IIE - A systems approach to change – understanding successful or not 20130922

A Systems Approach to Change – Understanding Successful or Not Lean Six Sigma Industry Practices – Supply Chain, Wednesday , September 25, 2013 10:55 – 11:40 am

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Agenda Systems Approach to Change

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1

Presentation Goals

2

Change Management Curves and Background

3

This an example text. Order Go ahead and replace it First is Order and Second Changes

4

Overlaps and Differences of Change Related Tools

5

Layers or Change and Positive and Negative Outcomes

6

Drivers of Change and Leading to Good

7

Summary and Questions

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Presentation Goals Change Management

• Understand Overlaps and Differences of – Positive and Negative Change Curves – 1st Order Change and 2nd Order Change – The many Change-oriented Tools and Systems Different Levels of Change – Predictors and Drivers of Change

Lots of Stuff Here

Agenda Systems Approach to Change

✓

1

Presentation Goals

✓

2

Change Management Curves and Background

3

This an example text. Order Go ahead and replace it First is Order and Second Changes

4

Overlaps and Differences of Change Related Tools

5

Layers or Change and Positive and Negative Outcomes

6

Drivers of Change and Leading to Good

7

Summary and Questions

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Change and Murphy’s Law "Things will get worse before they get better" Ehrman's Commentary on Ginberg's Theorem (from the infamous Murphy's Laws)

Happy Results Over Time Copyright © 2007, www.WestbrookStevens.Com

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Imara’s stages of personal grief Happy Results Over Time - But it Takes Time

9/26/2013

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A Stress Curve: Emotional Response Pattern self-esteem/performance

high

shock hope

recovery disillusionment

anger depression

fright low

|

|

fight |

|

flight |

|

|

facing reality |

|

|

| weeks/months

Happy Results Over Time - but you may not be as happy 9/26/2013

RSG: stressmgt1 2/27/97

Valley of Despair

Understanding Organizational Change Converting Theory to Practice Lynn Fossum, Crisp Pub, Inc. 1988-90?

Work Output and Commitment

Starts Before the Change and There are Things We Can Do 100 90 80 70 60 50 40 30 20 10 0

Mitigating the Impact of Project Cancellations on Productivity Michael Bommer and Victor Pease, National Productivity Review Volume 10, No. 4 Autumn 1991

-4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12

Natural Cocoon Phase

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Not Always Despair But Always Cocoon Phase

Steven Gambrell and Craig Stevens 8 Industrial Management Magazine, July/August1992

Westbrook Stevens

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Schneider's classic change curve Life is a Highway and We’re Going to Drive it All Night Long

Roller Coaster

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Early 90’s

Olden Days

“S” Curve

Technology is Changing Faster Today (So is Acceptance of Change?)

Late 90’s Abernathy 9/21/2013 and Utterback, 1978 Westbrook Stevens 10 U.S. Department of Labor Study Copyright © 2007, www.WestbrookStevens.Com

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Risk and the “J” Curve The Change Curve Is More Than Emotion Positive ROI

Good Risk Management Average Risk Management

Breakeven Point

Negative ROI

9/26/2013

Poor Risk Management

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Westbrook Stevens Model

Not Always Despair But Always Cocoon Phase, The Dip Starts Before the Change, And We Can Control Some of the Depth of the Cocoon Phase

Before A Change

During A Change

After A Change

Natural Cocoon Phase

Based on the Steven and Stevens Change Model, 1990 Copyright Š 2007, www.WestbrookStevens.Com

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I Told You There Are Microsoft Web Site, 2001 Some Things We Can Do With OCM Change Introduced

Without OCM

Time

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II. THE FIFTH DISCIPLINE: THE PoorCORNERSTONE Strategic Change Management OF THE LEARNING = Sad ORGANIZATION Results Over Time

The laws of the fifth discipline

1. Today’s problems come from yesterday’s

solutions – usually because they shift the problem from one part of the system to another, so to the person who applied the solution, it appears to have gone away. 2. The harder you push, the harder the system pushes back – compensating feedback, eg a scheme to provide low cost housing and job training in one place is flooded by low-income migrants so problems get worse.

3. Things get better before they get worse

– eg, new wells are dug and villages are saved; but this lowers the water table faster

so in the long term droughts are worse than before. 4. The easy way out usually leads back in. 5. The cure can be worse than the

disease – the most insidious effect of non-systematic solutions is the need for more and more of the solution. Ill-conceived interventions, whether by the government or by an individual trying to solve their stress problems by social drinking, not only fails to solve the problem but leads to addiction. It’s a problem of ‘shifting the burden to the intervener’. 6. Faster is slower – in a complex system, fastest growth is not the best. In organisms, they lead to cancer; in organizations, they lead to crisis. 7. Cause and effect are not closely related in time and space. 8. Small changes can produce big results, but the areas of highest leverage are often the least obvious – it takes a huge force to turn a moving oil tanker to the left by pushing the bow to the left, but it can be done easily by turning a small rudder to the left, which by changing the water pressure, sucks the stern to the right. To realize this you have to understand the complexities of hydrodynamics. Learning to see underlying ‘structures’ rather than ‘events’, and to think in terms of ‘processes’ rather than ‘snapshots’, helps you spot the points of leverage. 9. You can have your cake and eat it too, but not at once – manufacturers used to think that you had to choose between high quality and low cost, but then discovered that raising quality meant improved methods, lower warranty costs, fewer complaints, higher sales, and so eventually lower costs as well.

