Next Generation Change & Transformation Management

This summary paper introduces 'Next Generation Change & Transformation Management'. It builds on existing Change Models and integrates the application of Dynamic Systems Maturity Theory (DSMT), which emerged from academic and industry research into the current and historic high failure rates (70%+) of change and transformation programs to meet their original objectives. It is recognised as a significant step improvement in change and transformation management process , improving outcomes and success rates. The key area addressed are:

• Change Drivers
• Scale of Change
• Change Dynamics
• Scope of Change
• Rate of Change (Maturity Levels)
• Change Failure Mechanisms
• Change Information Needs
• Change Information Sources (OrgCMF™)
• Summary Next Generation Change Management
• Current Generation Change Models

Change Drivers

To survive and thrive in today’s VUCA (Volatile, Uncertain, Complex, Ambiguous) environment, organisations must become more Agile, Innovative and Connected. This implies they need to be able to re-configure their capabilities to enable greater Agility and also to respond to, and/or to capture growth opportunities.

The change drivers are the catalyst for action and change. But all too often leaders assume their ambitions for change can be achieved by putting a change program in place, and executing this change program.

We know 70%+ of these programs fail. We also now know why 70%+ fail, but until now(1) our models and frameworks for change have not evolved to address these high failure rates.

An organisations capabilities and their related maturities determine both their current performance and their rate of change (Agility). These capabilities may be either disintegrative, meaning they are in the low half of a scientific maturity scale and as such are unlikely to have the capacity to absorb change without intervention to improve their maturity.

If some or all of the organisation’s capabilities are in the top half of the maturity scale, they are at a level that they can absorb change and self-improve, with appropriate guidance (Integrative), this does not always mean they are at the level that can deliver the leadership change ambition.

A key starting point for any change program is to acknowledge current performance levels (Balanced Score Card) and Assess existing capability maturity (OrgCMF™), and then identify target required capabilities and their maturities to achieve the leadership ambition and aims, in order that appropriate Capability and maturity building can be integrated into the change program.

By doing this ambitions and capabilities can be aligned, and change actions can be calibrated to the ability of the organisation to absorb, gain traction and sustainability, thus reducing failure rates.

(DSMT)

Scale of Change

The scale of any organisation change is often a reflection of the ambition of the organisation’s leadership. Understanding, Naming and Communicating the scale of change is an important component of any change program as it becomes a framing reference term for future actions and behaviours

Transformation

• The Process starts before destination is fully defined.

• The scope is significant with fundamental change.

• Radical Change to Strategy, Product, Process, Operations, Technology, etc., to meet Customer needs

Transition

• The existing way of operating replaced by known but different way.

• It will occur in a realistic timeframe.

• Impacts specific organisation domain(s)

Incremental

• The focus is mainly improving something existing.

• The current culture and practice will produce change.

• Acquiring capabilities to achieve changes is practical

Regardless of the Nature and Scale of Digital Transformation for an organisation, it is always more than a project or program. Organisation Development & Personal Development play a central role is successful Transformation.

Change Dynamics

Grouped into subsystems dynamics are the forces that influence the Organisation and its Maturity. “The dynamics” of an organisation are a logical means of grouping the characteristics of an organisation, according to how they contribute to the performance of the organisation and its ability to adapt to its environment. Dynamics’ impact growth, are variable, impact each other and are underpinned by Learning Constructs “Constructs”. We can measure the Maturity Level of Dynamics on a standard organisation science reference scale.

Scope of Change

The scope of any organisation change may be impacted by some or all of the organisations Constructs (Building Blocks). The “Constructs” which underpin a “Dynamic” can be measured, because they can be identified at “Learning Levels” or “Levels of Maturity”. This is important because organisation learning like human learning is a normative and sequential process. What does this mean? An organisation or a person at a specific learning level has an inherent performance capability, so to improve performance we must know the existing learning level so any intervention can be guided towards the next sequential level. Though the scientific research (Ref 1 above DSMT) indicates 15 “Levels” in practice they can be grouped into 7 levels.

Rate of Change (Maturity Levels)

The higher the measured maturity level for an organisation, or organisation subsystem the greater the rate of change that can occur (Agility). To understand more on the relationship between change resistance and Agility Link

The OrgCMF™ Reference Model and Body of Knowledge describes the ‘traits’ and ‘development focus’ for each level of Maturity. It does this at 4 levels: -

1. M1 Model Level – Organisation Overall (Sensor – example above)

2. M2 Dynamic Level (Triage)

3. M3 Construct Level (Diagnostic)

4. M4 Construct Level (Deep Diagnostic using DSMT 15 maturity levels)

Change Failure Mechanisms

The stages of maturity where specific failure mechanisms become visible and where they need to be addressed. If an organisation, Dynamic or construct resides in the ‘Red Zone’ then it’s essential to review guidance from level 1 because its ‘Disintegrative’ and foundation capabilities are missing or not at the required maturity level. If an organisation, Dynamic or construct resides in the ‘Blue Zone’ then it is ‘Integrative’ and is highly likely to have mitigated against earlier failure mechanisms.

Change Information Needs

In order to answer these key questions, the leader and team may formally or informally leverage the OrgCMF™ Body of Knowledge and/or Assessments. Depending on the organisation and leadership context, OrgCMF™ can be used formally or informally to; facilitate discussion and action planning, guide strategy and actions, to monitor progress and manage risks.

Change Information Sources (OrgCMF™)

OrgCMF™ Assessments are designed to allow the user target the specific information needs for their organisation context and the specific scope and scale for their change or transformation. The four Levels of Assessment are elaborated below. The user has flexibility to configure both the scope and the levels of Assessment to target with precision the information needs and their capability maturity development actions.

Summary Next Generation Change Management

We still use our good practice leadership and management processes and expertise coupled with the existing legacy change processes and models, to enhance change and transformation program outcomes. What the research and practice has added is the integration of capability maturity management to the process which brings more precision to planning and execution detail and a set of simple rules that should prevent the common failure mechanisms that occur with current models, and have occurred in the past.

Current Generation Change Models

Read about Value Creation & Capability Improvement