A Prescription for Success*
*And Success Requires Change
The Importance of a Well-Designed Agency/Client Relationship in a Change Management Environment
Anthony D’Angelo and Gary GratesInaugural Class, ISDP Communications Management Program
How central to your job is managing change?
What We’ve Learned:Most organizations fail to realize the benefits
expected from a change initiative (Over 70%)Traditional communications approaches don’t
help; they hurtChange isn’t the problem; clarity, engagement,
and accountability are keyThere are common traits of winners and losersBasic principles and best practices
Winners and Losers
Auto IndustryTech BubbleLessons from Jack WelchPepsiCo
60+ Sources Boiled Down to 5 Motifs Effective change communications is a strategically
integrated management activity Effective change communication is two-way symmetrical
in nature – it begins with changing the conversation Effective change communication is often promoted
through cross-functional teams or other special organizational structures but directed from central leadership source
Effective change communication is linked to organizational and individual performance, and is measured—research is used in formulation and evaluation
Change is difficult, uncertain, costly and takes a long time
Change Management Considerations
Many companies inadvertently limit communication to tactical support in change management, diminishing the effectiveness of enterprise-wide change efforts
Organizations that are successful leading transformation and change take a broader, strategic view of communications – we call this Leadership and Employee Engagement
Leadership and Employee Engagement unifies change management and communications, which should be on parallel paths
What Is Change? Process/Developmental Change -
Improvement of current systems, processes or skills
Transitional Change - Creation / implementation of new products, services, systems, processes, policies or procedures that replace current portfolio or substantially upgrade it
Transformational Change – Current business model is being challenged while a new competitive landscape is still unknown; new environment requires a fundamental shift in mindset, strategy, organizing principles, behavior and/or culture designed to support new business model
The Current Reality: A World in Fast Gear
The Age of Transparency Customers, employees, shareholders, investor community are
privy to higher levels of product information and company knowledge
A New Corporate Ecosystem The lines between stakeholders are blurred; all are integral
parts of one organization
Growing demand for personalized productsCustomers and employees alike have become accustomed to
receiving products, services and information that is custom-tailored to meet their needs
Growing Sense of Distrust for CorporationsRecent events have elevated concern about corporate
governance, lack of trust for executives and boards
A New Balance of Power Balance is shifting away from management to employees,
customers, etc.
Social Media Is Mainstream MediaSixty-six percent of people on-line blog or
networkExponential growth of Twitter; 600 million on
Facebook120 million visitors to Wikipedia each month; 5.5
million video feeds to YouTubeDiversity continues: Flickr, Digg, Skype, LinkedIn
Why Change Doesn’t StickDon’t believe in the rationaleWhat‘s wrong with the way we do things now?Perceived loss of controlNo relevant metricsTrust lacking from previous effortsLack of clarity on expected outcomesThreatFear of failureOverwhelming task
Typical Internal Perceptions about Change Management
1. Change = Cost Reductions2. “It sounds the same.”3. “I have no idea what you’re talking about.”4. “Are we winning?”5. “Why is my manager clueless?”
1. Change = Cost Reductions
Most change efforts go no further than cost reduction exercises
“Change” means fewer resources to achieve better results
There is no “there” there
2. “It sounds the same.”Overuse of language like “change,” “improve”
and “competitive advantage”“Been there, done that”One change initiative after another creates a
“little boy who cried wolf” syndrome People begin to say: “This too shall pass” They don’t take seriously leadership messages about
the need to change
3. “I have no idea what you’re talking about”
What is it that’s causing this?Teach me, listen to me, engage meWhat should I see that impacts the organization?
Communicate how that relates to the organization and the internal environment
4. “Are we winning?”
How can I know things are moving in the right direction?
While I do my job, what are you doing to assure all the parts are working toward the company’s success?
Is what I’m doing the right thing(s) to be doing?
5. “Why is my manager clueless?”
My most trusted source of information is as out of the loop as I am
Why should I trust anyone (or anything that anyone else tells me)?
Three Difficult Principles
Let the realities of the marketplace drive changeTeach employees that management doesn’t
have all the answers – open channels for engagement
Ignore instinct
What Communications Leaders Need to Equip Their Organizations for Successful ChangeDefining the Change/End StateIdentifying the guidepostsCommon Vocabulary/LanguageKnowledge of what works and doesn’t workKnowledge of what they can control and can’t
controlTrainingCommunications Options
Communicators During ChangeJournalists at the outset
Ask the tough questions
Advocates during the process Catalyst for new conversations
Employees throughout Empathetic
Leveraging the Client/Agency Relationship
The Client brings… Leadership and direction Open mind for the task at
hand Insights into the
uniqueness of the organization and its people
Open doors to appropriate management people
What success will look like
Partnership oriented
The Agency brings… Outside perspective on
the impact of change on organizations
Fresh thinking/Insights New approaches to new
challenges New view of old ways of
doing things (messages, channels)
Partnership oriented
Pillars to Effect Change
Management practices
The organization’s
conversation
The implem
entation
apparatus
Respecting the Structure and the System
What do we want people to know, feel and do?
