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Leading Organizational Change: Three
Dimensions of OrganizationsThat
Leaders MUST Address if LeadersWant
Change to Really ...
Today’s Conversation
 TheThree Dimensions of Organizations
 The Dynamics of Change in theThree
Dimensions
 Three Change...
TheThree Organizational Dimensions that
Leaders Must Consider to Lead a Successful
Change Effort
Developed by PerformanceB...
Dimension One: Formal Hierarchies
 Well understood & appreciated
 Visible
 Historic area of academic study
 Authority ...
DimensionTwo: Informal Networks
 Not well understood or appreciated
 Invisible
 Newer area of study crossing multiple a...
EightTrust Networks
Formal Hierarchy Informal Networks
Developed by PerformanceBest, LLC
Increasing Levels ofTrust
Career ...
DimensionThree: Humans and our Brains
The Human Brain….
 Loves to hardwire—estimates suggest we spend
85 – 90% of our wak...
The Dynamics of Change in theThree Dimensions
Developed by PerformanceBest, LLC
The Naturesof Change
 In the formal hierarchy change is understood…
consciously or unconsciously… as mechanistic, linear
...
The Process of Change in the Formal Hierarchies
Developed by PerformanceBest, LLC
Shouldwechangesomething?
Wave 1
Wave 2
W...
The Process of Change in the Informal Networks
Change
Modeled
Modeled
Change
Adopted
Modeled
Change
Adopted
Modeled
Change...
The Process of Change in the Human Brain
Developed by PerformanceBest, LLC
 Through conscious effort on our part, the bra...
Three Change Models Currently in Use
Developed by PerformanceBest, LLC
TheirApproach
Lewin (3) (1947)
1. Unfreeze
2. Change
3. Refreeze
Burke-Litwin (4) (1992)
Developed by PerformanceBest, LLC...
And Each ModelTells Us…..
Lewin tells us how change happens and by inference what you need to do
Burke-Litwin tells us t...
Their Focus Areas and Assumptions
Lewin
Focus on
 Change process
Assumptions
 Leaders and
managers know what
organizatio...
The Problem
the research, on effective change management and effective change efforts
shows that 60-70% of all change effo...
A New Approach to Leading Change
Developed by PerformanceBest, LLC
A New Approach
Developed by PerformanceBest, LLC
1. Direct the Rider
 Find the bright spots
 Script the critical moves
...
Key Focus Areas and Assumptions
Heath & Heath
Developed by PerformanceBest, LLC
Focus on
 Individuals, the brain and
info...
This New ApproachTells Us
Developed by PerformanceBest, LLC
 ….how to guide and
influence change
 It doesn’t suggest
tha...
The BIGTake-away from this model is to….
Developed by PerformanceBest, LLC
…remember the role of the brain in change
 The...
Bringing It AllTogether….Using All the Dimensions to
Lead Effective Change
Developed by PerformanceBest, LLC
Recognize the Impact Point
 This means understanding change first
and foremost as originating as an
individual experience...
Recognize how change operates
 Change operates as a complex adaptive
system and not as a mechanical, top-
down effort
 W...
Developed by PerformanceBest, LLC
Sources
1. Reina, D. S. & Reina, M. L. (2006). Trust and Betrayal in theWorkplace: Building
Effective Relationships inYour...
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Leading Organizational Change: The Three Dimensions of Organizaitons that Leaders Must Addresss for Change to be Successful

Presented at the North Jersey ASQ: Spring Quality Conference 2014 and the Morris County, NJ SHRM Group February 2015

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Leading Organizational Change: The Three Dimensions of Organizaitons that Leaders Must Addresss for Change to be Successful

  1. 1. Leading Organizational Change: Three Dimensions of OrganizationsThat Leaders MUST Address if LeadersWant Change to Really Happen Presented by… Gary F. Best, Ph.D. Organizational Psychologist PerformanceBest, LLC Developed by PerformanceBest, LLC
  2. 2. Today’s Conversation  TheThree Dimensions of Organizations  The Dynamics of Change in theThree Dimensions  Three Change Models Currently Used  A New Approach to Leading Change  Bringing It AllTogether…Using All the Dimensions to Lead Effective Change  Questions Developed by PerformanceBest, LLC
  3. 3. TheThree Organizational Dimensions that Leaders Must Consider to Lead a Successful Change Effort Developed by PerformanceBest, LLC
  4. 4. Dimension One: Formal Hierarchies  Well understood & appreciated  Visible  Historic area of academic study  Authority comes from an individual’s position in the hierarchy  Decision making  Spending (budget)  Hiring / Firing  Rules & processes are documented and public  Reporting relationships are clear  Formal communication channels are clear  Expertise is assumed based on role and level Developed by PerformanceBest, LLC © 2005 Netform, Inc. © 2005 Karen Stephenson
  5. 5. DimensionTwo: Informal Networks  Not well understood or appreciated  Invisible  Newer area of study crossing multiple academic disciplines  The network is not clear…even to the players in the network  Status in the network is based on trust  Trust has three dimensions (1)…..  Competence…a player is capable  Contractual…a player does what she says she will  Communication…a player’s word is good and true  Trust can be lost…your position in the network is earned and earned again….it’s not appointed by a higher authority  Key players in the trust networks are not recognized by the players in the hierarchies  The players in the hierarchies only recognize 30% to 50% of the players in the informal networks …which means the hierarchy is blind to 50% to 70% of the players in the network  The informal trust networks are more powerful than the hierarchy….and a major reason why change efforts fail  Kotter introduces “networklike” structures to help drive change in his latest book, Accelerate (2) (2012/14) Developed by PerformanceBest, LLC © 2005 Netform, Inc. © 2005 Karen Stephenson
  6. 6. EightTrust Networks Formal Hierarchy Informal Networks Developed by PerformanceBest, LLC Increasing Levels ofTrust Career Network (Outside of formal systems) Innovation Network (Change it now!) Social Network (Trust lite) Expertise Network (Built the present ) Strategy Network (Leaders at the top) Decision Network (Work the system) Work Network (Transactional) Learning Network (Integrate old & new)
  7. 7. DimensionThree: Humans and our Brains The Human Brain….  Loves to hardwire—estimates suggest we spend 85 – 90% of our waking time on “auto pilot”  Doesn’t like gaps in the storyline…the brain fills in blanks in the information we take in and then treats its additions as fact….  Defaults to hardwired behaviors when under stress  Is additive concerning information, not discrete…this means that our memories are not of discrete events, but made up of elements of all similar events we participated in.  Will “turn off” the Prefrontal Cortex and turn “thinking” over to the Amygdala in high stress, high pressure or other tense situations Developed by PerformanceBest, LLC
  8. 8. The Dynamics of Change in theThree Dimensions Developed by PerformanceBest, LLC
  9. 9. The Naturesof Change  In the formal hierarchy change is understood… consciously or unconsciously… as mechanistic, linear and top down…  Here, there are Change Sponsors, Change Agents and ChangeTargets  In the informal networks change is organic, trust driven and more prevalent in some networks (Strategy, Innovation & Learning)…  Here there are trusted change guides who influence the thinking of members of the network  In the human brain change is about turning off a mental map (or neural network) and creating a new mental map that directs new behavior  Here change is about knowledge creation or learning which creates a new mental map that results in someone behaving differently Developed by PerformanceBest, LLC
  10. 10. The Process of Change in the Formal Hierarchies Developed by PerformanceBest, LLC Shouldwechangesomething? Wave 1 Wave 2 Wave 3 W 1 initiates the idea of change and talks among themselves while they decide “change / no change”. It’s low risk for the sponsors W1 introduces the idea of change toW2—who has to catch up with the idea and then design the change for W1. It’s high risk for the change agents W2 introduces the idea of change toW3 who has to catch up with the idea and the design asW2 asksW3 to implement the change for W1. It’s very high risk for the change targets
  11. 11. The Process of Change in the Informal Networks Change Modeled Modeled Change Adopted Modeled Change Adopted Modeled Change Adopted Modeled Change Rejected Developed by PerformanceBest, LLC
  12. 12. The Process of Change in the Human Brain Developed by PerformanceBest, LLC  Through conscious effort on our part, the brain stops using an existing neural network that was developed over time and that enabled a certain behavior (unfreeze)  Through deliberate practice we consciously begin to develop a new neural network that will enable a different behavior (change)  Overtime this conscious effort takes hold and the new neural network becomes “hardwired” or second nature (refreeze)  Early efforts at change will result in failures and the less determined will discontinue the effort to create a new neural network and revert back to using the old network This is a 3-D view of connections in the brain originating from different cortical areas. New maps may hold clues to brain mysteries. By Elizabeth Landau, CNN CNN.com, 2 April 2014
  13. 13. Three Change Models Currently in Use Developed by PerformanceBest, LLC
  14. 14. TheirApproach Lewin (3) (1947) 1. Unfreeze 2. Change 3. Refreeze Burke-Litwin (4) (1992) Developed by PerformanceBest, LLC External Environment 1. Mission and strategy 2. Leadership 3. Organization culture Management Practices 1. Structure 2. Work unit climate 3. Systems Individual Capacity 1. Motivation 2. Task requirements and individual knowledge, skills and approaches 3. Individual needs and values Kotter (5) (1996) 1. Establish urgency 2. Create guiding coalition 3. Develop vision / strategy 4. Communicate the vision 5. Empower employees 6. Generate short term wins 7. Consolidate gains 8. Anchor change in the culture NEW--Begins to address and account for “networklike” structures in his book “Accelerate”.