10. Dividing an elephant in half does not make two smaller elephants – if you set up strong divisions between different parts of the organization, you don’t get each one working independently, you just get a mess. The heads of marketing, manufacturing and research are often like the blind men trying to describe an elephant. 11. There is no blame – the cure for problems is in relationships and systems.

9/26/2013

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Copyright © 2007, www.WestbrookStevens.Com Peter M. Senge, The Fifth Discipline, The Art & Practice of The Learning Organization, Currency Doubleday, 1994

Limits to Growth Archetype Behavior Over Time with Change Curve

Rate of Growth (Productivity, Sales, Profit, Etc.)

Things Get Better Before They Get Worse

Project Management Phase

Benefits of Doing Change/Project Management Well

Effort

Time

Limits to Growth and Underinvestment Archetype Behavior Over Time

Rate of Growth (Behavior over Time.)

Growth

Investment Performance Standards

Happy Results Requires Effort After the Change

Time

Based on William Braun Article on The Systems Archetypes

Rate of Growth (Sales, Profit, Etc.)

The Tragedy of the Commons Archetype Behavior Over Time

Organizational Profits

Varying Benefits to the Different Groups

Time

Happy Results Requires a Good Plan and A Systems Approach

Profit, Rate of Growth

Accidental Adversaries Archetype Behavior Over Time Partnership Building Time

Partnership are Complicated - Things Get Better Before They Get Worse

Time William Braun Article on The Systems Archetypes

Success to the Successful Archetype Profits Over Time During A Competition

Cumulative Profit at any Point in Time

Competition and Rewards

Cumulative Effect Counting The Rest of the Sales Force

Most Successful Sales Person During a Competition

Zero

Internal Competitions are Complicated Things Get Better Before They Get Worse

Time

Success to the Successful Archetype Performance Over Time After An Internal Competition Successful Group(s) Improve = Pride and Motivation

Performance

At Point of Rewards

Cumulative Effect

Losing Groups Slide Deeper = Shame and Dissatisfaction

Zero

Internal Competitions are Complicated Things Get Better Before They Get Worse

Time

Shifting the Burden Archetype Profits Over Time with Change Curve

Cumulative Profit

Focus on the Right Things

Project Management Phases

Zero Benefits of Doing Change/Project Management Well

Time

Shifting the Burden Archetype Cost Over Time with Project Cost Curve

Cumulative Cost

Focus on the Right Things Project Management Phases

Time

Cumulative Cost

The Escalation Archetype Cost Over Time with Project Cost Curve

Project 1 Management Phases

Project 2 Management Phases

Time

Eroding Goals Archetype Competitiveness and Capacity Based on Eroding Goals Focus on the Right Things Original Project Management Phases

Current Reality

Project Management

Desired Goals

Future Competitiveness and Capacity

Eroding Goals Archetype Competitiveness and Capacity Based on Eroding Goals Focus on the Right Things Original Project Management Phases

Current Reality

Desired Goals

Future Competitiveness and Capacity

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2nd Law of Thermodynamic Things Deteriorate

There is also the

Law of Entropy Happy Results Over Time Takes Work But There are Other Mystical Forces At Work

Normal Business Lifecycle Management Business is Like Life

Embryonic

Mature Growth Aging

Entrepreneur

Sophisticated Critical Administrator

Opportunistic

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Normal Business Lifecycle Management Products and Services Are Business Products Lifecycles

Embryonic Feasibility Growth

Mature Operation

Acquisition or Development

Entrepreneur

Aging Disposal

Sophisticated Critical Administrator

Opportunistic

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Decline

Risk Is Part of the Curve Maturity

Growth

Introduction

Development

Cash

Product and Services Have a Lifecycle

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Revenue

Profit

Time Copyright Š 2007, www.WestbrookStevens.Com

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Lifecycles and “S” and “J” Curves and Continuous Improvement

Happy Results Requires Lots of Change but Change Is Risky Copyright © 2007, www.WestbrookStevens.Com

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Time and Distance Affects the Change Curve Within the Organization

Time Affects Change and Emotion

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Imenger’s morale curve

9/26/2013

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Agenda Systems Approach to Change

✓

1

Presentation Goals

✓

2

Change Management Curves and Background

✓

3

First Order and Second Order Changes

4

Overlaps and Differences of Change Related Tools

5

Layers or Change and Positive and Negative Outcomes

6

Drivers of Change and Leading to Good

7

Summary and Questions

www.issuu.com/craigastevens

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craigastevens@westbrookstevens.com

1st Order Changes or Continuous Improvement Adapt Adapt

Adapt

Start

1/7/2013

1/7/2013

To Stay In Business Requires Continuous Improvements (Adaptations) 34 Copyright Š 2007, www.WestbrookStevens.Com 34

