The article discusses managing change in large organizations and the public sector. It identifies some key differences between managing change in the public versus private sector. The public sector faces unique challenges to change initiatives due to political pressures, risk aversion, and decentralized structures. Successful change management requires understanding resistance, developing a clear vision and plan, strong leadership, communication, and an inclusive approach involving all stakeholders.

1. pse
May/Jun 09 FIVE MINUTE INTERVIEW
Rhodri Morgan AM
May/Jun 09 vol 8 no.3
THE EQUALITY BILL
How will the public sector be affected?
PROJECT AND PROGRAMME MANAGEMENT
The cost of failure
Lean and
Six Sigma
Can they really be applied
to the public sector?
t h e e s s e n t i a l g u i d e t o p u b l i c s e c t o r m a n a g e m e n t

3. public sector executive contents
IN THIS ISSUE
08 THE EQUALITY BILL AND THE
PUBLIC SECTOR
Although it will not come into force
for over a year, the Equality Bill will
have a significant impact on the public
sector. Now is the time to get to grips
with the proposed legislation and
understand the extent to which the
public sector will be affected, says
Richard Kenyon
10 PUBLIC SERVICES
VULNERABILITIES AND THE
CREDIT CRUNCH
The tumultuous events which have
taken place in the international finance
system are damaging important areas
of the public infrastructure of which
local government and the NHS are
prime examples, says Dr Beth Kewell
12 FIVE MINUTE INTERVIEW -
RHODRI MORGAN
Despite the current recession, the
Welsh Assembly Government is
proving to be a strong force in steering
Wales out of choppy economic waters
48 THE COST OF FAILURE IN
PROJECTS AND PROGRAMMES
Public services vulnerabilities and the credit crunch 10 IS SIMPLY TOO HIGH
Project and programme management
has come a long way in the public
sector. Many public sector projects
and programmes achieve great results
but some achieve the kind of adverse
publicity which is damaging to the
profession and to confidence in senior
managers’ stewardship of the public
purse, says Kevin Parry
54 TAKING EDUCATION OUT OF THE
CLASSROOM
From primary schools to colleges,
virtual learning tools are arguably more
effective than paper-based teaching
Five minute interview - Rhodri Morgan 12 Making change work 44 methods as they engage children
through the mediums that they use on
a daily basis, says Carla Baker
REGULARS COVER STORY 72
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FIVE MINUTE INTERVIEW
EIAs - ADDING VALUE OR
May/Jun 09
Rhodri Morgan
May/Jun 09 vol 8 no.3
03 Editor’s Comment
THE EQUALITY BILL
How will the public sector be affected
PROJECT AND PROGRAMME MANAGEMENT
The cost of failure
POLITICAL CORRECTNESS GONE
04 News Lean and Six Sigma MAD?
08 Comment
Can they really be applied to
65 Buyers Guide Equality impact assessments have
the public sector?
70 Events the potential to be a mechanism for
71 Subscription demonstrating accountability and
72 The Last Word driving positive social change but
Lean and
there is a real sense of indifference
Six Sigma amongst the very people responsible
for carrying them out, says Professor
14
Can they really be applied
to the public sector?
t h e e s s e n t i a l g u i d e t o p u b l i c s e c t o r m a n a g e m e n t
Peter Latchford
May/Jun 09 pse

