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transcript

CHANGE READINESS:Overcoming Barriers to

Change

Brian Lines, PhD, PE, FMP

The Simplar InstituteUniversity of Kansasbrianlines@ku.edu

Jake Smithwick, PhD, MPA, FMP

The Simplar InstituteUniversity of North Carolina at Charlotte

Jake.Smithwick@uncc.edu

• Background• Organizational Change in Procurement & Project Delivery

• Introduction to Organizational Change • Core Concepts

• Change Management Data• Change Adoption & Resistance to Change

• Top 6 Change Management Practices

• Helping Organizations Learn how to Manage Change• Tools & Applications

Agenda

Organizational Change:

• An intentional, planned initiative to alter the organization’s current state of operations

• Examples include: new technology, new processes, restructuring, new management, etc.

Organizational Change Management (OCM):

• Tools, skills, and actions to support change adoption and minimize negative forms of resistance

Definitions

Organizational Change

in Procurement & Project Delivery

Background

• Group of researchers and educators

• Integrated within the parties (clients/buyers and vendors)

• Developed tools, methods, & training to enhance:

– Organizational Transformation

– Procurement & Sourcing

– Project & Risk Management

– Operational Efficiency

– Human Dimensions

– Performance Measurements

– Benchmarking & Workforce

– Facility Management Professional Training

Simplar Institute

• Become a Client of Choice– Attract & Select High-Performing Teams

– Identify & Leverage Expertise

• Become a Performance-Based Vendor– Use performance information to increase hit rate

– Work like an expert for higher profit

• Other things:

– organizational change, human dimensions, benchmarking, exploratory, talent development, education and training, workforce, policy & regulations, standards & templates

Simplar Institute

20+ Years | 100+ Owners

2,500+ Projects | $11+ Billion

Procured

InformationTechnologyNetworking

Data centers

Hardware

COTS software

ERP systems

Help desk services

eProcurement

FacilityManagementmaintenance

landscaping

security service

building systems

industrial moving

waste management

energy management

custodial

conveyance

pest control

Health Insurance/Medical Services

Manufacturing

Business /Municipal /University Services

Construction /Design /

EngineeringInfrastructure

Municipal

Laboratory

Education

Hospital

Financial

Specialty

Renovation

Repair

Maintenance

Roofing

Demolition

Development

Supply chain

Low Bid

dining

multi-media rights

fitness equipment

online education

document management

property management

audiovisual

communications systems

emergency response systems

laundry

retirement fund

material recycling

bookstores

furniture

20+ Years | 100+ Organizations

3,000+ Projects | $11+ Billion Procured

• +$XXB Tech Site

• $100M Office Building

• $1.5B Mainline / Trunkline (100+ projects, 6-10 yrs)

• $400M+ Groundwater Treatment

• $50M Hotel

• $30M Smart Grid Consultants & OCM

• $30M Smart Grid Change Management

• $900M Smart Grid/Meter Replacement (1.5M Electric/700 Water)

• $3.1M Design for $60M Turbine Replacement

• $400K Design + $2.5M Solar Microgrid

Some Recent Efforts – Facilities & Con

• $3M Substations (x2)

• Construction Mgmt List / VOR Program

• COR Program/Audit ($1.2M), Accounting, Other various consultants

• $16M Police Facility (design & CMAR)

• $7M Public Works Operations Facility Design

• $5M Environmental Site Rehabilitation

• $1.2M Capital Project

• $250k Engineering Analysis of Utility Distribution Network

• $10M+ City-wide Parks Program

• Marina Remediation Investigation

• Telecom System - Wire Telephony, Data Network, Video Conferencing & End User Support ($35M)

• Telecom Management Solution ($1.5M)

• Peoplesoft HR, Financial, etc. ($850k per system)

• ERP ($34M-$85M)

• $15M GIS IT

• GIS-Based Asset And Work Management Software and Implementation Services ($600k)

• DMV Legacy System Replacement ($25M)

• CRM Solution ($1M)

• Identity & Access Management Solution ($1M)

• Radio System Upgrade ($1.5M)

• IT Monitoring Solution ($100k)

• EDRM Solution ($500k)

• $4.5M for three Asset Management Systems incl. Electrical Assets, Demand-Side Management, and an Analytics System & Database

Some Recent Efforts – IT Implementations

• Snow Plow Mobile Data Collection ($2M)

• Housing Management System ($200k)

• Wireless Network – Residences ($400k)

• eCourse Evaluation Solution ($400k)

• ePAR People Soft ($600k)

• Asset Management System ($300k)

• ITS Central Control System ($700k)

• Recreation Management System ($600k)

