MGMT 4263 - ORGANIZATIONAL CHANGE Ch 8

Character-based definition

•Hierarchical relationships •Perception of leader's character a.Honesty b.Integrity c.Competence/ability d.Fairness e.Openness

Change Agent Types

- (on Top) - strategic change - (left) vision pull - (right) analysis push - (down) incremental change - (LEFT UP)emotional champion - (RIGHT UP) development strategist - (DOWN LEFT) intuitive adapter - (DOWN RIGHT) continuous improver

Essential Change Agent Characteristics are

- 1-Self-awareness - 2-Self-regulation - 3- Motivation - 4-Empathy - 5- Social skill

Trust 4 A's

- Attitude - Approachability - Appreciation - Added Value

Stage of Adoption

- Awareness • Becoming altered to the existence of something new, such as a product, service or procedure - Interest • A growing inquisitiveness about the nature and benefits of the new idea - Desire/Appraisal • Studying strengths and weaknesses of new idea & its application to their area, followed by small scale testing - Action/Adoption • Incorporating the new idea as part of the resources the adopter brings to their job

Advice to Those in 'The Middle'

- Be the top when you can & take responsibility for being top - Be the bottom when you should. Don't let problems just flow through you to the subordinates - Be the coach to help others solve their problems so they don't become yours - Facilitate rather than 'carry messages' when you're between parties in conflict - Integrate with one another, so that you develop a strong peer group you can turn to for advice & support

Change Agent Roles

- Change Initiators - Change Implementers - Change Facilitators - Change Recipients (covered earlier. This section refers to the top 3)

Attributes of Change Leaders

- Inspiring vision 92* -Empowering others 88*

Rules of Thumb for Change Agents

- Keep your optimistic bias - Be patient - Be ready to seize the moment!

3 Generic Change Strategies

- Programmatic Change Missions, plans, objectives Training, timelines, steering committees Lack of focus on behavior, one solution for all, inflexible solutions - Discontinuous Change Initiated from top, clear break, reorientation Decrees, structural change, concurrent implementation Political coalitions derail change, weak controls, stress from the loss of people - Emergent Change Ambiguous, incremental and challenging Use of metaphors, experimentation and risk taking Confusion over direction, uncertainty and possible slow results

Benefits of Using External Change Agents / Consultants

- Provide subject-matter expertise - fresh perspectives - Provide independent, trustworthy support - Provide third party expertise to help facilitate discussions and manage the process - Extra assistance when talent is in short supply and/or time is of the essence

3 Approaches to Decision Making & Action Taking (Mintzberg and Westly's generic approaches to change)?

- Thinking First •when the issue is clear and the context structured - Seeing First •when many elements have to be combined into creative solutions, commitment is key and communication across boundaries is essential. People need to see the whole before becoming committed. - Doing First •when situation is novel and confusing, complicated specifications would get in the way and a few simple rules can help people move forward

emotional intelligence

- long term focus - pull, motivate - Overhauling/recreating (reactive, redical change) - need vision, optimism

political intelligence

- short term - contentious environment - competitive - political - Redirecting/ reorienting (anticipatory, radical change) - need a sense of urgency

Action Planning Checklist

-Is the action plan consistent with the analysis, vision and objectives ? - Is the plan time-sequenced in logical order? - Is it clear who will do what, when, where and how? - What are the milestones & the probability of success at each step? Have you anticipated secondary consequences of your actions? - Have you developed contingencies for risk areas and for how to proceed if things go better or differently than anticipated? - Is the plan realistic given your influence and the resources likely to be available to you? - Do you and your team have the competence & credibility to implement the action steps? If not, how will you address this? - Who does your plan rely on? Are they "on-side"? If not, what will it take to bring them "on-side"? - Does your action plan take into account the concerns of stakeholders and possible coalitions they might form? - Who (and what) could seriously obstruct the change? How will you manage them?

Essential Change Agent Characteristics - Political skill

-Politics = behavior that is NOT formally sanctioned that produces conflict by pitting one group against another -Skill •Definition: -Interpersonal style -Social awareness -Ability to communicate -Develop and leverage social capital •knowing what to do •ability to execute behavior in a convincing manner •calculating about social connections •Understand others' motivations, skills, weaknesses -No empathy. Almost clinical. See people as resources for getting things done. •Exploit weaknesses •Leverage power of fear and anxiety •But, they are not just bullies. The motivation comes from the VISION, not the humiliation. •Note: Often shows up in highly contentious, competitive, or political environments (Washington DC, Hollywood, Tech Industry) •Relish the chaos. •"Change is scary and sometimes you need scary leaders to pull you through."

