Monday, June 01, 2009

#ASTD09 A Simple Approach to Driving Change

Presentation: A Simple Approach to Driving Change
Presenter: Susan Scott, Fierce
- Jackie Bayer, E&Y
- Ellen Dubois du Bellay, Four Seasons
- Erikjan Lantik, Food Lion
- Dr. Thom Terwilliger, FDIC

This one is designed as a panel discussion. Always looking for Change Management ideas. (My bosses pegged me for attending the session with Kapow! in the title. Ha! Fooled them.....)


Kaliedescopes - when one piece drops, the whole picture changes. Always looking for the "one thing". What is the "one thing" that will compel action?

Using Mining model she developed.
- Step 1 Identify the issue
- Step 2 Clarify the issue
- Step 3 Determine current impact
- Step 4 Determine future implications
- Step 5 Examine personal contribution to the issue
- Step 6 Describe the ideal outcome
- Step 7 Commit to action

Erikjan Lantik, Food Lion
- The one change: Overnight, we would TRUST those 3300 store managers and equip them to do the best possible job.

- Food Lion went through very rapid expansion. In the rapid expansion, had to be very top-down 70s - 90s.

- Issue in early 90s with meat (1992). Not handled well. Made culture MORE top-down.

- Started to realize that they needed to build trust outside headquarters. All decisions cannot be FROM headquarters. The Store Manager owns the store.
+ How are we developing the store manager?
+ How do they KNOW what the best thing to do is?

- Top-down model produced results. Leaders develop strong associates. But still a lot of cultural fear. Sales ultimately, not about the HR component but the business components.

- "Permission" - "We should give our store managers permission to sell and lead."

- Higher associate satisfaction lead to higher customer satisfaction.

- He wants to be able to walk into a store and know things are "right". You can also tell when an environment in the store is changing. The Store Manager is most likely the person who is leading that change.

- If nothing changed, people begin stepping away from what needed (because too afraid to do something).
+ Begin seeing high turnover
+ No one talking to customers
+ Results in customer not showing up - too much choice and customers go elsewhere.

- Primary role of leader - to develop associates. If the leader not having the conversations they need to have, then goes up. If no one is having that conversation, no one develops.

- We had very top-down driven CEO until 8-9 years ago. Since not expanding so much, don't need command/control. Now CEO from HR. More flexible. More focus on conversations.
+ Current conversation about "letting go"

- Looked at vision for 10 years out - Ultimately about connecting with people. Associates and customers. Beginning to roll out connection sessions.

(this is all a bit vague, I'm afraid.... I'm guessing the target is to turn Food Lion into a more customer-friendly, customer-service store.)


Susan Scott - careers and lives succeed or fail 1 conversation at a time. The conversation is the relationship. Sometimes, 1 conversation will impact the entire trajectory of the relationship.

(Boy, ain't that the truth.....)

Business is an extended conversation.

Ellen Dubois du Bellay - Four Seasons

- One piece: The Skill Around Coaching. Give Middle and Senior managers skills to be better coaches.

- Operate best hotels in best locations around world. Very strong culture. Avg. tenure at sr levels, 20 years.

- Low turnover good, but can also be achilles heel. They've been successful.

- Golden rule - treat others the way you want to be treated. Spend LOTS of time hiring. Looking for "nice" people. Not necessarily technically skilled.
+ Often don't have the conversations need.

- Clarify the issue - what is it that we are missing? Esp among lower ranks. Help them feel engaged.

- Main message from the lower ranks - want more decision-making. They deal with customers Directly. Want to be listened to. Want better coaching.

- What they are struggling with now - not quite sure how to move forward.

Susan Scott - coaching now no longer seen as remedial, but also as a positive growth tool.

- Challenge - how to provide it. Outside, etc


Ellen Dubois du Bellay - Four Seasons

- Started to see lack of initiative around what guests want.
- Customers getting a "policy-driven" experience. Less flexible.
- Need to go back to "guests first"
- Want to get away from the robotic behaviors that are starting to develop

- Susan: sometimes wonder if the CEO knows what the actual customer experience is.

- Implications if nothing changes: lose market share. Competitors - not just Ritz etc. Boutiques can do more customization. Need to keep up with the boutique experience. Very afraid. Because results in not getting the pick of the best people. Other danger - don't attract entrepreneurial types, just people who like following directions.

- Personal contribution. Didn't start talking about stuff sooner. Financial crisis has been the real trigger. Wasn't worried because things working OK before.

- Jim Collins - as soon as your organization thinks "It's Arrived", you are on the downward slope.

- Four Seasons - looking for people who rate themselves 9 on customer service, because the person shows they are looking to further improve.

- 40 hours of learning per manager per year. Trying to plant seeds for next 12 months, take every single one of those 5,000 managers - give them confidence to have good conversations with their employees.

- Have thought about it with the lower levels as well. Starting with the managers.

- Have mentor/mentee. Also have circuit training between managers and employees.

- How bad until it is considered a "real emergency?" Now! Occupancy down 10-12%. And people are not going to go back to status quo.

Susan Scott - conversation training can start anywhere.
- Helps if it is a pre-existing group
- Goal to connect at a deep level.
- Human connectivity - only sustainable competitive edge


Dr. Thom Terwilliger, FDIC

- FDIC across entire country (and I live nearby!)
- Organization will grow between 30 - 35%

- 2007 culture initiative.
+ One of most trusted in US
+ Erosion of trust internally between line and executives
- Culture shift
+ Leadership
+ Communications
+ Empowering employees

- Action - used Cotter model for Organization Change
+ Communications and conversations across agency
+ Often, many neglect SR. leadership. They started with them.

- Barrier to culture initiative - baggage within an organization.
+ Complaints about internal
+ Anecdotal complaints. Did survey.
+ If didn't do anything about that - (like any organization), the mission is going to crumble. FDIC - can't allow that to happen. Also concerned that the attitude would start appearing externally.

- Been with organization for 2 years. He wandered around and talked to people.
+ And most especially with the angry people.

- Conversation - what do you want your leader to do and TO NOT DO.

- One of the key things, great to talk, but you need to act. What tools have you given me to be a better leader?

- Conversations begining to change from "what we don't have" to "how can we fix this" and presenting options.
This is a HUGE shift.

- 16 stretch goals associated with initiatives (with money incentives et al).

- Doing regular surveys to see whether this stuff is actually working.

- Now having to remind people that this is an ongoing process.

- The learning role in this whole thing:
+ 5 subgroups. A Corporate University employs a member of every single group
+ Just in time, partners with external professors and companies, field programs, video series to start the conversation,

- Reality - nothing like a crisis. Financial crisis really helped them.
+ Chairman clear in saying that shifting culture is as important as taking care of the banks and others.

- Most important piece to excel at mission for next 25 years. Do so by increasing communication, building trust, empowering employees.

- This agency mostly works behind the scenes when things going well. Very important.
+ Take FDIC badge. When you are out there - entire corporation is behind you.
+ We are all in this together.
+ Your stakeholders are the American People.

- Cotter model of change
+ He did training - including in field.
+ Model used as a ROADMAP, not an actual verbatim checklist.
+ Doing that helped him see things from an agency perspective better than if he just focused on his team.
+ The model seemed pretty common sense to the rank and file. Able to communicate path more effectively.


Jackie Bayer, Ernst and Young

- One issue: Too many "versations". Not conversations. People talking to or at someone, not with.

- 2 sides to business: Work with clients, Developing our people

- Conversations with client. Conversations between each other.

- Results of having "versations" - we are very successful, had good progression. But what made us successful - leaders keep pulse on clients and people. But internal people not feeling developed and supported. Beginning to hear whisper that E&Y people are not listening - clients feel like they are being sold to.

- Tough to make the shift - people paid to be experts. Don't want to send message that they are not expected to be experts anymore, but want them to start listening and more back and forth.

- Current environment (with outside + new employees), demand to be treated as individuals.

- Any silver lining, there is more hunger for connection. You are not in this alone.

- Getting an opportunity to do some of the work wanted to do. The crisis encourages people to do something different.

- If don't act - fail to adapt. Not attract best and brightest to organization. Not attract the clients.

- Panicked - 3 years away from retirement. Has pension. Want them to continue to exist.

- Personal contribution: Don't just point at the leadership. Worst thing she did, fail to challenge assumptions that have been in organization in a long time.
+ We never have a conversation without a slide deck. or Talking Point.
+ Now asking more "how do you FEEL". More heart than head.
+ Assumption - accountants not good at relationships. Not true
+ Assumption - coaching needed to be separate event. Crazy. Looking at different framework.
-- 70/20/10 - 70% SHOULD be on-the-job. Requires conversations.
-- 20% developing internal infrastructure for coaching
-- 10% formal training, setting up conversations about the training. Focus on developing questions with real depth

- Ideal outcome - real differeniated experience for the client AND for the employees. It FEELS DIFFERENT to work for (and with) Ernst and Young.

- Leaders are role modeling what have happen.
+ Chair had Town Hall. Everyone has a BS card - everyone could raise if feel talking "BS." And people did raise the card! And no one was punished!

- Process where working with teams - team acceleration. A dialup where people can talk about what matters most and individual actions.


What gets talked about and how it gets talked about will impact what happens in a conversation.

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