The Secondary Drivers of Change Understanding the Ripple Effect on Our Organization

The Secondary Drivers of Change

Understanding The Ripple Effect on Our Organizations and What is Happening Today?

A. Stevens

Craig

Successfully Managing Change

Requires Understanding That Every Change Drives Other Changes to One or More of Five Elements

Time and Distance Affects the Change Curve Within the Organization

(1a) EXTERNAL ENVIRONMENT, International

(1b) EXTERNAL ENVIRONMENT, Domestic

(4) INTERNAL ENVIRONMENT

(5) SYSTEMS

(2) People

ISO Quality Standards

The Organization as a System

Dissertation Attempt #2

(5) People (Behavior Theory)

(1a) EXTERNAL ENVIRONMENT, International

(1b) EXTERNAL ENVIRONMENT, Domestic

(3) INTERNAL ENVIRONMENT

(4) SYSTEMS

1st Level = Individual or Employee Level People

Classifications of Change

Adaptation Deterioration Metamorphosis Dissolution

Incremental changes related to people that leads to positive results.

Incremental changes related to people that leads to negative results.

2nd Level = Organization or Division Level

People with or without Technology

3rd Level = Firm or Level

People with or without Technology

Adaptation

Incremental changes within a part of the larger entity that leads to positive results.

Frame breaking change related to people that leads to positive results.

Frame breaking change related to people that leads to negative results.

Deterioration Metamorphosis Dissolution

Incremental changes within a part of the larger entity that leads to negative results.

Frame breaking change within a part of the larger entity that leads to positive results.

Frame breaking change within a part of the larger entity that leads to negative results.

Adaptation Deterioration Metamorphosis Dissolution

Incremental changes related to the entire company/firm or larger entity that leads to positive results.

Incremental changes related to the entire company/firm or larger entity that leads to negative results.

Frame breaking change related to the entire company/firm or larger entity that leads to positive results.

Frame breaking change related to the entire company/firm or larger entity that leads to negative results.

Some changes happen after you make a change and drive other changes to our external environment.

(1a) EXTERNAL ENVIRONMENT, International

(1b) EXTERNAL ENVIRONMENT, Domestic

(4) INTERNAL ENVIRONMENT

Examples: We Change a product line and it effects our customer base, brings with it more or different competition, and may make us more (or less) popular with the general public.

(5) SYSTEMS

(2) People

People with or without Technology

3rd Level = Firm or Level

This Column is From the Firms Point of View

People with or without Technology

larger

leads to positive results.

leads to negative results.

entity that leads to positive results. that leads

negative results.

Adaptation Deterioration Metamorphosis Dissolution

Classifications of Change

Incremental changes related to the entire company/firm or larger entity that leads to positive results.

1st Order ChangesSmall Incremental Changes

Incremental changes related to the entire company/firm or larger entity that leads to negative results.

Frame breaking change related to the entire company/firm or larger entity that leads to positive results.

Internal Environmental Levels

External Environmental Levels

Frame breaking change related to the entire company/firm or larger entity that leads to negative results.

2nd Order ChangesMajor Step Changes Positive Results Negative Results Positive Results Negative Results

Adaptation Deterioration Metamorphosis Dissolution

Evolution Degeneration Revolution Disintegration

4th Level = Industry Level

1st Level = Individual or Employee Level

People and/or Technology

People

Incremental changes related to people that leads to positive results.

Incremental Changes within the established industrythat leads to netpositive results for the industry.

Adaptation

Incremental changes related to people that leads to negative results.

Incremental Changes within the established industrythat leads to netnegative results for the industry.

Frame breaking change related to people that leads to positive results.

Frame breaking change within the established industry that leads to netpositive results for the industry.

Frame breaking change related to people that leads to negative results.

Frame breaking change within the established industry that leads to netnegative results for the industry.

Evolution Degeneration Revolution Disintegration

Deterioration Metamorphosis Dissolution

2nd Level = Organization or Division Level

5th Level = National Level

People and/or Technology

People with or without Technology

3rd Level = Firm or Level

People with or without Technology

6th Level = Global or International People and/or

Incremental Changes on the national level that leads to net-positive results for the nation.

Incremental changes within a part of the larger entity that leads to positive results.

Incremental changes within a part of the larger entity that leads to negative results.

Incremental Changes on the national level that leads to netnegative results for the nation.

Frame breaking change on the national level that leads to net-positive results for the nation.

Frame breaking change within a part of the larger entity that leads to positive results.

Frame breaking change within a part of the larger entity that leads to negative results.

Frame breaking change on the national level that leads to netnegative results for the nation.

Adaptation Deterioration Metamorphosis Dissolution

Evolution Degeneration Revolution Disintegration

Incremental changes related to the entire company/firm or larger entity that leads to positive results.

