ICWES15 - Workshop: Making Change Stick! - Systems for Sustaining Change. Presented by Ms Alexandra L Meldrum, NSW, AUST

Creating ‘Change that sticks’!Sustainable Change

Presenter: Alexandra Meldrum (AGSM)Change Management and Performance Improvement Specialist

SUMMARY:

We’ve all seen the fads and fashions. Changes are here today and gone tomorrow. The challenge for many engineers and scientists who wish to make a difference, is “How do I

create change which is sustainable?”

Participants will learn: What is sustainable change, and why do we need it? A starting point – organisational diagnosis – strategy, structure and culture. Governance – what is this, and now does it help with sustainability? Don’t take your eye off the ball! Accountability, monitoring and control Trust and reputation. A word of caution… Don’t be trapped by Greenwash.

Presenter: Alexandra Meldrum is a specialist in Change Management and Performance Improvement.


SUMMARY:

What to expect from this workshop: INTRODUCTION: Participants will gain a basic understanding of sustainable change and a brief

introduction to the open systems model .This model can be applied to organisations, or sections of organisations, or to projects to enhance our understanding and achievement of sustainable change.

APPLICATION: Participants will see a demonstration of the sustainability concepts applied to two

examples. Participants will apply basic concepts to an organisation or project with which they are familiar.

COMMON CHALLENGES: Participants will discuss some of the common pitfalls in creating

sustainable change, and some strategies for mitigating the risks. DISCUSSION: The workshop will be participative. Participants in this workshop should come willing

to share from their own experience and to learn from one another in brief discussions. PACE: The pace of discussion will move quickly. We’ll share succinct examples, so we have time to

cover a range of topics. The discussion will not be in depth.


Alexandra likes training to be fun!

Think of two examples of change:

Past:

A change you experienced which did not work.

Future:

A change you would like to make

Sustainable Change – my own examples

We’ll use these two examples of change to look at how the ideas were applied:

§ Rotating factory workers & putting them in teams“Work redesign” and “team redesign” in a corporate organisation

§ Centre for Engineering Leadership and Management – renewal of the NSW Board of a national professional organisation

Sustainable Change – shared examples

“Change that sticks!”

What do we mean by “sustainable change”?

Presenter: Alexandra Meldrum (AGSM)

Think of two examples of change:

Past:

A change you experienced which did not work.

Future:

A change you would like to make

Sustainable Change – my own examples

“Adapt or die”We live in a rapidly changing world…

must be adaptive and flexible to survive

Why “sustainable change”?


Video – Did you know?

http://www.youtube.com/watch?v=cL9Wu2kWwSY Source: Amybethhale. October 21, 2008 (4:56 min)

Fantastic video on the progression of information technology, researched by Karl Fisch, Scott McLeod, and Jeff Brenman, remixed. By the way, I did not create this video! Search on the names above if you want more info - they are responsible.

Sustainability in a Global Context

http://www.youtube.com/watch?v=cL9Wu2kWwSY

External awareness:

What’s happening? Opportunities? Threats?

A starting point… organisational diagnosis

Business arguments

Why do we need sustainable change?

Stakeholder Benefits Costs

Director More independent non-executive directors More meetings and briefings

Shareholders Increased investment from ethical based funds CSR premium on all company activities such as increased reporting costs, openness etc

Managers -Better HR policies and practices lead to increased commitment-Increased awareness of ethical issues leads to increased confidence in employees

-Increased training in ethics -Focus group sessions and reporting

Employees -Better HR practices lead to improved commitment -Ethical conduct by superiors can lead to increased trust and improved productivity -Better working conditions -More attractive as ‘employer of choice’ for talented staff-Reduced recruitment costs

-Inclusion of ethics training -More intra-company communications

-More effort on labour relations -Will need to implement human rights policies

Customers -Move to ethical consumers captured-Enhanced reputation

-Brand equity recognition -Advertising can cite CSR image

Cost of goods may increase in short-term

Suppliers Better quality inputs

Less harmful effect on ‘public image’

Costs of inputs may increase in short-term

Hopkins M, 2003, ‘The business case for CSR’

- Business arguments

- Ethical arguments

- Risk management

- Let’s be pragmatic…..

