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UNDERSTANDING & IMPLEMENTING STRATEGIC UNDERSTANDING & IMPLEMENTING STRATEGIC CHANGE (Part-1)CHANGE (Part-1)
AA Simple & Complete Basic Overview of What Change Is? Simple & Complete Basic Overview of What Change Is? TIPS On Implementing Long-Term Sustainable ChangeTIPS On Implementing Long-Term Sustainable Change
Rich Fierson Human Capital-ROI OCM ConsultingRich Fierson Human Capital-ROI OCM Consulting21
AGENDAAGENDA
1.1. The Elements of ChangeThe Elements of Change2.2. Why Do “We” Make Change Harder Then It IS?Why Do “We” Make Change Harder Then It IS?3.3. The Reality of Change The Reality of Change 4.4. The Reasons & Drivers For Strategic ChangeThe Reasons & Drivers For Strategic Change5.5. Understanding the Psychology of ChangeUnderstanding the Psychology of Change6.6. Why Change Is Really Hard T0 Do - Why Change Is Really Hard T0 Do - RIGHT!RIGHT!7.7. The 10 Change Success Secrets Nobody Tells YouThe 10 Change Success Secrets Nobody Tells You8.8. A Sample of The Prosci/ADKAR Approach (The Next A Sample of The Prosci/ADKAR Approach (The Next
Presentation)Presentation)
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Change Management –My Change Management –My Definition Definition ll • Change management is the Transitioning a
person, group, or company from a Current State, to a desired Future State, Meeting and, Or Exceeding desired Outcomes, and the implementation of Long-Term Structured Processes & Behaviors for the Adoption of Adoption of ChangeChange
3
Prosci-Group
Change Management –My Change Management –My Definition Definition ll
• Change management is the Transitioning of a person, group, or company from a Current State, to a desired Future State, by implementing Long-Term Structured Processes, and Behaviors for the Adoption Adoption of Change, of Change, to Meet and Exceed the to Meet and Exceed the Desired Outcomes forDesired Outcomes for
the Change Initiation the Change Initiation
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Rich Fierson
Change Management – My Change Management – My Definition Definition ll
Change management enables employees
to adopt to a change so that Business
Objectives are realized.
It’s the bridge between solutions and
results, and is fundamentally about people
and our collective role of transforming
change into successful outcomes for our
organizations5
Change Management BasicsChange Management Basics
• The person, or group must be able to: “CARE, CARE, EMBRACE, and ADOPT” ” the new Future State behaviors, processes and Solutions
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Change Management BasicsChange Management Basics
• Change Management provides an organizational framework that enables individuals to adopt new values, skills and behaviors so that business results are achieved!
• Change Management is about engaging the PASSIONPASSION and the ENERGYENERGY of employees around a common and Shared Vision, so that the change becomes an integral part of their work and behavior.
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Change is About Business ResultsChange is About Business Results
1. Business ResultsBusiness Results and managing the People Side of Change are inseparable. That is why change management is more then simply communicating, changing a few processes, even training.
2. Change Management enables organizations to respond to changing market conditions so they can adapt, grow and be profitable
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Change is About Business ResultsChange is About Business Results
3. Change Management enables business results to be realized from the change initiatives you have designed for the organization.
4. It is the connection between business outcomes and change management that resonates the loudest with business leaders and executives
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Prosci – ADKAR Change MethodProsci – ADKAR Change Method
The ADKAR Model captures how a single person or group goes through change. AWARNESS: includes the nature of the Change, & “WHY” “WHY” the change is happening.
DESIRE: is that personal choice to embrace the change and Commit to moving forward.
KNOWLEDGE: includes education & training on the “HOW” “HOW” to change effectively.
ABILITY: is the demonstrated proficiency with new tools, processes and job roles such that the desired outcomes of the change are achieved.
REINFORCEMENT: includes reward, recognition, compensation or other performance management activities that sustain the change for that person
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WHAT ARE THE ELEMENTS OFWHAT ARE THE ELEMENTS OFCHANGE MANAGEMENT?CHANGE MANAGEMENT?
Change ManagementChange Management Project ManagementProject Management
Leadership ManagementLeadership Management
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The Prosci-ADKAR Phases ofThe Prosci-ADKAR Phases ofChange Management?Change Management?
