Workplace Change

Managing Change in the WorkplaceM. Lisa DuganDirector, Humboldt County CSS

Sharon A. StoneDirector, Butte County CSS 2The Ultimate Change Agent

Change Is ComingWhats Heading in Your Direction?

What Comprises an Organizations Culture?an organizations culture comprises an interlocking set of goals, roles, processes, values, communications practices, attitudes and assumptions.Steve Denning, Author and former World Bank Director of Knowledge Management

This therefore is one of most difficult leadership challenges5Why Do We Need to Change Our Organizational Cultures?Culture eats strategy for breakfast

~ Peter Drucker

Brainstorm and capture the why of organizations need for culture changeWhat does this mean culture eats strategy for breakfast?

Gallup reports that 70% of employees are not engaged at work6Ice BreakerCross Your Arms

Clasp Your Hands

This exercise demonstrates how difficult it can be to change even the most simple of actions that we do without thinking. We typically have the same arm on top, the same thumb on top. Ask participants to cross their arms several times and notice which arm is on top. Then ask them to deliberately change which are lands on top. Do the same with your hands, noticing which thumb is on top.

While doing this talk about what it feels like to change something that has been a routine for years. Awkward? Uncomfortable? Want to go back to the old way you did it? AS LEADERS, WE SHOULD EXPECT RESISTANCE TO CHANGE AND PLAN FOR IT FROM THE START. UNDERSTANDING THEM OST COMMON REASONS WHY PEOPLE OBJECT TO CHANGE GIVE US THE OPPORTUNITY TO PLAN THE CHANGE STRATEGY TO ADDRESS THE HUMAN RESPONSE TO CHANGE AND BETTER FACILITATE CHANGE IN OUR ORGANIZATIONS.7Change Management and Neuroscience Why is change often difficult to implement in organizations?

Fear of Change!

Why is change often difficult to implement in organizations and how can we use neuroscience to manage the process better?This question has become even more key in recent years with the global economic downturn enforcing change upon more companies than ever.At the same time, advances in the field of neuroscience have taught us more about how the brain works and how it influences our thoughts, responses and behavior.

"Fear of change" is not just a throwaway phrase. The brain associates change with threat and, as such, the mind and body then automatically go into threat response mode.Neuroscientists have shown that, under threat, the amygdala area of the brain is more active; this tiny area of tissue is the "fear center" of the brain and activity here restricts blood flow to the prefrontal cortex, which is responsible for the higher thinking processes.Simply receiving information about possible change or even having thoughts that conflict with each other (as is common when we experience changes in our environment) is enough to produce this "threat response." We might equally call it "stress" because, after all, stress is a natural response to threat, common across the animal kingdom.Basically, most of us just react better to consistency and the "norm" and it is a comfort to us, much like food, shelter and safety.Looking at change on this human level, it is understandable why it is so hard to implement across large numbers of people in organizations.

8

While this is an obsolete model of the brain it is a good enough for non-scientists to understand the basic structure of the human brain and the structural consequences on social neurosciences. This model splits the brain into 3 parts. The first is the reptilian part. It is the primary one and is in charge of survival instinct : eat, sleep, reproduce. This is why life is so simple for crocodiles, they only have three things to think about.

The second part is the limbic system which is home of emotions. It arose early in mammalian evolution (hence referred to as paleomammalian). The third part is the neo-cortex, the cerebral part related to analytic mind, language, abstraction, planning etc.

9SCARF ModelIn a world of increasing interconnectedness and rapid change, there is a growing need to improve the way people work together.

Understanding the true drivers of human social behavior is becoming ever more urgent in this environment.David Rock, the CEO of Results Coaching Intl., coined the phrase NeuroLeadership and developed the SCARF model to change management.

The studies suggest the maximize reward and minimize danger principle is a survival response. The brain has likely some hard-coded responses to situations. Since the limbic system can process stimuli before it reaches conscious awareness, we are all likely flight or fight kind of people.

Discuss with attendees how they naturally respond to situations in which they feel fear.

10Approach Response Maximize RewardSynonyms in LiteratureAdvance, attack, reward, resource, expand, solution, strength, construct, engage.

Primary Factors that Activate the ResponseRewards in form of money, food, water, shelter, physical assets for survival.

Social Factors/Situations that Activate the ResponseHappy, attractive faces. Rewards in the form of increasing status, certainty, autonomy, relatedness, fairness. Avoid Response Minimize RewardSynonyms in LiteratureWithdraw, retreat, danger, threat, contract, problem, weakness, deconstruct.

