Content
Sooner or later, any company and any manager is faced with the need to introduce changes. This could be a restructuring due to the growth of the company, the implementation of an IT system, or crisis management. And any person, faced with changes, begins to experience fear of the future and uncertainty. This causes negative emotions and irritation. Irritation and resistance are part of the adaptation process.
Therefore, understanding the work of motivation and using tools for implementing change is one of the key skills of a manager and an integral component in project and product management.
At the same time, let’s remember how changes are usually implemented:
preparation of orders and instructions in a directive style;
ignoring feedback from performers and active employees;
complex mechanisms and schemes that are understandable only to the managers who invented them;
emphasis on road maps and Gantt charts and other formal tools;
ignoring changes on the part of top management: reluctance to get involved and change ourselves;
all responsibility lies with 1 performer, who has neither resources nor authority;
avoiding any conflicts;
chaotic implementation of changes;
ignoring initiatives from below or toxic feedback.
This ultimately leads to:
changes are made only on paper and formal KPIs are met ;
the mechanism for implementing changes as a whole is discredited, a culture that is resistant to change is formed;
high burnout and turnover of the most valuable personnel.
In this post we will not consider the entire section of change management with an analysis of what changes are, when to implement them, why, etc., but we will focus on how to work with changes, what tools are there and how to use them. Plus there will be a separate article on working with communications.
In general, there are 2 approaches to changing people’s behavior patterns:
Approach 1: We change their attitudes/thinking, then they change their actions.
Approach 2: change their actions, which will lead to changes in attitudes.
The choice of approach depends on the ability to quickly change attitudes or actions.
And all changes in one way or another come down to changes in behavior and algorithms at work.
Additionally, we attach a presentation and video recording of our webinar on change management and working with motivation
When working on changes, one of the key roles is played by the values that characterize the culture in the company. Below are the necessary values for the successful implementation of changes:
• accepting responsibility for deadlines, results and errors;
• open discussion of risks and problems, implying straightforwardness in identifying and escalating these risks;
• caring attitude of employees towards each other, necessary during long hours of joint work;
• participation of the manager in work on an equal basis with other employees. An approach where a project manager supervises his project from afar, appearing with the team once every two weeks, will not work;
• an even, balanced attitude to bad news. Anyone who has managed a project at least once knows that information about “explosive” risks (deadline shifts, statements from key specialists about leaving) appears every day, sometimes many times. By reacting negatively to bad news or punishing those who brought it, the leader creates a common culture of hiding problems “under the rug.” It would be more correct to cultivate a calm attitude towards such situations, perceive problems as one of the inevitable attributes of project work, and jointly seek solutions;
• the value of strict adherence to deadlines. Different organizations have different attitudes towards discipline, planning, and commitment. In some places it is acceptable to postpone work until tomorrow because the working day is already over. In other organizations, such behavior may be seen as undermining the team's values. The manager’s task is to understand the real reason for possible delays and try to ensure that overtime (if it cannot be avoided completely) is not regular;
• speed and flexibility of applied management approaches. An example of speed and flexibility is the use of Agile development principles in cross-functional teams. In such teams, IT, marketing, product managers, and customer support work together on common goals without wasting time on corporate rivalries;
• respect for multiculturalism and newcomers. New employees or entire teams brought into the project may come from different cultures, have different attitudes to change, and adapt differently. A culture in which differences lead to disunity (for example, national “enclaves” in international projects) must be corrected.
So, here are some of the most useful change management tools:
• support of the first person and the team of top officials of the organization not in words, but in deeds: in decisions made and in evaluating the actions of employees;
• work of the project leader (group of leaders).
Its task is not only to define the target culture and values, but also to promote commitment to these values in everyday work;
• systematic methods of working with behavioral norms, group sessions, training events.
This is a time-consuming but powerful tool for changing culture, based on periodic discussions of both the values themselves and the mutual evaluation that employees give to each other. This direction requires moderation and qualified support;
• network of change agents.
People react to change at different speeds, but they change more willingly if they see examples around them of following a new culture. If the ratio of actively expressing themselves as carriers of new values to those who are hesitant is at least one to six, there is a good chance that the hesitant will begin to join, and the new norms will take hold in the organization. Therefore, change initiators and leaders constantly work as “radars” in search of potential allies who will form a network of change agents;
• communications.
If culture change efforts are limited to posters and desk calendars describing new values, then the culture change initiative can be considered complete. However, communication messages delivered with reasonable intensity will support the actions of role models and change agents. First-person communication is preferred: appeal, quotation. The communications plan must cover all stages of the project and contain language that is understandable to the target audience in terms of values and terminology;
• the role of HR.
The HR department should perform regular assessments not only on performance indicators, but also on adherence to values and norms. One of the components of management by values is selection, promotion, development and dismissal in accordance with the values of the organization.
Changes and proposals must be generated by people, they must feel ownership and value.
And most importantly, people adopt the most negative traits of a leader’s behavior. If you do not use new tools, then your subordinates will never start using them and will not accept the changes.
To simplify this, the key principle is that changes should come both from the top down and from the bottom up. What happens if this is violated:
when changes come only from top to bottom, people do not accept them and sabotage them, considering them imposed;
when changes come only from the bottom up, then everything dissolves at the level of middle management. He is overloaded with current tasks, and here we are adding more work. At the same time, the line manager himself may not receive any benefit (or is not aware of it). Accordingly, according to Vroom's theory, he has no motivation. In addition, changes from below may not be consistent with the goals of middle managers.
Therefore, it is necessary to launch global changes from the top, attract performers, and also develop mechanisms for directly communicating ideas from below to the TOP and the owner. Digitalization helps a lot with this.
To determine the strategy and select specific tools, setting priorities, it is important to understand what is the culture in your organization and individual departments?
Many organizations began their activities when they were very small. Relations in them were informal, close and family (sometimes large companies grew out of small family firms). This is the starting point of the spiral and its lowest level is the culture of belonging .
