ffirs.indd viii 8/20/10 12:54:07 PM More Praise for the Second Edition of Beyond Change Management “Once again, Dean and Linda have nailed it! Beyond Change Management is an extraordinary book examining the shifts in change management that have occurred over the years. This book offers real, practical solutions for change practitioners to become extraordinary conscious change leaders.” —Darlene Meister, director, Unified Change Management, United States House of Representatives “Entering the offices recently of a highly respected Fortune 500 company, I was stunned by the enormity of change they were facing and at the same time how ill-equipped they were to deal with the challenges that lay ahead of them. They had little capacity to lead and manage the change required. And, of course, consulting firms were swarming all over them. They needed this book by the Andersons to help them. In fact, Chapter Five alone on building organizational capability is worth the price of the book.” —W. Warner Burke, Ph.D., Edward Lee Thorndike Professor of Psychology and Education; chair, Department of Organization and Leadership; program coordinator, Graduate Programs in Social-Organizational Psychology, Teachers College, Columbia University “Beyond Change Management is a must-read for today’s C-Suite executives and those who lead organizational change. Change is a fact of life in all successful businesses. Based on this breakthrough construct, we now view our approach to transformational change as a strategic advantage. It is a way of thinking and organizing each critical systemwide initiative for our healthcare system.” —Alan Yordy, president and chief mission officer, PeaceHealth “While the first editions were excellent to begin with, these enhanced second editions of Beyond Change Management and The Change Leader’s Roadmap are even better with age. The additional years of exp erience deep en t he author’s articulation of t he links b etween theory and practice. These books are outstanding resources for both organization change consultants and organization system leaders. Having a roadmap in common promotes the teamwork required for complex adaptive and continually evolving change efforts.” —Charles Seashore, Ph.D., Malcolm Knowles Chair of Adult Learning, Fielding Graduate University, Santa Barbara, California “Dean and Linda have broken the code by integrating the leadership of people and culture with business content to deliver results from change. They are unquestionably the experts in leading transformation in business. This book reveals their wisdom.” —Pete Fox, general manager, Corporate Accounts Microsoft US “For today’s leaders and managers, the promise of ‘change management’ seems to be everywhere, but unfortunately not how to achieve real change results. That gap is ably filled by the Andersons who use their more than sixty years of combined experience to clearly explain what is needed and how to do it. Their discussions of a multidimensional, process-oriented ffirs.indd i 8/20/10 12:53:58 PM approach for achieving transformational results and what it takes to be a conscious change leader should be required reading in all OD and MBA programs.” —Robert J. Marshak, Ph.D., organizational change consultant; senior scholar in residence, MSOD Program American University “In every generation there are creative and disciplined mapmakers who provide clear guidance to those whose paths will take them on similar journeys. Dean Anderson and Linda Ackerman Anderson are this generation’s mapmakers. Their books are rich, resilient, comprehensive and innovative guides t hat enable change le aders and consultants to practice their trades with heightened awareness and skill. Their grasp of the multiple dimensions of leading successful transformation help us recognize both the practical and the wise.” —David S. Surrenda, Ph. D., author, Retooling on the Run “The comprehensive and pragmatic thinking in this book has truly taken my company and myself beyond change management. This is a must-read for all consultants and executives who aim to master successful implementations in o rganizations—and who does not have that asp iration? This is no t academia; t his is t he ess ence o f ma ny y ears o f p ractitioners’ experience. And it works!” —Thomas Fischer, director COO, Valcon Management Consultants A/S “Transformative times r equire tra nsforming t he wa y w e c hange! This b ook c hallenges, equips and encourages leaders to understand how to deliver breakthrough results. It is not just about change . . . it is about YOU as a leader in these transformative times.” —Professor Todd D. Jick Columbia Business School President, Global Leadership Services “In Beyond Change Management and the Change Leader’s Roadmap, Dean and Linda provide practitioners and executives not only the how (tools) but the why (concepts). If you are looking for a comprehensive treatment of the tricky journey of transformation, this is it.” —Christopher G. Worley, Center for Effective Organizations, University of Southern California; former director, MSOD Program at Pepperdine University “Want a well-documented and valuable book for moving beyond change management–one that can reduce work and improve results? Well, this is that book. It’s for those who are serious about their effectiveness in the face of change.” —Mel Toomey, LHD, scholar in residence for Master of Arts in Organizational Leadership Center for Leadership Studies, The Graduate Institute “In today’s dynamic business environment a vital competency every senior executive must bring to his/her o rganization is no t just change management but change leadership. This book is a must-read for any such executive as it creates a comprehensive roadmap for change by offering key concepts, powerful insights, relevant examples and practical how to’s.” —Richard Whiteley, cofounder, The Forum Corporation; author, The Customer-Driven Company ffirs.indd ii 8/20/10 12:54:03 PM “Beyond C hange Management i s a n ess ential b ook f or a nyone a ttempting t o under stand and manage complex change, especially today’s health care leaders. The book offers a comprehensive a nd p ractical guide t hat will hel p y ou g et c hange r ight t he first time . It will significantly increase your likelihood of success and lower your risk of costly setbacks. We have used the Being First methodology successfully on a variety of difficult organizational change ini tiatives inc luding major c linical q uality improvement a nd s afety initiatives, as well as technology implementations such as electronic health record and enterprise resource planning systems. Based on more than fifteen years of experience successfully managing complex clinical and operational change, I highly recommend Beyond Change Management and its companion text, the Change Leader’s Roadmap.” —John Haughom, M.D., senior vice president, Clinical Quality and Patient Safety, PeaceHealth “Beyond Change Management is yet another extraordinary resource from Dean Anderson and L inda Ackerman Anderson. There is nob ody more qualified to teach organizational transformation to beginners as well as seasoned professionals. This book should be required reading for anyone engaged in change management!” —Rayona Sharpnack, founder and CEO, Institute for Women’s Leadership “There is a p owerful energetic force inside all of us t hat, once unle ashed, can make any change a re ality. Beyond C hange M anagement ca ptures t hat ess ence wi th passio n a nd purpose.” —Richard Leider, author, Repacking Your Bags and The Power of Purpose “Beyond Change Management and the Change Leader’s Roadmap are the best sources I know to learn how to lead and excel at change and business strategy execution.” —Eric Dillon, chief operating officer, Servus Credit Union Ltd. “Even t he exp ert a nd exp erienced c hange p ractitioner will b e h umbled b y t his b ook. The leaders we support require us to transform our skill set so they can transform their organizations. This book brings together the totality of the most relevant and applicable approaches to advancing change successfully, but more important it fills the gap we all fundamentally need—how to move ourselves and our organizations to achieve transformative change.” —Polly Ragusa, director, Organization and Learning Development, Cisco “This s econd edi tion o f t he p ioneering b ook Beyond C hange M anagement co ntinues t o break ne w gr ound in exp laining w hat tra nsformational c hange is all a bout, a nd w hat i t takes to lead and make it happen. The authors present a straightforward account of transformational change combining relevant concepts and approaches with their own extensive experience hel ping o rganizations tra nsform t hemselves. The b ook is hig hly inf ormative, stimulating, and inspiring.” —Thomas G. Cummings, professor and chair, Department of Management and Organization, Marshall School of Business, University of Southern California ffirs.indd iii 8/20/10 12:54:03 PM “The Andersons have a proven track record in the field of Organization Development. This most recent contribution furthers and reconfirms their reputation for exceptional contributions. Their work provides us with a systematic integration of the most recent thinking and practices in OD—essential reading for both managers and OD consultants.” —Peter F. Sorensen, Ph.D., director, Ph.D. and Masters Programs in Organization Development, Benedictine University “Dean Anderson and Linda Ackerman Anderson remind us that leading change continues to be a cr itical capability for organizations who want to thrive in t he twenty-first century. They revive the solid wisdom of change leaders from years gone by and bring us up to date with the essential organizational and human dynamics we must consider as we transform our organizations for future success.” —Jackie Alcalde Marr, director, Organization and Talent Development, North America Oracle USA; coauthor of Social Media at Work; founder, Evolutions Consulting Group “Linda and Dean are in a uniq ue position to offer such comprehensive thinking, models, and tools for change because they have devoted over three decades w orking directly with senior leaders and strategic consultants in numerous transformations across a wide variety of organizations. By doing the work, studying the theory, and reflecting on outcomes, they have captured both the basics and the nuances of change and integrated them into understandable models, processes, and tools. These books are essential reads for change leaders as the authors have advanced the theory and practice of planned change to new heights. Kurt Lewin would be proud!” —David W. Jamieson, Ph.D., practicum director, American Univ/NTL MS in OD Program; past president, American Society for Training and Development “This volume contains the best guidelines anywhere for supporting organizational transformation processes. It provides the fundamental essentials for preparation to lead change.” —John Adams, Ph.D., emeritus professor, Saybrook University Organizational Systems Ph.D. Program “ Linda Ackerman Ander son a nd D ean Ander son b ring t heir ma ny decades o f p ractical experience in supporting leaders in systemwide change to this book that makes explicit the relationships a mong minds et, le adership ac tions, p roject p lanning, a nd co mplex c hange. While it’s never easy to accomplish this kind of change at an enterprise level, this book makes the change leadership process understandable, clear, and actionable—so you can succeed.” —Kathryn Goldman Schuyler, Ph.D., Marshall Goldsmith School of Management, Alliant International University “Building a service culture requires the transformation of leaders’ and employees’ mindsets and behaviors and the continuous upgrading of an organization’s processes and systems. This extraordinary book provides the insights, methods and tools you need t o succeed in this challenging yet essential transformation. Study it thoroughly, apply it rigorously, and succeed brilliantly.” —Ron Kaufman, founder, Up Your Service! College; author, Up Your Service! ffirs.indd iv 