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Change Management

To download this Change Management PPT presentation, visit:<br>https://www.oeconsulting.com.sg/training-presentations<br><br>LEARNING OBJECTIVES<br>1. Acquire knowledge on the key concepts and principles of change management.<br>2. Define the change management process and explore the frameworks, methods and tools for managing change.<br>3. Identify the challenges and best practices of change management.<br><br>CONTENTS<br>1. Introduction to Change Management<br>2. The Change Management Process<br>3. Frameworks, Methods and Tools<br>4. Challenges and Best Practices

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Change Management

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  1. CHANGE MANAGEMENT The Holistic Approach to Strategic Change © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Acquire knowledge on the key concepts and principles of change management Define the change management process and explore the frameworks, methods and tools for managing change Identify the challenges and best practices of change management 2 © Operational Excellence Consulting

  3. CONTENTS 01 02 03 04 INTRODUCTION TO CHANGE MANAGEMENT THE CHANGE MANAGEMENT PROCESS FRAMEWORKS, METHODS & TOOLS CHALLENGES & BEST PRACTICES 3 © Operational Excellence Consulting

  4. “ who can best manage change.” It is not the strongest or the most intelligent who will survive but those CHARLES DARWIN 4 © Operational Excellence Consulting

  5. 70% of change programs fail, most often due to resistance from employees 5 Source: McKinsey © Operational Excellence Consulting

  6. SOME STATISTICS ON CHANGE MANAGEMENT 42% 46% 51% CEOs recognize the need for culture change to support a digital initiative CIOs say that culture change is their biggest barrier to successful digital transformation Change/Business leaders say navigating change fatigue is a common frustration 49% 39% 41% Change leaders say employees are disengaged and exhausted from business transformation Employees say their organizations were effective in inspiring them in business transformation Change leaders say organizational structure and systems are constraints to success 6 Sources: Gartner, Gallup & Gagen MacDonald © Operational Excellence Consulting

  7. Change does not happen overnight after a CEO’s weekly “sermon” 7 © Operational Excellence Consulting

  8. People are the greatest source of resistance to change, therefore change must involve people 8 © Operational Excellence Consulting

  9. WHY IS CHANGE IMPORTANT IN AN ORGANIZATION? Customer needs are constantly evolving The ever-changing world of technology Changing global economy Challenging the status quo Developing a culture of innovation Take advantage of growth opportunities 9 © Operational Excellence Consulting

  10. THE ORGANIZATIONAL CHANGE ICEBERG Vision Strategy VISIBLE Shared Values ORGANIZATIONAL CULTURE Structures Beliefs INVISIBLE ORGANIZATIONAL CULTURE Perceptions Tradition Shared Assumptions Norms Unwritten Rules Stories Feelings 10 © Operational Excellence Consulting

  11. CHANGE MANAGEMENT vs. DIGITAL TRANSFORMATION CHANGE MANAGEMENT DIGITAL TRANSFORMATION The process of directing, administering and managing organizational changes. The process of integrating digital technology into a business – a transformation that can impact technology, culture, work environment and more. 11 © Operational Excellence Consulting

  12. EXAMPLES OF BUSINESSES THAT FAILED TO ADAPT TO CHANGE Photographic film market disrupted by digital photography. Focused on media and undervalued the importance of search. Movie rentals disrupted by online video streaming. Limited to uploading of songs instead of enabling people to connect through more than just music. Sales of physical books disrupted by sales through Amazon and e- reading devices. Ignored touch screen based technology and lost market share in mobile market. 12 © Operational Excellence Consulting

  13. EXAMPLES OF BUSINESSES THAT HAVE ADAPTED SUCCESSFULLY TO CHANGE Responded to greater health consciousness with less/no sugar products such as Diet Coke and Coca-Cola Zero. Direct selling to customers, partnership with Amazon and using consumer data to connect with customers. Digitally transformed from physical toy products by bridging physical and augmented reality experiences. Moved focus from posting videos to subscribing customers to online video streaming. Merged physical and online shopping; created a rental and recycling of furniture to reduce environmental impacts. Moved focus from traditional software to cloud-based system for personal and enterprise use. 13 © Operational Excellence Consulting

  14. FORCE FIELD ANALYSIS MODEL FOR CHANGE Current Situation RESTRAINING FORCES FOR CHANGE DRIVING FORCES FOR CHANGE Obstacles to change. These forces should be removed or reduced. Positive forces for change. These forces should be strengthened or increased. 14 © Operational Excellence Consulting

  15. MARTEC’S LAW: TECHNOLOGY CHANGES EXPONENTIALLY, ORGANIZATIONS CHANGE LOGARITHMICALLY Technology changes exponentially Technology management is deciding which changes are adopted ? ? Organizations change logarithmically 15 Source: Scott Brinker © Operational Excellence Consulting © Operational Excellence Consulting

  16. TWO SIDES OF CHANGE Technical side (“hard factors) includes strategy, structure, process, systems and technology Human side (“soft factors”) includes culture, communication, skills and leadership modelling TECHNICAL HUMAN 16 © Operational Excellence Consulting

  17. “ logic, but creatures of emotion.” When dealing with people, remember you are not dealing with creatures of DALE CARNEGIE Author of “How to Win Friends & Influence People” 17 © Operational Excellence Consulting

