Do you have a balanced team for change?

Unlike many leadership teams, the Starship Enterprise had a powerful mix of very different characters giving them the versatility to survive everything the universe had to throw at them.

Captain Kirk provided the vision and confidence "to boldly go". First Officer Spok the forward thinking analysis. Dr McCoy looked after wellbeing of the crew. Scotty got things done.

Take any one of these personalities out of the equation and things would have come unstuck. For instance, a great vision without critical analysis, care for people involved and someone to make things happen is doomed to failure.

Leading M&A in a Recession

When a merger or acquisition is precipitated by financial difficulties is it all too easy to lose sight of the critical issues of culture and transformational change in the rush to rescue a failing business. Leaders must recognise that bringing people with you on the journey is a pre-requisite for success.

One consequence of the current recession is an increase in mergers and acquisitions as struggling businesses are swallowed up by their more successful competitors, not least in the ailing financial services sector. For many strong organisations, this is a period of opportunity when they can capture large swathes of market share. However, businesses can easily be seduced by bargain basement prices and should remain wary about what they are getting themselves into. Even at such attractive prices M&A remains a tricky affair often ending unhappily. It takes a concerted effort of leadership to ensure that imagined business benefits are turned into reality.

In calm economic times, it is not often the case that a merger or acquisition fails due to lack of due diligence. Usually, the acquiring company carries out a forensic examination of finances, operational capabilities and order books. Generally, there is also a careful evaluation of the executives and senior managers to assess the capacity of the leadership team run the ship and to identify key players to be kept on board post merger. In the current economic climate, even due diligence may be set aside. You only need look at the disastrous takeover of HBOS by Lloyds TSB to see what can happen as a result.

One of the hardest tasks in M&A, and one that is therefore is more likely to be neglected in the headlong rush to merge organisational structures and operations, is the bringing together of two groups of people with two cultures into a single unified organisation with a single clear purpose and set of values. Ignore it, and a merger will be slow and painful. At best, there will be long periods of dysfunctional behaviour leading to poor business performance and at worst a break-up of the organisation.

When it comes to getting people all pulling in the same direction, organisations embarking on a merger or acquisition need to be guided by some of the central lessons of effective leadership.
Great leaders have a strong sense of what they stand for and a clear vision of the future. Think of Winston Churchill, Martin Luther King and Nelson Mandela. Without an unshakable set of beliefs and strong sense of destiny they could not begin to lead others in turbulent and uncertain times. Not only that, and perhaps just as important, they had the capacity to communicate this in a way that inspired others to follow.

In a the same way, an organisation buying or merging with another organisation needs to have a strong sense of its own vision and values and to communicate them in a compelling way if they are going bring people with them. Take the example of a Dutch bank that acquired a UK financial services company. Whilst their culture was strong it was only really understood by those who had worked in the bank for many years. As a result, the vision and values of the organisation were not communicated to the employees of the acquired company who were left to their own devices to guess what was required under the new regime. As is typically the case in a takeover, people were highly sceptical about the intentions of their new bosses and so every attempt to change structures, operations and IT systems was seem as an attempt to do away with their culture or to threaten their jobs. Despite the fact that the takeover meant greater career opportunities for employees and a similar culture based on integrity, expertise and personalised customer relationships the Dutch leadership team faced a pitched battle with managers and staff to introduce the systems required to integrate the new acquisition into their organisation. Years later, some people have still to make the mental transition to their new company. So leaders must relentless communicate a clear vision and set of values for the new combined company before they can being to get everyone working together to move the organisation forward.....see June 2009 issue of HR Director Magazine for the rest of this article or email me via this website

Ladies and Gentlemen we are Experiencing Some Turbulence

The Principles of Leading in Turbulent Times
When you are bouncing around in an aircraft on top of a tropical storm you value the calm voice of the pilot explaining that there is some heavy weather ahead and that they plan to climb a few thousand feet to avoid the worst of it. You would not be happy to hear them say that actually the problem is a bit of a mystery and they are not sure what to do. Worse, perhaps, would be total silence from the cockpit whilst anxious-looking cabin staff rushed to and fro. This sort of behaviour would undermine confidence and could lead people to panic.

