cost effective change management

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Cost Effective Change Management

Thursday, June 16, 2011Mr. Shahnawaz khan

TrainerSEEKERS INTERNATIONAL

WWW.seekersintl.com

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What was advertised This session will discuss why change management needs to be a key

competency for people and organization, and will share some tips regarding how to improve the practice of change management in your work.

All of us desire to see improvement in our lives and in our society. In our workplaces, the pace of change is accelerating. This can often bring about major enhancements to our lives. Many changes, from email to cell phones, from employee empowerment to Lean Six Sigma, have altered our workplaces dramatically, and forever. Managing change, and managing it well, is becoming one of the most critical competencies for any organization.

This session has 2 dimensions

1. organizations wants to bring change to be more competitive and effective 2. The organization is SME and their sole purpose of bringing change is

safeguard expenses

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Today’s Discussion Let’s diagnose this Situation Do some introspection Discuss Some ideas – won’t necessarily have all of

the right answers And, develop action plans for ourselves to

move from thought to results

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Takeaways Key points you agree with Key points you don’t What are YOU going to do

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Let’s start!

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Food for Thought

Imagination is better then knowledge

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“Everyone thinks of changing the world, but no one thinks of changing himself.”

- Leo Tolstoy

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A question for you:

What is Change management?

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Change is the only constant thing Organizational change is the movement of an

organization from the existing plateau toward a desired future state in order to increase organizational efficiency and effectiveness (Cummings and Worley, 2005; George and

Jones, 2002).

The process, tools and techniques manage the people-side of change to achieve

the required business outcome

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Cost and Cost Effectiveness Cost is expense consumed to produce

RESULTAll costs are the result of some decision or activity

Cost is a function of the amount of resource consumed and the price per unit of the resource

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Change Revolves around 3 areas1.Change PEOPLE

Mentality Attitude / Behavior Expectation Perception Resistance

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My organization is good at managing the “people” side of change initiatives. ”

36%

20% 24%

8%2%

10%

0%

10%

20%

30%

40%

StonglyDisagree

Disagree Neutral Agree StronglyAgree

Don't Know& N/A

Almost 1/2 disagreed

Managing change: people

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Causes of resistance

Employees: 1. Not aware of the

business need for change

2. Lay-offs were announced or feared

3. Unsure if they had the skills needed for success in the future state

4. Comfort with the current state

5. Believed they were being asked to do more with less, or do more for the same pay

Managers: 1. Loss of power and

control 2. Overloaded with current

responsibilities 3. Lacked awareness of

the need for change 4. Lacked the required

skills 5. Fear, uncertainty and

doubt

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Techniques to reduce resistance 1. Communicate and educate your employees

the logic of change 2. Participation 3. Facilitation and support 4. Negotiation 5 Manipulation and Cooptation “using a threat

with no intentions just to get an advantage Buy off the leaders of resistance group by giving them a key role in change decision

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2.Change Structure Complexity Centralization Redesign How authority and responsibility is distributed

across the organization. Authority pattern in organization shows who reports whom and who is answerable and accountable to whom. Departmentation or task grouping, hierarchy layers, span of control and the extent of formalization (bureaucratic or participative one).

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3.Induction of Technology

Work process Methods Equipments

Technology is considered the engine of growth in today’s world. Perhaps the greatest challenge for contemporary organizations is the acquisition and integration of technology in its strategy, structure and process.

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WHY CHANGE Economic conditions change as they are

impacted by organizational failures, terrorist attacks, natural disasters, etc.

