organization change implementation as project management
DESCRIPTION
Organization Change Implementation as Project Management. Rich Burton. Professor of Strategy and Organization. Organization Change Implementation as Project Management Co-Authors on Upcoming Book. Børge Obel , Aarhus University & consultant - PowerPoint PPT PresentationTRANSCRIPT
2013 NCPMI Annual Conference
Rich Burton
Organization Change Implementation as Project Management
Professor of Strategy and Organization
2013 NCPMI Annual Conference
Organization Change Implementation as Project Management
Co-Authors on Upcoming Book
• Børge Obel , Aarhus University & consultant
• Dorthe Døjbak Håkonsson, Aarhus University & MindLab
2013 NCPMI Annual Conference
Organization Change Implementation as Project Management
Corporate support
• Novo Nordisk• Shell• Other consulting clients• Carroll et al 2006 NASA study• YOU! We need your comments & help
2013 NCPMI Annual Conference
Organization Change Implementation as Project Management
What do we mean by Project Management?
• What is to be done?• Who is to do it?• When is it to be done?• Sounds simple!
2013 NCPMI Annual Conference
Ray Levitt, Stanford UniversityDeveloper of Vite
SimVision Project ManagementePM consultingDaily
coordination
Inform employees
Decide change pattern
Change ICT systemChange
formalization
Misfit analysis
Change configuration
Structural design
completed
Management restructuring
Match people to new structure
New design
completed
Start
Finish
Reduce resistance to change
Diagnosis finished
2013 NCPMI Annual Conference
OBEL HÅKONSSON BURTON THE THREE STEP MODEL
]
Step 1: Organizational Audit & Design
Gather informationMake diagnostic analysis & determine misalignments Decide which misalignments to fix for a new design
Step 2:Action Plan
Assess the process & content costs for a proposed sequence Determine the sequence of fixing misalignments Decide which detailed design variables to change
Step 3:Implementation Plan
Allocate responsibilities & resources Decide on milestones & deadlines Follow up on progressMake progress visibleCommunicate the plan
2013 NCPMI Annual Conference
Microsoft: Quick Review Recently, Steve Balmer Microsoft’s retiring CEO wrote in an e-mail to all Microsoft employees:
“Today, we are announcing a far-reaching realignment of the company that will enable us to innovate with greater speed, efficiency and capability in a fast changing world.
Today’s announcement will enable us to execute even better on our strategy to deliver a family of devices and services that best empower people for the activities they value most and the enterprise extensions and services that are most valuable to business”.
We Know a Lot About Strategy…
Porter’s Five Forces…
2013 NCPMI Annual Conference
THE THREE STEP MODEL
]
Step 1: Organizational Audit & Design
Gather information
Make diagnostic analysis &
determine misalignments
Decide which misalignments
to fix for a new design
Step 2:Action Plan
Step 3:Implementation Plan
2013 NCPMI Annual Conference
HP On to March 21, 2012, HP announced: “an organizational realignment to improve performance and drive profitable growth across the entire
HP portfolio. The new structure is expected to speed decision making, increase productivity and improve efficiency, while providing a simplified customer experience. Ensuring we have the right organizational structure in place is a critical first step in driving improved execution, and increasing effectiveness and efficiency,” “The result will be a faster, more streamlined, performance-driven HP that is customer focused and poised to capitalize on rapidly shifting industry trends.”
On August 8, 2012 HP announced organizational changes for Enterprise Services with leadership changes
On August 21, 2013HP announced changes to its executive leadership team that will help the company accelerate its turnaround. In a separate organizational move, HP combined its marketing and communications organizations under the leadership of Chief Communications Officer Henry Gomez. All of the changes were to be effective immediately HP announced. (In principle this announcement covered all three steps in the implementation process).
