JWI 555 Organizational Change & Culture, week9 summary, 6/9/13
Whew ! What a
marathon this week was. I found this week to be among the most
challenging to keep up, given the many materials to read, digest and
synthesize. The end result is rewarding for sure as I gained whole new
frameworks and perspectives on managing change & communication. Key
insights I learned this week include:
(1) Complexity is the
enemy of change. Sources of simplicity include dysfunctional structures,
product/service proliferation, unplanned process evolution and
unproductive managerial behavior.
(2)
Antidotes include Customer-centered perspective, Five change tools,
Communication Clarity, Results focused demand making, Delayering, moving
from command & control style of management to empowering direct
reports to make their own decisions.
(3)
Layers must be prevented as they insulate from reality, slow down
decision making, distort information and smother initiative.
(4)
Be a change agent (Welch, podcast WK9) - See the future no one sees;
Take intrinsic Authority, Don't wait; Have the guts to bet your careerl;
assemble followers to go for it; exude excitement to lead and be a part
of a change initiative; be open to change; forget yesterday's game and
look at every day afresh
(5) Management objective is not just to increase shareholder value but to gain trust of all stakeholders (McKinsey, 2009). Key stakeholders should include employees, customers, suppliers, communities, the press, unions, governments, civil society. Decision
making, compensation practices, performance management must shift from
shareholder-centric to multi-stakeholders centric focus.
(6) Manage People to lead change - Hire, Develop & Promote Talent; Fire under-performers and resisters
(7) Leadership skills & behaviors essential to driving change include
(i) Look forward to where change will be most urgently needed
(ii) create and communicate vision for change
(iii) mobilize support for change effort
(iv) make clear demands for results to be achieved, give honest performance feedback
(v) organize and direct people in ways that they can make change happen
(vi) communicate openly, honestly across org levels and boundaries
(vii) master at least one change methodology and use it widely to generate best results
(viii) overcome barriers and resistance
Continuously improve change-capability in the firm by improving your own skills as a leader and a manager.
There are numerous applications of these valuable principles I foresee at work and in life. Simplification through de-layering is something I can apply immediately with instant results.
detailed takeaways below
Dr DP
JWI 555 Organizational Change & Culture, Week9, 6/9/13
******************************************************
I. Simplify Organizational Structure (WK9 L1)
**********************************************
To develop change capability into a true competitive advantage, go beyond change tools, and focus on
- simplification
- delayering
- spans of control
- people management (performance assessments, rewards, training & development)
Build change capability steadily much like building health and strength going to the gym
(A) Simplify
************
Complexity is the enemy of change - makes it harder and slower to get things done
Too many steps, meetings, stakeholders, layers, products
Takes too long to make decisions.
Simple requests don't get action.
when we amplify the complexity by adding unnecessary layers of management,
confused accountability, slow and unclear decisions, garbled communications,
and lack of focus, it's our own fault. Maybe we don't create ecological disasters,
but we do create small ones in our own organizations every day (Ron Ashkenas, 2010)
To keep the acquired management teams happy, each brand was allowed to run itself in a semiautonomous way.
As the number of brands grew, it became increasingly more difficult to pull together the financials
(which each brand was doing differently, using different systems and assumptions) at the end of every month and quarter.
Eventually,
the company found that it had more finance people than sales people,
since so much work was required to reconcile the numbers.
The
company then spent several years and many millions of dollars to
integrate systems that should have been put together as new brands came
on board.
(Ron Ashkenas, 2011)
Sources of complexity
**********************
(i) Dysfunctional structures
****************************
- structures have too many levels, redundant functions, unclear roles, disconnected silos
-
positions, levels, departments added in response to environmental
shifts, acquisitions, professions & ego needs of key employees
- slow communications
Causes:
focusing on structure before strategy; designing based on people &
personalities; building mechanical rather than organic organizations
Simplify:
differentiate between core and context; take customer perspective;
consolidate similar functions & tasks; prune layers & increase
spans of control
(ii) Product & Service proliferation
*************************************
- products, features, services added
without reducing overall portfolio of offerings, streamlining support requirements
- large inventories
Causes:
Adding products, not subtracting; creating products without planning
support; selling products that don't integrate with products in customer
environment
Simplify: Analyze portfolio; rationalize and reduce products; partner with customers in designing products
(iii) Unplanned process evolution
**********************************
Build process with too many steps, loops, approvals, missing metrics
don't manage them as they evolve and grow
Causes: Local differences; multiplication of steps; informality of process; lack of cross-functional cross-unit transparency
Simplify: Identify best practices; map and redesign processes; use six sigma, rapid results, work-out
(iv) unproductive managerial behavior
*************************************
Causes: giving vague assignments, not holding people accountable, miscommunicating, choosing conflict avoidance over candor
Simplify:
ask for feedback, cut unintentional complexity; get a coach/mentor;
practice and test communications; beware complexity causing behaviors
Approaches to simplification include
*************************************
Customer oriented perspective
Five change tools
Effective Communication
Results focused demand making
Organizations evolving with Technological/managerial innovation
****************************************************************
moving from silo'd independence to interdependence
"cannot change anything without changing everything" John Kotter
Delayer the organization (layers of Sweaters put you out of touch with environment)
*************************
Function of a manager
*********************
traditional static view: controlling manager aggregates work of subordinates
************************
Optimal level of interaction, attention and control:
5-8 direct reports per manager
higher number means increase in cost, slow decision making, distorted information flow
modern dynamic view: shift from control to adding value
********************
reduce layers and increase direct reports up to 10-15; no more than 8 layers
Do not micromanage employees, relinquish control, empower subordinates
Look
for other ways to add value - increase customer contact, develop
strategy, make demands, communicate with clarity, improve process,
coach, distribute accountability
Direct reports step up - take on greater accountability, show more initiative, make more of own decisions
Faster, more flexible, empowered organizations that are able to change
II. Layers must be prevented (Welch, video, JWI 555 Wk9)
*****************************
(1) Layers slow down everything such as decision making
*********************************************************
Speed is a competitive necessity in today's marketplace.
