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PART 7 : Managing Change Dariusz Gall Jean Charles Salvin.

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1 PART 7 : Managing Change Dariusz Gall Jean Charles Salvin

2 Introduction People hate change... and that's because people hate change.... I want to be sure that you get my point. People really hate change. They really, really do. Steve McMenamin The Atlantic Systems Guild London (1996)

3 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

4 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

5 Structural Change(1) Organization issues Organization issues Typically designed to fight the last war Typically designed to fight the last war Many problems is hard to identify Many problems is hard to identify Interest in the status quo Interest in the status quo Leadership situation Leadership situation The Autocracy The Autocracy The Political Arena The Political Arena The Closed System The Closed System The Meritocracy The Meritocracy

6 Structural Change(2) Symptoms of overbearing Autocrat: Symptoms of overbearing Autocrat: Sole spokesperson Sole spokesperson Low opinion of his or her subordinates Low opinion of his or her subordinates Small circle of intimates Small circle of intimates No formal plans, procedures, or jobs description, Little or no delegation of authority, No formal plans, procedures, or jobs description, Little or no delegation of authority, No reward and recognition programs No reward and recognition programs Creativity is limited Creativity is limited

7 Structural Change(3) Symptoms of Autocracy – Comparison Symptoms of Autocracy – Comparison Leaders Leaders Believe themselves Believe themselves Good salesperson Good salesperson Autocrats Autocrats Lack confidence Lack confidence Prepare their positions in the secret, before announcing their final conclusions Prepare their positions in the secret, before announcing their final conclusions ”The autocratic style develops over many years, and it is rarely possible to change it” ”The autocratic style develops over many years, and it is rarely possible to change it”

8 Structural Change(4) Other Leadership Problems Other Leadership Problems Political Arena and Closed System Political Arena and Closed System Find and install new energetic leader Find and install new energetic leader Corporate Level → Changes must be initiated outside Corporate Level → Changes must be initiated outside Department Level → Leadership problems are identified and addressed rather quickly Department Level → Leadership problems are identified and addressed rather quickly

9 Structural Change(5) Other Leadership Problems Other Leadership Problems Meritocracy – Problems Meritocracy – Problems Organization pay less attention to customers Organization pay less attention to customers Cost controls, productivity measurements, and profit management receive little or no emphasis Cost controls, productivity measurements, and profit management receive little or no emphasis View narrowed on product → no vision or time for long-term improvement, e.g. process, tools, and personnel-development View narrowed on product → no vision or time for long-term improvement, e.g. process, tools, and personnel-development

10 Structural Change(6) The Aging Organization The Aging Organization Creative Organizations, Creative Organizations, Grow rapidly, highly innovative, undergo perpetual change Grow rapidly, highly innovative, undergo perpetual change Maintenance Organizations, Maintenance Organizations, Stable, formalized plans and procedures, emphasize cost management Stable, formalized plans and procedures, emphasize cost management Focused on productivity and control Focused on productivity and control

11 Structural Change(7) Creative-Phase Creative-Phase Lack of long-term direction, Lack of long-term direction, Rapid management → long-term problems accumulate Rapid management → long-term problems accumulate Inevitably lead to maintenance phase, Inevitably lead to maintenance phase, Moving from creative phase to maintenance phase is traumatic Moving from creative phase to maintenance phase is traumatic Addressing Creative-Phase Problems Addressing Creative-Phase Problems

12 Structural Change(8) Maintenance-Phase Maintenance-Phase Focus is shifted to the marketplace and technical awareness Focus is shifted to the marketplace and technical awareness Managers should challenge their people to demonstrate the technological superiority, and competitive leadership Managers should challenge their people to demonstrate the technological superiority, and competitive leadership Addressing Maintenance-Phase Problems… Addressing Maintenance-Phase Problems…

13 Structural Change(9) Management Priorities Management Priorities Creative phase → innovation, building base for sustained growth, Creative phase → innovation, building base for sustained growth, Maintenance phase → running an established business. Maintenance phase → running an established business.

