Albert A. ANGEHRN - CALT

Transcription

Albert A. ANGEHRN - CALT
The Challenge of
Change &
Knowledge
Management
Pfizer
ELDP
The Challenge of
Change
& Knowledge
Management
Albert A. ANGEHRN
Professor, IT & Entrepreneurship
Director, Centre for Advanced Learning
Technologies (CALT)
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
INSEAD
European Institute of Bus. Administration
Fontainebleau & Singapore
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Pfizer
ELDP
The Challenge of
Change
& Knowledge
Management
Albert A. ANGEHRN
Professor, IT & Entrepreneurship
Director, Centre for Advanced Learning
Technologies (CALT)
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
INSEAD
European Institute of Bus. Administration
Fontainebleau & Singapore
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Pfizer
ELDP
The Challenge of
Change
& Knowledge
Management
Albert A. ANGEHRN
Professor, IT & Entrepreneurship
Learning by Doing
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Director, Centre for Advanced Learning
Technologies (CALT)
INSEAD
European Institute of Bus. Administration
Fontainebleau & Singapore
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Changing how we address Change
Serious Play
From Traditional to
simulation-based
Experiential Learning
Stanford
Northwestern U
Chicago U
MIT
INSEAD
Developing
Individual
Change Competencies
Albert A. ANGEHRN
Organizational
[email protected]
Change Readiness
ISAGA05/AAAngehrn/INSEAD/June 2005
Hong Kong U
Columbia U
Duke U
Evidence of IMPACT in management world
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
No doubt: Change is CRITICAL !
“Business is going to change
more in the next 10 years than
it has in the last 50.”
Bill Gates, Business at the Speed of Thought, 1999
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
No doubt: Change is CRITICAL !
“Business is going to change more in the next
10 years than it has in the last 50.”
Bill Gates, Business at the Speed of Thought, 1999
A critical asset to be developed:
Change readiness
Albert A. ANGEHRN
The competency that enables organizations to
address productively both incremental and
radical change.
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Large change initiatives aiming
at performance improvements
Business Process Reengineering
Empowerment
Activity-based Costing/Mgmt
TQM
Benchmarking
Time-based Competition
Matrix Structures
Network Organisations
Project-based Organisation
Cross-functional Teams
Mergers & Acquisitions
e-Everything
Albert A. ANGEHRN
… Customer Relationship Mgmt (CRM), Supply
Chain Mgmt (SCM), Knowledge Mgmt (KM), …
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
But Change, in Reality, is HARD !
75% of all transformation efforts fail
50-75% of “re-engineering” projects fail
Failure rates are higher (78%) when IT involved
E
G
CHANGE
N
STRATEGISTS
E
L
L
A
H
C
CHANGE
IMPLEMENTATION
PROCESS
Albert A. ANGEHRN
CHANGE
RECIPIENTS
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
The expectations …
Performance
measure
Time
What we aim at …
Albert A. ANGEHRN
[email protected]
6/6/2006
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
…the reality
… and what
we typically
get …
Performance
measure
Time
Unsustainable improvements
Performance
measure
Albert A. ANGEHRN
Performance
measure
Time
Little impact
Time
Unsustainable pace
[email protected]
6/6/2006
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
Change Readiness & Implementation Patterns Assessment
The Challenge of
Change &
Knowledge
Management
Performance
A
Time
Pattern “A”
Meeting Targets
Performance
Performance
B
Pattern “B”:
Unsustainable Pace
C
Time
Pattern “C”:
Unsustainable Improvements
Time
Performance
D
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pattern “D”:
Little or No Impact
Time
Pfizer ELDP, INSEAD, June 2006
Change Readiness & Implementation Patterns Assessment
The Challenge of
Knowledge
Change
&
Knowledge
Exchange
Management
Performance
Learning
Opportunities
A
•Resistance Dynamics
•Diffusion Dynamics
•Cultural/Cont. Factors
Time
Pattern “A”
Meeting Targets
Performance
Performance
B
Pattern “B”:
Unsustainable Pace
C
Time
Pattern “C”:
Unsustainable Improvements
Time
Performance
Learning
Opportunities
D
Albert
A. ANGEHRN
•Resistance
Dynamics
•Diffusion Dynamics
[email protected]
•Cultural/Contextual Factors
ISAGA05/AAAngehrn/INSEAD/June 2005
Pattern “D”:
Little or No Impact
Time
Knowledge
Exchange
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Change in Reality !
