Arthur M. Freedman, MBA, Ph.D. 11/10/09 How Action Learning Supports Organization Development & Change November 10, 2009 Center for Organizational Dynamics University of Pennsylvania Arthur M. Freedman, MBA, Ph.D. World Institute for Action Learning Carey Business School, Johns Hopkins University Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 OD&C is “a system-wide application and transfer of behavioral science knowledge to the planned development, improvement, and reinforcement of the strategies, structures, and processes that lead to organization effectiveness.” Cummings, T. G., & Worley, C. G. (2005). Organization development and change, 8th edition. Mason, OH: Thomson/South-Western. Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Action Learning: developing executives and organizations while dealing effectively with critical, unprecedented, discontinuous organizational issues Arthur M. Freedman, MBA, Ph.D. 11/10/09

The first step of any innovative process is an act of destruction Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Most contemporary organizational transformation projects are triggered by unprecedented and discontinuous events that originate in the external environment Arthur M. Freedman, MBA, Ph.D. 11/10/09

Organizational Change is Stimulated Primarily by External Events Legislation (e.g., AAP, EEOC, EPA TERRORISM Information: surveys, research, theoretical concepts, “best practices,” and “benchmarking” Political conditions* Social values* Supra-System, Organization, Subsystem or Team Technological innovations Climate, meteorological conditions* Demographics, migration, and population growth patterns (customers & labor pool)* Economic conditions* Customers’ preferences or requirements* Competition* Pandemics* * local, national, regional, and/or global Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Organizations typically respond to environmental changes with a technical or structural “solution.” If internal resources are insufficient, organizations often secure external technical expert or techspert consultants (Freedman & Zackrison, 2001). Arthur M. Freedman, MBA, Ph.D. 11/10/09

“Techsperts and OD&C Practitioners Should Be Friends” (Sung to the tune of “Farmers and Ranchers Should Be Friends” (Oklahoma) Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Existing Organizational System Supported by “Tradition Bearers” Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Desired organizational system Supported by “Crusaders for Change” Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 To function effectively in unprecedented, discontinuous conditions, a transforming organizational system must determine what to: ADD ON PRESERVE LET GO (with Respect & Appreciation) Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Techsperts focus on techno-structural-systems problems and solutions Techsperts see themselves as masters of “hard” sciences (SMEs) Techsperts typically do not anticipate collateral socio-emotional damage caused by techno-structural-systems change Usually, techsperts are unskilled in dealing with socio-emotional problems Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Implicitly, techsperts seem to assume the power of their techno-structural interventions will force people, teams, and subsystems to adapt and accommodate Techsperts see OD&C practitioners as “soft stuff” But, “the soft stuff is the hard stuff” OD&C practitioners and ALTCs are experts on the “soft stuff” Arthur M. Freedman, MBA, Ph.D. 11/10/09

ONE VERSION OF THE ORGANIZATION DEVELOPMENT & CHANGE PROCESS FUTURE STATE TRANSITION STATE PLANS WHY CHANGE? CURRENT STATE Based on Richard Beckhard & Reuben T. Harris (1987) Arthur M. Freedman, MBA, Ph.D. 11/10/09

Project Integration or Coordination Team The Basic Change Process is Scalable – from Incremental and Local to Transformational and Systemic Create Task Forces or Action Learning Teams Review & Approve Execute Implementation Plans FUTURE STATE Future State Micro Plans MACRO PLANS Current State WHY CHANGE? CURRENT STATE Project Integration or Coordination Team TRANSITION STATE Arthur M. Freedman, MBA, Ph.D. 11/10/09

“The best way to understand an organization is to try to change it.” No matter how precise, plans for complex system change rarely work out as expected “The best way to understand an organization is to try to change it.” Kurt Lewin Arthur M. Freedman, MBA, Ph.D. 11/10/09

Today, organizations need to: Adapt to unprecedented, volatile changes in their external environments Deal with critical, emergent, unanticipated, trans-organizational issues Find or create and apply effective solutions Be anchored in real-time Be responsive to cycle-time pressure Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 However, most existing organizational problem-solving strategies, mechanisms, and processes are: More effective for dealing with precisely defined, well-known, historical issues Less effective for “fuzzy” unprecedented issues Arthur M. Freedman, MBA, Ph.D. 11/10/09

