The Cycle of Change Management

THE CYCLE OF CHANGE MANAGEMENT THE 7 LINKED MANAGEMENT MODELS AND THE CMO/PMO ORGANIZATION THAT WOULD SUPPORT IT.

WHO AM I? • LinkedIn - https://www.linkedin.com/in/craigastevens/ • Consulting Website – www.e-WBS.com • Books - https://www.amazon.com/Craig-AStevens/e/B07ZQG2YJM/ref=dp_byline_cont_pop_book_1 • Art Website – www.craigastevens.com • Art Facebook Page https://www.facebook.com/craigastevensart • Email Address – craigastevens@westbrookstevens.com • Link to Presentation - www.issuu.com/craigastevens

WHAT ARE WE TALKING ABOUT?

Phase 1 – The Three Phases of Change

Process of Change

5 (1a) EXTERNAL ENVIRONMENT, International

NA TIO

(1b) EXTERNAL ENVIRONMENT, Domestic

ST RU CT IZA N A UR G R (4) INTERNAL E O (3)

ENVIRONMENT

(5) SYSTEMS

(2) People

Assessment Phase

Problem Solving Solutions Phase

Implementation Phase

Engine of Change Phase 2 – The Seven Attributes of Excellent Management

Phase 5 – Drivers of Change

Phase 4 – Continuous Improvement

Phase 3 – Strategy and the Storms of Chaos

6 Phase 6 – Systems Thinking

Change Management Organization (CMO/PMO)

Change Management Cycle

BUT WHY IS THIS IMPORTANT?

Either change or become irrelevant! If you are not disrupting yourself, you will be playing by someone else's rules “In times of change, learners inherit the earth, while the learned are beautifully equipped to deal with a world that no longer exists!” Roland Barth

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2ND LAW OF THERMODYNAMICS There is a problem…. Things Deteriorate

Law of Entropy Happy Results Over Time Takes Work

But There are Bigger Issues

Business, Operational Excellence, Quality, and Productive Sustainability

…requires the understanding that Every Person, Thing (Animal, Vegetable, or Mineral), Organization, Product, Service, and Business

• Everything goes through a lifecycle

Normal Business Lifecycles Management Cash Cow

Question Mark Star

Dog

Embryonic

Feasibility

Products Lifecycles

Entrepreneur

Growth

Mature Operation

Aging

Acquisition or Development

Disposal

Sophisticated Critical Administrator

Opportunistic

WHAT IS THE SOLUTION?

Therefore, Sustainability Requires Change!

WHERE DOES THE SHAPE OF THE CHANGE CURVES COME FROM?

www.westbrookstevens.com

Change and Murphy’s Law Even when you change for the better….

"Things (ALWAYS) will get worse before they get better" Ehrman's Commentary on Ginberg's Theorem (from the infamous Murphy's Laws)

MODEL 1 – THE THREE PHASES OF CHANGE White Belt Training It is all about Change and Making Things Happen

Decline

Maturity

Growth

Introduction

Development

Cash

Product Lifecycle

Revenue Profit

+ Zero -

Time

DO ALL CHANGES LEAD TO GOOD?

What We Want to Happen

Time it Takes to Execute the Transition

Risk and the “J” Curve The Change Curve Is More Than Emotion

Positive ROI

Good Risk Management

Average Risk Management

Breakeven Point

Negative ROI

9/20/2021

IBM Study Found Hundreds of Differences Between Good and Average

Poor Risk Management

Difference Between Excellent and Average Management Still Positive But Not Optimal

Difference in Timing to Success

The Level of Improvement You Consider Successful

Depth Of Dip

However, Success Can Be Messy Time it Takes to Execute the Transition

Risk 2 - Success may take longer than expected

Changes, Forced on an Organization and Reactively Managed and Changed in the Middle of the Project with a Positive Result

Risk 3 – Changing in the Middle of a Change

Metamorphoses

Start

Risk 4 – Failed Execution

Difference Between Success and Failure at the Point We Recognize Failure

WHAT IF IT IS THE WRONG CHANGE?

II. THE FIFTH DISCIPLINE: THE CORNERSTONE OF THE Poor Strategic Change Management = LEARNING ORGANIZATION

Sad Results Over Time

The laws of the fifth discipline

1. Today’s problems come from yesterday’s solutions – usually because they shift the

problem from one part of the system to another, so to the person who applied the solution, it appears to have gone away. 2. The harder you push, the harder the system pushes back – compensating feedback, eg a scheme to provide low cost housing and job training in one place is flooded by low-income migrants so problems get worse.

