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Shaking the Box:
Creating Indelible
Organizational Change
Kirk Holmes
President, Holmes and Associates, Inc.
http://www.holmesinc.net
© Holmes and Associates, Inc. All Rights Reserved
© Holmes and Associates, Inc. All Rights Reserved
IT Organizations are Challenged
• Declining budgets
• Increasing customer demands
• Competition and outsourcing
• Fast technology change
2
© Holmes and Associates, Inc. All Rights Reserved
Customer
IT
Staff
If you aren’t already following the Best
Practices available with the money you
already have, then what kind of service
are you giving me now?
Best Practice Programs
Can Be Hard to Sell
3
The Culture Challenge: How do you transform your organizational culture to embrace best practices without major new funding?
“Process crap” “Flavor of the day”
“Bureaucracy”
“I’m special”
© Holmes and Associates, Inc. All Rights Reserved
YOU Are Changing Places
• 3 organizational change scenarios
• Which one of the following three leaders
would you rather change places with
(inheriting their situation and adopting
their plan/approach)?
4
© Holmes and Associates, Inc. All Rights Reserved
Scenario 1: Executive Push to
Fully Implement ITIL
Deputy CIO for infrastructure (data centers, network, operations) embraces
ITIL wholeheartedly and has carte blanche for ITIL from the soon-to-retire CIO
•Executive plan is to move quickly and aggressively:
• Put entire Ops leadership team and employees through ITIL training
• Require contractors to train their employees through contract requirements
• Perform Gap Analysis (internal only) against ITIL and defines roadmap
• Target Incident, Service Desk, Change, Config, Release Management
• Lock down the desktops and freeze the baseline as they implement
virtualization
• Take back control from rogue business unit operations that cause major
disruptions through unplanned and invisible changes
• Not formally engage customers executives in Phase 1 in order to ensure that
the Ops team has positive results to show before they engage (credibility)
• Use proof of reductions in cost, improvements in stability, and improvements
in operational response
5
© Holmes and Associates, Inc. All Rights Reserved
Scenario 2: Mid-Level Manager
Focuses on Narrow Slice of ITIL
Mid-level data center manager in an investment bank
owns servers running major trading applications
• Bootstrapped knowledge of ITIL
• No success in getting any funding, executive support, or peer
support for “process crap”
• The manager’s plan is to:
• Engage with the most important IT Customer
• Make component availability visible to everyone through proofs of
concept and vendor demonstrations
• Trace availability to the component level and tie to services
• No money for training, tools, or process reengineering
6
© Holmes and Associates, Inc. All Rights Reserved 7
Scenario 3: Voluntary Process &
Technical Transformation
Senior VP of Operations for a national service provider
• Predecessor’s best practices program had just FAILED • History of strong financial success (“what problem?”)
• Little control over key operations functions
• History of non-cooperation between functional silo’s
• Data centers spread all over the country serving business Divisions
• Executive plan is to enlist his entire management team in voluntary process transformation
• Use ITIL, PMBOK, etc but not explicitly refer to them
• No formal ITIL training or assessment is planned or funded
• Use limited consulting budget to coach, but depend on management team to buy-in and become the leaders
• Focus on business objectives
© Holmes and Associates, Inc. All Rights Reserved
GROUP ASSIGNMENT
• Pick one of the three leaders you would
rather change places with (inheriting their
situation and adopting their plan/approach)
• Gather with others who made the same
choice
• Take 10 minutes to brainstorm:
• Biggest reasons you chose this scenario
• Biggest risks and concerns
8
© Holmes and Associates, Inc. All Rights Reserved 9
A Change Model You Can Use:
8 Steps to Cultural Change
1. Urgency
2. Coalitions
3. Vision and strategy
4. Communication
5. Empowerment
6. Quick Wins
7. Consolidation
8. Enshrined Culture
From J.P. Kotter’s “Eight Steps to transforming your organization”, as depicted in “Information Technology Infrastructure Library®, Service Transition.” TSO. 2007
© Holmes and Associates, Inc. All Rights Reserved 10
STEP 1: Establish a Sense
of Urgency
• Storm on the horizon
• Metrics
• “OH NO” moment
• Inspire desire to create a positive outcome (altruistic motivation)
© Holmes and Associates, Inc. All Rights Reserved
Kirk’s Favorite Change
Tool #1
11
1
Leadership
2
Strategic
Planning
5
Workforce
Focus 7
Results
3
Customer and
Market Focus
6
Process
Management
4
Measurement, Analysis, and Knowledge Management
Organizational Profile:
Environment, Relationships, and Challenges
http://www.quality.nist.gov/
Baldrige National Quality Award Criteria
A tool for understanding and managing components of culture
© Holmes and Associates, Inc. All Rights Reserved 12
Try The Baldrige Framework
• Brief 1 day self-assessment or long term program
• Discussion
• Commitment
• Collaboration
Self-Assessment Categories:
LEADERSHIP
• The reward and recognition system is
aligned with our business and quality
goals and accomplishments are
publicized and shared
• Our vision is shared and
communicated such that everyone
knows where we are going and how
we plan to get there (e.g., products
and services, quality, customer
service, business success)
Example of Using a Self-Assessment Workshop
© Holmes and Associates, Inc. All Rights Reserved
Using “the Spread” to
Understand the Culture
• People learn from each other
• Strengths are affirmed and built upon
• Weaknesses are challenged
• Honesty usually prevails
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% of Responses
Falling into each
Rating Band
0% 100%
LEADERSHIP WORL
D
CLASS
Self-
Assessment
Ratings 40
0
20
60
100
80
0% 20% 40% 60% 80% 100
%
0-20
21-40
41-60
61-80
81-100
0% 50% 100%
0-20
21-40
41-60
61-80
81-100Optimistic
Pessimistic
© Holmes and Associates, Inc. All Rights Reserved 14
SCENARIO 3: The First
Self-Assessment
% of Responses Falling into each Rating Band
0% 100% 0% 100% 0% 100% 0% 100% 0% 100% 0% 100% 0%
WORLD
CLASS
Management
Summit
Self-
Assessment
Ratings
40
0
20
60
100
80
0% 20% 40% 60% 80% 100
%
0-20
21-40
41-60
61-80
81-100
0% 50% 100%
0-20
21-40
41-60
61-80
81-100
0% 20% 40% 60% 80% 100
%
0-20
21-40
41-60
61-80
81-100
0% 50% 100%
0-20
21-40
41-60
61-80
81-100
0% 20% 40% 60% 80% 100
%
0-20
21-40
41-60
61-80
81-100
0% 50% 100%
0-20
21-40
41-60
61-80
81-100
0% 50% 100%
0-20
21-40
41-60
61-80
81-100
0% 50% 100%
0-20
21-40
41-60
61-80
81-100
0% 50% 100%
0-20
21-40
41-60
61-80
81-100
0% 50% 100%
0-20
21-40
41-60
61-80
81-100
© Holmes and Associates, Inc. All Rights Reserved 15
Step 2: Guiding Coalition
• Heroic missions
• Personal
• Something bigger
• Shared
commitment
• Geographic dispersion and lack of
cohesion can be a huge challenge
© Holmes and Associates, Inc. All Rights Reserved 16
Step 3: Vision and Strategy
Where do you start?
• Conduct assessments, Gap
Analysis (ITIL and/or other
frameworks)
• Focus on Points of Pain, clear
Customer impact, and ROI
© Holmes and Associates, Inc. All Rights Reserved 17
SCENARIO: Phasing Led to
Initiatives
© Holmes and Associates, Inc. All Rights Reserved 18
Step 4: Communicate
MULTI-MODAL MESSAGE
© Holmes and Associates, Inc. All Rights Reserved 19
SCENARIO 3
Communication Keys
• Public affirmation
• Clear communication of expectations
• Opportunity for feedback and discussion
• Focus on the personal stakes (WIIFM)
• Shuttle diplomacy
• Cool names are cool
© Holmes and Associates, Inc. All Rights Reserved 20
Step 5: Empower Action
• Go beyond talk to action
• Individuals, Teams, Executives
• Train, Train, Train
• Accountability
• Big promotions/bonuses
• Demotions/termination of roadblocks
© Holmes and Associates, Inc. All Rights Reserved 21
Step 6: Quick Wins
• Not too big and not too small
• Noticeable and important
• Don’t forget all of the dimensions
© Holmes and Associates, Inc. All Rights Reserved 22
Step 7: Consolidate Gains
• Continue executing the plan
• Expand
• Scope
• Participation
• Process integration
• More training
• Investments
Raising the Stakes
Inserting the Wedge
© Holmes and Associates, Inc. All Rights Reserved 23
Step 8: Enshrine the New
Culture
• Embed the new way of doing business • Language
• Processes
• Documentation
• Tools
• New hires
• Celebrate
• Focus on future • Continual Service Improvement (CSI)
© Holmes and Associates, Inc. All Rights Reserved 24
Cultural Guiding Principles
• Focus on the things that we can control
• Align all efforts and activities around the business objectives
• Align new transformation tasking with interests, passion, expertise, and existing tasks of employees and managers
• Hit dates
• One team with one common goal; Collaborate
• Leverage existing operational framework
• Prioritize
• Zero tolerance of defects
• Make incremental, tangible progress but understand long-term goal
• Involve all employees: All Hands On Deck!
• Celebrate progress!
© Holmes and Associates, Inc. All Rights Reserved
What Happened in Real
Life?
• Scenario 1: Senior Executive Push to
Fully Implement ITIL
• Scenario 2: Mid-Level Manager Focuses
on Narrow Slice of ITIL
• Scenario 3: Enterprise-wide Voluntary
Process & Technical Transformation
25
© Holmes and Associates, Inc. All Rights Reserved 26
Scenario 3: How Fast Did
Things Start?
Within 60 days:
• Support from Subsidiary President
• Personal initiative leadership by 100% of senior
management team
• Committed participation from >30% of field
employees
• Strong support and collaborative process
development with other functional disciplines
© Holmes and Associates, Inc. All Rights Reserved 27
Key Cultural Differences
BEFORE AFTER
Each data center says
their way represents best
practice
Data centers lead the way
in ITIL implementation
“We need our uniqueness
because we know our
customers best”
“We need more audits and
zero tolerance for non-
compliance.”
SVP and Consultant do
most of the talking at
Summit
SVP and Consultant do
virtually no talking
© Holmes and Associates, Inc. All Rights Reserved 28
SCENARIO 3 Business Results
• Reduced capital expense by over $25 Million
• Increased Business Unit satisfaction
• Decreased MTTR
• Market leadership
• Consolidation and streamlining
• New rewards and recognition
• New leadership core
• Harmony
© Holmes and Associates, Inc. All Rights Reserved 29
SCENARIO 3: Avoided $25
Million Project
# Events
Per Month
Total Durations Per Month
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
OLD TRANSFORMATION
Lingering instability
High customer service costs
New fixes never fixed it
Getting worse!
69% reduction in # of events
73% reduction in MTTR
Almost defect-free ITIL
Implementation
13 data centers
and hdqts
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
# Events
Per Month
Total Durations Per Month
Dev &
Deploy
Start Pilot
© Holmes and Associates, Inc. All Rights Reserved
Change the culture
and you can
change your world
31
Thank You!
Kirk Holmes Holmes and Associates, Inc.
(301) 998-6108 [email protected]
http://www.holmesinc.net
Technology
Process
People
World Class