Change Management

Philip E. Flora, CIA, CISA, CFE, CCSA

July 19, 2010

Afternoon

Learning Objectives

• Provide an overview that equips you to better facilitate the change process.

• Share tools & techniques that help you lead the change process.

• Learn to participate in/reinforce the change process to maximize the benefit for employees, stakeholders and the public at large.

2

Our Goals To explore theories, tools and techniques that will assist you to:

1. Provide the who, why, what, when & how of change management

2. Better understand your leadership role in the continuing change process.

3. Plan strategic agency and organizational change initiatives.

4.Develop strategies to implement the required change initiatives

5. Identify priorities and opportunities for your individual development as a leader of change.

6. Provide reference materials & resources for future use

3

Getting to Know You

• Name you wish to be called?

• Organization, position, what you do?

• What is it about yourself you would like others to know?

• A key expectation you have for this course? 4

Change Impacts us All!

Jobs Relationships Locations

Perspectives Goals

5

Building a Learning Community

6

Self-Directed Work Teams – 4 Stages

• Forming

• Storming

• Norming

• Performing

7

Forming Learning Groups – Exercise #1

• On a 3x5 card list the characteristics that you believe would best support you in getting the most from this program.

• Walk around with your card & find 4 other people who want similar things.

• Discuss, with them, the norms that will be required to operationalize those characteristics.

• Report out the norms you and your new colleagues have chosen. 8

Understanding Leadership and Change

• Assess your change leadership practices

• Identify individual development opportunities

• Describe the change process in your

organization

• List change initiatives in progress and potential

change areas for your organization 9

Stages of Grief – 5 Stages

• Denial & Isolation

• Anger

• Bargaining

• Depression

• Acceptance

10 Source: Dr. Elisabeth Kubler-Ross – Named the 5-Stages Grief

after a serious loss

Change Leadership Characteristics & Supporting Behaviors • Leadership

Characteristics

• Getting honest input from others

• Active listener

• …..

• …..

• Supporting Behaviors

• Not violating another's trust

• Physically attending to what others are saying

• …..

• …..

11

Leadership & the New Science Video Breakout Group Discussion – Exercise #2 1) Accept chaos as an essential process

2) Share information as the primary organizing force

3) Develop the rich diversity of relationships

4) Embrace vision

• Share examples of the your experience from the (4) areas listed above

12

Communication Why Important?

Effective Communication (Continued)

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

______________________________________

______________________________________

Why Communicate Effectively

• Buy-in to a common goal

• Influence another person

• Resolve a conflict

• Sell an idea(s)

• Build a relationship(s)

• Share the results of an audit

Effective Communication (Continued)

• Provide risk scenarios for management’s consideration/discussion

• Share the potential impact of a weak governance process

• Discuss examples of information security or privacy issues with management to ensure the risk is minimized in your organization

Effective Communication (Continued)

• Counsel an employee(s)

• Meet assignment objectives

• Share experiences to past the time

• Train/educate staff and other professionals

• Demonstrate your ability to assume additional responsibilities

Is This an Effective Way to Communicate?

Art of Communication

Send Receive

Types of Communication

• Written

• Talk in Person

• Body Language

• Telephone

• Presentations

Communication (Continued)

• Listening

• Email

• Facial Expressions

• Voice Tone/Inflection

Exercise #3

Communicating with Your Boss

Communicating with Your Boss Exercise #3 (Continued)

• You need an extension in the date due to complete an important project. Your boss just came back to his office from a tough meeting with the executive management team. What things should you consider before approaching your boss?

Exercise #3

Comments/Notes

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Systems Thinking

• What is Systems Thinking?

• What is a System?

• What is an Organization?

25

Systems Thinking (Continued)

• Definition - Systems Thinking

• Systems thinking is the process of understanding how things influence one another within a whole. In organizations, systems consist of people, structures, and processes that work together to make an organization healthy or unhealthy.

