1. Teaching an Old Dog New Tricks
Managing Organizational Change

2. Mark Sherry ITIL Expert ISO 20000 Consultant MBA, MA, B.Comm
30+ ITIL Implementations
Partner in Marval North America
Consultancy
Training
ITSM software

3. Definition Also known as: Reorganization Restructuring
“Change Management is an approach to transitioning individuals, teams and organizations from a current state to a future state”.
Wikipedia May 2013
Also known as:
Reorganization
Restructuring
Business Process Engineering
Turnaround

4. Organizational Change Management≠
ITIL Change Management

5. Why Change? Growth – Organic or Acquisition
Process or Technological Innovation
Laws – Regulations
Reaction to Competition
Financial Changes: Revenue and Expenses
Demographics
Societal Values

6. We all love Change so long as it is happening to someone else.

7. Changes Affect
Organizations
Groups
Individuals

8. Organizational Change Models

9. Lewin’s Change Model

10. Bridge’s Transition Model
1 Ending Losing…
Fear, denial, anger, disorientation, frustration, anxiety
2 Neutral Zone
Low morale/productivity, anxiety, skepticism
3 New Beginning
Energized, openness, renewed commitment

11. McKinsey 7S Framework Top three are hard elements
Bottom four are soft elements
Two to three of the seven will be the vital ones based on the organization
Every element has an impact on the other elements

12. Kotter’s Organizational Change Model
First published in 1996, Kotter’s 8 Step Model is the grand-daddy of all change models and is widely used.

13. Kotter’s Organizational Change Model
Establish a Sense of Urgency
Create a Guiding Coalition
Develop a Vision and Strategy
Communicating the Change Vision
Empowering Employees for Broad-Based Action
Generating Short Term Wins
Consolidating Gains and Producing More Change
Anchoring New Approaches in the Culture

14. Step 1 - Establish a Sense of Urgency
75% of company’s management needs to buy into the change in order for it to be successful
Urgency has to be real – don’t fabricate
Loss of market share, escalating costs, new technology, competition, etc.
Look to customers, industry and stakeholders to strengthen the argument
Examine potential threats and opportunities

15. Step 1 - Establish a Sense of Urgency
Only 71 companies remain today from the original Fortune 500 list.

16. Step 2 – Create a Guiding Coalition
Four Qualities of Effective Coalition
Position Power – senior leaders on board
Expertise – informed decision making
Credibility – group needs to be respected
Leadership – proven leadership

17. Step 3 – Develop a Vision and Strategy
Six key characteristics of an effective vision
Imaginable
Desirable
Feasible
Focused
Flexible
Communicable

18. Step 3 – Develop a Vision and Strategy
Strategies
Plans
Budgets
Leadership
Management

19. Step 4 – Communicating the Change Vision
Keep the communication
Simple – no techno babble
Vivid – verbal pictures (metaphor, analogy)
Repeat, repeat, repeat
Walk the talk
Listen and be listened to
Use many different forms

20. Step 5 - Empowering Employees for Broad-Based Action
Address structural barriers
Provide needed training
Align system to vision
Deal with the troublesome managers

21. Step 6 – Generating Short-Term Wins
Why?
Provide evidence
Reward change agents
Fine tune vision and strategy
Undermine cynics
Builds momentum

22. Step 7 – Don’t Let Up (Consolidating Gains and Producing More Change)
This is a crucial point where many change initiatives die.
Need to:
Introduce more change - launch more projects
Add more help to the mix
Leadership from management
Project management and leadership from below
Reduction of unnecessary interdependencies
Drive the Change Deep Into the Organization

23. Step 8 – Make it Stick (Anchoring New Approaches in the Culture)
Cultural change comes last, not first
Results show new way is better than old
Success must be visible and communicated
Be prepared to lose people along the way
Reinforce culture through every new hire or promotion

24. Group Dynamics - Teamwork

25. Tuckman’s Stages of Group Development
Adjourning
Performing
Norming
Storming
Forming
Forming – Team acquaints and establishes ground rules. Formalities are preserved and members are treated as strangers.
Storming – Members start to communicate their feelings but still view themselves as individuals rather than part of the team. They resist control by group leaders and show hostility.
Norming – People feel part of the team and realize that they can achieve work if they accept other viewpoints.
Performing – the team works in an open and trusting atmosphere where flexibility is the key and hierarchy is of little importance.
Adjourning – The team conducts an assessment of the year and implements a plan for transitioning roles and recognizing members’ contributions.

