JWI 555 Organizational Change & Culture, Week8 Summary, 6/2/13
This was a challenging week for me with several key concepts to be synthesized.
(1)
From Jack's video I learned the importance of communicating why change
must happen, how change will be done, what is in it for the people and
repeating ad nauseum. This makes perfect sense.
(2) From
W8L1, I learned how to use the five tools for change leadership - best
practice sharing, process redesign, rapid results, work-out and
six-sigma - after taking into account practical considerations such as speed, cost, flexibility, range of problems they can tackle, technical rigor required and produced.
(3)
W8L2 highlighted the 7 elements in effective change-communication:
simplicity, metaphor, using multiple communication channels &
forums, leading by example, explaining inconsistencies, talking but also
listening.
(4) DQ1 gave me a chance to think and act like a CEO in a turn around situation, leading change from the forefront.
(5)
The BP assignment with TeamB helped to pull all the concepts together
and apply in a real life example. Working with TeamB colleagues
Alexandra, Michael & Shalonda helped me learn how to work together
with flexibility and leverage each member's unique strengths.
This
certainly feels much like returning from a gym after a tough "work out"
! I know the rewards will be felt for years to come.
Fantastic week !
Dr DP
JWI 555 Organizational Change & Culture, week8 Summary, 5/29/13
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Change Leadership
******************
As a Leader, use judgment about which tools to use and when in the context of
- specifics of the change to be undertaken
- current and desired culture of the organization
A. Communicate the Rationale for Change (W8 Jack Welch video)
****************************************
Jack Welch - Four steps of change leadership
*********************************************
I. WHY CHANGE ? Environment is different; change is necessary
*************** Rationale for the change is this - there is a new and Real purpose for the company & the people
Problems, concerns & needs of customers exist
Candidly talk about what is not working well and how to improve things
Competitive opportunities and challenges are real
II. HOW YOU ARE GOING TO DO IT ? Build and convey a sense of urgency
******************************* Structure forms of communication and Collaboration
Prioritize change work; endure disruptions
III. WHAT'S IN IT FOR THE PEOPLE ? why this change is good for you ? you can keep the job; get promoted
***********************************
IV.
REPEAT OVER & OVER Be out there & repeat yourself a
million times over and over with same message - till gagging
***********************
Don't change the message with a different flavor; the change has to
mean something real and positive for the firm and the people
B. W8L1 - Apply the right tools for change
*******************************************
Five major change tools that fuel increasing urgency
(i)
Best practices - learn from counterparts; force slow moving insular
orgs to include more relevant data, honest discussion in decision making
Builds urgency around persistent problems that others have found ways to improve
(ii)
Process redesign - requires people from diverse departments to quickly
collaborate and honestly assess how things are best done.
(iii)
Rapid Results - bring together diverse groups of people; set high goals
for fixing important processes; in 100 days or less
(iv) Work-Out - ditto; build an emotional felt sense of urgency
(v) Six Sigma - intellectually understood urgency; improve inefficient processes with precise data
Kotter's Change Leadership Framework
************************************
(a) create urgency
(b) shape a vision
(c) create a guiding coalition to mobilize commitment
(d) generate short term wins
(e) Communicate
Compare change-leadership techniques using
*******************************************
Kotter's framework
Practical considerations
Culture
Create urgency - Fight complacency
**********************************
(i)
Best practices - Share (ii) Process redesign - Cross functional team
work (iii) Rapid Results (iv) Work-Out (v) Six Sigma - intellectually
fight inefficiency
All tools work best when change leader has already
started building and conveying a sense of urgency and a widely held
belief that change is necessary.
Each tool helps build urgency through structured forms of communication and collaboration.
People learn about needs, concerns, problems of customers.
They talk candidly about what is not working well and how to improve things.
Competitive opportunities and challenges are made real.
Shape a vision - iteratively
*****************************
Think, Discuss => research & collect data => prioritize and refine ideas.
Best Practices, Rapid Results - simple, effective, excellent for vision development process
Best practices helps compare vs other orgs
Rapid Results provides fast, real insights into what it takes to achieve measurable change
Both
tools create strategies that pass the tests for effective vision - are
imaginable, desirable, feasible, focused, flexible, communicable
(Kotter)
Fundamentally re-imagine processes through process redesign, Work-Out, Six sigma
Feed valuable insights into the vision creation process
Process Redesign, Rapid Results, Work-Out, Six Sigma - effective ways to carry out a vision once it is in place.
