Critical Components of Effective Change Management

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 1North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2015 1

DELIVERING THE PROMISE …

© Chazey Partners 2016

Understanding the Critical Components of Effective Change

Management

Workshop10:45am-1:00pm

March 8, 2016

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 2

Objectives of Understanding the Critical Components of Effective Change Management

Regardless of where your organization may be on the maturity spectrum of shared services, change is a constant, and the ability to manage change as part of your day-to-day operations is crucial to ensure the cultural transformation needed for execution and growth.

During this workshop we demystify change management and employee engagement techniques by exploring the practical applications, tools and latest practices.

Objectives include allowing you to:Enable on-going change for sustainable support and business resultsManage cultural changes while keeping employees engaged/motivatedMaster ongoing communication that is relevant and resonates with stakeholders and employeeGain an improved understanding of change management

ToolsProcesses

Practical tools or ideas that can be implemented after the conference


Agenda

Chazey Partners Background

Breakout 1

Goals for the Workshop

Change Management Overview

Overview of Models

Transformation

Change Management

Breakout 2

Change Management Successes and Challenges

Best Practices in Change Management

Breakout 3

Addressing Challenges

Wrap Up/Conclusion

North America | Latin America | Europe | Middle East & Africa | Asia-PacificNorth America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 4North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 4

Who We Are: Founded 2006 • Global offices headquartered in California • Over 50 full-time and 70 specialist resources

What We Do: Strategic advice • Project management • Technical & domain expertise • Business continuity

Where We Focus: Transformation of the back office • Human resources • Finance • IT • Procurement • Facilities

The Chazey Difference: Continuity of staff • Practitioners first • Knowledge transfer • Engage client in transformation


Who We Have Worked With


Goals for the Workshop

Breakout 1

Breakout into groups of 8 people

Introductions – Name, Title/Role and Company

Share your goal for the workshop

Write your goals on the flip chart


• Treats its internal clients as if they were an external client. Treats them with the same level of respect and service that external clients expect

Elevator Speech

• Provides non-core services to the “business”, employing a specialist team, geographically unconstrained, and focusing on the requirements of the internal client. This involves a philosophy and approach totally unlike traditional “corporate-driven” centralization.

Definition

• Has the goal of providing high quality, non-core, but mission critical services(which can include both repetitive common processes and more specialized professional services) to the business at lower cost and more efficiently than the business could otherwise provide for itself.

Goal

• Achieves cost savings and higher quality of service by leveraging organizational re-alignment, economies of scale, technology, lower cost locations, client interaction framework, standardized end-to-end processes, and best practices.

How-To

What Exactly is Shared Services?


Structures have Benefits & Challenges

Remote from business

Unresponsive and inflexible

No Business/ Operational control over costs

Viewed as central overhead

Prevalence of shadow operations

Centralized

Challenges

Disparate processes

Multiple standards

Duplication of effort

Different control environments

High cost and costs unclear across the business

Not scalable

Decentralized

Challenges

Responsive to Business and Operational needs

Business/ Operations control decisions

Customized solutions to meet Business/ Operational requirements

Benefits Shared

Highly client focused

Commercially driven

Service Partnership Agreements

Clear unit costs

Flexible delivery

Clear understanding of drivers and activities

Common systems and support

Consistent standards and controls

Tight control environment

Economies of scale

Benefits


Be clear on your purpose/intent, and understand the different potential components of “Change Management”.

Remember the 3 C’s

Communication

You own the message, generally one-way information transfer

Consultation

Recipient can influence/impact message, but you have ultimate veto/decision

Collaboration

You do not control or ultimately own the final outcome. You agree to agree with the outcome and direction to be taken.

The Three C’s of Effective Change Management


Change Management

Change is personal, affects you individually and benefits the organization collectively. “What’s in it for me?”

Shared services (as with many other similar programs) is about transformation, about continuously looking at your processes, policies, technology and ways of working together with the best skills and people available.

Being successful with “Change Management” actually requires there to be an actual change. Maintaining the status quo means you haven’t changed anything!

This is all about “doing things differently”. If things are the same as they have always been then you have not changed anything, so why did you bother?


