Successful Organizational Change
Transcript of Successful Organizational Change
LeadingAge Michigan & PACE Association of Michigan ~ 2016 Annual Conference
Successful Organizational ChangeDR. DANIEL T. GOWDY
SUNSET RETIREMENT COMMUNITIES AND SERVICES
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AGENDA• The Nature of Change• The Culture of Change• Change Management Approaches• The Change Process• The Agent of Change• The Leader as Architect, Steward, Teacher
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“There is nothing permanent except change.”
~ Heraclitus (500 B.C.)
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In a world that is ever changing, organizational leaders both respond to
change and plan for it
~ Nicholas Rescher, 1996
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Learning to lead is … Learning to manage Change
~ Warren Bennis
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In spite of the broad understanding of the importance of change, successful organizational change continues to prove difficult.
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Hard Wired to Resist Change• Leadership is an intentional change process • Stressful to employees• Feelings of uncertainty
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Perhaps the only person who likes change is a wet baby.
~Anonymous
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The “Urge” to Change…..
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Change is……..Hard
…..Expensive
…..Time Consuming
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Change is DisruptiveDisrupts…• People
• Systems
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Culture Regulates Change• Like an Iceberg, Culture
carries most of its weight and bulk below the surface
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2120, the extra degree
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Laws of Nature Tell a Different Story
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Change is……..Hard
…..Expensive
…..Time Consuming
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Reasons For Change• Sameness is fast track to mediocrity
• Opens door to growth and excitement
• Without it your competition will pass you by
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The World is Moving Fast
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What is Compelling You to “Jump the Curve?”
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Management vs. LeadershipLeading Successful Organizational Change
NOT
Managing Successful Organizational Change
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Change for Change SakeChange Management
Or
Continuity Management
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Change for Change Sake
• Understand the so you know what to change and what to keep.
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Change for Change SakeSuccessful Change Requires Continuity
• No Change without continuity
• Unrelenting change is basically anarchy
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The Change ProcessLeadership and the Change Process
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As good as we are, how can we get better?
Are we going to get any better or is this it?
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20 Years in the Making
“Most ‘overnight success’ stories are about twenty years in the making”
- Jim Collins
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Enjoy or Reform
“When I arise in the morning I am tornby the twin desires to reform the world
and enjoy the world. This makes it hard to plan the day”
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The Change ProcessOrganizational Change Errors
• Complacency
• Insufficient guiding coalition
• Inadequate vision
• Under-communicating
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The Change ProcessOrganizational Change Errors
• Obstacles block new vision
• Not enough short-term wins
• Declare victory too soon
• Change not anchored in culture
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Organizations and Change
“Change must not be thought of as a property of organization. Rather organization must be understood
as an emergent property of change.”
~ Tsoukas, H., & Chia, R. (2002)
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The Change Process7 Levels of Change at WorkLevel 1: EffectivenessLevel 2: Efficiency Level 3: Improving Level 4: CuttingLevel 5: CopyingLevel 6: DifferentLevel 7: Impossible
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The Change Process
Framework for Organizational Change
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Organizational Change Management
Definition:
“A set of planned actions that increase the probability of successful implementation.”
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Learning toCHANGE
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Learning to CHANGE
5 Ways of thinking About Change
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Yellow-Print Thinking…assumes that people change their standpoint only if their own
interests are taken into account, or if you can compel them to accept certain ideas.
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Blue-print Thinking…assumes that people or things will change if a clearly applied result is laid down beforehand.
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Red-Print Thinking…assumes that people and organizations will change if the
right HRM tools are employed and used correctly.
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Green-Print Thinking
…assumes that the terms change and learning have very similar meanings; therefore, people change if they learn.
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White-Print Thinking…assumes that everything changes autonomously,
of its own accord.
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The Change ProcessWarning
Urgency not Crisis/Chaos
Have you met these people?
