Programme, Project and Change Management
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Programme, Project and Change Management
Wisdom, experience, information, ideas and thoughts gathered from the web on business programme, project and change management.
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Cure Your Company's Allergy to Change, Aetna and Blue Cross Blue Shield Examples

Cure Your Company's Allergy to Change, Aetna and Blue Cross Blue Shield Examples | Programme, Project and Change Management | Scoop.it

"The HBR post cites several case studies illustrating why many transformations fizzle, then two examples for how to turn it around."

 

Excerpted:

 

______________________

   

But they're not failing fast to learn. They're just failing more. It's definitely not a learning organization.

______________________

 

A health insurer demonstrates a repeated pattern of 3- to 5-year cycles where it launches a change program, takes awhile for managers to get behind it, and then more time to get it funded. A program gets funded for a year but then everyone loses interest, and it gets defunded and dies.

 

Recently they're failing faster; the three- to five-year cycle is moving to two to three years. But they're not failing fast to learn. They're just failing more. It's definitely not a learning organization.

 

Just about everyone in the company agrees the culture is dysfunctional:

   

Some point to politics - competition between the COO and CFO blocking each other's progress.  The CEO also had a way of questioning and stress-testing people that discouraged risk-taking => a "play it safe" mentality. Executives who want quick wins scope projects to be done in a year. Most change programs there needed multiple years, so by the time a program extends beyond year one, executives move onto a new initiative.

 

What countermeasures are there to break a tragic change cycle like this?

 

______________________

   

Adopting improvement methods such as "agile" or "lean" can change the culture so that results and trust are prized over process and contracts.

______________________

 

Successful efforts at health insurance companies Aetna and Blue Cross Blue Shield of Michigan offer insights:

 

Organizational realignment — The structure of an organization determines the incentives that drive identity, behavior, and employee understanding of roles and responsibilities and priorities, as well as a sense of ownership and accountability.

 

Blue Cross Blue Shield of Michigan's tried a more traditional functional management structure but then found it lost customer focus.

  

It appointed leaders to run market segments with profit and loss responsibility with the focus of changing the product mix and improve profitability.  By organizing by customer, cross-functional changes became much easier to implement, and there was a dramatic turnaround in business results.    

Improvement methods — a platform for doing work nimbly and at low cost included:

  

Adopting improvement methods such as "agile" or "lean" can change the culture as employees are empowered  so that results and trust are prized over process and contracts.  Tactics such as daily huddles drove immediate wins and helped entrench a culture of empowerment.

 

Employee engagement — Employees fundamentally want themselves and the company to be successful, so successful change agents listen to their needs and help them transition.

 

Aetna describes how new CEO John Rowe and the senior team "sought out employees at all levels — those who were well connected, sensitive to the company culture, and widely respected — to get their input on the strategy, design and execution of intended process changes."

 

Executives at Blue Cross Blue Shield of Michigan went into the field to gather input and communicate their commitment to change. Employees were trained in improvement methods ("Lean"), with every employee going through two sessions in accountability training.

 



Via Deb Nystrom, REVELN
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Harry Cannon's comment, November 1, 2012 11:30 AM
See article in HBR Jul-Aug 2012 by Katzenback et al.
Deb Nystrom, REVELN's comment, November 3, 2012 8:10 PM
Thanks Harry. I appreciate the link.
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Leading change can happen with passionate people - Kotter applied

Leading change can happen with passionate people - Kotter applied | Programme, Project and Change Management | Scoop.it

Kotter's 8 step process is applied in this case study example, happening now with NetApp.

  

NetApp’s staffer and post writer, Mercedes Adams, a 3rd year Guiding Coalition program manager describes her two year experience as a part of an advisory group, in this case named the guiding coalition team, to help accelerate change leadership. I heard Rob Salmon and John Kotter speak at the ACMP 2012 Global Change conference (described in other posts on this stream) regarding their transformation project in process.

  

Note:  Sometimes this approach creates a parallel organization, which can cause problems, and sometimes it's exactly what an organization needs.  Another approach is a collateral organization (temporary, ever changing ad hoc change groups.)  We'll see how the chips fall as Dr. Kotter's advisory team approach helps NetApp over the next few years.  ~  Deb

  

Excerpts:

  

in 2009, Rob Salmon and the Field Operations leadership team decided to pair NetApp’s winning culture with an innovative framework for successful transformation that leverages the urgency and passion of employees across the business.

   

_______________________________

  

Every member selected has a sense of urgency and ‘wants to’ drive change at NetApp.

_______________________________

   

In 2009, Rob Salmon and the Field Operations leadership team decided to pair NetApp’s winning culture with an innovative framework for successful transformation via  Harvard’s Dr. John Kotter and Kotter International.

   

The Guiding Coalition (GC) brings people together from across the company who operate as a team outside the organizational hierarchy. Employees:

   

take a break from their normal day jobs creatively solve problems and drive change Include a balance of individual contributors and managers, directors and vice presidents agree to leave their titles behind when participating on the Guiding Coalition knows that they will need to do this work in addition to their day jobs collectively identify and guide key business initiatives to accelerate NetApp’s growth evangelizes their change vision and drive a sense of urgency into the organization serves for a period of one year    

The first year over 350 passionate and urgent change leaders applied.

Every member selected has a sense of urgency and ‘wants to’ drive change at NetApp.

   

In addition to the members of the Guiding Coalition, hundreds of volunteers, subject matter experts, and change leaders across Field Operations collaborate with the members to drive changes into the culture.

  

NetApp is a rapidly growing company which has thrived through major changes over its 20 year history.

  

The Executive Vice Chairman, Tom Mendoza has a video blog, Tom Talks.

  

Writer Mercedes Adams is the Guiding Coalition Strategic Program Manager at NetApp. She’s been on the Field Operations team for over seven years and advocating change leadership for the last three. Mercedes shares her ideas on a number of topics via Twitter and LinkedIn.


Via Deb Nystrom, REVELN
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