26. Tuckman’s Stages Stage 1: “Forming” Stage 2: “Storming”
Stage 3: “Norming”
Stage 4: “Performing”
Stage 5: “Adjourning”
Individuals are not clear on what they’re supposed to do.
The mission isn’t owned by the group.
No trust yet.
High learning.
No group history; unfamiliar with group members.
People check one another out.
People are not committed to the team.
Roles and responsibilities are articulated.
Agendas are displayed.
Problems solving doesn’t work well.
People want to modify the team’s mission.
Trying new ideas.
Splinter groups form.
People set boundaries.
Anxiety abounds.
People push for position and power.
Competition is high.
Cliques drive the team.
Little team spirit.
Lots of personal attacks.
Level of participation by members is at its highest (for some) and its lowest (for some).
Success occurs.
Team has all the resources for doing the job.
Appreciation and trust build.
Purpose is well defined.
Feedback is high, well-received, and objective.
Team confidence is high.
Leader reinforces team behaviour.
Members self-reinforce team norms.
Hidden agendas become open.
Team is creative.
More individual motivation.
Team gains commitment from all members on direction and goals.
Team members feel motivated.
Individuals defer to team needs.
No surprises.
Little waste. Very efficient team operations.
Team members have objective outlook.
Individuals take pleasure in the success of the team – big winds.
“We” versus “I” orientation.
High pride in the team.
High openness and support.
High empathy.
High trust in everyone.
Superior team performance.
OK to risk confrontation.
Final assessment
List of things that could have been done better
Transition planning
Recognizing members for their contributions.
Reform and redo to reduce mourning
Celebrate !

27. How to Move From One to the Other
Action Steps: “Forming” to “Storming”
Action Steps: “Storming” to “Norming”
Action Steps: “Norming” to “Performing”
Set a mission.
Set goals.
Establish roles.
Recognize need to move out of “forming” stage.
Leader must be directive.
Figure ways to build trust.
Define a reward structure.
Take risks.
Bring group together periodically to work on common tasks.
Assert power.
Decide once and for all to be on the team.
Team leader should actively support and reinforce team behavior, facilitate the group for wins, create positive environment.
Leader must ask for and expect results.
Recognize, publicize team wins.
Agree on individuals’ roles and responsibilities.
Buy into objectives and activities.
Listen to each other.
Set and take team time together.
Everyone works actively to set a supportive environment.
Have the vision: “We can succeed!”
Request and accept feedback.
Build trust by honoring commitments.
Maintain traditions.
Praise and flatter each other.
Self-evaluate without a fuss.
Share leadership role in team based on who does what the best.
Share rewards and successes.
Communicate all the time.
Share responsibility.
Delegate freely within the team.
Commit time to the team.
Keep raising the bar – new, higher goals.
Be selective of new team members; train to maintain the tea m spirit.

28. To Mix Things Up Add a new member to the group mid stream.
Constantly change group members for each project.
Mixture of group work and day to day work.
Expand scope of group if it is high performing.
Shorten timelines.
Bring in external team members (consultants) to be a member of the team.

29. Beckhard’s Change Equation
Dissatisfaction
DRIVING
forces V
Vision F
First Steps R
RESTRAINING
forces
Resistance to Change

30. Individual Change
It is hard to do!
Lots of theories.

31. Individual Change Visualize the change. Agree outcome is positive.
Tell as many people as possible.
Turn accomplices into friends.
Set incremental targets.
Provide feedback to yourself.
Control the environment.

32. Questions
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