75% of all transformation efforts fail
50-75% of re-engineering projects fail
78% of IT projects fail
Key Factors:
Organizational resistance
Insufficient exec. sponsoring
Unrealistic expectations
Inadequate programme mgmt
Unclear business case
Lack of qualified resources
Scope of expansion/uncertainty
Ineffective leadership
82%
72%
65%
54%
46%
44%
44%
43%
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
The challenge …
CHANGE
CHANGE
STRATEGISTS IMPLEMENTATION
PROCESS
CHANGE
RECIPIENTS
Reflecting & understanding the dynamics of
Albert A. ANGEHRN
[email protected]
6/6/2006
Diffusion, Change & Resistance
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The EIS Challenge
(www.calt.insead.edu/eis)
The Challenge of
Change &
Knowledge
Management
What stages do change recipients go through
before adopting ?
Awareness
•
Change recipient becomes aware that the change project
and its objectives
Interest
•
Change recipient develops curiosity about the innovation
and is open to information (how does it work, potential
benefits, etc.)
Appraisal/
Trial
•
Change recipient is ready to: evaluate costs/benefits of
the innovation, assess probability of success, try out on a
small scale or in a pilot project
Adoption
•
Change recipient adopts the innovation, using it on a
continuous basis
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD,
AAAngehrn/INSEAD
June 2006
The EIS Challenge
The Challenge of
Change &
Knowledge ORGANIZATIONAL
Management DIAGNOSIS
EFFECTIVE ORG.L
INTERVENTIONS
STRATEGY
Adaptive
NETWORKS
Explicit
PROCESS
Formal & informal
networks
INDIVIDUALS
Power & diffusion
networks
Role & history
Attitude towards
change
!
Key driving principles
(collaborative
vs. competitive)
Leveraging networks
& key individuals
Expectation mgmt
Motivation & Resistance
Process fairness
dimensions
Influence
ORG. CULTURE
Communication culture
Albert A. ANGEHRN
Positive/negative signals
[email protected]
Values & vision
Mgmt style
ISAGA05/AAAngehrn/INSEAD/June 2005
Awareness
Interest
Trial
Adoption
TACTICS
Adapted to people, timing
& adoption stage
Target individuals vs groups
Open vs. covert
Collaborative vs competitive
Pfizer ELDP, INSEAD, June 2006
The EIS Challenge Experience
The Challenge of
Change &
Knowledge ORGANIZATIONAL
Management DIAGNOSIS
Analysis Levels
My company/unit/group
What is different/similar?
NETWORKS
Formal & informal
networks
INDIVIDUALS
Power & diffusion
networks
Role & history
Attitude towards
change
Motivation & Resistance
Influence
ORG. CULTURE
Communication culture
Albert A. ANGEHRN
Positive/negative signals
[email protected]
Values & vision
Mgmt style
ISAGA05/AAAngehrn/INSEAD/June
2005
àINDIVIDUAL LEVEL
Typical Resistance Patterns
àNETWORK LEVEL
Diffusion Patterns
àCONTEXT
Cultural Patterns
Which areas should be addressed first to
increase CHANGE READINESS ?
Myself
Which are the most typical and
counterproductive TRAPS in which we tend
to fall into ?
Which opportunities to improve significantly
our MANGERIAL ACTIONS ?
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Managing Expectations
CHANGE
CHANGE
STRATEGISTS IMPLEMENTATION
PROCESS
Performance
measure
CHANGE
RECIPIENTS
‘Linear’
Expectations
100%
result
effort
Albert A. ANGEHRN
H
Time
Horizon
[email protected]
6/6/2006
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Managing Expectations
Kim & Mauborgne
Tipping Point Leadership
HBR, April 2003
CHANGE
CHANGE
STRATEGISTS IMPLEMENTATION
PROCESS
CHANGE
RECIPIENTS
Performance
measure
100%
Tipping Point
Albert A. ANGEHRN
I
II
III
Time
Horizon
[email protected]
6/6/2006
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Think Networks!
