the hidden factory in change management
DESCRIPTION
Change management gets a call-to-arms in a variety of situations: new technology, process improvement, reorg. Some change is organic and some has a top-down directive but no change initiative can ever survive the currents that lay just beneath the surface. These are the unofficial channels of communication that cross org-structure boundaries and the informal network where decisions are often based on emotions. Tiran will discuss simple techniques to manage this “hidden factory” and the unofficial socio-political web where more gets done than in the open and how to introduce objectivity into the conversation.TRANSCRIPT
THE HIDDEN FACTORYin change management
Brainstorm New-York, November 4th 2009
Tiran Dagan, Director, Strategic Initiatives & AnalysisGE/NBC Universal
BPMInstitute.org
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Strategic Initiatives & Analysis
Change Management
NOT SO EASY
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What is change?
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What is change?
EXTERNAL ENVIRONMENT/CIRCUMSTANCES
INTERNAL
TIME-BOUND
ORGANIC/PLANNED
IMPOSED/CHOSEN
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BPM & Change Management
BUSINESS RULES
PROCESS AUTOMATION
MODELING & SIMULATION
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Change is difficult
SUCCESS RATE <40%*
EMPLOYEE ATTITUDES & MANAGEMENT BEHAVIOR
SUCCESSFUL CHANGE: TACTICS• Leadership• Transformation structure• Sustainable momentum• Wide-spread involvement & support
*“Organizing for successful change management: A McKinsey Global Survey,” July 2006
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From Denial to Commitment
COMMITMENT
PAST
Productivity
FUTURE
FOCUS ON SELF
FOCUS ON ENVIRONMENTDENIAL
RESISTANCE EXPLORATION
Source: “The Transition Grid”, Flora/Elkin Assoc & HeartWorld, Inc.
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Resistance to Change: The Weavers
“They said Ned Ludd was an idiot boy
That all he could do was wreck and destroy, and
He turned to his workmates and said: Death to Machines
They tread on our future and they stamp on our dreams.”
“Ned Ludd”, from the album FreqRobert Newton Calvert, 1985
Tools & Methods
TIPS & STRUCTURE
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Change Management as a Process4. MOBILIZE COMITTMENT
• STAKEHOLDERS AFFECTED & THEIR LIKELY RESPONSE
• ANTICIPATED RESISTENCE • SUPPORT NEEDED FOR FUTURE STATE TO
MATERIALIZE• STRATEGIES TO MOBILIZE SUPPORTERS & WIN
RESISTERS5. IDENTIFY SYSTEMS & LEVERS FOR ALIGNMENT
• SYSTEMS, STRUCTURES & PROCESSES BLOCKING SUCCESS
• LEVERS WE NEED TO LEVERAGE• WHERE (WHICH LEVERS) DO WE HAVE
INFLUENCE OVER• INFLUENCE CHANGE TO ALIGN WITH CHANGE• COMMUNICATIONS
6. TRACK PROGRESS• HOW WILL YOU KNOW YOU SUCCEEDED
(METRICS) • WHO WILL BE INFORMED OF SUCCESS?• COMPARE SCORECARD TO BASELINE• WILL MEASUREMENT ACTIVITY AFFECT
OUTCOME?• OTHER BENEFITS AS “BY-PRODUCTS”?
1. LEAD THE CHANGE• SPONSORSHIP• CHANGE AGENT• WHO WILL IMPLEMENT?• IMPACT ON PARTICIPANTS• OTHER LEADERSHIP SUPPORT• COMMITMENT: SAY & DO
2. FRAME THE SHARED NEED• IDENTIFY KEY STAKEHOLDERS• BURNING PLATFORM• NEED FOR CHANGE > RESISTANCE?• SUPPORTED IN DATA
3. SHAPE THE VISION• VISION FOR FUTURE STATE/DESIRED
OUTCOME• DETERMINE BENEFITS TO ORGANIZATION,
STAKEHOLDERS, INDIVIDUALS• ID STAKEHOLDER CONCERNS/FEARS• DESIRED BEHAVIOR CHANGES NEEDED
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ShortTerm
LongTerm
Threat (if we don’t make this change)
Opportunity(if we do make this change)
Threat/Opportunity Matrix:
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ShortTerm
LongTerm
Threat (if we don’t make this change)
Opportunity(if we do make this change)
Threat/Opportunity Matrix: Improve Call Center Ops
• Lose competitive edge• Long term damage to reputation
• Lose competitive edge• Long term damage to reputation
• Negative impact on bottom line• Rapid customer abandonment
• Negative impact on bottom line• Rapid customer abandonment
• Visibility to customer purchasing habit• Early detection of product defects
• Visibility to customer purchasing habit• Early detection of product defects
• Cross sell opportunities• Energize workforce
• Cross sell opportunities• Energize workforce
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Stakeholder Analysis:
Name
Continuum of Support
Explanation
Strongly Against
Moderately A
gainst
Neutral
Moderate Support
Strong Support
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Stakeholder Analysis: SAP Rollout
Name
Continuum of Support
Explanation
“Excitable neutralist”
“Good to go friend”
“Later bloomer”
“Dangerous Antagonist”
“Important Supporter”
Strongly Against
Moderately A
gainst
Neutral
Moderate Support
Strong Support
Warning: Keep this tool internal to your change management team
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Communicating Change: Strategy
TIMELY
REPEAT
EXPECTATIONS
LISTEN, REACT & ADJUST
FEEDBACK
CHANNELS
ALIGNMENT
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Communicating Change: Key Message Elements
• EXPLAIN THE REASON AND BENEFITS OF THE CHANGE
• DEMONSTRATE LEADERSHIP SUPPORT (CHAMPIONSHIP)
• ASK FOR RECIPIENT’S HELP IN MAKING THE CHANGE MORE EFFECTIVE
• EXPLAIN HOW MESSAGE WILL AFFECT THE RECIPIENTAND THEIR DEPARTMENT IN THE SHORT/LONG TERM
• EXPLAIN HOW THE CHANGE WILL BENEFIT THE RECIPIENT
• BE REALISTIC BOTH ON THE UPSIDE AND DOWNSIDE OF CHANGE
• DEMONSTRATE EMPATHY (EMOTIONS ASSOCIATED WITH THE CHANGE)
• PROVIDE UPDATE ON PROGRESSSource: Corporate Leadership Council research.