In Russia, such a culture can be found at regional manufacturing enterprises and in local bank branches. Obviously, a small family bakery will most likely also be characterized by a culture of belonging.
A culture of belonging can persist for many years, but at some point a growth crisis arises (ambitions, the number of orders grow, new leaders and competition among employees appear), which requires a transformation of the management model and culture.
At the same time, it is quite easy to make changes in such a culture, and if you start digitalization here, then we can be happy for you.
A growth crisis puts the organization's existence at risk. At this moment, leaders emerge who compete fiercely with each other. The culture of the organization is transformed into a culture of power . In Russia, it can be found in traditional industries (manufacturing, retail chains, banks, etc.).
The predominance of a culture of force fits well with the peculiarities of the Russian mentality. Russian management is characterized by a mobilizational nature: we often achieve a significant breakthrough, a feat by exerting all our forces, but at the same time we cannot build a predictable mechanism for systemic work.
And speaking in the context of digitalization and digital transformation, this is the least favorable option. Yes, change and digitalization are possible here. But this will most likely be unsystematic. In a culture of power, as a rule, there is a lot of micromanagement, and it is not good with change and flexibility, working with creative and talented employees. Digitalization will be local in nature and developed in individual departments.
The problem is that in such a culture, talented people who can be leaders of change and advancement of digital technologies are rarely discovered. Yes, you will invite cool developers from outside, they will implement cool solutions, but in the end no one will be able to use it. And the changes themselves will be long and painful.
In addition, in such a culture it is almost impossible to implement remote work through the use of electronic tools. People will simply start breaking all agreements. As a result, we cannot use remote and hybrid mode, which means:
we will in any case have high office costs;
We limit ourselves in attracting creative and talented employees. First, they will not work in a culture of power. Secondly, even if they come and we can hold them back, they will not be able to give the result we are counting on. In such a culture, you have to be a “solver,” and creative and advanced people work better when solving creative problems, rather than walking around with a whip and endless reminders.
The organization is growing again, and a single leader from a culture of power can no longer manage all the processes taking place. At this point, the organization moves from an absolute leadership model to building a management model . If the previous two cultures practiced manual management, then the next stage - the culture of rules - marks the transition to management without the personal intervention of the leader of the organization.
Regulations and procedures appear. What is called regular management appears (in this course we will look in detail at the practices of regular management). The transition to a culture of rules is the key to the long-term development of the organization and its growth. It is worth noting that many organizations remain in the first two stages because they have failed to move to a culture of rules.
Perhaps, after reading about the emergence of regulations and procedures, you thought about bureaucracy? That's right: if an organization goes overboard with rules and procedures, they can end up becoming an end in themselves.
This culture is the most difficult to initiate digitalization. Of course, in an ideal world, a culture of rules will help launch digitalization, but in reality, it will be hindered. And here it is extremely important that digitalization becomes a strategic goal and is included in the goals and KPIs of managers. Otherwise, everything will be buried in papers and approvals.
The next stage of development of the org. culture - culture of success . She is characterized by competitiveness, healthy competition. The culture of strength and the culture of success should not be confused: the first can be compared to a war without rules, the second to a sports competition, the Olympics.
Today, a culture of success is considered the most effective for many business companies. It combines respect for the rules and the desire to achieve results, which is more important than ever in a market economy. In addition, this culture has a positive effect on the motivation of employees who want to earn more and develop. Systematic management and the desire to constantly increase results allows us to resolve the growth crisis.
However, a culture of success also has its downsides. Due to the constant desire for even better results, emerging problems are postponed until an indefinite “later”, and long-term ones are ignored. As a result, today's success can undermine tomorrow's success.
How does a culture of success influence people? Strong individualism interferes with teamwork. People get tired of the constant race and burn out. There is a need to move to a new stage - a culture of consent .
She is characterized by collegial decision-making and creativity. The key goals of an organization with a culture of consent are not short-term results and victories in competitions, but the long-term development of the organization and the people working in it. Employees respect each other's opinions; differences are not only not rejected, but are encouraged. Dialogue and teamwork to find joint solutions are important for a culture of agreement.
A culture of consent can be confused with a culture of belonging. The consensus that can be seen in both cultures is nonetheless driven by different values. In a culture of belonging, the source is conformity, and in a culture of agreement, on the contrary, consensus is achieved through constructive debate, in which the individual personal point of view is valued.
With the advent of a culture of consent, regular management is being replaced by a new type of management - network management. Characteristic features of network management are the absence of a strict hierarchy, developed project work, and matrix organizational structures. In network management, teams are assembled for a project, and the roles are quite flexible. Network management is possible in cultures of agreement and synthesis, which we will discuss later.
The last stage can be described as controlled chaos. There is no hierarchy in the culture of synthesis : people organize themselves and work in temporary teams created to solve a specific problem. The key values are creativity, innovation, and trust.
Perhaps you have heard the phrase “turquoise organization”? So, it is precisely for it that the culture of synthesis is characteristic. Today, for many advanced organizations, this is the ideal to which they strive. It is worth recognizing that there are very few such organizations in Russia.
Important: Different parts of the same organization may have different cultures. For example, a culture of power may prevail in the production department, while a culture of rules may prevail in the finance department. However, it is important to remember two principles:
It is impossible to make a leap from a lower level of culture and jump to several levels higher - development must occur gradually and smoothly.
a manager can be a level higher than his subordinates, but no more. That is, the head of a department can belong to a culture of success and manage subordinates from a culture of rules, but the reverse situation will be ineffective. A situation where the manager is several orders of magnitude higher than the level of his subordinates will also cause conflict - then they will not be able to find a common language.
Well, and a small sign with recommendations for role model behavior.
What aspects of culture are slowing down an organization's transition to digital?
Punishment may also be applied for mistakes without joint analysis and learning from positive experience. Fear is incompatible with creativity and the creation of new ideas. Because of the fear of punishment, no one will take risks and make proposals that do not guarantee success: it is easier to sit back and go into a passive mode “waiting for instructions.”
