Beyond Change Management: From Traditional Phase Models … · Beyond Change Management: From Traditional Phase Models to More Robust Models of Transformation Amidst Chaos Chris Worley
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Beyond Change Management: From Traditional Phase Models to More Robust Models of Transformation Amidst ChaosChris Worley and Sue MohrmanSenior Research ScientistsSenior Research ScientistsCenter for Effective Organizations
Director of Executive EducationCenter for Effective OrganizationsUniversity of Southern Californiaoffice: 213.740.9814direct: 310.849.7163email: [email protected]
Certificate in Human Capital and Effective Organizations
The HCEO certificate program is designed for executives and high‐potential professionals preparing for a strategic role in their organizations.
It offers an integrated curriculum that develops the following five key competencies necessary to form strategic partnerships and to lead in today's changing business environment.y g g
• Business Strategy Analysis• Organization Designg g• Change Implementation• Talent Management and Leadership Development• Measurement and Analysis of Organization and Human CapitalMeasurement and Analysis of Organization and Human Capital
Beyond Change Management:Beyond Change Management: From Traditional Phase Models to More Robust Models ofto More Robust Models of Transformation Amidst Chaos
Chris Worley and Sue MohrmanS i R h S i ti tSenior Research ScientistsCenter for Effective Organizations
• It happens in networks, not hierarchies• Multiple changes crash into each other• Multiple changes crash into each other• People only partially attend to change messages because they’re so busy runningmessages because they’re so busy running the business – they lose focus
• Everyone thinks they know best what the• Everyone thinks they know best what the business needs, and
Adaptability and Change “Routines”• Organizations make many incremental changes continuously
through time—in local units, with respect to particular work processes to hone a particular business model to capture anprocesses, to hone a particular business model, to capture an opportunity
• In today’s environment, many organizations continuously y , y g ymake more fundamental changes —e.g., restructure, enter new markets, introduce new channels and business models, create new virtual work arrangementscreate new virtual work arrangements
• Continuous transformation is being required as the global economy unfoldsy
• Change agility requires building this capability into the way an organization operates – into the routines of the
• Organizations may have to continuously introduce new capabilities in order to stay ahead of or keep up with competitorscompetitors
• New competitors are not locked into a rigid way of functioning, and can be fast and agile in moving into g, g gnew spaces and defining new and sometimes game‐changing capabilities
• Change “routines” sounds like an oxymoron – yet there are predictable dynamics and elements of f d t l h AND i ti ffundamental change, AND, many organizations face environments that demand recurring and often multiple simultaneous fundamental changes
W ki t hi t id l dWorking to achieve system‐wide leverage and synergy in a system that was historically fully d t li d h d t d t kdecentralized, has adopted a network approach to change in many areas: Moving to a cross discipline institute structure
Ecological sustainability initiatives
Patient experience initiatives
Electronic medical record development and implementation
Change Routines, Cleveland ClinicIt address its dynamic and uncertain environment with a routine that actively links the various (often decentralized) units to an unfolding strategic direction:
1 E fi lf id if idl d i d i l1. Encourage first movers to self‐identify to rapidly design and implement various new approaches.
2. Provide resources and consultation with the objective to rapidly learn from experience.
3. Create a network with a small team from all major units to convene and talk about what they’re doing, what they’re accomplishing, and what they are learning – for key change directions executive sponsorship is critical, but executive participation may not be necessary.
4. Challenge all units to develop approaches that will work for them and to come to the next network meeting ready to share what they’ve learned.
5. Have the network design a measurement system so different units can see how they “measure up” and their comparative progress through time.y p p p g g
6. Incorporate the measures into the dashboard.7. Continually seek out “first movers” to try and share new approaches to
Sustainable Health Care in a Dynamic Ecosystem Requires Ongoing AdaptationOngoing Adaptation
• When resources are plentiful, actors are attracted to the eco‐system and can co‐exist while not interfering witheco system and can co exist while not interfering with each others’ success waste and redundancy and proliferation of actors within the status quo
• When resources become limited, actors look for symbiotic alliances and partnerships, and to find ways to conserve and leverage resourcesand leverage resources
a reconfiguring of the eco‐system with new actors emerging and existing actors adapting or disappearingemerging and existing actors adapting or disappearing
The sustainable healthcare eco‐system will look quite different than it does today
• Multiple populations, or types, of agents—each pursuing their own goals (to adapt to a changing environment)
• Agents are at multiple levels of ge s a e a u p e e e s oaggregation‐‐individuals, teams, and organizational units all take measures continually to adapt tomeasures continually to adapt to the changing context
• Adaptation is from the perspective of the agent—with respect to its own criteria of success
Achieving sustainability in health care (or any system) may entail changing the success criteria y ) y g gof the actors—to include sustainable use of resources and new effectiveness outcomes.
To adapt to a changing eco‐system, change p g g y , gleaders may have to take measures to change the success criteria of the agents.change the success criteria of the agents.
The Limits to Top Down Change in a Complex SystemSystem Change can only partially be hierarchically driven. The challenge is to change interaction patterns of agents.g p g
Increases in sustainable effectiveness will require a combination of:
– imposed change mechanisms—such as by designing and introducing new organizational features (e.g., organizational structures and processes) or by policies that change the “rules” through which people interact with eachpolicies that change the rules through which people interact with each other.
– internal change mechanisms—continual adjustments that result from the processes and norms within the system that govern how agents interactprocesses and norms within the system that govern how agents interact, learn and adjust
–explicit self design processes – when an individual, team or unit takes action
to initiate new ways of organizing resources and dealing with other parts of the organization
High Leverage Interventions in Complex SystemsSystems
In many complex systems a small input (change) can produce major directed change by creating an amplifierproduce major directed change—by creating an amplifier effect
Operating on these high leverage points uses change resources (time, energy, capital, knowledge) efficiently because one intervention can lead to many changebecause one intervention can lead to many change impacts
D i i i hi h iDuring transition, concentrate on high impact interventions.
High Leverage Interventions in Complex Systems Include Those that:Systems Include Those that:
• Change the behavior of key agents (those who control interactions ofChange the behavior of key agents (those who control interactions of others and/or who are likely to be imitated)
• Intentionally build and or encourage new interaction patterns‐‐when t i t t i it l d t l i i ti dagents interact in new ways it leads to learning, innovation, and an
increase in self‐regulatory capacity
• Change the success criteria of agents‐‐what is reinforced or rewardedg g
• Create a new shared understanding to govern interactions and stimulate self‐regulation (mission, values, principles of operation, governance processes)governance processes)
• Create a line of sight to/focus on system level outcomes
Accelerating Transformations and Building Agile OrganizationsOrganizations
Beyond change management...
Corporate executives know that their company's competitive leadership and s stainable effecti eness depend on acceleratedleadership and sustainable effectiveness depend on accelerated change implementation and agility.
Traditional linear change models no longer work in an era of relentless change. Accelerated change implementation must become a core organizational capability. It must be enabledchange implementation must become a core organizational capability. It must be enabled by the way we organize and the way we lead.
This seminar provides new frameworks and approaches to:l t i ti t iti• accelerate organization transitions
• deal with the demands for ongoing transformation• implement agile organizations• build robust change capabilities