Change Management: Leadership in an Increasingly Complex World by Argentum

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MANAGING ORGANIZATIONAL CHANGE: Why the Soft Stuff is Really the Hard Stuff by Dr. David DeLong Argentum Senior Living Executive Conference Nashville, TN May 3, 2017

Smart Workforce Strategies david@SmartWorkforceStrategies.com (978) 369-5083 www.SmartWorkforceStrategies.com © D.W. DeLong 2017

Would You Like To: §  Learn how to improve the odds your change initiatives will succeed? §  Use a straightforward framework to plan the successful implementation of your workforce strategy? §  Know how to coach others to lead performance improvement initiatives more effectively? §  Be able to tell your boss or your board what they’re doing wrong when it comes to implementing change?

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Agenda §  Learn From Change Successes §  Putting Senior Living Change Projects in Context •  6 Critical Success Factors in Managing Organizational Change •  Applying Change Solutions to Your Initiatives

Exercise: Identifying Successful Change •  Identify a successful change initiative that you’ve been involved with. How did you know it was successful? •  What happened during implementation that made this change successful? •  What specific steps or actions did leaders take that made the initiative successful? •  Identify 1-2 principles from that change project that would be essential to apply in the future? © D.W. DeLong 2017

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DISCUSSION

Different Characteristics of Change Initiatives §  Incremental/Revolutionary §  Strategic/Tactical §  Individual/Institution-Wide §  Narrow Focus/Broad-Based Change §  Link to Business Stategy or Results Clear vs Unclear §  Top Down vs. Bottom Up (or Combination) §  Impacts Easily Measureable vs. Hard to Quantify © D.W. DeLong 2017

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Leader’s Roles in Change Management Leader As Strategist

Leader As Inter-Personal Coach

Leader As Change Mgt Architect 7 © D.W. DeLong 2017

Change Management Has Different Roles In Different Types of Initiatives •

Implementing growth strategy

•  Redesigning operational processes •

Creating major culture change

•  Performance/quality improvements •  Developing an effective leadership/succession process •  Team building among staff

8 © D.W. DeLong 2017

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Technical vs. Adaptive Problems Technical – solvable by experts applying existing know-how, SOPs Adaptive – require experiments, new discoveries, new values/behaviors; can’t see end result; people expect leaders to know what to do IV

III

Adaptive

Focus Here

Type of Change Mgt Problems You’re Facing Technical I

Must Draw On Resources External Experts

Inside Organization See Leadership on the Line, Heifetz/Linsky

Solution

Ko+er’s 8-‐Stage Process for Crea:ng Change 1. Establish Sense of Urgency

5. Empowering Broad-Based Action

2. Create Guiding Coalition

6. Generating Short-Term Wins

3. Developing a Vision & Strategy

Consolidating Gains & Producing More Change

4. Communicating the Change Vision

Anchoring New Approaches in the Culture

Adapted from Ko-er, Leading Change, 1996

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1. Establish a Sense of Urgency •

50% fail at this

•  Urgency means feeling “We’ve got to do something!” •

Requires frank discussion of unpleasant facts

•  Make the status quo seem dangerous •

Focus on developing “opportunity-driven urgency” not anxiety-driven activity 11 © D.W. DeLong 2017

Tactics to Create Real Urgency 1.  Connect key stakeholders with reality inside & out of organization •  Bring staff FTF with realities making change critical, e.g. medical errors video, manufacturing gloves

•

Keep confronting with focused but relevant bad news

•

Key is compelling data, non-threatening presentation

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Resource & Change Management Investments Defined By Future Goals Performance Goals drive Change Initiatives

Capabilities Needed Capability Gap? Org’s Current Capabilities

Envisioned Future Performance

Future Capabilities

Changing to Create the Future 13 © D.W. DeLong 2017

2. Create a Guiding Coalition •

Who are the change leaders?

•  Shared commitment to performance improvement from key stakeholders •

Range: 3-30 people to start

•

Coalition titles, expertise, reputations & relationships key

•

Top mgt core, but operates outside hierarchy

•  Continues to grow, it’s power overcomes resistance 14 © D.W. DeLong 2017

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Exercise #2: Urgency & Guiding Coalition in Your Change Initiatives 1. Find a partner. 2. Take 2 minutes each to reflect on how these two critical success factors (i.e., urgency & coalition) could be used more effectively to implement your critical change initiatives. 3. What aspects of these factors do you tend to overlook in your change initiatives? 4. What action steps can you take going forward regarding urgency & coalition building? 15 © D.W. DeLong 2017

