ORGANIZATION MANAGEMENT

1. ORGANIZATION MANAGEMENT Managing Organizational Change

2. What is Change? Change is the process of moving from onestate (current state) to another (future state) Current State Future State Transition

3. Change – Facts & Dynamics Dynamics of Change Facts about Change People ... • feel awkward, self-conscious • think first about what they have to give up • feel alone • can only handle so much • are at different levels of readiness • revert to the old as soon as the pressure is off • Change is inevitable • Change is uncomfortable • Change is disruptive • The complexity of change has increased

4. Current State Future State Transition How Does Change Take Place? External Forces • Economic • Social • Organizational • Environmental • Legal Internal Transition • Psychological process to shift behavior • Let go of the old and embrace the new • Occurs at your own pace • Internal transitions must occur before change is fully realized

5. The Cycle of Transition Denial Commitment Reward and Motivate Inform, Communicate and Motivate teamwork satisfaction clear focus and plan cooperation balance clear vision of the future it will be over soon this won’t happen apathy numbness minimize the change ignore Resistance Exploration Facilitate, Problem Solve and Motivate Listen, Share and Understand seeing possibilities exploring alternatives feeling “ I can make it” high creativity and energy too many new ideas lack of focus indecisiveness have too much to do start “being” in the future sense of loss of control concerned with competency future contribution unclear lack of focus or direction can’t sleep at night anger/fights withdrawal from the team blaming ZIGZAG Adapted from Managing Change at Work by Cynthia Scott and Dennis Jaffe

6. Strategies for Managing Reactions to Change Denial: Gain Power Through Information Commitment: Keep the Momentum • Gather information from reliable sources. • Avoid getting caught up in rumors and speculation. Discuss rumors openly with your manager and verify facts. • Allow yourself time to internalize and reflect on how you feel about the change. Don’t be swept away by other’s emotion. • Avoid staying stuck in this stage. It can be draining and defeating. • Continue to find new solutions to the new situation. • Revisit and refine your goals. • Continue to rally people around the change. • Avoid complacency by assuming a new status quo. • Continue to expand your skills and knowledge. • Break out of your comfort zone by taking on new assignments and challenges. Exploration: Venture into Uncharted Territory Resistance: Stop Spinning Your Wheels • Accept that this is a period of emotional turmoil and that you may experience feelings of anger, hurt, disappointment, depression, betrayal and loss. • Seek emotional support from trusted friends, family, peers and managers. • Avoid self-defeating behavior such as acting like a victim, developing a bad attitude, and rallying others to fight the change. • Avoid staying stuck in this stage: A prolonged negative attitude can earn you a poor reputation and undo a lot of your good work. • Continue to suggest ideas and think unconventionally. • Focus on changes that can be made to work rather than listing all the things that can go wrong. • Focus on priorities and set short term goals for yourself. • Acquire new skills and knowledge. Adapted from Managing Change at Work by Cynthia Scott and Dennis Jaffe

7. Shifting Behaviors… For people to consistently behave in a new way, three conditions must be met the person must • be awareof what the new desired behavior is; • have the skills to perform the desired behavior successfully • be motivated to change his/her old behavior

8. Managing Organizational Change a disciplined approach to help organizations manage transition

9. Guiding Principles of MOC • People are our only sustainable competitive advantage - they are the intellectual capital of the organization. • Those who are closest to the work have the best information about what is needed to do it most effectively. • People tend to support more readily what they help to create. • People need to understand the context of the change. Understanding is found through dialogue. • To build a sustainable change, people must experience some personal results.

10. Sponsorship Alignment Maintain Sponsor Alignment and Commitment Stakeholder Analysis Identifying those impacted or influenced by the project Communication Minimizing thrash to the organization Change Impact & Organizational Readiness Assessment Identifying impacts of the change and monitoring organizational readiness Training Training strategy & delivery Knowledge Transfer Knowledge capture and transfer to benefit project and others MOC Areas of Focus Team Effectiveness Assessing team dynamics and assisting the project manager