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Phase1 – Preparing for Change
Define Your Change Management Strategy
Prepare Your Change Management Team
Develop your Sponsorship Management Model
PHASE 1
The Prosci-ADKAR Phases ofThe Prosci-ADKAR Phases ofChange ManagementChange Management
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Phase 2 – Managing Change
Develop Change Management Plans
Take Action and Implement Plans
PHASE 2
The Prosci-ADKAR Phases ofThe Prosci-ADKAR Phases ofChange ManagementChange Management
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Phase 3 – Reinforcing Change
Collect and AnalyzeFeedback
Diagnose Gaps & ManageResistance
Implement Corrective ActionsAnd Celebrate Successes
PHASE 3
The Five Critical Tenets of the Prosci Change Process
1. People Change For a Reason! = # 1
2. Organizational Change Requires Requires Individual Change
3. Organizational Outcomes are the CCollective
Results of Individual Change
4. Change Management is the EnablingEnabling
Framework for Managing the People Side
of Change
5. We Apply Change Management to Realize the
Benefits and Benefits and Desired Outcomes of ChangDesired Outcomes of Changee15
From the Prosci Group
The Five Critical Tenets of the Prosci Change Application
1. Jeff Hiatt and the Prosci Groups ADKAR is absolutely right on target, with the exception of one element.
2. Prosci 1st Tenet is “People Need a Reason to Change. TO accomplish this you first must start with
Fist You Must “Ask The Right Questions”
16QQ
We Change for a We Change for a Reason…Reason…• Every individual has an intrinsic need to accept and
acknowledge the benefits of a change (What’s in it for me?, What’s in for: my team, or my group)?
• In order to fully support it. However, cultural factors influence whether the inquiry is approached from a collective or individualistic perspective. Some value systems focus on “What in for “us”; while others take great stock in “what’s in it for “me” as an individual.
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THE 3 FORMS OF CHANGETHE 3 FORMS OF CHANGE
• DevelopmentalDevelopmental - Change that occur on a scale of small • TransitionalTransitional - Changes to existing processes, with a desire to find ways of
working to large scale
• TransformationalTransformational - Changes e.g. merger, ERP implementation
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What Is PESTLE Important?
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PP EE SS TT
LL
EELL
• PPEESSTTLLEE• PPoliticalolitical
• EEconomicconomic
• SSociologicalociological
• TTechnicalechnical
• LLegalegal
• EEnvironmental &nvironmental & EEfficiencyfficiency
We Change For A Reason
• Change Management EnablesEnables employees to ADOPADOPTT to a Change so that business objectives are RealizedRealized
• Change is the Bridge between Solutions and Results
• Change Management is fundamentally between about People and our Collective role of Transforming change into Successful Business Outcomes for the Organization!
• We Change For A ReasonWe Change For A Reason. As Simple as this sounds, an underlying principal for managing change is that a Future State can be Envisioned, that is different from the Current State of today, and we are changing to the Future State to achieve a group of specific Outcomes
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From slide 4
We Change For A Reason
• New Technology
• Stakeholder Input
• Strategic plans
• Internal performance
• Market and economic shifts
• Customer input
• Competitive threats
• New technologies
• Regulation/legislation
• Demands to do more with less
• Increasing Productivity through
Technology to Enhance & Maximize
the Customers Experience
• Do More with less/or development
• Costs lower
• Revenues higher
• Market share larger
• Errors fewer
• Efficiency greater
• Customers more satisfied
• Risk exposure less
CHANGE DRIVERS: CHANGE GOALS:
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REASONS…REASONS…
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We Change for Reasons!Reasons!
Issues & OpportunitiesIssues & Opportunities
Internal Performance
Financial Results
Strategic Planning
Employee Input
Customer InputNew Technologies
Regulation/Legislation
Economic Conditions
Market Shifts Competitive Threats
Demands To Do More With Less
Stakeholder Input
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We Change for Multiple & We Change for Multiple & Individual ReasonsIndividual Reasons
• The previous slide said there are MANY REASONS. However I underlined 3
• WHY?WHY?
• Because whatever the reason, there is Because whatever the reason, there is One ConstantOne Constant!! !!
• The 3 Groups that will always need to The 3 Groups that will always need to be involved be involved Why?Why?
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The 3 Drivers Of ChangeThe 3 Drivers Of Change
• There are many drivers of change on both an internal and external level.
