change management course - hem 2016

8/16/2019 Change Management Course - HEM 2016

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Change Management Course

HEM USINESS SCHOOL

2016

By Farid Yandouz , www.yandouz.com

Management & Transformation Consultant

About Farid Yandouz

16 years of professional experience

Change, Project & Innovation Management Consultant for several large corporations:BMCE / Salafin, Shell, Carrefour, Labelvie, Valmont, Valtech …

Founder of a consulting firm, iCompetences, with 135 clients in 25 countries (40% Banks20% Operators, 40% Infrastructures et public sector).

Previously,

North Africa Sales Manager, Intel Corporation

Project Manager, Nokia

Network Engineer, Mobistar BelgiumBusiness Development Manager for large consultancies in France and Morocco

Education

MSc Operational Management, Coventry University, United Kingodm

Ingénieur d'Etat, INPT, Rabat, Morocco.


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Agenda

! Common Language

! The oldest thought-provoking subject of humanity

! Change Dynamics

! What Employees think About Change?

! Resistance to change

! Exercise: Analysing Change Stakeholders

! How we get more engagement for change?

! Change Management 8 Phases

What is performance ?

Individual, Group, & Organisation

! Effectiveness

! Efficiency

! Relevance

! Responsiveness

Group

! Team Development: Norming, Storming, Performing

Organisation

! Synergies & Culture


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What is Strategic Planning ?

Strategy

! Corporate Strategy

! Business Strategy

Strategic Planning

! Where are we?

! Where should we go?

! How to get there?

What is Change Management ?

~Lisa M. Kudray& Brian H. Kleiner, “Global Trends in Managing

Change,” Industrial Management 1997

! Change management is the continuous process of aligning anorganization with its marketplace-and doing so more responsivelyand effectively than competitors.


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~Society for Human Resource Management, Change ManagementSurvey Report 2007

! Change management is the formal process for organizationalchange, including a systematic approach and application ofknowledge. Change management means defining and adoptingcorporate strategies, structures, procedures, and technologies todeal with change stemming from internal and external conditions.


~Lambeth Change Management Team, Change ManagementToolkit

! Change management is a critical part of any project that leads,manages, and enables people to accept new processes,technologies, systems structures, and values. It is the set of activitiesthat helps people transition from their present way of working tothe desired way of working.


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The oldest thought-provoking

subject of humanity

I Ching: The Book of Changes

! one of the most important books in the

world's literature

! Possessing a history of more than two and

a half millennia of commentary and

interpretation

! Appeared in 1000 BC

Key Quotes

! Before the beginning of great brilliance, there must be chaos.

Before a brilliant person begins something great, they must lookfoolish in the crowd. I CHING (1000 BC)

! There is nothing permanent except change. Heraclitus (500 BC)

! You could not step twice into the same river, Heraclitus (500 BC)

The oldest thought-provoking

subject of humanity


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Individual

! No Matter How Exciting the Change….Expect a Sense of Loss

! No Matter How Competent People Are….Expect a Sense ofConfusion and Ambiguity

! To varying degrees….Expect Resistance

! Expect the Loss and Ambiguity to Lead to a Deterioration of Trust and a Sense of Self-Preservation

Change Dynamics

Individual

! Communications Deteriorate

! Productivity Suffers

! Loss of Team Play – See Each Other as “The Competition”

! Power/Turf Struggles

! Morale Goes Down – Lose Commitment

!

Lose Good People

Change Dynamics:

What happens when change occurs?


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John Kotter, one of the most influential business thinkers

Over 40 years of research have shown that more than 70% of allmajor transformation efforts fail.

Why?

Because organizations do not take a consistent, holistic approachto changing themselves, nor do they engage their workforceseffectively

Change Problem

What Employees think About Change?


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IFOP Survey, 2010

! 68% of employees believe that change in necessary in the current

circumstances, but, with regards to the last project they experienced:

! For 51%, the information about the project and it execution were not

enough

! For 55%, delays are not sufficient, and the engagement of theirmanagers is not enough

!

For 61%, training was not sufficient! For 70%, lack consultation, their point of view was not taken into account


IPSOS – ESSEC Change Management Chair Survey, 2012

! 80% of employees consider that they are making efforts without

perceiving utility of projects

! 80% of employees think that information and communication are

not sufficient

! 80% are disappointed that there was not enough time dedicated to

brainstorming about the change


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Reasons Why Anxiety is High ?

Source: The Change Monster, Duck, Jeanie Daniel, Three Rivers

Press, 2001

! Mandate a change without explaining why it’s needed.

! Assume people understand the new “regime” and how to behave

differently (new skills are often required).

! Stay behind closed doors.

! Neglect to deal with your own anxiety.

Resistance to Change


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Key Examples:

It is the other’s fault / responsibility !

