Change the Way You Change!: 5 Roles of Leaders Who Accelerate Business Performance

ADVANCE PRAISE FOR

CHANGE THE WAY YOU CHANGE!

"Leaders, take notice . . . In leadership, what worked yesterday won’t work today. Change the Way You Change! outlines a fresh, inside-out approach for getting better results in the twenty-first century."

—Doug Conant, founder and CEO of ConantLeadership and former CEO of Campbell Soup Company

"In my ten years of working with Tony and Kendall at two companies, I’ve found them to be highly insightful organization effectiveness consultants who can quickly diagnose a suboptimal situation and provide very practical guidance and tools that can help executives and teams dramatically improve their performance. They are keen students of human behavior and executive leadership and have amassed an encyclopedic knowledge of how modern theories of management and frameworks for organization development can be applied to the real issues that impede teamwork and results. Based on their cumulative learnings from engagements with hundreds of executives in many different industries, Change the Way You Change! is an invaluable resource for anyone seeking to secure the next level of success in change for themselves, as executives, their team, and their company."

—Chip Perry, CEO of TrueCar Incorporated and former CEO of AutoTrader.com

The first challenge in any change effort is getting our leadership team fully committed to the future vision, and too often we find ourselves getting the results that we are perfectly designed to get." Kendall and Tony have gone beyond the ADKAR model with a practical framework and real-world examples that get to the heart of change management. From chartering and alignment to keeping score and building accountability, Change The Way You Change provides exactly what is required to confidently transform your business for the better."

—Douglas R. Guthrie, senior vice president of Comcast

"With everything going on in the world today, this extraordinary book, Change the Way You Change!, comes to us at a perfect time. Tony and Kendall have written a masterpiece that is both deeply thought-provoking and practical. If you want to accelerate your inner game and are passionate about becoming a more effective leader, then buckle up . . . you are in for a real treat!"

—Tom Mitchell PhD, coauthor of The Winning Spirit (with NFL Hall of Famer, Joe Montana)

"In reading Change The Way You Change!, I kept finding myself saying: ‘With this information, we can immediately enhance our own model of change!’ For years now, I’ve wanted to create an ultra-high-end level of service for families needing to change. Believe it or not, this book maps out the principles for doing just that. Obviously sharing their best stuff, this blueprint isn’t only impressive, it’s entertaining. There is no way some less capable and experienced change experts could distill this kind of information in a way that the reader can apply it to bring about organizational change. True experts and years and years of experience are required. I’ll be quoting from this book for years to come."

—Tim Thayne, PhD, founder and CEO Homeward Bound, and author of Not by Chance: How Parents Boost Their Teen’s Success In and After Treatment

This book is a fit traveling companion for those embarking on organizational change. It shows you not only where the quicksand is but also where and how to accelerate the process. All of my experience confirms Kendall and Tony’s premise that successful change leaders must focus on three units of performance—the individual, the team, and the organization. Change leadership must and always will be tactical and strategic, gritty and conceptual, directive and collaborative, and realistic and idealistic. Leading change is the supreme test of the leader, and this book is the distilled wisdom of two masters of the craft.

—Timothy R. Clark, CEO, LeaderFactor, author of Epic Change: How to Lead Change in the Global Age

"Change the Way You Change is a tour de force. The five leader activities (focus, align, engage, lead, and sustain) capture the change landscape. The tools and tips turn the ideas into actions for anyone who deals with change (who is everyone in today’s world). Bravo!"

—Dave Ulrich, Rensis Likert, professor at Ross School of Business, University of Michigan; partner, the RBL Group

"Kendall and Tony have written an insightful how-to book for anyone seriously considering initiating real change within their organization. While there are no silver bullets for implementing transformational change, Change the Way You Change! provides the reader with plenty of ammunition to help him or her as they lead their organization in the change battle. Kendall and Tony have brought together, in one place, the key insights and truths they have learned from years of experience helping leaders implement meaningful and effective change."