Emotional Intelligence related to change leaders

-Self-regulation •allows people to better manage emotional reactions common with major change •Increases integrity, which is important to gaining trust -Motivation •Remain optimistic -Empathy •Important to trust •Globalization

Jick's Ten Commandments

1. Analyze the organization & its need for change 2. Create a vision and a common direction 3. Separate from the past 4. Create a sense of urgency 5. Support a strong leader role 6. Line up political sponsorship 7. Craft an implementation plan 8. Develop enabling structures 9. Communicate, involve people, and be honest 10. Reinforce and institutionalize change

Developing a Change Team

1. Clear, engaging direction 2. A real team task 3. Rewards for team excellence 4. Availability of basic material resources to do the job, including the abilities of individual team members 5. Authority vested in the team to manage the work 6. Team goals 7. The development of team norms that promote strategic thinking 8. Careful consideration of the personalities and skills of team members, when designing the team 9. Selection of dedicated individuals willing to give it their "all"

Influence Strategies for Change

1. Education & communication 2. Participation & involvement 3. Facilitation & support 4. Negotiation & agreement 5. Manipulation & co-option 6. Explicit & implicit coercion 7. Systemic adjustment

FedEx's Change Team Checklist

1. Ensure that everybody who has a contribution to make is fully involved, & those who will have to make any change are identified & included. 2. Convince people that their involvement is serious & not a management ploy, all ideas from management are presented as "rough ideas. 3. Ensure commitment to making any change work, the team members identify & develop "what is in it for them" when they move to make the idea work. 4. Increase the success rate for new ideas, potential & actual problems that have to be solved are identified in a problem solving, not blame-fixing culture. 5. Deliver the best solutions, problem solving teams self-select to find answers to the barriers to successful implementation. 6. Maintain momentum & enthusiasm, the remainder of the team continue to work on refining the basic idea. 7. Present problem solutions, improve where necessary, approve & implement immediately. 8. Refine idea, agree upon it and plan the implementation process.

Design Rules for Top Change Teams

1. Keep it small - 10 or fewer members 2. Meet a at least bi-weekly & require full attendance - Meeting less often breaks rhythm of cooperation & coordination - Frequency is more important than how you meet (e.g., virtual vs. face-to-face) 3.Everything is your business - no team-related information is off-limits to other team members 4. Each of you is accountable for your business 5. No secrets & no surprises within the team 6. Straight talk, modelled by the leader 7. Fast decisions, modelled by the leader 8. Everyone rewarded partly on the total results

Characteristics of a Good Change Team Member

1. Knowledgeable about the business & enthusiastic about the change 2. Possesses excellent communications skills, willing to listen & share 3. Totally committed to the project, the process & the results 4. Able to remain open-minded & visionary 5. Respected within the organization as an apolitical catalyst for strategic change

Communicating for Change

1. Message & media redundancy are key for message retention 2. Face-to-face communication is most effective 3. Line authority is effective in communications 4. The immediate supervisor is key 5. Opinion leaders need to be identified and used 6. Employees pick up and retain personally relevant information more easily than other types of information

Steps to Effective Change - Beer et al.'s Six Steps

1. Mobilize commitment through joint diagnosis 2. Develop a shared vision 3. Foster consensus for the new vision, competence to enact it and cohesion to move it along 4. Spread revitalization to all departments without pushing it from the top 5. Institutionalize revitalization through formal policies, systems and structures 6. Monitor & adjust strategies as you go

Rules of Thumb for Change Agents is

1. Stay alive - no self-sacrifice 2. Start where the system is - diagnose & understand 3. Work uphill 4. Don't over-organize 5. Don't argue if you can't win - win / lose strategies deepen conflict & should be avoided 6. Load experiments for success 7. Light many fires - don't work in just one subsystem. Understand patterns of interdependency 8. Just enough is good enough - don't wait for perfection 9. You can't make a difference without doing things differently 10. Reflect on experiences 11. Want to change 12. Think fast and act fast 13. Create a coalition - lone rangers are easily dismissed.

