March 15, 2022

team note for attached ppts. write as a team member in a team. for example, as I am writing it. one page summary.finalleadersh

Psychology

team note for attached ppts. write as a team member in a team. for example, as I am writing it. one page summary.

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)

Learning to live with anxiety/fear

“I realized after the meeting that my anxiety had got the better of me. I just ‘went for’ a member of my team in open forum, just because he hadn’t completed an action. I really humiliated him out of all proportion. And afterwards, I could see this was really to do with my own anxiety about the chaos and uncertainty the team was working in, and my inability to manage things as brilliantly as usual.”

A senior project manager in the motor industry recognizes his anxieties

[Cameron & Green, 2019]

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)]

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.

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)

REFLECT & DISCUSS

Read Cameron & Green, 2019 pp 450 – 466

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)

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.

Transitioning the IT Dept (adapted from Tynan, 2018)

Old IT/CIO – ‘career is over’	New IT/CIO – ‘active players’
Keep the lights on	Keep the data flowing
IT makes rules and tries to enforce them	Users make the rules and IT tries to keep them out of trouble
Don’t release until it’s ready	Iterate until you get it right
Protect the perimeter	Trust no one – check everyone
The CIO’s place is in the data centre	The CIO’s place is in the boardroom

Digital transformation strategy

Embarking on a wide-scale digital transformation is a significant endeavour

It is likely to considerably impact products and services, business processes, sales channels and supply chains.

In some cases entire business models are overturned

Therefore organizations need to ask themselves some big strategic questions about how to make best use of digitalization to become more effective in what they do, and more successful in meeting their longer-term ambitions.

Formulating strategy: Digital transformation framework

The digital transformation framework (DTF, Hess et al 2016) identifies four key dimensions of every digital transformation initiative:

The use of technologies: the way new technologies will be explored and exploited.

Changes in value creation: the way digital transformation will impact the organization’s value creation.

Structural changes: the types of changes to structures, processes and skill sets necessary to deal with and exploit new technologies.

Financial aspects: the organization’s level of need to save a struggling business, as well as its ability or preparedness to finance digital transformation.

Governance for digital transformation – structural approaches (Tannou and Westerman , 2012)

Shared digital unit: This unit creates digital services for the rest of the organization. Reduces the cost of digitalization by reducing the number of redundant initiatives, people and technologies in local units. Also invests in corporate-wide capabilities, which individual units to develop then work out how best to leverage. May also experiment, and release proto- types to stimulate innovation in local units.

Firm level committees: These govern digital transformation across the organization using steering committees and innovations committees. Steering committees consider firm-level digital initiatives and agree priorities, funding levels (sometimes with an unclear business case), standards and policies, and where work will be done. Innovation committees focus on emerging technology and are populated by people from multiple disciplines – this is a policy and oversight role. They spot technology-enabled business opportunities, and help the company adjust to changing customer and employee behaviours.

New digital roles: such as chief digital officer (CDO) are increasingly common, although areas of responsibility vary from one organization to another. These roles are still evolving. In one company the CDO could be responsible for a large cluster of applications and networks across a range of platforms; in another they may have a specific strategic goal to focus on, which crosses departments and functions. Other companies appoint CDOs at business unit level who coordinate with a firm-level CDO.

Establishing the right leadership approach and organisational culture

Leadership shifts required

Actively lead digital transformation; communicating and enacting a clear yet flexible mission, vision and framework for the journey.

Work across ‘silos’ to enable continuous, complex decision-making at the right level as things evolve.

Steer (rather than control) the organization towards becoming a more open, connected and empowered organization.

Stay open to working in new ways that may feel a bit ‘out of control’; work with colleagues to clarify what, if any, boundaries need to be set (particularly when it comes to platforms).

Embrace the opportunity of working in partnership with people from very different/unfamiliar sectors.

Learn about, discuss, conclude and take action on ethics in a transparent way.

Cultural shifts required

Experiment with: focused innovation, collaboration, risk-taking, experimenting – enabled by new platforms.

Embrace and adapt to shorter planning horizons and review cycles.

Attach more value to contact with the customer, and try to understand their current and aspired to processes/level of digitalization.

Bring more attention to how current business models and processes work (yours and theirs, ie, customers, stakeholders, partners, etc).

Become much more tech-savvy; remembering that you’re now part of a ‘technology company’.

Develop a service focus; this may involve a significant change in you and your team’s principles and priorities.

