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Shown at the Lean Summit 2013 - Lean Transformation: Frontiers and Fundamentals on 5th, 6th & 7th November 2013
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DISCUSSION SESSION
Qn – So, what really triggers organizational
change?
A man working on an oil platform in the North Sea awakened suddenly one night by an explosion. Amidst the chaos, he made his way to the edge of the platform. As a plume of fire billowed behind him, he decided to jump from the burning platform even though jumping is a risky option for the following reasons: It was a 150‐foot drop from the platform to the water. There is debris and burning oil on the surface of the water. If the jump into the 40°F water did not kill him, he would die of exposure within 15 minutes. Luckily, the man survived the jump and hauled aboard a rescue boat shortly thereafter. When asked why he jumped, he replied, “Better probable death than certain death.” The point is the literally “burning” platform caused the radical change in his behavior.
The Burning Platform
Organizational Purpose
Mission Strategic objectives
STRATEGY & GOALS
Leadership Management Employees
VALUES & CULTURE
Business processes Risk and Compliance Technology Infrastructure
PROCESSES & CONTROLS
PEOPLE & SKILLS Skills and Capabilities Performance
management Rewards and
Compensation Learning and
Development
RELATIONSHIPS & STRUCTURE Organization Design Accountabilities External stakeholders
Relationships & structure
Values& Culture
Processes &controls
People & Skills
Strategy & goals
What needs to be re‐thought/re‐ordered to make change happen?
Lewin’s ‘3 STEP’ linear model for organizational change
• Acknowledge feelings and empathise.
• Give people as much information about the change as possible.
• Say what will not change.
• Treat the past with respect.
• Help others see the gap.
STEP 1: Unfreezing(Creating motivation and readiness to change)
• Provide focus and direction.
• Strengthen people’s connections to one another.
• Provide the individual with a specific role in the change process.
• Provide leadership and tenacity.
STEP 2: Change and movement(Guiding through the transition)
• Implement quick requests and highlight successes.
• Ensure the individuals and leaders reinforce the new behaviour.
• Build feedback mechanisms.
• Celebrate.
STEP 3: Re-freezing(Integrating the new point of view)
AS‐IS Organization
TO‐BE Organization
Relationships & structure
Values & Culture
Processes &controls
People & Skills
Strategy & goals
Relationships & structure
Values & Culture
Processes &controls
People & Skills
Strategy & goals
Relationships & structure
Values & Culture
Processes &controls
People & Skills
Strategy & goals
Relationships & structure
Values & Culture
Processes &controls
People & Skills
Strategy & goals
Relationships & structure
Values & Culture
Processes &controls
People & Skills
Strategy & goals
Unfreeze
Freeze
Create readiness for change –1. Question old ways 2. Build a climate for change
Expect uncertainty, searching and conflict
Continually challenge individual behavioursFoster Creativity and Innovation as normative
Lewin refined: non-linear “fitness landscapes”
Long Term Sporting and Business success is ‐
• Paved with small achievements
• Built off strong internal competition
• Informed by scheduled and adhered to decision‐making audits
Dr Veronica Burke [2013] Cranfield University
KEY BEHAVIOURAL COMPONENTS OF CHANGE
Rational
Emotional Political
“Is change right analytically”
“Is change acceptable to all constituencies”
“Is change supported pyschologically in the organization”
S Robbins, 2003, Harvard Business Review, “Leading Change - Why Transformation Efforts Fail”
TRANSFORMATION EFFORTS FAIL...
• Sense of urgency not established and no powerful ‘guiding coalitions’ created
• Failure to involve and educate
• Little systematic planning for ‘short term wins’
• Declaration of change ‘victory’ too soon
• Change not anchored in a new corporate culture and lack of ‘measures’ to justify change
SO, PROACTIVELY DRIVE CHANGE
• Over communicate ‐ promote Q&A and two‐way feedback
• Build Leader stability – via sincerity and honesty
• Explain ‐ continually send message of why change/evolve
• Involve key people [distribute leadership)
• Set standards and targets – clarity, rewards, standards
• Identify [benefits] and measure [outcomes]
Treadwell, 2013
Richard Branson ‘Sport to Business’ Logic*
1. Teamwork is paramount
2. Mentorship matters
3. Be resilient and determined
4. Have Pride and Purpose
5. Delegate wherever possible
*Linkedin comments [3.5 million followers!]