Leading Change From the inside out

1. CQAA October 30, 2012 Leading Change From the inside out

2. Presenters • Susan Slater Ph.D. • Industrial Psychologist with over 27 years of consulting experience in US, Europe and Asia – focusing on leadership development and change management • Previous presenter and key note at Quest Conferences • Recent focus on change initiatives at American Airlines and American Eagle • Stephen Mooney • Leader of AE divesture team • Human resource expert with experience in facilitation, curriculum design, HR Policy and virtual learning • Currently serve as managing director of Flight service with FAA responsibility for 1700 crewmembers

3. Overview • Why Manage Change? • Change Events vs. Personal Transition. • Why is Change So Difficult? • Internal leadership structures needed for successful change

4. American Eagle Airlines HDQ – Fort Worth, Texas 12,000 employees 8.5 million revenue passenger miles 1500 Daily flights with over 170 destinations Largest number of departures at ORD A/C types – EMB135, 140, 145; CRJ; ATR72

5. Why Is It Necessary to ‘Manage’ Change? • Minimize disruptions to productivity. • Linking the change to improving stakeholders’ performance and identity as professionals. • Quickly move people to ‘future state’ to avoid prolonged attachment to current processes. • Ensure communication consistency across impacted areas. • Reset expectations of what people should do/not do during the change and after the change. • Assisting with employee transition and new employee acquisition and on boarding.

6. Change Event vs. Personal Transition Event:Change to system, job, process, etc.We naturally focus on this as the priority. Future State Change Event Current State Personal Transition Transition:How we react & adjust to the change.We tend to forget the ‘people’ impacts.

7. Why do people resist change? …It’s hardwired…..

8. Adaptability Levels Most people’s adaptability is low to moderate… Only about one in five people have a High adaptability Taken from a nationwide sample of 450 companies, 400 leaders, and 1,000 change initiatives Most people have a Low to Moderate ability to change

9. The Brain and Mental Maps • The human brain has 100 billion neurons. • Each may have 100,000 dendrites. • = 300 trillion constantly changing connections Once we have learned to read, we can do so simply byglancing over the first coupleof letters or the“shape” of theword—the brainfills in the rest. Arocdnicg to rsceaceh at CmbairgdeUinervrtisy, it denos’tmtater in wahtoredr the ltteers in a wrod are, the msotiprmoatnttihng is taht the frist and lsatltteer are in the rghitpcale. The rset can be a toatlmses and you can sitllraed it wouthitpbeolrm. Tihs is buseacetehbarindeos not raederveylteter by istlef, byttlewrod as a wlohe. When we startlearning to drivethe road appearsvery complex. As we acquire the “maps” ofwhat is importantto look for, it appears simpler • We develop mental maps to handle the information Adapted from: Rock, David Your Brain at Work, HarperBusiness 2009

10. Building New Mental Maps When we are faced with change, it is significantly easier to create new mental maps than to change the old ones. If you pay enough attention to these connections—they become mental maps and the processing becomes easier and “instinctive”. This is accelerated by positive reinforcement. Adapted from: Rock, David Your Brain at Work, HarperBusiness 2009

11. Overall Guiding Principle MinimizeDanger Bad = Avoid MaximizeReward Good = Approach Adapted from: Rock, David Your Brain at Work, HarperBusiness 2009

12. Overall Guiding Principle When danger is perceived, the brain automatically shifts resources from the prefrontal cortex and the limbic system takes over Even small stressors can become large stressors really quickly and can feel unmanageable. The away response is stronger, faster and more long lasting Adapted from: Rock, David Your Brain at Work, HarperBusiness 2009 Positive emotions increase dopamine levels. This allows people to actually create more solutions to complex problems. Fear inhibits this.