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Westbrook Stevens Model 2nd Order Changes Become Metamorphoses Before A Change

During A Change

After A Change

Natural Cocoon Phase

Based on the Steven and Stevens Change Model, 1990 Copyright Š 2007, www.WestbrookStevens.Com

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Agenda Systems Approach to Change

✓

1

Presentation Goals

✓

2

Change Management Curves and Background

✓

3

First Order and Second Order Changes

✓

4

Overlaps and Differences of Change Related Tools

5

Layers or Change and Positive and Negative Outcomes

6

Drivers of Change and Leading to Good

7

Summary and Questions

www.issuu.com/craigastevens

36

System/Process

Purpose

Our Organizational Change Management Phases

Understand and Master Change

10.10.

International Standards

10.20.

National Regulations

10.30.

Revolution/Paradigm Shift

10.40.

Industry Standards

10.50.

Profitability, Lean, Quality, Security, Sustainability, Survivability, Green

International Pressures on Our Organization National Pressures on Our Organization A Shift in the World View of What is Normal Industry Pressures on Our Organization Major Goal Oriented Concepts and Philosophies That Trickle Down

Excellent Management Model

Leadership Role

0.0.

For Analysis Purposes we will use the example of a major organizational change related to a merger with products and services being consolidated Comparisons of Pressures, Concepts, and Tools of Continuous Improvement and Change Management on Implementation Lifecycle Phases of Our Organization Before the Change Happens

10

Industry Wide, National, or World Wide General Concepts or Systems Change in Industry and/or National View of Business

Our Acceptance of New Concepts

Our Change

Our New Norm

National Regulation Changes Based on Some Perceived Need

Change in Industry and/or National View of Business

Our Acceptance of New Concepts

Our Change

Our New Norm

Some Revolutionary Change (we could have created it)

Industry or Public Change In Acceptance Normal Reality

Our Adaptation or Use of New Reality

Our Change

Our New Norm

Some Catalyst for Change Based on Some Perceived Need

Industry Acceptance of a Standard

Our Acceptance of Standard

Our Change

Our New Norm

Development of Concept

Industry Acceptance of a Standard

Our Acceptance of Standard

Our Change

Our New Norm

Enterprise Wide General Concepts or Systems Understands Role and Develops the Competencies to Lead

Cultural Development Role

Build a History of Commitment and Empowers Leads and Paints the Vision for people to Subordinates to Lead follow Start Supporting Company

Customer Focus Role

20.3

20.4

20.5.

20.20.

20.50.

20.60.

20.70.

Strategy and The Storms of Chaos Model

Drivers of Change Model

Waves/Trends - Opportunities and Threats Buoyancy/Support Opportunities and Threats Lightning/Sudden Emergency Opportunities and Threats

Prepare for next change and build a history of commitment Participate in Future

Focus Customer and Shelter Customer for Change

Keep Focus on Customers

Focus Team Effort on Successful Change

Keep Cooperative Team Focus

Build Team Skills Focused on Change Understand Skills and Core Companies

Continuously Evaluate, Learn, Build, and Use Core Competencies and Problem Solving Skills Continuously

Step 1 - Know the Rules

Step 2 - Know the Goals

Step 3 - Discover the Criteria Related to the Goals

Step 4 - Document the Step 5 - Collect Step 6 Indicators Related to the the Data Analyze the Criteria Data

Step 7 - Use the Data and Repeat

Understand the Trends Build Relationships Prepare for Lightning and Manage Risk

Storm/Enemy Forces Opportunities and Threats The Ship/Organizational Strength and Weaknesses

Understand the Enemy

External Environment (Global and Domestic) People Organizational Structure

Know the Environment

Manage Risks Fight the Enemy Navigate and Sail the Ship

Lead the People Change the Organization

Develop the Organization

Internal Environment Systems Model and Systems To design, develop, and Understanding the Drivers of Change and the Document and Understand the Systems and Connect the Systems Phase 1 - Define Concept and Phase 2 - Analysis the Thinking/Engineering integrate systems throughout Interreationships between: (1) External Processes of the Company Loops and Layors of Analysis Requiremetns for the Functional Requirements the company. All the Environments, (2) People, (3) Organizational Relationships Required Change and Allocation of of interrelationships and Structure, (4) The Internal Enviroment, and (5) Funcitonal Requirements interactions of processes, Systems and Processes. (who, what, when, where, people, and systems required why of Functional to understand where to spend Requiremetns) resources to get the biggest bang for the buck.

Three Phases of Change Understand and Master Before the Change Happens Management Model Change Enterprise Configuration Control the Form, Fit, and configuration identification, (find the critical items, documentation, processes, and systems) configuration control - Develop CM processes, policies, Management (CM) and CM Function of Critical Systems procedures, technical support, asbuilts, and review boards.

Office (CMO) Enterprise Portfolio Control the commitment to Create Policies, Procesures/Systems to Project Pull Forces Pull Forces - Understand Push Forces - Understand Develop List of Decide on List Select Projects Management projects selected by the Selection Understand the the Trends R&D and Technology Project of Potential enterprise.

