ILM Level 5 Leading Innovation and Change
Overview of the Leading Innovation and Change unit • Day 1: Overview of “why” organisations need innovation and change and how to lead change • Day 2: Looking into the “what” needs to change and what tools can be used to determine feasibility and viability • Day 3: Considering “how” to make the planned changes happen, how they can be monitored and progressed. Also the role of communication in overcoming barriers and other difficulties
Key ground rules • Confidentiality • Respect • Listening • Constructive • Contribute
Learning objectives • Understand the need for innovation and change management within an Organisation • Be able to propose innovative solutions to improve organisational performance • Be able to lead and manage change within an organisation
Culture change • How is the world changing?
The Scale of Change • http://www.youtube.com/watch?v=YmwwrGV_aiE
What is the difference between innovation and change? • An Innovation Network member, Peter Marinelli at Kraft, has asked us a question we thought would make an interesting thought stimulator: • "What do you see as the key difference between innovation and the activities required to successfully complete any large-scale change-management activity/project that causes leapfrogs in competitive advantages or causes people to work in a completely new way? This question came up in a discussion with a very seasoned process implementation person, who is somewhat sceptical of putting the banner of "Innovation" on various and sundry activities."
In your groups • So, think about "innovation" and "change management" and tell us what difference, if any, you see between the two.
Innovation and Change • Change is anything different from current conditions whereas innovation is something entirely new than anyone has seen before. Read more: http://wiki.answers.com/Q/What_is_the_drifference_between_change_and_innovation#ixzz1ltA1BsTo
Innovation • Innovation and business performance • Financial and social benefits • Radical and incremental innovation • Innovation as a form of competitive edge • Creativity and innovation – what conditions and processes are required to encourage them?
What is change? "There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.“ Niccolo Machiavelli Change is when something becomes different, requiring people, process or technology to adapt to a new way of doing things • “You cannot dip your toes into the same river twice”. • Heraclitus (Greek philosopher) “It is not the strongest species who survive, not the most intelligent, but those who are the most adaptive to change”. Charles Darwin Change may be as good as a rest, but the effort required to make the change means you will certainly have earned it Change is something that happens to us or can be something we initiate. Either way, we cannot always predict the effect that change will have on us and given change is either unavoidable or better than a rest, our best option is to sit back and experience the ride! Change is acting, operating and thinking differently as a result of a variation in our current environment / circumstances. Change is inevitable! Change is a move away from a place, routine or relationships that you accept as “normal” to a place, routine or relationship that you will come to accept as “normal”
What is Change? • It will be different for everyone • It has a Process • A Change of state or a change in the way you do something • Vision, plans, dates, systems, technology, training • Physical stuff • It has an Emotional Transition • Mind-set, behavioural change • A change in the way you think about something • Soft stuff – harder to do • Is dependant on your preferences, previous and current experience • Is influenced by the ‘size’ of the change
The Change Journey Future State Acceptance Early Interest Current State Testing Shock & Denial Adapting Anger (Kubler-Ross, D. Conner, Changefirst) Bargaining
Change • Change in the organisation
How is change planned and identified in in the organisation? • PESTLE • SWOT
Activity: Change drivers With your neighbour discuss the major social, political, economic, technological and demographic changes facing the Universityin the next 18 months • Fees package and student support Restructuring • Recruiting and retaining first-rate academics • Expansion- development plans Collaboration • HR Strategy • Developing income streams • Internationalisation Interdisciplinarity
Group discussion • What assumptions about change typically drive the change process in the University? • What do you see as the main characteristics of the change process (e.g. consultation, communication, implementation, etc)? • How effective are these characteristics in bringing about the desired change? What makes them so?
Culture web • In your group, complete a culture web for Loughborough University…
Activity: Culture and change WHAT? HOW? Which aspects of our culture support the strategy? How should they be reinforced? MUST KEEP Which aspects of our culture will block the strategy? How can you cope with these? MUST STOP What new aspects of our culture are needed? Where will they come from? Source: Johnson and Scholes, Exploring Corporate Strategy MUST ADD
Levels of Change Change can occur at different levels in the organisation. • At strategic level, fundamental change will be needed if the organisation is out-of-line with the requirements of the business environment or the shareholders demands. This situation is known as ‘Strategic Drift’. • The working environment is subject to the political, economic, social and technological trends of the day.
