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Organizational Change Management - PMICIC October 2018


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How often do you hear about past projects? Are they always good stories? Are the stakeholders being good care takers of your work? What can we do to help increase your projects success after you leave? Martin will be discussing the challenges of organizational change and some tools and techniques to help projects be successful after the project manager has moved on to another project.

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Organizational Change Management - PMICIC October 2018

  1. 1. Organizational Change Management for the Project Manager Martin J. Wagner
  2. 2. About me • Live & work in Carmel, Indiana • Bachelors from Indiana University and Masters from Purdue University • One-man PMO at Seven Corners • Former Adjunct Faculty at the Indiana University Kelly School of Business • Managed enterprise projects at Indiana University, Eli Lilly, & Cummins • Focused on Organizational Change Management & Process Engineering • Former PMI CIC VP-Marketing & VP-Finance
  3. 3. Seven Corners, Inc. is an innovative and service focused international travel insurance and specialty benefit management company.
  4. 4. Quick introduction
  5. 5. Welcome Julie Kearney • Julie was one of my students in K201 at the Kelley School of Business. • She is an aspiring project manager • This is her first chapter meeting
  6. 6. What advice would you give to Julie, a new aspiring Project Manager? Just shout it out
  8. 8. What advice would you give to Julie, a new aspiring Project Manager when running a project? Just shout it out
  9. 9. Table 1-1 in the PMBOK
  10. 10. What advice would you give to a new Project Manager when running a project? STAY IN SCOPE STAY ON TIME STAY ON BUDGET
  11. 11. Our new PM did all of the things
  12. 12. Congratulations! Your project was finished on time, on budget, and within scope! Followed PMBOK A job well done!
  14. 14. How often do you hear about past projects? Are they always good stories? Are the stakeholders being good care takers of your work? What can we do to help increase your projects success after you move on to the project?
  15. 15. Project A project is a temporary endeavor undertaken to create a unique product, service, or result. Project Management Institute. Guide to the Project Management Body of Knowledge (PMBOK® Guide)–Sixth Edition. Unique - being the only one of its kind; unlike anything else Origin: Early 17th century: from French, from Latin unicus, from unus ‘one’.
  16. 16. We create change. Through our life’s work.
  17. 17. Organizational Change Management for the Project Manager Today’s Topic
  18. 18. Virginia Satir Change Process Model • American author and therapist • “Mother of Family Therapy” • Developed a model of how individuals experience change. • Notice the performance gap
  19. 19. Why OCM? Increased return on investment Reduce the productivity gap duration and depth Minimize disruption Increase employee engagement
  20. 20. Thought leaders in Organizational Change Management
  21. 21. Dr. John P. Kotter A pioneer of change management
  22. 22. Transforming Organizations: Why Firms Fail John P. Kotter Error #1: Allowing Too Much Complacency Error #2: Failing to Create a Sufficiently Powerful Guiding Coalition Error #3: Underestimating the Power of Vision Error #4: Under communicating the Vision by a Factor of 10 (or 100 or Even 1,000) Error #5: Permitting Obstacles to Block the New Vision Error #6: Failing to Create Short-Term Wins Error #7: Declaring Victory Too Soon Error #8: Neglecting to Anchor Changes Firmly in the Corporate Culture
  23. 23. Kotter: Eight-stage process of change Establishing a sense of urgency 1 Creating the guiding coalition 2 Developing a vision and strategy 3 Communicating the change vision 4 Empowering broad-based action 5 Generating short- term wins 6 Consolidating gains and producing more change 7 Anchoring new approaches in the culture 8
  24. 24. Dr. W. Warner Burke Thought leader in theory and practice of Organizational Change
  25. 25. Why is change so challenging? 1 Deep organization change, especially attempting to change the culture of an organization, is very difficult. 2 It is often hard to make a case for change, particularly when the organization appears to be doing well. 3 Our knowledge for how to plan and implement organization change is limited. Burke, W. Warner. Organization Change: Theory and Practice
  26. 26. Continuity & stabilization, not discontinuity & change • Burke leans into the reality about the challenge of change • Organizational theory literature is about continuity and stabilization, not change • Peters and Waterman (1982) In Search of Excellence • “Stick to your knitting” • Collins and Porras (1994) Built to Last. • Power of culture as facilitating continuity and stabilization • The problem here is that by using popular, actual organization cases as the base from which to derive principles, sooner or later—and today it is sooner rather than later—the organizations studied and showcased no longer illustrate the principles, because things have changed.
  27. 27. Jim Collins responds • “Furthermore, even if a few of our struggling companies fail to regain their prior greatness—and, of course, that’s always possible—that fact alone would not undermine the fundamental ideas we derived in our research. Think about it this way. Suppose we studied the great UCLA basketball dynasty of the 1960s and ’70s, which won ten NCAA championships in twelve years under the legendary coach John Wooden. ” • “Now, consider the following question: is the UCLA basketball team a great dynasty today? Certainly not at the same level as the Wooden era. Now consider this question: would this fact negate the principles we learned by studying the Bruins at their best in contrast to the Golden Bears? Sure, the practices may have changed, but the principles of great sports dynasties would still stand even if the UCLA Bruins had ceased to live the principles that made them truly great under John Wooden.” • “That’s how we should think of the Good to Great and the Built to Last principles—principles derived by studying those that became great in particular eras in contrast to those that did not. Even if some companies stumble—even if they stop sleeping well, they stop exercising, they stop eating well—the principles of sleep, diet, and exercise; the principles of First Who, Level 5, and the Hedgehog Concept still apply.”
