Organizational Transformation 2.0

Houston Community College

Transformation Mosaic

SITUATIONAL AWARENESSLeadership

3

How Twitter Users CanGenerate Better Ideas

Thriving in an IncreasinglyDigital Ecosystem

Is Your Business Ready fora Digital Future

MIT Sloan Management Review

Organizational Lifecycle

Survival

Good Management

Good to Great Leadership

PARADIGM SHIFTSChanging Environment

8

Music paradigms

16

QualityCapacityLower Cost

Digital Equipment Corporation

PARADIGM PARALYSIS

17

DEC as Technology Leader

You have probably never heard of it! BUT its remnants are in most of today’s technology

Source: http://web.archive.org/web/20021121125840/ http://www.falvey.org/hot_neg_ch3.shtml

• Firstinterac0vemini-computeropera0ngsystemVMS.• InventedLAN-Ethernetstd(DECnet).• Firstrela0onaldatabase(RDB,ISAM)• FirstemailsoMware(DECmail)• FirstDigitalLinearTape(DLT)drive• 16bit(1968),32bit(1976),64bit(1992)• Computerswith99%up0me• 19892ndonlytoIBMasWORLD’slargestcomputercompany

Demise of DEC

KenOlsen,president–“Thereisnoreasonforanyindividualtowantacomputerathome…Businesswantscomputerswith100%up0me.”(1977)

Source: IEEE Spectrum July 1992

Demise of DEC

itsoonbecameclearthatthenextgenera0on(processors)…BerkeleyRISCandStanforddesignswouldoutperformthefastestmembersoftheVAXfamily,DEC'scashcow.ConstrainedbythehugesuccessoftheirVAX/VMSproducts,theyfaltered

DEC->Compaq…HP

Cardelli OpSys Semantics - MSFT

Research

deCastro Unix - Data General, Alumni

Cutler VMS - MSFT - WNT - XP(64),

XBox

Gray RDB - MSFT Research

Lamport Print Drivers - MSFT

Gettys X-11 Interface - HP Research

Burrows Altavista - Google

DEC Creative Capital

DEC Force Field Diagram

USER FRIENDLY

LOW COST

ORGANIZATIONAL CHANGE

DESKTOP AVAILABILITY CENTRAL PROCESSING

SPECIAL SKILLS

100% UPTIME

MORE TECHNOLOGY

DRIVING FORCES RESTRAINING FORCES

SMALLER APPS

NON-TECH APPLICATIONS

INTEGRATED APPS

ERODING CAUSE-EFFECT LOOP TALENT LOSS <=> INFLEXIBLE CORP. CULTURE

PURITANISM (ENGINEERING)

TALENT/IDEAS DEEP-ROOTED CULTURE

Organizational Lifecycle

Survival

Transform

Change (Good to Great)

The Birth of Silicone Valley

Shockley kept changing objectives and products. Shockley – control knowledge, transistors to big corp Noyce – share knowledge, transistors in every home.

William Shockley 1956 Nobel physics

Shockley Semiconductor

Victor Grinich Jay Last

C.S. Roberts Gene Kleiner Gordon Moore Julius Blank Jean Hoerni

Robert Noyce

Knowledge is power. Knowledge shared is power multiplied. Robert Noyce

Robert Noyce

It is not enough to simply say our objective is to grow and make profit – everyone is trying to do that …

I’d rather develop something that noone has done yet. Robert Noyce

Grinnell College Alumni Gary Cooper – Actor Herbie Hancock – Musician Robert Noyce – Founder Fairchild, Intel Walter Koeing – Actor (Chekov) Peter Coyote – Actor, screenwriter John Garang – President of South Sudan Thomas Cech – Nobel Prize Chemistry

Shockley

Fairchild

Intel

Team Lifecycle

Organizational Lifecycle

Survival

Transform

Change (Good to Great)

ORGANIZATIONAL RECONHCC Situational Awareness

29

30

Innovative 1%

Hierarchy 59%

Market 20%

Parochial 20%

Cultural Assessment

31

Management 52%

Procedures 19%

HR Practices 15%

Finances 5%

IT 4%

Other 6%

Performance Barriers

Organizational Diagnostic

32

Realignment Pockets of strength, feels successful

Start-up Much activity, focus on excellence

1. Low need for change 2. Low urgency (believes it is good) 3. High resistance (uncertainty)

1. High Change (newness driven) 2. High urgency (looking for wins) 3. High resistance (excellence)

Sustaining Success Strong team, is successful

Turnaround Isolated successes, stagnant

1. Low need for change (use existing model of success)

2. Low urgency (already good) 3. Low resistance (confident)

1. High change (needs driven) 2. High urgency (looking for wins) 3. Resistance Low (seeking direction)

URGENCY

RESISTANCE

HIGH

HIGH

LOW

LOW

Customer (Student) Service?

