{"id":518,"date":"2017-01-25T20:11:15","date_gmt":"2017-01-25T20:11:15","guid":{"rendered":"http:\/\/paulgibbons.net\/?p=518"},"modified":"2017-01-25T20:14:57","modified_gmt":"2017-01-25T20:14:57","slug":"change-strategy-introduction-science-org-change","status":"publish","type":"post","link":"https:\/\/paulgibbons.net\/oldsite\/change-strategy-introduction-science-org-change\/","title":{"rendered":"Change Strategy: Introduction (Science of Org Change)"},"content":{"rendered":"

A day late and a dollar short<\/h3>\n

As a consultant frequently called-in mid-project when change is going badly, I am asked to supply tactical means of resolving people and culture problems.\u00a0 As with aid workers surveying a post-hurricane scene, I find political conflicts, unhappy stakeholders, culture clashes, dysfunctional project teams, skills issues, sponsorship troubles, delays and overruns all of which need to be urgently fixed.\u00a0 I often wish I could hop into a time-machine, go back eighteen months to project conception and ask the hard strategy questions. Tactical solutions are limited in their ability to fix a flawed strategy.\u00a0 The same is not true if the strategy is sound, change management tactics can resolve many of those thorny issues. Sun Tzu says it beautifully, “Victorious warriors win, then go to war, while defeated warriors go to war and attempt to win.”\u00a0 Often by the time change experts are asked to help, the battle has already been joined, and the best they can offer is a rearguard action.<\/p>\n

Yet despite the importance of putting strategy first, the preponderance, perhaps as much as 95 percent, of what is written about change, is written about change tactics. For example, Professor John Kotter, of Harvard, wrote the most influential book on change leadership, Leading Change in 1996.\u00a0 Kotter’s famous eight steps are: Create Urgency, Form a Powerful Coalition, Create a Vision for Change, Communicate the Vision, Remove Obstacles, Create Short-term Wins, Build on the Change, and Anchor the Changes in Corporate Culture.\u00a0 All mandatory steps, yet all but one are tactical, not strategic, despite the volume’s overall usefulness and practicality.<\/p>\n

 <\/p>\n

Change strategy versus change tactics<\/h3>\n

Strategy differentiates itself from tactics in ways fully explored later, but which include: length of time horizon, willingness to challenge assumptions and received wisdom, which risks are considered and how they are analyzed, kind of cognitive processes required, and in the accountability of the strategy process.<\/p>\n

To elaborate what I mean when I distinguish change strategy from tactics, I offer the following table.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Change Strategy versus Change Tactics<\/caption>\n
Change Strategy versus Change tactics<\/th>\n<\/tr>\n<\/thead>\n
Purpose<\/th>\nDoing the right things, at the right time, in the right sequence<\/td>\nDoing things right: time, cost, and quality<\/td>\n<\/tr>\n
Worldview<\/th>\nVUCA<\/td>\nStability, structure, planning<\/td>\n<\/tr>\n
Accountability<\/th>\nBusiness success<\/td>\nProject success<\/td>\n<\/tr>\n
Scope<\/th>\nExtra-organizational focus, links dependencies between projects<\/td>\nIntra-organizational focus<\/td>\n<\/tr>\n
Time horizon<\/th>\nThe medium to long view<\/td>\nShort term (under two years)<\/td>\n<\/tr>\n
Assumptions\/ mental models<\/th>\nChallenge conventional wisdom,\u00a0contrarian\u00a0mentality, global context<\/td>\nAccept conventional wisdom, \u201chead down\u201d, benchmark, local excellence<\/td>\n<\/tr>\n
Virtues<\/th>\nBalance risk-taking and prudence<\/td>\nBalance pace and engagement<\/td>\n<\/tr>\n
Kind of thinking<\/th>\nForesight, causal, creative, expansive, flexible, reflective, probabilistic<\/td>\nPlanning, empathy, deterministic, convergent, precise<\/td>\n<\/tr>\n
Unique risks<\/th>\nUnintended consequences, over- extension, overload<\/td>\nPlanning errors, missing details, stakeholder mismanagement<\/td>\n<\/tr>\n
Major decisions<\/th>\nGrand strategy (vide infra)<\/p>\n

