Managing Organizational Change April 15 th , 2004 Prepared by Jayne Andersen

1. Managing Organizational ChangeApril 15th, 2004Prepared by Jayne Andersen “if nothing ever changed, there’d be no butterflies”unknown

2. Purpose/Benefit – as an individual One of the first steps to any successful change is to increase our understanding of change itself. In doing this we can then increase our capacity for change, increase the speed by which we change, and improve the quality of our changes. We can also use this understanding to ensure sustainability. Increase Capacity Increase Speed Improve quality Ensure sustainability

3. Purpose/ Benefit as a manager • As you increase your understanding of how change works for the individual you will be able to process your own changes better • You will also be better equipped to help your teams as they process their own changes.

4. The challenge……..of change “It must be remembered that there is nothing more difficult to plan, more doubtful of success nor more dangerous to manage than the creation of a new system. For the initiator has the enmity of all who profit by the preservation of the old institution and merely lukewarm defenders in those who would gain by the new one.” Niccolo Machiavelli - ~ 1513 “Consider how hard it is to change yourself and you’ll understand what little chance you have in trying to change others.” Jacob M. Braude

5. The opportunities……..change brings “Change. It has the power to uplift, to heal, to stimulate, surprise, open new doors, bring fresh experience and create excitement in life. Certainly it is worth the risk.” Leo Buscaglia “Change is inevitable – except from a vending machine Robert C. Gallagher “There are certain emotions that will kill your drive; frustration and confusion. You can change these into a positive force. Frustration means you are on the verge of a break through. Confusion can mean you are about to learn something. Expect the breakthrough and expect to learn. Kathleen Spike, Master Certified Coach

6. What do we know about change? Change is • Change is inevitable • Change is often uncomfortable and or disruptive • Change is also a time of possibilities and hope • Change can be exciting and energizing People may ... • May feel awkward, self-conscious or they may feel excited and enthused • They often think first about what they have to give up • They may feel alone • Each of us has a unique capacity for change • Each of adapts to change at our own rates

7. Processes Technology Behavior Three components of change There are many changes occurring within the high tech environment – new processes, new tools, new functionality, new roles and responsibilities, etc. Basically lots and lots of change. These changes are often brought about by the introduction of new and or improved processes, systems and tools. In order to reap the benefits desired by the introduction of these new processes and tools – behavior changes are REQUIRED. The new and or improved business processes. These processes are driven by the new technology o needed to realize and maintain the desired business results (ROI) Behavior changes are required to take advantage of the new processes, tools, systems and or functionality – realize the ROI. The implementation of new systems/tools and or new and improved functionality of existing tools/systems Three components of change “Things do not change; we change” Henry David Thoreau

8. Behavior changes and Managing Organizational Change (MOC) What is Managing Organizational Change (MOC) and how does it relate to behavior? MOC is about understanding and enabling behavior changes – changing what we do and how we do it. These behavior changes are a REQUIREMENT for any change to fully realize it’s benefits. MOC is a disciplined approach to help organizations manage transitions and changes. The goal is to enable the required behavior shifts effectively and in a sustainable way.

9. Behavior changes and Managing Organizational Change What’s at risk if we don’t shift behaviors? All the dollars, time and resources invested to develop the change (the new processes and new tools) PLUS the future benefits we hope to realize What’s the opportunity if we do? By enabling behavior shifts we will realize our results (ROI), shorten the time it takes for us to deliver these results (ROI) and have the opportunity to ensure their sustainability.

10. Information Personal Integration Collaboration Refocusing Awareness MOC Model – Stages of Concern Stages of Concern - Adoption Process Managed Learning Change effort begins Changes are implemented for the first time People are adopting and adapting to the changes

11. Stages of Concern Stages of Concern - Adoption Process Information Personal Integration Collaboration Refocusing Awareness • What happens in Integration? • This is when the change actually occurs • Processes are being used “for real” for the first time • People are acting in their new roles, trying new things • Productivity levels drop • What is the environment like? • Things are typically messy and sometimes confusing • Things are new and different • Things may be exciting and fast paced • How are people responding? • People will need to process theses changes emotionally • People are now “consciously incompetent” • People are learning how to do their jobs differently • People may be frustrated and resistant or they may be invigorated and energized How do I do this again? This won’t work This is really cool What’s my next step now? This is frustrating I miss doing things the old way

12. Emotional Change • People need to process the emotions that change brings. This is an important part of what needs to happen as people adjust and adopt the changes. • The Emotional Change Process and or Transition Cycle is one way to describe how this happens for many people. • Understanding the process will provide you with ideas on how to help yourself as well as others during their change process • It also helps to understand possible reactions and helpful responses

13. Emotional Change Process ZIGZAG * Adapted from “Managing Change at Work” by Cynthia Scott and Dennis Jaffe HIGH PERSONAL CONTRIBUTION External/Environment DANGER Denial Commitment Inform, Communicate and Motivate teamwork satisfaction clear focus and plan cooperation balance clear vision of the future Reward and Motivate it will be over soon this won’t happen apathy numbness minimize the change ignore Resistance Exploration seeing possibilities exploring alternatives feeling “ I can make it” high creativity and energy too many new ideas lack of focus indecisiveness have too much to do unfocused work start “being” in the future Listen, Share and Understand sense of loss of control concerned with competency future contribution unclear lack of focus or direction can’t sleep at night anger/fights withdrawal from the team blaming Facilitate, Problem Solve and Motivate Internal/Self

14. Change and Resistance What is resistance? A force that slows or stops movement – it’s energy It’s neither good or bad – just part of the process Open resistance is healthy and valuable You can turn it into support You need to listen and even invite resistance What do people really resist ? People don’t really resist change:They resist loss They resist the perceived lack of control the change will bring They resist being consciously incompetent Listen, Share and Understand Signs of personal resistance: Complaints, blaming, anger, errors, anger, stubbornness, apathy, illness, withdrawal

15. Emotional Change Process What to remember • The Emotional Change Process describes normal and typical responses to change – these responses don’t necessarily signal a lack of commitment. • This adjustment is typically needed regardless of whether the over all change is perceived as negative or positive • Each step is important – avoid trying to or asking others to skip steps • It’s not uncommon to oscillate between steps – particularly resistance and exploration • Use your understanding of this to help yourself and others • It’s an individual journey – people will go through it their own way, to their own degree and at their own rate • We’ve all been through it before – we can do it again • Each time offers an opportunity to learn and grow

16. Impact to Productivity during Integration - Implementation Stages of Concern - Adoption Process Information Personal Integration Collaboration Refocusing Awareness • What happens in Integration? • This is when the change actually occurs • Processes are being used “for real” for the first time • People are acting in their new roles, trying new things • Behaviors are shifting • Productivity levels fall • What is the environment like? • Things are typically messy • Things are often confusing • Things are new and different • How are people responding? • People are now “consciously incompetent” • People are learning how to do their jobs differently • People may be frustrated and resistant or they may be invigorated and energized How do I do this again? This isn’t as easy as I thought This won’t work What’s my next step now? This takes longer Who do I need to talk to? Why?

17. Information Personal Integration Collaboration Refocusing Awareness Stages of concern and the impacts to productivity levels 1 2 3 4 Productivity is up People are highly skilled Capabilities are in place Results delivered Additional improvements are being investigated Productivity Levels Current productivity Current skill level Current capabilities Productivity levels drop People are less familiar with new processes People are less skilled or capable to do new tasks Productivity increasing New skills are being learned New capabilities are being established Why? Productivity levels drop because people are learning new things and doing things differently. They are shifting from what they know to things that aren’t familiar. This is exactly what they need to do to enable a successful change.

18. What are the risks? Business risks Productivity drops to an unacceptable level Minimum results not delivered Adverse/unacceptable impacts to the business Result: change is aborted – people revert back to the old - or the change is delayed This is the period of highest risk to the change effort. Personal risks Individuals feel too incompetent and are overwhelmed Individuals feel too much is at stake – their jobs, reputations, etc People may decide to leave Result: change is aborted – people revert back to the old - or the change is delayed If we don’t manage the risks associated with the drop in productivity the change will most likely be aborted or substantially delayed. “Things do not change; we change” Henry David Thoreau

19. KEY TAKE AWAYSImpacts on productivity levels - what can we do? Minimize drop in productivity • provide training and or hands on experiences • communicate and allow feedback • set appropriate expectations Prepare for drop in productivity • create back up or contingency plans • set appropriate expectations with all involved • create time/space for the learning that’s needed Manage drop in productivity • create partnerships between those leading the change and those impacted • measure and monitor results and adoption levels • maintain strong level of commitment Remember – the drop in productivity is only temporary This too shall pass

20. Questions?

21. Change Exercise Purpose • to participate in a “change” experience • to feel the emotions of change • to deepen your understanding of what happens “after” the change • to discover things we can do to enable changes

22. Change Exercise Please write down the following information: Your First name, middle initial, last name Your Job title Company you work for Write your address as follows: Street number, street name City Zip code Telephone (area code, phone number)

23. Change Exercise Please write down the following information: Last name, area code Job title, city First name, company you work for Middle initial, zip code First name, street address Street name, phone number

24. Back up slides

25. Information Personal Integration Collaboration Refocusing Awareness Things that can be done PRIOR TO Integration Hands on experience: provide opportunities for users to experience the new processes before they have to execute them “for real”. This could be “walk throughs” , demos, etc Communication: share information about the new processes and roles, explain benefits, metrics, and time line. Provide opportunities for feedback. Training: provide training on the new processes. This starts the learning process and will help to minimize the drop in productivity Set Expectations: Set appropriate expectations with those impacted and appropriate business partners regarding the drop in productivity, it’s associated risks and the plans you’ve created to address both. Help them understand that it’s part of the change process and that it is only temporary. Create a Plan: Engage with those impacted to develop a plan about how they will deal with the productivity drop and how they will manage the associated risks.

26. Information Personal Integration Collaboration Refocusing Awareness Things that can be done to manage the loss of productivity DURING Integration Create partnerships: create strong partnerships between those who are leading the change and those impacted by the change. Use this partnership to execute the processes “for real” the first time. Create time/space needed to deal with disruptions: More time/energy will be needed to execute/learn the new processes for the first time. Identify what can be delayed or not done during this time to allow for this. Create a learn and adjust environment: Help those impacted understand that this is a time of learning, a time when things will feel confusing, disruptive, etc. At the same time explain that we have a limited amount of time to learn – we must get productivity levels back up.

27. Information Personal Integration Collaboration Refocusing Awareness Things that can be done to manage the loss of productivity DURING Integration Maintain and communicate commitment levels: don’t waffle on the change, don’t make it appear optional, set expectations that we will figure this out, things will get better but we still must change. Back up strategy: have back up plans in place and processes defined regarding when and how to use them. Identify your triggers that would tell you to engage your backup strategy. This minimizes risks to individuals as well as to the business. Feedback mechanisms: there willbe a lot of feedback during this time. Ensure you have the necessary processes/mechanisms in place to deal with this feedback. Communicate this information to those involved. Measure results and adoption: these measurements demonstrate commitment and help us understand how we’re doing. They also help us determine if/when we’d need to use our backup strategies.

28. Post “Go Live” Transition “The creative person is not so much one with great talent as is one who can endure the confusions and anxieties of the neutral zone long enough for fundamental reorganization of his or her experience to take place. In many organizations, deep and lasting change is aborted simply because the people involved could not bear the chaos and uncertainty about what was emerging long enough to let it take shape.” William Bridges