Primary Factors that Activate the ResponsePunishment in form of removal of money or other resources or threats like a large hungry predator or a gun.

Social Factors/Situations that Activate the ResponseFearful, unattractive, unfamiliar faces. Threats in the forming of decreasing status, certainly, autonomy, relatedness, fairness.

The Two BiggiesUncertainty -

Reduce the threat from uncertaintyIncrease the reward from certainty

Autonomy

Reducing autonomy threatIncreasing rewards from autonomy

Typical 3-Step Change Model 1. Unfreezing where we begin to think differently about the existing reality and process

2. Movement where we head towards a new equilibrium, seeing the problem from a new perspective

3. Refreezing where we consolidate the new beliefs and behaviors and fully integrate them into our daily workLike this typical Lewins 3-Step Change Model, most change management approaches are outdated and do not build on the principles and lessons learned from neuroscientific research into their models.

Understanding Lewin's ModelIf you have a large cube of ice, but realize that what you want is a cone of ice, what do you do? First you must melt the ice to make it amenable to change (unfreeze). Then you must mold the iced water into the shape you want (change). Finally, you must solidify the new shape (refreeze).

However, it's unreasonable to expect change to be totally smooth. We are talking about managing change rather than totally dispelling fear of it (which, as we've stated, is natural).

Given that conflicting thoughts are enough to instigate a threat response, leaders should first expect this threat response from team members; then they should work to minimize it.Firstly understanding that the threat response is perfectly normal, leaders should be sensitive to it and learn to support those experiencing it.

To minimize it, they can work with individuals to add more positive thoughts to balance out the negative ones that are producing the resistance. 14What Can We Learn From Neuroscience? In Step One (Unfreezing) - we could need to accentuate the positives in the change with the hope of balancing the resistant forces out.

In Step Two (Movement) - we could teach team members the skills of reappraisal.

In Step Three (Refreezing) we could remind team members that the more we adjust to new ideas and perform new processes, the more they become hardwired in our brain. Lets see what we could add to Lewins model, to incorporate some of the insights of neuroscience

Step one: This would help team members focus on a new and positive challenge rather than dwell on the past and draw attention away from the automatic threat response.Step two: This would help them recognize and balance out their feelings towards the change, as well as enhance their job performance.Step three: This would help them remember that once the new processes become part of our routine, the process will become a source of comfort to us.

15LETS TALK ABOUT CHANGEChange Rule #1

If Im not a part of the planning of the change, I will resist it more strongly

Anecdote: Involve those who you know to be resistors up front

Unfortunately, some people will genuinely be harmed by change, particularly those who benefit strongly from the status quo. Others take a long time to recognize the benefits that change brings. You need to foresee and manage these situations.

Time and communication are the two keys to success for the changes to occur. People need time to understand the changes and they also need to feel highly connected to the organization throughout the transition period. When you are managing change, this can require a great deal of time and effort and hands-on management is usually the best approach. Human motivation , or self-determination theory (Ed Deci and Richard Ryan) tells us that people are more motivated to action or change when there is some degree of self-determination involved. To the degree possible, involving people in decisions that will effect their jobs is therefore very important if we want them to engage in new behaviors and embrace changes.

Consider the way in which you determine what needs to change. Perhaps you survey the organization to understand the current state, ensure you understand and can explain why the change has to take place and have key talking points that the change managers use so everyone is saying the same thing.

16Change Rule #2If I do not see the need for the change, I will resist it

Anecdote: Be the inspiration and make a compelling case for change, become a storyteller

Storytelling is a key skill of leadership. Stories create connectedness, conjure up possibility, create a bridge between what is and what can be. Stories are memorable and inspire action more than data and charts ever will because they evoke emotion. Stories are energizing, persuasive, entertaining, moving, authentic and helps us make sense of organizations. Stories can create a compelling reason for change in organizations.

What stories can we pull from our caseloads that would give strong support for the changes we seek? What about a family that lost their place to live while they were waiting for 6 months for a child support order to be obtained and enforced?

Create the need for change and ensure there is strong support from upper management;

Create a compelling message as to why change has to occur.Use your vision and strategy as supporting evidence.Communicate the vision in terms of the change required.Emphasize the "why".We know now that people are driven by the why of things; why is our organization better off with the change than without? Daniel Pink17Change Rule #3My job is going to change and I am fearful that I will no longer be necessary

Anecdote: Communicate to people their value to the organization

Remember Time and Communication!

