Presentation on theme: "Dr. Craig J. Petrun The MITRE Corporation"— Presentation transcript:
1Driving Change in SOA Implementations: Can Organizations & People Really Change? Dr. Craig J. PetrunThe MITRE CorporationCenter for Enterprise Modernization (CEM)September 29, 2008
2Agenda Making the case for Organizational Change Do IT projects really impact people?What is the nature of the change process?Linear vs. Non-LinearUnderstanding how organizations and people change?The impact of the systems nature of organizationsThe impact of the individual on enabling changeNavigating the change process - The Pragmatic SideLeadership, communications, resistance, training, transition plans, managing riskImplementing change in organizationsLessons Learned
3Making the case for Organizational Change Management Assertion:All Information Technology implementations lead to changes in how the organization currently operatesMinor to radicalProblem: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 changesOutcome: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
4Making the case for Organizational Change Management – SOA Transformational Challenges PeopleNeed to change behavior of employees and managers toward a more service oriented behaviorMangers need to think more like leaders within a services frameworkEmployees – more expected from individuals, it requires them to share their skills, services knowledge in a repositoryUse of Integrated teams – need focus on team roles, behaviorsStakeholder Management – gain support for why SOA helps the enterprise and to make sure key individuals are involvedGovernanceMust establish lines of responsibility, authority, and communicationNeed for making decisions about services across the lifecycle of services and the enterpriseTechnicalLack of controlTrusting mission critical capability to another organization, Security issues – more exposure, performance degradation, performance in real world (behavior under load), control over testing environments
6Agenda Making the case for Organizational Change Do IT projects really impact people?What is the nature of the change process?Linear vs. Non-LinearUnderstanding how organizations and people change?The impact of the systems nature of organizationsThe impact of the individual on enabling changeNavigating the change process - The Pragmatic SideLeadership, communications, resistance, training, transition plans, managing riskImplementing change in organizationsLessons Learned
7The Change Process: Moving through the Transition State PresentStateTransitionStateFutureStateENDING NEUTRAL ZONE BeginningChange 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
8Understanding how organizations change can help us prepare for the long journey ahead Establish Urgency & ScopeCreate & Communicate the VisionDrive Commitment, EmpowermentEstablish Change Infrastructure, Plans & WinsSustain & Refine the ChangeMeasure progress, demonstrate value, communicate success, take corrective action if neededIntroduce new tools, technology, reward systems, trainingEngage workforce in planning the change, validate costs & benefitsEngage leadership; communicate the compelling need for changeIdentify stakeholders, costs, and benefits of the changeKotter, J Leading Change
9The 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)
10Agenda Making the case for Organizational Change Do IT projects really impact people?What is the nature of the change process?Linear vs. Non-LinearUnderstanding how organizations and people change?The impact of the systems nature of organizationsThe impact of the individual on enabling changeNavigating the change process - The Pragmatic SideLeadership, communications, resistance, training, transition plans, managing riskImplementing change in organizationsLessons Learned
11Understanding & assessing the complexity of organizational change InputLeadershipMotivationWork Unit ClimateManagement PracticesIndividual Needs & ValuesSystems (Policies & Procedures)Organizational CultureTask & Individual SkillsStructureMission & StrategyIndividual & Organizational PerformanceThroughputOutputExternalEnvironmentMost organizational change is driven by environmental impactBoxes indicate primary variables affecting organizational performanceArrows indicate critical linkagesA change in any variable will ultimately affect every other variableHigher level variables have greater weight in effecting organizational changeA causal model of organizational performance and change, W.Warner Burke & George H. Litwin, Journal of Management, 1992, vol. 18.
