change mangment

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Making Sense of Change Management Chapter 11 Complex Change

Esther Cameron and Mike Green

2019, 5th Edition.

Complex change?

“Restructuring programmes, cultural change initiatives, outsourcing, mergers, acquisitions and strategic-led change, especially when a large number of people are involved, can all be seen as complex change. These are changes that involve so many individuals, layers of activity, areas of focus and so many factors that cannot be pre- thought out that there will be a need for people to struggle and argue and work their way through to an unpredictable outcome.”

Cameron and Green (2019)

Definition of a complex system - Santa Fe Institute, New Mexico

There is no central control

There is an inherent underlying structure within the system

There is feedback in the system

There is nonlinearity – things do not happen in a cause and effect manner

Emergence is an outcome of the system – this happens without planned intent

The system is non reducible. This means that you cannot understand the system’s behaviour by looking at one part. It is necessary to instead look at a representative slice of all of the parts.

A systemic view of organizations Konigsweiser and Hillebrand (2005)

Organizations do not function like trivial machines. They do not simply work at the push of a button and can therefore neither be controlled directly nor completely understood.

They constantly reproduce themselves through communication, are in a state of permanent change and continually create new order structures in the form of retained stories, recorded successes and agreed perceptions, patterns and expectations.

This self-image gains intensity in the ‘sense constructs’ and views of the world projected as models from inside the system to the environment. Internal order structures, sense constructs and images of the world create security and stability within the organization, yet at the same time obstruct its ability to react to changes in a dynamic, rapidly changing environment.

Organizations can learn from their environment not only in times of crisis and pressure, but also proactively by assuming an active and creative role in reshaping themselves and their respective environments.

Complexity science: key principles and ideas

Self-organization and emergence – order and disorder exists in all systems, and systems seek pattern and structure

Rules of interaction- change occurs when the rules of interaction or the pattern of connectedness changes

Attractors – systems can flip from one patterned state to another as events trigger a sudden move from one attractor to another

Power relations – power differences create diversity and give rise to possible change

Forms of communicating – communication is short-range, and feedback happens through local interaction, which amplifies or dampens an effect

Polarities and the management of paradox – as a system begins to fundamentally change, ‘choice points’ present themselves and there is a struggle with paradox. When this happens in a human system, moving from ‘either/or’ to ‘both’ thinking i.e. weighing things up can help.

Feedback – ‘gesture and response’ in richly connected systems produces both coherence and novelty.

The role of leaders in complex change

“She who wants to have right without wrong, order without disorder, does not understand the principles of heaven and earth. She does not know how things hang together.”

Chang Tzu, 4th century BC

Effective leaders of complex change:

Get the governing principles right

Enable the right amount of connectivity

Amplify important issues

Help people embody organizational values and carry a strong sense of purpose

Reflect on the past with others, in a way that can loosen traditional views

Sense and embody the emergent future as it appears out of the mist.

Tools that support complex change

Storytelling

Dialogue

Whole system work

Open space technology

Future search

World café

Making Sense of Change Management Chapter 12 Leading Change in Uncertain Times

Esther Cameron and Mike Green

2019, 5th Edition.

Five sources of uncertainty in our working lives

Institutions that limit choice and guard behaviour are dissolving

Global power bases and politics are becoming separate

The welfare state’s care is reducing, competition is being encouraged over collaboration

Collapse of long term thinking, planning and acting; life is experienced as a series of fragmented, possibly unrelated projects where dropping old habits is key to success

Primacy of individual choice without capacity to comprehend and little authoritative advice

Bauman (2007)

Key shifts in our global system

The rise of the global economy: downsizing, deregulation, corporate restructuring, emerging technologies.

The rise of the network society: globalization of governance, loss of lifetime employment and social security, perpetual individualization.

The rise of a new consciousness: the rise in number of NGOs, the rise of the creative class, a spiritual revival.

Scharmer (2007)

Frameworks which underpin our understanding of sustainability

Minztberg’s framework (2015) calls for a re-balancing of society where the political and the social elements of society are re-established in some sort of equilibrium with the free market economic model of the private sector.

