Page 288 - Managing Change in Organizations

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Programmes of change

transparency and measurement as a means of progress-managing major change.
Line managers are responsible for the implementation of Program 15 cost reduc-
tions, all of which are integrated within their objectives and form part of their per-
formance evaluation.
The underlying principles of this change effort were as follows:
■ Reduce communication costs and simplify decision-making.
■ Support corporate-wide task force working.
■ Support for the Lufthansa Service Initiative via service-focused workshops.
Perhaps more important is the ‘change architecture’ implemented around the various
change projects. Performance management was used explicitly to drive change forward.
Feedback systems – customer surveys, employee commitment surveys, 360° feedback
tools and customer and employee short surveys (‘pulsetakers’) – were used to get feed-
back around the group. Programmes such as Explorer 21 and Climb 99 initiatives, run
within the Lufthansa Business School, became an explicit part of the culture change
process. Involving 210 and 160 managers/young professionals, respectively, these pro-
grammes represent both investment in learning and development and in culture
change. The vital word is integration, or leverage. Such activities became seen as ‘trans-
formation platforms’ for change providing the prospect of achieving a critical mass of
change. Starting from self-assessment using customized leadership tools, the pro-
grammes are a means of learning by ‘contributing to the future of the business’. By the
year 2000 many thousands of Lufthansa employees had been involved in one or more
activities related to strategic changes.
Source: Bruch and Sattelberger (2001)

Let us turn to the Lufthansa case study. Here again we see an elaborate process
early on which seeks to engage key players but also define credible vision and
clarify accountability, governance and change process. In summary the ‘Samurai
of Change’, the ‘Mental Change’ conference and the subsequent projects, task
forces and so on are clearly overseen by the CEO and main board. Restructuring
to accountable business units is also a prime example.

Connectivity is very high. The initial changes are communicated via 200
‘town meetings’. Since 1994 some 24,000 employees have been involved in at
least one change event. Feedback is sought via 360° feedback, employee surveys
and customer surveys. The Program 15 task force focuses on improvement tar-
gets which in turn are fully integrated with the established performance man-
agement system.
But other initiatives are also tightly integrated. Thus the Lufthansa School of
Business and the Lufthansa Service Initiative created activities which contribute
directly to the change programme. Explorer 21 and the ‘climb programme’
together involve 370 executives each year. No doubt these initiatives pursue talent
management and development objectives. But they are also leveraged as part of a
total process in pursuit of strategic change.
Overall the vital point being made here is that the strategic management of
change via a change architecture approach seeks to bring change to the centre
stage. Too often change projects are treated in isolation from the management of

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