Make Shift Happen: Leading Change - Global Scrum Gathering 2019

1. Steve Martin, Certified Scrum@Scale Trainer, CSP, PMI-ACP Principal Enterprise Agile Coach, Agile Velocity steve.martin@agilevelocity.com Make Shift Happen: Leading Change

2. Workshop Objectives • Describe the difference between change management and change leadership • Recognize the importance and role of leading change • Gain insights into your leadership style tendencies as it relates to change through a short self-assessment © 2019 Cottage Street Consulting

4. INTRO: WHAT’S ALL THE FUSS WITH CHANGE?

9. Rapid change is here to stay 9 ¨ In today’s global economy:1 ¤ Stability and predictability is a relic of the past ¤ Organizational change is the status quo ¨ Competitive advantage is temporary and non-singular. 2 ¤ Companies win by “having one advantage after another over a period of time” Sources: 1. Grady, V. M., & Grady, J. D. (2013). The relationship of Bowlby's Attachment Theory to the persistent failure of organizational change initiatives. Journal of Change Management, 13(2), 206-222. doi:10.1080/14697017.2012.728534 2. Muratović, H. (2013). Building competitive advantage of the company based on changing organizational culture. Economic Review: Journal of Economics & Business / Ekonomska Revija: Casopis Za Ekonomiju i Biznis, 11(1), 61–76. © 2019 Cottage Street Consulting

10. Good leadership is essential Good leaders bring out three times more ¨ Talent ¨ Energy ¨ Motivation of their employees than the worst leaders 10 Source: Meinert, D. (2017). Why leaders fail: Learn to course-correct before your career founders. HR Magazine, 62(8), 18. 3X © 2019 Cottage Street Consulting

11. Yet, leadership is in eye of the beholder There are “almost as many definitions [of leadership] as there are persons that have attempted to define it” Source: Gandolfi, F., & Stone, S. (2016). Clarifying leadership: High-impact leaders in a time of leadership crisis. Review of International Comparative Management, 17(3), 212-224. 11 © 2019 Cottage Street Consulting

12. Various theories of leadership 12 Transformational Transactional Servant Leadership Authentic Leadership Situational Leadership Behavioral Leadership Adaptive Psychodynamic Charismatic Autocratic Authoritative Primal © 2019 Cottage Street Consulting

16. CHANGE MANAGEMENT VS CHANGE LEADERSHIP

17. Shout it Out. Where does change come from in your organization? 17

20. Fear of Change ¨ Fear is based in uncertainty ¤ Ever wonder why we try to manage change? ¤ We’re trying to manage uncertainty, bring sense to the unknown ¨ Fear feeds aversion to change ¤ Our brains are wired such that we prefer predictable negative outcome over an uncertain one ¨ Yet, the mind is flexible and adaptive ¤ How would we explain innovation? Source: Razzetti, G. (2018). How to overcome the fear of change. Psychology Today. Retrieved from https://www.psychologytoday.com/us/blog/the-adaptive-mind/201809/how-overcome-the-fear-change © 2019 Cottage Street Consulting

21. Fear appears throughout organizations “Not only is it the lower-tiered employee that is resistant to change, but also the upper-level manager. Apathy and habit seem to be the two ills that ravage the mindset of individuals in an organization.” (p. 123) Source: Dutta, S. K., & Kleiner, B. (2015). The benefits of effective change management on an organization’s culture. Leadership & Organizational Management Journal, 2015(1), 120–128. © 2019 Cottage Street Consulting

25. Change Management ¨ “Change management is the discipline that guides how we prepare, equip and support individuals to successfully adopt change in order to drive organizational success and outcomes.” ¨ “Change management provides a structured approach for supporting the individuals in your organization to move from their own current states to their own future states.” Source: https://www.prosci.com/resources/articles/what-is-change-management © 2019 Cottage Street Consulting

26. Image originated by Olivier Carré-Delisle was modified. Manager 26

27. Change Leadership ¨ Focus is on the engine for change1 ¤ Change to go faster ¤ Change to be more effective ¨ Involves big visions and empowering people1 ¨ Requires leaders to change themselves2 ¤ Conscious application of new skills in change leadership to lead persons to co-create the future 1. Kotter, J. (2012, February 6). What is the difference between change management and change leadership [Video file]. Retrieved from https://www.youtube.com/watch?v=2ssUnbrhf_U&list=PLRA49gaKoVqOdc28ycg8rgTOC6tNoxKP0 2. Anderson, D., & Anderson, L. (2010). Beyond change management: How to achieve breakthrough results through conscious change leadership. San Francisco, CA: Pfeiffer, an imprint of Wiley. © 2019 Cottage Street Consulting

28. LEADING CHANGE

31. McKinsey 7S Framework Shared Vision Structure Systems Style Staff Skills Strategy Source: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-7-s-framework © 2019 Cottage Street Consulting

34. Change begins with leadership ¨ “representatives responsible for the organization’s culture must have an environment conducive to achieving the organization’s objectives.”1 p 78 ¨ "organizational culture is the mirror of this organization leaders’ consciousness; therefore, cultural transformation begins with leaders’ individual transformation.“2 p 245 1. Kaya, S., & Secim, H. (2018). Research on the relationship between organization culture and its justice in the health profession. Revista de Cercetare Si Interventie Sociala, 61, 77–90. 2. Cekuls, A. (2015). Leadership values in transformation of organizational culture to implement competitive intelligence management: The trust building through organizational culture. European Integration Studies, (9), 244–256. doi: 10.5755/j01.eis.0.9.12811 © 2019 Cottage Street Consulting

35. Leadership paradigms are changing ¨ Clear market knowledge ¨ Choose the best solution ¨ Do it right the first time ¨ Perfect Plans ¨ Centralize control ¨ Vary the labor (resources) ¨ Uncertain and volatile markets ¨ Learn as you go ¨ Incremental progress ¨ Informed respond over perfect ¨ Empowered teams ¨ Leverage the workers’ collective knowledge and experience Traditional Approach: Manage to Projects and Certainty New Approach: Adapting to Emerging Environments “Transactional” Leadership: Do this, get that. “Transformational” Leadership: Enabling others. 36 © 2019 Cottage Street Consulting

36. Empowerment ¨ Theme of empowerment pervasive throughout change models ¨ Empowering others has greater results than a directive leadership style1 ¨ Empowerment does NOT mean bestowing authority and new responsibilities; empowerment means removing barriers so followers can be successful2 1. Martin, S. L., Liao, H., & Campbell, E. M. (2013). Directive versus empowering leadership: A field experiment comparing impacts on task proficiency and proactivity. Academy of Management Journal, 56(5), 1372-1395. doi:10.5465/amj.2011.0113 2. Kotter, J., & Cohen, D. (2002). Creative ways to empower action to change the organization: Cases in point. Journal of Organizational Excellence, 22(1), 73–82. © 2019 Cottage Street Consulting

37. Psychological Empowerment ¨ Leaders who can generate intrinsic self-motivation of followers ¨ More important than authority and structure Source: Seibert, S., Wang, G., & Courtright, S. (2011). Antecedents and consequences of psychological and team empowerment in organizations: A meta-analytic review. Journal of Applied Psychology, 96(5), 981-1003. © 2019 Cottage Street Consulting

38. Formal vs Informal Authority ¨ Using power of position to influence or command thought, opinion, or behavior ¤ Often located at the top or higher levels ¨ Command and control ¨ Influence via respect, trust, credibility, admiration, and acceptance Formal Authority Informal Authority In modern business world requiring rapid adaptive solutions, formal authority is becoming less necessary as it’s purpose becomes less clear. Source: Serrat, O. (2010). Informal authority in the workplace. Retrieved from http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1161&context=intl © 2019 Cottage Street Consulting

40. In summary: Leadership and change ¨ Innovation required abandoning what you know, whether it’s product, service, policy, etc. ¨ Abandonment should be accompanied simultaneously with continuous improvement ¨ New efforts should clearly spell out what is to be abandoned. ¨ Abandonment should be systematic, not ad hoc or haphazard ¨ The most effective way to manage change is to create it yourself ¨ Action based in critical thinking is needed ¤ There are “no four or nine celled matrix, no equations, nothing.” Source: Cohen, William. (2016) Why Success Can Make You More Likely to Fail. Adapted from “Peter Drucker’s Consulting Principles: And How to Apply them for Success.. Accessed via: https://www.cio.co.nz/article/617052/cio-upfront-leading-through-fear: Mansell-other-lessons-digital-strategists/ © 2019 Cottage Street Consulting

41. PARTING THOUGHTS

42. Some final thoughts ¨ Change is everywhere and here to stay ¨ Managing change is implementing change ¨ Leading change is setting structures and engine for enduring change ¨ Common theme amongst multiple change models is leadership matters ¤ Create environment for change, including embracing empowerment and informal authority ¨ Change starts with you first © 2019 Cottage Street Consulting

43. Workshop Objectives • Describe the difference between change management and change leadership • Recognize the importance and role of leading change • Gain insights into your leadership style tendencies as it relates to change through a short self-assessment © 2019 Cottage Street Consulting

44. Q & A ¨ Steve Martin ¨ www.linkedin.com/in/agilesteve ¨ www.agilevelocity.com ¨ steve.martin@agilevelocity.com

45. APPENDIX/ADDITIONAL MATERIALS

46. Characteristics of a Good Change Experiment ¨ A good change experiment has the following characteristics; it is: ¤ The smallest noticeable change you can make; it is your Minimum Viable Change (MVC)*. ¤ It has a clear hypothesis; with both an experimental outcome and a baseline outcome. ¤ It has a strategy to amplify it if it is successful. ¤ It has a strategy to recover and learn from it if it fails. ¨ If you are implementing the principles above, it should also be developed in conjunction with the people it will effect, and it should be made visible to anyone who wants to see it; including the recovery strategy. ¤ This is critical; you need to make it clear that failure is an option and that you've thought about what to do if things go badly. Source: Mansell, Matt. (2017) CIO upfront: Leading through fear and other lessons for digital strategists. CIO. Accessed via: https://www.cio.co.nz/article/617052/cio-upfront-leading- through-fear-other-lessons-digital-strategists/ © 2019 Cottage Street Consulting

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