14 Structural Change(10) Organizational Tenure Organizational Tenure Working together long time leads to complacency and intellectual stagnation Working together long time leads to complacency and intellectual stagnation The optimum age of group 1-5 years The optimum age of group 1-5 years Study of 50 project teams by Katz and Allen Study of 50 project teams by Katz and Allen First 1.5 years → performance increase, next 5 years → flat period, 5 and more → decline First 1.5 years → performance increase, next 5 years → flat period, 5 and more → decline “Not Invented Here” syndrome “Not Invented Here” syndrome Addressing the Problems of Tenure Addressing the Problems of Tenure Working-level reorganization Working-level reorganization

15 Structural Change(11) What is new for us ? What is new for us ? Discussion/Questions Discussion/Questions “Even when others convince the autocrat of the need for change, such behaviors are often so deeply rooted […] that self-improvement is extremely difficult”. “Even when others convince the autocrat of the need for change, such behaviors are often so deeply rooted […] that self-improvement is extremely difficult”. “The greatest danger is the technologist's tendency to believe that all problems have technical answers. Focusing on laboratory and plant, the organization can lose touch with the marketplace”. […] “The greatest danger is the technologist's tendency to believe that all problems have technical answers. Focusing on laboratory and plant, the organization can lose touch with the marketplace”. […]

16 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

17 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

18 The Change Process(1) Resistance to Change Resistance to Change “Change is great when you are its agent; its only bad when you are its object” [Sherwin] “Change is great when you are its agent; its only bad when you are its object” [Sherwin] The resistance as a symptom, rather than problem - experiment. The resistance as a symptom, rather than problem - experiment. Identical change was introduced to several factory groups. Identical change was introduced to several factory groups. Groups divided in two subsets: no explanation – members involved in planning Groups divided in two subsets: no explanation – members involved in planning Results: Groups involved in planning reached higher performance level Results: Groups involved in planning reached higher performance level Why do people resist? Why do people resist?

19 The Change Process(2) Unfreezing Unfreezing Unfreezing is a way to overcome the resistance. Examples: brainwashing, process used on new military recruits, etc. Unfreezing is a way to overcome the resistance. Examples: brainwashing, process used on new military recruits, etc. Engineers and scientists are rarely the source of the most resistance, Engineers and scientists are rarely the source of the most resistance, In fact first- and second-level management present the greatest resistance, In fact first- and second-level management present the greatest resistance,

20 The Change Process(3) Unfreezing Unfreezing Set forth an ideal Set forth an ideal Leavitt suggests: Leavitt suggests: Make the problems more obvious Make the problems more obvious Simply point them out Simply point them out Wait for the employees to come to managers for help Wait for the employees to come to managers for help Example of Alcoholics Anonymous (AA) groups Example of Alcoholics Anonymous (AA) groups

21 The Change Process(4) Planning the Change Planning the Change After unfreezing, management should fulfill the vacuum with change plan and implementation steps After unfreezing, management should fulfill the vacuum with change plan and implementation steps Change Agent – criteria: Change Agent – criteria: Agents should be enthusiastic about leading the change process, Agents should be enthusiastic about leading the change process, Agents should be both technically and politically capable Agents should be both technically and politically capable Agents need the respect of the people they are to deal with Agents need the respect of the people they are to deal with Agents must have management’s confidence and support Agents must have management’s confidence and support Agents should have got strong views on the subject Agents should have got strong views on the subject Are the Agents the PMs of Change Projects? Are the Agents the PMs of Change Projects?

22 The Change Process(5) Participative Planning Participative Planning Identify the people affected by the change Identify the people affected by the change Involve these people, in the process Involve these people, in the process Many people are involved → working group should be established Many people are involved → working group should be established The planning teams develop: ways of implement the change, anticipate problems, and incept way to address them The planning teams develop: ways of implement the change, anticipate problems, and incept way to address them

23 The Change Process(6) Implementing the Change Implementing the Change Time needed to the change implementation varies Time needed to the change implementation varies Purely technical changes → fast change Purely technical changes → fast change People’s behavior involved → problems People’s behavior involved → problems People have to understand the change → a more gradual pace of changes People have to understand the change → a more gradual pace of changes Continuing evidence of progress Continuing evidence of progress Refreezing Refreezing Purpose → to make the change permanent Purpose → to make the change permanent Problems Problems It is hard to incorporate the changes in professionals permanent working methods It is hard to incorporate the changes in professionals permanent working methods Time pressure often cause skipping new introduced methods Time pressure often cause skipping new introduced methods Lack of continuing evidence of progress Lack of continuing evidence of progress

