DESIGN AND IMPLEMENTATION 445 Table 19.7: Content That Was Most Emphasized in Training Initiatives, in Order of Frequency of Use 446 Table 19.8: Specific Content Most Emphasized within Training Interventions, in Order of Percentage Frequency 447 Table 19.9: Key Factors for Leadership Development and Change, in Order of Frequency of Use 447 Table 19.10: Other Key Factors Indicated by Best Practice Organizations 448 EVALUATING THE OD/HRD INITIATIVE 448 Table 19.11: Evaluation Method Usage 450 Table 19.12: Positive Results of Initiatives, in Order of Percentage Frequency 450 SUMMARY 450 NOTES 451 COMPANY AND INITIATIVE BACKGROUND The organizations appearing in this book vary in the number of employees, rev- enues, and industries. Industries represented throughout this book are aero- space, consulting services, consumer products, electronics, financial services, higher education, hospitality and restaurants, information technology, manu- facturing, and telecommunications. Respondents come from different divisions, including commercial services, corporate, facilities, human resources, manu- facturing, and science and technology, among others. BUSINESS DIAGNOSIS AND ASSESSMENT The greatest compliment that was ever paid me was when one asked me what I thought, and attended to my answer. —Henry David Thoreau 1 Prior to embarking on any initiative to change some aspect of organizational culture, each organization engaged in diagnosis, using a customized needs assessment to further determine the most prudent course of action. The initial step of assessing guarantees that initiatives and interventions are well thought out and planned. Needs assessment provided organizations, its leaders, 440 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE cart_14399_ch19.qxd 10/19/04 1:20 PM Page 440 employees, and customers the opportunity to uncover specific issues and perspectives on change. Diagnosis for our best practice organizations considered the increasing num- bers of competitors from a growing global marketplace, fluctuating economic conditions, and the rise and fall of industries. Another challenge organizations are facing is the realization and acknowledgement of the importance of cus- tomers in their decision-making processes and potentially a more important stakeholder—the employee. Best practice organizations used a variety of methods to measure the need for their initiatives. These methods ranged from observation of work practices and employee behavior to more concrete and less subjective measures such as sur- veys, focus groups, and performance appraisals. The later methods helped reduce the number of alternate hypotheses that were made by the program designers and also served to reinforce the perceptions of senior management and program designers’ use of observation techniques. Surveying and appraisals took the form of several instruments in the assessment phase, including 360-degree assessment, multirater assessment instruments, and various individual assess- ment instruments. The diagnosis and assessment phase of the best practice leadership develop- ment and change programs proved to be an excellent method of gaining support and marketing the initiative. By better understanding the learning and change needs of participants, organizations became more knowledgeable and more able to adapt to the changing needs and demands of its participants and employees. The results of the assessment instruments often formed the basis of the training programs and other specific company change initiatives. Assessment methods in the “Other” category ranged in depth of diagnostic techniques from financial performance to quality indicators to employee turnover to and customer feedback to comments from board members. CONCLUSION 441 Table 19.1. Top Five Reasons Organizations Made the Business Case for the Initiative, in Order of Frequency Business Case Frequency Productivity needs 1 Competitive pressures 2 Consumer needs 3 Growth 4 Corporate vision 5 cart_14399_ch19.qxd 10/19/04 1:20 PM Page 441 RESISTANCE TO CHANGE You have to have confidence in your ability, and then be tough enough to follow through. —Rosalynn Carter 2 In thinking about the forces of change—technology, economics, competition, social and cultural, and the changing workforce, including diversity and skills levels—it seems that every organization is in a constant state of change. One of the most challenging obstacles to overcome in any organizational transfor- mation effort is the resistance encountered during change. Resistance can be due to any combination of factors, including psychological, technological, or cultural fears, security or economic concerns, or fear of the unknown, to name a few. Of those who responded, the most prevalent obstacles to implement- ing the initiative were difficulty in gaining consensus from disparate parties (40 percent of respondents) and maintaining that managers are accountable for following through with action items (33 percent of respondents). Survey data also showed that 27 percent responded to having difficulty with each of the following items: implementing change in different regions of the world, achieving project sponsorship, assisting employees in applying new tech- nologies and applications, and others, including continued learning and sus- taining the focus on the initiative. All organizations reported some type of resistance. 