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THE HIDDEN FACTORY

in change management

BPMInstitute.org Brainstorm New-York, November 4th 2009

Tiran Dagan, Director, Strategic Initiatives & Analysis


GE/NBC Universal

Tiran.Dagan@nbc.com
www.TiranDagan.com
Strategic Initiatives & Analysis

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Change Management

NOT SO EASY
What is change?

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What is change?

EXTERNAL ENVIRONMENT/CIRCUMSTANCES
INTERNAL
TIME-BOUND
ORGANIC/PLANNED
IMPOSED/CHOSEN

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BPM & Change Management

BUSINESS RULES
PROCESS AUTOMATION
MODELING & SIMULATION

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Change is difficult

SUCCESS RATE <40%*


EMPLOYEE ATTITUDES & MANAGEMENT BEHAVIOR
SUCCESSFUL CHANGE: TACTICS
• Leadership
• Transformation structure
• Sustainable momentum
• Wide-spread involvement & support

*“Organizing for successful change management: A McKinsey Global Survey,” July 2006
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From Denial to Commitment

FOCUS ON ENVIRONMENT
DENIAL COMMITMENT

v ity
Producti

RESISTANCE EXPLORATION

FOCUS ON SELF

PAST FUTURE

9 Source: “The Transition Grid”, Flora/Elkin Assoc & HeartWorld,


Inc.
Resistance to Change: The Weavers

“They said Ned Ludd was an idiot boy

That all he could do was wreck and destroy, and

He turned to his workmates and said: Death to Machines

They tread on our future and they stamp on our dreams.”

“Ned Ludd”, from the album Freq


Robert Newton Calvert, 1985

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Tools & Methods

TIPS & STRUCTURE


Change Management as a Process
1. LEAD THE CHANGE 4. MOBILIZE COMITTMENT
• SPONSORSHIP • STAKEHOLDERS AFFECTED & THEIR LIKELY
• CHANGE AGENT RESPONSE
• WHO WILL IMPLEMENT? • ANTICIPATED RESISTENCE
• IMPACT ON PARTICIPANTS • SUPPORT NEEDED FOR FUTURE STATE TO
• OTHER LEADERSHIP SUPPORT MATERIALIZE
• COMMITMENT: SAY & DO • STRATEGIES TO MOBILIZE SUPPORTERS & WIN
RESISTERS
2. FRAME THE SHARED NEED
5. IDENTIFY SYSTEMS & LEVERS FOR ALIGNMENT
• IDENTIFY KEY STAKEHOLDERS
• SYSTEMS, STRUCTURES & PROCESSES BLOCKING
• BURNING PLATFORM SUCCESS
• NEED FOR CHANGE > RESISTANCE? • LEVERS WE NEED TO LEVERAGE
• SUPPORTED IN DATA • WHERE (WHICH LEVERS) DO WE HAVE
3. SHAPE THE VISION INFLUENCE OVER
• VISION FOR FUTURE STATE/DESIRED • INFLUENCE CHANGE TO ALIGN WITH CHANGE
OUTCOME • COMMUNICATIONS
• DETERMINE BENEFITS TO ORGANIZATION, 6. TRACK PROGRESS
STAKEHOLDERS, INDIVIDUALS
• HOW WILL YOU KNOW YOU SUCCEEDED
• ID STAKEHOLDER CONCERNS/FEARS (METRICS)
• DESIRED BEHAVIOR CHANGES NEEDED • WHO WILL BE INFORMED OF SUCCESS?
• COMPARE SCORECARD TO BASELINE
• WILL MEASUREMENT ACTIVITY AFFECT
OUTCOME?
• OTHER BENEFITS AS “BY-PRODUCTS”?
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Threat/Opportunity Matrix:

Threat Opportunity
(if we don’t make this change) (if we do make this change)

Short
Term

Long
Term

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Threat/Opportunity Matrix: Improve Call Center Ops

Threat Opportunity
(if we don’t make this change) (if we do make this change)

Short • Negative impact on bottom line


• Cross sell opportunities
• Rapid customer abandonment
Term • Energize workforce

Long • Lose competitive edge • Visibility to customer purchasing habit


• Long term damage to reputation • Early detection of product defects
Term

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Explanation

Strong Support
Moderate Support
Continuum of Support

Neutral
Stakeholder Analysis:

Moderately Against
Strongly Against

Name

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Stakeholder Analysis: SAP Rollout

Continuum of Support

Moderately Against

Moderate Support
Strongly Against

Strong Support
Neutral
Name Explanation

“Excitable neutralist”

“Dangerous Antagonist”

“Important Supporter”

“Good to go friend”

“Later bloomer”

Warning: Keep this tool internal to your change management team

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Communicating Change: Strategy

TIMELY
REPEAT
EXPECTATIONS
LISTEN, REACT & ADJUST
FEEDBACK
CHANNELS
ALIGNMENT

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Communicating Change: Key Message Elements