3. Things get better before they get worse

– eg, new wells

are dug and villages are saved; but this lowers the water table faster so in the long-term droughts are worse than before. 4. The easy way out usually leads back in. 5. The cure can be worse than the disease – the most insidious effect of non-systematic solutions is the need for more and more of the solution. Ill-conceived interventions, whether by the government or by an individual trying to solve their stress problems by social drinking, not only fails to solve the problem but leads to addiction. It’s a problem of ‘shifting the burden to the intervener’. 6. Faster is slower – in a complex system, fastest growth is not the best. In organisms, they lead to cancer; in organizations, they lead to crisis. 7. Cause and effect are not closely related in time and space. 8. Small changes can produce big results, but the areas of highest leverage are often the least obvious – it takes a huge force to turn a moving oil tanker to the left by pushing the bow to the left, but it can be done easily by turning a small rudder to the left, which by changing the water pressure, sucks the stern to the right. To realize this you have to understand the complexities of hydrodynamics. Learning to see underlying ‘structures’ rather than ‘events’, and to think in terms of ‘processes’ rather than ‘snapshots’, helps you spot the points of leverage. 9. You can have your cake and eat it too, but not at once – manufacturers used to think that you had to choose between high quality and low cost, but then discovered that raising quality meant improved methods, lower warranty costs, fewer complaints, higher sales, and so eventually lower costs as well. 10. Dividing an elephant in half does not make two smaller elephants – if you set up strong divisions between different parts of the organization, you don’t get each one working independently, you just get a mess. The heads of marketing, manufacturing and research are often like the blind men trying to describe an elephant. 11. There is no blame – the cure for problems is in relationships and systems.

Peter M. Senge, The Fifth Discipline, The Art & Practice of The Learning Organization, Currency Doubleday, 1994

Things May Prematurely Get Worse (Before the Natural Life Cycles Terminate)

Because of Poor Change Management and Failure to Anticipate the Future

Risk 5 - The Best Managed Change May Still Fail Because it is the Wrong Change at the Wrong Time

HOW DOES CHANGE HAPPEN IN OUR ORGANIZATIONS?

Phase 1 – The Three Phases of Change

Process of Change

5 (1a) EXTERNAL ENVIRONMENT, International

NA TIO

(1b) EXTERNAL ENVIRONMENT, Domestic

ST RU CT IZA N A UR G R (4) INTERNAL E O (3)

ENVIRONMENT

(5) SYSTEMS

(2) People

Assessment Phase

Problem Solving Solutions Phase

Implementation Phase

Engine of Change Phase 2 – The Seven Attributes of Excellent Management

Phase 5 – Drivers of Change

Phase 4 – Continuous Improvement Phase 3 – Strategy and the Storms of Chaos

6 Phase 6 – Systems Thinking

1st Order Changes or Continuous Improvement Adapt

Adaptation or Evolution Adapt

Adapt

Start

nd 2

Order Change Curve Metamorphosis or Revolution

HOW CAN WE MINIMIZE THE NATURAL CHANGE VALLEY/COCOON PHASE/DIP ?

Phase 1 – The Three Phases of Change

Process of Change

5 (1a) EXTERNAL ENVIRONMENT, International

NA TIO

(1b) EXTERNAL ENVIRONMENT, Domestic

ST RU CT IZA N A UR G R (4) INTERNAL E O (3)

ENVIRONMENT

(5) SYSTEMS

(2) People

Assessment Phase

Problem Solving Solutions Phase

Implementation Phase

Engine of Change Phase 2 – The Seven Attributes of Excellent Management

Phase 5 – Drivers of Change

Phase 4 – Continuous Improvement Phase 3 – Strategy and the Storms of Chaos

6 Phase 6 – Systems Thinking

We Can Control the Depth of the Cocoon Phase Productivity, Morale, Quality

Before A Change During A Change

After A Change

Natural Cocoon Phase

The Dip is Made Up of the 7 Attributes Function = F(x) = a (f(Leadership)) + b (f(Culture)) + c (f(Customer Focus)) + d (f(Teams)) + e (f(Problem Solving + Skills)) + g (f(Change Management + Continuous Improvement) + h (f(Performance Measurement)

9/20/2021

06/18/2001

Westbrook Stevens

The Seven Attributes Required For Excellent (Change) Management

White Belt Training

Geronimo Stone – and other Books:

Policies

Training

https://www.amazon.com/Craig-AStevens/e/B07ZQG2YJM/ref=dp_b yline_cont_pop_book_1

Standards

CMO PMO Systems

Resources

Processes

Assess the Seven Attributes of Excellence Management

People and Team Building

1. 2. 3. 4. 5. 6. 7.

