My presentation and exercises on Leading Change for an Executive Education program. The presentation includes an exercise in which the participants work in groups on a live change project within their organization during a period of three months. Please let me know if you have any questions.
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Leading Change_Teigland
1. Leading Change:
Integrating Theory and
Practice
Robin Teigland
Center for Strategy and Competitiveness
Stockholm School of Economics
robin.teigland@hhs.se
Twitter: RobinTeigland
www.knowledgenetworking.org
August 2013
2. Who am I? (LinkedIn Inmaps)
SS
E
IFL
Swedish
Industry
ResearchWharton
Stanford
McKinsey
SSE MBA
3. 3
Agenda
Afternoon
1. Live Project Groupwork
2. Some Change Tools
Morning
1. What is Change
2. Kotter’s 8 Stages
3. Groupwork
Going Forward
4. 4
Leading Change objectives
To expose participants to some Change
concepts, frameworks, and tools
To develop Change techniques and skills
through developing and discussing a live
change project
To deliver real business benefits for your
company
To provide participants with an interactive and
reflective team experience in which everyone
(participants and faculty) learns together
5. Jack Welch…
5
"...when the rate of change
outside an organization is
greater than the change inside,
the end is near...."
6. Competitive advantage increasingly
based on organization’s ability to change
Of original Forbes 100 in 1917
- 61 companies ceased to exist by 1987
- 18 of remaining 39 underperformed market by 20%
- Only 2 beat market index (GE & Eastman Kodak)
- Only 1 (1%) today!
Average S&P 500 company lifespan
1920s – 67 years
2010s – 15 years
Dr. Richard Foster, Yale, Sept 2012
Today's rate of change is at faster pace than ever
By 2020 prediction is >75% of S&P 500 will be companies
we do not know about today
http://www.fastcompany.com/3001444/what-zara-pg-and-berlitz-know-about-agility
7. Only 20-30% of all change projects achieve full value
Less than 20% of anticipated value from M&A materialized
Only 25% of JVs stay together after “honeymoon”
Less than 50% of quality-improvement efforts make satisfactory
progress
Only 9% of all major software development applications in large
organizations worth cost
31% of software implementation projects cancelled before
completion
Irrespective success or failure, 53% software implementations
result in cost overruns by up to 189%
High number of change initiatives unsuccessful!
So, are change initiatives successful?
Beer 2002, Gratton 2007, Maurer and Co
8. 9
Your experience with change
Discuss in pairs
Choose one of your more significant experiences with change
(either successful or unsuccessful).
Which events/phases of change from the Iceberg story do you
recognize in your experience? Did you experience all the phases
or only some of them? Why or why not?
Do you recognize any of the key characters in this change
experience? Freds, Alices, NoNos? Other?
Reflect on your own role in this change experience. Which
character(s) did you play in these?
Was this change experience successful? Why or why not? How
does the outcome differ from that of the Iceberg story?
www.ouricebergismelting.com
9. Organizational Change
An alteration of an organization’s environment,
structure, culture, technology, or people
A constant force
An organizational reality
An opportunity or a threat
Change agent
A person who initiates and assumes the responsibility
for leading a change in an organization
10
14. 17
Organizational forces: Internal pressures
Need for improved performance
In current or new markets
Need for integration and collaboration
E.g., alliances, synergies, economies of scale
Power and politics
E.g., changes at top management and board level
Changes in surrounding organizations
E.g., key customers, suppliers, partners
15. 18
Pressures from one area can affect the entire
organization
Political
Environmental
TechnicalLegal
Social
Economic
Culture Systems
Vision
Strategy
Structure People
17. Only 20-30% of all change projects achieve full value
Less than 20% of anticipated value from M&A materialized
Only 25% of JVs stay together after “honeymoon”
Less than 50% of quality-improvement efforts make satisfactory
progress
Only 9% of all major software development applications in large
organizations worth cost
31% of software implementation projects cancelled before
completion
Irrespective success or failure, 53% software implementations
result in cost overruns by up to 189%
Remember…. Are initiatives successful?
Beer 2002, Gratton 2007, Maurer and Co
Why? According to Fortune 500 executives,
resistance/people not accepting changes
19. Innovators - Leap with enthusiasm at change proposal and strongly
support.
