webinar presented with ITMPI on change management strategies and theory. Change at the indiividual, team and organizational level

1. 7/7/2011
Webinar:
If You Build It, Will They Come?
April 28th, 2011
12:30 PM EST
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ITMPI005
Jorge Luis Boria
VP
Liveware Inc.
jorge.boria@liveware.com
Michael Milutis
Director of Marketing
Computer Aid, Inc. (CAI)
Michael_milutis@compaid.com
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2. 7/7/2011
About Presenter’s Firm
Liveware is a leader among SEI partners, trusted by small,
medium and large organizations around the world to
increase effectiveness and efficiency through improving
their quality. With its immense collective experience in
software process improvement they can help their
customers succeed. They partner with clients by focusing
on their bottom line and short and long term business
goals. With over 70 Introduction to CMMI classes delivered
and 40 SCAMPI appraisals performed, you will not find
better consultants for your process improvement needs.
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CAI Achieves IT Operational Excellence
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3. 7/7/2011
PDU CREDITS
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4. 7/7/2011
“It’s not the strongest species
that survive, or the most
intelligent, but the most responsive
to change”
Charles M. Darwin
Agenda
• Performance Improvement, Process
Improvement, Change and Transitions:
Concepts and Steps
• Readiness for Change and Authorizing
Sponsorship
• Change Nature: Capability or Culture?
• Getting There
• Questions and (Hopefully) Answers
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5. 7/7/2011
Process Improvement?
Process Improvement
Process Improvement is not
about writing new processes.
It’s about making people change
behavior!
Ok, that’s easy!
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6. 7/7/2011
Why Is Change Hard?
Change is disruptive
whether you see it as
GOOD
OR
BAD
Where does transition hurt?
Change is Pervasive
• Change is what happens when we are
trying to keep things stable.
• If we do not plan the direction of change, it
will take its own direction.
• Hoping for all people to understand the
positives and negatives, make the decision
to change and adopt the change in the right
direction is delusional.
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7. 7/7/2011
Goals are Difficult
•70% of the efforts to perform “business
reengineering” have failed1
•57% of the efforts to introduce CASE
tools have failed2
•Common cause: they failed to consider
the human factor
1 Hammer, M. The Wall Street Journal, November 26, 1996
2 Fichman, R. and Kemerer, C. F., “The Illusory Diffusion of
Innovation: An Examination of Assimilation Gaps”, Information
Systems Research, v. 10, n. 3, pp. 255-275, September 1999.
Cast of Characters
•Authorizing Sponsor
–legitimizes change initiative, holds reinforcing sponsors accountable
for change
•Reinforcing Sponsor(s)
–allocate resources, remove barriers, express, model and reinforce
change
•Champions
–believe things can be different and act as advocates for the change
•Change Agents
–implement the change, keep everyone informed, surface and
handle resistance
•Participants (Process Users)
–change their behavior, habits, emotions, way of doing things
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8. 7/7/2011
Idealized Change Model
Capability
Desired
Improvement
Goal
Present
Productivity
State Transition
State
Time
Steps in Organizational
Change 8 - Measure Business Value
of the Improvement
– Model applies for 7 - Implement the Capability
many different types Improvement
of change 6 - Equip Team with Skills and
Plan the Improvement
– Elements often 5 - Develop Enduring
overlap in time, Sponsorship
though shown here 4 - Define Desired State
and Determine Strategy
as sequential
3 – Assess Present
– Work might start Capability and Culture
mid-stream in the
model, depending on 2 – Establish Sponsorship
circumstances
1 - Assess Organizational
Readiness
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9. 7/7/2011
Realistic Change Model
Capability
Desired
Improvement
Goal
managed transition
Present
Productivity
State Transition unmanaged transition
State
Change
Strategy
Time
2 Establish Sponsorship 5 Develop Enduring Sponsorship
4 Define Desired
1 Assess State and
Organizational Determine Strategy
Readiness 8 Measure
6 Equip Team Business
and Plan the Value of
3 Assess Improvement the Improvement
Present
Capability 7 Implement the
and Culture Capability Improvement
Desired
State
Present
State Transition
State
Managing The Transition
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10. 7/7/2011
Agenda
• Performance Improvement, Process
Improvement, Change and Transitions:
Concepts and Steps
• Readiness for Change and Authorizing
Sponsorship
• Change Nature: Capability or Culture?
• Getting There
• Questions and (Hopefully) Answers
The 4 Variables
1. Scope (what to change)
– skills, processes, culture
2. Culture (how to change)
– do not sell opera tickets at NASCAR (and vice
versa)
3. Resistance (who to change)
– identify and deal with change opponents
4. Timing (when to change)
– understand the different constituencies
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11. 7/7/2011
Is The Organization Ready?
