Organizational change not happening fast enough? Something has changed over the past years, and it is bringing along a change of its own.
The days of top-down led organizational change are gone. The old, pre-pandemic way, was largely consisting of telling employees a positive story, then relying on that story to get their buy-in, for a change whose course had already been decided. Take all the breadth and depth of change that teams have had to put up with over the recent years, mix it with the feeling that people have stretched themselves too thin anyway, and it becomes obvious that attempting a top-down change strategy these days will mostly be a losing play.
There is a new way of determining change and allowing for its implementation emerging, in which employees actually understand why change is necessary- and if slowing down the pace of change while battling resistance is not what is desired - then getting more commitment from teams and giving them a sense of ownership over what comes next can ensure a better process altogether.
There is an old Indian parable about six blind men trying to figure out what an elephant looks like – each one takes a different part and describes it based on their own limited point of view. This is not just how many employees feel when faced with a massive change, it is also how many leaders feel. After some time spent in a leadership position, leaders most often become increasingly disconnected to the work. What them is the way forward?
Increasingly involving employees in the decision-making process
When leaders actively involve employees in the creation of important decisions, several advantages come to light:
- Diverse perspectives: employees represent a diverse range of skills, knowledge, and experiences. By including them in decision-making processes, leaders gain access to a wealth of perspectives and insights that may otherwise go untapped. This diversity of thought can lead to more well-rounded and innovative solutions.
- Increased engagement and ownership: when employees have a voice in decision-making, they feel a greater sense of ownership and commitment to the outcomes. This engagement translates into higher levels of motivation, productivity, and job satisfaction. As a result, organizations can experience improved employee morale and retention rates.
- Enhanced problem-solving: by involving employees, leaders tap into the collective intelligence of the organization. Employees at all levels often possess unique problem-solving abilities, creative ideas, and domain expertise. Harnessing these resources can lead to more effective and sustainable solutions that address challenges from multiple angles.
- More trust and collaboration: inclusive decision-making fosters trust between leaders and employees. When individuals feel their opinions are valued, they are more likely to trust in the decision-making process and the organization as a whole. This trust cultivates a collaborative culture where employees are willing to share their ideas, collaborate with others, and work towards common goals.
Applying an open-source approach to decision implementation
Taking an open-source approach during the implementation phase of decisions can yield numerous benefits:
- Iterative and agile implementation: adopting an open-source approach to decision implementation allows for iterative and agile processes. Rather than rigidly adhering to a predetermined plan, an open-source mindset encourages continuous feedback, learning, and adaptation. This approach enables organizations to respond swiftly to challenges and seize new opportunities as they arise. By embracing flexibility and agility, leaders can navigate complex implementation landscapes and ensure that decisions evolve to meet changing needs and circumstances.
- Transparent communication: an open-source approach promotes transparent communication and information sharing. This transparency helps employees understand the rationale behind decisions and provides an avenue for voicing concerns or suggesting improvements. Transparent communication fosters trust and empowers employees, creating a more inclusive and engaged work environment.
- Leveraging collective intelligence: when implementing decisions from an open-source standpoint, organizations can tap into the collective intelligence of their workforce. Employees become active contributors, sharing their expertise, insights, and ideas. This collaborative effort enables organizations to leverage the diverse skill sets and knowledge of their employees, leading to innovative and sustainable solutions.
- Encouraging innovation and learning: open-source implementation fosters an environment that encourages experimentation and learning. Employees are empowered to explore new approaches, learn from their successes and failures, and share their findings with others. This culture of innovation fuels organizational growth and adaptability, helping companies stay ahead in a rapidly evolving business landscape.
By empowering employees and valuing their contributions, leaders tap into a wealth of diverse perspectives, enhance employee buy-in, and foster a sense of ownership over the outcomes. Additionally, embracing open-source principles during the implementation phase enables organizations to leverage the collective intelligence of their workforce, promote collaboration, and drive iterative, agile, and scalable change initiatives. More inclusive change strategies can ensure better speed at which change is implemented. But increasingly involving employees in both the decision and the implementation process requires a mindset where leaders move away from directing change to instead focus on finding the best ways to keep their employees accountable of change implementation.
