Beyond change management dean anderson pdf

MISSION STATEMENT

The books in this series are intended to be cutting-edge, state-of-the-art, and

innovative approaches to participative change in organizational settings. They

are written for, and written by, organization development (OD) practitioners

interested in new approaches to facilitating participative change. They are

geared to providing both theory and advice on practical application.

SERIES EDITORS

William J. Rothwell

Roland Sullivan

Kristine Quade

EDITORIAL BOARD

David Bradford

W. Warner Burke

Edie Seashore

Robert Tannenbaum

Christopher Worley

Shaolin Zhang

The Change Agent Series

for Groups and Organizations

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Beyond Change

Management

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A d v a n c e d S t r a t e g i e s

f o r T o d a y ’ s

T r a n s f o r m a t i o n a l L e a d e r s

Dean Anderson

Linda S. Ackerman Anderson

Beyond Change

Management

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Printed in the United States of America. Published by

This book is printed on acid-free, recycled stock that meets or exceeds the minimum GPO and EPA requirements for recycled paper.

Printing 10 9 8 7 6 5 4 3 2 1

Copyright © 2001 by Dean Anderson and Linda Ackerman Anderson ISBN: 0-7879-5645-7

Library of Congress Cataloging-in-Publication Data

Anderson, Dean, 1953- Beyond change management : advanced strategies for today’s

transformational leaders / Dean Anderson, Linda S. Ackerman Anderson.

p. cm.—(The Practicing organization development series) ISBN 0-7879-5645-7 1. Leadership. 2. Organizational change. I. Ackerman Anderson, Linda S., 1950- II. Title. III. Series. HD57.7 .D522 2001 658.4’063—dc21

00-011970

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permit- ted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written per- mission of the Publisher or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4744. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012, (212) 850-6011, fax (212) 850-6008, e-mail: permreq@wiley.com.

Page 109. Reprinted with permission of the publisher. From Leadership and the New Science, copyright © 1994 by Meg Weatley, Berrett-Koehler Publishers, Inc., San Francisco, CA. All rights reserved. 1-800-929-2929.

Acquiring Editor: Matthew Holt Director of Development: Kathleen Dolan Davies Developmental Editor: Susan Rachmeler Editor: Rebecca Taff

Senior Production Editor: Dawn Kilgore Manufacturing Manager: Becky Carreño Interior and Cover Design: Bruce Lundquist Illustrations: Richard Sheppard

Jossey-Bass/Pfeiffer is a registered trademark of Jossey-Bass Inc., A Wiley Company.

The exhibits in this publication (except those for which reprint permission must be obtained from the primary sources) may be freely reproduced for educational/training activities. There is no requirement to obtain special permission for such uses. We do, however, ask that the following statement appear on all reproductions: Beyond Change Management by Dean Anderson and Linda Ackerman Anderson Copyright © 2001 by Jossey-Bass/Pfeiffer, San Francisco, CA. This permission statement is limited to the reproduction of material for educational/training events. Systematic or large-scale reproduction or distribution (more than one hundred copies per year)—or inclusion of items in publications for sale—may be done only with prior written permission. Also, reproduction on computer disk or by any other electronic means requires prior written permission.

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vii

List of Tables, Figures, and Exhibits xi

Foreword to the Series xiii

Introduction to the Series xv

Statement of the Board xix

Dedication xxiv

Preface xxv

Acknowledgments xxix

Introduction 1

Section One A Call for Conscious Transformation

1. The Drivers of Change 15 The Drivers of Change 16

The Evolution of Change and the Required Expansion of Leadership Awareness and Attention 22

Summary 30

Contents

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2. Three Types of Organization Change 31 Developmental Change 34

