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Welcome to Managing Change: An Strategic HR Imperative October 15 th, 2012 Dr. Steve Manderscheid (612-423-9783) The OD Center (theodcenter.com)/Concordia University
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Road Map Overview OD & Change Mgmt. Defined Strategic HR Leadership Action Research & Appreciative Inquiry Change Models Kotter’s Model, DVFR Model, Implications Wheel, Multiple Stakeholder Analysis, and more.
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Competence Consciousness Competence Conscious IncompetenceConscious Competence Unconscious Incompetent Unconscious Competent Gordon Training International - Confucius and Socrates
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HR Leaders How do you differentiate between HR Leaders and HR Managers?
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Managers and Leaders “Management is responsible for maintaining order; and leadership is responsible for producing change, or movement.” Kotter, J. P. (1990). What leaders really do. Harvard business review, May-June, p. 103-11.
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HR Competencies HR Professional Business Competence Professional & Technical Knowledge Integration Competence Ability to Manage and/or Lead Change Noe, R. A, Hollenbeck, J. R., Gerhart, B. & Wright, P.M. (2000). Human resource management: Gaining a competitive advantage (3rd ed.). New York, NY: Irwin McGraw-Hill
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Strategic HR? What does it mean to be strategic from an HR standpoint…or what is Strategic HR?
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Strategic HR Defined In a nut shell, strategic HR increases an organization’s ability to achieve its vision, mission, and strategic objectives. This is accomplished by developing (not in a vacuum) and implementing HR strategies (initiatives) that are align with the organization’s direction.
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Key Message about Change Don't Do Change for the Sake of Change – Do Change to Enhance Organizational Performance!
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HR’s Role is to… Develop and implement programs, policies, and other change initiatives that are aligned with strategic direction. Serve as a coach, facilitator, and mentor to leaders who are charged with implementing change, i.e., improve individual and team effectiveness. Refer OD (change) work to others or they are a direct customer of someone who is serving as an change agent…internal or external.
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OD and Change Management Organizational Development – refers to the nature and scope of change in organizations. Organizational development is an outcome of organizational change activities. Organization Development - refers to a field of well- trained people with expertise in guiding successful organizational development. Change Management - refers to the implementation of an approach or methodology to ensure the organizational change effort is successful.
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Change Types Type I – That which is done to us - As a rule nobody likes Type I Change. Type II – That which we do to ourselves - We're in control. We're deciding for ourselves that doing something different is necessary. It is not always easy. Type III – That which we do to others - Change from the other side of the fence. If we're inflicting Type III Change, then they perceive it as Type I Change.
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Types of Org. Change Organization-wide Versus Subsystem Change Transformational Versus Incremental Change Remedial Versus Developmental Change Unplanned Versus Planned Change
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Action Research Start-up (Entry) Assessment & Feedback Action Planning Intervention (Change Management) Evaluation Separation Lewin, K. (1946). Action research and minority problems. Journal of Social Issues 2(4), 34-46.
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ADDIE Model Assessment Design Development Implementation Evaluation Molenda, M. (2003). In search of the elusive ADDIE model. Performance Improvement, 42(5), 34-36.
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Assessment (Data Collection) Interviews Focus Groups Document Review Surveys/Questionnaires Observation
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Data Collection and Analysis Good planning assumes that the process used in gathering information is accomplished in a climate of trust and respect. Data gathering represents the first major intervention and will to a large degree, determine the degree to which the organization will trust the planning effort. The very acts of soliciting data and providing feedback will provide early signs about how the process is and will be perceived by the organization. Napier, R., Sidle, C., & Sanaghan. (1998).High Impact Took and Activities for Strategic Planning, New York, NY: McGraw Hill.
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Triangulation McLean, G. N. (2006). Organization development: principles, processes, performance, San Francisco: Berrett-Koehler. Two Key Points: Determine whether the data collected are the same regardless of method. If they are you have increased the likelihood of reliability. However, the purpose of triangulation is to increase the variety and richness of data collected.
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Inquiry and Assessment The operations manager for a Fig Newton processing plant has come to you for advice. Even though all of the employees in the plant recently completed a safety training program, the accident rate has not improved. In particular, the manager has found that the employees are not using safety equipment and not following safety procedures. Develop several possible reasons to explain the employees’ behavior. Possible Reasons:
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Case Study You are the HR generalist at Biotechniks, a manufacturer of surgical devices. The director of product development contacts you to do some work with one of the product development teams which, she says, “is dysfunctional.” She goes on to tell you the team is working on an innovative product, but has been having difficulty meeting deadlines and friction exists between two of the primary engineers on the team. Morale is slipping among team members and one is rumored to be looking for another job. Top management is concerned because the product is a ‘hot’ one and needs to get on the market ASAP. The team members include: two design engineers, a quality control engineer, a manufacturing engineer, a production supervisor, and a marketing staff person. How would you approach this situation using the first two or three phases of Action Research?
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Case Study A new CEO of a 1500 person financial services organization is onboard with a new vision and strategic direction. She approaches you, the Director of HR, and expresses that they are not convinced that the organization has the right culture to support the new vision. How would you approach this situation using OD as an approach? Entry: Highlight some questions you might initially ask of the CEO? Assessment & Feedback: Describe an approach for analyzing the situation using multiple data collection methods. Moreover, describe your approach for providing feedback. Action Planning & Intervention: Moreover, highlight several interventions that might emerge from data analysis and subsequent action planning.
