A Group Presentation for "Managing People" module at University of Nottingham, Malaysia Campus. https://www.facebook.com/Fahad.R.Rehmani pk.linkedin.com/in/fahadramzan/ https://twitter.com/FRamzan

1. Change Management
For Competitive Advantage
A Tale of Two Era

2. Agenda
Change
Management
Background
Successful
Change
Elements
iChange
Conclusion

3. Change Management Background
Change
Management
Background
Successful
Change
Elements
iChange
Conclusion

4. Change Management – A Timeless Double Edged Sword
“Whosoever desires constant success must
change his conduct with the times”
“There is nothing more difficult to take in
hand, more perilous to conduct,
or more uncertain in its success,
than to take the lead in the
introduction of a new order of things”
Nicollo Machiavelli (1469-1527)
Renaissance Philosopher

5. Kotter and Lewin
Eight Steps Process
(Kotter, 1995)
Three Steps Model
(Lewin, 1947)
Reinforce The Changes
Refreeze
Consolidate, Reassess & Adjust
Create & Reward Short Term Wins
Change
Empower Others: Remove Barriers
WORLD POLITICS
Communicate The Vision
technology
Economic SHOCKS
competition
SOCIAL TRENDS
Nature of Workforce
Create A New Vision
Form A Coalition
Establish A Sense Of Urgency
Unfreeze

6. We’ve Got The Concept!
“More Than Half Of Organisations
Attempting Transformation Programs Failed”
(Kotter, 1995)
“Change Management programs
has a 70% Failure Rate”
(Kotter, 2012a; Keller & Aiken, 2008; Miller, 2002)
“60% Change Project Fail to meet
schedule, budget and quality goals”
(IBM, 2008)

7. Major Change Challenges
MAJOR CHANGE CHALLENGES (Source: IBM, 2008 )
Soft Factors
Hard Factors
Changing mindsets and attitudes
58%
Corporate culture
49%
Complexity is underestimated
35%
Shortage of resources
33%
32%
Lack of commitment of higher management
Lack of change know how
20%
Lack of transparency because of missing
or wrong information
Lack of motivation of involved employees
18%
16%
15%
Change of process
Change of IT systems
Technology barriers
12%
8%

8. What Makes Change Successful
WHAT MAKES CHANGE SUCCESSFUL (Source: IBM, 2008 )
Soft Factors
Hard Factors
Top management sponsorship
92%
Employee involvement
72%
Honest and timely communication
70%
Corporate culture that motivates and
promotes change
Change agents (pioneers of change)
65%
55%
Change supported by culture
48%
Efficient training programs
38%
Adjustment of performance measures
36%
33%
Efficient organisation structure
Monetary and non-monetary incentives
19%

9. What’s The Problem?
“Change Is Complex”
Lewin assumes change is Linear where in
current environment its no more applicable
(Burnes, 1996; Higgs & Rowland, 2006)
“Network Is In”
Kotter’s 8 Steps is based on
organisation with traditional
hierarchal structure
(Kotter, 2012b)
“Need For Speed”
GE Successfully Implemented
Change, But It Took Them 5 Years!
Is it fast enough today?
(Jick, 1995; Kotter, 2012b)
“Leadership Ability ”
..or the lack of it causes failure
in change execution
(Merell, 2012; Higgs & Rowland, 2010;
Aiken et al., 2011; McKinsey, 2010; Miller, 2002)

10. Successful Change Elements
Change
Management
Background
Successful
Change
Elements
iChange
Conclusion

11. Is There A Solution?
Desired State
1
3
Change
Approach
Status Quo
2
Leadership
Behaviour
Change
Accelerators

12. Element #1: Change Approach
‘One Look’
Master Change
‘I Can Manage Change’
‘I Trust People To Solve Things With Us’
Change Is
Complex
Change Is
Straightforward
Directive Change
Change
Approach
Self-Assembly Change
Emergent Change
‘Launch Enough Initiatives & Something Will Stick’
‘I Can Only Create Conditions For Change’
Local Differentiation
(Source: Higgs & Rowland, 2006 )

