The document discusses how companies are managing change during an economic recession. It finds that 60% of firms are continuing or accelerating existing change programs instead of blaming falling profits solely on external factors. Successful change requires a clearly defined plan with achievable milestones and objectives as well as commitment from senior managers to win over employees' hearts and minds. Change initiatives often fail due to lack of urgency, unclear goals and objectives, lack of management support, and employee resistance to change.

1. The Burning Platform How companies are managing change in a recession (A report from Economist Intelligence Unit in 2009)

2. Before we go into the article…

3. And now for a bit of history…

4. “…the reason many change initiatives are unsuccessful is that they fail to establish a sense of urgency.” - Harvard Business School professor John Kotter

5. ImportantFindings of the Research A unique opportunity to push change Some change initiatives are just too important to put off Why change programmes fail

6. “Given the systemic nature of the crisis, it would be understandable if firms blamed their falling profits on external factors. ”

7. “Given the systemic nature of the crisis, it would be understandable if firms blamed their falling profits on external factors. ” HOWEVER

8. “The majority (60%) of firms, however, are continuing with existing change programmes and even launching new ones, and many existing programmes are being accelerated.”

9. Why change programmes fail

10. Why change programmes fail Lack of clearly defined or achievable milestones and objectives

11. Why change programmes fail Lack of clearly defined or achievable milestones and objectives Lack of commitment from senior managers

12. Why change programmes fail Lack of clearly defined or achievable milestones and objectives Lack of commitment from senior managers Employee resistance

13. Why change programmes fail Lack of clearly defined or achievable milestones and objectives Lack of commitment from senior managers Employee resistance Management’s inability to win over employees’ heart and minds

14. The Verizon Story

15. PERSONAL ASSESSMENT /10

16. PERSONAL ASSESSMENT 8 /10

17. Issues for Discussion How does technology help in change management? Do you think change management should focus on the short term or long term?