11. Communication Minimizing thrash to the organization Creating Your Business Case The purpose of a business case for change: • To influence alignment around project objectives, deliverables, and metrics Business case should articulate: • The objectives of the project • The intended outcomes and benefits • Specific deliverables (including specific results) • The driving forces • The costs (fixed, short term, long term) and ROI • The timeline and expected delivery date • The constraints, risks, and challenges • The proposed project structure – who is leading, who is participating

12. Communication Minimizing thrash to the organization Creating Your Business Case Critical Success Factors: • Gain alignment and agreement between sponsors and key stakeholders. • Created to be used in future communications to end users • Consider this a decision checkpoint: should we proceed with this investment or not? Lack of alignment indicates the need for continued refinement of the business case or a halt to the project

13. Stakeholder Analysis Identifying those impacted or influenced by the project Stakeholder Analysis The purpose of the stakeholder analysis: • To specifically identify all members of the community that will be directly or indirectly impacted by the project • To assess the ‘reach’ or magnitude of the project Creating a stakeholder analysis: • List all groups and individuals you expect to be impacted • Useful to include the following attributes initially: • Group name / individual name • Manager name • Classification (sponsor, focus/target, change agent) • Directly or indirectly impacted • Impact Assessment (high, medium, low) • Key interests or expectations

14. Stakeholder Analysis Identifying those impacted or influenced by the project Stakeholder Analysis – 2 • Do early and update often • Use for assessments of needs, expectations, and success factors for key stakeholders by conducting interview sessions • Utilize this information throughout the project – communication planning, focus groups, training assessments, and identification of risk areas • Avoid the temptation to create multiple lists. Use a master list and design to future intentions.

15. Communication Minimizing thrash to the organization Communication The purpose of communication planning: • To provide discipline around reviewing your communication strategy • To identify objectives and messages for key communications ‘moments’ within a project • To provide a process to follow for creating messages. It can take 7-11 times for us to hear a message before we internalize…

16. Communication Minimizing thrash to the organization Communication – 2 The communication planning process: START Determine key messages and communication objectives From stakeholder analysis Get feedback and analyze effectiveness Determine audience Communication Process Deliver the communication Determine our desired outcomes What would be observable? Determine communication vehicles, owners, and timing

17. Sponsorship Alignment Sponsorship Alignment Maintain Sponsor Alignment and Commitment The purpose of sponsorship alignment: • To help build the partnership between the project and the sponsors • To set expectations about what the sponsors will be asked to do to support the MOC activities of the project. Sponsorship alignment includes: • Specify sponsor roles and expectations • Validate adequate sponsor representation • Determine engagement model (expectations for future meetings and checkpoints) • Periodic sponsorship assessments • Determining escalation model • Clearly stating accountability • Establishing effective relationships with sponsors – keeping in touch

18. What if you have a weak / passive sponsor? Sponsorship Alignment - 2 Sponsorship Alignment Maintain Sponsor Alignment and Commitment Sponsor Roles & Responsibilities: • Maintaining program priority • Championing the program through personal actions and conversations to peers and own organization • Resolves conflicts over policies or objectives • Providing political influence at high levels • Acts as an escalation board for unresolved issues or cross-functional decisions • Approving scope changes to site project plans • Removing roadblocks and supporting key project decisions • Creating the cultural shifts necessary to realize the business results and benefits. EXECUTIVE SPONSORS Note: There may be different levels of sponsorship needed throughout the life of the project

19. Training Training strategy & delivery Training The purpose of training strategy/planning: • To identify the educational needs required to update or alter the skills needed by the directly impacted audience • To effectively deliver the training required Training strategy/plan should articulate: • A holistic picture of the education required to shift to future state • Training goals and objectives • Audience analysis • Training needs analysis • Delivery approach • Cost proposals • Use the stakeholder analysis for needs assessment

20. Training Training strategy & delivery Training Strategy/Plan • Audience analysis is key to training success • Critical to understand what is the same and what is different to create that bridge between the familiar and the unknown • Critical to accommodate multiple learning styles in training design • Ensure your business community reviews and sponsors your strategy and delivery plan • Ensure appropriate logistics

21. Change Impact & Organizational Readiness Assessment Identifying impacts of the change and monitoring organizational readiness Change Impact and Organizational Readiness The purpose of these activities: • To assess the magnitude of the change to the organization • To help assess organizational readiness for go/no go decision checkpoints Change impact should articulate: • What will stay the same • What will be different • What community is impacted how