From Linear
to Epidemic
Diffusion
Dynamics
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
black: opinion leaders
red: influenced
green: uninfluenced
grey: undecided
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The EIS Challenge
The Challenge of
Change &
Knowledge ORGANIZATIONAL
Management DIAGNOSIS
EFFECTIVE ORG.L
INTERVENTIONS
STRATEGY
Adaptive
NETWORKS
Explicit
PROCESS
Formal & informal
networks
INDIVIDUALS
Power & diffusion
networks
Role & history
Attitude towards
change
!
Key driving principles
(collaborative
vs. competitive)
Leveraging networks
& key individuals
Expectation mgmt
Motivation & Resistance
Process fairness
dimensions
Influence
ORG. CULTURE
Communication culture
Albert A. ANGEHRN
Positive/negative signals
[email protected]
Values & vision
Mgmt style
ISAGA05/AAAngehrn/INSEAD/June 2005
Awareness
Interest
Trial
Adoption
TACTICS
Adapted to people, timing
& adoption stage
Target individuals vs groups
Open vs. covert
Collaborative vs competitive
Pfizer ELDP, INSEAD, June 2006
Behind the Classical Change Adoption Stages
The Challenge of
Change &
Knowledge
Management
Attitude/
Behavioral
Changes
Awareness
Interest
Appr./Trial
Adoption
Our Impact
Addressing &
Diffusing:
Intentions/Committment
Desires/Goals
Knowledge/Beliefs
Key Challenges
Capturing &
Securing:
Albert A. ANGEHRN
Presence/Collaboration
Trust
Attention
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Understanding Resistance & Diffusion
% of typical
population
30
20
10
Albert A. ANGEHRN
[email protected]
Innovators
ISAGA05/AAAngehrn/INSEAD/June 2005
Early
Adopters
Early
Majority
Late
Majority
Resisters
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Understanding Resistance & Diffusion
% of typical
population
30
20
Resistance WE contribute
in generating (lack of sensitivity
for self-determination needs and
Procedural Fairness/Justice issues)
10
Albert A. ANGEHRN
[email protected]
Kim & Mauborgne
Fair Process: Managing
Early
Early
in Innovators
Knowledge
Economy
Adopters
Majority
HBR, February 2003
ISAGA05/AAAngehrn/INSEAD/June 2005
Late
Majority
Resisters
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Insights from Motivational Theory
c
Basic Psychological Needs
nAutonomy
The feeling of possessing a sufficient level of control over
own choices and activities, and that one is recognized as
oneself apart from any social grouping
nBelonging
The perception of being embedded in a network of strong,
stable relationships, and to be validated in these
relationships
nCompetence
The feeling of being able to effectively bring about the
results and outcomes desired from particular activities
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Fulfilling and guaranteeing a sustainable fulfillment is high priority,
particularly when near critical levels, although intensities of needs (and
related levels of activity) vary from individual to individual.
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Insights from Motivational Theory
?
Change
Potential
‘gains’ &
alignment
Pride
Potential
‘losses’
c
Autonomy
Belonging
Competence
Collaborative Behavior
(e.g. supportive attitude and active involvement in the
implementation of the change process, intrinsic
motivational factors)
Fears
Defensive Behavior
(e.g. resistance, blind compliance, and other
un- or non-productive attitudes towards the
change and different resistance forms leading
to lack of intrinsic motivation)
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Change Tactics/Initiatives Appropriateness
EIS Tactic
Personal profiles
Task forces
Coffee breaks
Social networks
Face-to-face meetings
Internal magazine
Electronic mail
Memorandum
Seek advice
Management training
Workshop
Staff meeting
Questionnaire
External speaker
Directors’ meeting
Pilot test
Directive
Covert lobbying
Diagnosis
Awareness
Interest
Trial
?
