Using Organization Development Techniques for Effective Change Management Nicole Caley Director of Accounts Payable Ace Hardware Corporation
Using Organization Development Techniques for Effective Change
Management
Nicole Caley
Director of Accounts Payable
Ace Hardware Corporation
Introduction • Director of Accounts
Payable – Ace Hardware Corp – Three effective OD
Interventions in < 2 years
• MBA – Organization Development
• Consultant for OD Interventions
• Beginning PhD in OD Spring 2017 – Gender Gap in Leadership – OD Interventions for
Executives / C-Suite
Agenda • Organization Development versus Operational
Change
• Importance of OD in an Organizational Change
• Change Models / Planning for Change
• Managing Change / Understanding Personality Types
• Stress of Change
• Recognizing Emotions and Curtailing Fear
• Stabilizing Change
Beckhard, “Organization development: Strategies and Models”, Reading, MA: Addison-Wesley, 1969
What is Organization Development?
• “Organization Development is an effort (1) planned, (2) organization-wide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organization's ‘processes,’ using behavioral-science knowledge”
Beckhard, “Organization development: Strategies and Models”, Reading, MA: Addison-Wesley, 1969
What is Change Management?
• “Change management is the systematic approach and application of knowledge, tools and resources to leverage the benefits of change…” moving a given function toward greater efficiency so as to positively impact performance.
Metre, C. Deriving Value from Change Management. University of Pennsylvania: 2009.
Embrace a New Paradigm
Organizations are complex social systems!
• Multiple reasons for (continued) existence
• Driven by people
• Impacted by stress and uncertainty
• Existing in chaotic, ever-changing environment
Organizational Change & Success
A survey of more than 6,800 Executives on transformational change found that about 75% of companies are undergoing change.
The success rate of change initiatives where a holistic, OD approach was absent is just 10%.
McKinsey Quarterly Transformation Executive Survey, 2008, Next Generation PMO KIP Team.
Organizational Change & Success
Correlation analysis shows that change management efforts using a structured approach are more effective and more likely to achieve project objectives.
Why is OD so Important to an Effective Change?
• Sustainable learning
– Organizations as learning communities will constantly evolve
• Engagement engenders trust, shared values
– Foster stronger interpersonal relationships
• Boosts morale and reduces employee turnover
Top Change Models • Kurt Lewin’s Unfreeze-Change-Refreeze Model
• ADKAR Model
• Stephen Covey: 7 Habits Model
• Kubler-Ross: Stages of Change
• Kotter's 8-Step Model of Change
By Mark Connelly, Copyright 2008-2016 Change-Management-Coach.com
John Kotter’s 8-Step Change Model
Kotter, J. P. Leading Change. Boston: Harvard Business School Press, 1996
Planning for Change
There are a ton of “right” ways to implement an effective OD intervention to promote effective change management.
There is ONE wrong way!
Planning for Change
• Generate need (urgency)
• Determine OD Intervention Options
• Visualize future state & plan (mission, vision)
• Address human dynamics (social, political, emotional, etc.)
– Inclusion through collaboration, participation
OD Interventions
The field of Organization Development uses a variety of processes, approaches, methods, techniques, applications, etc., (these are often termed "interventions") to address organizational issues and goals in order to increase performance.
There are no standard activities that always successfully address certain types of issues in organizations.
© Copyright: Carter McNamara, MBA, PhD, Authenticity Consulting, LLC.
OD Interventions
• Human Process Interventions (Group and Individual Human Relations)
• Technostructural Interventions (Structures, Technologies, Positions, etc.)
• Human Resource Management Interventions (Individual and Group Performance Management)
• Strategic Interventions (Organization and Its External Environment)
© Copyright: Carter McNamara, MBA, PhD, Authenticity Consulting, LLC.
Factors Influencing Success
In terms of both the organization and the people, what is the …
• Readiness for Change?
• Capacity for Change?
• Capability for Change?
• Cultural Context for Change?
Managing Change
• Organize change champions (advocates and drivers)
• Get organizational stakeholders engaged, committed
• Obtain 360 feedback
• Acknowledge progress and drift
Managing Change: Understanding Personality Types
How each personality type copes with change? • Some people love change • Some people tolerate change • Some people deny, ignore, or dislike change and
may even try to stop it
By understanding the population, you can anticipate barriers and therefore the hurdles to overcome during the change initiative.
Used with permission from Joanne Flynn – Phoenix Strategic Performance
Managing Change: Stress of Change
Organizational changes – even if they have a positive impact on the organization or its employees – are inherently stressful.
Managing Change: Recognizing Emotions & Curtailing Fear
Understanding emotional impact of change.
• Listening
• Addressing facts and perception up front, honestly.
• Admitting what’s working and what isn’t.
• Working together.
Five Strategies for Managing the Fear of Change
• Sell the desirable future
• Realign your reward and recognition systems to the required change.
• Communicate, communicate, and then communicate again.
• Ensure that your team has the skills necessary for the change
• Model the change behaviors that you want to see from your team
Used with permission from Robert Tanner
Stabilizing Change
• Use reward systems
• Deploy guardians of the new way
– Drift guards who will keep the organization and its leadership “honest”
• Incorporate changes into the corporate culture
Rewarding Successful Change Management
• Motivate performance, reward change, and encourage the development of individual and organizational capabilities and competencies.
• Create systems that reward both performance and change.
– Most organizations reward stability more than change, seniority more than performance, and job size more than skill development.
by: Christopher G. Worley, Edward Lawler III, Edward Lawler III Issues: March / April 2006. Ivey Business Journal
How Do You Achieve Lasting Change?
Sustainable change requires:
• Thoughtful planning
• Sensitive implementation
• Involvement of the people affected by change
Organization Development & Change Management
A synergistic working relationship is a powerful phenomenon to witness in action—people working together to consume the fewest resources possible to get the job done, while achieving a higher quantity and quality output than if they worked independently.
Used with permission from Daryl Conner
Final Thoughts
Questions?
Nicole Caley
Director of Accounts Payable
(630) 990-8736