Keys to Mastering Organizational Change
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Roberts Golden's take on what it will take to make change and drive collaboration in the new enterprise.
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Keys to Mastering Organizational Change
- 1. Organization Next Workshop Enterprise 2.0 Santa Clara – Change *Management* & the New Workspace Sara M. Roberts (sara@robertsgolden.com) Twitter: @RobertsGolden November, 2011 44 Montgomery, Suite 600 | San Francisco, CA | 94104 | +1-415-641-5523 | www.robertsgolden.com
- 2. What would it take to make change?
- 4. The keys to mastering change • Reframe it • Help them envision it • Leader as coach – no more, no less • Engage them • Give them constant guidance and the skills • Work right alongside them while they’re making the change • Ensure accountability for new behaviors 4
- 5. Taking a holistic approach to driving transformative change – the components haven’t changed; the way we leverage them does To drive and sustain change in organizations, it’s critical that these dimensions are aligned and flexible enough to promote agility… 5
- 6. Making change happen… • Change is not a straight line so we can’t manage it that way - the path will be fuzzy and we won’t know exactly how to get there • Aligning the heart, head and hands Engaging & influencing: • What people think (their intellectual connection) • What people feel (their emotional commitment) • How people get their work done (their environment) • It’s actually about SEE > FEEL > CHANGE • We believe that change happens as a result of analyze > think > change but in reality this is how most change happens 6
- 7. From then to now…what’s the change imperative? Twentieth Century Today • Quantity, Quality, Cost • Harnessing and Mobilizing Intelligence • Making & selling efficiently • Produce enough to meet • Using one’s particular knowledge and demand capacities in ways that contribute to the • Distribute in mass market success of the whole • Standardize & maximize • Combining different types of knowledge efficiency and expertise to come up with something better • Organizations that mastered these • Harnessing the smallest units of knowledge capabilities dominated the twentieth- • Continually learning & improving processes century economy and routines • Bureaucratic systems optimized • Customizing relationships with customers, core processes: suppliers and others • Division of responsibility – • Detecting and responding rapidly to needing only top leaders to market and environmental shifts worry about the overall goals • Each worker freed to develop a component skill Based on Tamara Erickson’s research 7
- 8. And, because things are changing so rapidly, we will need to build our organizational dexterity… Agility: an enterprise’s capacity to be consistently adaptable and the efficiency with which it can respond • What would agility look like? • Distributed decision making – top down, middle out, bottom up (all around) • The freedom to act (within clear parameters) • Sensing and critical thinking skills applied rapidly • Able to recognize patterns and act quickly – analytical coupled with accelerated moves • Effectively leverage skills in scenario planning and the like 8
- 9. Where does collaboration & agility come together? • Creating and exchanging knowledge and intangibles through interactions with their peers is at the heart of what employees will need to do. • If the mindsets, skillsets, incentives and tools are not there – collaboration erodes -- finding people and knowledge becomes more difficult, social cohesion and trust among colleagues declines and that all further reduces productivity. • Collaboration though is not required for everything…it’s not inherently productive so we must understand where and when to use it for best results. 9
- 10. The Symptoms: Numerous barriers to collaboration that need to be addressed – separate, apart from and together with the tools 1 Not-invented- • People are unwilling to go outside their own unit to seek input from others here 2 • People are unwilling to help and share Hoarding what they know 3 Search • People who look for information and people who cannot easily find them 4 • People are unable to transfer knowledge Transfer easily from one place to another Based on Morten Hansen’s research 10
- 11. 1 Not-Invented-Here Barrier • Communication mainly inside a group Insular culture • People who work together develop an insular culture • Don’t want to cross status lines or are Status gap penalized for doing so • People tend to “choose the right pond” • Deep-seated belief that people should be Self-reliance able to solve their own problems instead of asking for help • Do not want to reveal problems because Fear may be interpreted as failure or vulnerability Based on Morten Hansen’s research 11
- 12. 2 Hoarding Barrier • Competition with colleagues & units Competition undermines collaboration Narrow • Rewards for own goals • People are often rewarded only for how incentives well they do their jobs • No time to help others Too busy • People perceivably are faced with trade- off: do own work or help others • If people fear they will be less powerful Fear or less valuable to the organization by spreading wisdom, they will hoard it Based on Morten Hansen’s research 12
