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Leading Change:  Integrating Theory and Practice Robin Teigland Center for Strategy and Competitiveness Stockholm School of Economics [email_address] Twitter: RobinTeigland www.knowledgenetworking.org Jan – May 2011
Leading Change objectives ,[object Object],[object Object],[object Object],[object Object]
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Going Forward
Jack Welch… "...when the rate of change outside an organization is greater than the change inside, the end is near...."
Competitive advantage is increasingly based on an organization’s ability to change ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Beer 2002
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],But do change initiatives work? Beer 2002, Gratton 2007,  Maurer and Co
Many change programs result from tacit collusion among senior executives, staff, and external consultants who avoid undiscussible issues  For Executives :  Appearance of  quick, painless, measurable results  For Consultants :  A steady income stream For Internal Staff :  Increased responsibility & visibility Short-term benefits ,[object Object],[object Object],[object Object],[object Object],Long-term costs Beer 2002
[object Object],[object Object],[object Object],[object Object]
What is change? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Change focus Burnes 2004 Small-scale change Large-scale change Rapid change Slow change Level:  The organization Focus:  Structures & processes Level:  The organization Focus:  Culture Level:  Individual/group Focus:  Tasks & procedures Level:  Individual/group Focus:  Attitudes/behavior
What triggers change?
PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technological Legal Social Economic Organization
1. What factors are affecting the industry? 2. Which of these are the most important at the present time? 3. Which of these are the most important in the next few years? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A new workforce is appearing… Prensky 2001, Beck and Wade 2004, Mahaley 2008  “ Digital Immigrants” “ Digital Natives” Company loyalty Work ≠ Personal Learning=Behind the desk Professional loyalty Work = Personal Learning=Fun and games
Technical knowledge quickly outdated 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education
Organizational forces: Internal pressures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pressures from one area can affect entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
But every challenge is….. A new opportunity???
What are the critical success factors for change?
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Remember…. do change initiatives work? Beer 2002, Gratton 2007,  Maurer and Co Why? According to Fortune 500 executives,  resistance/people not accepting changes
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Why do people resist change? Managers need to take affirmative action to minimize these effects! Iles & Southerland, 2001, p.56-57
People react differently... Rogers, 1983, 1995  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.
Reactions to change distribution Rogers, 1983, 1995
Helping stakeholders go through transformation Current situation Future  situation Transformation Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],Individuals ,[object Object],[object Object],[object Object],Resistance reactions Sven Hultín, IBM Shock Denial Realism Acceptance The Change Process Reaction
Getting through valley of despair High Uninformed optimism (Security) Informed  pessimism (Doubt) Hopeful realism (Hope) Productivity Time Low Optimism (Decision Power Commitment) Successful ending (Satisfaction) Hultín, IBM
Say the color,  not  the word ,[object Object],[object Object],[object Object],Stroop
The challenge of change Change Leadership Change Management The WHAT The ‘hard’ edge:  Systems, processes, structures, and business strategy  ,[object Object],[object Object],[object Object],Zwanenberg
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
1. Establish sense of urgency Forces for change Forces for stability The status quo Burnes 2004 http://www.youtube.com/watch?v=U5802FBaMSI
Force field model Who and What Can Change Lewin 1947, 1951; Iles & Southerland, 2001
1. How to create a sense of urgency? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Adapted from Kotter 1996
2. Form a powerful coalition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],But look out for people with big egos or “snakes” Beer 2002, Kotter 1996 The small  team  that will  lead  the change
Who has informal power in the organization? Teigland 2003
3. Create (and operationalize) a vision ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Adapted from Kotter 1996
4. Communicate the vision ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],But listen as well!! Adapted from Kotter 1996
When do people support the vision? ,[object Object],[object Object],[object Object],[object Object],[object Object],“ Coming together is a beginning, staying together is progress, and working together is success.” -Henry Ford
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
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
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
Broadcast heroes and their success stories!
