Today's projects build tomorrow's organisation
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Today's projects build tomorrow's organisation

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The average life cycle of organisations has changed from 90 years in 1935 to 12 1/2 years. The absorption of new (information) technology is one of the core competences to stay competitive. Many ...

The average life cycle of organisations has changed from 90 years in 1935 to 12 1/2 years. The absorption of new (information) technology is one of the core competences to stay competitive. Many organisations are facing problems when implementing new (information) technology solutions.

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Today's projects build tomorrow's organisation Today's projects build tomorrow's organisation Document Transcript

  • Since the seventies of the last century, information and communication technology (IT) developments have increasingly marked changes in organisations. As a result the ways in which organisations are organised, cooperate, conduct business and communicate with their suppliers and customers have changed significantly in the last decades. As such these changes are responsible for the blurring of what used to be strict boundaries between organisations. The terms place and time now have an additional virtual dimension. Changes in which IT plays an important role have increased enormously and the speed in which they succeed one another is breathtakingly fast. The Internet connects almost the entire world. IT solutions enable to order products at home or at any other location, to book a vacation, make flight reservations, look at houses and to consult an encyclopaedia, to name just a few examples. In the book ‘The World Is Flat’ Thomas Friedman describes the digital world and which IT solutions are (partially) responsible for ‘flattening’ the world. Organisations should be able to organise their business in a different way, supported by IT solutions. In order to continue to be competitive organisations must introduce new IT solutions rapidly and properly, in order to meet the corporate objectives. However, it appears to be easier said than done; a fact illustrated by many studies and publications. These indicate that organisations are confronted with many problems and score poor results when introducing and adopting new IT solutions. This stagnates the development and the competitive position is at risk. References -Friedman, T.L. (2005). The World is Flat: A Brief History of the Twenty-first Century. Published by Farrar Straus & Giroux. 08 February 2010 | Changing IT in six 1
  • Leon Dohmen is principal management consultant having over 17 years experience in the ICT industry in a variety of sectors. In this period Leon has built up a broad and deep knowledge about developing and implementing IT-solutions concerning information management, application management, IT infrastructure management, IT service management and outsourcing. During his career Leon became specialised in (organisational) change programs. For this specialisation Leon has worked out a number of publications. Also he teaches his specialisation at the Rotterdam Business School for the module Management of Technology. 2
  • The module Management of Technology is a core module of the MBA-programme of the Rotterdam Business School. The content, structure and flexible delivery of the programme will provide you with the range of knowledge and skills which you will require to develop an MBA. The picture above shows an overview of the total MBA-programme and the position of Management of Technology. The oval shapes are referring to the core lectures of Management of Technology within the Logica internal study programme. 3
  • Content of the presentation The average life cycle of companies is decreasing. This presentation shows an overview of the current era where globalisation and technology are playing a crucial role in organisational change. Some companies survive, some (will) not and some companies struggle for their survival. It will be explained how companies can develop change-ability. 4
  • Content of the presentation This chapter shows the world we are currently living in. 5
  • Today’s business environment is changing so fast that companies are being forced as never before to rethink their core marketing strategies. One of the important current mainsprings of organisational change is IT. According to Carlota Perez IT is called the fifth technological revolution. Moreover, according to Tom Forrester (1989): ‘Our high-tech society is the most definitive account available of the technology revolution that is transforming society and dramatically changing the way we live and work and maybe even think’. Previously we have faced the following technological revolutions started from 1770: -The industrial revolution; -The era of steam machines and rail ways; -The era of steel, electricity and machine construction; -The era of motorcar and mass production. References -Forester, T. (1989). The Story of the Information Technology Revolution, MIT Press. 6
  • The video characterises what is happening in the fifth technology revolution. 7
  • Technology and globalisation are key factors for organisational change. ‘We are living in exponential times’. 8
  • Fast growing companies can often be chaotic places to work. As workloads increase exponentially, approaches which have worked well in the past start failing. Teams and people get overwhelmed with work. Previously-effective managers start making mistakes as their span of control expands. And systems start to buckle under increased load. While growth is fun when things are going well, when things go wrong, this chaos can be intensely stressful. More than this, these problems can be damaging (or even fatal) to the organization. The "Greiner Curve" is a useful way of thinking about the crises that organizations experience as they grow. By understanding it, you can quickly understand the root cause of many of the problems you're likely to experience in a fast growing business. More than this, you can anticipate problems before they occur, so that you can meet them with pre-prepared solutions. Greiner's Growth Model describes phases that organizations go through as they grow. All kinds of organizations from design shops to manufacturers, construction companies to professional service firms experience these. Each growth phase is made up of a period of relatively stable growth, followed by a "crisis" when major organizational change is needed if the company is to carry on growing. Dictionaries define the word "crisis" as a "turning point", but for many of us it has a negative meaning to do with panic. While companies certainly have to change at each of these points, if they properly plan for there is no need for panic and so we will call them "transitions". Larry E. Greiner originally proposed this model in 1972 with five phases of growth. Later, he added a sixth phase (Harvard Business Review, May 1998). Reference www.mindtools.com 9
