april 2008 driving change in organizations

8/2/2019 April 2008 Driving Change in Organizations

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2007 The MITRE Corporation. All rights reserved

Driving Change inOrganizations:

Can Organizations & People Really

Change?

April 2, 2008

Dr. Craig J. Petrun ([email protected])

The MITRE Corporation

Center for Enterprise Modernization (CEM)


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Agenda

Organizational Change Why the buzz?

What is the nature of the change process?

Linear vs. Non-Linear

Understanding how organizations and people change? Organizational Models, assessments & plans

The individual change process

Navigating the Change Process: The role of leadership,communications and training

Implementing organizational change in government


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Why is organizational change important toEnterprise Systems Engineering?

18% 26%

20%

36%

Why IT Projects Fail

Deficiencies in System Delivery(36%) Failure to deliver by the due date

Technology did not work

System did not meetrequirements

Deficiencies in Organizational

Change Management (26%) Problem with organizational

change management

Changes Outside the Scope (20%)

Requirements changed by thetime the system was delivered

System delivered plannedbenefits, but they no longermattered to the business

Major Planning Errors (18%)

System was delivered and used,but the benefits were notobtained

Source: Flint, D., The Users View of Why IT Projects Fail, 2005 Gartner, Inc. Findings based on 520 failed IT Projects w ith over 1000 staff.


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Top Barriers

% of 500 companies

Top Success Factors% of 500 companies

Functional boundaries 44%

Lack of Change skills 43%

Middle management 38%

Long IT lead times 35%

Communication 35%Employee opposition 33%

HR (people/training) issues 33%

Initiative fatigue 32%

Unrealistic timetables 31%

Ensuring top sponsorship 82%

Treating people fairly 82%

Involving employees 75%

Giving quality communications 70%

Providing sufficient training 68%Using clear performance measures 65%

Building teams after change 62%

Focusing on culture/skill changes 62%

Rewarding success 60%

Using internal champions 60%

Source: PwC Mori Survey 1997

Why is organizational change critical tosuccessful transformations?

Research indicates that:

Lack of change management is a common barrier to achievinggoals


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Agenda




Understanding how organizations and people change? Organizational Models





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PresentState

TransitionState

FutureState

Organizational Transitions, Richard BeckhardManaging Transitions, Making the most of Change, William Bridges

ENDING NEUTRAL ZONE Beginning

Change is the act of letting go of existing behaviors andattitudes, and moving to and establishing new behaviors andattitudes that achieve and sustain desired business outcomes.

The Change Process: Moving through theTransition State


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Identify

stakeholders,costs, andbenefits ofthe change

Engageleadership;

communicatethe compelling

need for change

Engageworkforce inplanning the

change,validate costs

& benefits

Introduce newtools,

technology,reward

systems,training

Measure progress,demonstrate value,

communicatesuccess, take

corrective actionif needed

Understanding how organizations change canhelp us prepare for the long journey ahead

EstablishUrgency& Scope

Create &Communicatethe Vision

DriveCommitment,Empowerment

EstablishChange

Infrastructure,Plans & Wins

Sustain &Refine theChange

Kotter, J. 1996. Leading Change



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The Change Monster by Jeanie Daniel Duck, Crown Business, 2001 (Illustration by Gene Mackles)

The nature of change unfolds in a series of dynamic but manageable phases that require preparation.

The path to change for both individuals andorganizations is non-linear

The Change Road MapThe road ahead is full of landmines.



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Agenda










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Input

Leadership

Motivation

Work Unit Climate

Management Practices

Individual Needs &Values

Systems (Policies &Procedures)

Organizational Culture

Task & IndividualSkills

Structure

Mission & Strategy

Individual &

Organizational

Performance

Throughput

Output

Input

External

Environment

Most organizationalchange is driven byenvironmental impact

Boxes indicate primaryvariables affecting

organizationalperformance

Arrows indicate criticallinkages

A change in any variablewill ultimately affectevery other variable

Higher level variableshave greater weight ineffecting organizationalchange

A causal model of organizational performance and change, W.Warner Burke & George H. Litwin, Journal of Management, 1992, vol. 18.

Understanding & assessing the complexity oforganizational change


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Agenda









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Understanding the nature of individual changeprovides additional insights

Pre-contemplation:Not aware of need forchange

Contemplation:

Thinking aboutchange

Preparation: Gettingready to make change

Action: Makingthe change

Maintenance:Sustaining behavior

change until integratedinto lifestyle

The Spiral of Individual Change

Pros vs.

