Change Management 1

Change ManagementSession 1

What is Organisation Change Management?

• Change Readiness Acceleration

• Change Leadership Development

• Performance Lever Gap Analysis

• Stakeholder Involvement Strategies

• Culture and Values Alignment

• Transition Planning and Management

• Team Development

• Organisational Learning

• Clear and Compelling Business Casefor the Change

• Engaged, Skilled Change Leaders and Sponsors

• Accelerated Change Readiness

• Flexible and Adaptive Workforce

• Leverage Learning Capability

FocusFocus OutcomeOutcome

A structured approach that helps manage the people components duringA structured approach that helps manage the people components duringa business transformation initiative to realise the desired outcomesa business transformation initiative to realise the desired outcomes

A structured approach that helps manage the people components duringA structured approach that helps manage the people components duringa business transformation initiative to realise the desired outcomesa business transformation initiative to realise the desired outcomes

Why the need for Change Management?

SOLUTION IDENTIFICATION

WRONG RIGHT

SO

LU

TIO

N

IMP

LE

ME

NT

AT

ION

EF

FE

CT

IVE

INE

FF

EC

TIV

E

I

III

IV

II70% of

occurrences

10% of occurrences

10% of occurrences

10% of occurrences

The value of MIS Upgrade Project is realised only through successful implementation

CellCell Impact on DesiredBusiness Objectives

Impact on DesiredBusiness Objectives

II FailureFailure

IIII FailureFailure

IIIIII FailureFailure

IVIV SuccessSuccess

Why efforts fail

PERCEPTION

TECHNOLOGY INFRASTRUCTURE MANAGEMENTOF CHANGE

Why efforts fail

PERCEPTION

TECHNOLOGY

REALITY

INFRASTRUCTURE

MANAGEMENTOF CHANGE

Commitment versus Compliance

Commitment building costs are significantly less than the cost of:

� managing post-implementation resistance� compromised implementation efforts� project failure

Pay now...

or pay later?

Commitment versus Compliance

Commitment is a powerful phenomenon in transition management

Commitment generates productive behaviour without the need for monitoring

Compliance may result in similar behaviour, but rarely generates initiative. Compliance strategies rely on external enforcement

Detailed Workplan

Proposed Approach to

Organisational Change Management

Phase 1

Change Readiness Assessment

WhatWhatWhatWhat

HowHowHowHow

BenefitBenefitBenefitBenefit

Value ofValue ofApproachApproachValue ofValue ofApproachApproach

Identifies key factors which may help or hinder the change process andis used to determine BIMB’s readiness to change. Action plans can thenbe developed to leverage strengths and minimise potential risks.

Identifies key factors which may help or hinder the change process andis used to determine BIMB’s readiness to change. Action plans can thenbe developed to leverage strengths and minimise potential risks.

A series of one day workshops delivered to a select number of staffrepresenting identified stakeholder groups. Surveys and other toolswill be used to identify potential risks to MIS implementation.

A series of one day workshops delivered to a select number of staffrepresenting identified stakeholder groups. Surveys and other toolswill be used to identify potential risks to MIS implementation.

� Action plans to address implementation issues� Greater ownership and awareness of MIS Upgrade Project

� Action plans to address implementation issues� Greater ownership and awareness of MIS Upgrade Project

� Structured approach to identify potential implementation risks� Consistent application of E&Y world-wide OCM tools� Objective methods to determine potential implementation risks� Involvement of stakeholder groups throughout Bank� Comparison of perceived risks across management levels and locations� Comparison of perceived risks over time

� Structured approach to identify potential implementation risks� Consistent application of E&Y world-wide OCM tools� Objective methods to determine potential implementation risks� Involvement of stakeholder groups throughout Bank� Comparison of perceived risks across management levels and locations� Comparison of perceived risks over time

Change Readiness Assessment

Powerful Powerful Business Business CaseCase

VisionVisionClarityClarity

ChangeChange Leadership & Leadership & AccountabilityAccountability

Change Change Specific Specific CommunicationCommunication

Integrated Integrated Planning Planning & Teams& Teams

Increased Increased Change Change

CapabilityCapability

AlignedAlignedPerformancePerformance

& Culture& Culture

Stakeholder Stakeholder CommitmentCommitment

Implementation Factors for Success...

Communications Strategy and Plan


Determines the strategies, goals, themes, messages and vehicles used tocommunicate with key stakeholders (internal and external) throughoutthe duration of the MIS Upgrade Project.

Determines the strategies, goals, themes, messages and vehicles used tocommunicate with key stakeholders (internal and external) throughoutthe duration of the MIS Upgrade Project.

Working directly with Project Teams and Task Force staff, drawingon the results of the Change Readiness Assessment and using Consultant’smethods to identify most appropriate communications methods.

Working directly with Project Teams and Task Force staff, drawingon the results of the Change Readiness Assessment and using Consultant’smethods to identify most appropriate communications methods.

