Accelerated Results with Change Management

transcript

Karen MaskellAzurion Consulting

2016 Spring Seminar Program March 12, 2016

Session Objectives

• What is Change Management?• Why Change Management?• 5 Step Approach to Change• Success Factors• Results

What is Change Management?

Prosci’s definition of change management

• The application of a structured process and set of tools for leading the people side of change to achieve a desired outcome.– Emphasizes the “people side” of change – Targets leadership within all levels of an

organization• executives, senior leaders, managers, supervisors

• Done well: people feel engaged in the change process and work collectively towards a common objective, realizing benefits and delivering results.

What is Change Management?

Why Change Management?

1. Global Responsibility2. Consumer Awareness3. Globalization4. The Increasing Rate of Change5. The Workforce of the Future6. Aging Population7. 21st Century Quality8. Innovation

Key forces influencing the future of quality

Why Change Management?• Cannot take quality for granted• Quality is the competitive advantage

Then NextGoal Prevention PerfectionQuality of Product EnterprisePhilosophy Processes CommunitySector Manufacturing EveryWaste Tolerable AbhorrentFocus Product/Service ExperienceMethodology Control/ Improvement Change/Transformation

we will barely be able to keep pace with changes in the nature of customer demand, and it is a field that is changing perhaps faster than any of us realize.

everything will affect everything else, both for better and for worse.

the need for high-quality information to be broadly shared to allow for timely decisions.

• Connects to business results• Increases probability of project success• Translates to financial performance

• Mitigates negative consequences• Manages employee resistance to change• Builds change competency Gaining importance

as we deal with the increasing rate of change

Why Change Management? Effective change management decreases

the uncertainty associated with changes that impact how people

do their jobs – improving the ROI of projects that

impact people

1st communication or1st rumor

Dept. A

Dept. B

Dept. C

Dept. D

Turnover of valued employeesTangible customer impactActive resistanceOpt-out of the change

Productivity lossEmployee dissatisfactionPassive resistance

Prosci® Flight Risk Model

Poor(n=177)

Fair(n=441)

Good(n=561)

Excellent(n=107)

Overall effectiveness of change management program

Correlation of change management effectiveness to meeting project objectives

*Data from 2007, 2009 and 2011© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report

Prosci Correlation Analysis

With excellent change management, projects are six times more likely to meet objectives than with poor change management

Poor(n=215)

Fair(n=532)

Good(n=679)

Excellent(n=116)

Correlation of change management effectiveness to staying on schedule

*Data from 2007, 2009 and 2011

63%71%

Poor(n=188)

Fair(n=498)

Good(n=661)

Excellent(n=116)

Correlation of change management effectiveness to staying on budget

*Data from 2007, 2009 and 2011

Change is a process…

Current State Transition Future State

Not an event.

Five Tenets of Change Management#1 We change for a reason.#2 Organizational change requires individual

change.#3 Organizational outcomes are the collective

result of individual change.#4 Change management is an enabling

framework for managing the people side of change.

#5 The application of change management helps to realize the benefits and desired outcomes of change.

When to start Change Management?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Project closure

Project implementation

Project design

Project planning

Project initiation

Percent of respondents

When did you start CMactivities this time?

When would you start CMactivities next time?

When would you start Change Management activities next time?

5 building blocks of successful change

Awareness Awareness of the need for change

Desire Desire to participate and support the change

Knowledge Knowledge on how to change

Ability Ability to implement required skills and behaviors

Reinforcement®

Reinforcement to sustain the change

Prosci®

ADKAR®

You cannot manage change at an organizational level until you know how to manage change with a single individual.

AwarenessChange begins with understanding why.

Build the Case for Change• What is the nature of the change?• Why is the change needed? Why now?• What is the risk of not changing?

ERROR: LACKING A VISION

Resistance is normal. Resist pain of change, fear of

unknown Lack of awareness is the most

common reason for resistance. 90% of resistance evaporates

by answering “Why?”