- Expect others to be active in pursuing change.
Early Adopters - Rapidly persuaded, especially by early success.
- Likely to want to adapt change proposals to own
circumstances.
Early Majority - Want to see tangible outcomes to change proposals.
- Not convinced merely by idea or principle.
Late Majority - Follow powerful person when agree and support change
ideas.
- Commitment centered on political calculation.
Resistors
(Laggards)
- Predictable.
- Need considerable evidence – more vivid and directly
observable, the better – before they can be mobilized.
- Relatively risk adverse.
People react differently...
Rogers 1983, 1995
21. 27
Say the color, not the word
YELLOW BLUE ORANGE
BLACKBLACK
GREEN PURPLE YELLOW RED
ORANGEORANGE GREEN BLACK
BLUE Stroop
22. 28
The challenge of change
Change
Leadership
Change
Management
The WHAT
The ‘hard’ edge:
Systems, processes, structures,
and business strategy
The HOW
The ‘soft’ side:
Culture, behaviors,
values, and people
Zwanenberg
23. 29
Kotter’s eight-stage process for change
Kotter 1996
2. Form a powerful guiding coalition
1. Establish a sense of urgency
3. Create a vision
8. Anchor new approaches
4. Communicate the vision
5. Empower others to act on the vision
6. Plan for and create short-term wins
7. Consolidate improvements and produce more change
25. 3131
Tata Motors
India’s largest commercial vehicle maker for
decades
World’s fifth largest manufacturer of medium and
heavy trucks
India’s largest automobile company (#1 in
commercial and #2 in passenger)
Building global presence (e.g., partnership/acquisition
with Fiat, acquisition of Jaguar/Land Rover)
Major turnaround 2001 to 2007
March 2001 - $110 mln loss for fiscal year, corporate
India’s biggest loss
3Q 2007 - $132 mln profit
http://www.youtube.com/watch?v=rOnQpP5haUQ
26. 32
Groupwork - In your groups
Discuss how change was implemented at Tata
Motors
What triggered the change?
How does the change process map onto Kotter’s eight
stages?
What is the real change?
What are the lessons learned from the case?
Prepare a maximum 10 minute presentation
Present groupwork
Discussion
http://www.mckinseyquarterly.com/Leading_change_An_interview_with_the_managing
_director_of_Tata_Motors_1908
27. 33
1. Establish sense of urgency
Forces
for
change
Forces
for
stability
The
status
quo
Burnes 2004http://www.youtube.com/watch?v=U5802FBaMSI
29. 35
1. How to create a sense of urgency?
Create a crisis/rivalry
Benchmark within and outside industry
Find/develop a “red hot” burning issue
Align with a powerful sponsor
Revise existing or develop new standards
Income, profitability, effectiveness, efficiency,
customer satisfaction
Get an outside opinion
Bring in consultants, customers, shareholders
Adapted from Kotter 1996
30. 36
2. Form a powerful coalition
Ensure shared understanding
& right attitude
Ability to share vision
Trustworthy
Commitment to means and end
Has access to necessary
resources
Formal position power
Expertise
Reputation
Leadership
Informal network position
But look out for
people with big
egos or
“snakes”
Beer 2002, Kotter 1996
The small
team that will
lead the
change
32. 38
3. Create (and operationalize) a vision
Create the vision
To direct the change effort
To coordinate across and outside the
organization
Develop a strategy to achieve the
vision (operationalize)
To engage people through participation
To find their “passion”
To overcome forces for stability
Adapted from Kotter 1996
33. 39
4. Communicate the vision
How?
Use multiple channels
Regularly to reconfirm
What?
Keep it simple
Use metaphors and success
stories
Who?
Walk the talk
Identify key opinion leadersBut listen as well!!
Adapted from Kotter 1996
34. Information + Involvement
to build commitment & change
Increasing
Commitment
Awareness
of desired change
Understanding
of change direction
Translation
to the work setting
Commitment
to personal change
Internalization
of new behavior
“Yeah, I saw the
memo.”
“I understand
where we need to
go.”
“I know how we
need to do our jobs
differently.”
“OK, I’m ready to
do it the new way.”
“This is the way we do
things here.”
Stages of Individual
Behavior Change
Information with some
involvement sufficient here
Significant
involvement
needed
Schreiber
35. 41
5. Empower others to act on the vision
1. Does the organizational
culture encourage
individuals to act?
2.Do people have
the necessary
resources to act?
3.Do people have the
appropriate skills and
training to act?
4.Do people have
the authority to act?
5.Are the organizational
structure & systems
aligned with the vision?
Adapted from Kotter 1996
37. 43
6. Plan for and create short-term wins
1. Create
obtainable
targets
2. Encourage
& convince
people that
targets can be
reached
3. Recognize
and reward
“winners”
Communicate
the wins
Adapted from Kotter 1996
38. 44
7. Consolidate improvements and
produce more change
Change
Project 1
Change
Project 2
Change
Project 3
Time
Scope of
change
Adapted from Kotter 1996
39. 45
8. Anchor new approaches
Company culture
Physical
artifacts
activities and routines
Underlying values,
assumptions,
beliefs, and expectations
Intangible
Adapted from Kotter 1996
40. 46
Kotter’s eight-stage process for change
Kotter 1996
2. Form a powerful guiding coalition
1. Establish a sense of urgency
3. Create a vision
8. Anchor new approaches
4. Communicate the vision
5. Empower others to act on the vision
6. Plan for and create short-term wins
7. Consolidate improvements and produce more change
41. Involving people in the change
48
http://www.mckinseyquarterly.com/What successful transformations share
42. People don’t resist change –
they resist being changed
From recipients of change to
co-creators of change
43. 52
Your Iceberg
Reflect on your organization. What is your iceberg and what
does it look like? Is it melting? Does it have fissures?
Is there a clear and simple message about the future and what
it may look like that is understood by all?
Are you and your team most concerned with success in
catching fish today or planning for what may come tomorrow?
What does your team look like? Reflect on who the Nonos,
Freds, Alices, Buddies, etc. are. How well balanced is it in
terms of having the “right” characters? Do you have
enough/too many/too few? Who will adopt the necessary roles
if no one else is doing it?
What do you have to do to lead/encourage/support the people
'stepping up'? What can you do about the Nonos?
44. 53
Agenda
Morning
1. What is Change?
2. Kotter’s 8 Stages
3. Groupwork
Going Forward
Afternoon
1. Live Project Groupwork
2. Some Change Tools
46. 59
Criteria for the Change Project
It should involve a real organizational issue or
challenge that at least one group member is
currently facing in his/her part of your organization.
It should lead to a real change in your organization.
The change should lead to improved business
performance that is both identifiable and
measurable.
The project should have a stakeholder.
”This is something we would like to do!!”
50. 63
Discuss in your groups today
What are the current & future pressures for the change?
Internal
External (PESTEL)
What is the sense of urgency for the change?
For whom? How urgent?
What can be done to strengthen the sense of urgency?
What is the vision or real change that your project will lead to?
How will the change improve business performance?
Identifiable? Measurable?
How will you organize your work during the program?
How will your coordinate with your Stakeholder?
51. 64
Kotter’s eight-stage process for change
Kotter 1996
2. Form a powerful guiding coalition
1. Establish a sense of urgency
3. Create a vision
8. Anchor new approaches
4. Communicate the vision
5. Empower others to act on the vision
6. Plan for and create short-term wins
7. Consolidate improvements and produce more change
52. 65
Prioritize stakeholders
Low High
Low
High
Level of interest
•Visibility
•Importance
•Priority
Scholes 1998
Power
•Formal
•Informal
Keep
informed
Key
players
Minimal
effort
Keep
satisfied
http://www.mindtools.com/pages
/article/newPPM_07.htm
53. 66
Stakeholder analysis
Stakeholder Block Let Help Make Diagnosis of
stakeholder
position
Recommended action
to move to desired
position
Adapted from Nader, NTL
Current (C) & Desired (D) position regarding the Change
54. Involving people in the change
67
http://www.mckinseyquarterly.com/What successful transformations share
55. People don’t resist change –
they resist being changed
From recipients of change to
co-creators of change
56. 70
Today’s Coaching Session
Each Group will present its Change Project to the
others, max 10 minute presentation
One Review Group will be appointed to lead the
following discussion, max 5 minutes:
How well does the Project fulfill the Change Project
criteria?