Market and Projects Environment Enterprise PMO Design, Develop, Manage and Create Policies, Procesures/Systems for Project Selection and Project Management, Manage the Enterprise Portfolio Systems, an d Train and Support PM and Teams Support the Project and Program Management Support Systems Strategic Business Analysis The people, processes, and Enterprise Analysis = Business Architecture, Business Solutions, Requirements Elicitation Requirements Analysis and tools related to understanding Business Opportunities, Business Case, Risk Assessments, Decision Documentation, the requirements and needs of Packages stakeholders.

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Manage and Build the Culture Phase 3 - Design Phase 4 Phase 5 Tasks and Performance Performance Understand the workloads and Selection and Interfaces and Training Training Develop the Estimations and Development Team Reviews of Requirements

Phase 6 - Performance Assurance and Problem Investigations

During the Change

After the Change

configuration status accounting - Develop and use tracking systems configuration verification and infrastructure.

Develop audit

Support Projects and Project Managers, Track Progress and Report on Findings

Requirement Communication

Record records and Lessons Learned, Support Training of PM and Teams and Continuously Improve Systems

Solution Assessment and Validation

Department or Program Specific General Concepts or Systems

30.10.

Program Management

30.20.

Departmental PMO

30.30.

Six Sigma DMAIC

To set management standards and manage several projects.

Design, Develop, Manage and Support the Project and Program Management Support Systems Systematic and repeatable data driven approach to problem solving and process improvement

Development of PM Standards, Systems, Policy, and Procedures

Project Support Phase

Create Policies, Procesures/Systems for Project Selection and Project Management, Manage the Department Portfolio Systems, an d Train and Support PM and Teams

Define

Measure

40 40.00.10

Communication (Time Frame, Progress, Reassurance, Reassignments, Acknowledgements‌ Support Change

Start Supporting Change

Understand Teams

Skills and Problem Solving Role Continuous Improvement/Change Integration Role Performance Measurement Role

Planning, Communication

Start Focusing on what is best of customers

Team Role

20.2

After the Change

International Changes in View of Business

20 20.1

During the Change

Support Projects and Project Managers, Track Progress and Report on Findings

Analyze

Implement

Improvement of Standards, Systems, Policy, and Procedures Phase Record records and Lessons Learned, Support Training of PM and Teams and Continuously Improve Systems

Control

Project or Product Specific Concepts or Systems Business Analysis

The people, processes, and Enterprise Analysis = Business Architecture, Business Solutions, tools related to understanding Business Opportunities, Business Case, Risk Assessments, Decision the requirements and needs of Packages stakeholders.

Requirements Elicitation

Requirements Analysis and Documentation,

40.10.

Requirement Communication

Solution Assessment and Validation

Project Specific Concepts or Systems

40.10.10

Project Management

40.10.20

PM Change Control/CM

To management the implementation of a change.

To manage the changes within the project.

Concept Phase

Planning Phase Configuration Identification

40.20.

Implementation Phase

Configuration Control

Transition/Closure Phase

Operations and Maintenance Phases

Configuration Status Accounting configuration verification.

Product Specific Concepts or Systems

40.20.10

Value Engineering

40.20.20

Software Development Product Management/Systems

To increase total life-cycle value for a product, design, or service.

Many Approaches to the Lifecycle (Rapid prototyping, Extreme Programming,

Information Phase

Creative Phase

Evaluation Phase

Investigation Phase

Requirements

Implementation Phase

Specification

Design

Coding

Integration

Testing

Release

Maintenance

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Some Change Related Tools • Strategy • Continuous Improvement – Lean – Six Sigma • IE, Systems Engr, Value Engr • Implementation Management – Business Analysis – Program/Project Management – Cultural/Organizational CM • Configuration Management

Tools to Stay Competitive

Tools to Manage Implementation Tool to Control Change

Strategy - Chaotic Change and Thrive-ability Westbrook Stevens Storms of Chaotic Change

The Lightning -Unforeseeable Future Events

The Storm -Threatening Competition, Societal, Political and Other Enemy Forces

The Waves -Foreseeable Future Events

The Buoyancy -- Supporting Market, Societal, Political and Other Allied Forces

Strategy and The Storms of Chaos Model Before A Change

During A Change

After A Change

Understand the Trends Build Relationships

Prepare for Lightning Understand the Enemy

Manage Risks Fight the Enemy

Navigate andPhase Sail the Ship Natural Cocoon

Strategy is all about Change Copyright Š 2007, www.WestbrookStevens.Com

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Change Related Tools • Strategy • Continuous Improvement – Lean – Six Sigma • IE, Systems Engr, Value Engr • Implementation Management – Business Analysis – Program/Project Management – Cultural/Organizational CM • Configuration Management

Tools to Stay Competitive

Tools to Manage Implementation Tool to Control Change

Our Three Easy to Understand and Use Improvement Phases KISS Principle Lean Tools 1. Root Cause Analysis of Process A= 2. Value Stream Mapping Improvement Assessments 3. Flow Charting