7. Consolidate improvements and produce more change Change  Project 1 Change  Project 2 Change  Project 3 Time Scope of change Adapted from Kotter 1996
8. Anchor new approaches Company culture Physical  artifacts activities and routines Underlying values, assumptions, beliefs, and expectations Intangible Adapted from Kotter 1996
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
Tata Motors
Tata Motors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],http://www.youtube.com/watch?v=rOnQpP5haUQ
Groupwork - In your groups ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],http://www.mckinseyquarterly.com/Leading_change_An_interview_with_the_managing_director_of_Tata_Motors_1908
Adapting Kotter to your organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Hultín, IBM
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 1. Prepare 2. Implement 3. Manage
Agenda ,[object Object],[object Object],[object Object],[object Object],Going Forward ,[object Object],[object Object],[object Object]
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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
In your groups ….. Choosing  the Change Project
Criteria for the Change Project ,[object Object],[object Object],[object Object],[object Object],” This is something we would like to do!!”
Change focus Burnes 2004 Small-scale change Large-scale change Rapid change Slow change Level:  The organization Focus:  Structures & processes Level:  The organization Focus:  Culture Level:  Individual/group Focus:  Tasks & procedures Level:  Individual/group Focus:  Attitudes/behavior
Better to choose a more narrow, specific  focus!
You will present  your projects  at end of program
Discuss in your groups today ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Organizational forces: Internal pressures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technical Legal Social Economic Organization
Pressures from one area can affect the entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
Identify  internal and external  stakeholders Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
Prioritize  stakeholders Low High Low High ,[object Object],[object Object],[object Object],[object Object],Scholes 1998 ,[object Object],[object Object],[object Object],Keep informed Key players Minimal effort Keep satisfied
Stakeholder analysis Adapted from Nader, NTL Current (C) & Desired  (D) position regarding the Change Stakeholder Block Let Help Make Diagnosis of stakeholder position Recommended action to move to desired position
The Change Project Statement … if you can ´t say it in a few words,  then keep discussing! Name of Change Project and Business Names of Change Project team members Name of Sponsor What are the drivers for your Change Project? What will be the change resulting from your Change Project?  How will you measure the impact of your Change Project? When do you expect to see results from your Change Project?
Today’s Coaching Session ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Agenda ,[object Object],[object Object],[object Object],[object Object],Going Forward ,[object Object],[object Object],[object Object]
Leading is looking in all directions  Sponsor or  Steering Group Project Team  Project Leader Stakeholders Downwards Outwards Forwards Inwards Upwards Backwards Briner et al 2004
Tools to achieve the “transformation” ,[object Object],[object Object],[object Object],[object Object],[object Object]
Why use tools? Reducing complexity to something manageable Identifying priorities and importance, sequence of activities Highlighting interdependence between actors and tasks Creating a common language My view…. Making views explicit
1. Identify  internal and external  stakeholders Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
Prioritize  stakeholders Low High Low High ,[object Object],[object Object],[object Object],[object Object],Scholes 1998 ,[object Object],[object Object],[object Object],Keep informed Key players Minimal effort Keep satisfied
Stakeholder analysis Adapted from Nader, NTL Current (C) & Desired  (D) position regarding the Change Stakeholder Block Help Let  Make Diagnosis of stakeholder position Recommended action to move to desired position
Helping stakeholders go through a transformation Current situation Future  situation Transformation Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],Individuals ,[object Object],[object Object],[object Object],Resistance reactions Hultín, IBM Shock Denial Realism Acceptance The Change Process Reaction
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
2. Develop clear  project charter  and  roll out plan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Successful change requires attention to all relationships Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
3. Develop  communication plan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Do for each group of stakeholders Around 20% of your project activity!
Ensure continuous communication of  big picture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sponsor or  Steering Group Project Team  Project Leader Stakeholders
Create trust through  open  communication  ,[object Object]
Ralph Stacey’s Decision matrix
Engage and ensure  interaction ! ,[object Object],[object Object],[object Object]
Communication Plan, phase 1: Before the start of a project (Decision making) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Project idea No change without pain Testing idea Finding proof Commitment Decision Communication Formal Document
Communication Plan, phase 2:  Project implementation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Plans are sent for internal audit Status, Result achieved Follow up reaching of targets Report Sharing of Best practice Project start Tools Quality Stakeholder statement Status Project FINISHED Information to Stakeholders & Public information
4. Continuously manage  risk Low High Low High Probability of occurring Impact of change Monitor Work on reducing Minimal effort Manage
Risk analysis Risk No. Description Proba-bility Project impact Priority Potential consequences Proposed/ implemented actions Status Respon-sible 1 2 3 4
5. Measuring impact  ,[object Object],[object Object],[object Object]
Match the measures to the impact of the change Culture Systems Vision Strategy Structure People
Developing appropriate measures and timing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],What gets measured, gets done!
