Motivating Staff During Innovative Change Beat the Pain/Reap the Gain

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1 Motivating Staff During Innovative Change Beat the Pain/Reap the Gain Senate Productivity and Quality Award for Virginia Forum for Excellence Sept 11, 2012 Presented by: Demetrius Wilson, TSI and Martin Leppitsch, TSI

2 Results Through Innovation

3 Today's Objectives Explore management of the emotional aspects of innovation deployment to achieve results Present a 3 step approach to managing employee resistance as the foundation for enhancing motivation during innovation deployment 1. Enhance Understanding of Resistance 2. Develop Solutions to Address Causes of Resistance 3. Implement Solutions within Appropriate Systematic Change Management Framework

4 Overview The Gains and Pains of Innovation Leadership Mistakes and Innovation Failure What Has Been Your Experience Employee Resistance - Root Causes and Patterns Solutions to Reduce Resistance Implementation Within a Change Framework Summary/Take-aways

5 Innovation The Gain! Breakthrough changes to approach - new idea, technology, or business model Improved products, processes, and organizational effectiveness New value for stakeholders Significant increase in Baldrige Award process item scoring Innovation distinguishes between a leader and a follower Steve Jobs

6 Innovation The Pain! Inherent to Innovation Deployment Risk Disruption Disagreement Uncertaintity Mistakes Required Selflessness Hard Work!! OUCH! Genius is one percent inspiration and 99% perspiration. Thomas Edison

7 Leadership Mistakes and Innovation Failure Overconfident in the power of the idea and functional approach to overcome pain points Underestimate level of effort required by workforce to deploy innovation Underestimate impact of pain on employee's motivation to perform deployment tasks Impact: Changes motivation to resistance Significant factor in organization's failure to fully realize results of innovation Approximately 70% of all innovation initiatives are not completely deployed or do not achieve expected results.

8 3 Step Approach to Manage Employee Resistance Step 1: Enhance Understanding of Resistance

9 Causes of Resistance Difference of opinion based on experience. Opposed to outside ideas. Ulterior or political motives. Managers uncomfortable managing change. Failed innovation experiences in the past. What will happen to me? Requires significant additional time commitment; unwanted workload. Innovation initiative takes dollars away from other program. Managers uncomfortable managing change. Unwanted attention and evaluation. Dollars not allocated to innovation initiative. No training programs in place; no training provided.

10 Root Causes of Resistance FEAR & SKEPTICISM Motivation What will happen to me? Difference of opinion based on experience Failed innovation experiences in the past Opposes outside ideas Ulterior or political motives Unwanted attention and evaluation TIME & RESOURCE CONSTRAINTS Capacity Requires significant additional time commitment; unwanted workload TIME & RESOURCE CONSTRAINTS Dollars not allocated to innovation Capacity initiative Innovation initiative takes dollars away from other program INADEQUATE SKILL & TRAINING Capability Requires skills not traditionally part of INADEQUATE the job SKILL & TRAINING No training programs Capabilityin place; no training provided Managers uncomfortable managing change

11 Resistance Natural to Innovation RESISTANCE ACCEPTANCE

12 Natural Responses to Change Innovators Happy Campers who are change friendly (Navigators) Conservatives Fence Sitters (Victims and Bystanders) Inhibitors Fear Mongers who cause confusion and delay (Critics and Resistors)

13 Natural Response to Change The Rule For 1000 People 200 People 500 People 300 People 20% 50% 30% Innovators Conservatives Inhibitors Price Pritchett - Resistance: Moving Beyond the Barriers to Change

14 3 Step Approach to Manage Employee Resistance Step 2: Develop Solutions to Address Causes of Resistance

15 Root Causes of Resistance FEAR & SKEPTICISM Motivation TIME & RESOURCE CONSTRAINTS Capacity INADEQUATE SKILL & TRAINING Capability

16 Fear and Skepticism Solution Apply Run, Walk, Run Away Management Innovators Conservatives Inhibitors For 1000 People 200 People 500 People 300 People 20% 50% 30% Run with Innovators Walk with Conservatives Bring Them Along Run away from Inhibitors

17 Fear and Skepticism Solution Develop Strategic Communication Plan 1. What's the leader's vision? 2. What are the objectives? 3. What are the key messages? 4. Who are you trying to reach? 5. What information will be communicated? 6. When will information be disseminated? 7. How much information will be provided, and to what level of detail? 8. What mechanisms will be used to disseminate information? 9. How will feedback be encouraged? 10.What will be done as a result of feedback?

18 Fear and Skepticism Solution Execute Strategic Communication Plan Leaders reinforce emotional key messages Deliver often, using variety of media, in multiple forums Clear, Resonant, Targeted, Timely Fight for Feedback

19 Fear and Skepticism Solution Create Visible Quick Wins Best weapon against skepticism; Show Me! Plan for it - Break project plans and deliverables into smaller chunks Celebrate and publicize success Build on momentum Accept the challenges so that you can feel the exhilaration of victory. George S. Patton

20 Time and Resource Constraint Solutions Resource Planning o Define areas of constraints o Get leadership buy-in o Track constraints Time Management o Communicate Line of Sight o Allow sufficient time Rewards System o Award one-time acknowledgements o Tailor awards to individual Regardless of the type of innovation, the crux of the challenge is always the same. Business organizations are not designed for innovation, they are designed for ongoing operations. And there are deep and fundamental conflicts between the two. Vijay Govindarajan, ChrisTrimble; The Other Side of Innovation

21 Skills and Training Solutions Recruiting and Hiring o Incorporate new skill requirements Training Program Development o Perform skills analysis o Maintain ongoing training plan o Foster team building and inter-group activities Staff Supplementation o Bring in functional expertise Score early implementation wins and then formulate them as guidance to implement new approach.

22 3 Step Approach to Manage Employee Resistance Step 3: Implement Solutions within Appropriate Systematic Change Management Framework

23 Change Management Decision driven change 1. Establish a Sense of Urgency 2. Create the Guiding Coalition 3. Develop a Vision & Strategy 4. Communicate the Change Vision 5. Empower Broad based Action 6. Generate Short term Wins 7. Consolidate Gains and Produce more Change 8. Anchor new approach in the corporate culture Leading Change, Dr. John Kotter vs Behavior driven change 1. Keep performance, not change, as the primary objective of behavior and skill change. 2. Focus on continually increasing the number of people taking responsibility for their own performance and change. 3. Ensure that each person always knows why his or her performance and change matter to the purpose and results of the whole organization. 4. Put people in a position to learn by doing and provide them with the information and support needed just in time to perform. 5. Embrace improvisation; experiment and learn; be willing to fail. 6. Use performance to drive change whenever demanded. 7. Concentrate organization designs on the work people do, not on the decision driven authority they have. 8. Create and focus your two scarcest resources during behavior driven change energy and meaningful language. 9. Harmonize and integrate the change initiatives in your organization, including those that are decision driven as well as behavior driven Handbook of Industrial Engineering: Technology and Operations Management, Gavriel Salvendy

24 Change Management Decision driven change 1. Establish a Sense of Urgency 2. Create the Guiding Coalition vs Behavior driven change 1. Keep performance, not change, as the primary objective of behavior and skill change. 2. Focus on continually increasing the number of people taking responsibility for their own performance and change. 3. Develop a Vision & Strategy 4. Communicate the Change Vision 5. Empower Broad based Action 6. Generate Short term Wins 7. Consolidate Gains and Produce more Change 8. Anchor new approach in the corporate culture Leading Change, Dr. John Kotter 3. Ensure that each person always knows why his or her performance and change matter to the purpose and results of the whole organization. 10. Practice leadership based on the courage to live the change you wish to bring about walk the talk. 4. Put people in a position to learn by doing and provide them with the information and support needed just in time to perform. 5. Embrace improvisation; experiment and learn; be willing to fail. 6. Use performance to drive change whenever demanded. 7. Concentrate organization designs on the work people do, not on the decision driven authority they have. 8. Create and focus your two scarcest resources during behavior driven change energy and meaningful language. 9. Harmonize and integrate the change initiatives in your organization, including those that are decision driven as well as behavior driven Handbook of Industrial Engineering: Technology and Operations Management, Gavriel Salvendy

25 Summary/Takeaways 1. Underestimation of human emotion side of innovation is significant factor in failure to realize results 2. Embrace resistance as a natural response to innovation The Rule 3. Address root causes of fear and skepticism, resource constraints, and skill/training gaps to accelerate pace of innovation through Resistance into Acceptance phase 4. Incorporate workforce motivation focus and solutions in context of larger change management framework Behavior or Decision based

26

27 Q & A

28 Recommended Reading/References Handbook of Industrial Engineering: Technology and Operations Management edited by Gavriel Salvendy Leading Change by John Kotter Resistance: Moving Beyond the Barriers to Change by Price Pritchett Taking Charge of Change by Douglas Smith

29 Employee Resistance What Has Been Your Experience? Give examples of how employee resistance has impacted innovation initiatives you have been a part of.

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