8/20/10 12:54:04 PM “As the authors of this book note, effecting transformation in contemporary organizations requires a deep under standing of change and a ne w set of leadership skills and strategies. Written in a c lear and accessible style, this practical and thought-provoking text provides leaders of change the means by which to develop these important attributes.” —David Grant, professor, Organizational Studies, University of Sydney “Rather than rely on tried-and-true methods that worked in the past, Dean and Linda challenge leaders to shed outdated thinking and make new choices about how they lead change. They help leaders wake up to their unconscious beliefs that lead to ineffective actions, systems, and work cultures. Read this cutting edge book to learn how to recognize old ways of thinking and adopt new mindsets that foster meaningful change.” —Faith Ralston, Ph.D., author, Dream Teams, Emotions@Work, and Play Your Best Hand “This book is a must-read for anyone interested in taking their change leadership efforts to a whole new level. This is t he first book that recognizes and explains the possibilities you can achieve by utilizing your expanded awareness to lead transformational change. It is so exciting for me see how I can better combine my personal growth and evolution in applying the tools and concepts laid out in t he book for the large-scale change programs that I manage.” —Donna Edwards, Director, Intel Corporation “I ha ve b een usin g Beyond Ch ange Management wi th my st udents f or y ears. It p rovides methods the authors have pioneered to help organizational members shape the future and build organizational capacity. It teaches le aders how to overcome complex issues, w hich allows them to stay focused on human dynamics that impact organizational performance. It is a rich companion for anyone growing oneself and the members of their organization to be accountable for the whole! This book is an excellent resource for any practitioner who is in the midst of helping organizations through change.” —Jacqueline M. Stavros, associate professor and director, Doctorate of Business Administration, Lawrence Technological University “Conscious leadership is exac tly what is required to move any change effort forward. The Andersons in tegrate a wareness a nd h uman p otential p roviding r emarkable in sight in to leading effective and transformational change. Beyond C hange Management ne ed not b e on y our shelf–i t needs t o b e in y our ha nds! Today is c hange. Tomorrow is c hange. G et Beyond Change Management and you will be prepared to lead gracefully and resiliently into the future. Leading any change is not easy work. Make it rewarding by understanding the interconnectedness of people, relationships, and systems. Change your world. Change your worldview. Get Beyond Change Management—it is just so necessary. Whether you’re learning or leading or both—this book is the book.” —Zoe MacLeod, director, Centre for Applied Leadership and Management, Royal Roads University “Engaging, tangible, practical, compelling! Based on decades of experience, Beyond Change Management draws you into the world of what is p ossible within the domain of change. ffirs.indd v 8/20/10 12:54:04 PM From determining t he typ e of change effort to de veloping organizational and le adership capacities that increase the success of change initiatives, this book is easy to read and apply. It is written for a wide range of audiences including executives leading strategy, operations planning and executing change, learning and development groups, and anyone who wants to build long-term capabilities.” —Barbara Plumley, vice president regional operations, HealthCare Partners Medical Group “Quality o utcome me asures a nd e vidence-based medicine will dic tate ho w pa tients a re treated in the future. This book comes at just the right time to guide health care professionals, physicians, and hospital administrators toward adopting such important but sometimes threatening changes. It provides a pathway to embrace the change we must all accept.” —Jim A. Youssef, M.D., founder, SpineColorado “In this book, Dean Anderson and Linda Ackerman Anderson not only show you the most effective path for success in y our change outcomes but als o how you can revitalize your organization and people in the process.” —Christian Forthomme, CEO, RealChange Network, Inc. “If you missed the Anderson’s first editions, you may not know what a terrific contribution they are to the field of Organization Development. Now you have a second chance to read these excellent new editions from these gifted writers. These books are essential reading to those who want to become master practitioners in this field.” —Jane Magruder Watkins, coauthor, Appreciative Inquiry: Change at the Speed of Imagination “Beyond C hange Management is a m ust-read for managers, consultants, and anyone els e interested in t he p rocess o f tra nsformational c hange. It c hallenges co nventional wis dom regarding change and offers an engaging and insightful alternative based upon the notion of ‘conscious change leadership.” —Cliff Oswick, chair, Organization Theory; academic dean for Law and Social Sciences, Queen Mary, University of London “The definitive ‘how to’ guide for change leaders—the Andersons have taken up where the theorists left off, providing practical mechanisms and strategies to build change capability within organizations. They challenge all of us who call ourselves change agents to practice what we preach and build reflexive consciousness into all our change leadership efforts.” —Quentin Jones, Australian managing director, Human Synergistics International, coauthor, In Great Company—Unlocking the Secrets of Culture Transformation ffirs.indd vi 8/20/10 12:54:05 PM FREE Premium Content P This book includes premium content including worksheets and job aids that can be accessed from our Web site when you register at www.pfeiffer.com/go/anderson using the password professional. Instructors are invited to download a free Instructor’s Guide with materials and information for using Beyond Change Management (or The Change Leader’s Roadmap in that book) in a workshop or college course. The Instructor’s Guide includes PowerPoint slide shows, key points, resources, student activities, helpful teaching strategies, and other supplemental classroom aids. College professors may download the materials at www.wiley.com/college/anderson Corporate trainers, please email instructorguides@ beingfirst.com to receive your copy for use in your executive and management development programs. ffirs.indd vii 8/20/10 12:54:05 PM ffirs.indd viii 8/20/10 12:54:07 PM About Pfeiffer Pfeiffer serves the professional development and hands-on resource needs of training and human resource practitioners and gives them products to do their jobs better. We deliver proven ideas and solutions from experts in HR development and HR management, and we offer effective and customizable tools to improve workplace performance. From novice to seasoned professional, Pfeiffer is the source you can trust to make yourself and your organization more successful. Essential Knowledge Pfeiffer produces insightful, practical, and comprehensive materials on topics that matter the most to training and HR professionals. Our Essential Knowledge resources translate the expertise of seasoned professionals into practical, how-to guidance on critical workplace issues and problems. These resources are supported by case studies, worksheets, and job aids and are frequently supplemented with CD-ROMs, websites, and other means of making the content easier to read, understand, and use. Essential Tools Pfeiffer’s Essential Tools resources save time and expense by offering proven, ready-to-use materials—including exercises, activities, games, instruments, and assessments—for use during a training or team-learning event. These resources are frequently offered in looseleaf or CD-ROM format to facilitate copying and customization of the material. Pfeiffer also recognizes the remarkable power of new technologies in expanding the reach and effectiveness of training. While e-hype has often created whizbang solutions in search of a problem, we are dedicated to bringing convenience and enhancements to proven training solutions. All our e-tools comply with rigorous functionality standards. The most appropriate technology wrapped around essential content yields the perfect solution for today’s on-the-go trainers and human resource professionals. w w w. p f e i f f e r. c o m ffirs.indd ix Essential resources for training and HR professionals 8/20/10 12:54:07 PM ffirs.indd x 8/20/10 12:54:07 PM Beyond Change Management HOW TO AC HIEV E BREAK T HRO UGH RESULT S THROU GH C ONS C IO US CHANGE LEAD ERSHI P Dean Anderson Linda Ackerman Anderson ffirs.indd xi 8/20/10 12:54:07 PM Copyright © 2010 by Dean Anderson and Linda Ackerman Anderson. All Rights Reserved. Published by Pfeiffer An Imprint of Wiley 989 Market Street, San Francisco, CA 94103-1741 www.pfeiffer.com No part of this publication may b e reproduced, stored in a r etrieval system, or transmitted in a ny form or b y a ny me ans, elec tronic, mec hanical, p hotocopying, r ecording, s canning, o r o therwise, ex cept as permitted under S ection 107 o r 108 o f t he 1976 U nited S tates C opyright A ct, wi thout ei ther t he p rior written p ermission o f t he Pub lisher, o r a uthorization t hrough pa yment o f t he a ppropriate p er-copy fee t o t he C opyright Cle arance C enter, I nc., 222 Ros ewood Dr ive, D anvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions. 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For additional copies/bulk purchases of this book in the U.S. please contact 800-274-4434. Pfeiffer b ooks a nd p roducts a re a vailable t hrough most b ookstores. To co ntact P feiffer dir ectly call o ur Customer Care Department within the U.S. at 800-274-4434, outside the U.S. at 317-572-3985, fax 317-5724002, or visit www.pfeiffer.com. Pfeiffer also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Anderson, Dean, Beyond change management : how to achieve breakthrough results through conscious change leadership / Dean Anderson, Linda Ackerman Anderson. —2nd ed. p. cm. —(J-B O-D (organizational development) ; 36) Includes bibliographical references. ISBN 978-0-470-64808-7 (pbk.) 1. Leadership. 2. Organizational change. I. Ackerman-Anderson, Linda S., 1950- II. Title. HD57.7.A527 2010 658.4'063—dc22 2010032262 ISBN 978-0-470-64808-7; 9780470890967 (ebk); 9780470891131 (ebk); 9780470891124 (ebk) Acquiring Editor: Matt Davis Production Editor: Joanne Clapp Fullagar Editorial Assistant: Lindsay Morton Printed in the United States of America PB Printing ffirs.indd xii Director of Development: Kathleen Dolan Davies Editor: Julie McNamee Manufacturing Supervisor: Becky Morgan 10 9 8 7 6 5 4 3 2 1 8/20/10 12:54:08 PM TA B L E O F C O N T E N T S Preface Acknowledgments Introduction S EC TI O N ONE A CAL L F O R C ONSC IOU S C HA NGE LEA D ERS xix xxiii 1 15 Chapter 1 Achieving Breakthrough Results from Change 16 Chapter 2 The Drivers of Change 31 Chapter 3 Three Types of Organizational Change 51 Chapter 4 Two Leadership Approaches to Transformation 81 Chapter 5 Building Organizational Change Capability S EC TI O N T W O P E OP L E D Y N A MIC S 106 131 Chapter 6 Human Dynamics: From Resistance to Commitment 132 Chapter 7 The Role and Impact of Mindset 161 Chapter 8 The Role and Impact of Culture 184 xiii ftoc.indd xiii 8/19/10 1:30:38 PM S EC TI O N T H R E E Conscious Process Thinking 208 Chapter 10 Change Process Models 228 Chapter 11 ftoc.indd xiv 207 Chapter 9 S EC TI O N F O UR xiv P R O CE S S DY NA MIC S ANS W E R I NG THE C A LL TO C ONSC IOU S C H ANG E L E A D ERSHIP 253 Answering the Call 254 Bibliography 263 About the Authors 275 Index 279 Contents 8/19/10 1:30:39 PM F I G U R E S , E X H I B I T S , A N D TA B L E S Figure I.1 The Conscious Change Leader Accountability Model 5 Figure I.2 The Four Quadrants of Conscious Change Leader Accountability 6 Figure 1.1 Breakthrough Results 17 Exhibit 1.1 Common Mistakes in Leading Transformation 20 Figure 1.2 Levels of Success 22 Figure 1.3 Three Critical Focus Areas of Change Leadership 25 Exhibit 1.2 What Level of Success Are You Seeking? 