MANAGING CHANGE EFFECTIVELY WITH ERP: The impact on 5 key business functions

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Change

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Making Change Happen, and Making It Stick Making Change Happen, and Making It Stick Five factors make the greatest difference in fostering the new behaviors needed for a transformation. All of them reflect the basic importance of people in implementing and embedding change. by Ashley Harshak, DeAnne Aguirre, and Anna Brown  Few organizations have escaped the need for major change in the past decade, as new technologies and global crises have reshaped entire industries. However, the fact that change has become more frequent does not make such changes any easier. Change is, at its core, a people process, and people are creatures of habit, hardwired to resist adopting new mind-sets, practices, and behaviors. To achieve and sustain transformational change, companies must embed these mind-sets, practices, and behaviors at every level, and that is very hard to do — but it has never been more important. Some organizations have managed to develop approaches to change management that address change comprehensively. A successful business transformation effort must capture the hearts and minds of people who need to operate differently to deliver the desired results. The good news is that it can be done... Read more at o2ibm.blogspot.com

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Building Support for Change

A successful change management initiative requires commitment from all the organization’s leaders, not just the CEO.

by Matt Palmquist

To study the effect of leadership on organizational change, the authors explored the results of a change management initiative at Kaiser Permanente, a California-based HMO with more than 1 million members, 3,000 physicians, and 19 medical centers. Historically, Kaiser Permanente’s business plan had been predicated on its expansive relationships with a huge number of patients and providers, which enabled the company to offer competitive healthcare at reduced costs. But by 2001, management found that patients generally viewed Kaiser Permanente as bureaucratic and impersonal. Under a new CEO in 2002, the company attempted a significant shift, refocusing on quality and service. This meant introducing a new scheduling system, revamping call centers to improve responsiveness throughout the organization, and improving communication links between physicians and patients. After tracking the results of the initiative over two years (2001–03) in real time, the researchers concluded that efficient, thorough organizational changes resulted not because of the technology or procedures being introduced, but because of the commitment of Kaiser Permanente’s leaders — and not just those at the very top level.
The researchers used data from detailed satisfaction surveys of 50,000 patients and more than 300 physicians to gauge the success of the new plan. The study followed physicians in eight departments — including emergency medicine and pediatrics — at six Kaiser Permanente medical centers. At Kaiser Permanente, physicians report to a department chief (also an M.D.), whose immediate boss is the physician-in-charge (PIC), the executive responsible for the overall operations of the individual medical center. Kaiser Permanente’s CEO oversees all the PICs. The physician surveys explored how well the supervisors at all three leadership levels articulated a vision, set measurable goals, rewarded progress, dealt with organizational hurdles, and motivated employees. The research found that the more physicians perceived their department chief and PIC to be competent managers in all aspects of their job, the more they supported the strategy shift; in addition, patient access and service ratings improved most when physicians viewed both the CEO and PIC as effective leaders. However, when physicians felt that their bosses were less than adept, their performance on patient satisfaction surveys was markedly lower. Although the CEO imparted the same call for transformation in responding to patients throughout the organization, physicians who lacked respect for their managers tended to interpret this change agenda more negatively. Overall, patient ratings improved over the two-year study period.
It has long been assumed that CEOs drive organizational change, and that success or failure hinges on how well a single leader can articulate his or her vision. But this paper finds that organizations are much more nuanced, and leaders at many different levels can have a significant impact on whether their departments embrace or shun new initiatives. The authors advise CEOs to spend time making sure their leaders throughout the organization are fully informed, committed, and effective before undertaking a major change initiative.
Bottom Line: Organizational change is much more effective when leaders at all levels of a company are united behind the shift in strategy. Although CEOs can articulate an overall vision, the success of a new initiative often depends on the competence of managers at lower leadership levels.

Author Profile:

• Matt Palmquist was a founding staff writer and is currently a contributing editor at Miller-McCune magazine. Formerly, he was an award-winning feature writer for the San Francisco–based SF Weekly.

