Understanding implementing change-rev-2-part-1

UNDERSTANDING & IMPLEMENTING STRATEGIC UNDERSTANDING & IMPLEMENTING STRATEGIC CHANGE (Part-1)CHANGE (Part-1)

AA Simple & Complete Basic Overview of What Change Is? Simple & Complete Basic Overview of What Change Is? TIPS On Implementing Long-Term Sustainable ChangeTIPS On Implementing Long-Term Sustainable Change

Rich Fierson Human Capital-ROI OCM ConsultingRich Fierson Human Capital-ROI OCM Consulting21

AGENDAAGENDA

1.1. The Elements of ChangeThe Elements of Change2.2. Why Do “We” Make Change Harder Then It IS?Why Do “We” Make Change Harder Then It IS?3.3. The Reality of Change The Reality of Change 4.4. The Reasons & Drivers For Strategic ChangeThe Reasons & Drivers For Strategic Change5.5. Understanding the Psychology of ChangeUnderstanding the Psychology of Change6.6. Why Change Is Really Hard T0 Do - Why Change Is Really Hard T0 Do - RIGHT!RIGHT!7.7. The 10 Change Success Secrets Nobody Tells YouThe 10 Change Success Secrets Nobody Tells You8.8. A Sample of The Prosci/ADKAR Approach (The Next A Sample of The Prosci/ADKAR Approach (The Next

Presentation)Presentation)

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Change Management –My Change Management –My Definition Definition ll • Change management is the Transitioning a

person, group, or company from a Current State, to a desired Future State, Meeting and, Or Exceeding desired Outcomes, and the implementation of Long-Term Structured Processes & Behaviors for the Adoption of Adoption of ChangeChange

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Prosci-Group

Change Management –My Change Management –My Definition Definition ll

• Change management is the Transitioning of a person, group, or company from a Current State, to a desired Future State, by implementing Long-Term Structured Processes, and Behaviors for the Adoption Adoption of Change, of Change, to Meet and Exceed the to Meet and Exceed the Desired Outcomes forDesired Outcomes for

the Change Initiation the Change Initiation

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Rich Fierson

Change Management – My Change Management – My Definition Definition ll

Change management enables employees

to adopt to a change so that Business

Objectives are realized.

It’s the bridge between solutions and

results, and is fundamentally about people

and our collective role of transforming

change into successful outcomes for our

organizations5

Change Management BasicsChange Management Basics

• The person, or group must be able to: “CARE, CARE, EMBRACE, and ADOPT” ” the new Future State behaviors, processes and Solutions

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Change Management BasicsChange Management Basics

• Change Management provides an organizational framework that enables individuals to adopt new values, skills and behaviors so that business results are achieved!

• Change Management is about engaging the PASSIONPASSION and the ENERGYENERGY of employees around a common and Shared Vision, so that the change becomes an integral part of their work and behavior.

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Change is About Business ResultsChange is About Business Results

1. Business ResultsBusiness Results and managing the People Side of Change are inseparable. That is why change management is more then simply communicating, changing a few processes, even training.

2. Change Management enables organizations to respond to changing market conditions so they can adapt, grow and be profitable

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Change is About Business ResultsChange is About Business Results

3. Change Management enables business results to be realized from the change initiatives you have designed for the organization.

4. It is the connection between business outcomes and change management that resonates the loudest with business leaders and executives

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Prosci – ADKAR Change MethodProsci – ADKAR Change Method

The ADKAR Model captures how a single person or group goes through change. AWARNESS: includes the nature of the Change, & “WHY” “WHY” the change is happening.

DESIRE: is that personal choice to embrace the change and Commit to moving forward.

KNOWLEDGE: includes education & training on the “HOW” “HOW” to change effectively.

ABILITY: is the demonstrated proficiency with new tools, processes and job roles such that the desired outcomes of the change are achieved.

REINFORCEMENT: includes reward, recognition, compensation or other performance management activities that sustain the change for that person

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WHAT ARE THE ELEMENTS OFWHAT ARE THE ELEMENTS OFCHANGE MANAGEMENT?CHANGE MANAGEMENT?

Change ManagementChange Management Project ManagementProject Management

Leadership ManagementLeadership Management

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The Prosci-ADKAR Phases ofThe Prosci-ADKAR Phases ofChange Management?Change Management?