Confidence is a crucial factor in surviving turbulent times in the workplace, such as an economic downturn. During periods of instability, the volume is turned up on problems-solving, decision making, planning, and crisis management. There is more to do and perhaps fewer people to do it with. The last thing you need is a nervous and distracted crew. When your organisation is getting tossed around by events, all your readouts are glowing red and you are wondering if you are going to make it to your destination, asking people to remain calm is unfortunately not enough.

When circumstances are assailing people from every side it is tough to keep up morale and to get people to be effective in spite of the distractions. People become fearful and frustrated, leading to ‘flight’ or ‘fight’ responses in which people either go into ‘avoidance mode’ keeping their heads down, doing the bear minimum and hoping that the storm will pass, or they can go into ‘attack mode’ looking for people to blame for the difficulties they find themselves in. Both responses serve to make them feel better in the short term but are not much help in managing your way out of a crisis. The starting point is getting to grips with the underlying forces at play causing people be react badly.

To have the best chance of prospering in difficult times, you need to concentrate on five areas; Certainty, Purpose, Control, Connection and Success. In short, if you can make people feel more certain, more purposeful, more in control of their circumstances, more connected to their organisation and their work, and more successful then you have the best chance of emerging stronger once the storm has dissipated.

“Leaders are dealers in hope”, said Napoleon Bonaparte. In time of danger or confusion, we look for leaders who are optimistic, self confident, have a clear sense of purpose, and remain resolute. It is in times of war and revolution that such leaders emerge on a world stage. Great change leaders do not make light of the dangers but challenge us to rise above short-term difficulties to achieve things beyond normal expectations. They also create trust through their words and deeds. At a time when they may feel undermined by events, leader must find inner strength - nothing will kill confidence faster than a nervous leader.

Great change leaders communicate constantly. They never allow a vacuum in information to be created as they know that gossip and misinformation will always fill the void. Better to tell people the bad news yourself that have others spin it out of proportion. They do what they ask others to do, displaying integrity between their words and deeds. They persuade people through a positive vision of the future and have a clear and simple plan of action. In short, out of chaos and confusion they create certainty.

When you are caught in a storm a compass is an invaluable possession. It helps guide you when visibility is poor and you cannot rely on the familiar landmarks to help you find your way. When organisations face tumultuous times, they need a steadying influence; something solid they can rely on to guide them. This compass or guiding star comes in the form of an unchanging purpose – an organisation’s vision and values. In stable times, these can seem like ‘nice to haves’, but, like the training of a professional pilot, they come into their own when things get rough. In times of crisis, leaders need to re-iterate the long-term vision of the organisation, reminding people of the larger goal that they are working towards. They need to promote the organisation’s values, like looking after their customers and working in partnership with their suppliers; both easy to do in the good times and more testing in the bad. It is these values that will help see you through and keep your customers and suppliers loyal to you after the storm has passed.

When outside forces, such as an economic downturn, conspire to put an organisation and its employees in difficulties people can feel like helpless victims. It can lead to introspection and in-fighting and is damaging for morale and for performance. Add to this a paternalistic leadership team that believes in hording information and making all the big decisions behind closed doors and people will feel even more helpless.

Tough times call for trust. People need to be involved and included. They need more information, not less. They need a chance to understand the situation, warts and all, and the decisions that need to be taken. If people understand the current circumstances they will understand the need to take drastic action, like slashing expenditure or reducing headcount, in order for the organisation to survive. By treating people like adults you can engage their ingenuity in finding the best way out of difficulties. People might, for instance, decide that they would sooner take a pay cut than have people let go, something they are far less likely to do if redundancies are announced out of the blue. Leaders that help people feel in control of their circumstances gain the trust and cooperation they need to see them through hard times.

People have a strong connection to work. It often forms a big part of their identity and purpose in life. That’s why retirement or redundancy can come as a big psychological blow. We form strong attachments to the people we work with, to particular ways of doing things, to status symbols, and even our personal space such as a desk. Turbulent times call for change and can threaten our very identity. Where change cannot be avoided, people need help in understanding and accepting the difficult emotions associated with letting go of the past. It helps people if they know that it is acceptable to feel bad and that difficult emotions will pass eventually. It helps also to know that past practices were not somehow ‘wrong’ (and by implication the people using them where not misguided), but that circumstances have changed requiring new approaches. Laying old ways to rest and building new connections, for example, through training and team building events allows people to renew their sense of identity and self-respect.