P = Problem Solving

4. A3 Processing and Reporting 5. Spaghetti Diagram 6. 5 S Events

I = Implementation Using Project Management Tools/Support

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Our Three Phases of Continuous Improvement

Before A Change 1. Assessment Phase 2. Problem Solving Phase

During A Change

After A Change

3. Implementation Phase

Later do the Results Assessment

Natural Cocoon Phase

Improvement is all about Change Copyright Š 2007, www.WestbrookStevens.Com

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Our Three Easy to Understand and Use Improvement Phases

KISS Principle of Process Improvement and 6-Sigma

A= Assessments

6-Sigma Tools Goals Remove Variations and Improve Quality Define Measure Analyze

P = Problem Solving

I = Implementation Using Project Management Tools/Support

Define Measure Analyze Implement Control 44

6 Sigma and the Three Phases Change To Improve the Seven Attributes of Excellent Management

Before A Change 1. Define 2. Measure 3. Analyze

During A Change 4. Implement 5. Control

After A Change Later Review and Analyze Results

Natural Cocoon Phase

6 Sigma is all about Change Copyright Š 2007, www.WestbrookStevens.Com

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Change Related Tools • Strategy • Continuous Improvement – Lean – Six Sigma • IE, Systems Engr, Value Engr • Implementation Management – Business Analysis – Program/Project Management – Cultural/Organizational CM • Configuration Management

Tools to Stay Competitive

Tools to Manage Implementation Tool to Control Change

Value Engineering To increase total life-cycle value for a product, design, or service.

Before A Change 1.

2.

3.

4.

5.

During A Change

After A Change

Information Phase Creative Phase Evaluation Phase Investigation Phase Implementation Phase

Natural Cocoon Phase

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47

www.issuu.com/craigastevens

Change Related Tools • Strategy • Continuous Improvement – Lean – Six Sigma • IE, Systems Engr, Value Engr • Implementation Management – Business Analysis – Program/Project Management – Cultural/Organizational CM • Configuration Management

Tools to Stay Competitive

Tools to Manage Implementation Tool to Control Change

Business Analysis and the Three Phases of Change Before A Change 1. Enterprise Analysis

During A Change

4. Requirement Communication

After A Change

5. Solution Assessment and Validation

2. Requirements Elicitation 3. Requirements Analysis and Documentation

Natural Cocoon Phase

BAs are all about Change Copyright Š 2007, www.WestbrookStevens.Com

49

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Change Related Tools • Strategy • Continuous Improvement – Lean – Six Sigma • IE, Systems Engr, Value Engr • Implementation Management – Business Analysis – Program/Project Management – Cultural/Organizational CM • Configuration Management

Tools to Stay Competitive

Tools to Manage Implementation Tool to Control Change

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Project Management is the Change Implementation Tool Before the Change

During the Change

After the Change

An International Symbol for Project Management

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craigastevens@westbrookstevens.com

1st Order Changes or Continuous Improvement Some 1st Order Changes Often become 2nd Order Changes

Adapt

Start

1/7/2013

Adapt Adapt

Larger Changes Require Project Management Copyright Š 2007, www.WestbrookStevens.Com 52

Project Lifecycle

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Project Management and the Three Phases of Change Before A Change

During A Change

After A Change

Natural Cocoon Phase

PM is all about Change Copyright Š 2007, www.WestbrookStevens.Com

54

RSG: projcontrl04 4/9/97

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Project Budget Life Cycle Looks Like a Business Life Cycle

Expenditure rate ($/mo.)

Budgeted Cost Curves Phase I

Accumulated costs ($)

3

Phase III

Phase IV

planned monthly expenditures

actual $ spent

0

A Project Cumulative Budge Curve Looks Like an “S” Curve

Phase II

6 8 months Total Budgeted Project Cost

14

16

Typical budgeted expense s-curve what the completed work actually cost = ACWP

0

3

6

what the scheduled work is supposed to cost= BCWS Cost $ ( actual > planned ) a measure of project’s total performance?

8 months 14 16 review date Copyright © 2007, www.WestbrookStevens.Com

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Cumulative Cost % Complete

Project “S Type” Curve Superimposed on Change Curve The Depth of the Dip Depends on How Well We Manage the Cost and Time Of the Project

Time Copyright © 2007, www.WestbrookStevens.Com

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PM Earned Value Cost Curves Measures to Help Control the Cost of a Project and the Change Curve FCAC BCAC

FCTC

accumulated costs ($k)

100 80

60 PSS

50 OCD

RSG: projcontrl04 4/9/97

PCD

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57

Agenda Systems Approach to Change

✓

1

Presentation Goals

✓

2

Change Management Curves and Background

✓

3

First Order and Second Order Changes

✓

4

Overlaps and Differences of Change Related Tools

✓

5

Layers or Change and Positive and Negative Outcomes

6

Drivers of Change and Leading to Good

7

Summary and Questions

www.issuu.com/craigastevens

58

Strategic Management journal, Meyer, Brooks, and Goes 1990, Wiley and Sons, As reported by Hersey, Paul, Kenneth Blanchard and Dewey Johnson, Management of Organizational Behavior, Leading Human Resources 8th ed., Prentice Hall, NJ 2001, pp. 388.