12The Spiral of Individual Change Understanding the nature of individual change provides additional insightsThe Spiral of Individual ChangeMaintenance: Sustaining behavior change until integrated into lifestyleAction: Making the changePros vs. ConsPreparation: Getting ready to make changeContemplation: Thinking about changePre-contemplation: Not aware of need for changeProchaska, Norcross & DiClemente, Changing for Good, Harper-Collins Publishers
13Agenda Making the case for Organizational Change Do IT projects really impact people?What is the nature of the change process?Linear vs. Non-LinearUnderstanding how organizations and people change?The impact of the systems nature of organizationsThe impact of the individual on enabling changeNavigating the change process - The Pragmatic SideLeadership, communications, resistance, training, transition plans, managing riskImplementing change in organizationsLessons Learned
14Navigating 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 future2. Consistency of leadership behavior across all organizational levels3. Continuous development of the leadership talent pool and pipeline4. Powerful leadership development architecture5. Strategic organizational alignment6. Top team unity7. Ability to manage change and pursue continuous organization renewalYearout & Miles, Growing Leaders: A Leader-Builder Handbook. ASTD Publications
15Why is communicating during times of change so difficult? Navigating the Change Process: The role of stakeholder communicationWhy is communicating during times of change so difficult?InterferenceInterferenceCustomers/BeneficiariesUnclear visionLeadership not alignedInternalManagers andSupervisorsInternalWorkforceLack ofresourcesSOAMessagesFear of changeExternalBusinessPartnersOtherKeyAudiencesFailure totrain staffin new skillsFailure tocommunicateLegislatorsPublicMediaSpecial Interests lobbying against changeBenefits ofchangenot clear
16Navigating the Change Process: Tools for assessing & managing risk: The DICE Model The DICE Model measures four critical elements in organizational change:DurationThe 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.IntegrityThe 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.CommitmentThe commitment to change that both top management (c1) and employees (c2) affected by the change display.EffortThe 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 2005DICE Score = D + (2 x I) + (2 x C 1 ) + C 2 + E
17Agenda Making the case for Organizational Change Do IT projects really impact people?What is the nature of the change process?Linear vs. Non-LinearUnderstanding how organizations and people change?The impact of the systems nature of organizationsThe impact of the individual on enabling changeNavigating the change process - The Pragmatic SideLeadership, communications, resistance, training, transition plans, managing riskImplementing change in organizationsLessons Learned
18Key lessons learned from the public sector Be a Leader, not a Bureaucrat –Ensure top leadership drives changeTake a comprehensive approachEstablish a coherent vision, mission and integrated strategic goals –Create a Road MapInvolve employees to gain ownership and minimize resistanceDedicate an implementation team to manage the processSet implementation goals and a timeline to build momentum and show progress from day oneImprove Performance against Agency MissionFocus on a key set of priorities at outset of the transformationUse performance management system and ensure accountabilityWin over StakeholdersEstablish a communications strategy to create shared expectations and report on progressReference: 2002, Mergers and Transformation: Lessons learned from DHS & other Agencies, GAO SPReference: 2006, Change Management in Government, Harvard Business Review, May.
19Industry Trends in Organizational Transformation Key Strategies for creating change include:Dedicate resources from the start (organizational energy)People / Financial / Senior Management EngagementClose key implementation gapsTeach new mindsetsStart with small group on tangible project – demonstrate successMission & Vision statements are not enough – action learning a mustMetrics and incentivesMost times they reinforce past behaviors – penalize for new actionsDevelop comprehensive / innovative metrics that align to new behaviorsWays to overcome resistanceProvide safe space in organization to overcome “antibodies”Senior Management EngagementDifficult for middle management to drive transformationMust get senior leaders (one by one) aligned around the need to act differentlyTransform for Growth: Organizations must re-create to compete. Strategy & Innovation, Volume 6, No.1, Jan.-Feb. 2008Based on Innosight administered survey to 300+ Industry leaders on implementing organizational transformations
20Closing Thoughts: Can organizations and people really change? Yes! Successfully managing change requires…An understanding of the organizational change processA model for assessing the complexity of the challengeThe creation of an “integrated” transition planInsight into the nature of how individuals changeLeadership, communications, training, transition plans……..and, of course, ORGANIZATIONAL ENERGY!
21Schrage’s Law of Organizational Obviousness Closing ThoughtsSchrage’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
22Resources / References Bieberstein R., Laird R.,Jones K., & Mitra T Executing SOA: A practical Guide for the Service Oriented Architect. IBM Press, MayBurke, 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 – 33Lawson 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 InstOstroff, Frank, May “Change Management in Government,” Harvard Business Review.Pizette, L. Significant SOA Federal Leadership Challenges, 2008 MITRE SOA Conf., AprilSimon, Robert Levers of Organizational Design. Harvard Business School PressVelicer, Prochaska, Norman, & Redding Applications of the Transtheoretical Model of Behavior Change. Homeostasis, 38, 216 – 23Mergers and Transformations: Lessons Learned from DHS & Other Federal Agencies, November 2002, GAO SP.
23Navigating the Change Process: Resistance – compliance vs. commitment PerformingDoingWe want to do it.ResistanceWe will do itAdapting & IntegratingAbsorbingResistanceAccepting & SupportingPerceived ThreatOpportunities PerceivedResistanceImplicationsHow it will affect us?ImplicationsHow it will affect us?ComprehensionWhat will happen and why?RealizationSomething is going to changeRealizationSomething is going to change
24Navigating the Change Process: The role of training Knowledge transferDefine and implement a knowledge transfer process earlyDefine training requirementsSupport systemsResources (people & materials)Model training to user and organizational needs:Directly vs. indirectly impacted usersDevelop the right training, at the right time, for the right usersTraining Evaluation
25Navigating the Change Process: Creating the integrated organizational transition plan Gap ClosurePeople, ProcessTechnologyImpact AnalysisOrganizational Transition PlanTransformationalTransactionalCommunicationsOrganizational GapsThe 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