• The adrenaline must be perceptible.
• Champions can be identified.
• Upper management is either worried sick
or licking its jaws.
• If not:
– Light many fires
– Seek another customer
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Alignment
Unified
Chaos
Tug of war
Full-scale war
Visions, values and behaviors of the organization
need to be aligned with the change
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12. 7/7/2011
Change Roles in the
Hierarchy CEO AS
Authorizing
Sponsor (AS)
Champions (CH)
Reinforcing
Sponsor (RS) VP RS VP CH VP RS
Change Agents (AS) Mgr RS Mgr CA Mgr RS Mgr CH
Participants (P) Spvr CA Spvr P CA P P P
Unsuccessful Cascading
Sponsorship
CEO AS
VP BLACK VP
HOLE
Mgr Mgr Mgr Mgr
Spvr P Spvr P P P P P P P
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13. 7/7/2011
Getting Started
•Make sure the organization is aligned and the
change is feasible
•Think of the learning process for individuals,
groups, and the organization as a whole
– can the reward system be changed?
•Identify the correct sponsor
•Communicate, communicate, communicate
•Respect mourning in individuals
Agenda
• Performance Improvement, Process
Improvement, Change and Transitions:
Concepts and Steps
• Readiness for Change and Authorizing
Sponsorship
• Change Nature: Capability or Culture?
• Getting There
• Questions and (Hopefully) Answers
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14. 7/7/2011
Why Care
CHANGE THE CULTURE
steepest
ADD MANY CAPABILITIES
ADD A CAPABILITY steeper
organization
steep 27 and customers
individuals teams
What is Culture, Anyway?
• culture is an attribute of the community
of an organization
• culture is conformed of collective values,
believes, expectations and commitments
• culture actually affects individual
behavior at all levels
• it is what makes people do what they do.
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15. 7/7/2011
OCAI http://www.ocai-online.com/
• Organizational culture assessment
instrument
– simple tool for diagnosing organizational
culture
– developed by professors Robert Quinn and
Kim Cameron
– statistically validated instrument
– based on the Competing Values Framework
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Cultural Paradigms
to decide
flexibility
CLAN ADHOCRACY
adaptive innovative
collaboration independence
internal focus, external focus,
integration differentiation
HIERARCHY MARKET
traditional competition
hierarchy and productivity
and control
stability
Cameron and Quinn 30
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16. 7/7/2011
Defining Characteristics
Paradigm Coordinat- System Priorities Decision
ion regulation making
hierarchy traditional negative stability, formal, top-
authority feedback, group; down by
hierarchy deviation secured position
attenuating continuity
adhocracy innovative positive feedback, innovation, informal,
independence deviation quickness; bottom-up, by
initiative amplifying creativity individual
clan adaptive combined achievement, negotiated,
collaboration feedback, flexible growth, group consensual, by
process responsiveness and individual group process
market efficient shared vision, market share, unnegotiated
competition best value profitability, predefined,
reward proposition goal implied by
achievement vision
Changing the Culture
• Leadership required (MUST HAVE!)
John Kotter, What Leaders Really Do, 32
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17. 7/7/2011
Burman &
Evans (2008)
Target Zero:
A Culture of
safety
Are you
a Leader?
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Change Alignment with
Corporate Culture
Very Low Probability
of Success
Values
Behaviors
High Probability “Unwritten Rules”
of Success
Corporate
Culture
In any organization the majority of the
people are in the majority
the majority of the time
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18. 7/7/2011
Agenda
• Performance Improvement, Process
Improvement, Change and Transitions:
Concepts and Steps
• Readiness for Change and Authorizing
Sponsorship
• Change Nature: Capability or Culture?
• Getting There
• Questions and (Hopefully) Answers
Some Will Come
The
Chasm
Early Early Late
Innovators Adopters Majority Majority Laggards
2.5% 13.5% 34% 34% 16%
Time
Deployment is accelerated by managing change
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19. 7/7/2011
Steps in Building 8) Internalization
Commitment 7) Institutionalization
Commitment 6) Adoption
Phase
5) Installation commitment
threshold
Acceptance 4) Decision
Phase 3) Understanding disposition
threshold
2) Awareness
Preparation
Phase 1) Contact
ignorance disbelief disappointment
Source: Conner & Patterson, 1982 confusion delay disuse
Classifying Participants
• Backers
– Agree with the change, share the vision
move quickly to adopt
• Skeptics
– Agree with the vision, do not trust the
change, are reluctant to adopt
• Opponents
– Disagree with the notion of having to
change at all 38
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20. 7/7/2011
How Backers Transition
Checking Out!
