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1 Organizational Change
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Organizational Change
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IntroductionsMarvin Washington
Undergraduate Industrial EngineeringProcter and Gamble manufacturingPhD Organization Behavior / SociologyProfessor Management Texas Tech UniversityConsultant
• Botswana Gov’t, USPS, Bonneville PowerAuthor / presenter articles on changeBoard of Directors of The Performance CenterTaught at Anahuac
• Mexico City and XalapaPresented to senior level Novartis managers
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Great books to readBuilt to last
Jim Collins and Jerry PorrasGood to great
Jim CollinsManaging with power
Jeffrey PfefferMan Search for Meaning
Victor Frankl
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Self Mastery
Value Exchange
InterpersonalMastery
ChangeMethodology
Transformation Cornerstones
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AgendaUnderstand the different types of changeUnderstand why change is hard to implement and accomplishUnderstand the ingredients of change Understand the relationship between leadership and changeUnderstand the relationship between teams and change
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AgendaDay 1
What is organizational changeWhy is change difficult to accomplishWhat are the ingredients of successful organizational change
Day 2Role of leadership in changeRole of teams in change
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Quotes for the class
Not here to arouse the darkness but to light a candle. Winston ChurchillNo problem can be solved from the same consciousness that created it. Albert EinsteinFrom error to error, one discovers the entire truth. Sigmund Freud Our world to view is determined by our world view. Joseph C. Pearce Crack in the Cosmic Egg
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Quotes for the class
God, who gave us minds for thinking and bodies for working, would defeat his own purpose if he permitted us to obtain through prayer what may come through work and intelligence. Prayer is a marvelous and necessary supplement of our feeble efforts, but it is a dangerous substitute. Martin Luther King, Jr. All life is interrelated, and all men are interdependent. And yet we continue to travel a road paved with the slippery cement of inordinate selfishness Martin Luther King, Jr.
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Organizations are Transforming Worldwide
Information RevolutionInformation readily available
TechnologyPerform tasks with equipment, materials, knowledge, and experienceIncreasing rate of change and diffusion
GlobalizationMarketplaceCompetitors
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•Information revolution•Technological advancesand breakthroughs
•Globalization
The case for change
Implications•Continual turbulence and change•Reduced need for physical assets•Vanishing distance•Compressed time
Critical Success Factors•Ability to embrace change•Creativity and innovation capabilities•Being a world-class organization
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Types of change
RESULTS
TIME
RESULTS
TIME
Standardization Continuous Improvement
RESULTS
TIME
Breakthrough Improvement
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Top Management
Middle Management
Supervisors
Workers
InnovationBreakthrough
KaizenContinuous Improvement
MaintenanceStandardization
Organizational Work
KAIZEN: The Key to Japan’s Competitive AdvantageMasaaki Imai, 1986, Random House, Inc.
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Lessons about change: Built to last
Tried to understand why superior companies are better than peer companies which are better than most companies
$1 invested in stock market in 1926 yields• $415 in all other companies• $955 in peer companies• $6356 in superior (visionary) companies
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Who are these companiesVisionary
3MBoeingGEIBMMotorolaNordstromP&GSonyWal-mart
Peer companiesNortonMcDonnell DouglassWestinghouseBurroughsZenithMelvilleColgateKenwoodAmes
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So what did they find?What they didn’t find
Need to start a company with a great ideaNeed charismatic, visionary leaders“correct values”Always changingGreat places to work forYou can’t have you your cake and eat it too
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So what did they find?Great companies had BHAG
Big Hairy Audacious GoalsWhat ever your values are “stick with it”Deal with the AND, not the ORSeek Alignment (internally)
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Problems with ChangeError #1: No sense of urgency
People need a burning platformToo many managers, no leaders
Error #2: Not a powerful enough coalition
Change is a political process• Not technical, HR, Strategic
Some one needs to organizeThere are choices of change programs
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Problems with ChangeError #3: No vision
Without it, change can become strategic planning.Vision needs to make followers understand and interested in organization.
