Post on 25-Dec-2015
Managing Organizational Change
Practical Strategies For Leading During Turbulent and Challenging Times
The Main Objective – Maximizing Value to Your Community
Frank P. Saladis PMP, PMI Fellow
Past President NYC Chapter, Past Chair PMI EDSIG,
Community Involvement Lead - IT & Telecom COP
2
Frank P. Saladis PMP
• Background– AT&T Long Lines– AT&T BCS and Corp. ITS– Cisco Systems
Professional Services– International Institute for
Learning– Past President PMI® NYC
Chapter– Author -10 books– Community Involvement
Lead – IT & Telecom CoP– Founder International PM
Day– PMI Person of the year
2006
A Thought About Why We Are Here
Leadership meetings and other project management related
functions are continually preparing us for a greater role in our
communities. We are not only gaining experience and improving
our leadership capabilities, we are also becoming mentors,
people who have the ability to help others find ways to make a
difference in their lives, in their businesses, and in their
business community.
Thereby, we are all making a difference
Project Leaders Believe In:
Community
Bringing members of the project management
community together for knowledge sharing is an
effective method for advancing project management
expertise and to facilitate steady and positive
personal growth.
Engagement
Listening to, and building on, diverse viewpoints
enables creativity and generates new possibilities
and opportunities
Session Objectives
Provide a foundation for developing strategies to
manage organizational change effectively
Provide techniques that will improve the community
leader’s ability to create value adding change
Improve the capability to create a change ready team
Apply tools and techniques that will enhance personal
leadership effectiveness.
Quote of the Day
“There is no force more powerful in modern
business than productivity”
UTC CEO George David (United Technologies Corporation)
Human Pathology – A Management Metaphor
• Leaders and Managers– Diagnose problems– Determine the organization’s ills– Prescribe courses of action
• First, do no harm – a fundamental precept for physicians since
Hippocrates is appropriate for business leaders as well
• Change an organization through an understanding of its formal
and informal attributes – Its organizational DNA
Leadership Lessons Learned from Skilled Physicians
• The effective leader understands how to avoid broad-spectrum
applications when tweaking just a few elements with finesse and
sensitivity can lower the pain and raise the game
Strategy and Business, Leaders, Do No Harm, November 2013
3 Key Strategies for a Sustainable Course of High Performance
• Strategic clarity and coherence– Articulated and communicated required capabilities
• Resource Alignment– Continued investment in capabilities critical for success
• Supportive organization– Structure– Incentives– Decision rights– Skill sets– Culture
How Ready are you for Growth? Booz & Company, Ashok Divakaran and Vinay Couto
Eight Elements of Organizational Design
• Formal– Decisions– Motivators– Information– Structure
• Informal– Norms– Commitments– Mid-sets– Networks
You can’t simply shift people around and expect to truly change the way they work
PMI | Presentation Title
Let’s Get Settled
• Introductions
• Network
• Share
• Relax a bit
• Listen
• Change seats
Indicators That Life Is About To Change
Merger, Acquisition, Divestiture
New product or service
A new leader, boss, manager
New technology
New project
New requirement
New customer
________________
Organizational Change Within Your Organization or Community
• Significant changes– Planned– Unplanned (surprises)
• Impact of the change– Short term (immediate)– Long term – Consider brand, employee / member perception,
relationships, teamwork, attitude,– Positive or negative effect (damage, opportunity)
• Lessons learned
What Project Managers are Telling Us
The Key Competencies of a Project Manager
1. Communications Skills-verbal, written, text2. Leadership Skills3. Organizing Skills-planning, time management4. Interpersonal Skills5. Negotiating Skills-Diplomacy and mediating6. Team Building Skills7. Technical Skills Emphasis on
professionalism in planning and execution
Personal Assessment: Consider Your Current Capabilities and Your Future Opportunities:
1. To do all aspects of my leadership duties well, I need to improve
_______
2. If I were better at _______, I would excel relative to my peers
3. If I improved _______, I would resolve an ongoing problem
4. Feedback from several sources indicate I should improve _______
5. In the future, my organization will need more people who are effective
at _______
6. To advance to the next level of leadership within my organization I
should learn more about ______
7. The reasons why I should continue my personal development include:
____________________
Thoughts About Change
People don't resist change. They resist being
changed! [Peter Senge]
If you want to make enemies, try to change
something. [Woodrow Wilson]
Change is the law of life and those who look only to
the past or present are certain to miss the future.