24 The Change Process(7) Refreezing – Addressing problems Refreezing – Addressing problems Keep in the place the management team that instituted the change Keep in the place the management team that instituted the change Modify the organization’s procedures to incorporate the change as part of bureaucratic process Modify the organization’s procedures to incorporate the change as part of bureaucratic process Use the measurement system to foster new methods through bonus Use the measurement system to foster new methods through bonus Establish a dedicated staff for monitoring the changed process Establish a dedicated staff for monitoring the changed process Educate Educate

25 The Change Process(8) Setting Goals Setting Goals Why Goals are important? Why Goals are important? If people understand, accept and that they can meet the goal, they will work harder to do so. If people understand, accept and that they can meet the goal, they will work harder to do so. Goals should be: Goals should be: Clear and measurable, Clear and measurable, Reasonably close to professionals’ ability to perform Reasonably close to professionals’ ability to perform Broken into small, and realistic increments Broken into small, and realistic increments Immediate related to daily work. Immediate related to daily work. “Managers can damage motivation by pressing plans too aggressively” “Managers can damage motivation by pressing plans too aggressively” People should define they own goals. People should define they own goals.

26 The Change Process(9) The Process Improvement Cycle The Process Improvement Cycle One way to implement short-term goals and long- term strategy is to view change as a cyclic process One way to implement short-term goals and long- term strategy is to view change as a cyclic process Example of the Process Improvement Cycle is the Software Engineering Institute’s IDEAL change model. Example of the Process Improvement Cycle is the Software Engineering Institute’s IDEAL change model.

27 The Process Improvement Cycle- IDEAL(1) Initiating Initiating Diagnosing Diagnosing Establishing Establishing Acting Acting Learning Learning [IDEAL]

28 The Process Improvement Cycle- IDEAL(2) Initiating Initiating Stimulus for Change Stimulus for Change Set Context Set Context Build Sponsorship Build Sponsorship Charter Infrastructure Charter Infrastructure [IDEAL]

29 The Process Improvement Cycle- IDEAL(3) Diagnosing Diagnosing Characterize Current & Desired States Characterize Current & Desired States Develop Recommendations Develop Recommendations [IDEAL]

30 The Process Improvement Cycle- IDEAL(4) Establishing Establishing Set Priorities Set Priorities Develop Approach Develop Approach Plan Actions Plan Actions [IDEAL]

31 The Process Improvement Cycle- IDEAL(5) Acting Acting Create Solution Create Solution Pilot/Test Solution Pilot/Test Solution Refine Solution Refine Solution Implement Solution Implement Solution [IDEAL]

32 The Process Improvement Cycle- IDEAL(6) Learning Learning Analyze and Validate Analyze and Validate Propose Future Actions Propose Future Actions [IDEAL]

33 The Change Process (10) The Process Staff The Process Staff Software Engineering Process Groups (SEPG) Software Engineering Process Groups (SEPG) Groups of professionals to assist in the work supporting software process improvement Groups of professionals to assist in the work supporting software process improvement Caveats of SEPG Caveats of SEPG Keep the SEPG small, Keep the SEPG small, Dedicate the SEPG to process change Dedicate the SEPG to process change Hold project managers responsible for implementing process change. Hold project managers responsible for implementing process change.

34 The Change Process (11) What is new for us ? What is new for us ? Discussion/Questions Discussion/Questions “Change is great when you are its agent; it is only bad when you are its object” “Change is great when you are its agent; it is only bad when you are its object” Mantra: “The fundamental response to change is not logical, but emotional”.

35 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

36 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

37 Technical Assessment (1) Definition Definition Improve → Search problems & Think differently Improve → Search problems & Think differently The Goals The Goals Make the ‘Current Map’ of the organization Make the ‘Current Map’ of the organization Resolve problems & improve work quality, productivity and creativity Resolve problems & improve work quality, productivity and creativity Problems Problems People are busy “Let’s do our work, that’s enough!!” People are busy “Let’s do our work, that’s enough!!” Inefficiencies are so entrenched Inefficiencies are so entrenched Senior Management is unaware of worker’s problems Senior Management is unaware of worker’s problems