TRANSFORMATIONChange

35

Time (years)

Stakeholder Value

($)

Long-Term Growth inStakeholder Value

Good Citizen

Product Innovation

CustomerManagement

Operational Effectiveness

Short-wave Long-waveMid-wave

12-18 months 12-36 months 24-54 months

Customer Management

Processes

Operations Management

ProcessesInnovationProcesses

Regulatoryand SocialProcesses

1 2 3 4 5

Think …

Think … comments?

• Notbroken?-alwayssomethingtobedone(SamPalmisano,CEOIBMCorp.)

• Rowboatmentality(SirHowardStringer,CEOSonyCorp.)• Heartajacksvs.cancer(FareeedZakaria,journalist)• Informa0onempowersdistributeddecisionmaking

(Prof.ThomasMalone,MITSloanSchool)

• Techcan’tmakeourdecisionsforus(HMKAbdullahIIibnAlHussein)

Eight Steps to Transformation

1 Establish a Sense of Urgencyo Examine market and competitive realities o Identify potential crises, challenges

2 Form Guiding Coalitiono Commission influential group o Build a team environment

3 Create a Visiono Clarify a shared direction o Develop strategy to achieve vision

4 Communicate the Visiono Use multiple channels o Teach new behaviors for teaming

5 Empower Others to Acto Remove obstacles to change o Align org structures thru evolution

6 Plan for Short Term Winso Have visible improvements o Communicate the wins

7 Consolidate Improvementso Embed new culture in policies, practice o Expand change for further alignment

8 Institutionalize the HCC Wayo Link success to the HCC Way o Develop new leaders

Leading Change: Why Transformation Efforts Fail, John P. Kotter, 2007.

Transformation Timeline

G65RetreatOrganizationalIdentity(Nov7)

FacultySenateOrgIdentity(Nov14)

G65BuildingonStrategySession(Nov24)

Oct AprMarFebJanDecNovSept2014 2015

May Jun Jul

BoardRetreatVisionStatement(Dec6)

BoardRetreatTransformationPresentation(Dec11)

G65DefiningCentersofExcellence(Dec18)

G65PresidentPitchForCOE(Jan26)

G65OrgStructure(Mar5)

G65PresidentPro.BusinessCanvass(Jul1)

StateoftheCollegeCOEUnveil(Apr13)

AllCollegeDayCOEUnveil(Apr10)

Presidents/Deans/Directors/G65TransformationOrgStructure(Apr5)

G65MBTI(Jul30)

G65TeamBuilding/BusinessModel(31)

Chatw/ChancellorAllCampusesFeedbackSessions(Apr20-24)

StudentAdvisoryFeedbackSession(Apr24)

G31ChargetoG13OrgStructure(Mar5)

OrganizationalAssessments(Sept–Oct)

“Itisgenerallymucheasiertokillanorganizationthanchangeitsubstantially.”

KevinKelly,OutofControl,1994

Kevin Kelly, Out of Control

Note

MATRIXFlexibility

42

Matrix Forms

• Employeeeffortslimitedtofunc0onalgroups

• Parochialpriori0es,valuesandmission

FunctionalMatrix

BalancedMatrix

ProjectMatrix

• Parochialpriorities,valuesandmission

• Employeesmovebetweenfunctionalsandgroups

• Employeemembersofmultiplegroups

• Groupsstriveforbalancefocusingonuniversalmission

• Functionalleadersdefinestaffingandopsdetailswithinsystemguideline

Matrix Properties

• Leveragefunctionaleconomiesofscalewhileremainingtask-focused

• Focusemployeesonmultiplebusinessgoals

• Improvesdistrict-widefocus

• Informationflowincreasethroughlateralchannels

• Distributesdecision-making

WEAKNESSES

• Decouplesauthorityandresponsibility

• Decouplessinglestrandverticalchain

• Createsambiguity

• Likelyincreasesresistanceduetoperceivedlossofstatus,authority

Sy,Thomas.ChallengesandStrategiesofMatrixOrganizations:TopLevelandMid-LevelManager’sperspectives.HumanResourcePlanning,28.1(accessfromBoozAllen.com)