Potential uses of ChatGPT for Change Management and Strategy Work
With all the hype going on, we couldn’t resist the temptation of asking ourselves what could we here at 8008.Agency - or our colleagues in management consulting - do with ChatGPT. How could we use it and would it benefit our clients? Let’s take a look at our main services and see.
Strategy creation and implementation
Any strategy related tasks out there that ChatGPT can help with?
Short answer: Potentially, yes.
ChatGPT has the potential to automate many of the steps in the strategy creation process. This can (potentially) save organizations time and money, as well as free up resources for other tasks. ChatGPT could use its AI capabilities to suggest strategies based on data from past successes and failures, which could (potentially) help organizations develop a more effective strategy.
According to itself, ChatGPT can:
- Define goals and objectives by analyzing data such as customer needs, industry trends, and competitive landscape -
- Analyze market conditions and identify opportunities and threats (as a side note, how relevant are the above, when the data it currently has access to is capped at 2021?)
- Identify the target audiences and their associated characteristics.
- Generate lists of strategies and tactics
- Put together a plan that outlines the steps necessary to execute the strategy.
- Monitor and adjust the strategy (how could this happen? maybe when a human would re-input the fresh data and the older strategy, just maybe something new will return).
Why just ‘potentially’?
ChatGPT can not provide the same level of insight as experienced strategy people. Furthermore, the AI capabilities of ChatGPT may not be able to accurately assess the environment and market conditions that could affect the success of a strategy. Finally, ChatGPT does not have the ability to assess the human factor, such as the impact of human behaviour or preferences, which is critical in the success of any strategy.
What is it about specific or complex advice about strategy creation and implementation that should not be given into the hands of ChatGPT?
ChatGPT will encounter limitations when it comes to providing more specific or complex advice about strategy creation. It uses natural language processing to understand user input only, which means it can’t provide detailed, specific advice on how to create a strategy. Additionally, ChatGPT can only provide information based on the information it has received from its users, so it may not be able to provide advice on strategies that are outside of its current knowledge.
Moving on, when it comes to implementation, one cannot (one can, but should not) trust ChatGPT with an ability to provide guidance on the complexities of strategy implementation. First-hand limitations here are: it can’t provide advice on the timing of various tasks, the resources needed to complete them, the potential risks associated with them, or the best approach to overcoming them. What is more, there will be no insight provided into how various stakeholders may respond to the implementation of a specific strategy. So if you want to use it, you will be better served employing it as a tool for the content of a strategy, rather than the implementation of it.
How about change management?
Change management has a lot to do with understanding context and nuance, arguably one of the worst places to be for ChatGPT. This is one place to not look for guidance as of how to implement change or how to manage the transition. ChatGPT. will have nothing to say about how to handle resistance to change or how to ensure that change is successful. And obviously, ChatGPT cannot develop the relationships and trust necessary to ensure successful change management, because of lack of human insight (obviously), reduced engagement capabilities, no cultural sensitivity and an inability to identify unforeseen challenges.
Cultural change processes? Forget about those
ChatGPT cannot provide understanding of what is important to a particular culture, or develop new values and norms that could be accepted within that culture; or help with conflict resolution; or empathize and understand the nuances of a conflict that a human can, and consequently provide the same level of resolution. Neither can it do any of the community building work, as it has nothing to say when it comes to the connection and understanding between members of a community. However, even in the absence of such an understanding, it could mediate conflicts with some success based on the available literature.
Leadership then? I guess you can see what’s coming
- Making decisions about organizational restructuring: that is difficult to do when one cannot assess the complex dynamics of an organization, its culture, and the potential impact of any changes.
- Developing a shared vision and strategic plan: this is not possible without capturing the nuances of human emotion, essential to fostering commitment and alignment.
- Managing resistance to change: to begin with, ChatGPT can’t read and interpret body language, facial expressions, and tone of voice to understand how people are responding to the proposed change.
- Coaching and developing people: unlikely to happen in a personalized way, with the tailored advice and support that people need in order to develop and grow.
How about communication? ChatGPT is, after all, a conversational agent.
ChatGPT is suited for general conversation and small tasks. It can be used to provide customer support, answer FAQs, or provide basic information. As we've already witnessed, it can very well be used for automating certain tasks in a customer service journey: it can engage and interact with customers and provide support and guidance.
