CVE 5074 Leading Construction Operations Organizational Leadership Part V – Managing Change Part VI – Strategic Change

Organizational Leadership 1. Motivation of individuals 2. Shaping the organization 3. Directing/delegating tasks 4. Organizational culture 5. Changing the organization

Book Reports Today… Who Moved My Cheese The Power of Habits Eddie Lopizzo The Power of Habits Jake Holsinger

Book Reports Next Week… Leadership Secrets of Attila the Hun Cody Krueger Getting to Yes Spenser Pufferberger

Special Opportunity-1… New opportunity from CIAB Meeting A significant opportunity exists to improve leadership learning… 5 Engineering CEOs agree to lecture this class and meet with students.

Special Opportunity-2… The conditions… Extra class on 5 Saturdays; 0900 to 1200 March 28 to April 25 Must submit 5 written reports (1-page each) Guaranteed “A” if all conditions are met I need 100% participation I need a yes or no in 5 minutes

Change is (very) difficult… Why is it difficult??? What did you observe from the exercise? What can the leader do to make this change more successful?

Change is (very) difficult… Why?... the impact on peoples’ lives… Habit... conserves energy Mazlow priorities… survival and safety Chester Barnard… personal vs. organization New goals, opportunities... but will the employee benefit? The future ain’t what it used to be!!!! (author?)

Employee resistance to change Personal security jeopardized Change viewed as unnecessary Poor communications; poor planning Surprise, poor timing No personal input; people feel manipulated Lack of confidence the change will succeed No resources provided

Basic model for change Internal Appraisal External Appraisal Strengths & Weaknesses Core Competencies External Appraisal Threats & Opportunities Key Success Factors Creation Of Strategy Evaluation & Choice of Options Responsibility Social Organizational Values Implementation Of Change

Another viewpoint… Use the VCR analysis… Use the stakeholder approach Values… you, the firm, the profession Consequences & Contingencies Rights & Responsibilities of the workers Use the stakeholder approach Who are the stakeholders; who is impacted What is the impact of the change on them

Recognizing the need for change Stakeholder input… MBWA Customer feedback; sales records Hard data on problems Concrete examples needed Calculate benefits and costs of change Obtain feedback from employees

The Change Process Create an atmosphere for change Recognize the need for change Champion the change… and the pioneers Planning & brainstorming Structure for change Motivational techniques for change Communicating the change Facilitate the change Follow-up and feedback Change is the leader’s job!!

Brainstorming techniques Set time limits Record all ideas; quantity vs. quality Avoid judgment, detail or analysis Neutral controller Light free flowing atmosphere Non-competitive; all contribute Review and categorize at end

Championing change Limit change to significant items Relate change to "strategic plans" Relate change to external events Demonstrate value to employees Generate enthusiasm ! ! ! ! Prepare the audience; timing Identify and eliminate barriers Personal commitment… lead from the front!

Pitfalls to change… Commitment at the top is essential Commitment lower down is key to success Decentralize the planning & delegate! Inflexible plans are unrealistic… Normal operations vs. incremental change Internal politics... the informal organization Over control… stifles creativity & energy Lack of training… is unfair Lack of communications… causes confusion

Motivational techniques Leadership.... be involved Demonstrate commitment Change is normal; necessary; routine Emphasize the positive; benefits Encourage & assist personal growth Tolerate mistakes Allow time for training Neutralize the negative Celebrate success!!!

Communicating the change Have a vision! Determine stakeholders... explain the vision! Provide clear; convincing information Bad news simple and straightforward Obtain feedback; answer questions; be honest Provide mechanisms for worker input Use active listening

Example: A E B D C Regional Village Build LAN/WAN Seamless interaction Hardware Software Conserve manpower Share skills Level workload Train regional PMs Improve customer support E A B C D Region HQ

Facilitate change Set direction & vision Delegate authority Clarify new challenges Protect "idea" people Tolerate failure Recognize innovators Establish networks for innovators Reward the champions!!!

Follow-up & feedback Grass roots; MBWA Ensure time for management of process Publish status; results; rewards Revise plan if needed; adjust! Keep employees informed Be available & approachable

Employee acceptance of change Personal gain & security New opportunity or challenge recognized More interesting work Right thing to do; makes sense Right timing Respect the champions Believe in the leader

A summary on change... Investigate the environment for change; EEI Develop a clear vision Define identifiable milestones; obtain input Outline transition in detail; neutralize uncertainty Establish clear tasks and impacts Communicate the plan and the actors Provide status updates Obtain feedback Role of key individuals; gaining commitment Personal briefings; explain rationale and benefits Involve the employees; obtain input Monitor level of support; get continuous feedback

End of Part 1

CVE 5074 Leading Construction Operations Organizational Leadership Part V – Strategic Change

Organizational Leadership 1. Motivation of individuals 2. Shaping the organization 3. Directing/delegating tasks 4. Organizational culture 5. Changing the organization... strategically

Strategic Planning Organizational Personal Set a vision of the future for the organization Establishing an action plan to get there Providing an organization to build the future Personal Deciding where you want to go Laying the ground work for that future Taking one small step at a time

What strategic planning is not... Not a set of techniques Not forecasting the future Not a set of decisions Not an attempt to eliminate risk

What strategic planning is... A continuous process A series of systematic decisions An organization to execute decisions A system of measurement of progress A system of feedback

