ORGANISATION CHANGE AND LEADERSHIP

Fullstream Transformation Model

UPSTREAM CHANGE (Setting the Foundations for Success) DOWNSTREAM MIDSTREAM CHANGE CHANGE (Implementation) (Design)

The Change Leaders Roadmap

Hear the Wake-up Call

TM

I. Prepare to Lead the Change

IX. Learn and Course Correct

II. Create Organizational Vision, Commitment, and Capability

VIII. Celebrate and Integrate the New State

III. Assess the Situation to Determine Design Requirements

VII. Implement the Change

IV. Design the Desired State

VI. Plan and Organize for Implementation

V. Analyze the Impacts

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The Change Leaders Roadmap as a Fullstream Process

TM

The Change Leaders Roadmap

Hear the Wake-up Call I. Prepare to Lead the Change

TM

IX. Learn and Course Correct

II. Create Organizational Vision, Commitment, and Capability

VIII. Celebrate and Integrate the New State

III. Assess the Situation to Determine Design Requirements

VII. Implement the Change

IV. Design the Desired State

VI. Plan and Organize for Implementation

V. Analyze the Impacts

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UPSTREAM CHANGE
Phase I: Prepare to Lead the Change Phase II: Create Organizational Vision, Commitment, and Capability Phase III: Assess the Situation to Determine Design Requirements
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PHASE I: PREPARE TO LEAD THE CHANGE

CHAPTER 1

START UP, STAFF, AND CREATE YOUR CASE FOR CHANGE

Organisation Change
It happens when a group of people recognizes that there is a reason to alter how organisation and its people operate.

Objective of Phase I: Upstream Change

Clarifying change leadership role Status of the change effort, and staffing the effort of the right people. Creating a clear case for change Assessing organisation readiness and capacity Strengthening leaders capability Clarifying overall change strategy Designing the optimal conditions and structure of change. It takes 60% to 70% of the change effort.
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Why there is a need of organisation changed?

Dramatic event
Competition Lost of market share

New technology
Merger of key competitors Closure of valuable factory Increase in turnover of critical talent

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Start up and staff effort

Obtain Project briefing

Identify : To ensure alignment, leverage progress.
what is known,
who has been doing what What ate the current situation

Interview various group that know about the change that are going to be impacted
Focus on change People issues Politic dynamics

Process expectations
History of the effort Perception of current events
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Clarify and staff initial change leadership roles.

To understand the key change leadership. To reduce redundancy and ensure full coverage of change leadership responsibilities and decisions. Role should be given to:
Most competent Best positioned to successfully lead the effort

Characteristics of change leader:

Conscious process thinking and design skills

Sophisticared when dealing with human dynamics, culture

Dedicate to personal development and building awareness.

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Activity One: Identify the Role and Characteristics of Leadership Roles

Key Change Leadership Roles

Sponsor Executive Team Change Leadership Team

Change Process Leader

Change Initiative Lead Change Project Team Change Consultant
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Create Optimal Working Relationship

To clarify the working relationship between people involves and the leadership roles Set of expectation for addressing
Quality
Effectiveness
Of working relationship

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Identify the Project Community

Identify
Who have interest Who will be affected

What is their impact

How is the involvement

From these information identify a GROUP Map

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Sample Project Community Map

Board of Directors CEO Sponsor HR Labor Relations Union Leaders Division B Division A Executive Team

Managers

Strategic Planning Initiative

Change Process Leader

Employees Change Leadership Team Compensation Initiative Customer Service Improvement Initiative SAP Initiative Targets Suppliers

Targets

Targets

Customers 18

What do you do with these group?

Keep these people informed of the status of the change Assigning them key roles in major change events Establish shared expectations for how they can add values to the effort Shaping your engagement strategy Identifying resistance and political dynamics in advance Training them in unique requirement of desired culture, mindset Positioning them as advocates, models of new behaviour.

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Create case for change and determine initial desired outcomes.

Building Your Case for Change

To define your case: Assess what is driving your change Determine type, scope, and target groups of the change Determine leverage points and urgency for change

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Design Process for Creating case

Who should be involved?
People who have big-picture understand of the

systematic and environment dynamics driving the needs for change

People who understand the need for a new culture
The level of urgency you face The degree to which your case and vision have been

formulated strategy
Content expert during transformation.
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Assessing Driver of Change

Environment Marketplace Requirements for Success Business Imperatives Organizational Imperatives Cultural Imperatives Leader and Employee Behavior Leader and Employee Mindset

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Clarify Type of Change

Three Types of Change

Developmental Change
Transitional Change

Transformational Change

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Three Types of Change

Developmental Change

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Three Types of Change

Transitional Change

OLD OLD STATE STATE

TRANSITION STATE

NEW STATE

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Three Types of Change

Transformational Change
Re-emergence

Success Plateau

Chaos Growth

Wake-Up Calls

Birth

Death: Mindset Shifts

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Identify the leverage points for change

Focus on attention on what to catalyze the change Identify the most important things you can do to prompt the greatest amount of needed change.