1. Communicate often.Do so throughout the planning and implementation of the changes.Describe the benefits.Explain exactly the how the changes will effect everyone.Prepare everyone for what is coming.

2. Dispel rumors.Answer questions openly and honestly.Deal with problems immediately.Relate the need for change back to operational necessities.

3. Empower action.Provide lots of opportunity for employee involvement.Have line managers provide day-to-day direction.

4. Involve people in the process.Generate short-term wins to reinforce the change.Negotiate with external stakeholders as necessary (such as employee organizations).

18Change Rule #4My job will change and I am fearful that I will no longer be good at what I do

Anecdote: Acknowledge fear and assure people that there will be plenty of support for them as they change and become masters of new ways of thinking and doing

Develop ways to sustain the change.Ensure leadership support.Create a reward system.Establish feedback systems.Adapt the organizational structure as necessary.

Provide support and training.Keep everyone informed and supported.

Celebrate success!

19More Detailed Phases of ChangeShock - A realization that my comfortable and known ways of doing things are not suitable for current or future conditions.Denial - The changes wont effect me; there really is no need for change; I refuse to change.Rational Understanding I begin to understand the need for change. Emotional Acceptance - Sometimes the crisis stage where it is understood that I will need to adaptExercising & Learning - Acceptance makes way for the learning to begin. Simple, easier projects or steps in the beginning can lead to the feeling that I am a success Realization As learning continues a feedback loop is created and I begin to understand which behavior is effective in each situation, opening my mind further to the experienceIntegration My new behaviors become routine

http://www.themanager.org/strategy/change_phases.htm20Sense of Mastery in Change Continuum

http://www.themanager.org/strategy/change_phases.htm21Change is the Work of LeadershipLeaders set the backdrop for change

Providing The Organization with the Understanding of the Need for ChangePeople do not respond to change for the sake of change, rather they respond when they understand the underlying need

Create more leaders

Communicate Vision

Understand and Work with Human Response to Change

22The Nature of ConflictCONFLICTDifferences in needs, objectivesand valuesDifferences in perceiving motives, words, actions and situationsDiffering expectations of outcomes- favorable versus unfavorableUnwillingness to work through issues, collaborate, or compromiseOften times when conflict arises everyone means well and if questioned would maintain they were trying to accomplish what they perceive to be the best objective. Nonetheless, conflict is present because of: (reasons stated in chart)

Conflict becomes unhealthy when it is avoided or approached on a win/lose basis. Animosities will develop, communications will break down, trust and productivity will diminish or stop. The damage is usually difficult (sometimes impossible) to repair.

Conflict is healthy when it causes the parties to explore new ideas, test their position and beliefs, and stretch their imagination. When conflict is dealt with constructively, people can be stimulated to greater productivity which will lead to a wider variety of alternatives and better results. 23Conflict Resolution StylesAvoidance-Non-confrontational. Ignores or passes over issues. Denies issues are a problem. Accommodating - Agreeable, non-assertive behavior. Cooperative even at the expense of personal goals. Win/Lose - Confrontational, assertive and aggressive. Must win at any cost. Compromising -Important all parties achieve basic goals and maintain good relationship. Aggressive but cooperative. Problem Solving -Needs of both parties are legitimate and important. High respect for mutual support. Assertive and cooperative.

User justification: Avoidance: Differences are too minor or too great to resolve. Attempts to change in past failed. Attempts might damage relationships or create greater problems in future. Accommodating: Not worth risking damage to relationships or general disharmony. Win/Lose: Survival of the fittest. Must prove superiority. Most ethically or professionally correct. Compromising: No one person or idea is perfect. There is more than one way to do anything. You must give to get. Problem solving: When parties will openly discuss issues, a mutually beneficial solution can be found without anyone making a major concession.

24When team members understand the nature of conflict and constructive methods to resolve it, they can usually work out disagreements themselves. When they cant, or when the problem requires your intervention for other reasons, you may have to engineer a solution.

Communication!People are the only creatures who can talk themselves into trouble - Fortunately, they can also communicate their way out of trouble.

The ability to communicate is a vital factor in any managers success. With it, you can:Send and receive important informationSeek clarificationOffer clarificationPersuadeDemonstrate an interest in all those around you!

