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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
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
The individual change process
Navigating the Change Process: The role of leadership,communications and training
Implementing organizational change in government
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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
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
The individual change process
Navigating the Change Process: The role of leadership,communications and training
Implementing organizational change in government
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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
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
The individual change process
Navigating the Change Process: The role of leadership,communications and training
Implementing organizational change in government
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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
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
The individual change process
Navigating the Change Process: The role of leadership,communications and training
Implementing organizational change in government
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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
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
The individual change process
Navigating the Change Process: The role of leadership,communications and training
Implementing organizational change in government
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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)
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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.
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Duck, Jeanie. 2001. The Change Monster The Human forces that fuel or foil corporatetransformation and change. Crown Publishing.
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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.
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