Proposal for Company - Project Title

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1 1 Leadership of Complex Change in a Productivity Improvement Proposal for Company - Project Title Environment Date: 21 st October 2015 Authors: Simon Leadership Grogan of Complex Change Productivity Improvement Dr Toni Whitehead

2 2 Introduction Change Management and transformational change are words and phrases we hear many times in organisations, and in the news and media, for example. But what does change management mean and how do people in organisations react when they experience change management activity? As individuals, we all respond to change in different ways but interestingly, it can manifest itself in a small suite of emotions or behaviours. We often hear the words people are in shock or denial and that before they can begin to embrace the change they need to reach a state of acceptance. Think about contemporary stories in the press, for example, Brexit, changes in your own life or at work. This paper focusses on a range of change management approaches whilst considering complex change in productivity improvement environments. The Kubler Ross Model A commonly used model in change management is from the 1960s, by Kubler-Ross. In its original form it was known as the bereavement or grief cycle but it has been adapted for change as it relates to a sense of loss.. (The left axis relates to morale, competence or confidence levels referred to as performance in some adaptations, whilst the right relates to time). In an organisational context people experience a strong sense of loss when things in the workplace change from the established, to the new. It is also worth noting that when people are experiencing change or loss at home, for example, this may also manifest itself in the workplace, on the Kubler-Ross curve and their reactions and behaviours may reflect some of these however, the root cause of this emotional turmoil may be nothing to do with work. Figure 1 Adaptation of Kubler-Ross Organisational Change Whilst the shape of the curve is reflective of the emotions experienced by individuals, the time taken to travel through this, and the sequence of emotions can differ for each individual.

3 3 People can often reach a low point through frustration and anger, before they begin to move towards acceptance of the change, by learning more about opportunities that may emerge moving through Experiment, Decision and Integration. Further understanding of the Kubler-Ross model could be offered by John M Fisher, a Chartered Psychologist who charted personal emotional states throughout change. Figure 2 John M Fisher - Personal, Emotional States Through Change These stages are common and are as follows: Anxiety You don t know may happen next and you are not sure what any change(s) will look like yet. Happiness You feel good about the change at last you can get rid of things, systems and processes which do not work. Threat You are unsure about how the change will affect YOU. Fear You are fearful of the way the change will force you to think, work and behave differently. Anger Some anger and frustration is directed at others, especially those who you believe are responsible for forcing the change. Guilt You feel angry with yourself for not having coped as well as you believe you could have. Despair You may feel confused and apathetic and really start to wonder who you are the old you and things you knew are gone. Hostility You show aggression towards yourself, others and the change(s). Acceptance You become more emotionally detached from the situation and begin to make sense of your environment and the change(s).

4 4 Moving Forward You start to take more control and make things happen - in a positive way. Other pathways off the curve are: Denial you deny that any change is occurring at all Disillusionment where you decide that the change does not fit with your value system and you decide to have nothing more to do with it. On reading this, many of you will recognise these emotions and behaviours in yourself and in others at work or at home. So in a working environment, for example, how can we counter the negative responses to change and motivate people to embrace the new ways of working Maslow and the Hierarchy of Needs This is a psychological theory based on the work of Abraham Maslow in his 1943 paper "A Theory of Human Motivation". This relates to individuals and what motivates them Maslow's hierarchy of needs is often portrayed as a pyramid showing largest, most basic human needs at the bottom, moving up to the need for self-actualisation or realisation at the top: Figure 3 Abraham Maslow Hierarchy of Needs In an organisational change environment, these needs can be impacted through modifications to organisational structure, role and responsibility, team, location, etc which can impact individuals and affect their motivations to engage. The model below shows how Maslow can align to employee engagement:

5 5 Figure 4 Maslow s Hierarchy of Needs & Alignment to Employee Engagement It is therefore incumbent on those leading change and transformation to understand these impacts on their people and devise strategies for effective engagement of all relevant stakeholders, not only employees. The Lean Iceberg Model Change deals with all elements often referred to in the Lean Iceberg Model in the Shingo Prize Winning Book Staying Lean above and below the waterline : Figure 5 Hines et al Lean Iceberg Model The S A Partners Enterprise Excellence model we use in consulting and training has been developed over 23 years of research and practical application with clients in differing businesses,

