Valerie McCloud-Dec.3

Report
Managing the People
Side of Change
Valerie S. McCloud, PMP, CSM, PMI-ACP
December 3, 2014
The IIEE
Approach
1
Presentation
Topics
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1
Making a Case for Change Management
2
Challenges of Change Management
3
The IIEE Approach to Managing Change
4
New Ways to Think About & Implement
Change
5
Resources to Adopt Change
2
Making a Case for Change Management
“It is not the strongest of the species that survives, nor the
most intelligent that survives. It is the one that is most
adaptable to change.” – Charles Darwin
“We now accept the fact that
learning is a lifelong process of
keeping abreast of change.
And the most pressing task is
to teach people how to learn.”
– Peter Drucker
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Making a Case for Change Management
What is change management?
Change management is a structured approach to transitioning
individuals, teams and organizations from a current state to a desired
future state.
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Making a Case for Change Management
The literature on “change management” is clear: Over 70% of change
initiatives fail.
• John Kotter’s 1995 published research - only 30% of change programs are
successful. In 2008, a McKinsey & Company survey – still 30% success rate.
• The IBM recently published a
report: Making change work…while the
work keeps changing – only the top 20%
of organizations were highly successful.
• Prosci's 16 years of research - projects are
six times more likely to meet objectives
when organizations manage the people
side of change effectively.
Myth: A great idea/solution + Effective project management = Project Success
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Making a Case for Change Management
Change Management as a discipline, has grown tremendously. A 2005
Benchmarking study - structured approach to managing change grew from 34% to
55%, and it has continued its growth.
Importance of managing change:
• More and frequent changes – Change happening at incredibly fast pace.
Organizations need better way to manage individuals impacted by many changes.
• Value system of empowerment – Old values of control and predictability given
way to new values that push decision-making, authority and responsibility down
into the organization.
• Competitive advantage – Information moves quickly and across the globe in
literally seconds! In coming years, speed and agility will be a central differentiator
in the marketplace.
Companies no longer have luxury of expecting day-to-day operations to fall into
static, predictable patterns interrupted only occasionally by short bursts of change.
Instead, constant change has become the new normal.
7
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Making a Case for Change Management
In Prosci's Best Practices in Change Management 2014 Edition benchmarking report - 9 top trends
expected over the next two years:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Greater awareness of the need for change management
Broader application of change management
Increased leadership support for change management
Greater effort to establish a Change Management Office (CMO) or
dedicated functional group
Increased use of methodologies, tools to manage the people side of
change
Greater emphasis on training, communications and reinforcement plans
Increased focus on impacted individuals
Recognition of the need for change portfolio management
More engagement and earlier integration with project management
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1
Making a Case for Change Management
Why Change Management?
When change is NOT managed…
When change is effectively managed…
•
•
•
•
•
•
•
•
•
•
•
•
Productivity declines – people more
concerned with change
Passive resistance festers; active
resistance emerges & sabotages efforts
Valued employees leave the organization
People confused about change and why
it’s happening
Increased absenteeism, use of sick days
People find work-arounds to avoid
implementing new way
Changes not fully implemented or
cancelled altogether
Divides created – ‘us’ vs. ‘them’
Sensitivity to change creating increased
resistance
Loss of goodwill; increased customer
dissatisfaction due to service
decline/delivery
Lack of confidence in management’s
capabilities and decisions
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•
•
•
vs
•
•
•
•
•
Employees have a solid understanding
of why change is happening
Employees engage in both the solution
and the change
Resistance decreases & is dealt with
earlier in the process
Leadership commitment, participation
and interaction will motivate employees
to support the process
Communications are segmented to
specific audiences answering questions
cared about most
Momentum is built throughout
organization
Changes are less painful
Increased probability of meeting
objectives
Once change is properly managed,
productivity will boom
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Making a Case for Change Management
The Nature of Change
Planned Change
Moving from one state to another using
a structured set of steps.
Emergent Change
Fluid and emerging; it’s all pervasive and
continuous. Naturally occurring.
• Organization’s environment known
• Facilitate one condition to another
• Need to be responsive and adaptive
• Change is constant
Implications for recognizing change from differing perspectives:
• Managing change is about managing a process, using
appropriate approaches based on the nature of the
change.
• Change models should be applied selectively, with
thought to best fit for context in which change is
occurring.
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Making a Case for Change Management
The more the word “change” grows in importance, the more that the
the desired future state includes enduring changes in human behavior
and attitudes.