Action Planning Tools

1. To Do Lists - A checklist of things to do. 2. Responsibility Charting - Who will do what, when, where, why and how. 3. Contingency Planning - Consideration of what should be done when things do not work as planned on critical issues. • Decision tree and scenario planning methods 4. Surveys and Survey Feedback 5. Project Planning & Critical Path Methods for scheduling 6. Force Field and Stakeholder Analysis a) Commitment Charts b) The Adoption Continuum (AIDA) 7. Leverage Analysis 8. Operation Management Tools

Kotter's Eight-stage Process

1.Establish a sense of urgency 2.Create a guiding coalition 3.Develop a vision and strategy 4.Empower broad-based action 5.Communicate the change vision 6.Generate short-term wins 7.Consolidate gains and produce more change 8.Anchor new approaches in the culture

Emotional Intelligence definition

5 components that can be broken down into self-management and interpersonal skills:

Continuous Improver

Analyzes micro-environments and seeks changes such as re-engineering to systems and processes looking for smaller gains instead of giant leaps

Developmental Strategist

Applies rational analysis to understanding the competitive logic of the organization and how it no longer fits the organization's existing strategy and the environment. Seeks to alter structures and processes & shift the organization to the new alignment

which of the following is a challenge of leverage analysis a.It does little to move people on the adoption continuum b. Building sufficient support to bridge the gap between early adopters and the early majority c. It can only be done with an outsider's objective view of the organization d. Any employee's support can be used to leverage support, so it is often difficult to choose who to focus on

B, building sufficient support to bridge the gap between early adopters and the early majority

Stage 2: (Junior)

Beliefs: People change through powerful communication and symbolism. Change planning will include the use of symbols and group meetings. Underlying is the assumption that people will change if they are "sold" on the beliefs. Again, failing this, the organization can use power and/or sanctions.

Stage 4: (Expert)

Beliefs: People have a limited capacity to absorb change and may not be as willing, able or ready to change as you wish. Thinking through how to change the people is central to the implementation of change. Underlying is the assumption that commitment for change must be built and that power or sanctions have major limitations in achieving change and building organizational capacity.

Change Agent- Internal

Catalyst (overcomes inertia) Solution Giver (solves problems) Process Helper (facilitates the "how to") Resource Linker (brings people and resources together)

Change Agent- External

Change management expertise Objective perspective Off-the-shelf solutions Limited knowledge of culture

Responsibility Charting

Coding: R = Responsibility (not necessarily authority) A = Approval (right to veto) S = Support (put resources toward) I = Inform (to be consulted before action)

Emotional Intelligence

Goleman (1998) - very influential paper on "soft skills" General theory and concepts This is in addition to technical skills "soft skills"

THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE

Habit 1. Be proactive Habit 2. Begin with the end in mind Habit 3. Put first things first Habit 4. Think win-win Habit 5. Seek first to understand, then to be understood Habit 6. Synergize Habit 7. Sharpen the saw

Being a Change Agent =

Person X Vision X Situation

Communication Needs for Different Phases in the Change Process

Pre-Approval Phase - Communication plans to sell top management Developing the Need for Change Phase - Communication plans to explain the need for change, provide a rationale, reassure employees and clarify the steps in the change process. Mid Stream Change Phase - Communication plans to inform people of progress and to obtain feedback on attitudes and issues, to challenge any misconceptions and to clarify new organizational roles, structures and systems. Confirming the Change Phase - Communication plans to inform employees of the success, to celebrate the change and to prepare the organization for the next change.

Miller's Stages of Change Beliefs Stage 1: (Novice)

Stage 1: (Novice) Beliefs: People will change once they understand the logic of the change. People can be told to change. As a result, clear communication is key. Underlying is the assumption that people are rational and will follow their self-interest once it is revealed to them. Alternately, power and sanctions will ensure compliance.