13. Element #1: Change Approach
‘One Look’
Master Change
Top Down But Open To Adjustments
Common Plans, Agreed Projects
Build Skills In Leading Change
Networks & Connections Established Across
Organisations
Identify Important Change Personnel And Keep
Them
Directive Change
Change Is
Complex
Change Is
Straightforward
‘I Can Manage Change’
Change
Successful In Long
Term, Continuous Change
Approach
Self-Assembly Change
Emergent Change
‘Launch Enough Initiatives & Something Will Stick’
‘I Can Only Create Conditions For Change’
Local Differentiation
(Source: Higgs & Rowland, 2006 )

14. Element #1: Change Approach
‘One Look’
Master Change
‘I Can Manage Change’
‘I Trust People To Solve Things With Us’
Most Effective In High
Change
Magnitude, Complex
Approach
Change
Self-Assembly Change
‘Launch Enough Initiatives & Something Will Stick’
Emergent Change
An Overall Purpose, Adjusted With Needs
Few Big Rules As Guide
Initiatives Star Small & Build Up
Informal Networks To Build Understanding &
Energy
Step-by-Step, Not Whole Plan In Advance
Tackle Hot Spots
Local Differentiation
(Source: Higgs & Rowland, 2006 )
Change Is
Complex
Change Is
Straightforward
Directive Change

15. Element #2: Leadership Behaviour
 “Mover And Shaker” – Sets Pace For
Others To Follow
 Expects Others To Do What They Do
 Personally Expressive And Persuasive
 Holds Others Accountable For
Delivering Task
 Personally Controls What Gets Done
Shaping Behaviour
‘Without Me Nothing
Will Happen’
 Develop People’s Skills In Implementing
Change
 Lets People Know How They Are Doing And
Coaches Them To Improve
 Gets People To Work Across Organisational
Boundaries And Along Key Processes
 Makes Sure The Organisation’s Processes
And Systems Support Change
 Works With Others To Create Vision & Direction
 Helps Others To See Why Things Need Changing
And Why There’s No Going Back
 Shares Overall Plan Of What Needs To Be Done
 Gives People Space To Do What’s Needed, Within
Business Goals
 Seeks To Change How Things Get Done Not Just
What Gets Done
LEADERSHIP
BEHAVIOUR
Creating Capacity
Framing Change
‘We Cannot Change Unless
We Learn & Grow’
‘With Clear Boundaries,
People Can Contribute’
(Source: Higgs & Rowland, 2006 )

16. Element #2: Leadership Behaviour
Unsuccessful In Implementing
Change – Works Against
Implementation
Shaping Behaviour
‘Without Me Nothing
Will Happen’
Effective style in the long term
change, particularly in organisation
facing continuous change
Most successful style in high
magnitude and complex change that
effects large numbers of people
within the organisation
LEADERSHIP
BEHAVIOUR
Creating Capacity
Framing Change
‘We Cannot Change Unless
We Learn & Grow’
‘With Clear Boundaries,
People Can Contribute’
(Source: Higgs & Rowland, 2006 )

17. Element #3: Accelerate Change
Kotter’s 8 Accelerators
Institutionalise
Strategic
Changes In The
Culture
Never Let
Up, Keep
Learning From
Experience
Build & Maintain
Guiding Coalition
 Form Change Team From Trusted
Volunteers
 Select From Different Hierarchy
Formulate
Department, Level & Skills
strategic vision &
 No Internal Hierarchy
initiatives to
 Enables Ease Of Information
capitalise on
opportunity
Gathering & Processing
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Celebrate Visible
Significant Short
Term Wins
Communicate
Vision & Strategy
Ensure
Network
Removes
Barriers
(Source: Kotter, 2012 )

