Disability Federation of Ireland
Managing Change
23rd May, 2012
Eddie Molloy, Ph.D.
Facilitator
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Where are we now?
?
Experience across all sectors
2012?
Perfect
Storm
?
2000
2007/08
2015
2020
• Global banking crisis, credit crunch
• Ireland’s 5-Part Crisis
• New Government, very active
• Euro crisis
• Slow/no growth
Need to stop, reflect, adjust, re-focus – and act decisively
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Scale and Urgency
Incremental/Continuous
Strategic/Radical/
Discontinuous
Anticipatory
Tuning
Re-orientation
Re-directing
Reactive
Adaptation
Re-creation
Overhauling
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Urgency: Where are you in the game?
It is half-time – what is the score?
-2
-1
0
0
+1
+2
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What changes when the change is
discontinuous/radical?
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Wind down in orderly way
• Portfolio rationalisation
Rationalisation of portfolio
• Strengthen management
Mergers, acquisitions
• Radical ops. implementation
New business model, e.g. fee for service. • Capex rigour
• Financial engineering
On-line vs. face-to-face service delivery
20 – 30% reduction in costs
New internal structures
Significant innovation
Cultural change
New blood at Senior levels (especially in Public Service)
New Name/brand
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Putting Strategy in its Place
Strategic Analysis
• Industry Analysis
• Customer/marketplace
trends.
• Environmental forecast
• Competitor analysis
• Assessment of Internal
strengths, weaknesses,
resources.
• Political, economic, policy
envt.
Mindset
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•
•
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Time Frame
Structure
Locus of control
Who is invovled
Mission
• Inspirational
purpose
•Values
Objectives
• Vision
• Specific Targets
Supporting Organisational
Arrangements
Strategy
The central
integrated,
externally
oriented
concept of how
we will achieve
our objectives
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•
•
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Structure
Processes
Symbols
Rewards
People
Functional policies
and profiles
• Culture
• Competencies
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The Five Major Elements of Strategy
ARENAS
Where will we be active?
(and with how much emphasis?)
• Which services?
• Which client segments?
• Which ‘value-creation’ stages?
ECONOMIC LOGIC
STAGING
What will be our speed and
sequence of moves?
• Speed of evolution?
How will we be funded?
• Fees for service.
• Lower costs through scale
advantages?
• Public, private, philanthropic?
• Sequence of initiatives?
VEHICLES
How will we get there?
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Integral development?
Joint ventures?
Licensing/franchising?
Acquisitions?
How will we be different?
Why us?
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Image?
Customisation?
Price?
Culture?
Trust?
A new paradigm may require change in all the above (Ref. Disability Policy)
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Large-scale Institutional Change:
Technical and Cultural Challenges
Organisation as an Iceberg
Visible
Invisible
 Policies
 Structures
 Core processes
 Funding
 Facilities
 Measurements
 Skills
 HR systems
 Etc.
 Values
 Belief
 Attitudes
 Identity
 Prejudices
 Mindset
 Etc.
Technical
Challenges
‘Cultural’
Challenges
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The Domain of Disability
Discussible
 Political promises, policies
 Physical facilities
 Institutional structures, silos
 Funding of services
 Professional role demarcations
 Career and Pay structures
 Systems and content of training
 Profile of services
 Balance in skill mix
 What is measured, rewarded
 Political will
 Sheer bloody-mindedness
 Inherited, implicit, professional
hierarchy of self-esteem vs.
others , pecking order
 Professional values
 Politics of disability
 Comfort with status quo
Design
 Danger sensed in speaking out
 Beliefs about best service models
 Stigma and its effect on people
 Language, meaning

 Motivation of providers
Taboo
Dialogue
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The Change Story
Why / Drivers
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Compelling Case
Burning platform
What
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Strategy
Structure
Funding
Culture
Staffing, skills
Facilities, ICT
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Ownership
Work practices
Measurement
Service model
Processes
External Relations
Appeals to Guilt and
Fear
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Vision
Destination
+
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Who is impacted
How Change
Where to
‘Hard’
‘Soft’
Appeals to Ideals,
Inspires
When – sequence
Name responsible person
Is budget allocated
System of Accountability
Dates of 1st, 2nd Review
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From strategic planning to strategic
management
Analysis/Enquiry/SWOTS
Governance/accountability
Breakdown
Identify “Issues”
“Book of Options”
Strategic
control
Breakdown
Execution
Decisions
Strategic
Plan
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Comprehensive Architecture
Reality
Business
• Portfolio
• Performance
• Positioning
• Finance
Organisation
• Structure
• Processes
• Technology
• Culture
• Measurement
•
Place to work
• People
• HR Policies
•
•
Leadership/
Management
• Competence
• Disciplines
•
External Relations
• Govt.
• Regulation
• Community
• Corp H.Q.