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Perform Initial Impact Analysis

Identify assessment before transformation Identify
Personal

Cultural

That contribute to impact of transformation

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Clarify Target Group and Scope

Identify
the breath and depth of change The target group

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Determine Degree of Urgency

Wrong perception
Change needs to occur fast than is humanly people.

Realistic urgency is important Factor of determination

External factor
Environment Marketplace Organisation

Internal factors
Culture Time for skill development Personal change People capacity

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Determine the Desired Outcomes

The results you will produce once you have successfully completed the change:
Vision and purpose of the change Goals for the change Metrics

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PHASE 1: PREPARE TO LEAD THE CHANGE

CHAPTER 2

ASSESS AND BUILD YOUR ORGANIZATIONS READINESS AND CAPACITY, AND BUILD LEADERS CAPABILITY TO LEAD THE CHANGE

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Factors Affecting Readiness

Emotional residue from past changes Understanding of marketplace forces Perceived value of the change

Willingness to let go of status quo and commit to future Degree of personal influence to make change vs. being done to
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Factors Affecting Readiness

Peoples beliefs about leaders providing them support Perceptions about leaders credibility and ability to lead change Fears about failing Feelings about having adequate resources, capacity, and skills
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Factors Affecting Readiness

Feelings about sense of urgency and ability to respond to it well Personal toll from past changes Perceptions that change decisions were made fairly/justly Assumptions about potential loss of personal power Discomfort with chaos
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Ensuring Capacity

Time, Attention, and Resources for

Time, Attention, and Resources for

OPERATIONS

CHANGE

100% CAPACITY

Any capacity required for change is not available for operations.

You will need to create the capacity required to make the change!!!
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Factors Affecting Capacity

Current business goals and priorities Number and pace of current changes Realism of current operating workload plus change work Ability to alter current commitments and responsibilities Available resources
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Factors Affecting Capacity

Current timelines; ability to adjust them Measures and rewards: only for operations? Degree of buy-in to change by functional leaders in control of operational workloads How mistakes and missed deadlines are handled

Cultural norms about saying no or setting limits

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What is Mindset?
Our worldview; the place or orientation from which we experience our reality and form our perceptions of it Fundamental assumptions about reality: core beliefs, values, mental models The source of our decisions, actions, and results!

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Build leader capacity to lead the change

Transformation involves
Mindset
Behaviour Culture

Leader should look at themselves Must access the 5 tracks in buidling the change leadership capability
Leadership breakthrough Leadership commitment and alignment

Change education: knowledge and skills

Executive and change leadership team development Individual leader development
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End of Day One

Need to Change
From discrete function looking out the entire enterprise Focus solely on external dynamics Inner issues of being in themselves and organisation culture

Remove dissonance by solving problem dissonance for sign of root causes and unconscious dyfunction operating patterns
Delegating change implementation embrancing what is require to play a significant role in leading change.
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Need to change
Managing and controlling a single, linear change project facilitating multiple interdependent change process. Treating people as cost structure Concern people feeling, personal needs, capacity and choices Any change project will go away Change is an ongoing reality that needs formal support and disciplines.
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Ensure Leaders Model Desired Mindset and Behaviour

Interventions that catalyze and reinforce mindset and behavioural change include:
Sharing the case for change as primary drivers of change Determine the desired culture as reflection on how mindset

and style Creating high engagement in revisioning organisation future Having the senior leaders openly talk about their mindset Employing large group meeting approaches to design the future state Building the teams required to implement the future Performing an impact analysis

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Try it Out
By using specific example, discuss the process for changing organisational mindset:
Set the foundational and motivation for changing

leader mindsets Get the attention of individual and the organisation. Build organisational momentum for change in mindset Reinforce and sustain the change in thinking and behaviour Align the integrate the change in the organisation with new mindset.
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Build leader commitment and alignment

Access the current commitment Cannot using the following strategies:
Superficial conversation Filled with false declaration

Empty head nods

Defensiveness Accusation

Steadfast position

Best method is to have dialogue

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Levels of Commitment
Commitment
Engaged Action Buy-In Agreemen t By Fear By Choice