26

Source: Wikipedia, The Free Encyclopedia

Systems Thinking (Continued)

• What is a System?

Is a set of interacting or interdependent entities forming an integrated whole.

Most systems share common characteristics, including:

Systems have structure, defined by parts and their composition;

27 Source: Wikipedia, The Free Encyclopedia

Systems Thinking (Continued)

• What is a System? Systems have behavior, which involves

inputs, processing and outputs of material, energy or information;

Systems have interconnectivity: the various parts of a system have functional as well as structural relationships between each other.

Systems have by themselves functions or groups of functions

28

Source: Wikipedia, The Free Encyclopedia

Systems Thinking (Continued)

• What is an Organization?

• An organization is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment

29 Source: Wikipedia, The Free Encyclopedia

Quote - Change

You can't cross a sea by

merely staring into the

water."

------------ Rabindranath Tagore

A System in Action

INPUTTRANSFORMATION OUTPUT

31

Most Important Tip

Under promise and over deliver!

A System

33

Strategic Thinking

• A form of systems thinking that takes into account how the organization interacts or is impacted by its environment.

• Helpful in: Developing or adapting relationships

Increasing organization flexibility

Seeking new service opportunities 34

The Bottom Line for Leaders?

35

Bottom Line (Continued)

• Ensuring clarity of a meaningful mission

• Ensuring adequate resources are available

• Ensuring the satisfaction of customers and other stakeholders.

36

Bottom Line (Continued)

• Involving relevant individuals

What is needed?

Who needs to be involved?

When do they need to be involved?

How do they need to be involved?

37

Kotter Model & Leading Change Questionnaire? Integration

Modelingthe

Change

Communicatingabout the change

InvolvingOthers in the

Change

Helping OthersBreak from the

Past

Creating asupportiveLearning

Environment

IncreaseUrgency

Build theGuiding Team

Get the VisionRight

Communicatefor Buy-in

Empower Action

CreateShort-term Wins

Don’t let Up

Make ChangeStick

38

Project Management Triangle

Quality

Functionality

Cost Time

Discussion Areas

• Emotional Intelligence

Emotional intelligence (EI) describes the ability, capacity, skill or, in the case of the trait EI model, a self-perceived grand ability to identify, assess, manage and control the emotions of one's self, of others, and of groups

40 Source: Wikipedia, The Free Encyclopedia

Discussion Areas

• Change Process Models

• The term process model is used in various contexts. For example, in business process modeling the enterprise process model is often referred to as the business process model. Process models are core concepts in the discipline of Process Engineering.

41 Source: Wikipedia, The Free Encyclopedia

Discussion Areas

• Change Process Model Types

Activity-oriented

Product-oriented

Decision-oriented

Context-oriented transformations

Strategy-oriented

42 Source: Wikipedia, The Free Encyclopedia

Change Dynamics and Tools

• List key elements of the change process

• Apply tools used in the successful

leadership of change

• Construct real life change models

43

PHASES OF A PROJECT

PHASES OF A PROJECT

• Enthusiasm

• Disillusionment

• Panic

• Search for the Guilty

• Punishment of the Innocent

• Praise and Honors for the Non Participants

Change = Modifying Strength of Forces

46

CurrentSituation

Forces Associated with Change

47

DrivingForces

RestrainingForces

S

I

T

U

A

T

I

O

N

People Involvement Options

48

Tools for Understanding and Facilitating Change

IT (CHANGE) WON'T HAPPEN UNLESS...

C = [ABD] > X

C = CHANGE

A = Level of dissatisfaction with the status quo

B = Desirability of the desired change or end state

D = Practicality of the change (minimal risk and disruption)

X = "Cost" of changing

49 Source: Richard Beckhard – Pioneer in Organizational Development

- Original formula created by Gleicher and authored by Beckhard

and Harris

Another Formula for Change - Gleicher's Formula

• D x V x F > R

• Three factors must be present for meaningful organizational change to take place. These factors are: D = Dissatisfaction with how things are now; V = Vision of what is possible; F = First, concrete steps that can be taken towards the vision.