442 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Table 19.2. Assessment Methods by Frequency of Use Assessment Methods Frequency of Use Observation 1 Surveys 2 Interviews 3 Focus groups 4 Meetings 5 Performance appraisals 6 Other 7 Survey box/opinions 8 cart_14399_ch19.qxd 10/19/04 1:20 PM Page 442 REDUCING RESISTANCE You cannot shake hands with a clenched fist. —Indira Gandhi, 1982 3 Although resistance is often viewed as negative, it was often viewed positively by our best practice organizations to help to guide the design and development of the leadership development and change initiatives. Employees presenting opposing viewpoints, or what some call “pushback,” were instead perceived as a sound-board and sometimes as a “balancing system” for the organization. Of course, a critical mass of supporters are necessary for any change initiative. The challengers to the system, however, have proven to be important in balancing systems that are too synchronous or closed in their decision-making processes. Challengers serve to clarify and bring more awareness of the initiative to the organization. It was proven through our best practice contributors that chal- lengers are healthy to the system in this way. Employees need to be reassured that positive change is not something to fear but instead something to be embraced for the organization. As described by Richard Beckhard in his model for resistance First steps (F) ϫ (multiplied by) Vision (V) ϫ Dissatisfaction (D) Ͼ (is greater than or overcomes) Resistance (R) It is therefore important to have stable and visible senior leadership that is sup- portive of the changes taking place, a clear picture of what is going to be accom- plished as a whole system, step-by-step approaches to achieve change, and a clear understanding throughout the organization of the dissatisfaction, so that the entire organization is aware of what needs to be changed for the greater good. CONCLUSION 443 Table 19.3. Types of Resistance Encountered, in Order of Percentage Frequency Encountered Types of Resistance Frequency Fear of change, the unknown, and loss of control 1 Time constraints 2 Negative reaction to “soft skills” training 3 Negative reaction to failed prior initiatives 4 Sense of mistrust 5 cart_14399_ch19.qxd 10/19/04 1:20 PM Page 443 Because of the need for consistency in senior leadership support, we asked our contributing organizations which ways organizational leaders showed sup- port for the initiative. Results indicated that leadership makes significant attempts and gestures to model behavior, quell fears, and work with funding sources. The organizations within this book clearly make the choice to treat people with dignity, understanding, and respect while balancing organizational needs and objectives. And they are aware that the truth of one individual is not nec- essarily “the Truth but simply one person’s wisdom. Organizations in this book clearly understand that employees are adult learners with various and diverse positions, needs, interests, learning styles, personality styles, levels of intellec- tual development, and thinking styles (see Table 19.6). 444 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Table 19.4. Top Champions of Change in the Companies Initiative, in Order of Percentage Frequency Change Agents Frequency (%) President and chief officers 73 Senior executives 60 OD, HRD, training, strategy, implementation team 33 Entire organization 13 Driven jointly by managers 7 Table 19.5. Top Critical Success Behaviors of Senior Leadership for the Initiative, in Order of Percentage Frequency Behavior Frequency (%) Allocates funds for the initiative 93 Models behavior consistent with strategy 73 Integrates initiative into strategic plan 60 Facilitates education or training 47 Participates in education and training 73 Articulates case for change 67 Ties compensation to initiative 27 cart_14399_ch19.qxd 10/19/04 1:20 PM Page 444 DESIGN AND IMPLEMENTATION Imagination continually frustrates tradition, that is its function. —John Pfeiffer Organizations are beginning to recognize the need to integrate their initiatives into the existing culture and environment of the company. There is also a greater awareness seen in this best practices book than others of the human factors involved in championing or enabling change. From considering the employee as customer to being more aware of client input into internal systems, there appears to be a new emphasis on people-centered initiatives. The mention of work-life balance as an important initiative for implementing change reflects the development of appreciation