Self-interest instead of Common-interest

Employees too busy in their daily tasks /operations

Not looking at win-win tradeoffs & synergiesSocial Proof or Conformism vs. Status-Quo

Focus:Social Proof or Conformism vs. Status-Quo

~ THE ELEVATOR EXPERIENCE: Hidden Camera of Solomon Asch,American Sociologist from Harvard University, during the « Facethe Rear » show in 1962

! The reasons behind conformism?! Group attractiveness! Lack of information! Avoid conflicts!

Fear of sanctions / norm pressure


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Main reasons behind change resistance

!

Fear of the unknown/surprise:

! This type of resistance occurs mainly when change is implemented withoutwarning the affected stakeholders before the change occurs.

! Mistrust:

! If the manager has built up trust over a period of time, the team will bemore accepting of any changes.

! Loss of job security/control:

! This type of resistance often occurs when companies announce they will berestructuring or downsizing.

!

Bad timing:

! As the old saying goes, “Timing is everything”. Heaping too much change onemployees over a short period of time can cause resistance.

!

An individual’s predisposition toward change:

! Some people enjoy change because it provides them with an opportunity tolearn new things and grow personally and professionally.

Exercise: Resistance of Stakeholders

Company 1 / Group 1: Retailer

! Context: The marketing department of a bank decided, with thebacking of the Sales & Marketing VP, to implement a CRM Solution

Company 2 / Group 2: Bank

! Context: The marketing department of a bank decided, with thebacking of the Sales & Marketing VP, to launch a Contactless CardServices

! What are the key stakeholders ?

! What are they ‘eventual’ resistance or support ?


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Analysing Change Stakeholders

Change Management = Stakeholders Impact


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Cost of Resistance

Number of Resistant Stakeholders

Cost of Resistance

Exercise: Resistance of Stakeholders


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Stakeholder Matrix Based

on Importance vs Influence

Stakeholder Matrix Based

on Importance vs Influence


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What % of each Stakeholders Category ?

%% %


80%10% 10%


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80% of your Change Projects’ Stakeholders are undecided

Solution = Change Strategy

Change Diagnostic


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Change Management Mapping


Key questions to ask

! Business! Is the current strategy being modified, replaced or canceled ?! The corporate culture has to evolve significantly ?! Will new businesses be created ?! Will the enterprise introduce new technologies ?

! Organization!

Should the existing process be modified ?! Will the reporting and hierarchy be modified?! Will processes be reengineered (adding or cancelling)?! Are the current allocation of resources going to change?


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Key questions to ask

! Operations! Should procedures be updated?! Should the results evaluation tools be modified?! Will the communication between employees change?! Will the pace of activities change?

! Competences! Will the employees learn new business related / technical skills?!

Will they need to learn new management skills?! Will they need to learn new IT skills?! Do they need to learn new behavior ?



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How we get ‘more’ engagement?

Despair Valley:Moving Hostility to Engagement


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The Transition Model, Bridges William

Change is: an event

! It is situational and is external to us: Something old stops …

Something new begins

Think about the times you

ve moved…

! How long did it take for you to move your “stuff” from point A to

point B?

! How long did it take you to feel at home again in the new place?

What is the difference?

! Change is situational

! Transition is psychological


Source: Managing

Transitions: Making

the Most of

Change, Bridges,

William, Da Capo

Lifelong Books;

third edition, 2009


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The Three Phases of Transition

! The Ending

! Losing, Letting go…getting closure…saying goodbye

! All transitions start with endings

! The “Neutral Zone”

! Chaos, confusion, unsettled feelings, “in-between”

! Could also be experienced as freeing

! The New Beginning! A whole new chapter, Sense of renewal and often increased energy

! Fully moving on

NOTE: These are not linear “steps” and can overlap.

Change Management is About Transition

Tips for Getting through each Phase

! Acknowledge who is losing what

! Mark the ending

! Let people take a piece of the old way with them

! Set sort-term goals

! Strengthen intragroup activities

! Explain the purpose! Paint a picture

! Lay out a step-by-step plan

! Give each person a part


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Methods for Addressing Resistance

Kotter and Schlesinger (1979)

Methods for Addressing Resistance

Kotter and Schlesinger (1979)


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Why is Change Management ?

Change Management Strategy


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John Kotter 8 Phases Model

Phase 1: Create a Sense of Urgency

! What you can do:! Identify potential threats, and develop scenarios showing what

could happen in the future.

! Examine opportunities that should be, or could be, exploited.

! Start honest discussions, and give dynamic and convincing reasons

to get people talking and thinking.

!

Request support from customers, outside stakeholders and industrypeople to strengthen your argument.


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Phase 1: Create a Sense of Urgency

Companies

with engaged employees have

5X higher shareholder

returns

71% of theworkforce is actively

disengaged. Annually,

this costs U.S.

organizations

3 0 0

BILLION

! Your top leaders must describe an opportunity that will appeal toindividuals’ heads and hearts and use this statement to raise a

large, urgent army of volunteers.

Phase 2: Build a Guiding Coalition

What you can do:

! Identify the true leaders in your organization, as well as

your key stakeholders

! Ask for an emotional commitment from these key people.