Error #4: Under-communicate the visionDefine everything in terms of the vision
Error #5: Not removing obstacles to the new vision
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Problems with ChangeError #6: No planning for and creating short-term wins
Success in 30 days, 12 months to build momentum for a 2-3 year change effort
Error #7: Declaring victory to soonBoth sides on change want it to be overUse small victories to go after even bigger problems
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Problems with ChangeError #8: Not anchoring change in the corporate culture:
Show how new way is better• Talk up successes
Work with new management to institutionalize new process
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Another problem with changeKey (often not recognized problem)
I do not understand the changeOften I understand the current situation (why things are bad) And I understand where we want to go (the future)But I don’t understand the change• What will I do different?
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Jack Welch’s ideas on change
Clear mission statement#1 or #2 in every business
Commitment from allWork-out processIssue of Will and Skill
Commitment to allChange pay structure to fit incentives
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Plan for changeFive things required for successful change
VisionLeadershipPolitical Will to make it happenStrategic PlanBurning Platform
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Plan for changeFive things required for successful change
Burning PlatformVisionLeadershipPolitical Will to make it happenStrategic Plan
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Burning PlatformWhy leave your current situation?The “hotter the fire” the quicker you will move
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Plan for changeFive things required for successful change
Burning Platform VisionLeadershipPolitical Will to make it happenStrategic Plan
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Notes on developing a VisionWhat is a vision?
A statement of where you want to goIf a burning platform is what compels an organization to move, the vision must be what the organization wants to move towardCollins and Porras• Audacious Goal• Vivid Description
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Creating a visionVisions are leader initiated, yet co-created
Key people need to be involved to help with issues of communication and implementationStart with what is possible, then go to what is desirable, and then deal with what is actionableNeed to spend as much time on communicating the vision as you spend on creating the visionVision need to be created in conversations, not through “wallet-cards” and memos
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Elements of a great vision
Use the mission statementmission statement as a as a starting pointstarting point
Develop a strategic visionstrategic vision that spells out a course to pursue
CommunicateCommunicate the vision in a clearclear and excitingexciting manner
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Microsoft Corporation
Empower people through great software anytime, anyplace, and on any
device.
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American Red Cross
The mission of the American Red Cross is to improve the quality of human life; to enhance self-reliance and concern for others; and to help people avoid,
prepare for, and cope with emergencies.
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Delta Airlines Vision. . . . . . we want Delta to be the WORLDWIDE AIRLINE OF CHOICE.
WORLDWIDE, …offers access to the world at the highest standards of customer service… AIRLINE, we intend to stay in the business we know best,air transportation and related services…OF CHOICE, passengers …provide the best service and value. personnel…recognizes and appreciates contributions. shareholders…earn a consistent, superior financial return.
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Communicating the visionAn exciting, inspirational vision
Challenges and motivates workforceArouses strong sense of organizational purposeInduces employee buy-inGalvanizes people to live the business
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Value of a Well-Conceived Vision and MissionCrystallizes long-term directionReduces risk of rudderless decision-makingConveys organizational purpose and identityKeeps direction-related actions of lower-level managers on common pathHelps organization prepare for the future
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Plan for changeFive things required for successful change
VisionLeadershipPolitical Will to make it happenStrategic PlanBurning Platform
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Building a power basePower network
Who is on your side, who is neutral, who is against you
Five sources of powerPosition power (I am the boss)Personal power (charisma)Expert power (I know something you don’t)Opportunity power (I am what you need now)Information power (networking)
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How do you get powerInfluence strategies
Involve the key people in the decisionControl the informationEngineer the situationRely (infrequently) on your positionUsual rational persuasionOffer desired rewardsGenerate hope of a better futureIncrease your dependency on others
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Influence strategiesWith Superiors
How are your ideas helping them?ListenBe loyal
PeersLook for common goals (alignment)Form informal problem solving groupsDeal with problem peers
SubordinatesGet trustGive credit, praise, feedback & trainingClarify your responsibility and theirs
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How is power used to get things done?