27 Exhibit 1.3 What Common Mistakes Is Your Organization Making? 28 Figure 2.1 The Drivers of Change Model 33 Exhibit 2.1 What Is Driving Your Organization’s Change? 42 Figure 3.1 Three Types of Organization Change 53 Table 3.1 Matrix of the Three Types of Organization Change 54 Figure 3.2 The Journey of Transformation 66 Figure 3.3 Relationship of the Types of Change 73 Exhibit 3.1 Determining the Types of Change 75 Figure 4.1 Competency Model 90 Figure 4.2 Wake-Up Calls to Conscious Change Leadership 93 Exhibit 4.1 Change Leadership Development Assessment 102 Figure 5.1 The Impact of Change Capability 107 xv ftoc.indd xv 8/19/10 1:30:39 PM xvi ftoc.indd xvi Exhibit 5.1 Enterprise Change Agenda Needs Assessment 113 Exhibit 6.1 Core Human Needs 141 Exhibit 6.2 How You Might Inadvertently Trigger Core Needs 144 Exhibit 6.3 Assessing Your Change Strategy and Plan 147 Table 6.1 Employee Retention Research 149 Figure 6.1 Resistance to Commitment 151 Figure 6.2 Comparing Transition Models 152 Figure 7.1 The Self Mastery Model 165 Figure 7.2 The Seamless Connection Between Mindset and Reality 166 Figure 7.3 Reticular Activating System 168 Table 7.1 Fundamental Law of Individual Success 171 Exhibit 7.1 Co-Creative Ways of Being 180 Exhibit 7.2 Assessing Your Ways of Being 181 Exhibit 8.1 Typical Indicators of Culture 187 Exhibit 8.2 Indicators of Culture 188 Table 8.1 Fundamental Law of Organizational Success 189 Exhibit 8.3 Commonly Stated Cultural Attributes of High-Performing and Low-Performing Teams 191 Table 8.2 Three Types of Organizational Cultures 193 Exhibit 8.4 Being First’s Approach to Transforming Culture 200 Figure 10.1 The Conscious Change Leader Accountability Model 230 Figure 10.2 Fullstream Transformation Model 234 Figure 10.3 The Change Leader’s Roadmap 240 Figure 10.4 The Change Leader’s Roadmap in Action 242 Figure 10.5 The Change Leader’s Roadmap As a Fullstream Process 243 Figure 10.6 The Change Leader’s Roadmap—Activity Level 244 Exhibit 10.1 Conscious Change Process Design Requirements 248 Exhibit 10.2 Comparing Other Change Models with The Change Leader’s Roadmap 250 Figures, Exhibits, and Tables 8/19/10 1:30:40 PM PREMIUM CONTENT FOR BEYOND CHANGE MANAGEMENT Available for download at www.pfeiĀer.com/go/anderson ftoc.indd xvii ◗ Ten Most Common Mistakes in Leading Transformation ◗ Leadership Breakthrough: Topic Options and Methods ◗ Building Change Capability: Leading Change as a Strategic Discipline ◗ Upgrade Your Or ganization D evelopment a nd P roject M anagement S taĀ to Strategic Change Consultants ◗ How Developing Breath Control Can Make You a Better Leader ◗ How C ommand a nd C ontrol as a Cha nge L eadership S tyle C auses T ransformational Change EĀorts to Fail ◗ Identifying Project Briefing Questions ◗ Selecting the Best Change Process Leader to Oversee Your Transformation ◗ Ten Critical Actions for Leading Successful Transformation ◗ A C andid M essage t o S enior L eaders: T en W ays t o Dra matically I ncrease the Success of Your Change EĀorts ◗ How to Use Decision-Making as a Tool for Successful Transformation ◗ Six Faulty Assumptions about Change Communications ◗ Elements of a Whole System Integration and Mastery Strategy 8/19/10 1:30:40 PM ftoc.indd xviii 8/19/10 1:30:40 PM P R E FA C E O ur life’s work has al ways been about change. Dean started his ca reer in t he Āeld of personal change, and Linda in organizational change. In 1986, when we met, i t b ecame c lear t hat o ur tw o p rofessional sp ecialties w ere me ant t o b e merged into one uniĀed approach to transforming organizations. Dean was one of the Ārst people doing deep personal mastery work in organizations, having created the Optimal Performance Institute to offer his approach to b reakthrough p erformance (o riginally de veloped f or w orld-class a thletes) t o people in business. Linda was one of the founding leaders of the Organization Transformation mo vement, f ocusing o n t eaching t he p rocess o f o rganization c hange and transformational leadership to executives and consultants world wide. At the time of our meeting, Dean had r ealized that his p ersonal and team performance models and interest in culture had to align with the complexities of larger organizational systems, while Linda had r ecognized that her w ork required more overt emphasis on personal and cultural change to fortify her large systems work. Both our interests and the requirements of successful large systems transformation were moving each of us toward the other’s expertise. In 1988, w e brought our specialties, insights, and theories together to create an integrated approach to leading transformation and to form Being First, Inc. In our early years, we mentored and coached one another in our individual specialties; now, we each stand in both arenas—personal and organizational transformation— and consult to senior executives across industries, government, the military, and large nonproĀts. Individually, a nd t hen co llectively a t B eing Fir st, w e ha ve al ways co nsidered ourselves t hought le aders in t he area of transformation, not s o much xix fpref.indd xix 8/19/10 9:47:47 AM because o f w hat w e know, b ut b ecause o f t he c utting edg es w e a re willin g t o explore and the continual learning and development we pursue. We are committed to pushing the envelope of thinking and practice for accomplishing tangible, breakthrough-level results. We created Being First—appropriately named for our bias toward t he p ersonal work required to transform individuals and organizations—to o ffer o ur t hinking a nd ad vice t o p eople a nd o rganizations around the world. Being Fir st, I nc. is a f ull-service c hange ed ucation, co nsulting, a nd c hange leadership de velopment Ārm assistin g o rganizations t o maximize t heir b usiness results from change, transform their people and culture, and build internal change capability. We provide organizational change capability and change strategy consulting, en terprise-wide b reakthrough tra ining f or c ulture a nd minds et c hange, change leadership skill de velopment for leaders and consultants, licensing of our change p rocess met hodology, coac hing, p ersonal tra nsformation tra ining, a nd transformational team de velopment. We support clients to create strategic dis ciplines for change so that their organizations can embody masterful change leadership and increase their success f rom change. We are developing a c urriculum for women leaders and managers and are planning a w orldwide Change L eadership Institute. Our s tyle, bas ed o n o ur co mmitment t o walk o ur own t alk, is t o co -create a p ersonalized stra tegy f or e ach c lient wi th t he a ppropriate bala nce o f co nsulting, tra ining, a nd met hodology, in tegrating p ersonal c hange a nd o rganizational change. We are devoted to our own continuous learning and development through applying our own personal practices and true partnerships with our clients. Our personal and organizational work provides us the opportunity to develop, Āeld test, and write about what we see is required to transform human systems successfully and consciously. We r eleased t he Ārst edi tion o f t his b ook a nd i ts co mpanion v olume, Ā e Change Leader’s Roadmap, in 2001. Much has happened since then—in the world, in organizations, and in us. The messages of the Ārst edition are as relevant today as they were then, and in many ways, more so. The challenges of change leadership continue to increase. Transformations in organizations are ever more complex, the stakes are higher, and the impact these changes are having on people and culture are more profound now than ever. These challenges are requiring leaders and those that consult to them to advance their thinking and methods. As we develop and xx fpref.indd xx Preface 8/19/10 9:47:49 AM evolve ourselves, we see with ever greater clarity and distinction what is required to succeed at transformation—personally, organizationally, and globally. To help meet these challenges and clarify the terrain of positive change, we have added Āve new chapters to this edition, further developed another one, and removed three that no longer seemed as pertinent. We have made these changes to integrate our insights and learning over the past decade. We have attempted to capture what is true for us in this moment in time in the evolution of change and leadership. This has been a challenging effort—a bit like trying to capture a river that keeps on flowing. The insights we explore here will continue to evolve—and have done so even as we have rewritten them. We explore ideas and theory at the conceptual level; offer strategies, actions, and tools at the pragmatic level; and attempt to bridge the two in the clearest and most useful way possible for you, our reader. For t hree decades, w e ha ve t horoughly en gaged in t he deba te o f p ersonal change v ersus o rganization c hange, c hange t he p eople o r c hange t he str uctures, carefully plan change versus let it unfold, manage change versus consciously lead it, and focus on process versus outcomes. The debates continue, drive our investigation, and fuel the wisdom we seek to share. In our writing, we have attempted to be forthright about what we see as true, while keeping our mindset and eyes open to what we do no t yet understand. We have attempted to denote what we think is factual, what we believe due to our own experiences, and what we are still learning or questioning. We invite you, our reader, into this exploration with us —into the inquiry— into our attempt to give language, guidance, and incentive to growing the Āeld of conscious change leadership. We hope you will participate in the conversation about the issues a nd propositions in t hese books, and then put them to the test in y our own conscious leadership of change. Please read on with the spirit of inquiry. Read with your concern for the state of today’s organizations. Read to contribute to our collective ability to transform organizations in to p laces in w hich p eople lo ve t o w ork a nd f eel r egenerated, as well as add value to their customers and stakeholders. Read on with a concern for people and t he world, and how to make our lives e ver more he althy and me aningful as w e co llectively co-cr eate a f uture o f gr eater s ocial j ustice a nd environmental sust ainability. Re ad on w hile honoring how far t he Āelds of organization transformation, change management, and change leadership have come from the Ārst attempts to infuse the values of planned change and human development into Preface fpref.indd xxi xxi 8/19/10 9:47:49 AM organizations. And p lease read with yourself in mind as a le ader or consultant of change. Our message is written for you, and we hope it beneĀts you personally and professionally. Dean Anderson Linda Ackerman Anderson Durango, Colorado Spring 2010 xxii fpref.indd xxii Preface 8/19/10 9:47:50 AM ACKNOWLEDGMENTS W e deeply appreciate the wonderful people who supported us w hile writing these new editions of Beyond Change Management and Ā e Change Leader’s Roadmap. We received abundant help from our trusty readers—friends, and colleagues all—including in sightful in put f rom Anne P olino, C arol T isson, J an Chr istian Rasmussen, a nd S teen R uby. Ā eir in sight, f eedback, a nd enco uragement w ere invaluable to us. Our staff was un tiring in t heir assist ance and encouragement. We sincerely appreciate Erin Patla and Lindsay Patterson for their dedication and patience. We appreciate our clients whose investment and commitment to partner with us produced the many insights and outcomes you read about in these books. Ā eir willingness to work in conscious ways helped to formulate and demonstrate what we are most passionate about—leading transformation consciously. Many are true pioneers, and we feel honored to share in their journey. We als o a ppreciate o ne a nother