This often leads to the need to conduct entire investigations in search of reliable information. All this is a huge unproductive waste of employee energy that could be directed to constructive work.
Creative people who come up with new ideas and don't get support are in a vulnerable position and can easily become the target of unflattering comments, being called "wonderful" or worse. Needless to say, this attitude does not add to their desire to create something new and useful?
Devaluation of other people's achievements can be aimed at the efforts and results of the work of employees, colleagues, and managers. The following phrases can kill individual or group motivation with one shot:
Specific obstacles to digital transformation can be, for example, established traditions of doing everything on paper, a strong protest against technological progress and an attitude towards the new as a threat.
This could be, for example, an imitation of project management, an imitation of Agile. This obstacle is difficult to quickly recognize, and this makes the work of correcting it even more difficult.
Often there is an imitation of the process of working on errors, holding “idle” meetings and imitation of continuous improvements. The symptom of imitation is simple: all the attributes of the tool are present, but their use does not affect the real results in any way.
Signs of imitation of digital transformation:
They invite professionals to the team, but do not give them the authority to make real changes, using them as “extras.”
The results of the lessons learned remain on paper (or even on the electronic board) without applying the acquired knowledge in the future.
Continuous improvement is more like coming up with meaningless ideas for the sake of quantity rather than for the sake of improvement.
Project management is limited to creating a project committee and a lot of roles and documents, but no real influence or decisions are made.
Digital transformation is simulated by creating a CDTO role with vague and abstract tasks, developing numerous presentations mentioning modern IT solutions, and completely decoupling from the business and operating model.
The implementation of process management in its imitation turns into multi-page intricate regulations or vague flowcharts that live separately from real processes.
PDCA ( " P lan- D o- C heck- A ct" - planning-action-check-adjustment) is a cyclically repeating decision-making process, the most important and basic tool in change and quality management. Known as Deming Cycle , Shewhart cycle , Deming Wheel or Plan-Do-Study-Act .
Also known as the Deming-Shewhart principle, but Deming preferred PDSA (Plan-Do-Study-Act).
The PDCA methodology is the simplest algorithm for a manager’s actions to manage the process and achieve its goals.
Planning
First, analyze the process: figure out what the problem is, why something doesn’t work. To do this, you need to involve the whole team to see the picture from different sides and understand what and how can be improved. Then the plan: set deadlines and agree with the team on what needs to be done and when.
Action
Work according to the new plan and not violate its terms.
Examination
Look at the result and understand whether everything turned out as planned. Is the customer happy, is everything working? And also analyze how the process itself went in order to change something for the better in the next cycle.
Adjustment
Use the plan or change it: if everything worked out, then apply new developments, make the process stable and try to improve it further. If not, then return to the first point and repeat it all over again, but this time working on the mistakes.
Unfortunately, many managers neglect this simple tool. You can see what is happening in the visualization below. Sounds familiar, doesn't it?
This tool alone will be enough for 90% of small changes. The most important thing is that work takes on an orderly appearance, which means people will be less resistant to change.
Links:
Video:
This subsection is the “foundation” of the entire science of management. Here we’ll talk about the triangle of authority, resources and responsibility, but in the context of working with changes.
Are you familiar with the situation when you or you are tasked with implementing something, but there are 0 resources for it?
Or they say “change it, but this is not allowed, this is not allowed, don’t meddle here, everything is strictly through me?”
Perhaps the only thing there is no shortage of is responsibility. There's plenty of that)
So, in order to organize something, you or your subordinates need appropriate powers, you need resources (financial, administrative, for example) and responsibility.
What happens if something is missing?
No resources
Well, how can we implement all this? Will you draw with your finger? How to conduct, for example, research?
No responsibility
Here we get an important bird or a fibber. He has no motivation to do anything.
No authority
Does anyone want to change something? I previously wrote about role models and so on. But all this still requires authority. Otherwise, a person will do something himself, initiate something, and so on. But everyone will think he's crazy.
It would seem that everything seems clear, but for some reason this balance is upset almost everywhere. And even in the modern advanced IT sector.
Therefore, before you start changes, think about whether you have these components, or are you ready to share this with your subordinates?
And as a result, the triangle + Berkhard formula is one of the basics if you want to change something) These are not sufficient, but mandatory conditions.
When implementing any more or less major changes in a team, you will encounter natural resistance from people.
A person, faced with changes, begins to experience negative emotions. His reaction is described by a curve of change. Emotions of irritation and resistance are part of the adaptation process. This is a natural reaction to change. In a couple of days it is impossible to change your attitude towards many issues, especially important ones. The speed of perception and decision-making varies from person to person.
If an organization is undergoing complex changes, employees and departments may be in different states (from curiosity and readiness to act in a new format to complete apathy). Understanding where employees and the organization are on the curve helps to communicate and work with people when implementing change.
Thanks to experience and competence, the project manager can understand exactly what causes he is dealing with and adapt the change management strategy in relation to the various stakeholders.
The skill of leading change requires understanding the people who find themselves in situations of change. This critical competency is gained through the experience of personal change and awareness of that experience. A leader is only able to lead others through personal change if he himself is able to change and does so.
Each stage has its own approach to change management.
American psychologists N. Tichy and M. Devanna analyzed the reasons for resistance to change according to the “technology - politics - culture” scheme.
1. Technical reasons for resistance to change:
people don't understand what to do;
people are afraid that they will not have enough resources for change;
fear “wasted energy on past changes, and now again.”
2. Political reasons are due to the need to redistribute spheres of influence and the fear of losing powers, resources, status, and work.
3. Cultural reasons for resistance to change:
we are used to working this way;
fear of losing the past;
lack of a culture of working with change.
Each reason requires its own approach to overcome.
For example, technical reasons are solved by communication and demonstration of tools, training. Very often people just need to explain what you are implementing, why and how to work with it. A user-friendly user interface also helps here.
Cultural reasons need to be overcome by demonstrating results: why change is vital, why it is safe and impossible without it, using small projects and intermediate victories to create a positive experience. The support of top officials and political will are also useful.
