leading organizational change: the three dimensions of organizaitons that leaders must addresss for...

Leading Organizational Change: Three Dimensions of Organizations That Leaders MUST Address if Leaders Want Change to Really Happen

Presented by…

Gary F. Best, Ph.D.

Organizational Psychologist

PerformanceBest, LLC

Developed by PerformanceBest, LLC

Today’s Conversation

The Three Dimensions of Organizations

The Dynamics of Change in the Three Dimensions

Three Change Models Currently Used

A New Approach to Leading Change

Bringing It All Together…Using All the Dimensions to Lead Effective Change

Questions


The Three Organizational Dimensions that Leaders Must Consider to Lead a Successful

Change Effort


Dimension One: Formal Hierarchies

Well understood & appreciated

Visible

Historic area of academic study

Authority comes from an individual’s position in the hierarchy

Decision making

Spending (budget)

Hiring / Firing

Rules & processes are documented and public

Reporting relationships are clear

Formal communication channels are clear

Expertise is assumed based on role and level


© 2005 Netform, Inc. © 2005 Karen Stephenson

Dimension Two: Informal Networks Not well understood or appreciated

Invisible

Newer area of study crossing multiple academic disciplines

The network is not clear…even to the players in the network

Status in the network is based on trust

Trust has three dimensions (1)…..

Competence…a player is capable

Contractual…a player does what she says she will

Communication…a player’s word is good and true

Trust can be lost…your position in the network is earned and earned again….it’s not appointed by a higher authority

Key players in the trust networks are not recognized by the players in the hierarchies

The players in the hierarchies only recognize 30% to 50% of the players in the informal networks …which means the hierarchy is blind to 50% to 70% of the players in the network

The informal trust networks are more powerful than the hierarchy….and a major reason why change efforts fail

Kotter introduces “networklike” structures to help drive change in his latest book, Accelerate (2) (2012/14)


© 2005 Netform, Inc. © 2005 Karen Stephenson

Eight Trust Networks Formal Hierarchy Informal Networks


Increasing Levels of Trust

Career Network (Outside of formal systems)

Innovation Network (Change it now!)

Social Network (Trust lite)

Expertise Network (Built the present )

Strategy Network (Leaders at the top)

Decision Network (Work the system)

Work Network (Transactional)

Learning Network (Integrate old & new)

Dimension Three: Humans and our Brains

The Human Brain….

Loves to hardwire—estimates suggest we spend 85 – 90% of our waking time on “auto pilot”

Doesn’t like gaps in the storyline…the brain fills in blanks in the information we take in and then treats its additions as fact….

Defaults to hardwired behaviors when under stress

Is additive concerning information, not discrete…this means that our memories are not of discrete events, but made up of elements of all similar events we participated in.

Will “turn off” the Prefrontal Cortex and turn “thinking” over to the Amygdala in high stress, high pressure or other tense situations


The Dynamics of Change in the Three Dimensions


The Natures of Change

In the formal hierarchy change is understood… consciously or unconsciously… as mechanistic, linear and top down…

Here, there are Change Sponsors, Change Agents and Change Targets

In the informal networks change is organic, trust driven and more prevalent in some networks (Strategy, Innovation & Learning)…

Here there are trusted change guides who influence the thinking of members of the network

In the human brain change is about turning off a mental map (or neural network) and creating a new mental map that directs new behavior

Here change is about knowledge creation or learning which creates a new mental map that results in someone behaving differently


The Process of Change in the Formal Hierarchies

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Wave 1

Wave 2

Wave 3

W 1 initiates the idea of change and talks among themselves while they decide “change / no change”.

It’s low risk for the sponsors

W1 introduces the idea of change to W2—who has to catch up with the idea and then design the

change for W1. It’s high risk for the change agents

W2 introduces the idea of change to W3 who has to catch up with the idea and the design as W2 asks W3

to implement the change for W1. It’s very high risk for the change targets

The Process of Change in the Informal Networks

Change Modeled

Modeled Change

Adopted

Modeled Change

Adopted

Modeled Change

Adopted

Modeled Change

Rejected


The Process of Change in the Human Brain


Through conscious effort on our part, the brain stops using an existing neural network that was developed over time and that enabled a certain behavior (unfreeze)

Through deliberate practice we consciously begin to develop a new neural network that will enable a different behavior (change)

Overtime this conscious effort takes hold and the new neural network becomes “hardwired” or second nature (refreeze)

Early efforts at change will result in failures and the less determined will discontinue the effort to create a new neural network and revert back to using the old network

This is a 3-D view of connections in the brain originating from different cortical areas. New maps may hold clues to brain mysteries. By Elizabeth Landau, CNN CNN.com, 2 April 2014

Three Change Models Currently in Use


Their Approach

Lewin (3) (1947)

1. Unfreeze

2. Change

3. Refreeze

Burke-Litwin (4) (1992)


External Environment

1. Mission and strategy

2. Leadership

3. Organization culture

Management Practices

1. Structure

2. Work unit climate

3. Systems

Individual Capacity

1. Motivation

2. Task requirements and individual knowledge, skills and approaches

3. Individual needs and values

Kotter (5) (1996)

1. Establish urgency

2. Create guiding coalition

3. Develop vision / strategy

4. Communicate the vision

5. Empower employees

6. Generate short term wins

7. Consolidate gains

8. Anchor change in the culture

NEW--Begins to address and account for “networklike” structures in his book “Accelerate”.