A crucial motivating factor at work is success. But in challenging times, good news can be in short supply. How can people remain motivated to give of their best if all they hear at team meetings is a stream of poor results? On the other hand, people cannot be motivated by a false show of optimism any more than wallowing in self-doubt and gloom. You need to be honest about your situation, but have a clear plan for turning things around. Focus on the future and the action that is required to steady the ship, recover your position and then to surge ahead. Actively seek out successes and to praise people who are doing what’s required to turn things around even if it is not yet delivering the results. Nurture success wherever you find it.

Finally, don’t forget that all your competitors are going through the same turmoil, so whoever navigates the storm most skilfully will come out ahead.

Chartered Management Institute Review

The 5 Forces of Change by Anthony Greenfield

This book is sub-titled ‘a blueprint for leading successful change’. It is a master-class on the competencies required to achieve effective organisational change.The introduction focuses on people issues and outlines the concept of the five forces involved in change management.

Thereafter, the subject is covered in two sections. The first covers the 5 forces - Certainty; Purpose; Control; Connection and Success. The second part is concerned with implementation. Four chapters cover Creating a Tipping Point; Preparing for Change; Implementing Change and Change Leadership.

The book is a manual which will guide a project manager through any form of organisational change. The process is well-structured and clearly expressed. Brief examples drawn from the author’s wide experience of differing organisations are introduced at every stage to clarify the importance of the subject matter. Each chapter concludes with a summary providing a useful aide-memoire and checklist.

A chapter on Preparing for Change easy-to-use survey outlines for assessing the capability of the organisation to adapt and the complexity of the proposed change project. These offer significant insight into where focus should be placed so that the anticipated benefits of change are realised.

Leading successful change is probably the most important and demanding competence in a manager’s role. This work provides an outstanding guide to managers charged with securing organisational change in today’s volatile business environment.

Reviewed by Andrew May FCMIPublished by MANAGEMENT BOOKS 2000 LTDISBN: 9781852526054 18/ Issue 2 March 2009

Free Book if you Subscribe

Subscribe to The HR Director magazine in April and get a free copy of The 5 Forces of Change. See http://www.thehrdicrector.com/ .

Motivating People During Mergers

Organisational mergers can have a hugely negative effect on people's morale. For some top tips on keeping people motivated during these tumultuous times see Accountacy Age TV Top Tips dated 8/1/09 'How to keep staff happy' (during mergers) at : http://www.accountancyage.com/tv-audio/

Review in Personnel Today

Review in Personnel Today - 19th February 2009

The 5 Forces of Change, Anthony Greenfield - Management Books 2000 - ISBN: 185252605X

Greenfield writes in a very open style, so this book would be equally helpful to the business and non-business person. He is a great advocate of the case study as illustration, and uses a variety, from Jamie Oliver and the turkey twizzler, to his own experiences while working at Sainsbury's. The summary at the end of each of the chapter provides a useful reminder of key points, while clever use of tables and graphs helps clarify the trickier concepts.

http://www.personneltoday.com/articles/2009/02/19/49427/change-management-3-of-a-kind.html

Lessons from President Obama on Leading Change

Barack Obama’s presidential campaign was based on a promise of change. Whilst his inauguration address made little direct reference this, it was nevertheless a master class in preparing a nation for change. What can executive and senior managers learn from the most powerful leader in the world?

Careful study of President Obama’s inauguration address reveals his masterly approach to inspiring people to pursue change rather than remain comfortably in the status quo. He clearly understands how people struggle to put old ways behind them and to face a new and less certain future. His speech is packed with ideas and phrases designed to win people’s heart and minds and to prepare them for the road ahead. He does this using five specific strategies; reducing uncertainty, increasing people’s sense of purpose, giving people a sense control over their destiny, ensuring people connect strongly with each other and their country and increasing people’s feelings of success.

