Change Management Presentation Helsinki

Be the Change Helsinki, January 8-9, 2009 GLOBAL NETWORK FOR EXPLORING, CREATING AND CELEBRATING CHANGE

So, what’s you greatest challenge? „ Can‘t you ever relax?“

Warming up & introduction of participants I like sustainability I don’t change if not needed I seek for changes in my way of working I adapt new things easily I am ready to change when required I feel change resistence when I am expected to change Place yourself mentally on a grid for the two dimensions – external and internal changeability 5 4 3 2 1 0 1 2 3 4 5 5 4 3 2 1 0 1 2 3 4 5

Warming up & introduction of participants Normally How do you see change? How du you assess yourself? What makes it right for you to stand at the position where you are? Is there any direction you would like to take? What would it take from you to go there? The people you work with, where would you place them on this grid? I like sustainability I don’t change if not needed I seek for changes in my way of working I adapt new things easily I am ready to change when required I feel change resistence when I am expected to change

Warming up & introduction of participants I like sustainability I don’t change if not needed I seek for changes in my way of working I adapt new things easily I am ready to change when required I feel change resistence when I am expected to change Many people believe they are HERE… … but believe others around them are HERE… or …HERE or …HERE

About Change The dilemma with change is that everyone likes to talk about it, but very few have insight into their own willingness to change, let alone their ability to influence change. Those who see the need for change often want others to change first. That applies to adversaries and onlookers, but also to analysts and practitioners. Why is this the case? (Chris Spies, 2006) How to construct an environment in which people in conflict can safely explore new ideas towards a better future?

Some Aspects of Change Nature of change Why change has become important What is change: how to understand it? how to describe it? Shift of the change paradigma Energy of change Ethics of change Levels of change: individual, group, org, wider system Change as change of thinking How to enhance the change of thinking Tools & techniques and methods to facilitate change Practice of change: How to walk the talk

Why organizations Change? Wordl is changing faster than organizations There are 3 powers: Globalization Technology Information

” Speed of changes accelerates in all fields:” knowledge, information flow, trends, innovations, globalization.... Collecting & hunting- society ..Fusion- society? Bio- society? Knowledge society Industrial society Agriculture- society amount of changes 6000 eaa... ...1600 1700 1800 1900 2000 2025 2050 Emerging Unpredictaple Virtuality Individualism Change in our society

Short History of Human Culture

Eri tyyppisi ä muutoksia: Outcome of change Transformative /discontinuous Gradual, Incremental ADAPTATION -> internally initiated -> best practices live, -> small cuts, outsourcing -> evolution RE-CREATION -> frame braking/new frames -> fast change of all basic elements -> downsizing, mergers -> revolution, crisis REORIENTATION -> frame bending -> new strategy, new business area -> new identity/values TUNING -> improving and enhancing -> development projects -> training on new culture -> pilots, pioneering Nature of change Proactive Reactive Different change types All change has all these elements. How do you see change in your organization?

Individual -> chance is internal process -> reflection of growth Group -> facilitation -> focused to dialogue Organization -> management -> focused to decicions & measurement Wider system -> megadrends -> uncontrolled Change Levels

Principles of Change Principles to observe in change processes: 1. Organizational change is a process of human interaction created by dialogue. Each actor has a distinct „mental model“ of the change process which is generated by individual life-time experience, personal filters and person-specific emotions. 2. Organizations are complex social systems (so-called “non-trivial machines”). The behavior of an organization in a change process cannot be predicted with absolute certainty; it can only be optimized. 3. Successful organizations are driven by passion and responsibility of their members; they depend on deep alignment around common purpose and a continuous development of internal capacity to embrace uncertainty.

Concept of Change

Thinking leads our actions:

- What is the mental model behind our thinking?

Idea of man

Concept of learning

Concept of leading

Concept of organization

Concept of change

What is our mental model for organizational change?

Re organizing

Re structuring

Re engineering

Re design

Re birth

Reform/renew

Fine tuning

Shift

Transformation

Project

… what else?

Why organizations Change?