  18. WHY DO PEOPLE FEAR CHANGE? “Will my job become redundant?” “Will I be neglected?” “Will my department be downsized?” “What is going to happen?” 18 © Operational Excellence Consulting

  19. RESISTANCE TO CHANGE Individual Organizational resistance to change resistance to change 19 © Operational Excellence Consulting

  20. USING THE CHANGE CURVE TO REDUCE NEGATIVE CONSEQUENCES & ACCELERATE CHANGE The Change Curve Positive Accelerating Change Impact Managed Change Unmanaged Change Reducing Negative Consequences Negative 20 © Operational Excellence Consulting

  21. METHODS OF OVERCOMING RESISTANCE TO CHANGE Education & Communication Participation & involvement Facilitation & Support Manipulation & Co-option Coercion Negotiation 21 © Operational Excellence Consulting

  22. THE ENROLLMENT CURVE DEPICTS THE TYPICAL RESPONSES TO CHANGE The Enrollment Curve Middle Enrollers Late Enrollers ● It is key to understand and leverage is the rate and pace at which people adapt to change Early Enrollers Slugs ● Focus time and efforts on the Middle / Late Enrollers. Don’t waste time on Slugs / Die Hards. You won’t persuade them in 100 days! Initiators Die Hards ● Let the Initiators & Early Enrollers help you promote the change 30% 15% 5% 15% 30% 5% Direction of Enrollment Critical Mass 22 Source: Based on Atlanta Consulting Group, Inc. © Operational Excellence Consulting

  23. When it comes to change management, internal communication plays an even more critical role today 23 © Operational Excellence Consulting

  24. 10 GUIDING PRINCIPLES OF CHANGE MANAGEMENT 1. Lead with the culture 6. Engage through constant communication 2. Start at the top 7. Lead through authority and influence 3. Involve every layer 8. Leverage formal (“hard”) solutions 4. Make the rational and emotional case together 9. Leverage informal (“soft”) solutions 5. Model the new behaviors 10. Assess and adapt Source: Adapted from Strategy&/Katzenbach Center survey, 2013 24 © Operational Excellence Consulting

  25. CHANGE MANAGEMENT: OVERVIEW OF THE DETAILED STEPS Change Management Process 4. EVALUATE EFFECTIVENESS 1. ANALYZE CURRENT SITUATION 4.1 Review results 1.1 Identify reason for change Evaluate Effectiveness 4.2 Share success stories 4.3 Provide follow up support 1.2 Assess readiness for change 1.3 Assess impact of change Analyze Current Situation 4.4 Reward and recognize 1.4 Identify gaps 1.5 Gather feedback CHANGE MANAGEMENT PROCESS 3. MONITOR PROGRESS 2. PLAN & LAUNCH PROGRAM Monitor Progress Plan & Launch Program 3.1 Monitor change process 2.1 Define change strategy 3.2 Overcome resistance to change 3.3 Assess behavioral changes 2.2 Set up change infrastructure 2.3 Create awareness and get buy-in 3.4 Measure effectiveness 3.5 Provide support 2.4 Develop and communicate plans 2.5 Develop skills 2.6 Launch pilot project(s) 25 © Operational Excellence Consulting

  26. CONTENTS OF FRAMEWORKS, METHODS & TOOLS Understanding Change Planning Change Implementing Change 1. The Change Curve (see under section 01) 1. Impact Analysis 1. Kotter’s 8-Step Change Model 2. SWOT Analysis 2. The Power/Interest Grid for Stakeholder Prioritization 2. The Enrollment Curve (see under section 01) 3. PESTLE Analysis 3. Sinek’s Golden Circle Model 4. The ADKAR Change Model 3. Lewin’s 3-Stage Change Model 4. Szpekman’s Communication Framework 5. The McKinsey 7-S Framework 5. Senge’s Learning Organization 6. Tuckman’s Team Development Model 7. The Training Needs Analysis Framework 8. The Design Thinking Process 9. Agile Change Process 10. Business Mode Canvas 26 © Operational Excellence Consulting

  27. SUCCESSFUL BUSINESS LEADERS COMMUNICATE FROM THE INSIDE TO THE OUTSIDE IN THE MODEL OF THE GOLDEN CIRCLE The Golden Circle Model Why = The Purpose Very few organizations know WHY they do what they do. WHY is not about making money. That’s the result. WHY is a purpose, cause or belief. It’s the very reason your organization exists. How = The Process Some organizations know HOW they do it. These are the things that make them special or set them apart from their competition. Why? How? What = The Result Every organization on the planet knows WHAT they do. These are the products or services that they sell. What? 27 Source: Based on Simon Sinek © Operational Excellence Consulting

  28. 12 CHANGE MANAGEMENT BEST PRACTICES 1. Define clear goals 7. Choose the right communication tool 2. Be honest and transparent 8. Empower your employees 3. Train and reassure your teams 9. Encourage knowledge sharing 4. Encourage conversations and communicate regularly 10. Document and make information easily accessible 5. Listen to your employees 11. Recognize and reward 6. Bring your leaders on board 12. Make it social 28 Source: Smarp © Operational Excellence Consulting

  29. “ results.” Insanity is doing the same thing, over and over again, but expecting different ALBERT EINSTEIN 29 © Operational Excellence Consulting

  30. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting

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