CHANGE MANAGEMENT How to effectively manage change processes

1. CHANGE MANAGEMENT How to effectively manage change processes

2. A. Introduction

3. Introduction Trainer / Lecturer Thorsten Trede has been working as trainer for well over 10 years worldwide with a special focus on developing countries and countries in transition. As managing director of APPLICATIO Training and Management GmbH he is the head of the International Management & Marketing Academy in Hamburg (I.M.M.A.). His fields of specialisation are inter-alia adult training, SME development, marketing and export promotion including the management of changes in these and other fields.

4. Introduction • Contents • Introduction to change management and the need of change management • The steps of the change process • Analysis • Vision • Planning • Implementation • Monitoring and evaluation • Tools to manage change in three levels • personal level • team level • larger system level • Case studies, role plays, group work, presentations, discussions

5. Introduction Targets Change management is the process, tools and techniques to manage the people-side of change processes, to achieve the required outcomes, and to realize the change effectively within the inner team, and the wider system. The workshop aims at introducing participants to state-of-the-art tools and techniques of change management. After completion of the practise-oriented two- days workshop participants will be in a position to identify the need of changes within their company/institution, communicate the necessary changes to stakeholders, decision makers and partners and to use tools of change management to effectively manage the process of change. In addition the participants will be introduced to methods of customer orientation, negotiation and creativity techniques in order to enable them to benefit from the process of change and to effectively communicate the process steps.

6. Introduction What others say… It must be considered that there is nothing more difficult to carry out nor more doubtful of success nor more dangerous to handle than to initiate a new order of things. (Machiavelli 1446-1507, Italian statesman and philosopher) Tell me and I'll forget, show me and I may remember, involve me and I‘ll understand. (Chinese Proverb) The real problem is what to do with problem solvers after the problem is solved. (Gay Talese 1932-, American (Italian-born) journalist) … what do you say?

7. Introduction What others say… The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man. (George Bernard Shaw 1856-1950, Irish playwright and critic) If we want things to stay as they are, things will have to change. (Giuseppe di Lampedusa 1896-1957, Italian writer in The Leopard) Everybody has accepted by now that change is unavoidable. But that still implies that change is like death and taxes it should be postponed as long as possible and no change would be vastly preferable. But in a period of upheaval, such as the one we are living in, change is the norm. (Peter F. Drucker 1909, American management guru)

8. Introduction Mind-mapping • Let us ask ourselves why we are here and where we want to go? • What is change management all about? • Why do you feel you need change management? • How can you use tools of change management? • Where will we be tomorrow evening ? Let us make up a mind map about “change management”

9. Change Comp. Comp. Worker Introduction Mind-mapping Change Change

10. Introduction Planning You have got 2 minutes to fulfil the following 10 tasks. All you need is a blank paper and a pen. Good Luck! • Read all ten tasks carefully before starting • Write you name in the upper right corner of the paper in capital letters • Write the date in the upper left corner in the format DD.MM.YYYY • Draw a circle in the middle of the paper (a circle is round, not oval) • Draw four squares below the circle • Mark the two outer squares with a cross filling the whole square • Connect the circle with the four squares with an arrow each pointing at the squares • Write your closes relatives first name in the lower middle of the paper • Write his / her date of birth in the upper middle of the paper between you name and • the date • 10. Only fulfil task one and two!!

11. B. Communication basics

12. Basics of Communication Always remember! • 70 % • of all our communication efforts are: • misunderstood, • misinterpreted, • rejected, • disliked, • distorted, or • not heard (in the same language, same culture)!

13. Contents-Level SENDER RECIPIENT Feeling Appeal Level MESSAGE Relation-Level Basics of Communication Communication levels

14. Basics of Communication Communication levels Traffic light is green In a hurry Start driving It’s green! Never again!

15. Basics of Communication Communication and change management • As soon as change is implemented it comes to a personal level dealing with people! • If organisations change and processes change and are adapted to newer needs people • will have to change. • But: People are afraid of many things … including all sorts of change • You will need strongest communication skills to: • convince people of the need of change • convince people of the positive effects of change • create a win-win situation for all parties involved • … reduce fear of change from all people involved

16. C. Introduction to change management

17. Introduction to change management What is change management? Change management… is the process, tools and techniques to manage the people-side of change processes, to achieve the required outcomes, and to realize the change effectively within the individual change agent, the inner team, and the wider system. There is a tight connection with the concept of learning organizations. Only if organizations and individuals within organizations learn, they will be able to master a positive change. It all centres around the questions: “In order to sustain and grow as an organization and as individuals within; what are the procedures, what is the know-how we need to maintain and where do we need to change?',

18. your country your company YOU! Introduction to change management The three levels of change management • Change – and thus change management (if change can be managed at all) takes place on three levels • the self • the team or the organization (your company) and • the wider system that surrounds the team or the • organization

19. Introduction to change management The three levels of change management YOU! SelfChange management starts and ends with individuals. As the system theory says, you cannot really predict how a person reacts to a certain stimulus. So, if you want to introduce change into a system, you will most likely need to think about what skills, behaviours and belief systems the members of the system will need to be part of the change effort. ...

20. Introduction to change management The three levels of change management TeamAt the heart of modern organizations are teams that share the responsibility and the resources for getting things done. Most projects are too complex to be implemented by one person, most services need different specialists and support staff to be delivered, and most products are the result of the work of a larger resources team or supply chain. We know that teams can either perform at their peak, or can be terribly inefficient. ... Team

21. Introduction to change management The three levels of change management Larger SystemsChange processes are mostly initiated by either individuals or small teams, but the focus of change is one which goes beyond that small unit. It is directed towards the entire organization, or towards other organizations. A change project might be related to a community, a region or an entire society (and, yes: to the world as a whole). ... System Team

22. Introduction to change management Necessary skills

23. 1. Political skillsBecause companies are by nature political, it's essential to understand organizational dynamics 2. Analytical skillsIntuition and insight aren't good enough. Change agents must conduct sharp analysis. The two most crucial skills are systems analysis and financial analysis. 3. People skillsRelating to people, their needs, fears, and dreams, is essential during a period of change. This is especially true at multinational companies, where cultural, language, political, and religious differences abound. 4. System skillsThis includes issue of understanding processes, including resources and routines intended to produce specified results. 5. Business skillsIt's impossible to succeed without a fundamental understanding of how a business works. This includes insight into the flow of money, knowledge, and data.  Introduction to change management Necessary skills

24. D. Change management steps

25. Change management steps Where you want to be Step of change Strategy / Change Process Where you are now

26. Change management steps The steps of the change process RESULT Situation Analysis Psychosocial Change Implementation Learning Information Concept building

27. Change management steps RESULT Detailed steps for your organization Evaluate Implement and monitor the changes Plan for implementation of changes Receive change requests Definition of change management process Analysis Situation

28. Change management steps The Improvement Cycle (Deming) Plan (What do you want to achieve, how?) Act (Make improvements) Do (Implement) Check (Are you achieving what you wanted to achieve?)

29. Opportunities Threats Strengths Weaknesses Change management steps The strategic management process Environmental analysis Realized strategy Stakeholder analysis Strategic vision Chosen strategy Strategic history Current strategy Organizational analysis Source: Dobson/Starkey, 1993

30. Change management steps Setting targets Setting up service targets is essential. If targets are not set properly you will not be able to measure the results. Targets are quantified objectives, set by management, to be attained at a future date. They express the aims of the process, at any level, and provide the basis for identifying problems and moving towards solutions as early as possible. Setting targets, objectives or goals is essential, otherwise there is no basis for choosing what to measure, how to assess the information obtained, or what action to take. Defining a target answers the question 'what are we aiming for?'

31. Change management steps Setting targets: SMART • Good performance targets will be SMART: • Specific • Measurable • Achievable • Relevant/realistic and • Timed • If targets are hard to quantify, the definitions of the terms used to describe them are crucial and should be agreed between all concerned. Terms such as 'satisfaction' and 'milestones' are open to different interpretations and may have to be precisely defined for your situation.

32. Change management steps Case study and presentation • All of you might feel the need of change in one or the other situation in your job and your organization… let us work on it. • Define your situation using a situation analysis tool or situation describing tool you might know. If you can’t imagine a tool, just use your creativity and define the target you might have. • What problems might occur on the way from the actual situation to the target? • Task • Prepare a presentation including • definition of a situation you would like to change • definition of the target you would like to reach • possible problems on the way • Prepare a flip-chart presentation not using any letters, words or numbers – only • pictures are allowed

33. E. Analysing Organizations

34. Analysing and Describing General Assessment

35. Analysing and Describing Analysing the History for future Drawing a timeline of your institution • Step 1: Drawing the time line • Alone, think about events that represent notable milestones and/or turning points in • your organization incl. what happened globally • Use a marker to write (or draw) your milestones on the time line which is displayed • on the pinboards • Step 2: Analyzing the time line • Each group will analyze one of the three different time lines • What were important trends are noticed at different times? • What assumptions did/do people make on the future? • How did the trends and assumptions shape what happened next? • Are there important lessons for the future? • What does the institutional time line say about the learning processes within the • organization? • The group should prepare one flip chart that summarizes their main findings.

36. Analysing and Describing Analysing the history for future Drawing a timeline of your institution

37. Analysing and Describing Analysis of participation in an institution

38. Analysing and Describing Systems Thinking “The flapping of a single butterfly's wing today produces a tiny change in the state of the atmosphere. Over a period of time, what the atmosphere actually does diverges from what it would have done. So, in a months time, a tornado that would have devastated the Indonesian coast doesn't happen. Or maybe one that wasn't going to happen, does.” (I. Stewart)

39. Analysing and Describing Systems Thinking • Systemic thinking means considering cause-effect relationships of decisions prior to taking action. • What is the underlying cause for our problem? • What are the positive aspects of doing things the old-fashioned way? • What effects do we expect from reaching our goals? • How does the anticipation of effects influence the status quo? • What question would I like to ask an oracle? • It is easy to use asking yourself the 5 whys Let’s try by asking five whys for a selected problem

40. Analysing and Describing S.C.O.R.E. - A Tool for Identifying Systemic Cause-Effect Relationships

41. Change management from steps to tools Organizations: Organizational analysis - SWOT

42. Change management from steps to tools Organizations: Clients and stakeholders - expectation matrix • List the main groups involved in the project implementation. Draw a matrix, where the columns as well as the rows represent the titles of the groups. Cross out those boxes of the matrix which match. • Start with the group, which represents the first row. Proceed in a horizontal sequence and ask the representatives of that respective group, what they expect from the other groups in terms of roles and responsibilities during project implementation. No comments are allowed. • After having filled all the squares, you go back to the first group. Now are working in a vertical sequence. Read all the statements in column 1 aloud and ask the representatives of group number one for their reaction to what is expected from them. Are they willing to comply with these expectations? If not, mark disagreements. Finally, ask the representatives of group 1 to add additional tasks and responsibilities they want to assume for themselves. • Continue the process for the other groups. Debrief thoroughly. If there are any disagreements left, you might need to add an additional negotiation process until there is a consensus of all participants.

43. Change management from steps to tools Organisations: Clients and stakeholders - expectation matrix

44. F. Analysing Processes

45. What is a Process? Analysing and Describing INPUT PROCESS OUTPUT A process is an activity, or series of activities, that converts an input, to an output, by doing work.

46. HRM & D Employee Satisfaction K E Y P E R F O R M A N C E R E S U L T S L E A DERSHIP P R O C E S S E S Customer Satisfaction Policy & Strategy Impact on Society Resources & Partners Enablers Results Common Assessment Framework Model (CAF) Analysing and Describing

47. Process Model Analysing and Describing P U B L I c P U B L I C Vision, Mission & Values Strategy Develop- ment Service Develop- ment Servicing Customers Support Support & Enabling Processes

48. Analysing and Describing Phases of Process Analysis Phase 1: Preparation Phase 2: Describing the process Phase 3: Structuring the process Phase 4: Monitoring and adaptation

49. Process across departments Analysing and Describing

50. Splitting process up Analysing and Describing • The process you have defined in broad terms now needs to be broken down to a level of detail that allows you to effectively understand and analyse the process. • This activity is often termed 'process decomposition'. The process is likely to break down into: • Major process • Sub-processes • Activities • When describing a process or sub process it is helpful to use the format: • verb + noun Let’s try it !