1. BENTLEY Building Organizational Change Capacity T HE C HANGING P ARADIGM OF C ONSULTING : A DJUSTING TO THE F AST -P ACED W ORLD 4 th International Conference on Management Consulting Vienna, Austria June 2009 Tony Buono Ken Kerber Bentley University Kerber & Associates

2. Scenario # 1 Scenario # 2 Two Organizational Change Scenarios

3. Scenario # 1Scenario # 2 Isolated transitionsMultiple, simultaneous transitions LinearCyclical, iterative Moderate paceAccelerating pace PredictableUnpredictable Delayed resultsInstantaneous results Time to recoverCascading, overlapping stress Two Worlds of Organizational Change Change Gap: [ Expectation of Change – History of Successfully Managing Change ]

4. Change Readiness A mental state that typically focuses on the extent to which organizational members recognize the need for a particular change at a specific point in time. Change Capacity The ability of an organization to change not just once, but as a normal course of events in response to and in anticipation of external shifts. Change Readiness v. Change Capacity Relatively Narrow Concept Broader Concept Preparation for Specific Change Foundation for Sustainable Change Requires Extensive Set of Interventions

5. Micro-LevelMeso-LevelMacro-Level Facilitative Organizational Culture Ongoing Strategizing Change-Supportive Infrastructure Sufficient Resources Understanding Different Change Approaches Willingness and Ability to Change Enhancing Organizational Change Capacity Enhancing Organizational Change Capacity

6. Conceptualizing Change : From Directed Change to Guided Changing Planned Change Guided Changing Directed Change Authority Acceptance Persuasive Communication Adapted from K.W. Kerber & A.F. Buono, “Rethinking Organizational Change,” Organization Development Journal (2005)

7. SHARE THE LEARNING SYSTEM-WIDE IMPLEMENT ACTIONS & IMPROVISE HOLD ACCOUNTABLE & LEARN ESTABLISH DIRECTION & DESIGN ACTIONS Guided Changing Spiral RE- [CONTINUE TO]

8. DimensionsDirected Change Planned Change Guided Changing Change Goals (Ends) Tightly defined, unchanging goal Clear goal with some modification, as needed Loosely defined direction Change Process (Means) Tightly constrained Flexible, participative Experimental Change Leadership (Role) Tell, order, or command Devise a plan to accomplish the goal Point the way, watch over, and instruct Changemaker Relationships Persuasion Influence Collaboration Pace of Change Urgent, fast, “just do it.” Go slow during planning to go fast during implementation Act quickly, improvise, learn and act again Distinctions Among the Approaches

9. When Is Each Approach to Change Appropriate? Low High Planned Guided Business Complexity Directed Socio-Technical Uncertainty Socio-Technical Uncertainty K.W. Kerber & A.F. Buono, “Rethinking Organizational Change,” Organization Development Journal (2005)

10. Micro-LevelMeso-LevelMacro-Level Acceptance of Different Change Approaches  Adopt a common, enterprise-wide framework for thinking about change  Widespread knowledge about different approaches to change & when each is appropriate  Develop deep expertise about change in the organization  Change coaching & consulting services  Change agent networks  Debrief change initiatives with a focus on learning from experience Change-supportive Infrastructure  Frequent meetings focused on identifying & critically assessing new opportunities  Low cost experiments with new ideas  Recognize & reward those who support, encourage, lead & share learning about change  Fluid structure that allows the formation of new groups easily  Systems to share knowledge, information & learning  Responsive /proactive training & education Change-facilitative Culture  Emphasis on learning and information sharing  Encouragement to ask questions & speak the truth  Empathizing with & valuing alternative viewpoints  Support for taking risks & applying innovative ideas  Tolerance of mistakes in the interest of learning  Value conflict for under- standing & creativity

11. Micro-LevelMeso-LevelMacro-Level Willingness and Ability to Change  Select, hire, evaluate & reward people based on their ability to thrive on change  Form diverse teams to encourage innovation and creativity  Develop, reward & promote supervisors and managers who enable change  Enhance the personal credibility of organizational leaders  Listen to, encourage, & reward mavericks and trailblazers  Create a climate of trust, honesty, & transparency Sufficient Resources  Designate an owner of the goal to develop change capacity  Devote resources to continually scanning the environment for new ideas  Encourage external contact, especially with customers  Appoint committed change sponsors for specific initiatives  Target key change initiatives with enough resources to get public successes  Shelter breakthroughs with their own budgets & people Ongoing Strategizing  Create a shared purpose  Think dynamically & systemically so that strategies can change quickly  Examine future markets, competitors, & opportunities  Factor future scenarios into today’s decisions  String together a series of momentary advantages  Create & communicate a change friendly identity both internally and externally

12. GlobalCom: $Multi-billon global technology leader focused on information infrastructures, services and solutions Project:New Global Integrated Services Delivery System Challenge:Long-term, complex initiative with uncertain dimensions Case Application

13. 1.Plot your results for Business Complexity and Socio-Technical Uncertainty on the grid to the left. 2. Plot your Constraints on the continuum below 0 1 2 3 4 5 6 7 8 9 10 DirectedPlanned Guided Assessing Change at GlobalCom Integrated Systems Delivery

14. Organizational Change Capacity (N=24) Micro-Level Interventions CASE ILLUSTRATION Target

15. Micro-Level Acceptance of Different Change Approaches  Adopt a common, enterprise-wide framework for thinking about change  Widespread knowledge about different approaches to change & when each is appropriate  Develop deep expertise about change in the organization  Change coaching & consulting services  Change agent networks  Debrief change initiatives with a focus on learning from experience Willingness and Ability to Change  Select, hire, evaluate & reward people based on their ability to thrive on change  Form diverse teams to encourage innovation and creativity  Develop, reward & promote supervisors and managers who enable change  Enhance the personal credibility of organizational leaders  Listen to, encourage, & reward mavericks and trailblazers  Create a climate of trust, honesty, & transparency Developing Organizational Change Capacity: Micro-Level Interventions Developing Organizational Change Capacity: Micro-Level Interventions

16. The Change Continuum “In Action”

17. Sustainable Change: A Question of Change Rhythm? Low High Business Complexity Socio-Technical Uncertainty Socio-Technical Uncertainty Authority Acceptance Persuasive Communication Change Capacity:  Micro-Level  Meso-Level  Macro-Level