f or pa rtnering in t his co-cr eative p rocess, modeling to the other what we deeply know is true, even when we individually may have forgotten. Our voices are stronger, our work is deeper, our lives are richer, and our spirits brighter from the experience. xxiii flast.indd xxiii 8/19/10 8:31:42 AM flast.indd xxiv 8/19/10 8:31:44 AM Beyond Change Management flast.indd xxv 8/19/10 8:31:44 AM flast.indd xxvi 8/19/10 8:31:44 AM INTRODUCTION Ā ere is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. —Niccolo Machiavelli, Ā e Prince (1532) W e can remember when change consultants were few and far between. About the only people thinking about and promoting planned change back then were a ha ndful of organization development practitioners, and they seldom captured the attention of senior leaders. Now in t he twenty-Ārst century, change and how to lead it successfully has become a critical topic on the minds of organizational leaders. And for good reasons: Change is ha ppening e verywhere; its speed and complexity are increasing; and the future success of our organizations depends on how successful leaders are at leading that change. In today’s marketplace, change is a requirement for continued success, and competent change leadership is a most coveted executive skill. Organizations’ trac k r ecords a t c hange a re no t v ery g ood. The vast ma jority of today’s change efforts are failing to produce their intended business results. Thes e struggling efforts are producing huge cost to budgets, time, people, customers, and faith in leadership. Organizations are spending tens of millions of dollars on change efforts such as inf ormation technology installations, supply chain and reengineering, yet not obtaining their intended return on investment. Furthermore, the v ery met hods us ed in t hese fa iled efforts a re ca using tr emendous r esistance and b urnout in p eople, loss o f em ployee mo rale, a nd t urmoil in t he c ultures o f 1 cintro.indd 1 8/19/10 1:27:14 PM organizations. Put simply, organizational leaders are falling short in their efforts to lead change successfully. Over t he past tw enty years, technology and other marketplace dr ivers have radically altered the very nature of change. Whereas change was once a contained transactional e vent (a nd e asier t o ma nage), i t is no w mo re o pen-ended, radical , complex, p ersonal, and continuous. “ Transformation” is t he ne w typ e of c hange that has emerged, and it is by far the most prevalent and complex type occurring in organizations today. In general, leaders do not understand transformational change or how to lead it, which is causing virtually all of the change-related problems they are now facing. These str uggles have given r ise to t he Āeld of change management. For t he most part, change management practitioners have attempted to provide solutions to two major problems—how to plan better for implementation and how to overcome employee resistance. However, these two necessary components of change have not produced adequate positive results, especially for transformational change. Why? Because attention to implementation and resistance is o nly the tip of the iceberg of what is required in transformation. It is now time to move beyond change management into conscious change leadership; time t o develop the advanced change strategies t hat su pport t his ne w typ e o f c hange; time t o mo ve f rom ma naging resistance and implementation to co-creating a positive future through successful, well-run transformational change efforts. Leaders in need o f change assistance have always been a windo w of professional opportunity for organization development (OD) and change management consultants. However, for the most part, these practitioners have not been as effective at providing the necessary support and guidance to organizational leaders as is necess ary f or tra nsformational c hange. Pu t b luntly, mos t c hange co nsultants need to expand their awareness, skills, and approaches to leading transformational change as well. What is the source of the problem? Is the issue about the changing nature of change? Is it about leadership? Or is it about organization development and change management consulting practices? Our premise is that it is about all three: change, leadership, and today’s consulting approaches. Transformational c hange in volves a n umber o f v ery ess ential a nd uniq ue dynamics t hat demand a ne w le adership p erspective, skill, and sty le. Most le aders, ho wever, a re vie wing tra nsformation t hrough o ld minds ets wi th limi ted critical a wareness a nd a re a pplying tradi tional ma nagement a pproaches t hat 2 cintro.indd 2 Beyond Change Management 8/19/10 1:27:18 PM just do no t work. B ecause leading transformational change is s o radically different f rom ma naging o r le ading a s table o rganization, le aders ca nnot sim ply la y their old way of thinking, behaving, and operating on this new world and expect success. Leading transformation calls for a deeper understanding of change and a new set of leadership skills a nd strategies. Leaders must broaden their understanding and insight about what transformational change requires, let g o of or build off of their old approaches, and guide t he process of transformation differently. In particular, they must transform their beliefs about people, organizations, and change itself; they must view transformation through a new set of mental lenses to see the actual dynamics of transformation; and they must alter their leadership style and behavior to accommodate the unique requirements of transformation. Ā is means that leaders themselves must transform to lead transformation successfully in their organizations. Only then will t he new skills o f conscious change leadership become available to them. Only then will they be able to see, understand, and apply the strategies and approaches that make transformation work. And only then will they want to. This is not to say that leaders are bad, wrong, unskilled, or somehow flawed. In fact, quite the contrary. Over the past two decades, leaders have done a phenomenal job o f incr easing t he p roductivity o f t heir o rganizations. However, b ecause today’s change is s o often transformational (making it much more complex), the requirements for today’s leaders, out of necessity, are expanding. The challenge is that today’s marketplace is no t asking for just leadership. It is dema nding change leadership—even more, conscious change leadership—a new breed of le ader for a new breed of change. The term conscious signiĀes a required shift in both leaders’ and consultants’ consciousness regarding how they view change, themselves, and their roles as change leaders. Let’s explore the terms. Webster’s dic tionary deĀnes conscious as “ to know, awareness o f a n inward state or outward fact; perceiving, noticing with a degr ee of controlled thought or observation; capable of t hought, will, design a nd p erception; ac ting with cr itical awareness.” Webster deĀnes consciousness as “ awareness, especially of something within oneself, and also the state of being conscious of an external object, state, or fact; the state of being characterized by sensation, emotion, volition, and thought; the upper level of mental life as contrasted with unconscious processes; mindfulness.” Introduction cintro.indd 3 3 8/19/10 1:27:18 PM Change leadership implies seeing the future and being able to lead people to co-create it. Conscious change leadership infers that leaders and consultants become more “conscious” and aware of the deeper and more subtle dynamics of transformation, especially regarding people and process dynamics. Conscious change leaders see what others miss b ecause they operate with expanded awareness and understanding. They perceive human dynamics more fully and the nuances of designing and implementing change processes that build commitment in s takeholders, transform culture, and achieve results beyond what others would deem p ossible. Conscious change leaders apply this increased awareness to expertly lead people through the process of change to co-create a future that will enable their organizations to win in the ever increasingly competitive marketplace. A MULTI-DIMENSIONAL, PROCESS APPROACH Mastery of any skill requires that you develop all aspects of the task. You cannot specialize in o ne area and neglect the others. There is al ways at least one set of two “polarities” that you must master to excel at anything. For example, to be a mast erful co mmunicator, y ou m ust de velop b oth sp eaking a nd lis tening skills. Masterful golfers must be able to hit both the long ball and the short ball well. Masterful parents must know how to discipline as well as how to nurture their children. Being exceptionally good at one or the other polarity is not enough. You need both the “yin” and the “yang.” Mastery, then, requires a focus on all areas of an endeavor and the pursuit of excellence in each. The more you improve your skill in o ne area, the more it calls forth your developmental needs in the others. Whatever you neglect becomes your weak link. Mastery suggests that leaders and consultants must become conscious of and competent in all of the different dimensions of transformation, even those that they are not yet aware of or are comfortable addressing—areas that are outside their box of understanding. For thirty years, we have been promoting the idea that leading transformation masterfully requires leaders and consultants to design and implement change processes that attend to both internal and external dynamics at the individual, relationship, team, and organizational levels. We have called this a “multi-dimensional, process approach” to transformation to denote all t hese different but interdependent areas of required attention. Now, with the rapidly growing global movement 4 cintro.indd 4 Beyond Change Management 8/19/10 1:27:19 PM Figure I.1. The Conscious Change Leader Accountability Model catalyzed around Ken Wilber’s groundbreaking work at the Integral Institute, we can als o des cribe our approach as “ integral” as deĀ ned by Wilber. Regardless of what we call it, the principle of mastery lies at the heart of it; you must attend to all the dynamics at play to succeed. Most change efforts fail because the leaders neglect critical dimensions. Figure I.1 gra phically p ortrays w hat w e call t he C onscious Cha nge L eader Accountability M odel. Cha nge le aders a re acco untable f or e ach o f t hese a reas because attending to them is r equired to succeed a t transforming their organizations. Again, what you neglect becomes your weak link and cause of failure. Before we address the individual dimensions, let’s discuss the way the model is organized. We borrow from Wilber’s core work that he calls All Quadrants, All Levels (AQAL).1 Notice that the face of the model is a matrix built on an x axis (internal and external) and a y axis (individual and collective), making four “quadrants.” (Figure I.2, as a segment of the overall model, further clariĀes this.) The two quadrants on the left describe aspects of internal reality, while the two quadrants on the right describe external reality. The upper two quadrants address the individual, and the lower two address the collective. Introduction cintro.indd 5 5 8/19/10 1:27:19 PM Figure I.2. The Four Quadrants of Conscious Change Leader Accountability Individual Behavior Culture Systems Internal External Mindset Collective Conscious c hange le aders m ust a ttend t o all f our q uadrants: (1) minds et (internal, individual); (2) culture (internal, collective); (3) behavior (external, individual); and (4) systems (external, collective). The mindset quadrant includes values, b eliefs, t houghts, emotions, ways of being, levels of commitment, and so on. Behavior includes work styles, skills and actions, and behaviors. Culture includes norms, collective ways of being, working and r elating, c limate, a nd esp rit de co rps. Systems inc ludes s tructures, syst ems, business processes, and technology. Each of these quadrants must be addressed at all levels. Organization transformation is not simply about organizational systems or culture. It demands attention to individuals, how people relate, how teams function, and the marketplace itself. All will have an influence on your attempt to transform your organization. We b eneĀt gr eatly f rom W ilber’s b rilliant a nd c larifying A QAL mo del t o depict this graphically, and we acknowledge his contribution to our improved way of co mmunicating t he f ull s cope o f r equired co nscious c hange le ader a ttention. Most im portantly, t he mo del mak es i t c lear t hat co nscious c hange le aders m ust always attend to internal and external dynamics within both individuals and the collective. 