Organizational Change Management

For SAAABANovember 19, 2016

Session outline

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• Discuss typical organizational barriers to

change and rationale for managing change. 

• Describe the Seven Stages of Transition

• Introduce solutions to overcome change

objections.

200+ organizations who had recently implemented a large, transformative system were asked to identify their biggest challenges. The resulting answers are listed in random order.

Change Management Challenges

3Source: IBM “Making Change Work” 2008. GBE03100-USEN-03

_______ Change of IT systems

_______ Shortage of resources

_______ Lack of commitment of higher management

_______ Changing mindsets and attitudes

_______ Lack of change know how

_______ Technology barriers

_______ Lack of motivation of involved employees

_______ Complexity is underestimated

_______ Corporate culture

_______ Change of process

_______ Lack of transparency because of missing or wrong information

Change Management Challenges

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Changing mindsets and attitudes

Corporate culture

Complexity is underestimated

Shortage of resources

Lack of commitment of higher management

Lack of change know how

Lack of transparency because of missing or wrong information

Lack of motivation of involved employees

Change of process

Change of IT systems

Technology barriers

Soft Factors Hard Factors

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Change is a transformation from one state to another.

Change Management is a shared resolve to implement and adopt a planned, intentional change.

Change Management Defined

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Why Bother to Manage Change?

• Why is change a big deal?

• Change provides an opportunity for improvement

• What do we mean when we talk about “managing” change?

• Help people understand the nature of what’s changing

• Why might it be a good idea to “manage” change?

• To maximize the opportunity for improvement that change brings

• Change can really disrupt and confuse things

• Help people get what they need to make the transition

• To minimize the disruption and confusion of the transition phase

What’s the Big Deal?

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Projects with a focused, standardized OCM approach had a

63% higher success rating

McKinsey Study

ROI is:

• 143% when an excellent OCM program is part of the initiative

• 35% when a poor or no OCM program existed

Prosci Study

Factors directly impacted by effective OCM:

• Speed of adoption

• Ultimate utilization rate

• Proficiency

The Impact of Change

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Leadership expectations …

Productivity increases

New service concepts

New processes or process redesign

New organizational structures, cross-functional collaboration

Radical cost cutting/ headcount reduction

The reality for employees…

Potential job losses Potential loss of

responsibility and independence

Change of responsibility and decision authority

Change of work location New and unknown

leadership styles Inconsistent or

incompatible leadership styles

New expectations of superiors and peers

Loss of status Requirements for additional

skills and expertise New and unknown tasks

Outcomes without change management

Individual and collective resistance to the implementation

Slow and/or incomplete implementation

Lack of decision making and/or frequent revisions of decisions

Quality problems Reduced productivity Loss of “high performers” Insecurity and increased

risk avoidance Reduced individual

commitment Negative word of mouth

Organizational Change helps

identify the disconnect between

expectations and reality

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Predictable Reactions to Change

Because it helps us set clear expectations about what’s coming…

and if you know what’s coming, you’ll be more ready to handle it!

Even though we all make transitions in our own way,most people go through the same stages whenever they change.

We can predict the stages of transition, and how each of those stages will probably make us feel and behave.

WHY BOTHER?

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Seven Stages of Transition

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*Based upon the model of S. Spencer and J. Adams; 1974

Onset of Transition

Adjustment Adoption

Mood Morale

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Stage 1: Confusion

Onset of Transition

Adjustment Adoption

Mood Morale

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1. Confusion• Sense of confusion• Can’t see appropriate course of action

• From uneasiness to shock• Euphoria, excitement

Stage Description What to look for:

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Stage 2: Minimization

Onset of Transition

Adjustment Adoption

Mood Morale

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Stage Description What to look for:

2. Minimization

• Denying the ramifications of the change• Assuming the change won’t make much

difference, or that it will solve ALL problems.