All four techniques are scalable. Six sigma is difficult to scale down.
Rapid Results, Work-Out, Six Sigma have a higher flexibility and scope than Process redesign.
Mobilize Commitment
*******************
Guiding coalition increases the effectiveness of all five change techniques.
Best practices and Rapid Results can be used effectively even without a broad coalition.
Process
redesign, WorkOut and Six Sigma require strong and broad guiding
coalition - cross functional nature, significant investment required
Rapid Results, WorkOut and Six Sigma are project based - key people can be tapped for team leadership or membership
Senior managers can sponsor a team in their area
TownHall Meeting of Work-Out makes it particularly effective in mobilizing commitment.
Dramatically lift engagement through
**************************************
Open, candid discussion with senior management,
compelling sight of on-the-spot decision making,
getting questions answered quickly,
good ideas getting rewards
Generate Short Term Wins
*************************
Rapid Results & Work-Out are designed to achieve results quickly
One of these should be a part of any change effort.
Process redesign can also be used to generate short term wins.
Rapid execution of the new process is key.
Short term wins contribute to ongoing feeling of urgency
- they keep change efforts and results at the forefront of people's attention
If 6-12 months are taken to see any change, sense or urgency decreases, undermining overall change initiative.
When people experience short term wins they see their efforts as worthwhile
This cements people's commitment to the change initiative
Communicate the change vision
******************************
Critically important in driving and supporting change
Each of the change methodologies fosters change-focused communication among people who may not otherwise be in contact.
Overall communication plan must take into account the approach you choose.
Change leaders should be actively involved in addressing, launching, sponsoring best-practice sharing and results-focused teams.
Results should be communicated widely throughout the organization in support of the change efforts.
Work-Out brings large and diverse groups together for in-depth discussions.
Town
Meeting provides the opportunity for everyone - most junior to most
senior - to engage in an unprecedented kind of open conversation.
Practical Considerations:
********************
Select a change-leadership technique after taking into account factors such as Speed, Cost, Flexibility, Range of problems tackled, technical rigor required and produced.
For high speed: Process redesign, rapid results, work-out (not best practices, six sigma)
For lower cost: Except six-sigma, other 4 techniques are suitable
For flexibility: use best practices sharing, rapid results, work-out (not process redesign, six sigma)
For technical rigor: use six sigma
Cultural implications
******************
1. To transform from inward focused and arrogant state to a future state open to new ideas and new approaches to learning, use best practices sharing
2. To create boundarylessness across silo'd organizations, use process redesign
3. To shift from top-down activities focus to results focus, use rapid results & process redesign. Breakthrough hidden barriers of change-resistance. Give voice and dignity to front line people. Recognize and empower them.
4. To eliminate non-value-add work and stifling bureaucracy, and lead to simpler and efficient organizations, use Work-Out (along with process redesign, launch of rapid results projects, six sigma acceleration). Empower people throughout the organization to focus on results. Promote openness and candor to bring transparency in decision making.
5. To transform a rigid bureaucracy with analytical rigor, use six sigma and process redesign. Use six sigma to deepen a work-out. Spark a great deal of energy in the organization and return the organization to customer focus and winning once again.
Jack Welch Quotes
****************
"I’ve
always believed that when the rate of change inside an institution
becomes slower than the rate of change outside, the end is in sight.”
"Change before you have to.”
C. W8L2 - Communicating Change
*******************************
Communication is a key piece of up-front work + long-term change effort
************************************************************************
Of
Kotter's 8 steps for leading change, communication effort is most
likely to fall short (based on client debriefings post major
acquisitions & transformations)
"the single biggest problem in communication is the illusion that it has occurred" George Bernard Shaw
Urgency => coalition=>vision=>communicate=>empower=>short term wins=>consolidate=>culture
UC - Urgency Coalition
VC - Vision Communicate
EW - Empower Wins
CC - Consolidate culture
(i) Establish sense of urgency
(ii) Create guiding coalition
(iii) Develop a change vision
(iv) Communicate the change vision => Lay the foundation for change
(v) Empower employees for broad based action
(vi) Generate short-term wins
(vii) Consolidate gains and produce more change
(viii) make it stick in the culture
Pitfalls in communicating change
*********************************
# people in Major change initiative means 100, 1000, 10000, 100000, 1000000 or more people:
- feel some urgency
- understand the change vision and how they will participate in it
- feel committed to it
- take new actions that are aligned with the vision
- learn as change unfolds
Guiding coalition - spends hundreds of hours to chew through data, assess alternatives, fine tune vision, grow in commitment
*****************
Rest of org is expected to understand and follow the change in a fraction of time, with a fraction of information.
