change and transformation in complex setting - source2pay summit stockholm, 2016

How do you enable change and transformation in

complex settings?Pontus Wadström

A Real Movement | KTH

Pre-Conference workshop Source2Pay-summitStockholm, 20160420

Purpose of this workshop

Contribute with insights and elaborations on change and transformation in complex organizational settings

• Point of departure

• Why do change and transformation initiatives fail?

• What is real and sustainable change?

• How do you succeed in change and transformation?

• Summary and conclusions

Agenda

“Corporations generally leave 40 % of their gains on the ‘drawing table’”.

Mankins & Steele, 2005

“Between 70-90 % of all strategic change initiatives fail to reach their targets”.Beer & Nohria, 2000; Pettigrew & Whipp, 1991

Change and transformation is hard

As it seems

A management paradox

Planned strategy Realized strategi

Unrealized

strategiEmergent strategy

Mintzberg & Waters, 1985

Planning and realization





• Summary and Closure

Agenda

Group assignment- Discuss, in your group, and agree upon 3-5 reasons you think are the most common ones

that causes change and transformation initiatives to fail

Supporting questions- Lack of knowledge? Lack of interest?- It’s not important? - Internal politics?

Method- Think individually (1 min)- Discuss your individual thoughts - similarities and differences - in your group (15 min)- Prepare yourselves to present your discussion, questions and the answers you found

together (5 minutes)

Why does change fail?

Direction CompetenceMotivation Resources Reinforcem

ent Confusion

Direction

Motivation

Resources Reinforcement

WorryDirection

CompetenceMotivation

Resources Reinforcement

Refusal

Direction Competence

Motivation

Resources Reinforcement Frustration


ent False start


ent Change

Competence

Prerequisites for change





• Summary and Closure

Agenda

Group assignment- Discuss, in your group, and agree upon a description of ”change” and/or ”transformation” you

like and prepare yourselves to present your ideas.

Supporting questions- Is change something you do, or something you’re a part, of or both?- What is the difference, if any, between change and transformation?- What and who is a change manager and/or change agent?- Do we need change and transformation? What is it’s purpose?

Method- Think individually (1 min)- Discuss your individual thoughts - similarities and differences - in your group (15 min)- Prepare yourselves to present your discussion, what questions you had and the answers you

found together (5 minutes)

What is change?

“A reorganization, a diversification, a shift in technology, a reconfiguration of a process or a new composition of product and/or service portfolio”.De Wit & Meyer, 2005

”A new/changed set of a person’s behavior repertoire”.Skinner, 1976

”To make or become different”.Cambridge Dictionary, 2016

Some definitions...





• Summary and Conclusions

Agenda

Strategy

Structure

ProcessRewards

Human capital

Gailbraith, 2001

Aspects of organizational design

20 % Affects 80 %

Activator Behavior ConsequenceA B C

80 % Used

20 %

Planning Learning

Braksick, 2007

Behavioral change

ANALYZE• Produce presentation of the

change• Implementera change activities• Evaluate change activities• Check with stakeholders and

organization• Describe baseline• Analyse training needs

Prepare Implement Finalize

Plan Design Build Test Roll out

TG1 TG2

Analyze

TG3 TG4 TG5 TG6

Project Management

TG8TG7

PLAN • Perform goal analysis• Produce change message• Formulate change activities• Produce stakeholder analysis• Producde communication plan• Produce Business Case

DESIGN• Check with stakeholders and

organization• Ensure all organizational

perspectives• Produce training plan and goals• Produce plan and organization for

support• Evaluate and update change

activities

ROLL OUT• Deliver to line organization• Transfer to support

organization

TEST• Check with stakeholders and

organization• Update training goals• Evaluate and update change

activities

BUILD• Check with stakeholders and

organization• Evaluate and update change

activities• Produce training material

A well defined change process

Adjust to magnitude, amplitude...