• If the product of these three factors is greater than R = Resistance, then change is possible.

50

Source: Wikipedia – Created by Richard Beckhard and David Gleicher

Another Formula – Gleicher

(Continued) • Because of the multiplication of D, V and F, if any one is

absent or low, then the product will be low and therefore not capable of overcoming the resistance.

• To ensure a successful change it is necessary to use influence and strategic thinking in order to create vision and identify those crucial, early steps towards it. In addition, the organization must recognize and accept the dissatisfaction that exists by communicating industry trends, leadership ideas, best practice and competitive analysis to identify the necessity for change

51

Source: Wikipedia – Created by Richard Beckhard and David Gleicher

Tools for Understanding and Facilitating Change (Continued)

The Olde Ice Cube Metaphor... Kurt Lewin

Unfreeze

Modify/Change

Refreeze

52

Potency of Forces for Change

53

53

P

O

T

E

N

C

Y

Of

F

O

R

C

E

S

Agency’s

Executive

Congress Employees

Unions

Culture/ Values

H

I

G

H

M

E

D

I

U M

L

O W

R. Beckhard & R.T. Harris, Organization Transitions: Managing Complex Changes, pp. 35.

Readiness-Capability Assessment

54

54

Individuals or

groups

critical to the

change

Readiness

Capability

High

Medium

Low

High

Medium

Low

1

2

3

4

5

6

7

R. Beckhard & R.T. Harris, Organizational Transitions: Managing Complex, pg. 63

Responsibility Charting

55

Individuals

55

Actions:

R = Responsibility (not necessarily authority) A = Approval (right to veto)

S = Support (put resources toward) I = Inform (to be consulted before action)

- = Irrelevant to this item

R. Beckhard & R.T. Harris, Organizational Transitions: Managing Complex Changes), pg. 105

56

56

Levels

Unfreezing

Movement

Refreezing

Skills/

Values/

Attitudes/

Behaviors/

Individual

Rewards/

Reporting/

Relationships/

Work Design/

Structure &

Systems

How open

people are/

How conflict is

managed/

How decisions

are made/

Climate/

Interpersonal

Style

Three Dimensions of Change

L. D. Goodstein & W. W. Burke “Creating Successful Organization Change,” Organizational Dynamics, (19(4) 5-17 (1991)

Development Stages • Unconscious Incompetent

• Conscious Incompetent

• Conscious Competent

• Unconscious Competent

57

Does Your Management Consider This an Acceptable

Approach to Risk Management?

Team Assignment: Exercise #4 Case Study Preparation • Individual reading.

• Analysis:

Identify facts and issues,

Tentatively decide what the specific challenge(s) are,

Determine appropriate alternative solutions for each challenge,

• Prepare the team report for presentation.

59

Communicating with an Audit Customer – Exercise #4

Customer Communication

Exercise #4

• You are finishing an audit and have identified that the project reporting heat map report (dashboard) and project management documentation (e.g. project risk plan, project plan, deliverable sign-offs not occurring, success not clearly identified, etc.) are not accurate or not being used as anticipated. How would you approach the Project Manager/Executive responsible for the project.

Exercise #4

Comments/Notes

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Relationships Building

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

63

RELATIONSHIPS

When working with Management do things

sometimes not go as planned?

Resistance to Change

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

__________________________________________

65

Appreciative Inquiry

A Constructive Approach to Sustained Organization Change

66

Appreciative Inquiry

• Looking at the world with an appreciative approach

• Working within systems to discover what

gives life/meaning

• Articulating possibilities for a better future

67

Appreciative Inquiry

Conventional, DeficitBased

Appreciative Inquiry

Problem Possibilities

Problem Driven Vision Led

Money Meaning

Critical Thinking Generative Thinking

Using Others Collaborating with Others

Transactions Relations

Reductionism Wholeness

68

Key Characteristics of an AI Interview

• Assumption of health and vitality

• Connection through empathy

• Care about the next person, excitement

• Intense focus

• Generative questioning, cueing, guiding

• Comfort with ambiguity

• Generalizations OK 69

The AI Interview Protocol

1. Best Experience: Tell me about the best times you have had with your organization - when you felt most alive or most involved or most excited. Describe the event in detail.