How do you use powerPick a goalDetermine (figure out)• Interdependencies• What people think of the idea• What are the power bases
– Your power base and your foesChoose how to act
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Plan for changeFive things required for successful change
Burning PlatformVisionLeadershipPolitical Will to make it happenStrategic Plan
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Definition: StrategyStrategy: Creation of a unique and valuable position involving a different set of activities
Key Aspects: risks, skills, competition, and learning
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What is Strategy?An organization’s strategy consists of the set of competitive moves and business approaches that management is employing to run the companyStrategy is management’s “game plan” to
Attract and please customers Stake out a market positionConduct operationsCompete successfullyAchieve organizational objectives
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Strategy implementation and execution is an action-oriented,
“make-it-happen” process involving people management, developing competencies and capabilities,
budgeting, policy-making, motivating, culture-building, and leadership
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Plan for changeFive things required for successful change
Burning PlatformVisionLeadershipPolitical Will to make it happenStrategic Plan
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Leaders vs. Managers (?)Both leadership & management is needed in today’s organizationsYet, the skills are radically differentManagement is about coping with complexity (reducing complexity to simplicity)Leadership is about coping with change
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Leadership & ManagementLeadership
Setting DirectionAligning PeopleMotivating PeopleArtists
• Flexibility• Creation
ManagementPlanning & BudgetingOrganization & StaffingControlling & Problem Solving
• Automobile Mechanics– Problem solving
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LeadershipSome leadership skills are innate. . . Many are learnedWhen it comes to leadership skill development
Diversity and adversity beat repetition every timeReflection is the key!
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Leadership traitsVision
Clarity of Goals / focused Have a set of skills
communication, decision making, technical Intelligent (know what don’t know) Great person to be around
Kind, honest, integrity, value others Teachers Focuses inward and outward Passion Will and Humility – level 5 leadership
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Notes on PassionLeading is a heart conversation (empathy, emotion), managing is a head conversation.Leading is a political action Leaders work on their own “self-mastery”
Leader’s are first leading themselvesNeed to be excited about what you are doingOthers see the excitement and want to follow
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Leading a Life of Meaning
Values
Operating Principles
Daily Tasks
Purpose
Vision
PhysicalVocational
Spiritual Intellectual
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PurposePurpose identification is required to develop self-mastery. Clarification of purpose may be life long process. Variations normally decreases over time.
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Victor Frankl: Notes on purpose
Ultimately, man should not ask what the meaning of his life is, but rather he must recognize that it is he who is asked…each man is questioned by life; and he can answer to life by answering for his own life; to life he can only respond by being responsible
Victor Frankl “Man Search for Meaning”
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VisionVision’s connection with purpose is critical to producing an “on-purpose” life, leading a life of meaning. Visions are launched and accomplished in a life-long journey.
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Daily TasksDaily Tasks and short-term efforts begin to align with vision and purpose given increased consciousness and “at cause” behavior.
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ValuesValues are the essential and enduring tenets by which one conducts life. They are sourced from a deep and evolving understanding of purpose, often in an iterative process.
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Operating PrinciplesOperating Principles are an operational definition of the values. They give a framework for daily tasks and decisions to be consistent with values.
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Leading a Life of Meaning
Values
Operating Principles
Daily Tasks
Purpose
Vision
PhysicalVocational
Spiritual Intellectual
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How do you lead changeGet on the balconyIdentify the adaptive challengeRegulate stressMaintain disciplined attentionEmpower (get out of the way of the power)Protect voices of leadership from below
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Create your plan for changeWhat is your burning platform
Why must we change?What is my vision for this change effort
What do I want? When do I want it?What leadership skills do I need to develop?
What’s my left-hand dribbleWho are my allies in this change effort?
Who are the power brokers?What’s my game plan?
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Transformational LeadershipFill-out leadership questionnaire for homeworkRead Transformational Leadership articleCreate mission and vision statements
Why are you here?Where do you want to go in 5 years?
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Transformational LeadershipLeadership requires both management skills and leadership skillsBehavioral ComplexityAnd thinking not Or thinking
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Transformational Leadership
Self Mastery
Conscious-ness
Personal Growth, ResiliencyDouble Loop Learning, Mentoring, Risk
People
Mastery
Enterprise
Mastery
Relationship ManagementTrust Managing AgreementsEffective Communication
BenchmarkingPerformance MeasurementValue ExchangeChief Architect and Engineer
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Transformational Leadership
Self Mastery
People Maste
ry
Enterprise Mastery
Consciousness External External FocusFocus
Internal Internal FocusFocus
Change Change FocusFocus
Standardization Standardization FocusFocus
(Power without)
(Power within)
(Out of the box)
(In the box)(What is)
(What can be)
(Results through many)
(Results producer)
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ManagerThe PerformerPerformer consistently achieves a high level of results on a personal basis.
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ManagerThe Energetic Energetic manager has a high capacity in finding and employing the energy from within, knocking down barriers.
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ManagerThe AnalyticalAnalytical manager sees patterns and cause/effect relationships. He/She understands current results and reasons for existing performance .
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ManagerThe AdministrativeAdministrative manager manages the processes/systems and applies productive control.
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Transformational Leadership
Self Mastery
People Maste
ry
Enterprise Mastery
Consciousness External External FocusFocus
Internal Internal FocusFocus
Change Change FocusFocus
Standardization Standardization FocusFocus
(Power without)
Energetic(Power within)
Administrative
(Out of the box)
(In the box)Analytical
(What is)
(What can be)
Performer
(Results through many)
(Results producer)
MANAGERMANAGER
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LeaderThe CreativeCreative leader is inventive and innovative; finds solutions to problems.
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LeaderThe VisionaryVisionary leader foresees and articulates the future.
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LeaderThe Empowering Empowering leader produces alignment and attunement toward a shared vision .
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LeaderThe Community Builder Community Builder promotes trust and alignment, capitalizes on diversity to achieve greater goals.
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Transformational Leadership
Self Mastery
People Maste
ry
Enterprise Mastery
Consciousness External External FocusFocus
Internal Internal FocusFocus
Change Change FocusFocus
Standardization Standardization FocusFocus
Empowering(Power without)
(Power within)
Creative(Out of the box)
(In the box)(What is)
Visionary(What can be)
Community Builder
(Results through many)
(Results producer)
LEADERLEADER
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Transformational Leadership
Self Mastery
People Maste
ry
Enterprise Mastery
Consciousness External External FocusFocus
Internal Internal FocusFocus
Change Change FocusFocus
Standardization Standardization FocusFocus
Empowering(Power without)
Energetic(Power within)
Creative
Administrative
(Out of the box)
(In the box)Analytical
(What is)
Visionary(What can be)
Community Builder
Performer
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Wild-dog leadership
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Change and TeamsWild dogs of Africa
Most efficient hunting groupHigher kill rate than
• Lions• Cheetahs
Change lessons• Shared vision• Shared leadership• Tenacity• Individual Skills
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Change and TeamsWild dogs of Africa
Other lessons• Zebra• Giraffe• Leadwood tree
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Managerial SkillsPerformer consistently achieves a high level of results on a personal basis—Cheetah, Wild DogEnergetic manager has a high capacity in finding and employing the energy from within, knocking down barriers—Cheetah, Wild DogAnalytical manager sees patterns and cause/effect relationships. He/She understands current results and reasons for existing performance—Zebra, Wild DogAdministrative manager manages the processes/systems and applies productive control—Zebra, Wild Dog
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Leader skillsVisionary leader foresees and articulates the future—Cheetah, Wild DogCreative leader is inventive and innovative; finds solutions to problems—Cheetah, Wild DogEmpowering leader produces alignment and attunement toward a shared vision—Wild DogCommunity Builder promotes trust and alignment, capitalizes on diversity to achieve greater goals—Wild Dog
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Alignment
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Leader’s role is to help people discover themselves.
Manipulation is at best useful in the short term.
Focusing on individual’s “vector” energy is more power than most organizations can imagine.
Alignment
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Take AwaysUnderstand what type of change you want
Standardization-managementIncremental improvementStep change• BHAG, 4-hour house, leadership
Change doesn’t work for many reasons
Often because we do not understand it
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Take AwaysParts of change
Vision• Mission based, inspiration filled, easy to communicate
Leadership• Transformation leader• And thinking, “left-hand dribble”• What is your passion
Political plan• Who can help or hinder your efforts
Strategic plan• How do you plan to close the gap• How aligned are we to the vision and strategy
Burning platform• Why do anything
