Leading Organizations That Matter - Episode 63: Jim Carlow on Change Management vs. Managing Change

Host: Rey Spadoni
Guest: Jim Carlow
Release Date: April 15, 2025

Introduction to Jim Carlow and the Topic

In this insightful episode of Leading Organizations That Matter, Rey Spadoni welcomes Jim Carlow, a seasoned leader with over 25 years of experience in the healthcare industry. Carlow has held significant roles such as CEO, COO, and Executive VP in renowned organizations like Health Trio and Cognizant Technology Solutions. The episode delves into the critical distinction between Change Management and Managing Change, a topic both hosts frequently explore due to its paramount importance in organizational success.

Change Management vs. Managing Change

Jim Carlow opens the discussion by distinguishing the two concepts:

• Managing Change: Carlow metaphorically describes this as "changing the chairs on the Titanic"—superficial adjustments that do not address underlying issues, ultimately leading to failure. He warns that this approach often stems from leaders trying to mask their shortcomings.

  "Change management or versus managed managed change to me is somebody changing the chairs on the Titanic by moving things around, but the ship's still going to sink." [01:56]

• Change Management: In contrast, Carlow defines this as a strategic overhaul of business processes or organizational structures to adapt to market demands, improve efficiency, and achieve targeted outcomes. This method is systematic, often involving external consultants to guide the process.

  "Change management, though, is when you're strategically going to change the business process or the organizational structure to better adapt your organization to the market..." [01:56]

Experiences and Observations

Spadoni and Carlow explore scenarios where organizations either embrace change for its own sake or fail to address core problems:

• Attracted to Change: Organizations may seek change driven by personalities that thrive on novelty, often without measuring the actual benefits.

  "You need to measure the gain from the results of what you're doing to really determine whether... you've gotten partway there." [04:08]

• Pretextual Changes: While Carlow has primarily observed the first scenario, he notes its prevalence and the necessity of evaluating outcomes thoroughly.

Initiating Successful Change

When organizations contemplate change, Carlow emphasizes starting with a clear understanding of current strengths and areas for improvement:

1. Identify Strengths: Document what the organization does well to ensure these aspects remain intact during the change.

   "First have a session and let's just document everything we do well... and the things that we think we do okay but can do better." [04:59]

2. Acknowledge Weaknesses: While starting with positives, it’s also essential to recognize and address deficiencies.

   "I would also cover that as well. Yes, but I would start with the positives always and make sure that they're well documented." [06:03]

Ensuring Effective Change Management

Carlow outlines key steps to manage change effectively:

1. Appoint a Project Owner: Assign someone responsible for keeping the change initiative on track and reporting progress to the executive team.

   "Somebody has to have ownership for the project itself... report to the executive team on the processes that they're changing." [07:36]

2. Distinguish Roles: Differentiate between project managers and champions to ensure focused leadership without overstepping.

   "I would want someone who's a true PMP certified project management person... and then you're going to have your champions." [08:47]

3. Consistent Reporting and Tracking: Implement formal documentation and regular updates to maintain transparency and accountability.

   "There's got to be a formal record of that. And in fact, I could see that being turned over to a board..." [10:24]

4. Board Engagement Without Micromanagement: Keep the board informed without allowing them to interfere directly with project management.

   "Don't want the board managing the project. You've got to give them... without going too deep." [12:24]

Organizational Culture and Accountability

The conversation shifts to the role of culture in facilitating or hindering change:

• Accountability: Carlow references Extreme Ownership by Jocko Willink and Leif Babin, highlighting the importance of leaders owning their responsibilities.

  "You have to own your responsibility, you have to be accountable... you have to perform them as best as you can." [15:40]

• Cultural Support: A culture that values accountability can significantly ease the change process, making teams more resilient and committed.

Leadership Attributes for Effective Change

Carlow presents six essential attributes that define great leaders, honed through mentoring experiences:

1. Integrity: Non-negotiable and foundational for trust.
2. Empathy and Compassion: Balancing understanding with actionable support.
3. Stability and Focus: Providing consistent direction and maintaining organizational priorities.
4. Humor: Humanizing relationships and easing tensions.

"Integrity is important... empathy and compassion... stability and focus... humor... humanizes the relationships." [19:00]

Carlow emphasizes that leadership skills, including change leadership, are learned and developed rather than innate traits.

"I'm a firm believer that a lot of things, including leadership, are learned." [17:34]

Building Strong, Effective Teams During Change

Using a personal example, Carlow illustrates how demonstrating commitment to team members fosters loyalty and high performance:

• Example: When sunsetting an outdated technology, Carlow made three promises to his team: providing ample notice, offering training for new roles, and assisting in job placements. This approach not only retained staff but also achieved the highest employee satisfaction ratings.

  "Nobody left before their position was set to go away... the team had the highest employee satisfaction rating in the entire organization." [23:57]

Common Mistakes in Change Management

Carlow identifies five prevalent mistakes leaders make during change initiatives and offers strategies to avoid them:

1. Lack of a Clear Plan: Initiating change without a structured approach.
2. Undefined Expected Outcomes: Failing to communicate the vision and goals.
3. Poor Communication: Inadequate updates can breed distrust and uncertainty.
4. Neglecting Employee Buy-In: Without engaging employees, resistance can undermine efforts.
5. Lack of Leader Ownership: Leaders must visibly own and champion the change process.

"The biggest mistake people make often in change management is not having a plan..." [29:59]

Final Advice for Leaders

Carlow concludes by advising leaders to seek external mentorship to gain objective insights and support during transformative periods:

• Mentorship Benefits: External mentors provide unbiased perspectives and can help navigate complex change processes.

  "Have at least one mentor that's external, someone that you can confide in, that you trust..." [33:05]

• Promoting a Mentoring Culture: Organizations should support mentoring programs to foster career development and resilience.

  "Encourage a culture where the company supports mentoring programs for newer employees..." [34:37]

Conclusion

Jim Carlow's expertise provides a comprehensive framework for understanding and implementing effective change management. By differentiating between superficial change and strategic transformation, emphasizing key leadership attributes, and avoiding common pitfalls, organizations can navigate change successfully. Carlow's emphasis on integrity, accountability, and mentorship underscores the human element essential for lasting organizational impact.

For more information or to connect with Jim Carlow:

• Website: www.jimcarlo.com
• LinkedIn: Jim Carlow

Listen to Leading Organizations That Matter for more empowering discussions on leadership, organizational culture, and strategies for impactful change.