Leading Organizational Change

1. Welcome to Leading
Organizational Change

2. Aligning Formal and Informal Relationships
 According to Writer Kathy Williams it is Informal relationships rather than formal
management structures where the work really gets done, problems are solved, and
companies gain competitive advantage, particularly at large companies. (ref.1)
 So why would the Informal be so effective?
1. One reason this kind of network works so well is big-company employees say informal
networks give them someone (Other than management or supervisor) to turn to when
they need to get something done, and they do so because they respect the other
person's knowledge and experience.
2. Workers also say they get frustrated when management doesn't incorporate the
informal network into their planning and decision making. (ref.1)

3. What can we do?
 First, those workers who believe management is aware of employees networks, and
that other coworkers turn to them, are significantly more likely to say change comes
more easily to organizations (and vice versa).
 They Should also conduct an “Informal Network Analysis” to
- Identify the key actors
- Identify the distribution of relationships among homogeneous groups of actors
- Identify the distribution of relationships within homogeneous groups of actors

4. Change Initiative and Organizational
Performance
 Change Initiative is a series of actions taken to implement a transformation process.
 Organizational Performance comprises the actual output or results of an organization
as measured against its intended outputs.
 Change Initiative for our purposes involves the leading of change and we must
understand that the nature of project management is change.
 Change leadership refers to a set of principles, techniques, or activities applied to the
human aspects of executing change to influence intrinsic acceptance while reducing
resistance. (Ref.2)

5. Change Initiative Continued
 In this case we could use what is called the ADKAR model. Below is a model
representation.
 Awareness of the business reasons for change. The goal of early
communications related to an organizational change.
 Desire to engage and participate in the change. The goal of sponsorship and
resistance management.
 Knowledge about how to change. The goal of training and coaching
 Ability to realize or implement the change at the required performance level.
The goal of additional coaching, practice and time
 Reinforcement to ensure change sticks. The goal of adoption measurement,
corrective action and recognition of successful change

6. Preparing for Major Changes and Adapting
 So how do we plan for change?
 A formal plan for changes must have the following criteria-
a) Consistent application from department to department
b) Specific communication objectives and methods
c) Project management techniques
d) Discussion regarding expected outcomes and consequences to areas of the formal and
informal organization
 Remember communicate. Henry Hornstein writes “Whether or not a project is
successful has much to do with whether or not employees adopt the inevitable changes
that are advocated. And such adoption is a function of how much resistance users may
have to the changes in their work”.

7. The Ability to Lead the Change
 If a person does not understand the need for the change then they will only focus on
what they can lose. Keep in mind the six stages of concern-
1. First, people want information. Communicate
2. Next, things get personal. What will happen to me?
3. Once the change process is in motion, implementation concerns arise: Questions
such as what do I need to do?
4. Impact concerns: Is this making a difference?
5. Collaboration. Once employees have seen the benefits of change they will want to
share.
6. Finally refinement- making continual improvements.

8. Tools of the Trade
 Finally the tools for success. Such as the Balanced Scorecard and Performance
Dashboard.
 The Balanced Scorecard expands the traditional financial measures into three other
dimensions to capture a balanced approach to measure performance in an organization.
These additional dimensions are: Customer Focus, Competence/Employee Learning
and Growth, and Operational Efficiency. (Ref.4)
 Performance dashboards help leaders manage performance. Dashboards can focus
management on strategic issues, and catalyze strategic action.
 Click to see some examples of the Dashboard and scorecard.

9. In Closing
I close today with a quote by John F. Kennedy
“Change is the law of life. And those who look only
to the past or present are certain to miss the future”
Thank you for your time and good day.

10. References
• Alberto F. de Toni, Fabio Nonino, The key roles in the informal organization: a network
analysis perspective, The Learning Organization 17.1 (2010)
• Ref.1- Kathy Williams, Employees Turn to "Informal Organization“, Strategic Finance 89.3
(Sep 2007)
• Employee perceptions of organizational change: impact of hierarchical level
• Liz Jones, Bernadette Watson, Elizabeth Hobman, Gallois Prashant Bordia, et al.
Leadership & Organization Development Journal, 29.4 (2008).
• Ref.2- Barber Griffith-Cooper, Karyl King, The Partnership between Project Management
and Organizational Change: Integrating Change Management with Change Leadership.
Performance Improvement, (Jan 2007).
• Ref.3- Eleanor D Glor, Assessing organizational capacity to adapt. Emergence : Complexity
and Organization 9.3 (2007).
• William J. Rothwell, Jacqueline M. Stavros, Roland L. Sullivan, Practicing Organization
Development, PUBLISHER Pfeiffer
• Ref.4- Andra Gumbus, Introducing the Balanced Scorecaed: Creating Metrics to Measure
Performance, Journal of Management Education 29.4 (Aug 2005)
• Michael K Allio, Strategic dashboards: designing and deploying them to improve
implementation, Strategy & Leadership 40.5 (2012)