Shared Services Requires Continuous Change Management

Benefit

Tim

e

Cost Reduction• Focus on

cost• Consolidate

and Standardize

• Reduce fixed cost base

Re-engineering and Productivity

Enhancement• Focus on process• Reduce/eliminate

none value-added activities

• Reduce errors and increase rework

• More timeliness and accuracy of information

Value Creation and Continuous

Improvement• Focus on Value• Leverage Shared

Services network and expertise

• Create new services that enable business transformation

Integrated Strategic Service Delivery

• Focus on strategic business drivers

• Create strategic partnerships

• Ensure seamless integration of outsourcing

• Enable a virtual organization


Why Change Management? Business Expectations

Effective transition - maintain business stability/minimise business disruption

Delivery of the business case

Increased efficiency, improved control

High expectations for a higher quality/efficiency of service

Low tolerance for lengthy ‘stabilization’


Why Change Management?

ImplementInstall

Let’s make sure

people are actually

using the new

technology to deliver

results

Let’s just get the

technology in on

time and deliver

some training

The problem with the simple “on time/on budget” mentality of

traditional project management


1. Business Case and Imp Plan

2. Design 3. Build4.

Deploy

5. Stabilize

& Optimize

Transform in the Design/Build Phases

The 5 key phases of a Shared Services project

This can be an initial transformation or growth to a new phase

Change Management is part of all stages of a project, although most work is undertaken through the design and build phases


Change Management Curve

What we think it looks like

Current State

Future State

Take personal responsibility

Use in Daily Work

Buy-in

Realize is good idea

Understand the change

Hear about the change


Change Management Curve

What it really looks like


Goal of a Change Management Program

The goal is not to eliminate effects of change…

Time

Imp

act

Positive

Negative

Managed Change

Unmanaged Change

Accelerating Change

Reducing Negative Consequences


“Real Life” Examples

Government of New Brunswick’s NBISACollaboration criticalDanger of over-collaborating

Coca-Cola Enterprise’s Implementation of a New SSC Greenfield site in BulgariaCompletely new approach for the companyRequired significant sellingUnderstanding of culture impact was criticalRecognized these points in change management approach

May Gurney addressed resistance to changeIdentified resistance pointsExposed resistance points and managed change

International Baccalaureate – Poorly Managed ChangeRecovery Strategy necessary due to poor initial start

Need to constantly “sell” the change


Change Management Successes and Challenges

Breakout 2

Breakout into groups of 8 people

Share an example of an effective change management tool or practice in your organization

Share a change management challenge from your current project

Choose 1 or 2 of the challenges to share with the entire group


Change Management – Chazey Approach

• Change Management is critical to success

• Our experience confirms that an early focus on Change Management is essential to develop, secure and maintain Sponsorship and Stakeholder buy-in

• Successful change management addresses the human elements throughout the development of a robust Shared Services model including:

• Communication Plan• Stakeholder Management • Employee transition • Process Design • SSO Enabling Technologies • Shared Services Organization • Customer Relationship Mgmt/Client Interaction Framework (CIF)• Governance approach • Training • Hiring • Shared Service office /facilities

• A successful change program requires constant selling.


Change Management Cycle

Lessons Learned

Recognize Need for Change

Create Leadership And Change Teams

Develop Vision/Begin

Communication

Conduct a Change Readiness

AssessmentPerform

Stakeholders Analysis

Risk Management

Implement in Steps

Celebrate success & adapt approach

Change Management

Cycle



Kotter’s Model

70% of all major change efforts fail

Source: http://www.kotterinternational.com/our-principles/changesteps/changesteps

Make change stick

Never let up

Produce short term wins

Empower Action

Communicate for buy in

Get the vision right

Build Guiding Teams

Create a sense of urgency



Tools and Forms

Stakeholder Alignment

Value

Three Core Groups

Stakeholder Identification Map

Stakeholder Management Plan


The Value of Stakeholder Management

Stakeholder identification and analysis highlights:

What are my Stakeholders' interests and opinions?

What degree of influence and impact would these stakeholders have?

Potential risks associated with any stakeholder and associated response planning

Groups that should be encouraged to participate in different stages of the project

Communication and stakeholder management planning requirements throughout the project

Stakeholder expectations, how to best manage these and to encourage their involvement in the project


Three core stakeholder groups

Key Stakeholders

Individuals within the

project

Individuals or departments

within the organization

Individuals or groups

outside my organization


Driving support across the organization

The WINN Model

Effective Stakeholder

Management

WHO are the Stakeholders

to the change?

What is their level of

INTEREST & SUPPORT?

