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14 msb.georgetown.edu
Change
By Chris Blose
For a change management consultant dealing with government
agencies, the ideal situation is this:You walk in on day one, and
everyone welcomes you with open arms.The leaders are gung-ho
about the task at hand — whether it be installing a new technology
system, merging two disparate cultures, or completely overhauling
the organizational structure.
The employees are equally enthusiastic.They chat over coffee and
donuts about just how excited they are by the change, which is laid
out in clear and understandable terms for all.You, the consultant,
are given complete access to all the resources, space, and people
you need to get the job done.
A new executive education program — the first of its kind —
puts the pieces of change management together.
The
Business
of
Randy
Lyhus
15
Georgetown University McDonough School of Business
e
16 msb.georgetown.edu
Contrastthatwithamoretypicalscenario:
You come into an organization and have to
execute damage control on day one.You are
offered a spot in a basement office — out
of sight, out of mind.The leader is a politi-
cal appointee whose days are numbered.The
employees have not heard anything about
the realities of the change or what it means
to their careers, so they gossip around the
water cooler and imagine the worst. And to
top it all off, Congress is publicly thrashing
your client.
Where does that leave you? If you
have participated in the new Change
­
ManagementAdvancedPractitioner(CMAP)
­
program, offered by Georgetown Univer-
sity’s McDonough School of Business and
consulting firm Booz Allen Hamilton, you
are in good shape.You will be prepared to
apply the various tools of change manage-
ment to the case in front of you, whether it
falls in the realm of the ideal, the chaotic,
or anywhere in between.
Kristopher Campbell, a Booz Allen
­
Hamilton associate and one of the CMAP
program’s first graduates, says change can
come from a number of drivers, but the goal
of change management is always the same.
“It could be an organizationwide trans-
formation or one subset,” Campbell says.
“It can be driven by legislation, new tech-
nology, or new leadership. It’s really the
practice of creating an organized and logi-
cal way to bring an organization from point
A to point B.”
Broadly defined, change management is
Jim Milne, Nicole Vichi, and Kristopher Campbell
of Booz Allen Hamilton were among the first
graduates of the new change management program.
17
Georgetown University McDonough School of Business
­
management — to create a desired effect. It
takes the right blend to make change really
stick, to make it real.”
Theory Meets Practice
“There is no Change Management for Dummies,”
says Brooks Holtom, an associate profes-
sor and academic director for the CMAP
program.
Holtom notes that change management
is a complex process that requires a solid
grasp of both theory and practice.Although
many academics and practi­
tioners have
written about change management, few
have attempted to bring all the literature
and practical lessons together in one place.
That was Booz Allen Hamilton’s goal
when it first developed the idea for CMAP.
After a competitive process, the firm chose
to partner with Georgetown’s McDonough
School of Business Executive Education
program because of the school’s reputation
and relationships in Washington, D.C., and
assets in the realm of change management.
“We were able to apply and integrate
our faculty’s expertise in the areas of leader-
ship, culture, human capital management,
strategy, and operations management into a
comprehensive,graduate-level change man-
agement program,” says Gordon Swartz,
associate dean for executive education.
Working together, Georgetown faculty
and Booz Allen Hamilton practitioners per-
formed an extensive review of the available
literature, delving into standards such as
John P. Kotter’s Leading Change and popular
fare such as Malcolm Gladwell’s Blink. They
also called on internal expertise and lessons
“It can be driven
by legislation, new
technology, or new
leadership. It’s
really the practice
of creating an
organized and
logical way to bring
an organization from
point A to point B.
”
— Kristopher Campbell
just that: broadly defined. Consultants have
been involved in change work for years,
though often with a narrower focus on
individual areas such as communications,
project management, IT consulting, train-
ing and development, business restruc-
turing, or workforce planning. The CMAP
program was born in part out of the rec-
ognition that the best practitioners under-
stand how all of these pieces fit together as
a whole.