The most difficult reasons are political. Here you need to work with specific people. Often explain why they will not be fired during the change process.
According to Professor Stuart Heller, there are 3 main reasons for a negative attitude towards change and corresponding methods for overcoming this negativity.
Types of negative attitude:
1. Rational type of negative attitude
It consists of a lack of understanding of the details of the plan, the belief that changes are not necessary, disbelief in the effectiveness of changes, and the expectation of negative consequences.
2. Personal type of negative attitude
It implies fear of losing a job, anxiety about the future, resentment at the criticism received during the implementation of changes, fear of interference from management.
3. Emotional type of negative attitude
It manifests itself in a general tendency to active or passive resistance to any changes, lack of involvement, apathy towards initiatives, shock, distrust of the motives that caused the changes.
In accordance with this typology, the main ways to overcome resistance to change are:
Rational type of negative attitude:
1. Explain the action plan clearly and in detail.
2. Describe what would have happened if the changes had not begun.
3. Involve everyone in quality improvement teams and demonstrate the effectiveness of changes.
4. Create a bottom-up program to reengineer systems and processes.
Personal type of negative attitude:
1. Focus on improving the future job prospects for everyone.
2. Present positive and inspiring plans.
3. Pripyat accepts responsibility for past failures.
4. Present a scenario of expected benefits as a result of major changes.
Emotional type of negative attitude:
1. Show with examples why the old ways no longer work.
2. Organize meetings to communicate to employees the details of the change plan.
3. Demonstrate that the new policy is not just a “flavor” of the month.
4. Explain the reasons for the changes and promise to be involved in the process.
5. Be completely sincere and answer all questions.
Summarizing the approaches of experts in the field of change management:
1 reason for resistance: predictable negative outcome.
There are often concerns that changes will have a negative impact on the person or group affected by them. If anything, these people or groups believe that the impact of change on them will be negative.
Reason 2 for resistance: fear that there will be more work.
Employees of organizations believe that the consequence of the change will be an increase in work volumes, and the possibility of receiving rewards will decrease.
3 reason for resistance: the need to break habits.
Changes require workers to abandon established habits.
4th reason for resistance: lack of information.
The organization does not communicate effectively to employees about why and how to change, and does not clearly communicate expectations for future performance.
5 reason for resistance: inability to gain support for the organization as a whole.
Changemakers are unable to gain the support of the organizational structure, business systems, technology, key executives, skilled workforce, culture (values, norms, beliefs and assumptions) and integrate all of this into their activities.
6th reason for resistance: employee indignation.
People resist change because they perceive it as something forced on them.
We recommend that you read the presentation below and the materials at this link
Links:
To be precise, this curve is called the “Technology Adoption Life Cycle” and you can read more about it in the book “Crossing the Chasm: How to Bring a Technology Product to the Mass Market” by Geoffrey Moore.
And as we understand from the name, it is relevant for bringing new, innovative products that interrupt the usual way of life to the mass market.
But isn’t digitalization and digital transformation innovation that interrupts the usual way of life/work?
But your employees are not a market and you don’t need to sell them an idea? Of course, you may think that everything is decided by writing regulations and fines, but then you don’t need to read this article at all.
In our subjective opinion, this model fully correlates with what we observe in the life of work teams.
Moore introduces the following definitions for these consumer groups:
Innovators - technology enthusiasts
Early Adopters - Visionaries
The Early Majority are Pragmatists
Late Majority - Conservatives
Laggards are skeptics
It is possible to penetrate new consumer groups only sequentially, that is, it is impossible to penetrate the early majority segment without first obtaining innovators and early adopters.
To gain a foothold in one segment, define positioning and create a specific buyer persona. Don't try to sell to everyone at once.
Now here is a description of each group:
Innovators - always think in new ways and want to change everything
Early adopters (visionaries) - they like new ideas and perspectives; they are ready to try them, they buy not a “product”, but a “promise”, trying to be in the forefront
Early Majority - trying to identify new opportunities, participating in discussions
Late majority - trying to identify errors and threats, require preliminary verification
Those who lag behind are afraid of making a mistake and demand proof. They don't want to change anything
Below is an excerpt from the book, for those who like to understand in more detail:
Innovators actively follow new technologies. Sometimes they try to gain access to them even before launching a formal marketing program. This is because technology is central to their lives, regardless of what function it performs. They are interested in any significant new product and often make a purchase simply for the pleasure of exploring the capabilities of a new device. There aren't many innovators in any given market segment, but getting their attention early in the marketing campaign is still key because their endorsement reassures others in the market that the product really works.
Early adopters, like innovators, buy into new concepts early in a product's life cycle but, unlike innovators, do not understand the technical intricacies. Rather, they are people who can easily imagine the benefits of a new technology, understand and appreciate them, and relate those potential benefits to their interests. And their purchasing decision will be based on the degree of this fit. Since early adopters do not rely on authority when making purchasing decisions, but rather rely on their own intuition and foresight, they play a key role in opening up any new segment of the high-tech market.
The Early Majority shares some of its passion for technology with the Early Adopters, but is ultimately driven by a well-developed practicality. They know that many new-fangled inventions turn out to be passing fads, so they prefer to wait and see how others handle the product before buying it. They want to consult reputable sources of information before making significant investments. Since this segment includes a large group of people (approximately a third of the entire technology adoption lifecycle), winning their sympathy is the main requirement for generating significant profits and ensuring sustainable growth.
The later majority shares the position of the early majority, but there is one very important difference. Members of the early majority are quite capable of handling a technological product, but members of the late majority are not. As a result, they wait until the product becomes an accepted standard, and even then they want to receive enormous support, so they gravitate toward purchasing products from large, well-known companies. Like the early majority, this group makes up about a third of all buyers in any market segment. Gaining recognition for them is actually very profitable, because as the product ages, the profit margin decreases, so do the selling costs, and virtually all R&D costs are already amortized.
