as Project Management

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Nov 6, 2013 (3 years and 1 month ago)

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2013 NCPMI Annual Conference

Rich Burton

Organization Change Implementation
as Project Management

Professor of Strategy and Organization

2013 NCPMI


Annual Conference

Organization Change Implementation as Project Management


Co
-
Authors on Upcoming Book


Børge Obel ,
Aarhus University & consultant


Dorthe Døjbak Håkonsson,
Aarhus University &
MindLab

2013 NCPMI


Annual Conference

Organization Change Implementation as Project Management

Corporate support


Novo Nordisk


Shell


Other consulting clients


Carroll et al 2006 NASA study


YOU! We need your comments & help

2013 NCPMI


Annual Conference

Organization Change Implementation as Project Management

What do we mean by Project Management?




What is to be done?


Who is to do it?


When is it to be done?


Sounds simple!

2013 NCPMI


Annual Conference

Ray Levitt, Stanford University

Developer of
Vite

SimVision

Project Management

ePM

consulting


Daily
coordination
Inform employees
Decide change
pattern
Change ICT system
Change
formalization
Misfit analysis
Change
configuration
Structural
design
complete
d
Management
restructuring
Match people to new
structure
New
design
complete
d
Start
Finish
Reduce resistance
to change
Diagnosis
finished
2013 NCPMI


Annual Conference

OBEL HÅKONSSON
BURTON


THE THREE STEP MODEL



]



Step

1:

Organizational

Audit & Design



Gather

information


Make

diagnostic
analysis

&
determine

misalignments



Decide

which

misalignments

to
fix

for a new design

Step

2:

Action Plan



Assess

the
process

&
content
costs

for a
proposed

sequence



Determine

the
sequence

of fixing
misalignments



Decide

which

detailed

design variables to change

Step

3:

Implementation

Plan



Allocate

responsibilities

&
resources



Decide

on
milestones

& deadlines


Follow

up on
progress


Make

progress

visible


Communicate

the plan

2013 NCPMI


Annual Conference

Microsoft: Quick Review

Recently, Steve
Balmer

Microsoft’s retiring CEO wrote in an e
-
mail to all Microsoft employees:



Today,

we

are

announcing

a

far
-
reaching

realignment

of

the

company

that

will

enable

us

to

innovate

with

greater

speed,

efficiency

and

capability

in

a

fast

changing

world
.

Today’s

announcement

will

enable

us

to

execute

even

better

on

our

strategy

to

deliver

a

family

of

devices

and

services

that

best

empower

people

for

the

activities

they

value

most

and

the

enterprise

extensions

and

services

that

are

most

valuable

to

business”
.


We Know a Lot About Strategy…

Porter’s Five


Forces…

2013 NCPMI


Annual Conference

THE THREE STEP MODEL



]



Step

1:

Organizational

Audit & Design



Gather

information


Make

diagnostic
analysis

&
determine

misalignments



Decide

which

misalignments

to
fix

for a new design

Step

2:

Action Plan




Step

3:

Implementation

Plan


2013 NCPMI


Annual Conference

HP

On to March 21, 2012, HP announced:


“an

organizational

realignment

to

improve

performance

and

drive

profitable

growth

across

the

entire

HP

portfolio
.

The

new

structure

is

expected

to

speed

decision

making,

increase

productivity

and

improve

efficiency,

while

providing

a

simplified

customer

experience
.

Ensuring

we

have

the

right

organizational

structure

in

place

is

a

critical

first

step

in

driving

improved

execution,

and

increasing

effectiveness

and

efficiency,”

“The

result

will

be

a

faster,

more

streamlined,

performance
-
driven

HP

that

is

customer

focused

and

poised

to

capitalize

on

rapidly

shifting

industry

trends
.




On August 8, 2012 HP announced organizational changes for Enterprise Services with leadership changes


On August 21, 2013HP announced changes to its executive leadership team that will help the company
accelerate its turnaround. In a separate organizational move, HP combined its marketing and
communications organizations under the leadership of Chief Communications Officer Henry Gomez.
All of the changes were to be effective immediately HP announced. (In principle this announcement
covered all three steps in the implementation process).

2013 NCPMI


Annual Conference

Formal organization

Informal organization


Organization Design


Role responsibility


Business Processes


Policy and Standards


Governance structure


Decision rights


Decision processes


Monetary rewards


Control models


Formal
recognition


Information flows


Knowledge Management system


Relations


Collaboration


Teams


Organizational influence


Values and standards


Expectations


Unwritten
rules



Table 1: HP WAY NOW

2013 NCPMI


Annual Conference

THE DIAMOND MODEL


BURTON
OBEL

DESANCTIS
,
2011

Task Design
Strategy
Goal
Incentives
Environment
Configuration
Complexity
Knowledge
Exchange
People
Leadership Style
Climate
Coordination
/
Control
Information
Systems
Geographic
Distribution
2013 NCPMI