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The Change ProcessIt Starts with One
Changing Individuals Changes Organizations
Programmed to resist Change
Mental Maps
Barriers to breakthrough these
Mental Maps:
Failure to see need for change
Failure to move
Failure to finish
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The Change ProcessOrganizational Role in Individual Change
Key Roles:
Socialization
Training
Programmed change
Interpersonal interactions
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The Change ProcessDimensions of Individual Change
Changeability
Depth of change required
Time
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The Change ProcessManagement Efforts to Change Individuals
Feedback
Granting Autonomy
Support/Encouragement
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Organizations Change When Enough Individuals Change
Emphasizing collective over the individual in times of uncertainty may not promote the individual growth necessary to realize/bring
about successful organizational change.
~ van Dierendonck, Stam, Boersma, de Windt & Alkema (2014)
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Self-efficacy of Followers
… enhances Leadership Power
Power – complex relationship between motives & resources of the FOLLOWER and motives & resources of the LEADER.
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The Change Agent
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Dealing with Change on a Personal LevelThe three challenges of making personal change:• Escaping the gravitational pull of the status quo• Surviving the emotional roller coaster of transition• Creating a structure to enable and sustain change
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The Change ProcessPositive Self-Management Strategies• Understand the change• Clarify your own expectations• Expect some “change pain”• Surface your resistance early and constructively• Celebrate your efforts
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The Change ProcessCoping Strategies• Flight• Freeze• Fight• Fake it• Face up to the loss
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Smooth Sailing…..
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…Perils of Change are Below the Surface
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Personal Transition
Emotional roller coaster
What am I giving up or
losing?
What’s in it for
me (WIIFM)
?
• What’s going to happen to me?
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The Here and the There
What does THERE look like?
&
How do we get there?
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Leading Successful Change•Teacher
•Architect
•Steward
Senge, P. (1990)
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Leader as Teacher
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The Key to ChangeThe key is using solid learning theory to deliver engaging and effective learning to ultimately have a real impact.
- John Kotter
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Learning Organizations are "continually expanding its capacity to create its
future" (Senge, 1990, p. 14).
Leader as Teacher
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Leader as TeacherLearning Organization
• Systems Thinking• Personal Mastery• Mental Models• Shared Vision• Team Learning
OrganizationalConsideration
Source: Peter M. Senge. The Fifth Discipline: The Art & Practice of the Learning Organization
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Leader as TeacherLearning Organization
Characteristics of Learning Organization• Focus on what Matters• Growing• Teams better than Individuals• Growing Knowledge Base• Emerging Visions• Transparency between Levels• Inquiry Encouraged, Few Sacred Cows• Collegial / Mutual Respect• Free to Try, no on censored for mistakes
OrganizationalConsideration
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Leader as TeacherLearning Organization
5 overlapping Levels• Individual Learning• Team Learning• Cross-functional Learning• Operational Learning• Strategic Learning
OrganizationalConsideration
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Leader as Teacher
Aspi
ratio
n
Source: Peter M. Senge. The Fifth Discipline: The Art & Practice of the Learning Organization
Learning Org
OrganizationalConsideration
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Lessons from Adult Learning:Assumptions
• Why do I need it• Resist• Wide range of experiences• Ready for real-life applications• Motivated by real-life solutions and internal
pressures (i.e., job satisfaction, self-esteem, quality of life)
IndividualConsideration
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Lessons from Adult Learning:Process
1. Preparation2. Climate3. Mutual Planning4. Needs of the Learner5. Program Objectives6. Learning Experiences7. Materials8. Evaluations
IndividualConsideration
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What Really Moves People: How Learning Changes People
1. Engage the heart and mind of the learner.
2. Engage the learner in a continuous process… as opposed to a one-time learning event.
3. Utilize technology enable and accelerate this process on a large scale.
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Leader as Architect
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The Leader as Architect
Organizational Application
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Leader as Architect
Organizational Application
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Leader as Architect
IndividualConsideration
Organizational Commitment
1. A psychological state that binds the individual to the organization, makes turnover less likely
2. Stabilizing force
3. Binds the individual to a behavior
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Leader as Architect – Commitment to Change
Affective – because they WANT toNormative – because they OUGHT toContinuance – because they NEED to
Employees with higher commitment to change are more likely to exhibit
championing or cooperative behavior towards change
IndividualConsideration
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Leader as Architect – Commitment to Change - Behavior
Affective and normative commitment to change are predictors of employee behavior towards change (Ford, 2004).
