Change: daily challenge & need for new leadership
-> Innovation and change as imperatives are nothing new…
-> TODAY is NEW:
- Pace: time available before the full impact of innovation is shorter and shorter
- Pervasiveness: innovation is not something episodic or sporadic but rather everyday and everybody business
- Openess: sources of innovation are more and more outside the company boundaries with actors that in many cases are non-contractible by the company (Carliss Baldwin)
Internal & External Challenges:
Organizations Deal with Change Very Differently:
Survivor Characteristics: Nokia case
- Began as a forestry business in the 19th century
- ‘acquired’ a product range running from pulp and paper right through to Wellington boots
- Late 20th century: focus on electronics letting the other competencies go
- By the year 2000 it was entirely a mobile telecommunications business
-> Active management of core competence: survivors know when they have to build (e.g. strategic investments in R&D) or acquire the knowledge they need to add, but also when they have to let it go (unlearning)
KEY ISSUE: perceiving, understanding, aticipating & romptly managing change => management is the problem
- Manager that never put theirself in discussion.
How Survive:
- Increasing managers awareness and strategic vision about change
- Improve their ability in involving human resources and drive the change process
=> Change the management is the key issue. Could be difficult:
Individuals Facing Change: Managers
CHANGE MANAGEMENT: Integrated management of change processes through and integrated development of people, culture, processes and management systems and technologies, with the final aim of “making things happen”, bcse innovation is:
1% Inspiratoin…
…99% people
- It’s about culture (the way things are done)
Change Management Theories:
Business Process Reengineering, BPR:
-> DEF: radical redesign of business processes aimed at drammatic improvements in performances.
- Top-down process
- Classic theories of mechanic school
Continuous Improvement:
-> DEF: Company-wide process of continuous and incremental change, focused and oriented by management, but based on efforts, ideas and motivation of people at the operational level.
- More humanistic school
- Companies = social systems
- Change = organizational changing process
Japanese view:
-> Kaizen is:
- Process-oriented: results can only be improved if processes are improved
- People-oriented: based on the belief that people’s natural desire for quality and value, and that it will pay for itself in the long run.
- Standard-oriented: standards are required in order for improvement to occur.
(imai, 1986)
European View:
“…the planned, organized and systematic process of ongoing, incremental and company-wide change of existing practices aimed at improving company performance.”
(Boer, Gertsen et al, 2000)
-> KEY WORDS:
- process-oriented;
- individual/team/management involvement,
- learning, customer & quality orientation, goals, measurement
Building a CI Culture:
| Strategic framework | Fostering high involvement in experimentation and learning |
| Policy deployment Critical success factors | Mistakes as part of experimentations Risk taking as a value |
| Building a facilitating organisational structure | Innovation management tools and techniques |
| Lean and flat organisation Empowerment Rewarding systems | Problem setting Problem solving Project management |
Management of the innovation process: Defining objectives, goals, milestones
Contingent Model:
-> Each area require different leadership styles:
- H/H: someone that lead
- H/L: someone that protect the objectives
- L/H: someone that give sense of direction, enthusiasm
How Individuals Face Change:
-> Everyone would say that smth will go wrong
- COGNITIVE: necessary that people understand and embrace the reasons for change (e.g. survive in the market, remain competitive, do not lose orders…). The fact of understanding and also sharing rationally the reasons, however, does not mean still change!
- EMOTIONAL: dissatisfaction with the status quo must be greater than the emotional investment necessary to question it. Dissatisfaction can be determined by fear, risk, opportunity.
- STRATEGIC: ability to identify and pursue a point of arrival, and to plan the activities, the actions, the ways that can lead to this goal.
- DIMENSION: goal must be motivating, something worth spending on. It must be a far better end than the status quo.
- RELATIONAL: e organizational and social context. The change does not take place in an individual and autonomous way but within the framework of their organizational relationships: the group, the colleagues, their boss, their customers can hinder or facilitate the change. Their roles change, as the importance of relationships changes; the search for a new balance, however necessary, must not break the existing balances in a traumatic way.
- EXPERIENTAL: need to find concrete feedback of your actions in the experience, to have positive feedback on what you are doing, to understand that things are going in the expected direction. As far as the point of arrival may be known, reaching it usually takes several months (some years for the most noticeable organizational changes), it is difficult to maintain energy and course unless you have positive feedback and feedback from experience.
- OPERATIONAL: being able to translate the goal and the path into the actions and efforts of the day-by-day; being able to “stand on the piece” with rigor and systematic.
Processes & Techniques to Manage Change:
Eight Steps to Be Followed According to Kotter:
Create a Sense of Urgency:
-> Unfreeze the organisation by creating a competing reason for why change is needed
- Identifying and analysing the overall change system, and its impact impacts
- Creating anxiety and dissatisfaction for status quo
- Referring to ideal situations
- Disavow the current operating model
- Identifying the several inertias to change
Pull Together the Guiding team:
-> Create a cross-functional, cross-level group of people with enough power to lead change
Develop a Change Vision Strategy
-> Create a vision and strategic plan to guide the
change process
-> By usine the SYNERGY MATRIX
Communicate for Buy In
-> DEF: Create and implement a communication
strategy that consistently communicates the
new vision and strategic plan
- Short, concise and timely (no room for anxiety)
- Provides strategic rationale and sense of direction
- Defines who is involved and how
- Define expected results and benefits for actors
- Explicates what won’t change
Empower Other to Acts:
-> DEF: Eliminate barriers to change, and use target elements of change to transform the organisation (encourage risk taking)
-> Eliminate barriers to change, and use target elements of change to transform the organisation (encourage risk taking)
-> Plan and create short-term “wins” or improvements recognising and rewarding people who contribute to these wins
Consolidate Gains:
-> DEF: Additional people are brought into the change process as chance cascades throughout the organisation
-> Reinforce the changes by highlighting connections between new behaviours, process and organisational success
Create a New Culture
-> Additional people are brought into the change process as chance cascades throughout the organisation
-> Reinforce the changes by highlighting connections between new behaviours, process and organisational success
Leading Change for Digital Transformation:
-> Capacity to change of an organization is not linear, but logaritmic.
- People inside it have to learn day after day.
-> Project Fail bcse:
- 44%: Low People Engagement
- 41%: Culture not open to change
- 35%: Low Top Management Sponsorship
- 30%: Low Change Capabilities of Internal Change Agent.
-> Companies with Higherst Success Rates are different in…
- Involve people in change (59% vs 32%)
- Create urgency, but not without causing fear and anxiety (52% vs 35%)
- Invest in an agile organization (40% vs 25%)
Key Challenge for Managers:
