Why Organizations Change

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LEADERSHIP INITIATIVE
COUNTY OF RIVERSIDE
4.
ORGANIZATION DEVELOPMENT●
CHANGE ● EMPLOYEE ENGAGEMENT
Culture Change
The tribal wisdom of the Dakota Indians,
passed on from one generation to
the next, says that when you discover
that you are riding a dead horse, the best strategy is to dismount.
But in modern business, education and government, because heavy
investment factors are taken into consideration, other strategies are often
tried with dead horses, including the following:
1. Buying a stronger whip.
2. Changing riders.
3. Threatening the horse with termination.
4. Appointing a committee to study the horse.
5. Arranging to visit other sites to see how
they ride dead horses.
6. Lowering the standards so that dead horses can be included.
7. Reclassifying the dead horse as "living-impaired."
8. Hiring outside contractors to ride the dead horse.
9. Harnessing several dead horses together to increase speed.
10. Providing additional funding and/or training to increase the dead
horse's performance.
11. Doing a productivity study to see if lighter riders would improve the
dead horse's performance.
12. Declaring that the dead horse carries lower overhead and therefore
contributes more to the bottom line than some other horses.
13. Rewriting the expected performance requirements for all horses.
And, as a final strategy:
14. Promoting the dead horse into a leadership
position and hiring an outside vendor to
cause a dead horse culture.
What we will cover
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Typical organization challenges
Overview of Organization Developmentwhat it is and steps in the process
Identify various tools, strategies and interventions
Employee Engagement and how that fits with OD
Change process and what it takes to sustain
change.
More available options
rather than….
“We trained hard, but it seemed that every time we were
beginning to form up into teams or were met with a new
situation we would be reorganized, a wonderful method for
creating the illusion of progress while producing confusion,
inefficiency, and demoralization.”
Gaius Petronius Arbiter, ancient Roman author of the “Satyricon”, circa A.D. 60.
The leader’s challenge
“How to (a) fully mobilize the energy of the
organization’s human resources toward
achievement of high performance and (b) at the
same time, so organize the work, the work
environment, the communications systems and the
relationships of people, that individuals need for
self worth, growth and satisfaction are significantly
met at work.”
Warren Bennis
Table case studies: As a group, read your scenarios
and talk about how you would address the situation.
Identify:
1.
2.
3.
4.
The problem
Outcome desired
Method/action to get from here to there
Rationale for choosing this method/action
You have 10 minutes to come to agreement.
Select someone to do a 2 minute report out.
Organization
development is…
the application of behavioral science
technology to the planning and
management of systemic organization
change in the name of improved
organization performance.
Goals of Organization
Development
• Improved performance and effectiveness
• Improved results
• Improved quality of work life
• Development of greater individual and
organizational capacity
WHY ORGANIZATIONS CHANGE:
POWERFUL PAIN
IMMINENT DANGER
POWERFUL ENEMY
INSPIRED LEADERSHIP
OD is Action Research
• Collect valid data.
• To make informed decisions
• That generate energy to take action.
OD is about:
EQUIFINALITY
Organization Development
Two approaches:
Structural
Behavioral
Typical OD process:
1.
2.
3.
4.
5.
6.
7.
8.
Presented Problem
Collect data and diagnose the real problem
With the client, select one or more interventions, and
design a rollout plan
Execute on the plan
Monitor for intended results
Adjust the plan
Follow up
Evaluation
Whole System Views
Organizational Subsystems
(Lots of moving parts)
Strategic
subsystem
Inputs Which
Energize the
Organization
Technological
subsystem
Organizational
Outputs
Managerial
subsystem
Human, Financial,
Informational, and
Material Resources
Humancultural
subsystem
Input-output flow of
materials, energy,
and information
Structural
subsystem
Production of goods
and services at a level
of efficiency and
effectiveness which will
influence future
resource availability
and systems operation
Throughputs
Kast & Rosenswieg
Human System Levels
• Individual
• Group/Team
• Inter-group
• Organization
• Inter-organization
Whole System Views
Weisbord Six Box Model
•
•
•
•
•
•
Purpose
Structure
Rewards
Helpful Mechanisms
Relationships
Leadership
Organization System Alignment
•
•
•
•
•
•
Environment
Strategy
Structure
Culture
Systems
Behavior
Need to take a
5,000 foot view
Start here at the presented problem
Problem detected
Plot your specific course
Systems view
You have arrived safely!
