System Thinking about "Sustainable" Change

Craig A. Stevens www.e-WBS.com

“Sustainable” Change A Systems Approach to Making Change A Competitive Advantage

Systems Thinking about

Craig A. Stevens • LinkedInhttps://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_b ook_1 • Art Website – www.craigastevens.com • Art Facebook Pagehttps://www.facebook.com/craigastevensart • Email Address –craigastevens@westbrookstevens.com • Link to Presentations - www.issuu.com/craigastevens

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

Well, there’s your problem…. Things Deteriorate Law of Entropy 2nd Law of Thermodynamics Happy Results Over Time Takes Work But There are Bigger Issues www.issuu.com/craigastevens

Operational

Quality,

Productive

…requires the understanding that Every Person, Thing (Animal, Vegetable, or Mineral), Organization, Product, Service, Business, and Great Idea Everything goes through a lifecycle

Business,

Excellence,

and

Sustainability

Normal Business Lifecycles Management Mature Aging Growth Embryonic Entrepreneur Sophisticated Critical Administrator Opportunistic Products Lifecycles Feasibility Acquisition or Development Operation Disposal Copyright © 2007, www.WestbrookStevens.Com 6 Cash Cow Dog Star Question Mark

What is the Solution?

The 9 Linked Management Models of the Full Cycle of Change Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) • 9LMM Level 1 - WB – TBD • 9LMM Level 2 - YB -TBD

Engine of Change Drivers of Change Strategy and the Storms of Chaos (2)People (1a)EXTERNAL ENVIRONMENT, International (1b)EXTERNAL ENVIRONMENT,Domestic (4)INTERNAL ENVIRONMENT(3)ORGANIZATIONAL STRUCTURE (5)SYSTEMS Model 2 – The Seven Attributes of Excellent Management 7 5 3 6 9 Project Management (Traditional/Agile) Process of Change 8 The Three Phases of Change 2 Assessment Phase ProblemSolving SolutionsPhase ImplementationPhase

Model 7 - The Three Phases of Change Management Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) 3PCM Level 1 - WB - TBD 2PCM Level 2 - YB - TBD

Where does the shape of the change curves come from?

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)

2nd Order Change Curve

Metamorphosis

or Revolution

Doing Things in a Different Way

Change Management or Transition Management (People Change)

Parts of Change Management Change Management (Changes to Processes and Systems During a Project) Time it Takes to Execute a Change Change Management or Configuration Management or Change Control

Three

Do All changes Lead to good?

What We Want to Happen

Time it Takes to Execute the Transition

Risk and the “J” Curve 12/6/2022 Breakeven Point Negative ROI Positive ROI Good Risk Management Average Risk Management Poor Risk Management Copyright © 2007, www.WestbrookStevens.Com 21 The Change Curve Is More Than Emotion IBM Study Found Hundreds of Differences Between Good and Average

Difference Between Excellent and Average Management

Still

Level of Improvement You Consider Successful

in Timing to Success Depth Of Dip

Positive But Not Optimal The

Difference

However, Success Can Be Messy

Time it Takes to Execute the Transition

Risk 2 - Success may take longer than expected

Risk 1 - Risk can be higher with the dip deeper 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

Start

Metamorphoses

Risk 4

Failed Execution

Difference Between Success and Failure at the Point We Recognize Failure

The Risk of Lost Ground from Where We Started

–

What if it is the wrong change?

II. THE FIFTH DISCIPLINE: THE CORNERSTONE OF THE LEARNING ORGANIZATION

Poor Strategic Change Management = 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.

The

Doubleday, 1994

Peter M. Senge, The Fifth Discipline, TheArt & Practice of

Learning Organization, Currency

Things May Prematurely Get Worse (Before the Natural Life Cycles Terminate) Because of Poor Decisions, or Poor Change Management, or Failure to Anticipate the Future, or Making Decisions Based on Emotion, or Censoring What You Don’t Want to Hear, or Not Thinking Systems, or Not Thinking Cradle-to-Grave-to-Cradle, or Not Looking At Entire Life-Cycle

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?

Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) • 7AEM Level 1 - WB - TBD • 7AEM Level 2 - YB - TBD Model 2 - The Seven Attributes of Excellent Management

How Can we Minimize the Natural Cocoon Phase/Dip ?

