1 IPW 2017 Managing Data Risks in the Digital AgeManaging Change for Sustainable Improvements Lecture 4 DR Tony O’Brien

2 Aims of today’s sessionMethods of embedding business process changes to achieve sustainable organisational improvement initiatives via People, Culture and Politics Managing the Change and then Embedding the Change to achieve Sustainability

3 People Information Producers, Processors, Consumers, 'Users'.. also'Knowledge Workers' - Peter Drucker/Stephen Covey, English (2009) Knowledge Management is as much about ‘People’ as Information. Davenport and Marchand (2000) People are essentially unpredictable unlike the more controlled process flows Whitehead (2006) Deloitte survey: 99 corporations of which 90% had revenues > $1bn Deloitte (1999) 57% of IT issues and problems are people related Change management, Quality of staff and education and training, resistance to change Education is the single most essential factor in successful projects Goodfellow (1994) People who are trained and work together as a team are the key to success or failure Wallace and Kremzar (2001) The importance of 'soft skills', change management, performance measures, rewards employee morale Mohamed and McLaren (2009)

4 Culture Information Culture: Davenport and Prusak (1997)Organisational Culture- ‘The way we do things around here’- allied to: The importance of Corporate Values upon: Information Culture: Davenport and Prusak (1997) The attitudes and patterns of behaviour that identifies an organisation’s approach to information An important influence on how it views and uses information

5 Information Politics and CultureManaging the politics of information, together with changes in organisational culture, is difficult, complex and time consuming. Five models of information politics were identified in order of increasing effectiveness. Davenport Eccles and Prusak (1992: 56) Davenport and Prusak (1997: 69) Technocratic Utopianism: A heavily technical approach to information management stressing categorisation and modelling of an organisation’s full information assets, with heavy reliance on emerging technologies Anarchy: The absence of any overall information management policy, leaving individuals to obtain and manage their own information. Feudalism: The management of information by individual business units or functions, which define their own information needs and report only limited information to the overall corporation. Monarchy: The definition of information categories and reporting structures by the firm’s leaders, who may or may not share the information willingly after collecting it. Federalism: An approach to information management based on consensus and negotiation on the organisation’s key information elements and reporting structures.

6 Organisational Culture and ChangeEasier to get the hard components right Can be developed in-house or get external help Difficult to get the soft components right Resistance to change, Not enough impetus to change Vested interests Changing existing beliefs, view points and assumptions, touching on organisational culture We all like our 'comfort zone'

7 Managing Change Implementing any change or improvement involves changing human behaviour A study identified that communication plays a fundamental role in the success or failure of such programmes Lewis (2000) Four key themes emerged: Creating, sharing and communicating a vision to everyone Sense making around the vision with the provision of feedback opportunities Establishing legitimacy for change around the stakeholders (getting ‘buy in’) Communicating goal achievements- publicising successes, providing evidence of continued progress towards targets, milestones, etc

8 Henley Management College research- £25bn is wasted annually on UK improvement processes Upwards of 80% of such programmes fail to meet expectations Eaton and Phillips (2006) Fractures stakeholder commitment Poor communication Poor diagnosis of change problem Wrong diagnosis = wrong change remedy Lack of collaboration Prevents team cohesiveness

9 Managing change Three scenariosTurnaround: emphasis on speed and cost reduction the aim is to achieve immediate results (financial) Revolutionary: fast change AND cultural change, often characterised by strategic drift Evolutionary: creating an organisation capable of continual change (the learning organisation)

10 Diagnosing change Managers need to understand the situation: what types of change are required, the context in which change occurring , the blockages to change and how to encourage change Types Importance of context Blockages to change Communicating the change process

11 Styles of Managing ChangeEducate: explain Collaborate: involve Intervene: delegate through change agent Direct: top down vision Coerce: explicit use of power to impose

12 Theoretical Models for Managing ChangeFormula for Change Stages of Change Model Kotter’s Eight-Step Change Model

13 Formula for Change ModelD x V x F >R If the combined elements of: D= Dissatisfaction with the current situation V= Vision of what can be achieved F= First steps that can be taken to commence the change Is greater than the initial R= Resistance to change Then there is a possibility that change can be implemented Based upon the work of Richard Beckhard and David Gleicher Jacobs(1994:122)