Yay!
May need to make adjustments
Weisbord Six Box Model
Purpose
What business
are we in?
Relationships
How do we manage
conflict (coordinate)
among people? With
our technologies?
Leadership
Is someone
keeping the boxes
in balance?
Structure
How do we divide
up the work?
Helpful Mechanisms
Rewards
Have we adequate
coordinating
technologies?
Is there an incentive
for doing all that
needs doing?
Outside Environment
Everything else. What
constraints and
demands dies it
impose?
Key Point: start with a model
 Weisbord 6 Box
 Burke Litwin
 McKinsey 7 “S”
 Great Place to Work
 Best Practice Models
 6 CELL MODEL
Mind your Perspective!!
Bolman and Deal
Back of a napkin model (systems fit)
To get an idea what
needs to be changed
Napkin model: systems equilibrium
fantastic or fully engaged
decision-making
decentralized
sucks or disengaged
centralized
routine
work
complex
Napkin model – rubber band effect
fantastic or fully engaged
decision-making
decentralized
sucks or disengaged
centralized
routine
work
complex
Napkin model: bow and arrow
fantastic or fully engaged
decision-making
decentralized
sucks or disengaged
centralized
routine
work
complex
You have an idea of the gap
…between what you want and
what is. … Then what?
Issues
Individual
Knowledge/Skill
Motivation
Satisfaction
Development
Group
Alignment
Composition
Roles & Relationships
Norms & Processes
Spirit
Inter-group
Alignment
Roles & Relationships
Work Flow/processes
Structure
Interventions
Training & education
Coaching
Mentoring
Career Development
Job Design
Assessments and feedback
Learning labs - journaling
Appreciative Inquiry
Role Clarification/ responsibility charting
Relationship development – conflict resolution
Team Building
Eidetics
Confrontation meetings
Outdoor Adventure
Polarity Management
Interdependence Clarification
Shared Goal Setting
Role Clarification
Organization Design
Interface Structures and Processes
Perception Sharing
Issues
Organization*
Mission, Vision
Strategy
Structure, Culture, Systems
Alignment
Performance
Inter-organization*
Leadership
Alignment
Roles & Relationships
Processes
Interventions
Planning
Strategy Formulation
Organization Design
Culture Change
Information Systems
HR Systems
Talent Management
Productivity Improvement
Appreciative Inquiry Summits
Simulations
Open Space Conferences
Labor Management Cooperation
Future Search
Stakeholder Conference
Coalition and Alliance Building
Leadership Structures & Processes
Planning
Role Clarification
Polarity Management Conference
What we need to know about change
1. MANAGING THREE SYSTEMS
past
not here
(anymore)
transition
not here
(solely)
future
not here
(yet)
CHANGING FROM ‘WHAT IS’ TO THE DESIRED
FUTURE STATE
TO
START with
“WHAT IS”
NOW
Desired future
DESIRED FUTURE
STATE
What the change path looks like
CHANGING FROM ‘WHAT IS’ TO THE DESIRED FUTURE
STATE
DESIRED FUTURE
OUTCOMES
START with
“WHAT IS”
Valley of
DESPAIR
The change formula:
∆= VxDxF>R
success
Change tends not to be embraced
Don’t forget the 4 basic human fears:
1. Rejection
2. Failure
3. Being wrong
4. Being emotionally uncomfortable
Informal system behind the formal
Org chart
Job descriptions
P&P
PR about who we are
Mission-vision-values…
Formal Organization
Who’s really in charge and the
way we really do things around
here
NORMS
Norms are powerful in maintaining behavior
What everyone hopes to find!
WHAT’S PREDICTABLE DURING ANY CHANGE
High uncertainty – low stability*
High perceived levels of perceived inconsistency
High emotional stress on people
High energy (often undirected) *
Control becomes a major issue *
Conflict increases
Blaming is rampant
Key point to remember:
The system
must first attain
stability
and then satisfaction
Name of the
change game:
per●sist●ence
pərˈsistəns
noun
firm or obstinate continuance
in a course of action in spite of difficulty or opposition.
