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    When Does Change Management Change The Management

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    Guy Inbar

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    When Does Change Management Change The Management

    Uploaded by

    Guy Inbar
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    22 views3 pages

    When Does Change Management Change The Management

    Uploaded by

    Guy Inbar

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    When Does Change Management = Change the Management?

    I was talking with a colleague about my experience in transformational change management, when he asked me- so, when do you think is the time for the Board to make the tough decision to change the management? Well this is a tough one- as every situation is different to another, but my answer was based on one word: TRUST. This includes not only when the Board loses its personal trust in the CEO, but also the professional trust in her/his ability to move the company forward and implement a required transformational change. Imagine the following real situation (due to confidentiality I cannot reveal the companys name): a global organisation is getting into financial stress. To solve the situation, a restructuring agreement with banks to settle the debt is signed off. A couple of years later, the company cannot deliver on the agreement and in order to save the company, a new restructuring agreement with the banks is negotiated. Looking at a new financing structure is a type of transformational change. It is not enough to reach an agreement without looking at the situation as transformational, and making the necessary diagnosis and changes to internal and external processes, culture and people. In this specific situation, the Board members should have enquired: What are the reasons that brought the company to financial stress? What are the changes that the top management put in place to ensure that the company will be able to settle its debts? Why are we not delivering on the first agreement? Its been two years since the first agreement, and yes- the CEO can negotiate a new agreement. BUTdo we trust that the same management, who failed in the first change, will be able to transform the organisation in the second time?

    Well, said my colleague- we need to remember that the Board only meets once a month and looks at governance, compliance, strategy, succession planning, competition and finances- not normally taking part in change management. My argument though is that while there are change management processes in every organisation, transformation and change management are not the same.

    Dr Zivit Inbar, GAICD au.linkedin.com/in/zivit/

    When Does Change Management = Change the Management?


    Change management- aims at making changes to specific problems and opportunities by changing how the work is done: processes, systems, organisational structure. The responsibility for the change is with the management and executives and the Board would receive general information about the more important changes. While changes can be small and incremental, transformation refers to large and significant changes that impact the entire organisation, often in times of crisis. They must be led from the top in order to truly happen. However in some cases it may be difficult for the CEO to acknowledge the need for transformation, as it implies criticism on her/his performance. Sometimes, in order to transform the organisation, the CEO will need to make fundamental changes personally, including changing their own leadership style. Just like the changes Board members need to make when the organisation is in a crisis: moving from the helicopter view into the deeper details.

    During transformation, the Board should be involved in: Understanding where the organisation is at the moment Setting with the executives the shared vision for the future Approving the strategic & risk plans Determining KPIs for change and monitoring plans Approving the communication plan Discussing possible blockers and how to deal with them as well as identifying the positive DNA the organisation has, as this is the building block for the change. In other words, when making changes we would like to keep the strength areas and change only the areas for improvement. Asking do we believe that the current management can lead this change? Do we have the range of skills in the top management to lead the change, or is there a need to introduce new blood with targeted expertise?

    Well, in fact, these items should be on the Boards agenda whether or not a transformation is occurring.

    Dr Zivit Inbar, GAICD au.linkedin.com/in/zivit/

    When Does Change Management = Change the Management? So when does change management = change the management?

    Culture
    Shared vision
    Org. culture

    People
    Motivation Expertise Abilities

    Process
    Ownrship of strategy & transformation Corporate governance

    Trustworthiness

    My view is when you have lost the trust that: The top management (especially the CEO) has the motivation, abilities and expertise to transform the organisation and is trustworthy. This goes beyond announcements about cooperation with the Board, into making the actual changes according to the new strategy. Changes take time (often 18 months), but you can follow-up and measure the process and see the trends after 6 months. The leadership team shares the same values of the Board and is building the right organisational culture. There are ways to measure this and learn about the culture, even though Board members are not often on the floor. The corporate governance processes are followed and the top management is taking ownership on the strategic and transformation directions, as set by the Board.

    INTEGRITY for me is another keyword; and when integrity and honesty are an issue, the faster you act the less drawn and messy the process can become.

    Big thanks to the Board members who provided me with insights and good advice.
    3 Dr Zivit Inbar, GAICD au.linkedin.com/in/zivit/

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