Change Manage

1. ment Change Manage The psychology of CHANGE and how to manage it in the Public Sector (Steering dynamic cultures to greater success)

2. Rini Stobbe Intro Rini Stobbe is a Cognitive Scientist specialising in the Psychology of change in individuals, teams and corporations. He has extensive background in the education arena and is currently working on projects that are able to bring easily accessible education to the masses through internet platforms.Rini has qualifications in all the Cognitive Science disciplines, ranging from B.Sc in the biological sciences; Psychology from the Edith Cowan University (Aus); Microsoft certification in Visual Basic & SQL, to a registered Project Management Professional with Project Management Institute. After 20 years of teaching adults from all walks of life in disciplines from Understanding Computers to Project management and Leadership, Rini has established himself as a competent facilitator, and professional teacher, able to lead individuals and groups successfully on the paths of learning and change.

3. Clear as mud Driver

4. Fishing the Fijian way Research Hook the fork-end of the spear into the sling and then pull the spear back until the rubber band is taut. Once under water, when the pointed end of the spear is aligned with a fish, release the spear from its enforced position of tension and kah-ching! Before you think that doesn't sound too tricky, and that surely, you would never have missed a target, let me remind you that at the same time you are snorkelling in a location where your feet do not touch the bottom. Not even close. So, where ever your spear lands you have to free dive down to retrieve it. Fear of losing the spear becomes far greater concern than your desire to catch a fish. On my third, failed attempt I flung my spear at a poor unsuspecting Angel fish who quickly darted off to avoid my missile. The spear landed precariously at the edge of a reef and very slowly started to fall. This set me in a panic. Below it lay the deep ocean floor, which I knew I couldn't even hope to reach. I took a deep breath and dove down to retrieve the rod. Due to the fact that my mask acted as a magnifier, the spear was apparently further than I imagined and I failed to quite grab it on the first attempt. I bobbed up to the surface, wheezing and spluttering, adrenalin pumping and heart beating fast. I looked around for someone to perhaps help me but Fred was nowhere to be seen. I had to gain my composure, give myself a serious talking to and conjure up enough bravado to try once again. It was tough, but on the next dive I managed, albeit barely, to regain control of my spear. I gave up that point. Fear was greater than desire. Thank goodness Seruvi was able to show us how to do it properly!

5. Kokoda (Fijian Spicy Fish) Research • 4 large fillets of white fish such as mahi-mahi • Juice of 3 large limes • ½ teaspoon salt • 1cup fresh coconut cream • 1 large onion, minced • 1 small green chile, such as serrano, seeds and stem removed, minced. • 2 medium tomatoes, diced • 1 bell pepper, seeds and stem removed, diced • Cut the fish into bite-size pieces. In a non-reactive bowl, combine the fish, lime juice, and salt. Marinate overnight in the refrigerator. • Remove from the refrigerator, add the coconut cream, chopped onion, and chile just before serving. Sprinkle the tomatoes and bell pepper over the top. Serve on a bed of lettuce in coconut bilos (half coconut shells). • Yield: 6 to 8 servings This fish dish is a Fijian favourite and utilises common ingredients of the islands. It is the Fiji version of ceviche. Serve it with a fresh fruit salad. Heat Scale: Mild

6. Achieving Behaviour Change (Kotter 02) Research See - Feel • HELP PEOPLE SEECompelling, eye-catching, dramatic situations are created to help others visualize problems, solutions, or progress in solving complacency, strategy, empowerment, or other key problems within the eight steps. • SEEING EVOKES EMOTIONSThe visualisations provide useful ideas that hit people at a deeper level than surface thinking. They evoke a visceral response that reduces emotions that block change and enhances those that support it • EMOTIONALLY CHARGED IDEAS REINFORCE CHANGED BEHAVIOUR • GIVE PEOPLE ANALYSISInformation is gathered and analysed, reports are written , and presentations are made about problems, solutions, or progress in solving urgency, teamwork, communication, momentum and slippage. • DATA & ANALYSIS STIMULATE THINKINGThe information and analysis change people's thinking . Ideas inconsistent with the needed change are dropped or modified. • NEW THOUGHTS CHANGE BEHAVIOUR OR REINFORCE CHANGED BEHAVIOUR Analyse - Think

