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The world of
                                                              workplace change


                                        understanding and anticipating
                                                 the impacts of change


                                                                       IFMA Silicon Valley
                                                                                  NetApp
                                                                          Sunnyvale, CA
                                                                              14 April, 2010
Clark Sept, Principal
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
2
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Work is social
                                                      subjective norms


                                                       attraction /
                                                       perception
                                                  (choice / opportunity)
           Individual
                                                                           organizational
             social
                                                                              culture
            identity
                                                  acknowledgement/
                                                       influence
                                                  (esteem / rewards)

                                                  emotional experience



Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
The workplace experience
                                            Organization




                   Work                                            Physical &
                  Process                                         Tech Space




                                             The
                                           Employee


                                                                   Support
                  Culture
                                                                   Systems




                                                Policies




Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Workplace change management
What is it?                                                       Goals:
•    An organized process to                                      •   Decrease time required to
     engage individuals and                                           realize the benefits of the
     groups that will be impacted                                     workplace initiative
     by up-coming changes to the                                  •   Increase overall level of
     workplace                                                        adoption
•    Interactive, responsive and                                  •   Encourage sense of
     integrated program which                                         ownership of the outcomes,
     seeks to make transparent                                        thus increasing satisfaction
     the overall impacts of
     workplace changes on
     behavior


                                                                                                 5
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
The way from here
1. Work and the workplace experience
2. What is workplace change management?
       •       Behavior + consequences
       •       Biases
       •       Habits and making decisions
       •       Communication and change models
3. Simple principles for dealing with change
4. Planning for change
5. 5 things to keep in mind
6. Resources



                                                                  6
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
just because you can …

        doesn’t mean you should


                                                                  7
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Behavior and technology
                                                                  “Forget Gum, …
                                                                  Dinged heads, twisted
                                                                  ankles and, most often,
                                                                  bruised pride”
                                                                              –New York Times, 1/17/09




                                                                                                8
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Behavior and healthcare
“Compliance rates on hand hygiene
among health care workers hover between
40% and 50% nationally, despite Centers
for Disease Control and Prevention
guidelines and Joint Commission
requirements.
The CDC estimates the 1.7 million health
care-associated infections annually -- and
the 99,000 related deaths of hospital
patients -- are caused in part by poor
hand hygiene.”
                                      - American Medical News, 11/30/09
                                                                          9
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Behavior and energy
“We know that people are not passive
recipients of building design. They do run-
arounds or disable energy technologies that
are perceived as barriers to behavioral goals
and needs … disabling lighting controls, de-
lamping fixtures, or added fans and heaters to
increase their comfort.”


                                                             - Judith Heerwagen, PhD


                                                                                       10
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Just nostalgia?
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
                                                                  11
Biases




                                                                  12
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Biases and point of view
Bias in corporate decision-making is partly a function of:
- Habit
- Training
- Executive selection
- Corporate culture
- Performance measures

Mostly, biases are a product of human nature – hard-wired and highly
resistant to feedback!

“Silo thinking” is a good example of organizational bias – i.e. decision-
making based on the insular needs of a particular group or department
rather than a broader strategic approach

Changing the angle of vision (point of view…) is helpful in neutralizing
potential biases

Bias versus instinct: what’s the difference? How do you know?
… stereotypes, www.businessplacestrategies.com
Business Place Strategies, Inc.
                  ●
                                identity, power-distance and individualism norms, etc.13
Biases and decision making
                                                                      Organization



                                   Org                            Physical & Tech Space


                                                 Physical
          Work                                                          Support
         Process                                  & Tech
                                                  Space                 Systems


                                                                        Policies



          Culture                                Support
                                                 Systems                 Culture



                                 Policies                                Work
                                                                        Process



 How are decisions made in your organization?
                                                                                          14
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
15
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Process decisions?
Making : Analysis
 Decision-making around workplace change management is
 of central importance to the success of any workplace
 change initiative

 Extent to which managers applied 17 practices in making
 decisions?
         • 8 had to do with quantity and detail of analysis relating to the
           decision
         • 9 described decision making process
 Answer: process matters more than analysis … by a factor of six
 Process can be very helpful in overcoming bias
                                                                                           Dan Lovallo and Olivier Sibony
                                                                  McKinsey Quarterly: The Case for Behavioral Strategy
                                                                                                  McKinsey & Co. 2010

                                                                                                                     16
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Bias ?
              Habit ?
                                                                  17
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
“The trick isn’t in the technology; it
  Habits                                  is in the changing of habits.”

