Organization Change Implementation as Project Management

1. Organization Change Implementation as Project Management Rich Burton Professor of Strategy and Organization

2. Organization Change Implementation as Project Management Co-Authors on Upcoming Book Børge Obel , Aarhus University & consultant Dorthe Døjbak Håkonsson, Aarhus University & MindLab

3. 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

4. Organization Change Implementation as Project ManagementWhat do we mean by Project Management? What is to be done? Who is to do it? When is it to be done? Sounds simple!

5. Ray Levitt, Stanford University Developer of Vite SimVision Project Management ePM consulting

6. ] Step 1: Organizational Audit & Design • Gather information • Make diagnostic analysis & determinemisalignments • Decidewhichmisalignments to fix for a new design Step 2: Action Plan • Assess the process & content costs for a proposedsequence • Determine the sequence of fixing misalignments • Decidewhichdetailed design variables to change Step 3: Implementation Plan • Allocateresponsibilities & resources • Decide on milestones & deadlines • Follow up on progress • Makeprogress visible • Communicate the plan Obel Håkonsson BURTonThe three step model

7. 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”.

8. We Know a Lot About Strategy… Porter’s Five Forces…

9. ] Step 1: Organizational Audit & Design • Gather information • Make diagnostic analysis & determinemisalignments • Decidewhichmisalignments to fix for a new design Step 2: Action Plan Step 3: Implementation Plan The three step model

10. 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).

11. Table 1: HP WAY NOW

12. The Diamond ModelBurton ObeLDeSanctis, 2011

13. Organization Design Parameters and Dimension scores for alignment

15. Step 1: Organizational Audit and Design Step 2: Action Plan • Assess the process and content costs for a proposedsequence • Determine the sequence of fixing the misalignments • Makedecision on whichdetailed design variables to change Step 3: Implementation Plan Figure 1.1: Organizational Design Change Model[

16. 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

17. The Diamond ModelBurton ObeLDeSanctis, 2011

18. 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

19. Step 1: Organizational Audit and Design Step 2: Action Plan Step 3: Implementation Plan • Allocateresponsibilities and resources • Decide on milestones and deadlines • Follow up on progress • Makeprogress visible • Communicate the plan Figure 1.1: Organizational Design Change Model

20. 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

22. ] Step 1: Organizational Audit & Design • Gather information • Make diagnostic analysis and determine the misalignments • Decidewhichmisalignments to fix for a new design Step 2: Action Plan • Assess the process and content costs for a proposedsequence • Determine the sequence of fixing the misalignments • Makedecision on whichdetailed design variables to change Step 3: Implementation Plan • Allocateresponsibilities and resources • Decide on milestones and deadlines • Follow up on progress • Makeprogress visible • Communicate the plan The three step model

23. Organization Change Implementation as Project ManagementOverall 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

24. 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