7. Change Management Overview Current State Change Desired State Structure Process People Culture

8. Change Management Overview Change Drivers Guiding Team Evaluation Gap analysis Impact / Advantage Method Project Action Plan Resistance Short term Wins Vision / Objective Key Players Role / Responsibility Matrix Remove barriers Persevere Urgency Assess willingness & Capability Consolidate Change Exit Strategy Consensus Support Motivation Training Communication Start Culture End Culture

9. Change Management Models Research Newton 07 LaMarsh 04 Kotter 02 Learn Basics Learn Basics Increase Urgency Understand Objective Process of Change Build Guiding Team Build Change Team Roles & Responsibilities Get Vision Right Plan 4 Change Success Overcoming Obstacles Communicate for Buy-in Manage Communications Willingness & Capability Safety Nets Empower Action Implement Change Master Action Plan Create Short term Wins Consolidate Change Closing the Cycle Don’t Let up Prep Future Change Make Change Stick

10. Critical points in the Change Process (Weinberg 94) Research

11. Change Acceptance (Kubler-Ross 69) Research Self Esteem Anger Denial Acceptance Bargaining Depression Time

12. Transformation (Satir 91) Research Transforming Idea Foreign Element New status quo Performance Old status quo Integration & Practise CHAOS Time

13. A dip in the Delta... Research ❷ The GOAL of Change management • Performance after change is higher • Time to reach new performance is shorter • The drop in performance due to initial change is less ❶ Performance ❸ Time

14. Organisational metaphors (Morgan 86) Research • Brain • Culture • Machine • Organism • Psychic Prison • Political System • Flux and Transformation • Instruments of Domination Metaphors show both the way in & the way out, not disclosing which is which

15. Political System metaphor (Morgan 86) Research • Key Beliefs • You can't stay out of organisational politics: you' re already in it • Building support for your approach is essential if you want to make anything happen • You need to know who is powerful, and who they are close to • There is an important political map which overrides the published organisational structure. • Coalitions between individuals are more important than work teams • The most important decisions in an organisation concern the allocation of scarce resources, that is, who gets what, and these are reached through bargaining, negotiating and vying for position Metaphors show both the way in & the way out, not disclosing which is which

16. Political System metaphor (Morgan 86) Research • Assumptions about organisational change • The change will not work unless it's supported by a powerful person • The wider the support for this change the better • It is important to understand the political map, and to understand who will be winners and losers as a result of this change • Positive strategies include creating new coalitions and renegotiating issues The CEO Hero does not always win the day.

17. Change Drivers Research • Meeting demands of Markets, Society & the Environment • Maintaining a competitive advantage • Sustaining outcomes and performance • Reducing • Waste • Risk • Improving • Profits • Productivity • Quality • Resource utilisation • Safety • Customer satisfaction • Employee satisfaction Change always starts with a Driver Pro-active / Re-active or Internal / External

18. Change in the Public Sector Research • You are a senior civil servant in a large government department. The service you provide to the country is coming into open gaze of the public and the national press. The work you do is in much greater demand, but there is also much greater scrutiny over what you do and how you do it. The general public want more from you, but they are increasingly critical of the way you do things. You are contemplating to increase the level of staff and funding in key areas of your department. However, you also know that to be successful you must revise the way your staff work and the way they interact with the public and the media. • Know why the change is imperative Whatever the change – it is never going to be easy Change management always starts with an Executive Decision

19. Change Successes Research • Despite some individual successes ... change remains difficult to pull off, and few companies manage the process as well as they would like. Most of their initiatives - installing new technology, downsizing, restructuring, or trying to change corporate culture - have had low success rates. The brutal fact is that about 70 per cent of all change initiatives fail. Beer and Nohria (2000) Harvard Business Review, May-June, 133 – 141 • Only three out of four change initiatives give the return on investment that leadership forecast. .. most independent research shows change failure rates running at about 70%. In other words, only about three out of every ten initiatives give return on investment that leadership forecast... seven out of ten change efforts that are critical to organizational success fail to achieve their intended results. Miller 2002