13. The SCARF Model Used as a guideline to keep people in a positive and open state Status. . . . . . . . . Feeling better than another person Certainty. . . . . . Feeling sure about the near future Autonomy. . . . . Perception of having choices Relatedness . . . A sense of belonging Fairness . . . . . . . Consistent and evenhanded application of policy Source: Rock, David Your Brain at Work, HarperBusiness 2009

14. Organizational Transition Process

15. Why Change Efforts Fail Executing Sustaining Implementation Phases Planning Engaging People often think of change management as a linear process

16. Executing Sustaining Implementation Phases Planning Engaging The Gap ? Why Change Efforts Fail The highest organizational need occurs at the lowest emotional point Denial Anger Acceptance Emotional Phases Resistance

17. Executing Sustaining Implementation Phases Planning Engaging Why Change Efforts Fail To negotiate each phase, you must win over a certain portion of the population Early Adopters (16%) Early Majority (34%) Late Majority >50% Buy-in Phases

18. Early Adopter Profile • Doers/Innovators – take on complex challenges • Adjust easily to ambiguity and change • Rebound readily from minor annoyances, the unexpected, and true adversity • Seen as credible with peers – strong commitment integrity • Able to draw on a seemingly endless supply of personal energy • Likes to develop and construct new initiatives • Likes to be out front – paving the way for others to follow • Acts with confidence, determination and courage • Produces results

19. Thoughts, Insights and Questions

20. Change Leadership Core Team and Task Forces Operational Leadership Support Resource Planning Super UsersTask Force Change Leadership Core Team Senior LeadersInvolvement Communication Strategy Training

21. Change Leadership Core Team Change Leadership Core Team • Key Responsibilities • Group of cross-functional leaders or key stakeholders who represent the key functions that will be experiencing the change. • Delegated authority to shape the outcomes and the change process. • Course correcting change efforts when they deviate from plan. • Facilitates the process of defining, planning and course correcting the change strategy and change process. • Responsible for clarifying the scope, outcomes, pace, conditions for success, constraints, and infrastructure. • Oversee communication and information generation.

22. A New Approach Operational Approach Change Strategy Approach Question Question Real-time Answer Individual Thought and Reflection Team Dialogue Collaborative Solution

23. Change Leadership Core Team: Key Tasks Change Leadership Core Team • Build team commitment and rapport: • Assess individual leadership styles and how they can help or hinder the team’s functioning. • Define success for the team and individuals. • Review time commitment needed. • Identify the critical challenges that the team will face. • Set expectations for participation of team members.

24. Change Leadership Core Team: Key Tasks Change Leadership Core Team • Create the Change Vision for the team to implement. Determine measurements of success. • Define what the Change Leadership Core Team will define as success and how to measure it before, during and after cutover. • Determine the most effective strategy for reward and reinforcement for the key stakeholders. • Recognize the small achievements to encourage continued practice and experimentation with the system.

25. Change Leadership Core Team: Key Tasks Change Leadership Core Team • Clarification of team members roles and responsibilities which includes: • Key Deliverables. • Decisions they will make individually and as a team. • Resources needed to support their deliverables. • Areas of greatest challenge. • Methodology: team members create their individual roles and responsibilities as well what they perceive others team member’s role and responsibilities are to minimize overlap and avoid unnecessary conflict. • Develop ground rules for how the CLCT will operate as a team: • Code of Conduct for the team. • Partnership Agreements: • Shared expectations for the partnership. • Determine how to build and sustain trust. • Shared concerns.

26. Change Leadership Core Team: Key Tasks Change Leadership Core Team • Establish overall timeline and place key change strategy components: • Training Stakeholder Strategies: • Side by side review of the tool. • Feature open houses. • Communication strategies: • What to communicate, to whom and when. • Analysis of concurrent changes effecting stakeholders and mitigation of change overload and stress. • Mapped on the overall project timeline. • Reviewed on an ongoing basis.

27. Change Leadership Core Team: Key Tasks Change Leadership Core Team • Stakeholder Analysis • Determination of key stakeholders: • Assess impact of change on stakeholders. • Determine influence strategy to minimize resistance and build commitment. • Establish feedback channels and course correction process: • Lessons learned process. • Develop a communication strategy for each stakeholder group. • Integrate stakeholder strategy into overall timeline.

28. Change Leadership Core Team: Key Tasks Change Leadership Core Team • Create the task force structure to support the vision, timelines and project goals. • For each task force team: • Determine project membership and leader. • Finalize Key tasks and goals. • Determine CLCT sponsor for the team. • Map their deliverables on the timeline. • Determine measures of success.

29. Thoughts, Insights and Questions