for employees. In addition, the overwhelming sup- port for leadership development programs may reveal the importance of demon- strating a willingness to develop effective managers rather than allow poor management to negatively affect productivity, employee morale, and retention. Some interesting remarks in the “Other” category also related to effective communication included raising and resolving issues; faster decision making; increased alignment; commitment to shared purpose; courage; motivation; knowledge of organizational structure, operations, products, and services; and Sensei (ability to teach and transfer knowledge to others). Following the proven wisdom that there must be buy-in and commitment from senior leaders, the majority of organizations indicated presidents, chief officers, and other senior executives as top champions of change. What is rela- tively new is the entire organization or “whole system” as a champion of change. These data acknowledge that it is not just top-level management, but all employees who play an important role in enabling change. CONCLUSION 445 Table 19.6. Challenges in Gaining Consensus During and for Best Practice Organizations’ Initiatives, in Order of Frequency Ranking of Frequency Organizational Understanding of Understanding Diverse interests, positions, and needs 1 Diverse thinking styles 2 Different levels of intellectual development 3 Different personality styles 4 Different communication skill-levels and styles 5 Diverse learning styles 6 cart_14399_ch19.qxd 10/19/04 1:20 PM Page 445 446 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Table 19.7. Content That Was Most Emphasized in Training Initiatives, in Order of Frequency of Use Teaming, teamwork 1 Customer service 2 Ethics and integrity 3 Giving and receiving feedback 4 Results-based decision making 5 Coaching 6 Business acumen 7 Emotional intelligence 8 Innovation 9 Systems thinking 10 Building networks and alliances 11 Diversity (race, ethnicity, thinking styles, or all forms) 12 Financial acumen 13 Productivity 14 Sales 15 Other 16 Stress management 17 Consensus building 18 Diversity (specifically race or ethnicity) 19 Ethics and integrity were indicated by nearly half of the organizations as being an area of emphasis in training programs. Data around the need for ethics and integrity training has remained consistent throughout all of our best prac- tice research. Results-based decision making as training content indicates a new level of accountability in making decisions. Coaching, emotional intelligence, and giving and receiving feedback all seem to demonstrate the desire to relate and communicate more effectively with others for more enabled and func- tional workplaces and teamwork, as well as faster decision making and an emphasis on profitability, sales, and improvement of relationships in the work- place for increased retention. The top methods for the implementation of leadership development and change varied from results-driven practices for learning and transferring learn- ing on-the-job to the kind of interactions and experiences of leaders throughout all levels of the organization. Our best practice companies indicated a diverse cart_14399_ch19.qxd 10/19/04 1:20 PM Page 446 CONCLUSION 447 Table 19.8. Specific Content Most Emphasized within Training Interventions, in Order of Percentage Frequency Table 19.9. Key Factors for Leadership Development and Change, in Order of Frequency of Use Key Factor Frequency of Use Action(able) learning 1 Exposure to senior executives 2 Increasing awareness 3 Experiential learning 4 360-degree feedback 5 Working from core individual values and vision 6 Commitment to corporate vision and strategy 7 Simulation-based learning 8 Group interventions 9 Visioning sessions 10 Internal case studies 11 Modeling 12 Whole-scale interventions 13 Scenario planning 14 Cross-functional rotations 15 Assessment centers 16 Organizational or corporate indicator models 17 Other 18 Content Frequency (%) Teaming, teamwork 73 Giving and receiving feedback 53 Results-based decision making 47 Ethics and integrity 47 Customer service 47 Coaching 47 Innovation 33 Business acumen 33 Emotional intelligence 27 cart_14399_ch19.qxd 10/19/04 1:20 PM Page 447 set of implementation tactics that included whole-scale interventions, simulation-based learning, and experiential learning that form the foundation for effective learning. By far, action learning led the way in the most popular form of learning, because of its emphasis and ease of measurement. Key factors in the “Other” category included such practices as storytelling and sustaining a leadership change culture through consistent communication and common language for positive cultural change throughout the organization. When asked what other remarkable key features that organizations leveraged for the success of their leadership development and change program, our best practice organizations indicated several practices worthy of noting: EVALUATING THE OD/HRD INITIATIVE It is never too late to become what you might have been. —George Eliot 4 Although the evaluation stage is arguably one of the most important compo- nents of the leadership development and change process, it is often not given the attention it deserves. Beckhard and Harris (1977) defined evaluation as “a set of planned, information-gathering, and analytical activities undertaken to provide those responsible for the management of change with a satisfactory assessment of the effects and/or progress of the change effort.” 