Pro-active
Transformation
Management
Ciler Yildiz
Vice President TME
Global Operations
Apr 24th, 2009
AFCP Conference, Myrtle Beach
Tough Economy or Opportunity Knocking?
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Outcome of the Session
• To discuss why planned transformation is essential for media
business
• To help you to better understand the dynamics of change and
how to deal with those changes
• Build awareness of the psychological reorientation process
individuals go through as a result of change
• Provide tips and resources to assist you with learning personal
survival skills needed during times of constant change.
• Create a big questionmark about your HR capabilities
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Factors Driving Need for Change
• Consumer Changes
– Demographics
– Habits, Practices
– Psychographic Changes
• External Factors
– Economic/Currencies
– Competitive/Industry Dynamics
– Customers
– Regulatory/Governments
• Internal Factors
– Strategic Focus/Choices
– Structural Costs/Profit Targets
– Organization Changes
– Acquisitions
• Other
– Technology
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Next - Mobile World
“Vintage Mobile Phone”?
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What is changing in media business?
• The basic 4P‟s of Marketing are changing
– Product
• Verticals, on-line, mobile, definition of competitors
– Price
• Revenue generation model, price levels, pricing principles
– Place
• Not only on shelves, post boxes anymore, not limited to working
hours of shops, anywhere at any time
– Promotion
• Methods, techniques and offers, on-line alternatives, TV??
Word of mouth?
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Is it a change or not??
By 2016, 80% + media content will be
delivered digitally
This will require to change our
business models…
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Some questions?
• What is the right organization structure in the new world?
• What is the right reward system for Sales people?
• What are the right skills for the employees in the new world?
• Should we collaborate inside or compete?
• Organizational synergy or focus?
• What is the right relationship with the search engine, community
sites, global/local players? Friends or Enemies?
Answers of those questions
will probably require some
changes.
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Leading Change
“A competitive world has two possibilities for
you. You can lose. Or if you want to win,
you can change.”
LESTER THUROW
(former dean of the MIT Sloan School of Management and author of numerous bestsellers on mainstream
economics.)
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Change vs. Transition
Change Transition
Its an Event or Circumstance Its a Process
Something new starts or Psychological reorientation
something old stops at a
people go through over a
particular point
period of time to come to terms
in time.
with the change.
- New Leader
- Inner experience
- Improved processes or
products - Can take longer and more
- Different customers difficult than the Change
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Managing Change & Transition
• You need to understand change and have a framework for
managing transition.
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Change vs. Transition
• Attitudes and Beliefs About Change
• Cultural Beliefs
• Paradigms of Change are Learned
• Change is What You Make of It
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Change vs Transition
AREA OF CONCERN
AREA OF INFLUENCE
Increasing Control AREA OF CONTROL Decreasing Control
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Why Focus on Transition?
• Transition happens whenever there is a change.
• We are facing increasing levels of change in our industry,
environment, organization etc.
• The business case is simple: we must drive change more
quickly, effectively and efficiently if we need to stay competitive.
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3 Phases of Transition
Bridges Model
• ENDING
NEUTRAL
ZONE
BEGINNINGS
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3 Phases of Transition
ENDING NEUTRAL ZONE BEGINNING
Endings mean In the Neutral Zone people feel : Beginnings mean :
letting go of : Betrayed Anxious Renewal
Confused Disengaged New problems to solve
Relationships Resistant Less Productive New Opportunities
Familiarity Growth
Routines As well as: Challenged Commitment
“Known” things Hopeful Involvement
Power & control Creative
Security Innovative
Enthusiastic
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The individual Transition Grid
DENY COMMIT
ENDING NEW
BEGINNING
PAST FUTURE
NEUTRAL ZONE
RESIST / BARGAIN DESPAIR / EXPLORE
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The individual Transition Grid
DENIAL COMMITMENT
Start EXTERNAL ENVIRONMENT Finish
Denial New Vision
Anger Declaration
past future
Endings NEUTRAL ZONE
New Beginnings
Bargainings
New Vision
Depression Experimentation
Acceptance
RESISTANCE Internal/Personal Self EXPLORATION
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Key Point:
People reach the beginning
at different speeds.
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Transition Model
Ending the „OLD” (existing) The Transition Phase Beginning the „NEW”
Phase I Phase II Phase III
“LETTING GO‟ “NEUTRAL ZONE‟ “NEW BEGINNING‟
Disengagement Disorientation
Vision
Dynamics Cultural change
and Disidentification Disintegration Communications
Issues Clarity of results
Commitment
Disenchantment Discovery New Plan
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Transition Model
Ending the „OLD‟ (existing) The Transition Phase Beginning the „NEW”
Phase I Phase II Phase III
“LETTING GO‟ “NEUTRAL ZONE‟ “NEW BEGINNING‟
Disengagement Disorientation
Dynamics
Vision
and
Cultural change
Issues Disidentification Disintegration Communications
Clarity of results
Commitment
Disenchantment Discovery New Plan
Denial
Attitudes Anger Confusion
Bargaining Sense of loss Acceptance
and
Despair, no future Hope/Despair, no future Proactivity
Feelings
Resistance to change Acceptance of loss Creativity
Reactive New ideas Seek new skills
Protective of turf Reorientation More risk taking
Lack of trust in the Exaggerated response Excitement
organization and colleagues Questioning the future
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Transition Model
Ending the „OLD” (existing) The Transition Phase Beginning the „NEW”
Phase I Phase II Phase III
“LETTING GO‟ “NEUTRAL ZONE‟ “NEW BEGINNING‟
Disengagement Disorientation
Dynamics
Vision
and Cultural change
Disidentification Disintegration Communications
Issues
Clarity of results
Commitment
Disenchantment Discovery New Plan
Denial
Anger
Attitudes Confusion
Bargaining Acceptance
and Sense of loss
Despair, no future Proactivity
Feelings Hope/Despair, no future
Resistance to change Creativity
Acceptance of loss
Reactive Seek new skills
New ideas
Protective of turf More risk taking
Reorientation
Lack of trust in the Excitement
Exaggerated response
organization and colleagues
Questioning the future
Energy Maintaining the status quo Struggling with the lack of Becoming empowered
Focus alignment
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Transition Model
Ending the „OLD” (existing) The Transition Phase Beginning the „NEW”
Phase I Phase II Phase III
“LETTING GO’ “NEUTRAL ZONE’ “NEW BEGINNING’
DENIAL :
“It can‟t be so”
“They don‟t mean this”. ACCEPTANCE AND MOVING ON
Don‟t remember details of announced plans, DISORIENTATION & DESPAIR
Acceptance and moving on.
CONFUSION
BEHAVIORS
Anger, often misdirected. Get on with the behavior.
Fluctuate between hope and
Problem solving.
despair.
Requests to help shape the future.
People go through the motions.
Realism about insufficiency of old
BARGAINING: Decisions fall between the
ways of doing business
BEHAVIORS “Can you give me special assurances?” cracks.
Readiness to consider something
“I have other roles I can plan.” The worst side of organizations
new and different
Excessive cooperation. and individuals show
Organization of support for a cause, e.g. themselves.
petitions Unfreezing, opportunity for
creativity
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Transition Model
Ending the „OLD” (existing) The Transition Phase Beginning the „NEW”
Phase I Phase II Phase III
“LETTING GO’ “NEUTRAL ZONE’ “NEW BEGINNING’
DENIAL :
“It can‟t be so”
“They don‟t mean this”.
Don‟t remember details of announced plans, DISORIENTATION & DESPAIR ACCEPTANCE AND MOVING ON
Anger, often misdirected. CONFUSION Acceptance and moving on.
Fluctuate between hope and Get on with the behaviour.
despair. Problem solving.
People go through the motions. Requests to help shape the future.
BARGAINING:
BEHAVIORS Realism about insufficiency of old
“Can you give me special assurances?” Decisions fall between the cracks.
ways of doing business
“I have other roles I can plan.” The worst side of organizations and
individuals show themselves. Readiness to consider something
Excessive cooperation.
Unfreezing, opportunity for new and different
Organization of support for a cause, e.g..petitions
creativity
DENIAL
DISORIENTATION & DESPAIR ACCEPTANCE AND MOVING ON
ACTIONS Tell the truth
Encourage cohesion Involve people in creating the
TO Be willing to cover the same information
Patience future.
several times
Communicate constantly Help people align themselves
TAKE Communicate what, when & why
Offer outside perspectives on Sell the problem vs. the solution
BARGAINING
transitions Communicate the vision of the
Encourage dialogue
Affirm the new reality future.
Acknowledge the sadness
Provide opportunities to take stock Define what‟s needed to realize the
Accept the emotions but not destructive actions
and create a new vision vision
Communicate someone is looking out for people
Encourage divergent thinking Develop new rituals
during a difficult time and clarification will come
Help identify problems that led to Celebrate small wins
the change
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Transition Model
Ending the „OLD” (existing) The Transition Phase Beginning the „NEW”
Phase I Phase II Phase III
“LETTING GO’ “NEUTRAL ZONE’ “NEW BEGINNING’
DENIAL :
“It can‟t be so”
“They don‟t mean this”.
Don‟t remember details of announced plans, DISORIENTATION & DESPAIR ACCEPTANCE AND MOVING ON
Anger, often misdirected. CONFUSION Acceptance and moving on.
Fluctuate between hope and despair. Get on with the behaviour.
People go through the motions. Problem solving.
Decisions fall between the cracks. Requests to help shape the future.
BARGAINING:
BEHAVIORS The worst side of organizations and Realism about insufficiency of old
“Can you give me special assurances?”
individuals show themselves. ways of doing business
“I have other roles I can plan.”
Unfreezing, opportunity for Readiness to consider something
Excessive cooperation.
creativity new and different
Organization of support for a cause, e.g..petitions
DENIAL
DISORIENTATION & DESPAIR ACCEPTANCE AND MOVING ON
ACTIONS Tell the truth
Encourage cohesion Involve people in creating the
TO Be willing to cover the same information
Patience future.
several times
Communicate constantly Help people align themselves
TAKE Communicate what, when & why
Offer outside perspectives on Sell the problem vs. the solution
BARGAINING
transitions Communicate the vision of the
Encourage dialogue
Affirm the new reality future.
Acknowledge the sadness
Provide opportunities to take stock Define what‟s needed to realize the
Accept the emotions but not destructive actions
and create a new vision vision
Communicate someone is looking out for people
Encourage divergent thinking Develop new rituals
during a difficult time and clarification will come
Help identify problems that led to Celebrate small wins
the change
DENIAL :
ACTIONS Withhold information
DISORIENTATION & DESPAIR
TO AVOID Punish people for not understanding.
Push for unanimity ACCEPTANCE AND MOVING ON
Take the anger personally and respond in kind.
Act like you have all the answers Solve today‟s problems, rather
BARGAINING
refine them.
Pretend it isn‟t a big change
Create losers.
Blame person grieving
Point out only the good aspects of the change. 25
The Leader’s Role in Leading Change
• Creating the Future and Leading the Journey
– Motivating and inspiring to overcome obstacles
– Creating new possibilities for people to “live into”
– Making Change an everyday, every person occurrence
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The Leader’s Role in Leading Change
• Creating and Communicating the Vision
– Establishing a Common Direction
– Inciting Urgency/Need for Change
– Producing the Changes needed to achieve that vision
• Creating the Coalition
– Aligning people, creating Champions
– Choosing the right people to be the change agents
• LEAD FROM THE HEART
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Successful Change
• Change is emotional
• For change to succeed, must change behaviors
• As a result, change effort must
– Speak to their head (rational)
• They must buy-in rationally. But facts can not change feelings.
– Speak to their hearts (emotional)
• People have to see a future that is exciting.
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How to change individual behavior?
( Information + Experience )X Perception = Behaviour
Information Experience of My perceptions A shift in
about what is doing my work of the my
happening to in new ways organisation, its behaviour
the IFC and me, which reinforces management and
and why the change and and my own attitudes
engages me capability
potentially
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Information + Involvement
to Build Commitment & Change
“This is the way we do things
here”
Stages of Individual Internalisation
Behaviour Change “OK, I‟m ready to do it the
of new behaviour
new way”
Commitment
to personal change
“I know how we need to
do our jobs differently”
Translation
Significant
to the work setting
“I understand where we involvement
need to go” needed
Understanding
of change direction
“Yeah, I saw the memo”
Awareness
of desired change Information with some
involvement sufficient here
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The 8 Steps in Leading Major Change
1. Incite a Sense of Urgency
2. Create a Guiding Coalition of Champions
3. Develop a Vision of future that is tangible
4. Enroll each individual in the Vision
5. Empower People for Broad-Based Action
6. Generate Short-Term Wins
7. Don‟t let up
8. Make it stick
John P.Kottler‟s model-Leading Change
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Goal of each step
• Sense of Urgency: Raise the sense of urgency so that people say
“let‟s roll!”! Must break complacency and instill urgency at all levels.
• Guiding Coalition: Form the group that has the capability to map and
guide a difficult change process.
• Vision:“You must be the change you wish to see in the world.” --
Mahatma Gandhi
• Enroll: Help each person find a cause to sign up.
• Empower for Action: Get as many people as possible acting to make
the vision a reality
• Short-Term Wins: Create short term wins so that there is a clear
sense of progress
• Don’t let up:Continue with wave after wave of change…not stopping
until the vision is a reality
• Make it stick:Embed the changes into the culture so that a new way of
operating sticks
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Who is going to lead
this process??
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HR Roles in Building a Competitive Organization
the right HR Manager
Do you have STRATEGIC FOCUS
STRATEGIC PARTNER CHANGE AGENT
who can perform 4 roles of HR and
•Contributing to Business •Creating Renewed
Strategy Development
proactivelyStrategy Organizationtransition
•Driving Business
manage the minimum
•Change with
P
R process?? to Business
through the organization Disruption
P
O
E
C
O
E ADMINISTRATIVE EXPERT EMPLOYEE CHAMPION P
S
•Building Efficient & effective •Increasing Employee L
S
E
Organizational Infrastructure Commitment & Capability E
S & People systems •Management of Employee
Contribution
OPERATIONAL FOCUS Dave Ulrich Model
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Expert View
“Organizations try to get people to ‘begin’ on day one,
but that does not happen.
People are slow, they resist, they don’t understand. It
is in such cases that people say that beginnings are
the most difficult. Actually, the opposite is true if you
have made an ending with the past and managed the
neutral zone well. If you have, the new beginning will
almost happen on its own. Most people are energized
by beginnings, especially if the endings and neutral
zone have been difficult and authentically managed. It
is great to know who you are again, where you are
going, and what you are doing. “
Bill Bridge
speaker, author, and consultant
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