Managing Change Getting the Right Model and Getting

Managing Change: Getting the Right Model, and Getting the Model Right Robert Padulo, Ph. D. i. Workwell, Inc. 215 -875 -9550 robert. padulo@iworkwell. com

2 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. • "There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things. For the reformer has enemies in all those who profit by the old order, and only lukewarm defenders in all those who would profit by the new order … who do not truly believe in anything new until they have had actual experience of it" (Machiavelli, 1532).

3 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. • "We trained very hard, but it seemed that every time we were beginning to form up into teams, we would be reorganized. I was to learn later in life that we tended to react to any new situation by reorganizing, and a wonderful method it can be for creating the illusion of progress, while producing confusion, inefficiency and demoralization" (Gaius Petronus, a Roman general who later committed suicide, attributed by Petronii Arbitri Satyricon, AD 66).

4 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. • "The central idea is this: You have to coordinate and align fundamental changes, to many things, at the same time, to manage a successful transformation" (Robert Padulo, 2001).

• Organizations are complex systems. As their environment changes, organizations must adapt to survive • Organizations are composed of multiple fundamentally interdependent parts • Organizations seek equilibrium — they move toward a state of balance • There is no universal best design • Organizational systems can and do change 5 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. General Nature of Organizations — Organizations as Systems

6 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. What is the Process of Organizational Change?

© 2001 i. Workwell, Inc. Lewin's Force Diagrams. 7 robert. padulo@iworkwell. com 215 -875 -9550

• disequilibrium; • defining the desired future state; • assessing the present in relation to that desired future; • further symmetry breaking or unfreezing; • experimentation; • moving towards the desired new state; • repeating stages 2– 6 until, at some point, • forming a new, dynamic equilibrium. 8 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. Organizational Change is an Iterative Process

A total, fundamental, discontinuous and revolutionary change of qualities (paradigm, character, behavior, capabilities) such that the organization as a whole becomes dramatically different. This change of one thing into another has the general goal of attaining a better fit with the environment, to increase chances of survival and achieve quantum-leap improvements in performance. 9 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. Definition of Corporate Transformation

– *See 35 Factor List 10 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. Recommendations/Practical Advice: 35 Factors

"I think incentives are God-given and inspired. You just have to be careful how you structure them. You also need to package it correctly. Even though it's only a semantic difference, you need to sell it as 'better patient care' (not 'cost reduction'!). . . and then add: 'Oh, by the way, if we save any money you get to keep some of it to do whatever you want for your department. ' That would work“ (Dr. George Huggins). 11 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. Use financial incentives to shape behavior

– *See 35 Factor List 12 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. Recommendations/Practical Advice: 35 Factors

© 2001 i. Workwell, Inc. 13 robert. padulo@iworkwell. com 215 -875 -9550

© 2001 i. Workwell, Inc. 14 robert. padulo@iworkwell. com 215 -875 -9550

15 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. Do These Lessons About Corporate Transformation Apply to Organizational Change Generally?

• The core idea uniting all 35 success factors is the necessity of a systems-change approach. • To manage change successfully, you need to: – get the right model (i. e. , along the lines of my diagram incorporating the relevant factors), – and get the model right (i. e. , the dynamic process must be fine-tuned and managed, to work within your specific circumstances). • In other words, not only do you have to address the roughly 35 factors, you have to address them properly. • The greater the change management task, the more you have to coordinate and align fundamental changes, to many things, at the same time, to manage change successfully. 16 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. Summing Up – The Key Takeaway

© 2001 i. Workwell, Inc. Applying These Lessons 17 robert. padulo@iworkwell. com 215 -875 -9550

– *See 35 Factor List 18 robert. padulo@iworkwell. com 215 -875 -9550 © 2001 i. Workwell, Inc. Recommendations/Practical Advice: 35 Factors

Managing Change: Getting the Right Model, and Getting the Model Right Robert Padulo, Ph. D. i. Workwell, Inc. 215 -875 -9550 robert. padulo@iworkwell. com