5 Nearly all com- panies use various systems to evaluate the effectiveness of the OD initiative. 448 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Table 19.10. Other Key Factors Indicated by Best Practice Organizations • Eight-week follow-up on action plans • Leadership development training, employee behavior standards, measuring the important things, accountability at all levels, communications at all levels • Shared ownership of ideas, trust individual and group expression and improvisation • Dedicated internal coaches to participants • Cross-functional strategic leadership teams • Use of informal opinion leaders identified through survey and targeted behaviors for change • Personal growth and behavior/learning plan and written contract; postprogram reassessment nine to twelve months following participation • Development of a leadership strategy that is aligned with and helps drive the business strategy • Building of effective networks and thinking without boundaries cart_14399_ch19.qxd 10/19/04 1:20 PM Page 448 However, the subject of measurement can vary from one company to another, as well as the methods in which evaluation can be taken. Organizations that participated in this best practice book used five methods of implementing evaluations. The first evaluation method used in our study was behavioral change evaluation. This method measures the gap between specific behaviors before and after the intervention. Although intervention can improve desired dimension, it can also help in eliminating undesired behavior. Therefore, the gap can be positive or negative. The method is well implemented in the frame of routine performance appraisal processes, whereas previous evaluation can be used as a base line for comparison. The main contribution of this method is by its ability to measure visible behaviors, which have a direct relationship to performance. The second type of evaluation was organization assessments, surveys, and tracking. This method can be conducted during the intervention (a formative base) or immediately after the completion of the inter- vention (summative base). The format of this method is based on paper or computer tools that collect information against specific questions. Although not found in our study, evaluation can also be conducted in a longitudinal base. Longitudinal evaluations are conducted after a specific time has passed after the completion of the intervention. This method can add to the measure of a time perspective. 6 The third evaluation method used was return on investment (ROI) calcula- tions. Although not always manageable to calculate, several of the companies were able to measure the results against the cost of investment in their initia- tives. When conducted, this method serves as a meaningful tool that has the benefit of connecting the initiative to the business lexicon. The fourth evalua- tion method was results evaluations. This method measures the effect of train- ing on achieving organizational goals. It is most effective when the initiative aims to achieve specific and measurable goals. The fifth method is based on feedback sessions. This method can be structured around specific questions or as an open discussion. It has the advantage of receiving direct and immediate feedback. In our study, feedback sessions were conducted on both a formative and summative basis. The table below presents the ranking of usage of each of the five evaluation methods by best practice organizations in the study. The survey results also indicated that although the frequency of evaluation is varied according to the unique characteristics of every initiative, most initia- tives were measured at least twice a year. This best practice book was built on the premise that organizations achieve measurable results from their initiatives. We asked our best practice organiza- tions to indicate what kinds of positive results their initiatives had. Results in this category were clearly in the areas of organization effectiveness and achieve- ment of business strategy and objectives. These objectives varied from cost CONCLUSION 449 cart_14399_ch19.qxd 10/19/04 1:20 PM Page 449 . others, including continued learning and sus- taining the focus on the initiative. All organizations reported some type of resistance. 442 BEST PRACTICES IN LEADERSHIP. important role in enabling change. CONCLUSION 445 Table 19.6. Challenges in Gaining Consensus During and for Best Practice Organizations’ Initiatives, in Order