Integrating Change Management Into Technology and Outsourcing Implementations

An Introduction to Solleva Group and the Architecture of Change℠

Contents

• Introduction• Summary of Capability• Our Approach

– What is Change Management– Straight Talk About the Challenges of Change– The Science Behind Change Management– The Architecture of Change

• Solleva Group Services and History

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Navigating the change• Proven track record of managing change in complex business transitions such as outsourcing

and technology implementations, mergers, divestitures and workforce reductions• Adaptive change management framework that uses behavioral insights as the catalyst for

operational action • An approach that will help you adapt change project requirements to integrate seamlessly

into your technical project plan• Multiple mechanisms for delivery to ensure change is well managed regardless of budget,

resources or project complexity

Sustaining results over the long term• Broad range of capability that uses expertise, solutions, tools and resources to bring together

the components of change management• Complementary expertise, such as process redesign, role definition and HR strategy, to

create the infrastructure required to sustain behavior change• Award winning course development and training designed to facilitate behavior change and

delivered using multiple modalities

Solleva Group provides end-to-end expertise to help you achieve project revenue objectives more rapidly and minimize the cost impact of the risks that inhibit success.

Solleva Group: Building the Capacity to Lead Change

Selected Clients

Our Approach to Managing Change

What is Change Management?

Change Management is the process of aligning how people work and behave to fit specific changes in business strategy, organizational structure, or systems. Change management helps organizations successfully transition from a current state to a new, desired state.

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CurrentState

NewState

“As Is” “To Be”

Transition

Increasing Comfort, Control, and Confidence

Straight Talk About the Challenges of Outsourcing

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Deals for wrong reasons

Client abdicating responsibilities

IT-centricity

Leaving service unchanged

Poor scope management

Governance

Contract Lack of innovation

Relationship

Communication gap

Culture

Quality

Lack of skills

Offshore backlash

Too much, too fast

Industry research has shown a number of reasons why outsourcing initiatives often fail to achieve their anticipated results. The common thread is the human component.

The Bad News: The Research Says . . .

• 30-80% of outsourcing and technology initiatives fail– Dun & Bradstreet 2007 report noted that "25 percent of all outsourcing fails" completely and over

50% of all outsourcing deals do not deliver any substantive benefit at all.– CIO’s Dynamic Market survey reports 62% of IT projects fail to meet their schedules and 25% get

cancelled before completion– 30% of web development teams deliver projects late or over-budget, according to the Ruby Report– A PwC survey found that only 2.5% of the companies surveyed completed 100% of their projects on

time and within budget– Gartner's industry analysts report a staggering 55 to 70 percent of CRM projects fail to meet their

objectives

• 29% of organizations launch initiatives with no formalized approach to change• Despite these statistics, 80% of companies listed leading change as a Top 5 requirement• 85% felt this capability was not as strong as needed in project leaders and teams• Only 14-25% of organizations sought outside expertise to support change

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Despite the known benefits of a structured approach to managing change, budgets, timelines and technical goals often take priority, and as a result, implementations struggle to achieve success.

The Good News . . . You Don’t Need “Change Management”

• People adapt– The question is how rapidly do you need them to adapt

• The “80% solution” is acceptable because it does move organizations forward– The question is how quickly do you need performance

• People figure it out– The question is will project complexity make it more difficult to create solutions

Technical vs. Adaptive Challenges

1. Easy to identify2. Often lend themselves to quick and easy

solutions3. Often can be solved by an authority or

expert4. Require change in just one or a few

places; often contained within organizational boundaries

5. People are generally receptive to technical solutions

6. Solutions can often be implemented quickly—even by edict

Technical

1. Difficult to identify (easy to deny)2. Require changes in values, beliefs, roles,

relationships, & approaches to work3. People with the problem do the work of

solving it4. Require change in numerous places;

usually cross organizational boundaries5. People often resist even acknowledging

adaptive challenges6. “Solutions” require experiments and new

discoveries; they can take time to implement and cannot be implemented by edict

Adaptive

Adaptive challenges require the application of insight, frameworks, and collaborative processes to identify actionable solutions

Why Is Change Difficult?

Behind every human behavior there is an emotional process and a rational process. We assume we are reasonable human beings who think rationally about our decisions. The truth is that most of our decisions are made unconsciously with our emotional mind.

What Does Change Management Accomplish?

