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1
Aligning Organisational Development with
Business Transformation
Presented by Johan GreeffTreetops Management & Development
Consultants (Pty) Ltd [email protected] ; (012) 666 8093
24 June 2010
Johan Greeff● Clinical Psychologist & Master OD Practitioner● Founder member of IODA (1986)● Founder of Treetops Consulting (1989)● Executive Coach● Worked and met with OD greats like Peter
Senge;Leo Buscaglia; Angeles Arien; Peter Block; Humphrey Walters; Kitch Kristie; Norman Chorn’ Joel Goodman
● Treetops Clients: Aurecon Engineering; BMWSA; Gauteng Propeller Enterprise; Pick n Pay; Tongaat-Huletts; Sasol; VWSA; Grinaker-LTA and many others
● Passions: Apart from OD, leadership, Johan loves life, is active in motor racing (Porsche Time Trial Series); Cycling and has completed 12 Comrades Marathons.
Definitions
Change● Change is the process or the event
that takes place
Transformation ● Change in thinking (mindset, attitude
and behaviour)
● To add value
John Brett-Cohen
Definitions
Corporate culture ● Is made up of the values, beliefs and
assumptions that help the organisation succeed (often now taken for granted)
“A way of doing things “ Edgar Schein - 1999
Types of transformation
● Evolutionary
● Radical (event & survival)
The road of evolutionary change
N Chorn
The new normal
Future Building vs. Strategy
From good to great
Radical Change
Burning platform
Kotter Change Model
Create urgency•Burning platform•New opportunities
Powerful coalition•Convince inspire leadership role
Create vision for change•Clear vision•Values•Vision speech
Communicate the vision•Walk the talk•Address concerns•Lead by example
Remove obstacles•Deliver change•Relook structure & reward
Create rewards•Short term wins•Sure fire projects•Choose targets
Build on change•Celebrate what is right•Improve what can be•Set new goals
Anchor change in corporate culture •Make it stick •Publicly recognise
Step 1Step 1 Step 2Step 2 Step 3Step 3 Step 4Step 4
Step 5Step 5 Step 6Step 6 Step 7Step 7 Step 8Step 8
How the mighty fall
Case Study
ofEncyclopedi
a Britannica
Why good businesses go bad
12
Success > become internally focused and lose
sight of customer
Good Track Record > listen to own ads
Good Reputation > recipes become ingrained
Action orientated > too many things > lose focus
Coping with changing conditions
SMALLER BETTER DIFFERENT
• Re-structure• Down-size
• Re-engineer• Quality mgt• Cont improv• Benchmark
• Re-invent the business model
• Review the strategy
• Reshape the organisation
This is ‘catch up’ This is ‘transformation’
Aligning the organisation
13N Chorn
Why do 65% of change processes fail?
Harvard Business Review
Change starts in the hearts and minds of individuals
Five levels of behaviour in response to change
New Processes
Structure
Process
Mental Models
PurposeWill
New Thinking
New Structures
Challenge
Where does our commitment come from?
Action
1. “Restructuring”
2. “Redesigning”
3. “Reframing”
0. “Reacting”
4. “Regenerating”
Uncovering Common Will Putting Purpose into Practice
SHARMA
Strategic alignment Operating Environment Operating Environment
StrategyStrategy
Structure & Process Structure & Process
LeadershipLeadership
CultureCulture
Development Interventions Development Interventions
Are we resilient
enough?
What is resilience?
● Not about bouncing back –
too costly
● Turnaround is transformation
that is tragically delayed!
● Resilience is: ability to anticipate and
adjust to change before getting knocked over
efficiency in both operations
and renewal building capability ahead of
operating conditionsN Chorn
5 signposts for corporate resilience
19
N Chorn
Situational and self awareness
N Chorn
Intellectual rigour
N Chorn
Physical agility
N Chorn
Features and practices for each
Implications for leadership
●Leadership needs versatility ●Must learn to cope with paradox●Role in shaping culture●Walk the talk ●Make bhad decisions
How people see their management model changing
Bureaucracy Emergence
Hierarchy Collective wisdom
Alignment Obliquity
Extrinsic Intrinsic
Managing across: activities
Managing down: activities
Managing objectives
Managing individual motivation EN
DS
M
EA
NS
TODAY 5 YEARS FROM NOW
1 2 3 4
The role of culture
Hard vs heart
CUSTOMER FOCUS
CUSTOMER FOCUS
PROCESSFOCUS
PROCESSFOCUS
VISION
AND
STRATEGY
FINANCIAL FOCUS
FINANCIAL FOCUS
LEARNING AND GROWTH FOCUS
LEARNING AND GROWTH FOCUS
Balanced Scorecard Kaplan & Norton
Cultural Transformation Tools ®
Financial Focus =
Finance
Process Focus =
Fitness
Customer Focus =
ClientRelations
Learning & Growth Focus =
Evolution
Culture (added)
SocietalContribution (added)
The Business Needs ScorecardRichard Barrett
Cultural Transformation Tools ®
Personality Structure
EmpowermentInner Business
Decis
ion
Mak
ing
Dyna
mic
Dependent Employee
Emotional
Parti
cipat
ion
Stru
ctur
eCr
eativ
eAc
tions
Dep
ende
ncy
Aut
onom
y ProductivityZone
VisibleZone
PurposeZone
CommitmentZone
Involving inChange
CommitmentIn Change
Intelligence
Rational
CAMPOVERDE CHANGE MODELWhat doesn’t exist, could exist through a process of self creation
Personality Structure
Decis
ion
Mak
ing
Dyna
mic
EmpowermentInner Business
Dependent Employee
Emotional
Parti
cipat
ion
Stru
ctur
eCr
eativ
eAc
tions
Obj
ectiv
ity ProductivityZone
VisibleZone
PurposeZone
CommitmentZone
Involving inChange
CommitmentIn Change
Intelligence
Rational
CAMPOVERDE CHANGE MODELWhat doesn’t exist, could exist through a process of self creation
Passion Achievement
Con
fusi
on
Campoverde Change Model
● Purpose Zone o Define purpose in detailo Create a sense of purpose, passion and
hopeo Involve and engage peopleo Listen and give opportunity to express
emotionso Allow for mistakes and aligno Communicate, communicate,
communicate
Campoverde Change Model
● Commitment Zone o Use team valueso Celebrate all victorieso Feedback, feedback, feedbacko Remember people are self-protectiveo Be truthful about what you know and
don’t knowo Stretch people to challenging goalso Allow for autonomous actions
Campoverde Change Model
● Productivity Zone o With necessary task maturity allow
freedomo Clear goals and objectives within roleso Enjoyment from achievement should be
celebratedo Talk outcomes and future, not bottom
lineo Measure successo Ample feedback
Campoverde Change Model
● Visibility Zone o Reflect on the processo Introduce performance incentiveo Allow for further innovationo Continue with engagemento Honour the pasto Prepare for future
People don’t fear change, they fear hard work
Scott Peck
Culture is your centre of gravity
You don’t change culture, you grow it
The change process
TTOODDAAYY
HISTORY FUSTORY
START
STOP
VISION
RESPONSE-ABLENESS
VALUES
CONTINUECONTINUE
The road to success is
always under
construction
The Leadership Partnershipwww.treetops.co.za
www.treetopsleadership.blogspot.com