                                                                                Tom DeMarco & Timothy Lister
                                                                  (Peopleware: Productive Projects and Teams)




Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Habits, or why does it matter?
  The 4 Stages of Competence
  1. Unconscious incompetence
  2. Conscious incompetence                                        External changes
                                                                  challenge our sense
  3. Conscious competence                                            of confidence

  4. Unconscious competence




Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
What makes habits habit-forming?
  • 90% of our day = routine
  • Habits can’t be un-learned
          – (limbic system - a group of interconnected structures that
            mediate emotions, learning and memory)

  • New habits CAN replace old habits
          – Conscious re-patterning needed to overcome “limbic lag”

  • Getting out of the rut:
          – Practice leads to … habits, “burned in” to the brain
               (meaning: we no longer have to think about what we’re
               doing)
          – old habits aren’t changed quickly or easily, and are stronger
            when we are tired or stressed
          – more often successful when undertaken as a group
            rather than individual effort



Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Habits and the choices we make
  • We make choices based on
    our natural inclinations
  • Impacts of choice:
          – The environment / context
            informs our choices
          – Impacts personal choices have
            on others
          – Productivity–disruption trade-
            offs
  • Awareness and etiquette
  • Individual choices and
    community culture: working                                    Example:
    better together!                                              Choosing which space:
                                                                  - How many people?
                                                                  - Activity?
                                                                  - Duration?

Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Choosing the right habits
  • What do I / we want?
            … bad habits to “plow under”
            … good habits to keep
            … new habits to cultivate
  • How?
            … prepare
            … act (involves thinking)
            … practice – i.e. keep going




Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
23
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Who’s your audience?

1. Leader

2. Manager

3. Staff

4. Admin

5. Project Manager

6. Others (HR, IT, Finance, vendors …)?

                                                                  24
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Workplace change models
• Roll-out                                                        • Visionary
• Facelift                                                        • Community
• Workstyle                                                         Development
                                                                  • New ways of
                                                                    working




                                                                                  25
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
26
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Simple principles
1. Engage people, don’t “tell” them

2. No two organizations are alike

             According to a recent survey conducted by McKinsey &

             Company, up to 2/3 of change initiatives fail because of
             management’s insistence on cookie-cutter approaches to
             change management that emphasize “efficiency” over
             effectiveness

3. Address change openly, honestly and consistently

                                                                      27
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Planning for change
1. Understand how people use / abuse
   resources today (keep / “plow
   under”)
2. Understand life and work styles,
   and how behaviors and culture
   influence resource use
3. Rethink and change how resources
   are used (cultivating new habits)
4. Strategize how to reach individuals
   and groups that will be impacted to
   help them make the transition

                                                                  28
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Five things to keep in mind
1. What’s the nature of the change?
       Simple? Complex?
2. What level of investment can and should you commit to?
       Financial and political capital: most change is political
3. What are the soft spots that can be used for leverage, and
     the hard spots that need careful and on-going attention?
       Trade-offs are important
4. Who should participate at what level and how?
       No engagement: No change
5. How much time do you have, and is it enough?
     The more complex, the more time is needed

                                                                   29
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
Resources
McKinsey Quarterly                                                Current Reading List:
•    The Case for Behavioral Strategy,                            •   Leadership and Self-Deception, The
     Dan Lovallo and Olivier Sibony,                                  Arbinger Institute, 2002
     2010                                                         •   Distracted, Maggie Jackson, 2008
                                                                      How We Decide, Jonah Lehrer, 2009
•    The Inconvenient Truth about                                 •
     Change Management, Scott Keller                              •   Switch: How to Change Things When
                                                                      Change is Hard, Chip and Dan Heath,
     and Carolyn Aiken, 2009
                                                                      2010
                                                                  •   The Public Participation Handbook,
New Ways of Working Network                                           James Creighton, 2005
NewWOW.net is a membership                                        •   Managing Transitions, William Bridges,
                                                                      2003
organization of organizational
                                                                      The Heart of Change, John Kotter and
innovators who take an integrated                                 •
                                                                      Dan Cohen, 2002
approach to workplace change.
                                                                  •   Leading with Cultural Intelligence, David
www.newwow.net                                                        Livermore, 2010
                                                                  •   Cultures and Organizations, Hofstede
                                                                      and Hofstede, 2005


                                                                                                              30
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
BPS White Papers




                                                                  31
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
How we got here
1. Work and the workplace experience
2. What is workplace change management?
       •       Behavior + consequences
       •       Biases
       •       Habits and making decisions
       •       Communication and change models
3. Simple principles for dealing with change
4. Planning for change
5. 5 things to keep in mind
6. Resources