• EXPLAIN THE REASON AND BENEFITS OF THE CHANGE


• DEMONSTRATE LEADERSHIP SUPPORT (CHAMPIONSHIP)
• ASK FOR RECIPIENT’S HELP IN MAKING THE CHANGE
MORE EFFECTIVE
• EXPLAIN HOW MESSAGE WILL AFFECT THE RECIPIENT
AND THEIR DEPARTMENT IN THE SHORT/LONG TERM
• EXPLAIN HOW THE CHANGE WILL BENEFIT THE RECIPIENT
• BE REALISTIC BOTH ON THE UPSIDE AND DOWNSIDE OF
CHANGE
• DEMONSTRATE EMPATHY (EMOTIONS ASSOCIATED WITH
THE CHANGE)
• PROVIDE UPDATE ON PROGRESS
Source: Corporate Leadership Council research.
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Change with Lean (Toyota Production System)

GIVING OWNERSHIP
Walking the Process

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Establish A Shared Vision

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Process Mapping

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Metrics, VA & Pain Points

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Participants Report To Management

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Deliverables
Workout Website – Daily Updates

Round-Robin Prioritization of Solutions


Action Plans + Monitoring

Jan Feb Mar Apr

USA, Sci-Fi, Oxygen (TBC)


~
AE Training for Deal Header requirements
p

Communication of Client Upgrades M


Status: Team still working on this project

Sales Asst. Training


~
S

Convert “Hold” deals to “Order” M


Status: Effort to implement outweighed benefits

Convert time standard in Gabriel M


Status: System Limitation s

Stewardship cycle time ~

Streamlined process for oversell M


Status: Effort to implement outweighed benefits

Jan 1 Apr 15

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Informal Communication Networks

THE ORG WITHIN


Informal Network

Person

utual Trust Person


M
Person

/ C on nect i on
Bond

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ONA Tools

TOOLS
• Org.Net InFlow (Commercial)
• NetDraw (Free)
• UCINET (Commercial)
• Pajek (free)
• NetMiner
• Sentinel
…and:
• Facebook
• LinkedIn

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Case Study: Western Electric

WESTERN ELECTRIC:
• HAWTHORE PLANT,
BANK WIRING
• WORKER INTERACTIONS

29 Reference: Roethlisberger F. and Dickson W. (1939). Management and the worker. Cambridge: Cambridge University Press.
Western Electric: Hawthorne Plant Bank Wiring

I3 W6
S2

Wiring Assembler
Solderer

Inspector
S1

W9

W8 W7 W2
W4
W5

W3

W1
S4

I1
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Western Electric: Hawthorne Plant Bank Wiring

I3 W6 Friendship
S2
Dislike

Wiring Assembler
Solderer

Inspector
S1

W9

W8 W7 W2
W4
W5

W3

W1
S4

I1
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Western Electric: Hawthorne Plant Bank Wiring
Work Product
I3 W6 Friendship
S2
Dislike

Wiring Assembler
Solderer

Inspector
S1

W9

W8 W7 W2
W4
W5

W3

W1
S4

I1
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I.N. CHARACTERISTICS

CLOSED
INDIVIDUALS
TACIT KNOWLEDGE
INFLUENCERS
NO CENTRALIZED CONTROL

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Informal Network Structures Workgroup

Central
Individual Joseph Erin

Anne
Susan

Eddie Stan
Ruth
David

Isolated
Individual

Dan
Mary
Jim
“Broker”/”Hub”
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Informal Networks

IDENTIFYING & TRACKING


Audit Methods

1. SURVEYS

Question Purpose
Who do you seek advice from before Experts
making an important decision?
With whom are you most likely to discuss Innovation Groups
a new idea?
Indicate individuals whose expertise you Wasted opportunities
are aware of but see no opportunity to
collaborate

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I.N. Audit Methods

1. SURVEYS
2. DATA MINING EMAIL

“contribution index”*:

[messages sent] – [messages received]


[messages sent] + [messages received] >1

1-” Visualizing Time in Social Networks with TeCFlow”,Peter A Email flow in a large project team,
Gloor, Center for Coordination Science, MIT, Cambridge MA © Valdis Krebs, www.orgnet.com, reproduced with permission
2- Contribution Index (Gloor et al, 2003, Gloor 2004)
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I.N. Audit Methods

1. SURVEYS
2. DATA MINING EMAIL
‰ 502 Messages
‰ 615 Actors
‰ 800 Days
‰ Innovation Tagging
(new product name)

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I.N. Audit Methods

1. SURVEYS
2. DATA MINING EMAIL
‰ 502 Messages
‰ 615 Actors
‰ 800 Days
‰ Innovation Tagging
(new product name)

Visualizing Time in Social Networks with TeCFlow”,


Peter A Gloor, Center for Coordination Science, MIT, Cambridge MA
http://www.ickn.org/JoSS_subm/TeCFlow4JoSS.htm

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I.N. Audit Methods

1. SURVEYS
2. DATA MINING EMAIL
3. OBSERVATION (HAWTHORNE EFFECT?)

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Leveraging IN: Quantify Interaction Benefits

• How many of the ideas you discuss with X become


products?
• How much time did working with X save you?
• How many sales deals over $x did you work on with X?

