Got Resistance? PMI Heartland Chapter Luncheon August 20, 2008 Angela Cooper Dr. Wendell Nekoranec Mutual of Omaha

1. Got Resistance? PMI Heartland Chapter Luncheon August 20, 2008 Angela Cooper Dr. Wendell Nekoranec Mutual of Omaha

2. Internal Consulting Services Core Services help people We throughout the company their operations improve • Continuous Process Improvement • Change Management • Strategic Planning • Performance Standards

3. Agenda • What is Change Management? • ADKAR and the Change Management Model • Understanding Resistance Management • Proactive Resistance Management • Tools for You: Top 10 Ways to Manage Resistance • Your Turn: Which Techniques Would You Use? • Change Management Summary

4. What is Change Management? Managing resistance to change? Listening to employee feedback? Building sponsorship? Communications? Coaching employees through the transition? Providing knowledge on how to change?

5. Change Management Change Management is managing the people side of a transformation or change so that the business goals are realized. This type of change management deals with the human, political and cultural changes necessary to fully implement a new process, organization or system.

6. The Five Building Blocks for Successful Change Awareness Desire Knowledge Ability Reinforcement © Prosci. Used with permission under license from Prosci.

7. Communication plan • Sponsor roadmap • Coaching plan • Resistance management plan • Training plan © Prosci. Used with permission under license from Prosci.

8. Understanding Resistance • Resistance is a natural human reaction to change. • You should expect resistance and not be surprised by it. Do not underestimate the power of “comfort” with how things are today. © Prosci. Used with permission under license from Prosci.

9. Top Reasons for Employee Resistance • Lack of awareness of the need for change • Fear of the unknown • Fear of job security • Employees believe they are being asked to do more with less, or do more with the same pay • Lack of sponsorship Employees are simply comfortable with the way things are today. © Prosci. Used with permission under license from Prosci.

10. Top Reasons for Manager Resistance • Fear of losing control and authority • Overloaded with current responsibilities • Comfort with the status quo • No answer to “What’s in it for me?” • No involvement in solution design Who are the biggest resisters to change? Managers! © Prosci. Used with permission under license from Prosci.

11. Consequences of Unmanaged Resistance Complacency? Skepticism against leadership? Workarounds? Deliberate sabotage? Drop in morale? Neglected work? Turnover?

12. Checkpoint Understanding Change & Resistance How to Manage Resistance

13. Resistance Management Roadmap

14. And Now…The Top 10 Steps for Managing Resistance

15. Top Ten Steps for Managing Resistance 1 Listen and understand objections • People want to be heard and to voice their objections • Understanding objections provides a path toward resolution • Listening can help identify misunderstandings © Prosci. Used with permission under license from Prosci.

16. Top Ten Steps for Managing Resistance Focus on the "what" & let go of the "how" • Simply communicate "what" needs to change • Transfer ownership of the solution • Get people involved! Ownership builds support for change 2 © Prosci. Used with permission under license from Prosci.

17. Top Ten Steps for Managing Resistance Remove barriers • Barriers may relate to family, personal issues, physical limitations, money, etc. • Fully understand the employee’s situation • Identify the barriers clearly • Determine ways to address barriers 3 © Prosci. Used with permission under license from Prosci.

18. Top Ten Steps for Managing Resistance Provide simple, clear choices and consequences • Be clear about the choices people have during change • Clearly communicate the consequences of each choice • Put the ownership and control back into people’s own hands 4 © Prosci. Used with permission under license from Prosci.

19. Enthusiasm Energy Denial Hope Anxiety Shock Impatience Fear Acceptance Anger Frustration Skepticism Confusion Creativity Stress Approach-Avoidance Top Ten Steps for Managing Resistance 5 Create hope • Highlight the opportunity for a better future • Share your passion for the change, and create enthusiasm. • Share your own change journey, and talk about why you came to believe in the potential of the change © Prosci. Used with permission under license from Prosci.

20. Top Ten Steps for Managing Resistance Show the benefits in a real and tangible way • For some people, seeing is believing • Demonstrate the benefits of change: • Case studies • Personal testimonials • Successful pilot programs or trials • Examples where this change has worked elsewhere 6 © Prosci. Used with permission under license from Prosci.

21. Top Ten Steps for Managing Resistance Make a personal appeal • A personal appeal works best when you have a strong relationship with someone • A personal appeal may sound like: • "I believe in this change." • "It is important to me." • "I would like your support." • “You would be helping me by making this change work." 7 © Prosci. Used with permission under license from Prosci.

22. Top Ten Steps for Managing Resistance Convert the strongest dissenters • Focus time to convert strong, vocal dissenters • Turn them into your strongest advocates • They are often equally vocal in their support as they were in their resistance. 8 © Prosci. Used with permission under license from Prosci.

23. Top Ten Steps for Managing Resistance Use money or power • Use with mid-level or senior managers • Use if their position is critical to the success of the change • Directly reward their actions for leadership through the change • Offer opportunities and growth, as well as material objects • Use with employees • Reward them for their active support of the change • Offer special incentives Spot bonuses/compensation Time off Other types of recognition 9 © Prosci. Used with permission under license from Prosci.

24. Top Ten Steps for Managing Resistance Create a sacrifice • Remove a key person that is resisting change to send a powerful signal. • Management’s Message: • Serious about this change. • Resistance will not be tolerated. • The consequences of resistance are real and severe. • Use caution and involve HR and legal. 10 © Prosci. Used with permission under license from Prosci.

25. Your Turn: Which Techniques Would You Use?

26. Situation 1 – Team Moves Your sponsor has decided that your project team must be co-located, and they will be moving locations next month. All of them will be moving to another floor. And unfortunately, they will be moving to an older area of the building, where the cubes are smaller than what they have today.

27. Resistance Management Techniques • Listen and understand objections • Focus on the “what” and let go of the “how” • Remove barriers • Provide simple, clear choices and consequences • Create hope • Show the benefits in a real and tangible way • Make a personal appeal • Convert the strongest dissenters • Use money or power • Create a sacrifice

28. Situation 2 – New System You are leading a project to implement a new system. This system has already been installed in other parts of the organization, but the end users in the department you’re dealing with are less-than-excited about using it.

29. Resistance Management Techniques • Listen and understand objections • Focus on the “what” and let go of the “how” • Remove barriers • Provide simple, clear choices and consequences • Create hope • Show the benefits in a real and tangible way • Make a personal appeal • Convert the strongest dissenters • Use money or power • Create a sacrifice

30. Situation 3 – Working Weekends Your project is behind schedule, and your sponsor has determined that your team needs to work on weekends. You need a full staff to work 4 hours on both Saturday and Sunday. You’ve already been asking them to work overtime during the week.

31. Resistance Management Techniques • Listen and understand objections • Focus on the “what” and let go of the “how” • Remove barriers • Provide simple, clear choices and consequences • Create hope • Show the benefits in a real and tangible way • Make a personal appeal • Convert the strongest dissenters • Use money or power • Create a sacrifice

32. Summary around Resistance • Understand resistance is a natural human reaction to change • Expect and plan for resistance • Identify and address the root causes of what is happening • Use specific tools and techniques to manage it

33. Questions ? angela.cooper@mutualofomaha.com wendell.nekoranec@mutualofomaha.com