Crossing the Adoption Chasm

The Chasm or Tipping Point of Support that Needs to be Crossed - Innovators - Early Adopters - Early Majority - Late Majority - Laggards

Methods of Influence

a. Inspirational appeals b. Consultation: seeking the participation of others c. Relying on the informal system: existing norms and relationships d. Personal Appeals: friendship, loyalty e. Ingratiation: praise, flattery, friendliness f. Rational Persuasion: using data g. Exchange or reciprocity h. Coalition Building i. Using Rules or Legitimating tactics j. Appeals to higher authorities Which of the above have you used? How successful were they? How comfortable are you with each method?

What are the four types of change leaders mentioned in the class? a. The emotional champion, the developmental strategist, the intuitive adapter, and the continuous improver b. The charismatic speaker, the quiet leader, the thoughtful relationship builder, and the small win maker c. The persuasive strategist, the intuitive planner, the brilliant thinker, and the ferocious fighter d. he developmental strategist, the charismatic speaker, the brilliant planner, and the intuitive improver

a. The emotional champion, the developmental strategist, the intuitive adapter, and the continuous improver

Which of the following is Not one of the four major goals of a communication plan? a. To brand the change project so people will like it b. To infuse a need for change into the organization c. To keep people informed d. To communicate impacts the change will have on each person

a. To brand the change project so people will like it

In exothermic change situations, energy is liberated by actions. a. True b. False

a. True

Why does Trust it matter?

a.Outcomes vAcceptance of change vMotivation to participate in change ·Trust in supervisor was the STRONGEST predictor of acceptance of a new appraisal system (Reinke 2003) · ·Trust in organization lead to a positive attitude toward a new HR system and increased motivation to be involved with the new system (Condry 1995) - Organizational commitment - Job satisfaction · Note that the last 2 are related to turnover, absenteeism, and OCBs i.Perceived CONTROL over change ● vRemember justice? Long-range benefits of being able to predict and control matters. We feel better about situations where we have control. ·When perceived control is LOW, trust in supervisor impacted affective organizational commitment ·When perceived control is HIGH, trust in supervisor did not impact organizational commitment

What is the difference between an experienced change agent and an expert change agent according to Miller? a. Experienced agents believe that powerful communication will convince people to sign on to a change b. Experts understand that people have a limited capacity to absorb change and power, and sanctions aren't sufficient to convince others c. Experts believe that people may not be ready to change, so a comprehension plan must be developed to implement the vision d. Experienced agents understand that clear communication is the key to getting others on board with change

b. Experts understand that people have a limited capacity to absorb change and power, and sanctions aren't sufficient to convince others

Change agent effectiveness is a function of what three things? a. Charisma, action, and situation b. Personality, vision, and situation c. Personality, reputation, action d. Situation, urgency, personality

b. Personality, vision, and situation

External change agents are often hired because of which of the following strengths? a. They are a frugal option for organizations with tight budgets b. They are independent and credible c. They have deep knowledge of the organization d. They can take charge of final decision making

b. They are independent and credible

When does a "doing first strategy" work best? a. When creativity, commitment, and communication are most essential b. When the situation is novel and confusing c. When data are clear and reliable d. When discipline can be established in routine processes

b. When the situation is novel and confusing

What are the personal benefits of being a change leader? a. It gives the change leader a chance to deal with failure b. It causes them to be more peripheral to the organization c. It can prove to be educational and career enhancing d. It doesn't challenge an individual's view of organizations

c. It can prove to be educational and career enhancing

What are the personal benefits of being a change leader? a. It gives the change leader a chance to deal with failure b. It causes them to be more peripheral to the organization c. It can prove to be educational and career enhancing d. It doesn't challenge an individual's view of organizations

c. It can prove to be educational and career enhancing

What are the three categories of behaviors that change agents give rise to? a. Intelligence-inspiring behaviors, framing behaviors, and capacity-creating behaviors b. Shaping behaviors, framing behaviors, and experimentation behaviors c. Shaping behaviors, framing behaviors, and capacity-creating behaviors d. Creativity-inspiring behaviors, empowering behaviors, and framing behaviors

c. Shaping behaviors, framing behaviors, and capacity-creating behaviors

Which type of change agent engages in big-picture thinking about strategic change and understands the fit of systems and structures? a. The emotional champion b. The intuitive adapter c. The developmental strategist d. The continuous improver

c. The developmental strategist

What are Mintzberg and Westly's generic approaches to change? a. Stop, look, listen b. Plan, ask, do c. Think, see, do d. Try, fail, try again

c. Think, see, do

What do critical path methods require of planners? a. For planners to only focus on the critical tasks b. To estimate based on past experience how long the project will take c. To identify when the project should be completed and plan backward from that point d. To critically assess the plans of others against the reality of time and resources

c. To identify when the project should be completed and plan backward from that point