A. B. C. D. PATHWAY (SOLUTION) OUTCOME (GOAL) Action Learning When and Why Action Learning? OUTCOME (GOAL) Uncertain, Ambiguous Clear, Specific A. Solution in Search of a Problem – e.g., strategic planning (AL may be beneficial) B. Known, Clear Solution for a Puzzle (Need: skilled task facilitator, techspert) Well-known Precise PATHWAY (SOLUTION) C. Action Learning D. Action Learning Controversial Unknown Arthur M. Freedman (1998) Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Action Learning is an approach to leadership, team, and organization development and change Originally conceived and developed by Reg Revans Currently championed and refined by Mike Marquardt (1999, 2004) and WIAL (2009) Boshyk, Y. (Ed.) (2002). Action learning worldwide: Experiences of leadership and organizational development. New York: Palgrave Macmillan. Dotlich, D. L., & Noel, J. L. Action learning: How the world’s top companies are re-creating their leaders and themselves. San Francisco: Jossey-Bass. Gasparski, W. W., & Botham, D. (Eds.) (1998). Action learning. London: Transaction Publishers. Marquardt, M. J. (1999). Action learning in action: Transforming problems and people for world-class organizational learning. Palo Alto, CA: Davies-Black Publishers. Marquardt, M. J. (2004). Optimizing the power of action learning: Solving problems and building leaders in real time. Palo Alto, CA: Davies-Black Publishers. Marquardt, M., Leonard, E.S., Freedman, A.M., & Hill, C. (2009). Action learning for leadership and organization development. Washington: American Psychological Association. Rothwell, W. J. (1999). The action learning guidebook: A real-time strategy for problem-solving, training design, and employee development. San Francisco: Jossey-Bass. Arthur M. Freedman, MBA, Ph.D. 11/10/09

The elegant simplicity of Action Learning integrates: Action Research (Lewin) Laboratory education -- T-Groups (Bradford, Gibb & Benne) Sociotechnical Systems Theory (Rice, Trist, Emery, Murray) Adult (Andragogical) Learning (Knowles) Double-loop learning (Argyris & Schön) Participative Organization Development & Change theory and methodology (e.g., Cummings & Worley) Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Action Learning supports project management teams that confront C- and D-type problems: Coordinating activities of interdependent contractors Resolving territorial disputes among involved parties Developing commitment of end-users to support plans for complex system changes Establishing priorities with which all involved parties agree and sustain Arthur M. Freedman, MBA, Ph.D. 11/10/09

MULTI-DISCIPLINARY MANAGEMENT TEAM Cost & Scheduling Project Director Quality Assurance Action Learning Team For Project Management Action Learning Team Coach OD&C Practitioner Design Engineering Stakeholder & Regulator Relations Finance or Legal Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 A cadre of Action Learning Team members is created by selecting high-potential managers from different levels, departments, regions, or product groups Arthur M. Freedman, MBA, Ph.D. 11/10/09

ALT Members Are Trained in Organizational Change Single-Loop Learning Feedback Loop: Variance Analysis Single-Loop Learning Pre-Entry Entry Data Evaluating Progress and Results Contact Organization Action Agreements and Preparation Planning PHASES OF THE CONSULTING PROCESS Data Data Implementing the Action Plan Termination Collection Feedback or Recycle Feedback Loop: Variance Analysis Arthur M. Freedman, MBA, Ph.D. 11/10/09

ALT Members are Trained in Double-Loop Learning (Action Research) “No action without research; no research without action” Kurt Lewin 1. DIAGNOSE 2. PLAN ACTION Content Process 4. EVALUATE EFFECTS 3. TAKE ACTION Premise Arthur M. Freedman, MBA, Ph.D. 11/10/09

DESIRED STATE (Complete Execution) Context & Purpose CURRENT STATE The Action Research Method as Applied to Implementation Phase DESIRED STATE (Complete Execution) Evaluate Act Plan “Reasonable,” Idealized Execution of Implementation Plans Diagnose Act Diagnose Evaluate Evaluate Plan Predictable Surprises Context & Purpose Act Evaluate Act Diagnose Diagnose Evaluate Realistic Execution Evaluate Diagnose Plan Act Plan Plan CURRENT STATE (Goals & Plans Complete) Based on Lewin (1948) Arthur M. Freedman, MBA, Ph.D. 11/10/09