06/18/2001 Westbrook Stevens 14 Before A Change During A Change After A Change Productivity, Morale, Quality Natural Cocoon Phase 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) 12/6/2022 The Dip is Made Up of the 7 Attributes We Can Control the Depth of the Cocoon Phase

Link to e-WBS.com - Driving Toward Excellence by Measuring Performance

People and Team Building

Westbrook Stevens, Seven Attributes of Excellent Management Model, 1990 ©

Elements Required For Successful Change

Vision Vision Vision Vision Vision Vision Vision Resources Resources Resources Resources Resources Resources Resources Capable Workforce Capable Workforce Capable Workforce Capable Workforce Capable Workforce Capable Workforce Capable Workforce Capable Processes Capable Processes Capable Processes Capable Processes Capable Processes Capable Processes Capable Processes Organizational Culture Organizational Culture Organizational Culture Organizational Culture Organizational Culture Organizational Culture Organizational Culture Incentives Incentives Incentives Incentives Incentives Incentives Incentives Action Plan Action Plan Action Plan Action Plan Action Plan Action Plan Action Plan Change Confusion Anxiety and Frustration False Starts Slow or Little Progress Reinventing the Wheel Barriers to Change Sporadic Change Leadership Systems and Processes Problem Solving / Skills Culture Problem Solving/Skills Tools People Systems and People

Adapted from Palma Buttles Valdez, Carnegie Mellon ,Process improvement Briefing to Software Engineering Institute, 2008 – who adapted it from and Dr. Mary Lippitt, Enterprise Management, LTD., 1987, ttp://www.jcse.org.za/upload/events/37/organisational_culture_and_people_issues_in_process_improvementdrpalma_buttlesvaldez.pdf 2/13 2013

The Three Phases of A Change

Before the Change During the Change After the Change

craigastevens@westbrookstevens.com

Model 8 - Project Management Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) • PM Level 1 – WB • PM Level 2 – YB • PM Level 2 - GB • PM Level 2 - BB

The Four Phases of Project Management (Traditional/Agile) Concept Transfer and Closure Executing (Agile or Traditional) Planning Scope/Requirements All the lifecycles for both Agile and Traditional PM can be divided into 4 phases. 1. Concept Phase 2. Planning Phase 3. Executing or Implementation Phase (Agile includes many cycles) 4. Transfer and Closure Phase

Model 9 - The Five Elements of the Drivers of Change Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) • 4EDC Level 1 - WB – TBD • 4WSC Level 2 - YB - TBD

What happens after a change is implemented?

Is there a Real “Butterfly Effect” in Nature

Time and Distance Affects the Change Curve Within the Organization

12/6/2022 (2) People (1a) EXTERNAL ENVIRONMENT, International (1b) EXTERNAL ENVIRONMENT, Domestic (4) INTERNAL ENVIRONMENT (5) SYSTEMS

12/6/2022 (5) People (Behavior Theory) (1a) EXTERNAL ENVIRONMENT, International (1b) EXTERNAL ENVIRONMENT, Domestic (3) INTERNAL ENVIRONMENT (4) SYSTEMS Inputs Excellence The Organization as a System ISO Quality Standards Dissertation Attempt #2

Model 1 - Systems Thinking - Loops and Layers Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) • STLL Level 1 - WB – TBD • STLL Level 2 - YB - TBD

What about Systems Thinking?

From unknown source show example of land.

Physical Systems and Processes can be Tied Together in Layers

https://searchapparchitecture.techtarget.com/answer/How will microservices development benefit enterprise architecturehttps://searchapparchitecture.techtarget.com/answer/How-will-microservices-development-benefitenterprise-architecture - Twain Taylor

8/7/2019 Westbrook Stevens 144 Sales Satisfied Customers Positive Word of Mouth Example Size of Town Number of Jobs being worked Skills Available One of the Biggest Problems

& Practice

12/6/202251

Peter M. Senge, The Fifth Discipline, TheArt

of The Learning Organization, Currency Doubleday, 1994

More Maintenance More Equipment Delays More Equipment Cost Delays Fares Find Service Personnel Find Maintenance Personnel Find Train/Engineers Personnel Hiring Personnel Delays Very Long Delays Long Delays Training Personnel Delays Personnel Morale Turnover Productivity and Quality Delays Delays Temporary Staffing Consulting Delays Experience Delays Job Rotation Team Management Willingness to Ride Debt Cash Flow Profits Interest Rate Wages Cost of Marketing Market Segments Market Size Competitors Services Competitors Fares Reputation Delays Delays Delays Delays Delays Human Resources Equipment Fleet Competitiveness Factors Financial Variables 12/6/202252

Model 3 - The Three Phases of Design Thinking Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) • 3PDT Level 1 - WB – TBD • 3PDT Level 2 - YB - TBD

We can’t do everything we want, Right?

