Thinking About Change Management in High Maturity Organizations

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Thinking About Change Management in High Maturity
Organizations

• Mark C. Paulk
• mcp_at_sei.cmu.edu -or- Mark.Paulk_at_ieee.org
• Software Engineering Institute
• Carnegie Mellon University
• Pittsburgh, PA 15213-3890
• Ò Capability Maturity Model and CMM are
  registered in the U.S. Patent and Trademark
  Office.
• The Software Engineering Institute is a federally
  funded research and development center sponsored
  by the U.S. Department of Defense.
• ã2001 by Carnegie Mellon University.

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Topics to Consider

• Think about what the Capability Maturity Model?
  for Software (Software CMM? v1.1) says about
  change management.
• Think about the cultural shift observed in high
  maturity organizations that is not well described
  in the CMM.
• look fors for assessors
• Think about the insights that theories on
  diffusion of innovation can offer
• models and theories currently considered
• models and theories potentially useful

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Software CMM v1.1
Level
Focus
Key Process Areas
Continual
Defect Prevention Technology Change
Management Process Change Management
Quality Productivity
process
Optimizing
5
improvement
Product and
Quantitative Process Management Software Quality
Management
process quality
Engineering
Organization Process Focus Organization Process
Definition Training Program Integrated Software
Management Software Product Engineering Intergroup
Coordination Peer Reviews
Defined
processes and
organizational
support
Project
Requirements Management Software Project
Planning Software Project Tracking
Oversight Software Subcontract Management Software
Quality Assurance Software Configuration
Management
management
processes
Risk Waste
Competent people and heroics
Initial
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Technology Change Management (TM, TCM)

• The purpose of Technology Change Management is to
  identify new technologies (i.e., tools, methods,
  and processes) and transition them into the
  organization in an orderly manner.
• Goal 1 Incorporation of technology changes is
  planned.
• Goal 2 New technologies are evaluated to
  determine their effect on quality and
  productivity.
• Goal 3 Appropriate new technologies are
  transferred into normal practice across the
  organization.

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Process Change Management (PM, PCM)

• The purpose of Process Change Management is to
  continually improve the software processes used
  in the organization with the intent of improving
  software quality, increasing productivity, and
  decreasing the cycle time for product
  development.
• Goal 1 Continuous process improvement is
  planned.
• Goal 2 Participation in the organization's
  software process improvement activities is
  organization wide.
• Goal 3 The organization's standard software
  process and the projects' defined software
  processes are improved continuously.

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TCM versus PCM

• TCM emphasizes innovation and revolutionary
  change.
• PCM emphasizes the deployment of incremental (DP)
  and revolutionary (TCM) changes in an orderly
  fashion.
• In Software CMM v1.1, these relationships are not
  expressed well.
• significant redundancy between TCM and PCM

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Assessment Heuristics

• Can the organization identify the objective
  criteria for making change decisions?
• usually including both qualitative and
  quantitative criteria
• Can valid comparisons of performance before and
  after using a new process or technology be shown?
• such as ANOVA and process models
• Can legitimate improvement trends be
  demonstrated?
• such as regression analysis
• Is the improvement culture in place?

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Criteria for Change

• Identify the criteria that are important for
  evaluating new technologies and processes up
  front.
• TCM.AC.5.3
• The criteria for evaluating change should be
  based on impact on business drivers.
• Examples of evaluation criteria
• process maturity
• number of users affected
• frequency of usage
• affected processes
• cost

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Why Pilot? Part of TCM and PCM

• To get the data to make an informed decision
  about whether to deploy a new technology or
  process
• To build buy-in for the change (build champions)
  
• To control the learning curve proactively

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Decision Making Support

• Use sophisticated analytical techniques when they
  are needed to understand the impact of a proposed
  change.
• TCM.AC.6.6, PCM.AC.7.3
• If the impact of a change is large and obvious,
  e.g., order of magnitude improvement,
  sophisticated analyses are unnecessary.
• capture the evaluation consistently and using the
  pre-defined criteria
• User feedback, e.g., in the form of user surveys
  after pilots, should also be considered in
  deciding about deployment.

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Analyzing the Pilot Results
Is this a significant improvement? In what terms?

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Long-Term Analysis

• Even if piloted, some changes do not scale up
  well in full-scale deployment.
• Tracking of performance after deployment is
  important for understanding the long-term impact
  of a change - and verifying its value.
• data categorization is critical for dealing with
  confounding factors
• Process modeling, e.g., systems dynamics models,
  may be useful for understanding feedback and
  interaction effects.
• use the subprocess data obtained at Level 4

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A Valid (Useful) Trend Chart?
Regression analysis is more than a trend
line Where is the confidence (or prediction)
interval that indicates an understanding of
variation?
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Looking for Results

• Are changes occurring?
• to the process
• to the product
• Is there follow-up to make sure that changes are
  improvements?
• short-term, based on pilots
• long-term, based on deployment
• Are both incremental and revolutionary changes
  being deployed?
• From a business perspective, if all changes work
  out, the organization may be being too
  conservative

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Deploying Change -- Culture Shift!