Frameworks which underpin our understanding of sustainability … cont’d

John Elkington (1994), coined the phrase triple bottom line (TBL) as a new term to advance the sustainability agenda. He explained that ‘sustainable development involves the simultaneous pursuit of economic prosperity, environmental quality, and social equity … companies aiming for sustainability need to perform not against a single, financial bottom line but against the triple bottom line.’

Three circles of sustainable development Dréo, Johann (2006)

Organizational stances on sustainability in six phases similar to Kubler Ross?

Understanding wicked issues

Wicked Issues tend to have the following characteristics:

no linear causes - the- actual causes are complex, ambiguous, interconnected

the presenting issue can be a symptom of another problem

the possible causes may have no specific explanation

they are essentially unique

with no known solutions, possible solutions tend to be partial and may have unforeseen consequences

because there are consequences to every solution there is no possibility of learning by a linear ‘trial and error’

No well-described set of solutions

You know when your facing a Wicked Issue when you have:

only partial knowledge & understanding

no definitive formulation of the issue

not encountered it before

to take a strategic and longer term view though with no clear end … whilst actually needing to do something now

answers that perhaps are ‘better’ or ‘worse’ rather than ‘right’ or ‘wrong’

no current or final test of their resolution

Transforming towards sustainability

Acknowledge the scale of the risks and unmet challenges, and begin to frame potential solutions as opportunities for growth with clear strategies for achievement;

Recognise the need for a shift beyond mere incremental mitigation, and to develop and differentiate new products and services to grow in the regions where there is pressing need;

Create metrics for this mitigation and also quantify impacts, positive and negative, of more sustainable models for the organization and the communities of which they form part;

Invest in innovative technology, renewables, closed loop models, intelligent infrastructure, and machine to machine technology;

Partner and collaborate with industry peers and across sectors;

Engage in multi-stakeholder two-way dialogue to extend the organizational role and remit; and

Demonstrate advocacy to create public and political support for a sustainable global economy.

UN Global Compact Accenture CEO study on Sustainability 2013

Becoming a sustainable organization

Interface carpet tile manufactures under their CEO Ray Anderson have become the exemplar of the journey towards being sustainable.

Read Cameron & Green (2019) pages 396 – 400 and research where Interface is today.

Compare what Fagan (2010) has to say (page 399) with the Interface approach

Leadership for sustainability

Honesty and Integrity;

Stakeholder dialogue and building partnerships;

Systems thinking;

Embracing diversity and risk management;

Balancing local and global perspectives;

Meaningful dialogue and language; and

Emotional awareness.

Wilson et al (2006)

Purpose

Plan

Culture

Collaboration

Advocacy

2018 GlobeScan-SustainAbility Leaders Survey

Getting top management buy-in;

Developing the sustainable business case;

Educating customers about company activities;

Getting funding for sustainability initiatives; and

Overcoming internal resistance to change.

ISSP (2010) and Sustainability & GlobalScan (2010)

What you are doing is moving from Extrinsic to intrinsic motivation

As per Goleman and Altered states

Money and sales are part of the extrinsic reward and measured outcomes and controlled by others

Intrinsic motivation free your brain from the short term pressure opens creativity

This is needed for complex issues where we need to be motivated long term

Intrinsic needs purpose = needs the why We are deeply coded for this

“Why” drives passion

What how drives rationalization analysis and little push for movement

Daniel Goleman and Richard Davidson, 2017 Altered Traits

With all this stress we need to ensure our decisions work for others

Constant awareness of your biases in decision making critical

Positive bias opens to learning

Creating decentralised or ‘starfish’ organisations examples: youtube, wikipedia

Capabilities and behaviours required by the ‘catalysts’ who create decentralised organizations:

Genuine interest in others.

Numerous loose connections rather than a small number of close connections.

Skill at social mapping.

Desire to help everyone they meet.

The ability to help people help themselves by listening and understanding, rather than giving advice (‘Meet people where they are’).

Emotional intelligence.

Trust in others and in the decentralized network.

Inspiration (to others).

Tolerance for ambiguity.

A hands-off approach. Catalysts do not interfere with, or try to control the behaviour of the contributing members of the decentralized organization.

