310 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Exhibit 13.7: Session Follow-up Questionnaire 328 Exhibit 13.8: Training Content: Exercises Used in Organizational Learning Sessions 329 ABOUT THE CONTRIBUTORS 333 OVERVIEW This case study describes the steps that the Massachusetts Institute of Technology’s Department of Facilities is undertaking to transform into a self-perpetuating learn- ing organization. The overarching goal is to create an organization that constructs, operates, serves, and maintains physical space in ways that enhance MIT’s mis- sion to advance knowledge and educate students in science, technology, and other areas of scholarship. Also it is a story about a leader’s vision and courage to build a leader-full organization and bring together customers and representatives from every corner and level of the department to set its strategic direction. DIAGNOSIS AND ASSESSMENT OF NEEDS Most journeys begin with a single step; however, this journey began with two questions: Where’s the plan, and what are people talking about? In July 1993, Victoria Sirianni became head of MIT’s Department of Facilities. Her first act of official business was to review the department’s strategic plan; however, there wasn’t one. Also, during her visits from functional unit to functional unit she learned that there were some very unhappy people; more unhappy people than she expected. Prior to accepting the position of chief facilities officer, Vicky, as she prefers to be called, had been employed by the Department of Facilities for twenty years and worked in several capacities within the discipline of space planning. Nevertheless, her finding surprised her. Her new goal was to find the answers to these two questions and do something about them. Thus began the transformation of MIT’s single largest administrative department. Soon after Vicky accepted her new position, but unknown to her at the time, the Institute was beginning to launch business process reengineering efforts in several main operational areas as a means to simplify convoluted work processes and save money. Facilities was selected to be one of the target areas, so to prepare, Vicky encouraged members of the department to learn as much as they could about reengineering. Although sidetracked by the rumors of impending reengineering for a few months, Vicky asked Laura Lucas, now learning and performance coordinator, to survey everyone within the department and determine the basis for the cart_14399_ch13.qxd 10/19/04 1:15 PM Page 310 MIT 311 unhappiness. The questions were direct: How are we communicating internally, do you feel that your ideas and suggestions are valued, and do you believe that you and your coworkers perform to the highest standard of excellence? The answers were just as direct: Our biggest problem presently is that [name deleted]’s autocratic style has led to a breakdown of communications and mis- trust between workers and line supervisors, there is nothing that could be said to change this so it won’t matter, and everyone should do their fair share of the work. Whether these responses were from people lashing out at their supervi- sors and workmates or those reacting to the uncertainty of reengineering, it was easy to conclude that something was wrong. Fortunately, there were many pos- itive comments. For example: I’m proud to support a fine institution such as MIT, I’m proud that it’s in the midst of real change and that we may be able to make this a high-quality energized environment, and Facilities is a friendly place to work. Whether the problems were real or perceived they had to be addressed. To this end, Vicky, Laura, and Joe Gifun, currently assistant director of Facilities for infrastructure renewal and special projects, imagined that Facilities employ- ees could take control of the future. Therefore, they pulled together a large num- ber of people representing every aspect of the department, took the information collected by the survey, combined it with information from other initiatives already under way, and used it to write the department’s first strategic plan. The word was sent out asking for people to come forward to participate in writing the plan. Fifty volunteers were distributed into one of four focus groups: communications; empowerment and accountability; leadership, man- agement, and fairness; and recognition. Each team included a mix of unionized service staff, administrators, architects, engineers, computer experts, adminis- trative assistants, and maintenance, grounds, and custodial service supervisors. The goal was to make each focus group as cross-functional as possible. Each group was charged with analyzing the survey responses and determining the strengths, weaknesses, opportunities, and challenges for the particular focus area and to recommend concrete action items. All of the work was compiled into one document and the strategic plan was published and distributed to all members of the department in December 1994. As one of the outcomes of the strategic plan was the desire and necessity for more training, Facilities launched three departmentwide training efforts: com- munications, teamwork, and diversity. Also, Facilities built a mechanism to ensure linkage between learning and performance and worked with human resources to determine competencies for each job classification. It was at this stage that Laura restructured