Change model: You will choose one model regarding organizational change and explain it in depth. You are to research the model and t

2021 Living Change ©Eli Sopow PhD 0

LIVING CHANGE

A guide to understanding and leading change in organizations and life

Eli Sopow PhD Version V 2021

Prepared for use in MBA MGMT 643 Change Management University Canada West

2021 Living Change ©Eli Sopow PhD 1

The author

Eli Sopow PhD Faculty Professor, MBA program University Canada West Vancouver BC Canada www.elisopow.org Dr. Eli Sopow, a faculty professor at University Canada West and an organization consultant, has 40 years of national and international award-winning, diverse senior management and leadership experience working in journalism, as an Associate Deputy Minister in government, the vice-present and partner with an international consulting firm, and 18 years serving as a civilian member of the Royal Canadian Mounted Police—Canada’s national police service. As a consultant his firm provided services to major organizations throughout North and South America and in Southeast Asia. At the RCMP Dr. Sopow was Division Director of Research, Analysis, and Strategic Intelligence within the Operations Strategy Branch. He also served for two years as Research Director of the national RCMP Change Management Project. In addition, he was a staff instructor in change management, public order protests, and strategic communications at the RCMP Pacific Region Training Centre. With top-secret security clearance Dr. Sopow’s work included identifying for senior management critical issues impacting public order and safety and the analysis of external factors impacting the Division strategic plan. He has completed employee surveys and analyses at over 500 workplaces including over 15,000 employees. Dr. Sopow holds a PhD in Human & Organizational Systems, Master’s degrees in both Human Development and Leadership, and a Certificate in Peer Counselling. His undergraduate studies were in Public Administration. He is also the author of over 80 emerging issues environmental impact-analyses plus four books dealing with human and organizational behavior, three books on change and management, plus several peer-reviewed journal articles.

The cover: The graphic on the cover is the mathematical plot trajectory of the “Lorenz attractor” also commonly called the famous “Butterfly Effect.” It shows what happens to data projections if just a very small change is made to a formula with many variables. The discovery was made in 1960 by North American theoretical meteorologist Dr. Edward Lorenz. It is one of the great achievements of twentieth- century physics and a major contribution to chaos theory. Simply put, it means that in certain cases a very small change can dramatically change outcomes. The change: Six decimal places were stored in the computer's memory: .506127. To save space

on the printout, only three appeared: .506. Lorenz had entered the shorter, rounded-off numbers assuming that the difference of one part in a thousand was inconsequential. The result was a MAJOR change!

The student Prepared for continued reference and workplace use by the following student at University Canada West, MBA program. Name

2021 Living Change ©Eli Sopow PhD 2

How to use this guide

The purpose of the guide is to give you practical and useful tools to understand the rapidly changing external environment facing organizations and how their internal workplace environment can adapt to and lead change. A key message is that all factors are interconnected to some degree and a change in one can impact all others to varying degrees.

Section 1: Environmental scanning: provides you with new and proven tools to identify, evaluate, and analyze external environmental factors that impact an organization, commonly called an environmental scan. It is vital in today’s rapidly moving world to know which factors have a direct impact on your organization’s goals, reputation, profitability, and the needs of employees. It is also very important to know that these factors are interconnected and continually changing.

Section 2: Change management planning: provides the basics of developing a successful change management plan. There are many existing models of change management and the UCW 643 course will go over many. They key is to understand which approaches, or combination of approaches, are best to align an organization’s internal environment with its external environment. This section deals with the importance of communication, why change is resisted, and what employees and others need to know to support change.

Section 3: Changing you: It is very important to understand our own personal responses to change including our attitudes, behaviors, prejudices, and fears. This section will help you gain self-awareness that will help you not only live with but lead change.

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Table of contents

Introduction: The Continuous Change Cycle 5 30 facts you need to know about your organization 6 The 10 basics in brief: All involve communication 6 Part 1: Identifying the forces of change: Environmental scanning 7 The need for integrated environmental scanning 8 External environmental factors impacting an organization 9 Internal environmental factors 13 Internal employee systems factors that are connected to external organization environments 15 Aligning internal environments with external environments 14 The 6-Systems Network 15 Example: What to do, how to do it, and what to do with it 16 Using the Integrated Change Cycle Model environmental scan 17

Step 1: Getting to know the model 17 Step 2: What is outside? Measuring external environmental factors 18 Step 3: How external factors impact reach other 20 Step 4: Measuring internal environmental factors 22 Step 5: Aligning external with the internal environments 24

