Corporate and Centralized

Two words this time around. Do they mean the same thing?

Here are my external definitions:

Corporate-

Anything that is owned, managed and delivered from the highest levels in the organization. Corporate crosses above functions. And you can have a corporate function itself that works for everyone (like HR).

Centralized-

Pulling resources together as a unit to save cost and overlap. Programs and initiatives that have cultural components are often centralized. Procurement is typically centralized (a big movement in the last couple of years- I wanted to write fad instead of movement…).

But what do these two words mean for employees and stakeholders? This always surprises me- as an external who owns nothing and so looks for the smartest solutions.

Corporate means dictated policy and rules.

Centralized means controlled by a corporate entity (in their minds often to the detriment of functions- what an external might call a silo).

This perspective continues to puzzle me as I work to update and dig deeper into my corporate change management entity suggestions.

Stakeholders balk at anything that is corporate and centralized. For change that visibility and ability to cross fertilize is powerful glue for a longer time period than most functions operate under. Strengthening of operations and connections on one initiative builds a foundation for the next.

In many ways that is what operations should be doing. In many ways that is what HR was expected to do (but never given the leverage or visibility to get right). Since this rarely happens there is a trust deficit. Corporate and centralized are the labels for those deficits. In the minds of stakeholders if something carries those labels it cannot and will not work.

I can see why.

The first thing organizations seem to do when they think of setting up a change entity is labeling it a “Center of Excellence”. That would be fantastic if they meant this morphing group of external and internal people was helping to coalesce all the expertise of the organization. Not so. Center of Excellence ends up being just another function- one with a confusing purpose and reason.

If you are a leader being asked to think of this because of an organic movement within your organization, or better, because you yourself know there needs to be something in your organization that look deeper into your transformations (and even, potentially, small changes) think hard about our two words. It might be a good exercise for you to ask questions of your employees and potential stakeholders about corporate versus function and central versus disparate.

You might have a trust equation to build before you can do the “implementation” piece of your change.

Centralized and corporate (and worse corporate centralization) are words with hidden meanings for stakeholders. Consider those stakeholder perspective as you think about long term transformational change (and your organizations second round in the distant future).

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Cycles- what went around will return

It has been an interesting couple of years for change management- quite the contrast to 8 – 10 years ago. Consulting, to some extent, is dead, replaced by the strange wave that followed the Microsoft case. (Treat people like employees and you have to give them benefits and consideration for effort- so now we have contracting scenarios that are an arms length worst case scenario, low rates and no benefits and still treated like an employee).

Things go in cycles (this one a little too long for just one career). What will happen is demand will pick up, corporate money will free up and suddenly consulting will return, along with respectable rates (if the consultants are smart enough to raise their rates together).

What is ironic is that all that money locked up in corporate accounts when freed up will land in the worst environment for cost savings. If it had been spent in the last couple of years to move change and shore up structure a lot of companies would be ready (and already have those consultants in place with some loyalty). This is not hindsight it is lack of foresight and strategic planning.

Those who underpaid (I could give you the list of firms in the Bay Area considered chintzy and last resorts for clients….) will find that no one is interested in working with them even if the rates go up. Those firms already have revolving doors (I was contacted 13 times for the same role over a two year period and I know for a fact they went through at least three consultants).

The more firms are stripped of their talent through cost savings the more valuable senior consultants will become.

I see corrections in the future. If you are a senior leader I would say now is the time to get a head start- grab a senior consultant while you can- but do not think about it too long, that could get expensive.

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Change Management Models

A while back I did a tongue in cheek look at models.

Thanks to all the certification machines out there and the unemployment rate there is a flood of new, inexperienced (you can tell by the questions they ask in Forums) “change management practitioners”. It seems the first thing they want to know about are the different models to use. Big indicator that they really do not understand Change Management.

Because there are a lot of horns out there tooting as loud as possible- one that insists Change Management falls within project management (recipe for failure for anything big). I have never been one to blow my horn loud and for the sole purpose that someone listens to it (or spends money to hear it again). I shout when something does not make sense and no one seems to be saying anything (even though it is right in front of their eyes and they agree).