Ability to let go. After building up a decentralized organization, catalysts move on rather than trying to take control.

[Brafman and Beckstron (2006)]

Framework for decision making

Tailor your decision-making approach to the type of situation you’re facing-

SIMPLE CONTEXT: assess the facts, categorize them and then respond based on previous experience

COMPLICATED CONTEXT: there may be multiple right answers, so use expertise to analyse the facts and recommend the best response

COMPLEX CONTEXT: there are no right answers. Patiently allow the path forward to reveal itself through increased levels of interaction and communication

CHAOTIC CONTEXT: only turbulence exists and searching for right answers is pointless. Act quickly to restore enough order, then ease off the command and control as things improve.

Snowden & Boone (2007)

Creativity and performance can be enhanced by

Understanding the context of the problem

avoiding to much analysis

Using simplest analytical tool

Constantly reviewing the implementation process

Continuously evaluate performance feeback

Adjustment

A change leadership pathway

Leading change through uncertainty:

Deepening Commitment

Aligning Strategy

Focusing Action

Growing Capability

Clarifying Progress

[for more information see www.integralchange.co.uk]

Skills for leading through uncertainty

Presence and ‘deep listening’: opening beyond our preconceptions and historical ways of making sense

The importance of ‘framing: a guiding rather than controlling way of leading

Developing the capacity to ‘contain’: providing a holding environment where things can be worked through

Negative capability: resisting habitual patterns of pressured action

Practising self-care: tending to one’s own physical, emotional and mental well-being.

Nikolaos Dimitriadis Alexanddros Psychogious Neuroscience for leaders 2nd edition SBN-13: 978-0749475512 ISBN-10: 074947551X Step one Clear your mind

“pay attention to what is happening beneath your judgement the event what is happening not your interpretation

Acknowledge your emotional response reaction – interpretation- judgements – stories

Understand other possible views perspectives

Search for most empowering constructive productuv way to deal with situation

Actively ask questions --- brings more energy to you rational par of the brain

Deal with complexity

By dealing many bets approach the project from multiple perspectives

Minimize the size of the bets

Take the smallest executable steps

Calculate affordable loss

Use passion values the why to fuel

Summary

There is increasing uncertainty and instability in the world, which is driving us towards more fear, anxiety and self-focus

Uncertainty and change can also provoke active engagement, enthusiasm and highly creative responses from people. This appears to happen when there is a temporary structure accompanied by short-term goals.

Leaders need to be clear about what types of decision they are being faced with, and how best to tackle them. In a complex situation, more patience, interaction, and communication is likely to be required.

Leading through uncertainty in a complex setting requires the mastery of a number of change phases, and a set of mature leadership skills.

REFLECT & DISCUSS

Read Cameron & Green, 2019 pp 450 - 466

Think of a big decision you have faced over the past two years, or you’re facing right now. What type of situation is this? How might your approach be modified according to Snowden and Boone’s advice? (use slide 8, or pp 451 - 452)

What would be the likely impact of a Senior Project Manager of a complex IT-led change project not having developed the capacity to act as a container on stakeholders, clients, functional heads, project outcomes etc? (see slide 10 or pp 460 - 466)

Further Reading

A Leader’s Framework for Decision Making, Snowden and Boone (HBR, 2007)

The Art of Decisions, Blake (Financial Times, 2008)

Altered Traits: Science Reveals How Meditation Changes Your Mind, Brain, and Body by Daniel Goleman and Richard J. Davidson. Penguin Random House, LLC, New York, NY, 2017, 336 pages, ISBN-10: 9780399184383.

REFLECT & DISCUSS

Read Cameron & Green, 2019 pp 344 – 350

Think of an organization you know well. Which of the issues listed on Sides 4 & 5 is the organization actively dealing with, and which are being left to one side? What might your advice be to the CEO and the leadership team given what you’ve just read?

1. Opposition through rejection

2. Ignorance through non-responsiveness

3. Risk through compliance

4. Cost through efficiency

5. Competitive advantage proactivity

6. Transformation the sustaining corporation

Dunphy et al (2014)