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CHANGE

“He who cannot


change the very fabric
of his thought will
never be able to
change reality, and will
never, therefore, make
any progress”
- Anwar Sadat

Slide 1

Welcome!
Bill Palladino
EVP of Business Results & Partner
ISB Worldwide
Dallas, Texas USA
billp@isbworldwide.com

Slide 2
Change Defined….

Meaning of CHANGE
Pronunciation: cheynj

1. [n] the action of changing something; "the change of


government had no impact on the economy";

2. [n] an event that occurs when something passes from one


state or phase to another; "the change was intended to
increase sales"; "this storm is certainly a change for the
worse"; "the neighborhood had undergone few
modifications since his last visit years ago"

Slide 3

What Kinds of Change Are There?


Personal?
Corporate?
National?
Global?
Universal?

Slide 4
What Changes Are You Facing?
Regulations?
Global Investment?
International Political Instability?
Health Care for Citizens and Employees?
Deregulation?
Unemployment?
Unchecked urban growth?

Slide 5

How Do You Manage Change?


As a project?
As a timeline?
As something a small group of people do?
Involving as few people as possible because
the rest wouldn’t know what to do?
Changing and waiting for the next change?

Slide 6
Culture and Technology 
Change Cycle

3200 BCE 1492 AD 1869 AD

Slide 7

Culture and Technology 
Change Cycle

1890’s 1980’s 2000 2008              2020?

Slide 8
John Kotter

His Books
• Leading Change
• Heart of Change
• Our Iceberg Is Melting

Slide 9

Clip One
Dr. John Kotter
with New England Business News

Slide 10
Resisting and Driving Forces to Significant Change
Resisting Driving
1. Allowing too much 1. Establishing a real sense of
complacency urgency for the change
2. Counting on existing, pre- 2. Creating the Guiding
determined task forces Coalition
3. Going to “Strategy” without first 3. Developing a vision and
solidifying a “Vision” strategy
4. Under-communicating the 4. Communicating the change
vision by a factor of 10 (0r 100 vision so that everyone can
or even 1,000) “buy-in” to it.
5. Expecting only a few “smart” 5. Empowering broad-based
leaders to create the change action
6. Reaching for only the big goal 6. Generating short-term wins
without creating increments at increments
7. Becoming complacent after 7. Building upon short term
finding initial gains wins for more change
8. Treating the change as an event 8. Anchoring new approaches
with an end point. in the culture
Source: John Kotter
Slide 11

Clip Two
General Electric #1

Slide 12
Statistically
Dr. Kotter’s research suggests that in
Corporations and the Public Sector

60 – 70 Percent of Change
Initiatives
FAIL
Slide 13

Managing vs. Leading Change


• Planning and budgeting • Establishing direction
• Organizing and staffing • Aligning people
• Controlling and • Motivating and inspiring
problem solving
Successful transformation =
70-90 % Leadership +
10-30 % Management
Slide 14
LEADERSHIP
Leadership is not one person dictating
demands.
It involves empowering others to work
together towards clear and common goals.

Slide 15

Clip Three
Eastern Airlines – DVD #2 Cut 2

Slide 16
Would You Consider This a
Successful Change Metric?
A company that went from a market cap in
1982 of 25 Billion….

…to a market cap in 2002 of approximately


400 Billion?

What kind of leadership did it take to do


this?
Slide 17

Clip Four
General Electric #2

Slide 18
Lessons From The Colony

Trust us?

Everyone please close your eyes.

NOW POINT EAST!

Slide 19

The Iceberg Story


It’s about a colony of penguins living on an
iceberg…
One of these very smart penguins notices that
there is a crack that may cause the whole
iceberg to break apart.
He’s a penguin with a lot of vision and the
willingness to look to the distance, but he is a
common penguin with virtually no power.
The parable tells the story of how these very smart
penguins deal with this “fissure” that has grave
portent for the community.

Slide 20
Alice: tough, practical. Makes Louis: willing to listen. Enough
things happen. Doesn’t care about experience to be wise. A bit
status, treats everyone the same. conservative. Not easily
Impossible to intimidate. flustered. Well respected.

Fred: Amazingly creative and The Professor: well read,


observant. Studies things logical and independent,
carefully, nice beak. ruthless thinker. Not the most
social bird

Buddy: Quiet, boyishly handsome. The Heroes: invaluable


Not a bit ambitious. Liked and helpers, the kindergartener, the
trusted by many. A great teacher, the scouts and
communicator. planners and many more.

My Favorite Characters

Slide 21

Pg. 6

Who Is NoNo?
There is another character in the book, NoNo. He
is a saboteur. A penguin that resists all efforts of
change.

What are we really talking about here?

Turn to page 6 in the Participant Workbook.


Working with the people at your table,
brainstorm as many responses as possible to
the four suggested NoNo quadrants.

Slide 22
People/Culture Resources

Slide 23
Technology Systems/Processes

Success of the Colony


In any colony…

What helps a colony be successful?

What gets in the way of a colony’s success?

Slide 24
Exploring the 8 Steps
What are they?
Step 1: Create a Sense of Urgency
Step 2: Pull Together the Guiding Team
Step 3: Develop the Change Vision & Strategy
Step 4: Communicate for Buy-in
Step 5: Empower Others to Act
Step 6: Produce Short-term Wins
Step 7: Don’t Let Up
Step 8: Anchor the New Change in the Culture

Slide 25

The 8 Steps In-Depth

Page
11

Slide 26
Our Iceberg Is Melting

Decide Make It Happen Make It


Mark Level Set the Stage
What to Do Stick
of Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
Completion Sense of Guiding Vision & Understanding Short-Term Don’t Let Up Anchored in
Empower
Urgency Team Strategy & Buy-In Others To Act Wins Culture

100%

75%

50%

25%

0%

Your Leading Change Scorecard Slide 27


© John Kotter & Holger Rathgeber

Our Iceberg Is Melting

Decide Make It Happen Make It


Mark Level Set the Stage
What to Do Stick
of Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
Completion Sense of Guiding Vision & Understanding Short-Term Don’t Let Up Anchored in
Empower
Urgency Team Strategy & Buy-In Others To Act Wins Culture

100%

75%

50%

25%

0%

Your Leading Change Scorecard Slide 28


© John Kotter & Holger Rathgeber
Our Iceberg Is Melting

Decide Make It Happen Make It


Mark Level Set the Stage
What to Do Stick
of Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
Completion Sense of Guiding Vision & Understanding Short-Term Don’t Let Up Anchored in
Empower
Urgency Team Strategy & Buy-In Others To Act Wins Culture

100%

75%

50%

25%

0%

Your Leading Change Scorecard Slide 29


© John Kotter & Holger Rathgeber

Exploring the 8 Steps


What are they?
Step 1: Create a Sense of Urgency
Step 2: Pull Together the Guiding Team
Step 3: Develop the Change Vision & Strategy
Step 4: Communicate for Buy-in
Step 5: Empower Others to Act
Step 6: Produce Short-term Wins
Step 7: Don’t Let Up
Step 8: Create a New Culture

Slide 30
In Closing
These are simple ideas.
They are proven to work in industry,
government, NGOs, education, and small
businesses.
Ask yourself how successful your
organization is at major change initiatives.

Slide 31

Should We Consider Change?

“It is not necessary to


change. Survival is not
mandatory.”
~W. Edwards Deming

Slide 32
CHANGE
When we are no longer able to change a situation,
we are challenged to change ourselves.
~Victor Frankl
.
Bill Palladino
bill@isbworldwide.com
Slide 33

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