ENVIRONMENTAL reasons:

Fashion pressure

Mandated pressure

Geopolitical pressure

Market decline pressure

Hyper competition pressure

Reputation & credibility pressure

INTERNAL reasons:

Growth pressure

Cost structure

Integration & collaboration pressure

Identity pressure

New broom pressure

Power & political pressure

How has your work changed? How the working culture has changed? In modern work high quality collaboration is more and more needed. Working context and topics are more complex. There are less right answers and no “one right way” to do things. More people are involved and needed for success of an organisation. More creativity is required and less hierarchy expected. Changes are even faster. Nature of change - Why change has become important Change at Work Simple Individual Complex Collabo-rative Traditional working Project working Modern working Team working

Change of actions

change of thinking

TRADITIONAL NEW

Language (questions, interaction) Thinking Action (behaviour) Change as change of thinking Instruction Action (behaviour) Change at Work

Statement 1 A - Organization is a macine B - Organization is an organism Statement 2 A - Decision and implementation are same thing B - Decision and commitment are two different things Statement 3 A - Capital & resources rest on money, machines and buildings B - Capital & resources rest on competencies, learning & relations Statement 4: A - Leading by tasks and job descriptions B - Leading by enableing commitment Statement 5: A - Predictability is high and easy B - Predictability is low and difficult Statement 6: A - Changes in environment are in control B - Changes of environment are not in control Statement 7: A - Organization is constructed by teams/units, documents and charts B - Organization is constructed by networks, relations and conversations Statement 8: A - Leading by managing things and motivation people B - Leading by connecting people and costructing thinking Change paradigm Here you are 8 statements: Choose A or B according to your ecperience in your work at your organization: Which statement is more true? Result: How many A? How many B?

Two dimencions of organizational change

danger!:

Often the new structure is followed by old culture.

> people feel failure.

Important:

How to design a change process that is based on new expected working & leadership culture?

CULTURAL: From where CULTURAL: To where STRUCTURAL: From where STRUCTURAL: To where What to leave away? What to learn away? What do we stop doing? What to keep: What is good & strong? What is functioning? What new do we need? What do we need to learn?

Organizational change might have 2 main directions which are deeply connected:

Stuctural (or strategic) change (WHAT WE DO and WHICH TOOLS WE USE)

Cultural change (HOW) way of working, leadership style, entrepreneurship, hierachy structure, decision making, self-directiveness...

-> New structure requires working new culture

-> New working culture needs new structures

Changing Paradigms

Changing Paradigms (1)

Translating The language of the organization The language of a department The language of a team The language of interaction The language of the situation The language of the culture Market economy, globalization Values, vision, mission, strategy Outcomes, processes, products Working methods, work division, team rules, targets ’ Atmosphere talk’ Time, place, persons Translating Translating Translating Translating Language and Change

* From The Fifth Discipline Fieldbook by Peter M. Senge, Art Kleiner, Charlotte Roberts, Rick Ross, Bryan Smith The Ladder of Inference

Imagine... Imagine that everybody in your organization could see the future as it unfolds. Imagine that you had the ability to paint the future in disctinct colors. Imagine that that these colors would be the colors of success, satisfaction and pride. Imagine that everybody in in your organization had the same dream – would that dream become reality?

It is possible... Because organizations are nothing else than a product of our collective imagination. If you want to implement change, you have encourage people to imagine the future of their organization. Together, collectively. This process is called Appreciative Inquiry (AI)

The Power of Imagination

Has a Deep Impact on Human Systems

The DNA of Appreciative Inquiry

Paired Exercise

Change Model 1: The 4-D Process of Appreciative Inquiry

Change Model 2: The Kuebler-Ross Model of Change Time Emotion Shock Denial Anger Bargain Depression Acceptance

Change Model 2: The Kuebler-Ross Model of Change

Human Needs in Change: Max-Neef Subsistence Freedom from Want (Income/Livelihood) Protection Freedom from Fear and Abuse (Ground Rules) Affection Freedom from Rejection (Dignity/Teamwork) Understanding Freedom from Uncertainty (Information Access) Participation Freedom from Exclusion (Inclusivity) Leisure Freedom from Exhaustion (Stress Reduction) Creation Freedom to Create Your Own Future (New Ideas) Identity Freedom To Be Proud of Yourself (Self-Esteem) Freedom Freedom from Coercion (Autonomy)

Redifine RESISTANCE Why people resist for change? - Do they? What is the good they are figthing for? How do you redifine change resistance? Change resistance?