DesireChange involves personal decisions

• A personal choice• A decision to engage &

participate• Awareness = Desire

ERROR: NOT ESTABLISHING A GREAT

ENOUGH SENSE OF URGENCY

Often considered the most difficult step to achieve

KnowledgeChange requires knowing how

• Understanding how to change• Training on processes & tools• Learning new skills

AbilityChange requires action in the right direction• The demonstrated capability to

implement the change• Achievement of the desired change in

performance or behavior• Knowledge = Ability hands-on practice, support from

coaches, subject matter experts policies, processes, procedures

that support and/or interfereERROR:

NOT REMOVING OBSTACLES TO NEW VISION

ReinforcementChange must be reinforced to be sustained

Recognition & rewards that sustain the change

Actions that increase the likelihood that a change will be continued

ERROR: NOT CREATING AND

CELEBRATING SMALL VICTORIES

Success Factors

2014 additions: Engagement Integration with project management

Success Factors - Sponsorship• Active. Visible. Engaged.

– Talk about it – formally & informally• Communicate directly with employees at all levels

– Demonstrate commitment – in words & actions• Build a coalition of sponsorship

– Employees evaluate importance of change based on what they see and hear from senior leaders

– Involvement, Commitment, Action– Sponsor is a verb – not a title ERROR:

NOT CREATING A POWERFUL COALITION

OF SPONSORSHIP

Success Factors - Sponsorship• Assess Sponsor Competencies

– Is the sponsor at the right level?– Does sponsor support the change?– What is sponsors track record?– What is sponsors communication style?

• Prepare the sponsor– Clear Responsibilities– Training, Coaching, Assistance– Regular Meeting– Accountability– Examples:

• good sponsorship activities• common mistakes

Project teams ranked over 50% of their sponsors as having a moderate to low understanding of their role in managing the people side of change and graded them “average to poor” in terms of sponsorship activities.

Success Factors – Communication

• Employees often do not hear or internalize key messages from managers, despite efforts to create the most complete & clear communications.

Preferred senders of change messages? Vision: CEO / Executive / Sponsor Impact: Immediate Supervisor/Manager

ERROR: UNDER COMMUNICATION

VISION BY A FACTOR OF 10

Success Factors – Communication• Send the right message• To the right audience• At the right time• From the right sender• Through the right channel

Often must hear a message 5 to 7 times before message is internalized.

Success Factors – Communication

• Ethos – Trust, Credibility• Logos – Logical, Use of Reason• Pathos – Emotion Influence via inspiration Focus on the future: possibilities and

opportunities NOT fears and regrets

Success Factors – CommunicationWhat Do Followers Want From Leaders?Trust: Your Word is Your Bond

– Respect, Honesty, IntegrityCompassion: Genuine Caring

– Understanding, Friendship, Happiness, Love Stability: Constancy in Times of Change

– Security, Strength, Support, PeaceHope: Aspirational for the Future

– Direction, Guidance, Faith

Success Factors – CommunicationGo beyond Communication to EngagementGALLUP’S Q12® SURVEY QUESTIONS THAT MEASURE EMPLOYEE ENGAGEMENT EMPLOYEE’S NEEDS

Success Factors – CommunicationGo beyond Communication to Engagement

Engagement Increases the Odds of Success

17%25%

30%37%

42%46%

50%54%

58%63%

70%75%

1st 5th 10th 20th 30th 40th 50th 60th 70th 80th 90th 95th 99th

Probability of Above-Average Performance*

Engagement PercentileAnalysis of business units across organizations in Gallup’s database

*Composite of absenteeism, turnover, shrinkage, safety, quality, customer metrics, productivity, and profitability

RAKDAR

RAKDA R

RAKDAR

Change with one person

Or five people…

Or twenty people…

Or 1000 people…

Success Factors - Approach

Time (periods)

- Exceptionally managed change cash flowPoorly managed change cash flowExpected cash flow

Prosci’s ROI of Change Management Model

Exceptionally ManagedPoorly ManagedExpected

Results

Great Results Beginwith Great Questions

Karen MaskellChange Management ConsultantGallup Certified Strengths CoachPast Chair, ASQ Minnesota Sectionkmaskell@gmail.com612.217.0751

Accelerated Results with Change Management

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