Continuous Improvement (1st Order Change)

Major Step Change (2nd Order Change)

Told you So Adaptation

Metamorphosis

Focus: Incremental Change within the organization

Focus: Frame-breaking change within organizations

Mechanisms: •Instrumentalism •Resource dependence

Mechanisms: •Life-cycle stages •Configuration transitions

Evolution

Revolution

Focus: Incremental change within established industries

Focus: Emergency, transformation, and decline of industries

Mechanisms: •Natural selection •Institutional isomorphism

Mechanisms: •Punctuated equilibrium •Quantum speciation Copyright © 2007, www.WestbrookStevens.Com

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Classifications of Change This Colum n is From the Firm s Point of View

1st Order Changes -

2nd Order Changes -

Small Incremental Changes

Major Step Changes

Positive Negative Positive Results Results Results Internal Environmental Levels st

1 Level = Individual or Employee Level

Negative Results

Adaptation

Deterioration

Metamorphosis

Dissolution

Incremental changes related to people that leads to positive results.

Incremental changes related to people that leads to negative results.

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

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

Adaptation

Deterioration

Metamorphosis

Dissolution

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.

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

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.

People

2nd Level = Organization or Division Level People with or without Technology

3rd Level = Firm or Level People with or without Technology

External

Metamorphosis

Dissolution

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

EnvironmentalCopyright LevelsŠ 2007, www.WestbrookStevens.Com

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Classifications of Internal Organizational Change st

(#.#.1) 1 Order Changes - Small Incremental Changes Expected Results> Action Choice

(3.0) 3rd Level = Firm or Corporate Changes

nd

Order Changes - Major Step Changes

(#.#.1.1) Positive Results = Adaptation

(#.#.1.2) Negative Results = Deterioration

(#.#.2.1) Positive Results = Metamorphosis

(#.#.2.2) Negative Results = Dissolution

(#.#.1.1.1) Preemptive

(#.#.1.2.1) Preemptive

(#.#.2.1.1) Preemptive

(#.#.2.2.1) Preemptive

(1.1.1.1.1) Incremental (1.1.0) Happens to changes related to Your Organization people that leads (1.0) 1st Level = to positive results.

Individual, Employee, Incremental People, or Personal (1.2.0) Your changes related to Changes Organization people that leads Makes the Change to positive results.

Happen

(2.0) 2nd Level = Group/Project/Progra m/Division Changes

(#.#.2) 2

(#.#.1.1.2) Reactive

(#.#.1.2.2) Reactive

(#.#.2.1.2) Reactive

(1.1.1.1.2) (1.1.1.2.1) (1.1.1.2.2) (1.1.2.1.1) Frame (1.1.2.1.2) Frame Incremental Incremental Incremental breaking change breaking change changes related to changes related to changes related to related to people related to people people that leads to people that leads to people that leads that leads to that leads to positive results. negative results. to negative results. positive results. positive results.

(1.1.2.2.1) Frame breaking change related to people that leads to negative results.

(#.#.2.2.2) Reactive

(1.1.2.2.2) Frame breaking change related to people that leads to negative results.

Incremental Incremental Incremental Frame breaking Frame breaking Frame breaking Frame breaking changes related to changes related to changes related to change related to change related to change related to change related to people that leads to people that leads to people that leads people that leads people that leads people that leads people that leads positive results. negative results. to negative results. to positive results. to positive results. to negative results. to negative results.

Incremental changes within a (2.1.0) Happens to part of the larger Your Organization entity that leads to positive results.

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

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

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

Incremental changes within a (2.2.0) Your part of the larger Organization Makes the Change entity that leads to positive results.

Happen

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

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

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

Incremental changes related to the entire (3.1.0) Happens to company/firm or Your Organization larger entity that leads to positive results.

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.

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 positive results.

Frame breaking change 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 negative results.

Incremental changes related to the entire (3.2.0) Your company/firm or Organization Makes the Change larger entity that leads to positive Happen results.

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.

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 positive results.

Frame breaking change 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 negative results.

Changes, Forced On an Organization and Proactively Managed with a Positive Result

Metamorphoses

Start

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Changes, Forced On an Organization and Reactively Managed with a Positive Result and Changed in the Middle of the Project

Metamorphoses

Start

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63

Changes , Forced On an Organization and Reactively Managed with a Negative Result

Start

Dissolution

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Division Level People with or without Technology

larger entity that leads to positive results.

entity that leads to negative results.

entity that leads to positive results.

Classifications of Change Deterioration Metamorphosis

Adaptation

3rd Level = This Colum is From Firm or nLevel the Firm s Point of View People with or without Technology

Incremental Incremental changes related changes related 1st Order Changes to the entire to the entire Small Incremental Changes company/firm or company/firm or larger entity that larger entity that Positive Negative leads to positive leads to negative Results Results results. results.