Types of Change WANT TO MADE TO NEED TO EASY HARD or PAINFUL
Types of Change The type of change can be classified using a simple two-by-two matrix involving the extent of change and the speed that change is required Which works best in HE; and why? Take a look at your Resource pack Pg. 14
What type of change? Triggers of change • STRUCTURAL, COST, PROCESS, & CULTURAL • Breakthrough change – business process re-engineering • Continuous improvement and incremental change (Kaizen)
What does change & innovation need to start • Having a burning platform (D.Conner) • Do you understand that the status-quo will not last or is not sustainable? • Can you clearly define what the change is to others and the impact? • Do they really understand why this has to be done! • Do they really believe you? • Establishing a sense of Urgency (J.Kotter) • People need to understand they need to act know! • The impact on Operational Performance • Clarity on non-performance • Excitement & motivation on the Opportunities • Expectations are clear
Key Steps to Successful Change - Kotter • Establishing urgency • Creating change agency • Developing vision and strategy • Communicating the need and benefits • Empowering others to act • Realising some quick hits • Consolidating gains (catalyst for more change) • Institutionalising cultural change From Kotter, Pascale
TypicalIngredientsofSuccessfulChangeEfforts Most successful major changes include the following in either the planning or management of the implementation of changes. • Top management establish a temporary management structure to handle the change • A process of planning for change is used • Effective leadership at all levels, including appropriate involvement of staff and team building • Flexible and constructive approach to control, including a focus on solutions (not blame) and a willingness to recognise success • An effective communications plan is sustained over the whole change process, including two way multi media cascading to all levels of the programme Henley Management College: ‘Business Transformation’
Review of Day 1 • What we are going to cover tomorrow
Day two • Identifying the need for change and innovation and thinking about how we do it
Moving Towards Transformation STAGE 1 STAGE 2 STAGE 3 • Vision • Mission • Corporate Values • Business Strategies • Goals & Objectives • Policy • Business Processes • Structure • Training & Development • Formal Rewards • Governance • Beliefs • Values • Individual Self-Esteem • Leadership Styles • Attitudes • Working Relationships • Communications Patterns • Informal Rewards TRANSFORMATION SOFT HARD TRANSFORMATION • In order for people to change, it is critical to manage and then prove that the ‘hard’ elements are in place • Without this, these formal elements will continue to act as blockers for the organisation (Based on the work of Rose Kennedy – The Orders of Change)
Tools for Innovation & Change • Brainstorming • Process Improvement • Benchmarking • Facilitation • Self Perception/observation • Social epidemics • Cross-functional working & Collaboration
Brainstorming • SCAMPER • De Bono – 6 Hats • Workshops
SCAMPERA checklist of idea-spurring questions (Adapted from Michael Michalko)
SCAMPER • S Substitute? • C Combine? • A Adapt? • M Modify? Magnify? • P Put to other uses? • E Eliminate or minify? • R Rearrange? Reverse? (Thinkertoys – Michael Michalko)
Activity…….. • Use SCAMPER
6 Hats • White – facts we know • Red – emotion • Yellow – optimism • Green – creativity • Black – constructive criticism • Blue - planning
Tools for Innovation & Change PROCESSES • Process Frameworks • Process Maps • Process Improvement
Definition • Process - a systematic series of tasks required to achieve an end goal. • Procedure – this is the work instructions in showing the steps involved in performing a particular task • The difference between the two is that a process describes a series of related tasks required to achieve a particular end goal, whereas a procedure only describes the steps taken to accomplish a single task. • Another useful distinction is that a process describes what has to be done, whereas a procedure describes how it is done.
What is diagnosis? • Think of visiting your doctor, dentist, computer or car mechanic. What is a diagnosis? • What does s/he do to diagnose your condition? • What are the uses/purposes of a diagnosis? What does it allow you to do? • What, therefore, are the criteria for a sound diagnosis? • How is a diagnosis derived? • Who is skilled to carry out diagnosis? What do they need? • IF YOU COULD FIX ONE PROCESS IN THE UNIVERSITY WHICH ONE WOULD IT BE??
Key Elements of your functionAn example Maintenance Department • Define the key activities that add value to your customers • What sub processes sit below them? • What links the steps together? • Who else has activities in these processes?
Process Management Verify Fault Resolution London Underground Repairing Contractor Fault Reporting Centre Repairing Contractor London Underground Representative Fault Resolved Is LU Rep available for sign off? Show resolved fault to LU Rep Determine if fault is fixed yes no Resolve Fault Agree with non-sign off? Is fault fixed? Is it a permanent fix? Notify FRC of Disputed Resolution no no no Disputed Resolution Verify Fault Resolution yes yes yes Notify FRC no LU Rep to sign off Perm Fix Escalation Process Raise Work Order Notify FRC of Failed Resolution Is it a permanent fix? yes Close Fault no Close: Fault Resolved without Sign Off Confirm sign off to FRC Sign off Fault as Permanent Fix Close: Signed off Fault Notify FRC no LU Rep to sign off Temp Fix Fault Rectified Confirm signed off temp fix to FRC Sign off Fault as Temporary Fix Close: Temp Fix With sign off Close: Temp Fix without Sign Off Open New Fault Report Open New Fault Report
SIPOC • SIPOC is a structured method for defining the core process information and getting consensus before rushing off and drawing detailed process maps • SIPOC • Supplier • Inputs • Process • Outcomes • Customer
Process Name Suppliers Objective Outputs Outputs Outputs Process START STOP Customer Outputs Outputs Inputs