Culture Capacity

1. Change Enablement Not Willing Not Able Not Knowing Results Ownership Roles and Responsibilities Organizational Business Process Redesign Technical Change Infrastructure Buy-in Technology & Processes Personal Understanding Awareness Moderately Successful 4% Not Very Successful Very Successful 9% 27% Too soon to tell 27% Unsure 33% What is Change Enablement? The Change Enablement Framework • REALIZING - Enacting desired changes, measuring results, and identifying required adjustments to the change plan. • LEADING- Preparing the organization to design and begin realizing outcomes specified in the business vision. • DESIGNING - Creating and enacting a change plan to close the gap between the current state and desired future by defining the major tasks & activities for the transition period, and determining the structures and management mechanisms necessary to accomplish those tasks. • Change enablement is the process (strategies and activities) that supports organizational and personal transitions from the current state to the desired future state. • Organizational transitions consist of the organizational changes in structures, processes, management systems and technology required to successfully implement the organization’s business vision and strategy. • Individual transitions are the psychological processes people go through to come to terms with the new situation. Individual transitions require unique planning and action to ensure that the the personal transition process is aligned with and supports the organizational transition. • Our knowledge of change and experience suggests that by not effectively managing these transitions through effective education and other change strategies, project success can be compromised. • Desired business benefits are not realized • Behavior does not change • Productivity will decrease, turnover will increase • Employees find it difficult to perform intended roles • Change occurs at great expense • Resources (time, money, people) are wasted • Market opportunities are lost • Customer service and satisfaction declines • Future change efforts are compromised • People lose confidence in leadership • Levels of change resistance increase • Reinforces implicit belief that the organization cannot change Vision for Change Realizing Organizational Transitions FutureState Designing Change Architecture Organizational Design & Performance Management Leading Culture & ChangeAlignment Communication Strategy Culture Capacity Beginning Leadership Capacity & Stakeholder Commitment Individual & Team Capacity Leadership Capacity Individual & Team Capacity CurrentState Exploring Organizational Readiness & Business Case Individual Transitions Ending • ENDING is the process of understanding the personal impact of change, letting go of the past and dealing with potential losses. • EXPLORING is the process of overcoming anxiety and resistance, experimenting with changes and defining new roles • BEGINNING is the process of adopting new values, attitudes and identities and seeing the tangible benefits of implemented changes. Why is Change Enablement Important? Success of Change Initiatives Why Change Initiatives Fail • We have all seen change happen (successfully or unsuccessfully) in our projects. We just saw that many organizations do not deal with change well. So, why hasn’t change been successful? • What does this chart tell us? • Many organization feel that technology is the answer to many of their business issues. • We can see that technology alone will not solve their problems. In fact… • Most of the factors impacting the success of change efforts are related to the “soft” side of change and not the “hard” issues. Primary barriers to change • This study asked clients how they would rate the success of their recent change initiatives. It is clear that: • Traditional approaches have not been extremely successful • Only 13% found they were successful to any degree • 33% unsure - that is unfortunate, given the fact that they probably spent a significant amount of time & money. • Many organizations do not deal well with change. 20% 40% 60% 80% 100% Resistance to Change Limitations of Existing Systems Lack of Executive Commitment Lack of Executive Champion Unrealistic Expectations Lack of Cross-Functional Team Inadequate Team and User Skills Technology Users Not Involved Project Charter Too Narrow Source: Information Week, June 20, 1994 Note: Total Exceeds 100% due to multiple responses Data: Deloitte & Touche survey of 400 U.S. & Canadian CIOs The Nature of Resistance Overcoming Resistance These strategies and the behaviours they involve are not usually productive long-run approaches to handling resistance. To create a long-term environment that supports change, organisations and individuals need other ways of working with resistance. Instead, consider: Each organisation and individual will handle resistance in different ways, according to organisational culture and individual preference. However, examples of poor approaches include: Reasons employees resist technology… They may not be willing, able or knowing • Do not understand the business realities driving the goal’s for new technology • Do not think it will make their job easier • Don’t have the skills to work in the new environment • Have been warned about technology replacing their jobs • Are afraid to look “stupid” • Have a general fear of change • Feel they have experienced ineffective implementations Resistance Pyramid

