SYNDICATE 6 - ASSIGNMENT 1: STORY-BOARD.

CHOSEN TOPIC: DEALING WITH RESISTANCE TO CHANGE.
PRESENTERS: Executive Manager, Mr Siphiwe Moyo (SM) HR Manager, Colette Atkinson (CA), Line Manager Ms Masabata Dibeco (MD),
Union Representative, Mr Thulani Mthiyane (TM)

Opening Scene: Colette Atkinson
Welcome to Syndicate 6’s EDP assignment. We have successfully collaborated with our combined intelligence and decided that the topic we would demonstrate today, is “Dealing with resistance to change”.
The scenario that we are sketching is that of two arch-rival businesses who have competed head to head for 37 years in a highly competitive service industry, are now merging. The acquisition was held up at the Competition Board for several weeks but the decision has just been finalized and the reality of combining two alienated work-forces now becomes a reality and with that, resistance to the enormity of the change.
We hope you enjoy the video.

Scene 1:
SM welcomes SD, MB and TM into the boardroom and sets the scene:
Team, I have called you to this session today as we have just received word that the Competition Board has finally approved the merger and as a result, we felt it critical to discuss this matter internally, before you and your staff read about in the press. I wanted to have an open and transparent discussion with you to ensure our alignment. I also understand that the decision was taken at a group level, at that many of our people on the ground may struggle with the business rationale that supports the merge with our biggest competitor. Of course, this places a huge responsibility on our shoulders, as Leaders and Managers of this business to ensure that we deal with the resistance we will encounter, within your teams, members and the work-force as a whole, by ensuring we are proactive and speaking with one voice and are on the same page.

MD (Line Manager of Marketing) comments:

.“Oh bother! I was hoping that the Competition Board would have put a stop to the rumours!!! Now I have to face those people on a daily basis! Just last month they undercut our quotation just to be spiteful, to win over one of our largest existing client that we could rely on for at least R10 million worth of turnover per annum, despite the tough economic conditions. Do you know how difficult it is to replace that client?? I do not know how I am going to motivate our sales staff now, previously they were “hell bent” on being highly satisfied by just winning the bid over these people…”.
SM responds:
Masabata, I know this is difficult for all of us, and I can see this is going to be quite a challenge for you….
I do understand your concerns which are very real and the importance of keeping our sales team motivated is critical. I attended a workshop recently and we spent some time covering “ change in organisations as well as resistance to change and I would like to share something that was covered in the programme if I may? (Powerpoint slide 1 – Kotter and Schlesinger 2008, Cooke 2013, Rickrsmith 2013 - which SM explains). So you can see that there are various ways to over-come the anticipated resistance so let’s explore them for our organisation based on the theory provided. The actions I suggest we focus on are:
Education and Communication: So let us decide on how we educate and communicate across all departments in the business to ensure that everyone understands the rationale and that they feel involved every step of the way. We must also make the business aware of the many benefits that we will derive out of the merger including access to new markets, knowledge sharing and skills acquisition.
Participation: Here we need to scan our environment and identify our positive and negative resistors so that we can respond appropriately to them. What do you think are the difference between the two?
MD responds:
I would think that the one reacts positively to the change and the other one negatively.
SM responds:
Exactly – very important to understand this in the process.
MD continues:
I agree with your suggestions and education and communication will be the key as well as a comprehensive understanding of our environment.
Also, we can involve our positive resistors such as Samantha, Israel, Thireshni and Neo in the process which may improve the overall resistance as they are individuals with influence within the organization – okay I get it. Makes sense but what about those that are negative despite our efforts? They may negatively influence others in the organization which is surely what we need to try and avoid?
SM responds:
Indeed. We use our discretion but obviously our intent is to try and win them over. This is where our leadership skills are really going to be put to the test. This high-lights another important action on our part, and I refer you to another slide in understanding the resistance reactions (resistance reaction slide). This will help us understand the behavior that we will have to manage in the workplace. Scene 2: TM poses a question:
I must go to my membership with this MERGER story how do you think they are going to re-act, already the grapevine is calling this BIG business getting BIGGER and FAT cats getting FATTER…. And what about prospective job losses??? With the other merger that is all over the press at the moment, resulting in massive job losses, this is going to make our jobs more difficult!!!!
CA responds:
Let me put your mind at rest Thulani, we negotiated an agreement with the board on behalf of our workers and the Chairman has confirmed that it has been accepted which will mean no job losses for a minimum of two years and more importantly, we see the Union and your members as one of a few key stakeholders in the process and, as a result we understand the importance of keeping you informed every step of the way in this process.
TM responds:
I am glad that you do not see us as a threat, but you know the other company is a RIVAL union viz. DIWUSA (the destructive workers union of South Africa from Pretoria). This is another challenge for the combined workforce, and as you know the majority union can make the minority union pay an AGENCY fee, that will be very demoralizing!!!!
Could we please arrange a meeting with both unions as soon as possible so we can get alignment between both of us for this process not to be undermined. Do you agree?
CA responds:
Understood and agreed. I will set it up as soon as possible.

Scene 3:
SM responds:
In summary I think, short term, we need all Line Managers to take joint responsibility and ownership in this process by agreeing a collaborative project plan. Let us look at the big picture – we have just bought some of the biggest clients in our market, which makes us one of the largest players in our market. That brings with it opportunities for promotion and shared wealth in the organization. Our job is to get people excited about the possibilities.

CA responds:
I am reminded of a book I read by James Canton, “The Extreme Future” asks a key question of business leaders and I want us to understand the importance of this so I have purchased the book for all of you. You will see when you read the book that he asks the question are we future ready? He also lists the 5 factors that we need to consider in asking ourselves this which includes speed, complexity, risk, change, surprise.
I recommend that we focus on the “change” element as the reason we are experiencing this is to make us “future-ready” as an organization.

SM responds:
Great suggestion do you guys agree

TM, SM and MD:
We all agree. (ALL)

SM closes:
Great – then let us turn this into the biggest opportunity that this organization has experienced in the last 20 years. Let us see this as an opportunity to create the right platform for on-going change as one thing we know for sure, the rate of change is fast and we need to keep ahead of the pace to WIN! Now- let us get down to business and create our project plan and communication strategy. Everyone in?

Final Scene: TM, SM and MG:
We are in!!! (ALL)
MD adds a final comment.
We really think this can work and thank you for the great ideas. These are great tools to assist us through this time of transition. Closing Scene:
We hope you enjoyed the video and would like to high-light the concepts that we focussed on in the video. I refer you to the attached powerpoint which high-lights the key concepts we worked through. These included:
The recommended ways to deal with resistance
Understanding resistance reactions
Identifying positive and negative resistors
Stakeholder matrix for dealing with change
Collective intelligence
Planning for the future

We believe that collectively these are key concepts that can be used successfully to manage change successfully in organisations to minimize staff losses, market share loss, as well as ultimately minimise any negative impact on the bottom line.