Success factors Get rid of non-productive functions Do we still need buggy whips? If not committed to “X” today… would we start? Plant the seeds for tomorrow’s success Think out of the box, look for new ways Backward plan Must have upper management support Resources Personnel Accountability

Basic planning model External Appraisal Internal Appraisal Threats & Opportunities Key Success Factors Internal Appraisal Strengths & Weaknesses Core Competencies Creation Of Strategy Evaluation & Choice Of Strategy Responsibility Social Managerial Values Implementation Of Strategy

Strategic Change Cycle Review the need 1 Monitor & Get Feedback 4 Develop Plan 2 3 Implement

FIT Construction Management Program Example 2: FIT Construction Management Program 2004… Teach 2 courses & develop strategic plan Enhance CM program within CE Research new programs 2005… Launch new CM course Obtain input from industry & students Expand industry involvement in CM courses 2006… Develop 4-year undergrad CM program Research existing programs & accreditation Expand industry internships 2007… Launch 4-year undergrad CM program Obtain university approval & resources Monitor progress & success Update & revise strategic plan 1 2 3 4

Example 3: Project Management S P T P P M Q D Enhanced Productivity V BST System Implementation - Upgrades Financial Management Capabilities S P T P P M Q D Enhanced Productivity V I u e P M M C a s r P T e S l i i g o r r r O t c o a t i 9 y n e c i f n i A Q d e s i c a u A u n t i d / r i e s g o t Q n s s C Improved Quality Project Management Operations Integration s r d s k k g t w o r r a e o M d M i w n v t w t Q t a D e e T D R N e Skill Sharing S N e A h h u V i l l C e c e c k T r T S T T S LAN/WAN Development - Upgrades Computer Resources and Networking Capabilities

Personal plan Where do you want to be in 5 years What’s your plan to get there What actions are needed Training Experience Resources How will you measure progress Will you need a mentor

Individual planning exercise If you want to be a PE/PM in 5 years Develop a personal plan to achieve this objective Follow the basic planning model What are the key steps in your plan – be specific What is the timing – set dates

Individual planning exercise Example: My goal is XXXX (be realistic!) What training do you need? Where, when, how? Funding? What experience do you need? Do you have to pass any tests or get certified? How will you measure progress? Who will be your mentor?

Pitfalls of Planning No commitment at the top No commitment lower down Inflexibility of plans Change vs. daily operations Internal politics Over control Lack of training Lack of communications

If you are going no where in particular… you’ll probably get there ! Conclusion If you are going no where in particular… you’ll probably get there !

Book Reports Today… Who Moved My Cheese The Power of Habits Eddie Lopizzo The Power of Habits Jake Holsinger

The men decided that computer should definitely be of the feminine gender because: 1. No one but their creator understands their internal logic. 2. The native language they use to communicate with other computers is incomprehensible to everyone else. 3. Even the smallest mistakes are stored in long term memory for possible later review.  4. As soon as you make a commitment to one, you constantly find yourself spending more money on accessories for it.   The women concluded that computers should be masculine because: 1. In order to do anything with them, you have to turn them on. 2. They have a lot of data but still can't think for themselves. 3. They are supposed to help you solve problems, but half the time they ARE the problem. 4. As soon as you commit to one, you realize that if you had waited a little longer you could have gotten a better model!

Book Reports Monday… You Just Don’t Understand Alexis Miller Alex Lasurdo

Company Policy Start with a cage containing five monkeys. Inside the cage, hang a banana on a string and place a set of stairs under it.  Before long, a monkey will go to the stairs and start to climb towards the banana.  As soon as he touches the stairs, spray all of the other monkeys with cold water.  After a while, another monkey makes an attempt with the same result; all the other monkeys are sprayed with cold water.  Pretty soon, when another monkey tries to climb the stairs, the other monkeys will try to prevent it. Now, put away the cold water . Remove one monkey from the cage and replace it with a new one.  The new monkey sees the banana and wants to climb the stairs.  To his surprise and horror, all of the other monkeys attack him.  After another attempt and attack, he knows that if he tries to climb the stairs, he will be assaulted. Next, remove another of the original five monkeys and replace it with a new one  . The newcomer goes to the stairs and is attacked.  The previous newcomer takes part in the punishment with enthusiasm!  Likewise, replace a third original monkey with a new one, then a fourth, then the fifth. Every time the newest monkey takes to the stairs, he is attacked.  Most of the monkeys that are beating him have no idea why they are not permitted to climb the stairs or why they are participating in the beating of the newest monkey. After replacing all the original monkeys, none of the remaining monkeys have ever been sprayed with cold water. Nevertheless, no monkey ever again approaches the stairs to try for the banana.  Why not?  Because as far as they know that's the way it's always been done around here. And that, my friends, is how a company policy begins.

Atmosphere for change Discuss new concepts frequently Show enthusiasm for new things Logical methods… do research & analysis Matrix Attribute listing Force field analysis Design/decision tree Intuitive methods… big picture Imagery Draw or diagram Analogies Brainstorming

Steiner model Planning Studies Organizational Purpose Company Missions & Long Range Objectives Policies Strategies Medium Range Programs & Objectives Policies Strategies Short Range Plans & Goals, Targets, Tactics Values of Top Managers Implementation of Plans Review & Evaluation External & Internal Opportunities Problems Strengths & Weaknesses Feasibility Testing