1. Driving Change in SOA Implementations: Can Organizations & People Really Change?
Dr. Craig J. Petrun
The MITRE Corporation
Center for Enterprise Modernization (CEM)
September 29, 2008

2. Agenda Making the case for Organizational Change
Do IT projects really impact people?
What is the nature of the change process?
Linear vs. Non-Linear
Understanding how organizations and people change?
The impact of the systems nature of organizations
The impact of the individual on enabling change
Navigating the change process - The Pragmatic Side
Leadership, communications, resistance, training, transition plans, managing risk
Implementing change in organizations
Lessons Learned

3. Making the case for Organizational Change Management
Assertion:
All Information Technology implementations lead to changes in how the organization currently operates
Minor to radical
Problem:
In most cases (even today) the impact that the change has on the people within the organization is not appropriately addressed or not addressed at all!
In most cases a reasonable effort is focused on managing the technology and process changes
Outcome:
Many IT implementations fail to deliver the expected or promised benefits to the business (tangible or intangible)
Business users become frustrated and lose confidence in the IT organization

4. Making the case for Organizational Change Management – SOA Transformational Challenges
People
Need to change behavior of employees and managers toward a more service oriented behavior
Mangers need to think more like leaders within a services framework
Employees – more expected from individuals, it requires them to share their skills, services knowledge in a repository
Use of Integrated teams – need focus on team roles, behaviors
Stakeholder Management – gain support for why SOA helps the enterprise and to make sure key individuals are involved
Governance
Must establish lines of responsibility, authority, and communication
Need for making decisions about services across the lifecycle of services and the enterprise
Technical
Lack of control
Trusting mission critical capability to another organization, Security issues – more exposure, performance degradation, performance in real world (behavior under load), control over testing environments

5. Making the case for organizational change management initiatives?
Source: Flint, D., “The User’s View of Why IT Projects Fail,” © 2005 Gartner, Inc. Findings based on 520 failed IT Projects with over 1000 staff.

6. Agenda Making the case for Organizational Change
Do IT projects really impact people?
What is the nature of the change process?
Linear vs. Non-Linear
Understanding how organizations and people change?
The impact of the systems nature of organizations
The impact of the individual on enabling change
Navigating the change process - The Pragmatic Side
Leadership, communications, resistance, training, transition plans, managing risk
Implementing change in organizations
Lessons Learned

7. The Change Process: Moving through the Transition State
Present
State
Transition
State
Future
State
ENDING NEUTRAL ZONE Beginning
Change is the act of letting go of existing behaviors and attitudes, and moving to and establishing new behaviors and attitudes that achieve and sustain desired business outcomes.
Organizational Transitions, Richard Beckhard Managing Transitions, Making the most of Change, William Bridges

8. Understanding how organizations change can help us prepare for the long journey ahead
Establish Urgency & Scope
Create & Communicate the Vision
Drive Commitment, Empowerment
Establish Change Infrastructure, Plans & Wins
Sustain & Refine the Change
Measure progress, demonstrate value, communicate success, take corrective action if needed
Introduce new tools, technology, reward systems, training
Engage workforce in planning the change, validate costs & benefits
Engage leadership; communicate the compelling need for change
Identify stakeholders, costs, and benefits of the change
Kotter, J Leading Change

9. The path to change for both individuals and organizations is non-linear
The Change Road Map – “The road ahead is full of landmines.”
The nature of change unfolds in a series of dynamic but manageable phases that require preparation.
The Change Monster by Jeanie Daniel Duck, Crown Business, 2001 (Illustration by Gene Mackles)

10. Agenda Making the case for Organizational Change
Do IT projects really impact people?
What is the nature of the change process?
Linear vs. Non-Linear
Understanding how organizations and people change?
The impact of the systems nature of organizations
The impact of the individual on enabling change
Navigating the change process - The Pragmatic Side
Leadership, communications, resistance, training, transition plans, managing risk
Implementing change in organizations
Lessons Learned

11. Understanding & assessing the complexity of organizational change
Input
Leadership
Motivation
Work Unit Climate
Management Practices
Individual Needs & Values
Systems (Policies & Procedures)
Organizational Culture
Task & Individual Skills
Structure
Mission & Strategy
Individual & Organizational Performance
Throughput
Output
External
Environment
Most organizational change is driven by environmental impact
Boxes indicate primary variables affecting organizational performance
Arrows indicate critical linkages
A change in any variable will ultimately affect every other variable
Higher level variables have greater weight in effecting organizational change
A causal model of organizational performance and change, W.Warner Burke & George H. Litwin, Journal of Management, 1992, vol. 18.

12. The Spiral of Individual Change
Understanding the nature of individual change provides additional insights
The Spiral of Individual Change
Maintenance: Sustaining behavior change until integrated into lifestyle
Action: Making the change
Pros vs. Cons
Preparation: Getting ready to make change
Contemplation: Thinking about change
Pre-contemplation: Not aware of need for change
Prochaska, Norcross & DiClemente, Changing for Good, Harper-Collins Publishers

13. Agenda Making the case for Organizational Change
Do IT projects really impact people?
What is the nature of the change process?
Linear vs. Non-Linear
Understanding how organizations and people change?
The impact of the systems nature of organizations
The impact of the individual on enabling change
Navigating the change process - The Pragmatic Side
Leadership, communications, resistance, training, transition plans, managing risk
Implementing change in organizations
Lessons Learned

14. Navigating the Change Process: The role of leadership — Key challenges
Executive behavior that encourages others to take required actions.
Key Challenges:
1. Ability to articulate a clear vision of the future
2. 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
Yearout & Miles, Growing Leaders: A Leader-Builder Handbook. ASTD Publications

