changejam 14 James Carlopio BA MA PhD jcarlopio@jmj.com - PowerPoint PPT Presentation

changejam 14 James Carlopio BA MA PhD jcarlopio@jmj.com jcarlopio@hotmail.com

A Master/Mistress Class? Process: § All experienced in change management § Many discussions § Can share ideas, experiences, examples Content: § Beyond ADKAR and Kotter’s 8 steps § Focus on three ‘advanced’ issues/concepts

Change is difficult Research indicates that 50% to 80% of large IT system implementations, organisational re- engineering (BPR) and change efforts (e.g., cultural, strategic, mergers) fail to deliver promised benefits. Personal change is similarly difficult. Studies show about 50%-60% substance abuse treatment failure rates. The heart patients’ study …

The Technical Environment In the 1950's, computer cost per 100,000 multiplications was $1.25, in the 60's it dropped to $0.25, in the early 70's to $0.12, and late 70's to $0.008, ... Moore’s Law Continuous, automated manufacturing process for solar panels; rain generates electricity when it hits piezoelectric materials; Melbourne factory transforming power station waste (co 2 ) into geopolymer ‘green’ concrete Soon: your eyes and pulse will tell me if you are learning; your dreams will be programmable; astronauts will be in Mars orbit; and every thing will eventually ‘talk’ to every other thing .

The Technical Environment CSIRAC (the CSIROs predecessor) in 1949 built Australia’s first computer: Typical laptop: 3500million Hz 500-1000Hz 200,000 million bytes 2000 bytes 0.1 sq m size 40m sq 2500 kg 2kg 30,000 watts 5-10 watts 2000 valves 1 micro chip about 10-15 million valves

Socio-Political Environment Every day the world population grows by >200,000 people ... >25 people/second. Urban populations are continuing to grow 3 to 4 times more quickly than rural populations. Critical water shortages leading to personal deprivation and political tensions. The threat of “terror”.

The Competitive Environment Increasing interdependence and complex, interactive relationships New organisational forms Reduced reaction times Innovation and change (as opposed to high- volume and low cost) - have become necessary core strategic competencies for many organisations

The external environment This is the ‘world’ within which we will be living and working tomorrow, next year and for the foreseeable future. “YES!” there are many drivers in our external environments requiring change, innovation, flexibility, creativity and even transformation.

… but the ‘causes’ of change failure are internal. Not external! IT Δ failure often is not an IT problem 85% of IT project failures were due to a lack of communication. Scott, 2007 – Silence is deadly. Computerworld, Vol 41, #6, p 28

Strategy implementation problems 44% 45% 40% 34% 35% 30% 30% 28% 25% 21% 20% 15% 10% 5% 0% Strategy Employees Strategy Organization and confused Other implementation lacked incentives about problems frustrated focus misaligned strategic actions Gates (1999); Verweire (2004)

Change is difficult Why is this happening? What are the major internal issues leading to failure? What are the key success factors?

Change is difficult Since we know all of this (unrealistic goals, poor measurement, different definitions of success/failure, communication, involvement, planning, decision-making, etc.) , and we have ADKAR and Kotter, why do we still have 50%-80% failure rates?

1. Implementation is not just plugging it in (i.e., implementation installation). 2. One-size-fits-all, generic implementation plans are doomed to failure. 3. B = f (P x S)

1. Implementation is not just plugging it in (i.e., implementation installation).

Some of the many elements in an implementation process?

2. One-size-fits-all, generic implementation plans are doomed to failure. B = f (P x S) Contingent change plans? Contingent on what?

2. One-size-fits-all, generic implementation plans are doomed to failure. B = f (P x S) At the very least: Structure and Culture Other possibilities: Timing/urgency, skills and experience of those involved, history, labour and industrial-relations climate, industry, type of change (e.g., technical, cultural, performance), motivation/ the why?, size of organisation, size of change, etc.

Organic Processes Flexibility, individuality, spontenaity Type: Clan Culture Type: Adhocracy culture Dominant attributes: Cohesiveness, Dominant attributes: Creativity, participation, teamwork, sense of family entrepreneurship, adaptability, dynamism Leadership style: Mentor, facilitator, Leadership style: Entrepreneur, innovator, parent-figure risk-taker Bonding: Loyalty, tradition, Bonding: Entrepreneurship, flexibility, interpersonal cohesion risk-taking Strategic Emphases: Toward developing Strategic Emphases: Toward inovation, people, commitment, morale growth, new resources External Positioning Internal Maintenance Competition, differentiation Smoothing, integration Type: Market culture Type: Hierarchy culture Dominant attributes: Competitiveness, Dominant attributes: Order, rules and goal achievement, environment exchange regulation, uniformity, efficiency Leadership style: Decisive, task-, Leadership style: Coordinator, organiser, production- and achievement-oriented administrator Bonding: Goal orientation, production/ Bonding: Rules, policies and procedures, service delivery, competition clear expectations Strategic Emphases: Toward competitive Strategic Emphases: Toward stability, advantage and market superiority predictability, smooth operations Mechanistic Processes Control, order, stability Cameron & Quinn, 1999

Implementation is not just plugging it in (i.e., installation). One-size-fits-all, generic implementation plans are doomed to failure. B = f (P x S) Behaviour is a function of the person (personality, beliefs, values) interacting with the situation or social environment (culture, structure, physical work environment, etc.)

The Power of the Situation § Kurt Lewin: B = f (P x S) § Fundamental Attribution Error Asch Millgram Zimbardo Langer

Critical Situational Factors A ‘linker’ bridging the gap in needs and understanding between ‘project people’ and users. Pilot-testing in the early stages. Applying good project management principles. Senior management sponsorship, commitment and involvement. The existence, in a relatively senior position, of an internal champion. Measurement, reward and recognition, acknowledgement.

Companies that measure well, perform well. 100 1 Perceived as an 97% industry leader over the past 3 years 80 83% s s e Financially ranked in 2 74% c c the top third of their 60 u S industry f o 52% 55% e 44% 40 r Last major cultural 3 u s 1 2 3 or operational a e 1 2 3 change judged to be M 20 very or moderately successful 0 Measurement-Managed Non-Measurement- Organizations Managed Organizations Source: :Lingle & Schiemann, 1996

B = f (P X S) Diagnose: What are the most powerful and important situational factors in your area? Remember them as they are critical to successful change management. They are the levers we pull to make change happen and make it stick.

Resistance is normal Individual level: People fear the unknown, being wrong, unaccepted, ridiculed, embarrassed, etc. They, therefore, ‘resist’ change out of fear. Habit and mind-sets lead to resistance. Organisational level: Cultural change alters power relations, status, rewards and recognition, measurement, definition of “success”.

Critical issues for the successful implementation of change § Communicate as well as “make it real”. § Pace the changes acknowledge, celebrate and reward. § Signal clearly what is not going to change.

Some essentials for directed change Vision+Incentive+Resources+Skills+Action Plan = Δ +Incentive+Resources+Skills+Action Plan=confusion Vision+ +Resources+Skills+Action Plan=no/slow Δ Vision+Incentive+ +Skills+Action Plan=frustration Vision+Incentive+Resources+ +Action Plan=anxiety Vision+Incentive+Resources+Skills+ =false starts