Facilities’ training department to focus on learning and performance. The Strategic Leadership Team (SLT) was formed soon after the creation of the strategic plan and was a collective of several formal leaders but mostly cart_14399_ch13.qxd 10/19/04 1:15 PM Page 311 312 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE informal leaders. The SLT comprised a diverse group of people from all walks of department life and several customers who came together to express their frustrations and ideas about current practices and the future of the Department of Facilities. The SLT also acted as an advisor to Vicky and her directors and as a sounding board for new ideas. Members of the SLT operated under two rules: keep a departmentwide strategic focus and maintain the spirit of the original strategic plan and its amendments. There were fifty-six action items listed in the strategic plan, and much progress has been made. Exhibit 13.1 shows the status of the fifty-six action items in 1999 and again in 2002. Of particular interest is the action item that is labeled “in progress”; it calls for the implementation of an external and inter- nal communications program. Since 1994 several communications programs and processes have been put into place. Although some have had a moderate level of success, complete success has been elusive. Facilities has yet to deter- mine the balance point between level of service (the information the inter- nal and external customer needs and the form in which it is delivered or presented) and cost. Facilities defines the internal customer as the Facilities employee who functions as a customer when requesting services from another team or functional unit, such as technical assistance on a project, training, and building-system repairs. The external customer is any member of the MIT community who is not a Facilities employee. MAINTAINING THE SPIRIT AND SETTING THE TONE People say that there needs to be full support “at the top” for successful growth and change in any organization. MIT’s Department of Facilities was very lucky to have a leader who was committed to making a difference within the depart- ment and had the vision to put the appropriate pieces together to make that happen. The department is a team-centered environment where people can express ideas and work together at resolving issues, formulating policy, and, yes, developing a strategic vision for the department. The department respects independent thinking and believes in the reengineering concept of empowering people to get the job done and done well. To do so, one needs to have the appropriate tools, resources, and the ability to learn from mistakes. Under Vicky’s leadership, the department began to use teamwork as a means to discuss alternatives, make decisions, and resolve issues as they came up. These teams worked both within and across established service areas— operations, utilities, design and construction, capital projects, finance and accounting, administration, systems engineering, and infrastructure—where each service area is led by a director. From 1998 to summer 2002, three standing teams supported Vicky, the directors, the operational leadership team, and the cart_14399_ch13.qxd 10/19/04 1:15 PM Page 312 MIT 313 strategic leadership team. The operational leadership team has transformed over time and consists now of functional unit managers; it provides a forum for the managers to discuss operational issues that have an impact on all units and to update each other on current and upcoming activities. The strategic leadership team has transformed as well, and Vicky and the directors have adopted its format, investigatory function, and team-based leadership model. Over the course of time, Facilities employees experienced the value of teams first-hand; therefore, individual teams would be formed for specific purposes and in many cases without formal permission. These ad hoc teams, whether official or unofficial, became a breeding ground for informal leaders and a tool used by informal leaders to advance an idea. Informal leaders came from all pay categories. They were supervisors, managers, unionized service staff, adminis- trative assistants, support staff, and even directors. In many cases, teams have made departmental decisions and developed and implemented major processes. This practice created an environment of openness and enabled cross-functional discussions to help individuals understand that most issues were important to all, not just to an individual’s service area. The Facilities division maintains an open environment that can constantly refresh itself. Facilities employees understand change and the need to develop a culture that reflects upon itself and continues to enhance the lives of its teams, leaders, and individuals. Formal and informal teams exhibit much pride, engage their members, and produce high-quality work. Teams are the place where Facilities looks for emerging leaders. INTERVENTION Although some previous initiatives had failed and others lived out their useful lives satisfying their intended purposes, one can readily observe that Facilities is a very different organization now. Nevertheless, Facilities, like any organization that desires to thrive in the marketplace, must provide its customers with higher value than their competitors, in this case facility management and maintenance firms. Facilities, like