For More See>>

Title: How Leadership Matters: The Effects of Leaders’ Alignment on Strategy Implementation
Author: Charles A. O’Reilly (Stanford University) et al.
Publisher: The Leadership Quarterly, vol. 21, no. 1
Date Published: February 2010

Making Change Happen, and Making It Stick

Five factors make the greatest difference in fostering the new behaviors needed for a transformation. All of them reflect the basic importance of people in implementing and embedding change.

by Ashley Harshak, DeAnne Aguirre, and Anna Brown 

 

Few organizations have escaped the need for major change in the past decade, as new technologies and global crises have reshaped entire industries. However, the fact that change has become more frequent does not make such changes any easier.
Change is, at its core, a people process, and people are creatures of habit, hardwired to resist adopting new mind-sets, practices, and behaviors. To achieve and sustain transformational change, companies must embed these mind-sets, practices, and behaviors at every level, and that is very hard to do — but it has never been more important.
Some organizations have managed to develop approaches to change management that address change comprehensively. A successful business transformation effort must capture the hearts and minds of people who need to operate differently to deliver the desired results. The good news is that it can be done...

Change Comes in Waves

Paul Saffo: Change Comes in Waves

from Strategy Speaks: a Peppers and Rogers Blog by Don Peppers

 

One of Saffo's most interesting perspectives is that innovation moves in phases. New scientific discoveries come in waves, and following these discoveries you have new technological applications that change everything. Chemistry innovations in the very early part of the 20th Century led to new giant companies like IG Farben and others. Then physics, in the second or third decade, and then electronics (or IT), in the 1950s. This is the scientific discovery that has shaped the entrepreneurial landscape over the last several decades. Now, we're seeing big discoveries in biology. And of course these industries overlap. The structure of DNA was understood in 1954, then the human genome project came fifty years later, and the biotechnology revolution is starting to happen.
Each wave of new science creates new technological possibilities, but also changes our own perspective about reality and how the world works. He had some interesting illustrations of biomimetics - using biological learning to create new products and technologies. For instance, Geckos cling to walls based on nano-filaments of hairs that actually tap the weak nuclear force to adhere to surfaces, and there are new products now based on this, or being considered - like bandaids that don't require adhesives, etc.
In fact, for about $5000, Saffo says you can now buy everything you need, on E-Bay, to create your own organism in your kitchen. It's harder than people realize, but it's not impossible. And it will change the way we think about the world, which means we'll discover even more new ideas. He said it takes about 20 years to go from scientific discovery to technological takeoff.

Culture Change: Summary of Key Thinkers' Ideas

Culture Change Summary of Key Thinkers' Ideas This is the result of an extensive set of discussions among a group of organization development consultants and internal HR staff under the auspices of the Change Affinity Group of the New Jersey Human Resource Planning Society.  Key Questions for Discussion: What is culture change?  What are the major models? What is the role of executive management in culture change? What is the role of HR in culture change? What works and doesn't work in culture change?

Ten Key Principles about Organizational Re-Design:

Ten Key Principles about Organizational Re-Design: Organizational structure must follow strategy and support the strategy and corresponding objectives. The higher the degree of uncertainty and change relative to technology and markets, the organization faces, the greater the need for organizational structure flexibility. How you deal with integration in structure is a significant key to success. Structures often fail at the boundaries: great organizations are able to work across boundaries to get the job done quickly and cost effectively. When you want to reduce cycle time or focus on time reduction: Organize around the main sequence; ask what is the main sequence of your value adding activities. Activities that are not critical to the main sequence should be taken off line so they don't slow down the cycle. Once you have isolated the main sequence, use TQM principles to improve the processes. Use small Closed Loop teams with all the skills, people and resources to respond quickly to customer needs. Teams should have decision-making ability and be self-scheduling. This requires a great deal of empowerment and the right culture to be effectively Employees value a job that is designed to be central to the business and has meaning, purpose, dignity, respect, challenge and prospects for advancement. The further decisions commit the company in the future, and the greater the impact on other functions, the higher the decision should be made. Recurrent decisions should always be made at lowest possible level. Build the fewest layers of management and maximize the managers' span of control to minimize the number of units to be integrated. This greatly impacts costs. Split groups tend to force decision making to the top. For example, if sales does not report to marketing, but both report to the general manager, then many natural conflicts about short and long term sales strategy will find their way to the general manager's desk, or go unresolved, rather than be solved at a lower level. If you want speed in key decisions, avoid splitting natural groups. Move variance control as close to the point of variance as possible. This allows for quick response time and encourages accountability. Service staffs should be few and focused on key activities, where the most value is added. They tend to add costs and slow things down if not managed well.   O2ibm Visit this Open Foum