• Organizations that are immature in their change
  capability require extraordinary efforts to
  implement change
• resistance happens
• organizational inertia is expected state
• Organizations that are mature in their change
  capability deal with change in an orderly way
• participation and empowerment mean something (PCM
  Goal 2)
• resistance to change is comparatively minor
• openness and trust with respect to change
• organization has momentum toward improvement

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Participation Empowerment Heuristics

• Are roughly ten process improvement proposals per
  engineer being processed per year? (gt1 PIP)
• Is the typical time to resolve a proposal on the
  order of five working days? (lt20 days)
• Are 80 or more of the proposals being positively
  acted on? (gt60)
• Do the people using the process report a sense of
  ownership in defining and improving the process?

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Culture of Continuous Improvement

• Level 5 has strong cultural components (just like
  all the other levels) -- a quality culture
• pervasive focus on positive change
• regular analysis of what works and what doesnt
• universal participation in change efforts
• changes selected based on objective criteria
  based on data and/or piloting where appropriate
• empowerment anyone can suggest any change to
  any process at any time knowing it will get
  appropriate consideration and priority
• ability to analyze process issues without
  defensiveness of individuals or groups

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Structured Thinking

• Many tools and models for managing technological,
  organizational, and cultural change have been
  developed.
• Even if developed from the suppliers
  perspective, they can also be used from the
  customers perspective.
• Models can provide needed structure to analyzing
  change management issues.
• Caution many change models assume an immature
  change capability, so dont blindly apply them to
  high maturity organizations

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Perspectives on Innovation

• When considering a new technology
• is it a process or a product technology?
• product technology is not directly addressed by
  TCM
• are you the customer or the supplier (or both)
  of the technology?
• TCM and PCM are written from a customer
  perspective

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Current Frameworks

• Some models are already widely used in discussing
  Level 5 change management issues.
• technology transfer curve
• change impacts productivity
• response to positive change
• negative response to change
• Constantines organizational paradigms

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Technology Transfer Curve
Institutionalization
Technology Transition and Assimilation
Adoption
Trial Use
Pilot Testing
C o m m I t m e n t
Commitment
Understanding
Information Transition
Awareness
Contact
T i m e
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Change Impacts Productivity
DesiredState
PresentState
TransitionState
P r odu c t i v i t y
T i m e
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Response to Positive Change
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Negative Response to Change
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Constantines Organizational Paradigms
intrinsic flexibility
Open (adaptable, flexible)
Random (creative, independent)
group cohesion
Closed (stable, hierarchical)
Synchronous (harmony, unified vision)
Larry Constantine, Constantine on Peopleware.
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Applying New Models

• Some models that could add insight into attitudes
  toward change are not systematically used by most
  software organizations today.
• Moores chasm model
• Fichman and Kemerers assimilation gap
• Daghfous and Whites innovation analysis model
• Such models establish a set of criteria that,
  upon self-examination, may shed light on barriers
  to successful change.

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Moores Crossing the Chasm
Geoffrey A. Moore, Crossing the Chasm Marketing
and Selling High-Tech Products to Mainstream
Customers.
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The Assimilation Gap

• Fichmann and Kemerer suggest that an assimilation
  gap exists between acquiring and using a
  technology
• strongly increasing returns to adoption
• substantial knowledge barriers impeding adoption

Robert Fichman and Chris Kemerer, "Adoption of
Software Engineering Process Innovations The
Case of Object Orientation," Sloan Management
Review, Winter 1993.
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Daghfous White Innovation Analysis Model

• Time-based approach to characterizing the process
  of innovation
• Supply demand information
• based on product/process evolution and marketing
  (supply and demand)
• add an information axis
• how do we deal with uncertainty and ignorance?
• focus on how information interacts with the
  demand and supply axes
• Abdelkader Daghfous and George R. White,
  Information and Innovation A Comprehensive
  Representation, Technical Report 91-4,
  Department of Industrial Engineering, University
  of Pittsburgh, 1991.

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Unwrapping Three Dimensions
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Asking Questions -- Deriving Insight

• Which side of the chasm are you one? Early
  adopter? Late majority?
• may change from one category to another,
  depending on the domain of the change
• understand support and infrastructure needed to
  successfully adopt the change
• Is shelfware a problem in your organization?
• Is the new technology innovative? Mature?
• addressing uncertainty and ignorance

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Summary

• High maturity organizations deal with change
  management in a systematic way.
• The culture shifts as change becomes a way of
  life -- and people recognizes the need for
  orderly change.
• Diffusion of innovation is a rich research area,
  with many models to explain various aspects of
  successful diffusion.
• Applying the insights from these models to change
  management planning would seem to add value.

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General SEI Information

• SEI Customer Relations 1 [phone]
• SEI FAX number 1 [phone]
• Internet Address
• customer-relations_at_sei.cmu.edu
• Mailing Address
• Customer Relations
• Software Engineering Institute
• Carnegie Mellon University
• 4500 Fifth Avenue
• Pittsburgh, PA 15213-3890

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Internet Access to SEI

• SEI Web pages
• www.sei.cmu.edu
• www.sei.cmu.edu/cmm/
• www.sei.cmu.edu/cmm/cmm.articles.html
• www.sei.cmu.edu/cmm/slides/slides.htmltcm-hm