its competitors, must at the very least keep pace with the changing technology in building systems, such as those that monitor and control the interior climate of buildings and fulfill, at least minimally, the expectation of the MIT community to provide more service and deliver it much faster than it has ever been. So the need for learning continues but at a much higher devel- opmental level. The current goal is to help Facilities employees become better thinkers so that they will have the skills to create and sustain a self-perpetuating learning organization. To achieve this goal, Facilities sought the help and expe- rience of Dr. Carol Zulauf, a professor of organizational learning at Suffolk Uni- versity. Dr. Zulauf, consulting partner, Pat Kennedy Graham, director of administration, and Joe Gifun invested much time in frankly discussing all that cart_14399_ch13.qxd 10/19/04 1:15 PM Page 313 314 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE has happened, good and bad, within the Department of Facilities over prior years to ascertain its current strengths and weaknesses and recommend a course of action to Vicky. The primary methodology used during the planning discus- sions was guided brainstorming. Once ideas were recorded, they were clarified if necessary and challenged. The result was to develop a series of learning mod- ules introducing Peter Senge’s five disciplines. The first module was introduced to the assistant directors and members of the operational leadership and strate- gic leadership teams and focused on systems thinking. The second module, per- sonal mastery, was offered to informal leaders, whether or not they were members of a current team, and others who had shown the initiative to lead. Highlights of these programs are presented as follows. Program Design Stage The strategic goals and priorities that were developed and introduced by the operational leadership team encompassed the following: • Improve customer service • Enhance and protect MIT’s assets • Design, build, and deliver on the capital projects • Continuous improvement in core processes • Meet MIT’s commitment to the environment • Develop individual and organizational capabilities Dr. Zulauf, working very closely with two of the key people from the Depart- ment of Facilities, focused on two subsets within the “develop individual and organizational capabilities” strategic goal: (1) develop, adopt, and implement new HR practices and (2) renew learning and performance effort. When the consulting partner first started to envision the interventions for this project, using these strategic goals and priorities as her driving force, she had as her overall framework the organizational and individual capabilities as defined by the Balanced Scorecard, developed by Dave Ulrich and others in Results-Based Leadership. This framework included, from the organizational per- spective, considering the capabilities for learning and innovation, working toward “boundary-less-ness,” or in the language of the Department of Facilities, working cross-functionally, and building in accountability. The employee perspective encompasses increasing performance by developing and leveraging employee capabilities and intellectual capital. The results, over time, would include new best practices within Facilities and a positive impact on Facilities’ internal and external customer base. With the focus on developing organizational and employee capabilities as the overall framework for designing the initial learning and performance initiative, the consulting partner then took this overall framework to the level cart_14399_ch13.qxd 10/19/04 1:15 PM Page 314 MIT 315 of using organizational learning capabilities to develop a culture of learning for leaders within the Department of Facilities. The design of this leadership development system was linked directly to the strategic goals and priorities initially promulgated by Facilities. The critical success factors encompassed two guiding principles: • That the capacity to grow and learn will transform our systems • That learning is fundamental to leadership The consulting partner believes in understanding a system before imple- menting an intervention or envisioning the dynamics of that system. Exhibit 13.2 illustrates those key dynamics. Having a systems perspective increases the ability to view how an interven- tion or change will affect the system and what the outcomes and consequences may be. Developing the systems perspective was the cornerstone of the program design and implementation. Overall Competency Models Two significant models have been used to guide the development of the ses- sions at MIT. One is from Peter Senge, which shows the organizational learn- ing capabilities as the overarching disciplines; the other competency model, developed by Warner Burke, highlights the specific competencies that this con- sulting partner has directly linked to the disciplines of organizational learn- ing. Model 1 and Model 2 are displayed as Exhibit 13.3 and Exhibit 13.4, respectively. Program Implementation The specific content of this program focused on developing leaders to envision change within Facilities and to embrace the systems perspective in order to have the participants start to see how they are part of the whole system. To quote Kathleen Dannemiller, organizational change expert, “If you see yourself as part of the