What challenges are foreseen for the Project?
How could these challenges be overcome?
Promote learning through “Assess, Challenge,
Support”!
57. 71
Your Live Project Iceberg
Reflect on your live project. What is the iceberg and what
does it look like? Is it melting? Does it have fissures?
What is the clear and simple message about the future that
may be understood by all?
What does the set of stakeholders look like? Reflect on
who the NoNos, Freds, Alices, Buddies, etc. are. Do you
have enough/too many/too few? Who will adopt the
necessary roles if no one else is doing it?
What do you have to do to lead/encourage/support the
people 'stepping up'? What can you do about the NoNos?
58. 72
Agenda
Morning
1. What is Change?
2. Kotter’s 8 Stages
3. Groupwork
Going Forward
Afternoon
1. Live Project Groupwork
2. Some Change Tools
59. 73
Tools to achieve the “transformation”
1. Conduct stakeholder analysis
2. Develop clear project charter and roll out plan
3. Develop communication plan
4. Conduct risk analysis
5. Develop measurement plan
60. 90
Morning
1. What is Change?
2. Kotter’s 8 Stages
3. Groupwork
Afternoon
1. Live Project Groupwork
2. Some Change Tools
Agenda
Going Forward
61. Timeline
Sept 9 (8:00 am Stockholm): Change project statement, should
be agreed with Project Stakeholder
Oct 7 (8:00 am Stockholm): Progress report
Timeline to completion
Progress to date, what achieved (Kotter, frameworks, method, sources,
etc.)
Issues/challenges outstanding with project
Ideas to overcome issues/challenges
Update on communication with Stakeholder
Module 2: Respond to feedback and develop implementation
plan
Nov 22 (8:00 am Stockholm): Progress report
Communication plan
Risk analysis
Issues / challenges and how to overcome
Update on communication with Stakeholder
Dec 5: Module 3 – presentation
62. 92
Moving forward
Coordinate with Stakeholder and invite to Module 3
presentation
Provide brief update Friday morning on Thursday
evening’s progress (remember Kotter’s 8 stages!)
Prepare and submit inter-module progress report
By email
Module 2
Scheduled working time during Module 2
Each team submits its presentation
● By email
Prepare and submit inter-module progress report
Submit by email
63. 93
Moving forward
Coordinate with Stakeholder and invite to Module 3
presentation
Provide brief update Friday morning on Thursday
evening’s progress (remember Kotter’s 8 stages!)
Prepare and submit inter-module progress report
By email
Module 2
Scheduled working time during Module 2
Each team submits its presentation
● By email
Prepare and submit inter-module progress report
Submit by email
64. 95
Module 3 - Final Presentation
Each team has 15 minutes maximum to present its Change
Project, including the following (in ppt):
● Purpose and rationale for change
● Use of tools, eg stakeholder analysis, risk analysis, etc.
● Measuring impact and preliminary results
● Plan for moving forward
● Lessons learned
One team will then lead feedback to the Presenting Team for
10 minutes maximum
● The purpose of this feedback is to spur lively debate and help advance
each Change Project as much as possible
Faculty and Stakeholders will provide further comments
Each team submits its presentation
● By email
65. 96
See you in Module 3!!
Good luck with your projects!!
Notas del editor
10:30-11:20 Slides 11:20 to 12:00 Tata case 12:00-12:30 Presentation 13:30 to 14:00 Project intro 14:00 to 15:35 Project work plus break 15:45 to 17:00 Presentations and wrap-up 9:30 to 10:15 Slides 1-12 +exercise + 10:25 to10:35 Break 10:35 to 11:20: Triggers for change 13-19 + CSFs slides 20-40 11:20 to 12:00 Tata case preparation 12:00 to 12:30 Presentation + projects info 9:50 to 10:50 Slides 1-12 +exercise + Triggers for change 13-19 10:50 to11:00 Break 11:00 to 11:20: CSFs slides 20-40 11:20 to 12:00 Tata case preparation 12:00 to 12:30 Presentation + projects info
Organizational change occurs when an organization restructures resources to increase the ability to create value and improve effectiveness. Change is prevalent. In the past 10 years, over 50 percent of all Fortune 500 companies have undergone significant restructuring.