What goes wrong in communicating effectively?
*********************************************
(i) Not enough communication (not enough charge)
****************************
simply not enough communication to create real understanding, change in behavior.
- A few big announcements and a series of newsletter articles are not enough.
- communication plentiful at senior levels, but never penetrates down into the org.
change-related information gets lost inside all the information that people must process.
(ii) Too much too soon, (overwhelmed)
***********************
Flood of information in communication channels at beginning of change effort, but the talk quickly trails off.
Creates impression that change initiative is no longer a priority.
(iii) It's all in the newsletter (reliance on one or two channels)
*********************************
Any medium of communication has strengths and weaknesses.
Using just one or two will leave change initiative exposed to weaknesses.
Newsletter may not answer questions or be effective in communication => does not secture committed action
(iv) Happy talk that is unclear (evasion, despite some who will lose)
********************************
Executives may not know which jobs will be lost or how lives may change.
Too often they conceal complexities under a blanket of happy talk.
On one hand they say "this is a merger of equals and everyone benefits".
On the other hand the actions they drive will mean some people will certainly be out of work in 6 months.
There are going to be winners and losers.
Effective organizational transformation requires leaders who are able/willing to share tough news.
Giving employees bad news helps them to be in a position to make plans.
Honest communication reduces time lost to anxiety, uncertainty, speculation.
(v) Mixed Messages (actions speak louder than words)
******************
- Different communicators are on different pages.
HR says one thing, sales says another and management yet another.
- Disconnect between words and actions of key leaders
who is being promoted?
where is the money going?
7 Elements of Good Change Communication in a change initiative (what it is not)
********************************************************************************
(i) Establish sense of urgency (urgency rate isn't high)
(ii) Create guiding coalition (not the right group)
(iii) Develop a change vision (bad idea, vision is too blurry)
(iv)
Communicate the change vision & Lay the foundation for change
(people don't listen carefully to information about new vision)
Element#1- simplicity, speed, self-confidence
**********************
no technobabble
convey complex patterns of change in a few evocative words
Element#2 - Metaphor, analogy, example
**************************************
make it memorable with emotional impact
visual, verbal images convey a great deal of information quickly
human brains are wired to understand pictures and stories
Element#3 - Multiple forums
***************************
use a wide variety of ways to communicate
share emotions to change behavior: personal, interactive, one-on-one discussions, informal meetings, work-outs
*********************************
share facts: email, newsletters, intranet, informal meetings, large events, project launches, work-outs
************
align channel with the message and purpose of communication
static one-way media: share information in a consistent way with many people
Element#4 -Repetition
**********************
Nobody gets the message the first time they hear it
Talk about the vision and direction constantly to the point of gagging
Element#5 - Leadership by example
**********************************
Build credibility in the change effort by having the entire guiding coalition and key managers walk the talk
Reward people who embody the new direction
If sacrifices are being asked of employees, senior management needs to make them too.
Decisions must consistently reflect the new direction even if they challenge old norms and positions
Element#6 - Explain seeming inconsistencies
********************************************
Recognize, Address and explain mixed signals
Be willing to share tough or bad news
Element#7 - Talk but also Listen
**********************************
Good communication flows both ways - give and take
two-way discussion key to build understanding and engagement
Talking & Conveying information is only one aspect
Equally important to listen to concerns, how change is going, how it could be improved
(v) Empower employees for broad based action
(vi) Generate short-term wins
(vii) Consolidate gains and produce more change
(viii) make it stick in the culture
Basic elements of a communication plan
***************************************
Change leader and guiding coalition deeply engaged in communication planning & execution
- identify messages, information, theme to be shared; pivotal events, roles of key leaders
- clarify stakeholders: internal, external
- say when communication will take place
- say how it is to be carried out, staged over a period of time
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