Change Management: The X Factor in a Successful BPO Transformation

Gwendolyn Moody

Renovo

The Transformation ConsultantsCopyright © 2011 GM Solutions Group. All Rights Reserved.

The Outsourcing InstituteAtlanta ChapterOutsourcing 2011

Wednesday, March 2, 2011

Atlanta, Georgia

2Copyright © 2011 GM Solutions Group. All Rights Reserved.

Introduction

What is change management?Change management is the process, tools and techniques to manage the people-side of change to achieve the required business outcome.*

People

Process Technology

* Prosci Inc. Definition of Change Management

Organizational StructureRoles and responsibilities

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Introduction

Why is change management so important?

* General Electric’s Change Acceleration Program (CAP)

Q x A = Effectiveness

Quality of technical, transition, transformation, growth, etc. strategy

Q =

Acceptance and/or AdoptionA =

Change Effectiveness Equation*

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Contents

Adoption Killers

Unique BPO adoption challenges

Four necessary conditions for adoption

Change management adoption strategies

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Adoption Killers

Resistance is a natural part of any change, even if it is viewed as positiveAnticipate resistance, acknowledge it and overcome resistance; ignoring it or suppressing it is not an effective strategy

Lack of trust and skepticismOpen and respectful communications (sharing the information that is available) can help to facilitate trust

You can address skepticism by (giving space) letting people accept that the change is a reality (inevitable) and acknowledging that people might have emotional ambivalence; they will need time to work through

Lack of clarity and relevance surrounding benefits and the rationale for changeRecognize that one size does not fit all. Individuals need to hear the rationale for change as it relates to their daily lives from a leader in their organization, not senior executives

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BPO Adoption Challenges

Emphasizing company benefits when there are no clear personal benefits (WIFM)The reasons for the change might be clear; but do not have a personal benefit for resources that are involved in the transition

People ultimately recognize that decisions are not always made with priority to individual benefit

Keeping transitional employees engaged in the knowledge transfer phaseProviding a daily motivation boosters (not morale) to transitional employees is critical and can be achieved through monetary incentives, resume builders and reference agreements

Maintaining focus for retained employeesCommunicating their valueLetting them process survivor’s guiltIncentives to act as role models

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Four conditions for adoption*

A compelling story Affected employees need to see the point of change and agree with it, at least enough to give it a try

Role modeling Employees need to see colleagues they admire modeling the desired behavior

Reinforcement systems All of the supporting structures, systems, processes and incentives must be in tune with the new behavior

Skills required for change Affected stakeholders need to have the skills to do what is required of them

* “The Psychology of Change Management,” The McKinsey Quarterly, 2003, Number 2

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Change management strategies for BPO

Design and execute a thoughtful change management strategy that focuses on the four necessary conditions for change adoption:

Implementing & Sustaining New Ways

Enabling & Engagingthe Organization

Setting the Climate for Change

Ch

ang

e L

ead

ersh

ip Leadership Alignment

Communication Strategies

Org

aniz

atio

n/H

R

Organization Design

Workforce Transition

Lea

rnin

g Learning Requirements

Capability Transfer Strategy

Implement Transfer PlanEvaluate and Control Strategy

Talent Requirements & PlanEvaluate and Control Strategy

Assess Change & People impact

Mitigate Risks

Deploy Change Agents

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About Renovo

Renovo is a management consultancy that helps clients achieve sustainable value in their business transformations.

Supporting clients in numerous industries, we have functional knowledge in Finance and Accounting, HR, IT, Procurement and other critical business processes. Renovo helps clients achieve their business case value with internal transformations such as ERP implementations, shared services, M&A integration and outsourcing solutions.

Key ContactGwen MoodyManaging Principal678-662-4155gwmoody@renovoteam.com