Organizational Change Management…

• Business Analytics impact on Decision Processes…

Business Analytics, setting the stage…

• Dream of Business Analytics: • Moneyball (breaking biases) - https://

youtu.be/yGf6LNWY9AI

• Organizational Reality of Business Analytics:• Team Selection Scene -

https://youtu.be/PX_c7W5RNJ8

Organizational Change Management?• Organization change occurs when business strategies or major

sections of an organization are altered. Also known by other names such as ‘growing pains’, reorganization, restructuring or turnaround.

• Why is it needed?• John Kotter: “70% of ‘change’ initiatives fail…”• Steering the Titanic…?

Why is ‘Change Management’ Hard?

Readiness for Change…• Is change Resistance, really a lack of readiness?

• Appropriateness (Beneficial, Alignment, Justified)• Management Support (Commitment, Emphasis, Encouragement)• Change Efficacy (knowledge, Skills, Track Record)• Personally Beneficial (Individual status & relationships)

Source: Journal of Applied Behavioral Science, 2007, Vol. 43, No. 2. “Readiness for Organizational Change – The Systematic Development of a Scale”.

Complexity - Multiple Organizational Levels…

• Hierarchy – • Executive• Manager• Supervisor• Team Members• Individual Employees

• Functional Silos – • Marketing/Sales• Finance/Accounting• Management• Operations/Manufacturing• Purchasing/Logistics• HR, IT, etc.

Organizations as “Complex Systems”• What is a ‘Complex System’’? (not a mechanistic machine but a

dynamic evolving entity)

• Characteristics of a complex System?• Feedback loops• Self Organization • Emergent Behavior (unexpected)• Non-Linear processes• Sensitivity to Initial conditions

How do you “change a system”?

Leverage Points:

Areas where small changes can have a significant impact.

Leverage Points to Intervene in a System9. Numbers (subsidies, taxes, standards).

8. Material stocks and flows.

7. Regulating negative feedback loops.

6. Driving positive feedback loops.

5. Information flows.

4. The rules of the system (incentives, punishment, constraints).

3. The power of self-organization.

2. The goals of the system.

1. The mindset or paradigm out of which the goals, rules, feedback structure arise.

Source: Developer.* Magazine, 2005. “Places to Intervene in a System”, by Donella Meadows.

Were there any examples of these leverage points in the video clips?

Impact of Business Analytics on Organizations• Evolution of Technology, Tools, etc. (positive feedback loop)• Mountains of data accumulating…• How to make sense of it?• How to make use of it?

• Improve Decision Making processes…• Decision Quality (Data driven?)• Timeliness (how fast is fast enough?)• Monitor/react to/predict? - changes in business environment

Business Analytics impact on Performance

Source: European Journal of Information Systems, 2014, 23. “Transforming decision-making processes: a research agenda for understanding the impact of business analytics on organizations”.

Where does Business Analytics impact YOUR Organization?

Convert Data Overload to Business Value ?• Data Insight…

• Emerge from engaging analysts with business managers…• Do existing structures & processes support this?

• Insight Decisions…• Simon’s model – Intelligence (data); design (options); choice (decision)• How do ‘insights’ get converted into good decisions in an organization?

• Decisions Value…• How do ‘good’ decisions get properly implemented?• How do we ‘know’ decisions align with sound strategic intent?

Source: European Journal of Information Systems, 2014, 23. “Transforming decision-making processes: a research agenda for understanding the impact of business analytics on organizations”, by Sharma, Mithas and Kankanhalli.

Value Creation through ‘Big Data’• Creating Transparency• Enabling Experimentation – discover needs/variability, improve

performance• Segmenting populations to customize actions• Replacing/Supporting human decision making• Innovating new products, services and business models

Source: McKinsey Global Institute, 2011. “Big Data: the next frontier for innovation, competition and productivity”, by Manyika, Chui, Brown, et al.

Organizational Impact of Business Analytics5 Issues related to Creating Business Value from ‘Big Data’

1. Data Policies2. Technology and Techniques3. Organizational Change and Talent4. Access to Data5. Industry Structure

Source: McKinsey Global Institute, 2011. “Big Data: the next frontier for innovation, competition and productivity”, by Manyika, Chui, Brown, et al.

MWOTH Change Management – NOT!

How to Deal with forces that work ‘for’ or ‘against’ Change?

Design Principles for Change in a Complex System…

• Create a shared purpose (Shared Vision)• Cultivate inquiry, learning, experimentation & divergent thinking• Enhance interconnections via communication & technology• Instill rapid feedback loops for self-reference & self-control• Cultivate diversity (are all parties affected in the ‘room’?)• Create shared values and principles of action• Make explicit a few but essential structural & behavioral boundaries

Source: Nonlinear Dynamics, Psychology and Life Sciences, 1997. “A Complex Adaptive Systems Model of Organizational Change”.

Shared Vision?• Places to Intervene:

#2 – Goal of the system…#1 – Mindset, etc.

Shared Vision - • Not the company ‘mission’ or ‘vision statement’… (piece of paper)

• Shared Vision:a shared meaning (throughout the organization), that inspires action…

Group Exercise…• In the context of Business Analytics: Think of a time when you were

involved in a collaboration or project including BOTH ‘Business’ and ‘IT’ that was VERY successful …

• What happened?• Who was Involved?• How did group members interact?• What or who helped make the project successful?• What Barriers had to be overcome? How did that unfold?

Change Management vs. Change Leadership

Source: Journal of Change Management, 2003. “Change Management – or Change Leadership?”, by Roger Gill.

IT vs. Business Divide…?

• Why is there a ‘divide’?

• What narrows this gap?

• How can the gap be bridged?

Boundary Spanning…• Boundary Spanner - individual within an organization who is given or adopts

the role of linking the organization's internal networks (eg. Between engineering and manufacturing or IT and Business)

• Are ‘Boundary Spanners’ – Translators or Facilitators?• Language/Terminology• Perspective• Relationships• Leadership

Source: MIS Quarterly Special Issue, 2005. “Emergence of Boundary Spanning Competence in Practice: Implications for implementation and use of Information Systems”, by Levina and Vaast.

Change Management is necessary!!!

• Imagine – Significant Organizational change without it…• Adapt or Die Scene - https://youtu.be/ugN5aD5p2NU