Any leader tasked with instigating major change in their organisation will vastly increase their chances of success by following the example of President Obama.

How did President Obama increase Certainty?

By reminding people that great hardships have been overcome in the past (and so can be overcome once again). For instance, in the following phrases:

"Our Founding Fathers, faced with perils we can scarcely imagine, drafted a charter to assure the rule of law and the rights of man...” and [quoting George Washington] “Let it be told to the future world...that in the depth of winter, when nothing but hope and virtue could survive ... that the city and the country, alarmed at one common danger, came forth to meet it."

Through honesty about the situation and a personal certainty and hope for the future:

“Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America — they will be met... for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you.”

How did President Obama increase people’s sense of Purpose?

By creating dissatisfaction with the past:

“Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our health care is too costly; our schools fail too many...”

By appealing to shared values and setting out an inspiring vision of the future:

“With hope and virtue, let us brave once more the icy currents, and endure what storms may come. Let it be said by our children's children that when we were tested we refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations.”

How did President Obama increase people’s sense of Control?

By reminding people it is they who are responsible for America’s greatness and will be again in the future:

“Time and again these men and women struggled and sacrificed and worked till their hands were raw so that we might live a better life. They saw America as bigger than the sum of our individual ambitions; greater than all the differences of birth or wealth or faction...At these moments, America has carried on not simply because of the skill or vision of those in high office, but because We the People have remained faithful to the ideals of our forbearers, and true to our founding documents. So it has been. So it must be with this generation of Americans.”

How did President Obama increase people’s sense of Connection?

He reminded them of a shared history:

“That noble idea, passed on from generation to generation...Our Founding Fathers, faced with perils we can scarcely imagine...earlier generations faced down fascism and communism.”

He talked about what we are now doing together:

“On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.”

He described what we will do together in the immediate future:

“We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We will restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age.”

And appealed to a common sense of duty:

“What is required of us now is a new era of responsibility — a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task.”

How does he increase people’s feelings of Success?

He reminded them of their strength:

“We remain the most prosperous, powerful nation on Earth. Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished.”

He reminded them of recent and current successes (including a oblique reference to 9/11):

“It is the kindness to take in a stranger when the levees break, the selflessness of workers who would rather cut their hours than see a friend lose their job which sees us through our darkest hours. It is the fire-fighter’s courage to storm a stairway filled with smoke, but also a parent's willingness to nurture a child, that finally decides our fate.”

He reminded them that they have the tools to do the job:

“Our challenges may be new. The instruments with which we meet them may be new. But those values upon which our success depends — honesty and hard work, courage and fair play, tolerance and curiosity, loyalty and patriotism — these things are old. These things are true. They have been the quiet force of progress throughout our history. What is demanded then is a return to these truths.”

“Thank you. God bless you. And God bless the United States of America!”

Any organisation that wants to bring about real and lasting improvement must change the mood and behaviour of their people. They could do worse than follow in the footsteps of Barack Obama.

How to Manage Change at Work, The Times 26th Janaury 2009

Help Staff Take Control

Anthony Greenfield, author of The 5 Forces of Change, points to the television series Jamie's School Dinners as an example of buy-in. On the programme, children who refused to try healthy food were given cooking lessons. “They really got their hands on the issue. It's the same for everyone in any organisation - if you involve people, they will buy into it more,” Dr Greenfield said.

(page 53 The Times, 26 Janaury 2009)

Seminars in 2009

If you would like to hear more from Anthony Greenfield about The 5 Forces of Change, the following public seminars and workshops are scheduled so far for 2009:

Chartered Institute of Management: Wednesday 11th February, seminar on "Leading Successful Change" [South London].

Institute of Directors: 1-day conference Thursday 12th February, seminar on "Leading in Challenging Times" [Pall Mall].

CIPD HRD Conference: Tuesday 21st April, 3.5 hr workshop on "Leading Successful Change" [Excel Centre Docklands].

AMBA: Monday 27th April, seminar on "The 5 Forces of Change", Bradford School of Management, 6.30pm.

HR Forum: Thursday 16th July, seminar on "Leading People Through Mergers and Acquisitions" [Stansted Radisson Hotel].