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Making a Case for Change Management
IBM Institute of Business Value: Making change work…while the
work keeps changing: How Change Architects lead and manage
organizational change - 2014
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12
Making a Case for Change Management
IBM Institute of Business Value: Making change work…while the
work keeps changing: How Change Architects lead and manage
organizational change - 2014
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Challenges of Change Management
“We have to change
because…and look at all
the benefits we’ll achieve!”
Two Views of Change:
Organizational Change Management
• From top looking down into the organization
Senders
Business issues and need to change
“I may not have a job. The
company’s in trouble!
What’s happening to me…?”
Receivers
Personal implications and risk
Individual Change Management
• Perspective of change from the employees
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Challenges of Change Management
3 major reasons why change fails:
1. The gap between the strategic vision and
implementation;
1. The "hidden and built in resistance to change" from
organizational cultures;
1. Failure to take full account of the impact of the changes
on those people who are most affected by them.
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Challenges of Change Management
More reasons why change initiatives fail:
• PERCEPTION: Solution offered doesn't resonate with people
• MANAGMENT: Program doesn't have the support of top management or,
conversely, the program is top-down, packaged program
• ENGAGEMENT: People not adequately engaged in the organization
• COMMUNICATION: Lack of communication
• REALITY: The solution doesn't address the “real” problems
• FEAR: A culture of trust is not fostered, so fear persists
• RESOURCES: Not properly resourced with time, money, and/or people
• TRAINING: Not provided or is inadequate
• RESISTANCE: Change initiative is resisted by managers, supervisors, others
• EFFICACY: The program doesn't work
• SUSTAINABILITY: Innovation works, but organization cannot figure out how to
implement and sustain it as an organizational change
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Challenges of Change Management
Losses
New Vision
Confusion
The “Gap”
•
•
•
•
Defines who we are, our
success
Is comfortable
Is predictable
Personal and professional
plans based on
•
•
•
•
•
“Grey space”
“No man’s land”
“In limbo”
“Between two
trapezes”
“Nothing to hold on to”
•
•
•
•
•
Not fully defined
Lots of uncertainty
Starting something new
Is worrisome
May not match personal
and professional goals
According to Bridges, people don’t have trouble with change – they have trouble
18
with transition.
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Challenges of Change Management
“It’s not so much that we’re afraid of change or so in love with
the old ways, but it’s that place in between that we fear… It’s
like being between trapezes. It’s Linus when his blanket is in
the dryer. There’s nothing to hold on to.” - Marilyn Ferguson
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Challenges of Change Management
Understanding Resistance
We react to change based on our view of the current state and the future state.
• Our analytical reaction is based in the future state.
• Our emotional reaction is rooted in the current state.
Supportive of the current
state: has time and
energy invested in how
things are done today
Supportive
or
comfortable
with current
state
Dissatisfied, or
opposed to the
current state
Neutral or
objective
toward the
current
state
Is neutral toward the current
state: Is new to the organization
or is indifferent to how things
are done today
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Opposed to the current
state: is dissatisfied
with the way things are
done today
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Challenges of Change Management
Understanding Resistance
Personal Context
Organizational Context
Positive and negative factors are
evaluated by employees:
These positive and negative motivating
factors also evaluated:
• Employee’s personal and family
situation (health, finances, stability,
mobility, relationships, etc.)
• Organization’s history with change
(past change successes or failures,
likelihood of change actually
happening, consequences for
employees that have resisted change
in the past)
• Employee’s professional career
history and plans (success vs.
failure, promotions, aspirations,
pending retirement, etc.)
• Degree that the change will affect
them personally (some large
changes may have minimal impact
and vice versa)
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• Organization’s values and culture
(how the organization treats
employees and how employees treat
each other)
• Degree of trust that exists between
managers and employees
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Challenges of Change Management
Reasons for Resistance
Employees:
• Lack of awareness of why change is
needed
• Uncertainty (creating stress…fear)
• Impact on current job role
• Lack of visible support and commitment
from managers, leaders
• Fear of job loss
• Organization’s past performance with
change
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Managers:
• Lack of awareness about and
involvement in the change
• Loss of control or negative impact on job
role
• Increased work load (lack of time)
• Culture of change resistance and past
failures
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Challenges of Change Management
Change Concepts
• Resistance is a natural human reaction to change.
• You should expect resistance and not be surprised by it.
• Resistance should not be considered as initially “bad”.
• Resistance may be leveraged.
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Challenges of Change Management
Stage 3: Chaos
Group enters the unknown. Old
expectations no longer be valid; old
reactions may cease to be effective; and
old behaviors may not be possible.
Satir Change Model
Stage 4: Integration
Members discover a transforming idea that
shows how the foreign element can
benefit them.