“To me, change management is like
conducting an orchestra,” says Maria
Darby, a vice president at Booz Allen
Hamilton who has led large-scale transfor-
mations for high-profile clients such as the
U.S. Department of Homeland Security and
the IRS. “The conductor draws upon the
various instrumental sections to create a
certain musical effect. Similarly, the change
management practitioner draws upon
a diverse set of disciplines — business
process, human capital strategy, strategic
communications, learning, performance
Cameron
Davidson
18 msb.georgetown.edu
learned from past change management proj-
ects, and then put together a curriculum for
the CMAP program. The first cohort of 25
Booz Allen Hamilton employees ­
finished in
August, and the program will educate 100
by the end of the year.The goal is to triple
that number in 2010.
Increasing credibility for the field is one
of CMAP’s priorities. “I think there are a lot
of people selling snake oil,” Holtom says.
“They say they do change management,
and maybe they do a piece of change man-
agement, like human capital consulting or
change communications, but they don’t do
all that is involved in large-scale transfor-
mation. It is important to recognize that
there are some people doing comprehen-
sive change management well.”
Official recognition is only one goal of
the program, however. Research shows that
70 to 80 percent of major change efforts
fail. CMAP looks at why they fail — and
how to help clients fall among the 20 to 30
percent that succeed — by taking a com-
prehensive look at transformation.
To reach that goal, the CMAP program
examines the top thinkers and models in
the field using an academic approach, and
then marries theory to practice. George-
town faculty and BoozAllen Hamilton lead-
ers such as Darby and fellow vice president
David Humenansky draw on their years of
experience helping high-profile govern-
ment clients navigate drastic transforma-
tions. For example, Dave Mader, now a vice
president, was a key executive during the
IRS transformation and brings his real-
world experience to the classroom.
Bringing theory and practice together
is crucial, Campbell says: “Theory is just
theory if clients don’t buy into it. I can
sit in front of a client all day long and tell
them that this is what a bunch of Harvard
and MIT experts say you should do, but
that doesn’t mean anything unless there’s a
practice approach to back it up.”
And when it comes to both practical
approaches and theoretical models, one
size does not fit all. When Nicole Vichi, a
BoozAllen Hamilton associate and graduate
of CMAP, first heard about the program, its
comprehensive nature appealed to her.
“What works will vary so much from
client to client,”Vichi says. “It’s great to be
able to hold these models and approaches
up side by side to compare and contrast
them, and to see the thought processes
involved.”
The primary goal is to give practitioners
an expansive set of tools so they can assess
and apply the ones they need to work in any
given situation. Such flexibility is crucial to
BoozAllen Hamilton employees, whose cli-
ents exist in the government realm, which
is constantly in flux with changing political
priorities, appointed officials, and policies.
Humenansky describes change manage-
ment as both a science and an art. It’s more
than following a checklist, as would a sys-
tems engineer; you must be able to read the
people and culture around you and figure
out which combination of techniques will
work there.
Providing a broad range of techniques
has another benefit, too, Humenansky says.
If one idea does not work, a skilled practi-
tioner can move on to another.
“One of the critical success factors for a
change program is active leadership engage-
ment, support of the top dog,” Humenan-
sky gives as an example.“Well, what do you
do if it’s not there? Give up? What are the
techniques you bring to bear? That’s what
this course is about.”
Constants of Change
Regardless of the model or approach, a
few constants exist in change management.
Humenansky alluded to one of the most
crucial: leadership.
Jim Milne, another BoozAllen Hamilton
senior associate and CMAP graduate, has
seen both the worst kind of leadership —
dictatorial, isolated, not seeking or accept-
ing employee input — and, in a current
project, the best kind. He is working with
an intelligence organization fusing two
missions and cultures into one. The task is
tricky, but the leadership factor is working
in the group’s favor.
“It’s ideal because we have tremendous
leadership support and advocacy, first and
foremost,” Milne says. “No strategy effort
can be effective without it. We have clear,
documented mandates, so there’s absolute
urgency for them to figure this out.”
The fact that Milne’s client has clear
mandates leads to another pillar of change
management: communication. In the ideal
setting, every person affected by change has
a thorough understanding of that change,
understanding that can be gained only
through effective, strategic communication.
But many cases are not as ideal as Milne’s,
says Campbell. “What ends up happening,
if you fail to communicate, is you get the
water cooler talk of what’s going on here
and what’s going on there,” he says.“If you
don’t do good corporatewide communica-
tions, it negatively impacts morale. People
start getting the wrong information, if they
get any information at all.”
