Achieving Organisational Change Through Leveraging Internal Networks
Targeting influencers at ALL levels
Impetus for ‘Change’ has Never Been Greater
* http://www.towerswatson.com/en/Press/2013/08/Only-One-Quarter-of-Employers-Are-Sustaining-Gains-From-Change-Management
What does NOT work in changing a culture? Some group decides what the new culture should be. It turns a list of values over to the communications or HR departments with the order that they tell people what
the new culture is. They cascade the message down the hierarchy, and little to
nothing changes.
John P. KotterOrganisational Change Management
Authority
… But 75% or Organisational Change Efforts Fail*
Situation
The Critical Mass has Moved to the Middle…
* Actual data from a 33,000 financial services company
Staff Numbers at Each Level*
CEO
Group Executive
Executive General Manager
General Manager
Executive Manager
Manager/Specialist/Co-ordinator
Analyst/Associate/Representative
Support Officer/Analyst
Admin Support
Office Support
Building Services Support
Executive
The critical mass are now professional
independent workers
Complication
Perc
enta
ges
Hierarchical Level
Survey: Please nominate up to five people who you rely on the most to get your work done
Levels 6 & 7 rely as much or more on their peers than their leaders. They also made up 68% of total staff
‘Top Down’ is failing where it matter most…Complication
Layers of Management to Traverse are Significant …
Staff Numbers at Each Level*
CEO
Group Executive
Executive General Manager
General Manager
Executive Manager
Manager/Specialist/Co-ordinator
Analyst/Associate/Representative
Support Officer/Analyst
Admin Support
Office Support
Building Services Support
Executive
* Actual data from a large strong financial services company
The critical stakeholder groups are 5 Levels or more down from the CEO
Complication
… Sustained influence is most likely at the peer-to-peer relationship level
One-upPeerOne-down
Perc
enta
ge
89% of dependency nominations were within a single level
45% of dependency nominations were peers at the same level
Mutual dependency is lowest at the one level up relationship
Cascading ‘Top Down’ has little chance of working….
Complication
Good News … the Critical Mass is Connected
Engagement @ Network Speed!
…but how to identify the ‘right’ super-connected influencers?...
There is hope…
Resolutions
Targeted Diffusion of the ‘Change’ Message
‘Change Agents’ work in networked teams to engage the ‘disconnected’
Valente, Thomas W. Social networks and health: Models, methods, and applications. Oxford University Press, 2010.
When diffusion starts with opinion leaders, the diffusion occurs more rapidly.
When diffusion starts with randomly selected people, or those on the margins, it is slower.
Resolutions
A Method to Resolution…
Use SNA to identify the set of
Influencers, enterprise wide
1
Enroll peer level influencers into targeted change
initiatives
4
Conduct profile analysis of
‘disconnected’ to identify target
sectors
3
Identify people most distant from
potential influencers (the Disconnected)
2
Please nominate who you rely on the most to get your work done
List of Influencers
List of Disconnected
List of Disconnected
ProfilingDepartment?
Location?Seniority?Tenure?Gender?
Age?Role? Etc.
Peer Level Influencers
‘Top Down’ Change Facilitators
Division xxxRole: abc, zzzSeniority: 7Location: xyz
Resolutions
Identifying Influencers in the ‘Critical Mass’
“With other members of the senior team, they sought out employees at all levels—those who were well connected, sensitive to the company culture, and widely respected—to get their input on the strategy as well as their views on both the design and execution of intended process changes.”
Harvard Business Review Case Study“Cultural Change That Sticks”Katzenbach, Steffen and Kronley
Using Social Network Analysis…
Case Example
Use SNA to identify the set of
Influencers, enterprise wide
1 Please nominate who you rely on the most to get your work done
Top Influencers
Nu
mb
er o
f d
epen
den
cy n
om
inat
ion
s
Case Example
Identify people most distant from
potential influencers (the Disconnected)
2
10,728 received at least 1 nomination
as an influencer
2,618 non-influencers
Identified Network Size = 13,346
18,718 Potentially
Disconnected
Total Staff = 32,064
Case ExampleConduct profile analysis of
‘disconnected’ to identify target
sectors
3
Retail Banking comprise 57.8% of the Disconnected Group, yet only 24.3% of the Connected Group; suggesting an under-representation in the connected group
Case ExampleConduct profile analysis of
‘disconnected’ to identify target
sectors
3
Retail Banking Services - Locations
Victoria is the Region of Retail Banking Services, most under-represented
Case ExampleConduct profile analysis of
‘disconnected’ to identify target
sectors
3
Retail Banking Services – Seniority Levels
Seniority Level 7 of Retail Banking, is the most under-represented
Target: Retail Banking Services, Level 7 Staff, start with Victoria
Case ExampleEnroll peer level influencers into targeted change
initiatives
4
Focus on Retail Banking In Victoria for Level 7 +/- 1
Most Connected/Influential
The Branch Support Manager is best placed to influence the critical mass, followed by team service leaders
Case ExampleEnroll peer level influencers into targeted change
initiatives
4
Initial Focus on Retail Banking Services Level 7 +/- 1
Most risk of being ‘Disconnected’ at levels 6,7,8 in Retail Banking in Victoria
# M
emb
ers
in e
ach
Ro
le
Roles not part of the ‘connected’ group at any level
The ‘New’ Cultural Change by Design
For sustainable change, designed interventions will require more than changing the organisations chart. They will require insights into the networks that underpin them.
Impact – Network Centred Cultural Change Examples
• Major Airline Supply Chain Challenge– Key influencers identified and engaged
• 15% increase in supply chain efficiency• Parts turnaround from 26 days to 13 days
• Petroleum Firm Knowledge Sharing Culture Challenge– Baseline performance measured with repeat study
• 5% increase in reserves identification• Well shutdown avoidance ($750k/day saving)• Increases efficiencies in evaluations ($200k)
• Major Miner Rail Operations Collaboration Challenge– Baseline performance measured
• Key value exchanges identified• Accountabilities built into ‘lean’ Goals
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