Change management in public services Strategies and methods

1. Change management in public servicesStrategies and methods Beirut – 20 April 2011 Charles-Henri Montin Senior Regulatory Adviser Ministère de l’économie et des finances, Paris charles-henri.montin@finances.gouv.fr charles-henri@montin.comwww.smartregulation.net

2. Contents • Principles of change management • Preparing for change • A five step approach to change management • Motivating change and creating readiness • Launching the reform • Developing support • Managing the transition • Sustaining the pace of reform • Further reading Beirut, 20 April 2011

3. Principles (from the literature) • “Change is a process that must be enabled” • The change process must be anchored in policy and performance goals • Building capacity to change must follow on the definition of goals • Effective change processes are dependent on the organisation/ institutional set-up • The change process involves both organisational and personal transitions • Behavioural change in a function of perceived need and occurs at the emotional not intellectual level • Resistance to change is predictable reaction • A few change enablement best practices account for the success of most change processes (see slide 10) • A majority of change project fail (UNDP) Beirut, 20 April 2011

4. Preparing for change • Research the history of issues • Analyse drivers of change(also called triggers) • expectations of the citizens • new political mandate, budget cuts • power of IT tools inside, and outside (web 2.0) • international competition • Identify the actors • the sources of influence/authority • who will influence the decision making • who will be affected • whose cooperation is needed • who could delay/derail the action • Address obstacles to change, including risk analysis. Examples: • lack of vision / executive commitment, or lack of agreement on content of reform • over focus on procedures, systems, technology (bureaucratic conservatism) • HR: no involvement of staff, lack of training, fears of losing jobs • lack of capacity to support change; no empowerment Beirut, 20 April 2011

5. Step-by-step guide to effective change management • Motivating change • Launching the reform • Developing support • Managing the transition • Sustaining the pace of reform • Examples of changes requiring management • New budget tool • Creation of a new DG • Introduction of performance management • Regulatory reform • Simplification drive Beirut, 20 April 2011

6. Phase 1 Motivating change and creating readiness for change (advocacy, visioning, empowerment, voicing) • sensitise ministries and stakeholders to the existing pressure for change: seminars, international best practice • reveal discrepancies between current and desired states: promote self-scrutiny (CAF) • convey credible positive expectations for change: issue policy documents, publish modernisation programme, draft legislation • Define content: publication of an official “White Paper” • Devise proper mix of tools: regulation, programs, subsidies, information campaign Beirut, 20 April 2011

7. Phase 2 Launching the reform • Disseminate key concepts to build a positive image of change: “modernisation”, “reform,” “quality of service,” • Organise a major event with stakeholders, consultation exercise using all channels • Publish plan and phase results (example “low hanging fruits”) • Mobilise staff, using classic channels, with meetings down the hierarchical line Beirut, 20 April 2011

8. Phase 3 Developing support • Address the needs of each category of actor • change sponsor (strategists) those who decide (ministers, MPs etc) • change agents: (implementers): reform team, correspondents in ministries • change target: those who are asked to change something (recipients) • Identify and involve stakeholders • list public and private organisations that can influence the success • devise appropriate consultation and involvement mechanisms • bring them from observer to participant role in the change • Overcoming resistance to change • information and communication • participation and involvement, training • facilitation and support, rewards • negotiation • manipulation and cooptation • coercion (pour mémoire) Beirut, 20 April 2011

9. Phase 4 Managing the transition • Mechanics of change: the classic phased model (Lewin) • unfreezing: weaken old attitudes, values and behaviour, force field analysis • transforming: organise training and skills developmeent • refreezing: consolidate new attitude, values, behaviour • Ongoing organisational change (more suited to public organisations) • Updating official information and issue new instructions • improving services (quality approach) • conducting research and benchmarks • updating policies and procedures • Assign clear roles and mandates to members of the change management team • project leaders • leadership advisory • process coordination • performance management Beirut, 20 April 2011

10. Components of change implementation plan during the transition Beirut, 20 April 2011

11. Phase 5 Sustaining the pace of reform • Providing resources for ongoing effort: resources to back the ideas • Deliver early results to consolidate commitment (examples “low hanging fruit”, fast-track action) • Evaluate the reform at regular intervals and fine-tune • Refresh new competencies and skills • Reward new behaviours • Prepare for the next reform ! Beirut, 20 April 2011

12. Further reading • UNDP Institutional reform and change management: a capacity development resource: http://lencd.com/data/docs/232-Concept%20Note_Institutional%20Reform%20and%20Change%20Management-.pdf • Book by A.Baker: Strategic change management in public sector organisations http://www.woodheadpublishing.com/en/book.aspx?bookID=1841&ChandosTitle=1 Beirut, 20 April 2011