Who wants to make a change if it doesn’t stick!

- Waste of your time and effort

- Waste of your resources

- Feel less satisfied with the result

We want to achieve personal success

Why do we need sustainable change?

Where are we now… ?

Where do you want to go?

http://www.youtube.com/watch?v=nqoduxvOl7E&feature=related

Alice’s Adventures in Wonderland. Lewis Carroll.


http://www.youtube.com/watch?v=nqoduxvOl7E&feature=related

http://www.thefairfieldvine.com/storage/alice in wonderland cheshire cat.jpg


External awareness:


Begin by defining your ‘unit of analysis’

What is my unit of analysis?

Then, define your strategy or objective:

What do you hope to achieve?



External awareness:


Begin by defining your ‘unit of analysis’


Then, define your strategy or objective:

What do you hope to achieve?


A starting point… Organisational Diagnosis

Structure Culture

Strategy

My project

We sustain change through understanding and working within the complexity of open systems.

Environment


Look inside…

- What is our strategy or objective?

- What does our organisation structure look like on paper?

- How does our organisation really look – who has power?

- What do we say we value?

- What do our actions show we believe in?


The interconnections are critical!

Examples1. Rotating factory workers & putting them in teams“Work redesign” and “team redesign” in a corporate organisation

Structure Culture

Strategy

My project

We sustain change through understanding and working within the complexity of open systems.

Environment


- What is our strategy or objective?

- What does our organisation structure look like on paper?

- How does our organisation really look – who has power?

- What do we say we value?

- What do our actions show we believe in?

Forces for change. Forces Against

Your organisation or project?

Change happens when people change

Who does this?

The importance of “multiple perspectives”

People

Rational Social

Closed

System

Open

Reference: Theoretical perspecitives recognised by Richard Scott, Stamford University (1978)

Theory is great!

1900 – 1930

e.g. TaylorScientific Mgt

1930 – 1960

e.g. MayoHuman Relations

1960 – 1970

e.g. Chandler

1970 + Open Systems-Social actor.

Project Governance:

• ‘How do you maintain the balance between customer satisfaction and project controls? How do you impose just enough process without risking innovation and competitiveness?’

• ‘…governance as the backdrop in which successful projects can be realized. Generate a positive meaning of the term “governance” to be the facilitative context in which more efficient project teams, improved project quality and results, reduced risks, and improved resource utilization can occur. Finally, link project governance to organizational strategies like increased efficiency, improved customer satisfaction, and cost avoidance.’

Patel, D, 2007, “Why executives should care about project governance and what your peers are doing about it’, in PM World Today – April 2007. http://www.pmforum.org/library/tips/2007/PDFs/Patel-4-07.pdf

What is Governance?

http://www.pmforum.org/library/tips/2007/PDFs/Patel-4-07.pdf

Many definitions. For example:

(1) John Carver – the board is responsible for governing, not managing

(2) ASX Corporate Governance Council (ASXCGC) defines “corporate governance” as:

- ‘the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations’

- ‘It encompasses the mechanisms by which companies, and those in control, are held to account’

(3) Review by John Uhrig AC defined governance as:

- “The arrangements by which the power of those who implement the strategy and direction of an organisation is both delegated and limited to ensure the organisation’s success, taking into account the environment in which the organisation is operating”

There is no universal formula for good governance!!!

What is Governance?

What is happening external to us?

- Who are your stakeholders?

- What matters to them?

Governance

Governance: Stakeholders.Would you let this happen on your watch?

http://eraven.franklinpierce.edu/exch/58/oil spill.jpg

Various levels:

- Organisational governance

- Project governance

- Professional ethics

Governance

What is happening external to us?

- Who are your stakeholders?

- What matters to them?

Examples2. Centre for Engineering Leadership and Management – renewal of the NSW Board of a national professional organisation.