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Phase1 – Preparing for Change

Define Your Change Management Strategy

Prepare Your Change Management Team

Develop your Sponsorship Management Model

PHASE 1

The Prosci-ADKAR Phases ofThe Prosci-ADKAR Phases ofChange ManagementChange Management

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Phase 2 – Managing Change

Develop Change Management Plans

Take Action and Implement Plans

PHASE 2

The Prosci-ADKAR Phases ofThe Prosci-ADKAR Phases ofChange ManagementChange Management

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Phase 3 – Reinforcing Change

Collect and AnalyzeFeedback

Diagnose Gaps & ManageResistance

Implement Corrective ActionsAnd Celebrate Successes

PHASE 3

The Five Critical Tenets of the Prosci Change Process

1. People Change For a Reason! = # 1

2. Organizational Change Requires Requires Individual Change

3. Organizational Outcomes are the CCollective

Results of Individual Change

4. Change Management is the EnablingEnabling

Framework for Managing the People Side

of Change

5. We Apply Change Management to Realize the

Benefits and Benefits and Desired Outcomes of ChangDesired Outcomes of Changee15

From the Prosci Group

The Five Critical Tenets of the Prosci Change Application

1. Jeff Hiatt and the Prosci Groups ADKAR is absolutely right on target, with the exception of one element.

2. Prosci 1st Tenet is “People Need a Reason to Change. TO accomplish this you first must start with

Fist You Must “Ask The Right Questions”

16QQ

QQ

QQ

QQ

QQ

QQ

QQ

QQ

QQ

We Change for a We Change for a Reason…Reason…• Every individual has an intrinsic need to accept and

acknowledge the benefits of a change (What’s in it for me?, What’s in for: my team, or my group)?

• In order to fully support it. However, cultural factors influence whether the inquiry is approached from a collective or individualistic perspective. Some value systems focus on “What in for “us”; while others take great stock in “what’s in it for “me” as an individual.

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THE 3 FORMS OF CHANGETHE 3 FORMS OF CHANGE

• DevelopmentalDevelopmental - Change that occur on a scale of small • TransitionalTransitional - Changes to existing processes, with a desire to find ways of

working to large scale

• TransformationalTransformational - Changes e.g. merger, ERP implementation

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What Is PESTLE Important?

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PP EE SS TT

LL

EELL

• PPEESSTTLLEE• PPoliticalolitical

• EEconomicconomic

• SSociologicalociological

• TTechnicalechnical

• LLegalegal

• EEnvironmental &nvironmental & EEfficiencyfficiency

We Change For A Reason

• Change Management EnablesEnables employees to ADOPADOPTT to a Change so that business objectives are RealizedRealized

• Change is the Bridge between Solutions and Results

• Change Management is fundamentally between about People and our Collective role of Transforming change into Successful Business Outcomes for the Organization!

• We Change For A ReasonWe Change For A Reason. As Simple as this sounds, an underlying principal for managing change is that a Future State can be Envisioned, that is different from the Current State of today, and we are changing to the Future State to achieve a group of specific Outcomes

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From slide 4

We Change For A Reason

• New Technology

• Stakeholder Input

• Strategic plans

• Internal performance

• Market and economic shifts

• Customer input

• Competitive threats

• New technologies

• Regulation/legislation

• Demands to do more with less

• Increasing Productivity through

Technology to Enhance & Maximize

the Customers Experience

• Do More with less/or development

• Costs lower

• Revenues higher

• Market share larger

• Errors fewer

• Efficiency greater

• Customers more satisfied

• Risk exposure less

CHANGE DRIVERS: CHANGE GOALS:

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REASONS…REASONS…

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We Change for Reasons!Reasons!

Issues & OpportunitiesIssues & Opportunities

Internal Performance

Financial Results

Strategic Planning

Employee Input

Customer InputNew Technologies

Regulation/Legislation

Economic Conditions

Market Shifts Competitive Threats

Demands To Do More With Less

Stakeholder Input

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We Change for Multiple & We Change for Multiple & Individual ReasonsIndividual Reasons

• The previous slide said there are MANY REASONS. However I underlined 3

• WHY?WHY?

• Because whatever the reason, there is Because whatever the reason, there is One ConstantOne Constant!! !!

• The 3 Groups that will always need to The 3 Groups that will always need to be involved be involved Why?Why?

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The 3 Drivers Of ChangeThe 3 Drivers Of Change

• There are many drivers of change on both an internal and external level.