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5. CHANGE MANAGEMENT

6. CHANGE MANAGEMENT
Managing change, improving performance
understanding the cultural barriers to change
With 50% of change programmes failing, Paul Foord discusses the various elements of a successful
change programme and introduces an inclusive approach to large scale organisational transformations
T
he change imperative will affect my power base”) or based approaches – education,
Paul Foord
emotional (“I’m anxious about participation facilitation - to
The need to change coping with the change”). the political based approaches
the way in which – negotiation, manipulation
an organisation performs, Typical reasons include coercion. A well managed
whether it be public or private uncertainty; anxiety; viewed as change programme will include
sector based, is driven by one a criticism; reluctance to write the rational/ethical based
of the following dynamics:- off the investment in existing strategies before engaging in
competition, cost, service, arrangements; reluctance to political based approaches.
environment technology. give up current status/benefits;
belief in the un-workability of Organisational Culture
The degree to which an the changes.
organisation must change How people work together can
organisations are comprised of
and the time available will Understanding the nature of the have a significant impact on
individuals, each of whom will
dictate the approach adopted resistance to change facilitates organisational effectiveness
have an agenda and reasons
the development of the strategies and the ability to deliver the
change strategy. As often quoted
Fig 1.
“the way we do things around
here” can mean the difference
between a change strategy well
executed and a dysfunctional
organisation.
The cultural web (Johnson
to either embrace the change
i.e. project based, programme for overcoming that resistance. Scholes) is a very useful
agenda or oppose it.
of interconnecting projects Strategies for change analytical tool for understanding
or a complete organisational the elements of culture.
Lewin describes this in terms of
transformation. Strategies for change range
a ‘force field’ of energy (fig 1.)
from the rational or ethical The interaction between
These approaches are not
The rate and direction of change
mutually exclusive but rather Fig 2.
is a result of the interaction
a continuum of purpose,
of the forces for change and
approach, style, consultation,
those against which suggests
inclusion and communication.
combining strategies of
However, matching the
increasing pressures for change
approach to the need is the first
whilst reducing resistance to
step in ensuring a successful
change.
outcome.
In order to overcome the
Force for change
opponents to change it is
necessary to understand the
The force for change in an
reasons for resistance and devise
organisation will inevitably
strategies to address these.
meet with differing levels of
acceptance and resistance. It
Reasons for resistance are
is an obvious assertion but
either rational in nature (“I’m
none the less vitally important
uncertain about the change”),
to understand, namely that Cont. overleaf
politically motivated (“this
May/Jun 09 pse 41

7. CHANGE MANAGEMENT
Fig 3.
· Plan. The process includes the
· Ensure the changes are establishment of a change
introduced gradually. programme which is managed
· Integrate different levels of by the board with individual
change at the individual, team directors championing the
and department level. delivery of key objectives via a
· Communication of the change delivery team.
changes and benefits.
· Assurances of security Each team will be comprised of
for those who might be the senior ‘movers shakers’
threatened by the changes. in the business i.e. tomorrow’s
· Cultural acceptance of change leaders.
via HRM policies.
organisational structure, control surrounding the need to change, · Leadership. They will analyse the ‘as is’
systems, power structures, as discussed above. However, · Persistence. critique their findings with the
routines, rituals/myths and the change journey, if it is to · Continual monitoring. key stakeholders, design the ‘to
organisational symbols creates be effective, will include the be’ plan the implementation of
a unique recipe of how people following activities ( “4r” model A change model – large scale the changes and implement the
work together (fig 2.) by Gouillart Kelly) (fig 3) business transformation plan.
Analysing the cultural impact The process starts with A large scale business The whole process is supported
on the organisation yields “reframing” and is iterative and transformation which enjoys by excellent communications
important information in not linear. Indeed, companies popular support within the across the organisation and
terms of which elements of the who have adopted a continuous organisation would typically the involvement of everyone
culture either support or hinder change agenda will revisit each include the following change concerned. Typically this might
the deliverance of the change segment in a circular fashion. model. look like this (fig 4.)
strategy.
Implementation – the The whole organisation would In summary
The change agenda principles of successful be involved in the process
change involving a team based Before embarking upon a change
The change agenda is unique journey of discovery, learning, programme it is important to
to each organisation and will The following principles are analysis, critique, redesign and consider the above issues and
depend on the level of change found in every successful change implementation. prepare a planned response.
required and the circumstances programme:-
Fig 4.
FOR MORE INFORMATION
Paul Foord
T 020 8348 5404
E p.foord@jamesford.co.uk
W www.jamesford.co.uk
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8. CHANGE MANAGEMENT
Making change work
The Change Management Consortium Research Project examined change management activities across
both the public and private sector over a four year period. Having analysed over 200 interviews and 5,000
survey responses from around 12,000 employees, we can identify key differences between the public sector
and the private sector change agendas. It is these differences we consider in this article and also draw down
some general lessons about how to manage change within the public sector in an efficient and effective
manner, say Julia Balogun and Veronica Hope Hailey
is because frequently both local offices and local managers
PROFESSOR JULIA BALOGUN politicians and senior managers – they were seen as powerful
is The Professor Sir Roland Smith Chair in fail to adequately assess the figures in the geographically
Strategic Management and Director of the
Lancaster Centre for Strategic Management scope of the change, particularly distributed office locations.
in terms of the depth of However, the same level of
transformation required. Whilst staff recorded very low levels of
reorganising or restructuring trust in senior managers at the
can be achieved on paper in centres of these organisations.
PROFESSOR VERONICA HOPE HAILEY
is Professor of Strategic Human Resource a short period of time, the
Management at the Cass Business School, City cultural transformation of staff Despite these differences in
University behaviours and attitudes can levels of trust, the programmes
take years and years. we researched failed to engage
local managers in the practical
O
ne of our key Added to this are problems design of change concentrating
learnings about in terms of capacity: public instead on centralised directives:
change in any sector sector organisations are given “that’s the big problem as I see
is that it needs to few resources (either money it with –the department, they
be designed and rolled out in or people) to invest in change – they’ve sorted the top out first
a manner that is sensitive to implementation as they find it and what they should have been
the needs of the organisational difficult to justify the diversion sorting out is the bottom where
context. Why is that important? of resources from the delivery of the work is actually done.”
Well, change needs to be front line services.
“context sensitive” in order not Feeling ignored by the senior
to waste resources on change This hampers their ability to teams at the centre, local
programmes that have no deliver change efficiently. As one managers often declined to
meaning or relevance for lower middle manager expressed it: “in communicate the reason for the
levels of staff. The failure to see my mind I’m running but I’ve imposition of change initiatives
relevance in change results in got lead boots on in trying to get instead blaming the strategic
these staff disengaging from the there.” Couple this with minimal centre for their invention. This
change process and overall the experience of implementing lessened the levels of awareness
desired change is not delivered. transformational change at and commitment for change at
middle and lower levels and one lower levels and overall reduced
Eight key contextual features can also see that capability acts the organisation’s readiness for
need to be assessed before as a constraint as well. change.
going on to take decisions about
change design. We found that, despite internal Nevertheless this lack of
merger activity within our public awareness of the need for change
“
Considering these eight features sector cases, the original local is counterbalanced by our survey
in turn, we can assert that public sub cultures were ‘alive and well’ finding that a high proportion
my experience of sector organisations are often long after the formal merging of of people are “prepared to put
staff is that they don’t structures. in extra effort to help their
particularly want airy,
fairy concepts
“ expected by politicians to deliver
significant transformational
change within a short time
frame. The reason that these
The impact of this local diversity
was that staff still felt huge
organisation be successful”. In
addition, compared with the
private sector, we found equally
unrealistic deadlines are set loyalty and identity with their high perceptions of justice and
44 pse May/Jun 09