Measurement plan Measure no. Measure Description How directly impacted by change project Baseline measure Measuring frequency 1. 2. 3.
The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual groups Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual groups Developing a communication plan Performing a risk analysis Module 3 Final Presentation
The Change Project Statement … if you can ´t say it in a few words,  then keep discussing! Name of Change Project and Business Names of Change Project team members Name of Sponsor What are the drivers for your Change Project? What will be the change resulting from your Change Project?  How will you measure the impact of your Change Project? When do you expect to see results from your Change Project?
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Going Forward
Final Presentation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Leading and learning Leadership and learning are indispensable to each other.” - John F. Kennedy Leadership, teaching, and learning are inextricably interlinked. - Jack Welch
Good luck with your projects!!

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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 [email_address] Twitter: RobinTeigland www.knowledgenetworking.org Jan – May 2011
  • 2.
  • 3.
  • 4. Jack Welch… "...when the rate of change outside an organization is greater than the change inside, the end is near...."
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Change focus Burnes 2004 Small-scale change Large-scale change Rapid change Slow change Level: The organization Focus: Structures & processes Level: The organization Focus: Culture Level: Individual/group Focus: Tasks & procedures Level: Individual/group Focus: Attitudes/behavior
  • 12. PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technological Legal Social Economic Organization
  • 13.
  • 14. A new workforce is appearing… Prensky 2001, Beck and Wade 2004, Mahaley 2008 “ Digital Immigrants” “ Digital Natives” Company loyalty Work ≠ Personal Learning=Behind the desk Professional loyalty Work = Personal Learning=Fun and games
  • 15. Technical knowledge quickly outdated 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education
  • 16.
  • 17. Pressures from one area can affect entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
  • 18. But every challenge is….. A new opportunity???
  • 19. What are the critical success factors for change?
  • 20.
  • 21.
  • 22. People react differently... Rogers, 1983, 1995 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.
  • 23. Reactions to change distribution Rogers, 1983, 1995
  • 24.
  • 25. Getting through valley of despair High Uninformed optimism (Security) Informed pessimism (Doubt) Hopeful realism (Hope) Productivity Time Low Optimism (Decision Power Commitment) Successful ending (Satisfaction) Hultín, IBM
  • 26.
  • 27.
  • 28. 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
  • 29. 1. Establish sense of urgency Forces for change Forces for stability The status quo Burnes 2004 http://www.youtube.com/watch?v=U5802FBaMSI
  • 30. Force field model Who and What Can Change Lewin 1947, 1951; Iles & Southerland, 2001
  • 31.
  • 32.
  • 33. Who has informal power in the organization? Teigland 2003
  • 34.
  • 35.
  • 36.
  • 37. 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
  • 38. 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
  • 39. 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
  • 40. Broadcast heroes and their success stories!
  • 41. 7. Consolidate improvements and produce more change Change Project 1 Change Project 2 Change Project 3 Time Scope of change Adapted from Kotter 1996
  • 42. 8. Anchor new approaches Company culture Physical artifacts activities and routines Underlying values, assumptions, beliefs, and expectations Intangible Adapted from Kotter 1996
  • 43. 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
  • 45.
  • 46.
  • 47.
  • 48. 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 1. Prepare 2. Implement 3. Manage
  • 49.
  • 50.
  • 51. 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. In your groups ….. Choosing the Change Project
  • 53.
  • 54. Change focus Burnes 2004 Small-scale change Large-scale change Rapid change Slow change Level: The organization Focus: Structures & processes Level: The organization Focus: Culture Level: Individual/group Focus: Tasks & procedures Level: Individual/group Focus: Attitudes/behavior
  • 55. Better to choose a more narrow, specific focus!
  • 56. You will present your projects at end of program
  • 57.
  • 58.
  • 59. PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technical Legal Social Economic Organization
  • 60. Pressures from one area can affect the entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
  • 61. Identify internal and external stakeholders Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
  • 62.
