change management tom etter and bin yu. change management most change efforts fail two thirds fail...
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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
8 Steps to Managing Change
1. Establish a Sense of Urgency2. Form a Powerful Guiding Coalition3. Create a Vision4. Communicate the Vision5. Empower Others to Act on the Vision6. Plan for and Create Short-Term Wins7. Consolidate Improvements and Produce
More Change8. Institutionalize New Approaches
1. Establish a Sense of Urgency
Exhibit Vulnerability in Organization Examine market and competitive
realities Identify and discuss crises, potential
crises, or major opportunities
1. 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
1. 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 ?
1. Establish a Sense of Urgency
When is the level of urgency high enough? When 75% of leadership honestly believes a
change is necessary.
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
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
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
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
3. Creating A Vision
Characteristics of an effective vision Imaginable Desirable Feasible Focused Flexible Communicable
3. Vision ExampleThe 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.
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
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
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
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
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
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
6. Planning for & Creating Short-Term Wins
Create and plan for visible performance improvements
Recognize and reward employees involved in the improvements
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
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.
Project vs. Change Management
Adopted from Prosci Research
Project Managemen
t
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).
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Change vs. Project Management
Change Management
Project Management
Current State
Transition Period
Future State
Existing:• Processes• Systems• Org Structure• Job Roles
New:• Processes• Systems• Org
Structure• Job Roles
ContinousImprovement
Person affected by existing:• Processes• Systems• Org Structure• Job Roles
Person successfully transitions / accepts new:• Processes• Systems• Org Structure• Job Roles
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Change Management Processes/ Tools
Provides situational awareness. Helps us “Get Ready”
•Output examples:•Change characteristic profile•Organizational attributes profile•CM Strategy•CM Team Structure•Sponsor assessment; roles
Create Plans, then execute them. Five “should’s”:
•Communication Plan•Sponsor Roadmap•Training Plan•Coaching Plan•Resistance Management Plan
Ensure the change is Sustained.
Output examples:•Reinforcement mechanisms•Compliance audit reports•Corrective action plans•Recognition approaches•Success celebrations•After action review
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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:
Level 1 Ad hoc or Absent Little or no CM applied People-dependent; no formal practices / plans
Highest rate of project failure, productivity
loss
Level 2 Isolated Projects Some elements of CM are applied in some individual projects
Many different tactics used inconsistently
Level 3 Multiple Projects Comprehensive approach for CM applied in multiple projects
Some examples of best practice are evident
Level 4 Organizational Standards
Organization-wide standards and methods are broadly deployed for
managing / leading change
Selection of common approach, which is
normally used by most areas of the firm
Level 5 Organizational Competency
CM competency is evident in all levels of the org and is part of the
org’s IP and competitive edge
Continuous process improvement in place
Highest probability and responsiveness
Tips for Successful Change Management
Involve staff from all
levels in the change
Constantly assess
strategies
Be conscious of ripple effects
Distinguish between
urgent and important
Show strong, united
leadership
Consider emotional
and behavioral
issues
Confront the brutal facts but keep the faith
From Barbara Johnson, PhD
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