2. Communications Develop Communication Action Plan Vision Principles Example: “Communication will seek to provide people with information that is relevant, is communicated at the appropriate time in an effective way - it shall recognise the need to provide clarity about people’s roles, both during implementation and in the future” • Segment and assess impacted change audiences/stakeholders (SDA Component 2). • Conduct a communication audit. • Develop an overall communication strategy for each phase of the change process. • Assess effectiveness of communication strategy on a regular basis. • Assign someone to be responsible for the overall execution of the strategy. • Will all communication be 2-way? • How will different audiences be communicated to? • What are the Key Success Factors for communication (understanding/awareness/buy-in/ownership)? • How will the cultural and linguistic differences be managed? • How honest and direct will communication be? • What is not “communication”, ie when are we not communicating? • How do we ensure consistency throughout the organisation? • How do we make it personal? • Have I got a job? • What is the change going to mean to me? • How is the change going to affect my people? • How much sense does the change make for the business? • What’s in it for me? Communication Infrastructure A communication Infrastructure is the formalised interrelationships and responsibilities of people who in some way participated in forwarding the communication strategy • LEADERSHIP TEAM • Review and send communication • Respond to issues so project team can respond to divisions/departments • Visibly support project through involvement at corporate and divisional levels • ISSUES DATABASE/ • COMM. LOG • Repository for feedback, issues and resolution • PROJECT TEAM • Develop communication tools/events with Comm. Managers • Respond to questions from divisions • Log communication in database • COMM. MANAGERS • Lead communication efforts • Develop communication tools/events with Project Team • Monitor effectiveness of communication infrastructure across divisions Issues Database/ Communication Log Major Issues • Feedback • Issues & Resolution • COMM TOOLS • Site Visits • Project Updates • FAQs • Meetings • Training • Day-to-day communication • Conference calls Two-way Project Communication between and across Project Team and Streams/Countries • Feedback • Issues & Resolution • General Project Information AA Client • Goals of the communication plan include: • providing people with what they need in order to make informed choices about whether to commit to the change and how to comply with the change. • building trust through candidly discussing the need for and the difficulty of changing, including the consequences of not changing. • reporting progress—or lack of progress—so that people can be responsible contributors to the success of the changes. Sweden Norway Finland Denmark UK/Ireland Belgium Netherlands • STAKEHOLDERS/ USERS/ DIVISIONS • Participate in project design and development discussions. • Participate in the extended communications/change team • Identify Provide input on communication/change needs Importance of an Effective Communication Strategy Communication Mechanisms High • Payslip • Hotline • Poster • Employee Suggestion scheme • Survey • Newsletter • Team Briefings • Bulletin • Cascade Briefings • Action Teams • Conferences, Fairs & Exhibitions Potential to reach all • Employee Satisfaction Index • Future-search Conferences Stakeholders • Open session • Development Training Low Low High Potential to Involve and Receive Feedback

3. Concepts Near & Far Left Hand Column What you think/feel far left near left What you say What I hear him proposing is…. The impact of that will be…. “Sure. No problem You’re crazy we can’t do that Unintended consequences….. But I gotta be positive here….. TakeAction Contexts Assumptions Values Draw Conclusions Interpret Data Select Data Available Data Benefits of Action Learning include: • 1. Action Learning • Learner takes responsibility for the learning process • Learner has more control of personal development • Learning is enhanced by applying knowledge to real problems • More successful solutions • Rewarding working environment • Action Learning is learning by doing • Action Learning satisfies both individual and team learning needs by providing effective ways of identifying and addressing these needs in the workplace just at the time they are needed most. • Action Learning provides a structure that maximises on-the-job learning • Action Learning cycle - plan, do, reflect, share “By wrestling with live problems, and subsequently reflecting upon the results of his achievements, the learner acquires knowledge” Reg Revans • Context: everything outside of us that affects how we approach situations. • Action model: the stock of knowledge we use to understand and act in the world. This knowledge is both explicit and implicit • Framing: our spontaneous, intuitive understanding of a particular situation, which leads us to experience the situation in a particular way. • Acting: the actions we take in a particular situation as we understand it. • Reacting: improving a poor result by doing different things from the same frame of reference. This leaves the way we framed the situation intact and those aspects of our models and contexts that framed the situation. • Reframing: altering our spontaneous, intuitive understanding of a situation. To see the situation, our task, and ourselves in relation to others differently. Reframing can fundamentally change how we act in a particular