Make Shift Happen: Leading Change - Global Scrum Gathering 2019

Steve Martin, Certified Scrum@Scale Trainer, CSP, PMI-ACP
Principal Enterprise Agile Coach, Agile Velocity
steve.martin@agilevelocity.com
Make Shift Happen: Leading Change

Workshop Objectives
• Describe the difference between change management
and change leadership
• Recognize the importance and role of leading change
• Gain insights into your leadership style tendencies as it
relates to change through a short self-assessment
© 2019 Cottage Street Consulting

Agenda
¨ Introduction
¨ Change Management vs Change Leadership
¤ Let’s Deal With It
¨ Leadership Styles and Change
¤ Leadership Assessment
¨ Wrap-Up

INTRO:
WHAT’S ALL THE FUSS
WITH CHANGE?

Let’s try an experiment…

70%
30%
Fail Not Fail
Source: Grady and Grady (2013) (Full citation next slide)
Change Initiative Outcomes Success Rates

Rapid change is here to stay
9
¨ In today’s global economy:1
¤ Stability and predictability is a relic of the past
¤ Organizational change is the status quo
¨ Competitive advantage is temporary and non-singular. 2
¤ Companies win by “having one advantage after
another over a period of time”
Sources:
1. Grady, V. M., & Grady, J. D. (2013). The relationship of Bowlby's Attachment Theory to the persistent failure of organizational
change initiatives. Journal of Change Management, 13(2), 206-222. doi:10.1080/14697017.2012.728534
2. Muratović, H. (2013). Building competitive advantage of the company based on changing organizational culture. Economic
Review: Journal of Economics & Business / Ekonomska Revija: Casopis Za Ekonomiju i Biznis, 11(1), 61–76.

Good leadership is essential
Good leaders bring out
three times more
¨ Talent
¨ Energy
¨ Motivation
of their employees
than the worst leaders
10
Source: Meinert, D. (2017). Why leaders fail: Learn to course-correct before your career founders. HR Magazine, 62(8), 18.
3X

Yet, leadership is in eye of the beholder
There are “almost as many
definitions [of leadership] as
there are persons that have
attempted to define it”
Source: Gandolfi, F., & Stone, S. (2016). Clarifying leadership: High-impact leaders in a time of leadership crisis. Review of International Comparative Management,
17(3), 212-224.
11

Various theories of leadership
12
Transformational
Transactional
Servant Leadership
Authentic Leadership
Situational
Leadership
Behavioral
Leadership
Adaptive
Psychodynamic
Charismatic
Autocratic
Authoritative
Primal

Leadership is the key

Keys to leadership in reality

CHANGE MANAGEMENT VS
CHANGE LEADERSHIP

Shout it Out.
Where does change come
from in your organization?
17

Change is everywhere
Projects/ Initiatives
CHANGE
Internal Factors
External Environment
Source: https://www.prosci.com/resources/articles/what-is-change-management

Change is everywhere – and scary!

Fear of Change
¨ Fear is based in uncertainty
¤ Ever wonder why we try to manage change?
¤ We’re trying to manage uncertainty, bring sense to the
unknown
¨ Fear feeds aversion to change
¤ Our brains are wired such that we prefer predictable
negative outcome over an uncertain one
¨ Yet, the mind is flexible and adaptive
¤ How would we explain innovation?
Source: Razzetti, G. (2018). How to overcome the fear of change. Psychology Today. Retrieved from
https://www.psychologytoday.com/us/blog/the-adaptive-mind/201809/how-overcome-the-fear-change

Fear appears throughout organizations
“Not only is it the lower-tiered employee that is resistant
to change, but also the upper-level manager. Apathy
and habit seem to be the two ills that ravage the
mindset of individuals in an organization.” (p. 123)
Source: Dutta, S. K., & Kleiner, B. (2015). The benefits of effective change management on an organization’s
culture. Leadership & Organizational Management Journal, 2015(1), 120–128.

3 Levels of Change
Enterprise
Org/Initiative
Individual

Effort for change…
Enterprise
Org/Initiative
Individual

The hard truth
Organizations
do not change.
People do.

Change Management
¨ “Change management is the discipline that guides
how we prepare, equip and support individuals to
successfully adopt change in order to drive
organizational success and outcomes.”
¨ “Change management provides a structured
approach for supporting the individuals in your
organization to move from their own current states
to their own future states.”

Image originated by Olivier Carré-Delisle was modified.
Manager
26

Change Leadership
¨ Focus is on the engine for change1
¤ Change to go faster
¤ Change to be more effective
¨ Involves big visions and empowering people1
¨ Requires leaders to change themselves2
¤ Conscious application of new skills in change leadership
to lead persons to co-create the future
1. Kotter, J. (2012, February 6). What is the difference between change management and change leadership [Video file].
Retrieved from https://www.youtube.com/watch?v=2ssUnbrhf_U&list=PLRA49gaKoVqOdc28ycg8rgTOC6tNoxKP0
2. Anderson, D., & Anderson, L. (2010). Beyond change management: How to achieve breakthrough results through conscious change
leadership. San Francisco, CA: Pfeiffer, an imprint of Wiley.