Change teams may include all of the following people except: a. Outside consultants b. People who are completely committed to the change c. People who are open-minded and flexible d. A brand-new employee who has fresh eyes on the organization

d. A brand-new employee who has fresh eyes on the organization

what is the benefit of creating a commitment analysis chart? a.It can exhibit to others that you are prepared for the change b.It is a useful project management tool since it divides responsibilities c. It relies on the emotional response of stakeholders d. It analyzes engagement and is instrumental in planning tactics to alter those predispositions

d. It analyzes engagement and is instrumental in planning tactics to alter those predispositions

Which of the following characteristics is not essential for a change leader? a. Communication and interpersonal skills b. Determination c. Flexibility d. Rigidity

d. Rigidity

Change agents should approach change with which of the following attitudes? a. Work to acquire necessary authority before attempting change b. Continue with a change project only when management's approval has been obtained c. Understanding the concrete lines of systems boundaries d. Test the limits of their empowerment

d. Test the limits of their empowerment

Which of the following is not a good design rule for developing a change team? a. Consider every piece of information fair game to discuss b. Decisions are made swiftly c. The change team is incentivized with financial rewards based on performance d. The change team should be between 15 and 20 members

d. The change team should be between 15and 20 members

What is the main benefit of an internal change agent? a. They have defining relationships with people within the organization that make them objective b. They have the highest level of specialized skills for the job c. They tend to have plenty of power to affect the change d. They have knowledge of the systems and norms of how things get done

d. They have knowledge of the systems and norms of how things get done

Emotional Champion

has a clear and powerful vision of what the organization needs and uses that vision to capture the hearts and motivations of organization members

Trust is

·Based on a belief that the leader or person in power (aka change agent or supervisor) has a MORAL obligation · ·People search for clues about a person's character · ·High levels of trust mean that employees expect honesty and integrity even in crisis or conflict situations

Trust - Organization Characteristics

·Employees monitor their environment to determine whether to trust management ·If an organization is designed in a way that shows little trust, employees will respond in the same way Structure Less centralized Less formalized Roles Autonomy Culture/Climate No secrecy Open communication Encourage risk taking Inclusiveness

How is Trust it Developed?

·Trust if fairly stable ·Org change is an opportunity for building trust (or destroying)

The Change Agent Role - Is It Worth the Risk?

• Being a change agent can be professionally hazardous • It can also prove energizing, exciting, educational, and enriching • You are likely to improve your understanding of the organization, develop special skills and increase your network of contacts and visibility • Failure experiences, though painful, are seldom terminal - change agents tend to be resilient

Selecting a Consultant

• Ensure you have a clear understanding of what you want from the consultant • Talk with multiple (up to 5) consultants and/or consulting organizations • Issue a request for proposal (RFP) • Make your decision and communicate expectations

Pull Tactics

• Inspirational appeals and other influence tactics designed to attract and pull people toward the change

Roles for Middle Management

• Linking -- with Above, Bottom, Others • Offering advice/help -- as a Top, Bottom, a Link - Influence Up • Championing Strategic Alternatives • Synthesizing Information - Influence Down • Facilitating Adaptability • Implementing Strategy

Change agent Leaders: Transformational

• Risk-taking • Inspiring • High Integrity or Not

Push Tactics

• Use of facts, logic and/or pressure (e.g., use of guilt and fear) to push people towards the change

Trust

• What is it? • Why does it matter? • How is it developed? a.General definition: A willingness to be vulnerable based on positive expectations ... i."of intentions or behavior of another." ii."that another will not act opportunistically." ·If trust is LOW in an organization, any change efforts will be viewed with suspicion ·Trust in the supervisor is key in understanding reactions of recipients

"No Plan Survives First Contact"

• While it is critical to plan and anticipate, planning is a means not an end. • Don't ignore vital emerging information just because it does not fit with carefully conceived plans. • Contingencies & alternative ways of approaching change are important contributors to enhanced adaptive capacity.

Are You an Adaptor or Innovator?

