successful organizational change

LeadingAge Michigan & PACE Association of Michigan ~ 2016 Annual Conference

Successful Organizational ChangeDR. DANIEL T. GOWDY

SUNSET RETIREMENT COMMUNITIES AND SERVICES


AGENDA• The Nature of Change• The Culture of Change• Change Management Approaches• The Change Process• The Agent of Change• The Leader as Architect, Steward, Teacher


“There is nothing permanent except change.”

~ Heraclitus (500 B.C.)


In a world that is ever changing, organizational leaders both respond to

change and plan for it

~ Nicholas Rescher, 1996


Learning to lead is … Learning to manage Change

~ Warren Bennis


In spite of the broad understanding of the importance of change, successful organizational change continues to prove difficult.


Hard Wired to Resist Change• Leadership is an intentional change process • Stressful to employees• Feelings of uncertainty


Perhaps the only person who likes change is a wet baby.

~Anonymous


The “Urge” to Change…..


Change is……..Hard

…..Expensive

…..Time Consuming


Change is DisruptiveDisrupts…• People

• Systems


Culture Regulates Change• Like an Iceberg, Culture

carries most of its weight and bulk below the surface


2120, the extra degree


Laws of Nature Tell a Different Story


Change is……..Hard

…..Expensive

…..Time Consuming


Reasons For Change• Sameness is fast track to mediocrity

• Opens door to growth and excitement

• Without it your competition will pass you by


The World is Moving Fast


What is Compelling You to “Jump the Curve?”


Management vs. LeadershipLeading Successful Organizational Change

NOT

Managing Successful Organizational Change


Change for Change SakeChange Management

Or

Continuity Management


Change for Change Sake

• Understand the so you know what to change and what to keep.


Change for Change SakeSuccessful Change Requires Continuity

• No Change without continuity

• Unrelenting change is basically anarchy


The Change ProcessLeadership and the Change Process


As good as we are, how can we get better?

Are we going to get any better or is this it?


20 Years in the Making

“Most ‘overnight success’ stories are about twenty years in the making”

- Jim Collins


Enjoy or Reform

“When I arise in the morning I am tornby the twin desires to reform the world

and enjoy the world. This makes it hard to plan the day”


The Change ProcessOrganizational Change Errors

• Complacency

• Insufficient guiding coalition

• Inadequate vision

• Under-communicating


The Change ProcessOrganizational Change Errors

• Obstacles block new vision

• Not enough short-term wins

• Declare victory too soon

• Change not anchored in culture


Organizations and Change

“Change must not be thought of as a property of organization. Rather organization must be understood

as an emergent property of change.”

~ Tsoukas, H., & Chia, R. (2002)


The Change Process7 Levels of Change at WorkLevel 1: EffectivenessLevel 2: Efficiency Level 3: Improving Level 4: CuttingLevel 5: CopyingLevel 6: DifferentLevel 7: Impossible


The Change Process

Framework for Organizational Change


Organizational Change Management

Definition:

“A set of planned actions that increase the probability of successful implementation.”


Learning toCHANGE


Learning to CHANGE

5 Ways of thinking About Change


Yellow-Print Thinking…assumes that people change their standpoint only if their own

interests are taken into account, or if you can compel them to accept certain ideas.


Blue-print Thinking…assumes that people or things will change if a clearly applied result is laid down beforehand.


Red-Print Thinking…assumes that people and organizations will change if the

right HRM tools are employed and used correctly.


Green-Print Thinking

…assumes that the terms change and learning have very similar meanings; therefore, people change if they learn.


White-Print Thinking…assumes that everything changes autonomously,

of its own accord.


The Change ProcessWarning

Urgency not Crisis/Chaos

Have you met these people?


The Change ProcessIt Starts with One

Changing Individuals Changes Organizations

Programmed to resist Change

Mental Maps

Barriers to breakthrough these

Mental Maps:

Failure to see need for change

Failure to move

Failure to finish


The Change ProcessOrganizational Role in Individual Change

Key Roles:

Socialization

Training

Programmed change

Interpersonal interactions


The Change ProcessDimensions of Individual Change

Changeability

Depth of change required

Time


The Change ProcessManagement Efforts to Change Individuals

Feedback

Granting Autonomy

Support/Encouragement


Organizations Change When Enough Individuals Change

Emphasizing collective over the individual in times of uncertainty may not promote the individual growth necessary to realize/bring

about successful organizational change.

~ van Dierendonck, Stam, Boersma, de Windt & Alkema (2014)


Self-efficacy of Followers

… enhances Leadership Power

Power – complex relationship between motives & resources of the FOLLOWER and motives & resources of the LEADER.


The Change Agent


Dealing with Change on a Personal LevelThe three challenges of making personal change:• Escaping the gravitational pull of the status quo• Surviving the emotional roller coaster of transition• Creating a structure to enable and sustain change


The Change ProcessPositive Self-Management Strategies• Understand the change• Clarify your own expectations• Expect some “change pain”• Surface your resistance early and constructively• Celebrate your efforts


The Change ProcessCoping Strategies• Flight• Freeze• Fight• Fake it• Face up to the loss


Smooth Sailing…..


