MBA 5237: CHANGE MANAGEMENT

LECTURE 4 Timing, Leverage and Strategy

 Readings: Beer, M., & Nohria, N. (2011). Cracking the code

AGENDA of change. In HBR's 10 must reads on change management

(pp. 137–154). Harvard Business Review Press.

▪Theory E vs. Theory O

▪Elevating Your Presentation Skills
▪In-class assignment

▪Review instructions for “Quiz Yourself – Do You Lead with Emotional

Intelligence?"
▪Review final project: Simulation Slides and Presentation Instructions + Rubrics
 70% OF ALL CHANGE INITIATIVES FAIL

▪Why?

▪Most change initiatives fail because:

▪ Lose focus → ANALYSIS PARALYSIS – mesmerized by all the advice/information available
▪ Goal(s) are not clear → Get rich quick? Make a difference? Something in between?
 “THEORY E” VS. “THEORY O”

▪Theory E → change based on economic value

▪ “hard” approach to change
▪ Shareholder returns is the main measure of success
▪ Change involves economic incentives, drastic layoffs, downsizing, restructuring
▪ Ex: North America businesses are more likely to adopt E strategies to change

▪Theory O → change based on organizational capability

▪ “human” approach to change
▪ Changeinvolves building trust and emotional commitment to the company through
teamwork and communication
▪ Ex: Asian and European businesses are more likely to adopt E strategies to change
“THEORY E” VS.
“THEORY O”

▪Bothare valid models, but

each theory also has
pros/cons.
▪Simultaneous use of E and O
strategies will lead to
sustainable competitive
advantage.
 WHAT’S THE GOAL OF THE CHANGE?

Theory E Example: Theory O Example:

▪Goal: A tech startup preparing for IPO ▪Goal: A corporation expanding its
to “get rich quick” social impact to “make a difference:

▪Actions: ▪Actions:
▪ Reorganize departments to ▪Engage employees in decision-
boost efficiency making
▪ Cut underperforming divisions ▪Focus on leadership development
▪ Hire high-profile executives ▪Align hiring with company values
▪ Use stock options to drive ▪Promote a learning culture with
performance continuous feedback

Most successful change efforts blend both approaches—

leveraging financial discipline (E) while nurturing culture and commitment (O).
 From Good to Great:
Elevating Your Presentation Skills
WARM UP: STORY OF YOUR NAME

▪Share how you got your name and/or the meaning of your name.
▪You have up to 1 minute to present.
▪It can be your first/last/middle/full name, or nickname.
▪You can write notes to help you, but you cannot read it as a script.

▪Take out our cell phones and ask the person beside you to record you as you are
presenting. Only you will have this recording.

Big group share out:

▪What was this experience like for you?
▪Did you feel nervous, excited, or anything else? Why?
 WARM UP:
STORY OF YOUR NAME (REVIEW)

1. Round 1: Vocal image review.

▪ Play your recording without watching (e.g., phone face down, listening on
headphones or speaker).
▪ Note your tone, volume, pitch, and any vocal habits (e.g., pace, clarity, or energy).

2. Round 2: Visual image review.

▪ Play your recording on mute and watch yourself.
▪ Observe your non-verbal cues, facial expressions, eye contact, hand gestures, and
posture.

3. Round 3: Transcribe the video.

▪ Transcribe word-for-word, including pauses, mistakes, and filler words (e.g., “um,”
“ah”)
 WARM UP:
STORY OF YOUR NAME (REVIEW)

▪ Any “ah-ha moments”?

▪ What are 3 things you could have done differently?
ELEVATING YOUR PRESENTATION SKILLS

There are many (MANY) aspects of any kind of delivery (e.g., presentation, pitch,
meeting, sales, etc.)

Today, we will focus on:

▪ Vocal Aspects
▪ Non-Verbal Communication
▪ Avoid Filler Words
Of the people in this room, who is great at
one of these vocal aspects?
Give an example.
Of the people in this room, who is great at
one of these non-verbal communication?
Give an example.
The Power Pose
▪According to Dr. Amy Cuddy, if you strike a
power pose for two minutes prior to engaging in
a stressful task, you’ll raise your confidence
level.
▪A power pose is a stance in which you are
open, your shoulders are back, and your chest
is high – you’re trying to occupy a large space.

The Science
▪After a power pose, your testosterone
(courage-producing hormone) level increases
and your cortisol (stress-producing hormone)
level decreases!
▪If you practice power posing, you’ll change
your hormone levels enough so that large
movements actually feel natural.
▪“Fake it until you become it!”
BREAK ☺
 IN-CLASS ASSIGNMENT #4
1. Select a Scenario
Your group is the change leadership team at a large company that is
merging with another organization.
➢Company A (yours) follows Theory O — values-driven, people-first
➢Company B follows Theory E — focused on rapid growth and profit

2. Design a Blended Strategy (example on p.140-141) Presentation Skills Checklist

Vocal Aspects
For the 6 dimensions of change, design one SMART “blended strategy”  Be Loud and Clear
 Practice Variation
you will implement. Explain how each action will help in the merger  Stress Powerful Words
process.  Effective Pauses
➢ SMART (Specific, Measurable, Achievable, Relevant, Time-bound)  Sound Enthusiastic and
Confident
Non-Verbal Communication
 Eye Contact
3. Present (3-4 min per group) 

Body Language
Facial Expressions
a) Brief overview of your scenario  Hand Gestures
 Proxemics
b) SMART blended strategies for each dimension of change Avoid Filler Words
c) Remember to include intro, conclusion and review presentation skills  Embrace the Pause
 Pre-Plan Transitions
checklist  Chunk Your Speech
 QUIZ YOURSELF –
DO YOU LEAD WITH EMOTIONAL INTELLIGENCE?

▪Due date: May 27

▪"Quiz Yourself – Do You Lead with Emotional Intelligence?" assessment (available
under Course Materials in Brightspace). You don’t need to submit your results yet —
we’ll review and discuss them together in our May 27 class. There are three short parts:

1. How Would You Describe Yourself? (Self-rating survey – pages 2–3)

2. Get a Different Perspective (Ask someone else to rate you and have a brief
conversation – page 4)
3. What to Do Now (Review strategies to strengthen your EI competencies – page
5)
Create your group:
1. Email me, cc all members
2. Share 1-2 paragraphs
describing the change
initiative.
 PLUS/DELTA

▪We are striving to become better, and we can only do that if we learn to give and
receive feedback.
▪We will conduct a form of feedback to know what was good and what we can improve
on.

▪PLUS: what worked well, something you appreciate

▪DELTA: what could be better and how we can change.
 DELIVERABLES

▪Check syllabus for next week’s reading

▪It is your responsibility to check your email and Brightspace regularly for updates,
announcements, assignments, etc.
▪Email me if you any questions or comments! [email protected]