And Each Model Tells Us…..

Lewin tells us how change happens and by inference what you need to do

Burke-Litwin tells us the organizational levers that have to be addressed for change to be effective

Kotter tells us the steps you need to take and the order they should be taken for change to be effective


Their Focus Areas and Assumptions

Lewin Focus on

Change process

Assumptions

Leaders and managers know what organizational areas to manipulate

And how to manipulate them

Burke-Litwin


Focus on

Components and structures

Assumptions

Leaders and managers know what they must do

Managers know how to plan and sequence the change

Change can be managed

The organization is a system and all of the moving parts have to be considered

Kotter Focus on

Tasks to complete

Assumptions

Change is linear and top-down

Leaders and managers know what organizational areas to manipulate

And how to manipulate them

Change can be managed

NEW—to be successful, change needs a second, parallel operating system, a “networklike structure” focused on strategy

The Problem

the research, on effective change management and effective change efforts shows that 60-70% of all change efforts undertaken have failed…..

So what’s going on here???


A New Approach to Leading Change


A New Approach


1. Direct the Rider

Find the bright spots

Script the critical moves

Point to the destination

2. Motivate the Elephant

Find the feeling

Shrink the challenge

Grow your people

3. Shape the Path

Tweak the environment

Build habits

Rally the herd

Heath & Heath(6) (2010)

Key Focus Areas and Assumptions Heath & Heath


Focus on

Individuals, the brain and informal networks to drive change

Assumptions

Change begins with a single individual or a small group of individuals and spreads

Change is complex and adaptive

Change is multi faceted

Change is circuitous

Change is organic and influenced…not mechanical and directed

This New Approach Tells Us


….how to guide and influence change

It doesn’t suggest that change can be “completely managed” or “fully controlled”

The BIG Take-away from this model is to….


…remember the role of the brain in change

The Rider represents your pre-frontal cortex—the brains “executive” function. You do your heavy lift thinking using the pre-frontal cortex

The Elephant represents your amygdala…an ancient part of the brain that when activated initiates your fight, flight or appease response

When under stress or in unfamiliar territory (a change situation) your amygdala can be activated…and when the amygdala is activated the pre-frontal cortex becomes much less active

The upshot is that when you need clear, rational thinking the most…you don’t have it! And that’s a problem

Remember the Elephant and the Rider (7)

Bringing It All Together….Using All the Dimensions to Lead Effective Change


Recognize the Impact Point

This means understanding change first and foremost as originating as an individual experience…not as an “organization” experience.

Again, the key is to understand change first and foremost as originating as an individual experience…as an “organizing” experience not as an “organization” experience


To Effectively Lead Change, You Must…..

Recognize how change operates

Change operates as a complex adaptive system and not as a mechanical, top-down effort

When you can view change as a complex adaptive system, by definition, you are required to consider and use all of the dimensions discussed in this presentation….

The Formal Organization

The informal trust networks

The Rider and Elephant


To Effectively Lead Change, You Must….

Sources 1. Reina, D. S. & Reina, M. L. (2006). Trust and Betrayal in the Workplace: Building

Effective Relationships in Your Organization. San Francisco: Berrett-Koehler.

2. Kotter, J.P. (2012). Accelerate!. Harvard Business Review: Reprint R211B

3. Schein, E. J. (1995). Kurt Lewin's Change Theory in the Field and in the Classroom: Notes Toward a Model of Managed Learning. Working Paper 3821. Revised July 1995

4. Burke, W. W. & Litwin, G. H. (1992). A Causal Model of Organizational Performance & Change. Journal of Management, 18 (3), 523-545.

5. Kotter, J. P. (1996). Leading Change. Boston: Harvard Business School Press

6. Heath, C. & Heath, D. (2010). Switch: How to Change Things When Change is Hard. New York: Broadway Books.

7. Haidt, J. (2006). The Happiness Hypothesis: Finding Modern Truth in Ancient Wisdom. New York: Basic Books (Haidt developed the metaphor of the Rider and the Elephant, see page 4 & 5)


leading organizational change: the three dimensions of organizaitons that leaders must addresss for...

Leadership & Management

decision network

network status

leading change

trust trust

dynamics of change

change efforts

change models

leaderswant change