The last group is the bumpkins. They simply don't want anything to do with the new technology for a variety of reasons, both purely personal and economic. The only time the louts buy a technological product is when it is buried so deep in the depths of another product (like, say, a microprocessor built into the braking system of a new car) that they do not even suspect its existence. It is generally believed that louts should not be taken into account at all.
Links:
Video:
ADKAR is a goal-oriented model for managing organizational change. The creator of this model is the founder of Prosci, Jeff Hiatt. The acronym stands for five specific results that employees must achieve to achieve lasting change:
- awareness – awareness that changes are necessary;
- desire - desire to support changes;
- knowledge - knowledge of what and how to do;
- ability - the ability to do everything necessary to implement changes;
- reinforcement - consolidation of changes.
But there is one more interesting abbreviation to make it easier to remember - UKROP
Found out
Cool, I want it
Unlearned
Mastered
Habit
The ADKAR model is an effective tool for planning actions to manage organizational innovation, helping managers maintain employee motivation throughout the change period.
Links:
Video:
Beckhard and Harris' change management process includes 5 steps to help organizations increase their internal awareness, identify the need for change, analyze how their current state compares to the desired state, and then complete action planning to achieve the desired state. The steps in this process are described below:
Stage 1. Internal organizational analysis - identifying forces against change and the current organizational situation.
Stage 2. Why change - determining the need for change, determining what should be changed, and defining a vision.
Stage 3. Gap analysis - determining the current state of the organization depending on the desired state.
Stage 4. Action planning - assessing the present from the perspective of the future to determine the work that needs to be done.
Step 5: Managing the Transition - Implementing the plan through effective collaboration and role assignments.
One of the limitations of Beckhard and Harris' change management process is that the process views change as a linear process and does not take into account all the complexities associated with an ever-changing organizational environment.
One of the simplest and at the same time most effective models of change is the change formula developed by Richard Beckhard and David Gleicher.
Its value is that it helps determine whether it is worth spending resources and effort trying to introduce change and bring happiness to everyone and so that no one is offended.
It allows, albeit quite subjectively, to assess whether the conditions have been formed for the start of changes
Key information about the 3 elements
D = dissatisfaction with the present:
Employees must clearly understand why changes are needed.
Is there a clear statement of why it is unacceptable and impossible to continue working in the same way?
After all, motivation arises only after feeling a sense of dissatisfaction with the existing system.
Can managers and supervisors provide their organizational ideas for change that include:
- prospects for the shareholder (i.e. increase in market share, revenue, cost of goods)
- prospects for the client (i.e. increased customer satisfaction, product quality)
- prospects for employees (i.e. greater satisfaction, less turnover).
B = vision of prospects:
- Do employees understand their future in the organization and the company’s place in the market.
- whether managers can and are ready to share their vision of the future of the organization
- can the first person describe the future in understandable and clear language for all his subordinates.
PS = practical steps:
- does the whole team have a clear understanding of what will happen and what needs to be done?
- Is the manager sure that each employee is fully aware of the steps that need to be taken to achieve the goal.
- Are the employees themselves ready for a change in work and possible reshuffles, development of new skills, change of profession.
Summary:
If the conditions for implementing changes have not been created, then other tools will not work. And there is little point in exhausting yourself, caring for everyone. This is unlikely to be appreciated. Or you must be a unique talent with exceptional skills. So that later legends will be made about you in the company.
Of course, you can use Kotter (more on him later ) to create a sense of urgency and importance and start the mechanism, but I think this is false. At one point, if everything is really wrong, it will come up and only undermine your authority.
And from our own experience we can say that if you put out some kind of “fire”, but changes in people do not occur, then a new one will arise very soon. Crises, if they are not created on purpose, are a consequence of the management system. And either you will burn out their carcass, or you will become a “fixer” for good money, but still, you will fight windmills and just make money. You need to be prepared for this.
Links:
Video:
The main strength of the model is that it focuses on transition rather than change. The difference between the two is subtle but important. Change is something that happens to people even if they don't agree with it. Transition is internal: it is what happens in people's minds when they undergo change. Change can happen very quickly, while transition usually occurs more slowly. The model identifies three stages of transition that people go through when they experience change:
1. Completion, loss and vacation.
People enter this initial stage of transition when changes are first introduced. This stage is often characterized by resistance and emotional turmoil because people are forced to let go of what is comfortable for them. It is important for a leader to accept people’s resistance and understand their emotions, and give time to accept changes. It is necessary to explain to employees how they will be able to use their skills, experience and knowledge after changes are made. People are most likely to fear what they don't understand, so the more they know about what awaits them after implementing change, the more likely they are to move on to the next stage.
2. Neutral zone.
At this stage, people affected by the change are often confused, unsure and impatient. Depending on how well management manages change, employees may experience a higher workload as they adjust to new systems and new ways of working. This stage is perceived as a bridge between the old and the new, people will still be attached to the old and at this time they are trying to adapt to the new. This stage can also be one of creativity, innovation and renewal. This is a great time to encourage people to try new ways of thinking or working. The most important thing at this stage is to give employees a solid vector of direction and set short-term goals. Achieving short-term goals will help improve motivation and also provide a positive perception of the change effort.
3. A new beginning.
The last transition stage is a time of acceptance and energy. People began to embrace the change, develop the skills needed to work successfully in a new way, and began to see early wins from their efforts.
Links:
John Kotter, a Harvard Business School professor and renowned change expert, presented an 8-step change model in his book Leading the Change, which he developed based on a study of 100 organizations undergoing change. It is a simple step-by-step model that provides clear description and guidance for the entire change process and is relatively easy to implement.
But again, if, according to Beckhard’s formula, TOPs have not accumulated sufficient dissatisfaction and understanding of “why do I need this and what do I want,” and they are not ready to delegate powers and resources, then this tool will not bring results. On the contrary, it will create a negative experience.
The focus of the model is on preparation and creating acceptability of change rather than the actual process of change. But skipping even one step is critical.
