Change Management 2009

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Wednesday, January 21, 2009Gary Vansuch

A question for you:

What is Change management?

Another question for you:

Have your change management efforts worked as well as you wanted?

“8. My organization is good at managing the “people” side of change initiatives. ”

36%

20%24%

8%2%

10%

0%

10%

20%

30%

40%

StonglyDisagree

Disagree Neutral Agree StronglyAgree

Don't Know& N/A

Almost 1/2 disagreed

Managing change: people

“People” Readiness for change

For corporate process improvement involving systems investments:

28% are abandoned 41% come in behind schedule and/or over budget 80% are NOT used in the way they were intended, or NOT USED AT ALL, 6 months after completion of installation

-- Gartner Group, 2003

Here is what I believe change management is:

The process, tools and techniques to manage the people-side of change to achieve the required business outcome(s)

Have our good intentions for change management addressed this?

The process, tools and techniques to manage the people-side of change to achieve the required business outcome

Do our good intentions for change management address this?

Look carefully at the last part

The process, tools and techniques to manage the people-side of change to achieve the required business outcome

Or, do our good intentions for change management look more like this?

A email memo about the change, from the project team (or maybe, from a senior executive)

A bulletin board about the project or the change A website about the project or the change Another email Some quick training

… and, is this approach successful?

A email memo about the change, from the project team (or maybe, from a senior executive)

A bulletin board about the project or the change A website about the project or the change Another email Some quick training

Change management is not:

Managing the “technical” side of change

Just communication plans

Summary of Key PointsKey point 1: To move from good intentions to good results, we have to realize that effective change management is more than just a few pieces of communication

Key point 2: To move from good intentions to good results, we have to realize that we (the “changers”) may be “living” in the future state, while everyone else (“the changees”) is living in the present

Key point 3: To move beyond good intentions, effective change management MUST be focused on helping individuals change

Key point 4: Individual change is a process

Key point 5: To move beyond good intentions, we need to select and use the tools available to us

Key point 6: To move beyond good intentions, we need the right people involved and engaged in the right ways

Key point 7: Begin with end in mind. Measure the “right” things for this change, at the organizational level and the individual level

Key point 1: To move from good intentions to good results, we have to realize that effective change management is more than just a few pieces of communication

Change management is the process, tools and techniques to manage the people-side of change to

achieve the required business outcome

Benchmarking findings Causes of resistance Employees:

1. Not aware of the business need for change

2. Lay-offs were announced or feared

3. Unsure if they had the skills needed for success in the future state

4. Comfort with the current state

5. Believed they were being asked to do more with less, or do more for the same pay

Managers: 1. Loss of power and

control

2. Overloaded with current responsibilities

3. Lacked awareness of the need for change

4. Lacked the required skills

5. Fear, uncertainty and doubt

Can mere communications address these?

Key point 2:

To move from good intentions to good results, we have to realize that we (the “changers”) may be “living” in the future state, while everyone else (“the changees”) are living in the present future

Three Phases of Change: How people experience change

Current State

Transition State

Future State

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”

Future State

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

Transition State

The transition state creates stress and anxiety

Current State

Transition State

Future State

Key point 2, revisited: To move from good intentions to good results, we have to realize that we may be “living” in the future state, while everyone else is living in the present

People will resist change, but not because they are being contrary

“better the devil you know is better than the devil you don’t”

Key point 3: Effective change management MUST be focused on helping individuals change

Successful change addresses both the technical and the people side

Solution is designed, developed

and delivered effectively

(Technical side)

Solution is embraced, adopted and utilized

effectively(People side)

= CHANGE SUCCESS

+

Individual PEOPLE change, NOT organizations

Current Transition Future

Project Management

Change Management

Individual change management it theCenterpiece 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.

From ADKAR: a model for change by Jeff Hiatt

A

D

K

A

R

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

Individual

How I do my job today

How I will do my job after the change is

implemented

From:

To:

Current Transition Future

Current Transition Future

Current Transition Future

Current Transition Future

Key point 3, revisited: To move beyond good intentions, effective change management MUST be focused on helping individuals change

From an organizational perspective, we need to determine what “we”** can do to help individuals change

Key point 4: Individual change is a process

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The five building blocks of successful individual change

Awareness of the need for change

Desire to participate and support the change

Knowledge on how to change

Ability to implement required skills and behaviors

Reinforcement to sustain the change

ADKAR is the (relatively) easy-to-remember acronym

ADKAR

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 sendersof change messages

Top-level executives and senior leaders when the message pertains to the business need for change and alignment of the change with the 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).

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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?

Not Everyone Changes at the Same Pace

Address the needs of each INDIVIDUAL

Recommendation:Create a Change Management Profile for Each Employee

Key point 4, revisited: Individual change is a process

From an organizational perspective, we need to determine what “we”** can do to help individuals

Key point 5: To move beyond good intentions, we need to understand, select and use the tools available to us

Some Key Change Management Tools

Communications

Sponsor Roadmap

Coaching

Training

Readiness / Resistance Mgt.

These channels enableEffective change management

Mapping the tools to the personal change elements (ADKAR)

These channels enable project

team to facilitate organization

through phases of ADKAR.

Communications

Sponsor Roadmap

Coaching

Training

Awareness

Desire

Knowledge

Ability

Reinforcement

Awareness

Desire

Knowledge

Ability

Reinforcement

Readiness / Resistance Mgt.

Key point 5, revisited: To move beyond good intentions, we need to select and use the tools available to us

Use the right tools, in right place

Communications

Sponsor Roadmap

Coaching

Training

Readiness / Resistance Mgt.

