Transcript Change Management- 1-22-2009 v1

Cost Effective Change
Management
Thursday, June 16, 2011
Mr. Shahnawaz khan
Trainer
SEEKERS INTERNATIONAL
WWW.seekersintl.com
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What was advertised

This session will discuss why change management needs to be a key
competency for people and organization, and will share some tips regarding
how to improve the practice of change management in your work.

All of us desire to see improvement in our lives and in our society. In our
workplaces, the pace of change is accelerating. This can often bring about
major enhancements to our lives. Many changes, from email to cell phones,
from employee empowerment to Lean Six Sigma, have altered our workplaces
dramatically, and forever. Managing change, and managing it well, is becoming
one of the most critical competencies for any organization.

This session has 2 dimensions

1. organizations wants to bring change to be more competitive and effective
2. The organization is SME and their sole purpose of bringing change is
safeguard expenses
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Today’s Discussion
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Let’s diagnose this Situation
Do some introspection
Discuss
Some ideas – won’t necessarily have all of
the right answers
And, develop action plans for ourselves to
move from thought to results
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Takeaways
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Key points you agree with
Key points you don’t
What are YOU going to do
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Let’s start!
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Food for Thought
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Imagination is better then knowledge
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“Everyone thinks of
changing the world,
but no one thinks of
changing himself.”
- Leo Tolstoy
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A question for you:
What is Change management?
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Change is the only constant thing

Organizational change is the movement of an
organization from the existing plateau toward
a desired future state in order to increase
organizational efficiency and effectiveness
(Cummings and Worley, 2005; George and
Jones, 2002).
The process, tools and techniques manage
the people-side of change to achieve
the required business outcome
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Cost and Cost Effectiveness

Cost is expense consumed to produce
RESULT
All costs are the result of some decision or activity
Cost is a function of the amount of resource
consumed and the price per unit of the
resource
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Change Revolves around 3 areas
1.Change PEOPLE
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Mentality
Attitude / Behavior
Expectation
Perception
Resistance
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Managing change: people
My organization is good at managing the “people” side of change
initiatives. ”
36%
40%
30%
20%
24%
20%
10%
10%
8%
2%
0%
Stongly
Disagree
Disagree
Almost 1/2 disagreed
Neutral
Agree
Strongly
Agree
Don't Know
& N/A
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Causes of resistance
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Employees:
1.
2.
3.
4.
5.
Not aware of the
business need for
change
Lay-offs were
announced or feared
Unsure if they had the
skills needed for success
in the future state
Comfort with the current
state
Believed they were
being asked to do more
with less, or do more for
the same pay
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Managers:
1.
2.
3.
4.
5.
Loss of power and
control
Overloaded with current
responsibilities
Lacked awareness of the
need for change
Lacked the required
skills
Fear, uncertainty and
doubt
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Techniques to reduce resistance
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1. Communicate and educate your employees
the logic of change
2. Participation
3. Facilitation and support
4. Negotiation
5 Manipulation and Cooptation “using a threat
with no intentions just to get an advantage
Buy off the leaders of resistance group by
giving them a key role in change decision
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2.Change Structure
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Complexity
Centralization
Redesign
How authority and responsibility is distributed
across the organization. Authority pattern in
organization shows who reports whom and
who is answerable and accountable to whom.
Departmentation or task grouping, hierarchy
layers, span of control and the extent of
formalization (bureaucratic or participative
one).
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3.Induction of Technology
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Work process
Methods
Equipments
Technology is considered the engine of growth in
today’s world. Perhaps the greatest challenge for
contemporary organizations is the acquisition and
integration of technology in its strategy, structure and
process.
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WHY CHANGE