6 cintro.indd 6 Beyond Change Management 8/19/10 1:27:21 PM We complete our Conscious Change Leader Accountability Model by capping it all off with “change process.” Change processes occur within all the quadrants at all levels. Of critical importance, a successful organization transformation requires a change strategy and process plan that organizes and integrates all of these change processes a nd t he ac tivities wi thin t hem in to a uniĀ ed en terprisewide p rocess that moves the organization (all its quadrants and levels) from where it is today to where it wants to be—transformed to something new that produces signiĀcantly improved results in its marketplace. In our consulting practice, we accomplish this very challenging and essential outcome using The Change Leader’s Roadmap methodology, which you can read about in t he companion volume to this book under the same title. The book you are now reading outlines our multi-dimensional process approach to transforming organizations. We will describe it in detail, make a case for it, rationalize why it is necessary, and hopefully demonstrate the improved results and return on investment (ROI) it will bring to your change efforts. We will visit t he C onscious Cha nge L eader A ccountability M odel p eriodically t hroughout t he b ook, e ach time makin g f urther distinc tions a bout w hat tra nsformation requires and how the quadrants and levels—and the processes within them—can be successfully addressed to deliver the results you are after in your change efforts. Keep in mind t hat s ome o f t hese “dimensions” a re co mmon, fa miliar, a nd understood by leaders and their consultants. Others are not. Those that are familiar to most leaders and traditional management consultants pertain to external reality, as in organizational structures, systems, and business processes. Those that are most fa miliar t o c hange ma nagement sp ecialists a nd O D co nsultants p ertain t o internal r eality, suc h as p erception, f eelings, in terpersonal r elationships, no rms, and culture. Mastery, of course, requires that leaders and consultants develop their awareness and skill in both arenas—internal and external—as applied to all le vels and their change processes. For us, t he backbone of our consulting and training practices and experience over t he past t hree decades has b een human consciousness as i t relates to breakthrough performance and outcomes in indi viduals, teams, and organizations, and the transformational change process. Our co nsulting careers have been dedicated to understanding the multidimensional nature of change, including how to change organizations as well as people. We have always attempted to integrate both the “hard” external and “soft” internal aspects of change, believing deeply that this integration was not only required but also represented the next evolution (beyond change management) that change leadership and consulting practices needed to embrace. Introduction cintro.indd 7 7 8/19/10 1:27:23 PM Building a m ultidimensional, process approach to transforming p eople and organizations to achieve extraordinary results has b een our sole Āeld of study. By nature, we are “action theorists.” We read, study, and research, and then rely heavily on our intuition to crystallize and integrate new learnings. We then build models and processes that we test heavily in the Āeld with our clients. With their assistance, we next reĀne and evolve our thinking and practices. We attempt to be “pie-in-thesky” visionaries, w hile remaining tr ue and de voted pragmatists. We stretch ourselves continually; we like our feet on the ground while our heads are in the stars, and our writing reflects this. To achieve the extraordinary results we seek with our clients, we must take extraordinary measures and travel new territory—beyond the normal, beyond the traditional, beyond the current change management practices. We w elcome y ou in to t his inq uiry a bout w hat really is r equired t o successf ully transform ourselves and our organizations. OUR AUDIENCE Over the years, we have been fortunate to work extensively with both change leaders and change consultants. S ometimes, our clients are the s enior executives of the organization; at other times, our clients are the internal change consultants supporting those leaders. Usually and ideally, our clients include both the senior leaders and their internal change consultants. In this book, we will t horoughly explore transformation and will provide an overview of what we believe it takes to both lead transformation and consult to it successfully. Consequently, we write for both leaders and consultants. Certainly, there is a school of thought that suggests that we ought to separate the leader and consultant audiences and write speciĀcally for each. However, we feel strongly that treating leaders and consultants separately and delivering individual mess ages, t ools, a nd t echniques t o t hem has b een pa rt o f t he r eason f or failure in transformation. Yes, leaders and consultants have unique roles that require specialized skills, but transformation demands a common understanding and skill set. This does not mean that the two roles (leading and consulting) should merge into one. Leaders must continue to lead, and consultants must continue to consult. Yet to be effective in tra nsformation, leaders must develop people and process skills p reviously reserved f or o r sh unted t o t heir co nsulting co unterparts, a nd co nsultants m ust become more grounded in co re business skills a nd strategies previously reserved 8 cintro.indd 8 Beyond Change Management 8/19/10 1:27:23 PM for leaders. We intend this book to assist both along their respective developmental paths to becoming more competent “change leaders.” Some of our discussions will c learly be geared to one or the other audience. At times, w e will o ffer speciĀc in sights a nd t echniques f or le aders, a nd at o ther times, w e will p resent sp eciĀc co nsulting a pproaches a nd t ools. H owever, in all cases, the “secondary” audience will b eneĀt greatly from the discussion and from fully exploring the information and insights offered. Given our bias and intent, we use the labels “leader” and “change leader” to refer to both leaders and consultants. When we refer solely to one or the other, we will make that clear. We write with leaders of all levels in mind, with the key focus on leaders who have r esponsibility a nd decisio n a uthority f or designin g, influencing, o r im plementing their organization’s transformational change plans. This obviously includes CEOs and other senior executives but can also include mid-managers, supervisors, and employees who play vital roles on change project teams. The change consultants who will r eceive the most val ue f rom this b ook are those responsible for educating, advising, and coaching line leaders to develop and implement large-scale transformational change strategy. Such consultants deĀnitely include process c onsultants, such as o rganization de velopment (OD) and organization effectiveness (O E) p ractitioners, c hange ma nagement sp ecialists, p rocess improvement facilitators, and LEAN and Six Sigma consultants. It also includes all content consultants, especially those with expertise in information technology, supply chain, creating e-commerce businesses within existing organizations, business process reengineering, knowledge management systems, business strategy, organizational redesign and restructuring, activity based costing, manufacturing technology and systems, and human resources. We believe that this book will ha ve broad appeal to anyone interested in o r impacted by transformation. C onsequently, we als o wr ite for educators and students of change. Educators can include college and graduate school professors, vice presidents o f h uman r esources, ma nagement de velopment tra iners, co llege a nd public school administrators, executive coaches, and public speakers. Students of change can literally be anyone, whether enrolled in school, working in the public or private sectors, or even lay people seeking to further understand one core dynamic of the twenty-Ārst century—transformation! And last, we write this book for all the targets of change, those people who are directly impacted by the quantity and quality of change that is rolling through all Introduction cintro.indd 9 9 8/19/10 1:27:24 PM of our lives. For these people, who may not be able to influence directly how their organization’s transformation is occurring, we offer this material as support, knowing that anyone equipped with a better understanding of the dynamics of transformation will be better able to cope with it and thrive through its implementation. A LARGER BODY OF WORK The str ucture of t he b ook is designed as pa rt of a la rger b ody of work t hat includes a companion book, Ā e Change Leader’s Roadmap: How to Navigate Your Organization’s Transformation, a W eb-based a pplication o f The Change Leader’s Roadmap methodology (CLR), a nd a co mplete set of change tools, published by Being First, Inc., our training and consulting Ārm (www.beingĀrst.com). Either book can stand alone; you do not need to read the other in order to get value from them. However, the two books were written simultaneously and thus provide a co mplete overview of conscious change le adership: b oth concepts and the tools and methods. If you can, we suggest you read this book Ārst, followed by Ā e Change Leader’s Roadmap. This b ook des cribes t he conceptual o verview o f co nscious c hange le adership and what it requires to lead transformation successfully, whereas Ā e Change Leader’s Roadmap provides a t horough description of the actual Change Process Methodology t hat p uts t hese co ncepts in to practice. I n o ther w ords, t his b ook provides t he t heoretical foundation, and Ā e Change Leader’s Roadmap provides pragmatic guida nce a nd t ools. W e ha ve wr itten b oth b ecause o f o ur de votion to b lending co ncept a nd t echnique. (One wi thout t he o ther al ways falls sho rt.) Given this bias, we offer tools and worksheets where appropriate throughout this book as well. And Ā e Change Leader’s Roadmap connects its pragmatic guidance directly bac k t o t he t heoretical basis o ffered her e. The Web-based CLR a pplication and t he change tools published by B eing First are more comprehensive and detailed than what is offered in either book. You can learn more about both at www .changeleadersroadmap.com. We provide premium content in various places throughout the book. Premium content is addi tional information that supports the topic being discussed, and is identiĀ ed by an icon in the margin. You can access the Premium Content at www .pfeiffer.com/go/anderson. A list o f all o f the premium content is p rovided at the beginning of the book. 10 cintro.indd 10 Beyond Change Management 8/19/10 1:27:24 PM College and graduate school professors can access for use in their courses an Instructor Guide for both this book and The Change Leader’s Roadmap at www .wiley.com/college/anderson. C orporate tra iners ca n access t he Instructor Guide for use in t heir executive and management development programs by sending an email request to instructorguides@beingĀrst.com. Our desire in wr iting these two books and in p ublishing the