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© 2008 The MITRE Corporation. All rights reserved
Driving Change in Organizations:Can Organizations and People Really Change?
December 16, 2008
Dr. Craig J. Petrun ([email protected])
The MITRE CorporationCenter for Enterprise Modernization (CEM)
© 2008 The MITRE Corporation. All rights reserved
Agenda
Organizational change – Why the buzz?What is the nature of the change process?– Linear vs. non-linear
Understanding how organizations and people change– Organizational models and assessments– The individual change process
Navigating the change process– The role of leadership, communications, training and
transition plansImplementing organizational change in government
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© 2008 The MITRE Corporation. All rights reserved
Why is Organizational Change Important to Enterprise Systems Engineering?
2
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.
© 2008 The MITRE Corporation. All rights reserved
Why is Organizational Change Critical to Successful Business Transformations?
Research indicates that:– Lack of change management is a common barrier and success
factor to achieving organizational goals.
3
Coopers & Lybrand and Opinion Research Corporation International, Jointly Sponsored Research Study ,October 1997.
Top Barriers% of 500 companies
Top Success Factors% of 500 companies
Functional boundaries 44%Lack of Change skills 43%Middle management 38%Long IT lead times 35%Communication 35%Employee opposition 33%HR (people/training) issues 33%Initiative fatigue 32%Unrealistic timetables 31%
Ensuring top sponsorship 82%Treating people fairly 82%Involving employees 75%Giving quality communications 70%Providing sufficient training 68%Using clear performance measures 65%Building teams after change 62%Focusing on culture/skill changes 62%Rewarding success 60%Using internal champions 60%
© 2008 The MITRE Corporation. All rights reserved
Agenda
Organizational change – Why the buzz?What is the nature of the change process?– Linear vs. non-linear
Understanding how organizations and people change– Organizational models and assessments– The individual change process
Navigating the change process– The role of leadership, communications, training and
transition plansImplementing organizational change in government
4
© 2008 The MITRE Corporation. All rights reserved
The Change Process: Moving through the Transition State
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Richard Beckhard, Organizational Transitions.William Bridges, Managing Transitions, Making the Most of Change.
PresentState
TransitionState
FutureState
ENDING 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.
© 2008 The MITRE Corporation. All rights reserved
Understanding How Organizations Change Can Help Us Prepare for the Long Journey Ahead
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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.
Establish Urgency &
Scope
Create & Communicate
the Vision
DriveCommitment,Empowerment
Establish Change
Infrastructure, Plans & Wins
Sustain & Refine the
Change
J. Kotter, Leading Change, 1996.
© 2008 The MITRE Corporation. All rights reserved
The Path to Change for Both Individuals and Organizations is Non-linear
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Jeanie Daniel Duck, The Change Monster, Crown Business, 2001 (Illustration by Gene Mackles).
The nature of change unfolds in a series of dynamic but manageable phases that require preparation.
The Change Road Map – “The road ahead is full of landmines.”
© 2008 The MITRE Corporation. All rights reserved
Agenda
Organizational change – Why the buzz?What is the nature of the change process?– Linear vs. non-linear
Understanding how organizations and people change– Organizational models and assessments– The individual change process
Navigating the change process– The role of leadership, communications, training and
transition plansImplementing organizational change in government
8
© 2008 The MITRE Corporation. All rights reserved
Understanding and Assessing the Complexity of Organizational Change
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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.
W.Warner Burke & George H. Litwin, “A Causal Model of Organizational Performance and Change,” Journal of Management, vol. 18, 1992.
Leadership
Motivation
Work Unit Climate
Management Practices
Individual Needs & Values
Systems (Policies & Procedures)
Organizational Culture
Task & Individual Skills
Structure
Mission & Strategy
Individual & Organizational Performance
Thro
ughp
ut
Output
InputExternal
Environment
© 2008 The MITRE Corporation. All rights reserved
Understanding the Nature of Individual Change Provides Additional Insights
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The Spiral of Individual Change
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
Pros vs.