Well isn’t that a little like true Change Management? It is about calling out things so you can get to make sense end states. PS most of the models out there, on purpose, by design, do not do that. Most of the clients out there LOVE those kind of models because they really do not need to change much. You are not that kind of client/leader or practitioner, right?

So here (the actual model with hyperlink explanations for each piece) is the Vision to Work model:

image

I created it as a representation of End State Focus and Makes Sense Change. I did not, like many modelers, create a model that illustrated how change was being approached already. It amazes me how many models are created to support status quo- pretending otherwise.

Call me out marketers, but I have never touted the model specifically- the perspective yes, maybe the approach, but not the model itself. Leaders, hesitate when a consultant you are looking at whips out their model and pushes the deliverables within- they are playing to your status quo. (You do not want that, remember?)

Here is another funny thing about models. They seem to be frameworks to teach someone how to practice change management. Senior practitioners often end up creating similar paperwork (say stakeholders assessments), but it is more record keeping of the things they have found rather than a map for what to look for.

Prosci is the perfect example. A mid level practitioner could follow the model to a tee and get to the end (and I don’t mean END STATE) befuddled, confused and surprised at the failure. Anyone can sit down and draw a picture, but few of those creations end up at Christies. Anyone can go through the steps for change management; few can get to the things and people that must change for end state attainment.

The Change Management Arena has gotten a little scary this year. The emphasis on models and the strange evangelism (by, judging from their profiles, new and junior practitioners) for the companies that market the hardest is not a good sign for big transformational change. If you are a senior leader looking for a consultant be wary and ask yourself if you and your organization are REALLY capable of the change you seek. If not go with the models and the cheap rate. If so be informed and talk to those practitioners who speak with a softer voice.

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Reflection in the Mirror- Why you might need an External Consultant

ChangeMirror

What exactly do we see when we look in the mirror? If someone stood next to us would they see the same thing?

Senior leader, what if you stood next to a stakeholder and looked in the mirror? Same reflection?

What if it is the change standing in front of the mirror? How many different reflections would that be?

Why you might want trusted advisor consultant

You contract with a senior consultant for a different interpretation of the reflections that come your way. You build that relationship to trusted advisor to help adjust your interpretation of your reflection.

A good consultant will know what too say, which reflection differences to address and when.

A good change management consultant placed high with the owner knows which reflections to encourage for you and for the change in general. They sometimes and often conflict. You work with the external so you will address that conflict. Acknowledging and addressing conflict is a core competency for leadership and one difficult to manage alone.

That consultant will be able to see things broad and into the future that for you, with your narrow field of vision, will not appear in that mirror. They have likely gone through many interpretations of different reflections and honed their skill in explaining and addressing disparity. Odds are also pretty good they have done that for themselves (and even have their own trusted advisor).

The greatest disparity I see for this metaphor is the stakeholder reflection vs. the leaders image, both for the leader and for the change. Leaders have high expectations and often get away with pushing their own reflection. One of the biggest roadblocks to change is this disconnect between what employees see (and feel) and what the senior leaders version is. Humility is important here. Contracting with an external is your first humble move. It will pay off when everyone looks back in the mirror later.

What you see in the mirror and the image others receive is not likely the same. An external consultant can help line them up so leaders and stakeholders can work together.

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Acceptance

Certainly a change appropriate word.

1.  the act of taking or receiving something offered.

2.  favorable reception; approval; favor.

3.  the act of assenting or believing: acceptance of a theory.

4.  the fact or state of being accepted or acceptable.

Dictionary.com

Acceptance and change:

  • THE change must be accepted at some level
  • Stakeholders must  accept the change (and be accepting)
  • Leaders and peers must accept each other
  • All of the underlying structure must be accepted

THE change must be accepted at some level

Obviously or not much will happen. Admittedly there are some changes which have little acceptance (or acceptance an elite few- elite is a nice way of putting it) like reduction in force, some mergers, downsizing, the sale of a company etc. Acceptance is either bought, leveraged, asked for (hoped for?) or gained through make sense end states.

But someone, even if only a few has to accept to move change forward.

Stakeholders must accept the change (and be accepting)

Good change, the kind that leads to other good change must be accepted by the stakeholders. Acceptance may come right after awareness or further along the timeline as more information is communicated (and the end state possibilities become clearer).

It is much easier if the stakeholders are accepting of change, either by mentality or because of previous successes. That is one reason why I push clients to understand the significance of this change and this approach for future endeavors.

From the stakeholder perspective though there is the big nasty, “I do not accept this at all, but I have no choice (my family needs to eat…)”. I suppose you can accept that nothing is ever going to go right as you are doing the tasks you are told to do.

Leaders and peers must accept each other

For good change a contract forms, or is created on purpose, between leaders and stakeholders and between peers. They accept each other for talent and they accept differences. When you have that you can have collaboration that leads to work effort, you can have mediation that finds solutions and you can have compromise. You can also have risk that gets balanced- maybe this time we do things your way, next mine (all in one basket carries risk).

All of the underlying structure must be accepted

This is a big one that often does not happen with big change. Because so little time is spent up front getting ready- the packing and repacking for the journey- there is often not much acceptance for the approach. Or there is the previous negative, “we have no choice” acceptance.

The underlying process, historic structure, new structure and communications have a strong effect on change. When I am asked what causes change to fail my answer is always structure first.

Acceptance for change is both the stakeholder side of participation and the comfort level toward the change itself.

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The Most Important Aspect of Change Management

ChangeThread

This was a search that landed on the HorizontalChange blog.

I have spent three days thinking about it.

THE most important? Tough.

Here are some things that are in the running:

  • Highest executive ownership
  • External guidance
  • Makes sense
  • Cash
  • Competency

 

Highest executive ownership

When I ask stakeholders what they think is the most important thing for their change, to a person, they respond with something that has to do with the connection of the top level leader to the change and the work it involves. I call this person the owner (credit to Alan Weiss- his version being the executive a consultant should contract with). The owner holds the money, the influence and the highest level visibility (yes, not necessarily the most power or the most influence).

Stakeholders expect this person to be involved, to be present, to be available and to add work effort (not just management) to the initiative. When they see the buck passed they dial back their energy. When the leader is non existent for this change they push back. When this has been a pattern for a long time (which would describe just about every organization) they expect to see a marked improvement this time around.

My ultimate consultant fantasy is to work with a leader who gets this and is willing to be consulted on approaches to leverage their gift of connection.

External guidance

Change is about tweaking, removing, replacing or redoing status quo (“the state in which” as opposed to the end state). The change appears necessary because the current state is not working in some way. It takes a very self aware person to rejigger their own status quo, let alone replace it completely. Multiply that by the number of stakeholders you have and then increase it geometrically for all of the combinations of status quo that have evolved and you have a scenario that is impossible to change on your own.

External guidance, the right kind that consults for your business and its people, is crucial for big change.

Among other things an external consultant can roam your organization to make connections and create collaboration that internals shy away from. An external can reveal all of those status quo scenarios so they can be discussed in the open. A change management consultant can anticipate the things that slow change, cost money and increase risk. An external is disconnected enough to move from long term to short term thinking in an instant. A senior version of our fertilizing outside influence can also address strategy and tactics back and forth.

Makes sense

What is the point of change if it does not make sense? And yet many, many changes do not. Sometimes they do not for just a few individuals; sometimes for groups; sometimes for the organization (see previous paragraph to at least have these called out). When change does not make sense at a lower level than corporate strategy (and assuming that strategy is defensible) it needs to be explained.

Taketh in one area and you may be able to give in another. There are many things in life that do not make much sense, but life in general is pretty cool; there are many things about change that do not make sense, but growth and improvement does.

Cash

This one will not make the cut because change is chronically under budgeted. If the money could be made available to do it right then cash would quickly rise to the “most important aspect” status.