• Once defined, the change vision will need to ensure that three groups are considered:
• Customers,
• Stakeholders
• Employees
=
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The 3 Critical Key DriversThe 3 Critical Key Drivers
CUSTOMERSSTAKEHOLDERS
EMPLOYEES26
Understanding the Psychology of ChangeUnderstanding the Psychology of Change
• It is helpful to understand the psychology of change when planning a change effort, it helps to explain why people think and act as they do why people think and act as they do when faced with a change?when faced with a change?
• When aiming to transform the attitudesto transform the attitudes and behavior of employeesbehavior of employees, a foundational knowledge of this topic will prove beneficial to the leadership and project team responsible for delivering the change.
• In order to succeed in changing mind-sets and behaviors, let's consider the three most importantthe three most important elements in changing behaviorelements in changing behavior:
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THE 3 Most Important Elements To Changing Behavior:
• Readiness to change - Do employees have the resources and knowledge to successfully make a lasting changemake a lasting change??
• Barriers & resistance to change - Is there anything preventing employees from changing, or making them resist?
• Expect relapse - What might trigger a return to the previous state behavior? 28
The Basis of Change101The Basis of Change101• Resistance to change is the largest obstacle that leaders
are faced with when initiating a change effort. It can be very damaging to the process and can potentially stall the efforts to move forward if not addressed appropriately.
• There are many reasons why an employee may resist change and so as "leaders of change", you will need to be sensitive to how individuals respond while keeping in mind that the process of commitment and acceptance takes time.
• It also takes A “Structured ApproachStructured Approach” Without this Structured ApproachStructured Approach you will be part of the 70% that not only Fail, But end up in worst shape then when you But end up in worst shape then when you startedstarted
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The Basis of Change101The Basis of Change101
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When we see Change
Here is the Change Vision We first see
04/07/23 31
The Real Change Is Represented Under The Real Change Is Represented Under the View of Most Peoplethe View of Most People
This is why the Elements of Resistance This is why the Elements of Resistance Begin to Show as the Project Moves Begin to Show as the Project Moves
ForwardForward
The Real Change Is Represented Under The Real Change Is Represented Under the View of Most Peoplethe View of Most People
This is why the Elements of Resistance This is why the Elements of Resistance Begin to Show as the Project Moves Begin to Show as the Project Moves
ForwardForward
SS-TITANIC
The Elements That will Impact Change AdoptionThe Elements That will Impact Change Adoption
ChangeChangeConceptsConcepts
Senders Senders & &
ReceiversReceivers
ResistanceResistance&&
ComfortComfort
Authority Authority ForFor
ChangeChange
Value Value SystemsSystems
Incremental Incremental vs.vs.
RadicalRadicalChangeChange
The Right The Right Answer is Answer is
Not Not EnoughEnough
ChangeChange Is aIs a
ProcessProcess
• The Focus of thisChart represents the
key concepts that impact the effective application of change management & the 5
Tenets
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3
4
5
6
7
32Prosci Group
WHY CHANGE IS REALLY HARD TO DO RIGHT! Or
Why is it SO Hard for People to Want to Change?
• Dr. Elisabeth Kübler-Ross, wrote a famous book. Does anyone Know the Name? Or the Subject Matter?
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Why Change Is Really Hard To Do Right!
• The ANSWER IS?The ANSWER IS?• “On Death and DyingOn Death and Dying””• In which she named the 5 stages of Grief• In Change I Believe That is The Same
For People Going Through A Forced • Transition…Think About ItTransition…Think About It!
1. Denial2. Anger3. Bargaining4. Depression5. Acceptance
THE PSYCHOLOGY OF THE THE PSYCHOLOGY OF THE AVERAGE PERSON GOING AVERAGE PERSON GOING
THROUGH A CHANGETHROUGH A CHANGEESPECIALLYESPECIALLY
A SPFTWARE CHANGE!!!A SPFTWARE CHANGE!!!
==
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WHY CHANGE IS REALLY HARD TO DO RIGHT!
• “On Death and Dying”On Death and Dying”
l. Denial Shock
Il. Anger(Emotion)
lll. Bargaining
lV. Preparatory Depression
V. Acceptance(IncreasedSelf-Reliance
Terminal Illness Diagnosed(Significant Change)
Lone
lines
sIn
tern
al C
onfl
ict
Gui
ltM
eani
ngle
ss
Grad
ual R
ealization
of
Th
e Real C
on
sequ
ences
Mov
emen
t Tow
ard
Incr
ease
d
Self
Aw
aren
ess
and
Con
tact
with
Oth
ers
Heath(Sustainability)
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Yes Change Is Yes Change Is HARDHARD To Do! To Do!