change tools is to provide all t he support we can for your application of this conscious, multidimensional, process-oriented approach t o le ading a nd consulting t o organization transformation. STRUCTURE OF THIS BOOK Throughout t he b ook, w e co ntinually deep en a co nversation a bout w hat conscious change leadership entails and why we must move beyond change management. We will us e o ur C onscious Cha nge L eader A ccountability M odel as a reference point throughout the book, referring to it periodically to guide and highlight critical aspects of our discussion. There are four sections to this book. Section One, A Call for Conscious Change Leaders, contains Āve chapters. In Chapter One, “Achieving Breakthrough Results from Cha nge,” w e o utline t he costs o f fa iled c hange, t he co mmon mist akes t hat cause it, and the great opportunity for extraordinary results that competent change leaders who attend to three critical focus areas can deliver. In Chapter Two, The Drivers of Change, we outline what is driving change and how we must respond to those drivers to succeed. We reveal how transformation includes mo re dr ivers t han o ther typ es o f c hange, makin g i t mo re co mplex a nd challenging. We also track the history of change over the past Āfty years and demonstrate how that history corresponds with an increase in the drivers we face. This sheds light on what is catalyzing change in today’s organizations, speciĀcally, what is catalyzing transformational change. In Chapter Thre e, Three Types of Organization Change, we deĀne transformation and contrast it with the two other types of change that leaders face. We reveal why transformation is more complex and the additional areas that change leaders must attend to in order to get the results they seek. In Chapter Four, Two Leadership Approaches to Transformation, we describe two very different approaches that leaders and consultants bring to transformation and the impact each has o n their potential success. I n this discussion, we clarify Introduction cintro.indd 11 11 8/19/10 1:27:25 PM why transformation requires leaders and consultants to become more conscious in their approach. We provide the details of what that means and how it can catalyze breakthrough results from change. In Cha pter Fi ve, B uilding Or ganizational Cha nge C apability, w e des cribe why change must become a strategic discipline in organizations to meet the challenges of the twenty-Ārst century. We outline Āve strategies for building superior change capability in your organization. In Section Two, People Dynamics, we focus directly on the essential human dynamics of change. SpeciĀcally, in Chapter Six, Human Dynamics: From Resistance to Commitment, we address the inner d ynamics of people, their core needs, a nd the ca uses o f r esistance t o c hange. We des cribe emo tional tra nsitions a nd p rovide guida nce o n ho w t o assist p eople t hrough t hem t o g enerate s olid le vels of commitment. In Chapter S even, The Role and Impact of Mindset, we deĀne mindset and demonstrate how it influences what change leaders perceive in t heir transformations, the behaviors they model, and the results they are able to produce. We also discuss w hy s elf-management a nd p ersonal tra nsformation a re required competencies in both leaders and consultants. In Cha pter Eig ht, The Ro le a nd I mpact o f C ulture, w e deĀne c ulture a nd explore different typ es of c ulture and t heir impacts on organizational outcomes. We provide an overview of our approach to transforming culture and establish a model for clarifying what needs addressing in culture change efforts. In Section Three, Process Dynamics, we explore a gr eatly expanded view of the p rocess d ynamics inher ent in tra nsformation. I n Cha pter N ine, “ Conscious Process Thinking,” w e demo nstrate t hat le aders’ tradi tional “ project t hinking” mentality limits transformation and show how systems thinking is a mo ve in t he right direction, albeit one leaders have not taken far enough. We introduce conscious process thinking and demonstrate why it is es sential to successful change leadership. In Cha pter Ten, Cha nge P rocess M odels, w e o utline c hange p rocess mo dels, co ntrast t hem t o c hange f rameworks, a nd des cribe w hy c hange f rameworks do not suffice for guiding transformation. We also introduce The Change Leader’s Roadmap, our own process model built on three decades o f action research. We describe why a successf ul change process model must be both “fullstream” and a “thinking discipline,” and why linear prescriptions for action are not applicable to the realities of transformation. 12 cintro.indd 12 Beyond Change Management 8/19/10 1:27:25 PM In Section Four, Answering the Call to Conscious Change Leadership, we conclude our journey. In Chapter 11, Answering the Call, we provide an overview of our discussion and put it all together. We discuss the choice to become a conscious change leader and the commitment and accountability that accompany that choice. And we ask you, “Do you choose to answer the call to conscious change leadership?” In wr iting t his b ook, we aspire to communicate w hat is p ossible in le ading transformation consciously. We dream a dream here, a dream that has transformation actually deliver breakthrough-level business results, culture change and superior change capability—all at the same time. We dream of transformation that has positive impacts b eyond proĀtability and shareholder value. We dream of transformation that improves people’s lives, deepens their ability to get what they want, and strengthens their relationships, trust, and joy in working together for common goals and aspirations. We dream of transformation that p ositively contributes to organizations, communities, s ocieties, and nations. We dream of transformation that is so user friendly that it bolsters people’s resolve and capacity for even more positive change in t hemselves and the world. And w e dream of the possibility of collectively working together to create a world of greater social justice and environmental sustainability. Nothing would give us gr eater satisfaction than to know that this book has added to the possibilities of these dreams. We hope it serves you well. ENDNOTE 1. Wilber, K. A Ā eory of Everything. Shambala, 2000, p. 70. Introduction cintro.indd 13 13 8/19/10 1:27:26 PM cintro.indd 14 8/19/10 1:27:26 PM SECTION 1 A Call for Conscious Change Leaders CH001.indd 15 CHAPTER 1 Achieving Breakthrough Results from Change 16 CHAPTER 2 The Drivers of Change CHAPTER 3 Three Types of Organizational Change CHAPTER 4 Two Leadership Approaches to Transformation 81 CHAPTER 5 Building Organizational Change Capability 106 31 51 8/19/10 8:53:10 AM C H A P T E R 1 Achieving Breakthrough Results from Change Good is the enemy of great. —Jim Collins I magine y our o rganization b eing wildl y successf ul a t c hange. We do n’t me an marginally successful; we mean so successful that your achievements are truly extraordinary, and not just in your current change initiatives, but in the vast majority of them going forward. We adamantly believe that you, your team, and your organization can become so masterful at change that breakthrough results become consistently achievable. It won’t be easy, and it won’t be immediate, but it will be worth every ounce of eĀort. To get to great, we have to get beyond good, beyond managing change to truly leading it to extraordinary outcomes. Our purpose in wr iting t his b ook, and its companion, Ā e Change Leader’s Roadmap, is to highlight how to radically increase the outcomes you get from change. We are not interested in the “normal” way change goes, how to make it a bit more eĀective, or how to reduce employee resistance so things go a bit smoother. We are after breakthrough results from change—not the average but the extraordinary. Breakthrough results (Figure 1.1) a re outcomes t hat far exceed w hat would occur if your organization continued to do change in t he same way it always has. Breakthrough results, by definition, are a le vel of achievement beyond what most people would even conceive as possible. They represent a radical, positive departure 16 CH001.indd 16 8/19/10 8:53:17 AM Br ea kth rou g h re sults Breakthrough Results Performance Figure 1.1. Unleashing human potential ent rovem l imp orma N Time from your normal rate of improvement—a “break through” the usual or predictable to an unheralded potential that has not yet been tapped or actualized. Breakthrough results come in many forms. You can achieve far greater business results through change: greater profitability, increased market share, faster cycle times, improved customer satisfaction, and enhanced product innovation. You can also produce powerful, positive impacts on people through change: greater empowerment, increased co llaboration acr oss f unctional a nd hiera rchical b oundaries, im proved morale, and increased engagement and commitment of stakeholders. Breakthroughs can occur in your culture and its ability to catalyze great performance in your people: enhanced commitment to service, more innovation and learning, more openness and authenticity, more alignment, and dedication to enterprise success. Breakthrough results occur primarily from unleashing the human potential in your organization. You achieve this by designing better change processes that free up people to contribute more of their abilities and passion. Generally, p eople do no t t hink in t erms o f ac hieving b reakthrough r esults, during change or any other time. They unconsciously accept middle-of-the-pack approaches and outcomes. Of course, if you ask, they will say that they are going for great, not average results. But their decisions, behaviors, and actions reveal something diĀerent. High achievers are few and far between, in any activity. Few athletes become superstars, j ust as f ew o rganizations r each t he p innacle o f t heir ind ustries. Achieving Breakthrough Results from Change CH001.indd 17 17 8/19/10 8:53:18 AM The middle of the bell curve, the “territory of the average,” is the norm in just about everything. People expect average results during change, just as they unconsciously pursue average results in other areas of their work and life. More is p ossible—far mo re, f or y ou a nd y our o rganization r ight no w. B ut first you have to determine the level of results you are after. C ertainly, what you learn in this book will help you reduce resistance and run your change eĀorts more smoothly. It will hel p you overcome common problems and assist you to deliver greater return on investment (ROI) on your change eĀorts. This is a ll go od, but is g ood, g ood eno ugh f or y ou? We wa nt y ou t o t hink r eally, r eally b ig. L et’s g o for breakthrough. Let’s go for great. Let’s go for the truly extraordinary. And let ’s develop the change leadership skills to produce such results. COMMON PERSPECTIVES AND MISTAKES IN LEADING CHANGE I cannot say whether things will get better if we change; what I can say is they must change if they are to get better. —Georg C. Lichtenberg Change is the nature of life. Nothing ever remains the same. Growth and decay are as fundamental to our existence as our needs for water and air. While change goes in one of two directions—either toward what we do want or toward what we do no t want—most people think of change as bad , as a negative exp erience w e end ure as b est w e ca n. L eaders o ften t alk o f “getting c hange over wi th,” minimizin g i ts disr uption, a nd o vercoming p eople’s r esistance t o i t. Employees speak about how uncomfortable it is, ho w it is a dist urbance, and if i t would just go away, then they could get back to their work. Stress tests measure the amount of change in our lives because change produces extra stress for most of us. But change is not always bad, nor does it always lead to negative outcomes. In fact, change is the vehicle to everything better, the essence of improvement, innovation, growth, expansion, and evolution. But if change is the path to breakthrough