Consumer behavior changes, e.g., children use computers at a very early age

Suppliers fail as big customers force them to lower prices or as other changes impact them e.g., Mattel toys manufactured in China containing lead

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Employee unions strike as organizational leaders give themselves bigger bonuses salaries and ask for concessions from unions

Violence spills over from society to the work place and schools. Children and adults are injured and/or

Natural disasters occur throughout the world and individuals, organizations and nations try to respond to the impact of hurricanes, earthquakes, tornadoes, tsunamis, fires and floods

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Revised Objective/s Once objective revised the whole Scenario changed

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ProcessTransformation input to out put.For e.g. production process means conversion of raw material to finished goods. Total Quality Management (TQM) working with in the system

Business Process Restructuring (BPR) working on the system’. Similarly in context of organization there are other processes such as decision making, objective setting, communicating, controlling & coordinating

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Culture Values, beliefs and mind-set of a manager at work “Corporate

Culture” Cognitive style (thought process), Personality, Behavior Individualism - Collectivism Masculinity - Feminism Power Distance - Low or High Uncertainty Avoidance - Low or High Time orientation - Low or High Organization Politics Changes have political consequences Change disturbs power-distribution in organization Managers have interests & groupings Therefore power may enable or resist change.

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External Environment Social and cultural Issues

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Political Issues Political Impacts

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Government policies Monitory & Fiscal Policies

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Legal System Impacts

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Economical Condition Impact of Economy

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Consumer Behavior Impacts

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Globalization Impacts

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Types of Change Natural Evolutionary Change

Planned & Managed Change

Unplanned Revolutionary Change

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Food for Thought

The “changers” or the change agents may be “living” in the future state, while everyone else “the changees” are living in the present state

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Three Phases of Change: How people experience change

Current State

Transition State

Future State

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Current State Employees (including management and executives!)

generally prefer the current state, because that is where they live

Current State

Transition State

Future State

“better the devil you know is better than the devil you don’t”

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Future State The future state is unknown to the employee; will it be

better, or worse? This is where Project teams “live”

Current State

Transition State

Future State

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Transition State The transition state creates stress and anxiety

Current State

Transition State

Future State

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LOUD THINKING

Effective change management MUST be focused on helping individuals change

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Successful change addresses both the technical and the people side

Solution is designed, developed

and delivered effectively(Technical side)

Solution is embraced, adopted and utilized

effectively(People side)

= CHANGE SUCCESS

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Project management

Change management

Current Transition FutureCurrent Transition Future

Individual PEOPLE change, NOT organizations

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Individual change management it theCenterpiece of success

The secret to successful change lies beyond the visible and busy activities that surround change. Successful change, at its core, is rooted in something much simpler:

How to facilitate change with one person.

RAKDA

From ADKAR: a model for change by Jeff Hiatt

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Effective change management requires two perspectives

Individual perspective

How does one person makes a change successfully?

Organizational perspective What tools we** have

to help individuals make changes successfully?

** “we” means project leaders and team members, HR, OD, training, communications, managers, supervisors

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The focus of Change management is on helping individuals make their own personal transition

Organizational “The change” to how we

do business

IndividualCurrent Transition FutureCurrent Transition Future

How I do my job today

How I will do my job after the change is

implemented




From:

To:

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Individual change is a process

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The five building blocks of successful individual change

Awareness of the need for change

Desire to participate and support the change

Knowledge on how to change

Ability to implement required skills and behaviors

Reinforcement to sustain the change

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ADKAR

Awareness of the need for change (why). Desire to support and participate in the change

(our choice). Knowledge about how to change (the learning

process). Ability to implement the change (turning

knowledge into action). Reinforcement to sustain the change

(celebrating success).

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Employees have preferred sendersof change messages

0% 10% 20% 30% 40% 50% 60%

Other

CM team leader

CM team member

Project team leader

Project team member

The employee's supervisor

Department head

Senior manager

Executive manager

CEO/President

Percent of respondents

Personal messages

Business messages

Top-level executives and senior leaders when the message pertains to the business need for change and alignment of the change with the organization's overall direction.

Employees’ immediate supervisors for messages that pertain to the individual impact resulting from the change (discussing 'what's in it for me' with each employee).

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Communication checklist

Yes No Question:

Have you identified all of the different audiences you need to communicate with throughout the organization?

Have you identified who the ideal sender of communication messages will be?

Have you identified what are the most effective channels of communication?

Have you created mechanisms to enable two-way communication to take place?

