How can we manage IT Changes?

How can we manage IT Changes? Chapter 13 MISY 300

The Need for Change Management • At any given point in our lives, we all go various changes • School • Family • Personal • We have all been through change - but how do we think about and manage it?

The Need for Change Management • Challenges for IT execs • Global competition • Economic constraints • Increased customer demands for service and quality • Organizational and operational change: part of ongoing strategy to remain competitive • For IT managers, strategic and technical side of change management is more comfortable • More intimate human dimension less • Dealing with the people issues, or soft side of technology, is an area that most technical people do not enjoy • Alignment of a firm’s people, culture, behaviors and values: critical to long-term and sustained success of managing change effectively

The Nature of Change • Whether we view change as positive (anticipation) or negative (dread), there is a certain amount of stress that accompanies each change. • Change has anImpact. • Change is a Process. • Change is Emotional.

Types of Change • Internal • Result of program changes or resource shifts • Largely managed from within IT in well-planned and orderly manner • Can have large impact on other parts of firm • Therefore change needs to be managed beyond IT • External • Changes from outside IT (and even outside of organization) • IT Providers have little control over this type of change • Factors: new competition/products, government regulations. Global shifts in the economy, major technology advancements

Types of Change • Ability to distinguish between sources is important: • Will impact manner in which you establish and manage expectations • Controls you establish for managing change • Depend how much control you have over change • Measurable outcomes will vary depending on nature of change Regardless of source, ALL change NEEDS to be managed

Change Management • Set of processes, tools, and techniques focused on successfully introducing change. • Successful change can be managed and measured • Defined by the Gartner Group • The transforming of the organization so it is aligned with the execution of a chosen corporate business strategy. It is the management of the human element in a large-scale change project. • Proactive process with a designed program for change, a plan of execution, and predictable outcomes

Managers & Technical People May Have False Beliefs • People want this change. • Monday morning we’ll turn on the system and they’ll use it. • Many technical people and managers naively believe that the users within the organization will gladly embrace a new system if it is built properly • A good training program will answer all of their questions and then they’ll love it. • Our people have been through a lot of change – what’s one more change going to matter? • We see the need for helping our people adjust, but we had to cut something. • They have two choices. They can change or they can leave.

In Reality, … • Some people believe that it is easier to gain compliance than it is to gain acceptance • It assumes that everyone will comply and that compliance is long lasting • Unfortunately, • The change may not occur • People will comply for a time and then do things to get around the change • Users will accept only a portion of the change • And the full benefits of the project are never realized or only after a great deal of time and resources are expended

Seven Principles of Managing Change • No single approach fits every firm • Set of guidelines and techniques can be used in a variety of situations • Seven guiding principles provide framework that executives, change agents, and coaches can use to manage change more effectively

Principle 1: Two Levels of Management Support • Given the choice, people will more often choose “business as usual” model • CIO and senior staff must embrace “new way” and lead and motivate the rest of the dept/org • Senior management has to be engaged • Middle management is also critical • Assigned responsibility of executing program initiatives and action items • Need to be highly regarded and respected • Leaders need to be identified and take responsibility for introducing, promoting, and managing change

Principle 2: Proper Funding • Change is constant  process improvement is constant • Proper resources are needed – not one time, but ongoing • Ideal: pro-active stance by creating a multi-year budget from the start • Determine budgetary needs over extended period of time • Make persuasive case for total amount to be budgeted • Plan for contingency fund • Be prepared for expenses not initially planned for.

Principle 3: The Business Case • Why is change happening? Is change needed? What impact will change have on org? How will each individual be affected? • Formal case needs to be made • Vision statement, realistic cost-benefit analysis, implementation strategy the defines roles and responsibilities • Effective change management requires constant assessment of risks and potential course corrections • Need for well-designed risk management strategy

Principle 4: Setting and Managing Expectations • Setting expectations: one of the most important factors impacting success of process improvement initiatives • Estimating costs, determining duration of effort, articulating benefits • Organizational education and awareness are key • Will affect many parts of the organization • Need to understand cultural environment • Org needs to consider the impact the change will have on culture • Org needs to consider the impact of culture on change

Impact of Organizational Change People Structure Technology Task Leavitt’s Model

Principle 5: It’s About the People • Change affects people • Change programs may require people to shift their priorities, to change their relationships, to develop new ones • RESISTANCE is going to happen!! Be ready to manage it! • Involve EVERYONE in the process of change – champions and skeptics • Allow all to contribute to the change • Better understand and more naturally accept changes • Less effort required on ‘selling’ the change

Principle 6: Communicate, Communicate, Communicate • Effective communication is critical for any strategic program to be successful • DO NOT assume others understand reasons for change • Need for a detailed communication plan – include all levels of the org • Different priorities, different interests, different interest in progress and outcomes • Need anonymous feedback mechanism

Principle 7: Measurement is Key • Ability to measure and monitor progress quantitatively will improve ability to manage effort • What to measure? • Lower costs, shorter delivery time frames, increased quality • Start with creating baseline • Set expectations • Benefits will not happen on day one! • Early stage progress measures (leading to planned improvements) • Completion of new procedures, staff personnel training, monitoring compliance to new development practices

Why do people resist change? • People may perceive the change as requiring more time and energy than they are willing to invest. • People may feel that a change will mean giving up something that is familiar, comfortable, and predictable. • People may be annoyed with the disruption caused by the change, even if they know that it will be beneficial in the long run. • People may believe that the change is being imposed on them externally, and their egos will not tolerate being told what to do. • People may resist because of the way the decision to change was announced or because it was forced on them.

Reactions to Change • Change may • Be an ending • Mean giving something up • Be stressful • Be easier for those initiating the change • Be the basis for resistance and conflict • Change the “rules for success”

Managing Resistance • Resistance to change is predictable – what form it takes and from who is less so • Leaders and managers need to understand and address it • Do not overreact • Persevere, listen to complaints and concerns, consider these issues as additional opportunities for growth and maturity • Accepting change means accepting the risk (real or perceived) associated with proposed change • Never a good time for change • Often emotional response

Emotional Responses to Change anger active acceptance bargaining stability Emotional Response testing denial shock depression passive Time Elizabeth Kubler- Ross, 1969

Managing Resistance • Get people involved! • Facilitating involvement and working together will bring greater success and quicker acceptance of changes • Managers must act on feedback • Includes admitting mistakes • Process change request system • Educate people who are not on board • Help them to understand why change is needed • Provide context of their role • Be honest when introducing reasons for change

Using a Change Agent • In some cases, resistance needs to be dealt with on an individual basis • Any time change is introduced, there are change agents (intentional or not) at work • Change agent: person who has the power, the belief, and the personal skills to make change a reality and keep people actively engaged in the change process • Can adapt and assimilate the issues, while working to manage resistance • Need to master tools and techniques and have personal skills necessary to manage the change • Must be sensitive to political climate while staying neutral • Fully understand current business model and how changes will affect existing processes and assigned resources • Be able to defend position without sounding defensive

Using a Coach • Coaching: creation of ongoing partnership that can help leaders and execs produce the desired results • Individual Coaching • often involves executive and managerial level personnel • Helps them become more adept at dealing with employees and eliciting high performance • Helps develop high level of emotional intelligence • Helps develop high level of social intelligence (incl. social awareness and empathy) • Team Coaching • Economical way to have large impact on organization • “power of positive peer pressure” • Gets employees out of their silos, and creates greater cohesion and motivation • Can generate a climate that promotes higher level of accountability for each member’s action • Can help team members communicate more effectively

Change Management Plan

Evaluate Experience and Develop Lessons Learned • Experiences should be documented and made available to other project teams

Best Practices • Provide consistent communication and involvement – WIIFM (What’s In It For Me) • Determine support needs - where do people go for help and information? • Measure and communicate progress (Quick Wins) • Build the need for change (“Burning Platform”) • Ensure visible, consistent sponsorship • Allow the disenchanted to vent • Listen, listen, … and listen some more

How can we manage IT Changes?