2. LEARNING TO LEAD…CHANGE
GM, Asia Pacific
Shared
Services
Economics,
Accounting
& Masters of
Tax law
Finance,
Tax and
Treasury
Central NSW
Divisional CFO
Finance
Strategy
&
Segmentation
EGM,
Shared
Services
& CPO
SLSA
President’s
Advisory Board
2000
EGM,
Corporate
Services
Institutional
Banking &
Markets
EGM, Strategy &
Operations
Masters of
Accounting,
CPA
EGM,
Global
Business
Services
Graduate, AICD
Age Manager,
SLSA
Development
Board + FACC
SLSA Board,
Supply Nation
Board
Chair of
Indigenous
Education
Fund
CBA Group
Super Chair
R&AC
Bronze Medallion,
Silver Medallion,
Gold Medallion,
Chief Instructor,
competitor, Club
Captain.
Sydney Branch,
NSW and
Australian Surf
Life Saver of the
Year
St Joseph’s
College
Foundation
Board
Qantas
Superannuatio
n Board
Bawaka Homeland,
Arnhem Land, NT
Chief
Operating
Officer
2SAP/ARIBA | LEADERSHIP AND CHANGE MANAGEMENT
3. “More than 70% of
needed change either
fails to be launched,
fails to be completed
or finishes over
budget, late and with
initial aspirations
unmet.”
JOHN P. KOTTER
Harvard Business School
4. Change Fatigue
65% experience a feeling
of exhaustion through
being pressured to do
too many transformations
at once
4
48% say companies lack
the skills to ensure change
can be sustained
Transformations decided,
planned and implemented
without input from lower
levels of the organisation,
with 44% stating they don’t
understand what is
required and 38% saying
they don’t agree with it
POOR CHANGES OUTCOME
1.
FATIGUE
2.
SKILLS
3.
INPUT
SAP/ARIBA | LEADERSHIP AND CHANGE MANAGEMENT
5. 1
• Allowing too much complacency
2
• Failing to create a sufficiently powerful guiding coalition
3
• Underestimating the power of the vision
4
• Under communicating the vision
5
• Permitting obstacles to block the vision
6
• Failing to create short term wins
7
• Declaring victory too soon
8
• Neglecting to anchor changes firmly in the corporate culture
5
WHY DOES CHANGE FAIL?
8 Common Errors in Organisational Change Efforts
SAP/ARIBA | LEADERSHIP AND CHANGE MANAGEMENT
7. Organizations with greater
maturity in change
management meet the
highest ROI (on average
143%) and achieve the
largest proportion of the
project's objectives.
7
CHANGE MANAGEMENT MATURITY
Source: Brio Conseils, McKinsey & Prosci
0
10
20
30
40
50
60
70
80
90
100
Very Low Low Good Excellent
Objectives
Reached
Deadlines
Respected
Budget
Respected
1.6 times more
likely to respect
BUDGET
4 times more likely
to respect
DEADLINES
6 times more likely
to reach project
OBJECTIVES
N=116
N=134
N=111
SAP/ARIBA | LEADERSHIP AND CHANGE MANAGEMENT
8. 8
KOTTER’S 8 STEPS FOR SUCCESSFUL
CHANGE MANAGEMENT
SAP/ARIBA | LEADERSHIP AND CHANGE MANAGEMENT
9. In Theory In Practice
1. Establishing a sense of urgency PowerPoint
2. Creating the guiding coalition Usual Suspects
3. Developing a vision and strategy Financials
4. Communicating the change vision Push 1-3
5. Empowering employees for broad-based
action
Resistance
6. Generation short-term wins Settle
7. Consolidating gains and producing more
change
Save face
8. Anchoring new approaches in the new
culture
New PowerPoint
9
…BUT WHAT HAPPENS IN PRACTICE
Tops
Tops
Middles
Bottoms
SAP/ARIBA | LEADERSHIP AND CHANGE MANAGEMENT
10. 10
WHAT DOES IT TAKE?
SAP/ARIBA | LEADERSHIP AND CHANGE MANAGEMENT
11. Management
• Reward and recognition of team
members
• Prioritising projects and resources
• Effective project and program
management to deliver quality
outcomes
• Monitor progress and solve problems,
report status
• Develop capacity and capability of the
team
• Lead and facilitate constructive
communication
11
LEADERSHIP ROLE IN LEADING CHANGE
Leadership
• Organisational Purpose - Creating
and communicating a compelling and
clearly defined vision, mission and
purpose
• Individual Consideration - empower
the team – coach & mentor
• Inspirational Motivation - creating
urgency and excitement
• Intellectual Stimulation - challenging
the status quo, being curious about
best practice, finding new links and
opportunities
• Influence - creating alliances and
removing obstacles
SAP/ARIBA | LEADERSHIP AND CHANGE MANAGEMENT
15. “You cannot get through a single
day without having an impact on
the world around you. What you
do makes a difference, and you
have to decide what kind of
difference you want to make.”
JANE GOODALL