dilution, Complacency, Inertia
The Path of Technological Development : The Path of Technological Development Abundant Scarce Product Functionality Creation Stage Transition Stage Commoditization Stage Region of High Vendor Power and Low Customer Power Dominant Design Emerges Region of High Customer Power and Low Vendor Power (except if a monopoly exists) Source: Shifting Cultural Gears in Technology-Driven Industries, Paul J. Kampas
The Innovation Mix Shifts as a Technology Matures : The Innovation Mix Shifts as a Technology Matures 100% 0% Innovation Mix Acceptance Dominant Design Emerges Early Adoption Mainstream Adoption Maturity Enabled by a Business-Innovation Cultural Bias Enabled by Both Cultural Biases Enabled by a Product-Innovation Cultural Bias Base-Process Innovation
(such as design, procurement, manufacturing, distribution and service processes) Base-Product Innovation
(such as performance, functionality, size/portability, reliability) Marketing Innovation Styling/ Packaging Innovation Human Factors Innovation Source: Shifting Cultural Gears in Technology-Driven Industries, Paul J. Kampas
The Cultural-Bias Landscape : The Cultural-Bias Landscape Source: Shifting Cultural Gears in Technology-Driven Industries, Paul J. Kampas Product-Innovation Cultural Bias
Why Good Companies Go Bad? : Why Good Companies Go Bad?
Slide11 : Reality: Trapped by commitments 陷入「承諾」的陷阱 The Traps of Previous Successes
Some Common Traps : Some Common Traps We are a great company with great history
We are a happy family
We did it, and we will do it again
We have a super technology/product
We know what is the best for the market
Bigger is better - Market share ensure profitability
Our competitors will never catch up
Our competitors are our enemies
Our ISO Certification ensure our quality
Slide13 : Relationships
關係 Culture
價值 Resources
資源 Success Formula Frames Processes Relationships Values Resources Source: Donald N. Sull, The Revival of the Fittest 关系桎梏
Slide14 : Success Breeds Failure Relationships
關係 Culture
價值 Resources
資源 Success Formula Blinders Routines Dogmas Milestones Active Inertia Frames Source: Donald N. Sull, The Revival of the Fittest
Shackles
Processes Resources Relationships Values Changed
Environment
Slide15 : The 3 Steps of Transformation Source: Donald N. Sull, The Revival of the Fittest 1. Select the anchor 2. Secure it 3. Align the rest
TSMC Corporate Transformation : TSMC Corporate Transformation 1. Vision (Missionary)
2. Values
3. Processes
4. Fluid Organization
5. Customer Focus
6. Dynamic Management
7. Innovation
8. Initiatives Talent Attraction and Assimilation Talent Development Evaluation and Reward Systems Key Factors
Slide17 : Conditions for Change
Slide18 : Culture and Vales Systems and Policies Strategy and Structure Organization Transformation
Slide19 : IQ Intelligent Quotient
智商 Ability to learn, reason, think, and solve problems
Right skills and knowledge
Good common sense EQ Emotional Quotient
情緒智商 Passion, empathy, sensitivity
Inspire others
Building confidence & trust
Integrity & personal leadership AQ
Adversity Quotient
逆境商數 Perseverance
Endurance
Tenacity
Positive mental attitude Purpose & Beliefs 目的與價值觀 Core Competencies for Change
Slide20 : Embracing & Managing Change Massive disruptive change
New direction, new model, new games, new rules
Capability & capacity for change
Urgency for change
Leader, early adapter, follower, road block or “dinosaur”
Slide21 : Definition of “Change Agent” Some one that adds value in the change process
Identify issues & opportunity for change
Visualize purpose & desired outcome
Initiate and cause change
Mobilize & organize change
Support & facilitate change
Execute & implement change
The role of constructive diversity
Invent, innovate, intervene, improvise
Slide22 : Who are Change Agents? Conscious Vs. Unconscious change agents Teachers Investors
Writers Bankers
Politicians Businessmen
Governments Managers
Scientists Doctors
Religion workers Social workers
Media workers Stars
You & me
Slide23 : Be a “Conscious” Change Agent Change myself
Change my job
Change my life
Change my profession
Change my company
Change my society
Change my world
修身、齊家、治國、平天下
Good Managers vs. Real Change Leaders : Good Managers vs. Real Change Leaders Source: Real Change, The McKinsey Quarterly, 1996
Slide25 : Good Managers vs. Real Change Leaders Key issues
Basic mindset
“End-game” assumptions
Leadership philosophy
Sources of productivity and innovation
Accountability measures
Risk/reward tradeoffs
Traditional GM view
Analyze, leverage, optimize, delegate, organize, and control it - I know best
Earnings per share
Market share
Resource advantage
Personal promotions
Always make the numbers
Strategy driven
Decide, delegate, monitor, and review
Spend time on important matters
Leverages his/her time
