Building Organizational Change Capacity THE CHANGING PARADIGM OF

Building Organizational Change Capacity THE CHANGING PARADIGM OF CONSULTING: ADJUSTING TO THE FAST-PACED WORLD 4 th International Conference on Management Consulting Vienna, Austria June 2009 Tony Buono Ken Kerber Bentley University Kerber & Associates BENTLEY

Two Organizational Change Scenarios Scenario # 1 Scenario # 2

Two Worlds of Organizational Change Scenario # 1 Scenario # 2 Isolated transitions Multiple, simultaneous transitions Linear Cyclical, iterative Moderate pace Accelerating pace Predictable Unpredictable Delayed results Instantaneous results Time to recover Cascading, overlapping stress Change Gap: [Expectation of Change – History of Successfully Managing Change]

Change Readiness v. Change Capacity Change Readiness A mental state that typically focuses on the extent to which organizational members recognize the need for a particular change at a specific point in time. Relatively Narrow Concept Preparation for Specific Change Capacity The ability of an organization to change not just once, but as a normal course of events in response to and in anticipation of external shifts. Broader Concept Foundation for Sustainable Change Requires Extensive Set of Interventions

Enhancing Organizational Change Capacity Micro-Level Meso-Level Macro-Level Understanding Different Change Approaches Change-Supportive Infrastructure Facilitative Organizational Culture Willingness and Ability Sufficient Resources to Change Ongoing Strategizing

Conceptualizing Change: From Directed Change to Guided Changing Directed Change Planned Change Guided Changing Authority Persuasive Communication Acceptance Adapted from K. W. Kerber & A. F. Buono, “Rethinking Organizational Change, ” Organization Development Journal (2005)

Guided Changing Spiral RE- ESTABLISH DIRECTION & RE- DESIGN ACTIONS [CONTINUE TO] IMPLEMENT ACTIONS & IMPROVISE [CONTINUE TO] SHARE THE LEARNING SYSTEM-WIDE [CONTINUE TO] HOLD ACCOUNTABLE & LEARN

Distinctions Among the Approaches Dimensions Directed Change Planned Change Guided Changing Change Goals (Ends) Tightly defined, Clear goal with Loosely defined unchanging goal some modification, direction as needed Change Process (Means) Tightly constrained Flexible, participative Experimental Change Tell, order, or Leadership (Role) command Devise a plan to Point the way, watch accomplish the goal over, and instruct Changemaker Relationships Persuasion Influence Pace of Change Urgent, fast, “just Go slow during do it. ” Collaboration Act quickly, planning to go fast improvise, learn and during act again implementation

When Is Each Approach to Change Appropriate? High Planned Business Complexity Guided Directed Low K. W. Kerber & A. F. Buono, “Rethinking Organizational Change, ” Organization Development Journal (2005) High Socio-Technical Uncertainty

Micro-Level Meso-Level Macro-Level Acceptance of Different Change Approaches Adopt a common, enterprise-wide framework for thinking about change Widespread knowledge about different approaches to change & when each is appropriate Develop deep expertise about change in the organization Change coaching & consulting services Change agent networks Debrief change initiatives with a focus on learning from experience Change-supportive Infrastructure Frequent meetings focused on identifying & critically assessing new opportunities Low cost experiments with new ideas Recognize & reward those who support, encourage, lead & share learning about change Fluid structure that allows the formation of new groups easily Systems to share knowledge, information & learning Responsive /proactive training & education Change-facilitative Culture Emphasis on learning and information sharing Encouragement to ask questions & speak the truth Empathizing with & valuing alternative viewpoints Support for taking risks & applying innovative ideas Tolerance of mistakes in the interest of learning Value conflict for under- standing & creativity

Micro-Level Meso-Level Macro-Level Willingness and Ability to Change Select, hire, evaluate & reward people based on their ability to thrive on change Form diverse teams to encourage innovation and creativity Develop, reward & promote supervisors and managers who enable change Enhance the personal credibility of organizational leaders Listen to, encourage, & reward mavericks and trailblazers Create a climate of trust, honesty, & transparency Sufficient Resources Designate an owner of the goal to develop change capacity Devote resources to continually scanning the environment for new ideas Encourage external contact, especially with customers Appoint committed change sponsors for specific initiatives Target key change initiatives with enough resources to get public successes Shelter breakthroughs with their own budgets & people Ongoing Strategizing Create a shared purpose Think dynamically & systemically so that strategies can change quickly Examine future markets, competitors, & opportunities Factor future scenarios into today’s decisions String together a series of momentary advantages Create & communicate a change friendly identity both internally and externally

Case Application Global. Com: $Multi-billon global technology leader focused on information infrastructures, services and solutions Project: New Global Integrated Services Delivery System Challenge: Long-term, complex initiative with uncertain dimensions

Assessing Change at Global. Com Integrated Systems Delivery 1. Plot your results for Business Complexity and Socio-Technical Uncertainty on the grid to the left. 2. Plot your Constraints on the continuum below 0 1 2 Directed 3 4 5 Planned 6 7 8 9 Guided 10

Organizational Change Capacity (N=24) CASE ILLUSTRATION Target Micro-Level Interventions

Developing Organizational Change Capacity: Micro-Level Interventions Micro-Level Acceptance of Different Change Approaches Adopt a common, enterprise-wide framework for thinking about change Widespread knowledge about different approaches to change & when each is appropriate Develop deep expertise about change in the organization Change coaching & consulting services Change agent networks Debrief change initiatives with a focus on learning from experience Willingness and Ability to Change Select, hire, evaluate & reward people based on their ability to thrive on change Form diverse teams to encourage innovation and creativity Develop, reward & promote supervisors and managers who enable change Enhance the personal credibility of organizational leaders Listen to, encourage, & reward mavericks and trailblazers Create a climate of trust, honesty, & transparency

The Change Continuum “In Action”

Sustainable Change: A Question of Change Rhythm? High Change Capacity: Micro-Level Business Complexity Meso-Level Authority Macro-Level Persuasive Communication Acceptance Low High Socio-Technical Uncertainty