Change with Lean (Toyota Production System)
GIVING OWNERSHIP
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Walking the Process
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Establish A Shared Vision
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Process MappingProcess Mapping
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Metrics, VA & Pain Points
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Participants Report To Management
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Jan Feb
Jan 1
Mar Apr
Apr 15
USA, Sci-Fi, Oxygen (TBC)
AE Training for Deal Header requirements
Sales Asst. Training
Communication of Client Upgrades
Stewardship cycle time
Streamlined process for oversell
Convert time standard in Gabriel
Convert “Hold” deals to “Order”
~p
M
~S
M
Ms
M
~
Status: Team still working on this project
Status: Effort to implement outweighed benefits
Status: Effort to implement outweighed benefits
Status: System Limitation
Act
ion
Plan
s +
Mon
itor
ing
Wor
kout
Web
site
–D
aily
Upd
ates
Deliverables
Roun
d-Ro
bin
Prio
riti
zati
on o
f Sol
utio
ns
Informal Communication Networks
THE ORG WITHIN
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Informal Network
Person
PersonPerson
Bond/Connection
Mutual Trust
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ONA Tools
TOOLS• Org.Net InFlow (Commercial)• NetDraw (Free)• UCINET (Commercial)• Pajek (free)• NetMiner• Sentinel
…and:• Facebook• LinkedIn
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Case Study: Western Electric
WESTERN ELECTRIC:• HAWTHORE PLANT,
BANK WIRING• WORKER INTERACTIONS
Reference: Roethlisberger F. and Dickson W. (1939). Management and the worker. Cambridge: Cambridge University Press.
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Western Electric: Hawthorne Plant Bank Wiring
Wiring Assembler
Solderer
Inspector
I1
I3
W1
W2
W3
W4
W5
W6
W7W8
W9
S1
S2
S4
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Western Electric: Hawthorne Plant Bank Wiring
FriendshipDislike
Wiring Assembler
Solderer
Inspector
I1
I3
W1
W2
W3
W4
W5
W6
W7W8
W9
S1
S2
S4
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Western Electric: Hawthorne Plant Bank Wiring
FriendshipDislike
Wiring Assembler
Solderer
Inspector
Work Product
I1
I3
W1
W2
W3
W4
W5
W6
W7W8
W9
S1
S2
S4
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I.N. CHARACTERISTICS
CLOSED
INDIVIDUALS
TACIT KNOWLEDGE
INFLUENCERS
NO CENTRALIZED CONTROL
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Informal Network Structures
Joseph
Dan
Susan
David
EddieRuth
JimMary
Anne
Erin
Central Individual
“Broker”/”Hub”
Stan
Isolated Individual
Workgroup
Informal Networks
IDENTIFYING & TRACKING
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Audit Methods
1. SURVEYS
Question Purpose
Who do you seek advice from before making an important decision?
Experts
With whom are you most likely to discuss a new idea?
Innovation Groups
Indicate individuals whose expertise you are aware of but see no opportunity to collaborate
Wasted opportunities
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I.N. Audit Methods
1. SURVEYS
2. DATA MINING EMAIL
“contribution index”*:
[messages sent] – [messages received][messages sent] + [messages received]
Email flow in a large project team, © Valdis Krebs, www.orgnet.com, reproduced with permission
1-” Visualizing Time in Social Networks with TeCFlow”,Peter A Gloor, Center for Coordination Science, MIT, Cambridge MA2- Contribution Index (Gloor et al, 2003, Gloor 2004)
>1
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I.N. Audit Methods
1. SURVEYS
2. DATA MINING EMAIL502 Messages
615 Actors
800 Days
Innovation Tagging(new product name)
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I.N. Audit Methods
1. SURVEYS
2. DATA MINING EMAIL502 Messages
615 Actors
800 Days
Innovation Tagging(new product name)
Visualizing Time in Social Networks with TeCFlow”,Peter A Gloor, Center for Coordination Science, MIT, Cambridge MA
http://www.ickn.org/JoSS_subm/TeCFlow4JoSS.htm
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I.N. Audit Methods
1. SURVEYS
2. DATA MINING EMAIL
3. OBSERVATION (HAWTHORNE EFFECT?)
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Leveraging IN: Quantify Interaction Benefits
• How many of the ideas you discuss with X become products?
• How much time did working with X save you?• How many sales deals over $x did you work on with X?
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Leveraging IN: Formalize the Informal Network5
SVP
VP Sales VP Marketing VP Operations
Emp7
Emp8Emp4
Emp3
Emp10
Emp9
Emp5
Emp6
Emp2
Emp1
SVP
VP Sales VP Marketing VP Operations
Emp7
Emp8Emp4
Emp3
Emp10
Emp9
Emp5
Emp6
Emp2
Emp1
XX Leader
Local managers
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Leveraging IN: Knowledge Management
• CAPTURE INNOVATION FROM I.N.• SPONTANEOUS & FOCUSED SESSIONS• OUTCOMES (SELECTED/REJECTED)
• NO REPEAT• MONETIZE
• TRACK PROGRESS (IDEATION -> DEVELOPMENT)
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"As our business grows, it becomes increasingly necessary todelegate responsibility and to encourage men and women to exercise theirinitiative. This requires considerable tolerance. Those men and women, to whomwe delegate authority and responsibility, if they are good people, are going towant to do their jobs in their own way. Mistakes will be made. But if a personis essentially right, the mistakes he or she makes are not as serious in thelong run as the mistakes management will make if it undertakes to tell those inauthority exactly how they must do their jobs. Management that is destructivelycritical when mistakes are made kills initiative. And it's essential that wehave many people with initiative if we are to continue to grow."
William McKnight, 3M, Chairman, 1948
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Appendix
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Models in Change Management: The Big Four
Six steps for changeMichael Beer (1990)
Ten commandments for change Kanter et al (1992)
8 stage process for successful organizational transformationKotter (1996)
7 steps for change Lueck (2003)
Mobilize commitment Analyze org & need for change Establish sense of urgency Mobilize commitment
Develop a shared vision Create a vision Create guiding coalition Develop shared vision
Foster consensus Separate from the past Develop a vision & strategy Identify leadership
Spread revitalization to all departments without pushing it from the top.
Create a sense of urgency Empower broad-based action Focus on results, not activities
Institutionalize revitalization through formal policies, systems and structures.
Support a strong leader role Communicate the change vision Start change at the periphery and let it spread
Monitor and adjust strategies Line up political sponsorship Generate short-term wins Institutionalize success
Craft an implementation plan Consolidate gains and produce more change
Monitor and adjust strategies
Develop enabling structures Anchor new approaches in the culture
Communicate, involve people & be honest
Reinforce & institutionalize change
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50 Ways to Say “Very Good”
1. Good work2. Well done3. You did a lot of work today4. It’s a pleasure to work with you5. Great job6. That’s right7. Nice going8. That’s coming along really well9. That’s great10. Let’s implement11. Excellent12. Good job13. Exactly right14. You’re on target15. Good thinking16. Wonderful17. That’s good18. You’ve worked hard on this19. That’s it20. Let’s share this with others21. Good for you22. You’re learning fast23. You did well today24. Keep up the good work25. I’m glad your approach is working
Derived from the work of Roger L. FiresteinCenter for Studies in Creativity (1992)
26. Good solution27. That’s better than ever28. You’ve figured it all out29. You’ve got it30. Very resourceful31. Good progress32. I like that33. I couldn’t do it better myself34. Now that is what I call a great job35. You did that very well36. Outstanding37. Keep up the great work38. That’s wonderful39. You mastered that in no time40. Congratulations41. You make our work fun42. I’m glad I assigned you to this43. You showed great leadership44. I knew I could count on you45. You made a difference46. You have my complete support47. Clever idea48. I’m glad you are on our team49. Thank you50. Very Good
Encourage your team, affected employees and stakeholders with compliments. I have found this table useful in the day to day:
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Additional Reading
• 1. Borgatti, S.P., Everett, M.G. and Freeman, L.C. 2002. Ucinet for Windows: Software for Social Network Analysis. Harvard, MA: Analytic Technologies.
• 2. Robert L Cross et al, McKinsey Quarterly, 2006 Number 3, “Mapping the value of employee collaboration”
• 3. Vladis Krebs, IGRIM Journal, Volume XII, No. 5, 2008, “Social Capital: the key to success for the 21st century organization”
• 4. Scott Keller & Carolyn Aiken, McKinsey, “The Inconvenient Truth About Change Management: Why it isn’t working and what to do about it”
• 5. Lowell L. Bryan et al., McKinsey Quarterly, 2007, No. 4, “Harnessing the power of employee networks”
• 6. Fearless Change – Patterns for introducing new ideas, Mary Lynn Manns, Ph.D. & Linda Rising, Ph.D., Pearson Education