Cons
Prochaska, Norcross & DiClemente, Changing for Good, Harper-Collins Publishers, 1994.
© 2008 The MITRE Corporation. All rights reserved
What are the Organizational Implications of Individual Change Patterns?
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The Spiral of Individual Change
Prochaska, Norcross & DiClemente, Changing for Good, Harper-Collins Publishers, 1994.
Preparation:
Action:
Maintenance:
AssessmentVision/Strategy
External Changes
Organizational Transition Plan
Cascading Leadership
Resources(Time, Dollars, Friends)
Choice, Training, SuccessPerformance
Management
Pre-contemplation:Contemplation:
CommunicationsStakeholder Analysis
© 2008 The MITRE Corporation. All rights reserved
Agenda
Organizational change – Why the buzz?What is the nature of the change process?– Linear vs. non-linear
Understanding how organizations and people change– Organizational models and assessments– The individual change process
Navigating the change process– The role of leadership, communications, training and
transition plansImplementing organizational change in government
12
© 2008 The MITRE Corporation. All rights reserved
13
Key Challenges:1. Ability to articulate a clear vision of the future2. Consistency of leadership behavior across all organizational levels3. Continuous development of the leadership talent pool and pipeline4. Powerful leadership development architecture5. Strategic organizational alignment6. Top team unity7. Ability to manage change and pursue continuous organization renewal
Navigating the Change Process: The Role of Leadership — What are Today’s Key Leadership Challenges?
Yearout & Miles, Growing Leaders: A Leader-Builder Handbook, ASTD Publications, 2001.
Executive behavior that encourages others to take required actions.
© 2008 The MITRE Corporation. All rights reserved
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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
Benefits of change
not clear
Leadership not alignedUnclear vision
Fear of change
Failure to communicate
Lack ofresources
Interference Interference
Customers/Beneficiaries
Internal Workforce
InternalManagers andSupervisors
LeadershipTeam’s
Messages
LegislatorsPublicMedia
ExternalBusinessPartners
OtherKey
Audiences
© 2008 The MITRE Corporation. All rights reserved
Navigating the Change Process: The Role of Training
Knowledge transfer– Define and implement a knowledge transfer
process earlyDefine training requirements– Support systems– Resources (people and materials)
Model training to user and organizational needs– Directly vs. indirectly impacted users– Develop the right training, at the right
time, for the right usersTraining evaluation– Kirkpatrick
15
© 2008 The MITRE Corporation. All rights reserved
Once the Nature and the Impacts of the Change are Understood, a Transition Plan Must be Created
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The strategy and vision are validated. The
organizational assessment is validated. Costs and benefits are
documented. All stakeholders and potential
gaps are identified.
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 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, Process
Technology
Gap ClosureGap AnalysisGap Identification
© 2008 The MITRE Corporation. All rights reserved
Agenda
Organizational change – Why the buzz?What is the nature of the change process?– Linear vs. non-linear
Understanding how organizations and people change– Organizational models and assessments– The individual change process
Navigating the change process– The role of leadership, communications, training and
transition plansImplementing organizational change in government
17
© 2008 The MITRE Corporation. All rights reserved
Can Change Occur in Government? YES!
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
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References: Mergers and Transformation: Lessons Learned from DHS and Other Agencies, GAO-03-293SP, 2002.Change Management in Government, Harvard Business Review, May, 2006.
© 2008 The MITRE Corporation. All rights reserved
Change Indicators: How Can You Tell If A Change Is Taking Hold In Your Organization?
Process to results/outcomesStovepipes to matricesHierarchical to more horizontal structuresInward focus to external focus (citizen, customer, stakeholder)Micro-management to employee-centered decision makingReactive behavior to proactive approachesHoarding knowledge to sharing knowledgeAvoiding risk to managing riskProtecting turf to forming partnerships
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GAO-03-95, Major Management Challenges and Program Risks.