  • Globalisation (and IT-developments) are blamed for many of the ills of the modern world, but is also praised for bringing unprecedented prosperity. The accelerating pace of globalisation is having a profound effect on life in rich and poor countries alike, transforming regions such as Detroit and Bangalore from boom to bust - or vice versa – in one generation Reference -BBC-research ‘Globalisation shakes the world’ 10
  • Technology This is the offering of available technology and its possibilities, limitations and impossibilities. Even when limited to the domain of IT the offering is enormous. A technology that turns several industries upside down is the Internet. Internet has made it possible to create a virtual world (V- world) besides the physical world. The meaning of terms like place, time and presence has drastically changed in the V-world. Reference pictures: -www.automatedbuildings.com -executive.govt.nz 11
  • Interpreting Technology Hype When new technologies make bold promises, how do you discern the hype from what’s commercially viable? And when will such claims pay off, if at all? Gartner Hype Cycles provide a graphic representation of the maturity and adoption of technologies and applications, and how they are potentially relevant to solving real business problems and exploiting new opportunities. Gartner Hype Cycle methodology gives you a view of how a technology or application will evolve over time, providing a sound source of insight to manage its deployment within the context of your specific business goals. Each Hype Cycle drills down into the five key phases of a technology’s life cycle. Roll over the phases in the graphic above for more information. How Do You Use Hype Cycles? Clients use Hype Cycles to get educated about the promise of an emerging technology within the context of their industry and individual appetite for risk. Should you make an early move? If you’re willing to combine risk taking with an understanding that risky investments don’t always pay off, you could reap the rewards of early adoption. Is a moderate approach appropriate? Executives who are more moderate understand the argument for an early investment but will also insist on a sound cost/benefit analysis when new ways of doing things are not yet fully proven. Should you wait for further maturation? If there are too many unanswered questions around the commercial viability of an emerging technology, it may be better to wait until others have been able to deliver tangible value. How Do Hype Cycles Work? Each Hype Cycle drills down into the five key phases of a technology’s life cycle. 1.Technology Trigger: A potential technology breakthrough kicks things off. Early proof-of-concept stories and media interest trigger significant publicity. Often no usable products exist and commercial viability is unproven. 2. Peak of Inflated Expectations: Early publicity produces a number of success stories—often accompanied by scores of failures. Some companies take action; many do not. 3. Trough of Disillusionment: Interest wanes as experiments and implementations fail to deliver. Producers of the technology shake out or fail. Investments continue only if the surviving providers improve their products to the satisfaction of early adopters. 4. Slope of Enlightenment: More instances of how the technology can benefit the enterprise start to crystallize and become more widely understood. Second- and third-generation products appear from technology providers. More enterprises fund pilots; conservative companies remain cautious. 5. Plateau of Productivity: Mainstream adoption starts to take off. Criteria for assessing provider viability are more clearly defined. The technology’s broad market applicability and relevance are clearly paying off. Reference - Gartner research 12
  • Organisations Organisations apply IT to support their corporate objectives. IT gives organisations almost unlimited possibilities to reshape business processes and organisation structure (including location). Due to the shortening of life cycles of available IT, absorbing new IT has to be a key capability to transform and adapt quickly to changing circumstances. Reference picture: -Nolan Norton -Changing IT in six (Published in April 2010) 13
  • People New IT solutions change the content of work and collaboration between employees inside and outside their own organisation. A proper attitude and stimulation of learning processes are important to quickly build up new knowledge and skills. Learning processes have to be tuned on the individual preferences and capabilities. Related to the affinity with IT, digital natives versus digital immigrants is a popular distinction, to clarify differences between (generations of) people. Reference picture: -Geoffry Moore 14
  • For issues related to organisational change in the fifth technology revolution, there is a permanent interaction in the context of Technology, Organisations and People (TOP-mix). For each issue the TOP-mix (context) is unique. Each TOP-mix contains its own dynamics and unpredictability. Results are never absolute. It has to be analysed which domain contributes most and in which domain change has the biggest impact. After that it can be concluded which approach and what form of steering has to be chosen. The TOP-mix is helpful to determine the complexity of the issue (see next slide). Another meaningful reference is the ‘hard’ and ‘soft’ side or organisational change. Whereas the people part refers to the ‘soft’ side, the organisation and technology part can be seen as the ‘hard’ side. Reference -Changing IT in six (Published in April 2010) 15