• We can often very clearly observe similar reactions to those explained by Kübler-Ross's grief model in people confronted with far less serious traumas than death and bereavement, such as organizational -----
• Change efforts, Redundancy, Enforced Relocation etc., Different Boss, Change in ERP/Software, Change of Process
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A Change Continuum A Change Continuum
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OwnershipIndividuals make the
ERP their own and create innovative ways
to use and improve
CO
MM
ITM
EN
T
High
ContactIndividuals
have heard about the ERPLow
AwarenessIndividuals are aware
of basic scope and concepts of an ERP
UnderstandingIndividuals understand how an ERP impacts the
company and their functional areas
Positive PerceptionIndividuals understand the ERP impacts and benefits to them
ActionIndividuals are willing
to work with and implement the ERP
I nstitutionalizationAn ERP is the way work is done
-- the new status quo
Stage 3: CommitmentImplementing and
Sustaining New Ways
Stage 3: CommitmentImplementing and
Sustaining New Ways
Stage 2: InvolvementEngaging & Enabling
the Organization
Stage 2: InvolvementEngaging & Enabling
the Organization
Stage 1: AwarenessSetting the Climate
for Change
Stage 1: AwarenessSetting the Climate
for Change
TIMETIME
Change Phase 1 Overview
Details of ChangeDetails of Change• Identify the change• Specifics of the change• Change approach
Implementation of Implementation of ChangeChange
• Implementation strategies• Release Strategy
Review of ChangReview of Changee
• Appraisal of change strategy
OUTPUTOUTPUT
• Schedule of activities• Assessments (Readiness, GAP, Impact, Heat Mapping ,etc.)• Action planning• Communication plan &• Training Plan• Resistance to Change plan• Employee to change plan• Release Plan Review plan
OUTPUTOUTPUT
CHANGE MANAGEMENTCHANGE MANAGEMENT PLANPLAN
OUTPUTOUTPUT
Communicating the Message
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• Communications at its best (in multiple formats) and the correct messaging is the identification of impacted people and the development and distribution of ongoing two-way exchange of information involving the right people at the right time in the right manner. An interactive communication process is key to successful change management!
• It is unlikely that employees will change their behaviors in support of the change imperative until they are given sufficient time and information both to understand and believe in the need for change.
Communicating the Message
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Communication Of Objectives:1. Inform and Engage key stakeholders by creating awareness and
commitment to the: • Vision,• Objectives, • Plans, • Expected results, • and the Specific impacts Improve management of
stakeholder and influencer expectations
2. Increase willingness of Leaders, Managers and employees to perform their job the new environment.
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Communication Of Objectives:
3. You either gain complete acceptance of role and task changes resulting from the changes in processes and technology, or you will fail ultimately to make transitions permanent!
4. Enhance understanding of the challenges and opportunities of the change transformation – “making the “making the unknown knowunknown known”
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Communication Objectives:
5. Build manager and leader capability around communication by providing resources and tools to drive ownership of consistent dialogue with stakeholders6. Increase project awareness and buy in among stakeholders7. Reduce resistance, fears, uncertainty, and rumors8. Minimize confusion and misunderstanding9. Monitor and measure feedback
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Communication Of Objectives:
1.The benefits of effective communications include:
•Employees that understand what is expected of them in the new environment and what they can expect from the organization
•Increases employees acceptance of changes
•Employees feel more comfortable and do not put up as much resistance
•Employees think and act like owners of the business Processes
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• Risks ofRisks of ineffective ineffective communications include:communications include:• Confusion• Resistance and rejection of the project by all
stakeholders • Negative perception of the project • Decision not to implement Loss of support• Project aborted• Project Go Live has less then a 40% chance of
being maximized by all employees
Not Communicating the Message
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Overall Communications Approach
• Identify all audience groups to determine their level of criticality to the success of the program and the level of impact on their future jobs
• Define the key communications goals and Guiding Principles for the program
• Define the key messages to be delivered to each audience group that will best enable the group to move upwards along the commitment curve
• Conduct a media analysis to better understand which vehicles deliver the greatest impact to each audience group
Communicating the Message
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1. Develop a Communications Plan based on the following goals:
• Provide clear and consistent communications for each phase of the project