But, since this is a step-by-step model, skipping even one step is critical
Stages:
1.Create a sense of urgency
The most important step. Employees must understand the need and urgency of change. This requires open, honest and persuasive dialogue, for example about potential threats and discussing possible solutions
2. Formation of a support group
For example, create a project team that will deal with changes. This group will be able to manage efforts, resources, and encourage employees to be cooperative and constructive. It is preferable for this group to consist of employees working in different positions in different departments, this will allow others in the organization to rely on the group and identify with its members
3. Create a vision for change
Articulating a clear vision can help everyone understand what the organization is trying to achieve within an agreed upon time frame. It makes change more concrete and creates support for making it happen. Linking the adopted vision with the company strategy will help employees achieve their goals
4. Information
The most important goal of Step 4 is to create support and acceptance among employees. This can only be achieved by discussing the new vision with employees at every opportunity and taking their opinions, problems and concerns seriously. The new vision must be fully accepted throughout the organization
5. Removing barriers
Before change is accepted at all levels, it is critical to change or, if necessary, remove obstacles that may undermine change. By engaging in dialogue with all employees, it will become clear who is resisting change.
6. Create short-term wins
Create short-term goals so employees have a clear idea of what's going on. When goals are achieved, employees will be motivated to make further changes ( Vroom's theory )
7. Consolidation of improvements
Many changes fail because victory is declared too early. Change is a slow process and needs to be embedded in the overall corporate culture. Quick wins are just the beginning of long-term change. Therefore, the organization needs to continue to look for ways to improve. Only after numerous successes have been achieved can it be said that the changes are bearing fruit
8. Committing changes
This is a step from Lewin's model - consolidation. Changes don't happen on their own. Values and standards must be consistent with the new concept. Regular assessment and discussion of progress helps reinforce these changes.
Recommendations by John Kotter
Once all steps have been completed, John recommends adopting the new vision as the starting point for recruiting new staff and training current staff. The new vision and change must take a strong place in the organization. Employees who actively contributed to these changes should receive public recognition. Their support was important and when new changes were needed they could be turned to for help and support.
Links:
Video:
According to this model, there are 4 stages of change in people's behavior. At the 1st stage, employees react negatively to any changes, then people begin to fear the consequences of the changes. At the 3rd stage, the process of adaptation of employees to changes begins, and the 4th stage is characterized by the acceptance of changes and the active work of employees in new conditions.
Links:
Video:
One of the most popular and successful change management models, created in the 1940s by Kurt Lewin, a sociologist and physicist. Lewin was interested in what factors or forces influence a situation at a given point in time, especially social transformations. He sought to identify the forces that either impeded movement towards the goal, or carried out movement towards the necessary unfreezing. He is considered the founder of the concept of change management.
Kurt Lewin's theory of change model is based on a three-step process (Unfreeze-Change-Freeze) that provides a high-level approach to change.
Unfreezing is a preparatory stage that helps those affected by the reform to break the current state of stagnation and accept that change is inevitable. The key here is to note the reasons why the current state is flawed and cannot continue.
Change . At this stage, employee involvement as well as good communication are used to implement change. Where the unfreezing stage can be stressful, the change stage remains a little stressful, but it progresses regardless of support and constant communication. At this stage, rumors are dispelled, and everyone has the right to act.
Freezing . Finally, a refreeze phase must be performed to ingrain the changes that were initiated in the Change phase. Strategies are being developed to help secure these transformations, and business processes have not returned to their old ways. Successes are rewarded by the company, and communication and support continue.
Kurt Lewin's change theory or model helps a leader take the following three steps: make radical changes; minimize disruptions to the structure; make sure the change is accepted permanently
Links:
Video:
McKinsey's 7-S model is ideal for organizations that aren't quite sure how they need to change, but know something is wrong.
The model focuses on 7 essential elements that all organizations must have to operate effectively. Companies can refer to these elements to see where reforms are needed or ensure each element is mutually reinforcing to maintain quality performance.
Model 7-S can be used in different situations. For example, to:
increase company productivity.
study the possible consequences of upcoming changes within the company.
coordinate companies in merger or acquisition processes.
determine how best to implement the company's chosen strategy.
This model is designed to help organizations ensure alignment of the following core elements:
Shared Values : The company's core values, such as its mission and principles of corporate culture.
Skills : the core abilities, capabilities and competencies of the organization's personnel.
Personnel : characteristics of all key job roles, including demographics, motivation, training and compensation.
Style : behavior patterns of all work units, leadership style and its importance in transformation.
Strategy : The overall goal of an organization and how it seeks to outperform its competitors.
Structure : The structural division of work within an organization and the interaction between departments.
Systems : defined procedures in resource allocation, performance measurement and reward.
All of these sectors are interconnected. The authors classify them as “hard” and “soft” elements.
“Hard”, stable elements are easier to detect or identify. They are directly influenced by management through strategy statements, organizational charts and financial statements. Including routine procedures and IT systems. Hard elements:
Strategy
The structure of the company
Control system
“Soft”, volatile elements are more difficult to describe due to their variability. They are not flashy and are more influenced by corporate culture. Soft elements:
System of values
Sum of skills
Employees
Relationship style
But let's look at a simplified algorithm:
#1 - Gathering information
It is necessary to describe each element of the model. It is necessary to describe each element of the model in monosyllables, using brief facts, but in as much detail as possible
Element 7S | Item Description | Contradiction |
Strategy | Gradual market coverage with the current range (increasing penetration) | No |
Structure | Simple vertical reporting structure in the company | No |
Control system | Several formal systems associated with the customer interaction process. Weak system of strategic planning, personnel management and development of new directions | No |
Sum of skills | The company has a small number of personnel with highly specialized work skills; the remaining skills are implemented by the company management (founders) | No |
Composition of employees | The company has several vacancies. Employee motivation is based on receiving rewards from the company's growth; employees receive company shares, the value of which is growing, as an additional reward | No |
Relationship style | Democratic, partially chaotic management style | No |
System of values | The company's personnel are mobile, value work in the company and trust each other | No |
No. 2 - Analysis of contradictions
Analysis of all the described elements among themselves and determination of whether there are contradictions between individual elements, whether they correlate with each other as much as possible and support each other. Start by analyzing your core values: how well they align with your strategy, structure, and management system. Then look at the “hard” elements: how do they relate to each other and do not contradict each other? Finally, look at the “soft” elements: how much does each of the “soft” elements support the “hard” elements? To what extent do the “soft” elements do not contradict each other?