2013 NCPMI Annual Conference
Formal organization Informal organization Organization Design
Role responsibility
Business Processes
Policy and Standards
Governance structure
Decision rights
Decision processes
Monetary rewards
Control models
Formal recognition
Information flows
Knowledge Management system
Relations
Collaboration
Teams
Organizational influence
Values and standards
Expectations
Unwritten rules
Table 1: HP WAY NOW
2013 NCPMI Annual Conference
THE DIAMOND MODEL
BURTON OBEL DESANCTIS, 2011
Task Design
Strategy
Goal
Incentives
Environment
Configuration
Complexity
Knowledge ExchangePeople
Leadership Style
Climate
Coordination/Control
Information Systems
Geographic Distribution
2013 NCPMI Annual Conference
Organization Design Parameters and Dimension scores for alignment
Design Parameter Scores
Low…………………………..High
Scores
Low………………………….High
Goal Efficiency EffectivenessStrategy Exploitation ExplorationEnvironment Complexity UnpredictabilityOrganizational Complexity Vertical differentiation Horizontal differentiationConfiguration Functional orientation Product/service/customer orientation
Geography Optimal sourcing Local responsivenessKnowledge exchange IT-infused VirtualizationTask design Divisibility RepetitivenessPeople Number ProfessionalizationLeadership style Uncertainty avoidance Preference for delegationOrganizational climate Tension Readiness to ChangeCoordination and control Formalization DecentralizationInformation system Amount Tacit natureIncentives Target of incentives Basis of evaluation
2013 NCPMI Annual Conference
Design Parameter Low…High Scores Low...High Scores Who has this information When do we gather information
Goal Efficiency Effectiveness CEO/C-suite, board of directors, official documents
Very early in the change process
Strategy Exploitation Exploration CEO/C-suite, board of directors, official documents
Environment Complexity Unpredictability CEO/C-suite, marketing group, HR group, Technology group
Organizational Complexity Vertical dimension Horizontal dimension
Organization charts for reporting relations, examine work flows in information processing,
Configuration Functional orientation
Product/service/customer orientation
Organization charts for reporting relations, examine work flows in information processing,
Geography Optimal sourcing Local orientationKnowledge exchange IT-infused VirtualizationTask design Divisibility Repetitiveness workflow analysis, work technology levelPeople Number Professionalization employee survey; employee focus group, Leadership style Uncertainty
avoidancePreference for delegation
CEO suite self assessment, examine who makes what decisions
Organizational climate Tension Readiness to Change
HR
Coordination and control Formalization Decentralization
Information system Amount Tacit natureIncentives Target : individual
or groupBasis: behavioral or results
2013 NCPMI Annual Conference
Figure 1.1: Organizational Design Change Model[
Step 1: Organizational Audit and Design
Step 2:Action Plan
Assess the process and content costs for a proposed sequence Determine the sequence of fixing the misalignmentsMake decision on which detailed design variables to change
Step 3:Implementation Plan
2013 NCPMI Annual Conference
Organization Change Implementation as Project Management
Finding the right path or order of what to do Aarhus University: IT timing created a problem HP : informal first The Diamond Model: the large number of possible orders
2013 NCPMI Annual Conference
THE DIAMOND MODEL
BURTON OBEL DESANCTIS, 2011
Task Design
Strategy
Goal
Incentives
Environment
Configuration
Complexity
Knowledge ExchangePeople
Leadership Style
Climate
Coordination/Control
Information Systems
Geographic Distribution
2013 NCPMI Annual Conference
Organization Change Implementation as Project ManagementGuidelines on the right path
Fixing one dimension is likely to make things worse; it takes more integration e.g., change structure only
Do IT first e.g., Aarhus University Prepare the culture: HP Incentives are frequently ignored: efficiency, effectiveness Anticipate difficulties: focus on what can go wrong for a possible order Things may get worse before they get better Change is costly
2013 NCPMI Annual Conference
Figure 1.1: Organizational Design Change Model
Step 1: Organizational Audit and
Design
Step 2:Action Plan
Step 3:Implementation Plan
Allocate responsibilities and resources Decide on milestones and deadlines Follow up on progressMake progress visibleCommunicate the plan
2013 NCPMI Annual Conference
Organization Change Implementation as Project Management: What Who When
• What are the tasks• Assignment of Who is responsible:
individuals, group, committee, taskforce • When: the order of change • Milestones and deadlines• Lay out the Project Management chart
2013 NCPMI Annual Conference
2013 NCPMI Annual Conference
THE THREE STEP MODEL
]
Step 1: Organizational Audit & Design
•Gather information•Make diagnostic analysis and determine the misalignments •Decide which misalignments to fix for a new design
Step 2:Action Plan
•Assess the process and content costs for a proposed sequence •Determine the sequence of fixing the misalignments •Make decision on which detailed design variables to change
Step 3:Implementation Plan
•Allocate responsibilities and resources •Decide on milestones and deadlines •Follow up on progress•Make progress visible•Communicate the plan
2013 NCPMI Annual Conference
Organization Change Implementation as Project Management
Overall Assessment for PM
Each step is a project of what, who and when
Your skills as PM can be crucial
Steps 2 & 3 are the more likely to be messed up
Your advantage is steps 2 & 3
2013 NCPMI Annual Conference
Organization Change Implementation as Project Management Implications for you
Change is coming, Get involved – change is not spectator sport Use your PM skills to be a change agent Map what you see as a project with: what, who and when Map what you think will happen as a project Know what is happening; volunteer, join taskforces Join Committees: ask questions, set agenda, report results, create what
happened Develop the change implementation plan for strategy and organizational
design Use your PM skills to be a change agent