—Major General Craig Bambrough, United States Army (retired)

Kendall and Tony’s outstanding book crystalizes the reality that the leader is the catalyst for change and the engine for success. The insights provided in their book can help leaders become productive agents for changing the culture, the performance, and the fundamental nature of an organization. It’s a must read for anyone charged with the responsibility of leading an organization in today’s dynamic environment.

—John Aplin, managing director at CID Capital

"As seasoned vets in the field of change, Kendall and Tony have an unparalleled ability to logically translate the essentials of transformation. Every quote, story, example, and concept in Change the Way You Change! will resonate in a way that will enable you to reflect, review, and expand your change capabilities in the moments that matter. If you’re truly interested in transformation, take the time to internalize, adapt, and apply. This book has masterfully articulated the stuff that actually works!"

—Lisa Strogal, former manager of culture, change, and talent at Cenovus Energy

"As president and founder of the Woman’s Presidents Association, we have deep leadership conversations with literally hundreds of our highly successful woman-owned businesses around the world. Change in business is a ticket to admission in today’s fast-paced economy and especially for small to medium-size businesses. In their book, Change the Way You Change!, Lyman and Daloisio have captured the essence of highly effective leadership of change in business. The style and substance of this book are spot on for my members, and I will highly recommend it to them to read, study, and apply to accelerate change and achieve the goals in their business."

—Marsha Firestone, president and founder of Woman’s Presidents Association

This book hits the nail on the head. Leading effective change demands that you make very wise choices due to limited resources, strong competition, and a dynamic marketplace. Tony and Kendall have put their career experience, hard earned life lessons, and spirited personalities into your hands with this book.

—Matthew J. Claus, principal, Claus Advisory Group, LLC

"In Change the Way You Change!, Kendall and Tony provide an arsenal of tools to successfully lead change. As important, they transform the reader’s apprehension about the prospect of change to an enthusiasm to drive it."

—Mike Sherman, president and CEO, Endocyte, Incorporated

The challenge in a book on transformation is to get the balance right between conceptual framing and practical tools for application. Kendall and Tony got it right. The five roles of effective leaders are spot on to what it takes to make things happen.

—Norm Smallwood, cofounder of the RBL Group

"Change the Way You Change! captures the essence of the experienced practitioner . . . a field guide to the challenges, concepts, and realities of being a leader of significant change. Across all industries, sectors, and geographies, the lessons provided by Tony and Kendall capture what it really takes to lead change."

—Richard Maltsbarger, chief development officer and president, international of Lowe’s Companies, Incorporated

"Is there a fast track to change? Yes—when you lead inside out and outside in. The challenge is that you have to do more than talk about change; you must become it. Tony and Kendall are authorities on this approach because they do more than explain the inside-out work—they live it."

—Mette Norgaard, coauthor of TouchPoints and author of The Ugly Duckling Goes to Work

"Change the Way You Change! is an incredible handbook that helps leaders navigate and accelerate change in these turbulent times. It provides in-depth insight into leading change rather than managing change to truly accelerate the transformation. Reading this book will enable one to better lead a change process. It is a must read for change leaders at all levels."

—Patricia W. Longshore, vice president, strategic leadership solutions, Duke Corporate Education

"Change the Way You Change! is a leadership book that is neither too academic for practitioners nor too shallow for academic audiences. It is just right for anyone who is curious about accelerating change leadership. It provides an approach to change leadership efforts and builds a strong case for the necessity of simultaneously working at the individual, team, and organizational levels to successfully navigate the speed and complexity of change. The systems level approach presents five roles that are not just old wine in new bottles."