Incremental Changes on the global level that leads to netpositive results for the global

Incremental Changes on the global level that leads to netnegative results for the global

Incremental changes related to the entire company/firm or larger entity that leads to negative results.

Frame breaking change related to the entire company/firm or larger entity that leads to positive results.

Frame breaking change on the global level that leads to net-positive results for the global community.

Frame breaking change on the global level that leads to netnegative results for the global

Frame breaking change related to the entire company/firm or larger entity that leads to negative results.

Level 6: Global International Trends

1.Digital Transformation: With the increasing prevalence of technology in our lives, organizations must transform their operations to remain competitive.

2.Remote Work: The COVID-19 pandemic has accelerated the trend of remote work, and many organizations are now adopting hybrid work models.

3.Sustainability: Climate change and environmental concerns are becoming increasingly important to customers, employees, and investors.

4.Diversity, Equity, and Inclusion: With the growing recognition of systemic discrimination, organizations must prioritize diversity, equity, and inclusion (DEI) initiatives to create a more inclusive workplace culture.

5.Cybersecurity: As more organizations rely on technology for their operations, cybersecurity threats are becoming more prevalent.

6.Personalization: Customers expect personalized experiences from organizations, and organizations must leverage data and analytics to deliver personalized products, services, and marketing messages.

7.Artificial Intelligence: AI is transforming many industries, and organizations must adopt AI technologies to remain competitive.

11 trends that shape workplace volatility

1. Fairness and equity will be the defining issues for organizations.

2. Debates that have fairness at the core, whether it’s around race, climate change, or Covid vaccine distribution, have become flashpoints in society.

3. The gender-wage gap will continue to be a focus of attention.

4. The rise of remote work will continue.

5. The hybrid model of work is here to stay.

6. The skills gap will continue to widen.

7. The importance of employee well-being will continue to grow.

8. The role of managers will continue to evolve.

9. The use of data and analytics will become more widespread.

10.Companies will need to be more agile and adaptable than ever before.

11.Companies will need to be more transparent than ever before².

11 Trends that Will Shape Work in 2022 and Beyond - Harvard Business Review. https://hbr.org/2022/01/11-trends-that-will-shape-work-in2022-and-beyond.

9 future of work trends for 2023:

1. “Quiet hiring” offers new ways to snag in-demand talent.

2. Hybrid flexibility reaches the front lines.

3. Squeezed by competing leader and employee expectations, managers need support.

4. Employee well-being is a business imperative.

5. Organizations must prepare for a new era of hyper-automation.

6. The future of work is hybrid and distributed.

7. Organizations must embrace new approaches to diversity, equity and inclusion (DEI).

8. The rise of the “citizen developer” is changing the way we work with technology.

9. Organizations must prepare for a new era of digital ethics. 9 Future of Work Trends For 2023 - Gartner. https://www.gartner.com/en/articles/9-future-of-work-trends-for-2023.

Ten emerging trends shaping our new future

1. Globalisation will be redefined with a stronger emergence of social capitalism.

2. Acceleration of digital transformation.

3. The use of an on-demand workforce will increase.

4. A new burning platform for healthcare reform.

5. Supply-chains will fragment and reconfigure themselves.

6. The definition of ‘workplace’ will change.

7. As industries reinvent, upskilling and reskilling becomes a major priority.

8. Fairness and equity will be the defining issues for organizations.

9. Debates that have fairness at the core, whether it’s around race, climate change, or Covid vaccine distribution, have become flashpoints in society.

10. The gender-wage gap will continue to be a focus of attention¹.

Ten emerging trends shaping our new future - LinkedIn. https://www.linkedin.com/pulse/ten-emerging-trends-shaping-our-new-futurekumar-parakala.

Link to e-WBS.com - Driving Toward Excellence by Measuring Performance

Westbrook Stevens, Seven Attributes of Excellent Management Model, 1990 ©

Adapted from Palma Buttles-Valdez, Carnegie Mellon ,Process improvement Briefing to Software Engineering Institute, 2008 – who adapted it from and Dr. Mary Lippitt, Enterprise Management, LTD., 1987, ttp://www.jcse.org.za/upload/events/37/organisational_culture_and_people_issues_in_process_improvementdrpalma_buttlesvaldez.pdf 2/13 2013

Elements Required For Successful Change

Organizational Culture

Organizational Culture

Organizational Culture

Capable

Organizational Culture

Organizational Culture

Reinventing the Wheel

Barriers to Change

Leadership

Problem

Capable Processes

Capable Processes

Organizational Culture

Organizational Culture

Sporadic Change

Problem

Solving / Skills

Systems and Processes

People Systems and People

Culture

Solving/Skills

Tools

People

Using the SevenAttributes of the Mobile of Excellent Management How Might We Address the Secondary Changes Within Our Organization

