LEADERSHIP INITIATIVE COUNTY OF RIVERSIDE 4. ORGANIZATION DEVELOPMENT● CHANGE ● EMPLOYEE ENGAGEMENT

Culture Change The tribal wisdom of the Dakota Indians, passed on from one generation to the next, says that when you discover that you are riding a dead horse, the best strategy is to dismount. But in modern business, education and government, because heavy investment factors are taken into consideration, other strategies are often tried with dead horses, including the following: 1. Buying a stronger whip. 2. Changing riders. 3. Threatening the horse with termination. 4. Appointing a committee to study the horse. 5. Arranging to visit other sites to see how they ride dead horses.

6. Lowering the standards so that dead horses can be included. 7. Reclassifying the dead horse as "living-impaired." 8. Hiring outside contractors to ride the dead horse. 9. Harnessing several dead horses together to increase speed. 10. Providing additional funding and/or training to increase the dead horse's performance. 11. Doing a productivity study to see if lighter riders would improve the dead horse's performance. 12. Declaring that the dead horse carries lower overhead and therefore contributes more to the bottom line than some other horses. 13. Rewriting the expected performance requirements for all horses. And, as a final strategy: 14. Promoting the dead horse into a leadership position and hiring an outside vendor to cause a dead horse culture.

What we will cover  Typical organization challenges  Overview of Organization Development- what it is and steps in the process  Identify various tools, strategies and interventions  Employee Engagement and how that fits with OD  Change process and what it takes to sustain change.

More available options rather than…. “We trained hard, but it seemed that every time we were beginning to form up into teams or were met with a new situation we would be reorganized, a wonderful method for creating the illusion of progress while producing confusion, inefficiency, and demoralization.” Gaius Petronius Arbiter, ancient Roman author of the “Satyricon”, circa A.D. 60.

The leader’s challenge “How to (a) fully mobilize the energy of the organization’s human resources toward achievement of high performance and (b) at the same time, so organize the work, the work environment, the communications systems and the relationships of people, that individuals need for self worth, growth and satisfaction are significantly met at work.” Warren Bennis

Table case studies: As a group, read your scenarios and talk about how you would address the situation. Identify: 1. The problem 2. Outcome desired 3. Method/action to get from here to there 4. Rationale for choosing this method/action You have 10 minutes to come to agreement. Select someone to do a 2 minute report out.

Organization development is… the application of behavioral science technology to the planning and management of systemic organization change in the name of improved organization performance.

Goals of Organization Development Improved performance and effectiveness Improved results Improved quality of work life Development of greater individual and organizational capacity

W HY O RGANIZATIONS C HANGE : POWERFUL PAIN IMMINENT DANGER POWERFUL ENEMY INSPIRED LEADERSHIP

OD is Action Research Collect valid data. To make informed decisions That generate energy to take action.

OD is about: EQUIFINALITY

Organization Development Two approaches: StructuralBehavioral

Typical OD process: 1. Presented Problem 2. Collect data and diagnose the real problem 3. With the client, select one or more interventions, and design a rollout plan 4. Execute on the plan 5. Monitor for intended results 6. Adjust the plan 7. Follow up 8. Evaluation

Organizational Subsystems (Lots of moving parts) Managerial subsystem Strategic subsystem Human- cultural subsystem Technological subsystem Structural subsystem Inputs Which Energize the Organization Organizational Outputs Input-output flow of materials, energy, and information Production of goods and services at a level of efficiency and effectiveness which will influence future resource availability and systems operation Human, Financial, Informational, and Material Resources Kast & Rosenswieg Throughputs Whole System Views

Human System Levels Individual Group/Team Inter-group Organization Inter-organization

Whole System Views Weisbord Six Box Model Purpose Structure Rewards Helpful Mechanisms Relationships Leadership Organization System Alignment Environment Strategy Structure Culture Systems Behavior Need to take a 5,000 foot view

Start here at the presented problem You have arrived safely! Yay! Systems view Plot your specific course Problem detected May need to make adjustments

Purpose What business are we in? Structure How do we divide up the work? Rewards Is there an incentive for doing all that needs doing? Helpful Mechanisms Have we adequate coordinating technologies? Relationships How do we manage conflict (coordinate) among people? With our technologies? Leadership Is someone keeping the boxes in balance? Outside Environment Everything else. What constraints and demands dies it impose? Weisbord Six Box Model

Key Point: start with a model  Weisbord 6 Box  Burke Litwin  McKinsey 7 “S”  Great Place to Work  Best Practice Models  6 CELL MODEL

Mind your Perspective!! Bolman and Deal

Back of a napkin model (systems fit) To get an idea what needs to be changed

Napkin model: systems equilibrium work culture or engagement decision-making centralized decentralized routinecomplex sucks or disengaged fantastic or fully engaged

Napkin model – rubber band effect work culture or engagement decision-making centralized decentralized routinecomplex sucks or disengaged fantastic or fully engaged

Napkin model: bow and arrow work culture or engagement decision-making centralized decentralized routine complex sucks or disengaged fantastic or fully engaged

You have an idea of the gap …between what you want and what is. … Then what?