But because ChatGPT is unable to properly determine the context of complex conversations, the more complex the communicational setting, the more difficult it will be for it to provide accurate responses. It cannot understand the nuances of human language, which makes interpreting the intentions behind a conversation well... difficult. Staying on the complexity variable, it cannot take into account a variety of perspectives and ideas, and at this moment neither can it fathom ideas which may me outside of its pre-defined parameters. So creative solutions to complex problems are a limit here, which is where humans still shine,
All throughout this article I felt you are not completely embracing ChatGPT - why is that?
It’s not it, it’s us.
‘The saddest aspect of life right now is that science
gathers knowledge faster than society gathers wisdom.’
-Isaac Asimov
ChatGPT is ok as long as we are all on the same page with what it is, can do and can’t do. But where and when has it ever been the case that everyone agreed on subjects like this?
Very importantly, all that is above described as having the potential of going wrong is based on the optimistic assumption that ChatGPT uses accurate data, written by humans. And this in itself becomes a huge leap of faith with every passing day given the proliferation of fake social media accounts and inaccurate or even fake facts/samples of writing actually created by AI chatbots rather than humans. ‘Garbage in, garbage out’ you never get old!
What we find a bit tricky here is people, not ChatGPT. Some people may end up believing that ChatGPT can substitute humans in a conversation because of its seemingly meaningful way in which it can use natural language processing and artificial intelligence algorithms to interpret complex conversations and respond.
But how it actually works is that it constructs a sentence word by word, selecting the most likely term that should come next, based on its training. The way that it reaches an answer comes after elaborate guessing. It is because of this feature that it can argue incorrect or nonsensical answers as if they were true, in a "hallucination" of fact and fiction, as some scientists call it.
A major caveat lies in our capacity to develop and deploy ChatGPT responsibly and with the purpose of enhancing our well-being. And to once again escape an innate tendency of humans, of seeking to attribute human traits, emotions, or intentions to non-human entities.
Transforming Public Organizations Through Strategic Planning
"A goal without a plan is just a wish." Antoine de Saint-Exupery said this more than 80 years ago, which is still true today.
Public and private organizations are constantly evolving, and senior management and CEOs must know where they are headed in order to succeed. Strategic planning is essential in this process and must consider the differences between the public and private sectors.
While public organizations are typically driven by a mission and public policy, private companies often require different approaches to ensure their long-term success. Strategic planning must include a range of components to ensure that the organization is ready to face future challenges and capitalize on opportunities.
The Three Ps of Successful Strategic Plan Implementation
One of the ways to think about successful strategic plan implementation is to keep in mind the 3 Ps. This is a helpful way to think about the practical steps needed to ensure that your organization can optimize its potential. Let's break it down.
People
What is the team behind your strategic plan? From the executive level to frontline staff, everyone needs to understand their role in execution. Staff must be committed to the plan and enthusiastic about the mission. While senior leadership's responsibility is to set and monitor the plan, each team member must be empowered to carry out their part of the plan.
With the necessary resources, knowledge, and training, each team member can contribute to the ultimate success of the plan.
Processes
Since organizations must be flexible in order to adapt to external changes, processes must also be agile and adaptable. This means that strategic plans must take into account the changing environment and organizational dynamics.
Processes must be outlined clearly, which requires the right technology and systems to communicate and monitor progress so that initiatives can quickly evolve. Adaptation and change are inevitable, but if processes are well-defined and monitored, they can prevent chaos.
Performance
Since the ultimate goal of strategic planning is to drive better performance, it is important to consider how success will be measured and monitored. Is the organization meeting its goals? Are there areas where performance can be improved?
Strategic planning must set key performance indicators that will enable the organization to assess progress and make necessary changes to reach its goals. As the environment changes, the organization's performance must be monitored regularly to ensure the plan remains on track.
The Three Ps aren't just for the private sector. Public organizations need to consider these components as well when planning for their future. Strategic planning is an essential part of ensuring that public organizations can successfully navigate the ever-changing landscape.
Successful transformation requires organizations to be agile and adaptive in order to remain competitive in a rapidly changing environment. No matter the sector, organizations must create an environment of trust and collaboration in order to ensure a successful transformation.
Decisive Factors for Successful Organizational Transformation in NGOs and Public Institutions
Is your organization ready to take the next step forward? While transformation can be a daunting undertaking, it's also an opportunity for growth and innovation.