Beer 2002, Ridderstråle & Wilcox 2008 Of companies in original S&P 500 in 1957 426 companies ceased to exist by 1997 Only 12 (2.4%) outperformed S&P 500 index in 1997 Of top 100 companies in Korea in 1955 Only 7 still on list in 2004 1997 crisis destroyed half of 30 largest conglomerates
The participants were to read in advance Our Iceberg is Melting . Below are instructions for this. Preparation for the Leading Change Module Read the book, Our Iceberg is Melting , by Professor John Kotter along with his article in Harvard Business Review , Leading Change: Why Change Transformation Efforts Fail. Prepare answers to the following questions. We will discuss your answers in our Leading Change session during the first week of the Tieto Accelerator Program. Questions The Story What are the key events and phases of change in this story? Who are the key characters in the story? What are their roles throughout the phases of change in the story? Your Experience with Change Reflect on a couple of your more significant experiences with change (both successful and unsuccessful). Which events/phases of change from the Iceberg story do you recognize in your experience? Did you experience all the phases or only some of them? Why or why not? Do you recognize any of the key characters in these change experiences? Freds, Alices, Nonos? Other? Reflect on your own role in these change experiences. Which characters did you play in these? Were these change experiences successful? Why or why not? How do the outcomes differ from that of the Iceberg story? Your Organization Reflect on your organization at Tieto. What is your iceberg and what does it look like? Is it melting? Does it have fissures? Is there a clear and simple message about the future and what it may look like that is understood by all? Are you and your team most concerned with success in catching fish today or planning for what may come tomorrow? What does your team look like? Reflect on who the Nonos, Freds, Alices, Buddies, etc. are. How well balanced is it in terms of having the “right” characters? Do you have enough/too many/too few? Who will adopt the necessary roles if no one else is doing it? What do you have to do to lead/encourage/support the people 'stepping up'? What can you do about the Nonos?
Human on left side (more participative) and technical on right side (less participative)
What triggered the change? What was the change? What worked and did not work? A change requires a combination of two things: start doing some new activities and stop doing some old activities
PESTEL stands for P olitical, E conomic, S ocial, T echnical, E nvironment and L egislative. It is a strategic planning technique that provides a useful framework for analysing the environmental pressures on a team or an organisation A PESTEL Analysis can be particularly useful for groups who have become too inward-looking. They may be in danger of forgetting the power and effect of external pressures for change because they are focused on internal pressures. Help people make their assumptions explicit Important to look forward and at future impact of envtal factors which may be different from past impact. Usually will be combined effect of some of these separate factors that will be important rather than any single factor Plays role in focusing organizations on choices open to them and the constraints and risks involved in these choices. Political – threat of terrorism, Economic – unemployment levels Social – demographic changes Tech – development of new/subst products Environmental – antipollution Legal – antitrust Where is the business going in the next 3 to 5 years? • What technologies are emerging and how will (could) they change the business model? • Where is your competition headed in the future? • Where do your employees wish or need to go in the future? Which of the below are of most importance now? Which are likely to be most important in a few years? What are the factors influencing any changes?
PESTEL-analysis is a tool – not a key.
Robotics – wipe out china production in 10 years says singularity university Native american values Asian values Great disruption – fossil fuel Peak technologies – car peaks – australia – young generation not driving cars …
Constraint/Impact of organization ’s history - path dependency Poor decision making!
http://www.youtube.com/watch?v=w3IbKbDhfKw
start doing some new activities and stop doing some old activities This requires everyone understand their new roles & responsibilities & new targets Else it only bring added workload => stress => no credit for work not needed Duck..they have been to a conference…here we go again!
