Manageris

Academic=20 viewpoints
The=20 emotional side of change=20 management

In their own=20 words
Filip=20 Kegels

Jean-Marc=20 Lagoutte =

Find out=20 more
Change=85=20 with moderation
Chinese thought and = corporate=20 strategy

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Jean-Marc = Lagoutte=20

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My restructuring = experience=20 and convictions=20

People's concerns are = legitimate: fears=20 must be recognized and considerable energy = devoted=20 to reassuring people through = dialogue

People initially tend to adopt a = "wait and=20 see" attitude. However, they actively = drive the=20 initiative when they are engaged in = upstream=20 development efforts

Success depends largely on = attention to=20 details in adapting the initiative to the = specific=20 characteristics of the situation-beware of = dogmatism!

Concrete results speak the = loudest:=20 rapidly demonstrating results is the best = way to=20 create continuing momentum for the=20 initiative

In their own words

Jean-Marc Lagoutte - LE Edition 3=20
Chief = Information=20 Officer - Groupe Danone

As Chief = Information=20 Officer, Jean-Marc Lagoutte is in charge of = information=20 systems throughout Groupe Danone, including large = global=20 systems and local applications, as well as the human = and=20 financial resources needed to keep these systems = running. This=20 structure was created in 2004, when the IT resources = that had=20 been previously managed independently by each business = unit=20 were placed under the responsibility of a global = "Information=20 Systems" function. With 700 Danone employees and the = same=20 number of people from service providers, this new = organization=20 manages =80200 million in operating expenses and =8040 = million in=20 investments.

Would you = describe the=20 main restructuring principles that you applied in = France to=20 your activity?
We conducted a huge = change=20 program that took effect on January 8, 2007. This = concerned IT=20 technicians working for six business units, i.e. = Danone Eaux=20 France, Danone France, Lu France, Danone Research, = Danone=20 Place and Th=E9mis. The objective was to consolidate = resources=20 and pool whatever we could - resources, knowledge,=20 technologies - as well as to completely overhaul our = work=20 practices by developing processes common to all = business=20 units, e.g. order to cash, forecast to stock, etc. = Concretely=20 speaking, each business unit used to have its own HR = or=20 finance application manager, with all related = limitations in=20 terms of coordination and cost management. Now we have = specialized teams in each of these areas within a = single=20 global function covering all of the business units=20 concerned.

Did you have = trouble=20 getting people to accept the changes required by this = major=20 restructuring program?
I doubt = whether=20 change is ever easy to accept! And the changes we are = talking=20 about here were huge, both in terms of the number of = people=20 involved and the scope of the transformation. The = employment=20 contracts of 200 Danone employees were modified, = because of=20 changes in reporting lines or in their place of work, = even if=20 no one was obliged to move far away. The teams were = completely=20 reorganized. And in the Danone culture, which has=20 traditionally been organized around business lines, = this type=20 of global process organization is quite new to=20 people.

How did you = manage to=20 convince people that this restructuring was=20 necessary?
Before we began, we had to = make a=20 huge effort to explain the project, starting with the = business=20 unit heads, then with concerned staff. We had to show = how this=20 new organization was going to help us improve the = quality of=20 our work while reducing costs. We had to be = particularly=20 careful about the interface between the new = organization and=20 the business units. Each business unit continues to = have a=20 dedicated IT point person in the new organization, = familiar=20 with the local situation and specific issues. In the = weeks=20 leading up to the switch, we devoted a lot of time and = effort=20 to explaining the concrete changes that would occur on = an=20 individual level and to reassure people as much as = possible.=20 The effort we took to explain and adapt to the rest of = the=20 organization is, in my view, absolutely essential in = any=20 large-scale change program, and was definitely = helpful. When=20 people joined their new teams on January 8, I did not = notice=20 any tension or wariness. The new organization started = right up=20 and everything seems to be humming along.

What were the key factors that explain = why this=20 transformation went so successfully?
The = key=20 point was undoubtedly the support of my direct = reports. This=20 wasn't immediately in the bag, to the extent that they = had to=20 go through this transition personally as well. My=20 participation in the Leading Edge program played an = important=20 role in this domain. When I attended Eddie Obeng's=20 presentation, I realized two things. One, that = corporations=20 like Novartis had already developed organizations like = the one=20 I had in mind. Two, that someone from outside the = company with=20 know-how, energy and optimism like Eddie could be a = very=20 useful catalyst to jump-start the momentum I needed. = So I=20 asked him to facilitate a few workshops with my team, = during=20 which we started to sketch out the future organization = and see=20 how it would work. The impact was spectacular. Up to = that=20 point, the members of my team had been in a "wait and = see"=20 mode, some with serious doubts in their minds, but = they=20 suddenly found themselves plunged into the heart of = things.=20 They were able to contribute concretely to developing = the=20 project, proposing solutions, investing themselves=85 = This=20 passage into action really changed things. Their = attitude=20 toward the project changed-they made it their own. = When he=20 speaks, Eddie emphasizes that the idea of change = always=20 provokes an emotional reaction, physiologically = speaking. This=20 set of workshops was what helped my team make the = emotional=20 transition. Eddie's talent deserves a lot of credit = for this,=20 and it's a remarkable example of an epiphany in favor = of=20 change being triggered by an external = facilitator.=20

In = retrospect, what do=20 you take away from this restructuring=20 experience?
I would say that pragmatism = and=20 focus on concrete results are critical. On paper, it = is very=20 easy to conduct any kind of restructuring you want. = But in=20 practice, the "devil is in the details," so you have = to pay a=20 lot of attention to them! In France, for example, = labor laws=20 prohibit sharing a restructuring project with = employees until=20 the Works Council has issued an official opinion. = Concretely,=20 this meant that we had to say nothing for several = months while=20 rumors were running wild. From a change management = point of=20 view, this is a major constraint that needs to be = integrated=20 very early on. In restructuring initiatives that we = are=20 conducting in other countries, such as the U.S., = Northern=20 Europe, etc., there are other types of constraints: = geographic=20 distance from the concerned units, language barriers, = etc. In=20 each case, you have to pay a lot of attention to these = specifics and ensure that the project is tailored = accordingly.=20 In my opinion, the more you try to base a large-scale = change=20 program on general ideological principles, e.g. "We = have to=20 decentralize (or centralize) the organization,"=20 "Cross-functional structures are the best (or the = worst),"=20 etc., without taking a serious look at the specific = situation=20 you're dealing with, the lower your chances of = success.
One=20 last point, which may seem pretty obvious but which is = actually quite fundamental, is that the success of a = change=20 initiative ultimately depends on your ability to = produce an=20 organization that performs better than it did before. = In the=20 program we conducted in France, it was when people = realized=20 that the new organization was actually going to help = them do=20 their work better that they let go of their doubts and = began=20 to firmly support it. A change program maximizes its = chances=20 for success by producing results. The more concrete = these=20 results are and the quicker they materialize, the = greater the=20 chances for success.

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