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Managing Organizational Change Practical Strategies For Leading During Turbulent and Challenging Times The Main Objective – Maximizing Value to Your Community. Frank P. Saladis PMP, PMI Fellow Past President NYC Chapter, Past Chair PMI EDSIG, Community Involvement Lead - IT & Telecom COP.

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slide1

Managing Organizational ChangePractical Strategies For Leading During Turbulent and Challenging TimesThe Main Objective – Maximizing Value to Your Community

Frank P. Saladis PMP, PMI Fellow

Past President NYC Chapter, Past Chair PMI EDSIG,

Community Involvement Lead - IT & Telecom COP

frank p saladis pmp
Frank P. Saladis PMP
  • Background
    • AT&T Long Lines
    • AT&T BCS and Corp. ITS
    • Cisco Systems Professional Services
    • International Institute for Learning
    • Past President PMI® NYC Chapter
    • Author -10 books
    • Community Involvement Lead – IT & Telecom CoP
    • Founder International PM Day
    • PMI Person of the year 2006
a thought about why we are here
A Thought About Why We Are Here

Leadership meetings and other project management related functions are continually preparing us for a greater role in our communities. We are not only gaining experience and improving our leadership capabilities, we are also becoming mentors, people who have the ability to help others find ways to make a difference in their lives, in their businesses, and in their business community.

Thereby, we are all making a difference

project leaders believe in
Project Leaders Believe In:
  • CommunityBringing members of the project management community together for knowledge sharing is an effective method for advancing project management expertise and to facilitate steady and positive personal growth.
  • EngagementListening to, and building on, diverse viewpoints enables creativity and generates new possibilities and opportunities
session objectives
Session Objectives
  • Provide a foundation for developing strategies to manage organizational change effectively
  • Provide techniques that will improve the community leader’s ability to create value adding change
  • Improve the capability to create a change ready team
  • Apply tools and techniques that will enhance personal leadership effectiveness.
quote of the day
Quote of the Day

“There is no force more powerful in modern business than productivity”

UTC CEO George David (United Technologies Corporation)

human pathology a management metaphor
Human Pathology – A Management Metaphor
  • Leaders and Managers
    • Diagnose problems
    • Determine the organization’s ills
    • Prescribe courses of action
  • First, do no harm – a fundamental precept for physicians since Hippocrates is appropriate for business leaders as well
  • Change an organization through an understanding of its formal and informal attributes – Its organizational DNA
leadership lessons learned from skilled physicians
Leadership Lessons Learned from Skilled Physicians
  • The effective leader understands how to avoid broad-spectrum applications when tweaking just a few elements with finesse and sensitivity can lower the pain and raise the game

Strategy and Business, Leaders, Do No Harm, November 2013

3 key strategies for a sustainable course of high performance
3 Key Strategies for a Sustainable Course of High Performance
  • Strategic clarity and coherence
    • Articulated and communicated required capabilities
  • Resource Alignment
    • Continued investment in capabilities critical for success
  • Supportive organization
    • Structure
    • Incentives
    • Decision rights
    • Skill sets
    • Culture

How Ready are you for Growth? Booz & Company, Ashok Divakaran and VinayCouto

eight elements of organizational design
Eight Elements of Organizational Design
  • Formal
    • Decisions
    • Motivators
    • Information
    • Structure
  • Informal
    • Norms
    • Commitments
    • Mid-sets
    • Networks
let s get settled
Let’s Get Settled
  • Introductions
  • Network
  • Share
  • Relax a bit
  • Listen
  • Change seats
indicators that life is about to change
Indicators That Life Is About To Change
  • Merger, Acquisition, Divestiture
  • New product or service
  • A new leader, boss, manager
  • New technology
  • New project
  • New requirement
  • New customer
  • ________________
organizational change within your organization or community
Organizational Change Within Your Organization or Community
  • Significant changes
    • Planned
    • Unplanned (surprises)
  • Impact of the change
    • Short term (immediate)
    • Long term
    • Consider brand, employee / member perception, relationships, teamwork, attitude,
    • Positive or negative effect (damage, opportunity)
  • Lessons learned
what project managers are telling us
What Project Managers are Telling Us

The Key Competencies of a Project Manager

  • Communications Skills-verbal, written, text
  • Leadership Skills
  • Organizing Skills-planning, time management
  • Interpersonal Skills
  • Negotiating Skills-Diplomacy and mediating
  • Team Building Skills
  • Technical Skills