Transitional Change 35

Transformational Change 39

Determining the Type of Change Taking Place 47

Summary 50

3. Two Leadership Approaches to Transformation 51 Two Approaches to Transformation 52

Wake-Up Calls for Transformation 57

Do You Operate Consciously or Reactively? 73

Summary 73

Section Two Mindset: The Leverage Point for Transformation

4. The Role and Impact of Mindset 77 What Is Mindset? 80

Way of Being 82

The Impact of Mindset on Perception 83

The Impact of Mindset on State of Being 84

The Fundamental Law of Success 87

Self Mastery 88

Awareness: The Foundation of Self Mastery 94

From Victim to Full Contributor 96

Walking the Talk of Change 97

Culture and Mindset 98

Summary 101

5. Fundamental Assumptions About Reality 103 Our Assumptions About Assumptions 105

Take This Chapter to Heart 106

viii Contents

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The Source of Your Fundamental Assumptions About Reality 107

A New Set of Assumptions About Reality 109

The Great Chain of Being 110

Four Cornerstones of the Industrial Mindset 112

Four Cornerstones of the Emerging Mindset 115

Comparing the Two Mindsets 117

The Ten Principles of Conscious Transformation 121

Applying These Principles 129

Summary 131

Section Three A Process Orientation for Leading Transformation

6. Conscious Process Thinking 135 Differentiating Among Uses of the Word “Process” 136

Our Definition of Process 137

The Different Levels of Process 138

Three Thinking Orientations 141

Tools of the Thinking Orientations 147

The Impact of Change Leadership Styles on Process Design and Facilitation 150

Summary 155

7. Change Process Models 159 Change Process Methodologies 160

Change Frameworks vs. Change Process Models 161

The Change Process Model As a Thinking Discipline 164

Transformation As a Fullstream Process 165

The Nine-Phase Change Process Model 168

There Is No Cookbook for Transformation! 174

Comparing Your Experience with Other Change Models 174

Summary 178

ixContents

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Section Four Conscious Transformational Leadership

8. Developing Conscious Change Leaders 181 The Evolution of the Leader’s Role 181

Arenas for Development 187

A Curriculum for Developing Conscious Change Leaders 191

Summary 196

9. The Leadership Choice to Transform 199 Summary 203

Appendix: Development Arenas for Conscious Change Leaders 205

Bibliography 209

About the Authors 219

About the Editors 223

Index 227

x Finding Your Way in the Consulting Jungle

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xi

List of Tables, Figures,

and Exhibits

Figure 1.1 The Drivers of Change Model 17

Exhibit 1.1 What Is Driving Your Organization’s Change? 23

Figure 2.1 Three Types of Organization Change 32

Table 2.1 Matrix of the Three Types of Organization Change 33

Figure 2.2 Learning and Course Correction Model of Transformational Change 44

Exhibit 2.1 Determining the Type of Change Required 48

Figure 3.1 Competency Model 56

Figure 3.2 Levels of Wake-Up Calls for Transformation 58

Figure 3.3 Twenty-One Dimensions of Conscious Transformation 66

Exhibit 3.1 Worksheet to Assess How the Twenty-One Dimensions Affect Your Organization 70

Figure 4.1 Mindset: The Leverage Point for Transformation 79

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Figure 4.2 The Seamless Connection Between Mindset and Reality 83

Figure 4.3 Reticular Activating System 85

Table 4.1 Fundamental Law of Success 87

Figure 4.4 The Self Mastery Model 89

Exhibit 4.1 Assessing Your Way of Being 95

Table 5.1 Comparison of the Industrial and Emerging Mindsets 117

Exhibit 5.1 Applying the Operating Principles for Conscious Transformation 130

Figure 6.1 Continuum of Change Leadership Styles 151

Exhibit 6.1 Assessing Your Change Leadership Style 156

Figure 7.1 McKinsey’s 7-S Framework 162

Figure 7.2 Fullstream Transformation Model 165

Figure 7.3 The Nine-Phase Change Process Model for Leading Conscious Transformation 169

Figure 7.4 The Change Process Model in Action 171

Figure 7.5 The Change Process Model As a Fullstream Process 172

Figure 7.6 Change Process Model—Activity Level 173

Exhibit 7.1 Comparing Other Change Models with the Change Process Model 175

Figure 8.1 Evolution of the Leader’s Role 183

Figure 8.2 Growth Required of Change Leaders 187

Figure 8.3 Development Areas for Conscious Transformational Leaders 188

Exhibit 8.1 Template for Building a Change Strategy 195

xii List of Tables, Figures, and Exhibits

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xiii

�N 1967, Warren Bennis, Ed Schein, and I were faculty members of the Sloan School of Management at MIT. We decided to produce a series of paper- back books that collectively would describe the state of the field of organization development (OD). Organization development as a field had been named by myself and several others from our pioneer change effort at General Mills in Minneapo- lis, Minnesota, some ten years earlier.

Today I define OD as “a systemic and systematic change effort, using behav- ioral science knowledge and skill, to transform the organization to a new state.”

In any case, several books and many articles had been written, but there was no consensus on whether OD was a field of practice, an area of study, or a profession. We had not even established OD as a theory or even as a practice.

We decided that there was a need for something that would describe the state of OD. Our intention was to each write a book and also to recruit three other au- thors. After some searching, we found a young editor who had just joined the small publishing house of Addison-Wesley. We made contact, and the series was

Foreword to the Series

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born. Our audience was to be human resource professionals who spent their time consulting with managers in their development through various small-group ac- tivities, such as team building. More than thirty books have been published in that series, and the series has had a life of its own. We just celebrated its thirtieth anniversary.

At last year’s National OD Network Conference, I said that it was time for the OD profession to change and transform itself. Is that not what we change agents tell our clients to do? This new Jossey-Bass/Pfeiffer series will do just that. It can be seen as:

• A documentation of the re-invention of OD;

• An effort that will take us to the next level; and

• A practical effort to transfer to the world the theory and practice of lead- ing-edge practitioners and theorists.

The books in this new series will thus prove to be valuable resources for change agents to keep current with the new and leading-edge ideas and practices.

May this very exciting change agent series be most creative and innovative. May it give our field a renewed burst of energy and awareness.

Richard Beckhard Written on Labor Day weekend 1999 from my summer cabin near Bethel, Maine

xiv Foreword to the Series

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“We must become the change we want to see.”

—Mahatma Gandhi

“We live in a moment of history where change is so speeded up that we

begin to see the present only when it is already disappearing.”

—R. D. Laing

�E CAN EXPECT MORE CHANGE to occur in our lifetimes than has occurred since the beginning of civilization over ten thousand years ago. Practicing Organization Development: The Change Agent Series for Groups and Organizations is a new series of books being launched to help those who must cope with or create change in organizational settings. That includes almost everyone.

The Current State of Organization Development Our view of OD in this series is an optimistic one. We believe that OD is gaining favor as decision makers realize that a balance must be struck between the drivers of change and the people involved in it and affected by it. Although OD does have

xv

Introduction to the Series

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its disadvantages at a time characterized by quantum leap change, it remains prefer- able to such alternative approaches to change as coercion, persuasion, leadership change, and debate.1 Organization development practitioners are reinventing their approaches, based on certain foundational roots of the field, in combination with emerging principles to ensure that OD will increasingly be recognized as a viable, important, and inherently participative approach to help people in organizations facilitate, anticipate, and manage change.

A Brief History of the Genesis of the OD Series A few years ago, and as a direct result of the success of Practicing Organization Devel- opment: A Guide for Practitioners by Rothwell, Sullivan, and McLean, the publisher— feeling that OD was experiencing a rebirth of interest in the United States and in other nations—wanted to launch a new OD series. The goal of this new series was not to replace, or even compete directly with, the well-established Addison-Wesley OD Series (edited by Edgar Schein). Instead, as the editors saw it, this series would provide a means by which the most promising authors in OD whose voices had not previously been heard could share their ideas. The publisher enlisted the support of Bill Rothwell, Roland Sullivan, and Kristine Quade to turn the dream of a series into a reality.

This series was long in the making. After sharing many discussions with the publisher and circulating among themselves several draft descriptions of the series editorial guidelines, the editors were guests of Bob Tannenbaum, one of the field’s founders, in Carmel, California, in February 1999 to discuss the series with a group of well-known OD practitioners interested in authoring books. Several especially supportive publisher representatives, including Matt Holt and Josh Blatter, were also present at that weekend-long meeting. It was an opportunity for diverse OD practitioners, representing many philosophical viewpoints, to come together to share their vision for a new book series. In a sense, this series represents an OD inter- vention in the OD field in that it is geared to bringing change to the field most closely associated with change management and facilitation.

xvi Introduction to the Series

1W. Rothwell, R. Sullivan, & G. McLean. (1995). Introduction (pp. 3–46). In W. Rothwell, R. Sullivan, & G. McLean, Practicing Organization Development: A Guide for Consultants. San Francisco, CA: Jossey-Bass/ Pfeiffer.

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What Distinguishes the Books in this Series The books in this series are meant to be cutting-edge and state-of-the-art in their approach to OD. The goal of the series is to provide an outlet for proven authori- ties in OD who have not put their ideas into print or for up-and-coming writers in OD who have new, sometimes unorthodox, approaches that are stimulating and exciting. Some of the books in this series describe inspirational concepts that can lead to actionable change and purvey ideas so new that they are not fully developed.

Unique to this series is the cutting-edge emphasis, the immediate applicability, and the ease of transferability of the concepts. The aim of this series is nothing less than to reinvent, re-energize, and reinvigorate OD. In each book, we have also recommended that the author(s) provide:

• A research base of some kind, meaning new information derived from prac- tice and/or systematic investigation and

• Practical tools, worksheets, case studies and other ready-to-go approaches that help the authors drag “theory” to “practice” to make these new, cutting- edge approaches more concrete.

Subject Matter That Will (and Will Not) Be Covered The books in this series are varied in their approach, but they are united by their focus. All share an emphasis on organization development (OD). Hence, books in this series are about participative change efforts. They are not about such other popular topics as leadership, management development, consulting, group dynamics—unless those topics are treated in new, cutting-edge ways and are geared to OD practitioners.

This Book Beyond Change Management wakes leaders and consultants up to what it actually takes to lead and consult to transformational change successfully.

This book highlights the missing ingredients in current change management practices and reveals the neglected people and process dynamics that so often cause failure in change. In compelling fashion, the book demonstrates the requirement that leaders become much more conscious of these unseen dynamics, which enables them to create an integrated, process-oriented, change strategy. The book introduces the new change leadership competency of process thinking and spotlights leader

xviiIntroduction to the Series

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and employee mindset change as a key driver of successful transformation. Beyond Change Management sets the conceptual stage for the pragmatic guidance offered in the authors’ companion book in this series, The Change Leader’s Roadmap.

Series Website For further information and resources about the books in this series and about the current and future practice of organization development, we encourage readers to visit the series website at www.PracticingOD.com.

William J. Rothwell University Park, PA

Roland Sullivan Deephaven, MN

Kristine Quade Minnetonka, MN

xviii Introduction to the Series

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�T IS OUR PLEASURE TO PARTICIPATE in and influence the start up of Practicing Organization Development: The Change Agent Series for Groups and Orga- nizations. The purpose of the series is to stimulate the profession and influence how OD is defined and practiced. This statement is intended to set the context for the series by addressing three important questions: (1) What is OD? (2) Is the OD pro- fession at a crossroads? and (3) What is the purpose of this series?

What Is Organization Development? We offer the following definition of OD to stimulate debate:

Organization development is a system-wide and values-based col- laborative process of applying behavioral science knowledge to the adaptive development, improvement, and reinforcement of such orga- nizational features as the strategies, structures, processes, people, and cultures that lead to organization effectiveness.

xix

Statement of the Board

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The definition suggests that OD can be understood in terms of its several foci: First, OD is a system-wide process. It works with whole systems. In the past, the

bias has been toward working at the individual and group levels. More recently, the focus has shifted to organizations and multi-organization systems. We support that trend in general but honor and acknowledge the fact that the traditional focus on smaller systems is both legitimate and necessary.

Second, OD is values-based. Traditionally, OD has attempted to distinguish itself from other forms of planned change and applied behavioral science by promot- ing a set of humanistic values and by emphasizing the importance of personal growth as a key to its practice. Today, that focus is blurred and there is much debate about the value base underlying the practice of OD. We support a more formal and direct conversation about what these values are and how the field is related to them.

Third, OD is collaborative. Our first value commitment as OD practitioners is to bring about an inclusive, diverse workforce with a focus of integrating differences into a world-wide culture mentality.

Fourth, OD is based on behavioral science knowledge. Organization development should incorporate and apply knowledge from sociology, psychology, anthropol- ogy, technology, and economics toward the end of making systems more effec- tive. We support the continued emphasis in OD on behavioral science knowledge and believe that OD practitioners should be widely read and comfortable with sev- eral of the disciplines.

Fifth, OD is concerned with the adaptive development, improvement, and reinforcement of strategies, structures, processes, people, culture, and other features of organizational life. This statement not only describes the organizational elements that are the target of change, but also describes the process by which effectiveness is increased. That is, OD works in a variety of areas, and it is focused on improving these areas. We believe that such a statement of process and content strongly implies that a key fea- ture of OD is the transference of knowledge and skill to the system so that it is more able to handle and manage change in the future.

Sixth and finally, OD is about improving organization effectiveness. It is not just about making people happy; it is also concerned with meeting financial goals, improving productivity, and addressing stakeholder satisfaction. We believe that OD’s future is closely tied to the incorporation of this value in its purpose and the demonstra- tion of this objective in its practice.

xx Statement of the Board

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Is the OD Profession at a Crossroads? For years, OD professionals have said that OD is at a crossroads. From our per- spective at the beginning of the new millennium, the field of organization devel- opment can be characterized by the following statements:

1. Practitioners today are torn. The professional organizations representing OD practitioners, including the OD Network, the OD Institute, the International OD Association, and the Academy of Management’s OD and Change Divi- sion, are experiencing tremendous uncertainties in their purposes, practices, and relationships.

2. There are increasing calls for regulation/certification.

3. Many respected practitioners have suggested that people who profess to manage change are behind those who are creating it. Organization devel- opment practitioners should lead through influence rather than follow the lead of those who are sometimes coercive in their approach to change.

4. The field is defined by techniques.

5. The values that guide the field are unclear and ill-defined.

6. Too many people are practicing OD without any training in the field.

7. Practitioners are having difficulty figuring out how to market their services.

The situation suggests the following provocative questions:

• How can OD practitioners help formulate strategy, shape the strategy devel- opment process, contribute to the content of strategy, and drive how strat- egy will be implemented?

• How can OD practitioners encourage an open examination of the ways orga- nizations are conceived and managed?

• How can OD focus on the drivers of change external to individuals, such as the external environment, business strategy, organization change, and cul- ture change, as well as on the drivers of change internal to individuals, such as individual interpretations of culture, behavior, style, and mindset?

• How much should OD be part of the competencies of all leaders and how much should it be the sole domain of professionally trained, career-oriented OD practitioners?

xxiStatement of the Board

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What Is the Purpose of This Series? This series is intended to provide current thinking about OD as a field and to provide practical approaches based on sound theory and research. It is targeted for full-time external or internal OD practitioners; top executives in charge of enterprise-wide change; and managers, HR practitioners, training and development professionals, and others who have responsibility for change in organizational and trans-organizational settings. At the same time, these books will be directed toward cutting-edge thinking and state-of-the-art approaches. In some cases, the ideas, approaches, or techniques described are still evolving, so the books are intended to open up dialogue.

We know that the books in this series will provide a leading forum for thought- provoking dialogue within the OD field.

About the Board Members David Bradford is senior lecturer in organizational behavior at the Gradu-

ate School of Business, Stanford University, Palo Alto, California. He is co-author (with Allan R. Cohen) of Managing for Excellence, Influence Without Authority, and POWER UP: Transforming Organizations Through Shared Leadership.

W. Warner Burke is professor of psychology and education and chair of the Department of Organization and Leadership at Teachers College, Columbia Uni- versity, New York, New York. His most recent publication is Business Profiles of Climate Shifts: Profiles of Change Makers, (with William Trahant and Richard Koonce).

Edith Whitfield Seashore is organization consultant and co-founder (with Morley Segal) of AUNTL Masters Program in Organization Development. She is co-author of What Did You Say? and The Art of Giving and Receiving Feedback and co-editor of The Promise of Diversity.

Robert Tannenbaum is emeritus professor of development of human sys- tems, Graduate School of Management, University of California, Los Angeles; recip- ient of Lifetime Achievement Award by the National OD Network. He has published numerous books, including Human Systems Development with Newton Margulies and Fred Massarik.

xxii Statement of the Board

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Christopher G. Worley is director, MSOD Program, Pepperdine Univer- sity, Malibu, California. He is co-author of Organization Development and Change (7th ed.), with Tom Cummings, and of Integrated Strategic Change, with David Hitchin and Walter Ross.

Shaolin Zhang is senior manager of organization development for Motorola (China) Electronics Ltd. He received his master’s degree in American Studies from Beijing Foreign Studies University, Beijing, China, and holds a Ph.D. in sociology from York University, Toronto, Canada.

xxiiiStatement of the Board

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To Terra—for being the loving

inspiration in both of our lives

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�UR LIFE'S WORK HAS ALWAYS BEEN ABOUT CHANGE, Dean’s about personal change and Linda’s about organization change. In 1986, when we met, it became clear that our two professional specialties were meant to be merged into one unified approach to transforming organizations.

Dean was one of the first people doing personal mastery work in organizations, having created the Optimal Performance Institute to offer his approach to break- through performance (originally developed for world-class athletes) to people in business. Linda was one of the founding leaders of the Organization Transforma- tion movement, focusing on teaching the process of organization change and trans- formational leadership to executives and consultants worldwide. At the time of our meeting, Dean had realized that his personal and team performance models had to align with the complexities of larger organizational systems, while Linda had rec- ognized that her work required more overt emphasis on personal and cultural change to fortify her large systems work.

In 1988, we brought our specialties, insights, and theories together to create our approach to leading conscious transformation and to form Being First, Inc.

xxv

Preface

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For fourteen years, we have mentored and coached one another in our individual specialties, and we now stand as peers in both arenas—personal and organizational change.

Individually, and then collectively at Being First, we have always considered ourselves thought leaders in the field of organization change. We have helped define the field of Organization Transformation and are committed to pushing the enve- lope of thinking and practice for accomplishing tangible, transformational results. We created Being First—appropriately named for our bias toward the personal work required to transform individuals and organizations—to offer our thinking and advice to people and large systems around the world.

Today, Being First, Inc., is a full-service change education, consulting, and change leadership development firm assisting organizations to design and accomplish their transformations while building their internal capacity for continuous change. We pro- vide enterprise-wide breakthrough training for culture and mindset change, personal transformation training, change strategy consulting, change leadership skill devel- opment for leaders and consultants, licensing of our Change Process Methodology, coaching, and transformational team development. We offer consulting guidance, consultant support, and application tools to design and implement transforma- tional change consciously. We are also developing a curriculum for women exec- utives called “Women As Leaders of Change.”

Our style, based on our commitment to walk our own talk, is to co-create a personalized strategy for each client with the appropriate balance of consulting and training, combining both change for the individual employee and change for the system as a whole. We are devoted to our own continuous learning through true partnership with our clients. We hope this way of working is evident in what we offer in this book.

Our work in organizations continues to provide us the opportunity to develop, field test, and write about what we believe is required to transform human systems successfully and consciously. Through our practice, as well as in the current man- agement literature, it has become clear that several essential messages and com- petencies are missing from the field. These need to be given voice. Some are about how leaders lead profound change in their organizations. Some concern consultants and their approaches or ability to influence their clients as change leaders. We deeply believe that leaders and consultants need to hear these messages and develop these competencies in order to transform their organizations to stay in sync with their rapidly changing environments. We have attempted to articulate clearly both the