  • Each system functions in accordance with its own laws and rules related to communication and interaction. The higher the system’s level (9 is the highest level and 1 is the lowest level), the more complex the functioning of the system is. The IT solution itself can be classified into one of the four lower levels of the system theory (1 up to and including 4). Systems which include persons are classified on level 7 up to and including 9. New IT solutions change the content of work, the interest of people and the cooperation between people. By approaching changes from the IT solution perspective only, meaning from the lower system levels, the risk of an incorrect assessment of the complexity is significant. Changing the content of work, the interest of persons and the cooperation between persons requires a different approach. Incorrect assessment of the complexity, selecting the incorrect change approach as a result is a second important cause for the poor results of organisational change due to IT. 16
  • Content of the presentation This chapter explains the problems organisations have with implementing and applying Information Technology and how these problems can be solved. 17
  • Being competitive is important for today. For staying competitive organisations have to adapt to changing circumstances. 18
  • ‘Narrow streets breed narrow minds’ The view from the practice of the fifth technology revolution shows that there is a permanent interaction between technology, organisation, and people. For each issue where IT plays an important role is the composition and interaction different between the domains, Technology, Organisation, and People. Each TOP-mix is unique and knows its own dynamics and unpredictability. Results are never absolute and univocal. Here is where the most views that the various professional fields and studies have developed, go wrong. Many of these views about how change can best be carried out limits itself to one or at most two domains of the TOP-mix. Psychologists and behaviour scientists point to the importance of the people factor and the developing of correct behaviour. IT project managers approach their issues from the domain technology and restrict their IT project to this domain only. Most IT project managers have no idea of what takes place outside of their technical domain. Organisation scientists especially evaluate processes and structures and explain which organisation form is best appropriate for an organisation. Each view from a separate field of study or profession is incomplete and without insight in the required contribution of and interaction between other domains, only a partial solution can be offered. Only thinking and acting over all domains, will increase considerably the success rate for organisational changes where IT plays an important role. 19
  • Jeroen van den Hoven, a Dutch professor, is involved in ethical questions around IT topics. IT solutions have ensured that work performed by people has fundamentally changed and will fundamentally change further in various industries/sectors. Van den Hoven pleads for the use of ethical awareness by the IT professional. IT solutions play an essential role in our society. The choices made by an IT professional influence many people. References -Hoven , J. van den (2007). From software engineering to Human values, SPI-der conference. -Harvard business review -KPMG and the Hackett group. -Other references: A change for the better (Economist Intelligence Unit) 20
  • Manager, leader, director Each TOP-mix is unique and change results are not univocal. Therefore, it is a big mistake to think that each organisational change, where IT plays an important role, always take place in the same way. There is not a sanctifying, always fitting form of steering. The steering of the change must be tuned on the TOP-mix. Most organisations subconsciously choose for a form of steering at an organisational change with a strong IT component. Mostly without considering, a standard project management method such as PRINCE2 is used. There is a distinction between two basic steering profiles and a hybrid. The two basic forms involve the ‘hard’ side and ‘soft’ side of change. The ‘soft’ side helps to provide steering within the people domain and is called leadership. The ‘hard’ side which is called management,. helps with the steering within the domains technique and organisation. The third steering profile, a hybrid of ‘hard’ and ‘soft’ is called directing. A director knows the composition and interaction of the TOP-mix in order to choose appropriate steering for an organisational change where IT plays an important role. Often a change can be subdivided in smaller segments. Each part can have its own separate necessary steering. The director knows how to play with the different steering profiles. Where necessary he directs his time and attention on the ‘hard’ side, but he is also able to overcome resistance, influence and persuade people. Not just everyone can direct. It is no gimmick or trick. Directing demands a set of competences which the director is able to understand what happens in the TOP-mix and how to coordinate the steering of this. Which competences are needed will be explained in the next chapter of this presentation. Reference figure: -www.enleadership.com 21
  • Previous slides describe problems with IT changes, meaning changes due to IT, in which an organisation feels like it is the victim of the change. This chapter introduces change by means of IT. According to the dictionary the words by means of refers to as ‘based on’. This implies that not IT, but the organisation itself is steering and selects the IT solutions which are important for the corporate objectives. Changes by means of IT involves: -changes of the IT solution itself; this could be a change of the existing IT solution or the implementation of a new IT solution (IT project); -changes in the work domain of users of IT solutions (user organisation or demand side of IT); -changes in the work domain of IT support (IT organisation or supply side of IT). Changes by means of IT refers to changes in all three subsections and their mutual influencing and dependency therein. Continuous alignment and connection are required to have the subsections mutually join each other perfectly well, in order to ensure that changes in which IT plays an important role are successful. IBAFrame (IT Benefits Accelerator Framework) is the indispensable link between the three subsections of changes by means of IT (figure above). 22