[John F. Kennedy]
The Reality Of Change
Scenario Value if Everyone Adopts the Process
Value if no one adopts the process
Process change that impacts a workgroup of 15
$ 125,000 0
Technology change that impacts 150 employees
$ 780,000 0
Transformational initiative that impacts 1,500 employees
$ 1.655,000 0
A new process creates no improvement unless individuals follow the process. Likewise, a new tool or system delivers no value if individuals do not use the tool or system
“90 % of project problems are caused by people, not machines, tools or equipment”
Dr. Harold Kerzner, Ph.d
Organizational Level Impact of Poorly Managed Change
• Costs:
• Productivity plunges (deep and sustained)
• Loss of valued employees
• Reduced quality of work
• Risks:
• Impact on customers
• Impact on suppliers
• Morale declines
• Legacy of failed change
• Stress, confusion, fatigue
• Change saturation
Achieving The Desired Results
• The essence of change management is to encourage and
enable the individual transitions resulting from a project or an
initiative
• At the most basic level, if individuals don't adopt and embrace a
change, results will not be achieved
• The more effectively we can enable and encourage those
individual transitions using change management, the more
successful our projects and initiatives will be.
CHANGE MANAGEMENT ASSESSMENT
Developing your personal plans to improve how you manage
change
Assessing Your Change Management Skills – Score 1,2,3 or 4 for each question
1. I try to anticipate and lead change within my organization2. I make full use of the latest worthwhile IT developments3. I take any competitive, technological, and market changes very
seriously4. I look for opportunities for radical as well as continual change5. I like to be different and seek productive ways of creating
difference
6. I take an open minded approach toward new ideas and possibilities
7. I link change to any known needs of the customer8. I keep my change philosophy simple and concise9. I involve customers and suppliers in my plans for change10. I make a full and careful business case for changes and
change projects
Assessing Your Change Management Skills11. I break change projects down into manageable components12. I consult widely in the process of deciding on strategy and
action13. I obtain people’s agreement to the actions demanded of them14. I use and develop teams as the basic units of change
management15. I use quick-fix changes for instant results early in the change
program
16. I plan well ahead for the long-term payoffs of change17. I am careful not to create over-optimistic expectations18. I seize the opportunity to reward, celebrate, and encourage
successful change19. I make sure everybody knows the answer to “What’s in it for
me?”20. I have effective and adaptable contingency plans available
Assessing Your Change Management Skills21. I anticipate adverse reactions and plan how to deal with them22. I use well-designed pilots and experiments to test my change plans23. I share relevant information with colleagues and staff as soon as possible24. I work closely with like-minded people who are eager to change25. My own behavior is flexible and highly adaptable to changing needs26. I encourage people to speak their minds openly and to air their concerns
27. I tackle resistance to change promptly, fairly, and vigorously28. I use quantitative measurement to obtain the results I want29. I review and revise the assumptions that underline the change plan30. I ensure that thorough training keeps people up to date with change31. I start the next change project as another draws to a close32. I use self-appraisal to check on myself and the organization
Analysis
• 32-64 : You are resisting change or are unsure of its potential benefits. Overcome your fears and learn to plan for change
• 65-95: You understand the need for change – Now you must develop your skills to achieve it successfully
• 96-128: You are a skilled agent of change. Remember that change is a never-ending process so keep planning ahead
Essential Managers, Managing Change, Robert Heller, DK Publishing Inc. New York
It is not necessary to change. Survival is not mandatory.