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Economic conditions change as they are
impacted by organizational failures, terrorist
attacks, natural disasters, etc.
Consumer behavior changes, e.g., children
use computers at a very early age
Suppliers fail as big customers force them to
lower prices or as other changes impact them
e.g., Mattel toys manufactured in China
containing lead
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Employee unions strike as organizational
leaders give themselves bigger bonuses
salaries and ask for concessions from unions
Violence spills over from society to the work
place and schools. Children and adults are
injured and/or
Natural disasters occur throughout the world
and individuals, organizations and nations try
to respond to the impact of hurricanes,
earthquakes, tornadoes, tsunamis, fires and
floods
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Revised Objective/s
Once objective revised the whole
Scenario changed
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Process
Transformation input to out put.
For e.g. production process means conversion of
raw material to finished goods.
Total Quality Management (TQM) working with in
the system
Business Process Restructuring (BPR) working on
the system’. Similarly in context of organization
there are other processes such as decision making,
objective setting, communicating, controlling &
coordinating
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Culture
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Values, beliefs and mind-set of a manager at work “Corporate
Culture”
Cognitive style (thought process), Personality, Behavior
Individualism - Collectivism
Masculinity - Feminism
Power Distance - Low or High
Uncertainty Avoidance - Low or High
Time orientation - Low or High
Organization Politics
Changes have political consequences
Change disturbs power-distribution in organization
Managers have interests & groupings
Therefore power may enable or resist change.
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External Environment

Social and cultural Issues
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Political Issues

Political Impacts
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Government policies
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Monitory & Fiscal Policies
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Legal System
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Impacts
25
Economical Condition
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Impact of Economy
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Consumer Behavior
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Impacts
27
Globalization
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Impacts
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Types of Change
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Natural Evolutionary Change
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Planned & Managed Change
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Unplanned Revolutionary Change
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Food for Thought
The “changers” or the change agents
may be “living” in the future state,
while everyone else “the changees”
are living in the present state
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Three Phases of Change: How
people experience change
Current
State
Transition
State
Future
State
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Current State

Employees (including management and executives!)
generally prefer the current state, because that is where
they live
Current
State
Transition
State
Future
State
“better the devil you know is better than the devil you don’t”
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Future State
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The future state is unknown to the employee; will it be
better, or worse?
This is where Project teams “live”
Current
State
Transition
State
Future
State
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Transition State

The transition state creates stress and anxiety
Current
State
Transition
State
Future
State
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LOUD THINKING
Effective change management MUST
be focused on helping individuals
change
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Successful change addresses both the technical
and the people side
Solution is designed,
developed
and delivered effectively
(Technical side)
Project management
Current
Transition
Change management
+
Future
Solution is embraced,
adopted and utilized
effectively
(People side)
= CHANGE SUCCESS
Individual PEOPLE change, NOT organizations
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Individual change management it the
Centerpiece of success
The secret to successful change lies beyond the
visible and busy activities that surround change.
Successful change, at its core, is rooted in something
much simpler:
How to facilitate change
with one person.
A
D
K
A
R
From ADKAR: a model for change by Jeff Hiatt
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Effective change management
requires two perspectives
Individual perspective
 How does one
person makes a
change
successfully?
Organizational perspective
 What tools we** have
to help individuals
make changes
successfully?
** “we” means project leaders and
team members, HR, OD, training,
communications, managers,
supervisors
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The focus of Change management is on helping
individuals make their own personal transition
Organizational
“The change” to how we
do business
Current
Individual
From:
To:
How I do my job
today
How I will do my job
after the change is
implemented
Transition
Future
Current
Transition
Future
Current
Transition
Future
Current
Transition
Future
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Individual change is a process
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The five building blocks of successful
individual change
Awareness
Desire
Knowledge
Ability
Reinforcement
of the need for change
to participate and support the change
on how to change
to implement required skills and
behaviors
to sustain the change
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ADKAR
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Awareness of the need for change (why).
Desire to support and participate in the change
(our choice).
Knowledge about how to change (the learning
process).
Ability to implement the change (turning
knowledge into action).
Reinforcement to sustain the change
(celebrating success).
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Employees have preferred senders
of change messages
Top-level executives and
CEO/President
senior leaders when the
message pertains to the
Executive manager
business need for change
Senior manager
and alignment of the
Department head
change with the
The employee's supervisor
organization's overall
direction.
Employees’ immediate
supervisors for messages
that pertain to the
individual impact resulting
from the change (discussing
'what's in it for me' with
each employee).
Project team member
Project team leader
CM team member
Personal messages
CM team leader
Business messages
Other
0%
10%
20%
30%
40%
50%
60%
Percent of respondents
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Communication checklist
Yes
No
Question:
Have you identified all of the different audiences you need to
communicate with throughout the organization?
Have you identified who the ideal sender of communication
messages will be?
Have you identified what are the most effective channels of
communication?
Have you created mechanisms to enable two-way
communication to take place?
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Not Everyone Changes
at the Same Pace
Person A
Awareness
Desire
Awareness
Person B
Person C
Knowledge
Awareness
Ability
Desire
Desire
Awareness
Awareness
Desire
Knowledge
Person H
Person I
Awareness
Awareness
Desire
Desire
Knowledge
Desire
Ability
Awareness
Person F
Person G
Ability
Reinforcement
Knowledge
Person D
Person E
Knowledge
Reinforcement
Knowledge
Ability
Reinforcement
Reinforcement
Reinforcement
Desire
Knowledge
Ability
Ability
Knowledge
Ability
Ability
Reinforcement
Reinforcement
Reinforcement
Awareness
Desire
Knowledge
Ability
Reinforcement
Address the needs of each INDIVIDUAL
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Recommendation:
Create a Change Management
Profile for Each Employee
Employee
A
D
K
A
R
A
4
5
2
2
4
B
4
1
4
3
4
C
2
2
3
3
4
D
5
1
4
2
3
Notes/actions
Needs knowledge
Low desire
Questionable desire
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Some Key Change
Management Tools
Communications
Sponsor Roadmap
Training
These channels enable
Effective change management
Readiness / Resistance Mgt.
Coaching
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Mapping the tools to the personal
change elements (ADKAR)
These channels
enable project
team to facilitate
organization
through phases
of ADKAR.
Communications
Awareness
Sponsor Roadmap
Desire
Training
Knowledge
Readiness / Resistance Mgt.
Ability
Coaching
Reinforcement
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Use the right tools, in right place
Communications
Sponsor Roadmap
Training
Readiness / Resistance Mgt.
Coaching
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we need the right people involved and
engaged in the right ways
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Change management requires a system
of ‘doers’
Executives and
senior managers
Middle managers
and supervisors
Each ‘gear’ plays a
specific role based
on how they are
related to change
Change
management
resource/team
Project
team
Project
support
functions
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Change management roles
Role
Ideal implementation
Change mgmt
resource/team
“I develop the change management strategy and
plans. I am an integral part of project success.”
Executives and senior “I launch (authorize and fund) changes.”
“I sponsor change.”
managers
Middle managers and
front-line supervisors
“I coach my direct reports through the changes that
impact their day-to-day work.”
Project team
“I manage the technical side of the change. I
integrate change management into my project
plans.”
Project support
functions
“I support different activities of the change
management team and project team.”
* Change
management group,
dept or office
“We own the change management methodology
and support its implementation in the organization.”
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Current common reality that
we need to move beyond
Role
Common implementation
Change mgmt
resource/team
“I feel like I’m on an island here – people expect me
to do everything and have all the answers.”
Executives and senior “I gave you funding and signed the charter – now go
make it happen!”
managers
Middle managers and
front-line supervisors
“I feel like I’m the direct target for some of these
changes, and I wish I knew what was going on.”
Project team
“My focus is just the ‘technical’ side. Once I flip the
switch, I’m moving on to the next project.”
Project support
functions
“I get called in on projects and given one little task,
but I’m not sure how I fit in to the overall picture.”
* Change
management group,
dept or office
“I don’t even exist yet.”
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Executives and
senior managers
Executives and senior mgrs
What is their role
1.
2.
3.
Middle managers
and supervisors
Change
management
resource/team
Project
team
Project
support
functions
Participate actively and visibly
throughout the project
Build a coalition of sponsorship and
manage resistance
Communicate directly with employees
Not just signing checks and project charters!
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Executives and
senior managers
Middle mgrs and supervisors
Why are they important
They are close to the
people who adopt the
change
 They play a role in all
types of change in the
organization
They need to be trained
to be successful

Middle managers
and supervisors
Change
management
resource/team
Project
team
Project
support
functions
Macro – top-down
changes
Executives and senior leaders
Middle managers and supervisors
Front-line employees
Micro – daily changes
Executives and senior leaders
Middle managers and supervisors
Front-line employees
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Executives and
senior managers
Middle mgrs and supervisors
What are their roles
Middle managers
and supervisors
Change
management
resource/team
Project
team
Project
support
functions
Role 1 – Communicator
Role 2 – Advocate
Role 3 – Coach
Role 4 – Liaison
Role 5 – Resistance manager
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Executives and
senior managers
Project team
Why are they important
Middle managers
and supervisors
Change
management
resource/team
Project
team
Project
support
functions
Drive the technical side of change
Design
solutions
Develop solutions
Deliver solutions
Project management
Current
Transition
Future
Change management
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Executives and
senior managers
Project team
What is their role
1.
2.
4.
Change
management
resource/team
Project
team
Project
support
functions
Design the actual change
Manage the ‘technical side’ of the
change
•
3.
Middle managers
and supervisors
Charter, business case, schedule, resources,
work breakdown structure, budget, etc.
Engage with CMgt team/resource
Integrate CMgt plans into project plan
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Executives and
senior managers
Middle managers
and supervisors
Change
management
resource/team
Project support functions