18. Element #3 Accelerate Change
Kotter’s 8 Accelerators
Institutionalise
Strategic
Changes In The
Culture
Never Let
Up, Keep
Learning From
Experience
Build & Maintain
Guiding Coalition
Formulate
strategic vision &
initiatives to
capitalise on
opportunity
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Celebrate Visible
Significant Short
Term Wins
Communicate
Vision & Strategy
Ensure
Network
Removes
Barriers
(Source: Kotter, 2012 )
 Form Change Team From Trusted
Volunteers
 Select From Different Hierarchy
Department, Level & Skills
 No Internal Hierarchy
 Enables Ease Of Information
Gathering & Processing

19. Element #3 Accelerate Change
Kotter’s 8 Accelerators
Institutionalise
Strategic
Changes In The
Culture
Never Let
Up, Keep
Learning From
Experience
Build & Maintain
Guiding Coalition
Formulate
strategic vision &
initiatives to
capitalise on
opportunity
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Celebrate Visible
Significant Short
Term Wins
Communicate
Vision & Strategy
Ensure
Network
Removes
Barriers
(Source: Kotter, 2012 )
Feasible & Easy To
Communicate
Emotionally Appealing &
Strategic
Inspire Network Of Change
Creation By Employee
Gives Objective, Information
& Direction – Able To Make
Decision On The Fly Without
Need For Decision At Every
Turn

20. Element #3 Accelerate Change
Kotter’s 8 Accelerators
Institutionalise
Strategic
Changes In The
Culture
Never Let
Up, Keep
Learning From
Experience
Build & Maintain
Guiding Coalition
Formulate
strategic vision &
initiatives to
capitalise on
opportunity
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Celebrate Visible
Significant Short
Term Wins
Communicate
Vision & Strategy
Ensure
Network
Removes
Barriers
(Source: Kotter, 2012 )
Memorable & Authentic
Vision Prompt Employees To
Discuss
This Creates Voluntary Buy
Ins, Increasing Change Agents
Organic Increase Of Network
Promoting Speed Of Change

21. Element #3 Accelerate Change
Kotter’s 8 Accelerators
Institutionalise
Strategic
Changes In The
Culture
Never Let
Up, Keep
Learning From
Experience
Build & Maintain
Guiding Coalition
Formulate
strategic vision &
initiatives to
capitalise on
opportunity
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Celebrate Visible
Significant Short
Term Wins
Communicate
Vision & Strategy
Ensure
Network
Removes
Barriers
(Source: Kotter, 2012 )
Guiding Coalition Can Create
Solution Rapidly
Ensure No Barriers Between
Departments To Support
Cooperation
Solution Can Be Rapidly
Duplicated Across
Organisation With Team Mix

22. Element #3 Accelerate Change
Kotter’s 8 Accelerators
Institutionalise
Strategic
Changes In The
Culture
Never Let
Up, Keep
Learning From
Experience
Best Short-Term Wins Should
Be Obvious, Unambiguous, &
Clearly Related To The Vision
Buoys Existing Volunteer
Attract New Volunteers
Success Breeds Success
Build & Maintain
Guiding Coalition
Formulate
strategic vision &
initiatives to
capitalise on
opportunity
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Celebrate Visible
Significant Short
Term Wins
Communicate
Vision & Strategy
Ensure
Network
Removes
Barriers
(Source: Kotter, 2012 )

23. Element #3 Accelerate Change
Kotter’s 8 Accelerators
Keep Up Urgency Else
Volunteer Will
Waiver, Change Slows Down
Or Stops
 Continue With Strategic
Initiatives, Create New Ones
 Enables Competitive
Advantage With Shifting
Business Environment
Institutionalise
Strategic
Changes In The
Culture
Never Let
Up, Keep
Learning From
Experience
Build & Maintain
Guiding Coalition
Formulate
strategic vision &
initiatives to
capitalise on
opportunity
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Celebrate Visible
Significant Short
Term Wins
Communicate
Vision & Strategy
Ensure
Network
Removes
Barriers
(Source: Kotter, 2012 )