http://faculty.washington.edu/chudler/words.html
Zoë van Zwanenberg Scottish Leadership Foundation The Management Tasks Exterior, empirical, objective systems Require good management skills focused on people, processes and resources. The WHAT of change The Leadership challenge Create the culture Model the behaviours Live the values Inspire, motivate stimulate and support the people The HOW of change
Three steps Prepare Implement Manage
The country's second-largest conglomerate--with 2005 revenue of $17.8 billion and core interests ranging from steel, cars and telecommunications to software consulting, hotels and consumer goods--has come a long way since he stepped up as chairman, in 1991.
http://www.youtube.com/watch?v=rOnQpP5haUQ
Stability forces Institutionalism – way things are done around here, of current practices Transaction costs –employee stability Sustained advantage – organizational relationships Organizational social capital – trust among co-workers Predictability and uncertainty reduction – the need for these may inhibit change. A necessary prerequisite for a successful change However, organizations and people are complacent Better what you know then what you don ’t know Change creates uncertainty Change is perceived as a “zero sum” Often reactive and not proactive “If it ain’t broken don’t fix it” Too much fat (resources, profits)
Overcoming Complacency A compelling need has to be developed and shared Visible Crises catch peoples ’ attention and drive up the urgency levels e.g. GM Create a rivalry – What are your arch competitors doing? Slim down resources Create dissatisfaction with the status quo Benchmark operations Diagnose internal barriers to performance
Power & Credibility : to legitimize change (critical mass); Ability to reward/confront Pain &Sacrifice: : Personal Stake; Pursue change despite personal price Expertise: Informed & intelligent decision making Public / Private Role : Commitment and ability to support change publicly/ meet privately with agents Pitfalls: Avoid those who create mistrust or put their own immediate interests above the greater goal
Can use this to look at one organizational unit, this picture shows the programmers of the stockholm office of one IT multinational. See that well-connected. Good knowledge flows here as well. The Icon Stockholm programmer community was very well connected, indicating a high degree of knowledge flow. But I use this example, bc want to illustrate key players in this network. They are the central connectors. Central information source for everyone in network. In most cases, these individuals are not formally designated go-to people in unit. Provide help or pointers to others if can ’t help. In many cases these individuals are high performers. Interestingly when we showed this picture to management, they knew of three of these but the fourth one was a total surprise. Interesting bc this person was different from mgt, woman programmer. Challenge with these individuals is that even though recognized by their colleagues, often their efforts go unrecognized and unrewarded, yet spend a good amount of time filling this task. Organizations use different kinds of rewards, nominated for best helper, one example is bank that changed its bonus scheme rewarded individuals for their ability to improve communication within unit, to be connectors based on evaluations by fellow employees. McK in semi-annual evaluation process. Mostly positive roles but these individuals can also play power games, using connecting role for private benefit, pitting networks against each other, hoarding information. Sometimes even people just overloaded . Found that this person was a bottleneck, while many people went to this person for help, could not help everyone, so people frustrated. Think about how design teams or redesign jobs, rotating people also. One organization conducted analysis and restaffed teams combining members of both networks. If overloaded, can implement mailing lists, discussion boards to try to reduce workload on central connector
Visions need to be top down since that is where the strategic direction come from Vision gives a sense of direction and motivation Acts as a coordination mechanism between different parts of the organization as well as outside of the organization However, the vision needs to be accepted Develop a vision in a participative nature Kotter (1996) suggest 6 characteristics of an effective vision: V ision : Develop, articulate and communicate a shared vision of the desired change that is: Imaginable – Creates a Picture Desirable – Appeals to the long-term interest Feasible – Realistic & Attainable Focused – Clearly guides decisions Flexible – Allows for changing conditions Communicable – Successfully explained in 5 min.