19
Georgetown University McDonough School of Business
A good communications plan is often
the first step in a transformation, especially
given how crucial it is to create employee
buy-in. For change to work, you have to
persuade as many employees as possible to
believe in its benefits, both for the company
and for them on an individual “What’s in it
for me?” level.
As pervasive and important as strong
leadership and effective communication
are, change encompasses much more. A
change management practitioner needs
to understand human capital, particularly
as it relates to the flow of talent and skills
in and out of an organization. Who stays?
Who goes? Who has the skills to work in
the organization as envisioned after the
change? The latter question then leads to
training and development needs, business
restructuring, and other important aspects
of the field.
Therein lies the strength of the CMAP
approach, Milne says. He entered the pro-
gram with strengths already well developed
in strategic planning and communication,
plus performance management. “Coming
out of this course, I built greater depth in
those areas and learned more about all of
the other facets of change management,”
he says, “how interdisciplinary it is, and
how all the moving parts work together.”
Vichi and Campbell both echo Milne’s
assessment. In the past, Campbell focused
mostly on performance management, but
now he thinks about other pieces of the
puzzle, such as human capital.
“We all manage change,”Vichi says,“but
there is something to be said for someone
who has really studied all the different tools
and theories, really understands the differ-
ent nuances and differences between them,
and is able to work with other experts to
cover all the different implications. This
program provides practitioners with a
really well-rounded toolkit.”
Learning While Doing, Doing While Learning
The CMAP program also provides students
with a room full of other experts — fellow
students — from whom and with whom
to learn.
Thecoursetakesadvantageofthisgroup’s
knowledge through an “action-learning
project,” a centerpiece problem based in
reality and practicality. Holtom describes it
as a “SkunkWorks” project.
Students divide into five teams of five —
named Booz, Allen, Hamilton, Hoya, and
Saxa, affectionately. Each person in each
group brings a proposal from a real-life
­
client problem, and the team decides
together which problem to tackle.
“We ask, ‘What is the biggest, hairiest,
most challenging aspect of this engage-
ment, and what could we gain by examin-
ing theory and best practices in this proj-
ect?’” Holtom says.
Vichi’s group chose her proposal for its
action-learning project. It deals with the
Federal Aviation Administration’s (FAA)
implementation of a system safety approach
to regulatory oversight, which is spurred by
a number of drivers,including new interna-
tional regulations and safety requirements,
recent concerns over airline safety, and an
increasing number of travelers flying in a
fixed amount of airspace.
Holtom uses a particularly apt meta-
phor for this project: “There is a simulta-
neous challenge of flying an airplane while
rebuilding it,” he says. “That’s exactly what
is happening when you’re a government
agency providing services, and you are
asked to transform.” With the FAA, there
will be zero tolerance from the government
or the public when it comes to making mis-
takes while the change is in process. Even as
the agency overhauls itself, every plane still
has to get where it is going safely.
With that in mind,Vichi and her team-
mates applied freshly learned or honed
skills to a real-time problem.“We sat down,
looked at the problem statement, and used
tools from the class to prioritize focus areas
that needed to be addressed for transforma-
tion to be seamless and effective. Knowing
where they needed to go, we said,‘In order
to get them there, we must address these
things first.’”
Communication became a top priority.
The FAA’s change is almost a paradigm shift
for much of the workforce doing safety
oversight, Vichi says, so communication is
essential to creating buy-in.
To begin to do that,Vichi and her team-
mates examined tools from the CMAP
course, including the Patterson-Connor
Commitment Curve, which tracks where
people are in terms of commitment to the
new way of doing business. Vichi and her
teammates learned from a real example
during the project, and, in turn, Vichi has
made viable communication recommenda-
tions to the client.
Likewise, Milne says he has taken lessons
learned directly from the program into
his day-to-day work with his client, the
intelligence organization that is trying to
merge two cultures. “The course has really
informed my thinking about how to do the
heavy lifting around the cultural change,
which is a deal breaker for this particular
organization,” he says.
The biggest value of the program to
Campbell is the all-encompassing and flex-
ible set of tools it provides.