  • 63. Stakeholder analysis Adapted from Nader, NTL Current (C) & Desired (D) position regarding the Change Stakeholder Block Let Help Make Diagnosis of stakeholder position Recommended action to move to desired position
  • 64. The Change Project Statement … if you can ´t say it in a few words, then keep discussing! Name of Change Project and Business Names of Change Project team members Name of Sponsor What are the drivers for your Change Project? What will be the change resulting from your Change Project? How will you measure the impact of your Change Project? When do you expect to see results from your Change Project?
  • 65.
  • 66.
  • 67. Leading is looking in all directions Sponsor or Steering Group Project Team Project Leader Stakeholders Downwards Outwards Forwards Inwards Upwards Backwards Briner et al 2004
  • 68.
  • 69. Why use tools? Reducing complexity to something manageable Identifying priorities and importance, sequence of activities Highlighting interdependence between actors and tasks Creating a common language My view…. Making views explicit
  • 70. 1. Identify internal and external stakeholders Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
  • 71.
  • 72. Stakeholder analysis Adapted from Nader, NTL Current (C) & Desired (D) position regarding the Change Stakeholder Block Help Let Make Diagnosis of stakeholder position Recommended action to move to desired position
  • 73.
  • 74. 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
  • 75.
  • 76. Successful change requires attention to all relationships Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
  • 77.
  • 78.
  • 79.
  • 81.
  • 82.
  • 83.
  • 84. 4. Continuously manage risk Low High Low High Probability of occurring Impact of change Monitor Work on reducing Minimal effort Manage
  • 85. Risk analysis Risk No. Description Proba-bility Project impact Priority Potential consequences Proposed/ implemented actions Status Respon-sible 1 2 3 4
  • 86.
  • 87. Match the measures to the impact of the change Culture Systems Vision Strategy Structure People
  • 88.
  • 89. Measurement plan Measure no. Measure Description How directly impacted by change project Baseline measure Measuring frequency 1. 2. 3.
  • 90. The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual groups Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual groups Developing a communication plan Performing a risk analysis Module 3 Final Presentation
  • 91. The Change Project Statement … if you can ´t say it in a few words, then keep discussing! Name of Change Project and Business Names of Change Project team members Name of Sponsor What are the drivers for your Change Project? What will be the change resulting from your Change Project? How will you measure the impact of your Change Project? When do you expect to see results from your Change Project?
  • 92.
  • 93.
  • 94. Leading and learning Leadership and learning are indispensable to each other.” - John F. Kennedy Leadership, teaching, and learning are inextricably interlinked. - Jack Welch
  • 95. Good luck with your projects!!

Notas do Editor

  1. 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
  2. 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.
  3. Can cause dependence on staff groups and consultants Means are inconsistent with espoused ends - they are top down and do not encourage local leadership Do not encourage an organizational conversation and learning about real underlying problems - Business Organizational Unclear strategy, values and conflicting priorities Leadership style - tops down or laissez faire An Ineffective top team Poor coordination Closed vertical communication Inadequate leadership/management skills and development in organization
  4. Human on left side (more participative) and technical on right side (less participative)
  5. 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
  6. 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?
  7. PESTEL-analysis is a tool – not a key.
  8. The interesting thing is that this new generation of workers is huge and is even larger than the babyboomers and in fact in the US, 56 mln are old enough to be employees with 7 million already managers. Those that are 38 and younger are the gamers and those that are 28 years and younger are the net-generation and we now have a new generation that is entering the workforce that has grown up with mobile phones. These generations have a different outlook on work, learning, and play. On the right hand side, we have individuals with a high degree of company loyalty and in which there was a clear line between work and one’s personal or social life and play was something to be done only in one’s free time. However, in these new generations we have individuals who are more loyal to their peers and their professions – choosing to mix their working life with their personal life while also not seeing such a clear line between work and play. And anyway, who ever said that we cannot combine work and play? danah boyd: Unlike adults, who are relearning how to behave in public because of networked technologies, teens are simply learning how to behave in public with networked publics in mind. Other notes The new generation is huge - 90 million people in USA alone Larger than baby boomers 81% of US business population ≤ age 34 are gamers 56 million old enough to be employees 7 million already managers Points: we are looking at a wave of Digital Natives that are already in our workforce. That design of learning will in large part be for some portion of these 90 million americans, not to mention the internationals. 38 years old and younger – they are the gamers. 28 years old and younger – these are the net-generation, having grown up with the internet always being there. These are people for whom the technology has always been available to provide them with engaging experiences, connections beyond the realm of their home towns to people and information that otherwise would never have been available or accessible.