Emphasis on

professionalism in

planning and execution

personal assessment consider your current capabilities and your future opportunities
Personal Assessment: Consider Your Current Capabilities and Your Future Opportunities:
  • To do all aspects of my leadership duties well, I need to improve _______
  • If I were better at _______, I would excel relative to my peers
  • If I improved _______, I would resolve an ongoing problem
  • Feedback from several sources indicate I should improve _______
  • In the future, my organization will need more people who are effective at _______
  • To advance to the next level of leadership within my organization I should learn more about ______
  • The reasons why I should continue my personal development include: ____________________
thoughts about change
Thoughts About Change
  • People don't resist change. They resist being changed! [Peter Senge]
  • If you want to make enemies, try to change something. [Woodrow Wilson]
  • Change is the law of life and those who look only to the past or present are certain to miss the future. [John F. Kennedy]
the reality of change
The Reality Of Change

A new process creates no improvement unless individuals follow the

process. Likewise, a new tool or system delivers no value if individuals

do not use the tool or system

90 of project problems are caused by people not machines tools or equipment

“90 % of project problems are caused by people, not machines, tools or equipment”

Dr. Harold Kerzner, Ph.d

organizational level impact of poorly managed change
Organizational Level Impact of Poorly Managed Change
  • Costs:
  • Productivity plunges (deep and sustained)
  • Loss of valued employees
  • Reduced quality of work
  • Risks:
  • Impact on customers
  • Impact on suppliers
  • Morale declines
  • Legacy of failed change
  • Stress, confusion, fatigue
  • Change saturation
achieving the desired results
Achieving The Desired Results
  • The essence of change management is to encourage and enable the individual transitions resulting from a project or an initiative
  • At the most basic level, if individuals don't adopt and embrace a change, results will not be achieved
  • The more effectively we can enable and encourage those individual transitions using change management, the more successful our projects and initiatives will be.
assessing your change management skills score 1 2 3 or 4 for each question
I try to anticipate and lead change within my organization

I make full use of the latest worthwhile IT developments

I take any competitive, technological, and market changes very seriously

I look for opportunities for radical as well as continual change

I like to be different and seek productive ways of creating difference

6. I take an open minded approach toward new ideas and possibilities

7. I link change to any known needs of the customer

8. I keep my change philosophy simple and concise

9. I involve customers and suppliers in my plans for change

10. I make a full and careful business case for changes and change projects

Assessing Your Change Management Skills – Score 1,2,3 or 4 for each question
assessing your change management skills
11. I break change projects down into manageable components

12. I consult widely in the process of deciding on strategy and action

13. I obtain people’s agreement to the actions demanded of them

14. I use and develop teams as the basic units of change management

15. I use quick-fix changes for instant results early in the change program

16. I plan well ahead for the long-term payoffs of change

17. I am careful not to create over-optimistic expectations

18. I seize the opportunity to reward, celebrate, and encourage successful change

19. I make sure everybody knows the answer to “What’s in it for me?”

20. I have effective and adaptable contingency plans available

Assessing Your Change Management Skills
assessing your change management skills1
21. I anticipate adverse reactions and plan how to deal with them

22. I use well-designed pilots and experiments to test my change plans

23. I share relevant information with colleagues and staff as soon as possible

24. I work closely with like-minded people who are eager to change

25. My own behavior is flexible and highly adaptable to changing needs

26. I encourage people to speak their minds openly and to air their concerns

27. I tackle resistance to change promptly, fairly, and vigorously

28. I use quantitative measurement to obtain the results I want

29. I review and revise the assumptions that underline the change plan

30. I ensure that thorough training keeps people up to date with change

31. I start the next change project as another draws to a close

32. I use self-appraisal to check on myself and the organization

Assessing Your Change Management Skills
analysis
Analysis
  • 32-64 : You are resisting change or are unsure of its potential benefits. Overcome your fears and learn to plan for change
  • 65-95: You understand the need for change – Now you must develop your skills to achieve it successfully
  • 96-128: You are a skilled agent of change. Remember that change is a never-ending process so keep planning ahead

Essential Managers, Managing Change, Robert Heller, DK Publishing Inc. New York

slide27

It is not necessary to change. 

Survival is not mandatory. 

~W. Edwards Deming 

slide28

Change is inevitable - except from

a vending machine.