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Appreciative Inquiry “The traditional approach to change is to look for the problem, do a diagnosis, and find a solution. The primary focus is on what is wrong or broken; since we look for problems, we find them. By paying attention to problems, we emphasize and amplify them…which can be defeating. Appreciative Inquiry suggests that we look for what works in an organization. The tangible result of the inquiry process is a series of statements that describe where the organization wants to be, based on the high moments of where they have been. Because the statements are grounded in real experience and history, people know how to repeat their success.” Hammond, S. (1998). The Thin Book of Appreciative Inquiry. Thin Book Publishing Company.
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Appreciative Inquiry (Model) Discover - The identification of organizational processes that work well. Conduct interviews or survey to explore the best of what is….have people tell their stories. Dream - The envisioning of processes that will work well in the future. Design - Planning and prioritizing processes that will work well. Destiny or Deliver - The implementation (execution) of the proposed design.
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Lewin’s Change Model Unfreeze – Individuals are encouraged to discard old behaviors by shaking up the equilibrium state the maintains the status quo. Transition – New systems, attitudes, values, and behaviors are substituted for old ones. Refreeze – New systems, attitudes, values, and behaviors are established as the new status quo. Lewin, K. (1951). Field theory in social science; selected theoretical papers D. Cartwright (ed.). New York: Harper & Row.
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Productivity Curve Time Productivity UF Transition Refreeze
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Phases of Change
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CAVE People Citizens Against Virtually Everything
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Kotter’s Change Model Establish a Sense of Urgency Create a Guiding Coalition Develop a Vision and Strategy Communicate Vision Empower Employee for Broad-based Actions Generate Short-term Wins Consolidate Gains and Produce more Wins Anchor New Approaches in the Culture Kotter, J. (1996). Leading Change. Boston: Harvard Business School Press.
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D X V X F > R Model D x V x F > R D = Dissatisfaction with the current situation V = Vision for the future F = First steps in the direction of the vision R = Overall Resistance to change X X > Richard Beckhard, R. T., & Harris, R. T. (1987). Organizational Transitions: Managing Complex Change, Addison-Wesley Publishing Company.
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Organizational Change SkillsIncentivesResourcesAction Plan +++ Vision SkillsVision Skills Incentives Resources Action Plan + + + + + + + + + + + + + + + Confusion Anxiety False Starts Frustration Gradual Change Change = = = = = = + + + + +
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Force Field Analysis Think of a problem you are currently facing… An example would be trying to increase the amount of study time to devote to a particular class. Describe the problem as specifically as possible. List the forces driving change on the arrows at the left side of diagram. List the forces restraining change on the arrows at the right side of the diagram. What can you do, specifically, to remove the obstacles to change? What can you do to increase the forces driving change.
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Force Field Analysis Forces for Change Forces against Change Proposed Change: Upgrade factory with new manufacturing equipment. 7 6 5 3 6 3 5 2 4 7 Control Maintenance Cost Customers Want New Product Increase Speed of Production Disrupt Production Cost Loss of Staff Overtime Environmental Issues
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Multiple Stakeholders Finance Operations Employees HR Engineering Sales Customers Proposed Change Perspective
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Stakeholder Comm. Tool Stakeholder Perspective Influence Communication Method Communication Frequency The name & role the person or group has in the change process. Share the perspective of the stakeholder as it relates to the change. Rate the level of influence the person has on the implementation of the change initiative. How will you communicate with this person? Example: - Town hall - Web updates - Focus groups - Group e mails etc. How often will you communicate? - Weekly - As needed - Monthly etc.
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Implications Wheel Pay for Performance Easier to Recruit Leader Competition Leader Burnout Prod. Increase Increase Absence Stress Mgmt. Training Employee Turnover Morale drop for Marginal Emp. Reinforce - carrot and stick theory
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McKinsey’s 7-S Model
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Strategy – The feasibility of the organization’s long-term strategy and how well it is communicated and understood throughout the organization. What are XYZ’s sources of sustainable competitive advantage (e.g., cost, quality service, technical leadership etc)? Shared Values – The core purpose and central belief system of the organization, i.e., does the organization have a share identity and belief system. Culture – The primary drivers of organization culture, i.e., policies, management style, communication processes. Systems – The processes and procedures through which work is accomplished. This includes financial systems, IT systems, HR systems, etc. Structure – The way in which the organization is structured, its departments, reporting lines, areas of expertise, and responsibility (and how they inter-relate). Staff - The company's human capital and how they are developed, trained, and rewarded. Skills - The collective capabilities and competencies that exist within the organization.
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McKinsey’s 7-S Model Meet with the client to identify need (Entry) Interview key stakeholders, document review, etc. (Assessment) Provide feedback and corroborate the data (Feedback) Work with the client to identify ‘high impact’ points of intervention. (Action Planning) Prioritize interventions, identify ownership, develop a plan, set goals (and measures), and execute. (Intervention) Evaluate interventions (Evaluation) Debrief the change process (Learning and Separation)
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It Might Happen Anyway… Two caterpillars are conversing and a beautiful butterfly floats by. One caterpillar turns and says to the other… "You'll never get me up on one of those butterfly things."
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Closure Questions or Concluding Comments?
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