?
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Understanding the Impact of
Culture on Change Processes
Change Processes
People
Change Processes
Artifacts
Change Culture
Organizational Culture
Culture
Relationships
Processes
Systems
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Changing Culture is Hard
“… the peasants of the Bigouden in
Brittany, in the year 1920, do not
know that there is a sea only ten
kilometres away; the world is black
beyond their own villages, filled with
devils and danger …”
Zeldin (1994)
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
Changing
The Challenge of
Change &
Knowledge
“… the Russians rioted in
Management
Culture is Hard
the 1840s when the
government tried to persuade them to grow potatoes.
Being used to living mainly on rye bread, they suspected
a plot to turn them into slaves and force a new religion
on them.
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
But within fifty years they
where in love with potatoes!
The explanation is that they
added the same sourness –
kislotu – which had always
given savour to their food,
and which was what they
were ultimately addicted
to …”
Zeldin (1994)
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge Culture
Management
The Knowing-Doing Gap
- The Challenge of Changing how
we Change
1. Real Value comes from “Doing”
2. Real Competence comes from “Experience”
3. Doing means Learning – which means Mistakes
4. Beyond Fear and unproductive int. Competition
5. Oh no! Not another Program!
6. Sacred Cows
7. The Dark Side of Measurement
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowing-Doing Gap Insights
1. Real Value comes from “Doing”
Knowledge and Intellectual Capital are key, but top
management too often prefers to engage into easier and safer
activities such as developing and discussing concepts,
producing reports and databases, invest in infrastructure,
planning and attend long decision-making meetings.
Albert A. ANGEHRN
"In some organizations that we
studied there seemed to be an
unspoken, but powerful belief that
once a decision had been made to
do something, no additional work
was needed to make sure it was
implemented.“
Pfeffer; 2000
Towards a
“doing-oriented”
culture
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowing-Doing Gap Insights
2. Real Competence comes from “Experience”
Ideas and concepts are key, and the market is willing to value
them (sometimes even too much), but execution is what
ultimately produces value and competence based on real
experience. Equally, the real value of knowledge is its
“actionability”.
Albert A. ANGEHRN
I've always found the job market to
be perplexing for this reason: You
can be a plant manager -- actually
have what it takes to run a plant -and make $80,000 to $100,000 a
year. Or you can talk about plant
management and make twice that.
Pfeffer; 2000
Towards a
“execution-oriented”
culture
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowing-Doing Gap Insights
3. Doing means Learning – Learning means Mistakes
The trend of making people accountable for their performance
is productive – but only if companies are able to build a
forgiveness framework - a tolerance for error – into their
culture.
If you're going to be held
accountable for every mistake that
you make, how many chances are
you going to take? How eager are
you going to be to convert your ideas
into actions?
Pfeffer; 2000
Towards a
“learning” and
“experimentationoriented” culture
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowing-Doing Gap Insights
4. Beyond Fear and unproductive int. Competition
You can forget bridging the Knowing-Doing Gap in
organizations where fear is a dominant factor – fear to fail,
but also fear to address issues – and the tendency to focus
only on the short term and on one’s own survival.
I want everybody to tell me the truth
- even though it costs him his job
Sam Goldwyn; Movie Producer
We have met the enemy, and it is us!
Albert A. ANGEHRN
Towards a
“fear-free” and
“collaborationoriented” culture
Pogo Comic Strip
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowing-Doing Gap Insights
5. Oh no! Not another Program!
Many of the ‘programs” rolled out in corporations mean that
the the company is about to spend all of its time worrying
about the content of the program, rather than learning by
doing. Experience shows that no matter how smart you are,
you can't preplan everything and then roll out your program.
Enlightened trial and error
outperforms the planning of flawless
intellects
David Kelley; Founder and CEO of
Ideo Product Development
Towards a
“not-only-planning
oriented” culture
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowing-Doing Gap Insights
6. Sacred Cows
Combined again with fear, corporate memory of "how we've
always done things around here" too often substitutes for
"doing things the right way around here." After a while, what
was originally adopted as a means to an end becomes an end
in itself (see for instance HR policies).