Communicating the vision in order for people to understand the present situation and future state Communicate the means in which to obtain the vision Keep it Simple; Lose the Jargon Create Verbal Pictures Multiple Forums; Repetition Lead by Example; Your Behavior Speaks Explain the Appearance of Inconsistencies 2- Way: Listen as Well as Share Perception is that people know the vision, but don ’t really, vision communication is only one small % of total communication
Is there organizational alignment? Are the structures congruent with the change? How is politics managed? How is non-compliance dealt with? Does the culture allow for changes? What about the HR systems and procedures? Do people have the necessary skills and training to carry out the change? How about resources? Sponsors : Senior management leaders - the driving force of change - must walk the walk. Advocates : Allies of leaders, deploy the vision - communicate - involve - sell – MOTIVATE the masses. Agents: Influence sponsors ’ commitment, target resistance, measure readiness, assess existing people/structures Targets : Everyone in organization - develop, train, reinforce, support
Planning for visible improvements in performance, or “wins” to show that change is possible and positive Create those wins Visibly recognizing “winners” & overcome resistance Make obtainable, visible, unambiguous targets related to change Communicate the wins Show that sacrifices are worth it – “No pain, no gain” Work the network to build momentum and keep people on board Use dialogue to convince non-believers Visibly recognizing and rewarding those people who made the wins possible – create heroes Build a winning culture Plan for and create regular “wins” Recognizing and rewarding people who facilitate the “wins” Momentum is building, less resistance You get what you reward
Begin small and roll these in to something bigger Build momentum… Additional and larger change projects Increase scope of change - use increased credibility to change more systems, structures, and policies that don ’t fit together and/or don’t fit the vision. Hire, promote and develop people who can implement the change vision Reinvigorating the process with new projects, themes and change agents But, know the network and the interconnections Increase resources Have senior management lead through clarifying the vision and keeping the sense of urgency Eliminate interdependencies Use increased credibility to change other systems that don ’t fit the vision Hire, promote, and develop people who implement the change vision Reinvigorate the process with new projects, themes, and change agents Don ’t let up
ANCHORING NEW APPROACHES IN THE CULTURE Culture is a double edged sword ie. The culture that promotes change can also hinder change Change often requires a new or change in organizational culture Culture is difficult to change Results need to come first and this has to be embedded into the organizations “way of doing things” Steering organizational culture is like running in front of a moving bus and yelling stop! What kind of culture is required to support the vision? Changing culture is much more than symbols. Culture permeates who is recruited, promoted, rewarded, organizational structures, as well as power structures. May involve turnover. Maintain clear focus. Cultural change comes last, not first. Embrace resistance. Respect those who resist. Shared throughout firm, Both product and process, Influences how business is conducted
This may seem like “consulting jargon” – but a sense of control is essential for peoples experience of stressful events. Research on stress shows that the percieved control is a central mediator for stress. How can this sense of control be created in a change proces involving many people? I would like to hear from you: How many of you have been part of what you would consider a participative change process?
http://www.cisco.com/warp/public/126/chmgmt.shtml
1:30 – 3:30 intro and groupwork 3:30 – 5:00 presentations and discussion
This may seem like “consulting jargon” – but a sense of control is essential for peoples experience of stressful events. Research on stress shows that the percieved control is a central mediator for stress. How can this sense of control be created in a change proces involving many people? I would like to hear from you: How many of you have been part of what you would consider a participative change process?
Concepts - Presenting the best and the latest To develop an understanding of the complexity and dynamics of change in organizations To expose participants to concepts, theories, and models for leading change Competence - Translating knowledge into ” actionable knowledge ” To actively integrate leading change concepts with practice through developing and discussing a change project To develop participants ’ ability to analyze situations, generate options, make grounded decisions, and take action on the basis of knowledge To provide participants with an interactive and reflective team experience in which everyone (participants and faculty) learns together Capital - Leading change for business performance To strengthen your personal networks
The stakeholder should be some one who is involved in and has experience of the issue or challenge you will focus on for the Live Project The stakeholder should be able to support you by helping you get access to the people and information you might need to help complete the project. The stakeholder should also act as a sounding board for your thoughts and ideas as well as some one who can give you feedback when you implement your plans.
Human on left side (more participative) and technical on right side (less participative)
Completing the project for the course means not only implementing the change but also developing a means with which to measure and evaluate the effects on the organization ’s business performance.
Prioritize Your Stakeholders Where do stakeholders place the project? High Use to recruit appropriate team members Change management requires to manage impacted stakeholders with a vested interest in the change and ensuring non impacted vested stakeholders know they are not impacted High power, interested people: these are the people you must fully engage and make the greatest efforts to satisfy. High power, less interested people: put enough work in with these people to keep them satisfied, but not so much that they become bored with your message. Low power, interested people: keep these people adequately informed, and talk to them to ensure that no major issues are arising. These people can often be very helpful with the detail of your project. Low power, less interested people: again, monitor these people, but do not bore them with excessive communication. Can you add new stakeholders to change balance? Can you get oppositional stakeholders to leave? Can you increase influence pro-change stakeholders Can influence antagonists be decreased? If too strong, should revisit change proposal?