“Prior to this class,” he says, “I never
thought about change management the
way I’ll think about it now. It was always
some specific aspect. We were going to be
technology consultants, or human capital
consultants, or strategy consultants. Now I
see the holistic approach to change man-
agement.That’s where we can now add a lot
of value for our clients.” w
“There is a
simultaneous challenge
of flying an airplane
while rebuilding it.
That’s exactly what is
happening when you’re
a government agency
providing services,
and you are asked to
transform.
”
— Brooks Holtom
Phil
Humnicky
Brooks Holtom

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The Business of Change

  • 1. 14 msb.georgetown.edu Change By Chris Blose For a change management consultant dealing with government agencies, the ideal situation is this:You walk in on day one, and everyone welcomes you with open arms.The leaders are gung-ho about the task at hand — whether it be installing a new technology system, merging two disparate cultures, or completely overhauling the organizational structure. The employees are equally enthusiastic.They chat over coffee and donuts about just how excited they are by the change, which is laid out in clear and understandable terms for all.You, the consultant, are given complete access to all the resources, space, and people you need to get the job done. A new executive education program — the first of its kind — puts the pieces of change management together. The Business of Randy Lyhus
  • 2. 15 Georgetown University McDonough School of Business e
  • 3. 16 msb.georgetown.edu Contrastthatwithamoretypicalscenario: You come into an organization and have to execute damage control on day one.You are offered a spot in a basement office — out of sight, out of mind.The leader is a politi- cal appointee whose days are numbered.The employees have not heard anything about the realities of the change or what it means to their careers, so they gossip around the water cooler and imagine the worst. And to top it all off, Congress is publicly thrashing your client. Where does that leave you? If you have participated in the new Change ­ ManagementAdvancedPractitioner(CMAP) ­ program, offered by Georgetown Univer- sity’s McDonough School of Business and consulting firm Booz Allen Hamilton, you are in good shape.You will be prepared to apply the various tools of change manage- ment to the case in front of you, whether it falls in the realm of the ideal, the chaotic, or anywhere in between. Kristopher Campbell, a Booz Allen ­ Hamilton associate and one of the CMAP program’s first graduates, says change can come from a number of drivers, but the goal of change management is always the same. “It could be an organizationwide trans- formation or one subset,” Campbell says. “It can be driven by legislation, new tech- nology, or new leadership. It’s really the practice of creating an organized and logi- cal way to bring an organization from point A to point B.” Broadly defined, change management is Jim Milne, Nicole Vichi, and Kristopher Campbell of Booz Allen Hamilton were among the first graduates of the new change management program.
  • 4. 17 Georgetown University McDonough School of Business ­ management — to create a desired effect. It takes the right blend to make change really stick, to make it real.” Theory Meets Practice “There is no Change Management for Dummies,” says Brooks Holtom, an associate profes- sor and academic director for the CMAP program. Holtom notes that change management is a complex process that requires a solid grasp of both theory and practice.Although many academics and practi­ tioners have written about change management, few have attempted to bring all the literature and practical lessons together in one place. That was Booz Allen Hamilton’s goal when it first developed the idea for CMAP. After a competitive process, the firm chose to partner with Georgetown’s McDonough School of Business Executive Education program because of the school’s reputation and relationships in Washington, D.C., and assets in the realm of change management. “We were able to apply and integrate our faculty’s expertise in the areas of leader- ship, culture, human capital management, strategy, and operations management into a comprehensive,graduate-level change man- agement program,” says Gordon Swartz, associate dean for executive education. Working together, Georgetown faculty and Booz Allen Hamilton practitioners per- formed an extensive review of the available literature, delving into standards such as John P. Kotter’s Leading Change and popular fare such as Malcolm Gladwell’s Blink. They also called on internal expertise and lessons “It can be driven by legislation, new technology, or new leadership. It’s really the practice of creating an organized and logical way to bring an organization from point A to point B. ” — Kristopher Campbell just that: broadly defined. Consultants have been involved in change work for years, though often with a narrower focus on individual areas such as communications, project management, IT consulting, train- ing and development, business restruc- turing, or workforce planning. The CMAP program was born in part out of the rec- ognition that the best practitioners under- stand how all of these pieces fit together as a whole. “To me, change management is like conducting an orchestra,” says Maria Darby, a vice president at Booz Allen Hamilton who has led large-scale transfor- mations for high-profile clients such as the U.S. Department of Homeland Security and the IRS. “The conductor draws upon the various instrumental sections to create a certain musical effect. Similarly, the change management practitioner draws upon a diverse set of disciplines — business process, human capital strategy, strategic communications, learning, performance Cameron Davidson
