Disability Federation of Ireland

Eddie Molloy, Ph.D.Facilitator

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Managing Change

23rd May, 2012

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Perfect Storm

Experience across all sectors

2000 2007/08 2015 2020

Where are we now?

• Global banking crisis, credit crunch

• Ireland’s 5-Part Crisis

• New Government, very active

• Euro crisis

• Slow/no growth

Need to stop, reflect, adjust, re-focus – and act decisively

2012?

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Scale and Urgency

Incremental/Continuous Strategic/Radical/ Discontinuous

Anticipatory Tuning Re-orientationRe-directing

Reactive Adaptation Re-creationOverhauling

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Urgency: Where are you in the game?

It is half-time – what is the score?

- 2 - 1 00

+ 1 + 2

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What changes when the change is discontinuous/radical?

• Wind down in orderly way• Rationalisation of portfolio• Mergers, acquisitions• New business model, e.g. fee for service.• On-line vs. face-to-face service delivery• 20 – 30% reduction in costs• New internal structures• Significant innovation• Cultural change• New blood at Senior levels (especially in Public Service)• New Name/brand• • •

• Portfolio rationalisation• Strengthen management• Radical ops. implementation• Capex rigour• Financial engineering

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Putting Strategy in its Place

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Strategic Analysis• Industry Analysis• Customer/marketplace trends.• Environmental forecast• Competitor analysis• Assessment of Internal strengths, weaknesses, resources.• Political, economic,

policy envt.

Supporting Organisational Arrangements•Structure•Processes•Symbols•Rewards•People•Functional policies and profiles•Culture•Competencies

Strategy

The central integrated, externally oriented concept of how we will achieve our objectives

Mission• Inspirational purpose•Values

Objectives

• Vision• Specific Targets

Mindset

• Time Frame • Structure • Locus of control• Who is invovled

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The Five Major Elements of StrategyARENAS

Where will we be active?(and with how much emphasis?)

•Which services?•Which client segments?•Which ‘value-creation’ stages?

STAGING

What will be our speed and sequence of moves?

•Speed of evolution?

•Sequence of initiatives?

ECONOMIC LOGIC

How will we be funded?

•Fees for service.•Lower costs through scale advantages?•Public, private, philanthropic?

VEHICLESHow will we get there?

•Integral development?•Joint ventures?•Licensing/franchising?•Acquisitions?

How will we be different? Why us?

•Image?•Customisation?•Price?•Culture?•Trust?

A new paradigm may require change in all the above (Ref. Disability Policy)

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Large-scale Institutional Change:Technical and Cultural Challenges

Organisation as an Iceberg

· Values · Belief· Attitudes· Identity· Prejudices· Mindset· Etc.

· Policies · Structures· Core processes· Funding· Facilities· Measurements· Skills· HR systems· Etc.

Visible

Invisible

Technical Challenges

‘Cultural’ Challenges

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The Domain of DisabilityDiscussible

Taboo

· Political promises, policies

· Institutional structures, silos

· Professional role demarcations

· Systems and content of training

· Balance in skill mix

· Political will · Inherited, implicit, professional

hierarchy of self-esteem vs. others , pecking order

· Professional values

· Politics of disability

· Comfort with status quo

· Motivation of providers

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· Physical facilities

· Funding of services

· Career and Pay structures

· Profile of services

· What is measured, rewarded

· Sheer bloody-mindedness

· Danger sensed in speaking out

· Beliefs about best service models

· Stigma and its effect on people

· Language, meaning

·

Design

Dialogue

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The Change StoryWhy / Drivers

• Compelling Case• Burning platform

• Vision• Destination

Who is impacted +-

When – sequence

Name responsible person

Is budget allocated

System of Accountability

Dates of 1st, 2nd Review

‘Hard’

‘Soft’ How Change

What Where to• Strategy• Structure • Funding • Culture • Staffing, skills• Facilities, ICT

• Ownership• Work practices• Measurement• Service model• Processes• External Relations

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Appeals to Guilt and Fear

Appeals to Ideals, Inspires

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From strategic planning to strategic management

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Governance/accountability

Strategic control

Execution

Strategic Plan

Identify “Issues”“Book of Options”

Analysis/Enquiry/SWOTS

Decisions

Breakdown

Breakdown

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Comprehensive ArchitectureReality Vision KPIs Targets Projects

Business• Portfolio• Performance• Positioning• Finance

BusinessVision- --

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Organisation• Structure• Processes• Technology• Culture• Measurement•

OrganisationVision---

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- --

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Place to work• People• HR Policies• •

Place to workVision---

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Leadership/ Management• Competence• Disciplines•

Leadership/ Management Vision- --

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- --

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External Relations• Govt.• Regulation• Community• Corp H.Q.•