• Denial, down-playing• Idealization

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Stage 3: Questioning

Onset of Transition

Adjustment Adoption

Mood Morale

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Stage Description What to look for:

3. Questioning

• Recognition of the hard work ahead, fear of not being ready or capable

• Most common stage for turning back, giving up

• Doubt, waffling, bottling up, “stiff upper lip”

• Missing the “good old days”

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Stage 4: Moving On

Onset of Transition

Adjustment Adoption

Mood Morale

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Stage Description What to look for:

4. Moving On

• Commitment to invest in the new way• Release of the old ways• Pendulum effect with #3

• Intensity: frustration, sense of giving up, facing the inevitable

• A clear end date helps getting stuck between 3-4

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Stage 3 and 4: The Pendulum

Onset of Transition

Adjustment Adoption

Mood Morale

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Sometimes people keep going back and forth between stages 3 and 4, trying to get the answers they need to MOVE ON.

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Stage 5: Testing

Onset of Transition

Adjustment Adoption

Mood Morale

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Stage Description What to look for:

5. Testing• Experimenting actively with the

new way of doing things• Sense of power, forcefulness• Small successes

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Stage 6: Association

Onset of Transition

Adjustment Adoption

Mood Morale

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Stage Description What to look for:

6. Association• Sense of mastery developing• Begin to relate the change to own work-life

• Improved morale and satisfaction• Renewed big-picture thinking

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Stage 7: Integration

Onset of Transition

Adjustment Adoption

Mood Morale

1. C

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Stage Description What to look for:

7. Integration • When the new way isn’t new anymore• Feelings/behaviors of

capability/ satisfaction• Resolutions replace questions

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Moving Through the Adjustment

Seeking information

Developing skills

Obtaining support

Clarifying expectations

Defining a clear end-point

Watching whatever feelings/impressions occur

Creating small successes

Having a clear vision about the reason and benefits for the transformative project

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Change Management activities include: – Change Readiness Assessment and Activity Planning– Communications– Training and Knowledge Transfer– Deployment Readiness

Change Management Delivers: a more effective implementation, reduced risk, and greater opportunities for success through individuals more likely to initiate and adopt the change, individuals exert greater effort and persistence, and display more cooperative behavior.

Change Management Activities

CGI OCM Methodology

21Source: IBM research “Making Change Work”

1. Align Executives: Executives align around the scope, nature, and magnitude of the change

2. Assess Change: Identify key issues regarding the organization’s readiness (motivation) and capability (capacity) for the change

3. Translate and Communicate: Change Leaders and field personnel plan communications and development solutions that increase both readiness and capability in each stakeholder group

4. Execute Plans: Execution of strategies is coordinated in a cohesive sequence to generate grass-roots involvement and support at the most crucial level of the organization: where the work is actually done

5. Evaluate: Change Leaders evaluate performance against the Success Model, learning where strengths were developed and weaknesses exposed

Leadership Alignment

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• Engage early, meaningfully, and continuously

• Align Globally

• Act LocallyLeaders who delegate the decision process to their subordinates had an 18% increase in success rates compared to those who consult with subordinates, then make decisions on their own.

Source: IBM research “Making Change Work”

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Change Management Plan

Analyze and summarize key findings from an organizational change readiness assessment and recommend Change Management activities that:

• Mitigate risks• Engage Leaders• Address employee concerns

Communication Best Practices

• Define a credible rationale for the transformation

• Define guiding principles to help make decisions at the lowest level

• Ask for rationale for reasons NOT to move to the desired future state, then use influence to persuade uses to move to the good of the whole

• Keep messages simple and easy to understand

• Confirm the organization has the necessary knowledge and skills to lead and adopt the change or train them

• Celebrate see tangible, short-term progress

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Gaining user input and providing the rationale for transformation decisions enhances people’s willingness to change

Engage the Organization

• Change Champions perform the following roles:

─ Assess the challenges facing State employees as changes occur

─ Communicate to State employees the goals, objectives, and key messages of the transition to a new environment

─ Connect people to information about technology deployments and functional process modifications

─ Build relationships to be effective conduits for continuous feedback from State employees

─ Coach and encourage colleagues and State employees on the process of change adoption

─ Exchange experience, knowledge, and lessons learned with senior leadership, employees, and others

Sponsors

& Agency Executives

Functional Leaders (CFOs, CIOs, Personnel

Directors)

Select Agency Liaison Managers, Functional Leads, Subject Matter

Experts

End Users

Change Sponsorship

Change Ownership

Questions?

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