P
E Hopeful
S Informed Realism
S Pessimism Informed
I
Optimism
M
I Uninformed Completion
S Optimism
M TIME
Source: Adapted from Daryl Conner, Managing at the Speed of Change
How Opponents Transition
Anger and Rage
Status Acceptance
Quo
Bargaining
Denial
Testing
Stunned
Paralysis
Depression
Source: Adapted from Elizabeth Kubler Ross, On Death and Dying
and Daryl Conner in Managing at the Speed of Change
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21. 7/7/2011
Resistance Happens 1
•Characteristics of participant resistance
– can be passive
• disinterested - it’ll pass, there will be another
change along
• stalling tactics, excuses - too much real work to
do
– can be active
• confrontational
• subversive
Resistance Happens 2
Resistance cannot be ignored – you
must manage it
– understand concerns and issues
– explain the change from participant point of
view
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22. 7/7/2011
Managing Opposition
• Does not work • Works
– cooperate – distract them
• you lose time • throw them a bone
– compromise – fire them
• you lose goals • unless they break
– ignore down
• you lose allies – bring social pressure
to quiet them down
• only after you won
• YOU LOSE! over the early majority
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Agenda
• Performance Improvement, Process
Improvement, Change and Transitions:
Concepts and Steps
• Readiness for Change and Authorizing
Sponsorship
• Change Nature: Capability or Culture?
• Getting There
• Questions and (Hopefully) Answers
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23. 7/7/2011
Managing the Transition
•Changing behavior
– providing skills
– providing resources
– aligning the reward system
8) Internalization
Commitment
Phase
7) Institutionalization
6) Adoption Building Skills
5) Installation commitment
threshold
4) Decision
Acceptance
Phase
3) Understanding
ONE SIZE DOES NOT FIT ALL
disposition
2) Awareness
threshold
•Individual learning
Preparation
Phase 1) Contact •Presentation
ignorance disbelief disappointment
confusion delay disuse
•Full scale stand-up training
•On the job training (mentoring and
Visionaries Pragmatists pilots)
The
Chasm
How much is enough?
Early Early
Majority
Late
Laggards
When?
Innovators Adopters Majority
2.5% 13.5% 34% 34% 16%
Time
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24. 7/7/2011
Dealing with Visionaries
•Sell the vision
•Raise awareness
•Deal with resistance Early
Innovators Adopters
– listen to grievances 2.5% 13.5%
– be prepared to adjust the vision
– be prepared to learn from their experience
•Plan a pilot
•Train in skills
•Procure resources to make the pilot successful
Success does not cross the chasm,
but failure does!
Moore’s Crossing the Chasm
MOORE’s CROSSING THE CHASM APPLICATION TO SOFTWARE
PROCESS IMPROVEMENT
choosing a target market identify potential teams for the
pilots
understanding the whole product understand both the good and bad
concept parts of the change
positioning the product sell the problem and structure
support for the adoption
building a marketing strategy plan the pilot for success
choosing the most appropriate use classes, coaching, mentoring
distribution channel and champions
pricing lower the cost of adoption
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25. 7/7/2011
Wrong Ways to Attempt the
Crossing
•3-day training in the CMMI
•Half a day training in the CMMI
•Decreeing the processes a standard
•Placing all your hopes on the reward system
•“Selling” the benefits to the people
•Trusting that the benefits will become evident
with time and people will embrace change
•Making the change mandatory under
punishment of losing the job, on day one.
Conquering the Early Majority
Perform training
•just in time The
Chasm
•on the job
•just enough
Until Early Majority changes
Early Early Late
Innovators Adopters Majority Majority Laggards
2.5% 13.5% 34% 34% 16%
Time
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26. 7/7/2011
Summary
• Change is not about the destination, is
all about the trip
• If you fail to plan, plan to fail
• Consider at least three levels of
transition management
• Professional drivers in a closed circuit,
do not attempt
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The 4 Variables
1. Scope
– skills, processes, culture
2. Culture
– do not sell opera tickets at NASCAR (and vice
versa)
3. Resistance
– identify and deal with change opponents
4. Timing
– understand the different constituencies
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27. 7/7/2011
Agenda
• Performance Improvement, Process
Improvement, Change and Transitions:
Concepts and Steps
• Readiness for Change and Authorizing
Sponsorship
• Change Nature: Capability or Culture?
• Getting There
• Questions and (Hopefully) Answers
Questions?
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28. 7/7/2011
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29. 7/7/2011
Jorge Luis Boria
VP
Liveware Inc.
jorge.boria@liveware.com
Michael Milutis
Director of Marketing
Computer Aid, Inc. (CAI)
Michael_milutis@compaid.com
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