• Mobility Management and Administration System ($700k)

• $2M Sales Enablement & Content Mgmt Software

• $3M HR System

• $50M+ IMD System

• $1M Data Strategy Design

• $5M Financial Software (compensation system)

Introduction to Organizational Change

Core Concepts

• Greatest barrier to learning something new is what we think we already know

Iron Curtain of Knowledge

Dunning–Kruger Effect

• “But we’ve always done it that way…”

• “We already do that…”

• “We don’t have the time…

• “Let’s skip this part, we need to get moving ASAP…”

• “Why don’t we hybrid-ize this portion…”

• “In all my years of experience…”

• “I don’t think these changes will have much of an impact…”

What Does Resistance Look Like?

OCM Case Study in FMSemiconductor Manufacturing Facility

Best ITP Performance in History!!!

OCM Case Study in FM

Change Agent Leaves on Sabbatical

Worst ITP Rates in History!!!

“Well boss, it was going so well, we stopped collecting the data”

OCM Case Study in FM“Too much work to write

it all down!”

“Too complicated!”

“Hurts our wrists!”

“No! No! No!”

By shift?By crew?

By equipment/technology?

“Meh. Too much trouble.”

Be Mindful of the Nocebo Effect

ROI alone does not drive change readiness & acceptance.

It is simply part of the puzzle.

Common Misperception

Change Management Data

Change Adoption & Resistance to Change

Top 6 Change Management Practices

• 500+ cases from Organizations globally– Each case represents a single, large-scale change

initiative within an organization.

– Used average / typical Organizational Change Management practices common to the industry

• Simplar Institute also has 100+ “hands-on” cases we helped with extensively

– With growing sophistication in our OCM approaches

Org Change Benchmarking Study

Change Adoption

Innovators & Early Adopters

(make it happen!)

EarlyMajority

(support it)

LateMajority

(let it happen)

Laggards

(begrudging)

Fighters

(oppose it)

How a Group of People Typically Responds to Change…

Change Adoption

Innovators & Early Adopters

(make it happen!)

EarlyMajority

(support it)

LateMajority

(let it happen)

Laggards

(begrudging)

Fighters

(oppose it)

keep 25% or lessPartialChanged:

Resistance to ChangeObservable Resistance Behaviors

Passive43%

Active20%

Inadvertent37%

Top 4 Resistance Behavios:

1. Reversion

2. Reluctant Compliance

3. Arguing

4. Lack of Transparency

Reactions to Change

28%26%

5%3%2%

Championing& Initiating

ActivelySupporting

PassivelyParticipating

ReluctantlyComplying

CovertlyAvoiding

Openly NotParticipating

PassivelyOpposing

ActivelyOpposing

MOST Successful Change Initiatives (top 33%)

LEAST Successful Change Initiatives (bottom 33%)

1. Effective Change Agents acting as implementation doers & champions

2. The Org & the People can see clear personal benefit

3. Organizational Measurement & Benchmarks

4. Realistic Speed & Timescale

5. Clear understanding of necessary action steps

6. Senior leadership committed to the change initiative

AND… the importance of providing HOPE

What Drives Successful Implementation of a Change Initiative?

Education & Training• Proper education and training reduces internal resistance to change and results in faster organizational

adoption of new methods by a factor of 8x.

• Workshops and Hands-on training at the individual level have proven to increase adoption by 5x on a person’s first project and up to 8x on their second project.

• The training must be consistent

• Application of the new processes/tools etc. must initially be monitored to ensure consistent adoption and usage throughout the organization and its personnel.

People• Effective Change Agents Reduce Resistance by 7x

• 10-20% will Embrace the Change Upfront

• 10-25% will Oppose, Undermine, Avoid, Delay

Leadership• Having a strategic perspective for the implementation and adoption of new methods decreases

resistance of internal personnel by a factor of 6x.

• Leadership’s perspective should be organizational, but the real change occurs at the level of the individual project professional. When teams of individual change, the change becomes transformational.

• Transparency Systems during implementation have Doubled Operational Performance

Research Findings

Communicating the Change Message

14%13%

7%5% 5%

InstructionalVideos

Speeches Manuals &Guidebooks

InteractiveWorkshops

On-the-JobSupport

Meetings Memos &Emails

TrainingPresentations

MOST Successful Initiatives (Top 18%)

LEAST Successful Initiatives (Bottom 18%)

Learning CyclesPedagogy vs. Andragogy

• Learning Opportunity #1

~50% total knowledge

~95%+ total knowledge

Steps to Mastering (Learning) a New Skill

Helping Organizations Learn how to Manage Change

Tools & Applications

Transformational Key

Accountability + Transparency Drive

Behavioral Shift

Fostering Actions:• Education• Measurement• Patience• Forgiveness

The Power of Transparency

30% 29%

Year 1 Year 2 Year 3 Year 4

On-Time On-Budget

Measurement is proven to drive performance

• Adopt new processes, tools, and skills

• 2000+ personnel directly impacted (34k employees total)

• 200+ sites/locations (mills, corporate, plants, etc.)