22. Change Impact & Organizational Readiness Assessment Identifying impacts of the change and monitoring organizational readiness Change Impact and Organizational Readiness Sample Change Impact: Who does this What systems are Other processes Current State today? used? impacted? Process Step Engineer Designer RA400 Supplier Notification Are there What systems will What are the key What is the impact Future State Who will do this? differences? be used? differences? of this change? Yes or No Transitioning to Need training for Process Step Procurement New System Yes Procurement procurement - need to assess readiness to transition

23. Knowledge Transfer Knowledge capture and transfer to benefit project and others Knowledge Transfer The purpose of knowledge transfer: • To identify your strategy for leveraging team knowledge • To articulate tactical steps in knowledge capture, sharing, and transfer • To identify trends in learning within the organization Knowledge transfer strategy should articulate: • Recommendations for sharing key learnings from past projects • Recommendations for conducting retrospectives at end of each project phase • Strategy and process for communicating and sharing key learnings • Process for storing and retrieving key learnings • Process for analyzing trends Critical Success Factors: • Understand the intent for capturing knowledge – how will it be used? • Develop a psychologically safe environment where learnings are valued

24. Team Effectiveness The purpose of team effectiveness: • To improve team effectiveness and project performance • To assess team processes in decision making, problem solving, and communication Team Effectiveness Assessing team dynamics and effectiveness Teams are most effective when: • Commitment to a common purpose • Clearly articulated goals • Mutual accountability for success • Roles are understood and aligned • Processes for decision making are clear • Team is able to self-learn about their own effectiveness • Team is able to observe and respond to group norms • Ability to share leadership • Ability to collaborate ARE WE GETTING THE RESULTS WE WANT? IF NOT, WHAT DO WE DO ABOUT IT?

25. Sponsorship Alignment Communication Change Impact & Organizational Readiness Assessment Training Stakeholder Analysis Knowledge Transfer Team Effectiveness Why is it important to focus on Organizational Change? • Today is a world of complex and frequent change • Cultural and behavioral factors are the essence of organizational change • Supports consistent leadership and communication practices

26. Deloitte & Touche Survey of CIO's regarding Business Transformation: Top 10 Barriers to Success Barriers to Success for Organizational Change Resistance To Change 82% Inadequate Sponsorship 72% Unrealistic Expectations 65% Poor Project Management Case For Change Not Compelling 46% Scope Expansion / Uncertainty Directly Relates to Project Team Lacked Skills Managing Organizational Change No Change Management Program Not Horizontal Process View IT Perspective Not Integrated 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % of Firms

27. How to Hit the Ground Running in Your New Management Job “35% of managers who change jobs fail in their new ones and either quit or are asked to leave within 18 months. . . Most managers who blow it have fine technical skills but stumble over the softer side.” FortuneMarch 7, 2005

28. Management Transition Meeting • Phase 1. Group talks, manager listens • Facilitator leads brainstorm: “Issues that affect the group” • Issues are prioritized (multi-vote) in three categories: technical, interpersonal and administrative • Manager stays in background, takes notes, observes group processes • Manager publishes list of issues and priorities • Group members come prepared to answer: • Name a recent group accomplishment • What area does the group need to develop? • What is a strength of the group? • What is the atmosphere of the group? • “If I could only change one thing it would be . . . “

29. Management Transition Meeting • Phase 2. Manager talks, group asks questions and listens • Questions to focus on manager and his/her style, not on issues from Phase 1 • Manager can respond “I’ll get back to you on that” • Manager can ask and answer his/her own questions(including issues from Phase 1 if so desired) • Possible questions for the group • What strengths do you bring to the group? • What pressures do you believe you will face in this job? • What do you expect of the people reporting to you? • What makes you angry? • What should we do if we think you’re making a mistake?

30. Management Transition Meeting(in the first 2 weeks in the job) • Reduces the transition time for the group • Provides the new manager with group opinions on issues and priorities • Helps the new manager get off on the right foot • Helps the new manager set the tone for the future

31. Assignment • Case brief – AllentownLast names beginning with N – Z