Cash in general is pretty important. Just as important is how it is used. The balance of budget for now and budget for bigger things never seems to line up when it comes to change- likely because not a whole lot of change can take place within the yearly budget cycle of organizations (let alone some quarterly measures).

So we will say the right amount of cash spent wisely is important.

Competency

You can have ownership, some great external consulting, change that makes sense and your choice of currency to pay for the effort and then find you are way short of talent. Usually you are short of skill (easy to outsource- I always mean independent consultants when I use that word, not second language phone banks), but often you are (also) short of competencies (mid level leadership group of competencies being the most obvious).

With all the slicing and dicing of people and structure that has gone on in the last 3+ years this is VERY common. But of all of our categories this is the easiest one to overcome (see previous category- Cash).

 

Any of these areas could be considered “the most important aspect”. Other things like a strong PMO, good internal change approaches (example: a corporate change management entity), a clean history of previous changes or positive energy could all be added to the list.

I think the most important aspect of Change Management is the thread that sews this all together. It is the thread that strategizes; that plans; that questions; that collaborates; that looks within; that asks for perspective from outside; that understands context; that explains and that enjoys using talent for the work it produces and the accomplishment that results.

That red (or yellow or blue if you want subtlety) fiery thread that connects change, time and people- that is the most important aspect.

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Change from Scratch

What would it look like if change, started from scratch, was done right?

  1. Find a senior change management consultant for a trusted advisor.
  2. Answer why.
  3. Connect to expertise.
  4. Engage.
  5. Divide the journey into parts.
  6. Manage time.
  7. Cycle your change process.

 

Trusted Advisor

If you are in the “pre-scratch” spot now is the time to bring in a senior external consultant. My pick, obviously, is an independent consultant ( you can always add other options later, the independent choice will give you both control and flexibility- not so with other options).

Why

Because most organizations dictate it the business case will begin to form quickly. That’s great, it is one side of the why equation. The tough side from a change standpoint is the why for people, especially for individuals and groups. Get that explanation and description clear early (and adapt as you gather feedback from stakeholders).

Expertise

Change requires people.

Helping them to participate, while often difficult, is not the most important thing about the people component.

Expertise is.

I coach young kids soccer; they love it, but we do not always win. I consult for change; people are led to engage, but they do not always know what they are doing.

From scratch determine if you will have the right people for the tasks at hand. The scratch viewpoint of this is a high level, in general picture. As you work back from the end state you will have a better idea of exactly what skills and competencies will be needed on your change journey.

As you move forward (to move backward to move forward again) always keep expertise in mind. People like to know how good they are at their work. People like to be acknowledged for their talent. This is one of the reasons people participate (I think the most powerful of the list). Use expertise in a human way to get to your business goals.

Engage

Once you have a broad view of expertise in relation to your change you can engage. Most change initiatives do not engage very well or at all early enough. There is fear of transparency and it clouds approach. Trust yourself. Do so and your stakeholders will trust you and so the change.

Now engage to gather perspective, information and gauge energy (call it “readiness” if you have to) as the foundation for your end state(s) description. Expertise should be your guiding banner (not some false inclusion approach). You value the talent you have; you engage with that talent to get to mutual goals. A great start for change from scratch.

Phases

Don’t let your PMO and project managers get their hands on the change too quickly. Doing do eliminates the chance to have change from scratch. They do a fantastic job, but, remember that expertise thing? Their expertise is in chunking up the business side of the journey and then assigning tasks (actually they tend to be detail oriented and make the tasks first then chunk them into groups). As with all competencies use in the right place at the right time.

Phases help the PMO organize and are the best time to partner CM and PM. Layering of CM within PM by phase works well (as long as you have paid attention to our previous categories and that trusted advisor is there).

Manage Time

Your PMO and PM’s will focus intensely on time and timing. From scratch change requires a different perspective of time. When you mention a moment in time, say an adoption date or for IT the date you turn off the legacy system, things change (a different meaning for the word change). “When” for change should not be addressed officially until you have things lined up clearly (and really understand your stakeholders and the end state). IT engagements especially fall apart if the drop dead date is announced too soon (having a drop dead date is not a good idea in the first place).