Leadership Culture Customer Focus People – Engagement, Motivation, and Teamwork Core Competencies Change/CI of Systems and Processes Performance Measures Westbrook Stevens, Seven Attributes of Excellent Management Model, 1990 ©

craigastevens@westbrookstevens.com

THE THREE PHASES OF A CHANGE Before the Change

During the Change

After the Change

Project Management (PM) #1 Tool for Change

WHERE DO MAJOR CHANGES COME FROM?

Phase 1 – The Three Phases of Change

Process of Change

5 (1a) EXTERNAL ENVIRONMENT, International

NA TIO

(1b) EXTERNAL ENVIRONMENT, Domestic

ST RU CT IZA N A UR G R (4) INTERNAL E O (3)

ENVIRONMENT

(5) SYSTEMS

(2) People

Assessment Phase

Problem Solving Solutions Phase

Implementation Phase

Engine of Change Phase 2 – The Seven Attributes of Excellent Management

Phase 5 – Drivers of Change

Phase 4 – Continuous Improvement Phase 3 – Strategy and the Storms of Chaos

6 Phase 6 – Systems Thinking

Decide on the Key Strategies to Organizational Excellence

The Forces of Chaotic Change and Thrive-ability Westbrook Stevens Storms of Chaotic Change

The Waves -Foreseeable Future Events

Stack of Papers (represent you and your work)

The Forces of Chaotic Change and Thrive-ability Westbrook Stevens Storms of Chaotic Change

The Lightning -Unforeseeable Future Events

The Waves -Foreseeable Future Events

Stack of Papers (represent you and your work)

The Forces of Chaotic Change and Thrive-ability Westbrook Stevens Storms of Chaotic Change

The Lightning -Unforeseeable Future Events

The Waves -Foreseeable Future Events

Buoyancy -- Supporting Market, Stack ofThe Papers (represent you and your work) Societal, Political and Other Allied Forces

The Forces of Chaotic Change and Thrive-ability Westbrook Stevens Storms of Chaotic Change

The Lightning -Unforeseeable Future Events

The Storm -Threatening Competition, Societal, Political and Other Enemy Forces

The Waves -Foreseeable Future Events

Buoyancy -- Supporting Market, Stack ofThe Papers (represent you and your work) Societal, Political and Other Allied Forces

What Important Issues do You See Coming For Your Organization Over the Next 5 Year

The Storm

The Lightning

Waves of Trends

The Buoyancy

Opportunities and Threats

The Forces of Chaotic Change and Thrive-ability Westbrook Stevens Storms of Chaotic Change

The Lightning -Unforeseeable Future Events

The Storm -Threatening Competition, Societal, Political and Other Enemy Forces

The Waves -Foreseeable Future Events

Buoyancy -- Supporting Market, Stack ofThe Papers (represent you and your work) Societal, Political and Other Allied Forces

Waves of Trends

The Storm

The Lightning

Review the Weaknesses from the Storms of Chaos Model. Work on a Solution…. And … Select a solution to implement.

The Buoyancy

WHERE DO INCREMENTAL CHANGES COME FROM?

Phase 1 – The Three Phases of Change

Process of Change

5 (1a) EXTERNAL ENVIRONMENT, International

NA TIO

(1b) EXTERNAL ENVIRONMENT, Domestic

ST RU CT IZA N A UR G R (4) INTERNAL E O (3)

ENVIRONMENT

(5) SYSTEMS

(2) People

Assessment Phase

Problem Solving Solutions Phase

Implementation Phase

Engine of Change Phase 2 – The Seven Attributes of Excellent Management

Phase 5 – Drivers of Change

Phase 4 – Continuous Improvement Phase 3 – Strategy and the Storms of Chaos

6 Phase 6 – Systems Thinking

craigastevens@westbrookstevens.com

1ST ORDER CHANGES OR CONTINUOUS IMPROVEMENT Adapt Adapt

Adapt

Start

9/20/2021

OUR THREE EASY TO UNDERSTAND AND USE IMPROVEMENT PHASES KISS Principle of Process Improvement and 6-Sigma

A= Assessments

Compared to 6-Sigma - Tools Goals Remove Variations and Improve Quality Define Measure Analyze

P = Problem Solving

I = Implementation Using Project Management Tools/Support

Define Measure Analyze Implement Control

OPERATIONAL ASSESSMENT PHASE (A)

Policies

Training

Standards

CMO PMO Systems

Resources

Processes

A= Assessments Phase

R = Readiness Phase - Problem Solving Solutions

The Goal is to “Only” Plant Flags 1. 2.