Several good sources for environmental scanning 27 Part 2: Developing a Change Management Plan 29 The 10 basics in brief: All involve communication 30 The purpose of a change management plan 31 Organizational change may be any or a combination of the following 32 When successful change (transformation) happens 33 Picking the right change management team 34 “Egosystems” versus “ecosystems” 37 Changing job satisfaction and/or morale 40 Chances of your change actions succeeding 41 Areas where a workplace has more control over change 43 Identifying supporters and detractors to change 45 The “3Ps” of employee needs during change 45 Finding and reducing the fear of change 46 The silent victim language of fear of change 47 How to turn fear into support—and conflict into collaboration 48 Project management and change management 49 Communicating the change action 51 Crafting your message content 52 Emotional, Simple, Personal the ESP of change communications 52 The W.H.O. cares about your change action model 53

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Audiences for change communication 54 Change, gender, multi-culturalism, and diversity in the workplace 57 Hidden communication power within the organization 58 Reaching out to employees and hearing back 59 No such thing as a communications gap 60 Believing is seeing in communications 61 Quick draft communication plan 62 Anticipating and managing conflict during change 63 Do changing behaviors change attitudes? 67 The positive never-ending “chaos” of change 68 Change lessons from complexity science 69 Anicca Wave of change management 69 “Static quo” versus “status quo:” A huge difference in the change continuum 70 Predicting organizational change: The Critical Issues RADAR 71 Handy references 72 Part 3: Changing who you are: 73 Do you know who you are? 74 “Know thyself” Part 1 75 The “Big 5” (OCEAN”) personality test 75 The Gibbs Reflective Cycle 76 Combining your OCEAN results with Gibbs to know yourself 76 “Know thyself” Part 2: The Action Formula 𝒌 ∗𝒆=𝒂 77 References 78

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INTRODUCTION: The Continuous Change Cycle The Continuous Change Cycle (below) shows how change is an emergent, interconnected, cyclical process that never goes back to exactly where it started but builds upon its own results, following a familiar path that continually offers new adventures. Throughout the process COMMUNICATIONS is a constant.

Follow the steps

1) What is the need for change—both urgency and purpose? WHY is there a need? 2) Is there clear, unwavering, consistent, and clear senior management absolute

commitment and support for change? Do you have a change management team? 3) Does your plan divide steps into easy-to-do actions within your control? It is clear who is

doing what, why, and when? 4) What is the personal, emotional impact (good and bad) that employees see from the

change? How will you change negatives into positives? 5) What are your simple, measurable, achievable, realistic, and time bound (SMART)

objectives and are you measuring both outputs (what you are doing) and outcomes (the impact/results)?

6) What potential conflicts have you identified? Why do they exist? What is your conflict management strategy? Are you prepared to change course in the face of facts?

7) How will you celebrate each success no matter how small? This builds morale, teamwork, creates momentum and teaches you how to win.

8) Once your change goal is achieved—what is next? Change does not stand still. What are your continuous improvement steps?

9) Finally (and ongoing) what changes do you predict over the next 12 to 36 months?

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30 facts you need to know about your organization

*not in order of importance

1. Name of organization or unit (obvious maybe…but may not be the official name)

2. Location (both headquarters and branch offices if they exist)

3. Organizational sector (technology, banking, construction, etc.)

4. Mission statement

5. Espoused set of values

6. Strategic plan including key priorities, objectives, and measures

7. Environmental scan

8. Services or products provided

9. Description of organizational culture

10. Description of organization structure

11. Description of organization workplace climate (job satisfaction/morale)

12. Key clients, customers, stakeholders

13. Key competitors

14. The organization’s key suppliers of goods, materials, and contract resources

15. The communication tools you regularly use to communicate to employees, customers,

clients, stakeholder groups, partner organizations, and government agencies

16. Any former change actions and the result

17. Any high-profile public or employee complaints about how the company treats its

employees or operates in the external environment

18. The average socio-demographic profile of your clients / customers

19. How long your organization has been in business

20. The number of employees who work directly and part-time for the organization

21. A breakdown of what units the different employees work in

22. The average age of all employees overall, and by the different work units

23. The percentage of women/men employees overall and in each work unit

24. The percentage of visible minorities in the overall workplace and within each work unit

25. The most common ethnic backgrounds of all employees working in management and

non-management

26. The percentage of your employees who are in supervisory or management, or senior

management positions

27. The percentage of your employees (if any) who belong to a union and have collective

bargaining rights. The expiry date of the current collective bargaining agreement

28. The trend over time in job satisfaction and morale

29. What government laws, by-laws, regulations, and legal requirements does the

organization operate under

30. The attrition rate within your organization (people quitting)

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PART 1 Identifying the forces of change

Organizational Environmental scanning

Using the Integrated Change Cycle©i Note: This material is related to Dr. Sopow’s research study Aligning Workplace Wellness With Global Change: An Integrated Model, published in the peer-reviewed Journal of Organization Change Management Emerald Publishing Ltd., (2020).

