Why Influencing Change?

Why Influencing Change?

Today’s Supply Chain professionals are facing numerous, varied and complex changes which often occur simultaneously.  Therefore, to be an effective Supply Chain leader, we must be good at influencing change.  We spend a tremendous amount of our time trying to influence the behavior of others – whether it’s up the organization with leadership, down the organization with our direct reports, across the organization with peers or internal stakeholders or outside the organization with customers or suppliers, or in the community, with friends and family.  When you think about it, leadership is really intentional influence.

The problem is we – individuals and organizations – are not very good at it.  An Arthur D. Little study reports that 85% organization change efforts fail to meet quality cost or timing goals.  Deloitte’s Global CPO Survey for 2014 found that “Some 68 per cent [sic] of respondents still describe their internal influence as ‘mixed‘” meaning that there are significant missed opportunities.  The Corporate Executive Board reports that being an Influencer is one of only six behavioral competencies that set strategic procurement staff apart.  Similarly, University of Tennessee’s 2012 white paper entitled “Skills and Competencies That Supply Chain Professionals Will Need” reports that “Inspiring and Influential Leadership” is one of five critical skills.  We must get good at influence!

There is a huge cost if we fail at this challenge.  We risk the vanishing ROI as our project misses quality, cost or timing goals.  There is the lost opportunity cost from the project we neglected while pursuing the failed initiative.  What is the cost of our damaged reputation with leadership, internal stakeholders, customers and suppliers when we fail to influence change?  Since no one likes working on a failed project, deteriorating morale can easily result in regretted turnover.  Finally, there is organization cynicism.  We’ve all heard it: “This is another program of the month.  If I just sit tight, this too shall pass.”  When this attitude becomes pervasive you have organization stagnation which no business can afford.  Unfortunately, research shows that fewer than one in eight workplace change efforts produces anything other than cynicism.

Traditional change management has failed to deliver the degree, speed or sustainability of desired changes.  Why is that?  There are several reasons.  Traditional change management is very project management oriented, focusing on only the tip of the iceberg – things like strategy, systems, process and structure.  While all of these considerations are important, they are insufficient to drive the desired change.  They fail to focus on what’s below the waterline which includes culture, norms and status quo behaviors – all of that organization resistance that undermines and impedes our change effort.  Organization change is really just the sum of changes in individual’s behavior, and that is the neglected area of opportunity.

For most failed change efforts, there is a conspiracy of causes and few of us have a systematic way of even thinking about this fundamental challenge.  We identify one or two causes of resistance and look for a “silver bullet” to tackle them.  Change agents have their favorite strategies to combat resistance such as more communication or training.   The reality is that we typically underwhelm an overwhelming challenge.

For any change to take place an individual asks themselves two questions: 1. Is it worth it (motivation)? and 2. Can I do it (ability)?  Influencing Change training, based on the New York Times bestseller, Influencer, focuses on changing individuals’ behavior utilizing a systematic framework for first diagnosing causes of resistance, and then strategizing how to both motivate and enable change.  It also equips the learner with skills and strategies to be successful.  For example, we tend to rely heavily on verbal persuasion to spur personal motivation.  Unfortunately, this is notoriously ineffective.  When we encounter resistance, we often share more information, putting people into a PowerPoint coma where all they hear is “wha, wha, wha, wha, wha”.  It is the equivalent of talking louder when a person who speaks a different language doesn’t understand.  Instead, we should be seeking Direct or Vicarious Experiences which help people to connect to values they already hold to make change more appealing and sustainable.

Influencing Change employs all Six Sources of Influence™, which address motivation and ability as affected by Personal, Social and Structural forces.  Research proves that by employing four or more sources of influence against the desired vital behavior you increase your success tenfold.

How’s your change management working for you?  If it leaves you wanting, and you want to increase your success tenfold consider Influencing Change.

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For more information contact:

Barbara M. Ardell
Vice President & Influencing Change Practice Leader
Paladin Associates, Inc.
BMArdell@PaladinAssociatesInc.com
(770) 315-1581

Strategizing for Successful eSourcing Implementations

Your company has wisely contracted for an eSourcing solution. You are relying on it to deliver process improvements and sorely needed cost savings. You’ve trained your people, but you recognize that the challenge has just begun. Internal adoption is key to your success.

The challenge you face is culture change. It is the biggest obstacle in any software deployment. Less than 15% of your user base will be “early adopters”. The majority will take a “wait & see” approach, and 10% or so will be “foot draggers”. There will be resistance because the implementation requires behavior changes for all involved.

Experience across numerous customers representing a variety of industries has identified some levers which can help to accelerate user adoption. These are:

• Goals and Measures – Creating a “pull” enviornment
• Organization – the right structure, roles and responsibilities
• Processes – documented best practices

Leadership creates a “pull” environment by establishing Goals & Measures and holding people accountable. Since everyone has more to do than they can possibly get done, they must set priorities. So how do they decide what gets done and what gets left undone? It is human nature to seek pleasure and avoid pain. Therefore, what gets measured by leadership gets done! That’s why goals and measures are critical for internal adoption.

While goals and measures are important they must be supported by the proper Organization. This is not merely about structure – the boxes on the organization chart. You must also have clearly defined roles and responsibilities with the positions staffed appropriately. Key roles include:

Champion – He/she establishes and communicates goals and measures, provides necessary resources, breaks down barriers and holds people accountable.

Master User – This individual “puts the feet” on the implementation. Required skills include: Leadership, Change Management, Project Management, Sourcing & Communications. He/she is the liaison with the Champion and becomes the on-going center of eSourcing expertise. A strong Master User is a key indicator of success.

Super User – In larger organizations, the Master User can’t do it all. The Super User is typically an on-site resource who teaches tools and tactics, models best practices, coaches other sourcing professionals, shares learnings within and across the organization, and identifies barriers and improvement opportunities.

Sourcing Professionals – The sourcing professionals do what they’ve always done – apply sourcing expertise to deliver cost savings, cycle time reductions and process improvements. However, they perform these tasks with the assistance of an eSourcing solution supported by new processes and best practices under the tutelage of the Master and Super Users.

The third lever for internal adoption is Processes. A quality tool called the P-D-C-A cycle (Plan-Do-Check-Act/Adjust) is useful for this purpose.

Plan includes: creating an implementation project plan, user training and spend analysis which enables sourcing pipeline development. There is a tendency to shortcut planning and jump to action. This typically results in significant frustration and rework.

Do refers to the actual implementation. This involves the application of processes, best practices, templates and checklists to conduct successful eSourcing events. Most eSourcing solutions provide templates and allow you to embed processes and best practices into the project management feature of the solution.

Check relates to tracking your progress. Are you achieving the goals established on both a program and project basis? Your goals must be supported by specific measures against which you track.

Act/Adjust focuses on continuous improvement. This includes periodic reviews where individuals share learnings with each other, identify improvement opportunities, and develop an action plan. The cycle then repeats.

Using the three levers: Goals & Measures, Organization and Processes, helps to embed eSourcing into your organization’s culture. Ignoring these important considerations will impede your efforts thereby delaying the efficiencies and savings that are critical for survival in today’s economic climate.

Barbara Ardell - Vice President - Paladin Associates

This post was originally published on E-Sourcing Forum at: http://www.esourcingforum.com/archives/2010/04/01/strategizing-for-successful-esourcing-implementations/