� Accelerates contact, awareness, understanding and acceptance of the intended changes� Reduces stakeholder resistance resulting in positive action (thinking and behaviour)� Greater ownership and awareness of MIS Upgrade Project

� Accelerates contact, awareness, understanding and acceptance of the intended changes� Reduces stakeholder resistance resulting in positive action (thinking and behaviour)� Greater ownership and awareness of MIS Upgrade Project

� Structured approach to develop communication plans� Consistent application of Consultant’s world-wide OCM tools� Greater re-use of data collected during Change Readiness Assessment

� Structured approach to develop communication plans� Consistent application of Consultant’s world-wide OCM tools� Greater re-use of data collected during Change Readiness Assessment

WhatWhatWhatWhat

HowHowHowHow


Communications

Building Commitment Through Communications is a process...

Time

PreparationPhase

AcceptancePhase

CommunicationPhase

GrudgingCompliance

FormalCompliance

GenuineCompliance

Installation InstallationInstallationCommitment/Compliance

Threshold

DispositionThreshold

Adoption

Institutionalization

Internalization

Understandthe Change

Positive Perception

Understandthe Change

Awareness

Awareness

Awareness

I ContactNoncommitment Noncommitment Noncommitment

OC160

Change Facilitator Network


Establishing an internal network of change champions to build awarenessand understanding of change management principles.Establishing an internal network of change champions to build awarenessand understanding of change management principles.

Network is established initially by involving client staff in a one dayworkshop to explore business change principles and concepts withinthe context of the MIS Upgrade Project.

Network is established initially by involving client staff in a one dayworkshop to explore business change principles and concepts withinthe context of the MIS Upgrade Project.

� Establishing a change infrastructure of staff who will promote the Bank MIS Upgrade Project� Generating greater communication across the branch network� Involvement of those most affected by the changes � Greater understanding of change and their important role in the process

� Establishing a change infrastructure of staff who will promote the Bank MIS Upgrade Project� Generating greater communication across the branch network� Involvement of those most affected by the changes � Greater understanding of change and their important role in the process

� Structured approach to managing change� Opportunities for testing management potential� Build on Change Readiness Assessment results� Develop a link to customer facing staff in the branches� Opportunities for breaking down barriers between branches

� Structured approach to managing change� Opportunities for testing management potential� Build on Change Readiness Assessment results� Develop a link to customer facing staff in the branches� Opportunities for breaking down barriers between branches

WhatWhatWhatWhat

HowHowHowHow


Change Facilitator - Tips

Involve those most impacted by the changes Develop objective method for selecting candidates Select staff of equivalent seniority Select staff who are:

� well regarded by their peers� credible� reliable� eager to learn and be involved� “opinion leaders”

Do not select staff:� who are perceived to be management mouthpieces

Transition Management Plan


Incorporates data gathered during the Change Readiness Assessment,Change Facilitator workshops and communication planning stages toproduce a comprehensive roadmap addressing the human aspects ofchange for the duration of the project. It will also provide other peoplerelated issues which are beyond the scope of Phase 1.

Incorporates data gathered during the Change Readiness Assessment,Change Facilitator workshops and communication planning stages toproduce a comprehensive roadmap addressing the human aspects ofchange for the duration of the project. It will also provide other peoplerelated issues which are beyond the scope of Phase 1.

Working with project managers and the Task Force to thread together allrelevant information.Working with project managers and the Task Force to thread together allrelevant information.

� Provide a Blue Print for Bank to manage change beyond March 1998� Provide further issues to consider to help align business needs with desired behaviour

� Provide a Blue Print for Bank to manage change beyond March 1998� Provide further issues to consider to help align business needs with desired behaviour

� Structured approach to managing change� Benefit of E&Y experience across similar IT enabled change projects� Assistance with the identification of HR issues using Consultant’s Organisational Alignment methodology

� Structured approach to managing change� Benefit of E&Y experience across similar IT enabled change projects� Assistance with the identification of HR issues using Consultant’s Organisational Alignment methodology

WhatWhatWhatWhat

HowHowHowHow


Looking into the future

STAFFING & DEPLOYMENT

ALIGNED CULTURE

ORGANISATIONAL STRUCTURE

COMMUNICATION EDUCATION & DEVELOPMENT

LEADERSHIP EFFECTIVENESS

MEASUREMENT & REWARD


The value of Organisational Alignment

Drives organisational behaviour needed for process, technology and culture changes

Creates the environment where desired behaviours are communicated, modelled, measured and rewarded

Reinforces and sustains desired behaviours over time through alignment of human and organisational systems


OrganisationalPerformance

Levers

OrganisationalPerformance

Levers

Communication

Education & Development

Leadership Effectiveness

Organisational Structure

Measurement & Reward

Staffing and Deployment

Communication

Education & Development

Leadership Effectiveness

Organisational Structure

Measurement & Reward

Staffing and Deployment

Current StateBehaviour

Current StateBehaviour

Future StateBehaviour

Future StateBehaviour

� Act without consideration of other units and their purpose� Withhold information from others� Elevate issues / problems upwards for resolution� Discount all ideas “not invented here”� Focus on own needs rather than those of the organisation

� Act without consideration of other units and their purpose� Withhold information from others� Elevate issues / problems upwards for resolution� Discount all ideas “not invented here”� Focus on own needs rather than those of the organisation

� Work with other units to address problems and opportunities� Share information with others� Take initiative to solve problems� Search out and welcome new ideas� Focus on the needs of the company, the customers and other employees

� Work with other units to address problems and opportunities� Share information with others� Take initiative to solve problems� Search out and welcome new ideas� Focus on the needs of the company, the customers and other employees