Implementing Effective Change

Management

Bill Reeb, CPA, CITPDom Cingoranelli, CPA,

CMCSuccession Institute,

LLC1©2010 Succession Institute, LLC (SI). All rights reserved. This document and the information contained herein is PROPRIETARY and

CONFIDENTIAL and may not be not be duplicated, redistributed or displayed to any other party without the express written consent of SI.

Objectives

• Recognize why many organizational change projects are considered failures

• Identify a model to help assure successful implementation of change within your organization

• Recognize what you can do to increase commitment to your project

2

Change and Failure

• Up to 75% of change initiatives do not produce the results intended, and

• Many produce unintended consequences, which usually are not desirable

• But WHY?

3

Why, Indeed

• “Resistance to change”– Ambiguity about the future

• Why now? I’m comfortable with what we’re doing

• What do I have to give up?• How badly will this affect me?• What do I need to learn to be successful?• Can I learn it satisfactorily?• What if I don’t?

– Mistrust/distrust of management– “Flavor of the Month” syndrome– Already maxed out—no energy left4

Why, Indeed

• Lip service at the top• Inadequate communication• “Poof” empowerment (or lack of

empowerment)• Poor follow-through• Lack of publication of successes• Inadequate (or nonexistent)

accountability• Poor

leadership/delegation/supervision

5

Kotter’s Eight-Step Process:

1. Increase urgency (among the masses)

2. Build the guiding team (with the authority, standing and skills to get it done)

3. Get the vision right (clear, simple, with strategies to get there)

4. Communicate for buy-in (simple messages many times)Source: Succeeding in a Changing World--Kotter

6

Kotter’s Eight-Step Process:

5. Empower action (remove the barriers)

6. Create short-term wins (select initial parts carefully)

7. Do not let up (continually monitor, adjust, queue up the next parts)

8. Make change stick (new culture—norms of behavior, shared value developed through consistency of action)

Source: Succeeding in a Changing World--Kotter7

Building Commitment

for Success

Dealing Effectively with

Questions and Objections8

Getting Buy-In

• Anticipate the “tough” questions you will encounter

• Be prepared to overcome the ways people will try to kill your good ideas

• Beef up your communication and influencing skills

• Win over their minds and their hearts

9

Four Types of Attacks You Must Address

1. Create fear about your plan2. Find ways to delay your plan3. Create confusion about your

plan4. Ridicule of the proponents of

the plan

Source: Buy-In-Kotter and Whitehead10

Dealing with These Attacks

• Allow the naysayers to tell you what they think

• Provide short, clear, easy-to-understand responses to their statements

• Show respect to everyone• Watch the large group for

reactions—don’t focus on the few naysayers

• Prepare thoroughly—notes, rehearsals

Source: Buy-In-Kotter and Whitehead11

The Bottom Line

• Successful initiatives require broad commitment.

• Broad commitment requires appropriate influence behaviors

• Appropriate influence behaviors require good communication

• Do NOT underestimate the need for relentless, robust, and varied communication

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What Do We Need to Do Differently

• What you are doing differently today that is making a positive difference? How has our economy changed your:– Client interactions and frequency– Services– Follow-up (client satisfaction

assurance)– Operations (budgets, planning,

etc.)– Accountability– Accepting engagements (timing,

trough, pricing), etc.

13

Group DiscussionEach Firm Needs to Be Ready to Talk

About:

• What change project have you recently completed?, or

• What change project are you currently in the middle of or just about to launch?, or

• If you do not have a change project on the drawing board, why not?

• Answer the following questions:– What is/was the change project

about?– How is it working?– What did you learn or could you

have done better?

14

Thank You For Your Time!

Succession Institute, LLCPhone: 512-338-1006Dom Cingoranelli, CPA, CMC (ext 104) Bill Reeb, CPA.CITP (ext 102)Email: dom@successioninstitute.comEmail: bill@successioninstitute.comWebsite: www.successioninstitute.com

©2010 Succession Institute, LLC (SI). All rights reserved. This document and the information contained herein is PROPRIETARY and CONFIDENTIAL and may not be not be duplicated, redistributed or displayed to any other party without the express written consent of SI.15