From scratch change must manage the use of time, the meaning of timing and the announcement of times. Be realistic about timing. Be flexible about longer time frame pieces of your change. Much like promises, do not force yourself into admitting you made a mistake. And do not encourage mistakes by forcing timing.

Change is Ongoing

And ubiquitous and always going to happen and inevitable. So why not leverage current change for that next one in the future. I don’t mean laying down a turn key process (there is no such thing no matter what that other firm may be telling you). Set up patterns in this change of exchange, interaction, use of expertise and communication that can be replicated and, ideally, culturized for positive effect now and into the future. Make some change management aspects operational.

 

Change Management from scratch rarely, if ever, happens. We would be living in a different business environment if it did (and I honestly thing, especially in this environment the companies that figure out how to do this will leave their competitors standing still when things pick up).

To start from scratch for change requires a trusted advisor placed contracting with the owner, realistic and transparent why descriptions, connection with expertise, engagement, understanding of time and culturization of the positives. If, as a senior leader, you can figure out how to do this…

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Sense of Purpose

One of the talking points for Change Management is (“thanks” to Kotter)  “Sense of Urgency”.

It is better to focus on Sense of Purpose.

A sense of purpose has a goal in mind (ideally an end state). A sense of purpose can smoothly integrate others. A sense of purpose has a controlled forward movement. Contrast that to urgency which tends to have too many short term goals, wraps up others in a confusion of running around and moves sideways more than forward.

How would you go about building a sense of purpose?

  • Define end states
  • Include development
  • Integrate incentives
  • Relay stories
  • Support with facts if possible
  • Acknowledge Emotion

Define end states

Purpose builds over time. A sense of purpose moves toward something on the horizon. The horizon shortens (or at least the distance is understood) when the end state is clear. The process of defining the end state, translating that into the viewers of multiple stakeholders and then planning backwards the steps that need to be filled in is the first exercise for building a sense of purpose for change.

Include development

Long journeys are perfect for growth, skill building and development. Likely that previously defined end state requires one or all. Including development in the plan and implementation builds both individuals and the organization- it adds extra purpose above and beyond the change. What better time to develop talent than in the process of growing toward a future? In fact that real world connection often means the difference between simply training (building skills) to developing (applying those skills to varying situations).

Integrate incentives

It is possible to have purpose without incentive or reward (teachers and non- profit workers come to mind). It could be argued that purpose is stronger and more efficient when rewarded. The key or change is to have incentive truly support both the change and the individual. That order is important. Many times incentives are figured out at an individual level and then do not connect to the change. Stakeholders see right through that- especially if you have made the mistake of rewarding status quo rather than competency and task building for end states.

Relay stories

Purpose works well when shared. It also works better when improvement from something that happened before seems possible. Stories convey that. “This is what happened” illustrations help for strategy and tactics for change.

And don’t forget the stories that happen during the change. Many initiatives are years long- lots of stories to build purpose. Because of the length many initiatives rotate stakeholders, and many tasks and procedures get repeated. Stories can help make round two even more successful.

Support with facts if possible

Some develop purpose only after seeing facts that show possibility. Some like facts to illustrate they made the right decisions. Some like facts to be able to see the end state in a realistic and empirical way. Gather and use facts to build purpose. Facts don’t lie… unless they are out of context. Context is crucial for sense of purpose. Show the connection between your facts and the end state and make that connection irrefutable.

Acknowledge Emotion

And be ready for those who like to trust, who like emotion, who believe in gut feelings or who are too impatient for the time it takes to gather facts (or do not trust the gatherers).
Acknowledge resistance. And then address it to build the strongest sense of purpose you will ever get (converts are usually fanatics- that is good in our case). Acknowledge and feed excitement and energy. Positive feels light; negative feels heavy. Heavy change rarely has a sense of purpose.

Aim to convert resistance to positive energy. Feed excitement (just be careful of that urgency thing- that is a different kind of excitement).