24. Element #3 Accelerate Change
Kotter’s 8 Accelerators
New Direction And Method
Must Sink Into Organisation
Culture
With Visible
Results, Employees Will Want
To Be Part Of This Culture
Long Run Becomes
Ingrained, Creating Organic
Change Agent Network
Institutionalise
Strategic
Changes In The
Culture
Never Let
Up, Keep
Learning From
Experience
Build & Maintain
Guiding Coalition
Formulate
strategic vision &
initiatives to
capitalise on
opportunity
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Celebrate Visible
Significant Short
Term Wins
Communicate
Vision & Strategy
Ensure
Network
Removes
Barriers
(Source: Kotter, 2012 )

25. Elements Of Successful Change
Desired State
1
3
Change
Approach
Leadership
Behaviour
Change
Accelerators
Emergent Change
Status Quo
2
Framing Change
Master Change
Creating Capacity
Kotter’s Eight
Accelerators

26. iChange
Change
Management
Background
Successful
Change
Elements
iChange
Conclusion

27. John Sculley – The Marketing Genius
1980
1976
Apple Founded
by Steve Jobs, Steve Wozniak
& Ron Wayne
1978
Apple Lisa, world’s first
Graphical User Interface
computer launched
1985
RAPID GROWTH
Macintosh, Apple main
product, continually faced
with Lisa and Macintosh
SALES DECLINE
Apple continues with Apple
LISTED
Apple gets
on NYSE
1983
Jobs woo Pepsi’s
John Sculley:
Pepsi Challenge Genius
Net Sales Declined by
$20 Million
Jobs was forced to quit –
Board of Directors
Wanted Change
1986
Project Newton
Sculley’s Big Opportunity
to transform Apple’s direction
-Interoperability
- New Technology

28. John Sculley vs Change Accelerators
Onslaught of Microsoft
with IBM PC partnership
(1981), Graphical User
Interface OS(1983) and
Successful IPO (1986)
High-End Products
were beginning to FAIL
Gathered a team of
Experienced
Engineers
and housed them in
abandoned warehouse
No inter-department
involvement in Project Team
that was formed
VISION
“World’s first
Tablet Computer with
sophisticated Artificial
Intelligence at desktop
Computer prices to
replace desktops”
Two High-Budget
video to show
envisioned product
positioning & features
Video & strategy
Communicated
to everyone and create
excitement as the
Future PDA
NEWTON - the new
Technological
Breakthrough saviour
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Build & Maintain
Guiding Coalition
Formulate
strategic vision &
initiatives to
capitalise on
opportunity
Communicate
Vision & Strategy

29. John Sculley vs Change Accelerators
Sculley pooled talented
engineers from different
areas to enhance
communication and
development process with
project permission
directly from him
Sculley publically launched
Newton without
recognition to the
team – it was all for
product marketing
Other projects followed
the same cycle with gap
in 3 accelerators –
company lost
competitive edge with
every failure
Powerbook was the only
new product rolled out
Experimented with free
reign of decision Newton
team allowed to research
Sales Growth
drop sharply from
$2 Billion in 1987 to
$10 Million in 1990
Microsoft sells
1 Million copies of
Windows 95 in four days in
1995
without telling
Sculley
Ensure
Network
Removes
Barriers
Celebrate Visible
Significant Short
Term Wins
Never Let
Up, Keep
Learning From
Experience
Institutionalise
Strategic
Changes In The
Culture

30. John Sculley vs Change Approach
‘One Look’
Directive Change
“I Can Manage
Change”
Inflexible, Stiff
Prescribed Steps & Recipes
Strong Controls
Master Change
Higgs & Rowland Study:
‘I Trust People To Solve Things With Us’
Unsuccessful Approach
Defensive Under Pressure, “Just Do It!”
Bureaucratic Approach To Change
Change Is
Complex
Change Is
Straightforward
To p Do w n A p p ro a c h, No F eed b a c k
Change
Approach
Self-Assembly Change
Emergent Change
‘Launch Enough Initiatives & Something Will Stick’
‘I Can Only Create Conditions For Change’
Local Differentiation
(Source: Higgs & Rowland, 2006 )