Cons

Prochaska, Norcross & DiClemente, 1994. Changing for Good, Harper-Collins Publishers


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Prochaska, Norcross & DiClemente, 1994. Changing for Good, Harper-Collins Publishers

What are the organizational implicationsof individual change patterns?

Contemplation

The Spiral of Individual Change

Preparation

Action

Maintenance

AssessmentVision/Strategy

External Changes

CommunicationsStakeholder

Analysis

OrganizationalTransition Plan

CascadingLeadership

Resources(Time, Dollars, Friends)

Choice, Training,SuccessPerformance

Management

Pre-contemplation


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Agenda









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Key Challenges:

1. Ability to articulate a clear vision of the future2. Consistency of leadership behavior across all organizational levels

3. Continuous development of the leadership talent pool and pipeline

4. Powerful leadership development architecture

5. Strategic organizational alignment

6. Top team unity

7. Ability to manage change and pursue continuous organization renewal

Navigating the Change Process:The role of leadership What are todays keyleadership challenges?

Yearout & Miles, 2001. Growing Leaders: A Leader-Builder Handbook. ASTD Publications

Executive behavior that encourages others to take required actions.


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Navigating the Change Process:Leaders developing leaders

Ideas: Creating a cogent vision & strategy that incorporates

external changes and opportunities with internal

capabilities. This strategy translates into products and

services which meet stakeholder needs.

Values: Articulating, role modeling and ingraining a set ofvalues which support the business ideas and link customers,

employees and stakeholders to the organization.

Emotional Energy: Developing ways of energizing the

workforce around vision, strategy and values. This includes

developing operating mechanisms which enable good

decisions and then energizing people to act on thesedecisions.

Edge: Facing reality and making yes/no decisions based on

clear ideas and values without vacillating. Breaking Barriers.

E3Emotional

Energy/Edge

ValuesIdeas

Successful organizations have more leaders at every level thantheir competitors.

Tichy, N., 1997/ The Leadership Engine: How Winning Companies Build Leaders at Every Level. Harper Business

Creating a teachable point of view


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The Emotionally Intelligent Leader

Emotional Intelligence refers to the processes involved in the

recognition, understanding, management, and use of others andones own emotional states to make decisions.

Caruso & Salovey, 2004. The Emotionally Intelligent Manager

Identify Emotion

Use Emotion

Understand Emotion

Manage Emotion

Outputs

Quality Social

Relationshipsand Interactions

EnhancedEmotional

Health

Improved WorkPerformance

Leader

Cognitive Process


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Why is communicating during times of change so difficult?

Navigating the Change Process:The role of stakeholder communication

Failure totrain staff

in new skills

Special Interestslobbying againstchange

Customers/Beneficiaries

Internal

Workforce

InternalManagers andSupervisors

ExternalBusinessPartners

OtherKey

Audiences

LegislatorsPublicMedia

LeadershipTeams

Messages

Benefits ofchangenot clear

Leadership not alignedUnclear vision

Fear of change

Failure tocommunicate

Lack ofresources

Interference Interference


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Navigating the Change Process:The role of training

Knowledge transfer Define and implement a knowledge

transfer process early

Define training requirements

Support systems

Resources (people & materials)

Model training to user andorganizational needs:

Directly vs. indirectly impactedusers

Develop the right training, at theright time, for the right users

Training Evaluation

Kirkpatrick


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Alignment / CommitmentConformance

RealizationSomething is going to change

RealizationSomething is going to change

Comprehension

What will happen and why?

Implications

How it will affect us?

Implications

How it will affect us?

Opportunities PerceivedPerceived Threat

AbsorbingAdapting & Integrating

Doing

Accepting & Supporting

PerformingWe want to do it.

We will do it

Navigating the Change Process: The BenefitsAlignment/Commitment vs. Conformance?


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Agenda









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Can change occur in government? YES!

Be a Leader,not a Bureaucrat

Ensure top leadership drives change

Take a comprehensive approach Establish a coherent vision, mission and integrated strategic goals

Create a Road Map

Involve employees to gain ownership and minimize resistance

Dedicate an implementation team to manage the process

Set implementation goals and a timeline to build momentum and showprogress from day one

Improve Performance against Agency Mission

Focus on a key set of priorities at outset of the transformation

Use performance management system and ensure accountability

Win over Stakeholders

Establish a communications strategy to create shared expectations andreport on progress

Reference: 2002, Mergers and Transformation: Lessons learned from DHS & other Agencies, GAO-03-293SP

Reference: 2006, Change Management in Government, Harvard Business Review, May.