system, you are on the path to making real change” (Linkage OD Summit, October 2001). The agendas for the first two training sessions are shown as Exhibits 13.5 and 13.6, with the actual training content shown as Exhibit 13.8. The critical elements of this implementation hinged on the purposeful link- age to the strategic mission of the department through an exercise in which par- ticipants started by envisioning their department in five years time, envisioning in detail how it operates in a healthy, productive, sustainable way. A key ques- tion for this exercise was: What was it you and others did back in 2001 to achieve this remarkable transformation? The participants became engaged and energized as they started to design their future direction. From there, we focused cart_14399_ch13.qxd 10/19/04 1:15 PM Page 315 316 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE on the influence of systems and systemic change, which got the participants involved in a new way of thinking about their organization and the impact their decisions have on each other. The Journey Continues This first session set the stage for continued work in building a learning orga- nization and developing the future leaders within Facilities. Our second session focused on developing personal mastery with its foundational premise based on this thought: The missing link in leadership development is growing the person to grow the leader. —Kevin Cashman (1998, p. 18) Other key thoughts: • We tend to view leadership as an external event. We see it as something people do, instead of an expression of who we are. • It is our being in action. • Our being says as much about us as a leader as the act of leading itself. • As we grow, so shall we lead. The different sections in this personal mastery session concentrated on the participants identifying the creative tension within themselves and their organizations. Training Methodologies and Tools In both sessions, different methodologies and training tools were employed to stimulate maximum participant engagement and learning: causal loop dia- gramming for the systems thinking session, hands-on exercises, small-group work, video clips, dialogue sessions, guided presentations, and exercises to continue after the formal in-class work. Session 2 also set the stage for continued development and follow-up by implementing two specific steps to reinforce learning after the program. One incorporated the practice of keeping a journal in the spirit of encouraging the participants to begin the process of recording any key learnings, insights, lessons learned, and “do differentlies” that they have experienced (for definition of “do differently,” please see Exhibit 13.8). In addition to writing about these experiences, participants were also encouraged to write about how these insights, lessons learned, and so forth affected or changed their work practices or interactions. A follow-up was undertaken with each participant six to eight weeks after the session to find out how the session influenced participants’ interactions and reflections as leaders. cart_14399_ch13.qxd 10/19/04 1:15 PM Page 316 MIT 317 Leading Indicators of Performance The performance measurement focuses on the leading indicators of performance. For example, leading indicators of developing leadership and organizational learning capabilities are building new relationships cross-functionally; enhanc- ing customer interactions, both internally and externally to Facilities; increasing the communication flow within the department; and linking our progress and results back to the strategic goals already delineated by MIT’s Department of Facilities. Feedback and Follow-up from Our Participants. One participant from the first session on developing leadership capabilities gave feedback stating that, “You did a great job integrating examples from the morning session [which was on delineating strategic goals] into your presentation.” Another participant from the first session said, “The content is very useful as it causes one to be intentional.” How the consulting partner is interpreting that comment is that once something becomes part of our conscious thought process, or intentional, then one is on their way to making (behavioral) changes. For Session 2, we implemented two measures: a written evaluation right after the session and a follow-up questionnaire six to eight weeks later. At the con- clusion of the session, participants were asked, on a scale of 1 to 5, with 5 being excellent, please rate the following: 1. Seminar content—relevance, timeliness 2. Facilitator—knowledge of subject, enthusiasm, teaching style, preparation 3. Seminar materials—clarity, appropriateness 4. Seminar exercises—variety, link to subject area 5. Additional comments, thoughts, and ahas Feedback included such comments as • Worth a follow-up • Exercises were excellent • Keep the momentum going by holding more sessions • This session will help me plan my future • This session made me think about things I hadn’t thought about before • I think this is a great class for everyone to go to, also may open a lot of eyes • Well thought out exercise on how to look deeply at ourselves, goals, visions, and limitations cart_14399_ch13.qxd 10/19/04 1:15 PM Page 317 The questionnaire, shown as Exhibit 13.7, was sent to the participants six to eight weeks after the session. Behavioral and Attitudinal Changes