The Change Management Handbook

THE CHANGE MANAGEMENT HANDBOOK:
A Road Map to Corporation Transformation

The future success and even survival of thousands of companies depends on how well they anticipate and respond to both unexpected and foreseeable change. The Change Management Handbook is a road map that lays out the actions to help you execute change while adapting your organizational goals. This practical, action-oriented guide for change agents and managers shows how to develop the type of flexible and nimble organization that achieves long-term success. It lists specific actions to be taken by senior business managers, the people they assign to implement change policies on the line, and the professional advisors they enlist to assist and monitor the change process. You'll also find:

  • Ways to use change processes for competitive advantage.
  • Methods to maintain continuous alignment of strategy, operations, culture, and rewards.
  • Ways to identify the change agents and managers in your organization.
  • More than 30 contributions by a who's who of change management, all written in a very specific, how-to format.
  • Real-world examples from actual corporations that expose both potential opportunities and pitfalls.
  • How to maintain productivity and quality during times of rapid change and even chaos.
  • An actual change map that leads through all the steps necessary to make successful changes.

The Change Management Handbook is uniquely designed as a desktop resource that defines the goals and explains the methods and processes required to manage change. For the first time, this book assembles and integrates all the pieces required to create effective, flexible organizations.

Section I:

The Change Management Process

Chapter 1

CHANGE MANAGEMENT
Lance A. Berger: CEO, LBA Consulting Group

  • What Is Change Management?
  • The Business Situation and Alignment to Market
  • The Market Situation

Chapter 2

THE HISTORY OF BUSINESS CHANGE
Alfred D. Chandler, Jr., Ph.D.: Straus Prof. of Business Emeritus, Harvard University

  • Competitive, Technological, and Financial Background
  • Corporate Restructuring in the Chemical, Food, and Machinery Industries

Chapter 3

MANAGING STRATEGIC ALIGNMENT
Michael Beer, Ph.D.: Prof. of Business Admin., Harvard Univerisity

  • The Demands of the Competitive Environment
  • The Fallacy of Programmatic Change
  • A New Role for the CEO: Enable a Process of Strategic Alignment at the Unit Level
  • Strategic Alignment
  • How to Manage Strategic Change without Crisis
  • Taking Three Steps Forward and Two Steps Back
  • Strategic Change Requires Leadership
  • Institutionalization of Strategic Change and Renewal
  • Conclusion

Chapter 4

DRIVING SYSTEMIC CHANGE
Michael Useem, Ph.D.: Prof. of Sociology and Management, University of Pennsylvania

  • Making Systemic Change
  • Driving Systemic Change
  • Directing Systemic Change
  • Conclusion

Section II:

Market Change Triggers

Chapter 5

MARKET DYNAMICS: WHO'S ON TOP
James W. Gouthro and James R. Sholder:, Baker, Rakich, Shipley & Politzer, Inc.

  • Cases in Changing Industry Structures
  • Finding Profitable Niches in the Structure
  • Tools for Senior Management

Chapter 6

PLAYING OFF THE POWER BASE: THE IMPORTANCE OF MARKET POSITIONING AND ORGANIZATIONAL DELIVERY
Michael R. Cooper, Brian S. Morgan, Randall G. Edmond, Judith R. Greener, and Jerrold R. Bratkovich: Opinion Research Corporation

  • The Positioning Process
  • Organizational Delivery
  • Summary: Effective Positioning and the Benefits of Alignment

Chapter 7

PIKE DRIVERS OF CHANGE
Martin J. Sikora: Editor of Mergers & Acquisitions, IDD Enterprises

Chapter 8

MEASURING CHANGE & CHANGING MEASURES
Frederick F. Reichheld: VP, Bain & Company, Inc.

  • Creating Value
  • Measurement Models and Change Management
  • Missing the Point
  • Who Measure Up?
  • Defining and Measuring Customer Retention
  • Defining and Measuring Employee Retention
  • Summary

Section III:
Part A

The Gears of Change
Strategy

Chapter 9

GAME PLAN FOR THE NEXT DYNAMIC
Anthony C. Rich and Kenneth E. Mifflin: Andersen Consulting

  • Effective Strategies
  • What's Wrong with the Old Model?
  • The Enduring Fundamentals
  • The Process
  • The Practitioners
  • Conclusion

Chapter 10

THE STRATEGIC CONNECTION: MISSION, STRATEGY AND VALUES
Robin W.T. Buchanan and Andrew Campbell: Bain & Company, Inc.

  • Purpose
  • Strategy
  • Standards
  • Behavior
  • Values
  • Leadership
  • Conclusion

Chapter 11

STRUCTURING THE CHANGE INITIATIVE
Robert Davidow: Andersen Consulting

  • Developing the Change Strategy
  • Structuring the Change Organization
  • Building the Change Process
  • Creating the Technology to Control the Process

Chapter 12

MERGERS AND RESTRUCTURINGS: ACES IN THE HOLE
Martin J. Sikora: Editor of Mergers & Acquisitions, IDD Enterprises

  • Strategy
  • Operations
  • Culture
  • Compensation

Chapter 13

MIDCOURSE CORRECTIONS
Anthony C. Rich and Kenneth E. Mifflin: Andersen Consulting

  • Cultural Imperatives
  • Planning for Change
  • Strategic Monitors
  • Implementing Action-Oriented Systems and Practices
  • Commitment and Capability
  • The Three Levers for Change
  • Conclusion

Part B

Operations

Chapter 14

A BAD STRUCTURE CAN BE FATAL
Daniel M. Duncan: President, Management Structures & Systems, Inc.

  • The New Model: Decision Processes
  • Change Triggers
  • Payoff
  • References

Chapter 15

INTRODUCTION TO SUPPLY CHAIN MANAGEMENT
Martin J. Sikora: Editor of Mergers & Acquisitions, IDD Enterprises

Chapter 16

INTEGRATED LOGISTICS AND SUPPLY CHAIN MANAGEMENT
William C. Copacino: Managing Partner, Andersen Consulting

  • Integrated Logistics Management
  • Integrated Supply Chain Management
  • The Opportunity
  • The Benefits
  • The Pathway to Integrated Logistics
  • Summary

Chapter 17

ONLY THE BEST: HOW QUALITY SYSTEMS GOVERN CHANGE
Donald L. Weintraub: Sr. VP, ODI

  • Continual Change
  • Marketing Change
  • TQM: An Attractive Candidate for Change
  • Success Stories
  • Conclusion

Chapter 18

ALIGNING OPERATIONS WITH CHANGE STRATEGIES: THE OPERATIONS BLUEPRINT
Thomas G. Gunn: President, Gunn Associates, Inc.

  • Creating the Linkage to Functional Strategy
  • Step 1: Establishing the Planning Frame of Reference
  • Step 2: Planning
  • Step 3: Obtaining Understanding and Commitment
  • Step 4: Pulling the Performance Improvement Program Together
  • Step 5: Understanding the Hierarchy of Business Needs
  • Step 6: Rationalizing the Operations Improvement Plan
  • Step 7: Making Planning Linkages Explicit
  • Step 8: Getting People Behind the Operations Improvement Program

Chapter 19

INFORMATION TECHNOLOGIES TO MANAGE THE NEXT DYNAMIC
Donald J. Kabat: Partner, Andersen Consulting

  • What to Think about in Aligning Technology Systems
  • Lessons from the Past!
  • Change Readiness (the Potential for Anticipating, Responding to, and Sustaining Change)
  • Leadership
  • Integrated Technology Change Process
  • Communication
  • What Your Technology Change Process Entails
  • Technology Assimilation
  • Technology Alignment: A Continuous Process
  • Role of Technology in Facilitating Work Force Performance
  • When to Reegnineer the Technology Function

Chapter 20

THE CHANGE-RESPONSIVE OFFICE
Robert P. Breading and Germaine Hall: H2L2 Architecture Design

  • Facilitating Change in the Information Age
  • Building Systems in the Information Age
  • Requirements for the Change-Oriented Office
  • Future Direction
  • Management Culture and the Changing Office
  • What Can the Executive Do to Achieve the Optimal Office?

Part C

Culture

Chapter 21

THE NEXT GENERATION OF FIRE WALKERS
Daryl R. Conner: President, ODR

  • The Speed of Change
  • Future Shock is Here
  • Saturated Sponges
  • Resilience is the Key
  • Two Orientations to Change
  • The Five Basic Characteristics of Resilience

Chapter 22

THE RIGHT STUFF FOR THE NEXT DYNAMIC
Lyle M. Spencer, Jr., Ph.D: President, McBer & Company

  • Introduction
  • Definition of a Competency
  • Organizational Change = People Changes
  • Competencies Important in the Future
  • Identifying Competencies Needed to Support Specific Organizational Changes
  • Assessing Competencies for Change
  • A Competency-Based Human Resource Systems Approach to Change
  • Summary

Chapter 23

CRITICAL ELEMENTS OF ORGANIZATIONAL CULTURE CHANGE
W. Warner Burke, Ph.D.: President, W. Burke Associates, Inc.