Adaptation Evolution

Deterioration Degeneration

4 Level = = Individual or Industry Level Employee People and/or Technology Level

Incremental Incremental changes Changesrelated within to that thepeople established leads to positive industry that results. leads to net-

Incremental Incremental changes Changesrelated within to that thepeople established leads to negative industry that results. leads to net-

People

positive results for the industry.

negative results for the industry.

th nd

25 Level Level == National Level Organization or People and/or Division Level Technology People with or without Technology

3rd th

Level = 6 Level = Firm or Level Global oror People with without Technology International People and/or

Dissolution

Frame breaking Frame breaking change related to change related to 2nd Order Changes the entire the entire Major Changes or company/firm or Stepcompany/firm larger entity that larger entity that Positive Negative leads to positive leads to negative Results Results results. results.

Internal Environmental External Environmental Levels Levels

th Level 1st

that leads to negative results.

Metamorphosis Revolution

Dissolution Disintegration

Frame Frame breaking breaking change to change related within the people that leads to established industry positive results. that leads to net-

Frame Frame breaking breaking change to change related within the people that leads to established industry negative results. that leads to net-

positive results for the industry.

negative results for the industry.

Evolution Adaptation

Degeneration Deterioration

Incremental Changes on the changes within national level a part of the that leads tothat larger entity net-positive leads to positive results results.for the nation.

Adaptation

Incremental Changes on thea changes within national level that part of the larger leads to netentity that leads negative results to negative for the nation. results.

Frame breaking change on the a within national level that part of the larger leads to net-positive entity that leads to results for the positive results. nation.

Frame breaking change on the a part within national level that of the larger entity leads to netthat leads to negative results results.for the nation.

Incremental changes related Changes on the to the entire global level that company/firm or leads to netlarger entity that positive leads to results positive for the global results.

Deterioration Degeneration Incremental

Incremental changes related Changes on the to the entire global level that company/firm or leads to netlarger entity that negative results leads to negative for the global results.

Metamorphosis Revolution Frame breaking

Dissolution Disintegration Frame breaking

Evolution Incremental

External

Revolution Metamorphosis

Disintegration Dissolution

Frame Frame changebreaking related to changebreaking related to change on the change on the the entire the entire global level that global level that company/firm or company/firm or leads to net-positive leads to netlarger entity that larger entity that results the negative results for leads tofor positive leads to negative global community. the global results. results.

Copyright Š 2007, www.WestbrookStevens.Com Environmental Levels

65

(10) Classifications of External Organizational Change st

(20) 1 Order Changes - Small Incremental Changes Positive Results = Evolution Action Taken >

Preemptive

Negative Results = Degeneration

(30) 2

nd

Order Changes - Major Step Changes

Positive Results = Revolution Preemptive

Reactive

Negative Results = Disintegration

Reactive

Preemptive

Reactive

Preemptive

Reactive

4th Level = Industry Level

Incremental Changes within the established Happens to You industry that leads to net-positive results for the industry.

Incremental Changes within the established You Make Happen industry that leads to net-positive results for the industry.

Incremental Changes within the established industry that leads to net-positive results for the industry.

Incremental Changes within the established industry that leads to net-positive results for the industry.

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

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

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

5th Level = National Level

Incremental Changes on the national level that Happens to You leads to netpositive results for the nation.

Incremental Changes on the national level that You Make Happen leads to netpositive results for the nation.

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

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

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

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

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

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

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

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

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

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

6th Level = Global or International

Incremental Changes on the global level that Happens to You leads to netpositive results for the global community.

Incremental Changes on the global level that You Make Happen leads to netpositive results for the global community.

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

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

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

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

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

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

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

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

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

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

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

Frame breaking change within the established industry that leads to net-negative results for the industry.

Incremental Incremental Frame breaking Frame breaking Frame breaking Frame breaking Changes within the Changes within the change within the change within the change within the change within the established industry established industry established industry established industry established industry established that leads to netthat leads to netthat leads to netthat leads to netthat leads to netindustry that leads negative results for negative results for positive results for positive results for negative results for to net-negative the industry. the industry. the industry. the industry. the industry. results for the industry.

Agenda Systems Approach to Change

✓

1

Presentation Goals

✓

2

Change Management Curves and Background

✓

3

First Order and Second Order Changes

✓

4

Overlaps and Differences of Change Related Tools

✓

5

Layers or Change and Positive and Negative Outcomes

✓

6

Drivers of Change and Leading to Good

7

Summary and Questions

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Kurt Lewin, Systems Management Notebook for MHR 4410, Trevecca Nazarene University, Management and Human Relations Department.

Warning The forces change as time goes by!

