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Managing Organizational Change

Practical Strategies For Leading During Turbulent and Challenging Times

The Main Objective Maximizing Value to Your CommunityFrank P. Saladis PMP, PMI Fellow Past President NYC Chapter, Past Chair PMI EDSIG, Community Involvement Lead - IT & Telecom COP

#Frank P. Saladis PMPBackgroundAT&T Long LinesAT&T BCS and Corp. ITSCisco Systems Professional ServicesInternational Institute for LearningPast President PMI NYC ChapterAuthor -10 booksCommunity Involvement Lead IT & Telecom CoPFounder International PM DayPMI Person of the year 2006

#2A Thought About Why We Are HereLeadership 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:Community Bringing 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.Engagement Listening to, and building on, diverse viewpoints enables creativity and generates new possibilities and opportunities

#Session ObjectivesProvide a foundation for developing strategies to manage organizational change effectivelyProvide techniques that will improve the community leaders ability to create value adding changeImprove the capability to create a change ready teamApply tools and techniques that will enhance personal leadership effectiveness.

#Quote of the DayThere is no force more powerful in modern business than productivity

UTC CEO George David (United Technologies Corporation)#Human Pathology A Management MetaphorLeaders and ManagersDiagnose problemsDetermine the organizations illsPrescribe courses of actionFirst, do no harm a fundamental precept for physicians since Hippocrates is appropriate for business leaders as wellChange an organization through an understanding of its formal and informal attributes Its organizational DNA#Leadership Lessons Learned from Skilled PhysiciansThe 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 PerformanceStrategic clarity and coherenceArticulated and communicated required capabilitiesResource AlignmentContinued investment in capabilities critical for successSupportive organizationStructureIncentivesDecision rightsSkill setsCultureHow Ready are you for Growth? Booz & Company, Ashok Divakaran and Vinay Couto#Eight Elements of Organizational DesignFormalDecisionsMotivatorsInformationStructureInformalNormsCommitmentsMid-setsNetworks#You cant simply shift people around and expect to truly change the way they workPMI | Presentation Title#Lets Get SettledIntroductionsNetworkShareRelax a bitListen

Change seats

#Indicators That Life Is About To ChangeMerger, Acquisition, DivestitureNew product or serviceA new leader, boss, managerNew technologyNew projectNew requirementNew customer________________

#Organizational Change Within Your Organization or CommunitySignificant changesPlannedUnplanned (surprises)Impact of the changeShort 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 UsThe Key Competencies of a Project Manager

Communications Skills-verbal, written, textLeadership SkillsOrganizing Skills-planning, time managementInterpersonal SkillsNegotiating Skills-Diplomacy and mediatingTeam Building SkillsTechnical SkillsEmphasis on professionalism in planning and execution #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 peersIf 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 ChangePeople 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 ChangeScenarioValue if Everyone Adopts the ProcessValue if no one adopts the processProcess change that impacts a workgroup of 15$ 125,0000Technology change that impacts 150 employees$ 780,0000Transformational initiative that impacts 1,500 employees$ 1.655,0000A 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 equipmentDr. Harold Kerzner, Ph.d#Organizational Level Impact of Poorly Managed ChangeCosts:Productivity plunges (deep and sustained) Loss of valued employees Reduced quality of workRisks:Impact on customers Impact on suppliers Morale declines Legacy of failed change Stress, confusion, fatigue Change saturation

#Achieving The Desired ResultsThe essence of change management is to encourage and enable the individual transitions resulting from a project or an initiativeAt the most basic level, if individuals don't adopt and embrace a change, results will not be achievedThe more effectively we can enable and encourage those individual transitions using change management, the more successful our projects and initiatives will be. #Change Management AssessmentDeveloping your personal plans to improve how you manage change

#Assessing Your Change Management Skills Score 1,2,3 or 4 for each questionI try to anticipate and lead change within my organizationI make full use of the latest worthwhile IT developmentsI take any competitive, technological, and market changes very seriouslyI look for opportunities for radical as well as continual changeI like to be different and seek productive ways of creating difference

6. I take an open minded approach toward new ideas and possibilities7. I link change to any known needs of the customer8. I keep my change philosophy simple and concise9. I involve customers and suppliers in my plans for change10. I make a full and careful business case for changes and change projects