• Compliance behavior – demonstrating minimal support for a change by going along with the change, but doing so reluctantly• Cooperation behavior – demonstrating support for a change by exerting effort when it comes to the change, going along with the spirit of the change, and being prepared to make modest sacrifices.• Championing behavior – demonstrating extreme enthusiasm for a change by going above and beyond what is normally required to ensure the success of the change and promoting the change to others.
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Employee Commitment to Change Steps:
1) Identifying personal and organizational benefits to the change.
2) Increase supervisor trust.
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Leader as Architect – Coaching
Meets people where they are and helps them move to where they want to be.
Helps people to change without telling them what to do.
IndividualApplication
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Leader as Architect – Coaching
IndividualApproach
Non-directiveNon-advice-givingDiscovery-basedOpen questionsReflective listeningGoal settingGoal achievementOwnership
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Leader as Architect – Coaching
And you want help closing the GAP.
Where you are now … … is not where
you want to be.
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Leader as Architect – CoachingOptions for getting help …
AdviceMentoringTrainingCoaching
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Leader as Architect – CoachingAdvice Coaching
Telling you what they think you should do
Asking • where you are • where you want to go • when you want to start, • how you want to get there
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Leader as Architect – CoachingMentoring Coaching
Providesguidance, direction, and career advice.
Asks about your experience and helps you set and achieve goals.
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Leader as Architect – CoachingTraining Coaching
• Helps you apply knowledge and skills you already have (or are learning).
• Presentsnew information and teaches new skills.
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Leader as Architect – Coaching
• What did the coach do to “meet” the person where they were?
• In what ways was the person empowered?
• When did the coach give advice?
Coaching Demonstration
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Leader as Steward
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Leader as StewardTrust
Organizations that have a large number of trusting relationships within them have a greater likelihood of achieving organizational effectiveness and stability.
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Leader as StewardTrust
• Personal trust – degree of trust between employee and supervisor (correlated to performance, altruism, intent to quit, and job satisfaction)• Evaluated on three dimensions;
• ability, • benevolence, and • integrity
Organizational Consideration
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Leader as StewardTrust
System trust – degree of trust between employees and supervisor (correlated to organizational
commitment and commitment to the leader’s decisions)
Organizational Consideration
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Leader as StewardTrust
These two levels can very but are not completely separate. For example, when supervisors communicate a message from upper management, employees may attribute the message and its effects to the supervisor. This can result in an increase or decrease of supervisory trust even if the supervisor was not involved in the creation of the original message.
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Speed of Trust
Stephen M. Covey (2006)
Organizational Consideration
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Transactional vs. TransformationalOutside-In vs. Inside-Out
Intrinsic Motivators• Autonomy• Mastery• Purpose
~ Drive by Daniel Pink
IndividualApplication
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The Change ProcessEngagementEngagement is unique. The engagement is what Kotter calls the “truth” is more critical than the facts, figuresand models. It’s more than technology tricks and visual candy. Finding the path to it should be our No. 1 priority.
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Start with a StoryStart the transformation with a story. We’re wired for stories. They just work.
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StoriesStories impact individuals and organizations deeply by creating a common language, inspiring through perspective and just getting people to talk. Stories open doors.
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See-Feel-ChangeWhen I give presentations nowadays, I tell stories, and I act them out. I’ve learned to be a one-act play. And it works. Stories inspire people. They can move employees emotionally, helping to connect the dots to a business strategy. I tell CEOs to just get out there and tell real stories about the things they feel or believe in.
- John Kotter
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What we RetainThe Percentage (%) Of Information That We Retain When We:
10% Read 20% Hear30% See50% See and Hear70% Discuss80% Experience
95% S H A R E
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SharingWhatever you share — especially within the next 24
hours — will help you learn, remember, and use what you have found most useful about
succeeding in a changing situation.