  • The Burke-Litwin Model of Organizational Performance and Change
  • Using the Model: Data Gathering and Analysis
  • Change at British Airways
  • Conclusion

Chapter 24

CULTURAL CHANGE AND CORPORATE STRATEGY
Robert L. Laud: Associate Partner, Andersen Consulting

  • Introduction
  • Culture and Adaptation Strategy
  • Winning Organizations and the Culture-Effectiveness Linkage
  • The Missing Strategic Element in the Product Life Cycle: Corporate Culture
  • Change Strategies and the Change Effort Curve
  • Organization Diagnosis and Cultural Change
  • Conclusion

Chapter 25

MAKING CULTURE CHANGE HAPPEN
Craig E. Schneier: President, Craig E. Schneier Associates and Richard w. Beatty, Ph.D: Prof., Institute of Management and Labor Relations, Rutgers University

  • The Change Imperative
  • Structure Change Alone Fails
  • Change in Vision, Values, and Strategy Alone Fails
  • Implementing Successful Change: Structures, Systems, and Skills
  • Western Company: Systems, Structure, and Skills Lag Change Efforts
  • Southern Company: Systems, Structure, and Skills Lead Culture Change Efforts
  • A Culture Change Model
  • Critical Success Factors
  • Culture Change and Structure Change
  • Culture Change and People Systems Change
  • Culture Change and Skills Change
  • Culture Change: What We Know Works
  • Conclusion

Chapter 26

THE PEOPLE FACTOR
Terry L. Bowman: President, Global Concepts, Inc.

  • Think Horizontally - Not Vertically
  • Alignment of What Should Be and What Is!
  • A New Approach
  • Finding the Best of the Best

Chapter 27

THE KEY TO CORPORATE SURVIVAL: CHANGE BEGINS AND ENDS WITH PEOPLE
Marti Smye and Robert Cooke: People Tech Consulting, Inc.

  • How to Implement Change Successfully at the Organizational Level
  • The Importance of Groups to Successful Change Implementation
  • The Key to Successful Change: The Individual
  • Conclusion

Chapter 28

HUMAN RESOURCE PLANING AND CHANGE
Dave Ulrich, Ph.D: School of Business, University of Michigan

  • Rationale for Human Resource Planning
  • Framework for HRP
  • HTR Choices to Accomplish Change
  • Application of the HRP Framework to Business Change
  • HRP: Conclusions for a Synthesis

Chapter 29

THE ETHICS OF CHANGE
Keith T. Darcy: President, The Leadership Group, Inc.

Part D

Compensation

Chapter 30

ALIGNING BUSINESS AND PAY STRATEGY
Lance A. Berger: CEO, LBA Consulting Group

  • Out of the Scientific Realm
  • Linking Process to Strategy
  • Business Planning
  • Organization Planning
  • Culture/Human Resource Planning

Chapter 31

REWARDS FOR EXECUTING CHANGE
Robert P. McNutt: E.I. duPont de Nemours & Company and Bruce I. Spiegel: William M. Mercer, Inc.

  • Introduction
  • Phase 1: Background Review
  • Phase 2: Subjective Assessment
  • Phase 3: Measurement
  • Phase 4: Realignment
  • Conclusion
  • Background Review
  • Measurement
  • Realignment

Chapter 32

COMPENSATION AS A CHANGE STIMULUS
Edward J. Giblin, Ph.D: Consultant

  • Corporate Entitlements
  • Compensation Systems for Reinforcing Organizational Change
  • Lessons to Be Learned
  • Key Concepts
  • Synopsis of Programs
  • These Programs Aren't Mutually Exclusive

Chapter 33

A NIMBLE COMPENSATION SYSTEM FOR MANAGING CHANGE
Martin G. Wolf, Ph.D.: President, MAS Management Advisory Services

  • Background
  • PAR - P(erformance) A(ssignment Level) R(esume Value)
  • Implementing PAR
  • In Conclusion

Chapter 34

USING EXECUTIVE COMPENSATION TO PROMOTE CHANGE
Johannes M. Pennings, Ph. D.: Prof. of Management, Wharton School, University of Pennsylvania

  • Compensation and Change
  • Conceptual Issues in Executive Compensation
  • Measurement of Performance and Change
  • Strategic Change as Impetus for Executive Compensation
  • Pay, Change, and Discretion to Change
  • Compensation Norms in Industries and Executive Labor Markets
  • Executive Pay and Strategic Change
  • Agency Theory
  • Discussion
  • Organizational Life Cycles
  • International Differences
  • Conclusion

Section IV:

The Change Managers

  • Lance A. Berger
  • Leonard Abramson, President of U.S. Healthcare
  • Jeffrey Boetticher, President and CEO of Black Box Corp.
  • Gary Fernandes, Senior Vice President of Electronic Data Systems
  • Paul Grunder, former President of CPC's Corn Products
  • James L. "Rocky" Johnson, Chairman Emeritus and retired CEO of GTE Corp.
  • Donald E. Meads, Chairman of Carver Associates and former Chairman/CEO of Certainteed Corp.
  • Joseph Neubauer, Chairman/CEO of ARA Services
  • Stanley W. Silverman, Executive Vice President and COO of PQ Corp.
  • Wayne Smith, former Group Vice President of the BOC Group and former head of AIRCO, its U.S. gases business