Responsible digital transformation (WEF,2019)

Cyber resilience: preventing unauthorized access to electronic data is a fundamental for any organization, and this imperative will only become more important given that the rate and severity of attacks appears to be increasing. A proactive role reporting directly to the CEO is recommended.

Data privacy: the EU’s GDPR regulation, introduced in May 2018, is seen as a watershed, naming citizens’ rights and introducing fines, although regulatory rules are not consistent across the globe. A culture that believes that customer data is ‘entrusted and borrowed’, rather than ‘extracted and taken’ is encouraged. There are tensions for corporations who hold and continue to gather large quantities of personal data that could be extremely valuable to other organizations, knowing that the ethics of selling this data is highly questionable.

The internet of things: the internet of things is ‘the network of physical devices, vehicles, home appliances and other items with embedded electronics, software, sensors, actuators and connectivity that enables these things to connect, collect and exchange data’ (WEF, 2019). This will change the way we work, live and play, buy, sell and interact. This will force a huge rethink by businesses regarding product, service and processes. It also potentially exposes the customer to increased risk of personal data being collected without their consent and to devices being hijacked given multiple connection points.

Blockchain – distributed ledger technology: blockchain has the potential to provide new, more secure business models without the need for a trusted middleperson such as large, centralized banks. This may have two advantages as regards individuals and wider society: lower exposure to security breaches, and its distributed nature causing a reversal of the current trend towards ‘closed protocols and data concentration and accumulation in the hands of a few technology companies’. (WEF, 2019).

Artificial intelligence and machine learning (including robotics): AI software, incorporating ML, enables machines to learn from experiences and make decisions in a similar way to humans. The advent of ‘big data’ is enabling machines, devices, programs, systems and services to perform ‘deep learning’ in real time, thus making extremely complex decisions beyond human capability. The risks of misuse, or of biased or incomplete learning are potentially high. A suggestion is for AI designs to be formally signed off by the CEO and CIO of any organization.

The negative effects of disruption

Many disruptive things are socially disastrous, and now we’ve spent 20 years doing this, we have to start to think about disruption not as an unalloyed good. It’s entertaining, in a grim way. It’s exciting, in a grim way… But I wouldn’t be gleeful about disruption any more because an awful lot of it encourages huge amounts of inequality, huge amounts of personal suffering…

SOURCE Hammersley (2015) – futurist

Summary

The digital challenge for today’s organisations is huge, and there seems little choice but to get on board

It’s important for management teams to consider the digital strategy together, and to realise that this might become the driver of company strategy

It’s helpful to have a sense of the organisation’s digital roadmap as it moves from an old way of doing things, to a what is possibly completely different way of operating and thinking

There are some simple ways to improve governance processes to ensure that digital transformation work is as collaborative, creative and speedy as it can be

The implications for leadership and culture in those organizations attempting digital transformation are significant. New leadership skills and approaches will be required.

Digital transformation raises up many serious ethical issues which need to given significant thought. Citizens’ rights and quality/availability of satisfying jobs can easily get eroded.

Sustainability defined

Sustainability can be defined as:

the ‘development that meets the needs of the present generations without compromising the ability of the future generations to meet their own needs’

Brundtland (1987)

Sustainability can also be defined as:

an overarching conceptual framework that describes a desirable, healthy, and dynamic balance between human and natural systems;

a system of policies, beliefs, and best practices that will protect the diversity and richness of the planet’s ecosystems, foster economic vitality and opportunity, and create a high quality of life for people; and

A vision describing a future that anyone would want to inhabit.

Amos, A.O. and Uniamikogbo E. (2016)

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)

Developing a sustainable strategy

Ethics

Governance

Transparency

Business Relationships

Financial Return

Community Involvement / Economic Development

Values of Products and Services

Employment Practices

Protection of the Environment

Blowfeld (2013) building on the work of Eccles (2012) and Epstein (2008)

Organizational stances on sustainability in six phases

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 Asnderson 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)

Leading towards sustainability

Internal and organizational issues faced by leaders (Andersson et al, 2018)

CEO and the leadership team need to drive the digital strategy – not just the CDO or the IT Department

New technology skills, resources and internal capabilities will be required – e.g. sought after technology skills, how to use these, and how to build and develop platforms

Developing more customer oriented working practices and mindsets

Structural challenges such as how to transition from old to new systems, and how to move to flatter structures using platforms to collaborate

Creating the climate and processes that allow shorter panning cycles and continuous experimentation

Selecting the right change management approach: transforming the existing processes; creating a new, start-up digital unit; or building a parallel business that acts as a digital incubator.

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)

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

Frameworks which underpin our understanding of sustainability … cont’d

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