A three hour workshop on change and transformation management with senior sourcing and procurement executives on the Source2Pay-summit i Stockholm, 2016

1. How do you enable change and
transformation in complex settings?
Pontus Wadström
A Real Movement | KTH
Pre-Conference workshop Source2Pay-summit
Stockholm, 20160420

3. Purpose of this workshop
Contribute with insights and
elaborations on change and
transformation in complex
organizational settings

4. • Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and conclusions
Agenda

5. • Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and conclusions
Agenda

6. “Corporations generally
leave 40 % of their gains on
the ‘drawing table’”.
Mankins & Steele, 2005
“Between 70-90 % of all strategic
change initiatives fail to reach their
targets”.
Beer & Nohria, 2000; Pettigrew & Whipp, 1991
Change and transformation is hard

7. As it seems

8. A management paradox

9. Planned strategy Realized strategi
Unrealized
strategi
Emergent
strategy
Mintzberg & Waters, 1985
Planning and realization

10. • Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and Closure
Agenda

11. Group assignment
- Discuss, in your group, and agree upon 3-5 reasons you think are the most common ones that causes change
and transformation initiatives to fail
Supporting questions
- Lack of knowledge? Lack of interest?
- It’s not important?
- Internal politics?
Method
- Think individually (1 min)
- Discuss your individual thoughts - similarities and differences - in your group (15 min)
- Prepare yourselves to present your discussion, questions and the answers you found together (5 minutes)
Why does change fail?

12. Direction CompetenceMotivation Resources
Reinforcemen
t
Confusion
Direction
Motivation
Resources
Reinforcemen
t
WorryDirection
CompetenceMotivation
Resources
Reinforcemen
t
Refusal
Direction Competence
Motivation
Resources
Reinforcemen
t
Frustration
Direction CompetenceMotivation Resources
Reinforcemen
t
False start
Direction CompetenceMotivation Resources
Reinforcemen
t
Change
Competence
Prerequisites for change

13. • Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and Closure
Agenda

14. Group assignment
- Discuss, in your group, and agree upon a description of ”change” and/or ”transformation” you like and prepare
yourselves to present your ideas.
Supporting questions
- Is change something you do, or something you’re a part, of or both?
- What is the difference, if any, between change and transformation?
- What and who is a change manager and/or change agent?
- Do we need change and transformation? What is it’s purpose?
Method
- Think individually (1 min)
- Discuss your individual thoughts - similarities and differences - in your group (15 min)
- Prepare yourselves to present your discussion, what questions you had and the answers you found together (5
minutes)
What is change?

15. “A reorganization, a diversification, a shift in technology,
a reconfiguration of a process or a new composition of
product and/or service portfolio”.
De Wit & Meyer, 2005
”A new/changed set of a person’s behavior repertoire”.
Skinner, 1976
”To make or become different”.
Cambridge Dictionary, 2016
Some definitions...

16. • Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and Conclusions
Agenda

17. Strategy
Structure
ProcessRewards
Human capital
Gailbraith, 2001
Aspects of organizational design

18. 20 % Affects
80 %
Activator Behavior Consequence
A B C
80 %
Used
20 %
Planning
Learning
Braksick, 2007
Behavioral change

19. ANALYZE
• Produce presentation of the change
• Implementera change activities
• Evaluate change activities
• Check with stakeholders and organization
• Describe baseline
• Analyse training needs
Prepare Implement Finalize
Plan Design Build Test Roll out
TG1 TG2
Analyze
TG3 TG4 TG5 TG6
Project Management
TG8TG7
PLAN
• Perform goal analysis
• Produce change message
• Formulate change activities
• Produce stakeholder analysis
• Producde communication plan
• Produce Business Case
DESIGN
• Check with stakeholders and organization
• Ensure all organizational perspectives
• Produce training plan and goals
• Produce plan and organization for support
• Evaluate and update change activities
ROLL OUT
• Deliver to line organization
• Transfer to support organization
TEST
• Check with stakeholders and organization
• Update training goals
• Evaluate and update change activities
BUILD
• Check with stakeholders and organization
• Evaluate and update change activities
• Produce training material
A well defined change process