STRENGTH

Challenges to Managing in a Matrix

Top 5 Challenges Iden0fied

0

25

50

75

100

MisalignedGoals AmbiguousAuthority Silo-FocusedEmployees

Mid-LevelMgr Top-LevelMgr

MISALIGNED UNCLEAR AMBIGUOUS LACK OF SILO-FOCUSED GOALS ROLES AUTHORITY GUARDIAN EMPLOYEES

HOUSTON COMMUNITY COLLEGE Transformation 1.0

46

INPUT FROM STAKEHOLDERS HIGHLIGHTSResearchHighlights:

9Trustees

13ExecutiveTeamMembers

63WholeSystemPlanningParticipants

4,275Students

3,262Faculty/Staff

751CommunityMembers

DATA COLLECTION HIGHLIGHTS2. StudiesandResearchtoInformtheProcess

OrganizationalIdentityStudy

CommunityValueStudy

StudentResearch

UrgencyAssessment

TaskInventory

OrganizationalHealthStudy

TRANSFORMATIONBROAD ENGAGEMENT (ADMIN, FACULTY, STAFF, STUDENTS)

1. Research--AnalysisandApplication2. WorkgroupDevelopment(boardvision;interdisciplinary

team;leadership)3. WholeSystemPlanning4. VisioningWorkshop5. OrganizationalAlignment–Values&Competencies6. StrategyMapping7. VisionAgreementSession(board)8. TransformationPlantoAchieveVision

WHATDIDWELEARN?

1. Theneedtoleverageoursizeandresources.

2. Theneedforaclearvision.

3. Theneedtoeliminateinefficiencies.

4. Theneedtoalignprioritiesacrossthesystem.

5. Theneedtocreateopportunities.

RESEARCH FINDINGS

Identity

Purpose

Positivity

Vision

HCC Vision

HCCwillbealeaderinprovidinghighquality,innovativeeducationleadingtostudentsuccessandcompletionofworkforceandacademicprograms.

Wewillberesponsivetocommunityneedsanddriveeconomicdevelopment

inthecommunitiesweserve.

HCC’S BUSINESS MODEL

• Amoreefficientcollege.

• Amoreinterconnectedcollege.

• Amoreresponsivecollege.

• Amorealignedcollege.

• Amoreinnovativecollege.

• Amoresuccessfulstudentandgraduate.

TOMORROW

FOCUSWecannotaffordtoinvestinthehighestlevelsofallthesamethingsateachofourcolleges–itiscostlyandinefficient.

Wemustshiftourfocustooneofexcellenceandinnovation.

Thisrequiresustorethinkandshareinnewanddifferentways.

ORGANIZATIONAL SHIFT

EXCELLENCEWewillfocusourresources,talentsandattentiononhighdemandareasthatprovidethegreatestreturnforourstudents,community,industryaswellasthecollege.

ACHIEVING EXCELLENCE

CenteringExcellence&ConnectingCommunityConceptualView

CreationofSystem-wideAcademicInstituteofExcellence:• Efficientschedulingofcoursesections• Increasedcourseavailabilityinresponsetostudentdemand

• Morecollaborativeapproachtofacultydevelopment

• TimeforCollegeAdministrationtofocusonstudentexperienceandInstitutesofExcellence

ACADEMIC EXCELLENCE

CURRENT

• Diffusedfocusoninstructionaldelivery

• Operationalculture

• Broadapproachtomarketing&outreach

• Limitedalignmentwithindustrydemands

FUTURE

• Laser-focusedleadershipforinstitutesofexcellence

• Innovativeculture

• Strategicapproachtomarketingandoutreach

• Aligninstructionalprogramswithindustrydemands

ORGANIZATIONAL DESIGN

Organizational Transformation 2.0

Houston Community College