Some Principles for Organisational Change Johan Strümpfer © Johan P Strümpfer, Some Principles for Management Development Some Principles for Strategy Development

Dimensions for Business Improvement Interventions Strategy Leadership Communication [Organisational change] >>> Business improvement (organisational interventions) HAS to address all of these simultaneously to achieve sustainable and practical results.

Single and Double loop learning (Based on Argyris) Action Decided Outcome Desired Outcome Gap Single Loop Learning Double Loop Learning Deep Learning Process Process Shallow Learning Process Changes beliefs, World views, Paradigm, Theory in Practice, Mental Models Action Taken

Deep Learning Processes: Question Reflection Theory/Answer Test Concern Expectation Adapted form Handys Learning Wheel

EG UJ: Question Reflection Theory/Answer Test Concern Expectation Organisational Integration &cultural transformation How to integrate the people? Organisational Change Framework –cf eg. People focussed rollout processes Alignment & identification What worked? Not worked? Why?

Need for Change Vision Building Alignment Empower Action Create Wins Increase the Pace Change Task Force Cement the New Organisational Change Framework (Strumpfer/ Kotter)

Question Reflection Theory/Answer Test Concern Expectation Organisational Integration &cultural transformation How to integrate the people? Organisational Change Framework –cf eg. People focussed rollout processes Alignment & identification What worked? Not worked? Why? Topic of the Action learning Is this the right topic? Alignment? Solutions prohibited Values & beliefs

Solutions, Strategies & Experts There is nothing as problematic as solutions (Argyris & Schön,1967) The Berkeley experiments Solutions

9 WHAT IS THIS? With thanks to G de Wet

10 WHAT IS THIS?

11 WHAT IS THIS?

12 WHAT IS THIS?

13 WHAT ARE THESE? IMAGES MODELS

Multiple Perspective Exploration Viewpoints Viewpoint definitions Prioritisation of outcomes ( with causal logic) Activity models Build consensus on action

For each stakeholder.... How would THEY answer... 1.What is the input, output and transformation? 2.Who is the beneficiary (client/customer)? 3.Who are the actors in the transformation? 4.Who are the owners of the transformation? 5.Who are the decision makers of the process? 6.Why is this transformation assumed to be meaningful? (What assumptions underlie this perspective?) 7.What is the purpose of this transformation? 8.What are its measures of performance? 9.What environmental factors impact directly on this transformation? (Constraints)

16 Multiple views êHuman Systems are Different êPeople systems are purposeful êPeople systems are interpretative Technical perspective Organisational perspective Individual perspective

Practical Steps Phase 1: Determine topics of the leadership development program: Consensus building through the multiple perspective exploration: –Interviews –Build basic set of perspectives on what is required –Share & debate perspectives –Arrive at core set of required projects (= topics of the action learning) Phase 2: Roll-out the action organisation wide: Drive the projects as an action learning process involving the executive (30) –Projects will touch the wider organisation in terms of transformation & integration related projects as determined in Phase 1

Phase 2: Organisational Change Management Assumption: Perspectives exploration surfaces aspects of organisational change management to implement. Examples: Strategic repositioning, organisational culture shift, values & culture integration, vision development and buy-in, organisational structure change. Projects: Projects are formed around each of the chosen topics. –NB: Projects are Collaborative Projects (to be discussed) aimed at building consensus, alignment and commitment through conversation design.

Conversation Design

Basic conversation template Context Setting Choice of Framework* Question(s) To drive Conversation Debate Conclusions Decide Implications for Action Me/YouThey *More later

Process Design C F Q D C A C F Q D C A C F Q D C A C F Q D C A C F Q D C A C F Q D C A

Conversation Systems View Multiple simultaneous interlinked conversations Conversations give meaning to words The words we use is the world we live in Conversations build the agreement and commitments required for action Conversations yield the alignment we need Free-flowing conversations create space for creative insights and ideas to surface

Examples of Conversation Design Remaining Slides are real world reference examples & for illustrative discussion if required.