2. Values :

What are the things you value deeply about your work,

your organization and yourself.

3. What is the core value of your organization?

4. Three wishes

70

Narrative Exploration

• Find a partner who you would like to know better from the table next to yours

• Take 10 minutes to reflect on the questions individually

• Conduct the interview for 30 minutes per person

• Stay with your partner and join a group

71

Creating Propositions

• Share your stories

• Make a list of the emerging topics that are important to you as a group

• List the top five themes on a scattergram chart

• Make a separate list about your wishes--What needs to change or improve

• Post your sheets for all to view

• Prepare a group presentation

72

Five Principles of AI

1. Social Constructionism

2. Poetic Principle

3. Principle of Simultaneity

4. Anticipatory Principle

5. Positive Principle

73

Social Constructionism

“I had always thought that we used language to describe the

world - now I was seeing that this is not the case. To the

contrary, it is through language that we create the world,

because it is nothing until we describe it. And, when we

describe it, we create distinctions that govern our actions. To

put it another way, we do not describe the world we see, but

we see the world we describe.”

Joseph Jaworski, Synchronicity:

The Inner Path of Leadership

74

Social Constructionism Continued...

“Whether or not you can observe a thing

depends upon the theory you use. It is the

theory which decides what can be

observed.”

---- Albert Einstein

75

Social Constructionism Continued…

“We human beings create our own realities

through symbolic and mental processes and

that because of this, conscious evolutions of

the future is a human option.”

---- David Cooperrider

76

Heliotropic Systems

“Implied in scholarly research is the intriguing suggestion that

human systems are largely heliotropic in character, meaning

that they exhibit an observable and largely automatic

tendency to evolve in the direction of positive anticipatory

images of the future. Just as some plants exhibit a tendency

to grow in the direction of sunlight, there is a similar process

going on in human systems.”

---- David Cooperrider

77

4D Model of AI

78

Appreciative Inquiry ….….

• Invites members to engage in generative dialogue

• Turns thoughts toward that which is valued

• Engages people in collecting meaningful stories

• Creates a collective image that guide the organization

• Gives a feeling of worthiness

79

80

“The best way to predict the future is to create it.”

Peter Drucker

Action Planning

• Summarize individual learning from the

program

• Develop applications and development

plans

81

Possible Changes in the Critical Hierarchy

• Vision/Goals/Objectives-Where should the organization be going?

• Roles & Relationships-Who needs to do what with who

and how to get there?

• Policies & Procedures-What minimal guidelines will be

required as safeguards?

• Interpersonal Relations-What should they be, e.g. trust,

communications, helping?

82

Performance Management Process

Plan

Check

Act

Do

Source Process: Deming Cycle or Shewhart Cycle

•Position Description

•Align Org & Employee goals/obj

•Establish measures

•Compare performance w/measures

•Identify performance gaps

•Communicate, communicate

•Appraise performance

•Develop training plan

•Determine

effectiveness/motivation

•Match performance w/rewards & recognition

•Determine impact of the training plan

•Identify effectiveness of process & improve

Action Planning

Individual

• Select two or three important improvement targets

• Determine which areas you can make the most difference in with your participation

Small Group

• Review the individual plans

• Add perspective and/or ideas for improving other group members’ action plan.

84

Be Active! Make a Difference in your

Change Management Initiative

Challenges

At times do you feel that something like this is

waiting for you? 86

Session Summary

Hopefully, we explored theories, tools and techniques that will assist you to:

1. Better understand your leadership role in the

continuing change process.

