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Aligning Organisational Development with

Business Transformation

Presented by Johan GreeffTreetops Management & Development

Consultants (Pty) Ltd info@treetops.co.za ; (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