Who is this “We”

Key point 6: To move beyond good intentions, we need the right people involved and engaged in the right ways

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Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

Change management requires a system of ‘doers’

Each ‘gear’ plays a specific role based

on how they are related to change

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Change management roles

Role Ideal implementationChange mgmt resource/team

“I develop the change management strategy and plans. I am an integral part of project success.”

Executives and senior managers

“I launch (authorize and fund) changes.”“I sponsor change.”

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 implementationChange 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 managers

“I gave you funding and signed the charter – now go make it happen!”

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 mgrsWhat is their role

1. Participate actively and visibly throughout the project

2. Build a coalition of sponsorship and manage resistance

3. Communicate directly with employees

Not just signing checks and project charters!

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Middle mgrs and supervisorsWhy are they important

They are close to the people who adopt the change They play a role in all types of change in the organizationThey need to be trained to be successful

Executives and senior leadersExecutives and senior leaders

Front-line employeesFront-line employees

Middle managers and supervisors

Executives and senior leadersExecutives and senior leaders

Front-line employeesFront-line employees

Middle managers and supervisors

Macro – top-down changes

Micro – daily changes

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Middle mgrs and supervisors What are their roles

Role 1 – Communicator

Role 2 – Advocate

Role 3 – Coach

Role 4 – Liaison

Role 5 – Resistance manager

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Project teamWhy are they important

Drive the technical side of change Design solutions Develop solutions Deliver solutions

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Project teamWhat is their role

1. Design the actual change

2. Manage the ‘technical side’ of the change• Charter, business case, schedule, resources,

work breakdown structure, budget, etc.

3. Engage with CMgt team/resource

4. Integrate CMgt plans into project plan

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Project support functions

Examples HR OD Training Communication SMEs

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

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Mapping change management roles

1. Authorize and fund 2. Participate actively

and visibly 3. Create coalition 4. Communicate directly

1. Design ‘the change’ 2. Manage ‘technical side’ 3. Engage with CM 4. Integrate CM

1. Communicator 2. Advocate 3. Coach 4. Liaison 5. Resistance manager

1. Experience 2. Knowledge 3. Tools 4. Expertise

1. Apply methodology 2. Formulate strategy 3. Develop plans 4. Support other ‘doers’

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Change management resourceWhat is their role

Enable others…

Help managers and supervisors

Effectively coach their employees through transitions

Help execs and senior leaders

Effectively fulfill the role of ‘sponsor of change’

Help project teams

Make the bridge between implementing a solution and

realizing benefits

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Employee-facing vs. enabling

Employee-facing roles Enabling roles

One-to-one interactions

One-to-many interaction

Observable behaviors

Creation and implementation of plans that are executed by the employee-facing roles

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Homework: Where is your group?

Role: Who: Understanding: Effectiveness:

Change mgmt resource/team

Executives and senior managers

Middle managers and front-line supervisors

Project team

Project support functions

* Change mgmt group, dept or office

Who in the organization plays each

role?

How well do they

understand their role?

How effectively are they

fulfilling their role?

Key point 6, revisited: To move beyond good intentions, we need the right people involved in the right ways

Middle managersand supervisors

Middle managersand supervisors

Changemanagement resource/team

Changemanagement resource/team

Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

Do you have the right people involved in the right way?

How will you know if your change has been effective?

“Begin with the end in mind.” -- Stephen R. Covey from “The Seven Habits of Highly Effective People”.

Key point 7:

“Begin with the end in mind.” -- Stephen R. Covey from “The Seven Habits of Highly Effective People”.

… and, measure your progress accordingly …

Two points of measurement:Organizational perspective

Outcome: Did the project deliver the

intended results? Process:

Was the project delivered on time and on budget?

Were milestones met along the way?

Current Transition FutureCurrent Transition Future

Organizational

Current Transition FutureCurrent Transition Future

Organizational

#s#s

Two points of measurement:Individual perspective

Outcome: Are employees doing their

work the “new way” required by the project?

Process: How well did employees

make the transition? How well did we** support

that transition?

Current Transition FutureCurrent Transition Future

Individual

Current Transition FutureCurrent Transition Future

Individual

A D K A R

Framework for measurement

Organizational Individual

Process

Speed of adoption Utilization rate Proficiency

Individual change management:

-Awareness-Desire

-Knowledge-Ability

-Reinforcement

Outcome Business performance against objectives

Individual performance for

each job role

Framework for measurement

Organizational Individual

Process

Speed of adoption Utilization rate Proficiency

Measured by group, function, and or location

Individual change management:-Awareness

-Desire-Knowledge

-Ability-Reinforcement

Measure by assessment

Outcome

Business performance against objectives, such as:

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

Key point 7, 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

Summary of Key Points: RevisitedKey point 1: To move from good intentions to good results, we have to realize that effective change management is more than just a few pieces of communication

Key point 2: To move from good intentions to good results, we have to realize that we (the “changers”) may be “living” in the future state, while everyone else (“the changees”) are living in the present

Key point 3: To move beyond good intentions, effective change management MUST be focused on helping individuals change

Key point 4: Individual change is a process

Key point 5: To move beyond good intentions, we need to select and use the tools available to us

Key point 6: To move beyond good intentions, we need the right people involved and engaged in the right ways

Key point 7: Begin with end in mind. Measure the “right” things for this change, at the organizational level and the individual level

“Everyone thinks of changing the world, but no one thinks of changing himself.”

- Leo Tolstoy