from John Kotter's Leading Change description of errors made by other organizations that need to be directly addressed in order to assure a successful outcome for our change efforts.

1. © 2002 CH2M HILL Communications Group
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Managing the Change Culture
From John Kotter’s “Leading
Change,” description of errors made
by other organizations that need to be
directly addressed in order to assure a
successful outcome from our change
efforts.

2. © 2002 CH2M HILL Communications Group
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BD02005 A 08/29/02
This Presentation
l The materials in Kotter’s article are directly applicable to our transformation
situation.
l The following slides have two sections:
4The identified risk
4The mitigation plans for that risk
l Followed by some “idea” slides for follow on work

3. © 2002 CH2M HILL Communications Group
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1: Establishing a Sense of Urgency
1. Most change begins with
individuals
2. Without motivation, people won’t
help and the effort goes no where
3. Too many managers and not
enough leaders
4. Transformations begin when an
organization has a new head who
is a good leader
5. Individuals or groups must facilitate
frank discussions of potentially
unpleasant facts
1. We need to spread the change
process fever to others
2. What motivation tools can we use
here?
3. Identify the leaders and empower
them, but also provide them time to
lead
4. We have this
5. We need more of this and less of
the “retelling of history”

4. © 2002 CH2M HILL Communications Group
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2: Forming a Powerful Guiding Coalition
1. Major renewal efforts often start
with one or two people
2. Major change is not possible
unless the head of the organization
is an active supporter
3. If the existing org is working there
would be no need for
transformation
4. Firms fail to understand the
difficulties in producing change and
the importance of a guiding
coalition
1. We have those
2. We have this
3. Identify the actual drivers for
transformation and communicate
this to the staff so they can share
the “pain”
4. Make the identification of obstacles
to change a continuous process

5. © 2002 CH2M HILL Communications Group
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3: Creating the Vision
1. A vision says something that helps
clarify the direction in which an
organization needs to move
2. Without a sensible vision, a
transformation effort will dissolve
into confusing and incompatible
projects
3. If you can’t communicate the vision
in 5 minutes or less and get a
reaction that signifies
understanding, you don’t have a
clear vision
1. Refine our vision with “change” in
mind
2. Connect the vision to the BSC
objectives and measurable
outcomes
3. Get the “elevator pitch” in place as
soon as possible. Build this story
using the people that form the core
of the “going forward” team.

6. © 2002 CH2M HILL Communications Group
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4: Communicating the Vision
1. Transformation is impossible
useless “many” people are willing
to help, to the point of making short
term sacrifices.
2. Gaining support and understanding
is tough when downsizing is a part
of the vision
3. Vision needs to include growth
possibilities as well.
4. In order to be successful we must
“walk the talk”
1. Assign transformation goals to
specific people
2. Develop a specific improvement
plan that by passes the downsizing
process – e.g. “those of us left
have a job to do and this is the
job.”
3. Define this growth path and put a
“sales” org in place to make it
happen
4. We as managers must
continuously improve everyday

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5: Empowering Others to Act on the Vision
1. The guiding coalition empowers
others to take action simply by
communicating the new direction
2. Organizational structure can
undermine efforts to increase
productivity
3. At first no organization has
momentum, power or time to get rid
of all the obstacles, but action is
essential
1. Define an organization that will
empower others to share the goal
2. Redefine the organization around
our Balanced Scorecard
3. Address these obstacles directly
with the force of personality and
process improvements

8. © 2002 CH2M HILL Communications Group
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6: Planning For And Creating Short Term Wins
1. Real transformation takes time and
this effort risks losing momentum if
there are no short term goals to
meet and celebrate
2. Creating short term wins is different
from hoping for short term wins
3. The pressure for short term wins is
a useful element for change
1. Identify our short term wins on a
quarterly basis
2. Have a clear plan for celebrating
these wins
3. Get commitments from everyone
for these wins, and reward them
accordingly

9. © 2002 CH2M HILL Communications Group
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7: Consolidating Improvements and Producing Still More Change
1. Managers may be tempted to
declare victory with the first
performance improvement
2. Instead leaders use credibility
gained from shirt term wins to go
after bigger problems
3. Renewal takes years not months
1. Identify what our short term wins
are and use them to build credibility
2. Identify the bigger problems that
can be addressed with the short
term wins
3. Lay out the end to end strategy for
renewal

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8: Institutionalizing New Approaches
1. Change sticks when it becomes
“the way we do things”
2. Two important factors:
w Make a conscious attempt to
show people how the new
approach has improved
performance
w Take sufficient time to make sure
everyone “personifies” the new
approach
1. Once integrated we can spread this
process, since “we” is the norm,
rather than “we” and “them”
2. We need a plan for these specific
actions

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Measuring our Progress
l Project estimation and planning
l Project performance tracking
l Project trade off analysis
l Resource management
Project
Management
l Process improvement
l Project planning guidelines
l Performance based guidelines
l Organizational norms and benchmarks
Organizational
Management
l Performance Measurement
l Normative performance baselines
l Technical and business policies
l Investment decisions and analysis
Enterprise
Management

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Transition Issues
l Organization Chart
4Structure to match our goals rather than replicate what we’ve got now.
4Organized along “teams”
4Focused on “managing” the work as well as “doing” the work
4Create an “agile” organization
4XP-like, SCRUM-like development
4Drop the high ceremony CMM structure and adapt the agile aspects of
CMM
4Embed SQA in development
4Discover how to have an agile org inside CMM Level III/IV
4Redo the SOP to support “agile” processes

13. © 2002 CH2M HILL Communications Group
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Transition Issues
l Communication
4Continuous engagement with the organization
4Connect communication with the Balanced Scorecard metrics
l Goals Focus
4BSC objectives
4Make these immediately executable
4Assign goals to individuals in March
4Objectives from “Culture Change”
4Org chart
4SOP quality
4“Everyone is a Project Manager”
4Before becoming a “doer” you must know what to do, why you’re doing
it, and how “done” is measured.