Dynamic Modular Management

Managing Organizational Change

On March 25, 2010 I participated in an itSMF USA Online Conference titled 'All Aboard- Managing Organizational Change as Your ITSM Implementation Matures'

Titled 'The Other Change Management Process: Best Practices for Organizational Change Management', the presentation built an organizational change management model based on a composite best practices approach. It also included a composite case study applying the model to ITSM initiatives.

The presentation, PowerPoint 2003 format, is available for download here.

The presentation includes extensive speaker’s notes below the slides which should serve to clarify the points on the slides.

I was asked by the SNEC Chapter of the PMI to present a modified, more universally applicable, version of the model. It is available for download here

A high level version of the model is presented below. 

Organizational Culture and Organizational Change

Culture eats strategy for lunch every day of the week

Culture is a very strong force in any organization. It must be understood and respected before undertaking any large-scale organizational change.

Organizational Change Management, particularly on the psychological end of the spectrum, is an often neglected part of project management. Neglecting this aspect of project management can lead to delayed project close, or project failure.

It is advisable to begin planning for the organizational change implications at the very very beginning of any large scale initiative.

Organizational Change and the Learning Organization - Adapting to Continuous Change (back to top)

Learning organization -- 'one where people are encouraged to try new and better patterns of thinking, and doing things.' (Senge)

The definition of a learning organization implies an organization that is comfortable with constant change.

In fact, this implication goes back to Deming. Consider the Deming Cycle:

Adopting a process approach to management implies, by its very nature, building an organization that is comfortable adapting to constant change.

For an ITSM initiative- the same is implied by Continual Service Improvement.

Organizational Change Model - Altering Mental Models and Shared Vision (back to top)

For the Learning Organization, when managing organizational change we begin with Mental Models and Shared Vision; Senge's second and third disciplines.

These are what need to be altered in response to a change trigger.

Discipline 2 – Mental Models
Mental models are unavoidable, everyone has them. They help individuals to interpret and navigate reality.

However, they are models; and all models are necessarily inaccurate.
The danger comes from automatically rejecting new ideas that do not fit existing models.

To accommodate the desired strategic change, new models must be built and shared with the organization, building toward a new:

Shared Vision (Discipline 3)
Organizations need an image of their future (and a shared myth of their past) to inspire people around a common identity and sense of destiny.

This is how the organizational culture is defined and changed.

Shared visions are critical to the learning organization because people only learn when they strive to accomplish something that matters to them.

Kotter's Process to Drive Successful Organizational Change (back to top)

In Leading Change, John Kotter posits two necessary conditions for a successful organizational change:

  1. Leadership for the Change
  2. Capabilities that are weaved into the fabric of the organization.

Project Managers will be very familiar with the need for strong and engaged executive sponsorship. The same is true for the organzitional change part of a project.

As well, the capabilties to adapt and absorb the change must be present or built into the organization; all part of building a learning organization.

Kotter also defines an 8 step process for leading a change initiative:

1. Create a Sense of Urgency -

2. Create the Guiding Coalition - This is a team with enough power (and vision) to lead the change. This can be a steering committee, or it can be a team embedded in the organization. Remember- the executive sponsorship should be an engaged part of the Guiding Coalition.

3. Develop Change Vision and Strategy - Define the Vision and map a strategy to achieve the vision.

4. Communicate the Change Vision - Use every communications vehicle possible. (Communicate 8 times 8 ways. Kotter would likely say that even that is not enough. He states that major initiatives suffer from under-communication on an order of magnitude approaching 1,000).

5. Empower Broad Based Action -

6. Generate Short-Term Wins - Short-Term Wins are NOT the same thing as ‘low hanging fruit.’ Constantly searching for ‘low hanging fruit’ is, frankly, often a sign of lazy management, or management that lacks a coherent strategic vision. In my experience the phrase ‘low hanging fruit’ is never used within such a clear strategy; rather- having picked the available easy fruit- management turns to the next area of easy (not quick- easy) pickings. Short Term Wins may be Quick- they don’t have to be easy; they DO have to lead the momentum of a clear sustained strategy.

7. Consolidate Gains and Produce More Wins -

8. Anchor New Approaches in the Culture - Articulate the connections between new behaviors and organizational success.
Embed changes in training practices, in documentation, etc..
Tie the change to performance evaluation and other reward structures.

Prosci's ADKAR Model - 'The People Side of Change' (back to top)

Prosci has developed a more psychological focused model that deepens some of the Kotter steps.

Prosci's Change Management Institute offers training and certification in Change Management. They also offer materials and resources to survey and prepare an organizations' staff for change initiatives.

The ADKAR model:

A- Awareness of the Need for Change. (Communications)

This would link to Kotter's 1st step of Defining a Sense of Urgency. What are the reasons an organization needs to adopt the change? How do you make staff aware of this imperative.

A key here is to make it clear that the change is NOT optional; the change is real, necessary and inevitable. I have witnessed high level managers adopt a strategy (all too often successful) of 'waiting the change out.'

D- Desire to Participate in and Support the Change

K- Knowledge of how to Change (Education)

A - Ability to Implement Required Skills and Behaviors (Training)

One note- Communications, Education and Training are NOT the same thing. Education focuses on conceptual knowledge; an understanding of the strategic need for the Change. Training focuses on the work instructions level. Now that staff understand the concepts, can they handle the specific tasks they need to undertake to enable the strategic program?

R - Reinforcement to Sustain the Change (anchor changes in the culture)

Change Adoption is not likely to be linear. You must have plans to reinforce the Change. Resist the temptation to declare victory too early and beware the trough of despair.

A Visual Representation of the Model (back to top)


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