• Once defined, the change vision will need to ensure that three groups are considered:

• Customers,

• Stakeholders

• Employees

=

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The 3 Critical Key DriversThe 3 Critical Key Drivers

CUSTOMERSSTAKEHOLDERS

EMPLOYEES26

Understanding the Psychology of ChangeUnderstanding the Psychology of Change

• It is helpful to understand the psychology of change when planning a change effort, it helps to explain why people think and act as they do why people think and act as they do when faced with a change?when faced with a change?

• When aiming to transform the attitudesto transform the attitudes and behavior of employeesbehavior of employees, a foundational knowledge of this topic will prove beneficial to the leadership and project team responsible for delivering the change.

• In order to succeed in changing mind-sets and behaviors, let's consider the three most importantthe three most important elements in changing behaviorelements in changing behavior:

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THE 3 Most Important Elements To Changing Behavior:

• Readiness to change - Do employees have the resources and knowledge to successfully make a lasting changemake a lasting change??

• Barriers & resistance to change - Is there anything preventing employees from changing, or making them resist?

• Expect relapse - What might trigger a return to the previous state behavior? 28

The Basis of Change101The Basis of Change101• Resistance to change is the largest obstacle that leaders

are faced with when initiating a change effort. It can be very damaging to the process and can potentially stall the efforts to move forward if not addressed appropriately.

• There are many reasons why an employee may resist change and so as "leaders of change", you will need to be sensitive to how individuals respond while keeping in mind that the process of commitment and acceptance takes time.

• It also takes A “Structured ApproachStructured Approach” Without this Structured ApproachStructured Approach you will be part of the 70% that not only Fail, But end up in worst shape then when you But end up in worst shape then when you startedstarted

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The Basis of Change101The Basis of Change101

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When we see Change

Here is the Change Vision We first see

04/07/23 31

The Real Change Is Represented Under The Real Change Is Represented Under the View of Most Peoplethe View of Most People

This is why the Elements of Resistance This is why the Elements of Resistance Begin to Show as the Project Moves Begin to Show as the Project Moves

ForwardForward

The Real Change Is Represented Under The Real Change Is Represented Under the View of Most Peoplethe View of Most People

This is why the Elements of Resistance This is why the Elements of Resistance Begin to Show as the Project Moves Begin to Show as the Project Moves

ForwardForward

SS-TITANIC

The Elements That will Impact Change AdoptionThe Elements That will Impact Change Adoption

ChangeChangeConceptsConcepts

Senders Senders & &

ReceiversReceivers

ResistanceResistance&&

ComfortComfort

Authority Authority ForFor

ChangeChange

Value Value SystemsSystems

Incremental Incremental vs.vs.

RadicalRadicalChangeChange

The Right The Right Answer is Answer is

Not Not EnoughEnough

ChangeChange Is aIs a

ProcessProcess

• The Focus of thisChart represents the

key concepts that impact the effective application of change management & the 5

Tenets

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3

4

5

6

7

32Prosci Group

WHY CHANGE IS REALLY HARD TO DO RIGHT! Or

Why is it SO Hard for People to Want to Change?

• Dr. Elisabeth Kübler-Ross, wrote a famous book. Does anyone Know the Name? Or the Subject Matter?

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Why Change Is Really Hard To Do Right!

• The ANSWER IS?The ANSWER IS?• “On Death and DyingOn Death and Dying””• In which she named the 5 stages of Grief• In Change I Believe That is The Same

For People Going Through A Forced • Transition…Think About ItTransition…Think About It!

1. Denial2. Anger3. Bargaining4. Depression5. Acceptance

THE PSYCHOLOGY OF THE THE PSYCHOLOGY OF THE AVERAGE PERSON GOING AVERAGE PERSON GOING

THROUGH A CHANGETHROUGH A CHANGEESPECIALLYESPECIALLY

A SPFTWARE CHANGE!!!A SPFTWARE CHANGE!!!

==

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WHY CHANGE IS REALLY HARD TO DO RIGHT!

• “On Death and Dying”On Death and Dying”

l. Denial Shock

Il. Anger(Emotion)

lll. Bargaining

lV. Preparatory Depression

V. Acceptance(IncreasedSelf-Reliance

Terminal Illness Diagnosed(Significant Change)

Lone

lines

sIn

tern

al C

onfl

ict

Gui

ltM

eani

ngle

ss

Grad

ual R

ealization

of

Th

e Real C

on

sequ

ences

Mov

emen

t Tow

ard

Incr

ease

d

Self

Aw

aren

ess

and

Con

tact

with

Oth

ers

Heath(Sustainability)

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Yes Change Is Yes Change Is HARDHARD To Do! To Do!