External Relations Vision- --

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Enthusiasts and Resistors dfi

To-day Future

Positives- - Track record- Strengths-

Positives- - Vision- -

Negatives- - Burning platform- -

Negatives- - What we will lose- Effort/price to pay-

- Cannot demonise ‘resistors’- Enthusiasts must face real reasons for ‘resisting’

E n t h u s i

a s t sR e s I s t o r s

Counterimplementation Games

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1. Raise Level of Abstraction:e.g. When you’re dealing with concrete, specific decisions, etc. someone “wisely” and “brilliantly” raises “the much bigger question” – “I mean that sounds fine but what about the broader context – I mean the changing geopolitical environment and the impact on how people view Banks ….. etc.”. Everyone stops in their tracks riveted by a great mind at work.

2. Lower Level of Abstraction:“It’s fine in theory but what would you do if … (and a very detailed exceptional case is cited) … how would your system work then?”

3. Seek more Information/more Reflection:I read in the paper today that the Government is hiring Consultants (again) to evaluate the business plans for the Dublin Airport Authority.

e.g. “I like the idea but I think we need to do some research on it – call a meeting to discuss further …”

This is the opposite to a bias for action. It goes for precision vs. momentum.4. Fear of Hurting:

“Let’s be careful here – you can’t just slash and burn – you’re talking about people here – people who have done a good job…. etc.”

5. Anti-Technique Bias:

“Ah this is all consultant talk” or “Look we’re a Bank – we’re not selling T-shirts”. Dismissing a tool or concept developed in other sectors. For example dismissing the “soft stuff”.

6. Historical Perspective:

There’s always one in the room.e.g. “It sounds terrific but I think we need to remember that this was tried in the late ‘60’s and it caused mayhem, etc.”

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7. Theological, Philosophical points:“Yes but what do you means by customer, define profitable customer for me – there are targets and targets – what is a target?

8. Saluting the Idea with no Commitment:

“I agree, etc.” – but with an air of impatience and a signal – “could you get on with it.” 9. Wise Owl:

“We can never be too careful.”Little lectures given.

10. Flippancy:

Inappropriate humour to break the tension when a serious issue is being tackled. Over the top exaggeration. Clowning.

11. Bullying:Can happen at all levels. At meetings evident e.g. in a person raising their voice and indicating they’d be very angry if challenged.

12. Lie low, Rely on Inertia:

‘Cute Hoor’ – they’ve seen all this sort of stuff before. 13. Insider Knowledge: A bit like No. 2.

“Well if you had to work at the coal face you’d know that the staff wouldn’t buy it.”“The Unions would never wear that – I mean you couldn’t – I deal with them all the time.”

14. Peacekeeping:

“Let’s not fall out over it – no need to get upset – etc.” 15. “But we’re still good”

e.g. “I think we’re being too hard on ourselves – over critical

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Group-think

A fish does not recognise the

water it swims in

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Groupthink: Definition and Symptoms

Occurs where group makes faulty decisions because group pressures and

group habits lead to deterioration of mental efficiency, reality testing and moral

judgement – people from similar background

8 Symptoms

• Illusion of vulnerability

• collective rationalisation

• Belief in inherent morality

• Stereotyped views of others

• Direct pressure on dissenters

• Self-censorship by individuals

• Illusion of unanimity

• Self-appointed mind-guards

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Some recent examples of SMTs Trapped unawares

• Information traps

• Decision-making style

• Unit of analysis and change

• Taboos vs. honest conversation

• Misreading dilemmas as problems

• Pace to which we are accustomed

• Discomfort with tackling shortcomings at most senior levels

• Continuing an established narrative

• Going after the last 5% (incremental vs. discontinuous

May need to change the way we change

Process awareness vital

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DilemmasYou can solve a problem – but only manage a dilemma

Short term

Long term

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• Too much of a good thing is a bad thing

• Taking a strongly ‘biased’ position is legitimate at certain times

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Unit of Analysis and ChangeFuture competitiveness Plan 23 Separate Performance improvement Plans

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1 2 3 4 5 6 7 8 9

Continuing competitiveness Plan

1 Plan for Dublin Brewery

C C P No. 2

1 Plan for all Breweries in Ireland

C C P No. 3

1 Plan for all Breweries in Ireland and UK

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Thank you

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Slides just in case

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Plan or be planned for

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Four Stances vs. Changing Environment

Inactive: • Lie low, sit tight• Rely on inertia• This too will pass

Reactive: • Do nothing until you’re told• Retaliate, blame them• Minimal response• Good boy scout

Preactive: • Get ready for what you can predict• Plan

Proactive: • Change how you are framed/viewed• Find a new more relevant role• it’s up to us.