No. 3 - Ideal model
A prototype of the ideal model of your organization, which will combine all 7 elements. This stage of working with the model is the longest and requires consideration of many alternatives. To build the ideal model that you will subsequently implement, use the path of least resistance that takes into account the current structure and values of your company. First, look at what can be changed in the “soft elements” to better align with the “hard” and core values of the company. Then experiment with changing each “hard” element. And only at the end do you move on to changing the company’s core values.
#4 - Change plan
A plan for changes in the company's work and what key changes need to be made so that all elements of the model support and complement each other in order to eliminate contradictions that hinder development and reduce the efficiency of the entire company. Comparing the actual and ideal models with each other will help with this.
#5 - Implementation of change
Implementation of planned changes that should improve the company's performance. In any process, project implementation is the most difficult and important stage. No analysis can improve your company unless it is translated into concrete action. Therefore, create a special separate group that will implement, monitor and control the implementation of changes. These can be company employees and third-party personnel
No. 6 - Control and monitoring
Monitoring the work done and re-building the model with analysis of each of the seven elements. A change in each individual element entails a partial change in all the others, so it is important to monitor the operation of all 7 elements of the company’s microenvironment with regularity.
Agree, the instrument is very similar to the Kurt Lewin model. But a slightly more open model
#7 – Consolidation and monitoring
The new model must be reinforced and made part of the company culture. Well, carry out regular monitoring so as not to end up in a conflict of elements
Links:
Video:
Joseph Overton explained how to step by step transform human perception from the unacceptable, disgusting and shameful to the normal, generally social and even prestigious. How to react to people who are not amenable to general influence and how to even use them as a tool for implementing the intended strategy.
This is a method of influencing the mind of society, divided into 6 stages:
Unthinkable
Radically
Acceptable
Reasonable
Popular
State norm
Let's look at the stages in a little more detail.
Unthinkable
Unthinkable - an idea such as digital production or reorganization is impossible. You have “complex specifics” and so on. But no one forbids conducting scientific research on this issue. Scientists, in principle, can touch on any topic.
And since we touched on such an important issue, we will convene a scientific conference on the topic. Of course, this information will leak to the masses, to ordinary personnel, even in a negative way.
Then, you just need to support and develop the problem that has arisen, and society will adapt. An active discussion of this topic will begin. At this stage, this is still unimaginable, but the Overton Window has already moved, that is, a revision of positions has already been indicated: what was wild has become radical.
Radically
The taboo on discussing this issue has already been lifted, but the idea is still unacceptable. In addition to periodic scientific symposiums, this topic is increasingly starting to appear on TV and on the Internet.
This transitional stage is the most important. Instead of, for example, the already scary words “optimization,” transformation is used. The meaning is the same, but it doesn’t hurt the ears.
If you are a public figure, then the media will certainly ask questions about your opinion on such a radical innovation. If you do not answer such questions, you will be criticized.
The flow of information increases and people's perceptions become more open, the window moves from the stage of “radical” to “acceptable”.
Acceptable
The problem has been highlighted for a long time and discussions take place periodically, and people have managed to get used to it. Digital transformation is considered to be advanced automation. And everything new is well-forgotten old, everything is cyclical and so on. Everyone who continues to think rationally and is not ready to put up with what is happening is portrayed as short-sighted ignoramuses, cave Neanderthals, and so on. Gradually, the window from the “acceptable” stage moves into the “reasonable” stage.
Reasonable
The “Reasonably” stage reshapes human attitudes towards the very fact of excluding people from certain processes. If you do not oversaturate the human brain with information, but present it processed and proportionally, without focusing on important details, then the effect will be immediate.
Standard
Ordinary employees are actively involved in discussions. For them, new approaches become commonplace. And it is already clear that the changes will not lead to massive layoffs. This is quite ordinary.
Analytics is gradually turning on. Many articles appear with the results of completed projects and the implementation of changes, open discussion of the pros and cons, where to “look”, discussions of how to carry out projects “more efficiently”.
Reforming itself from the window of rationality into the window of an accepted standard, the idea is introduced into the public mind that the issue is already at an edge - it’s time to change something. The point of no return has been passed - the final stage - the state norm - begins.
State norm
The final stage is a list of laws, federal standards, programs such as “Digital Economy”.
Of course, public money is allocated for all this, both for budgetary organizations and private ones, as non-repayable subsidies. The principle of constructing the work and the further benefits are obvious.
Why did I choose this tool for the section? For the same reason as the Moore curve. The introduction of digital technologies, the use of analytics and all the tools may be unthinkable for your organization or industry. And simply “unfreeze - implement changes - freeze (standardize)” may not be suitable. For example, you may have older personnel, low salaries, government orders, and the inability to radically change activities and/or form a new team. Then you need to implement changes as carefully as possible. It takes a long time, but it is possible, and this is where the Overton window can help.
Links:
Video:
The DICE Framework is a tool developed by the Boston Consulting Group (BCG) that can be used to determine how effectively a company is implementing its change initiatives or how effectively it is able to do so. Can certain initiatives be expected to succeed or are they doomed to fail from the start?
4 hard factors are the litmus test for assessing the likelihood of success of a change project:
DICE = D + 2*I + 2*C1 + C2 + E
D - Duration - for short projects: cumulative duration. For long projects: time between formal reviews of key events.
I - Integrity - the ability of the project team to successfully complete the change project on time
C - Commitment - support for change (influential employees, managers - C1; employees affected by changes - C2)
E - Effort - what kind of impact does the change initiative require beyond the regular amount of work of employees.