•Are your preferences more aligned with those of an Adaptor? - These individuals are more conservative in their approach and more oriented towards incremental change • Are your preferences more in line with those of an Innovator? - These risk-takers prefer more radical or transformational change

5- Social skill

•Building networks •Managing relationships •Persuasiveness •Social skill is the outcome of the other 4 characteristics

Essential Change Agent Characteristics

•Commitment to improvement •Communication & interpersonal skills • Determination • Eyes on the prize & flexibility • Experience & networks • Intelligence

3- Motivation

•Driven to achieve •Passion for work •Optimistic

Relation-based definition

•Focuses on leader-follower relationship •Based on the follower's perception •Mutual obligation *Reciprocal - not linear

Miller's Stages of Change Beliefs - Develop one's skills as a change agent:

•Formal education •Experience. Will need this to truly develop skills. • Take responsibility for own learning

Developing Yourself as a Change Agent

•Formal study helps develop the awareness & skills of change agents, but experience is invaluable •You are your own best teacher - learn by doing •Accept responsibility and blame no one •True understanding comes from reflection on your experience • •Reflection and Appreciative Inquiry are powerful developmental tools for both yourself and those you are working with

Lueck's Seven Steps for Change

•Identify the leadership •Focus on results, not activities •Start change at the periphery, then let it spread to other units, pushing it from the top •Institutionalize success through formal policies, systems and structures •Monitor and adjust strategies in response to problems in the change process

Role of Trust in Organizational Change

•Intro: Bridge between recipients and change agents •Changing environment, speed of change, lack of face to face interaction - trust is more important than ever •High levels of uncertainty about: org's ability to implement the change, whether the change is required, and especially personal requirements: outcomes for own goals, job security, job characteristics, social relationships •Risk involved in organizational change makes trust a central variable •Have discussed communication, getting the right people involved, etc. •Role of trust is also important. *note that if trust in an organization is low, any change efforts are going to be viewed suspiciously

4-Empathy

•Showing concern for others •Understanding and reacting to others' emotional reaction

Change agent Managers (transactional)

•Team building •Managing resistance •Problem solving

The Inside Change Agent Roles

•The Catalyst overcomes inertia and focuses the organization. • The Solution Giver knows how solve the problem. • The Process Helper facilitates the "how to" of change playing the role of third party intervener. • The Resource Linker brings people and resources together to solve problems.

1-Self-awareness

•Want constructive feedback •Honest appraisal of own strengths, weaknesses, emotions, needs

Can Emotional Intelligence be developed?

- Most likely combination of nature and nurture •Some genetic influence but also can be learned or improved •Increases with age - Requires practice and feedback (not a 2 hour training session) •Need to break old behavioral patterns and form new ones

Trust - Two ways to define it (both are based on follower's perception)

- Relation-based definition - Character-based definition

Political skill Tactics

-Direct Confrontation -Anger and Rage -Withholding Information •Silence •Sullenness •Robert McNamara. No small talk but with Kennedy talked and knew details of family, etc. -Know the Facts (or at least pretend) •Extreme confidence -Strategic use of coercion -Aggressive physical demeanor and words •Taunts •slurs • •Example: Steve Jobs

Political skill Surviving an intimidating leader

-Find out what's worked in the past -Work harder -Earn respect •President Johnson held meetings in private bathroom. "Come closer. I can't hear you." Assistant responded, "Only have one seat in there." -Call their bluff -Keep perspective -Learn what you can •Why do people keep working for them? •Martha Stewart, Steve Jobs, Harvey Weinstein

Stage 3: (Experienced)

Beliefs: people may not be willing or able or ready to change. As a result, change leaders will enlist specialists to design a change plan and the leaders will work at change but resist changing themselves. Underlying is the assumption that the ideal state is where people will become committed to change. Otherwise, power and sanctions must be used.

intuitive adapter

Has the clear vision for the organization and uses that vision to reinforce a culture of learning and adaptation

Exothermic Change

More energy is liberated than is consumed, by the actions undertaken to promote change

Endothermic Change

The change program consumes more energy than it generates

Characteristics of a strong change team member are often contradictory. a. True b. False

a. True

2-Self-regulation

• Control and manage own reactions • Impulse control • Comfort with ambiguity and change