What you end up with are sacred
cows -- things that you take for
granted; processes, practices, and
rules that you think will help you get
things done. In reality, all they do is
get in the way of getting things done.
Pfeffer; 2000
Towards a
“challenging the pastoriented” culture
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowing-Doing Gap Insights
7. The Dark Side of Measurement
What gets measured is what gets done – but measurement
can also become the reason why nothing gets done, as there
are too many measures in place, which in addition are not
always relevant. In fact, companies often exclusively measure
outcomes, and not process – preventing themselves to
understand where to intervene to change outcomes.
outcome
process
good
good
bad
Avoiding the
“Illusion of Control”
bias
bad
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Helping people cope with change
nRethink resistance to change
uAs a natural self-protection mechanism.
uAs a step towards adaptation to the changes.
uAs information on the effects of the change strategy.
nGiving
first-aid
uAccept
and understand emotional responses.
uMinimize uncertainty.
uProvide resources and support.
nCreating
org’l capabilities for change
uMake
Albert A. ANGEHRN
organizational support for risk-taking clear.
uInvolve people in the decision-making process.
uProvide opportunities for individual growth.
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Evidence on Change Processes
> Most important changes may meet with resistance from
powerful people in the organization
> Resistance to change originates in multiple sources,
especially in lack of will and lack of skill
> People’s reaction to change processes are a function of how
change is introduced and managed (the “fear” factor)
> The initiators of change typically underestimate the level of
resistance, the magnitude of the effects of change, as well
as the time required for a successful implementation
> A history of success is likely to become an important
obstacle for people to perceive the need of change
Albert A. ANGEHRN
[email protected]
> Successful implementation strategies typically take into
account the level of resistance, the power, and the
informal networks of the people that are key to success of
the change/innovation project
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Overview of Key Points
1: Change – Key Issues
a) Change is CRITICAL: Engaging people into change à importance
of making it clear why change is so critical
b) Change is COMPLEX: Understanding the factors underlying
success and failure of change initiatives
2: Change – Experience and Analysis
a) Simulation
b) A Map of critical success factors (6 areas of analysis):
Albert A. ANGEHRN
- Individuals (diversity, attitudes, responsiveness)
- Networks (mapping and leveraging informal networks
and relationships/influence patterns)
- Culture (understanding specificities, protocols and
“wired” habits – ex: Knowing-Doing Gap)
- Process management: Setting expectations right and
exploiting “tipping points” dynamics
- Strategy – Tactics interplay
- Sources of Resistance (addressing or avoiding their
emergence)
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The EIS Challenge Experience
The Challenge of
Change &
Knowledge ORGANIZATIONAL
Management DIAGNOSIS
Follow Up
My company/network
What is different/similar?
NETWORKS
Formal & informal
networks
INDIVIDUALS
Power & diffusion
networks
Role & history
Attitude towards
change
Motivation & Resistance
Influence
ORG. CULTURE
Communication culture
Albert A. ANGEHRN
Positive/negative signals
[email protected]
Values & vision
Mgmt style
ISAGA05/AAAngehrn/INSEAD/June
2005
àINDIVIDUAL LEVEL
Typical Resistance Patterns
àNETWORK LEVEL
Diffusion Patterns
àCONTEXT
Cultural Patterns
Which areas should be addressed first to
increase CHANGE READINESS ?
Myself
Which are the most typical and
counterproductive TRAPS in which we tend
to fall into ?
Which opportunities to improve significantly
our MANGERIAL ACTIONS ?
Pfizer ELDP, INSEAD, June 2006
The EIS Challenge: Reflection Points
The Challenge of
Change &
Knowledge
Management
Change Implementation Traps
Change Process Traps
Change Tactics Traps
(1) Optimism Trap
(1) Selection Traps
(2) Illusion of Control Trap
(2) Narrow Focus Trap
(3) Naivety Trap
(3) No Follow-up Trap
(4) Push Through Trap
(4) Target Blindness Trap
(5) History Blindness Trap
(5) Shooting in the Dark Trap
(6) Solution- vs People-orientation Trap (6) Stakeholders Blindness Trap
(7) Single Perspective Trap
(7) Give Up Trap
(8) Backfiring
Trap
(8) Network Naivety Trap
Albert
A.
