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Teaching an Old Dog New Tricks

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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 Marval North America

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