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Leveraging IN: Formalize the Informal Network5

SVP SVP
XX Leader

VP Sales VP Marketing VP Operations VP Sales VP Marketing VP Operations

Emp1 Emp3 Emp7 Emp1 Emp3 Emp7

Emp2 Emp4 Emp9 Emp8 Emp2 Emp4 Emp9 Emp8

Emp5 Emp10 Emp5 Emp10


Local managers

Emp6 Emp6

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Leveraging IN: Knowledge Management

• CAPTURE INNOVATION FROM I.N.


• SPONTANEOUS & FOCUSED SESSIONS
• OUTCOMES (SELECTED/REJECTED)
• NO REPEAT
• MONETIZE
• TRACK PROGRESS (IDEATION -> DEVELOPMENT)

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"As our business grows, it becomes increasingly necessary to
delegate responsibility and to encourage men and women to exercise their
initiative. This requires considerable tolerance. Those men and women, to whom
we delegate authority and responsibility, if they are good people, are going to
want to do their jobs in their own way. Mistakes will be made. But if a person
is essentially right, the mistakes he or she makes are not as serious in the
long run as the mistakes management will make if it undertakes to tell those in
authority exactly how they must do their jobs. Management that is destructively
critical when mistakes are made kills initiative. And it's essential that we
have many people with initiative if we are to continue to grow."

William McKnight, 3M, Chairman, 1948

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Appendix
Models in Change Management: The Big Four

8 stage process for successful


Ten commandments for
Six steps for change organizational 7 steps for change
change
Michael Beer (1990) transformation Lueck (2003)
Kanter et al (1992)
Kotter (1996)
Mobilize commitment Analyze org & need for change Establish sense of urgency Mobilize commitment
Develop a shared vision Create a vision Create guiding coalition Develop shared vision
Foster consensus Separate from the past Develop a vision & strategy Identify leadership
Spread revitalization to all Create a sense of urgency Empower broad-based action Focus on results, not activities
departments without pushing it
from the top.
Institutionalize revitalization Support a strong leader role Communicate the change vision Start change at the periphery and
through formal policies, systems let it spread
and structures.
Monitor and adjust strategies Line up political sponsorship Generate short-term wins Institutionalize success

Craft an implementation plan Consolidate gains and produce Monitor and adjust strategies
more change
Develop enabling structures Anchor new approaches in the
culture
Communicate, involve people & be
honest
Reinforce & institutionalize change

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50 Ways to Say “Very Good”
Encourage your team, affected employees and stakeholders with compliments. I
have found this table useful in the day to day:

1. Good work 26. Good solution


2. Well done 27. That’s better than ever
3. You did a lot of work today 28. You’ve figured it all out
4. It’s a pleasure to work with you 29. You’ve got it
5. Great job 30. Very resourceful
6. That’s right 31. Good progress
7. Nice going 32. I like that
8. That’s coming along really well 33. I couldn’t do it better myself
9. That’s great 34. Now that is what I call a great job
10. Let’s implement 35. You did that very well
11. Excellent 36. Outstanding
12. Good job 37. Keep up the great work
13. Exactly right 38. That’s wonderful
14. You’re on target 39. You mastered that in no time
15. Good thinking 40. Congratulations
16. Wonderful 41. You make our work fun
17. That’s good 42. I’m glad I assigned you to this
18. You’ve worked hard on this 43. You showed great leadership
19. That’s it 44. I knew I could count on you
20. Let’s share this with others 45. You made a difference
21. Good for you 46. You have my complete support
22. You’re learning fast 47. Clever idea
23. You did well today 48. I’m glad you are on our team
24. Keep up the good work 49. Thank you
25. I’m glad your approach is working 50. Very Good

Derived from the work of Roger L. Firestein


48 Center for Studies in Creativity (1992)
Additional Reading

• 1. Borgatti, S.P., Everett, M.G. and Freeman, L.C. 2002. Ucinet for
Windows: Software for Social Network Analysis. Harvard, MA: Analytic
Technologies.
• 2. Robert L Cross et al, McKinsey Quarterly, 2006 Number 3, “Mapping
the value of employee collaboration”
• 3. Vladis Krebs, IGRIM Journal, Volume XII, No. 5, 2008, “Social Capital:
the key to success for the 21st century organization”
• 4. Scott Keller & Carolyn Aiken, McKinsey, “The Inconvenient Truth
About Change Management: Why it isn’t working and what to do about
it”
• 5. Lowell L. Bryan et al., McKinsey Quarterly, 2007, No. 4, “Harnessing the
power of employee networks”
• 6. Fearless Change – Patterns for introducing new ideas, Mary Lynn
Manns, Ph.D. & Linda Rising, Ph.D., Pearson Education

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