Managing Organizational Change

Practical Strategies For Leading During Turbulent and Challenging Times

The Main Objective –Maximizing Value to Your Community

Frank P. Saladis PMP, Past President NYC Chapter, Past Chair PMI EDSIG, Community Involvement Lead - IT & Telecom COPNorth America LIM – 26 October 2013

2

Frank P. Saladis PMP

• Background– AT&T Long Lines– AT&T BCS and Corp. ITS– Cisco Systems

Professional Services– International Institute for

Learning– Past President PMI® NYC

Chapter– Past Editor allPM.com– Past Chair PMI Ed SIG– Founder International PM

Day– PMI Person of the year

2006

A Thought About Why We Are Here

PMI Leadership Institute meetings and other PMI related functions are continually preparing us for a greater role in our communities. We are not only gaining experience and improving our leadership capabilities, we are also becoming mentors, people who have the ability to help others find ways to make a difference in their lives, in their businesses, and in their PMI community.

Thereby, we are all making a difference

At PMI, We Believe In:

CommunityBringing members of the global project management community together is the best way to advance the project management profession and facilitate steady and positive growth.

EngagementListening to and building on diverse viewpoints enables creativity and generates new possibilities and opportunities

Session Objectives

Provide a foundation for developing strategies to manage organizational change effectively

Provide techniques that will improve the community leader’s ability to create value adding change

Improve the capability to create a change ready team

Apply tools and techniques that will enhance personal leadership effectiveness.

Top 5 Key Competencies of a Project Manager

• Discuss what you believe to be the key competencies that a project manager must possess to meet the needs of today’s business and the expectation of C level or senior executive management.

• Select the top five through consensus and record your teams input on a flip chart.

Personal Assessment: Consider Your Current Capabilities and Your Future Opportunities:

1. To do all aspects of my leadership duties well, I need to improve _______

2. If I were better at _______, I would excel relative to my peers

3. If I improved _______, I would resolve an ongoing problem

4. Feedback from several sources indicate I should improve _______

5. In the future, my organization will need more people who are effective at _______

6. To advance to the next level of leadership within my organization I should learn more about ______

7. The reasons why I should continue my personal development include: ____________________

Thoughts About Change

People don't resist change. They resist being changed! [Peter Senge]

If you want to make enemies, try to change something. [Woodrow Wilson]

Change is the law of life and those who look only to the past or present are certain to miss the future. [John F. Kennedy]

The Tower

• Roles will be assigned – Stay in your role

• Do not explain your role. Focus on your success factors

• Communicate your role through your actions and do what you think is important.

• Your objective – Build the tallest tower in the time provided.

The Tower

• Observations

• Planning

• Communication

• Collaboration

• Defining success

• Dealing with change

• Leadership

• Recommendations / learning points

It is not necessary to change.Survival is not mandatory.

~W. Edwards Deming

Change is inevitable - except from a vending machine.

~Robert C. Gallagher

Prepare yourself and your team to become change ready

When you are through changing, you are through. ~Bruce Barton

Testing Your Change Readiness

• 32 questions that address how you manage and deal with change.

• For your information only

• Develop your personal plans to improve how you manage change

The Team Didn’t Gel

How it happens

Warning signs

Turning it around

The Project Advisor- 18 Major Project Screw-ups And How To Head Them Off At The Pass, Pacelli

Indicators That Life Is About To Change

Merger, Acquisition, Divestiture

New product or service

A new leader, boss, manager

New technology

New project

New requirement

New customer

________________

Predictions – What’s Coming?

Look aheadYour careerProject management methodsThe next PMBOK ® Guide – 900 pages?New credentials – ACP? PgMP?TechnologyPMI ® - What is changing?The global economyEnergy

Dealing With Change

• Change is almost always disruptive

• It can be traumatic

• People often avoid it if they can

• It is part of organizational life

Zero defects is an alien concept in Managing change and transition.