  • 5. 18 msb.georgetown.edu learned from past change management proj- ects, and then put together a curriculum for the CMAP program. The first cohort of 25 Booz Allen Hamilton employees ­ finished in August, and the program will educate 100 by the end of the year.The goal is to triple that number in 2010. Increasing credibility for the field is one of CMAP’s priorities. “I think there are a lot of people selling snake oil,” Holtom says. “They say they do change management, and maybe they do a piece of change man- agement, like human capital consulting or change communications, but they don’t do all that is involved in large-scale transfor- mation. It is important to recognize that there are some people doing comprehen- sive change management well.” Official recognition is only one goal of the program, however. Research shows that 70 to 80 percent of major change efforts fail. CMAP looks at why they fail — and how to help clients fall among the 20 to 30 percent that succeed — by taking a com- prehensive look at transformation. To reach that goal, the CMAP program examines the top thinkers and models in the field using an academic approach, and then marries theory to practice. George- town faculty and BoozAllen Hamilton lead- ers such as Darby and fellow vice president David Humenansky draw on their years of experience helping high-profile govern- ment clients navigate drastic transforma- tions. For example, Dave Mader, now a vice president, was a key executive during the IRS transformation and brings his real- world experience to the classroom. Bringing theory and practice together is crucial, Campbell says: “Theory is just theory if clients don’t buy into it. I can sit in front of a client all day long and tell them that this is what a bunch of Harvard and MIT experts say you should do, but that doesn’t mean anything unless there’s a practice approach to back it up.” And when it comes to both practical approaches and theoretical models, one size does not fit all. When Nicole Vichi, a BoozAllen Hamilton associate and graduate of CMAP, first heard about the program, its comprehensive nature appealed to her. “What works will vary so much from client to client,”Vichi says. “It’s great to be able to hold these models and approaches up side by side to compare and contrast them, and to see the thought processes involved.” The primary goal is to give practitioners an expansive set of tools so they can assess and apply the ones they need to work in any given situation. Such flexibility is crucial to BoozAllen Hamilton employees, whose cli- ents exist in the government realm, which is constantly in flux with changing political priorities, appointed officials, and policies. Humenansky describes change manage- ment as both a science and an art. It’s more than following a checklist, as would a sys- tems engineer; you must be able to read the people and culture around you and figure out which combination of techniques will work there. Providing a broad range of techniques has another benefit, too, Humenansky says. If one idea does not work, a skilled practi- tioner can move on to another. “One of the critical success factors for a change program is active leadership engage- ment, support of the top dog,” Humenan- sky gives as an example.“Well, what do you do if it’s not there? Give up? What are the techniques you bring to bear? That’s what this course is about.” Constants of Change Regardless of the model or approach, a few constants exist in change management. Humenansky alluded to one of the most crucial: leadership. Jim Milne, another BoozAllen Hamilton senior associate and CMAP graduate, has seen both the worst kind of leadership — dictatorial, isolated, not seeking or accept- ing employee input — and, in a current project, the best kind. He is working with an intelligence organization fusing two missions and cultures into one. The task is tricky, but the leadership factor is working in the group’s favor. “It’s ideal because we have tremendous leadership support and advocacy, first and foremost,” Milne says. “No strategy effort can be effective without it. We have clear, documented mandates, so there’s absolute urgency for them to figure this out.” The fact that Milne’s client has clear mandates leads to another pillar of change management: communication. In the ideal setting, every person affected by change has a thorough understanding of that change, understanding that can be gained only through effective, strategic communication. But many cases are not as ideal as Milne’s, says Campbell. “What ends up happening, if you fail to communicate, is you get the water cooler talk of what’s going on here and what’s going on there,” he says.“If you don’t do good corporatewide communica- tions, it negatively impacts morale. People start getting the wrong information, if they get any information at all.”