  9. The amount of new technical information is doubling every 2 years. It’s predicted to double every 72 hours by 2010.
  10. Constraint/Impact of organization’s history - path dependency Poor decision making!
  11. http://www.youtube.com/watch?v=w3IbKbDhfKw
  12. http://www.youtube.com/watch?v=w3IbKbDhfKw A vision with clear objectives Compelling reason to act – burning platform Holistic approach Broad participation M easurable targets Effective project management Consistent executive ownership and participation No change / transformation project in place ... Regarded Business As Usual Inadequate communication to people NOT impacted Unclear roles & responsibilities The cadence/ mode of operation / management system does not reflect the new set-up Not letting go of the old ... front line => unclear accountability
  13. 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!
  14. http://faculty.washington.edu/chudler/words.html
  15. 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
  16. Three steps Prepare Implement Manage
  17. 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)
  18. 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
  19. 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
  20. 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
  21. 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.
  22. 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
  23. http://www.slideshare.net/Estragon/change-management Piers Schreiber [email_address] +44 7707 263 782
  24. 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
  25. 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
  26. http://www.traintogain.gov.uk/NR/rdonlyres/01EBAABA-DE38-44B6-B118-8007FA6F117F/0/fishing.jpg
  27. 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
  28. 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
  29. 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.
  30. http://www.youtube.com/watch?v=rOnQpP5haUQ
  31. http://www.cisco.com/warp/public/126/chmgmt.shtml
  32. 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
  33. The sponsor 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 sponsor 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 sponsor 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.    
  34. Human on left side (more participative) and technical on right side (less participative)
  35. 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.
  36. Constraint/Impact of organization’s history - path dependency Poor decision making!
  37. 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
  38. 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?
  39. Phases?
  40. Upwards – managing your sponsor to achieve organizational commitment Backwards – monitoring progress with appropriate control systems, to ensure that project meets its targets and that team learns from its mistakes Inwards – Managing yourself – by reviewing your performance to ensure that your team leadership is positive contribution to project Outwards – managing client, end user and external stakeholders (including suppliers and subcontractors) to ensure that project meets their expectations Forwards – planning in order to ensure that team sets realistic targets and obtains appropriate resources to achieve those targets Downwards – managing team to maximize their performance both as individuals and collectively. Managing visible and invisible, across disciplines, departments, countries, and cultures
  41. 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
  42. Adapted from why use diagnostic tools? (Burke 2002, Organizational Change) Content tools and process tools Who uses the tools? Management or people in organization or consultants or mix?
  43. 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?
  44. 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!
  45. http://www.slideshare.net/Estragon/change-management Piers Schreiber [email_address] +44 7707 263 782
  46. How are people to be substituted?
  47. Interaction and engagement is necessary to get the message to stick!!
  48. 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.
  49. http://www.slideshare.net/hnauheimer/change-management-presentation-helsinki-presentation
  50. 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.
  51. Brainstorm Action
  52. Phases?
  53. http://www.youtube.com/watch?v=INo69f7f8bo&feature=related http://www.youtube.com/watch?v=Jll5baCAaQU&feature=channel “ cause to go with one,especially by guiding or showing the way or by going in front and taking a person’s hand or an animal’s halter ”, The Concise Oxford Dictionary Challenges about learning Learning about self Learning about others Learning about the ‘business’ Learning about the world Learning about connections and interdependence The timetable of learning Continuous and continual Learn, practice, perform, teach and review FORMAL LEARNING Self - assessment, feedback, performance review Others – team dynamics, motivation, personality profiles etc. ‘ Business’ – strategy, finance, performance, markets etc World – context, policy and politics. Connections – patterns, macro economics etc. Qualification based programmes. Distance learning and e-learning Case studies ‘ Best practice’ reviews Audits and reports Seminars, conferences, workshops and short course programmes INFORMAL LEARNING Self – reflection, feedback. Others – observation, reflection, feedback. ‘ Business’ – enquiry, feedback, observation and review World – reading, observation and review Connections – patterns, coincidences, consequences. Coaching and mentoring Teaching Reflective practice Action learning Discussion,conversation and review Appreciative enquiry, visits and peer review Reading, seeing and hearing – newspapers, books (fiction and fact) art and art forms