If people waited until changes could beperformed perfectly, they would nevermake the change

No such thing as an error free approach

Be Tolerant of Mistakes

That’s Inconvenient!

Change occurs through vision…

And bold ideas!

Noticing Small ChangesEarly Helps You Adapt ToBigger Changes That Are To Come

Who Moved My Cheese?

The quicker you let go of old cheese,the sooner you find new cheese.

Movement in a new direction helpsyou find new cheese.

Old beliefs do not lead you to newcheese.

Cheese Philosophy

“Imagining Myself Enjoying New Cheese EvenBefore I Find It Leads Me To It” -Haw

Lessons Learned About Change

If you were assigned as a “change mentor”……

• Reflecting on your personal experiences with change (organizational change, change that affected people you know, leaving a job, starting a new business, other significant change events) what lessons would you pass on?

Case Study

You have just been assigned to lead a team and you are faced with the following:– Team morale is low– The team is labeled as underperformers– The team is viewed as undisciplined– All work submitted by the team is late or

inaccurate– Conflicts among team members occur

frequently

Sources of Change

EnterpriseEnvironmentalFactors

Newcauses

Creates newopportunity Influences

Wants, needs,

Top Drivers of Change 1. ______________________________

2. ______________________________

3. ______________________________

4. ______________________________

5. ______________________________

6. ______________________________

7. ______________________________

Bloomberg Business Week

Top Drivers of Change 1. Consumer preferences

2. Energy costs

3. Tax policies

4. Reverse innovation

5. Non-traditional competitors

6. Extended enterprise risks

7. Exponential growth in information flow

8. Long-term growth strategy / Globalization

9. Succession planning – exit of baby boomers

10. Generation values – BB, GenX, Gen Y, Millenials

11. Technology Bloomberg Business Week

Change Can Be Destructive

Change can kill the spirit of an organization

Change often leaves job commitment lying wounded and weak

Change puts heavy demands on the organization

People tend to avoid change

Managing Change and Transition, Harvard Business Essentials

Stages of Reaction To Change

Shock

Defensive Retreat

Acknowledgment

Acceptance and adaptation

Managing Change and Transition, Harvard Business Essentials, Harvard Business School Press

Lessons Learned About Change

1. Change involves numerous phases

2. Skipping steps only creates an illusion of speed

3. Critical mistakes in any phase can be devastating, slow momentum, and negate previous gains

4. Even the most capable leaders often make at least one big error

Harvard Business Review on Change, Leading Change, John P. Kotter

Lessons Learned About Change

Most successful change efforts begin when:You look very closely at your company’s

competitive situation, market position, technology, and financial performanceYou observe trends, declining margins, and

emerging marketsYou communicate this information broadly and

dramaticallyYou motivate people to engage in aggressive

cooperation

Harvard Business Review On Change, Leading Change, John P. Kotter

Key Points About Change

• Don’t under estimate the difficulty of driving people out of their comfort zone

• Don’t over estimate your success in increasing the urgency of a change

• Have patience. Don’t eliminate the preliminaries

• Change demands leadership. Beware of too many managers and not enough leaders

Harvard Business Review On Change, Leading Change, John P. Kotter

Paving The Way for Successful Change

How Do You Become Change Ready?

Instead of repairing something to get it back to the way it was before, we need to ask ourselves: How can we fix things and make them better than before?

ThinkDifferently

Change Can Charge Up an Organization Change is part of organizational life

Change is essential for progress

Change opens doors

Change encourages creativity and innovation

Change can create the momentum to reinvent an organization

Transition Management:Remove Doubt, Cynicism and Disillusionment

Provide employees with a strong sense of purpose

Justify the challenge of the changeProvide a vision and mission that will inspireEmployees won’t get emotional about

“increased market share” or 20% reduction in cost”