6 6 sectors, regions and cultures. The familiar areas of focus are on Purpose (Strategy), Process (all systems and business processes) and People (cultural and behavioural elements that make the business work). The critical elements of the model are those which integrate Purpose, Process and People and power change in organisations Align, Engage & Improve. Figure 6 S A Partners Enterprise Excellence Model Change Management Approaches The Kurt Lewin 3 Stage Change Model This organisational change model has been around since the 1940s and still remains relevant today. Known as Unfreeze > Change > Refreeze or Unfreeze > Move > Refreeze this is often referred to as a simple, practical change model although change is rarely simple in organisations. Stage 1 is where the existing structure and mind set is dismantled. Stage 2 is where the change activities occur - typically a period of confusion and transition from the old ways of working to the new, which may not be fully articulated at this stage. The final stage is referred to by Lewin as Freezing or more commonly known now as Refreezing. The new mind set is expected to embed and the new ways of working are being imbibed in the people, processes and systems. Comfort levels are expected to return to previous levels. The challenges created by change, experienced through the Kubler-Ross model by those affected by the change particularly at the early phases of Shock, Denial, Frustration or Anger need to be carefully managed by Leaders and Managers in particular, in order to bring the wider community of stakeholders along on the change journey as quickly and as engaged in the process, as possible. Within the S A Partners Enterprise Excellence Model, we use proven approaches such as Programme Management, Stakeholder Management, Communication Management and Leadership & Coaching approaches that are contingent to the client and organisation we are working in.

7 7 Figure 7 Kurt Lewin Organisational Change Model Another popular change model is the John Kotter 8 Stage Model John Kotter - 8 Step Model for Leading Change This model was introduced in 1996 by John Kotter. After 20 years of implementing change using the model, the most prominent reasons why organisations want to transform are: To increase revenues/profits or decrease costs and/or to become more effective or more efficient. Figure 8 John Kotter 8 Step Leadership Change Model The first three steps relate to the creation of a climate for change: Step 1 Create urgency - Leaders must describe an opportunity that will appeal to individuals heads and hearts and use this statement to engage wider stakeholders and workforce to power the change. Step 2 Form or build a powerful coalition Stakeholders from across the organisation form a coalition of effective people coming from its own ranks to guide, coordinate and communicate the change and its activities.

8 8 Step 3 Create a Vision (& initiatives) for Change Kotter describes this as activities that, if designed and executed fast enough and well enough, will make your vision a reality. The next three steps are specifically targeted at engaging and enabling the organisation in the change: Step 4 Communicate the vision - Large-scale change can only occur when very significant numbers of stakeholders or employees amass under a common opportunity and align to the same purpose or vision. Step 5 Empower action - By removing barriers, for example, inefficient processes, organisational silos or hierarchies, leaders provide the freedom necessary for employees to work across boundaries and create real impact. Step 6 Create quick wins Kotter asserts that Wins are the molecules of results. They must be collected, categorized, and communicated early and often to track progress and energize your stakeholders to drive change. The two final steps are about implementing and sustaining or embedding change: Step 7 Build on the (initial) change - Leaders must adapt quickly to maintain momentum. Whatever the news ways of working, or removing misaligned processes, Leaders must determine what can be done every day to stay aligned to the vision. A good point to raise at this stage is are leaders balancing Change Management with Change Leadership Kotter suggests the following check list: Figure 9 John Kotter Check List for Leaders & Managers Step 8 Make it stick - To ensure new behaviours are repeatable and consistent over the longterm, it's important to define and communicate the alignment between these ideal behaviours and the organisation's success.

9 9 Therefore, the challenge for Leaders and Managers is to steer the stakeholders, align to the vision and to communicate, communicate and communicate effectively ad often. How can this be achieved? Within the S A Partners Enterprise Excellence Model and our Leadership & Coaching approach use a blend of proven approaches, balanced across the Purpose, Process and People elements that deliver alignment, engagement and improvement. These are used in a contingent manner based on the phase of change, client and organisation we are working in. How we Speak when Leading Change SoundWave was designed by Kevin Eyre, an Occupational Psychologist, based on significant research with senior level individuals from multiple organisations across different sectors, regions and cultures. It was designed for practitioners of Organisational Change and Improvement and comprises a suite of diagnostic and developmental resources which has a proven application and benefit in the areas of coaching, lean-sigma improvement employee engagement and leadership development SoundWave s point of departure is dialogue by improving the quality of dialogue across organisations, positive, productive and developmental outcomes occur. SoundWave.: Looks at the risk of under-using a voice as well as over-using it. Focuses on your strengths as a communicator. Offers narrative interpretation of your results which are particular to your own results. Considers your strengths in communication for the roles you will find easier to play. Considers the quality of your listening and speech to give you a perspective on dialogue.