Layers work against speed of action - they slow things down.
More layers means more rubber stamps.
(2) Layers distort change communication
*****************************************
While communicating change:
Layers add spin, interpretation, buzz, distorting information.
(3) Layers smother and bury startups within large firms
********************************************************
Piles of bureaucrats, processes deprive entrpreneurial ventures that need oxygen and sunlight to survive
(4) Layers cause underutilization & meddling
**********************************************
When there are lots of layers, it may mean managers have too few people reporting to them.
Managers babysit their direct reports or do their job for them.
This kills morale and initiative
Managers should have 8-12 direct reports
Senior leaders should have more direct reports
(5) Layers pop up with growth but must be prevented where possible
******************************************************************
Even when there is no growth firms tend to add layers.
They give people an illusion of Promotions though without raises.
Think of every layer as a bad layer
Much like avoiding danger in a hurricane, if you see a layer coming, batten down the hatches and escape to higher ground.
III. What kind of person is a change agent? (JW podcast Wk9)
**************************************
They are different
10% of employees
everyone has an idea to change
very difficult for anyone to change anything without power
down in the org, big ideas face org inertia and authority structures that stand in the way
more and more employee engagement
hold authority - hire promote fire reward followers for buying into their change program
See a future that no one does
******************************
leaders see things others dont see
see what is better for org
see the need for change
see a discontinuity coming at them
they want to organize and get ahead of curve
to survive
paranoid nutcases
smell something a long way off
Have the guts
**************
courage to bet career, jobs
believes in bold action
willing to face consequences
messy
know in gut they are right
ambiguity ok
bias action
real guts
Assemble followers
*******************
chemistry that galvanizes
turns people on - want to be there, right thing to do, rewarding
love the direction - intensity, caring (not whip people over)
group of people who buy in
followers
change
brings growth - survival, elixir, better jobs, oxygen to blood, more
and better jobs, new products, global expansion, so much fun and
excitement
growing company - has an electric atmosphere; flat or
sinking firm - biz as usual, victory is hard to see, show up turn the
crank go home
so exciting to lead and be a part of a change initiative
Take intrinsic Authority, Don't wait
See the future no one sees
Have the guts to bet your career
assemble followers to go for it
so exciting to lead a change initiative
IV. McKinsey (Beinhocker et al, 2009)
**********************************
A low-trust environment makes everything about doing business more difficult.
Loss of trust leads to higher costs, lower brand value, greater difficulty attracting, retaining and managing talent.
Regain trust of stakeholders and effectively manage relationships.
Management objective is not just to increase shareholder value but to gain trust of all stakeholders.
Key stakeholders should include employees, customers, suppliers, communities, the press, unions, governments, civil society.
Decision
making, compensation practices, performance management must shift from
shareholder-centric to multi-stakeholders centric focus.
seek ways to exploit the increasing amount of data and computing power.
Understand quantitative tools - function, assumptions, limitations
V. Create change (Welch, JWI 555 video, WK9)
******************
Be Totally open to change
dont live in the past
yesterday means nothing
successes of yesterday
today look at tomorrows game
blow up past
do your thing
way used to do it - resisters; dont spend too much time; see u later ; no place for u in this train
VI.Lead Change through people management (W9L2)
*****************************************
Manage People - Hire, Develop & Promote Talent, Fire underperformers
Performance Assessment & Rewards Drive Change
*********************************************
Performance assessment
- Identify a change leader
- Assess & reward people's performance during an organizational transformation
Hire and promote only true believers and get-on-with-it types
*************************************************************
change leaders make up 10% of the population
*********************************************
- brash, high-energy, paranoid about the future, invent change initiatives or want to lead them, curious, forward-looking
- they ask a lot of questions, "why don't we...?"
- courageous, fearlessness about the unknown
- thick-skinned about the unknown, risk
- make bold decisions without a lot of data
- ferret out and remove resisters
change followers happy to get on with it.