and greatness, why does it have such a bad rap? Why do people resist it? Part of the issue is internal. Sometimes we simply unconsciously assume that the change we face will lead to bad outcomes, to some future we will not like. Many of us live in a myth that things will remain the same, that there is a normalcy that 18 CH001.indd 18 Beyond Change Management 8/19/10 8:53:20 AM change disr upts a nd t hat w e wa nt t o ma intain. S ome o f us ha ve a difficult time adapting. We do not like the extra eĀort required to figure out how to thrive in the changed circumstance. Other times we feel victimized by change, that it is happening to us and that we are powerless to influence it. The bottom line is that most of us are just not very change ready or change capable. We want and expect things to remain the same. Another part of the issue is poor change leadership, which gives change a bad name in t he minds o f employees. Most le aders design a nd execute lousy change processes, and when the process of change is bad, the experience of change is bad, which exacerbates stakeholders’ negative reactions. They do no t like it and resist the change process, even when they can accept, tolerate, or commit to the outcomes it could produce. And change fails when stakeholders resist. A commonly quoted statistic over the past tw o decades is t hat 70 p ercent of all c hange eĀorts fa il t o deli ver t heir in tended o utcomes. The most r ecent la rge study substantiating this finding is IBM’s study1 of 1500 change management executives across fifteen countries. They found that 60 percent of change eĀorts fail to deliver t heir ob jectives. These a re ala rming n umbers. I s t he fa ilure ra te b ecause people inherently resist change, the intended outcomes and direction are wrong, or because of poor change leadership? Our research is very clear about this. While it is a bit of all three, the real culprit is poor change leadership. With greater understanding of human dynamics, we can learn to lead change in wa ys t hat al ter p eople’s nega tive p erspectives. And ac hieving b reakthroughs requires us to shift those perspectives. We—and those we lead—must see change as the harbinger of a more positive future. Change must become our friend, our ally, something in w hich we are b oth confident and competent. When s een t his way, new possibilities occur, new heights become reachable, greater outcomes feasible. But if we cannot lead change well, it can beat us up rather severely. For this reason, change leadership is a most coveted skill and a strategic advantage. We have been researching what works and does not work in change for over thirty y ears. (S ee p remium co ntent: T en M ost C ommon M istakes in L eading Transformation; www.pfeiĀer.com/go/anderson.) We have been engaged in change projects in vir tually every for profit industry; city, state and federal government agencies; the military; and large global nonprofits. Exhibit 1.1 highlights our findings of the common mistakes leaders are making in le ading transformation that impair the change process, cause resistance and minimize R OI. One in teresting note is that these same mistakes are being made regardless of the type of industry Achieving Breakthrough Results from Change CH001.indd 19 19 8/19/10 8:53:20 AM Exhibit 1.1. Common Mistakes in Leading Transformation ◗ Relevance and Meaning: Not overtly linking the change effort to the market and business strategy to create clarity in the minds of stakeholders. ◗ Change Governance: Not providing clear change leadership roles, structure, and decision making, and how the change effort will interface with operations. ◗ Strategic Discipline for Change: Not providing a strategic discipline for how to lead change across the organization—no enterprise change agenda, no common change methodology, and inadequate infrastructure to execute change successfully. ◗ Misdiagnosing Scope: Misdiagnosing the scope of the change either in magnitude, or by initiating only technological or organizational initiatives, and neglecting the cultural, mindset, and behavioral requirements. ◗ Initiative Alignment and Integration: Running the change through multiple separate or competing initiatives rather than aligning all initiatives as one unified effort and ensuring the integration of plans, resources, and pace. ◗ Capacity: Not creating adequate capacity for the change—setting unrealistic, crisisproducing timelines and then laying the change on top of people’s already excessive workloads. ◗ Culture: Not adequately addressing the organization’s culture as a major force directly influencing the success of change. ◗ Leadership Modeling: Leaders not being willing to change their mindsets, behavior, or style to overtly model the changes they are asking of the organization. ◗ Human Dynamics: Not adequately or proactively attending to the emotional side of change; not designing actions to minimize negative emotional reactions; not attending to them in constructive ways once they occur. ◗ Engagement and Communications: Not adequately engaging and communicating to stakeholders, especially early in the change process; relying too heavily on one-way top-down communication; engaging stakeholders only after design is complete. or sector. For profits, nonprofits, and governments all make the same mistakes. We are convinced this is because people are people, and how leaders approach change is similar across the board and is based on common worldviews, styles, and methods. How many of these mistakes do you recognize your organization making? These mistakes are all products of how your organization is designed to handle its changes. Failed change is costly, and these mistakes cost organizations millions of dollars and vital employee commitment. For example, implementing Electronic Health Records (EHR) in a medi um-sized hospital system can cost 20–50 million dollars just in hard capital costs. Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) implementations systems can be even pricier, some topping $100 million. Add in the costs of leaders’ and employees’ time and the 20 CH001.indd 20 Beyond Change Management 8/19/10 8:53:21 AM cost of taking their attention away from running operations or serving customers, and the cost of failure grows significantly. Now add in the cost of morale and productivity dropping as people’s motivation, time, and attention are diverted to failed eĀorts. The true cost of failed change is b eyond any sensible limit. Organizations simply ca nnot a Āord c hange t hat do es no t deli ver i ts R OI, es pecially in difficult economic times. What is the cost of failed change in your organization? If le aders sho uld p ut t heir a ttention o n g etting r eally g ood a t a nything, i t should b e le ading c hange. N o o ther le adership skill w ould b ring a hig her R OI. Stellar change capability can b e applied to e very improvement, growth opportunity, innovation, merger or acquisition, technology implementation, restructuring, process improvement, systems change, or cultural transformation the leader ever does—not just this year, but for the rest of their careers. Imagine the financial and cultural benefit of superior change leadership skill in your organization: change eĀorts that consistently deliver their ROI on time and on budget; stakeholders who are committed to the outcomes and contribute fully to achieving them; projects that run efficiently with clear roles, decision making, and accountability; and capacity that is well managed to maintain operational success while change occurs. Imagine the value to your organization if you could avoid the cost of failed change and instead consistently deliver maximum ROI from change, year after year. Innovation, growth, and expansion become far greater possibilities, as does winning in the increasingly competitive battles in the marketplace. Superior change leadership capability is a n essential skill in o ur twenty-first century w orld. F rom o ur p erspective, e very o rganization sho uld ha ve b uilding change capability as a k ey strategic objective, because when achieved, it is a r eal strategic advantage. Substantial increases in your personal success and your organization’s success at leading change are possible. Just how much improvement you can achieve is up to you. Levels of Success In our client engagements, we have an upfront conversation that informs the entire relationship and scope of work. In that conversation, we ask a simple question, “How do you define success in this eĀort?” Our client’s answer is important to us because we know that if t he change leaders are collectively aware and aligned to a co mmon definition of success, t hen e very asp ect of t he intervention can b e Achieving Breakthrough Results from Change CH001.indd 21 21 8/19/10 8:53:21 AM designed to support those outcomes. Plus, this is a key conversation where we can begin to introduce the idea of pursuing real breakthrough. Figure 1.2 depicts five diĀerent criteria for defining successful transformation. We call them Levels of Success: (1) when you have designed your new state, (2) when you have implemented that new state solution, (3) w hen you have achieved your desired business outcomes from the implementation because engaged employees are using and refining the new state design, (4) when your culture has transformed as necessary to sustain and increase these results over time, or (5) when your organization (leaders and employees both) has increased its change capability so future changes go even more smoothly and produce even greater results. These criteria depict five very diĀerent levels of success t hat transformation can produce. The five levels have a “nested” relationship. The higher levels include and require achievement of the lower levels. The higher the level of success you pursue, the greater the ROI you will achieve from you r change e Āort. B ut k eep in mind , as t he le vel o f success y ou p ursue increases, so will t he required attention to people and process dynamics. Because of this, success at Levels Four and Five requires far more complex and well thought out change strategies and process plans than do Levels One, Two, and Thre e. Figure 1.2. Levels of Success Organizational Level Five change capability increased Business Level Three outcomes achieved New state Level Two design implemented Level One Return on investment Culture Level Four transformed New state design determined Required attention to people and process 22 CH001.indd 22 Beyond Change Management 8/19/10 8:53:22 AM When ask ed, most le aders s ay t hey wa nt L evel F our o r Fi ve S uccess. They want business results as well as culture change and increased change capability. But we find that few leaders truly understand what it takes to achieve those outcomes. When we arrive on the scene, their initial change strategies are built to deliver only Levels One and Two. They have the scope of work planned to design the future state and get it implemented, but they have insufficient attention to people and process dynamics to ensure that they will even get the business outcomes they are after, let alone culture change and increased change capability. Remember, 60–70 percent of all change eĀorts fail to produce their desired business outcomes. Achieving business outcomes requires committed stakeholders, which usually requires a change process that has high stakeholder engagement from the start. Most leaders design their future state in isolation and then attempt to roll it out to already resistant st akeholders w ho f eel vic timized b y t he c hange b ecause t hey w ere no t represented adequately in its early phases. The leaders get the future state designed and implemented, but stakeholders do not completely buy into it. So the new state never gets fully embedded in operations and owned by end users. The results produced are mediocre and far from the breakthrough levels that were possible. You must build your change strategy and process plan to match the level of success y ou p ursue. A significant val ue w e o Āer c lients u pfront is