“Predictable Surprises” We may not know what specific surprises we will run into during implementation We do know, with a high degree of certainty, that such surprises are inevitable; they cannot be avoided First, when we deliberately change even one part of a system, the change will “perturbate” the entire system and affect it in unpredictable ways (side effects) Second, implementation activities will cause previously existing, benign conditions to emerge and become visible; implementation will exacerbate these nascent issues Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 When predictable surprises inevitably occur, techsperts may ignore, avoid, cover up, or deny them – or how they lead to enduring consequences Lost-time accidents Shortages of essential supplies, resources Competing demands of stakeholders Resistance from end-users Competing crises that divert attention, resources Leadership changes Questionable cost-benefit analysis Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 AL Project Structure CHAMPION Project Manager (PM) SPONSOR SPONSOR SPONSOR SPONSOR Administrative Assistant (AA-Logistics) Action Learning Team Action Learning Team Action Learning Team Action Learning Team Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 The AL Project Manager may choose to convene a “Special Action Learning Team” (a S.A.L.T.) One person from each AL Team is deployed to the S.A.L.T. for a full-time, temporary mission An AL Team Coach is assigned to the S.A.L.T. AL Teams continue their work The S.A.L.T. is mandated to clarify, diagnose, analyze, and develop recommendations to deal with the Predictable Surprise All relevant stakeholders and involved parties are identified and asked to participate in the process The S.A.L.T. and its Predictable Surprise issue is treated as a short-term Action Learning session Arthur M. Freedman, MBA, Ph.D. 11/10/09

ALT Members are Deployed to a SALT with an ALT Coach ACTION LEARNING TEAM “A” ACTION LEARNING TEAM “A” SALT AL Team Coach ACTION LEARNING TEAM “A” ACTION LEARNING TEAM “A” Arthur M. Freedman, MBA, Ph.D. 11/10/09

The AL cadre is oriented & introduced to AL theory & methods Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 “No learning without action; No action without learning” Reg Revans Arthur M. Freedman, MBA, Ph.D. 11/10/09

Opportunities-to-exploit Executive managers (sponsors) select a number of significant, critical trans-organizational “issues” Problems-to-solve Opportunities-to-exploit Dilemmas-to-manage “What keeps them awake at night?” Arthur M. Freedman, MBA, Ph.D. 11/10/09

Examples of Action Learning Problems Recruiting high tech workers Developing training programs for leaders Improving information systems Six Sigma projects Improving customer service Resolving conflict between departments Developing a new performance appraisal system Establishing work schedule Establishing common priorities incorporating diverse vested interests of multiple stakeholders Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Critical issues are allocated to the AL cadre along with deadlines for expected results The cadre is divided into four- to eight-person ALTs Each ALT (“Set”) selects (or is assigned) an issue to investigate Arthur M. Freedman, MBA, Ph.D. 11/10/09

A Coach is assigned to help the ALT learn how to: Scope out the issue (consider context, culture, climate) Develop strategy Focus on Process Focus on Individual, Team, and Organizational Learning Arthur M. Freedman, MBA, Ph.D. 11/10/09

Two Ground Rules/Guidelines in AL Statements only in response to questions; anyone can ask questions Action learning coach has authority to intervene whenever he/she identifies learning opportunities Arthur M. Freedman, MBA, Ph.D. 11/10/09

Questioning and Reflective Process Questions tap into, surface preconscious information Questions enable us to diverge and examine from a systems perspective before we converge towards solution Questions allow us to reflect, to listen, to be creative, and to learn Questions to clarify, to open up new avenues, to unpack, to offer ideas and insights, to learn Time and space is needed to reflect, share perspectives, unfreeze, and gain (synthesize) new perspectives Arthur M. Freedman, MBA, Ph.D. 11/10/09

Questions are Essential to Understanding and Framing Problems Assures ALT is working on the right problem (not symptom) Clarifying, understanding, testing validity of assumptions The blind men and the elephant – do we all see the problem the same way? Or do we see different aspects? Or do we see different problems? Inquiry and reflection is a sure way to get agreement on the problem Understanding the context as well as the content of the problem is essential Seeds of solutions reside in responses to great questions Arthur M. Freedman, MBA, Ph.D. 11/10/09