#Assessing Your Change Management Skills11. I break change projects down into manageable components12. I consult widely in the process of deciding on strategy and action13. I obtain peoples agreement to the actions demanded of them14. I use and develop teams as the basic units of change management15. I use quick-fix changes for instant results early in the change program16. I plan well ahead for the long-term payoffs of change17. I am careful not to create over-optimistic expectations18. I seize the opportunity to reward, celebrate, and encourage successful change19. I make sure everybody knows the answer to Whats in it for me?20. I have effective and adaptable contingency plans available#Assessing Your Change Management Skills21. I anticipate adverse reactions and plan how to deal with them22. I use well-designed pilots and experiments to test my change plans23. I share relevant information with colleagues and staff as soon as possible24. I work closely with like-minded people who are eager to change25. My own behavior is flexible and highly adaptable to changing needs26. I encourage people to speak their minds openly and to air their concerns

27. I tackle resistance to change promptly, fairly, and vigorously28. I use quantitative measurement to obtain the results I want29. I review and revise the assumptions that underline the change plan30. I ensure that thorough training keeps people up to date with change31. I start the next change project as another draws to a close32. I use self-appraisal to check on myself and the organization

#Analysis32-64 : You are resisting change or are unsure of its potential benefits. Overcome your fears and learn to plan for change65-95: You understand the need for change Now you must develop your skills to achieve it successfully96-128: 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#It is not necessary to change. Survival is not mandatory.

~W. Edwards Deming #Change is inevitable - except from a vending machine. ~Robert C. Gallagher

# Prepare yourself and your team to become change ready

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

#Predictions Whats Coming?Look aheadYour careerProject management methodsThe next PMBOK Guide 900 pages?New credentials ACP? PgMP?TechnologyPMI - What is changing?The global economyEnergy#Dealing With ChangeChange is almost always disruptiveIt can be traumaticPeople often avoid it if they canIt is part of organizational life

#Zero defects is an alien concept in Managing change and transition.

If people waited until changes could beperformed perfectly, they would nevermake the change

No such thing as an error free approachBe Tolerant of Mistakes#Thats Inconvenient!#

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Change occurs through visionAnd bold ideas!#

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#38The effective leader offers the team positive and optimistic predictions that the dream will be realized

Noticing Small ChangesEarly Helps You Adapt ToBigger Changes That Are To Come#

Who Moved My Cheese?#The quicker you let go of old cheese,the sooner you find new cheese.

Movement in a new direction helpsyou find new cheese.

Old beliefs do not lead you to newcheese.Cheese Philosophy#

Imagining Myself Enjoying New Cheese EvenBefore I Find It Leads Me To It -Haw

#Lessons Learned About ChangeIf 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?#

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Sources of ChangeEnterpriseEnvironmentalFactorsNewcausesCreates new opportunityInfluencesWants, needs,#Top Drivers of Change Consumer preferencesEnergy costsTax policiesReverse innovationNon-traditional competitorsExtended enterprise risksExponential growth in information flowLong-term growth strategy / Globalization Succession planning exit of baby boomersGeneration values BB, GenX, Gen Y, MillenialsTechnology

Bloomberg Business Week #Change Can Be DestructiveChange can kill the spirit of an organizationChange often leaves job commitment lying wounded and weakChange puts heavy demands on the organizationPeople tend to avoid changeManaging Change and Transition, Harvard Business Essentials#Stages of Reaction To ChangeShockDefensive RetreatAcknowledgmentAcceptance and adaptation

Managing Change and Transition, Harvard Business Essentials, Harvard Business School Press#Lessons Learned About ChangeChange involves numerous phasesSkipping steps only creates an illusion of speedCritical mistakes in any phase can be devastating, slow momentum, and negate previous gainsEven the most capable leaders often make at least one big errorHarvard Business Review on Change, Leading Change, John P. Kotter#Lessons Learned About ChangeMost successful change efforts begin when:You look very closely at your companys competitive situation, market position, technology, and financial performanceYou observe trends, declining margins, and emerging marketsYou communicate this information broadly and dramaticallyYou motivate people to engage in aggressive cooperationHarvard Business Review On Change, Leading Change, John P. Kotter#Key Points About ChangeDont under estimate the difficulty of driving people out of their comfort zoneDont over estimate your success in increasing the urgency of a changeHave patience. Dont eliminate the preliminaries Change demands leadership. Beware of too many managers and not enough leadersHarvard Business Review On Change, Leading Change, John P. Kotter

#Paving The Way for Successful ChangeHow Do You Become Change Ready?#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?

