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Teaching an Old Dog New Tricks Managing Organizational Change.

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Presentation on theme: "Teaching an Old Dog New Tricks Managing Organizational Change."— Presentation transcript:

1 Teaching an Old Dog New Tricks Managing Organizational Change

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

3 3 “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 Definition

4 4 Organizational Change Management ≠ ITIL Change Management

5 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 6 We all love Change so long as it is happening to someone else.

7 7  Organizations  Groups  Individuals Changes Affect

8 8 Organizational Change Models

9 9 Lewin’s Change Model

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

11 11  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 McKinsey 7S Framework

12 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 13 Kotter’s Organizational Change Model 1. Establish a Sense of Urgency 2. Create a Guiding Coalition 3. Develop a Vision and Strategy 4. Communicating the Change Vision 5. Empowering Employees for Broad-Based Action 6. Generating Short Term Wins 7. Consolidating Gains and Producing More Change 8. Anchoring New Approaches in the Culture

14 14  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 Step 1 - Establish a Sense of Urgency

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

16 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 17 Step 3 – Develop a Vision and Strategy  Six key characteristics of an effective vision  Imaginable  Desirable  Feasible  Focused  Flexible  Communicable

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

19 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 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 21 Step 6 – Generating Short-Term Wins  Why?  Provide evidence  Reward change agents  Fine tune vision and strategy  Undermine cynics  Builds momentum

22 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 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 24 Group Dynamics - Teamwork

25 25 Tuckman’s Stages of Group Development FormingForming NormingNorming StormingStorming PerformingPerforming AdjourningAdjourning

26 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 ! s/HANDOUT_-_Tuckmans_Team_Development_Model.pdf

27 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. s/HANDOUT_-_Tuckmans_Team_Development_Model.pdf

28 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 29 Beckhard’s Change Equation D V F R Dissatisfaction Vision First Steps Resistance to Change DRIVINGforces RESTRAININGforces

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

31 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 32 Questions Marval North America


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