                                                                  32
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
BPS representative clients
Cisco:
since 1997, work includes change
management to drive broad organizational
buy-in to next generation work environment
GSA:
MOBIS contract holder since 2005. Work
includes workplace strategy, research, tool
development (incl. change management) and
training. Agency work includes DISA, BPD, US
Courts, Forest Service
HP:                                                                “As a direct result of the workshop BPS
Pragmatic change management program                               put on for us, we’ve completely changed
developed to align leadership, management                         the way we think about our real estate.”
and staff in major real estate consolidation
McKinsey & Company:                                                                             Parke Boneysteele
                                                                  COO, West Coast Operations, McKinsey & Company
Real estate and workplace advisory services
                                                                                                              33
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
…any questions?
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●
                                                                  34
35
Business Place Strategies, Inc. www.businessplacestrategies.com
                             ●

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Ifma Workplace Change 041410

  • 1. The world of workplace change understanding and anticipating the impacts of change IFMA Silicon Valley NetApp Sunnyvale, CA 14 April, 2010 Clark Sept, Principal Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 2. 2 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 3. Work is social subjective norms attraction / perception (choice / opportunity) Individual organizational social culture identity acknowledgement/ influence (esteem / rewards) emotional experience Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 4. The workplace experience Organization Work Physical & Process Tech Space The Employee Support Culture Systems Policies Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 5. Workplace change management What is it? Goals: • An organized process to • Decrease time required to engage individuals and realize the benefits of the groups that will be impacted workplace initiative by up-coming changes to the • Increase overall level of workplace adoption • Interactive, responsive and • Encourage sense of integrated program which ownership of the outcomes, seeks to make transparent thus increasing satisfaction the overall impacts of workplace changes on behavior 5 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 6. The way from here 1. Work and the workplace experience 2. What is workplace change management? • Behavior + consequences • Biases • Habits and making decisions • Communication and change models 3. Simple principles for dealing with change 4. Planning for change 5. 5 things to keep in mind 6. Resources 6 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 7. just because you can … doesn’t mean you should 7 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 8. Behavior and technology “Forget Gum, … Dinged heads, twisted ankles and, most often, bruised pride” –New York Times, 1/17/09 8 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 9. Behavior and healthcare “Compliance rates on hand hygiene among health care workers hover between 40% and 50% nationally, despite Centers for Disease Control and Prevention guidelines and Joint Commission requirements. The CDC estimates the 1.7 million health care-associated infections annually -- and the 99,000 related deaths of hospital patients -- are caused in part by poor hand hygiene.” - American Medical News, 11/30/09 9 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 10. Behavior and energy “We know that people are not passive recipients of building design. They do run- arounds or disable energy technologies that are perceived as barriers to behavioral goals and needs … disabling lighting controls, de- lamping fixtures, or added fans and heaters to increase their comfort.” - Judith Heerwagen, PhD 10 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 11. Just nostalgia? Business Place Strategies, Inc. www.businessplacestrategies.com ● 11
  • 12. Biases 12 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 13. Biases and point of view Bias in corporate decision-making is partly a function of: - Habit - Training - Executive selection - Corporate culture - Performance measures Mostly, biases are a product of human nature – hard-wired and highly resistant to feedback! “Silo thinking” is a good example of organizational bias – i.e. decision- making based on the insular needs of a particular group or department rather than a broader strategic approach Changing the angle of vision (point of view…) is helpful in neutralizing potential biases Bias versus instinct: what’s the difference? How do you know? … stereotypes, www.businessplacestrategies.com Business Place Strategies, Inc. ● identity, power-distance and individualism norms, etc.13