Understanding their

communication NEEDS and

delivering these

Assessing their level of

INFLUENCE over a successful

outcome


Stakeholder Analysis

Level of support & drive to change

Leve

l of

infl

uen

ce o

ver

succ

essf

ul c

ha

ng

e

Low support,Low influence

Neutral support,High influence

Low support,Some influence

Neutral support,Low influence

Low support,High influence

Neutral support,Some influence

High support,Little influence

High support,Some influence

High support,High influence


Stakeholder Analysis

Level of support & drive to change

Leve

l of

infl

uen

ce o

ver

succ

essf

ul c

ha

ng

e

Low support,Low influence

Neutral support,High influence

Low support,Some influence

Neutral support,Low influence

Low support,High influence

Neutral support,Some influence

High support,Little influence

High support,Some influence

High support,High influence


“Real Life” Examples

Cendant – the “Command and Control” ApproachInitially may help drive the project forward, but without “proper” change management the project (and change) will falter

“Shared Services” isn’t shared services just because you call it so

Large Medical Company – Senior Stakeholder ManagementSolid plan allows communication and consistency when Senior Leadership changes

Aeromexico – Answering a Key QuestionStrong senior level executive support

Needed to answer the “what’s in it for me” question to support the implementation

Answering this question is key to developing internal resources and showing new opportunities

“Selling the Change” is critical to future success


Addressing Challenges

Breakout 3

Using Challenges identified earlier

Brainstorm as many recommendations as possible

Select group’s best recommendations

Share group’s recommendations with all


Examples

Higher Education

Determine why are you here?

Determine what problem are we trying to solve?

Iowa University System – Complexity

Three Universities with Three Workstreams each

Different Constituents, Stakeholders and Audiences

Federal Government

Not all of your opponents will face you directly

Face your detractors

“Selling the Change” is critical to future success


Wrap Up

Participant ExpectationsWere they all met?

Key PointChange Management is vital to continuous improvement in Shared Services Organizations

Maintain a practical, not theoretical approach

Questions?

Please fill in the workshop evaluation and visit our stand to discuss further


Key Stakeholder Tools

Additional Best Practices

Appendix


Identifying key stakeholders

Stakeholder Identification Map

Stakeholder Group Stakeholder Name Role Reports to Impact of Project/Change

Other relevant key

contacts, incl: Direct

Reports

Affil iate Leadership

Team A N Other General Manager VP EMEA

Likely redundancies in country; EWC

Issues; improved Finance support

Works closely with VP Sales

EMEA (A N Other 3)

A N Other 2 CFO GM Reduced Finance Team

VP Supply Chain EMEA A N

Other 4)

A N Other 3 VP Sales EMEA CEO Positive -supporter

A N Other 4 VP Supply Chain CEO Neutral currently


Managing key stakeholdersStakeholder Management Plan

Strongly

Opposed

Some

Concerns Neutral Supporter

Current commitment level to project

Desired commitment Level

Stakeholder

Name/Group Role/Group

Level of Influence

over Project

(L)ow

(M)edium

(H)ighLocation

Key concerns and barriers

to change

Implications of failing to achieve

desired commitment level

Suggested change management actions and

approach



5 Tips from the American Society for Training & Development (ASTD)

Personal reputations are at stake in the midst of organizational change. Clarify where and when possible.

Need for Certainty - Lack of information triggers threat.

Perceived helplessness associated with the change effort. Helplessness causes emotional responses such as depression and apathy.

Reinforce pre-existing group relationships

Highlight equity of decision making

Source: http://www.astd.org/Publications/Blogs/Human-Capital-Blog/2013/02/How-Could-Neuroscience-Change-the-Way-We-Manage-Change



Tools and Forms

Role Impact Assessment

Resistance Assessment



Ensure all changes that are medium to high potential to happen with a medium to high impact are incorporated in plans


Process Stream: HR

As of 22 February 2016

Termination: Voluntary Employee Czech Tells manager verbally today.

New process, completes

online form

Doesn't complete form -

only tells manager.

Employee leaves without

HR and others being

notified

X X X X

This is also an issue today.

Need to train employee

and manager.

Termination: Voluntary Manager Czech Notifies local HR today. Will

now notify BSO.

Does not notify BSO so

others not notifiedX X X X X

Job

Aid

on

we

bsi

te

Trai

nin

g

Job

De

sign

/

Re

de

sign

Oth

er,

sp

eci

fy in

com

me

nts

Impact if it

Occurs

Recommended tools/

migration strategies to

address

Comments

Hig

h

Me

d

Low

Hig

h

Me

d

Low

Co

mm

un

icat

ion

Process

Impacted

Business

Role

Country Expected Change Potential Risks/Problems

How Likely to

Occur?


Resistance Assessment

Leadership & Management

Critical Components of Effective Change Management