Organizational change
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Organizational Change. Introductions. Marvin Washington Undergraduate Industrial Engineering Procter and Gamble manufacturing PhD Organization Behavior / Sociology Professor Management Texas Tech University Consultant Botswana Gov’t, USPS, Bonneville Power

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Organizational change

Organizational Change


Introductions

Introductions

  • Marvin Washington

    • Undergraduate Industrial Engineering

    • Procter and Gamble manufacturing

    • PhD Organization Behavior / Sociology

    • Professor Management Texas Tech University

    • Consultant

      • Botswana Gov’t, USPS, Bonneville Power

    • Author / presenter articles on change

    • Board of Directors of The Performance Center

    • Taught at Anahuac

      • Mexico City and Xalapa

    • Presented to senior level Novartis managers


Great books to read

Great books to read

  • Built to last

    • Jim Collins and Jerry Porras

  • Good to great

    • Jim Collins

  • Managing with power

    • Jeffrey Pfeffer

  • Man Search for Meaning

    • Victor Frankl


Transformation cornerstones

Transformation Cornerstones

InterpersonalMastery

Self Mastery

Value Exchange

ChangeMethodology


Agenda

Agenda

  • Understand the different types of change

  • Understand why change is hard to implement and accomplish

  • Understand the ingredients of change

  • Understand the relationship between leadership and change

  • Understand the relationship between teams and change


Agenda1

Day 1

What is organizational change

Why is change difficult to accomplish

What are the ingredients of successful organizational change

Day 2

Role of leadership in change

Role of teams in change

Agenda


Quotes for the class

Quotes for the class

  • Not here to arouse the darkness but to light a candle. Winston Churchill

  • No problem can be solved from the same consciousness that created it. Albert Einstein

  • From error to error, one discovers the entire truth. Sigmund Freud

  • Our world to view is determined by our world view. Joseph C. Pearce Crack in the Cosmic Egg


Quotes for the class1

Quotes for the class

  • God, who gave us minds for thinking and bodies for working, would defeat his own purpose if he permitted us to obtain through prayer what may come through work and intelligence. Prayer is a marvelous and necessary supplement of our feeble efforts, but it is a dangerous substitute. Martin Luther King, Jr.

  • All life is interrelated, and all men are interdependent. And yet we continue to travel a road paved with the slippery cement of inordinate selfishness Martin Luther King, Jr.


Organizations are transforming worldwide

Organizations are Transforming Worldwide

  • Information Revolution

    • Information readily available

  • Technology

    • Perform tasks with equipment, materials, knowledge, and experience

    • Increasing rate of change and diffusion

  • Globalization

    • Marketplace

    • Competitors


Organizational change

The case for change

•Information revolution

•Technological advances

and breakthroughs

•Globalization

Critical Success Factors

•Ability to embrace change

•Creativity and innovation capabilities

•Being a world-class organization

Implications

•Continual turbulence and change

•Reduced need for physical assets

•Vanishing distance

•Compressed time


Types of change

RESULTS

RESULTS

RESULTS

TIME

TIME

TIME

Types of change

Continuous Improvement

Breakthrough Improvement

Standardization


Organizational work

Organizational Work

Innovation

Breakthrough

Top Management

Kaizen

Continuous Improvement

Middle Management

Maintenance

Standardization

Supervisors

Workers

KAIZEN: The Key to Japan’s Competitive Advantage

Masaaki Imai, 1986, Random House, Inc.


Lessons about change built to last

Lessons about change: Built to last

  • Tried to understand why superior companies are better than peer companies which are better than most companies

    • $1 invested in stock market in 1926 yields

      • $415 in all other companies

      • $955 in peer companies

      • $6356 in superior (visionary) companies


Who are these companies

Visionary

3M

Boeing

GE

IBM

Motorola

Nordstrom

P&G

Sony

Wal-mart

Peer companies

Norton

McDonnell Douglass

Westinghouse

Burroughs

Zenith

Melville

Colgate

Kenwood

Ames

Who are these companies


So what did they find

So what did they find?