- 13. What is the challenge ahead for our workers? • Individuals – and how they leverage the collective - will need to step up and will be asked to contribute at a higher level • Dealing with rich content that flows through an infinite number of links • Hierarchies used to simplify the patterns of interaction • Making decisions about what to share –with whom; what to ignore • Digging deep for innovative ideas 13
- 14. The new rules of motivating…$ isn’t the primary motivator for this new work… • Meaning is the new money – and balance is the new Benjamins… • Fair compensation is simply table stakes • It’s not one size fits all – know your audiences • Use behavioral economics & gaming concepts to motivate – • Exploration • Achievement • Socialization • Competition 14
- 15. The game is changing… Bureaucratic Hierarchy Collaborative Enterprise Standard of Technical competence, Contribution to the success of Performance conscientiousness, consistency – the mission “Doing a good job” Regulation of Respect for rules Engagement in experimentation behavior and co-design Peer Individual autonomy–and conflict Dialogue –challenge, debate, relationships avoidance openness to critique Based on Tamara Erickson’s research 15
- 16. So, we must drive a new culture and organizational capability to support that… • How people act Behaviors • Interactions • Learn the problem • Create options Process • Make choices • Create accountability • Where decisions are made Organizational • Rewards principles • • Common goals Learning system Source: The New How – Creating Business Solutions through Collaborative Strategy by Nilofer Merchant 16
- 17. Which requires new options for managing performance… • To motivate the collaborative behavior to make the new org model work – companies must create metrics that hold employees individually accountable for their contribution to collective success. • A few considerations: • Team-based, with the ability of the team to choose members or throw non- performing members “off the bus” • Network-based, the ability for all that interact and rely on an individual to weigh in on performance • Individually-based, with the ability of peers to assess the individual’s contribution to the success of the mission A few notes: • Leaders cannot accurately judge collaborative contributions • Team-based rewards, without the ability of the team to judge peer contributions, don’t work 17
- 18. Our structures will need to change… • From silos of specialization and strict division of responsibility TO enabling peer and associational relationships… • Realizing that our vertical organizational structures retrofitted with matrix overlays is only making work much more complex and inefficient. • We will need to move more towards a fluid, collaborative, distributed organization and operating model • Decision-making in the value zone • Tools to enable information and knowledge flows among colleagues • Consideration of the key connections will come first 18
- 19. The way we manage and get work done will need to change too… • Leadership: Cultivating & coordinating; not commanding & controlling • Encourage employees to challenge business practices, values, operating models and work processes so they learn relevant information needed to keep business results on track. Ask more questions than give answers. • Setting goals globally, enabling execution locally • Environment: Results focused & rapid resourcing • Results only workplace - No time for micromanaging – just time for getting things done the best way you can • Not relying on one to three year initiatives to make change happen – will have systems in place to measure progress and use data to proactively reallocate resources to better achieve goals. Organization will need to be ambidextrous. 19
- 20. Maybe most fundamentally, making this shift will require we have a foundation of trust & engagement • The *new* change management is needed for this – it’s not “buy-in” – it’s “ownership” and “involvement” • Empowering employees to make decisions – will require a leadership change and shift but equally will require shifting the identity of employees and helping frame what’s possible for them and how they can contribute Moving from bots to free-thinking (not necessarily free-wheeling) human beings… 20
- 22. About Roberts Golden • Roberts Golden is an organization performance and change management consulting firm that helps large, global companies solve organizational issues, engage employees and manage major changes to achieve bold business objectives. • Senior, seasoned consultants with deep expertise and proven results in organizational effectiveness, change management and employee engagement to drive significant business transformation. • Recognized for our innovative work with a number of Fortune Global 500 companies to drive business organizational and culture transformation. 22