—Terry C. Blum, professor and director, Institute for Leadership and Entrepreneurship, Scheller College of Business, Georgia Tech

"Leaders in companies, nonprofits, and governments all understand the urgent need to change the way their organizations operate to remain competitive and in some cases to survive. Change The Way You Change! is a practical guide to help leaders clearly identify, kick-start, and then sustain change campaigns within their organizations. With clear, straightforward writing peppered with real-world examples, the book offers step-by-step planning tools, checklists for implementation, and warning signs that a derailment may be approaching. Daloisio and Lyman, whose life work has focused on the successful implementation of change management strategies across a broad range of industries, clearly understand the pain that results for leaders who can’t get their organizations to change or change fast enough. In this book, they unselfishly reveal their most successful strategies and tactics for faster, more effective change initiatives. As a lawyer representing highgrowth companies, entrepreneurs and nonprofits for more than two decades, I can’t think of a single leader, myself included, who wouldn’t benefit from reading Change the Way You Change! "

—Mary Donne Peters, author, speaker, and cofounder Gorby Peters Law

Contemplating organizational change is perhaps one of the most daunting tasks for any organizational leader. While the company’s performance indicators may scream for change, a walk through the graveyard of failed change efforts causes all but the most courageous to hide and hope for the best. In their very accessible and practical book, Kendall Lyman and Tony Daloisio provide strategies, stories, and thought-provoking questions, so that leaders can take heart and master the process of change. The core message is that mastering change is a holistic and simultaneous inside-out and outside-in process, which ensures harmonization of vision and elegance of execution. Lyman and Daloisio also remind leaders that organizational change cannot happen unless they change as well. Because the authors are true experts in this work, their proposed steps for action are tried and tested. Their examples demonstrate that the approach can work for both microenterprises as well as huge conglomerates while also providing a roadmap for personal growth and organizational transformation. A good read!

—Catharyn Baird, founder and CEO of EthicsGame

Tony and Kendall have provided an essential roadmap for anyone who wants to lead or influence change in their organization. Read this and get started!

—Alan Fine, founder and president of InsideOut Development

"Change the Way You Change! is a great book for managers who want to improve their organization’s results. It’s full of practical ideas and useful tools that Kendall and Tony bring to life with countless stories from their personal experiences in the trenches with their clients. It also has crisp summaries at the end of each chapter and the end of the book that make it easy to remember the key points and go back to find a topic you’re looking for. If you want to know the right questions to ask in order to make your next change initiative successful, this is a must read!"

—John Beck, Principle Charter Oak Consulting Group and author of The Leaders Window

A great read full of practical tips and profound wisdom for understanding and driving the complexity of organizational change. Lyman and Daloisio have crafted a comprehensive guide for navigating the treacherous seas of change so essential to organizational viability in the twenty-first century. Their advice comes from decades of experience partnering with leaders of some of the most prestigious companies in the world. If you are responsible for leading change or want to distinguish yourself as a change agent who can ‘make it stick,’ you should buy and use this book.

—Neil Yeager, coauthor of The Leader’s Window, the best-selling Power Interviews, and The Seventh Prism

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher and author are not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

Published by Greenleaf Book Group Press

Austin, Texas

www.gbgpress.com

Copyright ©2017 R. Kendall Lyman and Tony C. Daloisio

All rights reserved.

Thank you for purchasing an authorized edition of this book and for complying with copyright law. No part of this book may be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the copyright holder.

Distributed by Greenleaf Book Group

For ordering information or special discounts for bulk purchases, please contact Greenleaf Book Group at PO Box 91869, Austin, TX 78709, 512.891.6100.

Design and composition by Greenleaf Book Group and Kim Lance

Cover design by Greenleaf Book Group and Kim Lance

Cover image ©Spantomoda/Thinkstock.com

Cataloging-in-Publication data is available.

Print ISBN: 978-1-62634-417-4

eBook ISBN: 978-1-62634-418-1

Part of the Tree Neutral® program, which off sets the number of trees consumed in the production and printing of this book by taking proactive steps, such as planting trees in direct proportion to the number of trees used: www.treeneutral.com

Printed in the United States of America on acid-free paper

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First Edition

To our clients who have given us their trust and the opportunity to create and refine these ideas and practices.

