leading and managing organizational change
TRANSCRIPT
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Leading and Managing Organizational Change
Pamela Porter, Opportunity Finance Network
March 3, 2014
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GoToWebinar
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CDFI Fund’s Capacity Building Initiative: Strengthening Small and Emerging CDFIs
• Goal: Increase capacity of CDFIs to strengthen financial sustainability and increase community impact.
• Focus: Business models that work to support sustainability and impact, understanding stages of organizational growth, and change management.
• Approach: Five trainings, five mentored cohorts, one-to-one technical assistance, virtual resource bank.
• Results: Each CDFI developed an Action Plan with implementation supported by mentored cohorts.
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Presenter
Pamela Porter
Executive Vice President, Strategic Consulting
Opportunity Finance Network
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Presenter
Tabitha Atkins
Vice President, Strategic Consulting
Opportunity Finance Network
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Leading and Managing Organizational Change
Pamela Porter, Opportunity Finance Network
March 3, 2014
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Agenda
• Define types of change
• The “human” side of change
• 8-step model to lead change
• Management vs. Leadership
• Change Management Resources
• Strengthening Small and Emerging Webinars and Virtual Resource Bank
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Poll Question
In your experience, what percentage of change initiatives fail to achieve their intended goal?
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Type of Change
9
Transitional Change Adaptive
Change
Transformational Change
Recalibrating a familiar practice
Introducing a new industry approach and
practice
Degree of complexity, cost, and uncertainty
Potential for confusion, distraction and fear
Low High
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Type of Change
• Transitional
– Incremental outcomes
– A product of Authority
– “Safe”
• Transformational
– Structural & Systemic outcomes
– A product of Leadership
– “Risky”
Source: Heifetz and Linsky
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Poll Question
Today, in your organization, what type of change initiatives are you involved in managing or
leading?
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Capacity to handle change
Too Little Right balance Too Much
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Poll Question
What “people” challenges do you see related to leading a change initiative at your organization?
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Kotter 8-step Model
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Poll Question
As you think about a specific example, where do you see the biggest challenges to managing and
leading change?
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Leading Organizational Change
Make sure as many as possible understand and accept the vision and the strategy
4) Communicate the change vision for buy-in
Create a clear sense of how the change advances mission and develop strategies for achieving that vision
3) Develop a change vision
Create cross-functional change advocates, with enough competence and respect to motivate change approach in others
2) Create a guiding coalition
Unfreeze the organization and help others understand how the change advances the mission
1) Communicate the reasons for change
Description Step
Adapted from Kotter, 1995 16
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Leading Organizational Change
Acknowledge results; highlight connections between new behaviors and success;
8) Anchor new approaches in the culture
Use credibility from short-terms wins to support and reward ongoing learning; cascade wins throughout the organization
7) Never let up
Plan for and create short-term “wins” lists: note improvements; communicate and celebrate these
6) Create and acknowledge short-term wins
Remove barriers to change; change systems or structures that seriously undermine the vision; moderate the “heat” appropriately; hold steady in conflict situations ; encourage risk-taking and non-traditional ideas
5) Empower broad-based action
Description Step
17
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Kotter 8-step Model
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Kotter on Management vs Leadership
Most common mistakes:
• Use “management” and “leadership” interchangeably. This fails to distinguish the crucial differences between the two.
• Use “leadership” to refer to the people at the top of the hierarchies, and others in the layers below as “management.”
• Think of “leadership” in terms of personality, such as charisma.
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Resources
• Peter Drucker: What business can learn from non profits – http://hbr.org/1989/07/what-business-can-learn-from-nonprofits/ar/1
• John Kotter: Leading Change – http://www.kotterinternational.com/our-principles/changesteps
• Heifetz and Linsky: Leadership on the Line: Staying Alive through the Dangers of Leading
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QUESTIONS?
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Strengthening Small and Emerging CDFIs
Webinar Series
Upcoming Webinars
• How Should the Board of Directors Evolve as your CDFI Grows?
− Adina Abramowitz, Consulting for Change
− Recommended Attendees: Board Members and CEOs/Executive Directors of CDFIs
Upcoming webinar registration and past webinar recordings can be found at:
The CDFI Fund’s Virtual Resource Bank.
Mar12
22
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CDFI Fund’s Virtual Resource Bank
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OFN Contact Information
• Pam Porter
Executive Vice President
Strategic Consulting
Opportunity Finance Network
215-320-4303
• Ginger McNally
Senior Vice President
Strategic Consulting
Opportunity Finance Network
215-320-4314
• Alexandra Jaskula
Associate
Strategic Consulting
Opportunity Finance Network
215-320-4325
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Leading and Managing Organizational Change
Pamela Porter, Opportunity Finance Network
March 3, 2014