© 2007 The MITRE Corporation. All rights reserved Driving Change in SOA Implementations: Can...

© 2007 The MITRE Corporation. All rights reserved

Driving Change in SOA Implementations:Can Organizations & People Really

Change?

September 29, 2008

Dr. Craig J. Petrun ([email protected])

The MITRE Corporation

Center for Enterprise Modernization (CEM)


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Agenda Making the case for Organizational Change

– Do IT projects really impact people?

What is the nature of the change process?– Linear vs. Non-Linear

Understanding how organizations and people change?– The impact of the systems nature of organizations – The impact of the individual on enabling change

Navigating the change process - The Pragmatic Side– Leadership, communications, resistance, training, transition

plans, managing risk

Implementing change in organizations – Lessons Learned


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Making the case for Organizational Change Management Assertion:

– All Information Technology implementations lead to changes in how the organization currently operates

Minor to radical

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

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


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Making the case for Organizational Change Management – SOA Transformational Challenges People

– Need to change behavior of employees and managers toward a more service oriented behavior

Mangers need to think more like leaders within a services framework Employees – more expected from individuals, it requires them to share their

skills, services knowledge in a repository Use of Integrated teams – need focus on team roles, behaviors Stakeholder Management – gain support for why SOA helps the enterprise and

to make sure key individuals are involved

Governance– Must establish lines of responsibility, authority, and communication

Need for making decisions about services across the lifecycle of services and the enterprise

Technical– Lack of control

Trusting mission critical capability to another organization, Security issues – more exposure, performance degradation, performance in real world (behavior under load), control over testing environments


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Making the case for organizational change management initiatives?

18% 26%

20%

36%

Why IT Projects Fail

Deficiencies in System Delivery (36%)· Failure to deliver by the due date· Technology did not work· System did not meet

requirements

Deficiencies in Organizational Change Management (26%)· Problem with organizational

change management

Changes Outside the Scope (20%)· Requirements changed by the

time the system was delivered· System delivered planned

benefits, but they no longer mattered to the business

Major Planning Errors (18%)· System was delivered and used,

but the benefits were not obtained

Source: Flint, D., “The User’s View of Why IT Projects Fail,” © 2005 Gartner, Inc. Findings based on 520 failed IT Projects with over 1000 staff.


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PresentState

TransitionState

FutureState

Organizational Transitions, Richard BeckhardManaging Transitions, Making the most of Change, William Bridges

ENDING NEUTRAL ZONE BeginningENDING 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


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Identifystakeholders,

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 actionif needed

Understanding how organizations change can help us prepare for the long journey ahead

Establish Urgency & Scope

Create & Communicate the Vision

DriveCommitment,Empowerment

Establish Change Infrastructure, Plans & Wins

Sustain & Refine the Change

Kotter, J. 1996. Leading Change


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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-linearThe Change Road Map – “The road ahead is full of landmines.”


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Input

Leadership

Motivation

Work Unit Climate

Management Practices

Individual Needs & Values

Systems (Policies & Procedures)

Organizational Culture

Task & Individual Skills

Structure

Mission & Strategy

Individual & Organizational Performance

Th

rou

gh

pu

t

OutputOutput

InputInput

External External EnvironmentEnvironment

Most organizational change is driven by environmental impact

Boxes indicate primary variables affecting organizational performance

Arrows indicate critical linkages

A change in any variable will ultimately affect every other variable

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


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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 ChangeThe Spiral of Individual Change

Pros vs. Cons

Prochaska, Norcross & DiClemente, 1994. Changing for Good, Harper-Collins Publishers


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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, 2001. Growing Leaders: A Leader-Builder Handbook. ASTD Publications

Executive behavior that encourages others to take required actions.


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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/BeneficiariesCustomers/

Beneficiaries

Internal WorkforceInternal

Workforce

InternalManagers andSupervisors

InternalManagers andSupervisors

ExternalBusinessPartners

ExternalBusinessPartners

OtherKey

Audiences

OtherKey

Audiences

LegislatorsPublicMedia

LegislatorsPublicMedia

SOAMessages

SOAMessages

Benefits of changenot clear

Leadership not alignedUnclear vision

Fear of change

Failure to communicate

Lack ofresources

Interference Interference


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Navigating the Change Process: Tools for assessing & managing risk: The DICE Model

The DICE Model measures four critical elements in organizational change:

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. 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.

Commitment– The commitment to change that both top management (c1) and employees

(c2) affected by the change display. 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


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Key lessons learned from the public sector Be a Leader, not a Bureaucrat –

– Ensure top leadership drives change Take a comprehensive approach

– Establish a coherent vision, mission and integrated strategic goals – 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 Improve Performance against Agency Mission

– Focus on a key set of priorities at outset of the transformation– Use performance management system and ensure accountability

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-03-293SP

Reference: 2006, Change Management in Government, Harvard Business Review, May.


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Industry Trends in Organizational Transformation

Key Strategies for creating change include: Dedicate resources from the start (organizational energy)

People / Financial / Senior Management Engagement

Close key implementation gaps– Teach new mindsets

Start with small group on tangible project – demonstrate success Mission & Vision statements are not enough – action learning a must

– Metrics and incentives Most times they reinforce past behaviors – penalize for new actions Develop comprehensive / innovative metrics that align to new behaviors

– Ways to overcome resistance Provide safe space in organization to overcome “antibodies”

– Senior Management Engagement Difficult for middle management to drive transformation 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. 2008

– Based on Innosight administered survey to 300+ Industry leaders on implementing organizational transformations


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Closing Thoughts:Can organizations and people really change? Yes! Successfully managing change requires…

An understanding of the organizational change process

A model for assessing the complexity of the challenge

The creation of an “integrated” transition plan

Insight into the nature of how individuals change

Leadership, communications, training, transition plans…

…..and, of course, ORGANIZATIONAL ENERGY!


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Closing Thoughts

Schrage’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


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Resources / References Bieberstein R., Laird R.,Jones K., & Mitra T. 2008 Executing SOA: A practical Guide for the Service

Oriented Architect. IBM Press, May Burke, 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. 2001. The Change Monster – The Human forces that fuel or foil corporate transformation

and change. Crown Publishing. Hubble, Duncan & Miller, 1999. The Heart and Soul of Change. Kotter, J. P. 1998. “Winning at Change” Leader to Leader, 10 (Fall 1998): 27 – 33 Lawson 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 Inst. 2005 Ostroff, Frank, May 2006. “Change Management in Government,” Harvard Business Review. Pizette, L. Significant SOA Federal Leadership Challenges, 2008 MITRE SOA Conf., April Simon, Robert. 2005. Levers of Organizational Design. Harvard Business School Press Velicer, Prochaska, Norman, & Redding. 1998. Applications of the Transtheoretical Model of Behavior

Change. Homeostasis, 38, 216 – 23 Mergers and Transformations: Lessons Learned from DHS & Other Federal Agencies, November 2002,

GAO-03-293SP.


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CommitmentCompliance

RealizationSomething is going to change

RealizationSomething is going to change

ComprehensionWhat will happen and why?

ImplicationsHow it will affect us?

ImplicationsHow it will affect us?

Opportunities PerceivedPerceived 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

Resistance


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Navigating the Change Process: The role of training

Knowledge transfer– Define and implement a knowledge

transfer process early Define training requirements

– Support systems– Resources (people & materials)

Model training to user and organizational needs:– Directly vs. indirectly impacted

users– Develop the right training, at the

right time, for the right users Training Evaluation


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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, People, ProcessProcess

TechnologyTechnology

Gap ClosureImpact Analysis

Organizational Gaps

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