  • What they didn’t find

    • Need to start a company with a great idea

    • Need charismatic, visionary leaders

    • “correct values”

    • Always changing

    • Great places to work for

    • You can’t have you your cake and eat it too


So what did they find1

So what did they find?

  • Great companies had BHAG

    • Big Hairy Audacious Goals

  • What ever your values are “stick with it”

  • Deal with the AND, not the OR

  • Seek Alignment (internally)


Problems with change

Problems with Change

  • Error #1: No sense of urgency

    • People need a burning platform

    • Too many managers, no leaders

  • Error #2: Not a powerful enough coalition

    • Change is a political process

      • Not technical, HR, Strategic

    • Some one needs to organize

    • There are choices of change programs


Problems with change1

Problems with Change

  • Error #3: No vision

    • Without it, change can become strategic planning.

    • Vision needs to make followers understand and interested in organization.

  • Error #4: Under-communicate the vision

    • Define everything in terms of the vision

  • Error #5: Not removing obstacles to the new vision


Problems with change2

Problems with Change

  • Error #6: No planning for and creating short-term wins

    • Success in 30 days, 12 months to build momentum for a 2-3 year change effort

  • Error #7: Declaring victory to soon

    • Both sides on change want it to be over

    • Use small victories to go after even bigger problems


Problems with change3

Problems with Change

  • Error #8: Not anchoring change in the corporate culture:

    • Show how new way is better

      • Talk up successes

    • Work with new management to institutionalize new process


Another problem with change

Another problem with change

  • Key (often not recognized problem)

    • I do not understand the change

    • Often I understand the current situation (why things are bad)

    • And I understand where we want to go (the future)

    • But I don’t understand the change

      • What will I do different?


Jack welch s ideas on change

Jack Welch’s ideas on change

  • Clear mission statement

    • #1 or #2 in every business

  • Commitment from all

    • Work-out process

    • Issue of Will and Skill

  • Commitment to all

    • Change pay structure to fit incentives


Plan for change

Plan for change

  • Five things required for successful change

    • Vision

    • Leadership

    • Political Will to make it happen

    • Strategic Plan

    • Burning Platform


Plan for change1

Plan for change

  • Five things required for successful change

    • Burning Platform

    • Vision

    • Leadership

    • Political Will to make it happen

    • Strategic Plan


Burning platform

Burning Platform

  • Why leave your current situation?

  • The “hotter the fire” the quicker you will move


Plan for change2

Plan for change

  • Five things required for successful change

    • Burning Platform

    • Vision

    • Leadership

    • Political Will to make it happen

    • Strategic Plan


Notes on developing a vision

Notes on developing a Vision

  • What is a vision?

    • A statement of where you want to go

    • If a burning platform is what compels an organization to move, the vision must be what the organization wants to move toward

    • Collins and Porras

      • Audacious Goal

      • Vivid Description


Creating a vision

Creating a vision

  • Visions are leader initiated, yet co-created

    • Key people need to be involved to help with issues of communication and implementation

    • Start with what is possible, then go to what is desirable, and then deal with what is actionable

    • Need to spend as much time on communicating the vision as you spend on creating the vision

    • Vision need to be created in conversations, not through “wallet-cards” and memos


Organizational change

Elements of a great vision

Use the mission statementas a starting point

Develop a strategic visionthat spells out a course to pursue

Communicate the vision in a clearandexciting manner


Organizational change

Microsoft Corporation

Empower people through great software anytime, anyplace, and on any device.


Organizational change

American Red Cross

The mission of the American Red Cross is to improve the quality of human life; to enhance self-reliance and concern for others; and to help people avoid, prepare for, and cope with emergencies.


Delta airlines vision

Delta Airlines Vision

  • . . . . . . we want Delta to be the WORLDWIDE AIRLINE OF CHOICE.

