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