Change Management Strategy

Change Management Strategy

Change Acceleration Process - Model Leading Change Creating A Shared Need Shaping A Vision Initiate Change Mobilizing Commitment Improved State Sustain Change Making Change Last Current State Monitoring Progress Transition State Changing Systems & Structures

Change Acceleration Process - Implementing Change Why Are We Here? Q x A = E Quality Effectiveness Acceptance

Change Acceleration Process - Implementing Change High Current State Medium Low Monitoring Progress Changing Systems & Structures Creating a Shared Need Making Change Last Mobilizing Commitment Shaping a Vision Systems & Structures

Change Acceleration Process - Implementing Change SAMPLE AGENDA Day 1 8:30-9:30am Introduction/Objectives 9:30-12:00am Creating a Shared Need (includes break) -Threat vs. Opportunity -3 D’s Matrix 12:00-1:00 Lunch 1:00am-2:30pm Shaping a Vision -In/Out of Frame -More of/Less of -Vision Statement -Elevator Speech 2:30-3:00 Break 3:00-4:00pm Mobilizing Commitment (includes break) -Key Constituents Map -Stakeholder Analysis

Change Acceleration Process - Implementing Change AGENDA Day 2 8:30-12:00 Mobilizing Commitment (includes break) -TPC Analysis -Influence Strategy 12:00-1:00 Lunch 1:00-3:00 Report Outs with All Groups 3:00-6:00 Changing Systems & Structures (includes break) -Project Impact on Systems & Structures -Assess Control & Influence on Systems & Structures -Prioritization of Systems & Structures

Change Acceleration Process - Implementing Change AGENDA Day 3 8:30-12:00am Changing Systems & Structures (includes break) -Staffing & Development 12:00-1:00 Lunch 1:00-2:30pm Changing Systems & Structures -Rewards & Measures 2:30-3:00pm Break 3:00-4:00pm Changing Systems & Structures -Organizational Design 4:00-5:30pm Changing Systems & Structures -Communication 5:30-6:00pm Review Final CAP Strategy

Creating a Shared Need • Why bother to create a shared sense of need? • Forces any resistance or apathy to be addressed head-on. • Validates why the project is important and critical to do. • Builds the momentum needed to get the cross-sell initiative launched. • What are we after? • A shared recognition, by both the team and key constituents, of the need and logic for change. • Dissatisfaction with the status quo (greater than the natural resistance). • The ability to frame the need for change as both a threat and an opportunity. • What should I do? • Choose information from the Threat/Opportunity Matrix and the 3D’s Matrix to make a case for the shift to a CROSS-SELL CULTURE! Creating A Shared Need produces the "WAKE-UP CALL", building early momentum for the change initiative

Creating a Shared Need • Assessment • 1. Are all members of your team aligned in terms of the need for change? • 2. Has your team framed the need for change in such a way to reflect the concerns of customers and key suppliers? • 3. Would each team member deliver essentially the same "message" regarding the need for change if asked by someone outside of the team? • 4. Who are the key constituencies affected by this initiative, and how much importance does each give to the initiative? • 5. How can we help others increase their sense of the need for change? Creating a Shared Need involves framing the need to appeal to the interest of key constituents

Creating a Shared Need Short Term Threats Short Term Opportunities

Creating a Shared Need Long Term Threats Long Term Opportunities

Creating a Shared Need 3-D’s Matrix: Taking our Threat-Opportunity Matrix information, this tool helps us “flesh out” the need for change in a way that uses data to build a case for the change that is hard to dispute. • Data / Diagnosis • (that support the need for change): • • Internal Sources • • External Sources Demonstration: • Who (internal) is leading by example? • Industry Best Practices • Benchmarking other Organizations Demand: • Who is demanding the change? • What standards are expected?

Creating a Shared Need 3 D’s Matrix Variety of Approaches … Techniques For Project • Data / Diagnosis • (that support the need for change): • • Internal Sources • • External Sources

Creating a Shared Need 3 D’s Matrix Variety of Approaches … Techniques For Project Demonstration: • Who (internal) is leading by example? • Industry Best Practices • Benchmarking other Organizations

Creating a Shared Need 3 D’s Matrix Variety of Approaches … Techniques For Project Demand: • Who is demanding the change? • What standards are expected?

Shaping a Vision • Why bother Shaping a Vision? • Visions paint a picture that appeals to both the "head" and the "heart" and answers the question, "Why change?". • Clear statement of the future state helps gain genuine commitment. • A well-articulated vision helps establish the milestones to monitor progress and change systems and structures. • What are we after? • A clear statement about the outcomes of the change effort. • A view of the future state that is: • - Customer focused - Not just one person's dream • - Challenging - Evolving, not static • - Easy to understand - Behavioral & actionable Visions provide direction and motivation for change!

Shaping a Vision In & Out of Frame: Identifies what aspects of this project (people, products, sites, issues, topics, etc) are within the scope of us addressing, AND which are out of scope and will not be addressed in this strategy. Not In Scope: Should Not Be Addressed In Scope: Certain it Must Be Addressed Put on Edge of Frame if You Are Not Sure

Shaping a Vision In Scope Out of Scope

Shaping a Vision • Crafting A Vision: (1 Hour-In Breakout Groups: A, B, C) • 15-Word Flip Chart: Create a vision statement using 15 words or less on a flipchart. What does it look like when mid-managers have successfully implemented the cross-sell initiatives? • More of/Less of Behaviors: To make this vision a reality, what will mid-managers in this organization do MORE OF, or LESS OF? Use Post-Its to capture ideas, highlight most critical items. • Elevator Speech: Ensures that team members see the project the same way and spread a unified consistent message. • What the project is about… • Why it is important… • What success looks like… • What we need from you… • Each Team will Share Their Work in Brief Presentations. • Discussion will Combine Work of All 3 Teams into a Common Vision!

