IBM Global Business Services

Organization Change Framework

May 2006

2006 IBM Corporation

IBM Global Business Services

Business is a Race
Business is Action
To stay in the race, an
organization must
respond by taking the
appropriate action

Otherwise, the
Innovative will pass
you by
2

2006 IBM Corporation

IBM Global Business Services

We cant, in any meaningful

sense manage change,
any more than the captain of
a sloop can change the
direction of the wind. We
can however manage the
actions whereby we cope
with and leverage change

2006 IBM Corporation

IBM Global Business Services

Top 10 Change Barriers

2006 IBM Corporation

IBM Global Business Services

Top 10 Success Factors

2006 IBM Corporation

IBM Global Business Services

Organization Change Strategy Framework Overview

Discrete activities are assembled as needed for the particular change. The framework provides the
overarching program and enablers that skilled practitioners, creatively using technology, craft to fit
the circumstances.

Plan, Align
and Mobilize
Yesterday and Today
Recent performance
business trends
Existing policy,
operating models,
capacity and
capabilities
Change history
External constraints

Vision
and
Commit

Case for change;

including change
trigger
Major technology initiative
Merger or acquisition
Enterprise repositioning

Tomorrow

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Future policy
Future enterprise
goals
Future operating
models, capacity
and capabilities

Benefits delivered
Align
individuals
and teams

Qualitative measures
Quantitative measures
Stakeholder alignment

Enhance and Evolve

2006 IBM Corporation

IBM Global Business Services

Change Lifecycle Phases

Definitions and Components

2006 IBM Corporation

IBM Global Business Services

Vision and Commit

DEFINITION
Create and gain commitment to a new
and compelling vision for the business,
including the realisation that the status
quo is not sustainable.

COMPONENTS
Integrated business and change
vision
Aligned with customer &
stakeholder needs, value
proposition and business strategy
Shaped and underpinned by
enabling technology
Guiding principles and values
End & transition state definitions
Demonstrable leadership
commitment to the vision and case
for change
Defined business benefits

Plan, Align
and Mobilize
Vision
and
Commit

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

2006 IBM Corporation

IBM Global Business Services

Plan, Align, and Mobilize

DEFINITION
Create an achievable program to reach
the desired vision/end state. Align key
stakeholders around the change
program and mobilize the team.

COMPONENTS
Change program strategy
recognizing change history
Change program plan
Program design, including alignment
of existing/new projects and
initiatives
Program plan which incorporates
new initiatives
Program management approach
Program office
Team mobilization plan
Team induction program
Stakeholder involvement and
communications program

Plan, Align
and Mobilize
Vision
and
Commit

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

2006 IBM Corporation

IBM Global Business Services

Design and Implement

DEFINITION
Create and manage the individual
projects/initiatives that will develop the
changes needed to reach the end
state. Work with the business to
ensure an effective implementation/
transition.

Plan, Align
and Mobilize
Vision
and
Commit

COMPONENTS
Integrated change program,
maintaining focus on business
outcomes (includes customer
experience, channels, services,
processes, organization, technology,
facilities)
Project plans and discrete initiatives
Business release/change impact
management including local plans
and change readiness
Implementation and transition
management through to benefits
realization
Issue and risk management
contingency plans

10

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

2006 IBM Corporation

IBM Global Business Services

Enhance and Evolve

DEFINITION
Focus on continuous improvement and
benefits sustainment until a new
change trigger indicates that its time to
refresh the vision and start the next
wave of change.

COMPONENTS
Motivation with the day job
Post-transition support
Continuous improvement program
Balance changes to legacy with
change for future
Managed pace of change
Hand over to the business

Plan, Align
and Mobilize
Vision
and
Commit

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

11

2006 IBM Corporation

IBM Global Business Services

Organization Change Enablers

Definitions and Components

2006 IBM Corporation

IBM Global Business Services

Lead, Communicate and Engage

DEFINITION
Align, engage and mobilize leaders at
every level, with strong emphasis on
consistent communication and on the
need to lead and manage to a new set
of operating values.

COMPONENTS
Establish leadership consensus on
change vision, goals and values
Translate change vision into tangible
actions to drive behavioral change
and realize program benefits
Tailor leadership and coaching
programs to strengthen change
implementation
Create stakeholder management and
involvement plan, enabled by
cascading change sponsorship
Build communications plan based on
common, teachable change vision,
goals, and values
Implement sustainment plan to
imbed change into BAU culture

13

Plan, Align
and Mobilize
Vision
and
Commit

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

2006 IBM Corporation

IBM Global Business Services

Develop Capability and Capacity

DEFINITION
Develop the capability (what the new
organization will be able to do) and
capacity (how much the new
organization will be able to do) to
transition to the new organization and
to deliver the target vision and its
projected business benefits

Plan, Align
and Mobilize
Vision
and
Commit

COMPONENTS
Assess current capability
(knowledge, skills and enabling
tools) and capacity (resources with
requisite skills)
Define future capability and capacity
assessment for new organization
Perform capability / capacity gap
assessment
Develop capability building program
(training, knowledge management,
tools)
Develop capacity building program
(resources and sourcing methods)
Develop capability / capacity
evaluation program

14

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

2006 IBM Corporation

IBM Global Business Services

Design Organization and Governance

DEFINITION
Design the new organization to realize
the vision, deliver results, and create
focus and accountability. Adjust and
streamline governance arrangements
to clarify the accountability for, and
improve timeliness/ effectiveness of,
decision-making.

Plan, Align
and Mobilize
Vision
and
Commit

COMPONENTS
Organization design (both end state
and transition states) for the
business overall, functions and
operations, and the change program
Workgroup and job design
Definition of organizational policies
and procedures
Development of integrating
mechanisms
Governance framework design and
definition including groups, roles,
authorities, timeliness and reporting
Program governance focused on
planned outcomes, scope, risk,
priorities and resources

15

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

2006 IBM Corporation

IBM Global Business Services

Align Individuals and Teams

DEFINITION
Build effective teams to enable
successful transitions as well as
sustain the desired end state.
Resource the new organization.

COMPONENTS
Conduct Team performance planning
Execute Program resourcing
Do Workforce planning and
development (includes job
descriptions, staffing process)
Design and Perform Recruitment,
retention, redeployment, reintegration
Set Incentives and deploy appropriate
Performance Management systems

Plan, Align
and Mobilize
Vision
and
Commit

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

16

2006 IBM Corporation

IBM Global Business Services

Manage Performance
DEFINITION
Identify the appropriate performance
measures for the new organization
and the transition, driven by the
vision, strategy and goals. Measure
the effectiveness of the new
organisation. Measure the
effectiveness of the change /
transition program. Monitor progress
towards achieving the desired
benefits.

COMPONENTS
Align strategic performance
measures and plan for the
organisation, business units, teams
and individuals
Develop recognition and rewards
strategy
Design performance management
system and process
Design value / benefits realization
approach and program

17

Plan, Align
and Mobilize
Vision
and
Commit

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

2006 IBM Corporation

IBM Global Business Services

Transform Culture
DEFINITION
Align an organisations ways of
working (behaviours, values, beliefs)
with its vision in order to develop and
embed an appropriate culture.

COMPONENTS
Confirm vision and values which
shape culture and climate
Perform Culture assessment (as-is,
to-be, external environment, gap
analysis)
Identify appropriate ways of working
and supporting behaviours
Document to be business practice
scenarios & narrative outcomes
Create Culture, climate transition
plans
Integrate Culture change plan into
overall Change Program
Align culture and climate change to
financial value identification and
benefits tracking
Ensure incentive & performance
management system alignment

18

Plan, Align
and Mobilize
Vision
and
Commit

Case for change;

including change
trigger

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Benefits delivered
Align
individuals
and teams

Enhance and Evolve

2006 IBM Corporation

IBM Global Business Services

Organization Change Framework Breakout Topics in Red

Discrete activities are assembled as needed for the particular change. The framework provides the
overarching program and enablers that skilled practitioners, creatively using technology, craft to fit
the circumstances.

Plan, Align
and Mobilize
Yesterday and Today
Recent performance
business trends
Existing policy,
operating models,
capacity and
capabilities
Change history
External constraints

Vision
and
Commit

Case for change;

including change
trigger
Major technology initiative
Merger or acquisition
Enterprise repositioning

Tomorrow

Lead,
communicate
and engage

Transform
culture

Develop
capability
and capacity

Focus on
outcomes
and
benefits
Manage
performance

Design
organization
and
governance

Design
and
Implement

Future policy
Future enterprise
goals
Future operating
models, capacity
and capabilities

Benefits delivered
Align
individuals
and teams

Qualitative measures
Quantitative measures
Stakeholder alignment

Enhance and Evolve

19

2006 IBM Corporation

IBM Global Business Services

Innovation means using both sides of our brains

Left Brain

20

Right Brain

2006 IBM Corporation

IBM Global Business Services

Six Thinking Hats Exercise

Thinking Framework invented in the early 1980s by Dr. de Bono
The Six Thinking Hats represent six modes of thinking and are directions
to think rather than labels for thinking. That is, the hats are used
proactively rather than reactively.

The key point is that a hat is a direction to think rather than a label for
thinking

The key theoretical reasons to use the Six Thinking Hats are to:
encourage Parallel Thinking
encourage full-spectrum thinking
separate ego from performance

21

2006 IBM Corporation

IBM Global Business Services

The Six Thinking Hats Legend

White Hat: Neutral and
objectives, concerned with
facts and figures, calls for
information known or
needed.

Yellow Hat: Sunny and

positive, symbolizes
values and benefits and
why something may work.

Green Hat: Associated with

fertile growth, creativity,
alternatives and new ideas.

22

The method promotes fuller input from more people.

In de Bono's words it "separates ego from
performance

Red Hat: The emotional

view, signifies feelings,
hunches or intuition.

Black Hat: Judgment,

careful and cautious,
devils advocate or
why something may
not work.

Blue Hat: Cool, used to

manage the thinking
process, above
everything else- the
organizing hat.

2006 IBM Corporation

IBM Global Business Services

Break-out #3: Change Enablers Discussion Items

For your enabler:
Lead, Communicate, Engage
Develop Capability and Capacity
Design Organization and Governance
Align Individuals and Teams
Manage Performance
Transform Culture

Draw a picture of the enabler in action

Capture benefits and challenges in words
Provide a best practice description of this element
Is there an organization that does this particularly well??

23

2006 IBM Corporation