20. Adjust to magnitude, amplitude...
Amplitudeofchange
Magnitude of change
BIG
SMALL
BIG
Big changes for a
limited part of the
organization
Small changes for a
limited part of the
organization
Small changes for a
significant part of the
organization
Big changes for a
significant part of the
organization

21. ... and realizability
• Ability to get decisions
• Support from key stakeholders
• Security in results
• Degree of involvement
1-5
1-5
1-5
1-5

22. Realizing benefits Developing competence Communicating
Evaluating and managing
Areas of responsibility and importance

23. • Goal analysis;
• Identify, define, anchor, decide,
implement, realize, evaluate, feedback
• Uniformly defined changes
• Go from... to…
• Set various types of benefits
• Green, yellow, red, blue
• Evaluation, update and transfer of
responsibility to line or support
Realizing benefits

24. • Tailormake
• Set targets
• Evaluate
• Spread knowledge
Format of
training
Tasks Target group
Frequecy
Complexity/
Magnitud
Importance Geografy Size
High Low High Low High Low Central Spread Large Small
E-learning X X X X
Class room X X X X
Computer room X X X X
Web education (live) X X
Tutoring/supervision X
User support X X X X X X X X X X
Developing competence

25. VISION
INTERACTION
OPERATIONAL
FACTS
FACTS
FACTS FEELINGS
FEELINGS
FEELINGS
- Intranet
- Emails
- Personal meetings
- Management team meetings
- Ambassador meetings
- Workshops
- Workshops
- Group meetings
- Short films
- Manuals
How
Channels and arenas
Who
Target groups
- Project members...
- Management team...
- Key stakeholders...
- Ambassadors...
-Everyone…
- Target group A...
- Target group B...
…should understand the purpose
What
Purpose
…should be involved in change activities
… should acknowledge and be ready for the ”new”
Communicating

26. Change Activities w.37 w.38 w.39 w.40 w.41
Produce change message
Check change message with communications manager
Check stakeholder analysis with steering group
Direction Motivation Competence Resources Reinforce
Comments
to result
Identification
of risks
1 2 1 1 1 …
3 3 2 1 2 …
2 3 4 3 2 …
4 4 4 4 3 …
1 2 1 1 1 …
3 3 2 1 2 …
2 3 4 3 2 …
4 4 4 4 3 …
Evaluating and managing

27. • Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and Conclusions
Agenda

28. Purpose of this workshop
Contribute with insights and
elaborations on change and
transformation in complex
organizational settings

29. Assignment
- Discuss in your group what we have been talking about this day and conclude some important learnings to
bear with you
Supporting questions
- Why do change and transformation initiatives fail?
- What is real and sustainable change?
- How do you succeed in change and transformation?
Method
- Think individually (3 min)
- Discuss your individual thoughts in your group (5 min)
- Prepare yourself to present your personal ideas, what questions you had and the answers you’ve found during
this afternoon
What have you learned about change?

30. Make sure…
• ...direction, competence, motivation, resources and
reinforcement are in place.
• ...strategy, structure, processes, rewards and human
capital are pulling in the same direction.
• ...to define all benefits measurably, if only 1/0
• ...to evaluate and feedback often, and genererate
change activities based on results
• ...to use 0,6 FTE change management per project
management
• ...to spend a lot of time with management and other
stakeholders
• ...design every change activity to enhance direction,
competence, motivation, resource or reinforcement
• ...to prepare yourself and your environment for hard
work
Unless…
• ...all prerequisites are in place...
• ...all organizational aspects contribute to the change ...
• ...benefits are measurable, you will not know how the
change is going, or when you’re done and...
• ...measuring, evaluation and feedback happens...
• ...time and resources are used for change
management...
• ...the leadership and other key stakeholders
understand, support and drive the change...
• ...all change activities have a clear purpose and goal
they tend to be ”communication” and then...
• ...the change is conducted extremely thoroughly and
persistent...
...there will be no change
Summary and conclusions

31. Pontus Wadström
pontus@arealmovement.com
+46760-550010
arealmovement.com
#A_Real_Movement
https://se.linkedin.com/in/pontuswadstrm
Thank you for your
time and effort!