    • WORLDWIDE, …offers access to the world at the highest standards of customer service…

    • AIRLINE,we intend to stay in the business we know best,air transportation and related services…

    • OF CHOICE, passengers …provide the best service and value. personnel…recognizes and appreciates contributions. shareholders…earn a consistent, superior financial return.


Communicating the vision

Communicating the vision

  • An exciting, inspirational vision

    • Challenges and motivates workforce

    • Arouses strong sense of organizational purpose

    • Induces employee buy-in

    • Galvanizes people to live the business


Value of a well conceived vision and mission

Value of a Well-Conceived Vision and Mission

  • Crystallizes long-term direction

  • Reduces riskof rudderless decision-making

  • Conveysorganizational purpose and identity

  • Keeps direction-related actions of lower-level managers on common path

  • Helps organization prepare for the future


Plan for change3

Plan for change

  • Five things required for successful change

    • Vision

    • Leadership

    • Political Will to make it happen

    • Strategic Plan

    • Burning Platform


Building a power base

Building a power base

  • Power network

    • Who is on your side, who is neutral, who is against you

  • Five sources of power

    • Position power (I am the boss)

    • Personal power (charisma)

    • Expert power (I know something you don’t)

    • Opportunity power (I am what you need now)

    • Information power (networking)


How do you get power

How do you get power

  • Influence strategies

    • Involve the key people in the decision

    • Control the information

    • Engineer the situation

    • Rely (infrequently) on your position

    • Usual rational persuasion

    • Offer desired rewards

    • Generate hope of a better future

    • Increase your dependency on others


Influence strategies

Influence strategies

  • With Superiors

    • How are your ideas helping them?

    • Listen

    • Be loyal

  • Peers

    • Look for common goals (alignment)

    • Form informal problem solving groups

    • Deal with problem peers

  • Subordinates

    • Get trust

    • Give credit, praise, feedback & training

    • Clarify your responsibility and theirs


How is power used to get things done

How is power used to get things done?

  • How do you use power

    • Pick a goal

    • Determine (figure out)

      • Interdependencies

      • What people think of the idea

      • What are the power bases

        • Your power base and your foes

    • Choose how to act


Plan for change4

Plan for change

  • Five things required for successful change

    • Burning Platform

    • Vision

    • Leadership

    • Political Will to make it happen

    • Strategic Plan


Definition strategy

Definition: Strategy

  • Strategy: Creation of a unique and valuable position involving a different set of activities

    • Key Aspects: risks, skills, competition, and learning


What is strategy

What is Strategy?

  • An organization’s strategy consists of the set of competitive moves and business approaches that management is employing to run the company

  • Strategy is management’s“game plan”to

    • Attract and please customers

    • Stake out a market position

    • Conduct operations

    • Compete successfully

    • Achieve organizational objectives


Organizational change

Strategy implementation and execution is an action-oriented, “make-it-happen” process involving people management, developing competencies and capabilities, budgeting, policy-making, motivating, culture-building, and leadership


Plan for change5

Plan for change

  • Five things required for successful change

    • Burning Platform

    • Vision

    • Leadership

    • Political Will to make it happen

    • Strategic Plan


Leaders vs managers

Leaders vs. Managers (?)

  • Both leadership & management is needed in today’s organizations

  • Yet, the skills are radically different

  • Management is about coping with complexity (reducing complexity to simplicity)

  • Leadership is about coping with change


Leadership management

Leadership

Setting Direction

Aligning People

Motivating People

Artists

Flexibility

Creation

Management

Planning & Budgeting

Organization & Staffing

Controlling & Problem Solving

Automobile Mechanics

Problem solving

Leadership & Management


Leadership

Leadership

  • Some leadership skills are innate. . . Many are learned

  • When it comes to leadership skill development

    • Diversity and adversity beat repetition every time

    • Reflection is the key!


