change management and innovation...refine your understanding of change management and innovation...
TRANSCRIPT
Change Management and Innovation
Techniques and Stories to Help Ease the Pain of Transition
Presented by: Michael Gauthier, MIT Lincoln Laboratory
DisclaimerThis presentation was prepared or accomplished by Michael Gauthier and Donald Vandeveer in their own personal capacities. The opinions expressed in this presentation are the authors’ own and do not necessarily reflect the official policy or position of Massachusetts Institute of Technology, the Department of Defense, or any other agency, organization, employer, or company past or present.
Introduction
The PurposeThe intent of this session is for you to:
1. Refine your understanding of change management and innovation from another perspective.
2. Learn the roadmap for establishing the correct “environment” ripe for change and innovation.
3. Use the strategies and our examples to make positive impact in your own organization.
A Preview• What is change management and innovation? Why does it matter? What
challenges are facing organizations today;
• How to create the environment for innovation, and ready people for change;
• When it goes wrong, and why;
• Case study examples of success;
• Q&A.
What is Innovation?• Innovation is…
“the adoption and utilization of a creative idea, or a creative product, or a creative concept” (Nino, David; MIT; 2018)
• Application of, and not just thoughts
What is Change Management?• ACMP defines change management as…
“…the practice of applying a structured approach to transition an organization from a current state to a future state to achieve expected benefits.” (ACMP Standard for Change Management©, page 9)”
• Change management is intentional, structured
The Overlap
ChangeManagement
InnovationMany
Common features
Why Does CM & Innovation Matter?• Organizational competitive edge• Employee growth, development, satisfaction, and retention• Creation of new leadership opportunities, and refines the existing • Fine tunes “people skill sets” of current leaders and managers
WHY ELSE DO YOU THINK IT MATTERS?
What Challenges Do Organizations Face?
• Speed of information transfer (interpersonal, email, social media, traditional media, websites) and time pressures.
• Misinformation can be communicated too quickly before an organization’s ability to address it timely (quick judgements, biases)
• Integration challenges – people, processes, systems, cultures and vision• Technology obsolescence, and changing technology• Individuals in upper organizational roles possess different levels of
innovation and change management maturity / skillset
“50% of managerial decisions fail to solve problems” (Prof. Paul Nutt, OSU)“50% of managerial decisions fail to solve problems” (Prof. Paul Nutt, OSU)
How Do You Innovate, and Ready People for Change?
1. Culture and environment (soil, foundation, proper conditions) comes first. How to create a solid foundation? Here are some suggestions: Build trust, sense of belonging, sense of urgency, passion in helping others Proof of compassionate acts (will, commitment, selflessness, follow through) between people Confidence in culture, individual self confidence in abilities Focused repetitions + time = continuous improvements People over processes Transparency
WHO?• Soil/Foundation creators and
tillers (upper level, C‐Suite, managers)
• Operators of function (staff, volunteers)
• Stakeholders (committee, board)EVERYONE!
FOCUSED, DISCIPLINED APPROACH TO EVERY TASK
Pittsburgh Pirates - Dave Turgeon, 2019
WHAT DOES “RESPECT THE REP” MEAN?
How Do You Innovate, and Ready People for Change?
2. Proper understanding and definition of the problem. Problem definition usually is laced with a solution(s). Biases kick in, and
premature decisions then occur. Your chances of successful innovation decreases when this happens.
HoustonPublicMedia.org
Air pollution in Houston, TX
How Do You Innovate, and Ready People for Change?
3. Understanding of constraints, risks, stakeholders, and resources (time, $)
4. Leadership and grassroots support (vision, alignment, purpose). Honor and build on the past (traditions, etc.)
5. Effective communication and influencing (use of committees/diverse crowds, “expert” feedback, and use of structured brainstorming sessions)
6. Early success and small continuous improvement (consider proof of concept)
When it Goes Wrong• 1983 – 14 products developed that
weren’t built or ready to ship• 1986 ‐ Board of directors concern
over Dr. Wang’s son, Fred, taking over Wang Laboratories versus someone experienced. Dr. Wang did not yield
• 1990 ‐ Dr. Yang succumbs to illness• 1992 – filed for Chapter 11
bankruptcy
“…He was lost. It was clear that he did not understand the magnitude of the problem. Fred described the company’s problems as a ‘management dysfunction’….” (Kenney, 1992)
Wang Laboratories
When it Goes Wrong• Municipal bankruptcy• Unfunded Liabilities• Revenues down• 2005 – 2006: Risky decision as City
sold pension obligation certificates (taxable bonds) which ½ of them were part of an interest swap deal with banks to protect versus rising rates. Interest rates went down and City doubled debt to $2.8B over 22 years
“It’s these financial deals that put them over a barrel, if you will, because of the loss of state aid and the declines in revenue.” (Artz, 2013)
CASE EXAMPLES OF SUCCESS1. Co‐production scenarioFinancially unstable scenario. RiskCollaborative approachProblem identified, well thought out, buy‐in
2. Contract Committee WorkModernization of contracting methodology and toolsBuy‐in at all levels. Diverse committee – professionally facilitated, managed, and structured. Vision!Results and application! Phase 2 requested and taken up!
Q&A
In Closing
BackupSources1. https://calendar.mit.edu/event/the_intersection_of_leadership_innovation#.XlWAaHt7m70 – David Nino MIT2. https://www.acmpglobal.org/page/the_standard ‐ Change Management definition3. https://hbr.org/2008/02/increase‐the‐odds‐of‐being‐rig‐1&cm_sp=Article‐_‐Links‐_‐Top%20of%20Page%20Recirculation – Paul Nutt
Managerial Decision Making4. http://www.aotcpodcast.com/e/daveturgeon/ ‐ Dave Turgeon, Pittsburgh Pirates, “Respect the Rep”5. https://www.chron.com/news/article/Chronicle‐cross‐county‐study‐reveals‐risky‐load‐1643020.php ‐ City of Houston Pollution6. https://books.google.com/books?id=G8voiaLwMOQC&pg=PA68#v=onepage&q&f=false ‐ Charles Kenney – Computerworld
Magazine 7. https://www.governing.com/gov‐detroits‐pension‐is‐actually‐well‐funded‐‐‐‐so‐whats‐all‐the‐fuss.html ‐Michal Artz commentary
on Detroit’s financial woes