Objectives of Managing Change::

• Minimize A: Duration of performance drop-off during transition phase

• Minimize B: Depth of performance drop-offduring transition phase

• Maximize C: Performance level afterimplementation

• Maximize D: Continuous improvement

:

D

Time

Change Implementation

Steady State A

B

CTransition Phase

Continuous Improvement

Stabilize

Resistanceand grief

The feelings people go through when experiencing change are similar to those feelings experienced during grief – and as in the stages of grief people can get ‘stuck’. Change Management helps people through these stages, while minimizing their loss of productivity

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Prod

uctiv

ity

Why Most Approaches to Change Are Not Enough

• A change management methodology, much like an architect’s blueprint, provides the overall design and objectives for managing the human aspects of a project

• It provides a structured plan to help you achieve a desired outcome

• It also gives project resources a consistent way to organize change-related activities and establishes a common language to conduct the work of change

• However, since the context and challenges are different for each organization change, our experience suggests that frameworks aren’t enough

The difficulty leveraging the value of proven change models may lie less in the construct of the model itself, and more in the challenge of applying a rational and uniform framework to the irrational and unpredictable elements of human behavior

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The Value of Adaptive Capability: An Architecture of Change

• No matter how well structured and planned, once a project begins there are obstacles and challenges that require redesigning the plan or creating work-around solutions to help meet broader project objectives.

– Some problems are technical problems that can be solved by applying expertise.

– Others require solutions that are more adaptive and focused on navigating human emotions and behavior.

– Most problems are a combination of both and require a set of capabilities that allow change leaders to navigate the ambiguity and create flexible solutions to keep initiatives on track.

“The architect’s most useful tools are an eraser at the drafting board and a wrecking bar at the site.” Frank Lloyd Wright

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• Successful change architects apply tools, like the eraser and the wrecking bar, to adapt the methodology-driven blueprint to the situational realities encountered on change initiatives

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Project Mgmt 101

Task Master

Division of Labor

Regular Meetings

Tested Tools

Task Clarity

Go to the Balcony

Listen

Find the Real Problem

Be Brutally Honest

Build Relationships

Ask Tough Questions

Our Approach to Change Management

Solleva’s Architecture of Change: Science & Art

The Architecture of Change helps you navigate the inevitable challenges and ambiguity once projects begin by applying adaptive capability in a structured framework that integrates with the technical objectives of projects

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What is Change Science?

Science provides the structure (roles, tasks, milestones) to support change management technical activities. This will help us integrate change into your technical project plan.

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Project Mgmt 101

Task Master

Division of Labor

Regular Meetings

Tested Tools

Task Clarity

.....Science

The Science of Change: Technical Structure

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What is Change Art?

Art provides ways for dealing with the emotionally and behaviorally driven, or adaptive, factors (perceptions, fears, agendas, points of view) of change management.

Art

Go to the Balcony

Listen

Find the Real Problem

Be Brutally Honest

Ask Tough Questions

Build Relationships

The Art of Change: Adaptability

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The Integration of Science & Art is the Difference

Science Initiators• Missed tasks or milestones• Inconsistent messaging• Risk or issue identification

Science Response• Perform stakeholder analysis• Assign Change resources to work

closely with teams• Reevaluate project plan and

determine contingency plan

Art Initiators• Political landscape has changed• Communications between groups

are strained• Project solutions have missed the

mark

Art Response• Identify underlying problems• Reintroduce the 10,000 ft view• Ask the tough questions to get

stakeholders to acknowledge and address the risk

Results: on-time delivery, engaged stakeholders, open communication, meaningful deliverables

Science

Art

Getting Started—What we do

• Understanding the project– We have to know what’s changing in order to anticipate the impact on people– Sales process, due diligence, project initiation

• Assessing organization, culture, project team capability, business requirements– Read on the risks and organization readiness– Helps build the plan

• Building the change team– Train technical project team members on the approach—key to information feed– Establishing common goals and language for project team– Integrated team--

• Building the plan—integrate and timed with technical plan– Business requirements assessment, solutioning and documentation– Build the change work stream plan and Influence the core project/technical plan

• Implementation of plan– Adapt plan to changing requirements– Issues and risks and recommendations to PMO– Deliverables

• Post project activities

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Change Management Tools and Deliverables

• Readiness Assessment– Culture Assessment– Change Capability Assessment– Change Competencies– Organization Infrastructure Assessment

• Change Management Work Plan– Team Charter– Team Critical Success Factors– Project Plans

• Leadership Preparation– Leadership Interview Questionnaire– Leadership Interview Guide– Leadership Alignment Workshop Materials

• Kickoff Meeting Materials‒ Change Management Strategy‒ Work Stream Action Planning Guide