Each factor is assigned a number from 1 (favorable) to 4 (unlikely).
7 is the best possible indicator.
28 is the worst.
Projects between 7 and 14 are in the “Win Zone”, the probability of success is very high.
Projects between 14 and 17 are in the Worry Zone and are risky.
Projects with indicators over 17 are in the Woe Zone and are very risky.
Links:
Video
Another simple, but also effective tool for learning and introducing change - Xiu Ha Ri
This rule, like many tools, also consists of 3 stages:
Stage Shu (守)—“follow the rule.”
At this stage, the student is obliged to follow all the teacher’s recommendations. The goal is to learn to do exactly as the master says.
We arrive at this stage in a state of “blank slate”, we don’t know anything and we can’t do anything. And here it is very important to pacify your pride and “experience”, to strictly “follow” the teacher’s instructions. It’s too early to create and improvise.
In the case of learning a skill, a “base” is formed at this stage. In the case of teaching theory, we form a system of principles on which this theory is built.
The next stage of Ha (破) is “break the rules.”
You should move on to this stage only after the “base” has been completely mastered.
You can and even need to deviate from the rules, try, experiment. It is at this stage that a deep understanding of the essence of the technique being studied occurs. Break the rules, analyze the result, compare it with the standard, and draw appropriate conclusions.
Ideally with the support of a "teacher"
The final stage of Ri (離) is “separation from rules.”
We have already absorbed the essence of the methodology and realized the very essence of the teaching. Rules are no longer needed and the time has come to “separate” from the teacher/standard. Here we are completely rethinking the subject area. We create our own “style”, our own theories and practices.
The first stage can last about 1 year. The second is up to 5-10 years.
Why is this tool important? Now is the time for “flexible” methods that captivate with their simplicity. And a huge number of companies or teams, deluded by this, begin to deviate from the “rules” or recommendations too early, and sometimes do not comply with them from the beginning. As a result, they fall into the trap when they do not understand the whole essence of the tool, but they already try to make a sledgehammer out of a hammer, simply by attaching another “attachment” to the handle, and then complain that the tool is bad.
Friends, we have reviewed with you all the main tools for introducing changes. There were a lot of them, so we want to share with you our selection and algorithm, which always helps, and if you don’t follow it, there are guaranteed to be problems.
1. Before starting changes you need to answer:
Who needs this?
For what?
What will it fit into?
What is the effect and will it pay off?
What can interfere?
Compatible with real daily life?
What are we changing?
All this will allow us to understand whether the changes are advisable?
2. Next you need to use Beckhard's Formula . She will answer the question “Has dissatisfaction accumulated? Are changes really necessary or is the need only declared?
3. Next ask yourself or the TOP:
- What exactly do they want from you? Where are the limits of your responsibility?
- What resources will you have?
- What about the powers?
This will allow you to understand that with the triangle “ Authorities - Resources - Responsibility ”, is there any point in interfering in the adventure? Personally, as soon as I don’t comply with this, then that’s it, the project will be difficult... Of course, it can be pulled out, but it will take a long time, it will be nervous, and it’s not a fact that they will appreciate it.
4. Then:
prepare a plan for introducing changes, with answers about why they are being made, why it is safe for people, what problems will be solved. And make it accessible to everyone
take small steps and follow the PDCA principle: plan, do a piece, study the result, act “for real”
Communicate as often as possible with those to whom your changes are aimed. Often their resistance is due to misunderstanding. But if it’s with politics or culture, then everything will be more complicated... In addition, by communicating, you yourself will pronounce your ideas and gain a clear vision of where you are going. Personally, every time I communicate with my team, I discover new things for myself and begin to understand a little better where to go.
remember that there will always be resistance, you need to understand the reasons and choose the right role model - persistence, support, education and motivation, acceleration and finally encouragement
use the " Thawed - Changed - Freeze " model
learn according to the principle of Shu Ha Ri
if your changes are radical, use the Moore curve and the Overton window
Another extremely important principle is to encourage early identification of problems and proposals for solving them. Then their solution will be faster and much cheaper
There is no point in being overloaded with 7S and DICE models at the initial stage. Learn to use simple tools first, and if you master it, you will already get results and a boost for further improvement.
1. First, determine your global goal. Why do you need this? What goals do you set for yourself? And make this information available to everyone. A roadmap will help with this. Simple, accessible to everyone, but with major milestones and approximate deadlines
2. Form a team with core roles
3. Ask loyal customers what they are missing? In which services there is a need to reduce the cycle to minutes and seconds. And remember, clients are internal
4. Digitize business processes and start working with data.
5. Develop training programs and memos, SCRIPT INSTRUCTIONS that are simple and understandable for the “average” employee. And design UX design taking into account role-playing scenarios and with a minimum number of elements.
6. Highlight the top 10% of innovators. Rely on them and teach: digital technologies, project management, product management, data management, lean manufacturing, CRITICAL and systems thinking, systems limitation theory, working with staff resistance. Create a space in your teams for dialogue and free from punishment: discuss mistakes not in terms of “who is to blame”, but “what can we learn”. THESE PEOPLE WILL BECOME YOUR ASSET AND SOURCE OF CAPITALization, WILL FIND THE BEST SOLUTIONS AND BE AGENTS OF CHANGE
7. Increase the level of digital literacy of ordinary employees
8. Create a mechanism for collecting feedback from employees and administrators. A huge amount of knowledge and ideas live within the company.
9. Have a dialogue, give feedback, start saying “thank you” when information about a large and serious problem is shared with you. The result will not be long in coming: soon you will be perfectly informed about the risks in the project.
10. Track what digital transformation leaders are doing in your industry and the world.
11. Use free tools and services wherever possible. Create and encourage zones for digital experimentation and the use of new technologies, share success stories and positive emotions. Play around, develop competencies, get results, practical experience of interacting with modern digital services
12. Move in small systematic steps, demonstrate successes and results. Project PR should not replace success, but complete silence is a mistake.