Redifine RESISTANCE Why people resist for change? - Do they? What is the good they are figthing for? What it is then? How do you redifine change resistance? How would you use the new definition in your change project? Change resistance?

:: Change Needs Engagement :: Change Model 3: John Kotter’s Change Model

Eight reasons why many change processes fail :

Allowing too much complacency

Failing to build a substantial coalition

Understanding the need for a clear vision

Failing to clearly communicate the vision

Permitting roadblocks against the vision

Not planning and getting short-term wins

Declaring victory too soon

Not anchoring changes in corporate culture

:: Change Needs Engagement :: Change Model 3: John Kotter’s Change Model 1. Establish a sense of urgency 2. Create a coalition 3. Develop a clear vision 4. Share the vision 6. Secure short- term wins 7. Consolidate and keep moving 8. Anchor the change 5. Empower people to clear obstacles

Changing Paradigms (2)

Features of a Complex System

Rich interconnections

Lots of redundancy

Non-equilibrium (at the edge of chaos)

Auto-poietic

Can only be understood as a whole

Levels of Complexity in Organizations Level of Complexity Type of Response Management Principle Examples Chaotic (not knowable) Act-Sense- Respond Crisis management Any kind of sudden crisis Complex (knowable/ retrospect) Probe-Sense- Respond Whole Systems Change Web 2.0 Complicated (knowable/ prospect) Sense-Analyze- Respond Systems Thinking Post merger integration Simple (known) Sense-Categorize- Respond Standard Operating Procedures Simple production processes

Ralph Stacey’s Decision Matrix

Measuring Tool

This tool enables you to

Understand how a change project is perceived and understood

Confront perceptions of different stakeholders

Information Is the project known? Feasibility Is the project considered realistic? Attraction Do people buy in? Legitimacy Is the project perceived as really necessary?

Change management Project: 1. Planning 2. Implementation 3. Measuring IMPORTANT: Kotter’s 8 steps Planning and schedules Known and predictable Change Facilitation Process: 1. Preparation 2. Starting change journey 3. Living the change journey 4. Developing skills to work in constant change IMPORTANT: Common principles Forums and dialogue Awareness and sensitivity Unknown and unpredictable Mechanistic and repeating work Small groups plan Employees implement the plan Complex and thinking work All construct and implement plans Change management & leadership

” It is essential for leaders to understand the change process. Moral purpose without an understanding of the change process is moral martyrdom. Having innovative ideas, and being good at the change process, is not the same thing. Indeed, the case can be made that those firmly committed to their own ideas are not necessarily good change agents because the latter involves developing commitment with others who may not be so enamoured by the ideas.” Michael Fullan: Understand the process of change

6 guidelines for understanding the process of change:

The goal is not to innovate the most, but rather to innovate selectively with coherence;

it is not enough to have the best ideas, you must work through a process where others assess and come to find collective meaning and commitment to new ways;

(3) appreciate early difficulties of trying something new — what I call the implementation dip. It is important to know, for example, that no matter how much pre-implementation preparation, the first six months or so of implementation will be bumpy;

(4) redefine resistance as a potential positive force. Naysayers sometimes have good points, and they are crucial concerning the politics of implementation. This doesn’t mean that you listen to naysayers endlessly, but that you look for ways to address their concerns;

(5) reculturing is the name of the game. Much change is structural, and superficial. The change required is in the culture of what people value and how they work together to accomplish it;

(6) never a checklist, always complexity. There is no step-by-step shortcut to transformation; it involves the hard day-to-day work of reculturing