•
Vision
Business
Vision
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KPIs
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Organisation
Vision
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Place to work
Vision
Leadership/
Management Vision
External Relations
Vision
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Targets
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Projects
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Enthusiasts and Resistors
To-day
Positives
- Track record
- Strengths
Negatives
- Burning platform
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Future
Positives
- Vision
Negatives
- What we will lose
- Effort/price to pay
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- Cannot demonise ‘resistors’
- Enthusiasts must face real reasons for ‘resisting’
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Counterimplementation Games
1.
Raise Level of Abstraction:
e.g. When you’re dealing with concrete, specific decisions, etc. someone “wisely” and “brilliantly” raises “the
much bigger question” – “I mean that sounds fine but what about the broader context – I mean the changing
geopolitical environment and the impact on how people view Banks ….. etc.”. Everyone stops in their tracks
riveted by a great mind at work.
2.
Lower Level of Abstraction:
“It’s fine in theory but what would you do if … (and a very detailed exceptional case is cited) … how would
your system work then?”
3.
Seek more Information/more Reflection:
I read in the paper today that the Government is hiring Consultants (again) to evaluate the business plans for
the Dublin Airport Authority.
e.g. “I like the idea but I think we need to do some research on it – call a meeting to discuss
further …”
This is the opposite to a bias for action. It goes for precision vs. momentum.
4.
Fear of Hurting:
“Let’s be careful here – you can’t just slash and burn – you’re talking about people here – people who have
done a good job…. etc.”
5.
Anti-Technique Bias:
“Ah this is all consultant talk” or “Look we’re a Bank – we’re not selling T-shirts”. Dismissing a tool or concept
developed in other sectors. For example dismissing the “soft stuff”.
6.
Historical Perspective:
There’s always one in the room.
e.g. “It sounds terrific but I think we need to remember that this was tried in the late ‘60’s and it caused
mayhem, etc.”
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7.
Theological, Philosophical points:
“Yes but what do you means by customer, define profitable customer for me – there are targets and targets – what is a
target?
8.
Saluting the Idea with no Commitment:
“I agree, etc.” – but with an air of impatience and a signal – “could you get on with it.”
9.
Wise Owl:
“We can never be too careful.”
Little lectures given.
10.
Flippancy:
Inappropriate humour to break the tension when a serious issue is being tackled. Over the top exaggeration. Clowning.
11.
Bullying:
Can happen at all levels. At meetings evident e.g. in a person raising their voice and indicating they’d be very angry if
challenged.
12.
Lie low, Rely on Inertia:
‘Cute Hoor’ – they’ve seen all this sort of stuff before.
13.
Insider Knowledge: A bit like No. 2.
“Well if you had to work at the coal face you’d know that the staff wouldn’t buy it.”
“The Unions would never wear that – I mean you couldn’t – I deal with them all the time.”
14.
Peacekeeping:
“Let’s not fall out over it – no need to get upset – etc.”
15.
“But we’re still good”
e.g. “I think we’re being too hard on ourselves – over critical
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Group-think
A fish does not recognise the
water it swims in
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Groupthink: Definition and Symptoms
Occurs where group makes faulty decisions because group pressures and
group habits lead to deterioration of mental efficiency, reality testing and moral
judgement – people from similar background
8 Symptoms
• Illusion of vulnerability
• Direct pressure on dissenters
• collective rationalisation
• Self-censorship by individuals
• Belief in inherent morality
• Illusion of unanimity
• Stereotyped views of others
• Self-appointed mind-guards
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Some recent examples of SMTs Trapped
unawares
• Information traps
• Decision-making style
• Unit of analysis and change
• Taboos vs. honest conversation
• Misreading dilemmas as problems
• Pace to which we are accustomed
• Discomfort with tackling shortcomings at most senior levels
• Continuing an established narrative
• Going after the last 5% (incremental vs. discontinuous
May need to change the way we change
Process awareness vital
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Dilemmas
You can solve a problem – but only manage a dilemma
Short term
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Long term
• Too much of a good thing is a bad thing
• Taking a strongly ‘biased’ position is legitimate at certain times
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Unit of Analysis and Change
Future competitiveness Plan
23 Separate Performance improvement Plans
- - - 23
1
2
3
4
5
6
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Continuing competitiveness Plan
1 Plan for Dublin Brewery
C C P No. 2
1 Plan for all Breweries in
Ireland
C C P No. 3
1 Plan for all Breweries in
Ireland and UK
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Thank you
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Slides just in case
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Plan or be planned for
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Four Stances vs. Changing Environment
Inactive:
• Lie low, sit tight
• Rely on inertia
• This too will pass
Reactive:
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Preactive:
• Get ready for what you can predict
• Plan
Proactive:
• Change how you are framed/viewed
• Find a new more relevant role
• it’s up to us.
Do nothing until you’re told
Retaliate, blame them
Minimal response
Good boy scout
‘it is naive to believe someone else will work it out correctly.’
