BENTLEY

Building Organizational

Change Capacity

THE CHANGING PARADIGM OF CONSULTING:

ADJUSTING TO THE FAST-PACED WORLD4th International Conference on Management Consulting

Vienna, AustriaJune 2009

Tony Buono Ken Kerber Bentley University Kerber & Associates

Scenario # 1

Scenario # 2

Two Organizational Change ScenariosTwo Organizational Change Scenarios

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

Two Worlds of Organizational ChangeTwo Worlds of Organizational Change

Change Gap:

[Expectation of Change – History of Successfully Managing Change]

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.

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.

Change Readiness v. Change CapacityChange Readiness v. Change Capacity

Relatively Narrow Concept Broader Concept Preparation for Specific Change Foundation for Sustainable Change

Requires Extensive Set of Interventions

Micro-Level Meso-Level Macro-Level

Facilitative Organizational Culture

Ongoing Strategizing

Change-Supportive Infrastructure

Sufficient Resources

Understanding Different Change

Approaches

Willingness and Ability to Change

Enhancing Organizational Enhancing Organizational Change CapacityChange Capacity

Enhancing Organizational Enhancing Organizational Change CapacityChange Capacity

Conceptualizing ChangeConceptualizing Change::From Directed Change to Guided ChangingFrom Directed Change to Guided Changing

Conceptualizing ChangeConceptualizing Change::From Directed Change to Guided ChangingFrom Directed Change to Guided Changing

Planned Change

Guided Changing

Directed Change

Authority

Acceptance

Persuasive Communication

Adapted from K.W. Kerber & A.F. Buono, “Rethinking Organizational Change,” Organization Development Journal (2005)

SHARE THELEARNING

SYSTEM-WIDE

IMPLEMENT ACTIONS

& IMPROVISE

HOLD ACCOUNTABLE & LEARN

ESTABLISH DIRECTION &

DESIGN ACTIONS

Guided Changing SpiralGuided Changing SpiralGuided Changing SpiralGuided Changing Spiral

RE-RE-

[CONTINUE TO]

[CONTINUE TO]

[CONTINUE TO]

Dimensions Directed Change

Planned Change

Guided Changing

          Change Goals (Ends)

  Tightly defined, unchanging goal

Clear goal with some modification, as needed

Loosely defined direction

Change Process (Means)

  Tightly constrained

Flexible, participative

Experimental

Change Leadership (Role)

  Tell, order, or command

Devise a plan to accomplish the goal

Point the way, watch over, and instruct

Changemaker Relationships

  Persuasion Influence Collaboration

Pace of Change   Urgent, fast, “just do it.”

Go slow during planning to go fast during implementation

Act quickly, improvise, learn and act again

Distinctions Among the ApproachesDistinctions Among the ApproachesDistinctions Among the ApproachesDistinctions Among the Approaches

When Is Each Approach to When Is Each Approach to Change Appropriate?Change Appropriate?

When Is Each Approach to When Is Each Approach to Change Appropriate?Change Appropriate?

Low

Low High

High

Planned

GuidedBusiness ComplexityBusiness Complexity

Directed

Socio-TechnicalUncertainty

Socio-TechnicalUncertainty

K.W. Kerber & A.F. Buono, “Rethinking OrganizationalChange,” Organization Development Journal (2005)

Micro-Level Meso-Level Macro-LevelAcceptance of Different

Change ApproachesAdopt a common, enterprise-wide framework for thinking about changeWidespread knowledge about different approaches to change & when each is appropriateDevelop deep expertise about change in the organizationChange coaching & consulting servicesChange agent networksDebrief change initiatives with a focus on learning from experience

Change-supportive Infrastructure

Frequent meetings focused on identifying & critically assessing new opportunitiesLow cost experiments with new ideasRecognize & reward those who support, encourage, lead & share learning about changeFluid structure that allows the formation of new groups easilySystems to share knowledge, information & learningResponsive /proactive training & education

Change-facilitative Culture

Emphasis on learning and information sharingEncouragement to ask questions & speak the truthEmpathizing with & valuing alternative viewpointsSupport for taking risks & applying innovative ideasTolerance of mistakes in the interest of learningValue conflict for under- standing & creativity

Micro-Level Meso-Level Macro-LevelWillingness and Ability

to ChangeSelect, hire, evaluate & reward people based on their ability to thrive on changeForm diverse teams to encourage innovation and creativityDevelop, reward & promote supervisors and managers who enable changeEnhance the personal credibility of organizational leadersListen to, encourage, & reward mavericks and trailblazersCreate a climate of trust, honesty, & transparency

Sufficient Resources

Designate an owner of the goal to develop change capacityDevote resources to continually scanning the environment for new ideasEncourage external contact, especially with customersAppoint committed change sponsors for specific initiativesTarget key change initiatives with enough resources to get public successesShelter breakthroughs with their own budgets & people

Ongoing Strategizing

Create a shared purposeThink dynamically & systemically so that strategies can change quicklyExamine future markets, competitors, & opportunitiesFactor future scenarios into today’s decisionsString together a series of momentary advantagesCreate & communicate a change friendly identity both internally and externally

GlobalCom: $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

Case ApplicationCase ApplicationCase ApplicationCase Application

0

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10

Socio-Technical Uncertainty

Bu

sin

ess

Co

mp

lex

ity

Directed Change

Guided Changing

Planned Change

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 3 4 5 6 7 8 9 10

Directed Planned Guided

Assessing Change at GlobalComAssessing Change at GlobalComIntegrated Systems Delivery

Organizational Change Capacity (N=24)Organizational Change Capacity (N=24)

Micro-LevelInterventions

CASE ILLUSTRATION

Target

Micro-Level

Acceptance of Different Change Approaches

Adopt a common, enterprise-wide framework for thinking about changeWidespread knowledge about different approaches to change & when each is appropriateDevelop deep expertise about change in the organizationChange coaching & consulting servicesChange agent networksDebrief 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 changeForm diverse teams to encourage innovation and creativityDevelop, reward & promote supervisors and managers who enable changeEnhance the personal credibility of organizational leadersListen to, encourage, & reward mavericks and trailblazersCreate a climate of trust, honesty, & transparency

Developing Organizational Change Capacity:Micro-Level Interventions

Developing Organizational Change Capacity:Micro-Level Interventions

The Change Continuum “In Action”The Change Continuum “In Action”

Sustainable Change:Sustainable Change:A Question of Change Rhythm?A Question of Change Rhythm?

Sustainable Change:Sustainable Change:A Question of Change Rhythm?A Question of Change Rhythm?

Low

Low High

High

Business ComplexityBusiness Complexity

Socio-TechnicalUncertainty

Socio-TechnicalUncertainty

Authority

Acceptance

Persuasive Communication

Change Capacity:

Micro-Level

Meso-Level

Macro-Level