Meta-strategy(see\u00a0Ch\u00a03)<\/td>\n

Prototype v big bang<\/p>\n

Level of involvement<\/p>\n

Serial v parallel<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Strategic coherence and grand strategies<\/h3>\n

In today\u2019s multi-national, with multiple business units, divisions, regions, and functions, there will be multiple strategies, some centrally determined, but with local implementation autonomy, and some determined and implemented locally.<\/p>\n

The most disastrous loss of value is when such strategies do not cohere.\u00a0 In this author\u2019s view: \u00a0Strategic coherence is more important than strategic perfection.<\/em><\/strong><\/p>\n

For example, Hewlett Packard (HP) is currently in a \u201cfix and rebuild\u201d strategy that involves centrally dictated cost-cutting targets.\u00a0 Such targets are bluntly designed and communicated as \u201cwe need to cut 1000 of our 7000 staff within the next six months.\u201d<\/p>\n

However when HP\u2019s COO visited a regional office, he enquired why labor costs had increased rather than decreased despite shedding 14% of the workforce.\u00a0 The response was that contract workers were required to maintain levels of customer service to meet another strategic imperative \u2013 to become \u201cthe leading IT services company\u201d \u2013 which includes \u201cdelivering the HP experience\u201d.<\/p>\n

Coherence can be achieved by \u201cgrand strategy\u201d design, which in the world of politics, war, and foreign affairs means:<\/p>\n

    \n
  1. Expanding strategy beyond just military means (diplomatic, financial, economic, and cultural).<\/li>\n
  2. Considering internal strategic forces and alignment, the realpolitik of strategy feasibility.<\/li>\n
  3. Including strategies for \u201cwinning the peace\u201d once military conflict has ended.<\/li>\n<\/ol>\n

    Creating an organizational grand strategy is therefore a more holistic way of strategy formulation.\u00a0 Typical, generic corporate grand strategies can include: market growth, product development, turnaround, liquidation, diversification, vertical integration, innovation, growth concentration, horizontal integration.\u00a0 The acid test for any change project, and a critical way of timing, and sequencing, major change is alignment with the grand strategy (or excellent rationale for exception.)\u00a0 The HP tactic (headcount reduction) must be assessed for its contribution to the grand strategy and local strategies to prevent waste and unintended consequences.<\/p>\n

    In the first chapter of this section, Cognitive Biases and Failed Strategies<\/strong>, we look at cognitive biases and the systematic change strategy mistakes that result from them.\u00a0 We see how perceptual and reasoning flaws color which problems are selected, distort views of current reality, and skew solutions.<\/p>\n

    The next chapter, Governance and Strategy in a VUCA World<\/strong>, examines the governance implications of strategizing in a VUCA (Volatile, Uncertain, Complex, and Ambiguous) world.\u00a0 This includes treatments of how poorly humans understand probability, biases which affect risk assessment and planning, solving problems in complex environments, and leading in the \u201cfog of war\u201d (ambiguity).<\/p>\n

    The concluding chapter in this section, The Leader as Scientist<\/strong>, looks at whether the scientific mindset, or scientific outlook might contribute to contemporary understanding of leadership including a hard look at an idea called Evidence Based Management.<\/p>\n

     <\/p>\n

    [1] Taken broadly, change strategy could mean all executive level decisions affecting business direction.\u00a0 Here we limit it to strategy only as it pertains to major, programmatic change for example: IT systems projects, process redesign, six-sigma, or restructuring.<\/p>\n","protected":false},"excerpt":{"rendered":"

    A day late and a dollar short As a consultant frequently called-in mid-project when change is going badly, I am asked to supply tactical means of resolving people and culture problems.\u00a0 As with aid workers surveying a post-hurricane scene, I find political conflicts, unhappy stakeholders, culture clashes, dysfunctional project teams, skills issues, sponsorship troubles, delays […]<\/p>\n","protected":false},"author":1,"featured_media":520,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nChange Strategy: Introduction (Science of Org Change) - Paul Gibbons<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/paulgibbons.net\/oldsite\/change-strategy-introduction-science-org-change\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Change Strategy: Introduction (Science of Org Change) - 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