Change Management

1. Change Management Tom Etter and Bin Yu

2. Change Management • Most change efforts fail • Two thirds fail because of failure to reach intended results • Efforts at “reengineering” experience a 70% failure rate • Companies who fail to sustain significant change end up facing crises • John Kotter – 8 phases of driving successful change

3. 8 Steps to Managing Change • Establish a Sense of Urgency • Form a Powerful Guiding Coalition • Create a Vision • Communicate the Vision • Empower Others to Act on the Vision • Plan for and Create Short-Term Wins • Consolidate Improvements and Produce More Change • Institutionalize New Approaches

4. Establish a Sense of Urgency • Exhibit Vulnerability in Organization • Examine market and competitive realities • Identify and discuss crises, potential crises, or major opportunities

5. Establish a Sense of Urgency • Over 50% of organizations fail to create a sense of urgency • Underestimate the difficulty in moving people from their comfort zone. • Lack of patience • Complacency

6. Establish a Sense of Urgency • Sources of Complacency • Too much happy talk from senior management • The absence of a major and visible crisis • Too many visible resources • Low overall performance standards • Organizational structures that focus employees on narrow functional goals • Internal measurement systems that focus on the wrong performance indexes • A lack of sufficient performance feedback from external sources • A kill-the-messenger, low-candor, low-confrontation culture • Human nature, with its capacity for denial, especially if already busy/stressed • ?

7. 1. Establish a Sense of Urgency • When is the level of urgency high enough? • When 75% of leadership honestly believes a change is necessary.

8. 1. Establish a Sense of Urgency • Ways to raise urgency level • Create a crisis • Allowing financial loss • Exposing managers to weaknesses • Allowing for error • Eliminate obvious examples of excess • Company jet, country club, etc. • Set performance targets so high they can’t be reached by conducting business as usual • Insist on more productivity and broader measures of performance

9. 2. Form A Powerful Guiding Coalition • Assemble group with enough power to lead change effort • Encourage the group to work together as a team • Regardless of size, needs at least 3-5 people • Grow team to 20-50 range in large companies • Failures due to: • No history of teamwork at top • Undervalue importance • Strong sense of urgency not established • Selecting wrong leadership

10. 2. Form A Powerful Guiding Coalition • Building the coalition • Find the right people • Strong position power • Broad expertise • High credibility • Create trust • Carefully planned off-site events • Lots of talk and joint activities • Develop common goal • Sensible to the head • Appealing to the heart

11. 3. Create A Vision • Create vision for directing change effort • Develop strategies for achieving that vision • A vision says something that clarifies direction • The vision pulls the organization toward the change

12. 3. Creating A Vision • Characteristics of an effective vision • Imaginable • Desirable • Feasible • Focused • Flexible • Communicable

13. 3. Vision Example • The University of New Hampshire (UNH) is nationally recognized as a Sustainable Learning Community* -- a land grant, sea grant, and space grant university that unites the spirit of discovery with the challenge of sustainability across its Curriculum, Operations, Research and Engagement: • Curriculum: Educating citizen-professionals to advance sustainability in their civic and professional lives • Operations: Embodying first principles and best practices of sustainability • Research: Serving society with scholarship that responds to the most pressing issues of sustainability • Engagement: Collaborating locally to globally with extension and outreach • -- through four initiatives designed around four foundational systems of sustainability – biodiversity, climate, food, and culture.

14. 3. Create A Vision • Example • University of New Hampshire • Sustainable Learning Community • Land grant, sea grant and space grant university • Unites the spirit of discovery with the challenge of sustainability across its 4 initiatives.... • Curriculum • Operations • Research • Engagement ....designed around 4 foundational systems of sustainability.... • Biodiversity • Climate • Food • Culture

15. 4. Communicate the Vision • Management must decide how much communication of the vision is needed • Do not limit it to one communication • Use deeds along with words • Will fail unless most members.... • Understand • Appreciate • Commit • Try to make happen effort happen • Use every existing communication channel and opportunity

16. 4. Communicate the Vision • Key Elements in Effective Communication of a Vision: • Simplicity • Metaphor, analogy and example • Multiple forms • Repetition • Leadership by example • Explanation of seeming inconsistencies • Give-and-take

17. 5. Empower Others to Act on Vision • Eliminate obstacles to change • Change systems or structures that seriously undermine the mission • Encourage risk taking and nontraditional ideas, activities and actions • Make tough decisions in removing people who don’t ascribe to the vision

18. 5. Empower Others to Act on Vision • Barriers to Empowerment • Employees understand the vision & want to make it a reality but are boxed in by.... • Formal structures making it difficult to act • A lack of needed skills undermines action • Personnel & information systems make it difficult to act • Bosses discourage actions aimed at implementing the new vision

19. 5. Empower Others to Act on Vision • Empowering people to effect change • Communicate a sensible vision to employees • Make structures compatible with the vision • Provide the training employees needed • Align information & personnel systems to the vision • Confront supervisors who undercut needed change

20. 6. Planning for & Creating Short-Term Wins • Create and plan for visible performance improvements • Recognize and reward employees involved in the improvements

21. 6. Planning for & Creating Short-Term Wins • The Value of Short-Term Wins • Provide evidence that sacrifices are worth it • Reward change agents with pat on the back • Help fine-tune vision and strategies • Undermine cynics and self-serving resisters • Keep bosses on board • Build momentum

22. 7. Consolidate Improvements & Sustain Momentum For Change • Use increased credibility to change systems, structures and polices that don’t fit the vision. • Hire, promote & develop employees who can implement the vision. • Reinvigorate the process with new projects, themes and change agents. • Confront even bigger issues and problems.

23. Change Management >Project Management

24. Project vs. Change Management • Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements (i.e. to affect change). • Change Management is the process, tools and techniques to manage the people-side of change to achieve the required business outcome (i.e. to assure the change is accepted; not rejected). Adopted from Prosci Research

25. Change vs. Project Management • Existing: • Processes • Systems • Org Structure • Job Roles • New: • Processes • Systems • Org Structure • Job Roles Continous Improvement Project Management Current State Transition Period Future State Change Management • Person affected by existing: • Processes • Systems • Org Structure • Job Roles • Person successfully transitions / accepts new: • Processes • Systems • Org Structure • Job Roles

26. Change Management Processes/ Tools • Create Plans, then execute them. Five “should’s”: • Communication Plan • Sponsor Roadmap • Training Plan • Coaching Plan • Resistance Management Plan • Provides situational awareness. Helps us “Get Ready” • Output examples: • Change characteristic profile • Organizational attributes profile • CM Strategy • CM Team Structure • Sponsor assessment; roles • Ensure the change is Sustained. • Output examples: • Reinforcement mechanisms • Compliance audit reports • Corrective action plans • Recognition approaches • Success celebrations • After action review

27. Change Management Competency • Organizations must change faster than was previously required in response to a rapidly changing world; managing the people-side of change is essential to successful change. • CM competency can be measured via Prosci’s Maturity Model:

28. Tips for Successful Change Management From Barbara Johnson, PhD