I = Implementation Phase 3.

Plant Red Flags for Problems to Solve Plant Green Flags for examples of excellence that will become Green Flag Reports for other to emulate Create a portfolio of red flags

3. Customer Focus

1. Leadership

2. Culture

Using the 7 Attributes of the Mobile of Excellent Management, How Would We Assess Our Organization’s Weaknesses From the Storms of Chaos Example

5. Core Competencies

6. Systems/ Processes

4. People

7. Metrics

OUR THREE EASY TO UNDERSTAND AND USE IMPROVEMENT PHASES

KISS Principle of Process Improvement Portfolio Management Use the 1 to 1 Comparison tool and decide on the Order of the Problems to Solve. Then Let’s Talk About Tools for finding solutions.

A= Assessments

P = Problem Solving

Lean Tools 1. Root Cause Analysis 2. Value Stream Mapping 3. Flow Charting 4. A3 Processing and Reporting 5. Spaghetti Diagram 6. 5 S Events

I = Implementation Using Project Management Tools/Support

READINESS PHASE – PROBLEM SOLVING (R)

Policies

Training

Standards

CMO PMO Systems

Resources

Processes

A= Assessments Phase

Goal is to “Only” Find Solutions

GFR GRF

Solutions

R = Readiness Phase - Problem Solving Solutions

GFR Solutions Solutions

Solutions

Solutions I = Implementation Phase

• From the portfolio of problems, prioritize and select. • Use GFR, Lean, Six Sigma, etc. to solve. • Create a portfolio of solutions/projects.

OUR THREE EASY TO UNDERSTAND AND USE IMPROVEMENT PHASES KISS Principle of Process Improvement A= Assessments

Portfolio Management Use the 1 to 1 Comparison tool and decide on the Problems to Solve. P = Problem Solving

I = Implementation Using Project Management Tools/Support

Lean Tools 1. Root Cause Analysis 2. Value Stream Mapping 3. Flow Charting 4. A3 Processing and Reporting 5. Spaghetti Diagram 6. 5 S Events

IMPLEMENTATION PHASE (I)

Policies

Training

Standards

CMO PMO Systems

Resources

Processes

A= Assessments Phase

Goal is to Implement Solutions

Fix R = Readiness Phase - Problem Solving Solutions

Fix

Do Do

I = Implementation Phase

Fix

Do Do Do

• From the portfolio of solutions/projects, prioritize and select. • Use Project Management to implement • Concept Phase • Planning Phase • Execution Phase • Transition Phase

THE THREE PHASES OF CONTINUOUS IMPROVEMENT (3PCI) Role of the CI, Lean, Six Sigma Team

A= Assessments

P = Problem Solving

Role of the Operations Teams

I = Implementation Using Project Management Tools/Support

WHAT HAPPENS AFTER A CHANGE IN IMPLEMENTED?

Phase 1 – The Three Phases of Change

Process of Change

5 (1a) EXTERNAL ENVIRONMENT, International

NA TIO

(1b) EXTERNAL ENVIRONMENT, Domestic

ST RU CT IZA N A UR G R (4) INTERNAL E O (3)

ENVIRONMENT

(5) SYSTEMS

(2) People

Assessment Phase

Problem Solving Solutions Phase

Implementation Phase

Engine of Change Phase 2 – The Seven Attributes of Excellent Management

Phase 5 – Drivers of Change

Phase 4 – Continuous Improvement Phase 3 – Strategy and the Storms of Chaos

6 Phase 6 – Systems Thinking

Is there a Real “Butterfly Effect” in Nature Time and Distance Affects the Change Curve Within the Organization

Successfully Managing Change • Requires Understanding That Every Change Drives Other Changes to One or More of Five Elements • (Drivers of Change Model)

(1a) EXTERNAL ENVIRONMENT, International

(1b) EXTERNAL ENVIRONMENT, Domestic

(4) INTERNAL ENVIRONMENT

(5) SYSTEMS

(2) People 9/20/2021

The Organization as a System ISO Quality Standards

(1a) EXTERNAL ENVIRONMENT, International

(1b) EXTERNAL ENVIRONMENT, Domestic

(3) INTERNAL ENVIRONMENT

Inputs

Excellence (4) SYSTEMS

(5) People (Behavior Theory)

9/20/2021

Dissertation Attempt #2

Possible Unintended Changes Think about one of the changes we talked about during the Storms of Chaos (or Another One)

People Changes

How might that change drive other changes within your organization?