Shaping a Vision Desired Behaviors – More Of Desired Behaviors – More Of

Shaping a Vision Desired Behaviors – Less Of Desired Behaviors – Less Of

Shaping a Vision Vision Statement

Shaping a Vision Elevator Speech • This project is about…. • It is important because….. • Success will look like….. • What we need from you….

Mobilizing Commitment • Overview • Why bother? • • Need sufficient support and involvement from key stakeholders • • Critical mass must be won-over • • Key differentiator between success and failure • What are we after? • • Coalition of committed supporters • • Identification of potential resistance • • Conversion of key influencers • Assessment • How well has the team: • - Identified key constituents/stakeholders? • - Analyzed sources of resistance? • - Maximized win/wins through conflict resolution? • - Developed problem solving processes to build commitment?

Mobilizing Commitment Assessment How well has the team: - Identified key constituents/stakeholders? - Analyzed sources of resistance? - Maximized win/wins through conflict resolution? - Developed problem solving processes to build commitment?

Mobilizing Commitment Key Constituents Map

Mobilizing Commitment Stake Holder Analysis: X = Current State, O = Future State

Mobilizing Commitment Tool:Technical-Political-Cultural Analysis - Seeks to identify, label and understand sources of resistance as either Technical (sunk costs, lack of skills, lack of critical resources, etc.) Political (issues of power and authority, threats to the "old guard", etc.), or Cultural (norms, mindsets, habits, etc.). This tool helps the team to more clearly understand the nature of the support and resistance they will likely face and begin to develop a strategy to eliminate or lessen the resistance. Examples Rating Sources of Resistance Definition/Causes of Resistance Technical Political Cultural • Uses:We often assume that once we've "pegged" a given population relative to the "attitude" toward change they currently exhibit, we are ready to develop an effective strategy for winning their support. Too often however, our analysis of the reason is shallow or inaccurate. This tool enables the team to thoroughly understand the nature of resistance and the specific strategy to use to influence and gain support. • Timing: Though usually used early on in the change initiative cycle, this tool can and should be used whenever a new source of resistance is identified. Even during the "home stretch," resistance should be expected. This tool can save the team valuable time in understanding the nature of the resistance.

Mobilizing Commitment • Technical • Political • Cultural

Influencing Strategy • Stakeholder • Resistance/ • Issues • “Wins” • What To Do • When To Do • Who To Do

Changing Systems & Structures • Why bother? • When we change the way we organize, train, develop, reward, compensate, and promote people, we are likely to see individual behavior change • Successful changes usually involve significant realignment of “organizational infrastructure” • Need to develop the capacity to change, not just the ability to change - “Can we build this change into our ongoing systems?” • What are we after? • Identification of key System & Structures areas that must be addressed to assure long-lasting project completion and implementation • Utilization of Systems & Structures Best Practices • Alignment of Systems & Structures with desired behaviors

Changing Systems & Structures • Six aspects: Changing Systems & Structures involves using/modifying… • Staffing (How we acquire/place talent) • Development (How we build competence/capability) • Measure (How we track performance) • Rewards (How we recognize/reward desired behavior) • Designing (How we organize to support the change initiative) • Organizations • 6. Communication (How we use information to build and sustain momentum)

Changing Systems & Structures High Impact Medium Low Rewards Measures Staffing Development Org. Design / Job Structure Communication Systems & Structures

Changing Systems & Structures No Control Control Influence

Changing Systems & Structures Staffing & Development • What critical knowledge, skills, and personal characteristics are required for this change? • How will we obtain or develop the talent we need? • How effective have we been at developing talent in the past? • To what extent do these qualities exist?

Changing Systems & Structures Staffing & Development What critical skills will employees need to drive this change in our business?

Changing Systems & Structures Staffing & Development High Level Summary of Performance Gaps

Changing Systems & Structures Development Audience: ABC Performance Objectives Performance Gaps As Is To Be Barriers Drivers

Changing Systems & Structures Rewards & Measures • Existing measures? • Which existing measures provide little or no information about any of the desired behaviors? • Which desired behaviors cannot be reliably measured by any existing measures? • How could we measure those desirable behaviors not now being measured? • If you achieve your desired changes, which existing measures will emit false signals erroneously indicating that performance is degrading? • If an employee carries out each of the desired behaviors, what is likely to be the organization’s reaction? A. Reward or approval, B. Punishment or Disapproval, C. No reaction, D. Impossible to predict (Consider more of vs. less of) • Existing Rewards: A. Financial, B. Non-financial • How could we reward these desired behaviors not now being rewarded?

Changing Systems & Structures Org. Design Boundaryless Question Examples Assessment How well have we removed the vertical boundaries in our organization? Vertical Horizontal How well have we removed walls between groups within our business? How well have we removed barriors between our business suppliers, customers, and competitors? External

Changing Systems & Structures Communication • Steps to Develop a Communication Plan: • Understand who I need to communicate with • Identify what results I need from the communication (purpose) • Understand/identify specific messages to communicate • Select the best channel of communication to achieve the purpose.

Changing Systems & Structures Communication Audience Purpose Timing Owner Messages Channel

Change Management Strategy