Product

Thinking Analysis “Understand” Problem Solving “Explore” Implement “Materialize”

Design

Different Models of Design Thinking

From HBR’s 10 Must Read Articles on Design Thinking - Perspective: Linking Design Thinking with Innovation Outcomes through Cognitive Bias Reduction Jeanne Liedtka

Analysis “Understand” Problem Solving “Explore” Implement “Materialize” 1: Emphasize – Develop an understanding of the users and the job that the product, service, or solution does for the users. 2: Define – Combine data, explore users’ problems, and investigate “what is”. (Form, Fit, and Function) 3: Ideate –Generate wild and crazy ideas of “what if” and “what wows.” Value Engineering 4: Prototype – Build prototypes, simulations, trial-anderror, and find “what works.” 5: Testing – Show, demo, work with and get feedback from the users. 6: Implement – Put vision and solutions into action. Attitude of EMPATHY Attitude of EMBRACING AMBIGUITY Attitude of EXPERIMENTATION Attitude of CREATIVE CONFIDENCE Design Thinking (Systems Thinking)

Model 4 - The Three Phases of Continuous Improvement Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) • 3PCI Level 1 - WB – TBD • 3PCI Level 2 - YB - TBD

Where do incremental changes come from?

Our Three Easy to Understand and Use Improvement Phases 63 A = Assessments P = Problem Solving I = Implementation Using Project Management Tools/Support KISS Principle of Process Improvement and Lean and 6-Sigma Compared to 6-Sigma - Tools Goals Remove Variations and Improve Quality Define Measure Analyze Define Measure Analyze Implement Control

Three Phases of Continuous Improvement (3PCI) A = Assessments P = Problem Solving I = Implementation Using Project Management Tools/Support Role of the CI, Lean, Six Sigma Team Role of the Operations Teams

The

Model 5 - The Five Elements of the Strategy and the Storm of Choas Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) • 5ESC Level 1 - WB – TBD • 5ESC Level 2 - YB - TBD

Where do major changes come from?

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 Storm Waves of Trends

The

the

Opportunities

Buoyancy

Lightning What Important Issues do You See Coming For Your Organization Over

Next 5 Year

and Threats

The Forces of Chaotic Change and Thrive-ability

Westbrook Stevens Storms of Chaotic Change The Lightning --

Stack of Papers (represent you and your work)

The Waves -Foreseeable Future Events

Unforeseeable Future Events

The

Your

Opportunities

The Storm Waves of Trends The Buoyancy

Lightning What Important Issues do You See Coming For

Organization Over the Next 5 Year

and Threats

The Forces of Chaotic Change and Thrive-ability

Westbrook Stevens Storms of Chaotic Change

Stack of Papers (represent you and your work)

The Waves

Foreseeable Future Events

Unforeseeable Future Events The Buoyancy -- Supporting Market, Societal, Political and OtherAllied Forces

The Lightning --

Opportunities

The Storm Waves of Trends The Buoyancy The Lightning What Important Issues do You See Coming For Your Organization Over the Next 5 Year

and Threats

The

Stack of Papers (represent you and your work)

Forces of Chaotic Change and Thrive-ability The Waves -Foreseeable Future Events Westbrook Stevens Storms of Chaotic Change The Lightning -Unforeseeable Future Events The Buoyancy -- Supporting Market, Societal, Political and OtherAllied Forces The Storm -Threatening Competition, Societal, Political and Other Enemy Forces

The Storm Waves of Trends

The

Your

Opportunities

Buoyancy

Lightning What Important Issues do You See Coming For

Organization Over the Next 5 Year

and Threats

The

Stack of Papers (represent you and your work)

The Storm Waves of Trends

The Lightning

The Buoyancy

Of the SevenAttributes of Excellent Management what are your… Strengths and Weaknesses?

What do we need to do to take advantage of the opportunities and prepare for the threats?

Assessment Phase Problem Solving Solutions Phase Implementation Phase Strategy Continuous Improvement Design Thinking The Interrelationships

Change

Leading to

Model 6 - The Two Gates To Change Workshops, Training, Coaching, and Materials Available (www.e-WBS.com) • 2GTC Level 1 - WB – TBD • 2GTC Level 2 - YB - TBD

We can’t do everything we want, Right?

Planning Project Selection

and Configuration Management

Program

Process Improvement Lean Productivity Improvement Industrial/Systems Engineering And Other Projects

Strategic

Portfolio

Project Management

Management

The Change Management Organizational Umbrella that Brings it all Together Workshops, Training, Coaching, and Materials Available (www.e-WBS.com)

Change Management Cycle

Management Organization (CMO/PMO)

Change

Organizational Change Management Umbrella (PMO/CM0) 7 Attributes, Drivers, People, Quality, Productivity, Lean Six Sigma, Systems, OD, Etc. Core Competencies A Systems Approach to Change Management and Its Relationship to Operational Excellence in Healthcare and other Service Organizations CMO and PMO Policies Standards Systems Processes Resources Training Copyright © 2007, www.WestbrookStevens.Com 87