IF one is going to change an organization, one needs to know what to change towards

Built To Last - Summary of Key Points Written by James Collins & Jerry Porras About this book: This summary of Built to Last is included because if one is going to change an organization, one needs to know what to change towards. This book is one of the best we know of that answers that question. It is one of the best pieces of research done on why certain organizations are more successful over time than others.  Introduction: The book makes a comparison of Visionary Companies to a comparison group of good companies. The lessons of the Visionary Companies can be learned and practiced at all levels of the organization.  What is a Visionary Company? For the purpose of this study they: were the premier leader in their industry, widely admired made an indelible mark on the world have multiple products and have had multiple CEO's are at least 50 years old The authors compared 18 Visionary Companies to 18 comparison companies. The comparison companies have done more than twice as well as the stock market since 1926, while the Visionary Companies have done 15 times as well as the stock market. The comparison is through the end of 1990. Think of the comparison companies as the bronze medalists. Most of the Visionary Companies have had problems, but have displayed a remarkable resiliency in overcoming business challenges.

How Do You Compare to Visionary Companies?

How Do You Compare to Visionary Companies?   Exercise  In a change effort, the exercise can be used to stimulate discussion. In management development programs, this is a good exercise to use to get people thinking about what constitutes organizational excellence. Compare your company on each of the key concepts developed in the all time classic diagnostic tool Built to Last.

Guidelines for Effective Process Re-Engineering

The Guidelines for Process Reengineering summarize key ideas about process improvement and reengineering assorted from numerous books and articles...

A Model Framework of the Change Process

The model below is eclectic, drawing on many of the best thinkers in the field of change management: William Bridges, John Kotter, Kurt Lewin, Tom Peters, and Douglas Smith, among others.   There are many models of change; Richard M. DiGeorgio and Associates employs a variety of models to help clients understand and address change.	To download a full size hardcopy version of the Change Model click here    Click here to download Change Management Bibliography. O2ibm Visit this Open Forum

Strategy Execution in times of Uncertainty

In this unpredictable economic climate, leaders must be capable to lead their companies to quickly adapt to new market forces. Business models are changing to catch up with the emerging drivers of competition. Success hinges first and foremost on "Thinking-Ahead" strategy  and robust execution. Because execution plays such a critical role in success or failure, especially during a crisis, many companies are turning to new technology solutions to ensure they can deliver on strategies and emerge even stronger. Any company that fails to adapt quickly and efficiently to market changes can miss important opportunities ir risk their very survival. Here are some key points to consider:

Thinking Ahead Succession Planning - The Key to future success

"Thinking Ahead"  succession planning enables organizations to takeover new responsibilities in a much faster way and with least disruption in the business activities.	An article highlights four best practices to ensure effective succession planning that can be implemented in any company - Analysis; Development; Selection and Transition. Having a structure in place that carefully engages in those best practices will set the new leaders firmly towards future success. Link to article >
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Learning to Lead

Herminia Ibarra , Professor of Organizational Behavior, and Faculty Director of the INSEAD Leadership Initiative, contests that we learn to lead in relationship, by becoming a part of a community and network of leaders, but what we preach, however, is very different.   Let's draw some inferences by considering a few schools of thought: