U NCERTAINTY P ART II Susan L. Newton Nonprofit Learning Center - PowerPoint PPT Presentation

N AVIGATING C HANGE IN T IMES OF U NCERTAINTY – P ART II Susan L. Newton Nonprofit Learning Center May, 2014

W HY THIS TOPIC ?  In a rapidly changing world, every leader needs to understand how to guide change  Change comes in many forms in the nonprofit world:  Meeting new financial, board or stakeholder demands  Implementing a strategic or development plan  Upgrading or implementing technology systems  Leadership or board transition  More or less funding   2

C HANGE AS SYSTEMIC Systemic change can be pervasive and multi-directional. For example: When creating something that does not exist, e.g., a strategic plan, new technology When shifting states from current to future, e.g., redefining business processes, a re- organization, new leadership, technology, culture change When dismantling something, e.g., closing a program, merging 3

Y OUR LEARNINGS / EXPERIENCE Consider your past experiences in leading or participating in org changes. Share your comments here. Factors that helped Factors that hindered What would you do differently 4

E LEMENTS OF C HANGE G APS AND I MPLICATIONS Clarifying Initiating Planning for Creating Building Reinforcing Pursuing CHANGE Purpose Commitment Change Followership Capability Change Alignment CONFUSION / Initiating Planning for Creating Building Reinforcing Pursuing Commitment Change Followership Capability Change Alignment DISENCHANTMENT COMPLACENCY/ LACK Clarifying Planning for Creating Building Reinforcing Pursuing Purpose Change Followership Capability Change Alignment OF IMPORTANCE FALSE STARTS/ Clarifying Initiating Creating Building Reinforcing Pursuing Purpose Commitment Followership Capability Change Alignment WASTED RESOURCES FRUSTRATION/ Clarifying Initiating Planning for Building Reinforcing Pursuing Purpose Commitment Change Capability Change Alignment RESISTANCE INACTION/ CONFUSION/ Clarifying Initiating Planning for Creating Reinforcing Pursuing Purpose Commitment Change Followership Change Alignment SELF DOUBT Pursuing WASTED EFFORT/ LOSS Clarifying Initiating Planning for Creating Building Purpose Commitment Change Followership Capability Alignment OF MOMENTUM 5 PROLONGED CHAOS/ Clarifying Initiating Planning for Creating Building Reinforcing Purpose Commitment Change Followership Capability Change IMBALANCE

C ASE STUDY – W ASHINGTON N ON P ROFIT O RGANIZATION  WNPO is a 10 person employee organization that has been incredibly successful in its field. The company is over 25 years old and is known for maintaining a benevolent family type atmosphere.  Over the past 2 years, the economy has impacted the organization. WNPO has not responded quickly to these issues and began to see increased competition from other non profits that had more successful plans to help them through tough times. Six months ago the ED left to move with her husband to Michigan. The board appointed an interim ED while conducting a search for a new ED. Following his appointment, the interim ED focused primarily on rebuilding morale and bringing back donors.  Now a new ED has been hired and bring the organization back from the brink. Two people, loyal to the former ED, have left. The board has had natural turnover of terms and there are three of 10 board members who are brand new.  You have to assess the current change issues and develop a recommendation for the new ED who is committed to turning things around. 6

C HANGE AS TRANSITION Transition and change are not the same things. “ Transition is the psychological process people go through to come to terms with a new situation. Change is situational: the new boss, the new process, the new job.” William Bridges Endings Neutral Zone Beginnings Beginnings involve new To move to the future, you must A period where neither the understandings, values, first let go of the present. old ways nor the new ways attitudes and identities. They Beginnings depend on endings. work well. A time of re- follow the timing of the mind orientation & redefinition. and heart.   What is ending as a result of this What is known or uncertain at this  What will be new or different as a change? What continues? time? result of this change?   What are you leaving behind?  What ways can you normalize the Are you consistently  What is it time for you to let go of? uncertainty of this period? communicating what “the   Who will lose or has lost what? What ways can you organize this beginning” looks like?  How can you honor the endings and period into manageable,  How can you ensure some quick losses? understandable, time limited phases successes?  How can you bring to completion or  so people can experience the group How can you symbolize the new closure key activities or as making progress? identity or new beginning?  relationships? How can you use the creativity and learning of this period? 8 Source: William Bridges

T RANSITIONS  Ending  Leave taking  Celebrating/mourning what has passed  Letting go of the trapeze  Neutral Zone  Wandering  New routines not established  Flying after releasing the trapeze  Beginning Establishing new habits  Settling in  Grabbing the next trapeze  8

M ANAGING TRANSITIONS - E NDINGS People experience People need Leaders can Fear, resentment, Information, safety Provide ongoing, caution accurate information Clarify what’s changing and what’s not Support people in ‘grieving’ 9

M ANAGING TRANSITIONS – N EUTRAL Z ONE People experience People need Leaders can Doubt, anxiety, Acceptance, focus, Be available confusion, creativity, short-term wins, Set realistic productivity energy opportunities to and/or work goals contribute Foster creativity and learning, set up feedback mechanisms 10

M ANAGING TRANSITIONS - B EGINNINGS People experience People need Leaders can Increased confidence Applause – note Create ways to celebrate and focus, ambivalence success, share credit, and reward emotional and resource Model desired behaviors assistance and attitudes Ensure policies and procedures reinforce the new system 11

I NITIATING COMMITMENT : W HAT MAKES A GOOD “C ASE FOR C HANGE ”  Urgency  Believability  Timing  Emotions  Noble purpose  Personalization  Fear  Mutual need  Magnitude  Data & Facts  Relationships  Others? 13 Microsoft Materials

B UILDING THE CASE FOR CHANGE WORKSHEET In completing the worksheet, you will address a number of the key areas that people want to know about and which will help to begin their movement from “Why change?” to “We must change.” Why is what we’re currently doing not working? What is driving the change? What Current State market place, stakeholder, financial, operational, morale, health, leadership mindset, employee, etc., issues are requiring that we shift? How will the business or organization suffer, or how will we suffer if we don’t Costs change? What impact will not changing have on our stakeholders? Competitive advantage? What personal impact will not changing have on you and your team? The board? Where are we going? What will the future look and be like? What will be valued and Future State rewarded in the future? What will not be changing? What will the organization gain? What will we gain as individuals and together? Benefits What will be meaningful to us? How will this change help us succeed? What will motivate us to achieve the future? How will we move ahead? What phase of the change are we in? What specifically is 14 changing? Who will be involved? Who is affected? When will we see changes? How Information on Project will we be kept informed? Adapted from Microsoft materials

C REATING FOLLOWERSHIP : H OW PEOPLE MOVE THROUGH CHANGE Stability Doubt Hope Capability Comfort & Confidence Level  Contentment  Contentment  Change  Denial  Confidence  Comfort  Skill development  Confusion  Satisfaction  Perceived  Connections  Loss competence  Increased skill  More clarity  Blame  Clarity  Increased capability  Training  Incompetence  Relationships  New stability level  Direction  Regrets 15  Security  Fears Microsoft Materials

C REATING FOLLOWERSHIP : W HAT YOU CAN DO Preparing yourself  Assess your own responses to change  Acknowledge your own fears and doubts  Chart gains and losses  Expect resistance from others Helping others from the outside in Helping others from the inside out  Include others in the planning of the  Know that people will process change at different rates changes  Surface and release the fears and  Reconfirm direction, roles, and doubts responsibilities  Get the group to list the stressors  Provide training and experience  Help people to see what’s in it for them  Identify barriers to success  Explore choices  Keep communicating the vision and  Acknowledge departures (losses) and the need arrivals  Clarify roles and responsibilities  Honor the past (e.g., create a group  Provide incentives for desired history) 16  Use Rumor Therapy behaviors  Delay non-essential changes See Appendix: “One Minute” Guide to Managing Resistance to Change;Gains vs. Losses Meeting Agenda Adapted from Microsoft Materials