| As waves of organizational change sweep | | | | organizational change is that they feel like |
| across the business landscape, a huge | | | | their spouse or lover just walked out on |
| question arises: What must a leader do to | | | | them!" My statement summarized the shocking |
| make sure change produces highly profitable | | | | zing of betrayal practically everyone has |
| results?To find out, I uncovered exactly what | | | | felt for various reasons. Resistant and |
| executives did who planned and implemented | | | | rebellious employees feel betrayed by their |
| organizational change that produced | | | | company making changes.Prescriptions to |
| $10-million - $1-billion in profit | | | | manage the people problems include |
| improvement.I discovered that highly | | | | over-communicating reasons for change, |
| profitable organizational change requires | | | | "de-employing" employees who stop adding |
| three key ingredients. If any ingredient is | | | | financial value, incentive pay, peer pressure |
| missing or incomplete, then even the best | | | | to "get with the program," and celebrating |
| plans will fail to achieve the desired | | | | successes.Another bottom line concern is |
| results. My 3-ingredient model for all | | | | this: Employees who did fine before the |
| successful organizational change is the | | | | change may do poorly after the change is |
| following:Ingredient 1: Leading the | | | | implemented. I call them "old-style" and |
| Organizational ChangeIngredient 2: Handling | | | | "new-style" employees."Here are vital |
| Employees Who Resist - or Undermine -- | | | | differences:Old-Style Employees |
| ChangeIngredient 3: Managing Yourself as You | | | | |
| Lead Organizational ChangeLeaders at some of | | | | Works in 1 department |
| America's finest companies used this | | | | |
| 3-ingredient model to produce highly | | | | Solo work |
| profitable organizational change. These | | | | |
| organizations include IBM, Harley-Davidson, | | | | Likes receiving direction |
| Intuit, City of Indianapolis, Robert Mondavi | | | | |
| Corporation, Outback Steakhouse, | | | | Prefers to be told what to do |
| Ritz-Carlton, Excell Global Services, VF | | | | |
| Corporation, and Washington Mutual.Ingredient | | | | Focus: Seniority & experienceNew-Style |
| 1: Leading the Organizational ChangeLeading | | | | Employees |
| profitable organizational change requires | | | | |
| four key actions.Action 1: Fit Your | | | | Interdepartmental |
| Organizational Change into Your Corporate | | | | |
| CultureI found the only organizational | | | | Teamwork |
| changes that improve profits are those that | | | | |
| fit into the company's culture. Brilliant | | | | Likes independence |
| changes that do not fit into your | | | | |
| organizational culture will not achieve the | | | | Prefers shared leadership |
| desired results.Action 2: Creating A Big, | | | | |
| Exciting Vision for Your OrganizationA | | | | Focus: Updating & expanding skillsDuring a |
| company's real vision is not the | | | | speech I delivered at a company, an executive |
| cliché-filled mission statement adorning | | | | stood and dramatically announced: "As our |
| the company's lobby or annual report. | | | | organization undergoes major organizational |
| Instead, a company's vision is a huge, | | | | changes, we always seek to cure the wounded. |
| compelling goal the organization aims to | | | | But, we will shoot the dissenters." Every |
| accomplish. For example, Ritz-Carlton Hotel | | | | manager in my presentation remained silent |
| Company's vision is the following: Our key | | | | for a few moments. Then, they all burst out |
| goal is to be the premier worldwide provider | | | | laughing as they recognized the wisdom of |
| of luxury travel and hospitality products and | | | | what they heard. Some resistant employees |
| services. Intuit's big, exciting vision is | | | | need to be "de-employed." After all, a |
| this: Our key goal is to revolutionize the | | | | company's purpose is to grow and prosper -- |
| way people do financial work.Action 3: | | | | not transform rebellious employees.Ingredient |
| Goal-Setting to Implement ChangesGoal-setting | | | | 3: Managing Yourself during Organizational |
| forms the steps that create the staircase | | | | Change |
| leading to the organizational change. | | | | |
| Employees need measurable targets with | | | | It is waste when managers use many great |
| deadline dates.Action 4: Teamwork to Produce | | | | techniques to lead change -- but ignore |
| Profitable Organizational ChangeExecutives | | | | something incredibly important: How they |
| leading organizational change need to get | | | | manage their emotions and attitudes.To learn |
| employees to use teamwork plus | | | | more about this, I conducted unique research. |
| interdepartmental collaboration. For | | | | I had leaders of highly profitable |
| instance, at Egghead.com, the large company | | | | organizational change fill-out my Abilities & |
| that sells technology products and services, | | | | Behavior Forecaster (TM) pre-employment |
| president and COO Jeffrey Sheahan and CEO | | | | test. My |
| Jerry Kaplan cleverly package four meetings | | | | |
| each week to assure teamwork and goal | | | | research revealed these magnificently |
| achievement.First is a lunch meeting of | | | | successful leaders scored amazingly high on |
| Egghead's top five executives to discuss | | | | four of the Forecaster (TM) test's 18 |
| strategy.Second is the "5 - 15 Report" from | | | | scales, namely, Optimism, Teamwork, |
| each manager which Sheahan reads to see how | | | | Creativity, and Intelligence.The fact that |
| the manager is progressing on measurable | | | | astounding leaders in America's best-run |
| goals.Third is the meeting of all middle | | | | companies are very optimistic, |
| managers where each manager announces how he | | | | teamwork-focused and creative implies that |
| or she is doing at achieving measurable | | | | attitudes are contagious. These stellar |
| goals.Fourth is a 20-minute "Social" for all | | | | leaders are role models. Employees "pick-up" |
| employees; at this stand-up meeting -- no | | | | and copy the behaviors and attitudes of these |
| sitting allowed! -- ice cream and cake are | | | | tremendous leaders. This, in turn, helps |
| served as employees publicly praise | | | | leaders implement highly profitable |
| colleagues who accomplished wonderful | | | | organizational change.© Copyright 2005 |
| things.Ingredient 2: Managing Employee | | | | Michael Mercer, Ph.D.Michael Mercer, Ph.D., |
| Resistance -- or UnderminingSurveys of | | | | is a conference speaker and consultant with |
| executives reveal many organizational changes | | | | The Mercer Group, Inc. in Barrington, |
| fail due to people problems. These people | | | | Illinois. He delivers speeches and seminars |
| problems are "R-n-R": Resistance and | | | | at conferences and companies. Dr. Mercer's |
| Rebellion. | | | | "Forecaster (TM) " pre-employment tests are |
| | | | used by companies across North America. He |
| Once I received loads of TV and print media | | | | authored "Absolutely Fabulous Organizational |
| coverage when I delivered a speech at a | | | | Change (TM) " and also "Hire the Best -- & |
| national conference in which I declared, "The | | | | Avoid the Rest (TM) ". You can subscribe to |
| major emotional reaction of employees during | | | | Dr. Mercer's free e-Newsletter at You can |
| 3 | | | | call him at (847) 382-0690. |
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