Leadership traits

Leadership traits

  • Vision

    • Clarity of Goals / focused

  • Have a set of skills

    • communication, decision making, technical

  • Intelligent (know what don’t know)

  • Great person to be around

    • Kind, honest, integrity, value others

  • Teachers

  • Focuses inward and outward

  • Passion

  • Will and Humility – level 5 leadership


Notes on passion

Notes on Passion

  • Leading is a heart conversation (empathy, emotion), managing is a head conversation.

  • Leading is a political action

  • Leaders work on their own “self-mastery”

    • Leader’s are first leading themselves

    • Need to be excited about what you are doing

    • Others see the excitement and want to follow


Leading a life of meaning

Values

Spiritual

Intellectual

Vocational

Physical

Leading a Life of Meaning

Purpose

Vision

Daily Tasks

Operating Principles


Purpose

Purpose

Purpose identification is required to develop self-mastery. Clarification of purpose may be life long process. Variations normally decreases over time.


Victor frankl notes on purpose

Victor Frankl: Notes on purpose

  • Ultimately, man should not ask what the meaning of his life is, but rather he must recognize that it is he who is asked…each man is questioned by life; and he can answer to life by answering for his own life; to life he can only respond by being responsible

    • Victor Frankl “Man Search for Meaning”


Vision

Vision

Vision’s connection with purpose is critical to producing an “on-purpose” life, leading a life of meaning. Visions are launched and accomplished in a life-long journey.


Daily tasks

Daily Tasks

Daily Tasks and short-term efforts begin to align with vision and purpose given increased consciousness and “at cause” behavior.


Values

Values

Values are the essential and enduring tenets by which one conducts life. They are sourced from a deep and evolving understanding of purpose, often in an iterative process.


Operating principles

Operating Principles

Operating Principles are an operational definition of the values. They give a framework for daily tasks and decisions to be consistent with values.


Leading a life of meaning1

Values

Spiritual

Intellectual

Vocational

Physical

Leading a Life of Meaning

Purpose

Vision

Daily Tasks

Operating Principles


How do you lead change

How do you lead change

  • Get on the balcony

  • Identify the adaptive challenge

  • Regulate stress

  • Maintain disciplined attention

  • Empower (get out of the way of the power)

  • Protect voices of leadership from below


Create your plan for change

Create your plan for change

  • What is your burning platform

    • Why must we change?

  • What is my vision for this change effort

    • What do I want? When do I want it?

  • What leadership skills do I need to develop?

    • What’s my left-hand dribble

  • Who are my allies in this change effort?

    • Who are the power brokers?

  • What’s my game plan?


Transformational leadership

Transformational Leadership

  • Fill-out leadership questionnaire for homework

  • Read Transformational Leadership article

  • Create mission and vision statements

    • Why are you here?

    • Where do you want to go in 5 years?


Transformational leadership1

Transformational Leadership

  • Leadership requires both management skills and leadership skills

  • Behavioral Complexity

  • And thinking not Or thinking


Organizational change

Transformational Leadership

Personal Growth, Resiliency

Double Loop Learning, Mentoring, Risk

Self Mastery

Conscious-

ness

Benchmarking

Performance Measurement

Value Exchange

Chief Architect and Engineer

Relationship Management

Trust

Managing Agreements

Effective Communication

Enterprise Mastery

People Mastery


Transformational leadership2

Change Focus

(Out of the box)

(What can be)

(Results producer)

(Power without)

Internal Focus

External Focus

(Power within)

(Results through many)

(What is)

(In the box)

Standardization Focus

Transformational Leadership

Self Mastery

Consciousness

Enterprise Mastery

People Mastery


Manager

Manager

ThePerformerconsistently achieves a high level of results on a personal basis.


Manager1

Manager

TheEnergetic manager has a high capacity in finding and employing the energy from within, knocking down barriers.