 

Sense of purpose leads individuals to work together to get to end states. It is much more effective than sense of urgency and when managed well builds the organization for the next change (as well as increasing the effectiveness of the current initiative).

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Change Tactics- a short list

Tactics definition:  any mode of procedure for gaining advantage or success. Dictionary.com

Following these tips will DEFINITLY give you an advantage. Your competitors are not paying attention to this:

  1. Decrease the distance between leaders and individual stakeholders
  2. Base steps toward the end state on expertise
  3. Use change to build competencies
  4. Adapt your PM system to reflect the end state
  5. Spend more time talking and less time writing things down

Leadership distance

Any procedure, system or approach that connects stakeholders more directly with leadership will give you an advantage. A regular update from executives in a newsletter or on the project website is the easiest, lowest level tactic. The same regularity in person, or at least with an interactive virtual session is second. Most effective is presence, in person, throughout the initiative in a variety of places for a variety of reasons (connecting the change to the end state and operations).

Expertise

Think expertise for all of the steps of your plan.

Each task in a plan requires a person with skill. Leverage, build and acknowledge both skill and the use of skill (competency) in any way you can.

Competencies

Same as expertise, but the extension- knowing and using capability and capacity. Competencies, and the individuals that carry them, need to be tactically spread onto the change management chessboard. Since business is ultimately a competition you may need tactical moves to protect lack of competency. Enter external consultants for helping you figure that out and contractors to temporarily add missing competencies.

Performance Management

Your performance management system is the record of how well you are doing with tactics. Each suggestions/goal/reward connects with an overall strategy. Those little tactical pieces, developed and accomplished by individuals, should be recorded, monitored and adjusted through the PM system.

Look in hindsight back when you finish change. Did your PM roadmaps build to the end state or just reinforce a subjective status quo?

Dialogue/Communication

Tactical Change Management relies heavily on templates and deliverables (and staying parked in a cubicle filling them out). Change tactics (whether with that form of CM or as part of a broader strategy) should focus on spending the right amount of time in person connecting, explaining end states to and guiding stakeholders. You are looking to address all of the learning styles and to have people hear, see, read, and, in a perfect world, feel and touch your end state, your plan and the steps to get there.

 

Gaining advantage with change and successfully getting to end states requires a long series of tactical moves, determined through a strong strategic plan with an early and throughout change process. Decreasing the distance between leaders and stakeholders; using expertise; building competencies; keeping track of and rewarding those skills and communicating in multiple ways as close to in person as possible will give you advantage and speed your change.

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Change Management New Years Resolutions

ChangeManagementResolutions

New years resolutions like change, especially establishing end state scenarios, are bound to disappoint.

That is no reason to avoid resolutions or end state planning.

I have found (thanks to a change management career, lots of listening and the chance to see results) it helps to have resolutions that enrich both you and your stakeholders.

Here are mine for the coming year:

For readers:

  • A redesign of my site with an option to switch to a lighter design (you either like dark or not).
  • More publishing, not just blogs but articles, white papers and, dare I say, “The Book”.
  • Better organization of content so your interest is easier to find.
  • A reach out for input, suggestions and interest from readers.
  • Some regularly scheduled post topics (series, parts, “word” posts etc.).
  • Flexibility if it turns out readers have different reasons for frequenting my site than I am assuming.

For me:

  • All of the above repeated (I can see I would be equally enriched if I lived up to them- change is like that).
  • Collateral for my use with clients and to increase revenue.
  • Seminars, webinars, podcasts and, if I can go without sleep, video.
  • A reach out beyond my blog to others with the end state focus message.
  • Finding a senior executive who gets it and is willing to be an evangelist for the importance of seeing end states and working back from the descriptions.

If you are a regular reader (I never really thought about having readers. It just seemed important to speak up. Thank you for listening!) and want to add to my list for you, me or items of your own others can grab please speak up. I would love to have 2012 be more of an exchange and dialogue- with 450 posts and counting it appears there is a lot to talk about!

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