  15. 15. And Each ModelTells Us….. Lewin tells us how change happens and by inference what you need to do Burke-Litwin tells us the organizational levers that have to be addressed for change to be effective Kotter tells us the steps you need to take and the order they should be taken for change to be effective Developed by PerformanceBest, LLC
  16. 16. Their Focus Areas and Assumptions Lewin Focus on  Change process Assumptions  Leaders and managers know what organizational areas to manipulate  And how to manipulate them Burke-Litwin Developed by PerformanceBest, LLC Focus on  Components and structures Assumptions  Leaders and managers know what they must do  Managers know how to plan and sequence the change  Change can be managed  The organization is a system and all of the moving parts have to be considered Kotter Focus on  Tasks to complete Assumptions  Change is linear and top-down  Leaders and managers know what organizational areas to manipulate  And how to manipulate them  Change can be managed  NEW—to be successful, change needs a second, parallel operating system, a “networklike structure” focused on strategy
  17. 17. The Problem the research, on effective change management and effective change efforts shows that 60-70% of all change efforts undertaken have failed….. So what’s going on here??? Developed by PerformanceBest, LLC
  18. 18. A New Approach to Leading Change Developed by PerformanceBest, LLC
  19. 19. A New Approach Developed by PerformanceBest, LLC 1. Direct the Rider  Find the bright spots  Script the critical moves  Point to the destination 2. Motivate the Elephant  Find the feeling  Shrink the challenge  Grow your people 3. Shape the Path  Tweak the environment  Build habits  Rally the herd Heath & Heath(6) (2010)
  20. 20. Key Focus Areas and Assumptions Heath & Heath Developed by PerformanceBest, LLC Focus on  Individuals, the brain and informal networks to drive change Assumptions  Change begins with a single individual or a small group of individuals and spreads  Change is complex and adaptive  Change is multi faceted  Change is circuitous  Change is organic and influenced…not mechanical and directed
  21. 21. This New ApproachTells Us Developed by PerformanceBest, LLC  ….how to guide and influence change  It doesn’t suggest that change can be “completely managed” or “fully controlled”
  22. 22. The BIGTake-away from this model is to…. Developed by PerformanceBest, LLC …remember the role of the brain in change  The Rider represents your pre-frontal cortex— the brains “executive” function.You do your heavy lift thinking using the pre-frontal cortex  The Elephant represents your amygdala…an ancient part of the brain that when activated initiates your fight, flight or appease response  When under stress or in unfamiliar territory (a change situation) your amygdala can be activated…and when the amygdala is activated the pre-frontal cortex becomes much less active  The upshot is that when you need clear, rational thinking the most…you don’t have it! And that’s a problem Remember the Elephant and the Rider (7)
  23. 23. Bringing It AllTogether….Using All the Dimensions to Lead Effective Change Developed by PerformanceBest, LLC
  24. 24. Recognize the Impact Point  This means understanding change first and foremost as originating as an individual experience…not as an “organization” experience.  Again, the key is to understand change first and foremost as originating as an individual experience…as an “organizing” experience not as an “organization” experience Developed by PerformanceBest, LLC To Effectively Lead Change,You Must…..
  25. 25. Recognize how change operates  Change operates as a complex adaptive system and not as a mechanical, top- down effort  When you can view change as a complex adaptive system, by definition, you are required to consider and use all of the dimensions discussed in this presentation….  The Formal Organization  The informal trust networks  The Rider and Elephant Developed by PerformanceBest, LLC To Effectively Lead Change,You Must….
  26. 26. Developed by PerformanceBest, LLC
  27. 27. Sources 1. Reina, D. S. & Reina, M. L. (2006). Trust and Betrayal in theWorkplace: Building Effective Relationships inYour Organization. San Francisco: Berrett-Koehler. 2. Kotter, J.P. (2012). Accelerate!. Harvard Business Review: Reprint R211B 3. Schein, E. J. (1995). Kurt Lewin's ChangeTheory in the Field and in the Classroom: NotesToward a Model of Managed Learning.Working Paper 3821. Revised July 1995 4. Burke,W.W. & Litwin, G. H. (1992). A Causal Model of Organizational Performance & Change. Journal of Management, 18 (3), 523-545. 5. Kotter, J. P. (1996). Leading Change. Boston: Harvard Business School Press 6. Heath, C. & Heath, D. (2010). Switch: How to ChangeThingsWhen Change is Hard. NewYork: Broadway Books. 7. Haidt, J. (2006).The Happiness Hypothesis: Finding ModernTruth in Ancient Wisdom. NewYork: Basic Books (Haidt developed the metaphor of the Rider and the Elephant, see page 4 & 5) Developed by PerformanceBest, LLC

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