• Stakeholder Management– Stakeholder Profile Guidelines– Stakeholder Maps– Stakeholder Action Plans– Feedback Issue Log– Workshop Materials– Position Descriptions

• Communication– Audience Analysis Matrices– Media Matrices– Materials Templates

• Training– Competency Requirements– Logistics Plan– Workshop Materials– Evaluations

Our change projects have included a number of the following tools and deliverables

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How Solleva Group Supports Change Initiatives

Change Management Advisory Services— Training – Available in half day, full day, and modular formats designed to jumpstart your team and get you headed in the

right direction.— Coaching – Access to senior level consultants who will help you identity overall change framework, develop a project

plan, provide tools and templates and be available for ongoing guidance.— Strategy and Planning – We identify overall project objectives, produce project plans and provide ongoing updates and

reports. Solleva Group can partner with you to perform stakeholder analysis and build action plans for addressing influential and impactful groups appropriately.

Project Management and Coordination– Solleva Group will help you by building detailed project plans, attending project meetings, providing tools and templates

and ongoing project management support. We can help you prioritize your actions, determine resource gaps and manage to key milestones. This allows you to focus on understanding stakeholder needs and shifting attitudes and developing messages to key audience groups.

Complete Consulting Support— Project Assessment and Intervention – We are an objective third party Identify root causes— Communications and Knowledge Transfer – We create stakeholder and project team communications using a variety of

formats that are tailored to align with organization level and corporate brand. We also help you identify learning requirements, develop content and deliver training to make sure end users are prepared for the transition.

— Infrastructure Transformation – We identify the effects that change will have on process, roles and structure and can help you make changes required to sustain the change over the longer term.

Solleva Group works with outsourcing services firms as part of their team, in partnership, or as an independent advisor. We offer a full range of services to ensure project goals are achieved.

Training: Jump-Start Change! Workshop

• Prepare project teams, change leaders and managers to lead change with Solleva Group’s Jump-Start Change! workshop

• Learn practical tips for ensuring the success of your change efforts • In this workshop you will learn:

– The foundational principles for managing change– Best practices research data– How to implement a comprehensive change management process– Powerful tools for planning and preparing for change– How to overcome project resistance and engage key stakeholders – Manage project complexity as well as resources, time, and costs – Integrate key elements of the change process including training, communication, and changes to

organization roles – Avoid some of the most common pitfalls and create and sustain energy throughout the initiative

• Plus, you’ll learn how to take the guesswork out of managing your change and attain the results you envision with Solleva’s five-step action plan!

What Others Are Saying

• The Jump-Start Change! Workshop conducted has added a broader dimension to my PMO thinking about managing corporate change. I have found their integrated science-art model proposition to be thought provoking and their effective tools and roadmap ready to be put to the test, which I am doing already. Simply put, I believe Solleva has raised the bar on the subject of managing corporate change. Senior Director, Regional PMO, Beverages Company

• I love the Art & Science concept! The class will help me to go through the steps with greater depth. HR Director, Hospital

• The delineation between Art & Science forces you to focus on what you may be doing subconsciously to work against effecting change. VP of HR, Fortune 500 Conglomerate

• This class will make me more balanced in not only my professional life, but also my personal relationships. Senior Director of IT, Manufacturing

• I learned that having a plan doesn’t mean you’re done…it’s about planning and consistently retooling. Project Leader, Business Services

Additional Solleva Group Services

ChangeManagement

ProcessRedesign

RoleDefinition& Design

HREffectiveness

TalentAssessment

In addition to our core change services, Solleva Group can provide expertise to help you address the infrastructure required to achieve long-term, sustainable results

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Who Is Solleva Group?

We are a new firm that brings together a team of seasoned experts with a shared passion for helping organizations manage change.

• The Solleva Group can hardly say it has a history. While we are newly formed and not yet a recognized name in the world of change management services, we are anything but new to the world of organization transitions.

• We understand change management from a variety of perspectives and bring deep experience and a proven track record in managing these initiatives.

– Our partners have held executive roles in major companies and have led practice areas at leading consulting and service organizations.

– Our team members’ capabilities span change management, communications, technology, outsourcing, finance, human resources, process standardization, organization and job design, operations management, shared services, . . . and more.

– Our team members have managed a myriad of change initiatives such as technology and outsourcing implementations, merger integrations, divestitures, leadership transitions, restructurings and downsizings, and broad-based culture change for companies of all sizes ---- from major global organizations to regional family-owned businesses.

– Our team members have deep expertise in a variety of industries including financial services, pharmaceuticals, manufacturing, health care, utilities, media, chemicals, business services, education, government, and nonprofits.