~W. Edwards Deming
Change is inevitable - except from a vending machine. ~Robert C. Gallagher
Prepare yourself and your team to become
change ready
When you are through changing, you are
through. ~Bruce Barton
Predictions – What’s Coming?
Look aheadYour careerProject management methodsThe next PMBOK ® Guide – 900 pages?New credentials – ACP? PgMP?TechnologyPMI ® - What is changing?The global economyEnergy
Dealing With Change
• Change is almost always disruptive
• It can be traumatic
• People often avoid it if they can
• It is part of organizational life
Zero defects is an alien concept in Managing change and transition.
If people waited until changes could beperformed perfectly, they would nevermake the change
No such thing as an error free approach
Be Tolerant of Mistakes
That’s Inconvenient!
Noticing Small ChangesEarly Helps You Adapt ToBigger Changes That Are To Come
Who Moved My Cheese?
The quicker you let go of old cheese,the sooner you find new cheese.
Movement in a new direction helpsyou find new cheese.
Old beliefs do not lead you to newcheese.
Cheese Philosophy
“Imagining Myself Enjoying New Cheese EvenBefore I Find It Leads Me To It” -Haw
Lessons Learned About Change
If you were assigned as a “change mentor”……
• Reflecting on your personal experiences with
change (organizational change, change that
affected people you know, leaving a job, starting
a new business, other significant change events)
what lessons would you pass on?
Sources of Change
EnterpriseEnvironmentalFactors
Newcauses
Creates new opportunity Influences
Wants, needs,
Top Drivers of Change
1. Consumer preferences
2. Energy costs
3. Tax policies
4. Reverse innovation
5. Non-traditional competitors
6. Extended enterprise risks
7. Exponential growth in information flow
8. Long-term growth strategy / Globalization
9. Succession planning – exit of baby boomers
10. Generation values – BB, GenX, Gen Y, Millenials
11. TechnologyBloomberg Business Week
Change Can Be Destructive
Change can kill the spirit of an organization
Change often leaves job commitment lying
wounded and weak
Change puts heavy demands on the
organization
People tend to avoid change
Managing Change and Transition, Harvard Business Essentials
Stages of Reaction To Change
Shock
Defensive Retreat
Acknowledgment
Acceptance and adaptation
Managing Change and Transition, Harvard Business Essentials, Harvard
Business School Press
Lessons Learned About Change
1. Change involves numerous phases
2. Skipping steps only creates an illusion of speed
3. Critical mistakes in any phase can be
devastating, slow momentum, and negate
previous gains
4. Even the most capable leaders often make at
least one big error
Harvard Business Review on Change, Leading Change, John P. Kotter
Lessons Learned About Change
Most successful change efforts begin when:You look very closely at your company’s
competitive situation, market position, technology, and financial performance
You observe trends, declining margins, and emerging markets
You communicate this information broadly and dramatically
You motivate people to engage in aggressive cooperation
Harvard Business Review On Change, Leading Change, John P. Kotter
Key Points About Change
• Don’t under estimate the difficulty of driving
people out of their comfort zone
• Don’t over estimate your success in increasing
the urgency of a change
• Have patience. Don’t eliminate the preliminaries
• Change demands leadership. Beware of too
many managers and not enough leaders
Harvard Business Review On Change, Leading Change, John P. Kotter
Paving The Way for Successful Change
How Do You Become Change Ready?
Instead of repairing something to get it back to the way it was before, we need to ask ourselves: How can we fix things and make them better than before?