Create a genuine belief in the need to change

Barriers to Empowerment

Employees understand the Vision and want to make ita reality but are boxed in

Formal StructuresMake it difficult to act

Bosses discourageActions aimed atImplementing thenew vision

Personnel and informationSystems make it difficult to act

A lack of neededSkills underminesaction

Source – John P. Kotter, Leading Change, Harvard Business School Press

Relationship Management

Leadership: Set Expectations Intentionally

Assign responsibility for results

Hold people accountable

Assigning responsibility indicates a level of trust between leader and team member

Assigned responsibility is associated with personal worth and abilities

Leadership

An organization is change ready when:Leaders are respected and effectivePeople feel personally motivated to changeThe organization is non-hierarchical and

people are accustomed to collaborative work

Negotiation and Conflict ResolutionCommunicate Relentlessly Specify the nature of the change Explain why Explain the scope of the change, even if it contains bad news Develop a graphic representation of the change project that

people can understand and hold in their heads Predict negative aspects of implementation Explain the criteria for success and how it will be measured Explain how people will be rewarded for success Repeat, repeat, and repeat the purpose of change and actions

planned Use a diverse set of communication styles that is appropriate for

the audience Make communication a two way proposition

A Basic Enterprise Change Model

Company culture, values, and behavior

Vision and Business imperatives

Communication

Leadership (to drive change)

Execution

Follow-up

A Project / Program Change Model

Business imperatives

Clearly defined objectives

Leadership

Change Control process

Communication

Execution

Follow-up

The Handwriting On the Wall -Haw

Change happensAnticipate changeMonitor changeAdapt quickly to changeChangeEnjoy changeBe ready to change Quickly and enjoy it

again and again

Who Moved My Cheese? Spencer Johnson, M.D G.P. Putnam’s Sons, New York

Conclusions and Summary:

The Main Objective –

Maximizing Value to the Business

Stop focusing on what you can’t control and address what isImportant –Your business and your projects

Taking Action

Three main areas of leverage1. Improve processes2. Improve the effectiveness of human

resources (human capital) Working smarter through leadership Cross training – greater flexibility Promote an adaptive attitude

3. Utilize technology Increased efficiency

Lead The Way

Build a multi-year productivity improvement planMore efficient and faster methodsTraining – Leadership, influencing, innovationReplacement of old technologyBusiness justification for new projects, products,

and services focused on customer benefits and value to the organization

A Plan of Action

• Determine how exposed your business is

• Review and update your business plan– Planning is

continuous– If you are not

planning, you are planning to fail

• Review your cash flow situation

• Prioritize your financial obligations

• Obtain payments and collect unpaid bills

• Take appropriate cost cutting measures

• Control inventory

• Review staffing requirements

• Maintain a positive outlook

• Consider discounts

A Plan of Action

• Invest in your employees through performance reviews, coaching, mentoring, communicating, training

• Acknowledge excellent work

• Examine your leadership style and adjust to create a committed and change ready organization

Summing Up

• Enlist the support and involvement of key people

• Develop a realistic implementation plan

• Support the plan with consistent behavior

• Develop an “enabling structure”

• Celebrate milestones

• Communicate relentlessly

Acknowledgment

The value of the PMI Leadership Communities:

• This group creates an environment where everyone can be totally comfortable in sharing and talking through difficult and challenging situations

• There is genuine support, empathy, and honest feedback

• These encounters provide the opportunity to look closer at ourselves, understand issues more clearly, and help us develop solutions that will make our community experiences richer

International Project Management Day

• 7 November 2013

• www.internationalpmday.org

• We are attempting to plan a worldwide event that connects project managers. Northern Italy and the Belgium Chapter have a vision and need your help.

References and Source Material

• Managing Change and Transition – Harvard Business Essentials

• Conquering Adversity – Christopher Novak• A Survival Guide to The Stress of Organizational

Change – Price Pritchett and Ron Pound• Firing Up Commitment During Organizational

Change, Price Pritchett• Who Moved My Cheese? Spencer Johnson M.D.

G.P. Putnam’s Sons, New York• Harvard Business Review on Change, Harvard

Business School Press