• 3-5 year vision

• Clear organizational ROI goals for the change

Current Effort Fortune 50 Company

INDIVIDUAL ADOPTION METRICS SITE-LEVEL

ADOPTION METRICS

DIVISION-LEVEL ADOPTION METRICS

Tracking Change Across the Organization

• Identify leaders to assist with increased adoption

• There should be executive visibility into real-time metrics of all sites and divisions

• Can be broken down by the specific change/tool/process

Finding & Training Change Agents

• Partner with local or group leadership

• Train on initiative and change agents

• Internally to identify & invite

– Executive involvement

• Train and support

• Collect regular metrics during the change (real-time feedback)

Identifying & Training Change Agents

Adoption Metrics

• Percent Adoption− Measure of progress of full

implementation of change • Speed of Adoption

− Measure of planned vs. actual implementation milestones achieved

• Percent Adaption− Level of consistency across

organization • Resistance Summary

− By main behavior types (i.e. avoidance, reversion, reluctant compliance, etc.)

• Performance in all training types:− Attendance− Participation− Performance in hands-on

assignments/homework• Supervisor and Change Agent

measurement− Adoption and application− Knowledge transfer− Quality of application− Mastery of skills− Individual change satisfaction− Resource hours consumption

• 3rd Party assessment− Quality of application− In-person interactions− Consistency of application

INPUTSOUTPUTS

Single Site Report Snapshot

Site-By-Site Roll Up

Establishing a Realistic Timescale:

• Overall

• IT project (software rollout)

• Training Development

• Pilot Tests (Champs + Low Resistors)

• Full Roll Out

• Mapping the learning opportunities & using historic metrics

• Etc.

Creating the Schedule

Closing Remarks

Further Resources

Participation Opportunities

• Things to consider for Change Initiatives within FM Teams:

– Who are potential Early Adopters?

– Willing & open to try something new

– Excited and enthusiastic about the specific change

– Respected by their peers

– Can you start slow and utilize “pilot” trials?

– What outcomes are most motivating to individual team members? Beyond ROI… Instead, focus on customer support, time savings, etc.

– What are the “quick wins” that you can achieve and share?

How can Human Factors be Leveraged in Organizational Change?

Start Here!

• Change Adoption Metrics– Speed | Training Resources | % Adoption vs. % Adaption | Resistance|

• Human Dimensions across all sites:– HEXACO Personality Inventory– Emotional Intelligence– QDiSC-101 Behavioral Assessment

Current Efforts:Human Dimensions & Org Change

• Change is hard

• Traditional approaches yield inconsistent results

• Keys to success– Transparency through measurement (adoption, adaption, etc.)

– Change agents & champions are key

– All training is not equal – Workshops & hands on are best

– Leadership throughout the organization w/ consistent messaging

• Success means:– Goals achieved

– Less pain / Less Effort / Less Cost

– Faster time to full adoption

– Less adaption & Less resistance

Summary for Change Research

Several research studies can be downloaded at:

• https://simplar.com/organizational-transformation/

Additional Resources

• Design/Construction Alternative Project Delivery:• https://kusurvey.ca1.qualtrics.com/jfe/form/SV_3VEtM2du4NbNbDv

• Technology/Software:• https://kusurvey.ca1.qualtrics.com/jfe/form/SV_2oeXnaXRpK6jSSh

• At the end of the survey, please say that you are with IFMA.– With enough responses, we can provide IFMA-specific results so you can

compare with peers!

Opportunity: Another round of the Organizational Change Benchmark

Getting Started:

• Free to participate

• Takes 30 minutes

• Receive your personal assessment

– HEXACO Personality inventory

– QDiSC-101 Behavior Diagnostic

– Emotional Intelligence

Contact:

• Dr. Jake Smithwick, Jake.Smithwick@uncc.edu

HUMAN DIMENSIONS OF TOP-PERFORMING FACILITY MANAGERS

itprojectsummit.com | October 8–10, 2019, Scottsdale, AZ

• For clients/buyers only:– Peer-to-Peer, no vendor sales pitches

– Tools, guidelines, and best practices

– No “easy button” (only real solutions!

Thank you!