The Change Agent’s Agenda
In the summer of 1987, Art Schneiderman faced a dilemma. As Quality Improvement Director at Analog Devices, he had been asked by CEO Ray Stata to develop a new annual planning process that focused on the non-financial drivers of quality improvement. Stata was interested in innovation and how the organization and its people worked. But alongside him, COO Jerry Fishman was more focused on financial performance and the bottom-line. Insiders referred to the Stata-Fishman partnership as “the two-headed monster.” As Schneiderman noted, “Opposites work very well together.” Except when you’re in the middle. And it became very apparent to me early on that I was in the middle. I had to not only manage Ray, but Jerry as well.”
The differing approaches of the company’s two top executives were abundantly clear at the monthly business meetings, which were chaired by Schneiderman. He always put the non-financial performance measures first on the agenda, followed by the financial measures, and Fishman would switch them around.
Fishman challenged Schneiderman to find a way to make them both happy. A few days later, while at home in the evening, Schneiderman saw a television commercial that emphasized how Reese’s Peanut Butter Cups were a combination of two different products: peanut butter and chocolate. As he recalled, “Suddenly the light bulb lit: combine the financial and non-financial metrics as a single agenda item. So I added a small number of key financials at the top of the scorecard, and the problem was solved to everyone’s satisfaction.”
Schneiderman’s new reporting system became known as the Corporate Scorecard inside Analog Devices. A few years later, Harvard Professor Robert Kaplan wrote about Schneiderman’s endeavors in a 1993 Harvard Business Review article titled “The Balanced Scorecard” (though Analog Devices was not actually named), leading to the popularization and widespread implementation of the concept. Today the Balanced Scorecard is one of the most widely-used management tools in existence.
This story of the origin of the Balanced Scorecard is typical of how innovations in management practice happen—a combination of conducive circumstances, personal initiative, and serendipity. There is no standard formula for making management innovation happen, but there are certainly things you can do to increase the likelihood that you will succeed in making changes to your Management Model.
It goes without saying that change in an established organization is slow and difficult. It is hard enough to introduce new products and services that represent a departure from the way things have traditionally been done. It is even harder to introduce new management practices where their potential benefits are so subjective and unmeasurable. It takes an enormous amount of effort and personal conviction to move an organization out of the deep grooves of established practice and onto a new track.
Who are the dramatis personae in this play? We have the CEO, of course, who carries ultimate responsibility for the long-term success of the company. Ray Stata at Analog Devices was not the originator of the Balanced Scorecard, but he gave Schneiderman the space to experiment, and he endorsed the idea when it was put forward. But there are also hundreds of mid-level executives in any medium- to large-sized company who, like Schneiderman, have a point of view on the future direction of the company and useful insights into what should be changed to achieve success. I call them “Change Agents” because of their vital role in making things happen. There is also a third set of actors, the external consultants and experts like Robert Kaplan, who often play a useful supporting role in helping Change Agents like Art Schneiderman.
Change Agents are entrepreneurial by nature: they don’t have the formal authority to act, but they see an opportunity and they choose to proceed anyway, perhaps by doing something within their sphere of immediate influence, perhaps by building a coalition of like-minded people, perhaps by pushing their boss to do something new. Recall the famous words of the American cultural anthropologist Margaret Mead: “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it is the only thing that ever has.” This is true in the domain of social change, through the efforts of such individuals as Aung San Suu Kyi, Mohammad Yunus, and Bono. It is also true in the domain of corporate change, where successful business ideas often emerge through the championing efforts of mid-level managers who succeed despite the formal system, not because of it. Well-known examples of products that have emerged through the efforts of bottom-up innovators include Sony’s Playstation, HP’s Laserjet Printer, Ericsson’s mobile handset business, and Microsoft’s Internet Explorer.
So, how should you focus on your role as a Change Agent, in envisioning and promoting Management Model innovation inside your company? What changes in management practice would you like to see? Where should you start? Whom should you work with? You may not have the formal authority, budget, or breadth of perspective of a Chief Executive Officer, but you have a very practical understanding of what is preventing your company from realizing its potential, and you typically have more degrees of freedom in enacting change than you might realize.
In my new book “Reinventing Management” I’ve discussed this in detail. My research suggests that Management Model innovation is typically driven by the efforts of three sets of actors: mid-level change agents, top-level executives, and external partners such as consultants and academics. Here are five lessons I discuss in my book on the subject of change agents:
- Figure out your degrees of freedom and use them. Most managers have far more space to try new things than they realize. As the old saw says, it’s often easier to ask forgiveness than permission.
- Build a team of allies inside and outside the company. One approach is to build a group of colleagues inside the company who can collectively get things done. Another approach is to tap into external sources of insight to help build legitimacy for what you are doing.
- Take an experimental approach. Experimentation is a good way of overcoming internal resistance, because it gives your colleagues and your boss the right to say no.
- Give it a name. Your project needs a name that your colleagues can hold onto, to help them understand why they are taking part in it. A great name makes people curious to know more and will help it to rise above the noise.
- Seek out support from above when it takes shape. The biggest challenge you face is to sell your project to those above you in the organization. As always, the best advice is to build on small successes and to use your allies inside and outside the company to create some momentum behind the project, so that your boss has no choice but to endorse it.


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