DISCUSSION

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3. Develop Vision & Strategy •  Vision: an end state where plans & strategies take you •  Need clear, compelling statement of objectives e.g. Plans, directives & programs don’t motivate

•  “What does it mean to: --change all of a property’s processes? --create a more performance-oriented culture? --operate a team that’s integrated with other units? •

Communicate vision clearly in couple minutes

•

Visions provide energy & motivation for difficult things 17 © D.W. DeLong 2017

4. Communicating the Vision •

Most leaders dramatically under communicate

•  Use every possible channel •

To sacrifice, employees must believe change is possible

•

“Find the feeling”

•

Walk the talk – leaders must model new behaviors 18 © D.W. DeLong 2017

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Exercise #3: Creating & Communicating Vision & Strategy 1. Find a partner. 2. Take 2 minutes each to reflect on how these two critical success factors (i.e., creating & communicating vision & strategy) could be done more effectively to implement your change initiatives. 3. What aspects of these factors do you tend to overlook in performance improvement efforts? 4. What action steps can you take going forward to better create & communicate vision & strategy?

DISCUSSION

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5. Empower Broad-Based Action •

To accelerate change, remove obstacles

•  Address the boss, systems & mindset barriers •

Are you “hoping for A, but rewarding for B”?

•

Resisters must be dealt with to maintain credibility

•

Recognition & reward systems must inspire & build confidence build confidence © D.W. DeLong 2017

6. Create Short-Term Wins •

Need compelling evidence of results in 6-24 months

•  Actively seek clear performance improvements; win must be unambiguous •

Creating, not just hoping for wins

•

Criteria: short time, small group involved, significant upside. Little left to chance

•

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Exercise #4: Empowering Action & Creating Short-Term Wins 1. Find a partner. 2. Take 2 minutes each to reflect on how these two critical success factors (i.e., empowering action & creating short-term wins) could be done effectively to implement change initiatives you are working on. 3. Are there aspects of these factors that you tend to overlook in your change initiatives? 4. What action steps can you take going forward to empower broad-based action & to create short-term wins?

DISCUSSION

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Choose any change initiative you’re involved with & give your organization a score on how well you handled six change management drivers on a scale of 1 (poor) to 5 (excellent) 1.  Creating Urgency

______

2. Building a Guiding Coalition

______

3.  Developing a Vision & Change Strategy

______

4. Communicating the Vision

______

5.  Empowering Broad-based Action

______

6.  Creating Short-term Wins

______

Overall Success of Change Initiative

______

DISCUSSION

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Final Thoughts •

Never forget that change is: continual, non-linear, highly emotional, driven by feelings, uncertain, risky, & the key to survival!

•  Immediate payoffs: (1) linking change initiatives to strategy; (2) creating & sustaining urgency; (3) increasing buy-in and reducing resistance •

Keep developing your personal change competencies

Your Challenge: Do 7 Things To Manage Change Effectively 1. Recognize Your 3 Roles – Strategist, Architect, Coach 2. Accept Major Strategic Initiatives as Adaptive Problems 3. Create & Sustain “Opportunity-Driven” Urgency 4.  Build an Effective, Diverse Guiding Coalition to Build Support

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Challenge: Things You Must Do To Implement Change 5. Develop a Clear, Compelling Vision for Your Change 6. Communicate the Vision & Strategy Relentlessly 7. Create Meaningful Short-Term Wins

Leading Change Effectively Takes Courage • Most of us are seeking extraordinary results with minimum risk. •  “But you don’t get out-‐of-‐the-‐box results with in-‐the-‐box courage.” -‐-‐Bob Quinn

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Some Favorite Change Resources 1. The Heart of Change: Real-Life Stories of How People Change Their Organizations by John Kotter & Dan Cohen, 2002 2. A Sense of Urgency by John Kotter, 2008 3. Influencer: The Power to Change Anything by Kerry Patterson et. al., 2008 4. Switch: How to Change Things When Change is Hard by Chip & Dan Heath, 2010 5. Creating Contagious Commitment: Applying the Tipping Point to Organizational Change by Andrea Shapiro, 2010 6.  Change by Design: How Design Thinking Transforms Organizations by Tim Brown, 2009 7. “Fair Process: Managing in the Knowledge Economy,” by Kim & Mauborgne, Harvard Business Review, January 2003 © D.W. DeLong 2017

For More Change Management Resources: www.SmartWorkforceStrategies.com

david@DavidDeLongAssociates.com 978-‐369-‐5083 I write oLen on change management solu:ons. Sign up for my newsle+er or blog at: h+p://www.smartworkforcestrategies.com/Contact/SubscribeTo.aspx 32 © D.W. DeLong 2017