Annual Conference




Organization
Design
Parameters
and Dimension
scores for
alignment


Design Parameter


Scores

Low……………………
……..High

Scores

Low………………………….High

Goal

Efficiency

Effectiveness

Strategy

Exploitation

Exploration

Environment

Complexity

Unpredictability

Organizational Complexity

Vertical differentiation

Horizontal differentiation

Configuration

Functional orientation

Product/service/customer orientation

Geography

Optimal sourcing

Local responsiveness

Knowledge exchange

IT
-
infused

Virtualization

Task design

Divisibility

Repetitiveness

People

Number

Professionalization

Leadership style

Uncertainty avoidance

Preference for delegation

Organizational climate

Tension

Readiness to Change

Coordination and control

Formalization

Decentralization

Information system

Amount

Tacit nature

Incentives

Target of incentives

Basis of evaluation

2013 NCPMI


Annual Conference




Design
Parameter


Low…High Scores


Low
...
High Scores


Who
has this information


When
do we gather
information

Goal

Efficiency

Effectiveness

CEO/C
-
suite, board of directors, official
documents

Very early in the change process

Strategy

Exploitation

Exploration

CEO/C
-
suite, board of directors, official
documents

Environment

Complexity

Unpredictability

CEO/C
-
suite, marketing group, HR group,
Technology group

Organizational Complexity

Vertical dimension

Horizontal
dimension

Organization charts for reporting relations,
examine work flows in information processing,

Configuration

Functional
orientation

Product/service/cu
stomer orientation


Organization charts for reporting relations,
examine work flows in information processing,

Geography

Optimal sourcing

Local orientation

Knowledge exchange

IT
-
infused

Virtualization

Task design

Divisibility

Repetitiveness


workflow analysis, work technology level

People

Number

Professionalization

employee survey; employee focus group,

Leadership style

Uncertainty
avoidance

Preference for
delegation

CEO suite self assessment, examine who
makes what decisions

Organizational climate

Tension

Readiness to
Change

HR

Coordination and control

Formalization

Decentralization

Information system

Amount

Tacit nature

Incentives

Target
: individual
or

group

Basis: behavioral

or
results

2013 NCPMI


Annual Conference

Figure 1.1: Organizational Design Change Model
[


Step

1:


Organizational

Audit and Design

Step

2:

Action Plan



Assess

the
process

and
content
costs

for a
proposed

sequence



Determine

the
sequence

of
fixing the
misalignments


Make

decision

on
which

detailed

design variables to
change

Step

3:

Implementation

Plan



2013 NCPMI


Annual Conference

Organization Change Implementation as Project Management



Finding the right path or order of what to do



Aarhus University: IT timing created a problem



HP : informal first



The Diamond Model: the large number of


possible orders


2013 NCPMI


Annual Conference

THE DIAMOND MODEL


BURTON
OBEL

DESANCTIS
,
2011

Task Design
Strategy
Goal
Incentives
Environment
Configuration
Complexity
Knowledge
Exchange
People
Leadership Style
Climate
Coordination
/
Control
Information
Systems
Geographic
Distribution
2013 NCPMI


Annual Conference

Organization Change Implementation as Project Management

Guidelines on the right path


Fixing one dimension is likely to make things worse; it takes more
integration e.g., change structure only


Do IT first e.g., Aarhus University


Prepare the culture: HP


Incentives are frequently ignored: efficiency, effectiveness


Anticipate difficulties: focus on what can go wrong for a possible order


Things may get worse before they get better


Change is costly

2013 NCPMI


Annual Conference

Figure 1.1: Organizational Design Change Model


Step

1:


Organizational

Audit and
Design

Step

2:

Action Plan

Step

3:

Implementation

Plan



Allocate

responsibilities

and
resources



Decide

on
milestones

and deadlines


Follow

up on
progress


Make

progress

visible


Communicate

the plan

2013 NCPMI


Annual Conference

Organization Change Implementation as
Project Management: What Who When


What are the tasks


Assignment of Who is responsible:
individuals, group, committee, taskforce


When: the order of change


Milestones and deadlines


Lay out the Project Management chart



2013 NCPMI


Annual Conference

2013 NCPMI


Annual Conference

THE THREE STEP MODEL



]



Step

1:

Organizational

Audit & Design



Gather

information


Make

diagnostic
analysis

and
determine

the
misalignments



Decide

which

misalignments

to
fix

for a new design

Step

2:

Action Plan



Assess

the
process

and
content
costs

for a
proposed

sequence



Determine

the
sequence

of fixing the
misalignments



Make

decision

on
which

detailed

design variables
to change

Step

3:

Implementation

Plan



Allocate

responsibilities

and
resources



Decide

on
milestones

and deadlines


Follow

up on
progress


Make

progress

visible


Communicate

the plan

2013 NCPMI


Annual Conference

Organization Change Implementation as Project Management



Overall Assessment for PM



Each step is a project of what, who and when


Your skills as PM can be crucial


Steps 2 & 3 are the more likely to be messed up


Your advantage is steps 2 & 3

2013 NCPMI


Annual Conference

Organization Change Implementation as Project Management

Implications for you


Change is coming, Get involved


change is not spectator sport


Use your PM skills to be a change agent


Map what you see as a project with: what, who and when


Map what you think will happen as a project


Know what is happening; volunteer, join taskforces


Join Committees: ask questions, set agenda, report results, create what
happened


Develop the change implementation plan for strategy and organizational
design


Use your PM skills to be a change agent