15. Why is communicating during times of change so difficult?
Navigating the Change Process: The role of stakeholder communication
Why is communicating during times of change so difficult?
Interference
Interference
Customers/
Beneficiaries
Unclear vision
Leadership not aligned
Internal
Managers and
Supervisors
Internal
Workforce
Lack of
resources
SOA
Messages
Fear of change
External
Business
Partners
Other
Key
Audiences
Failure to
train staff
in new skills
Failure to
communicate
Legislators
Public
Media
Special Interests lobbying against change
Benefits of
change
not clear

16. Navigating the Change Process: Tools for assessing & managing risk: The DICE Model
The DICE Model measures four critical elements in organizational change:
Duration
The duration of time until the change program is completed if it has a short life span; if not short, the amount of time between reviews of milestones.
Integrity
The project team's performance integrity; that is, its ability to complete the initiative on time. That depends on members' skills and traits relative to the project's requirements.
Commitment
The commitment to change that both top management (c1) and employees (c2) affected by the change display.
Effort
The effort over and above the usual work that the change initiative demands of employees.
The Hard Side of Change Management. Sirkin, Keenan and Jackson, HBR, October 2005
DICE Score = D + (2 x I) + (2 x C 1 ) + C 2 + E

17. Agenda Making the case for Organizational Change
Do IT projects really impact people?
What is the nature of the change process?
Linear vs. Non-Linear
Understanding how organizations and people change?
The impact of the systems nature of organizations
The impact of the individual on enabling change
Navigating the change process - The Pragmatic Side
Leadership, communications, resistance, training, transition plans, managing risk
Implementing change in organizations
Lessons Learned

18. Key lessons learned from the public sector
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 show progress 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 and report on progress
Reference: 2002, Mergers and Transformation: Lessons learned from DHS & other Agencies, GAO SP
Reference: 2006, Change Management in Government, Harvard Business Review, May.

19. Industry Trends in Organizational Transformation
Key Strategies for creating change include:
Dedicate resources from the start (organizational energy)
People / Financial / Senior Management Engagement
Close key implementation gaps
Teach new mindsets
Start with small group on tangible project – demonstrate success
Mission & Vision statements are not enough – action learning a must
Metrics and incentives
Most times they reinforce past behaviors – penalize for new actions
Develop comprehensive / innovative metrics that align to new behaviors
Ways to overcome resistance
Provide safe space in organization to overcome “antibodies”
Senior Management Engagement
Difficult for middle management to drive transformation
Must get senior leaders (one by one) aligned around the need to act differently
Transform for Growth: Organizations must re-create to compete. Strategy & Innovation, Volume 6, No.1, Jan.-Feb. 2008
Based on Innosight administered survey to 300+ Industry leaders on implementing organizational transformations

20. 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 creation of an “integrated” transition plan
Insight into the nature of how individuals change
Leadership, communications, training, transition plans…
…..and, of course, ORGANIZATIONAL ENERGY!

21. Schrage’s Law of Organizational Obviousness
Closing Thoughts
Schrage’s Law of Organizational Obviousness
“The smarter the organization thinks it is, the more complacently it manages the obvious.”
Michael Schrage: Co-director of the MIT Media Lab’s eMarket Initiative

22. Resources / References
Bieberstein R., Laird R.,Jones K., & Mitra T Executing SOA: A practical Guide for the Service Oriented Architect. IBM Press, May
Burke, Warner. , Organizational Change: Theory and Practice. Sage Publications, 2008.
Burke, W. & Litwin, G. "A Casual Model of Organizational Performance and Change," Journal of Management, Vol. 18, No. 3,1992.
Duck, Jeanie The Change Monster – The Human forces that fuel or foil corporate transformation and change. Crown Publishing.
Hubble, Duncan & Miller, The Heart and Soul of Change.
Kotter, J. P “Winning at Change” Leader to Leader, 10 (Fall 1998): 27 – 33
Lawson E., Price C. The Psychology of Change Mgmt. McKinsey Quarterly, 2003.
Kelman, S. Unleashing Change: A Study of Organizational Renewal in Government. Published by the Brookings Inst
Ostroff, Frank, May “Change Management in Government,” Harvard Business Review.
Pizette, L. Significant SOA Federal Leadership Challenges, 2008 MITRE SOA Conf., April
Simon, Robert Levers of Organizational Design. Harvard Business School Press
Velicer, Prochaska, Norman, & Redding Applications of the Transtheoretical Model of Behavior Change. Homeostasis, 38, 216 – 23
Mergers and Transformations: Lessons Learned from DHS & Other Federal Agencies, November 2002, GAO SP.

23. Navigating the Change Process: Resistance – compliance vs. commitment
Performing
Doing
We want to do it.
Resistance
We will do it
Adapting & Integrating
Absorbing
Resistance
Accepting & Supporting
Perceived Threat
Opportunities Perceived
Resistance
Implications
How it will affect us?
Implications
How it will affect us?
Comprehension
What will happen and why?
Realization
Something is going to change
Realization
Something is going to change

24. 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 and organizational needs:
Directly vs. indirectly impacted users
Develop the right training, at the right time, for the right users
Training Evaluation

25. Navigating the Change Process: Creating the integrated organizational transition plan
Gap Closure
People, Process
Technology
Impact Analysis
Organizational Transition Plan
Transformational
Transactional
Communications
Organizational Gaps
The Draft Transition Plan is created. The stakeholder analysis is validated and to-be organizational risk/gap mitigation actions are created. The change leader/team and the business then begin to agree on necessary change actions.
The Final Integrated (people, process, technology) Transition Plan is completed and implemented. This is critical to tracking progress on agreed upon change actions and for holding leadership accountable during implementation.
The strategy and vision are validated. The organizational assessment is completed. Costs and benefits are documented. Stakeholder needs & support are documented