20. Change Successes Research • Major new corporate systems implementations: • 28 per cent are abandoned before completion; • 46 per cent are behind schedule or over budget; • 80 per cent are not used in the way they were intended to be or not used at all six months after installation. Gartner Group (2000) • Emotional fallout that change can produce, • only 6% of change management projects were completely successful • 32 % 'mostly' successful • Of the successful Projects • 44 % of people were anxious • 22 % confused • 23 % frustrated • 24 % fatigued McKinsey's survey (2006)

21. Change Successes Research • Greatest Contributors to Success of 400 International companies: • effective sponsorship from senior management in terms of active visible support, ongoingsupport throughout the life of the initiative, acting as role models for the change, communicating and being ambassadors for change • Buy-in from front-line managers and employees which got the change moving and kept momentum going • Continuous and targeted communication throughout the project. This would be tailored in depth and breadth to the different interested communities • An experienced credible team who maintained good internal working relations and also networked into the organisation; • A well-planned and organised approach which is suited to the type of change being managed. Hiatt & Creasey(2003)

22. Evaluation Gap Analysis Structure • Leadership • Skills • Culture • Roles & Responsibilities • Rank Key Processes • Draw Flow Processes • ID Bottlenecks & Marshes ? Processes ? Structure • Skills matrix • Character matrix • Experience matrix • Knowledge matrix • Core Values • Belief system • Characteristic Behaviour • Implicit / Explicit Social Rules ? ? Culture People

23. Change evaluation... ? Research • List Unacceptable Situations • Describe why each situation is unacceptable (Problem) • Support descriptions with Facts, Figures and Feedback • Plot Cause or Effect links between problems • Determine the Ultimate Impact of these problems on the Organisational Performance • Note the remaining time before these problems become more costly & difficult to repair • Identify these problems as Inside or Outside of your control ?

24. Evaluating Impact & Advantage ? Research • What elements are final (Not Negotiable) • What will happen if we don't make this change? • How does the new project or task fit into the bigger picture? • What is the rationale behind this decision? • How are other parts of the organisation affected if we don't do this? • What are the wider ramifications on all stakeholders if we do or don't do this? • What things have happened in the past that have led us to this place ? • How does this new way of doing things impact directly and indirectly or others? • What needs and /or wants will this new action meet? • Where has the push for this change come from? • What are the operating beliefs and meanings here (for all parties)? • What could be other beliefs and meanings that could serve us all better ? ?

25. Out with the Old... Structure • Visualise the New Desired Outcome • Clearly define the Desired State • Create the Vision • Determine the Structural Change needed • Compare the new and existing structures and determine the difference • Determine the Cultural Change needed • Compare the new and existing cultures and determine the difference • Design a Master Change Management Strategy • Identify the Processes • Identify the People Know where you are – Know where you want to go

26. Create Di-vision... Structure • See the Picture • Evaluate the states • Know the Difference • Check Alignment • Obtain Consensus • Make it Clear The Vision vs. Division – The difference between who’s in and who’s out

27. Determine the Objective ? Structure • Listen for triggers • Define & test your objective • Define your output measure and target • Identify and close the gap • Define your change constraints • Define additional measures • Identify data sources • Determine what to change Write down and review your current idea of your change objective Is it correct, clear, meaningful unambiguous, concise, challenging and achievable? Identify any pertinent data relevant to your change that is already collected and available. Decide how you will approach gathering the rest of the data you need.

28. Consensus ? Process • Everyone, including managers, look at change and how it will affect them from their own perspective. Use this exercise to find out what they all think of any change you might propose. • List all the people who are going to be impacted by the change, directly or indirectly. It might even be someone who simply receives reports. They also need to be included, as the information will henceforth be presented in a new way. • Arrange for all managers to review your proposal of the desired state. These reviews can be done one-to-one or in a group. • Determine if the new desired state makes sense to the managers. Are they able to support these changes within their own area of responsibility? • If the managers disagree, or are unwilling to support the desired state, feel free to adjust and modify the desired state without compromising the change . If this is not possible, explain and record who disagrees and how strong their feelings are . • Get back to everyone you have had any consultation with and let them know the outcome and any action you have subsequently taken.