*****************************************
- do what they are measured on
- rewarded for desired new behaviors ie change capability
simlicity, speed, self-confidence (Welch)
**********************************
Identify standards for leadership behavior that drive change and use these as basis for high level promotion decisions
- managerial attributes
- 360 degree feedback
- questionnaires
GE Performance Matrix
*********************
Good leadership behavior & values, Achieved Results => Promote and Reward
Good leadership behavior & values, did not achieve results => provide leadership development, give chances
Bad leadership behavior & values, achieved results => Tough calls - fire if they cannot change
Bad leadership behavior & values, did not achieve results => Easy calls - no future with the firm
Achieve financial results
Exhibit GE values including Speed, Simplicity, Self-confidence
manage, promote, reward
fire resisters even if they achieved results:
- they do not accept change
- personality issue, entrenched emotionally, intellectually, politically
- they lower the morale of people who support change
Reward people for aligning with the vision for change
******************************************************
Soul & Wallet
*************
- money:Differentiated rewards for great work done - key for motivation and retentio
- recognition:Differentiated rewards for great work done - key for motivation and retention
- training: good people want to grow; love to learn and stretch; increased capability, confidence, ambition, achievement
Leadership skills & behaviors essential to driving change
*********************************************************
(i) Look forward to where change will be most urgently needed
(ii) create and communicate vision for change
(iii) mobilize support for change effort
(iv) make clear demands for results to be achieved, give honest performance feedback
(v) organize and direct people in ways that they can make change happen
(vi) communicate openly, honestly across org levels and boundaries
(vii) master at least one change methodology and use it widely to generate best results
(viii) overcome barriers and resistance
Org-wide change capability
***************************
- need common framework and language for change
- train as many people as possible with widespread capacity for action
Best large scale efforts
*************************
- orchestrated from the center
- they propel people into action to produce real results
- deliberately aim to produce measurable change in few months or less
- rolled out quickly across entire company , largely run by in-house people: this the new way we do things
-
interactive and mind-bending: conveys information but influences
behavior; stimulates real dialogue; spur people to question assumptions;
encourage employees to experiment
- place high potentials in leadership roles, force them to stretch and grow: learning drives change
- provides many opportunities
VII. DQ1 - Organization layers impede communication and change
********
VIII. DQ2 - Which leadership skill you find most difficult to implement
*******
(1) Honest performance feedback is critical and would help improve productivity.
Reference: Shore, J. (2008). Four Types of People Who Can’t Hear Feedback.
http://www.thinkbusiness.com/pages/article_downloads/Four_Types_of_People_Who_Can't_Hear_Feedback.pdf
Performance Feedback - whom not to give to
*********************
Jean Shore (2008) described four types of people who may not want to hear “honest performance feedback”:
1) people who have been hurt by feedback and are living in fear that they will be hurt again;
2) people who think they know it all;
3) people who don’t value the opinions of others; and
4) people who are currently in personal crisis.
Providing Feedback - how to give and receive it
*******************
Observe behavior and determine if important feedback needs to be given.
Decide if the person is self-aware and mature enough to receive feedback.
Start with positive messages and then deliver the negative feedback.
If person is not mature enough to handle feedback and the truth, use other mitigation techniques to work around the problem.
(2) A view from a marine who retired and entered corporate life
****************************************************************
Disconnect between commitment to the mission & execs giving themselves bonuses while laying people off
Is there a better way for corporate leadership ?
Honor, Courage, and Commitment - Marine Corps Values (courtesy - FC)
*****************************************************
14 leadership traits, and 11 leadership principles (RP 0103 - Principles of Marine Corps Leadership).
***************************************************
(JJ-DID-TIE a BUCKLE)
Justice - Giving reward and punishment according to the merits of the case in question.
Judgment - The ability to weigh facts and possible courses of action in order to make sound decisions.
Dependability - The certainty of proper performance of duty.
Integrity - Uprightness of character and soundness of moral principles. The quality of truthfulness and honesty.
Decisiveness - Ability to make decisions promptly and to announce them in a clear, forceful manner.
Tact - The ability to deal with others in a manner that will maintain good relations and avoid offense.
Initiative - Taking action in the absence of orders.
Enthusiasm - The display of sincere interest and exuberance in the performance of duty
Bearing - Creating a favorable impression in carriage, appearance, and personal conduct at all times.
Unselfishness - Avoidance of providing for one’s own comfort and personal advancement at the expense of others.
Courage - Courage is a mental quality that recognizes fear of danger or
criticism, but enables a Marine to proceed in the face of danger with
calmness and firmness.
Knowledge - Understanding of a science or
an art. The range of one’s information, including professional knowledge
and understanding of your Marines.
Loyalty - The quality of faithfulness to country, Corps, unit, seniors, subordinates and peers.
Endurance - The mental and physical stamina measured by the ability to withstand pain, fatigue, stress, and hardship.
The 11 leadership principles are;
***********************************
Know Yourself and Seek Self Improvement
Be Technically and Tactically Proficient
Know Your People and Look Out For Their Welfare
Keep Your Personnel Informed
Set the Example
Ensure That the Task Is Understood, Supervised, and Accomplished
Train Your Marines and Sailors as a Team
Make Sound and Timely Decisions
Develop A Sense Of Responsibility Among Your Subordinates
Employ Your Command within its Capabilities
Seek Responsibilities and Take Responsibility
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