  • These six principles are part of the IBAFrame (IT Benefits Accelerator Framework). The instruments involved provide for permanent alignment and connection at different levels: organisation, group, and individual. They help to determine a common goal for all concerned parties and to choose an appropriate change approach. In addition, these instruments help with stimulating involvement and cooperation, and providing the correct impulses to the learning process and personal contribution. The change instruments offer support during all phases of the change process. IBAFrame is a framework which is a cure for the previously mentioned two causes that leads to poor results of organisational change where IT plays an important role. IBAFrame helps to connect between technology, organisation and people by continuous alignment. IBAFrame contains six crucial steering principles, where as the sixed principle a kind of invisible principle. You can not see it. It is embedded in the professional (change leader, change agents). 23
  • The Corporate Change Power (CCP) is one of the most important pillars for the organisation’s success. The power to change is the organisation’s skill in which it can handle several change instruments. The power to change determines the change result of organisational change in which IT plays an important role. IBAFrame helps to detect and improve the weak spots of the corporate power to change within the own organisation. IBAFrame can also compare the own corporate power to change with other organisations within or outside the industry (figure above). Research based on the IBAFrame principles shows that there is a link between change results and the corporate change power. 14 cases from practice investigated in 2009, show the result concerning corporate change power above. This figure shows the change power of the various IBAFrame change instruments. The overall average change power is 5,8 (on a scale of 1 – 10). Based on this change power the change results are: -Change result is an improvement: 5,1 -Change result is according original objective: 5,5 -Change result is according expectation: 5,8 Some other interesting findings as a result of the investigation were: -Very often the after care effort is very high -Personal competence is over-estimated (in psychology this phenomena is called self-serving bias) -Personal effectiveness at itself is not enough to achieve a positive change result -Very often the change approach is not what involved people prefer (too much pushing and time driven) Reference -Regie voeren over organisatieverandering met ICT (Sdu publishers) -Changing IT in six (Published in April 2010) 24
  • For issues related to organisational change in the fifth technology revolution, there is a permanent interaction in the context of Technology, Organisations and People (TOP-mix). For each issue the TOP-mix (context) is unique. Each TOP-mix contains its own dynamics and unpredictability. Results are never absolute. It has to be analysed which domain contributes most and in which domain change has the biggest impact. After that it can be concluded which approach and what form of steering has to be chosen. Reference: -Changing IT in six (Published in April 2010) 25
  • Content of the presentation Understanding what to do and how to act requires the proper competences. 26
  • Steering organisational change by means of IT is realised within an economical, social and political environment. Directors must be able to adjust to a turbulent environment and be able to function in a complex and changing organisational structure. They should be capable to act as well as from the ‘hard’ side as from the ‘soft’ side of organisational change by understanding what is happening in the TOP-mix. They must use ever increasingly advanced information systems. Next, they are confronted with different and changing standards, values and expectations. The central question is: What is a successful director now (and what will he be like in the future)? The modern director has the following characteristics: -knowledge and information on a basic level; this refers to basic facts, relevant professional experience and constantly being open to evolving events. -specific skills and characteristics; this includes analytical, problem solving, and social skills, emotional resilience and proactive indication. -meta qualities; such as creativity, mental skills and a balanced learning style. Reference -Broek, C. van den (2002). Learning competences for the facilitation of management. -Collins, D. (1998). Organizational Change: Sociological perspectives. 27
  • The results from the previously referred to study of 2,000 organisations have lead to the decision of using the transformational competence model (table 10) in competence oriented academic studies. The model links behavioural competences to knowledge competences and distinguishes between input, process and output competences. In order to perform his task well, a manager requires a combination of technical competences, social and human skills and conceptual thinking. If a manager is promoted to a higher rank, conceptual thinking becomes increasingly important and – in comparison – less technical competences are required. Social and human skills These refer to the relations between people who work together and who evaluate this work. The ability to use employees in the organisation as effectively as possible is a typical manager’s characteristic. This requires teamwork and the management is to provide direction and leadership to achieve the collective result, this includes being open to specific situations and being flexible