Some External Environmental Solutions

Before A Change During A Change After A Change

Natural Cocoon Phase

1. Forecasting and Strategic Planning

2. Risk Management

3. History of Honesty and Quality

4. Grounded In Truth

5. Good Relationships

6. Communications

7. Systems

1. Working Systems

2. Strong Internal Environment and Culture

3. Communications

4. Tactical Planning

1. Forecasting and Strategic Planning

2. Risk Management

3. Communications

4. Lessons Learned

5. Damage Control, Exploitation, and Public Relations

6. Systems Improvement

7. Communication

Level 6: Global International Trends

1. How Companies Can Navigate Political Risks Successfully.

https://knowledge.wharton.upenn.edu/article/companies-can-successfully-navigatepolitical-risks/.

2. The 4 Types of Organizational Politics - Harvard Business Review.

https://hbr.org/2017/04/the-4-types-of-organizational-politics.

3. Building Public and Political Will for Climate Change Action.

https://environment.yale.edu/news/article/building-public-and-political-will-for-climatechange-action.

• According to a study by Wharton School of the University of Pennsylvania, companies can manage their political risks more proactively and strategically by identifying and collecting quantitative political risk indicators, developing or acquiring the ability to assess the business impact of political risk, and integrating political risk into enterprise-wide processes¹.

• Organizational politics refers to a variety of activities associated with the use of influence tactics to improve personal or organizational interests².

• Public will can include at least three levels of citizen engagement: general public support for an issue or policy, an issue public focused on that issue or policy, and an organized issue public mobilized to exert influence on policymakers³.

Works Against “Grounded in Truth”

Level 6: Global International Trends

1. (1) How global companies can manage geopolitical risk | McKinsey.

https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/howglobal-companies-can-manage-geopolitical-risk.

2. (2) Here’s How Climate Change Crisis Could Impact Business ... - Forbes.

https://www.forbes.com/sites/edwardsegal/2022/01/01/heres-how-climatechange-crisis-could-impact-business-operations-and-policies-in-2022/.

3. (3) Corporate Political Spending Is Bad Business - Harvard Business Review.

https://hbr.org/2022/01/corporate-political-spending-is-bad-business.

• According to McKinsey & Company, as political frictions inside and among regions heat up, the likelihood increases that they will affect a global enterprise’s operations, performance, or people¹.

• The climate change crisis is expected to have a greater impact on the operations and policies of companies and organizations this year².

• Corporations are facing increased scrutiny over their political spending—particularly when their stated values seem to contradict their lobbying efforts³.

Works Against “Grounded in Truth”

People often react to a change and drive secondary changes. Examples may include hiring new people or losing others due to a change may also change your organizational structure, motivational changes may appear with losses of power or changes in team chemistry, changes may drive training, productivity and/or quality may change, etc.

(1a) EXTERNAL ENVIRONMENT, International

(1b) EXTERNAL ENVIRONMENT, Domestic

(4) INTERNAL ENVIRONMENT

(5) SYSTEMS

(2) People

Normal Curve Compared to Most Common Mistake in Downsizing Workforce

Short-term

• Cost Down

• Profits up

• People Work Harder

• Fear is high

Long-Term

• Cost is higher than before

• Profits Fall

• People get burned out

• Hate follows fear

First To Leave If Not Treated Well

Super Stars

AboveAverage

BelowAverage

You have to Tie their Shoe Laces

Brain Storming Session with NASA about Government RIFs

These People are Entrenched and Doing Fun Work

Political - Could Not Get Rid of These People If You Wanted To

These People Do All the Work

Super Stars

AboveAverage

BelowAverage

Need Support

People

Using the SevenAttributes of the Mobile of Excellent Management How Might We Address the Secondary Changes Within Our Organization

People/Culture Solutions for Minimizing the Cocoon Stage

Before A Change During A Change After A Change

Natural Cocoon Phase

1. History of Commitment

2. Relationship Building

3. Planning and Leadership

4. History of Commitment

5. Communication

1. Valid Rationale

2. Team Acknowledgment

3. Reassignment

4. Time Frame

5. Communication

1. Vision

2. Planning

3. Relationship Building

4. Leadership

5. Team Participation

6. Communication

The organizational structure may be effected by a change and drive other changes.

(1a) EXTERNAL ENVIRONMENT, International

(1b) EXTERNAL ENVIRONMENT, Domestic

(4) INTERNAL ENVIRONMENT

Examples: We may have to create a new department, close one, or reorganize. This in turn may change people and the internal environment/culture.