• We can often very clearly observe similar reactions to those explained by Kübler-Ross's grief model in people confronted with far less serious traumas than death and bereavement, such as organizational -----

• Change efforts, Redundancy, Enforced Relocation etc., Different Boss, Change in ERP/Software, Change of Process

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A Change Continuum A Change Continuum

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OwnershipIndividuals make the

ERP their own and create innovative ways

to use and improve

CO

MM

ITM

EN

T

High

ContactIndividuals

have heard about the ERPLow

AwarenessIndividuals are aware

of basic scope and concepts of an ERP

UnderstandingIndividuals understand how an ERP impacts the

company and their functional areas

Positive PerceptionIndividuals understand the ERP impacts and benefits to them

ActionIndividuals are willing

to work with and implement the ERP

I nstitutionalizationAn ERP is the way work is done

-- the new status quo

Stage 3: CommitmentImplementing and

Sustaining New Ways

Stage 3: CommitmentImplementing and

Sustaining New Ways

Stage 2: InvolvementEngaging & Enabling

the Organization

Stage 2: InvolvementEngaging & Enabling

the Organization

Stage 1: AwarenessSetting the Climate

for Change

Stage 1: AwarenessSetting the Climate

for Change

TIMETIME

Change Phase 1 Overview

Details of ChangeDetails of Change• Identify the change• Specifics of the change• Change approach

Implementation of Implementation of ChangeChange

• Implementation strategies• Release Strategy

Review of ChangReview of Changee

• Appraisal of change strategy

OUTPUTOUTPUT

• Schedule of activities• Assessments (Readiness, GAP, Impact, Heat Mapping ,etc.)• Action planning• Communication plan &• Training Plan• Resistance to Change plan• Employee to change plan• Release Plan Review plan

OUTPUTOUTPUT

CHANGE MANAGEMENTCHANGE MANAGEMENT PLANPLAN

OUTPUTOUTPUT

Communicating the Message

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• Communications at its best (in multiple formats) and the correct messaging is the identification of impacted people and the development and distribution of ongoing two-way exchange of information involving the right people at the right time in the right manner. An interactive communication process is key to successful change management!

• It is unlikely that employees will change their behaviors in support of the change imperative until they are given sufficient time and information both to understand and believe in the need for change.

Communicating the Message

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Communication Of Objectives:1. Inform and Engage key stakeholders by creating awareness and

commitment to the: • Vision,• Objectives, • Plans, • Expected results, • and the Specific impacts Improve management of

stakeholder and influencer expectations

2. Increase willingness of Leaders, Managers and employees to perform their job the new environment.

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Communication Of Objectives:

3. You either gain complete acceptance of role and task changes resulting from the changes in processes and technology, or you will fail ultimately to make transitions permanent!

4. Enhance understanding of the challenges and opportunities of the change transformation – “making the “making the unknown knowunknown known”

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Communication Objectives:

5. Build manager and leader capability around communication by providing resources and tools to drive ownership of consistent dialogue with stakeholders6. Increase project awareness and buy in among stakeholders7. Reduce resistance, fears, uncertainty, and rumors8. Minimize confusion and misunderstanding9. Monitor and measure feedback

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Communication Of Objectives:

1.The benefits of effective communications include:

•Employees that understand what is expected of them in the new environment and what they can expect from the organization

•Increases employees acceptance of changes

•Employees feel more comfortable and do not put up as much resistance

•Employees think and act like owners of the business Processes

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• Risks ofRisks of ineffective ineffective communications include:communications include:• Confusion• Resistance and rejection of the project by all

stakeholders • Negative perception of the project • Decision not to implement Loss of support• Project aborted• Project Go Live has less then a 40% chance of

being maximized by all employees

Not Communicating the Message

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Overall Communications Approach

• Identify all audience groups to determine their level of criticality to the success of the program and the level of impact on their future jobs

• Define the key communications goals and Guiding Principles for the program

• Define the key messages to be delivered to each audience group that will best enable the group to move upwards along the commitment curve

• Conduct a media analysis to better understand which vehicles deliver the greatest impact to each audience group

Communicating the Message

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1. Develop a Communications Plan based on the following goals:

• Provide clear and consistent communications for each phase of the project

• Deliver clear, simple, and consistent messages across the organization communicating the ““what’s what’s in it for me”in it for me” to stakeholders

