Effective Change Implementation with the Systemic Organizational Simulation

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EISAM: 9th Colloquium on Organizational Change & Development

Effective Change Implementation with

the Systemic Organizational Simulation

What is the case for action?

• Organizations are now facing their increasing environmental complexity with the

development of cross-functional structures overlaying the existing functional

hierarchies. They strive to gain better governance for end2end processes (e.g. with process & project management frameworks like ITIL or CoBit 5, ...).

• In order to cope with these challenges in change consulting, new change tools must be developed which are practical and hands on but also based on a reliable theoretical framework like the systemic theory.

• As change practitioners we are presenting the outlines of our conceptual framework • As change practitioners we are presenting the outlines of our conceptual framework

and its implications on our understanding and the usage of change tools. In this

presentation we are focusing on the systemic organizational simulation or as we call it in the business context: The Process Simulation.

Basic re-alignment with

simultaneous change on several levels (strategy, structure,

processes, ..).

Acquiring change “fitness”. Retention of existing strategies and norms, no change in

Four ways of planned change

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and norms, no change in organizational culture. First steps towards specific change within the system.

Permanent and continuous evolution.

Unconscious interventions into evolutionary dynamics (variation and selection).

permanent

occasional

Dimensions of structuring change

Luhmann originally differentiated between social, temporal, and functional dimensions as the sensory dimensions of social systems (Luhmann, 1984). In practical terms, this

differentiation between the three dimensions is very helpful for change consulting.

The structural challenges which are linked with change management can be searched for by the consultant together with the client as with a radar, in order to generate indications of the currently relevant or suppressed questions in the change progress. Change

consulting oscillates in this third mode of structuring change around the three dimensions and their respective relevant issues and structuring fields.

Change consulting can support these and use their qualitative benefits by …

• … integrating all relevant dynamics of organizational change into the three dimensions (temporal, social, functional) and making current and future effects of the change more visible to the leadership function and thereby making the process more manageable, • … helping the responsible executives to avoid blind spots

Dimensions of effectivity

Choreography of

the step-by-step process

Creative leadership of the communication and cooperative dynamics Social dimension Temporal dimension Change management www.osb-i.com 04.07.2013 5 Content design of organizational areas Change consulting Functional dimension management

The functional dimension

How is the “What for” of a change project defined?

The functional dimension is content and subject-matter-related. It is concerned with the design of the organizationally necessary developments.

• What is the business case? How is the “What for” of a change project, its interpretation as per the strategic orientation, defined?

• What “existential” problem is supposed to be solved with the change project? • Which aspects of the organizational activities are particularly affected? (tasks,

organizational design, processes, role profiles …)

• What follow-up and reciprocal effects can be expected at the IT level? How can the • What follow-up and reciprocal effects can be expected at the IT level? How can the

persons responsible appropriately consider the IT dimension?

• What vision of the future is it worth working toward jointly? What threat scenarios are conceivable?

• What fundamental change movements (from …, to …) are desired and what concrete changes will result from them at the different levels?

• How can organizational efficiency be maintained during the change?

• How must the leadership and decision-making model be adapted to the desired changes?

The social dimension

The „How“ of involvement and communication?

The social dimension was the primary perspective of classic organizational development for a long time. Every initiative for change, of course, is also a social intervention.

• What are the interests of the main internal and external stakeholders? Which are the consequences regarding the dynamics of change acceptance – and communication?

• How can appropriate participation be organized to ensure a buy-in of the effected managers and employees? How can a good balance between requirements from top management and involvement of the other hierarchical levels be reached?

• How can leadership coalitions be build up and supported that are convinced both on a rational level and on a emotional level to empower the change initiatives?

www.osb-i.com 13.09.2014 rational level and on a emotional level to empower the change initiatives?

• How to set up communication for supporting productive dispute on change issues?

• How could the horizontal and vertical networks be taken into account to support the change?

• How could feedback-loops be integrated into change architecture which are useful to identify hindering communication and collaboration pattern and make the responsible managers aware for the effects?

• How can change - anxiety be managed?

• How to manage a lacking credibility of the top management level?

• How can management ensure process-security for their employees and be the lighthouse for orientation?

The temporal dimension

The „When“ – the temporal rhythm of change.

Organizations are now increasingly finding themselves in a state of “permanent alarm” but even here, any notion of controllability would be an illusion. The gas pedal and the brakes never respond directly in change management. Change structuring in the

temporal dimension must bring the past of one’s own organization – the “having been” – into a relationship with the present, and especially with the future, in an appropriate manner.

• How to design a flexible process architecture, that fits to the market dynamics, the organization is facing and provides enough room for evolutionary development within the change?

the change?

• How to safeguard the risk of change fatigue in the affected units?

• How to handle the tension between short- and long - term change goals?

• How to make change progress and target achievement observable? How to implement the fitting feedback loops (designing the sequence of action and reflection)?

• How to handle the different speed of technical (IT-) possibilities and organizational capacities?

• How to gain quick wins?

• Lessons learned: What can be transferred from former organizational changes? What has to be unlearned?

Process simulation as a change tool

The systemic organizational simulation provides an observation and reflection

setting which integrates all the three dimensions in a creative and exemplary

way and is therefore a powerful tool in change processes:

•

A future new process is enacted in the „here-and-now“ present.