ThinkDifferently#5353Change Can Charge Up an OrganizationChange is part of organizational lifeChange is essential for progressChange opens doorsChange encourages creativity and innovationChange can create the momentum to reinvent an organization

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#Transition Management:Remove Doubt, Cynicism and DisillusionmentProvide employees with a strong sense of purposeJustify the challenge of the changeProvide a vision and mission that will inspireEmployees wont get emotional about increased market share or 20% reduction in costCreate a genuine belief in the need to change#Barriers to EmpowermentEmployees understand the Vision and want to make ita reality but are boxed inFormal StructuresMake it difficult to actBosses discourageActions aimed atImplementing thenew visionPersonnel and informationSystems make it difficult to actA lack of neededSkills underminesactionSource John P. Kotter, Leading Change, Harvard Business School PressRelationship Management#Leadership: Set Expectations IntentionallyAssign responsibility for resultsHold people accountableAssigning responsibility indicates a level of trust between leader and team member Assigned responsibility is associated with personal worth and abilities #LeadershipAn organization is change ready when:Leaders are respected and effectivePeople feel personally motivated to changeThe organization is non-hierarchical and people are accustomed to collaborative work

#Negotiation and Conflict ResolutionCommunicate RelentlesslySpecify the nature of the changeExplain whyExplain the scope of the change, even if it contains bad newsDevelop a graphic representation of the change project that people can understand and hold in their headsPredict negative aspects of implementationExplain the criteria for success and how it will be measuredExplain how people will be rewarded for successRepeat, repeat, and repeat the purpose of change and actions plannedUse a diverse set of communication styles that is appropriate for the audienceMake communication a two way proposition#A Basic Enterprise Change ModelCompany culture, values, and behaviorVision and Business imperativesCommunicationLeadership (to drive change)ExecutionFollow-up#A Project / Program Change ModelBusiness imperativesClearly defined objectivesLeadership Change Control processCommunicationExecutionFollow-up#The Handwriting On the Wall -HawChange happensAnticipate changeMonitor changeAdapt quickly to changeChangeEnjoy changeBe ready to change Quickly and enjoy it again and again

Who Moved My Cheese? Spencer Johnson, M.D G.P. Putnams Sons, New York

#Conclusions and Summary:

The Main Objective

Maximizing Value to the Business#Stop focusing on what you cant control and address what isImportant Your business and your projects#Taking ActionThree main areas of leverageImprove processesImprove the effectiveness of human resources (human capital)Working smarter through leadershipCross training greater flexibilityPromote an adaptive attitudeUtilize technologyIncreased efficiency#Lead The WayBuild a multi-year productivity improvement planMore efficient and faster methodsTraining Leadership, influencing, innovationReplacement of old technologyBusiness justification for new projects, products, and services focused on customer benefits and value to the organization#A Plan of ActionDetermine how exposed your business isReview and update your business planPlanning is continuousIf you are not planning, you are planning to failReview your cash flow situation

Prioritize your financial obligationsObtain payments and collect unpaid billsTake appropriate cost cutting measuresControl inventoryReview staffing requirementsMaintain a positive outlookConsider discounts#A Plan of ActionInvest in your employees through performance reviews, coaching, mentoring, communicating, trainingAcknowledge excellent workExamine your leadership style and adjust to create a committed and change ready organization

#Summing UpEnlist the support and involvement of key peopleDevelop a realistic implementation planSupport the plan with consistent behaviorDevelop an enabling structureCelebrate milestonesCommunicate relentlessly

#International Project Management Day7 November 2013www.internationalpmday.orgWe 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 MaterialManaging Change and Transition Harvard Business EssentialsConquering Adversity Christopher NovakA Survival Guide to The Stress of Organizational Change Price Pritchett and Ron PoundFiring Up Commitment During Organizational Change, Price PritchettWho Moved My Cheese? Spencer Johnson M.D. G.P. Putnams Sons, New YorkHarvard Business Review on Change, Harvard Business School Press

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