- 23. Roberts Golden President/CEO – Sara Roberts • Sara Roberts is a recognized change management consultant, keynote speaker and author who has provided strategic guidance to dozens of the world’s top companies over the past 15+ years. Her expertise is in global change management, culture transformation and operational and organizational effectiveness. She and her team have worked in the US, Europe, and Asia with numerous Fortune Global 500 companies across a variety of industries. Prior to founding Roberts Golden, Sara held senior consulting positions within companies including Sprint, Andersen Consulting (now Accenture) and Ketchum. • Sara is the co-author of the best-selling book, Light Their Fire: Using Internal Marketing to Ignite Employee Performance and Wow Your Customers (Kaplan 2005) and is a frequent keynote and workshop presenter at leading business conferences such as Gartner, Enterprise 2.0, The Conference Board and others on the topics of culture change, change management and enterprise collaboration and has been quoted in numerous publications including BusinessWeek, Inc. and Forbes. She received her M.S. in Instructional Technology from the University of Nebraska. 23
- 24. What Does Our Work Look Like? – Our Products • Organizational model and transition plans • Culture and organizational readiness assessment • Defining use cases for social networking and other tools & developing business cases • Audit report of findings and recommendations • Leadership alignment facilitation and coaching • Change execution roadmap • New behavior definition • Governance structure and processes • Stakeholder engagement • Employee communications & internal marketing strategy & plans • Messaging by audience • Execution • Training on new processes, platforms… • Roadshows, webinars, eLearning, immersion sessions • Measurement strategy and tools • Rewards / performance objectives alignment 24
- 25. Connecting With Roberts Golden Learn more at : www.robertsgolden.com Follow us: @RobertsGolden Call or email -- Sara Roberts, President/CEO sara@robertsgolden.com Headquarters office: 44 Montgomery Street, Suite 600 San Francisco, CA USA 94104 +1-415-641-5523 (o) 25
Editor's Notes
- To drive and sustain change in our organizations, we’ll have to look at it holistically – not just one answer but rather all the elements working together in alignmentWe will need to adjust our: Decision-making processes Roles and structures performance management culture technology management and leadership practices processes communication channels (incl. the back channel) measures and analysis change management rewards
- So, those are the elements but I want to also give you a few things to think about in making change happen and stick… This *new* change methods will require ideation and innovation techniques vs. a linear approach – in managing change, you systematically move it forward step A, step B, step C. In driving and leading change, you need a strong beginning and strong end. The middle needs to be flexible. You don’t need to anticipate every turn in the road between today and the destination. Just as Dan pointed out, it’s not that planning the whole journey is undesirable, it’s that it’s impossible. There are no more answers only more questions on the path.We believe that change happens as a result of analyze > think > change (you analyze, then you think and then you change) but in reality most change situations are better addressed planning for SEE > FEEL > CHANGE (you’re presented with evidence that makes you feel something, i.e., could be a disturbing look at the problem, a hopeful glimpse of what it could be like or a sobering reflection of current habits).
- Was:Product-focused–Developing them, improving them, making them efficiently, selling them effectivelyScale–How to produce “enough” to meet rapidly expanding consumer demand?Scope –How to distribute for a mass consumer market?Quality and cost –How to standardize and maximize efficiency? Now:The goal is how do we harness and mobilize intelligence…It’s about customization (not one-size-fits-all)
- and because we will need to detect and respond quickly, rather than the slow moving change initiatives of the past – a critical skillset, for all employees, will be change dexterity…ever-change capabilities… In a few minutes, you’ll get a chance to exercise your change agility muscles…
- So, it’s important that we harness and mobilize intelligence – this is where I think collaboration and agility will come together. we need vital information to make decisions quickly – and that won’t be independent. We may be empowered to act but that will come from being part of a collective.If we create social environments, people we thought weren’t knowledge workers, actually are – aren’t defined by their workplace, role, responsiblities…
- Fortune 500 healthcare company – using collaboration tools when they’re not ready – no comments turned into 800 comments
- Let’s explore a little more deeply -
- Let’s explore a little more deeply -
- The collective (your group, team, organization) will need to step up…
- we’ve been trying to take a one-size fits all approach – and it doesn’t work the future will be really knowing the strengths, capabilities, unique motivators of each of our employees – managers and leaders will lead to that and hire to that principles of behavioral economics apply here – interesting tidbit, I think, you can look to gaming to see why people are motivated to do what they do.
