70% of change initiatives fail due to issues like lack of buy-in, skills, or a champion for the change. Successfully implementing change requires addressing both technical issues and "people issues." There are four main approaches to change management - Clarion Call, Burning Platform, Concerted Action, and Long March - which differ based on priorities like speed, conformity, and commitment. Key steps for successful change include designating a strong leader, creating shared understanding of why change is needed, developing a clear vision, gaining commitment from others, and institutionalizing changes through modified systems and ongoing progress monitoring. Culture change in particular requires focusing on vision, diagnosis, sponsorship, integration, demand creation, support, quick wins, communication, measurement

1. Business Transformation Cultural
Challenges
Change Management
Akhil Munjal

2. Organizational Change Success
How can we improve chances of a successful change implementation
2
* Business Process Management Journal, Bradford 2001
** The Social Economy, McKinsey & Company, 2012
70% of all Change Initiatives fail to get
implemented *
A recent survey of senior executives in 14
industries confirmed that the benefits of a
major change initiative had been
substantially delayed and/or negated due
to:
• Lack of buy-in that change is necessary 64%
• Lack of adequate skills or experience 44%
• No senior management champion 44%
• Turf battles 44%
• Lack of congruent reward system 36%
• Inability or unwillingness to downsize 31%
A study of financial services firms get as
little as 20% of the promised payoff after
having completed 80% of the work. The
remaining 80% of the benefits comes from
dealing with people issues
Phase I Phase II
Envision
the Future
Assess
Current
Situation
Develop
Change
Plan
Implementation
Develop
Options
Implement
• Create a parallel organization (move into the house before it’s
complete)
• Make use of focus groups/ workshops to engage employees
• Extensive piloting activity
• Rotate new participants into project team
• Develop and report quantitative and qualitative results
• Develop a culture of change-readiness through adoption of
Organizational Learning methodologies

3. Culture Change
Sponsorship
• Identify decision makers,
opinion leaders and other
stakeholders
• Engage them by defining the
distinct part they each play in
making the change happen
(i.e., terms of reference)
• Facilitate alignment among
decision makers to create
consistent sponsorship “voice”
• Support their sponsorship
(e.g., communications rollout)
• Establish linkages and
networks with all the
stakeholders
Initiating
Sponsors
Sustaining
Sponsors
Discipline and Building Sponsorship Sponsorship Alignment is Key

4. Organizational Change
Choice of the correct approach is crucial for success
4
The answers to these questions guide the process of change management
Clarion Call
Mobilize commitment
from the top down
Burning Platform
Mobilize compliance
from the top down
Concerted Action
Mobilize commitment by
delegating responsibility
Long March
Drive for long-term
value change
Speed
How important is speed to
accomplishing the objectives
of the change effort?
Conformance
How closely must we
conform to a specific process
or outcome to achieve our
goals?
Commitment
Which is more important to
achieving our goals:
compliance or commitment?
Approach to
Change
Management
Conformance
Commitment
Speed
High High High Clarion Call
High High Low Burning Platform
High Low High Concerted Action
Low High High Long March
Choice of Four Types of Approach Attributes of Each Approach

5. Change Management
Campaign Strategy is determined by the Change Management Approach
• Unequivocal message
about current situation
and dire implications of
inaction
• Need for strong direction
to survive
• Centralized vision
• Detailed advance
planning with small
trusted cadre
• Disciplined roll-out
• “Big bang” opening
• Experience of pain
• Unambiguous direction
• Common threat
• Set clear quantitative
targets and reward
performance
• Anticipate resistance
• Give “field promotions” to
opinion leaders
• Establish clear milestones,
benchmarks
• Be prepared to penalize
those who deviate
• Prepare recovery plans
• Report positive results
• Attractive, inspirational
vision
• Common values
• Opportunities for
greatness
• Evolving strategic story
• Disciplined
experimentation
• Centralized visioning
• Sub-unit responsibility
• Emphasis on incremental
change
• “Rising tide” opening
• “Rolling wave” as time
goes on
• Simple, robust themes
• Selectively recruit to the
center of influence
• Honor as a key virtue
• Emphasize benefits for
future generations
• Establish broad outlines of
future state and then
intermediate measures of
progress
• Report positive and negative
results to sustain
commitment
• Unequivocal message
about current situation
and dire implications of
inaction
• Stress inspirational
message
• Strategic story
• Detailed advance
planning with key power
brokers and thought
leaders
• Minimum critical
specification
• Outcome orientation
• “Big bang” opening
followed by rolling wave
• Strong emphasis on
customizing the message
to sub-units
• Frequent reminder
messages
• Set combination of
quantitative and
quantitative targets and
reward performance
• Give resources to subunits
to reward performance
• Establish clear milestones,
benchmarks
• Be prepared to penalize
those who deviate
• Regular surveys
• Report positive results
quickly
• Unequivocal message
about current situation
and dire implications of
inaction
• Need for collaboration to
survive
• Centralized visioning
• Clear sub-unit
goals/processes
• Selective decentralization
• “Big bang” opening
• Experience of pain
• Strong emphasis on
customizing the message
to sub-units
• Target opinion leaders and
reward them for duty
above and beyond the call
• Rapid set-up of focus
groups to mobilize
commitment
• Establish clear milestones,
benchmarks
• Prepare recovery plans
• Focus groups establish local
performance measures
• Report positive results
ClarionCallBurningPlatformConcertedActionLongMarch
Content Coordination Communication Commitment Continuous Improvement
Clarion Call
Burning Platform
Concerted Action
Long March
Content
Campaign
Strategy
for
Change

6. Change Management
Change Checklist
1. Leading change (who is responsible) Do we have a leader …
• Who owns and champions the change?
• Who demonstrates public commitment to making it happen?
• Who will garner resources to sustain it?
• Who will invest personal time and attention to following it through?
2. Creating a shared need (why do it) Do employees …
• See the reason for change?
• Understand why the change is important?
• See how it will help them and/or the business in the short and the long term?
3. Shaping a vision (what will it look like when we are done?) Do employees …
• See the outcomes of the change in behavioral terms (I.e., what they will do differently as a result
of the change)?
• Get excited about these outcomes?
• Understand how the change will benefit customers and other stakeholders?
4. Mobilizing commitment (who else needs to be involved) Do the sponsors of the change…
• Recognize who else needs to be committed to the change for it to happen?
• Know how to build a coalition of support for the change?
• Have the ability to enlist the support of key individuals in the organization?
• Have the ability to build a responsibility matrix to make the change happen?
5. Building enabling systems (how will it be institutionalized) Do the sponsors of the change…
• Understand how to sustain change through modifying people systems?
• Recognize the technology investment required to implement the change?
• Have access to financial resources to sustain the change?
6. Monitoring and demonstrating progress Do the sponsors of the change…
• Have a means of measuring the success of the change?
• Plan to benchmark progress on both the results of the change and the implementation process?
7. Making it last (how will it be initiated and sustained?) Do the sponsors of the change…
• Recognize the first steps needed to get started?
• Have a short and long term plan to keep attention focused on the change?
• Have a plan for adapting the change over time to shifting circumstances?

7. Change Management
Change is not easy….
Problems Solutions
Source: Leading Change, Harvard Business School Press, 1996.

8. Culture Change
Ten tips for Culture Change
 focus on the vision
 diagnosis is key
 obtain and nurture sponsorship
 culture change is not an isolated program
 create demand for culture change
 support the employees
 incorporate quick wins
 encourage open communications
 make culture change measurable
 be persistent