29. Create Urgency (Kotter 02) Process WHAT WORKS • Showing others the need for change with a compelling object that they can actually see, touch, and feel • Showing people valid and dramatic evidence from outside the organisation that demonstrates that change is required • Looking constantly for cheap and easy ways to reduce complacency • Never underestimating how much complacency, fear, and anger exists, even in good organizations WHAT DOES NOT WORK • Focusing exclusively on building a "rational" business case, getting top management approval, and racing ahead while mostly ignoring all the feelings that are blocking change • Ignoring a lack of urgency and jumping immediately to creating a vision and strategy • Believing that without a crisis or burning platform you can go nowhere • Thinking that you can do little if you're not the head person STORIES TO REMEMBER • CEO Portrait Gallery • Angry Customer Video • Nipping Alligators • Gloves on the Table There’s no time like NOW

30. Project Action Plan (Cameron & Green 09) Process • Identify Core Tasks • Identify Quick Wins • Construct the Work Breakdown Structure (WBS) • Identify Resources • Determine the Cost • Build a business case • Obtain sign-off • Implement quick wins Failing to plan is planning to Fail

31. Resistance Profile Process Anger Negotiation Depression Denial • Complacency • Hiding • Defiance • Hesitance Resistance Energy Exploration Acceptance Immobilisation Elizabeth Kubler-Ross Time

32. Resistance to leaving Current State (LaMarsh 04) Process • Don’t see a need to change. • Can't envision the desired state. • Don't know how to change. • Feel that the change is a criticism of performance. • Would rather focus on a different change. • Don't trust the change agents. • Don't trust the sponsor. • Are too comfortable in the current state. • Have experienced failed or painful change in the past. • Value current skills above new ones. Resistance to change can prove a safeguard against too optimistic change

33. Resistance through change states (LaMarsh 04) Process • Have other priorities occupying their energy. • Don't want a heavier workload. • Don't think the organisation can get through the transition. • Think that the cost is too high. • Think that the change is too disruptive. • Think that the change requires too much effort. • Feel that they are too little involved. • Feel that the timing is bad. • Fool that the reward is too low. • Think that there are too many changes going on.

34. Resistance to Desired State (LaMarsh 04) Process • Would prefer a different solution • Fear unknown outcomes • Fear negative outcomes: loss of job / status / control / social structure • Fear irreversible nature of change • Feeling that change does not solve the problem(s) • Fear that learning new way would be too hard • Can’t see or appreciate the relevance of new change to their work

35. Short Term Wins (Kotter 02) Process WHAT WORKS • Early wins that come fast • Wins that are as visible as possible to as many people as possible • Wins that penetrate emotional defences by being unambiguous • Wins that are meaningful to others-the more deeply meaningful the better • Early wins that speak to powerful players whose support you need and do not yet have • Wins that can be achieved cheaply and easily, even if they seem small compared with the grand vision WHAT DOES NOT WORK • Launching fifty projects all at once • Providing the first win too slowly • Stretching the truth STORIES TO REMEMBER • The List on the Bulletin Boards • Creating the New Navy • The Senator Owned a Trucking Company

36. Short Term Wins (Kotter 02) ? Process • Make a list of projects or tasks that could be tackled by empowered people within the organisation in which you have influence-projects or tasks that could be short-term wins. • For each item on the list, assess the following : • When could you realistically get this done' How many months? • How much effort and expense will it take? Grade it on a 1 to 10 scale, from almost no effort to huge time and expense. • How unambiguous will the win be? (1 to 10) • How visible will it be? (1 to 10) • Will this be viewed as a meaningful win? (1 to 10) • Who will see it as meaningful? How powerful are these people? • Given these assessments, which of the items on your list should receive priority? • Pick the top five. • What 's number one?