Some very powerful shifts have occurred in how people view and interact with others. Some examples are shared below: I do find myself trying to be more authentic in my interactions with others. The question in my mind, Why should I care? was transformed to Why do I care? As a result, I’ve been able to give feedback to people who don’t directly report to me because I care enough to take the risk. The video [on Personal Mastery that was shown in Session 2] touched me at the core. It shook me to ask, What is my signature? It also must be underscored that real change comes about in seemingly sub- tle ways, yet has a powerful impact on a relationship or how people interact with each other. The following example is another peek into how a shift occurred between two coworkers as a result of the exercise in Session 2 to iden- tify our conscious and shadow beliefs. In the breakout session, a coworker and I found some commonality in “trying to be perfect” [which they identified as a shadow for themselves] and not accom- plishing more because the product we work on isn’t quite as good as it could be. Since the seminar, we’ve been able to exchange some “not-so-perfect” reports but good enough to suit the needs. When the coworker asked me for the reports, he said, “It doesn’t have to be perfect . . .” I knew what he meant. Also, regarding the Personal Mastery exercise that asked participants to iden- tify their “Word-in-a-Box,” one participant said, Since the class, I have become mindful of my “word in the box” as well as the things that I need to change in order to incorporate “my word” into a variety of environments. One last, yet again very powerful comment from one of the participants who wants to create a culture of learning, creativity, and growth within this organization: I want to create an organization that anticipates learning opportunities and constantly asks the questions, Why and why not? Significant Shifts in Organizational Practices The Department of Facilities does not have the mechanisms in place at this time to quantitatively determine the return on investment on learning and organizational change efforts. Nevertheless, the following comparisons may 318 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE cart_14399_ch13.qxd 10/19/04 1:15 PM Page 318 MIT 319 help the reader understand the magnitude of the change that has occurred following the implementation of the strategic plan (see Exhibit 13.1 for the strategic plan). INSIGHTS AND REFLECTIONS Facilities has taken many steps along the road to becoming a learning organi- zation; however, what needs to be done to make certain that the journey results in success? Employ Senge’s discipline of personal mastery, specifically creative tension, and focus on the gap between current reality and vision. Within this gap are the things that need to be implemented, the issues that need to be resolved, and the questions that need to be answered. For example: • How does Facilities build an organization that learns from its experiences and records these experiences in a way that is accessible to all employees? Some functional units have adopted the practice of conducting after-action reviews following select events, such as annual commencement exercises or difficult projects. Participants find the after-action review process beneficial, so a goal is to teach more people to perform them. The Department of Facilities maintains a central archive of all construction documents; however, it needs to find the means to capture learnings and information about nonconstruction-related studies, projects, and events. At this time, these records are kept by individuals and are not readily accessible to others unless the inquirer knows or learns that a specific individual has the information. • Employees need to have the means and training to communicate effectively between all levels of the organization. Facilities employees have access to many communications and customer service courses whether they are conducted by the Facilities Learning and Performance Center or HR’s Organizational and Employee Development instructors; however, higher levels of interpersonal and presenta- tion skills are necessary for the future. Therefore, more training is necessary. • Capitalize on the power of cross-functional teams. Although Facilities has experienced great success with cross-functional teams, more people need to learn the skills required to be good team members. • Link learning to performance at all levels. The discussion of learning goals and achievements is encouraged in annual performance appraisal meetings; however, the practice needs to be more widespread. Implement the steps nec- essary to help employees become stewards of a $3 billion physical asset. To help everyone make decisions that enhance the learning, research, and business aspects of the Institute and seek out and rectify problems before they are able to adversely affect MIT’s building systems and mission. Facilities employees must possess the skills to work more effectively and efficiently with complex cart_14399_ch13.qxd 10/19/04 1:15 PM Page 319 . 316 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE on the in uence of systems and systemic change, which got the participants involved in. learning and organizational change efforts. Nevertheless, the following comparisons may 318 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE