Identifying and Overcoming

Roadblocks to Change

Systems and Software Technology Conference

20-23 April 2009

Rick HefnerNorthrop Grumman Corporation

Beth LaymanLayman & Layman

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Background

• Are you struggling to get process improvement to take hold in your organization?– Process Improvement Leaders– Line Managers

• If so, where is your focus? – Management of change (models, processes, methods, plans,

tactics)?– Cultural barriers and change leadership?

• This presentation will explain how to identify and overcome common roadblocks to successful change, including lack of alignment, siloed thinking, decision dysfunction, execution and endurance problems, and missing measurements

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Agenda

• What is Organizational Change Leadership

• Common Change Problems– Lack of Alignment– Siloed Thinking– Decision Dysfunction– Not Seeing it Through– Missing Measurement

• Assessing Change Readiness & Maturity

• Tailoring Your Improvement Plans

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Organizational Change in Context

DesiredState

TransitionState

Time

ChangeStrategy

ManagingChange

PresentState

Pro

du

cti

vit

y

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Phases of Change

En

erg

y In

vest

ed

End of the old

Source: Bridges 1988, Kubler-Ross 1969Time

Statusquo

Stunnedparalysis

Denial

Anger,rage

Bargaining

Depression

Acceptance

Exploration

End of the old Beginning of the new

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Organizational Change…

Management vs.

• Drafting plans

• Establishing baselines

• Selecting models and frameworks

• Committing/securing resources to do work

• Designing solutions

• Monitoring and controlling progress

Leadership

• Creating a Shared Vision

• Communicating vision and expectations

• Being honest (not just “happy talk”)

• Handling resistance and dysfunction

• Recognizing and rewarding the right behaviors

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Problem #1 - Lack of Alignment

Examples:

• Change goals not tied to stated business strategy, current priorities or CEO focus

• Change Leaders can’t/don’t sufficiently communicate the vision and its connections– Per Kotter – “We underestimate the power of vision”

• Folks trying to make the changes carry the weight without any energy supplements– Every decision is hard without direction/inspiration

Source: Leading Change, Kotter 1996

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Communicating to Your Teams

Can you describe the key reasons why we are doing this?

• We have specific plans to grow– To reduce new hire ramp-up need common

language (steps, roles, deliverables, tools)• We need proven, repeatable processes

– New programs perform like established programs out of the gate

– Deliver more value to clients– Reduce risks & overruns and maximize profits

• We need CMMI Level 3 Rating– Opens doors to bid on and win new contracts

(and increase revenues)– Other divisions will bootstrap their own PI efforts

with our processes and process improvement expertise

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Key Messages that Must Be Communicated

• CMMI is a a set of proven, industry best-practices– Adoption is about learning how to apply

these practices to our work– The practices may feel awkward and have

limited value until we learn them– It’s OK to make mistakes – we will get better over time

• CMMI involves short-term investment for long-term gain– Achieving and maintaining mature processes

is essential to meeting our business goals

• CMMI is an enabler (not a guarantee) of project success– Other aspects (people, technology, customer relationship, etc.)

are also important– The value is often risk reduction (which may be difficult to

measure)

• When the entire organization is behaving maturely, everyone’s job becomes easier

• Continuous improvement is a way of lifeRH

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What’s the Vision – Do you have it?

Marketing will have a

competitive edge with certification

CMMILevel 3

Lower CostsLess Rework/Waste

More ReuseHigher Quality

Predictable Results

Our CompanyPrograms will

Perform better

Outcomes

New ClientsDivision Growth

New FacesNew Opportunities

`

CultureMore Change, Not Less

Change is Good!

CultureClear Roles

Confident StaffEmpowered Teams

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Problem#2 - Siloed Thinking

Examples:

• Allowing personal ambitions to rule– Unwilling to give up power/control– Performance narrowly measured & rewarded

• Competing vs. cooperating

• Allowing poor coordination to persist (“weak matrix”)– Collaboration is frowned upon– Clearly defining the interfaces is not part of improvement program

• Ignoring interdependencies– Change has intended and unintended effects

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Problem#3 – Decision Dysfunction

Examples:

• Who gets to make the decision (in the absences of total consensus)?

• How much authority do you have?

• What are the boundaries?

• Invisible Infrastructure

• Vague Roles

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DivisionExecutive

UnitManager

UnitManager

UnitManager

DevelopmentManager

DevelopmentManager

DevelopmentManager

IndividualStaff

IndividualStaff

IndividualStaff

ProjectManager

ProjectManager

ProjectManager

PI Governance Structure

ManagementSteeringGroup

Process Group

Process ActionTeam

ExecutiveLeadership

Group

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Enterprise Governance Structure

People

Critical Business Process Steering Committees

Executive Team

Cross - Functional Vetting CommitteeM&A

CouncilProductCouncil

Process

Technology

Cam

pai

gnT

o L

ead

Lea

d to

Quo

te

Quo

te t

oC

ash

Acc

ount

ing

toR

epor

ting

Rec

ruit

toS

epar

ate

Ord

er t

oF

ulfil

lme

nt

Inci

dent

to

Clo

se

Ta

rge

t to

Inte

gra

tio

n

Str

ate

gy

to

En

d o

f L

ife

Mktg Sales Ops Fin HR TS MNF M&A R&D

Enterprise Project Team A Enterprise Project Team C

Enterprise Project Team B

InvestmentCouncil

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Problem#4 – Not Seeing it Through

Examples:

• Lack of (real) short-term wins

• The difference between acceptance and action

• Celebrating too soon

• Withdrawing support after initial push

• Losing interest

• Backsliding is allowed

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What Institutionalization Is

“When mentioned in the generic goal and generic practice descriptions, institutionalization implies that the process is ingrained in the way the work is performed and there is commitment and consistency to performing the process.

An institutionalized process is more likely to be retained during times of stress.”

Institutionalization: The ingrained way of doing business that an organization follows routinely as part of its

corporate culture.- CMMI-DEV v1.2

GP 2.1 Establish an Organizational Policy

GP 2.2 Plan the ProcessGP 2.3 Provide ResourcesGP 2.4 Assign ResponsibilityGP 2.5 Train PeopleGP 2.6 Manage ConfigurationsGP 2.7 Identify and Involve Relevant

StakeholdersGP 2.8 Monitor and Control the ProcessGP 2.9 Objectively Evaluate AdherenceGP 2.10 Review Status with

Higher Level ManagementGP 3.1 Establish a Defined ProcessGP 3.2 Collect Improvement Information

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Common Features – A Lost Perspective in CMMI v1.2!

Commitment to PerformGP 2.1 Establish an Organizational Policy

Ability to PerformGP 2.2 Plan the Process

GP 2.3 Provide ResourcesGP 2.4 Assign Responsibility

GP 2.5 Train PeopleGP 3.1 Establish a Defined Process

Verifying ImplementationGP 2.9 Objectively Evaluate Adherence

GP 2.10 Review Status with Higher Level Management

Directing ImplementationGP 2.6 Manage Configurations

GP 2.7 Identify and Involve Relevant StakeholdersGP 2.8 Monitor and Control the ProcessGP 3.2 Collect Improvement Information

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Problem#5 – Missing Measurement

Examples:

• Not capturing a baseline first

• No accountability for the validation of ROI

• Lack of interim progress measures– Where are we against vision?– What level of institutionalization exists?

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Assessing Change Readiness

For the organization…

• Current Culture– Change is norm, cross-

functional, aligned goals, reward structure

• Change History– Number, breadth, depth of

successful past changes– Failures/lessons learned

For the specific initiative…

• Vision– Defined, aligned, communicated…

• Plans and Expectations– Expectations re: time to change

(what is timeline)– Expectations re: resistance to

change– Complexity (breadth/depth) of

planned change

• Change Team (by key role)– Level of personal belief in change,

chg mgt experience, communication skills, opinion leadership, openness, team players…

• Infrastructure – Long-term personnel support

budgeted, technology/tool support– Systems exist - Training, Process

Mgt, Reviews, Measures…

Change Capability/Maturity can be determined.

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Knowledge is Power

What to do with this?

If you are leading a change/improvement program:1. Conduct an honest, objective assessment of change

readiness and your “change maturity” level2. Use results to tailor the improvement roadmap

• Big or sweeping changes may not be possible• May need to build in additional support to remove

roadblocks

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Summary

• Change is predictability difficult

• Change must be tackled at the organizational and individual level

• Change management is a must, but will fail without change leadership – it’s the sine qua non of successful change!

Beth Layman, Layman & LaymanPhone: 321.777.2914

Email: beth@laymanandlayman.com Web: www.laymanandlayman.com

Rick Hefner, Northrop GrummanPhone: 310.812.7290

Email: rick.hefner@ngc.com