t he “get r eal” conversation a bout w hat i t r eally t akes t o ac hieve L evels Three, F our, a nd Fi ve, especially a t b reakthrough le vels. We do no t wa nt c lients asp iring t o o utcomes their change strategy and process plan will not deliver, just as we do not want them to settle for average results when they can easily expand their scope and achieve breakthrough results. Our firm’s promise to clients is t hat they will ac hieve Level Five results—extraordinary business results, culture change and increased change capability—simultaneously by applying what we call the Being First Approach. This approach is not for every organization. It takes real commitment and resources to achieve Level Five Success. You might be thinking that achieving already-specified business results is adequate for your change eĀort and that you are not after breakthrough, culture change, or change capability. You simply need your change eĀorts to run more smoothly, without major people or process issues, so they deliver their expected “normal” results. Here is the good news: Increasing your success at transformation—a little or a lot— requires similar types of improvements and new change leadership approaches. For breakthrough results, you just need to take these new methods farther. For culture change, you likely need to expand the scope of work to include the entire enterprise, Achieving Breakthrough Results from Change CH001.indd 23 23 8/19/10 8:53:23 AM more le adership mo deling, syst ems alignment t o t he desired c ulture, a nd greater attention t o in ternal h uman d ynamics. F or ca pability b uilding, y ou add tra ining and development, coaching, and learning clinics to your already planned consulting support, all bas ed on advancing your actual change eĀorts. We do not want to make this sound easy. It is a nything but easy, but it is doa ble and aĀordable with committed and competent change leadership and a well-designed strategy. This b ook a nd i ts co mpanion, Ā e Ch ange Le ader’s Roa dmap, describe t he thinking and orientation behind the Being First Approach. In them, we will sho w you how to avoid the common mistakes your competitors are making and will reveal what they are not seeing that is causing those mistakes. We will inf orm you about exactly what you need to pay attention to and how to ensure both efficient and welldesigned change processes as well as committed stakeholders. We will pull back the surface level discussions and explore more deeply the root causes of successful transformation. Together, we will lay the foundation for not just Level Three Success, but Levels Four and Five as well. Let’s start now with the basic model of what successful change leaders must attend to in order to achieve extraordinary results. Three Critical Focus Areas of Change Leadership Successful tra nsformation a nd b reakthrough r esults r equire co mpetent attention to three critical focus areas: (1) content, (2) people, and (3) process (see Figure 1.3). Content refers to what about the organization needs to change, such as strategy, structure, systems, processes, technology, products, services, work practices, and so on. Content refers to the tangible aspects of the organization undergoing change, which are quite observable and reside in the external world we can all see. People refers to the human dynamics of change, including behaviors, skills, emotions, minds et, c ulture, mo tivation, co mmunications, en gagement, r elationships, and politics. People includes the less t angible, “soft” dynamics of the inner thoughts a nd f eelings o f t he h uman b eings w ho a re designin g, im plementing, supporting, or being impacted by the change. Process refers to how the content and people changes will b e planned for, designed, and implemented. In other words, process deno tes t he decisio ns a nd ac tions t hat will p roduce b oth t he co ntent a nd people outcomes. In our us e of t he word process here, we are not t alking about business processes, but rather, the change process. Referring to our Conscious Change Leader Accountability Model (Figure I.1 in the Introduction), note that content is t he systems quadrant, and people refers 24 CH001.indd 24 Beyond Change Management 8/19/10 8:53:24 AM Three Critical Focus Areas of Change Leadership Content of change The organizational focus of the change (structure, strategy, business process, technology, culture, product, or service) People Process of change The way in which change is planned, designed, and implemented; adjusting to how it unfolds; its A–Z roadmap, governance, integration strategy, and course corrections ess Proc Conte nt Conte n t People in change Handling the human dynamics of change: people’s mindsets, commitment to change; emotional reactions, behavior, engagement, relationships, politics; cultural dynamics impacting the change People Conte n t Figure 1.3. to the mindset, behavior, and culture quadrants. And as stated earlier, change will need to occur in all quadrants and be unified into one overall change process. Most leaders are very good at designing the content solutions for their change. When they need assistance, they can and often do engage expert content consulting firms to help design their new structure, system, business process, or technology. These subject matter exp erts, partnered with internal t alent, usually get t he content right. Breakthrough results in organizations can occur because of great content, but only if t he o rganizational c hanges a re im plemented successf ully a nd eĀectively used by committed employees. Content changes set up the potential for improvement, but they do not guarantee it. The potential benefits of well-designed content only get realized when the change process is efficient, does not impact operations negatively, a nd is dr iven by passionate st akeholders w ho “own” t he ne w content and are committed to applying and improving it over time. Reengineering business processes or implementing a CRM sys tem may look very attractive on paper, but only if implemented well and adopted successfully in the organization. Clearly, you have to get the content right, but that is the easy part. The greatest possibility and challenge for breakthrough in y our organization right now reside in t he areas of people and process. Achieving Breakthrough Results from Change CH001.indd 25 25 8/19/10 8:53:24 AM Consistently across industries, government agencies, and large nonprofit organizations, we see leaders under-attend to people and process. They get consumed in the problem of how to fix the mechanical aspects of their organization and forget that a car does not drive itself. You can give the engine a tune-up or even replace it with a m ore powerful model, but you still need a s killed and committed driver to reap the benefits. Similarly, a mo re eĀective structure or streamlined business process o r b etter t echnology can deli ver gr eater o utcomes, b ut o nly if y ou ha ve committed and passionate people to unleash that potential. People and process dynamics are highly interdependent. The design and implementation of your change process impacts people greatly. For example, a restructuring eĀort will run into problems if its change process looks like this: You convene a small team to design the new structure behind closed doors; you communicate little to stakeholders and then tell them the new design in a o ne-way memo only after the design is complete; you then make staĀ compete for limited jobs, without an opportunity to really understand why the new structure was needed in the first place; you provide no teambuilding to include new members and little assistance to out-placed individuals. Does this sound familiar? Thousands of restructuring eĀorts have been run this way, often driven by content consulting firms who get the structure right (content) b ut ha ve li ttle under standing o f p eople a nd p rocess d ynamics. No w onder people resist such changes. When people are subjected to poorly designed change processes, they naturally resist, even if the content changes fit the needs of the organization. Tightly controlled, top-down eĀorts that are forced on the organization with little attention to capacity, communication, or engagement, consistently cause negative r eactions in p eople, limi ting t he p ossible o utcomes t hat s ound co ntent solutions co uld ha ve p roduced. And t hat, in sho rt, is w hy 60–70 p ercent o f all change eĀorts fail to deliver their intended ROI. When c hange is designed w ell, a nd p romotes p ositive h uman d ynamics, breakthrough can occur. All t hree a reas—content, p eople, a nd p rocess—must b e integrated into o ne unified c hange stra tegy t hat mo ves y our o rganization f rom w here i t is t oday t o where it chooses to be in the future. Organizations that take a piecemeal approach and s eparate t heir o rganizational a nd t echnical c hanges (co ntent) f rom t heir human and cultural changes (people) and run many separate unintegrated change processes fail miserably. But s eparating content change and people c hange is co mmon p ractice. Generally speaking, the content advocates, such as those promoting reengineering, 26 CH001.indd 26 Beyond Change Management 8/19/10 8:53:25 AM Exhibit 1.2. What Level of Success Are You Seeking? WO RKSHEET The results you are after in your change effort will frame everything else. Use this worksheet to specify your desired outcomes from your change effort. Also use it to stimulate a conversation with the other change leaders in your project to get alignment. Then use what you learn in this book and The Change Leader’s Roadmap to assess whether your project is set up to deliver those results. If not, course-correct as needed. 1. What Level of Success are you after? _____ Level One: New state design determined _____ Level Two: New state design implemented _____ Level Three: Business outcomes achieved _____ Level Four: Culture transformed _____ Level Five: Organizational change capability increased 2. Specify your desired outcomes. Use SMART criteria. Be sure to make them: Specific, Measurable, Achievable, Realistic, Timebound. Business Results: Cultural Results: Change Capability Results: 3. Identify who you need to discuss this with: _____ Sponsor of the change: _____ Executives: _____ Change project leader: _____ Change project team: © 2011, Pfeiffer, An Imprint of John Wiley & Sons restructuring, information technology applications, and business strategy, do no t understand human and cultural change. In the same way, most people proponents, such as h uman r esource p rofessionals, o rganization de velopment p ractitioners, team builders, personal growth trainers, and executive coaches, do not understand pure organizational and technical changes. Consequently, transformation is usually Achieving Breakthrough Results from Change CH001.indd 27 27 8/19/10 8:53:26 AM Exhibit 1.3. What Common Mistakes Is Your Organization Making? WO RKSHEET Use this worksheet to identify the common mistakes your organization is making. Rate each mistake high, medium, or low. If you can, ask your executive team or change project team to assess your organization’s common mistakes. One simple yet powerful way is to list them all on a flip chart, and then give each person five votes that they can place on any one or multiple choices, using all but no more than five votes. Tally the votes, and then discuss the outcome. Ask participants to share the impacts of the top three mistakes on the people and organization, and then generate strategies to improve. Mistake Rating (H, M, L) 1. Relevance and Meaning: Not overtly linking the change effort to the market and business strategy to create clarity in the minds of stakeholders. 2. Change Governance: Not providing clear change leadership roles, structure, and decision making, or how the change will smoothly interface with operations. 3. Strategic Discipline for Change: Not providing a strategic discipline for how to lead change across the organization—no enterprise change agenda, no...
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