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How do you enable change and transformation in
complex settings?Pontus Wadström
A Real Movement | KTH
Pre-Conference workshop Source2Pay-summitStockholm, 20160420
Purpose of this workshop
Contribute with insights and elaborations on change and transformation in complex organizational settings
• Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and conclusions
Agenda
• Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and conclusions
Agenda
“Corporations generally leave 40 % of their gains on the ‘drawing table’”.
Mankins & Steele, 2005
“Between 70-90 % of all strategic change initiatives fail to reach their targets”.Beer & Nohria, 2000; Pettigrew & Whipp, 1991
Change and transformation is hard
As it seems
A management paradox
Planned strategy Realized strategi
Unrealized
strategiEmergent strategy
Mintzberg & Waters, 1985
Planning and realization
• Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and Closure
Agenda
Group assignment- Discuss, in your group, and agree upon 3-5 reasons you think are the most common ones
that causes change and transformation initiatives to fail
Supporting questions- Lack of knowledge? Lack of interest?- It’s not important? - Internal politics?
Method- Think individually (1 min)- Discuss your individual thoughts - similarities and differences - in your group (15 min)- Prepare yourselves to present your discussion, questions and the answers you found
together (5 minutes)
Why does change fail?
Direction CompetenceMotivation Resources Reinforcem
ent Confusion
Direction
Motivation
Resources Reinforcement
WorryDirection
CompetenceMotivation
Resources Reinforcement
Refusal
Direction Competence
Motivation
Resources Reinforcement Frustration
Direction CompetenceMotivation Resources Reinforcem
ent False start
Direction CompetenceMotivation Resources Reinforcem
ent Change
Competence
Prerequisites for change
• Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and Closure
Agenda
Group assignment- Discuss, in your group, and agree upon a description of ”change” and/or ”transformation” you
like and prepare yourselves to present your ideas.
Supporting questions- Is change something you do, or something you’re a part, of or both?- What is the difference, if any, between change and transformation?- What and who is a change manager and/or change agent?- Do we need change and transformation? What is it’s purpose?
Method- Think individually (1 min)- Discuss your individual thoughts - similarities and differences - in your group (15 min)- Prepare yourselves to present your discussion, what questions you had and the answers you
found together (5 minutes)
What is change?
“A reorganization, a diversification, a shift in technology, a reconfiguration of a process or a new composition of product and/or service portfolio”.De Wit & Meyer, 2005
”A new/changed set of a person’s behavior repertoire”.Skinner, 1976
”To make or become different”.Cambridge Dictionary, 2016
Some definitions...
• Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and Conclusions
Agenda
Strategy
Structure
ProcessRewards
Human capital
Gailbraith, 2001
Aspects of organizational design
20 % Affects 80 %
Activator Behavior ConsequenceA B C
80 % Used
20 %
Planning Learning
Braksick, 2007
Behavioral change
ANALYZE• Produce presentation of the
change• Implementera change activities• Evaluate change activities• Check with stakeholders and
organization• Describe baseline• Analyse training needs
Prepare Implement Finalize
Plan Design Build Test Roll out
TG1 TG2
Analyze
TG3 TG4 TG5 TG6
Project Management
TG8TG7
PLAN • Perform goal analysis• Produce change message• Formulate change activities• Produce stakeholder analysis• Producde communication plan• Produce Business Case
DESIGN• Check with stakeholders and
organization• Ensure all organizational
perspectives• Produce training plan and goals• Produce plan and organization for
support• Evaluate and update change
activities
ROLL OUT• Deliver to line organization• Transfer to support
organization
TEST• Check with stakeholders and
organization• Update training goals• Evaluate and update change
activities
BUILD• Check with stakeholders and
organization• Evaluate and update change
activities• Produce training material
A well defined change process
Adjust to magnitude, amplitude...
