GROUP: NUMBER ONE

1. LE THI HOANG LAN

2. TRUONG THI XUAN THAO

3. DO THI TUYET NHUNG

4. TRAN NGAN HA

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WHY IS CHANGE SO HARD?

Most people are reluctant to alter their habits;

What worked in the past is good enough;

Resistance is even stronger if the organization has succession of leaders;

Call for sacrifice and self discipline is met with �cynicism, skepticism and resistance.

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For change to stick, leaders must design and run an effective persuasion campaign

To create a continuously receptive environment for change

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THE FOUR PHASES OF A PERSUASION CAMPAIGN

Example: The turnaround of Beth Israel Deaconess Medical Center (BIDMC) in Boston was managed by Paul

Levy, who became CEO in early 2002.

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BIDMC’S PROBLEM?- A misguided focus on clinical practice rather than backroom

integration- A failure to cut costs- The repeated inability to execute plans and adapt to

changing conditions in the health care marketplace

Þ The hospital was losing $50 million a yearÞ Relations between the administration and medical staff

as well as between management and the board of directors were strained

Þ Employees felt demoralized, having witnessed the disappointing failure of its past leaders.

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PHASE 1. SETTING THE STAGE

Convince employees that radical

change is imperative; demonstrate why

the new direction is the right one

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PHASE 1. SETTING THE STAGE

In BIDMC: Levy…

…Chose to act as the managerial equivalent of a good

doctor

…Developed a bold message that provided compelling

reasons to do things differently and then cast that message

in capital letters to signal the arrival of a new order.

…Described the open management style he would adopt.

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PHASE 2. CREATING THE FRAME

Effective leaders need to help employees interpret the plans for change.

With complex plans, skilled leaders use “frame” to provide context and shape perspective. This way, leaders can help

people digest ideas in particular way.

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PHASE 2. CREATING THE FRAME

FOR BIDMC

A detailed

email memo

1st part –

modify critics, reduce

the fears of doctors

and nurses

2nd part – provide

further detailed about

the turnaround plan

3rd part – anticipate

and respond to

prospective concerns

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PHASE 3. MANAGING THE MOOD

Leaders must pay close attention to employees’ emotions – the ebb and flow of their feelings and moods - and work hard to preserve a receptive climate for change.

This requires a delicate balancing between presenting good and bad news in just the right proportion.

Employees need to feel that their sacrifices have not been in vain and their accomplishments have been recognized and rewarded.

Communication must strike the right notes of optimistic and realism and carefully calibrate the timing, tone, and positioning of every messages.

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PHASE 3. MANAGING THE MOOD

For BIDMC:

Challenges for leader (Paul Levy):

• To give remaining employees to grieve and recover from layoffs and other difficult measures

• To make them feel that he cared for and supported them

• To ensure that the turnaround plan proceeded apace.

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PHASE 3. MANAGING THE MOODFOR BIDMC

Actions: balance bad news and good news

To acknowledge employees’ feeling of depression while helping them look to the future

• In an email, Levy explicitly empathized with employees’ feelings and then urged employees to look forward and concluded on a strongly optimistic note.

To keep employees focused on the continuing hard work ahead

• Spoke plainly about the need to control costs and reminded employees that merit pay increase would remain on hold.

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PHASE 4. REINFORCING GOOD HABITS

EFFECTIVE CHANGE LEADER should: • Personally model new ways of working and provide coaching and support.

• Explicitly reinforce organizational values on a constant basis, using action to back up their words.

• Recognize that many staff simply do not know how to make decisions as a group or work cooperatively, and accordingly delegate critical decisions and responsibilities to provide them with ample opportunities to practice new ways of working.

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PHASE 4. REINFORCING GOOD HABITS

FOR BIDMC- Levy had established meeting rules requiring staff to

state their objections to decision and to “disagree without being disagreeable”.

- When one medical chief emailed Levy, complained about a decision had made during a meeting and copied the other chief and board chairman- Levy took action.

- He responded the email with the same audience publicly reprimanding the chief for his tone, lack of civility, and the failure to follow the rule about speaking up during meetings.

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CONCLUSION

In a receptive environment, employees not only understand why change is necessary; they’re also

emotionally committed to making it happen, and

they faithfully execute the required steps.

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THANK YOU FOR YOUR LISTENING !