Examples

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
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
HR
OD
Training
Communication
SMEs

Project
team
Project
support
functions
Bring specific experience,
knowledge, tools and
expertise to the project


Sometimes act as the
change mgmt resource


Key pieces of the
‘technical’ and ‘people’
puzzles
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Mapping change management roles
1.
2.
3.
4.
1. Authorize and fund
2. Participate actively
and visibly
3. Create coalition
4. Communicate directly
Apply methodology
Formulate strategy
Develop plans
Support other ‘doers’
Executives and
senior managers
Middle managers
and supervisors
1.
2.
3.
4.
5.
Communicator
Advocate
Coach
Liaison
Resistance manager
1.
2.
3.
4.
Experience
Knowledge
Tools
Expertise
Change
management
resource/team
1.
2.
3.
4.
Design ‘the change’
Manage ‘technical side’
Engage with CM
Integrate CM
Project
team
Project
support
functions
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Executives and
senior managers
Change management resource
What is their role
Middle managers
and supervisors
Change
management
resource/team
Project
team
Project
support
functions
Enable others…
Executives and
senior managers
Effectively fulfill the role of
‘sponsor of change’
Help managers
and supervisors
Effectively coach their employees
through transitions
Help project
teams
Make the bridge between
implementing a solution and
realizing benefits
Middle managers
and supervisors
Change
management
resource/team
Project
team
Help execs and
senior leaders
Project
support
functions
70
Employee-facing vs. enabling
Employee-facing roles
Executives and
senior managers
Middle managers
and supervisors
Enabling roles
Executives and
senior managers
Change
management
resource/team
Project
team
Middle managers
and supervisors
Change
management
resource/team
Project
support
functions
One-to-one interactions
One-to-many interaction
Observable behaviors
Project
team
Project
support
functions
Creation and
implementation of plans
that are executed by the
employee-facing roles
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Executives and
senior managers
Middle managers
and supervisors
Change
management
resource/team
Project
team
Project
support
functions
Do you have the right people
involved in the right way?
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How will you know if your change
has been effective?
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“Begin with the end in mind.”
-- Stephen R. Covey from “The Seven Habits of Highly Effective People”.
74
… and, measure your progress
accordingly …
75
Two points of measurement:
Organizational perspective

Outcome:


Did the project deliver the
intended results?
Organizational
Current
Transition
Process:


Was the project delivered on
time and on budget?
Were milestones met along
the way?
Future
#s
Organizational
Current
Transition
Future
76
Two points of measurement:
Individual perspective

Outcome:


Individual
Are employees doing their
work the “new way” required
by the project?
Current

How well did employees
make the transition?
How well did we** support
that transition?
Future
Individual
Process:

Transition
Current
Transition
Future
A D K A R
77
Framework for measurement
Organizational
Speed of adoption
 Utilization rate
 Proficiency

Process
Outcome Business performance
against objectives
Individual
Individual change
management:
-Awareness
-Desire
-Knowledge
-Ability
-Reinforcement
Individual
performance for
each job role
78
Framework for measurement
Organizational
Speed of adoption
 Utilization rate
 Proficiency

Process
Measured by group, function,
and or location
Individual
Individual change
management:
-Awareness
-Desire
-Knowledge
-Ability
-Reinforcement
Measure by
assessment
Business performance against objectives,
such as:
Outcome
Financial Performance
 Quality of product, service
 Quality of worklife
 Speed of implementation
 Etc.

Individual performance for
each job role
Performance towards
objectives, as defined
in personal objectives
with immediate
manager
79
Revisited: Begin with end in mind.
Measure the “right” things for this
change, at the organizational level and
the individual level
Change management is the process,
tools and techniques to manage the
people-side of change to
achieve the required business outcome
80
“Everyone thinks of
changing the world,
but no one thinks of
changing himself.”
- Leo Tolstoy
81
Summary
82