There are multiple change models
¨ There are multiple models to help organizations
understand and execute change

Kotter’s 8 Steps
Source: https://www.kotterinc.com/8-steps-process-for-leading-change/

McKinsey 7S Framework
Shared
Vision
Structure
Systems
Style
Staff
Skills
Strategy
Source: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-7-s-framework

ADKAR
Awareness Desire Knowledge Ability
(Action) Reinforce
Source: https://www.prosci.com/adkar/adkar-model

The model doesn’t necessarily matter
It’s the mindset that matters.

Change begins with leadership
¨ “representatives responsible for the organization’s
culture must have an environment conducive to
achieving the organization’s objectives.”1 p 78
¨ "organizational culture is the mirror of this
organization leaders’ consciousness; therefore,
cultural transformation begins with leaders’
individual transformation.“2 p 245
1. Kaya, S., & Secim, H. (2018). Research on the relationship between organization culture and its justice in the health
profession. Revista de Cercetare Si Interventie Sociala, 61, 77–90.
2. Cekuls, A. (2015). Leadership values in transformation of organizational culture to implement competitive intelligence
management: The trust building through organizational culture. European Integration Studies, (9), 244–256. doi:
10.5755/j01.eis.0.9.12811

Leadership paradigms are changing
¨ Clear market knowledge
¨ Choose the best solution
¨ Do it right the first time
¨ Perfect Plans
¨ Centralize control
¨ Vary the labor (resources)
¨ Uncertain and volatile markets
¨ Learn as you go
¨ Incremental progress
¨ Informed respond over perfect
¨ Empowered teams
¨ Leverage the workers’ collective
knowledge and experience
Traditional Approach:
Manage to Projects and Certainty
New Approach:
Adapting to Emerging Environments
“Transactional” Leadership:
Do this, get that.
“Transformational” Leadership:
Enabling others.
36

Empowerment
¨ Theme of empowerment pervasive throughout change
models
¨ Empowering others has greater results than a directive
leadership style1
¨ Empowerment does NOT mean bestowing authority and
new responsibilities; empowerment means removing
barriers so followers can be successful2
1. Martin, S. L., Liao, H., & Campbell, E. M. (2013). Directive versus empowering leadership: A field experiment
comparing impacts on task proficiency and proactivity. Academy of Management Journal, 56(5), 1372-1395.
doi:10.5465/amj.2011.0113
2. Kotter, J., & Cohen, D. (2002). Creative ways to empower action to change the organization: Cases in point.
Journal of Organizational Excellence, 22(1), 73–82.

Psychological Empowerment
¨ Leaders who can generate intrinsic self-motivation
of followers
¨ More important than authority and structure
Source: Seibert, S., Wang, G., & Courtright, S. (2011). Antecedents and consequences of psychological and team empowerment in
organizations: A meta-analytic review. Journal of Applied Psychology, 96(5), 981-1003.

Formal vs Informal Authority
¨ Using power of position to
influence or command thought,
opinion, or behavior
¤ Often located at the top or
higher levels
¨ Command and control
¨ Influence via respect, trust,
credibility, admiration, and
acceptance
Formal Authority Informal Authority
In modern business world requiring rapid adaptive solutions, formal
authority is becoming less necessary as it’s purpose becomes less clear.
Source: Serrat, O. (2010). Informal authority in the workplace. Retrieved from
http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1161&context=intl

Leadership Assessment

In summary: Leadership and change
¨ Innovation required abandoning what you know, whether it’s
product, service, policy, etc.
¨ Abandonment should be accompanied simultaneously with
continuous improvement
¨ New efforts should clearly spell out what is to be abandoned.
¨ Abandonment should be systematic, not ad hoc or haphazard
¨ The most effective way to manage change is to create it
yourself
¨ Action based in critical thinking is needed
¤ There are “no four or nine celled matrix, no equations,
nothing.”
Source: Cohen, William. (2016) Why Success Can Make You More Likely to Fail. Adapted from “Peter Drucker’s Consulting Principles: And How to Apply them for Success.. Accessed via:
https://www.cio.co.nz/article/617052/cio-upfront-leading-through-fear: Mansell-other-lessons-digital-strategists/

Some final thoughts
¨ Change is everywhere and here to stay
¨ Managing change is implementing change
¨ Leading change is setting structures and engine
for enduring change
¨ Common theme amongst multiple change
models is leadership matters
¤ Create environment for change, including
embracing empowerment and informal
authority
¨ Change starts with you first

Q & A
¨ Steve Martin
¨ www.linkedin.com/in/agilesteve
¨ www.agilevelocity.com
¨ steve.martin@agilevelocity.com

Characteristics of a Good Change Experiment
¨ A good change experiment has the following characteristics; it is:
¤ The smallest noticeable change you can make; it is your Minimum Viable
Change (MVC)*.
¤ It has a clear hypothesis; with both an experimental outcome and a
baseline outcome.
¤ It has a strategy to amplify it if it is successful.
¤ It has a strategy to recover and learn from it if it fails.
¨ If you are implementing the principles above, it should also be
developed in conjunction with the people it will effect, and it should
be made visible to anyone who wants to see it; including the
recovery strategy.
¤ This is critical; you need to make it clear that failure is an option and
that you've thought about what to do if things go badly.
Source: Mansell, Matt. (2017) CIO upfront: Leading through fear and other lessons for digital strategists. CIO. Accessed via: https://www.cio.co.nz/article/617052/cio-upfront-leading-
through-fear-other-lessons-digital-strategists/

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Make Shift Happen: Leading Change - Global Scrum Gathering 2019