ANGEHRN
(9) Quick Win Trap
(9) Get it Done Quickly Trap
(10)
Context
Sensitivity
Trap
[email protected]
(11) Individual Progress Blindness Trap
(12) Change Project Progress2005
Blindness Trap
ISAGA05/AAAngehrn/INSEAD/June
Strategy & Resistance Traps
(1) Blind Flight Trap
(2) Visibility & Assessment Trap
(3) Single-Loop vs Double-Loop Trap
(4) Rigid Assumptions Trap
(5) Outcome vs Learning Trap
(6) Lack of Differentiation Trap
(7) Distributive Justice Trap
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Follow Up Support Page
http://www.calt.insead.edu/
eis/SessionsPages/Pfizer
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Focus: KM & Collaboration
Opportunities & Challenges
n
KM & Collaboration as Change Challenges
u
u
n
Innovation:The Knowledge Integration Frontier
u
u
n
PW Experiences and Failure Patterns
“Enterprise 2.0”: Wikis, Blogs and Social Networks SW
Beyond traditional Innovation Models
Innovation beyond company’s boundaries
Collaboration 2.0 @ Pfizer ???
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowledge Management Experiences
in a global Consulting Company (1989)
“The corporate psychology makes the use of
the KM System difficult. Particularly the
consultants career path which creates a
backstabbing and aggressive environment in
which … people maximize opportunities for
themselves”
Albert A. ANGEHRN
[email protected]
“I am trying to develop an area of expertise
that makes me stand out. If I shared that with
you, you would get the credit, not me. It’s
really a cut-throat environment.”
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowledge Management Experiences
in a global Consulting Company (1989)
“The corporate psychology makes the use of
the KM System difficult. Particularly the
consultants career path which creates a
backstabbing and aggressive environment in
which … people maximize opportunities for
themselves”
Albert A. ANGEHRN
[email protected]
“I am trying to develop an area of expertise
that makes me stand out. If I shared that with
you, you would get the credit, not me. It’s
really a cut-throat environment.”
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Knowledge Management Experiences
in a global Consulting Company (1989)
“Power in this firm is your client base and
technical ability. Now if you put all this
information in a shared knowledge base, you
lose power. There will be nothing which is
privy to you, so you lose power.
It’s important that I am selling something that
no one else has. Sharing expertise in the firm
is just a ‘dream’.”
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Collaboration &
its Key Ingredients
Collaboration can be seen as a way to achieve a set of Objectives.
Its key ingredients are People, a set of Processes & Plans, and a set
of Resources.
Objectives
Degree of
Objectives Achievement
Time
• Collaboration Spaces
(physical, virtual)
Albert A. ANGEHRN
Processes & Plans
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
• Documents and other
types of Knowledge
Assets
People
Resources
• Funds
•…
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Collaboration &
its Key Ingredients
Corporate collaboration is necessary, in
general, because no matter how we organize
work, we end up with activities that cut
horizontally across the company.
Main Objectives :
Albert A. ANGEHRN
[email protected]
•To optimize business activities that cannot be optimized by
"sum of the local metrics"
•To identify innovations that are unlikely to be seen from any
single vantage point
•To reinforce professional disciplines that cut across product or
geographic organizations
•To identify and replicate operational best practices
•To identify and cross-train next-generation managers
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
Collaboration & its Breakdowns
The Challenge of
Change &
Collaboration is unfortunately not always successful.
Knowledge
Instead of successful Patterns (“A”) we often end up with unsuccessful ones (“B”, “C”, or “D”)
Management
Degree of
Objectives Achievement
Pattern “B”
No Take-Off Breakdown
Time
Degree of
Objectives Achievement
Degree of
Objectives Achievement
Pattern “C”
Crash Landing Breakdown
Time
Pattern “A”
Successful Collaboration
Time
Degree of
Objectives Achievement
Pattern “D”
Hijacking Breakdown
Albert A. ANGEHRN
Time
[email protected]
Note that unsuccessful patterns can be temporary sub-patterns of an ultimately successful one.
