27.Systems Change Principles:

Large-Scale Systems Change:
A Five-Phase Process for Envisioning, Planning, Implementing and Sustaining Change

Decomposition of Generic Implementation Model

1.0 Stakeholders and Social Infrastructure

1.1 Identify stakeholders (including “communities of practice”) and analyze stakeholder interests (assuming a mix
of common and competing interests)
1.2 Form representative Design/Implementation Team(s with identified Champions from among leaders in stakeholder groups
(including reciprocal contracting withChampions)

1.3 Identify existing forums and communication channels

1.4 Identify missing or unstable forums and communication channels (gaps inthe Social Infrastructure)
1.5 Targeted chartering and other mechanisms to address gaps in theSocial Infrastructure

2.0 Shared Vision and Strategic Plan

2.1Summarize Current State data/research (in a presentational format) 2.2Develop initial text of potential Shared Vision (facilitated with identified thought leaders) and including vision on substance and vision on the change process

2.3Facilitate single or multiple stakeholder forums to calibrate/adjust the draft Shared Vision

2.4Identify preliminary set of implementation milestones, with associated resources and responsibilities – to form a Strategic Plan 2.5Identify relevant metrics and feedback processes

2.6Calibrate/adjust Strategic Plan based on stakeholder input and identify key domains for negotiations

3.0 Negotiated Change

3.1 Build capability for interest-based bargaining as appropriate
3.2 Facilitate interest-based negotiations among key stakeholders – seeking mutual gains agreements within bounds of regulatory and other
constraints
3.3 Ensure appropriate constituent ratification or calibration of agreements
3.4 Document and “error proof” formal and informal agreements, anticipating potential “disconnects” in implementation

4.0 Implementation

4.1 Launch an appropriate mix of top-down restructuring and bottom-up engagement across relevant forums and channels for communications (with a continuing commitment to avoidsurprises)
4.2 Utilize “Leader as Teacher” interventions to build capability and
foster commitment 4.3 Track relevant metrics, open issues and other key data
4.4 Anticipate “disconnects” inimplementation and ensure appropriate mechanisms to learn from the disconnects in a non-blaming,constructive way

5.0 Sustained Change

5.1 Ongoing feedback, calibration, and incremental adjustment
5.2 Hand-off mechanisms for leadership transitions
5.3 Periodic review and renewal for more substantial adjustments

LaMarsh 4x3 “Managed Change” Model

A. Identify the Change
1.1 ANALYZE THE CURRENT STATE
1.2 DEFINE THE DESIRED STATE
1.3 ASSESS THE DELTA STATE

B. Prepare to Change
2.1 SPONSORS
2.2 CHANGE AGENTS
2.3 TARGETS
3.1 CULTURE
3.2 HISTORY
3.3 RESISTANCE

C. Plan the Change
4.1 COMMUNICATIONS SYSTEM
4.2 LEARNING SYSTEM
4.3 REWARD SYSTEM

D.Implement the Change: Build the Change Strategies and Tactics into an overall change plan

E. Monitor the Change: Watch, Measure and Adapt as the change is changing

Lean implementation strategies

Top-Down “Re-engineering”

Many meanings:
- Range from a pretext forrestructuring and downsizing toa systematic review ofoperations with comprehensiveprocess mapping

Key quote:
-“if it’s not broke, break it”

Roots:
-Roots in private and publicsectors, including “re-inventinggovernment”
-First driven by economic crisisin 1980’s, now seen as aprocess for system change

Archetypical Example:
-GE “workout” process

Bottom-up “Kaizen”

Many meanings:
-Range from suggestion systems(kaizen-teian) to an underlyingphilosophy and a way of life

Key quote:
-“many small improvements buildlong-term transformation capability”

Roots:
-Post WWII Japan, beginning withquality circles (QC), statisticalprocess control (SPC), and just-in-time (JIT) delivery practices
-Increasingly seen from a systems perspective --Total Quality Management (TQM), Six Sigma,Lean Enterprise

Archetypical Example:
-Toyota Production System (TPS)