© 2008 The MITRE Corporation. All rights reserved
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 challengeThe development of an “integrated” transition planInsight into the nature of how individuals changeLeadership, communications & training
...and, of course, RESOURCES!
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© 2008 The MITRE Corporation. All rights reserved
Closing Thoughts: Schrage’s Law of Organizational Obviousness
“The smarter the organization thinks it is, the more complacently it
manages the obvious.”
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Michael Schrage, Co-director of the MIT Media Lab’s eMarket Initiative.
© 2008 The MITRE Corporation. All rights reserved
Resources/References
Armenakis and Bedeian, Organizational Change: A Review of Theory and Research, 1999.Burke, W. Warner, Organizational Change: Theory and Practice, Sage Publications, 2002.Burke, W. Warner, Diagnostic Models for Organization Development, in Diagnosis for Org. Change, edited by Ann Howard, Guilford Publications, 1994. Burke, W. Warner, "Creating Successful Organizational Change.” Organizational Dynamics, Spring 1991, pp. 5–17.Burke, W. Warner and Litwin, George H., "A Causal Model of Organizational Performance and Change," Journal of Management, Vol. 18, No. 3, 1992.Duck, Jeanie Daniel, The Change Monster – The Human Forces that Fuel or Foil Corporate Transformation and Change,Crown Publishing, 2001.
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© 2008 The MITRE Corporation. All rights reserved
Resources/References (continued)
Duncan, Robert, “What is the Right Organization Structure? Decision Tree Analysis Provides the Answer,” Organizational Dynamics, Winter 1979.Fitz-enz, J., “The Truth About Best Practice.” Human Resources Planning, 1993, pp. 16, 19–26.Fitz-enz, J., The ROI of Human Capital, New York, AMACOM, 2001.Grawitch, M. J., Gottschalk, M., and Munz, D.C., The Path to a Healthy Workplace: A Critical Review Linking Healthy Workplace Practices, Employee Well-being, and Organizational Health, 2006.Greiner, L., Evolution and Revolution as Organizations Grow, HBR, July-August, 1972.Huber, G. and Glick, W., Organizational Change and Redesign,edited by Huber & Glick, Oxford University Press, 1995.
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© 2008 The MITRE Corporation. All rights reserved
Resources/References (continued)
Hubble, Duncan, and Miller, The Heart and Soul of Change, 1999.Kotter, John P., “Winning at Change,” Leader to Leader, No.10 (Fall 1998), pp. 27–33.Kotter, John P., Leading Change, Harvard Business School Press, 1996.Lawson, E. and Price, C., “The Psychology of Change Management,” McKinsey Quarterly, 2003.Nadler, T., Gerstein, M., and Shaw, B., Organizational Architecture: Designs for Changing Organizations, Jossey-Bass, 1992.Kelman, S., Unleashing Change: A Study of Organizational Renewal in Government, The Brookings Institution Press, 2005.Nadler, D., and Tushman, M., “Formal Organization Arrangements: Structure and Systems,” from Strategic Organization Design by Nadler & Tushman, 1988.
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© 2008 The MITRE Corporation. All rights reserved
Resources/References (concluded)
Parchman, R. W. and Miller, F., “Keys for Increasing Employee Utilization of Wellness Programs,” from Employee Benefit Plan Review, 2003, pp. 57, 20–22. Shinn, Gregory, “Intentional Change by Design,” Quality Progress, Vol. 34, No. 5, May 2001, pp. 46–51.Simon, Robert, Levers of Organizational Design, Harvard Business School Press, 2005.Scholl, Richard, Application of the Transtheoretical Model. Professor of Management, University of Rhode Island, www.cba.uri.edu/Scholl/Notes/Organizational_Change, 2000.Velicer, Prochaska, Norman, and Redding, “Applications of the Transtheoretical Model of Behavior Change.” Homeostasis, No.38, 1998, pp. 216–233.
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