Compliance

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Develop leaders change knowledge and skills

1. 2. 3. 4. 5. 6. 7. 8. Driver of change Type of change Importance of changing mindset and behaviour Project thinking, thinking system, conscious process design and facilitation. Develop a comprehensive change strategy Create comprehensive change infrastructure Establish need for rapid course correction Change culture to support desire outcomes.
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Develop executive and change leadership teams

Objective: To lead the organisation to transformation Two help tasks:
Leadership commitment
Participation in the leadership program

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PHASE I: PREPARE TO LEAD THE CHANGE

CHAPTER 3

CLARIFY YOUR OVERALL CHANGE STRATEGY

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Elements of Change Strategy

Values/Guiding Principles Change Governance: Change Leadership Roles, Governance Structure, DecisionMaking, Interface with Operations Initiative Identification and Alignment Fit and Priority of Your Initiative Multiple Project Integration Strategy
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Elements of Change Strategy

Bold Actions Engagement Strategy Change Communication Plan

Acceleration Strategies
Estimated Resources

Milestone Events and General Timeline

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Design Process for building change strategy

Determine the following:
How much of authority by the process leader
Who will input to various elements The elements of strategy to focus

Timeline for implementation

Medium and format for recording strategy How to ensure strategy fit the conditions

How to summarise, update and course correct

How to communicate change strategy
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Define Values and Guilding Principles

Values are the inherent qualities that lie at the essence of a behaviour or action. Guiding principle are high-level rules of conduct that guide behaviour and action. Culture change should be a part of the change strategy.

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Clear Governance and Decision Making

Good governance helps to define the role and authorities, a governance structure and clear decision making for change.

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Sample Hierarchical Structure

Sponsoring Executive Executive Sponsoring Change Process Leader Executive Team Executive Team

Organization Development & Change Management Consulting

Project Management Office Special Task Forces

Change Leadership Team Change Initiative Leads

Navigation Team Multiple Project Integration Team

Change Project Teams

Field Representatives
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Sample Network Structure

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Decision-Making Continuum
S H A R E D C O M M I T M E N T

ALIGNMENT CONSENSUS GROUP OWNER VOTE INPUT SELL

INDIVIDUAL OWNER

TELL

PARTICIPATION

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Types of Engagement

Rote Action

Thinking

Deciding

Creating

Follow Offer Identify Instructions Reactions Impacts Without Question

Selfgenerate Input

Provide Advice; Advocacy

Have Vote in DecisionMaking

Own Decision Process

Own Result and/or Implementation Process

Increasing Influence and Commitment

Guideline: Provide as much guidance about strategic directions as is available, then enable as many local decisions as possible about how to implement the new direction.
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Vehicles of Stakeholder Engagement

Targets: Individuals, Small Groups, Large Groups

Approaches: Face-to-Face or Technological

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Five Levels of Communication

1. Information-Sharing
2. Building Understanding

3. Identifying Implications
4. Gaining Commitment 5. Altering Behavior

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PHASE I: PREPARE TO LEAD THE CHANGE

CHAPTER 4

BUILD THE INFRASTRUCTURE AND CONDITIONS TO SUPPORT YOUR CHANGE EFFORT

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Four Component of Change Infrastructure

Change leadership role Governance structure Conditions for success Support mechanism

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Conditions for Success

Requirements essential to the achievement of your desired outcomes from a content, people, and process standpoint Examples:
Adequate resources Sufficient time to do a quality job

Communications and engagement that produce

informed and enrolled stakeholders

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Course Correction Model

Vision

Course Correction
Learning Wake-Up Calls: Feedback telling you to learn and course correct
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CURRENT REALITY

Process of Course Correction

Setting a direction based on your best intelligence Commencing action to reach your vision

Pursuing feedback, new information, your stakeholders and organisation.

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Stages of Personal Adjustment to Transition

VISION

7. Integrating Performance
2. Minimizing the Impact 1. Losing Focus (Denial)
(Shocked, Confused) (Confidence)

6. Searching for Meaning

(Hopeful)

5. Testing the Limits

(Curiosity, Bargaining)

3. The Pit (Fear,

Anger, Sadness)

4. Letting Go of the Past (Grief) Time

1989 Eartheart Enterprises. Used with permission.

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Determine measure of change

The objective of measurement Both positive and negative impact of measurement

What to be measured
Standard of measurement

Method of measurement

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CHAPTER 5 CREATE ORGANIZATIONAL VISION, COMMITMENT, AND CAPABILITY

PHASE II:

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Phase II
Purpose To engage the organization in the change To create collective understanding, intention, commitment, and momentum for producing transformational results To engage stakeholders in creating their future of choice To build the organizations change capability it needs to succeed
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How to achieve it?