Ampl

itud

e of

ch

ange

Magnitude of change

BIG

SMALL BIG

Big changes for a limited part of the organization

Small changes for a limited part of the organization

Small changes for a significant part of the organization

Big changes for a significant part of the organization

... and realizability• Ability to get decisions

• Support from key stakeholders

• Security in results

• Degree of involvement

1-5

1-5

1-5

1-5

Realizing benefits Developing competence

Communicating

Evaluating and managing

Areas of responsibility and importance

• Goal analysis;• Identify, define, anchor, decide,

implement, realize, evaluate, feedback

• Uniformly defined changes• Go from... to…

• Set various types of benefits• Green, yellow, red, blue

• Evaluation, update and transfer of responsibility to line or support

Realizing benefits

• Tailormake

• Set targets

• Evaluate

• Spread knowledge

Format of training

Tasks Target group

Frequecy Complexity/ Magnitud Importance Geografy Size

High Low High Low High Low Central Spread Large Small

E-learning X X X X

Class room X X X X

Computer room X X X X

Web education (live) X X

Tutoring/supervision X

User support X X X X X X X X X X

Developing competence

VISION

INTERACTION

OPERATIONAL

FACTS

FACTS

FACTS FEELINGS

FEELINGS

FEELINGS

- Intranet- Emails

- Personal meetings- Management team meetings- Ambassador meetings- Workshops

- Workshops- Group meetings- Short films- Manuals

HowChannels and arenas

WhoTarget groups

- Project members...- Management team...- Key stakeholders...- Ambassadors...

-Everyone…

- Target group A...- Target group B...

…should understand the purpose

WhatPurpose

…should be involved in change activities

… should acknowledge and be ready for the ”new”

Communicating

Change Activities w.37 w.38 w.39 w.40 w.41 Produce change message

Check change message with communications manager

Check stakeholder analysis with steering group

Direction MotivationCompetenc

e Resources ReinforceComments

to resultIdentification

of risks1 2 1 1 1 … 3 3 2 1 2 … 2 3 4 3 2 … 4 4 4 4 3 … 1 2 1 1 1 … 3 3 2 1 2 … 2 3 4 3 2 … 4 4 4 4 3 …

Evaluating and managing





• Summary and Conclusions

Agenda

Purpose of this workshop

Contribute with insights and elaborations on change and transformation in complex organizational settings

Assignment- Discuss in your group what we have been talking about this day and conclude some

important learnings to bear with you

Supporting questions- Why do change and transformation initiatives fail?- What is real and sustainable change?- How do you succeed in change and transformation?

Method- Think individually (3 min)- Discuss your individual thoughts in your group (5 min)- Prepare yourself to present your personal ideas, what questions you had and the answers

you’ve found during this afternoon

What have you learned about change?

Make sure…• ...direction, competence, motivation,

resources and reinforcement are in place.• ...strategy, structure, processes, rewards

and human capital are pulling in the same direction.

• ...to define all benefits measurably, if only 1/0

• ...to evaluate and feedback often, and genererate change activities based on results

• ...to use 0,6 FTE change management per project management

• ...to spend a lot of time with management and other stakeholders

• ...design every change activity to enhance direction, competence, motivation, resource or reinforcement

• ...to prepare yourself and your environment for hard work

Unless…• ...all prerequisites are in place...• ...all organizational aspects contribute to

the change ...• ...benefits are measurable, you will not

know how the change is going, or when you’re done and...

• ...measuring, evaluation and feedback happens...

• ...time and resources are used for change management...

• ...the leadership and other key stakeholders understand, support and drive the change...

• ...all change activities have a clear purpose and goal they tend to be ”communication” and then...

• ...the change is conducted extremely thoroughly and persistent...

...there will be no change

Summary and conclusions

Pontus Wadström [email protected] +46760-550010 arealmovement.com #A_Real_Movement

https://se.linkedin.com/in/pontuswadstrm

Thank you for your time and

effort!