© 2007 the mitre corporation. all rights reserved driving change in soa implementations: can...
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© 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)
© 2007 The MITRE Corporation. All rights reserved
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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
© 2007 The MITRE Corporation. All rights reserved
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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.
© 2007 The MITRE Corporation. All rights reserved
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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
© 2007 The MITRE Corporation. All rights reserved
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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.”
© 2007 The MITRE Corporation. All rights reserved
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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
© 2007 The MITRE Corporation. All rights reserved
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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
© 2007 The MITRE Corporation. All rights reserved
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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
© 2007 The MITRE Corporation. All rights reserved
14
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
© 2007 The MITRE Corporation. All rights reserved
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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
© 2007 The MITRE Corporation. All rights reserved
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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
© 2007 The MITRE Corporation. All rights reserved
18
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
© 2007 The MITRE Corporation. All rights reserved
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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!
© 2007 The MITRE Corporation. All rights reserved
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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
© 2007 The MITRE Corporation. All rights reserved
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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