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Not Everyone Changes at the Same Pace

Awareness Desire Knowledge Ability ReinforcementPerson B Awareness Desire Knowledge Ability ReinforcementPerson B

Awareness Desire Knowledge Ability ReinforcementPerson D Awareness Desire Knowledge Ability ReinforcementPerson D

Awareness Desire Knowledge Ability ReinforcementPerson C Awareness Desire Knowledge Ability ReinforcementPerson C

Awareness Desire Knowledge Ability ReinforcementPerson A

Awareness Desire Knowledge Ability ReinforcementPerson H Awareness Desire Knowledge Ability ReinforcementPerson H

Awareness Desire Knowledge Ability ReinforcementPerson G Awareness Desire Knowledge Ability ReinforcementPerson G

Awareness Desire Knowledge Ability ReinforcementPerson E Awareness Desire Knowledge Ability ReinforcementPerson E

Awareness Desire Knowledge Ability ReinforcementPerson I Awareness Desire Knowledge Ability ReinforcementPerson I

Person F Awareness Desire Knowledge Ability ReinforcementPerson F Awareness Desire Knowledge Ability ReinforcementPerson F Awareness Desire Knowledge Ability ReinforcementPerson F Awareness Desire Knowledge Ability Reinforcement

Address the needs of each INDIVIDUAL

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Employee A D K A R Notes/actions

A 4 5 2 2 4

B 4 1 4 3 4

2 2 3 3 4

D 5 1 4 2 3

Employee A D K A R Notes/actions

A 4 5 2 2 4

B 4 1 4 3 4

C 2 2 3 3 4

5 1 4 2 3

Recommendation:Create a Change Management Profile for Each Employee

Needs knowledge

Low desire

Questionable desire

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Some Key Change Management Tools

Communications

Sponsor Roadmap

Coaching

Training

Readiness / Resistance Mgt.

These channels enableEffective change management

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Mapping the tools to the personal change elements (ADKAR)

These channels enable project

team to facilitate organization

through phases of ADKAR.

Communications

Sponsor Roadmap

Coaching

Training

Awareness

Desire

Knowledge

Ability

Reinforcement

Awareness

Desire

Knowledge

Ability

Reinforcement


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Use the right tools, in right place

Communications

Sponsor Roadmap

Coaching

Training


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we need the right people involved and engaged in the right ways

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Middle managersand supervisors


Changemanagement resource/team


Executives andsenior managersExecutives andsenior managers

Project team

Project team

Projectsupport

functions

Projectsupport

functions

Change management requires a system of ‘doers’

Each ‘gear’ plays a specific role based

on how they are related to change

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Change management rolesRole Ideal implementationChange mgmt resource/team

“I develop the change management strategy and plans. I am an integral part of project success.”

Executives and senior managers

“I launch (authorize and fund) changes.”“I sponsor change.”

Middle managers and front-line supervisors

“I coach my direct reports through the changes that impact their day-to-day work.”

Project team“I manage the technical side of the change. I integrate change management into my project plans.”

Project support functions

“I support different activities of the change management team and project team.”

* Change management group, dept or office

“We own the change management methodology and support its implementation in the organization.”

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Current common reality that we need to move beyondRole Common implementationChange mgmt resource/team

“I feel like I’m on an island here – people expect me to do everything and have all the answers.”

Executives and senior managers

“I gave you funding and signed the charter – now go make it happen!”

Middle managers and front-line supervisors

“I feel like I’m the direct target for some of these changes, and I wish I knew what was going on.”

Project team “My focus is just the ‘technical’ side. Once I flip the switch, I’m moving on to the next project.”


“I get called in on projects and given one little task, but I’m not sure how I fit in to the overall picture.”

* Change management group, dept or office

“I don’t even exist yet.”

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Executives and senior mgrsWhat is their role

1. Participate actively and visibly throughout the project

2. Build a coalition of sponsorship and manage resistance

3. Communicate directly with employees

Not just signing checks and project charters!






Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Middle mgrs and supervisorsWhy are they important They are close to the people who adopt the change They play a role in all types of change in the organizationThey need to be trained to be successful

Executives and senior leadersExecutives and senior leaders

Front-line employeesFront-line employees

Middle managers and supervisors

Executives and senior leadersExecutives and senior leaders

Front-line employeesFront-line employees

Middle managers and supervisors

Macro – top-down changes

Micro – daily changes






Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Middle mgrs and supervisors What are their roles

Role 1 – Communicator Role 2 – Advocate Role 3 – Coach Role 4 – Liaison Role 5 – Resistance manager






Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Project teamWhy are they important

Drive the technical side of change Design solutions Develop solutions Deliver solutions

Project management

Change management







Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Project teamWhat is their role

1. Design the actual change 2. Manage the ‘technical side’ of the

change• Charter, business case, schedule, resources,

work breakdown structure, budget, etc.

3. Engage with CMgt team/resource 4. Integrate CMgt plans into project plan






Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Examples HR OD Training Communication SMEs

Bring specific experience, knowledge, tools and expertise to the project

Sometimes act as the

change mgmt resource Key pieces of the

‘technical’ and ‘people’ puzzles






Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Mapping change management roles

1. Authorize and fund 2. Participate actively

and visibly 3. Create coalition 4. Communicate directly

1. Design ‘the change’ 2. Manage ‘technical side’ 3. Engage with CM 4. Integrate CM

1. Communicator 2. Advocate 3. Coach 4. Liaison 5. Resistance manager

1. Experience 2. Knowledge 3. Tools 4. Expertise

1. Apply methodology 2. Formulate strategy 3. Develop plans 4. Support other ‘doers’






Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Change management resourceWhat is their role

Enable others…

Help managers and supervisors

Effectively coach their employees through transitions

Help execs and senior leaders

Effectively fulfill the role of ‘sponsor of change’

Help project teams

Make the bridge between implementing a solution and

realizing benefits






Project team

Project team

Projectsupport

functions

Projectsupport

functions






Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Employee-facing vs. enablingEmployee-facing roles Enabling roles

One-to-one interactionsOne-to-many interactionObservable behaviors

Creation and implementation of plans that are executed by the employee-facing roles






Project team

Project team

Projectsupport

functions

Projectsupport

functions






Project team

Project team

Projectsupport

functions

Projectsupport

functions

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Project team

Project team

Projectsupport

functions

Projectsupport

functions

Do you have the right people involved in the right way?

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How will you know if your change has been effective?

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“Begin with the end in mind.” -- Stephen R. Covey from “The Seven Habits of Highly Effective People”.

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… and, measure your progress accordingly …

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Two points of measurement:Organizational perspective

Outcome: Did the project deliver the

intended results? Process:

Was the project delivered on time and on budget?

Were milestones met along the way?


Organizational


Organizational

#s

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Two points of measurement:Individual perspective

Outcome: Are employees doing their

work the “new way” required by the project?

Process: How well did employees

make the transition? How well did we** support

that transition?


Individual


Individual

A D K A R

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Framework for measurement

Organizational Individual

Process

Speed of adoption Utilization rate Proficiency

Individual change management:

-Awareness-Desire

-Knowledge-Ability

-Reinforcement

Outcome Business performance against objectives

Individual performance for

each job role

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Framework for measurement

Organizational Individual

Process

Speed of adoption Utilization rate Proficiency

Measured by group, function, and or location

Individual change management:-Awareness

-Desire-Knowledge

-Ability-ReinforcementMeasure by assessment

Outcome

Business performance against objectives, such as:

Financial Performance Quality of product, service Quality of worklife Speed of implementation Etc.

Individual performance for each job role

Performance towards objectives, as defined in personal objectives

with immediate manager

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Revisited: Begin with end in mind. Measure the “right” things for this change, at the organizational level and the individual level

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

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“Everyone thinks of changing the world, but no one thinks of changing himself.”

- Leo Tolstoy

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Summary

cost effective change management

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