37. Removing Barriers (Kotter 02) Process WHAT WORKS • Finding individuals with change experience who can bolster people's self-confidence with we-won-you-can too anecdotes • Recognition and reward systems that inspire, promote optimism, and build self-confidence • Feedback that can help people make better vision-related Decisions • "Retooling" disempowering managers by giving them new jobs that clearly show the need for change WHAT DOES NOT WORK • Ignoring bosses who seriously disempower their Subordinates • Solving the boss problem by taking away their power (making them mad and scared) and giving it to their Subordinates • Trying to remove all the barriers at once • Giving in to your own pessimism and fears STORIES TO REMEMBER • Retooling the Boss • The Worldwide Competition

38. Perseverance Process • Perpetuate the Vision • Get into the Boat • Loose the Anchor • Share the Benefit • Provide window seats • RSVP It’s not those who run the race that get the Prize – it’s those that finish the race.

39. Consolidate Change ? Process • Ensure performance management is in line with objectives • Aid the adaptation Process • Own up to mistakes • Finalise the Change Identify the differences and consistencies between your performance management structures and the type of change you are implementing. Determine which components of the management system need to be altered to align. Identify and include all activities that continue, even after the change intervention is done.

40. Exit Strategy Process • Knowledge Vault • Lessons Learned • Identify Future Changes • Sustain Current Change • Closing Out It ain’t over, ‘til it’s over

41. Key Players People • Change agents • Appropriate Skills • Leadership Capacity • Organisational Credibility • Influential Networking Connections • Sponsor • Team Leaders • Targets

42. Guiding Team (Kotter 02) People • Individuals are selected to have the right combination of capabilities within the team: • A single individual who feels great urgency usually pulls in the first people. • Relevant knowledge about what is happening outside the enterprise or group (essential for creating vision) • Credibility, connections, and stature within the organization (essential in communicating vision) • Valid information about the internal workings of the enterprise (essential for removing the barriers that disempower people from acting on the vision) • Formal authority and the managerial skills associated with planning, organizing, and control (needed to create the short-term wins) • The leadership skills associated with vision, communication, and motivation (required for nearly every aspect of the change process)

43. Teams People • Teams • Identify New Teams that are needed • Recognise existing teams • Consolidate Teams where beneficial • Empower Teams • Reward Progress • Monitor progress and provide regular feedback • Allocate and honour team roles

44. Roles & Responsibilities People • Change agents • Appropriate Skills • Leadership Capacity • Organisational Credibility • Influential Networking Connections • Sponsor • Team Leaders • Allocate, Appoint & Anoint leaders • Tend to leaders' needs • Hear Leaders’ feedback • Direct access, Regular forums, Prompt acknowledgement • Value & act on their input • Targets

45. Willingness & Capability People • Identify the champions • Stakeholders • Team Leaders • Key Personnel • People with influence • Cultural Icons • Continually tend to champion issues • Grow ownership • Inaugurate models • Award Titles • Delegate Responsibilities • Explain Expectations

46. Communication Strategy Structure • Constant • Accurate • Honest • Inclusive (Non – exclusive) • Bi-directional • Ownership • Timely • Structured • Closed (No open ends) Speak with one voice

47. Support Structure • Support all effort • An army is only as strong as its feeding provision • Reiterate, propagate and Infiltrate the vision and its progress • Motivate the people • Reinforce Actions • Positive / Negative • Create enabling systems • Discourage deviation • Market the champions Trust is putting your safety in the hands of another. Don’t break that Trust

48. Training Structure The Training Plan What Targets need to know What Change Agents need to know • to understand the change • to survive the change phase • to perform in the final desired state What Sponsors need to know

49. Motivation Structure • Design Rewards • Feed the Mazlow Needs • Recognition • Adoration • Compensation • Honour • Challenge • Reinforce Self Esteem Esteem Love Safety Physiology Gratitude is not a word – its an action!

50. Culture/mindset etc Culture • Corporate culture represents behaviours that new employees are encouraged to follow (Kotter and Heskett, 1992) • It creates norms for acceptable behaviour (Hai, 1986) • Corporate culture reinforces ideas and feelings that are consistent with the corporation's beliefs (Hampden-Turner, 1990) • It influences the external relations of the corporation, as well as the internal relations of the employees (Hai, 1986) • Culture can have a powerful effect on individuals and performance (Kotter and Heskett, 1992) • It affects worker motivation and goals (Hai, 1986) • Behaviours such as innovation, decision making, communication, organizing, measuring success and rewarding achievement are affected by corporate culture (Hai, 1986)