ThinkDifferently
Change Can Charge Up an Organization Change is part of organizational life
Change is essential for progress
Change opens doors
Change encourages creativity and innovation
Change can create the momentum to reinvent an
organization
Transition Management:Remove Doubt, Cynicism and Disillusionment
Provide employees with a strong sense of purpose
Justify the challenge of the change Provide a vision and mission that will inspire Employees won’t get emotional about
“increased market share” or 20% reduction in cost”
Create a genuine belief in the need to change
Barriers to Empowerment
Employees understand the Vision and want to make ita reality but are boxed in
Formal StructuresMake it difficult to act
Bosses discourageActions aimed atImplementing thenew vision
Personnel and informationSystems make it difficult to act
A lack of neededSkills underminesaction
Source – John P. Kotter, Leading Change, Harvard Business School Press
Relationship Management
Leadership: Set Expectations Intentionally
Assign responsibility for results
Hold people accountable
Assigning responsibility indicates a level of
trust between leader and team member
Assigned responsibility is associated with
personal worth and abilities
Leadership
An organization is change ready when:Leaders are respected and effectivePeople feel personally motivated to changeThe organization is non-hierarchical and
people are accustomed to collaborative work
Negotiation and Conflict ResolutionCommunicate Relentlessly Specify the nature of the change Explain why Explain the scope of the change, even if it contains bad news Develop a graphic representation of the change project that
people can understand and hold in their heads Predict negative aspects of implementation Explain the criteria for success and how it will be measured Explain how people will be rewarded for success Repeat, repeat, and repeat the purpose of change and actions
planned Use a diverse set of communication styles that is appropriate for
the audience Make communication a two way proposition
A Basic Enterprise Change Model
Company culture, values, and behavior
Vision and Business imperatives
Communication
Leadership (to drive change)
Execution
Follow-up
A Project / Program Change Model
Business imperatives
Clearly defined objectives
Leadership
Change Control process
Communication
Execution
Follow-up
The Handwriting On the Wall -Haw
Change happens Anticipate change Monitor change Adapt quickly to change Change Enjoy change Be ready to change Quickly and enjoy it
again and again
Who Moved My Cheese? Spencer Johnson, M.D G.P. Putnam’s Sons, New York
Conclusions and Summary:
The Main Objective –
Maximizing Value to the Business
Stop focusing on what you can’t control and address what isImportant – Your business and your projects
Taking Action
Three main areas of leverage
1. Improve processes
2. Improve the effectiveness of human resources (human capital) Working smarter through leadership Cross training – greater flexibility Promote an adaptive attitude
3. Utilize technology Increased efficiency
Lead The Way
Build a multi-year productivity improvement
planMore efficient and faster methodsTraining – Leadership, influencing, innovationReplacement of old technologyBusiness justification for new projects, products,
and services focused on customer benefits and value to the organization
A Plan of Action
• Determine how exposed
your business is
• Review and update your
business plan– Planning is
continuous– If you are not
planning, you are planning to fail
• Review your cash flow
situation
• Prioritize your financial
obligations
• Obtain payments and
collect unpaid bills
• Take appropriate cost
cutting measures
• Control inventory
• Review staffing
requirements
• Maintain a positive outlook
• Consider discounts
A Plan of Action
• Invest in your employees through
performance reviews, coaching, mentoring,
communicating, training
• Acknowledge excellent work
• Examine your leadership style and adjust to
create a committed and change ready
organization
Summing Up
• Enlist the support and involvement of key
people
• Develop a realistic implementation plan
• Support the plan with consistent behavior
• Develop an “enabling structure”
• Celebrate milestones
• Communicate relentlessly
International Project Management Day
• 7 November 2013
• www.internationalpmday.org
• We are attempting to plan a worldwide event
that connects project managers in an effort to
enhance awareness of the value of the
professional project manager
References and Source Material
• Managing Change and Transition – Harvard Business Essentials
• Conquering Adversity – Christopher Novak• A Survival Guide to The Stress of Organizational
Change – Price Pritchett and Ron Pound• Firing Up Commitment During Organizational
Change, Price Pritchett• Who Moved My Cheese? Spencer Johnson M.D.
G.P. Putnam’s Sons, New York• Harvard Business Review on Change, Harvard
Business School Press