"companies must have patience and persistence, but the
rewards are there"
The key to successful and sustained
change……
Employee
Engagement
Employee engagement begins with the
relationship you develop with
your employees
What is Employee Engagement?
EQ2 Emotional Intelligence and Employee Engagement
https://www.youtube.com/watch?feature=pl
ayer_detailpage&v=IZA94smSkQg
The most recent Hay study findings (validated 2014)
• 53% of US workforce is “not engaged”
(they are going through the motions)
• 18% of US workforce is “actively disengaged”
(acting out, not coming to work, in or starting litigation)
If these stats are true….
Do the math
In 2014-2015 our County budget ~$5 billion (rounding
up), making that portion estimated for salaries and
benefits roughly $1,600,000,000
RivCo FTEs ~ 16,000 = 2880 employees = 18% actively
disengaged
• x 2080 hrs/yr pp = 5,990,400 unproductive hours
• X $25 /hr =
$14,976,000 =
the cost of ‘actively
disengaged employees’
Gallup said 97% workforce are ignored + disengaged
47% of federal, state, and
local government employees
said they are engaged*
• 2012 and 2014 Public Sector Employee Engagement Surveys conducted by IPMA-HR
Employee Effectiveness Model
• clear & promising direction
Hay Group
Engagement
& Enablement
are Both Essential for Optimum Performance
• confidence in leaders
• quality & customer focus
• respect & recognition
• development opportunities
Engagement
•Commitment
•Discretionary Effort
• performance management
Employee
Effectiveness
• training
• collaboration
• work, structure & process
Customer Loyalty
Innovation
• authority & empowerment
• resources
Financial Performance
Attraction & Retention
of Talent
• pay & benefits
Drivers
Productivity
Enablement
•Optimized Roles
•Supportive Environment
Enhanced
Corporate Reputation
Case:
Arrowhead County, USA
Instructions:
1. Apply the Systems Fit Model to Arrowhead County.
2. Show where you think are the culture (engagement/
quality of work life), decision-making and work/
technology points on the model axes.
3. What is your rationale?
4. Decide on your most important desired outcome.
5. Brainstorm change strategies and first steps to achieve your desired outcome.
6. Select a reporter(s) to report out.
What contributes to disengagement?
What do you think?
Lesson #1
Anonymity –All human beings need to be understood
and appreciated for their unique qualities by
someone in a position of authority.
The Three Signs of a Miserable Job
Patrick Lencioni
Lesson #2
Irrelevance – Employees need to know what the
connection is between the work, the
organization purpose and the satisfaction of
another person or group of people.
The Three Signs of a Miserable Job
Lesson #3
Immeasurement – Employees need to be able to gauge their
progress and level of contribution for themselves.
Without a tangible means of assessing success or failure,
motivation eventually deteriorates as people see themselves as
unable to control their own fate.
The Three Signs of a Miserable Job
Patrick
from Miserable” to “Meaningful”
Show you care: Get to know your employees
personally.
2. Link employee activities to organization vision
and strategy.
3. Help employees find meaningful measurements
so they can track their own progress.
1.
High-performance organizations already know:
• Employees want to know it matters if they don’t show up.
• Employees want to contribute.
• Employees want to develop.
• Employees want to make a difference.
• Employees ARE our technology!
For public sector employees
12 Employee Engagement Questions
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Do you know what is expected of you at work?
Do you have the materials and equipment you need to do your work right?
At work, do you have the opportunity to do what you do best every day?
In the last seven days, have you received recognition or praise for doing good
work?
Does your supervisor, or someone at work, seem to care about you as a
person?
Is there someone at work who encourages your development?
At work, do your opinions seem to count?
Does the mission/purpose of your company make you feel your job is
important?
Are your associates (fellow employees) committed to doing quality work?
Do you have a best friend at work?
In the last six months, has someone at work talked to you about your
progress?
In the last year, have you had opportunities at work to learn and grow?
Wrap up: comments/questions?
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