December 2006 Change Management for Development BTC/CTB Brussels July 7-8, 2009 August 25-26, 2009 Holger Nauheimer and Bernd Weber A GLOBAL PARTNER WHO MAKES CHANGE HAPPEN IN COMPLEX ENVIRONMENTS

Warming up & introduction of participants I like sustainability I don’t change if not needed I seek for changes in my way of working I adapt new things easily I am ready to change when required I feel change resistence when I am expected to change Place yourself mentally on a grid for the two dimensions – external and internal changeability

Warming up & introduction of participants Normally How do you see change? How du you assess yourself? What makes it right for you to stand at the position where you are? Is there any direction you would like to take? What would it take from you to go there? The people you work with, where would you place them on this grid? I like sustainability I don’t change if not needed I seek for changes in my way of working I adapt new things easily I am ready to change when required I feel change resistence when I am expected to change

Warming up & introduction of participants I like sustainability I don’t change if not needed I seek for changes in my way of working I adapt new things easily I am ready to change when required I feel change resistence when I am expected to change Many people believe they are HERE… …but believe others around them are HERE… or …HERE

About Change The dilemma with change is that everyone likes to talk about it, but very few have insight into their own willingness to change, let alone their ability to influence change. Those who see the need for change often want others to change first. That applies to adversaries and onlookers, but also to analysts and practitioners. Why is this the case? (Chris Spies, 2006) How to construct an environment in which people in conflict can safely explore new ideas towards a better future?

Individual -> chance is internal process -> reflection of growth Group -> facilitation -> focused on dialogue Organization -> management -> focused to decicions & measurement Environment -> stakeholders -> megadrends -> uncontrolled Change Levels

Measuring Tool This tool enables you to Understand how a change project is perceived and understood Confront perceptions of different stakeholders This tool enables you to Understand how a change project is perceived and understood Confront perceptions of different stakeholders What is it? Information Is the project known? Feasibility Is the project considered realistic? Attraction Do people buy in? Legitimacy Is the project perceived as really necessary?

Principles of Change Principles to observe in change processes: 1. Organizational change is a process of human interaction created by dialogue. Each actor has a distinct „mental model“ of the change process which is generated by individual life-time experience, personal filters and person-specific emotions. 2. Organizations are complex social systems (so-called “non-trivial machines”). The behavior of an organization in a change process cannot be predicted with absolute certainty; it can only be optimized. 3. Successful organizations are driven by passion and responsibility of their members; they depend on deep alignment around common purpose and a continuous development of internal capacity to embrace uncertainty.

Changing Paradigms

* From The Fifth Discipline Fieldbook by Peter M. Senge, Art Kleiner, Charlotte Roberts, Rick Ross, Bryan Smith The Ladder of Inference

Changing Paradigms (2)

Features of a Complex System Rich interconnections Lots of redundancy Non-equilibrium (at the edge of chaos) Auto-poietic Can only be understood as a whole

Change management Project: 1. Planning 2. Implementation 3. Measuring IMPORTANT: Kotter’s 8 steps Planning and schedules Known and predictable Change Facilitation Process: 1. Preparation 2. Starting change journey 3. Living the change journey 4. Developing skills to work in constant change IMPORTANT: Common principles Forums and dialogue Awareness and sensitivity Unknown and unpredictable Mechanistic and repeating work Small groups plan Employees implement the plan Complex and thinking work All construct and implement plans Change management & leadership

”It is essential for leaders to understand the change process. Moral purpose without an understanding of the change process is moral martyrdom. Having innovative ideas, and being good at the change process, is not the same thing. Indeed, the case can be made that those firmly committed to their own ideas are not necessarily good change agents because the latter involves developing commitment with others who may not be so enamoured by the ideas.” Michael Fullan: Understand the process of change

6 guidelines for understanding the process of change: (1)The goal is not to innovate the most, but rather to innovate selectively with coherence; (2)it is not enough to have the best ideas, you must work through a process where others assess and come to find collective meaning and commitment to new ways; (3) appreciate early difficulties of trying something new — what I call the implementation dip. It is important to know, for example, that no matter how much pre-implementation preparation, the first six months or so of implementation will be bumpy; (4) redefine resistance as a potential positive force. Naysayers sometimes have good points, and they are crucial concerning the politics of implementation. This doesn’t mean that you listen to naysayers endlessly, but that you look for ways to address their concerns; (5) reculturing is the name of the game. Much change is structural, and superficial. The change required is in the culture of what people value and how they work together to accomplish it; (6) never a checklist, always complexity. There is no step-by-step shortcut to transformation; it involves the hard day-to-day work of reculturing Michael Fullan: Understand the process of change

1. You can't mandate what matters 2. Change is a journey not a blueprint 3. Problems are our friends 4. Vision and strategic planning come later 5. Individualism and collectivism must have equal power 6. Neither centralization nor decentralization works 7. Connection with the wider environment is critical for success 8. Every person is a change agent Complexity of change process Fullan’s (1993) eight basic principles about change:

Ralph Stacey’s Decision Matrix

Tools for Staff Involvement in Change

:: Change Needs Engagement :: Creating engagement means! 1.Widening the circle of involvement 2.Connecting people to each other and strategy 3.Creating collaboration for action 4.Create democratic process for strategy alignment Creating Engagement Means

Human Needs in Change: Max-Neef Subsistence Freedom from Want (Income/Livelihood) Protection Freedom from Fear and Abuse (Ground Rules) Affection Freedom from Rejection (Dignity/Teamwork) Understanding Freedom from Uncertainty (Information Access) Participation Freedom from Exclusion (Inclusivity) Leisure Freedom from Exhaustion (Stress Reduction) Creation Freedom to Create Your Own Future (New Ideas) Identity Freedom To Be Proud of Yourself (Self-Esteem) Freedom Freedom from Coercion (Autonomy)

Theory U (Otto Scharmer) suspending redirecting letting go Seeing with fresh eyes Sensing from the field Prototyping the new by linking head, heart, hand Crystallizing vision and intention embodying enacting letting come Presencing connecting to Source Downloading past patterns Performing by operating from the whole VoF Open Will VoC Open Heart VoJ Open Mind

Changing Conversations as We Go Through the U 1 Downloading: Talking nice 2 Debate: Talking tough 3 Dialogue: Reflective inquiry 4 Presencing: Generative flow Speaking from what I think Divergent views: I am my point of view Adaptive system (say what you think) Speaking from seeing myself as part of the whole From defending to inquiry into viewpoints Self-reflective system (reflect on your part) Speaking from what they want to hear Polite routines, empty phrases Autistic system (not saying what you think) Speaking from what is moving through Stilness, collective creativity, flow Generative system (identity shift: authentic self)

Prototyping – Critical Questions 1. Relevant: Does it matter to the key stakeholders involved? 2. Right: Have you got the right dimensions? Does the microcosm mirror the whole? 3. Revolutionary: Can it change the system? Do you address the systemic root issues? 4. Rapid: Can you do it quickly? 5. Rough: Can you do it small scale? 6. Relationally effective: Are you leveraging the existing networks and competencies? 7. Replicable: Can you scale it?