CALM: Enabling Organizational Change “ Test-Drive Your Organizational Change Strategies ”

CALM:Enabling Organizational Change“Test-Drive Your Organizational Change Strategies” Dr. David Koehn Dr. Richard Adler DJKoehn Consulting Services, Inc. DecisionPath, Inc. koehndj@me.com rich@decpath.com 571-309-7993 617-794-9036 http://djkoehn.com www.decpath.com

Agenda • Organizational Change • What is it? • Why is it so hard? • A better way to enable effective change in your organization • Change Adaptation Learning Model (CALM) • Key features • Pragmatic • Measurement-based • Dynamic: provides flexibility to respond to continual change • Fast (but intense)

Organizational Change • Organizations compelled to change by their environments • New laws, increased workloads, new technologies... • Common responses • Modify structures, processes, IT systems, offerings… • But…. • Change alters status quo & moves people out of their comfort zone • Creates fear, uncertainty, resistance

Change “Management” (CM) • Anticipate disruptions that impair focus & performance • Try to avoid or mitigate loss of momentum & productivity • Prepare and guide organization and employees • Great idea, except… • 70+% of change management initiatives fail • Costing tens of billions of dollars annually in US alone* • Consulting fees, write-offs, severance costs, IT purchases,… *Sources: Surfing the Edge of Chaos, R. Pascale, M Millemann, L Gioja; Creating Contagious Commitment, A Shapiro.

Why Traditional CM Fails? • Typical CM approaches are largely tactical • Communicating • Training – new systems or processes • Activities amenable to project management methods • Necessary, but not sufficient • Social and personal behaviors aren’t mechanical like IT • Traditional CM does not impact culture, norms, beliefs, and habits • These factors can’t be scheduled or controlled • Do not generate the trust, confidence, and energy required to achieve and sustain change • Change is continual, not a single event

What is CALM? • Methodology and supporting software to enable change • Change Adaptation Learning Model • Treats change as a strategic (core) competency • Pragmatic & measurement-based • Readiness to change, in three “dimensions” • Socio-cultural / workforce psychology / business “infrastructure “ • Measure current levels and envision goal/target state • Dynamic planning • Identify change activities & business case for doing them • Schedule, cost, estimated impact on readiness metrics • Anticipate impacts of situational forces, trends, events • Simulate plan to test and validate or refine prior to roll-out

CALM defines three “dimensions” of readiness metrics • Assessed on a scale of 1 to 100 by org. change team • Consensus estimates, documenting points of view, justifications • Net value for dimension is computed from values of component metrics Measuring Readiness to Change Org. Mindset Personal Mindset Cultural Coherence Org. Alignment Leadership Change Capacity Teaming Mental Schema Dev., Work Preferences, Learning Capability, Competency Dev. Functional Personal & Social BPR & CPI, Technology Upgradeability, Operational Agility, Organizational Adaptiveness Infrastructure

Organizational Unit External Forces Change Dimensions Org. Mindset Personal Mindset Great Outstanding Good Events Change Path Baseline Internal Forces Infrastructure Transformation Plan Change Initiatives CALM Models Change Dynamics

Demo Case Study • Government organization • Department of Defense • 10000+ employees, union shop • Change challenge • Replacing traditional seniority-based compensation system with pay for performance scheme • Initial focus • Tactical programs to train employees to complete annual objectives and managers to conduct annual reviews • Failed to address critical socio-cultural and psychological issues driving acceptance by workforce

Demo

CALM – When to Use It • Before change • Ideally, use CALM as a planning tool up-front • During execution • Routine monitoring • Periodically update Scenarios & re-project change strategy • Early Warning of emerging problems, allowing prompt diagnosis and mid-course adjustment • Crisis • Capture strategy, environment, goals explicitly • Diagnose problems, devise & validate new/modified plan • Post-change • Continuous learning

CALM Benefits • Comprehensive • Strategic • Dynamic “lifecycle” support • Unique model/”what-if” simulation drives systems thinking • “Practice” change strategies & learn from low-cost virtual mistakes • Monitor execution, detect problems, make mid-course fixes • Fast and cost effective • Develop and validate change strategies in weeks, not months • Small consulting team leads facilitated workshops, analysis • Reduce risk, improve confidence & consistency

CALM: Enabling Organizational Change “ Test-Drive Your Organizational Change Strategies ”