10 10 Figure 10 - Kevin Eyre SoundWave The suite of diagnostics can be targeted towards an individual self-perception or 360 degree and/or team dynamics. A recent post in Linked In was a catalyst on how to synthesise various models to improve Leadership, Communication and Engagement: Figure 11 Unknown - What Great Leaders Say to Highly Engaged People

11 11 Synthesising the Models to Benefit Leaders, Managers and Individuals in a Productivity Improvement Environment As indicated above - the real challenge of course is to bring all of these approaches together in an integrated solution to power change through organisations and support people to accept the change as soon as possible motivating them and engaging their talents and commitment to make the change happen. By compressing the time spent in Shock, Denial, Frustration and Depression progressing quickly to Experiment, Decision and Integration therefore acceptance is a powerful transition. Figure 12 Time Compression in the Early, Foundation Phases of Change and Transformation Programmes The importance of applying the early Steps from the Kotter Model, for example, combined with clarity and regularity of early and continuous stakeholder engagement and Communications are essential enablers.

12 12 How S A Partners Can Help The S A Partners consulting and coaching team has considerable expertise in a proven, blended, integrated approach to Leadership & Coaching., part of our overall Enterprise Excellence Model See Figure 6. Figure 13 S A Partners Proven Leadership & Coaching Approach What does this look like in practice? By way of an example, the following shows 2 Companies who are undergoing complex change programmes. Company A is benefitting from the S A Partners approach, whilst Company B unfortunately - is undergoing a traditional change experience.

13 13 Change Curve: Company A Change Curve: Company B Compress Time in early phases of change 6 months to reach acceptance Balance today with tomorrow Understand People & Process Why? Shingo Model & Thinking: Traditional approach 12 months or more to reach acceptance Over emphasis of Today s Problems & Process No Vision Change priorities on a daily basis Simon Sinek Why, What, How Principles-based Thinking Behaviours & Systems Compelling Case For Improvement Firefighting culture fix the problem Do not get to root cause

14 14 Kotter s 8 Steps Hoshin Kanri Strategy Deployment & Alignment Key Behavioural Indicators (KBIs) & Key Performance Indicators (KPIs) Supportive Management Just Do It A lack of collaboration Situational Leadership Emotional Intelligence The Impact of How I Think & Behave Self awareness

15 15 Active Leadership How I use language and communicate in a CI environment Remote Leaders Organisation operates in Silos SoundWave Kata Coaching If you would like to know more about how our Leadership & Coaching services can help you with your complex change and transformation challenges, contact Simon Grogan Figures & References: Figure 1 Adaptation of Kubler-Ross Organisational Change Model. Based on Kübler-Ross, E., 1969, On Death and Dying Figure 2 John M Fisher - Personal, Emotional States Through Change. First Presented at the 10 th International Personal Construct Congress, Berlin, Figure 3 Abraham Maslow Hierarchy of Needs. "A Theory of Human Motivation" in Psychological Review, Figure 4 Maslow s Hierarchy of Needs & Alignment to Employee Engagement. Figure 5 Lean Iceberg Model Hines et al, 2008, Staying Lean, Thriving not just Surviving Figure 6 S A Partners Enterprise Excellence Model Figure 7 Kurt Lewin Organisational Change Model. Lewin, Kurt (June 1947). Frontiers in Group Dynamics: Concept, Method and Reality in Social Science; Social Equilibria and Social Change". Human Relations. Figure 8 John Kotter 8 Step Leadership Change Model. Leading Change, Figure 9 John Kotter Check List for Leaders & Managers. E-Book. Accelerate, Figure 10 - Kevin Eyre SoundWave Figure 11 Unknown - What Great Leaders Say to Highly Engaged People

16 16 Figure 12 Time Compression in the Early, Foundation Phases of Change and Transformation Programmes. Whitehead & Grogan. Figure 13 S A Partners Proven Leadership & Coaching Approach Other References: Blanchard Situational Leadership II Mike Rother, 2009, Toyota Kata Shingo Model, Shingo Institute, Jon M Hunstman School of Business, Utah State University. Simon Sinek, 2009, Start With Why: How Great Leaders Inspire Everyone to Take Action.