Exco Strategy Process Env Scan Env Scan Env Scan Strategy Task Group Environmental Scan Future Shaping Forces & Strategic Choices Future Shaping Forces & Strategic Choices: Tentative W/s 1 Strategic Choices W/s 2 Change Thrusts Strategic Choices Identified & Decided (some) Key Strategic change thrusts CEO conversation W/s 3 Implemen tation

Exco Strategy Process Env Scan Env Scan Env Scan Strategy Group Environmental Scan W/s 1 Strategic Choices W/s 2 Change Thrusts CEO conversation W/s 3 Implemen tation Three Inter-linked & synchronised Strategic Conversations Additional ones: Cluster Strategy Conversations Staff (Top 500) Cluster groups

Process Design Decision Support to MD Decision Facilitation for Exco Future Direction Conversation Creates shared view of requirements Improves quality of and confidence in vision Interaction with Board Builds shared map of future for successful transformation Creates fundamental support for future direction with Board They provide detailed input to map and share in map Cluster Exco Input & Implementation

Inq: Future & Future Bus Environement Trends FSF FBE Scenarios Mang. Conf Engagement Events Initiatives Suggestions Inter action with Board & EXCO Videos Apr Exco & Board Strat Session /4 5/3 Guardian Interact Sessions Workplace Roll-Out* Theme Specific Roll-Out * Apr - MayMay - JunJul - Sep Vision Confirmation Strategic Choices Initiatives List: Approved / Investigate / Rejects BU Planning Budget B. Score card Task Group 30/Jun Apply CMF * Change Governance & Support Feedback & Progress Monitoring GoodCo 2010 (Drive Initiatives) Inter action with wider GoodCo Results Communication Mar/Apr Process Overview Exco Exco Session pre Strat Session

Inq: Future & Future Bus Environement Trends FSF FBE Scenarios Mang. Conf Introduce & share possible futures Open the debate on the need for change Open debate on prefered course of action Engagement Events 5 Large group sessions targetting 750 people (+/- 30%) representative groups Present & communicate a vision Participatively identify strategic initiatives for GoodCo success(vision) ID Specific required actions Initiatives Suggestions Inter action with Board & EXCO Apr Exco & Board Strat Session /4 5/3 Guardian Interact Sessions All staff / countrywide Exco Driven, TG 2010 support Vision communication Future Process communication * Workplace Roll-Out* For identified BUs and work gourps * Leadership preparation and support on initiative roll-out / planning Initiative specific implpementation planning using 7S model to explore impact More detailed actions per initiatives BU plan input /content Theme Specific Roll-Out * For 7S themes: Roll-out / paticipative sessions For theme: Intergration & coordination Theme task ops representative work groups Output: Company wide Theme action plans Apr - MayMay - JunJul - Sep Vision Confirmation Strategic Choices against Balanced Scorecard Initiatives List: Approved / Investigate / Rejects Budgetting Task Group 30/Jun Apply CMF * Change Governance & Support Feedback & Progress Monitoring of BU Plans GoodCo 2010 (Drive Initiatives) Inter action with wider GoodCo Videos Exco Exco Session pre strat session Results Communication Exco & HR Driven Line Management involvement Video Based Feedback New Initiatives

GoodCo Really Succesful GoodCo Fail Then Now Short Term FUTURE FAIL 2010 Realistic & very credible failure scenarios for GoodCo. High Celebrating this at Management Conference. Realistic & very credible high achievement scenarios for GoodCo. MUCH better performance. Management Conference – GoodCos Performance CEO: Current Performance & how we got here. GoodCos Performance GoodCo New Current Situation What we did / did not do? What we did do to get here? Possible Future Environments

30 Participation Appreciate Current Situation Current Future Scenarios Desired Future Scenario Enterprise Design Strategies & Action Plans Planning Process

Conversation Design considerations: Keep the conversation alive Focus the conversation on the right things Keep the interest up Keep the topic and angle fresh Keep it meaningful Keep the conversation relevant to the concerns of the day (Practical relevance) –Eh…, how?

Practical Gap Action results Individual Expectations Rethink action within existing mental framework Level of surprise Size of gap, Magnitude of negative impact Determine action Rethink Mental Framework Limitation on extent of framework change Current corporate culture Number and extent of surprises corporate mind registers Openness to change of corporate mind Corporate mind shift