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EXPERT OPINION

business, and find opportunities to
model and reward those behaviors.
This requires developing a baseline,
defining an explicit end-state or
desired culture, and devising detailed
plans to make the transition.
Company culture is an amalgam of
shared history, explicit values and
beliefs, and common attitudes and
behaviors. Change programs can
involve creating a culture (in new
companies or those built through
multiple acquisitions), combining
cultures (in mergers or acquisitions
of large companies), or reinforcing
cultures (in, say, long-established
consumer goods or manufacturing
companies). Understanding that all
companies have a cultural center
— the locus of thought, activity,
influence, or personal identification
— is often an effective way to jumpstart culture change.
A consumer goods company with a
suite of premium brands determined
that business realities demanded
a greater focus on profitability
and bottom-line accountability. In
addition to redesigning metrics and
incentives, it developed a plan to
systematically change the company’s
culture, beginning with marketing,
the company’s historical center. It
brought the marketing staff into the
process early to create enthusiasts
for the new philosophy who adapted
marketing campaigns, spending
plans, and incentive programs to
be more accountable. Seeing these
culture leaders grab onto the new
program, the rest of the company
quickly fell in line.

9. Prepare for the

unexpected. No change
program goes completely according
to plan. People react in unexpected
ways; areas of anticipated resistance

fall away; and the external
environment shifts. Effectively
managing change requires continual
reassessment of its impact and
the organization’s willingness and
ability to adopt the next wave of
transformation. Fed by real data
from the field and supported by
information and solid decisionmaking processes, change leaders
can then make the adjustments
necessary to maintain momentum
and drive results.
A leading U.S. health-care company
was facing competitive and financial
pressures from its inability to react
to changes in the marketplace. A
diagnosis revealed shortcomings
in its organizational structure and
governance, and the company
decided to implement a new
operating model. Amid detailed
design, a new CEO and leadership
team took over.

Team leaders should be as honest
and explicit as possible. People
will react to what they see and
hear around them, and need to be
involved in the change process. Highly
visible rewards, such as promotion,
recognition, and bonuses, should be
provided as dramatic reinfor cement
for embracing change. Sanction or
removal of people standing in the
way of change will reinforce the
institution’s commitment.
Most leaders contemplating change
know that people matter. It is all too
tempting, however, to dwell on the
plans and processes, which don’t talk
back and don’t respond emotionally,
rather than face up to the more
difficult and more critical human
issues. But mastering the 'soft' side
of change management needn’t be a
mystery.

Author Profiles:

The new team was initially skeptical,
but was ultimately convinced that
a solid case for change, grounded
in facts and supported by the
organization at large, existed. Some
adjustments were made to the speed
and sequence of implementation,
but the fundamentals of the
new operating model remained
unchanged.

10. Speak to the
individual. Change is both
an institutional journey and a very
personal one. People spend many
hours each week at work; many
think of their colleagues as a second
family. Individuals (or teams of
individuals) need to know how their
work will change, what is expected
of them during and after the change
program, how they will be measured,
and what success or failure will mean
for them and those around them.

* John Jones is a vice president with Booz
Allen Hamilton in New York. Mr. Jones is a
specialist in organization design, process
reengineering, and change management.
* DeAnne Aguirre is an advisor to executives
on organizational topics for Strategy&,
PwC's strategy consulting business, and
a principal with PwC US. Based in San
Francisco, she specializes in culture,
leadership, talent effectiveness, and
organizational change management.
* Matthew Calderone is a senior associate
with Booz Allen Hamilton in the New
York Office. He specializes in organization
transformation, people issues, and change
management.

Based on Strategy&
Reference: www.strategyand.pwc.com
supported by EUROBAK

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