  • 6. 19 Georgetown University McDonough School of Business A good communications plan is often the first step in a transformation, especially given how crucial it is to create employee buy-in. For change to work, you have to persuade as many employees as possible to believe in its benefits, both for the company and for them on an individual “What’s in it for me?” level. As pervasive and important as strong leadership and effective communication are, change encompasses much more. A change management practitioner needs to understand human capital, particularly as it relates to the flow of talent and skills in and out of an organization. Who stays? Who goes? Who has the skills to work in the organization as envisioned after the change? The latter question then leads to training and development needs, business restructuring, and other important aspects of the field. Therein lies the strength of the CMAP approach, Milne says. He entered the pro- gram with strengths already well developed in strategic planning and communication, plus performance management. “Coming out of this course, I built greater depth in those areas and learned more about all of the other facets of change management,” he says, “how interdisciplinary it is, and how all the moving parts work together.” Vichi and Campbell both echo Milne’s assessment. In the past, Campbell focused mostly on performance management, but now he thinks about other pieces of the puzzle, such as human capital. “We all manage change,”Vichi says,“but there is something to be said for someone who has really studied all the different tools and theories, really understands the differ- ent nuances and differences between them, and is able to work with other experts to cover all the different implications. This program provides practitioners with a really well-rounded toolkit.” Learning While Doing, Doing While Learning The CMAP program also provides students with a room full of other experts — fellow students — from whom and with whom to learn. Thecoursetakesadvantageofthisgroup’s knowledge through an “action-learning project,” a centerpiece problem based in reality and practicality. Holtom describes it as a “SkunkWorks” project. Students divide into five teams of five — named Booz, Allen, Hamilton, Hoya, and Saxa, affectionately. Each person in each group brings a proposal from a real-life ­ client problem, and the team decides together which problem to tackle. “We ask, ‘What is the biggest, hairiest, most challenging aspect of this engage- ment, and what could we gain by examin- ing theory and best practices in this proj- ect?’” Holtom says. Vichi’s group chose her proposal for its action-learning project. It deals with the Federal Aviation Administration’s (FAA) implementation of a system safety approach to regulatory oversight, which is spurred by a number of drivers,including new interna- tional regulations and safety requirements, recent concerns over airline safety, and an increasing number of travelers flying in a fixed amount of airspace. Holtom uses a particularly apt meta- phor for this project: “There is a simulta- neous challenge of flying an airplane while rebuilding it,” he says. “That’s exactly what is happening when you’re a government agency providing services, and you are asked to transform.” With the FAA, there will be zero tolerance from the government or the public when it comes to making mis- takes while the change is in process. Even as the agency overhauls itself, every plane still has to get where it is going safely. With that in mind,Vichi and her team- mates applied freshly learned or honed skills to a real-time problem.“We sat down, looked at the problem statement, and used tools from the class to prioritize focus areas that needed to be addressed for transforma- tion to be seamless and effective. Knowing where they needed to go, we said,‘In order to get them there, we must address these things first.’” Communication became a top priority. The FAA’s change is almost a paradigm shift for much of the workforce doing safety oversight, Vichi says, so communication is essential to creating buy-in. To begin to do that,Vichi and her team- mates examined tools from the CMAP course, including the Patterson-Connor Commitment Curve, which tracks where people are in terms of commitment to the new way of doing business. Vichi and her teammates learned from a real example during the project, and, in turn, Vichi has made viable communication recommenda- tions to the client. Likewise, Milne says he has taken lessons learned directly from the program into his day-to-day work with his client, the intelligence organization that is trying to merge two cultures. “The course has really informed my thinking about how to do the heavy lifting around the cultural change, which is a deal breaker for this particular organization,” he says. The biggest value of the program to Campbell is the all-encompassing and flex- ible set of tools it provides. “Prior to this class,” he says, “I never thought about change management the way I’ll think about it now. It was always some specific aspect. We were going to be technology consultants, or human capital consultants, or strategy consultants. Now I see the holistic approach to change man- agement.That’s where we can now add a lot of value for our clients.” w “There is a simultaneous challenge of flying an airplane while rebuilding it. That’s exactly what is happening when you’re a government agency providing services, and you are asked to transform. ” — Brooks Holtom Phil Humnicky Brooks Holtom