  • 14. Biases and decision making Organization Org Physical & Tech Space Physical Work Support Process & Tech Space Systems Policies Culture Support Systems Culture Policies Work Process How are decisions made in your organization? 14 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 15. 15 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 16. Process decisions? Making : Analysis Decision-making around workplace change management is of central importance to the success of any workplace change initiative Extent to which managers applied 17 practices in making decisions? • 8 had to do with quantity and detail of analysis relating to the decision • 9 described decision making process Answer: process matters more than analysis … by a factor of six Process can be very helpful in overcoming bias Dan Lovallo and Olivier Sibony McKinsey Quarterly: The Case for Behavioral Strategy McKinsey & Co. 2010 16 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 17. Bias ? Habit ? 17 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 18. “The trick isn’t in the technology; it Habits is in the changing of habits.” Tom DeMarco & Timothy Lister (Peopleware: Productive Projects and Teams) Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 19. Habits, or why does it matter? The 4 Stages of Competence 1. Unconscious incompetence 2. Conscious incompetence External changes challenge our sense 3. Conscious competence of confidence 4. Unconscious competence Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 20. What makes habits habit-forming? • 90% of our day = routine • Habits can’t be un-learned – (limbic system - a group of interconnected structures that mediate emotions, learning and memory) • New habits CAN replace old habits – Conscious re-patterning needed to overcome “limbic lag” • Getting out of the rut: – Practice leads to … habits, “burned in” to the brain (meaning: we no longer have to think about what we’re doing) – old habits aren’t changed quickly or easily, and are stronger when we are tired or stressed – more often successful when undertaken as a group rather than individual effort Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 21. Habits and the choices we make • We make choices based on our natural inclinations • Impacts of choice: – The environment / context informs our choices – Impacts personal choices have on others – Productivity–disruption trade- offs • Awareness and etiquette • Individual choices and community culture: working Example: better together! Choosing which space: - How many people? - Activity? - Duration? Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 22. Choosing the right habits • What do I / we want? … bad habits to “plow under” … good habits to keep … new habits to cultivate • How? … prepare … act (involves thinking) … practice – i.e. keep going Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 23. 23 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 24. Who’s your audience? 1. Leader 2. Manager 3. Staff 4. Admin 5. Project Manager 6. Others (HR, IT, Finance, vendors …)? 24 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 25. Workplace change models • Roll-out • Visionary • Facelift • Community • Workstyle Development • New ways of working 25 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 26. 26 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 27. Simple principles 1. Engage people, don’t “tell” them 2. No two organizations are alike According to a recent survey conducted by McKinsey & Company, up to 2/3 of change initiatives fail because of management’s insistence on cookie-cutter approaches to change management that emphasize “efficiency” over effectiveness 3. Address change openly, honestly and consistently 27 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 28. Planning for change 1. Understand how people use / abuse resources today (keep / “plow under”) 2. Understand life and work styles, and how behaviors and culture influence resource use 3. Rethink and change how resources are used (cultivating new habits) 4. Strategize how to reach individuals and groups that will be impacted to help them make the transition 28 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 29. Five things to keep in mind 1. What’s the nature of the change? Simple? Complex? 2. What level of investment can and should you commit to? Financial and political capital: most change is political 3. What are the soft spots that can be used for leverage, and the hard spots that need careful and on-going attention? Trade-offs are important 4. Who should participate at what level and how? No engagement: No change 5. How much time do you have, and is it enough? The more complex, the more time is needed 29 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 30. Resources McKinsey Quarterly Current Reading List: • The Case for Behavioral Strategy, • Leadership and Self-Deception, The Dan Lovallo and Olivier Sibony, Arbinger Institute, 2002 2010 • Distracted, Maggie Jackson, 2008 How We Decide, Jonah Lehrer, 2009 • The Inconvenient Truth about • Change Management, Scott Keller • Switch: How to Change Things When Change is Hard, Chip and Dan Heath, and Carolyn Aiken, 2009 2010 • The Public Participation Handbook, New Ways of Working Network James Creighton, 2005 NewWOW.net is a membership • Managing Transitions, William Bridges, 2003 organization of organizational The Heart of Change, John Kotter and innovators who take an integrated • Dan Cohen, 2002 approach to workplace change. • Leading with Cultural Intelligence, David www.newwow.net Livermore, 2010 • Cultures and Organizations, Hofstede and Hofstede, 2005 30 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 31. BPS White Papers 31 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 32. How we got here 1. Work and the workplace experience 2. What is workplace change management? • Behavior + consequences • Biases • Habits and making decisions • Communication and change models 3. Simple principles for dealing with change 4. Planning for change 5. 5 things to keep in mind 6. Resources 32 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 33. BPS representative clients Cisco: since 1997, work includes change management to drive broad organizational buy-in to next generation work environment GSA: MOBIS contract holder since 2005. Work includes workplace strategy, research, tool development (incl. change management) and training. Agency work includes DISA, BPD, US Courts, Forest Service HP: “As a direct result of the workshop BPS Pragmatic change management program put on for us, we’ve completely changed developed to align leadership, management the way we think about our real estate.” and staff in major real estate consolidation McKinsey & Company: Parke Boneysteele COO, West Coast Operations, McKinsey & Company Real estate and workplace advisory services 33 Business Place Strategies, Inc. www.businessplacestrategies.com ●
  • 34. …any questions? Business Place Strategies, Inc. www.businessplacestrategies.com ● 34
  • 35. 35 Business Place Strategies, Inc. www.businessplacestrategies.com ●