Successful managers keep informed; encourage others to freely express their ideas, opinions and recommendations; respond intelligently to criticism; handle questions fully; recognize good work done by others; explain clearly the reasons behind their decisions. DONT LEAVE YOUR MESSAGE UP TO 26Communication, Lots and Lots of CommunicationThink about how you intend to communicate the plan

Who is your audience?Specifically engage the Contrarians!Why is this change important to your organization and to those affected?Whats your message?Who is best to deliver it?How will you best relay it? One-on-one/team/department?In person/writing?

27Organizational Values and Culture ChangeCreate values as an entire organization

Infuse your values throughout your workplaceVisible throughout the buildingA foundation for recognition programsAs goal setting in coaching and/or evaluationsAs part of hiring and promotional consideration

Model the values that are agreed upon

Do not ignore behavior that does not fit your culture28Tools to Lessen ResistanceStorytelling: creating a compelling reason for changesCommunicate from the why perspectiveTie the changes back to your organizations set of Values, Vision, and MissionTell the story of the history of your organizationListen to and Acknowledge FearAcknowledging fear aloud instantly cuts it in half, moves it from the emotional brain center to the rational brain centerCommunicate early and often, inspire and reassureSet out a plan to help staff regain masteryKai Zen: small changeSupport and feedbackInfuse Organizational Values into everything you doPraise the good, correct the mis-steps

Storytelling is a key skill of leadership.29Putting Concepts to WorkLets Develop An Action Plan Include Communication in the PlanForm groups of X# of participants, dependent upon number of attendees

Hand out samples of changes invite groups of attendees to develop a timeline for change addressing primarily the mitigation of resistance to change using principles addressed here. Include things like:Communicating the Why When, how, how often?Involving those resistant to change when, how?Helping staff to regain a sense of mastery

Have each group choose a spokesperson and describe what they came up with and explain their timeline.Allow approximately 20 Minutes for exercise30Once Plan is Developed - Ask all the drafters of the plan to verbally Support the Plan

Ask for commitment, from all management, to stay on message

Review the plan to see if its working

Dont be afraid to modify the plan when expected outcomes arent being achieved

Debrief!

31Examples of Culture ChangeReal substantial culture change takes time, no silver bulletNew employees quicken the paceEat, sleep, and breathe the changes you desireStart with those who are excited about the change and create more change agentsCommunicate in many waysCelebrate the small winsListen to your employees and honor their experience

Humboldt County had a culture of perfection and inflexibility which translated into processes that included many people who checked and double checked the work, many people who performed only one part of a process. When we had to down-size, we could not keep our processes intact, we didnt have the staffing. People did not want to expand their scope of work, they did not want to change their processes because they worked, there was a lot of fear in producing less-than-stellar results if we changed what we were doing. Top-down change requirements were slow to be adopted, were not widely accepted and created rifts. We began engaging staff at all levels into meetings to clarify a new vision based on looking at our current circumstances: fewer cases, cost-effectiveness, fewer employees, complicated processes. We found we didnt communicate nearly enough, early enough, enough times, in enough places, what we were faced with. Butte County had a culture of Top-Down Directive Style of Leadership (think Law Enforcement). The very top management staff understood funding occurred and how performance was measured but line staff did not. Even when staff knew of an issue or problem with production, there wasnt a culture that permitted free discussion of issues or new ideas. The department was structured in a function manner which did not promote ownership with the ultimate service provided to customers. Movement to a C2G within a Team structure and individual performance standards caused fear among staff. Slow implementation with involvement across the department resulted in a shift in culture to a supportive team customer focused approach. There can never be too much communication and we learned (and continue to learn) to stay focused on those staff who want to go forward and not spend too much time getting mired down by the staff who dont want to change and cant really explain why even after being invited to participate. 32Questions? Thank you!

Credits:Change Management and Neuroscience, Mark R. Stephens

Communication Briefings, Communication Publications and Resources

Good to Great , Jim Collins

How Do You Change An Organization Culture?, Steve Denning in Forbes Online

SCARF: a brain-based model for collaborating with and influencing others, David Rock Storytelling In Organizations, John S. Brown, Stephen Denning, Katalina Groh, Laurence Prusak

Team Building An Exercise in Leadership, Robert B. Maddux

The Neuroscience of Change, Kelly McGonigal

Three-Step Model Change Theory, Kurt Lewin

34M. Lisa Dugan mldugan@co.humboldt.ca.us

Sharon A. Stone sstone@buttecounty.net