Stage 1: Late Status Quo
Stage 2: Resistance
Stage 5: New Status Quo
Group at familiar place. Members
know what to expect, how to
react, and how to behave.
Group confronts a foreign
element (that threatens
stability). Resistance by denying
its validity, avoiding the issue,
or blaming someone for
causing the problem.
If the change is well conceived and
assimilated, the group and its environment
are in better accord and performance
stabilizes at a higher level than in the Late
Status Quo.
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Challenges of Change Management
Emotional Stages of Change
• People move through the emotional
stages of change at different rates.
• When people are in denial, or are
angry or resistant, productivity will be
low.
• Design and plan
strategy to
recognize and
support the
transition phase
and gain
commitment.
Commitment
Reluctant acceptance
Anger and blame
Disbelief and denial
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Change Management Methodologies
• George Box, a statistician, famously wrote that "essentially, all models are wrong,
but some are useful” . The field of change management continues to prove him
right.
• Organizational change management (OCM) is a structured approach to ensure that
changes are smoothly and successfully implemented, and that the lasting benefits
of change are achieved. That is easier said than done.
• Management consultants, clinical psychologists and social scientists have done
extensive research on the dynamics of change and proposed models and
frameworks to understand the same.
• Following is a comparison of five popular
models.
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Kotter’s Eights Steps to Change
John Kotter’s (1996) - highlighted eight key
lessons which he converted into a practical
eight-step model.
Establish a
Sense of
Urgency
Form a powerful,
guiding coalition
Develop a vision
& strategy
Communicate
the vision
Remove
obstacles &
empower action
Plan and create
short-term wins
Consolidate
gains
Anchor in the
culture
1.
2.
3.
Benefits
Focus on buy-in of employees as
the focus for success
Clear steps which can give
guidance for the process
Fits well into the culture of
classical hierarchies
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1.
2.
Limitations
Top-down approach, it gives no
room for co-creation or other
forms of true participation
Can lead to frustrations among
employees if the stages of
grief and individual needs are not
considered
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Prosci’s ADKAR Model
Developed in 1998 by Prosci. ADKAR is a
goal-oriented change management model
that allows change management teams to
focus their activities on specific business
results.
1.
2.
1.
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Benefits
It covers the organizational
dimension of change and the
individual dimension of change
Provides a clear management
checklist to manage change
Limitations
Ignores the need for leadership to
address the emotional dimension
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Roger’s Technology Adoption Curve
Based on Everett Roger’s theory of
diffusion of innovation (1962), describes
the adoption or acceptance of a new
product or innovation, according to the
demographic
and
psychological
characteristics of defined adopter groups.
1.
2.
Benefits
Helps in creating an understanding
of the audience for change.
Provides inputs to identify opinion
makers and influencers.
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1.
2.
Limitations
People need not fall into one Change Adoption
Category; they drift from category to category
depending on the specific change/innovation.
The adoption terms are accurate only in
hindsight; they tell you nothing about how a
population
might
respond
to
a
change/innovation.
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Bridge’s Transition Model
Bridges (1991) - differentiates between change and
transition. Change is situational and happens without
people transitioning and transition is psychological
and is a three phase process where people
gradually accept the details of the new situation.
ENDING
End what ‘used to be’;
identify who is losing
what, openly acknowledge
the loss, mark the endings
and continuously repeat
information about what is
changing and why.
1.
NEUTRAL ZONE
Individuals within the
organization feel
disoriented with falling
motivation and increasing
anxiety. Ensure that
people recognize the
neutral zone and treat it
as part of the
organization's change
process.
Benefits
You can use the model to
understand how people feel as you
guide them through change. It
clarifies the psychological effect of
change.
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NEW BEGINNING
Gain acceptance of the
purpose; Communicate a
picture of how the new
organization will look and
feel ; Communicate and
gain a step-by-step
understanding of how the
organization will change
1.
Limitations
While the model is useful for
implementing change, it's not a
substitute for other change
management approaches. It can’t
be used as an independent change
management model.
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McKinsey 7S Model
Tom Peters and Robert Waterman (early 1980s) seven internal, interdependent aspects of an
organization that need to be aligned if it is to be
successful.
The company's structure, strategy, systems, style,
staff and skills all stem from why the organization
was originally created, and what it stands for. As
the values change, so do all the other elements.
1.
2.
3.
4.
Benefits
Effective method to diagnose and
understand organization
Provides guidance in
organizational change
Combines rational and emotion
components
All parts are integral and must be
addressed in unified manner
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1.
2.
3.