A few good men will get it done for me
Investment turnover
Superior technology
Process control
Leverage the people
People = exploitable resource
Comprehensive measures across all areas
Clear individual accountability
I hold you accountable
Avoid failure and mistakes at all cost
Rely on proven approaches
Limit career risks
Analyze until sure
I cannot afford to fail - or to leave Emerging RCL view
Do it, fix it, change it, and do it all over again; no one person knows best
Value to customers, employees, and owners
Customer loyalty
Core skill advantage
Personal growth
Satisfy customers and engage employees
Aspiration driven
Do real work
Spend time on what matters to people
Expand leadership capacity
I must get the best out of all my people
Productivity
People Superiority
Process innovation
Develop the people
People = creative resource
A few key measures in the most critical areas
Individual and mutual accountability
We hold ourselves accountable
Expect, learn from, and build on “failures”
Try whatever appears promising
Take career risks
If in doubt, try and see
Take risk, learn from failures. I can work everywhere if I am good. Source: Real Change, The McKinsey Quarterly, 1996
Slide26 : Extending the Comfort Zone
Slide27 : The Change Process Visioning
Mobilization
Diagnosis
Design
Plan
Execute
Break
Build
Measure
Review nderstand lign ommit P - D - A
Slide28 : Steps for Change Awareness
Urgency
Diagnosis
Take Accountability
Be at cause
Find how you can contribute
Solutions
Execution
Reinforcement
Forgiveness : Self and others Freedom 四他: 面對他、接受他、處理他、放下他
Slide29 : Changing a Behavior Step out of the box
Turn on the watcher
Examine
the cause
the stimulant
the behavior
Make conscious choice of your behavior
This takes efforts & attention
Focus only one or two to work on
From automatic old habit to automatic new habit
AWARE that you can make a choice
Levers for Change : Levers for Change Felt need
Specific goal and measurement
Feedback from someone who you valued
Social relationship Measurement and Commitment
Process and Systems
Accountability
Skills
Communications
Individual Behavior Organizational Behavior
Slide31 : The Tipping Point
Quantitative to Qualitative Change
Rome is not built in a day : Rome is not built in a day Chicken and egg
The fly wheel
Transformation : Transformation A butterfly is not a better or improved caterpillar, it looks and feels completely different, and has completely new capabilities
The new capabilities liberate and free the creature from the world of the caterpillar to the “new”world of the butterfly
Managing Change : Managing Change Evolution vs. revolution
Planned vs. unplanned events
Change can get out of control
Contingency planing
Crisis management
Change leader for one phase may become road block for the next phase
Change at the right time, right place, with the right people
Too early? Too late? Just in time?
Freedom and Discipline : Freedom and Discipline Freedom without discipline
Instituting discipline at the expense of freedom
Affordability of freedom when discipline is instituted
Freedom with discipline
Slide36 : Managing Organizational Change Strategy
Establish a transition team to ensure consistent communication and to tackle issues raised by the change
Promote a clear vision to clarify the direction in which the organization needs to move Organization
Leaders should ask tough questions and challenge the way the company does business
Good management requires respect for employees and the organization and is responsible for shaping the new reality People
Losing key employees may destabilize the organization; communicating the desire to retain these people, early in the process, is important
Give priority to the "me" issues—personal opportunity, security and the quality of the work environment Communication
Communication plans should address four considerations: audience, timing, mode and message
Tips include:
Communicating rapidly, honestly and frequently
Ensuring consistency between messages
Establishing multiple mechanisms to reach employees
Repeating common themes Source: Corporate Leadership Council research
Eight Steps to Transform Your Organization : Eight Steps to Transform Your Organization Establishing a Sense of Urgency Examine market and competitive realities
Identify and discuss crises, potential crises, or major opportunities Forming a Powerful Guiding Coalition Creating a Vision Communicating the Vision Empowering Others to Act on the Vision Planning for and Creating Short-Term Wins Consolidating Improvements and Producing Still More Change Institutionalizing New Approaches Assemble a group with enough power to lead the change effort
Encourage the group to work together as a team Create a vision to help direct the change effort
Develop strategies for achieving that vision Use possible vehicles to communicate the new vision and strategies