…Perils of Change are Below the Surface


Personal Transition

Emotional roller coaster

What am I giving up or

losing?

What’s in it for

me (WIIFM)

?

• What’s going to happen to me?


The Here and the There

What does THERE look like?

&

How do we get there?


Leading Successful Change•Teacher

•Architect

•Steward

Senge, P. (1990)


Leader as Teacher


The Key to ChangeThe key is using solid learning theory to deliver engaging and effective learning to ultimately have a real impact.

- John Kotter


Learning Organizations are "continually expanding its capacity to create its

future" (Senge, 1990, p. 14).

Leader as Teacher


Leader as TeacherLearning Organization

• Systems Thinking• Personal Mastery• Mental Models• Shared Vision• Team Learning

OrganizationalConsideration

Source: Peter M. Senge. The Fifth Discipline: The Art & Practice of the Learning Organization



Characteristics of Learning Organization• Focus on what Matters• Growing• Teams better than Individuals• Growing Knowledge Base• Emerging Visions• Transparency between Levels• Inquiry Encouraged, Few Sacred Cows• Collegial / Mutual Respect• Free to Try, no on censored for mistakes




5 overlapping Levels• Individual Learning• Team Learning• Cross-functional Learning• Operational Learning• Strategic Learning



Leader as Teacher

Aspi

ratio

n

Source: Peter M. Senge. The Fifth Discipline: The Art & Practice of the Learning Organization

Learning Org



Lessons from Adult Learning:Assumptions

• Why do I need it• Resist• Wide range of experiences• Ready for real-life applications• Motivated by real-life solutions and internal

pressures (i.e., job satisfaction, self-esteem, quality of life)

IndividualConsideration


Lessons from Adult Learning:Process

1. Preparation2. Climate3. Mutual Planning4. Needs of the Learner5. Program Objectives6. Learning Experiences7. Materials8. Evaluations



What Really Moves People: How Learning Changes People

1. Engage the heart and mind of the learner.

2. Engage the learner in a continuous process… as opposed to a one-time learning event.

3. Utilize technology enable and accelerate this process on a large scale.


Leader as Architect


The Leader as Architect

Organizational Application


Leader as Architect

Organizational Application


Leader as Architect


Organizational Commitment

1. A psychological state that binds the individual to the organization, makes turnover less likely

2. Stabilizing force

3. Binds the individual to a behavior


Leader as Architect – Commitment to Change

Affective – because they WANT toNormative – because they OUGHT toContinuance – because they NEED to

Employees with higher commitment to change are more likely to exhibit

championing or cooperative behavior towards change



Leader as Architect – Commitment to Change - Behavior

Affective and normative commitment to change are predictors of employee behavior towards change (Ford, 2004).

• Compliance behavior – demonstrating minimal support for a change by going along with the change, but doing so reluctantly• Cooperation behavior – demonstrating support for a change by exerting effort when it comes to the change, going along with the spirit of the change, and being prepared to make modest sacrifices.• Championing behavior – demonstrating extreme enthusiasm for a change by going above and beyond what is normally required to ensure the success of the change and promoting the change to others.


Employee Commitment to Change Steps:

1) Identifying personal and organizational benefits to the change.

2) Increase supervisor trust.


Leader as Architect – Coaching

Meets people where they are and helps them move to where they want to be.

Helps people to change without telling them what to do.

IndividualApplication



IndividualApproach

Non-directiveNon-advice-givingDiscovery-basedOpen questionsReflective listeningGoal settingGoal achievementOwnership



And you want help closing the GAP.

Where you are now … … is not where

you want to be.


Leader as Architect – CoachingOptions for getting help …

AdviceMentoringTrainingCoaching


Leader as Architect – CoachingAdvice Coaching

Telling you what they think you should do

Asking • where you are • where you want to go • when you want to start, • how you want to get there


Leader as Architect – CoachingMentoring Coaching

Providesguidance, direction, and career advice.

Asks about your experience and helps you set and achieve goals.


Leader as Architect – CoachingTraining Coaching

• Helps you apply knowledge and skills you already have (or are learning).

• Presentsnew information and teaches new skills.



• What did the coach do to “meet” the person where they were?

• In what ways was the person empowered?

• When did the coach give advice?

Coaching Demonstration

https://www.youtube.com/watch?v=mIbybdOx2Ew


Leader as Steward


Leader as StewardTrust

Organizations that have a large number of trusting relationships within them have a greater likelihood of achieving organizational effectiveness and stability.



• Personal trust – degree of trust between employee and supervisor (correlated to performance, altruism, intent to quit, and job satisfaction)• Evaluated on three dimensions;

• ability, • benevolence, and • integrity

Organizational Consideration



System trust – degree of trust between employees and supervisor (correlated to organizational

commitment and commitment to the leader’s decisions)




These two levels can very but are not completely separate. For example, when supervisors communicate a message from upper management, employees may attribute the message and its effects to the supervisor. This can result in an increase or decrease of supervisory trust even if the supervisor was not involved in the creation of the original message.


Speed of Trust

Stephen M. Covey (2006)



Transactional vs. TransformationalOutside-In vs. Inside-Out

Intrinsic Motivators• Autonomy• Mastery• Purpose

~ Drive by Daniel Pink

IndividualApplication

https://www.youtube.com/watch?v=KgGhSOAtAyQ


The Change ProcessEngagementEngagement is unique. The engagement is what Kotter calls the “truth” is more critical than the facts, figuresand models. It’s more than technology tricks and visual candy. Finding the path to it should be our No. 1 priority.


Start with a StoryStart the transformation with a story. We’re wired for stories. They just work.


StoriesStories impact individuals and organizations deeply by creating a common language, inspiring through perspective and just getting people to talk. Stories open doors.


See-Feel-ChangeWhen I give presentations nowadays, I tell stories, and I act them out. I’ve learned to be a one-act play. And it works. Stories inspire people. They can move employees emotionally, helping to connect the dots to a business strategy. I tell CEOs to just get out there and tell real stories about the things they feel or believe in.

- John Kotter


What we RetainThe Percentage (%) Of Information That We Retain When We:

10% Read 20% Hear30% See50% See and Hear70% Discuss80% Experience

95% S H A R E


SharingWhatever you share — especially within the next 24

hours — will help you learn, remember, and use what you have found most useful about

succeeding in a changing situation.


Within the next 24 hours, think of 2 people with whom you can share what you have learned. Doing so may help someone else change and

win!

“An organization or familychanges only when

enough people in it change”


It is not the strongest who thrive, nor the most intelligent,

but those Leaders who • Motivate others to Persevere (Stewardship), • Inspire Champion behavior (Architect), &• Achieve Organizational tipping point by

developing individuals (Teacher).


Your Story ?


ReferencesBennis, W. G. (2003). On becoming a leader (Rev. ed.). Oxford: Perseus.Black, J. S., & Gregersen, H. B. (2008). It starts with one: Changing individuals changes organizations. Upper Saddle River, N.J.: Wharton School Pub.Caluwé, L. d., & Vermaak, H. (2003). Learning to change: A guide for organization change agents. Thousand Oaks, CA: Sage.Caluwé, L. d., & Vermaak, H. (2004). Change paradigms: An overview. Organization Development Journal, 22(4), 9-18. Clampitt, P., Williams, M. L., & DeKoch, R. J. (2002). Embracing uncertainty: The executive's challenge. Journal Of Change Management, 2(3), 212. Coch, L., & French, J. R. P., Jr. (1948). Overcoming resistance to change. Human Relations, 1, 512-532. Retrieved from doi:10.1177/001872674800100408Conner, D. R., & Patterson, R. W. (1982). Building commitment to organizational change. Training & Development Journal, 36(4), 18. Cummings, T. G., & Worley, C. G. (1997). Organization development and change. Cincinnati, Ohio: South-Western College Pub.Erwin, D. (2009). Changing organizational performance: Examining the change process. Hospital Topics, 87(3), 28-40. Ford, J. H., II. (2004). Assessing employee attitudes towards organizational change in substance abuse treatment agencies. Ph.D. 3143080, The University of Wisconsin - Madison, United States -- Wisconsin.


ReferencesGustafson, D. H., Sainfort, F., Eichler, M., Adams, L., Bisognano, M., & Steudel, H. (2003). Developing and testing a model to predict outcomes of organizational change. Health Services Research, 38(2), 751-776. Retrieved from doi:10.1111/1475-6773.00143Herscovitch, L., & Meyer, J. P. (2002). Commitment to organizational change: Extension of a three-component model. Journal of Applied Psychology, 87(3), 474-487. Retrieved from doi:10.1037/0021-9010.87.3.474Kotter, J. P., & Cohen, D. S. (2002). The heart of change: Real life stories of how people change their organizations. Boston, MA: Harvard Business School Press.Laub, J. (2004). Defining servant leadership: A recommended typology for servant leadership studies Paper presented at the 2004 Servant Leadership Research Roundtable Virginia Beach, VA. Lewin, K. (1947). Group decision and social change. In T. M. Newcomb & E. L. Hartley (Eds.), Readings in social psychology. New York: Holt.McBeath, B., & Meezan, W. (2006). Nonprofit Adaptation to Performance-Based, Managed Care Contracting in Michigan's Foster Care System. Administration in Social Work, 30(2), 39-70. Retrieved from EBSCO Host. doi:10.1300/J147v30n02•05Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurment of organizational commitment. Journal of Vocational Behavior, 14, 224-247. Poole, M. S., & Van de Ven, A. H. (2004). Handbook of organizational change and innovation. New York: Oxford University Press.Porter, L. W., Steers, R. M., Mowday, R. T., & Boulian, P. V. (1974). Organizational commitment, job satisfaction, and turnover among psychiatric technicians. Journal of Applied Psychology, 59(5), 603-609. Retrieved from doi:10.1037/h0037335


References

Senior, B. (1997). Organisational change. London; Washington, DC: Pitman.Weick, K. E., & Quinn, R. E. (1999). Organizational change and development. Annual Review Of Psychology, 50, 361-386.

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