  28. 28. Burke Trust, but verify.
  29. 29. The Burke–Litwin Model of Organizational Performance and Change a tool used to understand an organization's component parts and how they relate to each other in a time of change All areas affected by change need to be accounted for How areas interact with one another The hierarchy of factors and their influence within an organization Change comes from external influences Main use us to diagnose a problem or create an action plan
  30. 30. The Burke– Litwin Model of Organizational Performance and Change
  31. 31. NBA roster change management
  32. 32. Time check As a native Hoosier, I can talk about basketball forever.
  33. 33. Now what? Many of our projects are not large organizational change efforts. However, we are creating some level of organizational change Leveraging wisdom from Kotter & Burke, we can weave some practices into our planning
  34. 34. Integrate OCM into your project plan • Project Charter • Project Management Plan • Subsidiary management plans: • Communications management plan. • Risk management plan. • Stakeholder engagement plan
  35. 35. Develop Project Charter • Project purpose; & urgency • Measurable project objectives and related success criteria; change vision & change strategy • High-level requirements; • High-level project description, boundaries, and key deliverables; • Overall project risk; Complacency risk • Summary milestone schedule; Short term wins • Preapproved financial resources; Preapproved broad-based action • Key stakeholder list; Change management guiding coalition • Project approval requirements (i.e., what constitutes project success when completed and after go live, who decides the project is successful, and who signs off on the project); • Project exit criteria (i.e., what are the conditions to be met in order to close or to cancel the project or phase); • Assigned project manager, responsibility, and authority level; and Name and authority of the sponsor or other person( s) authorizing the project charter. Outputs
  36. 36. Pre-approved broad based action • This can be, spoiler alert, & will most likely be an entire presentation. • Applying lean manufacturing principles from the Toyota Production System into organizations for change. • Example: • New United Motor Manufacturing, Inc. (NUMMI) was an automobile manufacturing company in Fremont, California, jointly owned by General Motors and Toyota. • The $15,000 / minute cord
  37. 37. Complacency Risk Assessment • Never underestimate the magnitude of the forces that reinforce complacency and that help maintain the status quo. • In complacency-filled organizations, change initiatives are dead on arrival. John P. Kotter
  38. 38. 4.2 Develop Project Management Plan • .1 Project Charter • .2 Outputs from other processes • .3 Enterprise environmental factors • Complacency risk assessment • .4 Organizational process assets Inputs • .1 Expert Judgement • .2 Data Gathering • Brainstorming • Checklists • Focus groups • Interviews • .3 Interpersonal and team skills • Conflict management • Facilitation • Meeting Management • Meetings Tools and Techniques • .1 Project management plan Outputs
  39. 39. Guiding Coalition Team • Culture Leader: This person knows how things get done in the company, on and off stage. • Project Executive Sponsor: This person needs to communicate early and often. They need to create the sense of urgency. • Directors & Managers: They can enable coherence and engagement. • The informal leaders in the organization: People who are trusted who will also enable coherence of messaging and enable engagement. • CEO and executive leadership team needs to been visible participating in the change. • Project Manager & members of project team: they know all the details about the project. • Engage the front line employees • Culture and change experts in the company
  40. 40. 10.1 Plan Communications Management Inputs • .1 Project Charter • .2 Project Management Plan • .3 Project Documents • Requirements documents • Stakeholder register • Change management guiding coalition register • Enterprise environmental factors • Complacency risk assessment • .4 Organizational process assets Tools and Techniques • Communication requirements analysis including change vision communication requirements analysis Outputs • .1 Communications management plan & Change vision communications management • Short term win recognition and communication plan • .2 Project management plan updates • Stakeholder engagement plan • Change Management Guiding coalition plan • .3 Project Document updates • Project schedule • Stakeholder register • Change management guiding coalition register
  41. 41. 11.1 Plan Risk Management Inputs • .1 Project Charter • .2 Project Management Plan • .3 Project Documents • Stakeholder register • Enterprise environmental factors • Complacency risk assessment • .4 Organizational process assets Tools and Techniques • Expert Judgement • Data Analysis • Stakeholder analysis • Meetings Outputs • .1 Risk management plan
  42. 42. 13.3 Manager Stakeholder Engagement Inputs • Complacency risk assessment • Change management guiding coalition register Tools and Techniques Outputs
  43. 43. Review The Burke–Litwin Model of Organizational Performance and Change It’s a great guide to help you plan for change
  44. 44. Further study • The inner side of Organizational Change • Thijs Homan - Professor in implementation and change management. | • TEDxAmsterdamED • Thijs Homan has been focused on this question for many years: "What really happens when organizations change and develop?" In addition, he approaches conventional organization and management theory formation critically. In his work, Thijs particularly looks at the 'lived experience' of people to understand (changing) organizations. During his talk he will share the key insights needed for smooth transformation within schools or organizations.
  45. 45. Change Activation Free Resources
  46. 46. Summary • Create a sense of urgency in your planning • Organizational Change vision needs to be communicated early, often, and increased by a factor of 10 • You must engage the right people in your guiding coalition • You must include it in your project planning • Short term win milestones are a must • Review The Burke–Litwin Model of Organizational Performance and Change • Organizational Change Management is complex
  47. 47. Thank you • E-mail • martinjwagner @ @thechangepm @thechangepm