This may seem like “consulting jargon” – but a sense of control is essential for peoples experience of stressful events. Research on stress shows that the percieved control is a central mediator for stress. How can this sense of control be created in a change proces involving many people? I would like to hear from you: How many of you have been part of what you would consider a participative change process?
Phases?
Stakeholder mapping – Responsible, accountable, consulted, informed The new market plan Risk analysis and mitigation plan Communication plan for All => intranet, Frequent Asked Questions Change agents, workshops, focus groups, pre change involvement Each stakeholder; R esponsible, A ccountable, C onsulted, I nformed Road shows, town hall meetings, themes ... Roll out plan Training Short wins, secure current and new revenue streams Updated Role descriptions, scrap old ones! Cadence systems, scrap old ones! Target letters, scrap old ones! May need union involvement. Incentive plans, scrap old ones! May need union involvement. Early ER/IR, union involvement if major change
Prioritize Your Stakeholders Where do stakeholders place the project? High Use to recruit appropriate team members Change management requires to manage impacted stakeholders with a vested interest in the change and ensuring non impacted vested stakeholders know they are not impacted High power, interested people: these are the people you must fully engage and make the greatest efforts to satisfy. High power, less interested people: put enough work in with these people to keep them satisfied, but not so much that they become bored with your message. Low power, interested people: keep these people adequately informed, and talk to them to ensure that no major issues are arising. These people can often be very helpful with the detail of your project. Low power, less interested people: again, monitor these people, but do not bore them with excessive communication. Can you add new stakeholders to change balance? Can you get oppositional stakeholders to leave? Can you increase influence pro-change stakeholders Can influence antagonists be decreased? If too strong, should revisit change proposal?
How are people to be substituted?
Interaction and engagement is necessary to get the message to stick!!
Who does PM represent: How to select a pm who satisfies all partners? Need PM who really communcates overall picture to all parties to ensure collective competence, can have mgr who just communicates pieces of picture and thus have good project mgt, but to gain collective competence mgt, then need communicator of overall picture Coordination – not just coordinating activities, but also relationships, connecting people, bringing people together, so can build shared understanding. Someone has to bring them together. Project manager – bringing people together. Uses his network, connecting people, building relationships, understanding where the power is in the network. Communication – talking with all people in project.
From Star and Griesemer (1989), boundary objects have several important properties: Boundary Objects Brian Marick [email_address] www.testing.com, www.visibleworkings.com If x is a boundary object, people from different communities of practice can use it as what Chrisman (XXX) calls a COMMON POINT OF REFERENCE for conversations. They can all agree they're talking about x . But the different people are not actually talking about the same thing. They attach DIFFERENT MEANINGS to x . For example, a story card that says "allow alpha chars in customer ID field" might be, to a programmer, a reminder to change class definitions and update a database schema. To the business expert, it might represent an enabling step in merging the operations of two companies. People use boundary objects as a MEANS OF COORDINATION AND ALIGNMENT (Fischer and Reaves 1995). Story cards are a tool XP projects use to align what the programmers build with what the business expert wants. Despite different interpretations, boundary objects serve as a MEANS OF TRANSLATION. If it becomes important that the programmer understand more about business operations being merged, the story card can be used to smooth the process of explanation (for example, by delving more deeply into the meaning of the words on the card). Boundary objects are PLASTIC enough to adapt to changing needs. And change they do, as communities of practice cooperate. Boundary objects are WORKING ARRANGEMENTS, adjusted as needed. They are not imposed by one community, nor by appeal to outside standards (Bowker and Star 1999). The boundary object must satisfy DIFFERENT CONCERNS SIMULTANEOUSLY. In agile projects, the brief task descriptions and the conversation around them satisfies the business expert that something of actual business value will soon be produced while also satisfying the programmers that they are not committing to do more than they can.