Questions and the Problem Solving Process IDEATE EVALUATE NO JUDGMENT YES JUDGMENT DIVERGE CONVERGE Step 1 Step 2 Quantity Imaginative Free Gut Quality Analytical Restricted Intellect Problems Solutions CRITERIA Focus of questions Ratio of questions to assertions Open vs. closed-ended questions Arthur M. Freedman, MBA, Ph.D. 11/10/09

Questions Establish High Level Goals and Create Optimal Strategies Questions encourage the team to expand thinking beyond common or traditional solutions Asking what are our organization seeks to accomplish Focusing on a compelling, desirable future creates energy and requires anticipation of the future Questions search for root causes Actionable strategies are built on the three questions of: Who knows what we are trying to do? (facts) Who cares about getting it accomplished? (interest) Who can get it implemented? (power) Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 ALTs work in both collocated and distributed modes Individual ALT members take responsibility for various tasks, actions, activities & functions between meetings Convene when and as needed in pairs, triads or total team Face-to-face, voice-to-voice and/or virtual meetings Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Typically, ALT Coaches meet with the ALT when they convene for face-to-face meetings (every 2 or 3 weeks) : Progress reviews Data analysis Emergent planning of next steps (What? So what? Now what?) Arthur M. Freedman, MBA, Ph.D. 11/10/09

Commitment to Learning Members take responsibility for their own, their team’s, and their organization’s explicit learning Time is set aside to reflect on and discuss learnings and how they can be applied systematically elsewhere in the organization Leveraging and linking of knowledge serves as a multiplier of Action Learning’s benefits Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 ALT Coaches enable ALT members to empower themselves by learning to ASK GREAT QUESTIONS Arthur M. Freedman, MBA, Ph.D. 11/10/09

The Enablement-Empowerment Matrix Level of technical competence, skill in managing power, and effectiveness when working autonomously & teams EMPOWERMENT: Level of personal and organizational authority (discretion to act) Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 ENABLEMENT LOW HIGH LOOSE CANNONS FULLY EMPOWERED HIGH EMPOWERMENT ENTRENCHED IN BUNKERS CAGED EAGLES LOW Arthur M. Freedman, MBA, Ph.D. 11/10/09

Action Learning Team Coach Trained A member of the organization or external partner Only asks questions related to learning Ensures sufficient time for capturing learnings Helps team members to reflect and learn Helps ALT to set norms and monitor adherence (or relevance) Creates an atmosphere of learning and reflective inquiry Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Mental models and evidence-based principles serve the purpose of INFORMING the ALT Coach re: What questions to ask How to ask questions Arthur M. Freedman, MBA, Ph.D. 11/10/09

Action Learning Enables ALTs to become High Performance Teams (HPT) Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 ALTs and Coaches begin by focusing on the Task Achievement and Goal Attainment (WORK) Level. As the ALT engages the work, indicators may emerge for the need to focus at the Group Dynamics, Individual or Interpersonal, and/or Boundary Management Levels. Arthur M. Freedman, MBA, Ph.D. 11/10/09

Personal & interpersonal dynamics Developing an HPT A high performing team Task accomplishment & goal achievement (participatory problem-solving and decision-making methods & skills) Team Development: Phases & Stages Personal & interpersonal dynamics Boundary management (lateral interface transactions with significant stakeholders & constituents) A collection of individuals Group dynamics Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Taking Action Action is required after each ALT session & during implementation of strategies Testing ideas in the real world determines if strategies are effective and practical Merely recommending solutions diminishes creativity and commitment Deep and real learning occurs when reflecting on real action Arthur M. Freedman, MBA, Ph.D. 11/10/09

Arthur M. Freedman, MBA, Ph.D. 11/10/09 Teams present their results to executive decision-makers for approval to proceed with IMPLEMENTATION Arthur M. Freedman, MBA, Ph.D. 11/10/09

Benefits derived from Action Learning Increase executive bench strength Identify & deal with real, consequential trans-organizational issues Learn how individuals, teams & total systems can quickly grow & develop Familiarize high-potential managers with different organizational perspectives Develop consultative problem-solving and decision-making skills Learn to build & develop high-performing team Develop leadership capabilities & practical skills Gain self-awareness, self-esteem Influence executive decision-makers Earn recognition, appreciation, respect Arthur M. Freedman, MBA, Ph.D. 11/10/09