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© 2007 The MITRE Corporation. All rights reserved Driving Change in SOA Implementations: Can Organizations & People Really Change? September 29, 2008 Dr.

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1 © 2007 The MITRE Corporation. All rights reserved Driving Change in SOA Implementations: Can Organizations & People Really Change? September 29, 2008 Dr. Craig J. Petrun The MITRE Corporation Center for Enterprise Modernization (CEM)

2 © 2007 The MITRE Corporation. All rights reserved 2 Agenda n Making the case for Organizational Change –Do IT projects really impact people? n What is the nature of the change process? –Linear vs. Non-Linear n Understanding how organizations and people change? –The impact of the systems nature of organizations –The impact of the individual on enabling change n Navigating the change process - The Pragmatic Side –Leadership, communications, resistance, training, transition plans, managing risk n Implementing change in organizations –Lessons Learned

3 © 2007 The MITRE Corporation. All rights reserved 3 Making the case for Organizational Change Management n Assertion: –All Information Technology implementations lead to changes in how the organization currently operates n Minor to radical n 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 n 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 © 2007 The MITRE Corporation. All rights reserved 4 Making the case for Organizational Change Management – SOA Transformational Challenges n People –Need to change behavior of employees and managers toward a more service oriented behavior n Mangers need to think more like leaders within a services framework n Employees – more expected from individuals, it requires them to share their skills, services knowledge in a repository n Use of Integrated teams – need focus on team roles, behaviors n Stakeholder Management – gain support for why SOA helps the enterprise and to make sure key individuals are involved n Governance –Must establish lines of responsibility, authority, and communication n Need for making decisions about services across the lifecycle of services and the enterprise n Technical –Lack of control n 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 © 2007 The MITRE Corporation. All rights reserved 5 Making the case for organizational change management initiatives? Source: Flint, D., The Users View of Why IT Projects Fail, © 2005 Gartner, Inc. Findings based on 520 failed IT Projects with over 1000 staff.

6 © 2007 The MITRE Corporation. All rights reserved 6 Agenda n Making the case for Organizational Change –Do IT projects really impact people? n What is the nature of the change process? –Linear vs. Non-Linear n Understanding how organizations and people change? –The impact of the systems nature of organizations –The impact of the individual on enabling change n Navigating the change process - The Pragmatic Side –Leadership, communications, resistance, training, transition plans, managing risk n Implementing change in organizations –Lessons Learned

7 © 2007 The MITRE Corporation. All rights reserved 7 Present State Transition State Future State Organizational Transitions, Richard Beckhard Managing Transitions, Making the most of Change, William Bridges ENDING NEUTRAL ZONE Beginning 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. The Change Process: Moving through the Transition State

8 © 2007 The MITRE Corporation. All rights reserved 8 Identify stakeholders, costs, and benefits of the change Engage leadership; communicate the compelling need for change Engage workforce in planning the change, validate costs & benefits Introduce new tools, technology, reward systems, training Measure progress, demonstrate value, communicate success, take corrective action if needed 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 Kotter, J Leading Change

9 © 2007 The MITRE Corporation. All rights reserved 9 The Change Monster by Jeanie Daniel Duck, Crown Business, 2001 (Illustration by Gene Mackles) The nature of change unfolds in a series of dynamic but manageable phases that require preparation. The path to change for both individuals and organizations is non-linear The Change Road Map – The road ahead is full of landmines.

10 © 2007 The MITRE Corporation. All rights reserved 10 Agenda n Making the case for Organizational Change –Do IT projects really impact people? n What is the nature of the change process? –Linear vs. Non-Linear n Understanding how organizations and people change? –The impact of the systems nature of organizations –The impact of the individual on enabling change n Navigating the change process - The Pragmatic Side –Leadership, communications, resistance, training, transition plans, managing risk n Implementing change in organizations –Lessons Learned

11 © 2007 The MITRE Corporation. All rights reserved 11 l Most organizational change is driven by environmental impact l Boxes indicate primary variables affecting organizational performance l Arrows indicate critical linkages l A change in any variable will ultimately affect every other variable l 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. Understanding & assessing the complexity of organizational change

12 © 2007 The MITRE Corporation. All rights reserved 12 Understanding the nature of individual change provides additional insights Pre-contemplation: Not aware of need for change Contemplation: Thinking about change Preparation: Getting ready to make change Action: Making the change Maintenance: Sustaining behavior change until integrated into lifestyle The Spiral of Individual Change Pros vs. Cons Prochaska, Norcross & DiClemente, Changing for Good, Harper-Collins Publishers

13 © 2007 The MITRE Corporation. All rights reserved 13 Agenda n Making the case for Organizational Change –Do IT projects really impact people? n What is the nature of the change process? –Linear vs. Non-Linear n Understanding how organizations and people change? –The impact of the systems nature of organizations –The impact of the individual on enabling change n Navigating the change process - The Pragmatic Side –Leadership, communications, resistance, training, transition plans, managing risk n Implementing change in organizations –Lessons Learned

14 © 2007 The MITRE Corporation. All rights reserved 14 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 Navigating the Change Process: The role of leadership Key challenges Yearout & Miles, Growing Leaders: A Leader-Builder Handbook. ASTD Publications Executive behavior that encourages others to take required actions.