2. Strategically plan agency and organizational change initiatives.

3. Develop strategies to implement the required change initiatives

4. Identify priorities and opportunities for your individual development.

87

Communicating with Staff

Team Lead/Manager – Exercise #5

Staff Communication

Exercise #5 • Your organization has estimated a 20%

reduction in revenue and the organization’s leadership is evaluating difference change initiatives.

• When, what and how would you communicate the upcoming changes. Also, what would your office’s role be in this change process?

Exercise #6

Comments/Notes

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Reference Materials

• Managing Transitions – Making the Most of Change

– William Bridges, PhD

• Leading Change – Harvard Business School – John P.

Kotter

91

Reference Materials (Continued)

• The Change Management Pocket Guide – Tools for Managing Change – Kate Nelson & Stacy Aaron

• Managing Change – DK Essential Managers – Robert Heller

92

Reference Materials (Continued)

• Managing Change & Transition – 7 Practical Strategies to Help You Lead During Turbulent Times – Harvard Business Press

• The Six Secrets of Change – What the Best Leaders Do to Help Their Organizations Survive & Thrive – Michael Fullan 93

Reference Materials (Continued)

• DK Essential Manager’s Manual – Robert Heller & Tim Hindle

Communicating Clearly

Managing Time

Making Decisions

Delegating Successfully

94

Reference Materials (Continued)

• DK Essential Manager’s Manual – Robert Heller & Tim Hindle (Continued)

Motivating People

Managing Teams

Managing Meetings

Presenting Successfully

95

Reference Materials (Continued)

• DK Essential Manager’s Manual – Robert Heller & Tim Hindle (Continued)

Negotiating Successfully

Interviewing People

Managing Change

Minimizing Stress

96

Reference Materials (Continued)

• 1001 Ways to Reward Employees – Bob Nelson, Ph.D.

• The Carrot Principle – How the Best Managers Use Recognition to Engage Their People, Retain Talent, and Accelerate Performance – Adrian Gostick & Chester Elton

97

Reference Materials (Continued)

• People Skills – How To Assert Yourself, Listen To Others and Resolve Conflicts – Robert Bolton, Ph.D.

• Conflict Management & Negotiation Skills for Internal Auditors – IIA Research Foundation – Joan Pastor, Ph.D.

98

Reference Materials (Continued)

• The 21 Irrefutable Laws of Leadership – Follow Them and People Will Follow You – John Maxwell

• Wooden on Leadership – John Wooden & Steve Jamison

99

Reference Materials (Continued)

• 2 Best Selling Books in 1 Volume – 25 Ways To Win With People & The 360º Leader – John C. Maxwell

• Everyone Communicates Few Connect – What The Most Effective People Do Differently – John C. Maxwell

100

Reference Materials (Continued)

• The Art of Talking So That People Will Listen – Getting Through To Family, Friends & Business Associates – Paul W. Swets

• How to Get Your Point Across in 30 Seconds or Less – Milo O. Frank

101

Reference Materials (Continued)

• Project Management – DK Essentials Managers – Andy Bruce & Ken Langdon

• What is Lean Six Sigma? – Mike George, Dave Rowlands & Bill Kastle

• 101 Ways To Improve Your Communications Skills Instantly – Jo Condrill & Bennie Bough, Ph.D.

102

Reference Materials (Continued)

• Make Your Point – Speak Clearly and Concisely Anyplace, Anytime – Kevin Carroll & Bob Elliott

• 10 Minute Guide To Leadership – Andrew J. Dubrin

103

Happiness to Some

Wrap-up & Questions

Phil Flora efafvain@io.com

In Closing

Two Things to Think About

1. One deep

2. One fun

Something to Think About

When planning for a year, plant corn. When planning for a decade, plant trees. When planning for life, train and educate people.

---- Chinese Proverb

Something to Think About

"Why isn’t there a special name for the tops of your feet?”

--- Lily Tomlin, Actress & Comedienne

For More Information:

Phil Flora

efafvain@io.com