Work on team building within your change coalition.

! Check your team for weak areas, and ensure that you have

a good mix of people from different departments anddifferent levels within your company.


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Phase 2: Build a Guiding Coalition

Real collaboration is about stepping

outside of traditional institutional

structures to focus on results. In fact,

there is an 81% correlation between

collaboration and innovation.

81%

! A volunteer army needs a coalition of effective people — comingfrom its own ranks — to guide it, coordinate it and communicate its

activities.

Phase 3: Form a Strategic Vision and Initiatives

! What you can do:! Determine the values that are central to the change.

! Develop a short summary (one or two sentences) that captures

what you "see" as the future of your organization.

! Create a strategy

! Plan to execute that vision.

! Ensure that your change coalition can describe the vision in fiveminutes or less.

! Practice your "vision speech" often.


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Phase 3: Form a Strategic Vision and Initiatives

! Dr. Kotter defines strategic initiatives as targeted and coordinated"activities that, if designed and executed fast enough and well

enough, will make your vision a reality."

higher return on several key

measures for companies with

well-crafted mission statements

describing why the business exists

and its optimal desired future state.

Business Week

attributes

30%

Phase 4: Communicate the Vision

! What you can do:! Talk often about your change vision.

! Address peoples' concerns and anxieties, openly and honestly.

! Apply your vision to all aspects of operations – from training to

performance reviews.

! Tie everything back to the vision.

! Lead by example.


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Phase 4: Communicate the Vision

! What you do with your vision after you create it will determine yoursuccess.

! Your message will probably have strong competition from otherday-to-day communications within the company, so you need to

communicate it frequently and powerfully, and embed it within

everything that you do.

Phase 5: Enable Action by Removing Barriers

! What you can do:

! Identify, or hire, change leaders whose main roles are to deliver

the change.

! Look at your organizational structure, job descriptions, and

performance and compensation systems to ensure they're in linewith your vision.

! Recognize and reward people for making change happen.

! Identify people who are resisting the change, and help them see

what's needed.

! Take action to quickly remove barriers (human or otherwise).


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Phase 5: Enable Action by Removing Barriers

! By removing barriers such as inefficient processes or hierarchies,leaders provide the freedom necessary for employees to work

across boundaries and create real impact.

“Innovation is less about

generating brand-new ideas

and more about knocking

down barriers to making those

ideas a reality.”

~John Kotter, Accelerate

44%

of leaders agree that their ownmanagement strategies are too

bureaucratic andare a nuisance

Phase 6: Generate Short-Term Wins

! What you can do:

! Look for sure-fire projects that you can implement without help

from any strong critics of the change.

! Don't choose early targets that are expensive.

! You want to be able to justify the investment in each project.

! Thoroughly analyze the potential pros and cons of your targets. If

you don't succeed with an early goal, it can hurt your entirechange initiative.

! Reward the people who help you meet the targets.


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! Wins are the molecules of results. They must be collected,categorized, and communicated — early and often — to track

progress and energize your volunteers to drive change.

It takes

about six years

of hard work to

become anovernight

success.

Seth Godin



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Phase 7: Build on Change

! Change leaders must adapt quickly in order to maintain theirspeed. Whether it's a new way of finding talent or removing

misaligned processes, they must determine what can be done —every day — to stay the course towards the vision.

Agile firms see a

in revenue when they employleaders who strategically adapt

to any situation.

37% increase

Phase 7: Sustain Acceleration

! What you can do:

! After every win, analyze what went right, and what needs

improving.

! Set goals to continue building on the momentum you've achieved.

! Learn about kaizen, the idea of continuous improvement.

! Keep ideas fresh by bringing in new change agents and leaders

for your change coalition.


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Phase 7: Sustain Acceleration

! Are you balancing change management with change

leadership?Management Leadership

• Planning

• Budgeting

• Organizing

• Staffing

• Problem Solving

•

Measuring • Doing What We

Know How To Do

• Producing

Dependable,

Reliable Results

• EstablishingDirection

• Aligning People

• Motivating

• Inspiring

•

Mobilizing Peopleto Achieve

AstonishingResults

• Propelling Us Into

The Future

Phase 8: Institute Change

! To ensure new behaviors are repeated over the long-term, it'simportant that you define and communicate the connections between

these behaviors and the organization's success.

When surveyed, 90% ofmanagers and employees said the

importance of agility and speed

has increased in the last 5 years.


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Phase 8: Anchor the Changes in Corporate Culture ! What you can do:! Talk about progress every chance you get. Tell success stories

about the change process, and repeat other stories that you hear.

! Include the change ideals and values when hiring and training

new staff.

! Publicly recognize key members of your original change coalition,

and make sure the rest of the staff – new and old – remembers

their contributions.! Create plans to replace key leaders of change as they move on.

This will help ensure that their legacy is not lost or forgotten.

change management course - hem 2016

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