15 © 2007 The MITRE Corporation. All rights reserved 15 Why is communicating during times of change so difficult? Navigating the Change Process: The role of stakeholder communication Failure to train staff in new skills Special Interests lobbying against change Customers/ Beneficiaries Internal Workforce Internal Managers and Supervisors External Business Partners Other Key Audiences Legislators Public Media SOA Messages Benefits of change not clear Leadership not alignedUnclear vision Fear of change Failure to communicate Lack of resources Interference

16 © 2007 The MITRE Corporation. All rights reserved 16 Navigating the Change Process: Tools for assessing & managing risk: The DICE Model The DICE Model measures four critical elements in organizational change: n 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. n 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. n Commitment –The commitment to change that both top management (c1) and employees (c2) affected by the change display. n 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 © 2007 The MITRE Corporation. All rights reserved 17 Agenda n Making the case for Organizational Change –Do IT projects really impact people? n What is the nature of the change process? –Linear vs. Non-Linear n Understanding how organizations and people change? –The impact of the systems nature of organizations –The impact of the individual on enabling change n Navigating the change process - The Pragmatic Side –Leadership, communications, resistance, training, transition plans, managing risk n Implementing change in organizations –Lessons Learned

18 © 2007 The MITRE Corporation. All rights reserved 18 Key lessons learned from the public sector n Be a Leader, not a Bureaucrat – – Ensure top leadership drives change n Take a comprehensive approach –Establish a coherent vision, mission and integrated strategic goals – n 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 n Improve Performance against Agency Mission –Focus on a key set of priorities at outset of the transformation –Use performance management system and ensure accountability n 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 © 2007 The MITRE Corporation. All rights reserved 19 Industry Trends in Organizational Transformation Key Strategies for creating change include: n Dedicate resources from the start (organizational energy) n People / Financial / Senior Management Engagement n Close key implementation gaps –Teach new mindsets n Start with small group on tangible project – demonstrate success n Mission & Vision statements are not enough – action learning a must –Metrics and incentives n Most times they reinforce past behaviors – penalize for new actions n Develop comprehensive / innovative metrics that align to new behaviors –Ways to overcome resistance n Provide safe space in organization to overcome antibodies –Senior Management Engagement n Difficult for middle management to drive transformation n 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 –Based on Innosight administered survey to 300+ Industry leaders on implementing organizational transformations

20 © 2007 The MITRE Corporation. All rights reserved 20 Closing Thoughts: Can organizations and people really change? Yes! Successfully managing change requires… n An understanding of the organizational change process n A model for assessing the complexity of the challenge n The creation of an integrated transition plan n Insight into the nature of how individuals change n Leadership, communications, training, transition plans… …..and, of course, ORGANIZATIONAL ENERGY!

21 © 2007 The MITRE Corporation. All rights reserved 21 Closing Thoughts Schrages 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 Labs eMarket Initiative

22 © 2007 The MITRE Corporation. All rights reserved 22 Resources / References n Bieberstein R., Laird R.,Jones K., & Mitra T Executing SOA: A practical Guide for the Service Oriented Architect. IBM Press, May n Burke, Warner., Organizational Change: Theory and Practice. Sage Publications, Burke, W. & Litwin, G. "A Casual Model of Organizational Performance and Change," Journal of Management, Vol. 18, No. 3,1992. n Duck, Jeanie The Change Monster – The Human forces that fuel or foil corporate transformation and change. Crown Publishing. n Hubble, Duncan & Miller, The Heart and Soul of Change. n Kotter, J. P Winning at Change Leader to Leader, 10 (Fall 1998): 27 – 33 n Lawson E., Price C. The Psychology of Change Mgmt. McKinsey Quarterly, n Kelman, S. Unleashing Change: A Study of Organizational Renewal in Government. Published by the Brookings Inst n Ostroff, Frank, May Change Management in Government, Harvard Business Review. n Pizette, L. Significant SOA Federal Leadership Challenges, 2008 MITRE SOA Conf., April n Simon, Robert Levers of Organizational Design. Harvard Business School Press n Velicer, Prochaska, Norman, & Redding Applications of the Transtheoretical Model of Behavior Change. Homeostasis, 38, 216 – 23 n Mergers and Transformations: Lessons Learned from DHS & Other Federal Agencies, November 2002, GAO SP.

23 © 2007 The MITRE Corporation. All rights reserved 23 Commitment Compliance Realization Something is going to change Realization Something is going to change Comprehension What will happen and why? Implications How it will affect us? Implications How it will affect us? Opportunities Perceived Perceived Threat Absorbing Adapting & Integrating Doing Accepting & Supporting Performing We want to do it. We will do it Navigating the Change Process: Resistance – compliance vs. commitment Resistance

24 © 2007 The MITRE Corporation. All rights reserved 24 Navigating the Change Process: The role of training n Knowledge transfer –Define and implement a knowledge transfer process early n Define training requirements –Support systems –Resources (people & materials) n Model training to user and organizational needs: –Directly vs. indirectly impacted users –Develop the right training, at the right time, for the right users n Training Evaluation

25 © 2007 The MITRE Corporation. All rights reserved 25 Navigating the Change Process: Creating the integrated organizational transition plan The strategy and vision are validated. The organizational assessment is completed. Costs and benefits are documented. Stakeholder needs & support are documented 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. Organizational Transition Plan Transformational Transactional Communications People, Process Technology Gap Closure Impact Analysis Organizational Gaps


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