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The need for integrated environmental scanning In order to successfully adapt to and lead change you first need to understand what changes are occurring in both your external and internal organizational environment. This requires ongoing, thoughtful, analytical and valued-added environmental scanning. As the Society for Human Resource Management states:

Environmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats. An organization gathers information about the external world, its competitors and itself. The company should then respond to the information gathered by changing its strategies and plans when the need arises. ii

Equally important is the following statement:

…a scanning system can be considered effective if it generates awareness of environmental conditions, knowledge about the organization's strengths and weaknesses, and an awareness of existing or impending problems. However, only those scanning systems that are aligned with the requirements of organizational context would be expected to be effective.iii

The following tools and formats provide you with the power to identify and rate the nature and interconnectivity of how external environmental factors impact your internal environment and vice-versa (it is possible for a company, like Facebook or Google, to dramatically change all external environments). The process then allows you to make evidence-based decisions of where change actions need to occur. It is argued that while many organizations address the urgency of external forces through environmental scanning methodologies the direct link to internal environmental factors is not well established. This appears especially true as organizations attempt to address external environment challenges through continued reliance on mechanistic and linear/reductionist models of management developed decades ago. I argue that a focus on changing organizational technological, structural, and various systems without attention to the condition of the human factor, especially the impact on employee emotional wellness, will not provide solutions to managing change. The following is an integrated model that addresses the need to enmesh external environmental challenges with internal organization environment priorities, incorporating the needs of employee emotional wellness and workplace climate issues.

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External environmental factors impacting an organization The Integrated Change Cycle© is a map of the organizational ecosystem showing key external environmental factors that directly impact an organization.iv Those impacts are occurring at a faster pace than ever through the interconnectivity of the internet. What is not moving as fast is internal change.

External environment factors include:

Change in the status of suppliers and competitors • Are your suppliers of goods and services adapting to their own external and internal environmental pressures? Are they in a position to continue meeting your needs in a reliable, consistent, and quality-assured manner? • Are your competitors continually adapting to

their own changing external and internal environments? How and why? Are their gaps in aligning internal to external environments presenting an opportunity for you? Are your competitors ahead of the curve of change thereby posing a threat to you? Explain this with solid evidence. Demographic changes • What demographic changes are occurring in your client, stakeholder, and customer base on at least an annual basis? This includes age groups, gender, ethnicity, diversity, languages spoken at home and at work, incomes, spending habits, education, religious affiliation, culture, family size, and housing factors (renters, owners). • Demographic conditions positively or negatively align to what your services or products are. A shift in demographics can impact the demands for services and products, either creating new opportunities or reducing current demand. A change in demographics may represent a change in expectations, attitudes, and values. Find what’s changing, how and why.

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News and social media • Traditional news media outlets and the millions of social media sites can have a profound impact on your customer/client attitudes and behavior. If your stakeholders and audiences already have a very strong impression and trust level in your services and products it is usually very difficult to change those attitudes through negative stories in the news and social media. But if they have no opinions or negative ones, then negative or conflict-laden stories can create huge impacts on your reputation.v • News and social media also provide a good barometer of interest in your sector, services, or products. By monitoring such changes and trends you can be prepared for emerging issues that may pose a risk and get “ahead of the curve” thereby providing advantages to you. Today, with internet data-tracking sites you can easily do this. • It is important to remember that news and social media have a major impact on your internal environment as the content of such stories can have a significant impact on employee attitudes and behavior as well as political and policy decisions. What is the tone (negative, positive, neutral) of such items, what is the volume (how many over what period), what is the impact on your organization’s reputation and profitability?

Economy • Economic conditions at the global, regional, and local level have a direct impact on your organization’s services, products, and internal environment. There can be a direct hit on your profitability (both good and bad), your expansion plans, as well as your ability to offer services and products at a certain price. An economic downturn can also negatively impact training programs, spending on new equipment, and spending on employee overtime. • Economic conditions can impact interest rates which in turn can impact borrowing costs and plans for investment in operational matters. In addition, the cost of real estate and rents can play a major factor in decisions about staying in business. • Economic conditions can also present opportunities at the local, regional, and international level. This may involve matters of mergers and acquisitions, partnerships, and the opportunity to expand your services and sales to another organization that is expanding in your areas of expertise.