to accept the most fitting management style. Technical competences These refer to the application of specific knowledge, methods and skills for individual tasks. In general, technical competence is required on a supervising level, for the training of the employees and the daily operational activities, such as the production of goods or services. Conceptual thinking This is required to gain insight into the complexity of the different activities in the total scope of the organisation, with attention for the environmental factors and power to decide. The manager’s personal contribution should be in line with the corporate objectives and the strategic planning. Meta cognitive development To be able to make decisions, managers require basic knowledge and information. Specific skills and characteristics are of immediate influence on behaviour and performances. The skill or quality to constantly be open to events is what enables managers to collect knowledge and information. Meta quality enables managers to develop skills and inventiveness, as well as specific skills required in specific circumstances. References -Porter, W., Angle H.L. & Allen R.W. (2003). Organizational influence processes, published by M.E. Sharpe. -Stadius, R. (1999). American Society for Training and Development. -Anshen, M. (1974). Managing the Socially Responsible Corporation: The 1972-1973 Paul Garrett Lectures, published by Macmillan. -Cameron, A. (1997). Management Development. 28
  • Figure above illustrates the transformational competence card. The card visualises the developments defined in the transformational competence model. The three sections – input, process and output – are the basis for the card. Next the sections are subdivided into three categories which each define a measurable competence. Subsequently each category is subdivided into one single behavioural competence and one single knowledge competence. Nine categories result in a total of eighteen competences. The levels in each section, category and competence are referred to as level 0, 1, and 2. Level 1 is the threshold of the standard level. Level 2 is the higher standard level, whereas level 0 indicates that the performances are below the standard level. 29
  • This chapter of the presentation outlines the management competences’ development as well as the various definitions used. In order to compensate for the incomplete input, output and process related competence models, this chapter offers the transformational competence model. The transformational competence model can be seen as the sixth IBAFrame instrument. The transformational competence model’s competences form the basis for the proper use of the IBAFrame change instruments. The management competences described must continuously develop to ensure a durable and successful use of the IBAFrame change instruments. Table above illustrates the relation between the IBAFrame change instruments and the competences of the transformational competence model. Abbreviations -SH=Social and Human Skills -TC=Technical Competence -CA=Conceptual Ability -KI=Basic Knowledge and Information -SA=Specific Skills and Attributes -MQ=Meta Qualities 30
  • Content of the presentation Students will be challenged not just to reproduce what they have read but to evaluate and analyse issues. Their is a huge need for (business) management that understands the dynamics of technology, organisations and people in the fifth technology revolution. 31
  • The link between organisational change and IT implies that, if the change process for one is interrupted, similar problems will emerge for the other as well. The teachers will discuss this subject in great detail. They acknowledge that an organisation’s development can be hindered if problems generated by changes in IT solutions are occurring. The teachers combined their knowledge and experiences with those of many colleagues. They introduce a method to successfully implement organisational changes by means of IT. Their thesis is that the application of the method - referred to as IT Benefits Accelerator Framework (IBAFrame) - will definitely improve the usage of IT capabilities. The Framework offers a multi-dimensional view on the matter. At least ten views accentuate this richness (table above). It is up to the reader to choose a view he prefers. Maybe, after attending Management of Technology, he is also able to clarify his preference when he is aware of the involved competences. 32
  • In 1956, Benjamin Bloom headed a group of educational psychologists who developed a classification of levels of intellectual behaviour important in learning. Bloom found that over 95% of the test questions students encounter, require them to think only at the lowest possible level: the recall of information. Bloom identified six levels within the cognitive domain, from the simple recall or recognition of facts, as the lowest level, through increasingly more complex and abstract mental levels, to the highest order which is classified as evaluation. As teachers we tend to ask questions in the knowledge category 80% to 90% of the time. These questions are not bad, but using them all the time should be avoided. Try to utilize higher order level of questions. These questions require much more ‘brain power’ and a more extensive and elaborated answer. 33
  • Time for a quick self assessment. Use the dictionary and determine your 2 best competences and your 2 weakest. 34
  • Content of the presentation Summary and most important references. 35
  • There is not a sanctifying, always fitting form of steering. The steering of the change must be fine-tuned on the TOP-mix. Most organisations subconsciously choose for a form of steering at an organisational change with a strong IT component. Mostly without considering a standard project management method, such as Prince2, is used. 36
  • From a deep and broad understanding of the working of the TOP-mix, the various instruments of IBAFrame focus for aligment and connection on the different levels: organisation, group and individual. During all change phases. 37
  • Some of the key references for Management of Technology 38
  • What else is on your mind ?/! 08 February 2010 | Changing IT in six 39