situation. • Redesigning: Transforming those aspects of our action model or our context that leads us to frame situations in ways that systematically produce undesired results. Sustained fundamental change across situations requires redesign. • To get on the pathways to learning - reflect publicly on how we produce undesired results. What did we do or say and what were we thinking and feeling? • 2.Action Design The context we are in Action Design is understanding how we draw the conclusions we do from the data around us and how we apply this when communicating with others. There are several key concepts to help us understand Action Design: How we frame the situation How we act The results we get Our action model React • The Left Hand Column • Advocacy and Enquiry • The Ladder of Inference Reframe Redesign How do we determine the things we pay attention to? • 3. The Left Hand Column The Left Hand Column is the actual thought processes taking place during a conversation. During difficult conversations, especially where individuals have conflicting views, these thoughts often contrast directly with what is said. This is equivalent to two conversations taking place - one in your head, and one with the person you are talking to: • 5.The Ladder of Inference The Ladder of Inference is the thought process we run through to draw conclusions and act on the data we assimilate from the environment around us. At the bottom of the ladder is the observable data that all can see, but as soon as we select from this data we apply our own context, assumptions and values to it. Each individual has a unique set of life experiences to apply to that data as they step up the ladder (“leaps of abstraction”) and so could potentially draw completely different conclusions compared to another person. • 4. Advocacy vs Enquiry For example: I am standing before the executive team, making a presentation. They all seem engaged and alert, except for Larry, at the end of the table, who seems bored out of his mind. He turns his dark, morose eyes away from me and puts his hand to his mouth. He doesn’t ask questions until I’m almost done, when he breaks in “I think we should ask for a full report”. In this culture, that typically means, “let’s move on”. Everyone starts to shuffle their papers and put their notes away. Larry obviously thinks that I’m incompetent - which is a shame, because these ideas are exactly what his department needs. Now that I think of it, he’s never liked my ideas. Clearly, Larry is a power-hungry jerk. By the time I’ve returned to my seat, I’ve made a decision: I’m not going to include anything in my report that Larry can use. He wouldn’t read it, or, worse still, he’d just use it against me. It’s too bad I have an enemy who’s so prominent in the company. • In those few seconds before I take my seat, I have climbed up the ladder of inference: When communicating there must be a balance between advocating your own view and enquiring on the views and opinions of others. During effective communication, this balance shifts according to the conversation taking place: Explaining Imposing Mutuallearning HIGH Advocacy Observing Withdrawing Interviewing Interrogating LOW • I started with the observable data: Larry’s comment, which is so self-evident that it would show up on a videotape recorder ... • ...I selected some details about Larry’s behaviour: his glance away from me and apparent yawn. (I didn’t notice him listening intently one moment before) ... • ...I added some meanings of my own, based on the culture around me (that Larry wanted me to finish up) ... • ...I moved rapidly up to assumptions about Larry’s current state (he’s bored) ... • ...and I concluded that Larry, in general, thinks I’m incompetent. • In fact, I now believe that Larry (and probably everyone whom I associate with Larry) is dangerously opposed to me ... • ...Thus, as I reach the top of the ladder, I’m plotting against him. • It all seems so reasonable, and it happens so quickly, that I’m not even aware I’ve done it. Moreover, all the rungs of the ladder take place in my head. The only parts visible to anyone else are the directly observable data at the bottom, and my own decision to take action at the top. The rest of the trip, the ladder where I spend most of my time, is unseen, unquestioned, not considered fit for discussion, and enormously abstract. LOW HIGH Enquiry Not all enquiry is useful. Below are example of enquiry that promote learning, and enquiry that limit learning. In addition, there are different kinds of productive enquiry that serve different functions: enquiry that broadens the learning on an issue by sampling a range of views, enquiry that deepens the learning by probing people’s thinking, and enquiry that is useful when people are at an impasse Enquiry that limits learning Enquiry that promotes learning • Don’t you agree? • Did you do that because of X or Y? • Why don’t you just try it? • Why are you so defensive? • Do you have a different view? • What led you to do that? • What about is raises doubts? • Is there anything that I am doing that contributes to the problem? • You can’t live your life without added meaning or drawing conclusions. It would be an inefficient, tedious way to live. But you can improve your communications through reflection, and by using the ladder of inference in three ways: • Becoming more aware of your own thinking and reasoning (reflection); • Making your thinking and reasoning more visible to others (advocacy); • Enquiring into others’ thinking and reasoning (enquiry);