38 Technical Assessment (2) Self-assessment : Self-assessment : Resistance to problems – Level of acceptance Resistance to problems – Level of acceptance Hard task – Reconsider yourself Hard task – Reconsider yourself Involve managers & examine the operations Involve managers & examine the operations Remove Constraints Remove Constraints How to start ? How to start ? Assessment guidelines : Assessment guidelines : Management team’s agreement Management team’s agreement Open to public and make it clear – Problems Open to public and make it clear – Problems Take opinions Take opinions

39 Technical Assessment (3) The Software Engineering Institute assessments (SEI) The Software Engineering Institute assessments (SEI) Goals : Solve budgets and project errors Goals : Solve budgets and project errors Establish criteria Establish criteria Capability Maturity Model (CMM) Capability Maturity Model (CMM) What is a CMM ? What is a CMM ? What is a Maturity Level ? What is a Maturity Level ?

40 Technical Assessment (4) The Assessment Process The Assessment Process Obtain agreement of managers and convince Obtain agreement of managers and convince Select the assessment team Select the assessment team Select sample-projects to study Select sample-projects to study Talk and concentrate on project’s handling Talk and concentrate on project’s handling The Assessment Questionnaire The Assessment Questionnaire Developed by SEI Developed by SEI Launch a process improvement program Launch a process improvement program

41 Technical Assessment (5) Confidentiality Problems : Keep trust and door opened Try to Apply problems in a more general way. Avoid ranking & Marks Preserve anonymity Assessment Considerations Keep a positive attitude. Motivation is crucial Make planning and rehearsals.

42 Technical Assessment (6) Continuous assessments Continuous assessments Adjust your organization’s process. Adjust your organization’s process. Acceptation is a big step. Acceptation is a big step. Changes need discipline Changes need discipline Improvement results Improvement results SEI is a success → Change Attitude SEI is a success → Change Attitude Participation → Motivation → Gain of pride Participation → Motivation → Gain of pride

43 Technical Assessment (7) What is new ? Our Own Experiences What is new ? Our Own Experiences Discussion/Question : Discussion/Question : “What are the few things I can do… that would make a difference? If you do this, you have a chance, if you don’t do it, you have no chance” “What are the few things I can do… that would make a difference? If you do this, you have a chance, if you don’t do it, you have no chance” “An organization that can't make some assessment of its own programming productivity rate just hasn't tried hard enough”

44 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

45 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

46 The people-Development Strategy (1) What is an organization ? What is an organization ? The Management Team The Management Team Define your organization Define your organization How is your management team ? How is your management team ? Reactive / Is the work done / Cooperation / Constructive Progress Vs Reaction Reactive / Is the work done / Cooperation / Constructive Progress Vs Reaction Do they understand you ? What are their focus ? Do they understand you ? What are their focus ? Define your goal and their goals Define your goal and their goals

47 The people-Development Strategy (2) Examining Yourself Examining Yourself Are you a good leader ? Are you a good leader ? Are you using your troops with effectiveness Are you using your troops with effectiveness Stay involved / Ask / Develop your people Stay involved / Ask / Develop your people Values Values Trustable : speak -> act Trustable : speak -> act Respect of individual Respect of individual How to treat people ? How to treat people ?

48 The people-Development Strategy (3) The People-Capability Maturity Model (P-CMM) The People-Capability Maturity Model (P-CMM) Characterize the maturity of your workforce practices Characterize the maturity of your workforce practices Guide a program of continuous workforce development Guide a program of continuous workforce development Set a priorities for immediate action Set a priorities for immediate action Integrate workforce development with process improvement Integrate workforce development with process improvement Establish a culture of professional excellence Establish a culture of professional excellence Is divided in five maturity levels Is divided in five maturity levels Process Area Process Area P-CMM’ applications : P-CMM’ applications : A guide to plan and implement improvement activities A guide to plan and implement improvement activities A standard for assessing workforce practices. A standard for assessing workforce practices.

49 The people-Development Strategy (4) PCMM TEN PRINCIPES PCMM TEN PRINCIPES 1) Workforce capability (WC) related to business performance 2) WC is a competitive issue and a source of strategic advantage 3) WC must be defined in relation to the organization’s strategic business objectives 4) Knowledge intense work shifts the focus job elements -> Workforce competencies 5) Capability can be measured and improved at multiple levels 6) An organization should invest in improving the capability of the WF that are critical to its core competency as a business 7) Operational Management is responsible for the capability of WF 8) The improvement of WC can be pursued as a process composed from proven practices and procedures 9) The organization is responsible for providing improvement opportunities 10) Organization must continually evolve their Workforce practices and develop new workforce competencies.