Climate change • Global climate change is a scientific given despite some opinions to the contrary. There are multiple ramifications both small and large that can have a direct impact on your organization. Climate change can negatively impact growing seasons for crops you or your suppliers need, destroy large swath of trees used in lumber and pulp and paper manufacturing, destroy fisheries, and significantly affect communities through flooding.

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• Think about your services/products and how they may be impacted by transportation costs, weather patterns, and crop growing seasons. What about changes in weather patterns affecting travel and vacation plans? • What pressures are there on your organization to “go green” both with services/products and internal activities ranging from recycling to workplace practices? There are many scientific sources about the impacts of climate change. What are the ones affecting your organization’s internal environment as well as services and sales? • What is your organization doing to stay “ahead of the curve” with climate change including electric vehicle use, recycling, and using energy-conservation construction materials and daily operations?

Society and culture

• What are the local, regional, and international societal and community expectations and demands on the sector you are in and of organizations/corporations in general? This includes society’s demands for “corporate transparency” in dealing with groups and individuals (being upfront and honest), financial and personal ethical behavior, and fair hiring practices including diversity in age, gender, culture, and personal lifestyles • What are local community, regional populations, plus national and international population, and government expectations of organizational behavior? This includes protection of the environment, respect for employees (gender, age, and multi-cultural groups), accountability and responsibility by an organization and its leaders to society for behaviors, ethical actions, and honesty? • How are your organization’s services, products, and behaviors meeting with these new external societal values and expectations? Is your internal environment such as treatment of employees in synch with such societal demands?

Demographics Demography is the study of populations. It is important to know how the populations you serve as an organization are changing as well as the populations that can impact your reputation and profitability. • Discover what changes are taking place in population growth or decline, in gender and age composition, education levels, immigration rates and from where, languages spoken at home, religious beliefs, types of employment and family/personal income, the type of dwellings people live in, and what forms of transportation they take to get to work and how long it takes. • You can also discover “socio-psycho-demographic” profiles of populations including where and how they spend their money, their shopping habits, and their political beliefs.

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Politics and law • Your organization exists because of the consent of government and the public. There are many laws governing how corporations, institutions, and not-for-profit organizations operate including laws and regulations governing financial reporting, treatment of employees, trade and sales, protection of the environment, and many other practices. • All such laws and regulations have come about in large part because of public demands or from pressure and influence by lobby groups representing many sectors in society. • What changes to recent laws are directly impacting your organization’s operations including profitability, employee relations, trade, and sales/service practices? • What changes are being called for by lobby groups, social movement groups, environmental groups, and other powerful influencers of government politics and policy? • How is your internal environment directly impacted by recent or proposed changes to laws and policies/regulations?

Science and technology

• The current and future advancements in science and technology are growing at an exponential rate and affecting every sector of business, organizations, and society. • What advancement in technology is currently impacting your ability to offer services and products to customers and clients? • How exactly are those changes impacting your ability to provide services and products cost-effectively and efficiently? • How exactly are the internal environmental factors being impacted by technological change? For example, the impact on organizational structure, various systems, training, and staffing.

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Internal environmental factors

The internal organizational environment is all that happens within an organization, how it is structured, what its goals and purpose are, leadership and management styles and how it treats its employees. 1. Culture informs the design of how an organization is structured, how various systems and processes give life to that structure, how those various systems impact the workplace climate and employee job satisfaction, morale, and their level of engagement in what they do, and finally how all this impacts the everyday actions and performance of an organization.

• Organizational culture includes the values, traditions, assumption of how things get done, and the reasons for both penalties and rewards for employees. Cultures are usually deep- rooted and more difficult to change. Sometimes a culture reflects the people who started an organization and sometimes (or both) culture reflects the way that other organizations in the same field operate (banks, industries, high-tech, non-profits). Culture is also reflected in organizational leadership styles.

Sub-cultures are “cultures within cultures.” This means that while employees in an accounting department subscribe to the company’s overall culture, they also have their own unique way of working and attitudes (generally more cautious, detailed, and conservative) than employees working in the marketing department (generally more creative, “out of the box thinkers,” and imaginative). Employees in different sub-cultures are trained differently, attend different conferences, and can e

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