Issues Interventions Individual Knowledge/Skill Motivation Satisfaction Development Training & education Coaching Mentoring Career Development Job Design Assessments and feedback Learning labs - journaling Group Alignment Composition Roles & Relationships Norms & Processes Spirit Appreciative Inquiry Role Clarification/ responsibility charting Relationship development – conflict resolution Team Building Eidetics Confrontation meetings Outdoor Adventure Inter-group Alignment Roles & Relationships Work Flow/processes Structure Polarity Management Interdependence Clarification Shared Goal Setting Role Clarification Organization Design Interface Structures and Processes Perception Sharing

Issues Interventions Organization* Mission, Vision Strategy Structure, Culture, Systems Alignment Performance Planning Strategy Formulation Organization Design Culture Change Information Systems HR Systems Talent Management Productivity Improvement Appreciative Inquiry Summits Simulations Open Space Conferences Labor Management Cooperation Inter-organization* Leadership Alignment Roles & Relationships Processes Future Search Stakeholder Conference Coalition and Alliance Building Leadership Structures & Processes Planning Role Clarification Polarity Management Conference

1. M ANAGING THREE SYSTEMS not here not here not here (anymore) (solely) (yet) past transition future What we need to know about change

C HANGING FROM ‘ WHAT IS ’ TO THE DESIRED FUTURE STATE START with “WHAT IS” NOW DESIRED FUTURE STATE TO Desired future

What the change path looks like

C HANGING FROM ‘ WHAT IS ’ TO THE DESIRED FUTURE STATE Valley of DESPAIR START with “WHAT IS” DESIRED FUTURE OUTCOMES

∆= VxDxF>R The change formula: success

Change tends not to be embraced

Don’t forget the 4 basic human fears: 1. Rejection 2. Failure 3. Being wrong 4. Being emotionally uncomfortable

Informal system behind the formal

NORMS Formal Organization Org chart Job descriptions P & P PR about who we are Mission-vision-values… Who’s really in charge and the way we really do things around here

Norms are powerful in maintaining behavior

What everyone hopes to find!

W HAT ’ S PREDICTABLE DURING ANY CHANGE  High uncertainty – low stability *  High perceived levels of perceived inconsistency  High emotional stress on people  High energy (often undirected) *  Control becomes a major issue *  Conflict increases  Blaming is rampant

Key point to remember: The system must first attain stability and then satisfaction

Name of the change game: per●sist●ence pər ˈ sistəns noun firm or obstinate continuance in a course of action in spite of difficulty or opposition. "companies must have patience and persistence, but the rewards are there"

The key to successful and sustained change…… Employee Engagement

Employee engagement begins with the relationship you develop with your employees

What is Employee Engagement?

ayer_detailpage&v=IZA94smSkQg EQ2 Emotional Intelligence and Employee Engagement

If these stats are true…. The most recent Hay study findings (validated 2014) 53% of US workforce is “not engaged” (they are going through the motions) 18% of US workforce is “actively disengaged” (acting out, not coming to work, in or starting litigation)

Do the math In our County budget ~$5 billion (rounding up), making that portion estimated for salaries and benefits roughly $1,600,000,000 RivCo FTEs ~ 16,000 = 2880 employees = 18% actively disengaged x 2080 hrs/yr pp = 5,990,400 unproductive hours X $25 /hr =

$14,976,000 = the cost of ‘actively disengaged employees’

Gallup said 97% workforce are ignored + disengaged

47% of federal, state, and local government employees said they are engaged* 2012 and 2014 Public Sector Employee Engagement Surveys conducted by IPMA-HR

Employee Effectiveness Model Hay Group Engagement & Enablement are Both Essential for Optimum Performance clear & promising direction confidence in leaders quality & customer focus respect & recognition development opportunities pay & benefits performance management authority & empowerment resources training collaboration work, structure & process Drivers Employee Effectiveness Engagement Commitment Discretionary Effort Enablement Optimized Roles Supportive Environment Attraction & Retention of Talent Customer Loyalty Innovation Enhanced Corporate Reputation Productivity Financial Performance

Case: Arrowhead County, USA Instructions: 1.Apply the Systems Fit Model to Arrowhead County. 2.Show where you think are the culture (engagement/ quality of work life), decision-making and work/ technology points on the model axes. 3.What is your rationale? 4. Decide on your most important desired outcome. 5. Brainstorm change strategies and first steps to achieve your desired outcome. 6. Select a reporter(s) to report out.

What contributes to disengagement? What do you think?

The Three Signs of a Miserable Job Lesson #1 Anonymity –All human beings need to be understood and appreciated for their unique qualities by someone in a position of authority. Patrick Lencioni

The Three Signs of a Miserable Job Lesson #2 Irrelevance – Employees need to know what the connection is between the work, the organization purpose and the satisfaction of another person or group of people.

The Three Signs of a Miserable Job Patrick Lesson #3 Immeasurement – Employees need to be able to gauge their progress and level of contribution for themselves. Without a tangible means of assessing success or failure, motivation eventually deteriorates as people see themselves as unable to control their own fate.

from Miserable” to “Meaningful” 1. Show you care: Get to know your employees personally. 2. Link employee activities to organization vision and strategy. 3. Help employees find meaningful measurements so they can track their own progress.

High-performance organizations already know: Employees want to know it matters if they don’t show up. Employees want to contribute. Employees want to develop. Employees want to make a difference. Employees ARE our technology !

For public sector employees

12 Employee Engagement Questions 1. Do you know what is expected of you at work? 2. Do you have the materials and equipment you need to do your work right? 3. At work, do you have the opportunity to do what you do best every day? 4. In the last seven days, have you received recognition or praise for doing good work? 5. Does your supervisor, or someone at work, seem to care about you as a person? 6. Is there someone at work who encourages your development? 7. At work, do your opinions seem to count? 8. Does the mission/purpose of your company make you feel your job is important? 9. Are your associates (fellow employees) committed to doing quality work? 10. Do you have a best friend at work? 11. In the last six months, has someone at work talked to you about your progress? 12. In the last year, have you had opportunities at work to learn and grow?

Wrap up: comments/questions?