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Collaboration Breakdowns
Change &
Knowledge
Communication
may be withheld or feels
incongruent, manipulative,
Signals
dishonest, misleading
Management
Power Struggles
Political Intrigue
Unethical Behavior
Communication Impasses
Escalating Conflict
Deepened Organizational
Cynicism
...
Collaboration is a process
of collective alignment
where the energies in a
system are all working
congruently, consistent
with a common
purpose.
Aim at promoting dialogue and clear understanding
of values, needs, actions and goals. Surveys of top
executives consistently cite poor communication as
the number one cause of failure in business
ventures.
Negotiation
is adversarial and strives to
"win the deal," not win the
relationship
Aim at optimizing mutual gains and develop
relationships of reciprocity. Myth or reality: the goal
of a negotiation is to "win the deal?" This can
backfire badly when the ones who feel cheated also
feel entitled to get you back, any way they can and
probably within the terms of the agreement. If your
goal is collaboration, then you need partners who
consistently negotiate to "win the relationship" and
to expand your creative options.
Conflict resolution
is positional, coercive,
conditional, punitive, and
too little too late
Aim at facilitating reconciliation--restoring trust and
healing from betrayal. Conflict is a cost and
opportunity of doing business. Your choice is what to
do about it. Address it in "real time" to dissolve any
blockage. Do you have processes for managing and
resolving conflict to meet needs for fairness, mutual
gains, and workable results?
Collaborative process
is an afterthought or
unskillful, without necessary
focus, structure and
coherence; it often feels
futile and like a waste of
precious time - what
process?!
Aim at generating participatory decision making and
buy-in. Optimal results come from balanced
attention to process to make meetings productive
and efficient. Process builds and maintains the web;
it keeps communication feedback loops fluid, useful
and complete.
Agreement structuring
Albert A. ANGEHRN
[email protected]
is unrealistic, incomplete,
focuses on control measures
with insufficient
consideration for what would
support alignment and
reconcile ongoing
relationships
Aim at clarifying adaptable guidelines and to manage
expectations and results from a clear foundation of
reciprocity and trust. The goal of every negotiation,
conflict resolution process, and collaboration process
is a reliable, clear and accurate agreement that
accommodates change. These agreements can take
many forms, but ultimately they must serve your
core needs. Do your agreements promote
collaboration
Adapted from: B.C. Lewis, 2005
Adapted from: B.C. Lewis, 2005
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Example:
WorldMusic Game
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Albert A. ANGEHRN
[email protected]
Collaboration &
the “Enterprise 2.0” vision
“Internet”
“Our companies”?
Transparency
Partial, multiple information
Lack of clear procedures
Sharing culture
Vertical info. sharing only
Retention within “Clans”
Process integration
Processes organized in “Silos”
Pooled Coordination
Top down processes,
sequential processes
Real-time
Commitment
Several checks, vertically
organized
Horizontal structures
Hierarchical structures
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
IT Generations/Perspectives
IT Impact
Strategic Value
Enterprise 2.0: The Dawn of Emergent
Collaboration, Sloan Mgmt Review,
Spring 2006
Value Creation
through Innovation
Knowledge Integration, Collaboration
Productivity Gains
from Reengineering
Leveraging
The Web
ERP, SCM, eEverything, etc.
Cost savings
from Automation
Competitive
Necessity
Data Warehousing, Mining, etc.
Albert A. ANGEHRN
Recent Past
Today
Near Future
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
The IT Perspective:
Collaboration Technologies
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
The Business Perspective:
The Knowledge Integration Challenge
Type of Knowledge &
K-intensive Processes
Beyond the
Knowledge Integration
Frontier
“complex”
“simple”
Co-located
Confluent
Albert A. ANGEHRN
[email protected]
Dispersed
Diverse
Knowledge
Source
Future source of competitive advantage ?
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
The Business Perspective:
The Knowledge Integration Challenge
Type of Knowledge &
K-intensive Processes
“complex”
1
“simple”
2
Co-located
Confluent
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Learning from the
bottom-up spread of
Wikis, Blogs, and
Social Network SW
Dispersed
Diverse
Learning
from the
Opensource
Movement
Knowledge
Source
Experimentation Paths &
New Management Competencies
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
KM Trends:
Customer Focus
KM
CRM
CKM
Knowledge sought
in
Employee, team, company,
network
Customer Database
Customer experience and
creativity
Axioms
‘if only we know what we
knew’
‘retention is cheaper than
acquisition’
‘if we only knew what our
customers know’
Objectives
Sharing knowledge about
customers among
employees
Mining knowledge about
the customer
Gaining, sharing and expanding
knowledge of (inside) the
customer. Experiences in
applications, competitor
behavior, future solutions, etc
Role of customer
Passive, recipient of
product
Captive, tied to product
by loyalty schemes
Active, knowledge partner.
Recipient of
Incentives
Employee
Customer
Customer
Corporate role
Lobbying knowledge
hoarding employees
Captivate customers
Emancipate customers
Business objectives
Efficiency and speed
gains, avoidance of reinventing the wheel
Customer retention
Customer base nurturing,
maintaining our
customers
Customer satisfaction
Collaboration with customers,
joint value creation
Performance against
budget; Customer
retention rate
Performance in terms of
customer satisfaction and
loyalty
Performance against competitors
in innovation and growth;
Contribution to customer success
Conceptual base
Albert A. ANGEHRN
Business metrics
Customer success, innovation,
organizational learning
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
20 million Users
(users did Mkt
Mkt))
Mirabilis.com
ICQ
(I seek you)
AOL:
$ 440 m
People & Costs
(users did R&D)
4
Y1
Y2
K
IDEA
Re-Designing
Knowledge Flows
& Relationships
Traditional Models à New Value Creation Models
Albert A. ANGEHRN
[email protected]
6/6/2006
Traditional Valuation Models à New Valuation Models
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Insights from ICQ Case
Knowledge
Emerging ICT and
Collaboration Technologies
• Ideas and Exchanges
• Functional Know-how
(R&D, product., mktg, distr., etc.)
• Market needs Know-how
New processes, systems and org. cultures supporting the
effective access and integration of:
- diverse knowledge sources
- in distributed global contexts
Market Value
@ industry level
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
(example: opensource and
the recent transformation
of the Software Industry)
@ company level
(example: reorganizing IT
professional at Xerox into
a global community)
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Example: Xerox CodeX Case
Project Objectives
Project Approach
OpenSource tools,
Methods & Culture
•Who is developing what and where?
•Identify experts
•Share globally
•Harmonize SW development practices
•Avoid 3rd party licensing
4000 distributed software engineers
Project Results
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
> Faster development
> Improved quality and SW features
> Increased diffusion of best practices
> Growing sense of community
> User satisfaction rates above 90%
> Substantial, quantified costs savings
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
More Follow-up Opportunities
Another couple of articles for follow-up readings:
- “Customers as Innovators: A New Way to Create Value” by
S. Thomke & E. von Hippel, Harvard Business Review, April 2002.
(http://www.calt.insead.fr/papers/customers-innovators.pdf )
- “Managing Innovation in Turbulent Markets” by M. Sawhney
& E. Prandelli, Best Paper Award, California Management Review,
Summer 2000.
(http://www.calt.insead.fr/papers/communities-creation.pdf )
Albert A. ANGEHRN
- ‘Enterprise 2.0: The Dawn of Emergent Collaboration’, Sloan
Mgmt Review, Spring 2006.
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006
The Challenge of
Change &
Knowledge
Management
Thank you
Ideas, Suggestions, Questions, Issues
[email protected]
Albert A. ANGEHRN
[email protected]
ISAGA05/AAAngehrn/INSEAD/June 2005
Pfizer ELDP, INSEAD, June 2006