Corresponding changes are simulated on a “rehearsal stage”.

•

Staff and executives observe and experience the process „firsthand“.

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•

Consultants observe the actors and executives in their interactions, decision

processes and decision making and give feedback on the observed patterns

to generate insights in process participants.

Process simulation thus is a major tool for self observation of the entire

organization.

The effect of intended, purposeful change may be assessed.

The integration of new practices into the organization will be facilitated.

The organization creates new decision options.

Success criteria

Objectives

•

To put a process through the „acid test“

•

Simulations are not about perfection or the question of „righ“ or „wrong“.

•

Realizing that the simulation is a start, the simulation marks a beginning

and sets the scene for continuous process reflection.

When is a process simulation successful?

•

All process participants share a clear picture of the everyday sustainability

•

All process participants share a clear picture of the everyday sustainability

of the process OR of remedial actions to ensure that sustainability.

•

Role responsibilities and enactment as well as the dynamics and interplay

of roles is understood by all concerned OR process stakeholders have an

idea of what is necessary to reach that understanding.

General parameters for a process simulation

• Participants: Max. 40 people: all process participants, all relevant executives • Topic: Process or process cluster

• Preparation and Implementation: Selecting potential participants, writing a script, identifying business „incidents“

• Participant Roles: Future process participants, representatives from interfaces, observers, customers and collaboration partners, management representatives • Duration: 3-5 hours

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• Outcome: Shared experience with the future process, close to every-day

implementation with regard to role clarity, potential sources of conflict, feasibility of interfaces, impact on the organization, etc.

Process roles (Example)

• Tasks: Resolves conflicts with organizational environment, checks for strategic relevance.

Process Owner

• Tasks: Provides KPIs, evaluates incoming results. Process Manager (provides business impulses):

• Tasks: Leads process implementation, responsible for quality of results. Process Consultant (temporary role)

• Tasks: Documents process sequence, responsible for quality assurance, disseminates innovations.

Simulation agenda

(1) Introduction to method and procedure (2) Distribution of roles, including

− process sponsor − process owner − process manager − process consultant (3) Simulation runs www.osb-i.com − several business incidents

− feedback after each run (4) Collecting observations

(5) Conclusions & recommendations

Simulation setting

Simulation principles

(1)

Pretend that you are engaged in „the real thing“

(2)

Think aloud

(3)

Make deliberations and decisions transparent

(4)

Explain why you are doing what you are doing

(5)

Try to stay in your role as much as possible

(6)

Helicopter view: avoid too much detail

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(6)

Helicopter view: avoid too much detail

(7)

Mishaps, glitches and malfunctions are welcome (and useful)!

Observation guidelines

Obstacles & glitches

•

Where does the process get stuck?

•

Where could potential problems arise (decision making, roles, tasks)?

Interfaces

•

Have all interfaces been considered and accounted for,

or are there any loose ends?

or are there any loose ends?

Objectives

•

Does the process fullfil its purpose? (Currentness and quality of parameters)

Open questions

•

What was forgotten / not addressed?

Conclusion

The systemic organizational simulation / process simulation is an innovative opportunity to

experience the future organizational processes. The newly assigned owners of various

roles will learn, how their role will change their daily work and what will happen if unplanned changes occur. Organizational learning is addressed on the three dimensions of effective implementation:

• Temporal dimension: Will there be gaps in future decision-making? What kind of

confusions between the process and the divisions could be expected? How will the intended processes effect the organization? How will the workload change when the process is implemented?

www.osb-i.com process is implemented?

• Functional dimension: Were all relevant aspects considered when designing the target

process? How much time will each single process step require in reality? Will the objectives and output of the process be met?

• Social dimension: Which cultural or communication patterns are observable and how do

they support the scheme?

Each simulation provides a reality-check with a high quality of immediate personal

experience for the participants, strong relevance for process performance, and valuable insights into the pattern of the organization.

List of literature

• Luhmann, N. (1984): Soziale Systeme, Frankfurt am Main.

• Luhmann, N. (2000): Organisation und Entscheidung, Wiesbaden (Westdeutscher Verlag).

• Schweikert, M. & Kühne, H.: The tide is high – Professionalisierung der IT-Services für den Hamburger Hafen, in Wimmer, R., Lieckweg, T. & Glatzel, K. (Hrsg.), Beratung im dritten Modus - Die Kunst, Komplexität zu nutzen, S. 173-186, Carl-Auer Verlag, 2014. • Von der Reith, F. & Lohmer, M.: Systemisches Change – Management: Dimensionen

der Wirksamkeit, in Wimmer, R., Lieckweg, T. & Glatzel, K. (Hrsg.), Beratung im dritten der Wirksamkeit, in Wimmer, R., Lieckweg, T. & Glatzel, K. (Hrsg.), Beratung im dritten Modus - Die Kunst, Komplexität zu nutzen, S. 148-173, Carl-Auer Verlag, 2014.

• Von der Reith, F. & Wimmer, R.: Organisationsentwicklung und Change Management, in Wimmer, R.; Meissner, J. & Wolf, P. (Hrsg.): Praktische Organisationswissenschaft, Carl Auer 2014.