2. Execute business transformation Communications Plan

3. Gather feedback to ensure the effectiveness of the communications

Communicating the Message

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Communicating the Message

Conduct AudienceAnalysis

Conduct Media Analysis

Identify Key Communication

Messages

Develop High-Level Communication Plan

Define Communication

Guiding Principles

Execute Communication PlanGather Feedback

Conduct Readiness

Survey

Impact Change ReadinessGAP- Heat MappingAssessments, etc.Pre/Post & On-Going

The 10 Change Success Secrets The 10 Change Success Secrets Nobody Tells YouNobody Tells You

1. Understand the Psychology of Change

2. Ask The Right Questions

3. Clearly Articulate the Change Vision

4. Effective Communications Start With a Clear Strategy

5. Support Leadership (Champions) and Sponsor (s)

6. Integrate Project Management and Change Management

7. Create a Network of Change Champions

8. Utilize a Range of Collaboration Tools to Increase

Engagement

9. Actively Manage Resistance9. Actively Manage Resistance

10.Plan Training in Detail10.Plan Training in Detail48

SUCCESS SECRET # 1 Understand The Psychology of Change

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Understanding The Psychology of Change

It is helpful to understand the psychology of change when planning a change effort, it helps to explain why people think and act as they do when faced with a change. When aiming to transform the attitudes and behavior of employees, a foundational knowledge of this topic will prove beneficial to the leadership and project team responsible for delivering the change.

The four most important elements in changing behavior:

Readiness to ChangeReadiness to Change - Do employees have the resources and knowledge to successfully make a lasting change?

Reason To Change – Do employees have a reason in their interest to change?

Barriers to ChangeBarriers to Change - Is there anything preventing employees from changing?

Expect RelapseExpect Relapse - What might trigger a return to the previous state behavior?

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UNDERSTANDING THEPSYCHOLOGY OF CHANGE

So why do employees Resist Change?

1As people We know that change creates Anxiety2The current State has tremendous holding power3The possibility of losing what we have grown accustomed to (and comfortable) with Creates Worry and Uncertainty4.The Future State is often Ill-defined, and people are afraid of what lies ahead.

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ChangeChangeResistorResistor

Understanding The Psychology of Change

Ask: Ask:

•Does the company have a change history/record?•Do employees really know why why for the New Software/Change, or were they taken by surprise?•Do they believe the reasonss for the implementation, and do the believe the reasons are Validare Valid?•Do they Trust the SendersTrust the Senders of the Message?•From a Personal perspective, How might the change Impact ThemImpact Them?

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Individual Change Comes Before Organizational Change

• What motivates a person is unique to that person• We each March to a Different Drummer• What is the Organizations History with Change?

Here is a Key Change Successes Factor – You must get You must get People on-Board. To do this you need:People on-Board. To do this you need:

–Visible and Active Executive Sponsorship or Change Leadership–Do We Have Mid-Level/Supervisor Sponsors?

• Connor defines a sponsor as “The individual or group who has the power to sanction or legitimize change”

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Individual Change Comes Before Organizational Change

• SPONSORS:– Actively and visibly participate in the individual

level change (how does this change effect me?)

– Build a coalition pf sponsorship between key business leaders

– Communicate directly with employees about why the change is needed

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Prosci ADKAR Five TenetsProsci ADKAR Five Tenets

1 We change for a reason.for a reason.2 Organizational change requires Individual

Change3 Organizational outcomes are the collective

result of individual change 4 Change management is an enabling enabling

framework fframework for managing the people side of change

5 We apply change management to realize the benefits and desired outcomes of benefits and desired outcomes of changechange

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Prosci-ADKAR MethodologyProsci-ADKAR Methodology

The five building blocks of successful change

AAwareness wareness - of the need for change

DDesireesire - - to participate and support the change

KKnowledgenowledge - on how to do change

AAbilitybility - to implement required skills and

behaviors

RReinforcement -einforcement - to sustain the change

A.D.K.A.RA.D.K.A.R..

AADD KK AA

RR

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Prosci-ADKAR MethodologyProsci-ADKAR Methodology

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Prosci-ADKAR MethodologyProsci-ADKAR Methodology

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Prosci-ADKAR MethodologyProsci-ADKAR Methodology

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Prosci-ADKAR MethodologyProsci-ADKAR Methodology

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END OF PART 1

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