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Open Systems Planning
Stakeholders
Want to-day
Fix
Will want
tomorrow
Plan
Ought to want
tomorrow
Reframe
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Tactics for Intervening to bring about Change
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•
Induce ownership
– Self diagnosis, joint diagnosis.
– Allow choice over pace, sequence, etc.
– As many as possible actively involved.
Create safety
– Secure small commitments.
– Create psychological and political safety.
– Agree change values/groundrules.
– Show roadmap.
– Phased, escalating ‘contracts’.
•
‘Project management disciplines’
– Set concrete goals.
– Apply project and programme management tools.
– Make obstacles and ‘helps’ explicit – CSFS, CJFS.
•
Social pressure
– Secure public commitment.
– Use peer pressure
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Use relevant exemplars, carriers
– Credible models.
– Watch your language.
– Use front-line staff.
•
Positive reinforcement
– Praise.
– Quick wins.
– Material/symbolic rewards
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Momentum vs. precision
– Trade off momentum vs. precision.
– Bias for action
– Small steps.
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Political support
– Secure and maintain political support.
– Ensure executive, line management hooked in.
•
Sell persuasively
– Upside if we do, downside if we don’t.
– Don’t oversell, overhype.
– Have evidence of progress before selling.
– Be honest about constraints
– Define ‘minimal critical specs’.
– Distinguish selling vs. dialogue engagement.
– Burning platform and vision
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Other
– Listen respectfully.
– Be aware of 4 phases of ‘consulting’.
– Means compatible with ends.
– Start as you wish to finish.
– Partnership approaches.
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Added Value Role of Centre/H.Q.
1.
Relations to next highest (if there is one) echelon (i.e. Board)
2.
Key external relations, including corporate relations, investor relations (i.e. Minister, Secretary General,
Media, etc.
3.
Incubator/sponsor of innovation
4.
Strategic management process, including strategic control and corporate strategy. Guide Business
Unit decisions
5.
High level management bench strength
6.
Access to capital resources, and allocation decision rules
7.
Measurement architecture
8.
Technology focus and Tech/Professional ‘bias’
9.
Legal responsibility, regulatory management
10. Champion company values
11. High level business structure, re-structure
12. X-business synergies, links coherence
13. Leverage pooled negotiating power (in purchasing, selling, alliances)
14. Corporate brand, reputation
15. Provide functional leadership, e.g. Finance, HR, Quality
16. Shared services (where economies of scale – I.T., P.R, Marketing, etc.)
17. Business portfolio and strategy
18. Set stretching goals, raise sights, e.g. via benchmarking.
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Mergers/Joint Ventures
Org. A
+
Org. B
=
Org X
(Prospectus)
Mission
Values
Strategy
• Portfolio
• Differentiation
• Vehicles
• Pace
Bus. Model (Financial Strategy)
ORGANISATION
• Structure
• Skills
• Process
• Facilities
• Info
• Measures
• Culture
Place to Work
• People
• HR policies
Leadership/ Management
• Competence
• Processes
External Relations
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What is a paradigm change?
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• . . . and the textbooks and professional training processes whereby the
dominant paradigm is passed on to the next generation of
Professionals/scientists, the system that prepares, licences and initiates
new members - - - (Kuhn)
• . . . an education system that is both rigorous and rigid and holds a firm
grip on the mind because entry to the community involves passing an
exam that demonstrates adherence to the paradigm. (Kuhn)
• . . . and the funding streams (E.M.)
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It’s more than a change of service ‘model’
It’s a Paradigm Shift
From:
The Structure of Scientific Revolutions
2nd Edition, 1970, Thomas. S. Kuhn
A scientific paradigm is an inherited view shared by a professional
community of:
• The fundamental nature of the studied subject – human beings,
specifically people with disability
• The laws which govern the interaction of the elements of the subject –
mind, body, self, family, social environment, etc.
• What questions may legitimately be asked
• What techniques, methods may be employed to find answers and
solutions
• What is acceptable as proof, evidence
• The value system, beliefs, mindset of the community
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Implications of a New Paradigm
• Specialists on whose area of competence and status it impinges will resist
• Long established, esteemed organisations in jeopardy from new start-ups
that adopt a new paradigm
• Changes what is ‘the problem’ and what is acceptable as a ‘solution’
• Ultimately transforms the scientific, professional and policy imagination
• Requires fundamental re-design of professional education
• Fundamentally changes the economics of the domain
• Fundamentally changes the power structure of the domain
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Paradigms are Tenacious
• “Normal science (or professional practice) is based on the assumption that
the scientific community knows what the world is like. Much of the
success of that enterprise derives from the community’s willingness to
defend that assumption, if necessary at considerable cost.” (Kuhn, p. 5)
• Research within as established paradigm is “a strenuous and devoted
attempt to force nature into the conceptual boxes supplied by professional
education.” (Kuhn, p. 5)
Paradigms are tenacious – difficult to change
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