| Most people and most organizations can only absorb | | | | needed. Legacy systems are continually bandaged, |
| one or two large change initiatives at one time. When | | | | rather than scrapped altogether. |
| managing a change process, focus on the one, two or | | | | The board of directors is unclear about its role, |
| three most important priorities. Leave the rest for later. | | | | causing discontent and turnover in the senior ranks of |
| The best way to identify priorities is to first do a light | | | | the organization. |
| analysis to see whether a particular initiative rises to | | | | An organization's structure has not evolved at the |
| the top. If the light analysis doesn't reveal which option | | | | same pace as the organization itself. Management |
| makes the most sense, do a deeper analysis. The | | | | roles aren't aligned with the actual processes that |
| planning group should ask: What are the hidden costs | | | | create value. |
| and benefits, both in the option we're considering, and in | | | | The company's top performers are being |
| the current system? Resist the temptation to do a | | | | "rewarded" with more work and responsibilities, while |
| superficial analysis in this stage. If someone says | | | | unproductive employees are not being held |
| something is true, don't take it at face value. Observe | | | | accountable. |
| it. The real costs and benefits need to be documented. | | | | It's often difficult to see these issues at first. Many of |
| It will be necessary when the forces of resistance | | | | the costs will be obfuscated by well-meaning people |
| mount a last ditch stand! | | | | who have only a partial view of the problem. Up until its |
| The following list shows some of the hidden costs that | | | | dying days, Arthur Andersen's managers vastly |
| organizations typically wrestle with: | | | | understated the impacts of the Enron fiasco. It's simply |
| Resources are dissipated across many products | | | | human nature to put a rosy face on an ugly duck. |
| and services, rather than focused on a single point of | | | | This is why the planning group needs to be composed |
| excellence. | | | | of individuals who bring both credibility and courage. |
| Functional silos create self-justifying priorities, with | | | | They need to look beyond symptoms to the underlying |
| the result that the organization doesn't respond to | | | | cause. They need to be willing to dive into a complex |
| change quickly and external opportunities are not | | | | situation and map it the best they can. The ongoing |
| capitalized on with enough speed. | | | | support and championship by the leaders in the |
| Internal performance measures are in conflict - | | | | organization is crucial. If the planning group encounters |
| resulting in people working at cross purposes. | | | | resistance, then the champion's authority needs to be |
| Internal gatekeepers are acting as chokeholds on | | | | invoked. |
| innovation. No one can say "yes," everyone can say | | | | What if the champions start to wilt at this moment? |
| "no" to a new idea. | | | | Then the planning group should either wait until new |
| A particular business process is not working well - | | | | champions appear - or disband. Championship from the |
| customers are unhappy, value is being lost in wasted | | | | top is essential if change is going to be real and |
| time, returns, loss of goodwill. But no one "owns" the | | | | meaningful. If the champions have vanished, there's no |
| process end to end, so change is difficult. | | | | point in proceeding. |
| Information systems are not delivering the value | | | | |