How to ‘do’ change management for Mandatory Changes Presented by: Vicky Emery Director – Change Capability Services August 2016

Change Community of Practice Webinars

Introducing Being Human •  Founded in 1993 • Our mission: develop

change-capable people and organisations so they achieve the benefits of change

• Prosci Primary Affiliate Australia and New Zealand

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Agenda

•  The challenges of mandatory change

• Snapshot of Prosci Best Practices research findings

•  Top 5 tips for effective Change Management

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What do we mean by mandatory change? •  Compliance and regulatory

projects: •  Externally driven, e.g.

government regulation, industry standards

•  Internally driven, e.g business improvement initiatives, risk management, IT, HR, Finance, OH&S projects

•  Restructures, relocations or realignments

•  Compulsory projects, where 1.  The “what” (future state) is

already decided 2.  The “how” (transition plan) is

already decided 3.  Or both of the above

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Snapshot of findings from Prosci 2016 Best Practices in Change Management Report

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Top 5 complex changes: 1.  Spanning wide geographic

areas - 59% 2.  No WIIFM- 57% 3.  Impact across various

cultures – 50% 4.  Long time frames – 42% 5.  Reorganisation – 42%

Little or no WIIFM Top 3 issues:

1.  Overcoming resistance and gaining buy in

2.  Addressing employee fears 3.  Depending solely on

organisational benefits

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•  Less risky •  Safe •  Supported •  Free •  Automatic Assumptions can result in: •  Poor or inaccurate business

requirements definition •  Current state not correctly understood

or mapped and risks not tabled •  Flawed or incomplete solution design •  Slower adoption than expected or

needed •  Low ultimate utilisation •  Lower or unsustained proficiency

Just because it is ‘mandatory’ does not mean it is…

The twin challenges of mandatory change 1.  Building the business case

for managing the change: assumption by Sponsor and other key stakeholders that people will get on board “because they will have to – the change will be BAU”. •  “Why bother with investing Change

Management?” •  Budget and resourcing are ad hoc,

limited or absent 2.  Actually doing effective

Change Management: difficulty in engaging managers, end users and other impacted groups.

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A common story… Example from Being Human consultant: •  I worked on a change that brought in a new workflow to help

meet regulatory response times. •  Employees were meant to access the workflow and manage

activities using the system. Many refused and did their their work outside the system, entering information at the last minute before it was work-flowed onto the next person.

•  This often meant people were working off old templates that they saved onto their desktop rather than the latest correct templates.

•  Unfortunately, reinforcing the change was not a priority and after the 4-week post implementation support, the Change Managers were moved on.

•  Despite it being a compliance system, the future state now looks like Swiss cheese!

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Tip 1: Make the business case for Change Management

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T T T

T T T

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The Swiss Cheese Future State Project completed but a % of end users failed to adopt or

sustain the change •  Expected benefits not realised

•  Project delays •  Budget overruns

•  Project remediation required

Current Transition Future •  Change the conversation •  Stop talking about engagement

and buy in if they are creating resistance to applying Change Management

•  Start talking about the future state and required project outcomes

•  What does success look like? •  WHO needs to adopt, use, and

sustain the change? •  What happens if there are

failure points?

Tip 1: Make the business case for Change Management

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•  Identify the impact of these people factors on success: •  Speed of adoption - how will

delays in the timetable for adoption impact the project?

•  Ultimate utilisation - what is the goal for end user utilisation (e.g. 100%) and what is the impact if this is not achieved by the required date?

•  Proficiency – how important is this for success and what is the impact is end users don’t have the skills required?

•  Sustainment - what will be the impact of end users adopting workarounds or going back to the previous ways of working?

Tip 1: Make the business case for Change Management - via risk mitigation

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•  Assess the overall people risks of the change

•  Identify specific risks across: •  Readiness/resistance to the

change •  Impact of the change on different

groups •  The Prosci People Risk (high,

medium or low) will help you determine the amount of change management required.

Tip 2: Prosci’s ADKAR® Model still applies •  Sometimes, it is hard to find the

obvious reasons for the change (Awareness) and ‘what’s in it for me’ (Desire)

•  So think harder! •  What ARE some of the reasons and

benefits for the organisation? •  For our customers? For our team?

•  Mandatory change almost needs MORE Awareness and Desire building than non-mandatory change

•  Failure is not an option – communicate and discuss “what are the consequences if our organisation, or our team does not make these changes successfully?”

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Tip 3: Focus on the How •  The "what" may be non negotiable –

communicate this clearly and why it’s non-negotiable

•  Be clear on how impacted teams can be involved in the "how” and allow it - this will naturally build Awareness and Desire for the change

•  Work with the Sponsor and Project Manager to identify areas where end users can influence the “how”

•  Example from Julie Stalley, Senior Consultant:

•  “I have just been having ADKAR conversations with one of our client groups. Six months ago they were very resistant and still very much asking "why, why, why?”

•  While they don't necessarily agree with the "what" they have all now chosen to participate in the change and make sure it is a success because they have influence and choice about the "how”

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…. And ADKAR still applies Example from our team… I was involved with the relocation of about 1000 staff following a merger of two organisations. The aim was to co-locate functions. Who was moving where was based entirely on their role/function. There was no opportunity for staff not to move and remain in that function. And despite the fact these employees were only going to have to move about 9 kms away, there was a high level of resistance (and union involvement). We tried to create some understanding, awareness and comfort by: •  Providing all the impacted employees with a booklet about the new 'campuses’

including details on parking, cafes, public transport, amenities, distance to shops, nearby childcare facilities

•  Arranging for tours of their new locations, so employees could see for themselves where they would be sitting, parking etc

•  Letting them see the advantages of being co-located with their equivalent colleagues from the other organization

•  Engaging early and regularly with the union, so they were aware of everything that was happening, when, how and why it was happening.

Ultimately, not everyone who was impacted was happy or chose to support the move some even left - but at least they had the knowledge to be able to make the choice that was right for them.

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Tip 4: Tap into people’s core values around how they make change happen •  Can be hard to motivate leaders and

teams to put effort into mandatory change

•  Ask what are the benefits to all those groups of the way WE want to do this change, as opposed to other organisations or competitors?

•  What is our ‘brand’ in this change - what do we want to be known for in the way we do this?

•  Given we have to do this change, how can we do it so we get the best result AND make it a good experience for our people?

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Tip 5: Measure utilisation and reinforce the change •  Agree the “lead and lag” measures of

success. These are even more important in mandatory change to build desire - “we are serious about this”

•  Establish reliable pulse checks and open feedback - Make these public or visible to leaders can help maintain their focus

•  During project: track Awareness and Desire, dig deeper into red flags

•  Before Go Live – do people have the required Knowledge and Ability?

•  During and post Go Live - how will you measure and respond to:

•  On time adoption across teams and business units •  Utilisation rates - are they reaching targets? Or are

key groups opting out? •  Proficiency - skills, error rates •  Sustainment – how will you know if the change is

sticking? •  How will you celebrate success and

recognise people’s efforts?

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Prosci Change Management Workshop for Project Managers

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Where to find today’s slides and recording

25

Being Human Company Linked in Profile – Follow us!

Being Human Pty Ltd page - Like us!

Slideshare.net Search for Being Human Pty Ltd. Slides and recording available.

Search for Being Human Pty Ltd. Recorded version. Follow us!

More info

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