Application of Organizational Ethics and Organizational Change and trandforming

Encourage risking taking and

creative problem solving

Small markets don't solve the growth needs of

large companies

Form a coalition with enough power to

lead the change (you need an army not just an individual)

Team psychological safety

Rising of looking ignorant, incompetent, being seen as intrusive, being seen as negative

Conditions affecting safety on Everest

Perceived status difference within the teams leadership style of hall and fischer Lack of familiarity or prior interaction among the team members lack of candid discussion among team members Each of these conditions impaired decision making effectiveness

Create strategies for

achieving that vision

Empowering others to

act on the vision

Establish a sense of urgency by

creating a compelling reason or why change is needs

Plan for create and reward

short term wins that move the organization toward the new vision

How difficult is change

Changing a company takes that much if not more to make changes to a company

Complex systems: Two characteristics

Complex interactions Tight coupling

How did Bratton do it?

Creating sense of urgency forming coalition form vision

Complex Interactions

Different elements of a system interact in a way that are unexpected and difficult to perceive or comprehend

West Point

Established by Thomas Jefferson in 1802 Tradition of Integrity In the professional world, the cost of dishonesty is measured in dollars In the army, it is measured in human lives The stakes are very high Honor code "a cadet will not lie, cheat, steal or tolerate those who do"

Lack of candid discussion among team memebers

Fischers deteriorating health Halls turnaround rule

The normal practice of product development

Focus investment and development on the most profitable products Focus on demand among top customers

Overconfidence bias in the Mt Everest Case Study

Hall and Fischer were very accomplished climbers. They had every reason to believe that they could overcome obstacles Hall, in particular, had tremendous record of success

Focus on the safe bets

May subsequently be overtaken by innovation

Factors behind change

Quest for sustainability Organic life cycle Technology Market and client needs Ethical Behavior Globalization Crisis or M&A Same reasons that people change

The sunk cost effect

Refers to the tendency for people to escalate commitment to a course of action in which they have substantial prior investments of time, money or other resources The "two o clock rule" was very important to hall and fischer However, during the final push to the summit the turnaround times were ignored. The climbers could not ignore the investments they had made

Team effectiveness but not on Mt Everest

Team members demonstrate a high level of trust and mutual respect for one another Team members do not believe that the group will rebuke, marginalize

Why can change be so difficult?

The normal practice of product development The risk is that companies may reject innovative products that do nt meet this criteria

The client is also sending mixed signals

They don't want access to the information but they will pay him extra money to get the information from him, so they make it seem like they don't' want the information

Tight coupling

Time dependent process, rigid sequence of activities, one dominant path to achieving a goal

The Bratton way

Took away cars and drivers form city mangers and chiefs Made all city mangers ride the subway to and from work Increased competition between chiefs by having biweekly meetings to review results as a group - brought accountability to the site Identified and utilized a few kingpins to lead the charge Reallocated resources to hot spots

Voice

Voicing her concerns Attempting to develop an alternative approach to the work at IAD

Bill Bratton

Was hired as NYPD commissioner to fix the subway problem without any increase in NYPD budget. The problem was that no one was taking the subway and there was supposedly a lot of crime that happened down there

Quit

What worries Martha most is what is happening to her: Compromising her own integrity Leaving at a critical moment in the silicon 6 project Searching for another job

Historical Views on Change

White water rapids simile Stability and predictability don't exist Face constant change Innovators dilemma - Clayton Christensen (disruptive technologies)

Difficult to identify succesful

application in advance

Reassess change and

make adjustments

Cost and profit margins

o Can limit peoples thinking o Limit attractiveness of an innovation

Think about some breakthrough technologies

o Cell phones o Digital photos o Online retailing

McCaskey interaction with Devon

o Why is Devon sharing this information

The market may not be ready for the new technology

o You can too late to market o You can be too early to market

Customer often control pattern of

resource allocation

Larger organizations rely on

their core competencies and values

Remove barriers

to change

Create a new

vision to direct the change

Vision is great but

you have to have a plan

Loyalty

• Both options identified in the case assume McCaskey will proceed with the • McCaskey no violating nay laws • It is better that show does it than hand it off to someone else • Martha can decide to quit

Summary

• Customer often control pattern of resource allocation • Small markets don't solve the growth needs of large companies • Difficult to identify successful application in advance • Larger org's rely on their core competencies and values

Plans for implementing change

• Establish a sense of urgency by creating a compelling reason for why change is needed • Form a coalition with enough power to lead the change (you need an army not just an individual) • Create a new vision to direct the change • Create strategies for achieving the vision • Vision is great but you have to have a plan • Empowering others to act on the vision • Remove barriers to change • Encourage risk taking and creative problem solving • Plan for, create, and reward short term wins that move the org toward the new vision • Reassess change and make adjustments

What options foes Martha have?

• Martha has many options • Contact CEO in Chicago • Quit • Hire a lawyer • Complete the project • Pass the project to kaufman • Talk to Malone and Richardson • The three most likely options can be summarized as loyalty, exit, voice

Martha has exhibited behaviors that may have contributed to her being put in this situation

• She avoids confrontation/conflict and silences her own doubts and emotions • How easy and common it is for people to silence their doubts

What would exercising voice mean?

• Standing up and saying what is right • Be honest with Devon about the project • Ascertain whether Devon's knowledge will be valuable to the client • An open discussion with her superiors at the firm, tom Malone and ty Richardson • Honest and open discussion with Devon, the client and Malone and Richardson would provide a pivotal opportunity for McCaskey to develop herself as a leader - she would have to learn how to deal with criticism, but she would be willing to accept the risk • Martha can build a coalition among people at the firm committed to finding less unsavory ways of operating • Contacting the managing director in Chicago

Martha McCaskey Case Study

• The client has been led to believe that Seleris has access to inside information • McCaskey has misled Devon about her objective • McCaskey interaction with Devon • The client is also sending mixed signals • McCaskey is gathering competitive intelligence for a client on a former client

Organizational culture at Selris and impact on Martha

• The culture of the firm is the problem • Martha was attracted to IAD because of its rapid growth and exciting projects • There is no ballast to keep culture in check • No formal or informal control systems • IDK has no written policies • The head of the firm Richardson, does deliver occasional lunchtime talks about IAD's policies, but "these tend to be quite vague and general" • IAD the "old guard" and the new guard • Two subgroups could contribute to unethical culture • If members of the new guard come close to the ethical line, they would never go as far as the old guard • Hackert "prided himself on running an tight shop and on ability to get the job done, no matter what it took • Both the old and new want to be perceived • Consultants believe their leaders are primarily driven by money • Missing is any indication of integrity, respect, or commitment to values • Leaders seem self engrossed • The culture, structure, and leadership of IAD creates an environment ripe for intentional and unintentional misconduct

Sound decisions that lead to failure

• Think about some breakthrough technologies • The market may not be ready for the new technology • Leading customers may not be willing to risk a new product • Focus on the safe bets • Mangers assess the value of a new tech in relation to their current business and customer base • Cost and profit margins