Governance

Accountability, monitoring and control

Can you state the Business Case for your change clearly and succinctly with facts and hard data.

- Costs?

- Benefits?

You need to use language which your stakeholders understand. You need to relate this to the items they care about.

Don’t take your eye off the ball!


Monitoring

- What are you measuring and monitoring?

- When do you report? To whom?

Examples:

- Global Reporting Initiative

- Balanced Scorecard

- $ E S G




$ E

S G



INPUTS

•Internal•External•Business

•Resources

PROCESSES:Leadership• Strategy• Structure• Culture

OUTPUTS

•Sustainability performance•Stakeholder

reactions

OUTCOMES•Sustainability performance•Long term

financial performance

Adapted from model from Epstein (2008), Figure 1.7 on p46


Is everything aligned?

What is your process for managing changes?

- What do you measure? (Measuring)

- Who has the responsibility to report? (Reporting)

- Who has the responsibility to take action? What management systems do you have in place? (Managing)



Is everything aligned?

What is your process for managing changes?

- What do you measure? (Measuring)

- Who has the responsibility to report? (Reporting)

- Who has the responsibility to take action? What management systems do you have in place? (Managing)

2. Centre for Engineering Leadership and Management – renewal of the NSW Board of a national professional organisation.


Reputation matters….

- What is our reputation?

- What is the worst that could happen?

A word of caution… Don’t be trapped by Greenwash

Would you put these two together… ?

In conclusion… “Alignment”


The interconnections are critical!

People

Rational Social

Closed

System

Open

Reference: Theoretical perspecitives recognised by Richard Scott, Stamford University (1978)

Alignment of People and Systems

1900 – 1930

e.g. TaylorScientific Mgt

1930 – 1960

e.g. MayoHuman Relations

1960 – 1970

e.g. Chandler

1970 + Open Systems-Social actor.

In conclusion… “Alignment”

Structure Culture

Strategy

My project

Governance

Thank you! Alexandra Meldrum MBA(Exec) GCCM BE BSc FAICD FIEAust CPEngChange Management and Performance Improvement Specialist

Environment

Behaviour change

Accountability, Monitoring & Control

Stakeholders

References:

Like to read a bit of history as to how these ideas developed? Two important books & one journal article:

Collins, J. 2001, Good to great: why some companies made the leap and others don’t, Harper Collins, New York.

Senge, P.M. 1992, The fifth discipline: the art and practice of the learning organization, Random House, Sydney.

Prahalad, C.K. & Hamel, G. 1990, “The core competencies of the organisation’, Harvard Business Review, May-June, pp 79-91.

Like to read something practical? Some books as suggested readings:

Dunphy, D., Griffiths, A. & Benn, S. 2003, Organisational change for corporate sustainability, Routledge, London.

Turner, D. & Crawford, M. 1998, Change Power, Business and Professional Publishing, Sydney.

Epstein, M.J. 2008, Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental and Economic Impacts.

Like to study more of this?

AGSM Graduate Certificate in Change Management (GCCM). Details at www.agsm.edu.au

Recruitment & Admissions, AGSM MBA Programs, UNSW. T: +61 2 9931 9245


http://www.agsm.edu.au/

WORKSHOP LEADER:

Alexandra Meldrum MBA(Exec) GCCM BE BSc FAICD FIEAust CPEng

Alexandra is a Change Management and Performance Improvement Specialist

Alexandra has extensive experience as a executive manager creating and implementing change programs. She has degrees in science and engineering and an Executive MBA. Alexandra worked in the food, energy and education sectors, and run a social business.

An experienced director, she is a Fellow of the Australian Institute of Company Directors.

Alexandra works as a consultant and trainer, and she teaches at the AGSM.

She is Chair of the NSW Board of the Centre for Engineering Leadership and Management.

In this presentation, she will draw on her academic teaching and her personal experience as a change agent responsible for the implementation of a range of change projects.

Alexandra likes training to be fun!