Ampl
itud
e of
ch
ange
Magnitude of change
BIG
SMALL BIG
Big changes for a limited part of the organization
Small changes for a limited part of the organization
Small changes for a significant part of the organization
Big changes for a significant part of the organization
... and realizability• Ability to get decisions
• Support from key stakeholders
• Security in results
• Degree of involvement
1-5
1-5
1-5
1-5
Realizing benefits Developing competence
Communicating
Evaluating and managing
Areas of responsibility and importance
• Goal analysis;• Identify, define, anchor, decide,
implement, realize, evaluate, feedback
• Uniformly defined changes• Go from... to…
• Set various types of benefits• Green, yellow, red, blue
• Evaluation, update and transfer of responsibility to line or support
Realizing benefits
• Tailormake
• Set targets
• Evaluate
• Spread knowledge
Format of training
Tasks Target group
Frequecy Complexity/ Magnitud Importance Geografy Size
High Low High Low High Low Central Spread Large Small
E-learning X X X X
Class room X X X X
Computer room X X X X
Web education (live) X X
Tutoring/supervision X
User support X X X X X X X X X X
Developing competence
VISION
INTERACTION
OPERATIONAL
FACTS
FACTS
FACTS FEELINGS
FEELINGS
FEELINGS
- Intranet- Emails
- Personal meetings- Management team meetings- Ambassador meetings- Workshops
- Workshops- Group meetings- Short films- Manuals
HowChannels and arenas
WhoTarget groups
- Project members...- Management team...- Key stakeholders...- Ambassadors...
-Everyone…
- Target group A...- Target group B...
…should understand the purpose
WhatPurpose
…should be involved in change activities
… should acknowledge and be ready for the ”new”
Communicating
Change Activities w.37 w.38 w.39 w.40 w.41 Produce change message
Check change message with communications manager
Check stakeholder analysis with steering group
Direction MotivationCompetenc
e Resources ReinforceComments
to resultIdentification
of risks1 2 1 1 1 … 3 3 2 1 2 … 2 3 4 3 2 … 4 4 4 4 3 … 1 2 1 1 1 … 3 3 2 1 2 … 2 3 4 3 2 … 4 4 4 4 3 …
Evaluating and managing
• Point of departure
• Why do change and transformation initiatives fail?
• What is real and sustainable change?
• How do you succeed in change and transformation?
• Summary and Conclusions
Agenda
Purpose of this workshop
Contribute with insights and elaborations on change and transformation in complex organizational settings
Assignment- Discuss in your group what we have been talking about this day and conclude some
important learnings to bear with you
Supporting questions- Why do change and transformation initiatives fail?- What is real and sustainable change?- How do you succeed in change and transformation?
Method- Think individually (3 min)- Discuss your individual thoughts in your group (5 min)- Prepare yourself to present your personal ideas, what questions you had and the answers
you’ve found during this afternoon
What have you learned about change?
Make sure…• ...direction, competence, motivation,
resources and reinforcement are in place.• ...strategy, structure, processes, rewards
and human capital are pulling in the same direction.
• ...to define all benefits measurably, if only 1/0
• ...to evaluate and feedback often, and genererate change activities based on results
• ...to use 0,6 FTE change management per project management
• ...to spend a lot of time with management and other stakeholders
• ...design every change activity to enhance direction, competence, motivation, resource or reinforcement
• ...to prepare yourself and your environment for hard work
Unless…• ...all prerequisites are in place...• ...all organizational aspects contribute to
the change ...• ...benefits are measurable, you will not
know how the change is going, or when you’re done and...
• ...measuring, evaluation and feedback happens...
• ...time and resources are used for change management...
• ...the leadership and other key stakeholders understand, support and drive the change...
• ...all change activities have a clear purpose and goal they tend to be ”communication” and then...
• ...the change is conducted extremely thoroughly and persistent...
...there will be no change
Summary and conclusions
Pontus Wadström [email protected] +46760-550010 arealmovement.com #A_Real_Movement
https://se.linkedin.com/in/pontuswadstrm
Thank you for your time and
effort!