14 Stages of Change Model ‘Transtheoretical’ ModelSix to Seven Stages: Pre-contemplation- no awareness or intention to change Contemplation- awareness but no firm commitment Preparation- action intended Action- some change initiated Maintenance- initial enthusiasm gives way to normality which can lead to: Reversion to type/Relapse then return to ‘Action’ Termination- change fully inculcated Prochaska and DiCelemente (1982)

15 Managing this Change

16 Kotter’s Eight-Step Change ModelEstablishing a sense or urgency Creating the guiding coalition Developing a vision and strategy Communicating the change vision Empowering employees for action Generating short-term wins Consolidating gains Anchoring and embedding change in culture Kotter (1996)

17 Overcoming user resistanceKotter and Schlesinger (1979) identified six approaches to change Education and communication Participation Facilitation and support Negotiation Manipulation and co-optation Power / coercion Education – see the logic and need for the change – one to one groups, cascades Participation – potential resistors involved in change Facilitation and support – training in new skills, time off for a demanding period!!! Negotiation and agreement – provide incentives (but very expensive and sets precedents) Manipulation and Cooptation – coopt a influential resistor not for that person to participate but to endorse the new way. Explicit and implicit coercion – where speed is essential and initiator has power. Long term game?

18 Real World Example Data Quality Improvement ProjectRemploy Largest provider of employment opportunities for disabled people in the UK Employing 6,000 disabled people across 65 factories and business offices Project DQ was seen as ‘key’ to a number of important corporate projects Recognition of the need for quality data at source Data Quality Improvement Project launched in 2005 with executive sponsorship (Director of Finance)

19 Overall Project Improvement

20 Managing Change Personal reflectionChange processes attempt to affect human behaviour Recognition that setbacks can occur at all times and are the norm A long term positive solution-focussed approach should be employed No big bang- but a step by step; action upon action; decision upon decision process Continuous measurement, reporting and communicating Change Leaders/Champions at all levels Involving and developing everyone

21 Deciding Factors Sell the concept up and down the organisationAttitude & willingness at all levels to embrace something new Senior management sponsorship & involvement Measurement of progress & the publication of the results Attempt to address cultural issues System & structural changes can prevent a return to type Have a ‘internal champions’ who has the respect of the audience Personal experience

22 Lessons Learnt Take things slowly to ensure everyone is on-boardIdentify who has ownership/custody and responsibility. The businesses ‘own’ the data- culture change/paradigm shift Provide regular visible measures and monitor progress Build data quality targets into peoples’ objectives Ascertain root causes of issues and resolve problems at source Identify how the process will improve the quality of the data and thereby support the corporate mission to make a difference to the lives of disadvantaged individuals 22

23 Managing Change https://www.youtube.com/watch?v=k69i_yAhEcQhttps://www.youtube.com/watch?v=owU5aTNPJbs https://www.youtube.com/watch?v=vPhM8lxibSU https://www.youtube.com/watch?v=2ssUnbrhf_U https://www.youtube.com/watch?v=f60dheI4ARg https://www.youtube.com/watch?v=hcz1aZ60k7w

24 Implications? Finnish Red Cross Kontti

25 References/Sources Austin and Macfarlan (2007) Corporate Information Strategy and Management , 7th Edition, McGraw Hill, 2007) Eaton, M. and Phillips, S. (2006) Sustaining Improvement: Is It a Pipe Dream: ezinearticles. Jacobs, R. W. (1994) Real-time strategic change: How to involve an entire organization in fast and far-reaching change. San Francisco: Berrett-Koehler: 335. Kotter JP, Schlesinger LA. Choosing strategies for change. Harv Bus Rev 1979; 57(2): Kotter, J. (1996) Leading Change. Cambridge: Harvard Business School Press: 203. Lewis, L. K. (2000) Communicating Change: Four Cases of Quality Programs. Journal of Business Communication, 37(2): Marchand, D. (1998) ‘Competing with Intellectual Capital.’ in G. von Krogh, G. Roos and D. Kleine Knowing I Firms. London, Sage: Mutch, A. (2008) Managing Information and Knowledge in Organizations. London: Routledge: 272. Prochaska, J. O. and DiClementie, C. C. (1982) Trans-theoretical therapy- towards a more integrated model of change. Psychotherapy: Theory, Research and Practice, 19(3):