~Robert C. Gallagher

slide29

Prepare yourself and your team to become change ready

When you are through changing, you are through.  ~Bruce Barton

predictions what s coming
Predictions – What’s Coming?
  • Look ahead
    • Your career
    • Project management methods
    • The next PMBOK ® Guide – 900 pages?
    • New credentials – ACP? PgMP?
    • Technology
    • PMI ® - What is changing?
    • The global economy
    • Energy
dealing with change
Dealing With Change
  • Change is almost always disruptive
  • It can be traumatic
  • People often avoid it if they can
  • It is part of organizational life
slide32

Be Tolerant of Mistakes

Zero defects is an alien concept in

Managing change and transition.

If people waited until changes could be

performed perfectly, they would never

make the change

No such thing as an error free approach

slide39

Noticing Small Changes

Early Helps You Adapt To

Bigger Changes That Are

To Come

slide41

Cheese Philosophy

The quicker you let go of old cheese,

the sooner you find new cheese.

Movement in a new direction helps

you find new cheese.

Old beliefs do not lead you to new

cheese.

slide42

“Imagining Myself Enjoying New Cheese Even

Before I Find It Leads Me To It” -Haw

lessons learned about change
Lessons Learned About Change

If you were assigned as a “change mentor”……

  • Reflecting on your personal experiences with change (organizational change, change that affected people you know, leaving a job, starting a new business, other significant change events) what lessons would you pass on?
slide45

Sources of Change

Wants, needs,

causes

New

Creates new

opportunity

Influences

Enterprise

Environmental

Factors

top drivers of change
Top Drivers of Change
  • Consumer preferences
  • Energy costs
  • Tax policies
  • Reverse innovation
  • Non-traditional competitors
  • Extended enterprise risks
  • Exponential growth in information flow
  • Long-term growth strategy / Globalization
  • Succession planning – exit of baby boomers
  • Generation values – BB, GenX, Gen Y, Millenials
  • Technology

Bloomberg Business Week

change can be destructive
Change Can Be Destructive
  • Change can kill the spirit of an organization
  • Change often leaves job commitment lying wounded and weak
  • Change puts heavy demands on the organization
  • People tend to avoid change

Managing Change and Transition, Harvard Business Essentials

stages of reaction to change
Stages of Reaction To Change
  • Shock
  • Defensive Retreat
  • Acknowledgment
  • Acceptance and adaptation

Managing Change and Transition, Harvard Business Essentials, Harvard Business School Press

lessons learned about change1
Lessons Learned About Change
  • Change involves numerous phases
  • Skipping steps only creates an illusion of speed
  • Critical mistakes in any phase can be devastating, slow momentum, and negate previous gains
  • Even the most capable leaders often make at least one big error

Harvard Business Review on Change, Leading Change, John P. Kotter

lessons learned about change2
Lessons Learned About Change

Most successful change efforts begin when:

  • You look very closely at your company’s competitive situation, market position, technology, and financial performance
  • You observe trends, declining margins, and emerging markets
  • You communicate this information broadly and dramatically
  • You motivate people to engage in aggressive cooperation

Harvard Business Review On Change, Leading Change, John P. Kotter

key points about change
Key Points About Change
  • Don’t under estimate the difficulty of driving people out of their comfort zone
  • Don’t over estimate your success in increasing the urgency of a change
  • Have patience. Don’t eliminate the preliminaries
  • Change demands leadership. Beware of too many managers and not enough leaders

Harvard Business Review On Change, Leading Change, John P. Kotter

paving the way for successful change

Paving The Way for Successful Change

How Do You Become Change Ready?

slide53

Think

Differently

Instead of repairing something to get it back to the way it was before, we need to ask ourselves: How can we fix things and make them better than before?

change can charge up an organization
Change Can Charge Up an Organization
  • Change is part of organizational life
  • Change is essential for progress
  • Change opens doors
  • Change encourages creativity and innovation
  • Change can create the momentum to reinvent an organization
transition management remove doubt cynicism and disillusionment
Transition Management:Remove Doubt, Cynicism and Disillusionment
  • Provide employees with a strong sense of purpose
  • Justify the challenge of the change
  • Provide a vision and mission that will inspire
  • Employees won’t get emotional about “increased market share” or 20% reduction in cost”
  • Create a genuine belief in the need to change
barriers to empowerment
Barriers to Empowerment