Internal Environmental Changes

External Environmental Changes

Your Ship

Organizational Structure Changes

Systems Changes

External Environment

Internal Environment

People

Using the Seven Attributes of the Mobile of Excellent Management How Might We Address the Secondary Changes Within Our Organization

Organization Structure

Systems

Phase 1 – The Three Phases of Change

Process of Change

5 (1a) EXTERNAL ENVIRONMENT, International

NA TIO

(1b) EXTERNAL ENVIRONMENT, Domestic

ST RU CT IZA N A UR G R (4) INTERNAL E O (3)

ENVIRONMENT

(5) SYSTEMS

(2) People

Assessment Phase

Problem Solving Solutions Phase

Implementation Phase

Engine of Change Phase 2 – The Seven Attributes of Excellent Management

Phase 5 – Drivers of Change

Phase 4 – Continuous Improvement Phase 3 – Strategy and the Storms of Chaos

6 Phase 6 – Systems Thinking

WHAT SYSTEMS THINKING?

What are Systems • Systems are boarder than processes. • Processes are also systems, but the word “systems” also covers other things, tools, methods, thoughts, and infrastructures. • Systems may have many parts or subsystems. 9/20/2021

PHYSICAL SYSTEMS AND PROCESSES CAN BE TIED TOGETHER IN LAYERS

From unknown source show example of land. https://searchapparchitecture.techtarget.com/answer/How-will-microservices-development-benefit-enterprisearchitecturehttps://searchapparchitecture.techtarget.com/answer/How-will-microservices-development-benefitenterprise-architecture - Twain Taylor

Peter M. Senge, The Fifth Discipline, The Art & Practice of The Learning Organization, Currency Doubleday, 1994

Example

Number of Jobs being worked

Sales

Positive Word of Mouth

Satisfied Customers

Size of Town Skills Available

One of the Biggest Problems Westbrook Stevens

8/7/2019

144

9/20/2021

Financial Variables

Competitors Services

Competitors Fares

Fares

Delays

Competitiveness Factors

Delays Profits Market Segments

Market Size Delays

Willingness to Ride

Wages

Delays Cost of Marketing Reputation

Satisfied Customers

Cash Flow

Positive Word of Mouth

More Routes, Stops and Services Service Hours

Interest Rate Delays

Debt More Equipment Cost

More Trips

More Equipment

Equipment Fleet

Productivity and Quality

Delays

More Sales

Delays

Higher Capacity in Cars

Delays Delays

Delays Positive Media

Consulting

More Maintenance More Jobs

Find Maintenance Personnel

Find Train/Engineers Personnel

More Work For Existing Personnel

Temporary Staffing

Delays

Experience

Find Service Personnel

Delays

Training Personnel

Job Rotation Long Delays

Very Long Delays

Team Management

Delays

Turnover

Delays

Morale Delays Hiring Personnel

9/20/2021 Human Resources

WE CAN’T TO EVERYTHING WE WANT, RIGHT?

Phase 1 – The Three Phases of Change

Process of Change

5 (1a) EXTERNAL ENVIRONMENT, International

NA TIO

(1b) EXTERNAL ENVIRONMENT, Domestic

ST RU CT IZA N A UR G R (4) INTERNAL E O (3)

ENVIRONMENT

(5) SYSTEMS

(2) People

Assessment Phase

Problem Solving Solutions Phase

Implementation Phase

Engine of Change Phase 2 – The Seven Attributes of Excellent Management

Phase 5 – Drivers of Change

Phase 4 – Continuous Improvement Phase 3 – Strategy and the Storms of Chaos

6 Phase 6 – Systems Thinking

Strategic Planning

Industrial/Systems Engineering

Process Improvement

Lean

Productivity Improvement

Project Selection Portfolio Management

Project Management Program Management

Core Competencies

Organizational Change Management Umbrella

A Systems Approach to Change Management and Its Relationship to Operational Excellence in Healthcare and other Service Organizations

7 Attributes, Drivers, People, Quality, Productivity, Lean Six Sigma, Systems, OD, Etc.

CMO and PMO 1. Policies 2. Standards 3. Systems 4. Processes 5. Resources 6. Training

CONTACT ME! • LinkedIn - https://www.linkedin.com/in/craigastevens/ • Consulting Website – www.e-WBS.com • Books - https://www.amazon.com/Craig-A-Stevens/e/B07ZQG2YJM/ref=dp_byline_cont_pop_book_1

• Art Website – www.craigastevens.com • Art Facebook Page - https://www.facebook.com/craigastevensart • Email Address – craigastevens@westbrookstevens.com • Link to Presentation - www.issuu.com/craigastevens