Wide scale engagement Interactive dialogue Planned experience that impact peoples mindset and emotions Employee input and key change issues Making the distinction old method and new values Sharing responsible for critical action.
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Create Share vision

Visioning
Obtain agreement about the content of the

vision
Crafting the vision statement in words that

capture the compelling responsibilites

Ensuring that the entire organisation

understands the vision and commits to make it real.

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Writing Change Vision

Must be bold and challenging Words can energize people Use present tense to cause people act as if the vision is true.

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Building ownership of vision

Involve emotionally involvement and mental integration. Ensure employee not only understand it but talk about it. Lets people discuss and think about it to create momentum

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Demonstrate that old way of operating is gone

Increase organisation capability to change

To build people with knowledge, skills, mindset and behaviour Can be achieve through
Education Training Discussion

Invite brainstorm
Event to raise peoples self-awareness
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CHAPTER 6 ASSESS THE SITUATION TO DETERMINE DESIGN REQUIREMENTS

PHASE III:

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Phase III
Purpose To determine the design requirements of the future state To determine what success looks like in the eyes of the end-users, customers, and experts

To identify what in the organization currently serves the future state, what blocks it, and what it needs to create anew
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Types of Design Requirements

Organizational Constraints, Givens, Must Haves, Boundary Conditions Mission, Vision, and Business Imperatives Assessment Issues Job Requirements/Tasks Organizational Mindset and Behavior Political Implications Cultural Imperatives/Values to Model Technological Needs People Requirements
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MIDSTREAM CHANGE

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CHAPTER 7 DESIGN THE DESIRED STATE

PHASE IV:

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Phase IV
Purpose To design the desired state solution, including both the organizational/technological solutions and the human/cultural solutions

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Levels of Design
VISION
STRATEGIC MANAGERIAL

OPERATIONAL

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CHAPTER 8 ANALYZE THE IMPACT

PHASE V:

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Phase V
Purpose To understand the real demands the change effort places on the current organization

To organize for the effective planning of implementation

To identify impacts, issues, and questions that must be resolved before implementation can be planned
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Key Functions of Impact Analysis

1. Determines aspects of current organization that can be brought into the desired state. 2. Determines work required to implement desired state. 3. Enables decision-making about capacity/timing. 4. Surfaces show-stopper issues. 5. Gives resistors input to change process. 6. Ensures desired state will function effectively as an integrated system.
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Steps in the Impact Analysis and Implementation Planning Process

1. Design the process. 2. Select appropriate people to input. 3. Conduct the impact analysis.

4. Categorize and streamline impacts, assign impact group leaders. 5. Leaders select resolution groups.

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Steps in the Impact Analysis and Implementation Planning Process

6. Groups prioritize impacts and assess magnitude. 7. Review magnitude priority ratings. 8. Group leaders agree on issue resolution process. 9. Groups identify impact solutions and actions, and integrate as much as possible. 10. Leaders agree on compilation process and format of Plan.
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Steps in the Impact Analysis and Implementation Planning Process

11. Leaders share solutions and compile integrated actions into Plan. 12. Determine required resources.

13. Determine pacing strategy and timeline.

14. Complete Implementation Master Plan; obtain approval. 15. Communicate Plan to stakeholders.
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End of Day Two

CHAPTER 9 PLAN AND ORGANIZE FOR IMPLEMENTATION

PHASE VI:

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Phase VI
Purpose To understand how best to implement the desired state by resolving the issues and impacts of making the change To determine the magnitude of work, required action, resources, and time to implement To streamline the implementation process and develop the Implementation Master Plan To prepare the organization to take on implementation
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DOWNSTREAM CHANGE

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CHAPTER 10 IMPLEMENT THE CHANGE

PHASE VII:

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Phase VII
Purpose To implement the change in the most effective way

To monitor and course correct both the change process and the desired state throughout implementation

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CHAPTER 11 CELEBRATE AND INTEGRATE THE NEW STATE

PHASE VIII:

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Phase VIII
Purpose To celebrate the great milestone of achieving the desired state

To support the organizations integration and mastery of the new state at the individual, team, and system levels

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CHAPTER 12 LEARN AND COURSE CORRECT

PHASE IX:

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Phase IX
Purpose Meta-purpose: To fully understand how to improve on leading change in the future To create mechanisms for continuous improvement of the new state To evaluate and learn from this change effort and identify best change practices To close down this change effort
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Thank You