9. CHANGE MANAGEMENT
“
fairness of management practices encourage local managers to
at a local level. This two positive voice their views and opinions Whatever the decision, the
aspects of organisational climates about roll out. appropriate level of investment the start point
need to be preserved. needs to be made in change for real cultural
So, given these kinds of
organisational contexts, how
should change be designed
The role of local leaders is critical
in translating centrally derived
directives into locally relevant
and appealing initiatives. When
levers and change activities.
For instance, if values change
is the desired outcome, then
substantial investment will have
transformation must
be decentralised to
local offices
“
so that it is both efficient and we interviewed lower levels of to be made in a whole raft of
effective? staff they said they wanted the training, communication.and
change process described in symbolic changes.
First, senior managers should practical terms in language they
break these huge change could understand and with clear Lastly, senior managers need to
agendas into bite sized milestones in place to measure ensure that the initiatives coming
pieces, concentrating first progress. out of different functional areas
on performance uplifts and all communicate the same core
restructurings before going on to As a local manager explained to message about change – they
effect cultural transformations us: “I don’t think there’s enough must seem joined up in the eyes
through changing attitudes and come out to actually, to actually of the recipents!
behaviours. explain. And I mean people
want explanations, they want Delivering effective change in the
This phased change path should somebody to actually say what UK’s public sector matters to all
be explained to all levels of this means. of us. We found well intentioned
staff so that there expectations civil servants at all levels of the
about delivery times can be You know my experience of staff organisations we researched but
managed. Whilst the general is that they don’t particularly many felt frustrated and worn
strategic direction can be set want airy, fairy concepts. They out by engaging in a great deal
centrally, the start point for real want to know how that’s going to of change activity much of which
cultural transformation must be affect them in terms of what they failed to deliver all that had been
decentralised to local offices. are doing.” promised at the outset.
Local managers must be allowed At the same time managers need We hope our research will
to participate in the formulation to be clear about what the end highlight some lessons that
of communication and change target is: are they asking people politicians and civil servants alike
programmes. Rather than using a to change their performance can learn from so that change can
directive style of communication, targets or their behaviours or, be achieved in a more efficient
senior managers need to perhaps, their values. manner.
May/Jun 09 pse 45