The document summarizes an assessment of an organization's capability to handle change projects based on its culture and process management capability. It describes a model that evaluates culture on a scale of 1 to 9 based on factors like individualism vs external focus. It also evaluates process management capability on a 5 level scale. Combining these assessments indicates the organization's overall capability to cope with change and whether a given project's complexity is within that capability.

1. Slidecast 2: Assessing the organisation’s capability gap and its impact on the project’s ROI The Change Equation Or how to avoid a failed change project! Peter Duschinsky Managing Director, The Imaginist Company

10. This is where we all start In this entrepreneurial organisation, it’s results that count The boss may be micro- managing everything or leaving members of the team to do more or less what they like, as long as they achieve results Either way, success is what counts, not how you get there – ‘just do it’ There are some laid-down procedures, but people only follow them or take up a new initiative if they see benefits for themselves in doing so The Management Culture model: Level 1 8 Systemist Imaginist 7 6 Empiricist 5 Pragmatist/Aligned 9 Pragmatist/Empowered 5 1 Pragmatist/Anarchic Structuralist 2 3 Dialectic Aligned 4

11. Rules, devolved authorities and formal procedures govern how this organisation works That has allowed the organisation’s operations to be scaled up, but it will also have allowed ‘silo working’ to emerge, hindering the sharing of ideas and knowledge across the organisation Change is slow and painful; decisions are often passed down, with formal but inadequate consultation; initiatives are not encouraged The Management Culture model: Level 2 8 Systemist Imaginist 7 6 Empiricist 5 Pragmatist/Aligned 9 Pragmatist/Empowered 3 Dialectic Aligned 4 1 Pragmatist/Anarchic Structuralist 2

12. The organisation wasn’t efficient, so management brought in the Business Process Redesign consultants, the LEAN specialists and an ERP system Your organisation is now streamlined, focusing on cost cutting and efficiency, with modern, rationalised and automated processes But it still doesn’t seem to be working very well, does it? Why not? The Management Culture model: Level 3 4 Rationalist 8 Systemist Imaginist 7 6 Empiricist 5 Pragmatist/Aligned 9 Pragmatist/Empowered Structuralist 2 Aligned 4 1 Pragmatist/Anarchic 3 Dialectic

14. Now, as a result of strong leadership and a good level of dialogue between people, the values and aspirations of the staff in your organisation are in line with its policies and strategic direction People feel valued and understand how they fit into the scheme of things, so are more motivated to accept change that will benefit the organisation, even if it doesn’t reduce their workload. Because people and processes are aligned, things work well Sounds like a good place to work, doesn’t it? The Management Culture model: Level 4 8 Systemist Imaginist 7 6 Empiricist 5 Pragmatist/Aligned 9 Pragmatist/Empowered Structuralist 2 1 Pragmatist/Anarchic 3 Dialectic 4 Aligned

15. Once people feel valued and share information the organisation starts to function differently Managers trust their staff to act in the best interests of the organisation Decisions can be made closer to the customer, quickly and effectively Staff are actively encouraged to get involved in innovation and performance improvement initiatives Things get done, change becomes easier The Management Culture model: Level 5 8 Systemist Imaginist 7 6 Empiricist 9 Pragmatist/Empowered Structuralist 2 1 Pragmatist/Anarchic 3 Dialectic Aligned 4 5 Pragmatist/Aligned

16. Now the organisation is not so inward-facing and obsessed with internal power-plays, it can function better in the ‘real world’ Key information about your customers, suppliers, competition etc. flows across departments, as well as up and down the management hierarchy Because it does not suffer delays or distortion from passing through departmental silos, the information is timely and accurate, which means that management decisions are well-informed and effective The Management Culture model: Level 6 8 Systemist Imaginist 7 9 Pragmatist/Empowered Structuralist 2 1 Pragmatist/Anarchic 3 Dialectic Aligned 4 6 Empiricist 5 Pragmatist/Aligned

17. Because your organisation is working well, senior managers are not focused on short-term fire-fighting and intervention, allowing them the time to concentrate on longer-term planning and more important issues They are operating with timely and accurate information, which means they can make intuitive, high quality and far-reaching decisions - and that means the organisation is able to cope well with change This requires a different calibre of manager, the Imaginist The Management Culture model: Level 7 8 Systemist 9 Pragmatist/Empowered Structuralist 2 1 Pragmatist/Anarchic 3 Dialectic Aligned 4 5 Pragmatist/Aligned 7 Imaginist 6 Empiricist

18. The organisation now recognises its place in its business, economic, social and community contexts – and plans and manages accordingly Your CEO makes him/herself visible and available, and is vocal in championing changes and issues that are critical to the organisation’s success, but his/her leadership style is to steer from behind and focus on building longer-term capability, rather than intervening in operational issues This works because the organisation has a strong and effective Board and an aligned workforce The Management Culture model: Level 8 9 Pragmatist/Empowered Structuralist 2 1 Pragmatist/Anarchic 3 Dialectic Aligned 4 5 Pragmatist/Aligned 6 Empiricist Imaginist 7 8 Systemist

19. Finally, if you are lucky enough to be working in an organisation that has set itself the challenge of being the best in class: You are fully empowered to plan and manage your own workload, within a supportive management culture This includes working collaboratively in teams and leading and participating in change projects, to continually improve the effectiveness of the organisation to meet its customers’ needs This is a learning organisation We’re a long way from the culture of blame and focus on short-term gain, where we started The Management Culture model: Level 9 Structuralist 2 1 Pragmatist/Anarchic 3 Dialectic Aligned 4 5 Pragmatist/Aligned 6 Empiricist Imaginist 7 9 Pragmatist/ Empowered 8 Systemist

20. Where are you? Structuralist 2 1 Pragmatist/Anarchic 3 Dialectic Aligned 4 5 Pragmatist/Aligned 6 Empiricist Imaginist 7 9 Pragmatist/Empowered 8 Systemist EXTERNAL AXIS (Organisation) INTERNAL AXIS (Individual)

25. Where on the exponential complexity scale was your project? ? Was it significantly further up the scale than you had thought?

31. Measuring Trust The higher the levels of distrust, the more time and effort the project will require and the higher the cost, so add at least 55% to planned time and cost 55% High Low