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Within the next 24 hours, think of 2 people with whom you can share what you have learned. Doing so may help someone else change and
win!
“An organization or familychanges only when
enough people in it change”
LeadingAge Michigan & PACE Association of Michigan ~ 2016 Annual Conference
It is not the strongest who thrive, nor the most intelligent,
but those Leaders who • Motivate others to Persevere (Stewardship), • Inspire Champion behavior (Architect), &• Achieve Organizational tipping point by
developing individuals (Teacher).
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Your Story ?
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ReferencesBennis, W. G. (2003). On becoming a leader (Rev. ed.). Oxford: Perseus.Black, J. S., & Gregersen, H. B. (2008). It starts with one: Changing individuals changes organizations. Upper Saddle River, N.J.: Wharton School Pub.Caluwé, L. d., & Vermaak, H. (2003). Learning to change: A guide for organization change agents. Thousand Oaks, CA: Sage.Caluwé, L. d., & Vermaak, H. (2004). Change paradigms: An overview. Organization Development Journal, 22(4), 9-18. Clampitt, P., Williams, M. L., & DeKoch, R. J. (2002). Embracing uncertainty: The executive's challenge. Journal Of Change Management, 2(3), 212. Coch, L., & French, J. R. P., Jr. (1948). Overcoming resistance to change. Human Relations, 1, 512-532. Retrieved from doi:10.1177/001872674800100408Conner, D. R., & Patterson, R. W. (1982). Building commitment to organizational change. Training & Development Journal, 36(4), 18. Cummings, T. G., & Worley, C. G. (1997). Organization development and change. Cincinnati, Ohio: South-Western College Pub.Erwin, D. (2009). Changing organizational performance: Examining the change process. Hospital Topics, 87(3), 28-40. Ford, J. H., II. (2004). Assessing employee attitudes towards organizational change in substance abuse treatment agencies. Ph.D. 3143080, The University of Wisconsin - Madison, United States -- Wisconsin.
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ReferencesGustafson, D. H., Sainfort, F., Eichler, M., Adams, L., Bisognano, M., & Steudel, H. (2003). Developing and testing a model to predict outcomes of organizational change. Health Services Research, 38(2), 751-776. Retrieved from doi:10.1111/1475-6773.00143Herscovitch, L., & Meyer, J. P. (2002). Commitment to organizational change: Extension of a three-component model. Journal of Applied Psychology, 87(3), 474-487. Retrieved from doi:10.1037/0021-9010.87.3.474Kotter, J. P., & Cohen, D. S. (2002). The heart of change: Real life stories of how people change their organizations. Boston, MA: Harvard Business School Press.Laub, J. (2004). Defining servant leadership: A recommended typology for servant leadership studies Paper presented at the 2004 Servant Leadership Research Roundtable Virginia Beach, VA. Lewin, K. (1947). Group decision and social change. In T. M. Newcomb & E. L. Hartley (Eds.), Readings in social psychology. New York: Holt.McBeath, B., & Meezan, W. (2006). Nonprofit Adaptation to Performance-Based, Managed Care Contracting in Michigan's Foster Care System. Administration in Social Work, 30(2), 39-70. Retrieved from EBSCO Host. doi:10.1300/J147v30n02•05Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurment of organizational commitment. Journal of Vocational Behavior, 14, 224-247. Poole, M. S., & Van de Ven, A. H. (2004). Handbook of organizational change and innovation. New York: Oxford University Press.Porter, L. W., Steers, R. M., Mowday, R. T., & Boulian, P. V. (1974). Organizational commitment, job satisfaction, and turnover among psychiatric technicians. Journal of Applied Psychology, 59(5), 603-609. Retrieved from doi:10.1037/h0037335
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References
Senior, B. (1997). Organisational change. London; Washington, DC: Pitman.Weick, K. E., & Quinn, R. E. (1999). Organizational change and development. Annual Review Of Psychology, 50, 361-386.