Michael Fullan: Understand the process of change

What does it mean to be a change agent (or change leader)? What is the role of change agent (or change leader)? What are the skills and competencies of change agent (or change leader)? What are the tools of change agent (or change leader)? What are the important questions change agent (or change leader)? 6 roles of change leaders: Director Navigator Caretaker Coach Interpreter Nurturer The role of change leader/agent

1. You can't mandate what matters 2. Change is a journey not a blueprint 3. Problems are our friends 4. Vision and strategic planning come later 5. Individualism and collectivism must have equal power 6. Neither centralization nor decentralization works 7. Connection with the wider environment is critical for success 8. Every person is a change agent Complexity of change process Fullan’s (1993) eight basic principles about change:

Fullan (1999) provides eight new lessons about guiding change: 1. Moral purpose is complex and problematic 2. Theories of management and theories of change need each other 3. Conflict and diversity are our friends 4. Understanding the meaning of operating on the edge of chaos 5. Emotional intelligence is anxiety provoking and anxiety containing 6. Collaborative cultures are anxiety provoking and anxiety containing 7. Attack incoherence connectedness and knowledge creation are critical 8. There is no single solution. Craft your own theories and actions by being a critical consumer. Pair talk: What do these lessons tell to you about your change challenge or about leading change? ” To deal with complexity is not to control the change, but to guide it” (Fullan)

Tools for Staff Involvement in Change

:: Change Needs Engagement ::

Creating engagement means!

Widening the circle of involvement

Connecting people to each other and strategy

Creating collaboration for action

Create democratic process for strategy alignment

Creating Engagement Means

A B C ? D 1. Preparation: -Getting prepared for change journey: known and unknown -Exploring & understanding reasons and alternatives -finding common mind set: balance between top-down & bottom-up -Choosing change models -Finding right partners -Agreeing the rules and principles -Making first plans -Discovering change forums 2. Starting the change journey: -Getting everybody involved and engaged by joint planning, -Understanding A to B journey -First moves & actions towards the goal 3. Living the change journey: -Living the new reality -Using strengths -Solving problems measuring and changing the change -Becoming aware what works and what doesn’t 4. Creating skills for working in constant change: -Learning from the experience, -Developing new skills, -Being prepared for future changes, -Being able to chnage things fast Change Model 4: Phases of complex change process

Change Model 5: Process Model of Change Facilitation

Change Model 6: Theory U (Otto Scharmer) suspending redirecting letting go Seeing with fresh eyes Sensing from the field Prototyping the new by linking head, heart, hand Crystallizing vision and intention embodying enacting letting come Presencing connecting to Source Downloading past patterns Performing by operating from the whole VoF Open Will VoC Open Heart VoJ Open Mind

Changing Conversations as We Go Through the U 1 Downloading: Talking nice 2 Debate: Talking tough 3 Dialogue: Reflective inquiry 4 Presencing: Generative flow Speaking from what I think Divergent views : I am my point of view Adaptive system (say what you think) Speaking from seeing myself as part of the whole From defending to inquiry into viewpoints Self-reflective system ( reflect on your part) Speaking from what they want to hear Polite routines, empty phrases Autistic system (not saying what you think)

Speaking from what is moving through Stilness, collective creativity, flow Generative system (identity shift: authentic self)

Relevant: Does it matter to the key stakeholders involved?

Right: Have you got the right dimensions? Does the microcosm mirror the whole?

Revolutionary: Can it change the system? Do you address the systemic root issues?

Rapid: Can you do it quickly?

Rough: Can you do it small scale?

Relationally effective: Are you leveraging the existing networks and competencies?

Replicable: Can you scale it?

Prototyping – Critical Questions

Work on 6 change models in personal cases Step 1: The group identifies 6 personal case studies Step 2: The six change models are assigned to the six groups Step 3: The groups make sense of their assigned change model and prepares a brief description Step 4: The group runs the specific case through the change model and prepares a presentation Step 5: Presentation and discussion of all 6 cases (10 minutes presentation, 5 minutes Q&A)

World Café