Managing Resistance
to Change
Lynn Pikholz (CapitalPlus Exchange) & Rick Rothermel (LaMarsh Global)
ANDE
The Aspen Network of Development Entrepreneurs (ANDE) is a global network of 235+
organizations that propel entrepreneurship in emerging markets. ANDE members
provide critical financial, educational, and business support services to small and
growing businesses (SGBs) based on the conviction that SGBs will create jobs,
stimulate long-term economic growth, and produce environmental and social
benefits. Ultimately, we believe that SGBs can help lift countries out of poverty. ANDE
is part of the Aspen Institute, an educational and policy studies organization.
2
Lynn Pikholz
CEO
CapPlus
Rick Rothermel
CEO
LaMarsh
Global
Change Done Poorly
A cautionary tale
A CASE STUDY
How are YOUR change management instincts?
1) The new Managing Director:
____ Told everyone they would not be fired
TRUE OR FALSE?
2) The new Managing Director:
____ Said there was room in the company
for all who rose to the new expectations
TRUE OR FALSE?
3) The new Managing Director:
____ Focused immediately on integrating
the two kitchens for the two levels of staff
TRUE OR FALSE?
4) The new Managing Director:
____ Kept every one of the senior
managers, including the MD at the bank
TRUE OR FALSE?
5) The new Managing Director:
____ Paid for all workers to come to work in
the first class cabin of the trains
TRUE OR FALSE?
6) The new Managing Director:
____ Gave everyone 200 shares of the new
company irrespective of productivity
TRUE OR FALSE?
7) Management agreed to the
powerful union’s requests:
____ Over 80% of the time
____ Between 60% and 80% of the time
____ Between 20% and 60% of the time
8) After 3 years, what % of upper
and middle management
remained with the bank?
10%
30%
50%
90%
Focus on Results
How does Change Management
add value?
R = Qs x A
Results = Quality of Solution x Its Acceptance
© 2015 LaMarsh Global
Success/Contribution
Why Use Managed ChangeTM?
Breakthrough
Vision
The Organization
Is Transformed
Breakthrough Point
Breakthrough Strategies
Inertia
The Organization
Is Marginalized
The Business of the Business
Time
© 2015 LaMarsh Global
Failure is
Possible
No Plan for
Implementation
Fuzzy
Definition of
Desired State
© 2015 LaMarsh Global
FAILURE
Ignoring
Potential for
Resistance
Managed ChangeTM as a Process
arsh Global
A CASE STUDY: WHAT
REALLY HAPPENED
1) The new Managing Director:
T
____ Told everyone they would not be fired
TRUE OR FALSE?
2) The new Managing Director:
T
____ Said there was room in the company
for all who rose to the new expectations
TRUE OR FALSE?
3) The new Managing Director:
T
____ Focused immediately on integrating
the two kitchens for the two levels of staff
TRUE OR FALSE?
4) The new Managing Director:
T
____ Kept every one of the senior
managers, including the MD at the bank
TRUE OR FALSE?
5) The new Managing Director:
T
____ Paid for all workers to come to work in
the first class cabin of the trains
TRUE OR FALSE?
6) The new Managing Director:
T
____ Gave everyone 200 shares of the new
company irrespective of productivity
TRUE OR FALSE?
7) Management agreed to the
powerful union’s requests:
x
____ Over 80% of the time
____ Between 60% and 80% of the time
____ Between 20% and 60% of the time
8) After 3 years, what % of upper
and middle management
remained with the bank?
90%
A Change Management
Mindset
When faced with change
or need to lead change, ask:
 Why is any change necessary?
 What is the change being proposed?
 Who is leading the change?
 Who is impacted by the change?
 How will they be impacted?
 What resistance to the change can we anticipate?
 What can we do to Proactively mitigate the resistance?
Q&A