CHANGE READINESS:Overcoming Barriers to
Change
Brian Lines, PhD, PE, FMP
The Simplar InstituteUniversity of [email protected]
Jake Smithwick, PhD, MPA, FMP
The Simplar InstituteUniversity of North Carolina at Charlotte
• 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
DBB
CMAR
DB
IDIQ
JOC
Low Bid
IPD
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
OCM Case Study in FM“Too much work to write
it all down!”
OCM Case Study in FM
“Too complicated!”
OCM Case Study in FM
“Hurts our wrists!”
OCM Case Study in FM
“No! No! No!”
By shift?By crew?
By equipment/technology?
OCM Case Study in FM
“Meh. Too much trouble.”
OCM Case Study in FM
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
14%
28%26%
11%
3%
10%
5%3%2%
10%
19%
22%
15%
17%
6%8%
0%
5%
10%
15%
20%
25%
30%
Championing& Initiating
ActivelySupporting
PassivelyParticipating
ReluctantlyComplying
CovertlyAvoiding
Openly NotParticipating
PassivelyOpposing
ActivelyOpposing
MOST Successful Change Initiatives (top 33%)
LEAST Successful Change Initiatives (bottom 33%)
N=234
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
3% 3%
8%
20%
17%
14%13%
23%
3%
15%
7%5% 5%
16%
29%
19%
0%
5%
10%
15%
20%
25%
30%
InstructionalVideos
Speeches Manuals &Guidebooks
InteractiveWorkshops
On-the-JobSupport
Meetings Memos &Emails
TrainingPresentations
MOST Successful Initiatives (Top 18%)
LEAST Successful Initiatives (Bottom 18%)
N=234
Learning CyclesPedagogy vs. Andragogy
• Learning Opportunity #1
• Learning Opportunity #2
• Learning Opportunity #3
• Learning Opportunity #4
• Learning Opportunity #5
~50% total knowledge
~75% total knowledge
~82% total knowledge
~90% 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%
52%
78%
39%
53%
64%
89%
0%
20%
40%
60%
80%
100%
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, [email protected]
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!
Brian Lines, PhD, PE, FMP
The Simplar InstituteUniversity of [email protected]
Jake Smithwick, PhD, MPA, FMP
The Simplar InstituteUniversity of North Carolina at Charlotte