(5) SYSTEMS

(2) People

Understanding Organizational Structures

90% of Organizations Fall Into 3 Types

Hierarchical/Functional

Projectized

Matrix

Other - Task Force or A Mixture

The Matrix: Balance of Power

Authority Level of Project Managers

Funct. Funct./ Balanced Project/ Projectized Structure Matrix Matrix Matrix Structure

Range of Matrix Structures

Balanced-Matrix Responsibilities

Functional Managers: Project Manager:

Understanding Organizational Structures

Each department requires an organizational structure designed for that organization.

The PMO should not be designed the same as a clinic or the shop floor. The legal department should not be designed like the call center. Organization designed around change are project focused.

Understanding Organizational Structures

Agility means quicker change and Project Management is the Primary Tool for Implementing Change. Therefore, highly Agile Organizations drive Organizational Structure Around Projects.

People

Using the SevenAttributes of the Mobile of Excellent Management How Might We Address the Secondary Changes Within Our Organization

Some Organizational Solutions

Before A Change During A Change After A Change

Natural Cocoon Phase

1. Design Around Change as a Competitiveness Issue

2. Master Leadership and Empowerment

3. Master Core Competencies and Staffing

4. Communications

1. Leadership and Empowerment

2. Ego Control

3. Fear Control

4. Team Work

5. Communications

1. Communications

2. Master Core Competencies and Staffing

3. Redesign and Continuous Improvement

4. OD and Process Documentation and Verification

The internal environment or culture often changes as other changes are implemented. Examples… Things may feel different, the productivity may drop, confusion may be higher, may not be fun anymore.

(1a)

EXTERNAL ENVIRONMENT, International

EXTERNAL ENVIRONMENT, Domestic

(1b)

(4) INTERNAL ENVIRONMENT

(5) SYSTEMS

(2) People

Things to Consider During a Change

-

Characteristics of Low Producing Organizations (describes bureaucracies)

Motivation is achieved by the exercise of control through authority • Jobs are organized, methods prescribed, standards are set, goals and budget are set by management

Compliance by hierarchical and economic pressure • Plans, trains, supplies, and tells everyone what to do. • Oversees the work

Rensis Likert, “An Integrating Principle andAn Overview,” The Great Writings In Management and Organizational Behavior, 2nd Edition pg. 216, Boone Bowen, McGraw Hill, 1987

Things to Consider During a Change -

Characteristics of High Producing Organization

Favorable attitudes toward the organization and work

•There is mutual confidence and trust through the organization

High Sense of involvement in achievement of goals

•Sense of dissatisfaction if goals are not met

Organization Effectively Harnesses motivational Concepts

•Ego, Security, Creativity, Curiosity, Economic,

Tightly Knit, functioning social system

•People like each other and want to help each other

Measurements for Self-Guidance

People

Internal Environment

Using the SevenAttributes of the Mobile of Excellent Management How Might We Address the Secondary Changes Within Our Organization

Consider Internal Environmental Issues When Planning a Change and Do…

Before A Change During A Change After A Change

Natural Cocoon Phase

1. Empower People to Help Solve Problems

2. Allow People to Control More of Their Circumstances

3. Build Trust

4. Communicate Early

1. Reassure People

2. Communicate

3. Treat People Like Trusted Allies

4. Involve People

1. Continue to Empower People

2. Paint a Vision of the Future

3. Training

4. Participative Roles

5. Communicate

Often Systems and Processes change based on other changes.

(1a) EXTERNAL ENVIRONMENT, International

(1b) EXTERNAL ENVIRONMENT, Domestic

Examples… Computers, Automated Systems, Innovation, The Facilities or Fleet of Automobiles and Trucks, Accounting Systems, etc.

(4) INTERNAL ENVIRONMENT

(5) SYSTEMS

(2) People

Some Systems Solutions

Before A Change During A Change After A Change

Natural Cocoon Phase

1. Professional Project Managers

2. Established Systems

3.

1.

1. Communications

2. Lessons Learned

3. Systems Improvement

2. Communication

3. Leadership Support

4.

4. Verification

5. Records Management

PMO, 6Sigma, Configuration Management Office, Value Engineering…

Following the Systems’ Rules

Culture Support

People

Using the SevenAttributes of the Mobile of Excellent Management How Might We Address the Secondary Changes Within Our Organization

Consider Systems Issues When Planning a Change and Do…

Before A Change During A Change After A Change

Natural Cocoon Phase

1. Communications

2.

3. Systems Improvement

4. Verification

1. Professional Project Managers

2. Established Systems

3. PMO, 6Sigma, Configuration Management Office, Value Engineering…

1. Following the Systems’ Rules

2. Communication

3. Leadership Support

4. Culture Support

Lessons Learned

5. Records Management

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