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Change Indicators: How can you tell if a change istaking hold in your organization?

Process to results/outcomes

Stovepipes to matrices

Hierarchical to more horizontal structures

Inward focus to external focus (citizen, customer,stakeholder)

Micro-management to employee centered decisionmaking

Reactive behavior to Proactive approaches

Hoarding knowledge to sharing knowledge Avoiding risk to managing risk

Protecting turf to forming partnerships

GAO-03-95, Major Management Challenges and Program Risks


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Closing Thoughts:Can organizations and people really change?

Yes! Successfully managing change requires An understanding of the organizational change process

A model for assessing the complexity of the challenge

The development of an integrated transition plan

Insight into the nature of how individuals change

Leadership, communications & training

..and, of course, RESOURCES!


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Closing Thoughts

Schrages Law of OrganizationalObviousness

The smarter the organization thinksit is, the more complacently it

manages the obvious.

Michael Schrage: Co-director of the MIT Media Labs eMarket Initiative


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Resources / References (1 of 2)

Armenakis & Bedeian. Organizational Change: A Review of Theory and Research, 1999. Burke, W. , Organizational Change: Theory and Practice. Sage Publications, 2002.

Burke, W. Warner. Diagnostic Models for Organization Development, in Diagnosis for Org.Change, edited by Ann Howard, Guilford Publications, 1994

Burke, W. Warner. "Creating Successful Organizational Change." Spring. OrganizationalDynamics. pp. 5- 17. 1991.

W Warner Burke and George H. Litwin, "A Casual Model of Organizational Performance andChange," Journal of Management, Vol. 18, No. 3,1992.

Delery, J. E., & Doty, D. H. 1996. Modes of theorizing in strategic human resourcemanagement: Tests of universalistic, contingency, and Configurational performancepredictions, The Academy of Management Journal, 39, 802- 835.

Duck, Jeanie. 2001. The Change Monster The Human forces that fuel or foil corporatetransformation and change. Crown Publishing.

Duncan, Robert, What is the Right Organization Structure? Decision Tree Analysis Providesthe Answer. Org. Dynamics, Winter 1979.

Fitz-enz, J. 1993. The truth about best practice. Human Resources Planning, 16, 19 26. Fitz-enz, J. 2000. The ROI of human capital. New York, AMACOM. Greiner, L. Evolution and Revolution as Organizations Grow, HBR, July-August 1972. Huber, G., & Glick, W. Organizational Change and Redesign. Edited by Huber & Glick

Oxford Univ. Press, 1995 Hubble, Duncan & Miller, 1999. The Heart and Soul of Change.


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Kotter, John P. 1998. Winning at Change Leader to Leader, 10 (Fall 1998): 27 33 Kotter, John P. 1996. Leading Change. Harvard Business School Press.

Lawson E., Price C. The Psychology of Change Mgmt. McKinsey Quarterly, 2003. Nadler, T., Gerstein, M. & Shaw, B. Organizational Architecture: Designs for Changing Orgs.

Jossey Bass Publ. 1992 Kelman, S. Unleashing Change: A Study of Organizational Renewal in Government.

Published by the Brookings Inst. 2005 Nadler, D.,& Tushman, M. Formal Organization Arrangements: Structure and Systems, From

Strategic Organization Design by Nadler & Tushman, 1988

Parchman, R. W. & Miller, F. 2003. Keys for increasing employee utilization of wellnessprograms. Employee Benefit Plan review, 57, 20 -22

Pfeffer, J. 1998. The human equation. Boston, MA: Harvard Business School Press Shinn, Gregory. 2001, May. Intentional change by design, Quality Progress, 34, no. 5, p.46-51 Simon, Robert. 2005. Levers of Organizational Design. Harvard Business School Press Scholl, Richard. 2000. Application of the Transtheoretical Model. Professor of Management,

University of Rhode Island. www.cba.uri.edu/Scholl/Notes/Organizational_Change Velicer, Prochaska, Norman, & Redding. 1998. Applications of the Transtheoretical Model of

Behavior Change. Homeostasis, 38, 216 233 Grawitch, M. J., Gottschalk, M., & Munz, D. C. (2006). The Path to a Healthy Workplace: A

Critical Review Linking Healthy Workplace Practices , Employee Well-being, andOrganizational

Resources / References (2 of 2)

april 2008 driving change in organizations

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