CONTENTS

Foreword

Introduction

1: Change the Way You Change!

2: Accelerating Focus

3: Accelerating Alignment

4: Accelerating Engagement

5: Accelerating Leadership

6: Ensuring Sustainability

Conclusion—Accelerating Your Leadership of Change

Appendix 1: The Complexity and Speed of Change

Appendix 2: Client Example of Project Phases

Acknowledgments

Notes

About the Authors

Index

FOREWORD

Heraclitus, the Greek philosopher-general, famously stated that the only constant is change. I believe he was only partially right. I prefer the more comprehensive perspective my late father, Dr. Stephen R. Covey, used to teach that there are indeed three constants: 1) change, 2) principles, and 3) choice.

In today’s global marketplace, change is accelerating as a constant. Political systems, consumer preferences, shifting demographics, global market conditions, and new and disruptive technologies are upending established organizations and time-tested approaches. For leaders, it can be overwhelming.

As a CEO, I experienced this firsthand at Covey Leadership Center, the company founded by my father. When I became president and CEO in 1994, we had a company that had been well-led but was undermanaged. Clients loved us, we had great content and solutions, and were growing rapidly (perhaps too rapidly). While we had a great value proposition for our clients, we hadn’t yet figured out a sustainable business model for ourselves. We had had 11 straight years of negative cash flow, had very low operating margins, had a lot of debt, had no outside capital, and had high growth. Do the math on that—we were going to run out of cash! We had nearly gone bankrupt twice, had suppliers who were ready to quit on us, and our debt to equity ratio (as measured by our bank in the form of Total Liabilities to Tangible Net Worth) was 223:1! It wasn’t due to malfeasance or bad intent—we just hadn’t yet figured out a sustainable business model and a major contributor for our challenges was the lack of accurate accounting. In short, however, it was untenable.

Within three years, we righted the company by choosing to follow enduring principles in the face of all the changes that were happening to us and that we needed to make for us to continue our mission of taking enduring principles to the world. During that period, the company’s sales nearly doubled and profit went up over 1,200 percent. The company expanded into 40 different countries and we increased shareholder value from $2.4 million to $160 million in a merger we orchestrated with then Franklin Quest to form a new company called FranklinCovey. This turnaround tale isn’t about me; instead, it creates the context and highlights several choices based upon principles we deeply validated through this process.

First, surround yourself with great leaders and trust them to deliver results. Increasing the collective capacity of leaders is a critical investment for meaningful change. Second, make the creation of trust with your stakeholders an explicit objective—indeed, an organizational imperative. Without trust, organizations and leaders experience a tax or burden on everything they do—everything takes you longer to do and costs you more; by contrast, with trust, barriers come down and performance improves—everything happens faster and at far less cost. And third, to create change, leaders must help employees transition and align the organization to facilitate those transitions. Each of these approaches by themselves is necessary—but they are individually insufficient for lasting success.

This is why I’m excited about this terrific book Change the Way You Change! Tony and Kendall have succinctly captured many lessons I have learned as a leader of change, and it mirrors my experience helping clients build trust in themselves, in their various stakeholder relationships, and in their organizations.

The great historian Arnold Toynbee studied the rise and fall of civilizations over time. When asked to describe his life’s work, he simply said: "I can do it in four words: Nothing fails like success." This is a lesson that is first learned and later earned. We learned this lesson first from clients. It wasn’t that we failed with clients, but over and over again in workshops and engagements around the world they told us that personal improvement stagnates when it bumps up against an ineffective team climate and misaligned organizational processes and systems. So we brought in Tony Daloisio, who was simply indispensable to helping us develop a consulting practice at Covey Leadership Center that leveraged our work with individuals in the classroom to the work that needed to be done with leaders in the boardroom.

After learning from clients, we really earned our understanding of Toynbee’s insights through the merger between Franklin Quest and the Covey Leadership Center. What we thought would be an easy marriage of