• Deliver clear, simple, and consistent messages across the organization communicating the ““what’s what’s in it for me”in it for me” to stakeholders
2. Execute business transformation Communications Plan
3. Gather feedback to ensure the effectiveness of the communications
Communicating the Message
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Communicating the Message
Conduct AudienceAnalysis
Conduct Media Analysis
Identify Key Communication
Messages
Develop High-Level Communication Plan
Define Communication
Guiding Principles
Execute Communication PlanGather Feedback
Conduct Readiness
Survey
Impact Change ReadinessGAP- Heat MappingAssessments, etc.Pre/Post & On-Going
The 10 Change Success Secrets The 10 Change Success Secrets Nobody Tells YouNobody Tells You
1. Understand the Psychology of Change
2. Ask The Right Questions
3. Clearly Articulate the Change Vision
4. Effective Communications Start With a Clear Strategy
5. Support Leadership (Champions) and Sponsor (s)
6. Integrate Project Management and Change Management
7. Create a Network of Change Champions
8. Utilize a Range of Collaboration Tools to Increase
Engagement
9. Actively Manage Resistance9. Actively Manage Resistance
10.Plan Training in Detail10.Plan Training in Detail48
SUCCESS SECRET # 1 Understand The Psychology of Change
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Understanding The Psychology of Change
It is helpful to understand the psychology of change when planning a change effort, it helps to explain why people think and act as they do when faced with a change. When aiming to transform the attitudes and behavior of employees, a foundational knowledge of this topic will prove beneficial to the leadership and project team responsible for delivering the change.
The four most important elements in changing behavior:
Readiness to ChangeReadiness to Change - Do employees have the resources and knowledge to successfully make a lasting change?
Reason To Change – Do employees have a reason in their interest to change?
Barriers to ChangeBarriers to Change - Is there anything preventing employees from changing?
Expect RelapseExpect Relapse - What might trigger a return to the previous state behavior?
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UNDERSTANDING THEPSYCHOLOGY OF CHANGE
So why do employees Resist Change?
1As people We know that change creates Anxiety2The current State has tremendous holding power3The possibility of losing what we have grown accustomed to (and comfortable) with Creates Worry and Uncertainty4.The Future State is often Ill-defined, and people are afraid of what lies ahead.
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ChangeChangeResistorResistor
Understanding The Psychology of Change
Ask: Ask:
•Does the company have a change history/record?•Do employees really know why why for the New Software/Change, or were they taken by surprise?•Do they believe the reasonss for the implementation, and do the believe the reasons are Validare Valid?•Do they Trust the SendersTrust the Senders of the Message?•From a Personal perspective, How might the change Impact ThemImpact Them?
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Individual Change Comes Before Organizational Change
• What motivates a person is unique to that person• We each March to a Different Drummer• What is the Organizations History with Change?
Here is a Key Change Successes Factor – You must get You must get People on-Board. To do this you need:People on-Board. To do this you need:
–Visible and Active Executive Sponsorship or Change Leadership–Do We Have Mid-Level/Supervisor Sponsors?
• Connor defines a sponsor as “The individual or group who has the power to sanction or legitimize change”
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Individual Change Comes Before Organizational Change
• SPONSORS:– Actively and visibly participate in the individual
level change (how does this change effect me?)
– Build a coalition pf sponsorship between key business leaders
– Communicate directly with employees about why the change is needed
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Prosci ADKAR Five TenetsProsci ADKAR Five Tenets
1 We change for a reason.for a reason.2 Organizational change requires Individual
Change3 Organizational outcomes are the collective
result of individual change 4 Change management is an enabling enabling
framework fframework for managing the people side of change
5 We apply change management to realize the benefits and desired outcomes of benefits and desired outcomes of changechange
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Prosci-ADKAR MethodologyProsci-ADKAR Methodology
The five building blocks of successful change
AAwareness wareness - of the need for change
DDesireesire - - to participate and support the change
KKnowledgenowledge - on how to do change
AAbilitybility - to implement required skills and
behaviors
RReinforcement -einforcement - to sustain the change
A.D.K.A.RA.D.K.A.R..
AADD KK AA
RR
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Prosci-ADKAR MethodologyProsci-ADKAR Methodology
57
Prosci-ADKAR MethodologyProsci-ADKAR Methodology
58
Prosci-ADKAR MethodologyProsci-ADKAR Methodology
59
Prosci-ADKAR MethodologyProsci-ADKAR Methodology
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END OF PART 1
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