- As we all know, simply telling people what needs to be done is rarely enough to produce action.For this to work, we need to have a way for many people, regardless of title or rank, to participate in setting and executing direction.In way of behaviors and actions, we will see it become ever more important to be able to build up, tear down and reconstruct ideas. Again, the agility quotient.The new way will be to seek shared ownership of ideas and the ranking of them based on their merit – that is, shifting toward a meritocracy of ideas.It all sounds good but this hasn’t been the way we’ve operated in the past. It will raise the stakes for all the people involved. Now that people are truly invited to actively participate, they need to come fully present with their points of view and willing to engage in setting direction. No more passively awaiting direction. Whether people choose to fully engage is deeply influenced by the behaviors and attitudes of the company’s leadersIn way of process, it will appear we need to go slow to go fast – of course our processes can’t take forever but we will need one that supports the appropriate participatory investigationOur processes must also help translate the inherent tensions of a problem into constructive energy. Without debate in our cultures, issues will not be surfaced and people will find it difficult to aim at the right target. Organizations that squash debate typically will jump the gun by getting started on problem solving before they really understand what the problem is.Our organizational principles will need to be aligned with where we’re going: driving decisions locally, setting up incentives that reward common success, defining common goals and making continuous improvement, fast failure and learning a key function of the organization.
- I talked a bit about having common goals and collective rewards – let’s talk about what that means in terms of managing performanceWhen the managers of any of the 143 Whole Foods supermarkets in North America decide to hire someone, they know their decision is really only a recommendation. Before becoming a permanent employee, every job candidate works for a 30-day trial period in one of their store’s departments, such as produce, bakery, or prepared foods, and then the whole departmental team votes on whether to keep the candidate.The vote is not a popularity contest. Because team members get a monthly bonus based on their department’s labor efficiency, they’re motivated to think very carefully about new hires. They know that the people they select will directly affect their own pay.So, in other words, team members can throw non-performing team members off the bus; they’re incented as a team and work together to meet local objectives aligned with / derived from global objectives
- Current structures do very little to enhance productivity of professionals. The vertical organizational structures retrofitted with ad hoc and matrix overlays, make work much more complex and inefficient.Professionals cooperate horizontally with one another but the vertical structures force them to connect across poorly connected silos to find knowledge and potential collaborators (who are often not incented to work and cooperate with them anyway)If successful collaboration starts with connections, where do we start?Identify the core value proposition of a networkIdentify the critical relationships that must exist for the network to support strategic objectivesAssess existing collaboration and alignment between the current and the ideal networkCreate an organization that enables the right networks to flourish and develop over timeNo silver bullet or just one answer -- we will need to ask, for our organizationsWhat are we trying to do?Who needs to be connected with whom?Who is already connected?How can we foster the connections we need?
- Provide some stories about how that’s working scripting critical moves – not micromanagingOld Navy example of ROWE Ambidextrous org – what does that look like? Standards, conformance where it matters – flexibility where it doesn’t…
- Part of making the shift is going to require that we have a foundation of trust and engagement – we’ve generally had such a weak history of this that we have to get the foundation in place to make this happen… I’ve seen a couple examples – of this – a large insurance company – here’s what happened…. This will better enable strategy-execution cascade and agility