Organizational Change

1. Organizational Change “The Organic Organization”

2. Directions Compatible with“ Organic Organization “ • The World Is Flat – Thomas Friedman • Horizontalization and Flatteners • Triple Convergence • From Command and Control to Collaborate and Connect in Order to Compete • Tend to the Secrets of Our Sauce: No. 1 Ingredient – American Research Universities-they are the best • Don’t Build Walls – Open Up

3. The Flatteners • The Walls Came Down and Windows Came Up-Netscape Went Public • Work Flow Software • Self-Organizing Collaborative Communities • Outsourcing and Off shoring • Supply Chaining and In sourcing • In-forming – search engines • Digital, Mobile, Personal and Virtual

4. Misinterpretation of Dot.Bomb • Internetworking Continuing at Rapid Pace-Overbuilding of Fiber –Software Development Improves-Responds to Customers – Standards - Interoperability • Globalization Rapidly Expanding • Next Generation of Innovation – Real Human Mosaic Emerges

5. Triple Convergence • Flatteners Converged – Tipping Point in 2000 (Convergence One) • New Technology Combined with New Ways of Doing Business (Convergence Two) Walls Came Down – Companies Looked at Employees as Vast Pool of Individual Specialists • People Getting comfortable with Global Infrastructure En Masse – Whole World Is One Marketplace

6. The Dance of Change • To understand the process of change, we must think less like managers and more like biologists • Seeds must have the potential to grow – sensible gardeners concentrate on eliminating the constraints • Biological World Understands: Sustaining change requires understanding the reinforcing growth processes, what’s needed to catalyze, address limits that keep change from occurring Senge et.al

7. Interplay between Growth Processes and Limiting Processes “Recognize nature’s way, and work with it.” Humberto Maturana, Biologist, Chile

8. Challenges to Change • Not enoughtime-combine several change initiatives that have a common goal to use time more efficiently • No Help-Must be O.K. to ask for help and mentoring – create capacity for coaching from people who have been there • Not Relevant-Must create a compelling business case for change • Walking the Talk-Match behavior and value: patience under pressure

9. Sustaining Transformation – Three Challenges • Fear and Anxiety – trust is critical-openness-breakdowns become opportunities for learning • Assessment and Measurement-Innovation involves mistakes – appreciate time delays involved in major change and do not judge prematurely. Assessment process may need change and must be fair. • True Believers and Non-Believers-change leaders must be bicultrual – able to live in innovative subculture and mainstream

10. Accommodating Widespread Change • Governance may have to be modified – strategic when crossing boundaries • Diffusion-the organization must value network leaders who carry change throughout organization • Strategy and Purpose – the new ideas about strategy and purpose emerging from organizational pioneers must find a way to help organizations reinvent themselves

11. Peter Drucker • Economic growth in the developed world can only come from increasing the productivity of the one resource these countries still have a competitive edge: knowledge work and knowledge workers • There will be no single dominant world economic power • Knowledge constantly makes itself obsolete, with the result that today’s advanced knowledge is tomorrow’s ignorance • In the networked world everything can be known

12. Esther Dyson • When so much about you is known or knowable candor is the best way to earn credibility • An organization’s relations with customers and employees: the boundaries of what can be held private are narrowing – spin won’t work anymore • Responding to feedback and influence rather than control – new organizational leaders

13. Paul Saffo • Information overload is wrong term: it is not a consequence of the volume of information but the gap between information volume and effectiveness of sense-making tools • Next decade most important advances will be visualization techniques and simulation systems • Need to know how to use the new tools and when to switch off computers and take your own counsel

14. Peter Senge • No longer possible to figure it out at the top • Increasingly organizations are building competitive advantage through less controlling and more learning • We have to surrender the myth of leaders as isolated heroes – build communities of leaders within an organization requires recognizing and developing:

15. Building the Leadership Community • Local line leaders, unit managers – they introduce and implement new ideas; • Executive Leaders – mentor line leaders – become their “thinking partners” steward cultural change – invest in new knowledge infrastructures such as learning laboratories • Internal networkers, often with no formal authority

16. Institutional Learning Arises form Three Interrelated Activities • Research • Capacity Building • Practice • “We have two critical challenges: how to address deep problems for which hierarchical leadership is insufficient and how to harness the intelligence and spirit of people at all levels of the organization to continually build and share knowledge”