‘it is naive to believe someone else will work it out correctly.’

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Stakeholders Want to-day Will want tomorrow

Ought to want tomorrow

Fix Plan Reframe

Open Systems Planningdfi

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Tactics for Intervening to bring about Change• Induce ownership

– Self diagnosis, joint diagnosis.– Allow choice over pace, sequence, etc.– As many as possible actively involved.

• Create safety– Secure small commitments.– Create psychological and political safety.– Agree change values/groundrules.– Show roadmap.– Phased, escalating ‘contracts’.

• ‘Project management disciplines’– Set concrete goals.– Apply project and programme management tools.– Make obstacles and ‘helps’ explicit – CSFS, CJFS.

• Social pressure– Secure public commitment.– Use peer pressure

• Use relevant exemplars, carriers– Credible models.– Watch your language.– Use front-line staff.

• Positive reinforcement– Praise.– Quick wins.– Material/symbolic rewards

• Momentum vs. precision– Trade off momentum vs. precision.– Bias for action– Small steps.

• Political support– Secure and maintain political support.– Ensure executive, line management hooked in.

• Sell persuasively– Upside if we do, downside if we don’t.– Don’t oversell, overhype.– Have evidence of progress before selling.– Be honest about constraints– Define ‘minimal critical specs’.– Distinguish selling vs. dialogue engagement.– Burning platform and vision

• Other– Listen respectfully.– Be aware of 4 phases of ‘consulting’.– Means compatible with ends.– Start as you wish to finish.– Partnership approaches.

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Added Value Role of Centre/H.Q.1. Relations to next highest (if there is one) echelon (i.e. Board)

2. Key external relations, including corporate relations, investor relations (i.e. Minister, Secretary General, Media, etc.

3. Incubator/sponsor of innovation

4. Strategic management process, including strategic control and corporate strategy. Guide Business Unit decisions

5. High level management bench strength

6. Access to capital resources, and allocation decision rules

7. Measurement architecture

8. Technology focus and Tech/Professional ‘bias’

9. Legal responsibility, regulatory management

10. Champion company values

11. High level business structure, re-structure

12. X-business synergies, links coherence

13. Leverage pooled negotiating power (in purchasing, selling, alliances)

14. Corporate brand, reputation

15. Provide functional leadership, e.g. Finance, HR, Quality

16. Shared services (where economies of scale – I.T., P.R, Marketing, etc.)

17. Business portfolio and strategy

18. Set stretching goals, raise sights, e.g. via benchmarking.

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Mergers/Joint VenturesOrg. A Org. B Org X

(Prospectus)

MissionValuesStrategy• Portfolio• Differentiation• Vehicles• PaceBus. Model (Financial Strategy)

ORGANISATION • Structure• Skills• Process• Facilities• Info• Measures• Culture

Place to Work• People• HR policies

Leadership/ Management• Competence• Processes

External Relations

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What is a paradigm change?

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• . . . and the textbooks and professional training processes whereby the dominant paradigm is passed on to the next generation of Professionals/scientists, the system that prepares, licences and initiates new members - - - (Kuhn)

• . . . an education system that is both rigorous and rigid and holds a firm

grip on the mind because entry to the community involves passing an exam that demonstrates adherence to the paradigm. (Kuhn)

• . . . and the funding streams (E.M.)

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It’s more than a change of service ‘model’It’s a Paradigm Shift

From: The Structure of Scientific Revolutions 2nd Edition, 1970, Thomas. S. Kuhn

A scientific paradigm is an inherited view shared by a professional

community of:

• The fundamental nature of the studied subject – human beings, specifically people with disability

• The laws which govern the interaction of the elements of the subject – mind, body, self, family, social environment, etc.

• What questions may legitimately be asked

• What techniques, methods may be employed to find answers and solutions

• What is acceptable as proof, evidence

• The value system, beliefs, mindset of the community

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Implications of a New Paradigm• Specialists on whose area of competence and status it impinges will resist

• Long established, esteemed organisations in jeopardy from new start-ups

that adopt a new paradigm • Changes what is ‘the problem’ and what is acceptable as a ‘solution’ • Ultimately transforms the scientific, professional and policy imagination • Requires fundamental re-design of professional education

• Fundamentally changes the economics of the domain

• Fundamentally changes the power structure of the domain

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Paradigms are Tenacious• “Normal science (or professional practice) is based on the assumption that

the scientific community knows what the world is like. Much of the success of that enterprise derives from the community’s willingness to defend that assumption, if necessary at considerable cost.” (Kuhn, p. 5)

• Research within as established paradigm is “a strenuous and devoted

attempt to force nature into the conceptual boxes supplied by professional education.” (Kuhn, p. 5)

Paradigms are tenacious – difficult to change

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