Manager2

Manager

TheAnalyticalmanager sees patterns and cause/effect relationships. He/She understands current results and reasons for existing performance .


Manager3

Manager

TheAdministrativemanager manages the processes/systems and applies productive control.


Transformational leadership3

Change Focus

(Out of the box)

(What can be)

(Results producer)

(Power without)

Performer

Internal Focus

External Focus

Energetic

(Power within)

(Results through many)

Administrative

Analytical

(What is)

(In the box)

Standardization Focus

Transformational Leadership

Self Mastery

Consciousness

Enterprise Mastery

People Mastery

MANAGER


Leader

Leader

TheCreativeleader is inventive and innovative; finds solutions to problems.


Leader1

Leader

TheVisionaryleader foresees and articulates the future.


Leader2

Leader

TheEmpowering leader produces alignment and attunement toward a shared vision .


Leader3

Leader

TheCommunity Builder promotes trust and alignment, capitalizes on diversity to achieve greater goals.


Transformational leadership4

Change Focus

(Out of the box)

(What can be)

Creative

Visionary

(Results producer)

(Power without)

Empowering

Internal Focus

External Focus

Community Builder

(Power within)

(Results through many)

(What is)

(In the box)

Standardization Focus

Transformational Leadership

LEADER

Self Mastery

Consciousness

Enterprise Mastery

People Mastery


Transformational leadership5

Change Focus

(Out of the box)

(What can be)

Creative

Visionary

(Power without)

Performer

Empowering

Internal Focus

External Focus

Energetic

Community Builder

(Power within)

Administrative

Analytical

(What is)

(In the box)

Standardization Focus

Transformational Leadership

Self Mastery

Consciousness

Enterprise Mastery

People Mastery


Wild dog leadership

Wild-dog leadership


Change and teams

Change and Teams

  • Wild dogs of Africa

    • Most efficient hunting group

    • Higher kill rate than

      • Lions

      • Cheetahs

    • Change lessons

      • Shared vision

      • Shared leadership

      • Tenacity

      • Individual Skills


Change and teams1

Change and Teams

  • Wild dogs of Africa

    • Other lessons

      • Zebra

      • Giraffe

      • Leadwood tree


Managerial skills

Managerial Skills

  • Performer consistently achieves a high level of results on a personal basis—Cheetah, Wild Dog

  • Energetic manager has a high capacity in finding and employing the energy from within, knocking down barriers—Cheetah, Wild Dog

  • Analytical manager sees patterns and cause/effect relationships. He/She understands current results and reasons for existing performance—Zebra, Wild Dog

  • Administrative manager manages the processes/systems and applies productive control—Zebra, Wild Dog


Leader skills

Leader skills

  • Visionary leader foresees and articulates the future—Cheetah, Wild Dog

  • Creative leader is inventive and innovative; finds solutions to problems—Cheetah, Wild Dog

  • Empowering leader produces alignment and attunement toward a shared vision—Wild Dog

  • Community Builder promotes trust and alignment, capitalizes on diversity to achieve greater goals—Wild Dog


Alignment

Alignment


Alignment1

Alignment

  • Leader’s role is to help people discover themselves.

  • Manipulation is at best useful in the short term.

  • Focusing on individual’s “vector” energy is more power than most organizations can imagine.


Take aways

Take Aways

  • Understand what type of change you want

    • Standardization-management

    • Incremental improvement

    • Step change

      • BHAG, 4-hour house, leadership

  • Change doesn’t work for many reasons

    • Often because we do not understand it


Take aways1

Take Aways

  • Parts of change

    • Vision

      • Mission based, inspiration filled, easy to communicate

    • Leadership

      • Transformation leader

      • And thinking, “left-hand dribble”

      • What is your passion

    • Political plan

      • Who can help or hinder your efforts

    • Strategic plan

      • How do you plan to close the gap

      • How aligned are we to the vision and strategy

    • Burning platform

      • Why do anything


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