Limitations
When one part changes, they all
change because they are all
interrelated
The model is complex
Can lead to higher incidence of
failure due to complexity
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The IIEE Approach to Managing Change
Change Readiness
“Creating readiness involves proactive attempts by a
change agent to influence the beliefs, attitudes, intentions
and, ultimately, the behavior of a change target.
At its core, the creation of readiness for change involves
changing individual cognitions across a set of
employees…it is a precursor to either resistance or
support for change.”
- Achilles A Armenakis, Stanley G. Harris and Kevin W. Mossholder, Chapter 28, Organizational
Development and Transformation
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The IIEE Approach to Managing Change
Questions to Ask Before Change
• What do we need to achieve?
• Why? How? When?
• Who will be affected?
• How will they react?
• How do we support them?
• Do we have the resources to manage the change?
• How do we communicate the change and get buy-in?
• How do we deal with resistance?
• What part of the change do we need help with?
• How do we know what success is and how will we measure it?
• After the change, what next?
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IIEE Approach to Managing People Side of Change
Identify
Empower
IIEE
Approach
Involve
Engage
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IIEE Approach to Managing People Side of Change
Identify
Stakeholders are people who have some form of interest in the change,
whether they are the targets of the change, managers or other
interested parties.
A lack of stakeholder management is one of the key reasons why change
projects fail, so understanding them and ensuring they are addressed in
all plans and activities is a critical activity.
It is important to manage stakeholders in change. In doing so, one of the
things you will do is segment them according to their needs, their
importance and how you will treat them.
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IIEE Approach to Managing People Side of Change
Types of Stakeholder
Sponsors
People with power who have a direct interest in the
project.
Targets
People who will intentionally be affected by the change.
Others
Other people who may be unintentionally affected by the
change, e.g., process change impacts everyone connected
with its inputs & outputs.
Partners
Internal and external partners you work with to effect the
change, from the IT Department to external consultants
and trainers.
Interested
Party
People who might have some more distant interest, e.g.,
if there are going to be job losses, then government and
the media may have an interest.
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IIEE Approach to Managing People Side of Change
Researching Stakeholders
An important part of making change successful is to understand the stakeholders, who
can range from a janitor at the bottom of the tree to a CEO of a multinational
company. Here are a few ways you can find out more about these people.
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One-onone
interviews
Surveys
Focus
Groups
Things
others say
about
them…
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IIEE Approach to Managing People Side of Change
This Influence/Interest Grid is a useful map to help understand the need for
communication and potential resistance to change.
High
Keep
Satisfied
Actively
Engage
Low
Influence
'Interest' indicates their likely concern about change, whilst 'Influence' indicates their
ability to resist or champion the change.
Occasionally
Contact
Keep
Informed
High
Low
Interest
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IIEE Approach to Managing People Side of Change
Stakeholder Power
Stakeholders all have power, whether it is the formal power invested in a position
of authority or it is social power of being able to persuade others to support or
oppose the change.
Those with higher power are likely to be your most useful supporters or most
dangerous opponents -- thus stakeholder analysis helps you prioritize your focus
on stakeholders and map out strategy to influence.
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IIEE Approach to Managing People Side of Change
Involve
Involving employees and managers means
communicating – messaging and relating.
What employees want to know about about the
change initiative.
•
•
•
•
•
•
How will I be impacted?
Why is the change happening?
What is changing?
How does it impact the organization? And what I do?
How can I prepare for the change?
How will I be supported during the change and beyond?
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IIEE Approach to Managing People Side of Change
Communication
• Communicate,
Communicate,
Communicate
• Most change processes
are under-communicated
by a factor of ten
• Many media/channels,
same message
• Many spokespersons,
same message
• Many formulations, same
message
• Relate: To form a new
emotional relationship
with a person or group
• Repeat: How the new
relationship helps you
learn and practice and
master new habits and
skills
• Reframe: Learn new ways
of thinking about the
specific change situation
Be sure to provide employees ways to give feedback and ask questions.
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IIEE Approach to Managing People Side of Change
Target Frontline Supervisors for Message Delivery
• 83% of employees rank their supervisor as their most believed
source. – U.S.: General Motors
• 96% of frontline employees believe their supervisor is normally or
always telling the truth. – Australia: Dennis Taylor
• Employees say their immediate boss is their most effective
communication source. – Europe: International Research
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IIEE Approach to Managing People Side of Change
Engage
Employee Needs for Engagement
When you are working to engage employees and encourage
participation, you must begin building Awareness of the need for change
so your employees are in the right place to engage and participate.