Driving Forces

Restraining Forces

The Part We Do Not See

10

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68

Productivity, Morale, Quality

Before A Change During A Change

After A Change

Natural Cocoon Phase

Function = F(x) = a (f(Leadership)) + b (f(Culture)) + c (f(Customer Focus)) + d (f(Teams)) + e (f(Problem Solving + Skills)) + g (f(Change Management + Continuous Improvement) + h (f(Performance Measurement)

The Dip is Made Westbrook Stevens

06/18/2001 Copyright Š 2007, www.WestbrookStevens.Com

69

Up of the 7 Attributes 14

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

http://issuu.com/craigastevens

People and Team Building

From Book Geronimo Stone http://www.llumina.com/store/geronimostone2.htm

70

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_buttles valdez.pdf 2/13 2013

Elements Required For Successful Change Vision

Resources

Capable Workforce

Capable Processes

Organizational Culture

Incentives

Action Plan

Change

Resources

Capable Workforce

Capable Processes

Organizational Culture

Incentives

Action Plan

Confusion

Capable Workforce

Capable Processes

Organizational Culture

Incentives

Action Plan

Anxiety and Frustration

Capable Processes

Organizational Culture

Incentives

Action Plan

Slow or Little Progress

Organizational Culture

Incentives

Action Plan Action Plan

Reinventing the Wheel

Vision Vision

Resources

Vision

Resources

Vision

Resources

Vision

Resources

Vision

Resources

Leadership

Systems and People

Capable Workforce Capable Workforce Capable Workforce

Capable Processes Capable Processes

Organizational Culture

Capable Workforce

Capable Processes

Organizational Culture

Problem Solving / Skills

Systems and Processes

Incentives

Culture

Action Plan

Incentives

People

Barriers to Change Sporadic Change

False Starts Problem Solving/Skills Tools

craigastevens@westbrookstevens.com

The Three Phases of A Change Before the Change

1/7/2013

During the Change

After the Change

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The Organization as a System And the Drivers of Change Model http://www.westbrookstevens.com/step_3.htm (1b) EXTERNAL ENVIRONMENT, Domestic

(4) INTERNAL ENVIRONMENT

(5) SYSTEMS

(2) People

PMO

Inputs

Change Bounces Around Our Organizations Like a Metal Ball in a Pinball Machine

(1a) EXTERNAL ENVIRONMENT, International

Some External Environmental Solutions Before A Change

During A Change

After A Change

Natural Cocoon Phase

1.

1.

2.

3.

4.

5.

6.

7.

Forecasting and Strategic Planning Risk Management History of Honesty and Quality Grounded In Truth Good Relationships Communications Systems

9/26/2013

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1.

2.

3.

4.

Working Systems Strong Internal Environment and Culture Communications Tactical Planning 74

2.

3.

4.

5.

6.

7.

Forecasting and Strategic Planning Risk Management Communications Lessons Learned Damage Control, Exploitation, and Public Relations Systems Improvement Communication

Steven and Stevens Change Model

People/Culture Solutions for Minimizing the Cocoon Stage Before A Change

During A Change

After A Change

Natural Cocoon Phase

1.

2.

3.

4.

5.

History of Commitment Relationship Building Planning and Leadership History of Commitment Communication

9/26/2013

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1.

2.

Valid Rationale Team Acknowledgment 3. Reassignment 4. Time Frame 5. Communication 75

1.

2.

3.

4.

5.

6.

Vision Planning Relationship Building Leadership Team Participation Communication

Steven and Stevens Change Model

Some Organizational Solutions Before A Change

During A Change

After A Change

Natural Cocoon Phase

1.

2.

1.

2.

3.

4.

Design Around Change as a Competitiveness Issue Master Leadership and Empowerment Master Core Competencies and Staffing Communications 9/26/2013

Copyright Š 2007, www.WestbrookStevens.Com

1.

2.

3.

4.

5.

Leadership and Empowerment Ego Control Fear Control Team Work Communications 76

3.

4.

Communications Master Core Competencies and Staffing Redesign and Continuous Improvement OD and Process Documentation and Verification

Steven and Stevens Change Model

Some Systems Solutions Before A Change

During A Change

After A Change

Natural Cocoon Phase

1.

2.

3.

Professional Project Managers Established Systems PMO, 6Sigma, Configuration Management Office, Value Engineering…

9/26/2013

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1.

2.

3.

4.

Following the Systems’ Rules Communication Leadership Support Culture Support

77

1.

2.

3.

4.

5.

Communications Lessons Learned Systems Improvement Verification Records Management

Steven and Stevens Change Model

Agenda Systems Approach to Change

✓

1

Presentation Goals

✓

2

Change Management Curves and Background

✓

3

First Order and Second Order Changes

✓

4

Overlaps and Differences of Change Related Tools

✓

5

Layers or Change and Positive and Negative Outcomes

✓

6

Drivers of Change and Leading to Good

✓

7

Summary and Questions

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78

www.issuu.com/craigastevens

Change Summary My thoughts

1. Valley of Despair is Misleading – Cocoon Phase is a Better Description – Change Curves Have Many Parts (Emotion, Technology, Planning, Risk, etc.)

2. The Cocoon Stage Can be Optimized – Work on Leadership, Culture, Customer Focus, People, Skill/Problem Solving, CM/Processes/Systems Thinking, and Performance Measures

Strategic Planning

Industrial/Systems Engineering

Process Improvement

Lean

Productivity Improvement

Project Selection Portfolio Management

Project Management Program Management