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!

Change occurs through vision…

And bold ideas!

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