Teach new behaviors by the example of the guiding coalition Get rid of obstacles to change
Change systems or structures that seriously undermine the vision
Encourage risk taking and nontraditional ideas, activities and actions Plan for visible performance improvements
Create those improvements
Recognize and reward employees involved in the improvements Use increased credibility to change systems, structures, and policies that won’t fit the vision
Reinvigorate the process with new projects, themes, and change agents Articulate the connections between the new behaviors and corporate success
Develop the means to ensure leadership development and succession John Kotter, Leading Change, Harvard Business Review
重大改革的八階段流程 : 重大改革的八階段流程 建立危機意識 考察市場和競爭情勢
找出並討論危機、潛在危機或重要機會 成立有力的領導團隊 創造願景 溝通願景 授權員工共同參與願景行動 規劃創造短期成果 強化改善成果並再接再勵 讓新做法制度化 組成一個夠力的工作小組負責領導變革
鼓勵小組成員團隊合作 創造願景以協助引導變革的行動
擬定達成願景的相關策略 運用各種可能的管道，持續傳播新的願景及策略
擬定達成願景的相關策略 移除阻礙改變的障礙
修正會嚴重破壞變革的系統或結構
鼓勵冒險和創新的想法、活動和行動 規劃顯而易見的績效改善成果
創造上述成果
表彰、獎勵有功人員 運用公信力，改變所有不搭配/不符合願景的系統、結構以及政策
聘用、拔擢並培養能夠達成願景變革的員工
透過新方案、新主題和變革代理人，將變革的流程注入新的活力 明確指出新作為和組織成功之間的關聯
發展確保培養領導能力和接班人的辦法 John Kotter, Leading Change, Harvard Business Review
Common Mistakes : Common Mistakes Writing a memo instead of lighting a fire
Talking too much and saying too little
Declaring victory before the war is over
Looking for villains in the wrong places.
John Kotter, Winning at Change, Leader to Leader Managing multiple time lines—Change leaders should create short-term wins, but look to long-term success.
Building coalitions—Change leaders should engage the right talent, grow the coalition and foster teamwork.
Creating a vision—Change leaders must engage employees emotionally behind a vision of the future.
Four Mistakes Three Tasks
Why Do Employees Resist Change : Why Do Employees Resist Change Human tendency to stay in existing comfort zone
Lack of awareness or urgency for change
Lack of clear understanding or alignment on purpose, vision, and process of the change
Lack of trust on the leaders
Fear of unknown/uncertainty/consequences
Comfort with long standing habits
Dependency on existing social dynamics
Lack of sufficient resources for the change
Overload of ongoing tasks and responsibilities
What is the benefit for me to change?
Why Do Employees Resist Change : Why Do Employees Resist Change The organization's architecture is not aligned and integrated with a customer-focused business strategy
The individual and/or group is affected negatively
The organization does not communicate expectations clearly
Employees perceive more work with fewer opportunities
Change requires altering a long-standing habit
Relationships harbor unresolved past sentiments
Employees have fears of future competency/job security
The organization lacks adequate rewards/punishments
The organization has poor internal communication
Change modifies existing social interactions
The change was introduced poorly
The organization lacks sufficient resources to support the change
Ronald J. Recardo, “Overcoming Resistance to Change” National Productivity Review (22 March 1995)
Why Organization Transformation Fails : Why Organization Transformation Fails Unclear purpose, vision, and process
Lack of commitment from the top
Poor communication and engagement
Middle management/employee resistance
Focus only on results/process/people
Delegated to “outsiders”
Lack overall systemic alignment
Lack of resources
Lack follow through - Loud thunder but small rain
Show Vs substance
Slide43 : Are we investing in the right things?
Are we staying ahead of the competition?
Are we leading and following where appropriate?
Do we have the right skill mix and depth?
Are we building the right strategic partnerships? Key Strategic Questions
Slide44 : Key Challenges Maintaining self motivation
Gaining credibility, confidence, and trust
Dealing with objection
Acting with courage and virtue
Acquiring new capability and capacity
Mobilizing and allocating resources
Building a real team
Developing shared vision and common language
Ensuring continuous renewal
Slide45 : The Road Less Traveled “Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;
Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same,
And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.
I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I-
I took the one less traveled by,
And that has made all the difference.“
- By Robert Frost
Don’t Get Lost : Don’t Get Lost Purpose
Desired Outcome
Actual Outcome
Conclusion : Conclusion The vision of change is always beautiful and exciting, but the change process is painful. It takes lots of courage, determination, wisdom, and passion.
But the benefit and satisfaction of “Discovering a New World” makes all the effort and sacrifice worthwhile.