Initiatives should be designed to take advantage of new opportunities and develop creative solutions that can help the organization reach its goals. Sustainable organizational change is vital in the Public Sector, where initiatives should be backed by a commitment to change while mitigating risks.
To ensure success when planning organizational transformation in NGOs and public institutions, there are a few key elements to consider:
Leadership
No transformation is successful without strong and committed leadership. Leadership should be open to new ideas, willing to take risks, and have an overall vision for the organization.
Organizational transformations require strong and sustained leadership. Top administrators must take the lead in defining objectives, outlining strategies, and implementing change. Additionally, they should help build a shared vision among staff, fostering collaboration and buy-in.
Culture
Have you taken the time to assess your current organizational culture? What needs to shift in order for transformation to occur? It is important to create a culture of trust, respect, and collaboration. This can be done by establishing clear communication channels, encouraging open dialogue between staff members, and promoting an environment where everyone feels valued and respected.
With the right culture in place, everyone is invested in the change process and can work together to bring about meaningful transformation.
Innovation
No organizational transformation can be successful without a willingness to innovate. Feeling stuck in a certain way of doing things is a surefire sign that transformation needs to occur. Encourage innovation by introducing new ideas, technologies, and approaches. This can help the organization stay on top of industry trends, better anticipate new opportunities and threats, and provide a platform for growth.
Managing change in these areas is key to a successful organizational transformation, but it doesn’t necessarily mean investing only in new technologies or processes; public institutions must also create space for creative problem-solving and out-of-the-box thinking that encourages divergent solutions.
By embracing innovation and encouraging creativity, organizations can tap into the collective knowledge of their workforce and discover new ways to succeed.
Technology
Are you leveraging the right technology for your organization’s transformation? Technology can enable organizations to work more efficiently and cost-effectively. It is also important to consider how new technologies might change customer relationships and operations.
In addition to productivity tools, organizations can invest in data analytics that can provide powerful insights into their performance.
Stakeholder Engagement
Engaging stakeholders is crucial for the success of any organizational transformation. This includes employees, customers, suppliers, and other stakeholders who can help shape the direction of the organization. Involving stakeholders in the planning process helps to create buy-in and a sense of ownership, leading to more successful implementation.
Governance
Effective governance is crucial for the success of any organizational transformation. This includes having clear policies, processes, and accountability measures in place to ensure that the transformation aligns with the organization’s mission and goals.
It is also important to have a governance structure in place that allows for agile decision-making, as well as the ability to adapt to changing circumstances.
Differences Between the Public and Private Sector Practices
The public and private sector organizations differ in many ways – from their management practices to the way they are funded. Let's take a look at some of the differences between the public and private sectors.
Performance Management
In private firms, performance management relies heavily on incentives and rewards for achieving goals. The public sector manages performance through more democratic processes with the scope of serving the public good.
While private firms measure success through profits and market share, public organizations assess performance based on the overall effectiveness of their services.
Organizational Culture
From organizational structure to communication channels, public sector organizations tend to be more formal. Private firms often have a more relaxed culture that allows for greater flexibility and creativity.
Although the public sector is more focused on risk aversion and stability, private firms are more likely to focus on maximizing their profit and taking risks. With private firms, there is a greater emphasis on developing innovative solutions and being flexible to adapt to changing market conditions.
Accountability
No one is above the law when it comes to public sector organizations. They are accountable to the citizens and must adhere to strict regulations in order to remain compliant with the law. Private firms are accountable to their shareholders and tend to make decisions based on market conditions, even if it means sacrificing the public interest. This can lead to unethical and potentially illegal behavior.
Public sector organizations have a more difficult task when it comes to transformation. They must balance their obligations to the public and their commitment to an effective organizational culture while also navigating the complexities of governance.
Funding
Public sector organizations are funded through taxation, whereas private firms rely on investors and profits. This can be a major obstacle to transformation as the public sector often has limited resources and is subject to budget constraints.
Private firms have more freedom to allocate resources as they see fit and can make long-term investments that will have a larger impact on the organization.
Strategic planning is essential for any successful organizational transformation. When done dilligently, it has the power to help NGOs and public legal institutions create or adapt their vision, plan for the future, and identify objectives and goals that will bring about positive change. With the right approach and dedication, strategic planning can prove to be a powerful tool for creating lasting, sustainable, positive transformation.
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