1. Make a clear and compelling case for the need for change
2. Create deliberate opportunities for employees to engage in the
change, early and often
3. Define and measure engagement and adoption
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IIEE Approach to Managing People Side of Change
Employee Needs for Engagement
1) Control (involvement and empowerment),
2) Career (understanding of one’s path),
3) Capability (training and development)—are important
Employees undergoing change appear to have significantly more
need for a fourth ingredient, connection:
Connection with leaders—Employees want more two-way
dialogue with organizational leaders
Connection with co-workers—Employees need to see their coworkers pulling together, providing reliable support and making
personal sacrifices during uncertain times
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IIEE Approach to Managing People Side of Change
Levels of Engagement
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IIEE Approach to Managing People Side of Change
Six Actions to Create More Engagement
1. Communicating a clear vision of the future
2. Building trust in the organization
3. Involving employees in decisions that affect them
4. Demonstrating commitment to the company’s values
5. Being seen to respond to feedback
6. Demonstrating genuine commitment to employees’ well
being
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IIEE Approach to Managing People Side of Change
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IIEE Approach to Managing People Side of Change
Empower
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IIEE Approach to Managing People Side of Change
Barriers to Empowerment
Formal structures
make it difficult to act
Bosses discourage
actions aimed at
implementing the
new vision
Employees understand
the vision and want to
make it a reality, but are
boxed in
A lack of needed skills
undermines action
Personnel and
information systems
make it difficult to act
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IIEE Approach to Managing People Side of Change
Empowered employees are change-ready employees
Apply these strategies and guidelines to empower your employees:
•
•
•
•
•
•
•
•
•
Encourage and demonstrate innovative thinking
Show respect for others’ perspectives and ideas
Delegate; don’t micromanage
Extend trust and assume that others have the company’s best interests at
heart and genuinely want to help
Be flexible, and encourage flexibility in others
Demonstrate and encourage risk-taking, and look for lessons learned
Accept change yourself
Invite people to participate in change development and implementation
Track and report progress on change initiatives
Empower employees to take responsibility for adapting to change!
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New Ways to Think About & Implement Change
Discontinuous versus Continuous Incremental Change
“We are moving from episodic to continuous change. With this shift, urgency will move from
being an important issue every few years to being a powerful asset all the time.” - Kotter
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New Ways to Think About & Implement Change
Connecting Change Management to Project/Organizational
Outcomes
The Prosci ROI of Change Management Model presents three people side
factors that impact the return a project or initiative delivers:
Speed of adoption - how quickly employees adopt a change
Ultimate utilization - how many employees eventually adopt the change
to how they do their jobs
Proficiency - how effective employees are once they've adopted the
change
An alternative view…
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New Ways to Think About & Implement Change
Lean & Agile Applied to Change Management
• Combining a collection of lean and agile practices to more effectively manage
organizational change that is relevant in today’s fast-paced, digital work.
Includes:
• “Lean Coffee”
• Creating and Using
Information Radiators
• Culture Hacking
• Agile Retrospectives
• Lewin’s Force Field
Analysis
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New Ways to Think About & Implement Change
Enterprise Change Management
Below are some of the most cited activities for deploying change
management across the organization (in rank order):
1
Train people in the organization
2
Create a change management group
3
Integrate change management with project
management
4
Select a common approach for the organization
5
Assign change management resources to projects
6
Implement measurement mechanisms
7
Initiate change management at project launch
8
Mandate the use of change management
9
Enlist senior leadership support
10
Attach change management to particular projects
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Resources
• Harvard Business Review Magazine – Winter 2014: Leading Change: What
Works & What Doesn’t
• Change Management: The People Side of Change – Jeffrey Hiatt & Timothy
Creasy, 2013
• Change Management: The New Way : Easy To Understand; Powerful To Use –
Dutch Holland, PhD
• Making Sense of Change Management: A Complete Guide to the Models Tools
and Techniques of Organizational Change... - Esther Cameron and Mike Green
• Prosci Benchmarking Report & Online Tutorials
• Leading Change – John P. Kotter, 1996
• Influencer: The New Science of Leading Change – Joseph Grenny, Kerry
Patterson, David Maxfield, Ron McMillan, Al Switzler, 2013
• IBM’s Report: Making change work…while the work keeps changing: How
Change Architects lead and manage organizational change – September 2014
• Lean Change Management – Jason Little, 2014
• ADKAR: A Model for Change in Business, Government and Our Community –
Jeffrey Hiatt, 2006
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THANK YOU
Valerie McCloud, PMP, CSM, PMI-ACP
President, Emergent Change Agent
Foxfire Consulting, LLC
www.foxfireconsulting.net
804.240.0148
Connect with me on LinkedIn!
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The Process of Transition
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