31. John Sculley vs Leadership Behaviour
Higgs & Rowland Study:
Unsuccessful Behaviour
 Made himself CTO in 1990
and tightly controlled
direction
Shaping Behaviour
‘Without Me Nothing
Will Happen’
 Employee’s took him as an
“Arrogant Person”
LEADERSHIP
BEHAVIOUR
Creating Capacity
‘We Cannot Change Unless
We Learn & Grow’
 Stifled creation by enforcing
tight SOP
 Drives hard on his personal
beliefs – sales & marketing
insights ignored
Framing Change
‘With Clear Boundaries,
People Can Contribute’
(Source: Higgs & Rowland, 2006 )

32. John Sculley – A Dashboard View
Sculley’s Newton
centred change
project
Apple at the end
of Sculley’s reign
Change
Approach
Leadership
Behaviour
Change
Accelerators
Directive Change
Shaping Behaviour
Failed To Sustain
Organic Buy-Ins
Microsoft &
IBM moved
ahead
Sales Growth
Continues To
Fall
Low Product
Innovation

33. Steve Jobs – The Creative Genius
2001
1997
Steve Jobs Reappointed
CEO of Apple
3 major launches
2003
iTunes Store
2005
1998
iMac
iTunes
2000
iPod was conceptualised
Mac OS X Launched
Apple Store
iPhone
2010
iPod Shuffle
2006
MacBook Pro
iPod
2007
2011
iPad
Jobs Resigns
Sales Increases to $28.5 Billion
2nd Global Most Valuable Brand

34. Steve Jobs vs Change Accelerators
In 2000, Steve Jobs saw
Huge Competitive
Opportunity in Digital
Music industry with
popularity of MP3 and
Napster - Project iPod
was launched
Authorised $10Million buy
all Toshiba’s tiny disk drive
for Project iPod
CREATE SENSE
OF URGENCY
AROUND SINGLE
BIG
OPPORTUNITY
Formed a Project Team
group from Various
VISION
Communicated his
vision of iPod to the
Horizontal Teams
All-in-one package:
 Easy-to-use jukebox
software
 Elegant iPod
 Store for downloading
tunes seamlessly
internal team, daily
basis once prototype is
there
Hardware
Engineering, Design
Div., Copywriters, Mark
eting
Team, Partnerships
and Interface Designer
and others around the
Shared Vision of
the Product
Build & Maintain
Guiding Coalition
“Whole Widget Goal”
Formulate
strategic vision &
initiatives to
capitalise on
opportunity
Work with his team to
lobby the vision to
music executives –
iTunes-iPod launched
with 200,000 songs in
stock
Communicate
Vision & Strategy

35. Steve Jobs vs Change Accelerators
Jobs maintained the
Project iPod team from
different areas of the
business to work
together to capitalise on
the opportunity with
speed!
iPod was launched, all
Apple employees were
given an iPod to
celebrate the
team’s success
It took them 3 months
to develop the
Preliminary Version
Apple has excelled at
Jobs successfully
keeping pace with
changes and
successfully improve
and refine the iPod
maintain the
competitive culture
product line to iPod
Shuffle, iPod Nano, iPod
Touch and iPod Classic
innovative
products
By 2006, 58 Million iPods
were sold!
and continues to
develop more
(9 major launches in a
span of 10 years) iPhone, iPad , OS
X, MacBook Pro etc.
and 8 months final product
Ensure
Network
Removes
Barriers
Celebrate Visible
Significant Short
Term Wins
Never Let
Up, Keep
Learning From
Experience
Institutionalise
Strategic
Changes In The
Culture

36. Steve Jobs – How iPod Changed the World
“The Biggest Apple project of
2001 which showcased everything
best about Steve Jobs”
“With Apple's iTunes and
iPod, he revived the single, put
music libraries in fans' pockets
and posed a challenge to
brick-and-mortar record
stores and radio.”
“To date Apple holds over
an 85% market share for
electronic music and has
sold over half a billion
tracks.”
“If there was ever a product that catalysed what’s
Apple’s reason for being, it’s this. Because it combines
Apple’s incredible technology base with Apple’s legendary
ease of use with Apple’s awesome design.”
(Source: 2001, quoted in Steven Levy’s Eulogy)