What will they experience that’s different?
Communications in a Change Environment…
Provides clarity around business direction, strategy, priorities
Gives external/internal contextEnsures people understand rationale for
decisionsInstills a sense of urgencyEnables relationships between leadership,
management, supervisors and employees to evolve–the right things are being said, heard and done
People understand where the business is and how they fit in
What we measure – outcomes
It’s About Setting Expectations…For managers and employees:Acknowledging everyone makes a difference; a
contributionTell me how I’m doing?
Acting like owners of the businessTreat me with respect.
Never being satisfied with current performanceHelp me set stretch targets.
Being focused on outdoing our competitionLet me see the marketplace.
Grasping the Strategy: The Strategic RoadmapVisionA brief, graphic and focused metaphor that characterizes the bond between your key customers and primary product, i.e... your core business. The core of what you’re striving to become.
MissionAn organization’s purpose, what and where it is today, and how it will achieve its vision.
Key Measures• Reputation• Sales• Market share• Margins• Rate of return• Productivity• Customer satisfaction index• Employee satisfaction index
Market StrategyKey customers you are targeting and the special needs you fill.
Product/Services StrategyThe distinctive trait that will differentiate your products and services as you fill the market’s special need.
Operations StrategyThe specific operational approach that will help you meet your market’s special needs most profitably and consistently.
ValuesThe four or five uncompromising beliefs you’ll recognize, reward and develop to ensure consistent behavior.
Initiatives for 2011 (examples)• Strengthen customer management processes • New information systems• Acquisitions• New product development and introduction
processes• Customer satisfaction programs• Leadership development• New marketing structure
In Practice: A Change StrategyDISCOVER
[Segmented target audiences]
First priority: management comprehension - hold strategy development sessions with managers detailing marketplace realities, competitive issues, etc.
Created a narrative describing the strategy in story form
Established an employee worldview based on current feedback from cultural survey on employee attitudes, issues, behaviors factored into planning
Raised the volume on key inputs of the strategy – customers, competition, products, delivery, societal concerns
Synchronized leadership’s messaging across all divisions and BUs
SELL[Homogeneous audience]
Brochure producedTheme adaptedCoffee mugs, mouse pads,
postersCEO e-mail to all employeesArticle in newsletter and on
Intranet announcing new strategy via theme
One-way leadership messaging via net – CEO blog
Information “packets” given to all managers telling them what to say
Cascading of information begins
Sell vs. Discover: Campaign vs. Coherence
SELL DISCOVERLeadership briefing with
managers, supervisorsFour key business unit
presidents conducted road shows with their staffs –webcast on portal for all employees
All-employee jam with five conversation streams reflecting
key elements of the strategyFacebook page where people
can opt-in the discussionLeadership directive to
department heads to prioritize plans, budgets against the strategy
Refresh the message based on the narrative to keep it relevant
Measuring the Right Things…Outputs vs. Outcomes
BrochuresNewslettersPress ReleasesTown HallsPortal/IntranetVideosEventsPostersBulletin Boards
Relationships…BehaviorDiscretionary
EffortTrustCollaborationInnovation
Make Human Resources a Significant Part of the Process This function is as critical as communications is
to the success of the change effort simply because human resources professionals are needed to develop the new policy procedures, job specs and performance criteria that give meaning to the change effort.
HR professionals have proven themselves to be a strategic resource with valuable potential for influencing management decisions on talent, training and development–a critical advantage when it comes to managing change.
Six Principles To Shape Change CommunicationsMove communications beyond process updates – incorporate
messaging on desired results, vision and the effect or benefit of changes to customers and other external stakeholders
Determine what the marketplace will see as a result of organizational changes – to mitigate negative impact, plan for likely scenarios and align efforts to ensure One Face to the Customer
Create a central narrative with elements that stay consistent, evolve with internal and external realities of the business and are supported by examples
Shore up the global change and communications network, including all consultants – infuse with central narrative and leadership engagement model, in addition to protocol, tools, templates
Challenge and test assumptions about the culture, employee mindset, resistance to change and communication preferences
Treat gaining leadership and management buy-in on change strategies as a process, rather than a one-time event
The Right Questions (to answer for yourself) What is the specific assignment that communications is
being directed towards? How is the organization defining success? How will measurement be integrated into the process? What is the delineation of activities and responsibilities
between the agency and the client? What types of resources/skills set will be needed to carry
out the assignment? What’s the protocol for interaction, decision making,
project management? What do you really need from your outside partner; what
is your value proposition to the client?
“The real act of discovery is not in finding new lands but in seeing with new eyes.”
Marcel Proust