50 The people-Development Strategy (5) PCMM Level 1 PCMM Level 1 No process area No process area PCMM Level 2 PCMM Level 2 Staffing Staffing Communication and Coordination Communication and Coordination Work Environment Work Environment Performance Management Performance Management Training and Development Training and Development Compensation Compensation

51 The people-Development Strategy (6) Moving from P-CMM Level 1 to Level 2 Moving from P-CMM Level 1 to Level 2 Access the people processes in your Organization Access the people processes in your Organization Supporting on controlling and directing attitude Supporting on controlling and directing attitude People must understand plans and strategies People must understand plans and strategies Managing people become a responsibility Managing people become a responsibility Compensation system and effective communication Compensation system and effective communication Personal communication Personal communication Trust and shares Trust and shares Maintain an effective recruiting and orientation program Maintain an effective recruiting and orientation program

52 The people-Development Strategy (7) PCMM Level 3 PCMM Level 3 Competency Analysis Competency Analysis Workforce Planning Workforce Planning Competency Development Competency Development Career development Career development Competency-Based Practices Competency-Based Practices Workgroup Development Workgroup Development Participatory Culture Participatory Culture PCMM Level 4 PCMM Level 4 Competency Integration Competency Integration Empowered Workgroups Empowered Workgroups Competency-Based Assets Competency-Based Assets Quantitative Performance Management Quantitative Performance Management Organizational Capability Management Organizational Capability Management Mentoring Mentoring

53 The people-Development Strategy (8) Moving from P-CMM Level 2 to Level 3 Moving from P-CMM Level 2 to Level 3 Turn to identify and develop the core competencies to meet the business needs. Turn to identify and develop the core competencies to meet the business needs. Are you aware of the last tools and methods ? Are you aware of the last tools and methods ? Develop future skills (potential) Develop future skills (potential) Support career development -> Motivate Support career development -> Motivate Moving from P-CMM Level 3 to Level 4 Moving from P-CMM Level 3 to Level 4 Integrate the core competencies into business operations. Anticipate Skills Integrate the core competencies into business operations. Anticipate Skills Find a team style. Track team results. Find a team style. Track team results. Establish a mentoring practice. Establish a mentoring practice. Define and measure team-based performance Define and measure team-based performance

54 The people-Development Strategy (9) PCMM Level 5 PCMM Level 5 Continuous Capability Improvement Continuous Capability Improvement Organizational Performance Alignment Organizational Performance Alignment Continuous Workforce Innovation Continuous Workforce Innovation

55 The people-Development Strategy (10) Moving from P-CMM Level 4 to Level 5 Moving from P-CMM Level 4 to Level 5 Stretches the entire organization : coach / continuous improvement Stretches the entire organization : coach / continuous improvement Manager recognize excellence and know their teams Manager recognize excellence and know their teams The Empowered Organization The Empowered Organization Develop and empower your people Develop and empower your people Performance/Motivation Improvement Performance/Motivation Improvement Opportunities Opportunities

56 The people-Development Strategy (11)

57 The people-Development Strategy (12) What is New ? Our own Experiences What is New ? Our own Experiences Discussion/Question : Discussion/Question : Process Improvement: Is It Turning.Us to the Dark Side?” “The projects most worth doing are the ones that will move you DOWN one full level on your process scale. Maybe those are the only ones you can afford to do”.

58 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

59 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

60 Comparison between countries French Resistance – Polish Resistance VS American Resistance French Resistance – Polish Resistance VS American Resistance

61 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

62 Contents Structural Change Structural Change The Change Process The Change Process Technical Assessment Technical Assessment The people-Development Strategy The people-Development Strategy Comparison between countries Comparison between countries Questions & Discussion Questions & Discussion

63 Questions & Discussion Questions / Comments or Details Missed Questions / Comments or Details Missed Your comments are welcome !! Your comments are welcome !!

64 Conclusion Change is different ways : Change is different ways : “People wants to improve themselves, but in order to improve you have to change, and people hate changes” “People wants to improve themselves, but in order to improve you have to change, and people hate changes” PCMM PCMM Why did it emerge ? Why did it emerge ? How did it spread ? How did it spread ?

65 THE END Thanks for your attention


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