Relationship Management

Formal Structures

Make it difficult to act

Bosses discourage

Actions aimed at

Implementing the

new vision

A lack of needed

Skills undermines

action

Employees understand the

Vision and want to make it

a reality but are boxed in

Personnel and information

Systems make it difficult to act

Source – John P. Kotter, Leading Change, Harvard Business School Press

leadership set expectations intentionally
Leadership: Set Expectations Intentionally
  • Assign responsibility for results
  • Hold people accountable
  • Assigning responsibility indicates a level of trust between leader and team member
  • Assigned responsibility is associated with personal worth and abilities
leadership
Leadership
  • An organization is change ready when:
    • Leaders are respected and effective
    • People feel personally motivated to change
    • The organization is non-hierarchical and people are accustomed to collaborative work
negotiation and conflict resolution communicate relentlessly
Negotiation and Conflict ResolutionCommunicate Relentlessly
  • Specify the nature of the change
  • Explain why
  • Explain the scope of the change, even if it contains bad news
  • Develop a graphic representation of the change project that people can understand and hold in their heads
  • Predict negative aspects of implementation
  • Explain the criteria for success and how it will be measured
  • Explain how people will be rewarded for success
  • Repeat, repeat, and repeat the purpose of change and actions planned
  • Use a diverse set of communication styles that is appropriate for the audience
  • Make communication a two way proposition
a basic enterprise change model
A Basic Enterprise Change Model
  • Company culture, values, and behavior
  • Vision and Business imperatives
  • Communication
  • Leadership (to drive change)
  • Execution
  • Follow-up
a project program change model
A Project / Program Change Model
  • Business imperatives
  • Clearly defined objectives
  • Leadership
  • Change Control process
  • Communication
  • Execution
  • Follow-up
the handwriting on the wall haw
The Handwriting On the Wall -Haw
  • Change happens
  • Anticipate change
  • Monitor change
  • Adapt quickly to change
  • Change
  • Enjoy change
  • Be ready to change Quickly and enjoy it again and again

Who Moved My Cheese? Spencer Johnson, M.D

G.P. Putnam’s Sons, New York

slide64

Conclusions and Summary:

The Main Objective –

Maximizing Value to the Business

slide65

Stop focusing on what you can’t

control and address what is

Important –

Your business and your projects

taking action
Taking Action
  • Three main areas of leverage
    • Improve processes
    • Improve the effectiveness of human resources (human capital)
      • Working smarter through leadership
      • Cross training – greater flexibility
      • Promote an adaptive attitude
    • Utilize technology
      • Increased efficiency
lead the way
Lead The Way
  • Build a multi-year productivity improvement plan
    • More efficient and faster methods
    • Training – Leadership, influencing, innovation
    • Replacement of old technology
    • Business justification for new projects, products, and services focused on customer benefits and value to the organization
a plan of action
A Plan of Action
  • Determine how exposed your business is
  • Review and update your business plan
    • Planning is continuous
    • If you are not planning, you are planning to fail
  • Review your cash flow situation
  • Prioritize your financial obligations
  • Obtain payments and collect unpaid bills
  • Take appropriate cost cutting measures
  • Control inventory
  • Review staffing requirements
  • Maintain a positive outlook
  • Consider discounts
a plan of action1
A Plan of Action
  • Invest in your employees through performance reviews, coaching, mentoring, communicating, training
  • Acknowledge excellent work
  • Examine your leadership style and adjust to create a committed and change ready organization
summing up
Summing Up
  • Enlist the support and involvement of key people
  • Develop a realistic implementation plan
  • Support the plan with consistent behavior
  • Develop an “enabling structure”
  • Celebrate milestones
  • Communicate relentlessly
international project management day
International Project Management Day
  • 7 November 2013
  • www.internationalpmday.org
  • We are attempting to plan a worldwide event that connects project managers in an effort to enhance awareness of the value of the professional project manager
references and source material
References and Source Material
  • Managing Change and Transition – Harvard Business Essentials
  • Conquering Adversity – Christopher Novak
  • A Survival Guide to The Stress of Organizational Change – Price Pritchett and Ron Pound
  • Firing Up Commitment During Organizational Change, Price Pritchett
  • Who Moved My Cheese? Spencer Johnson M.D. G.P. Putnam’s Sons, New York
  • Harvard Business Review on Change, Harvard Business School Press