37. Steve Job’s Change Approach
‘One Look’
Master Change
“I Trust People To
Solve Things With
Us”
Directive Change
Du p l i c a t ed S k i l l To Ot h er Pro j ec t
Created Vision, Team Refined
Created Network Connections Via
i Po d Tea m
‘I Can Manage Change’
Higgs & Rowland Study:
Successful Approach
Skills Required Were Hired, Trained Others
Change
Approach
Kept Main Drivers Of iPod, involved in
successful iPhone, iPad etc
Self-Assembly Change
Emergent Change
‘Launch Enough Initiatives & Something Will Stick’
‘I Can Only Create Conditions For Change’
Local Differentiation
(Source: Higgs & Rowland, 2006 )
Change Is
Complex
Change Is
Straightforward
Drove Change Efforts

38. Steve Job’s Leadership Behaviour
 Provide Continuous Technical Skills
Training And Encourage Employees To Propose
Their Ideas To Be Considered
 Works Closely With The iPod Team To Provide
Constructive Feedback On Their Design
Shaping Behaviour
 Breaks Down Barriers And Put Teams Across
Functional Lines In The iPod Team
‘Without Me Nothing
Will Happen’
 Create Cross Functional Operations Team
– iTunes, Apple Store And iPod Team Worked
Together For The Launch
Facilitates To Have Other Departments
Processes , Example Purchasing Process, To
Support The Project Success
LEADERSHIP
Higgs & Rowland Study:
BEHAVIOUR
Successful Behaviour
Creating Capacity
Framing Change
‘We Cannot Change Unless
We Learn & Grow’
‘With Clear Boundaries,
People Can Contribute’
(Source: Higgs & Rowland, 2006 )

39. Steve Jobs – A Dashboard View
Apple at the end
of Jobs’ reign
Leadership
Behaviour
Change
Accelerators
Master Change
Jobs’ iPod centred
change project
Change
Approach
Creating Capacity
Succeed In
Sustaining Change
2nd Global
Most Valuable
Brand
Great Increase
of Revenue and
Share Price
High Product
Innovations

40. Steve Jobs Change Effects
Apple Stats
Macs sold (mm)
US PC Share
Revenue ($b)
Cash ($b)
Share Price ($b)
4
11%
$30
$80
$400
3
8.25%
$22.5
$60
$300
2
5.5%
$15
$40
$200
1
2.75%
$7.5
$20
$100
0
1997
2011
0%
1997
2011
$0
1997
2011
$0
(Source: Frommer, 2011 )
1997
2011
$0
1997
2011

41. Conclusion
Change
Management
Background
Successful
Change
Elements
iChange
Conclusion

42. Challenges
Relevancy Across Country
 Studies UK & US Based
Fit To Model
 Organisations May Not
Fit Into Discussed
Leadership & Approach
Model
 May Not Be Easy To
Map & Transform To
Proposed Model
 Culture & Economic Status
May Vary Effectiveness In
Other Countries
Business Evolution
 Affects Relevancy
Of Frameworks
CHANGE MANAGEMENT
Accelerated Structure
 Can’t Change Overnight New Structure Running
Parallel
 Reporting Line & Politics
May Hinder Progress
 Continual
Monitoring Of
Effectiveness Of
Change Program

43. Summary
• Change is complex
• There is no “single recipe” for successful Change Management
• Major considerations needs to be given to:
– Change Approach
– Leadership Behaviour
– Change Accelerators
• While recognising challenges, organisations could use proposed
models as a start and modify accordingly based on organisation
context
• Even if company is having competitive advantage, should not have
false sense of security and continue to change to remain a leader
as seen in Apple’s case

44. Parting Words
“It’s not the strongest of the species who
survive, nor the most intelligent, but the ones
most responsive to change”
Thank You!