HOW TO HOW TO SUCCESSFULLYSUCCESSFULLY

MANAGE CHANGEMANAGE CHANGEOSU/OKCOSU/OKC

November 18, 2008November 18, 2008

What is Change Management?What is Change Management?

A systematic approach to dealing with change, A systematic approach to dealing with change, from the perspective of both the organization from the perspective of both the organization and the individual. Change management has at and the individual. Change management has at least three different components:least three different components:

adapting to changeadapting to change controlling changecontrolling change effecting changeeffecting change

Bill Gates said “In three years, every product my Bill Gates said “In three years, every product my company makes will be obsolete. The only company makes will be obsolete. The only question is whether we’ll make them obsolete question is whether we’ll make them obsolete or somebody else will.”or somebody else will.”

Statistics About ChangeStatistics About Change

15% achieve their objectives15% achieve their objectives 20% fail to achieve all objectives but 20% fail to achieve all objectives but determined to be satisfactorydetermined to be satisfactory 65% have unsatisfactory results65% have unsatisfactory results

Most significant change fails to meet the Most significant change fails to meet the expectations and targets of management.expectations and targets of management.

Top management is frequently unreasonable in Top management is frequently unreasonable in its expectations its expectations

Why Change FailsWhy Change Fails

The #1 reason change fails is The #1 reason change fails is

FEARFEAR

How to Succeed at ChangeHow to Succeed at Change

The #1 thing to remember to make change The #1 thing to remember to make change succeed is:succeed is:

COMMUNICATIONCOMMUNICATION

Reasons People Resist ChangeReasons People Resist Change

Self Interest-they believe they will lose Self Interest-they believe they will lose something of valuesomething of value

Misunderstanding and lack of trust-they do not Misunderstanding and lack of trust-they do not understand why this is happeningunderstand why this is happening

Different assessments-they see different Different assessments-they see different costs/benefitscosts/benefits

Low tolerance of change-they fear they do not Low tolerance of change-they fear they do not have the relevant skillshave the relevant skills

We do not agree on the problem-individuals We do not agree on the problem-individuals do not see the need for change the same waydo not see the need for change the same way

We do not agree on the direction of the We do not agree on the direction of the solution-individuals see different solutionssolution-individuals see different solutions

We do not agree the proposed change solves We do not agree the proposed change solves the problem-disagreement on whether the the problem-disagreement on whether the proposed change will solve the problemproposed change will solve the problem

The proposed change might work but will The proposed change might work but will create other problemscreate other problems

There are huge obstacles to implementing the There are huge obstacles to implementing the changechange

Unverbalized fearUnverbalized fear

What Organizations Didn’t Do That What Organizations Didn’t Do That Caused the Change to FailCaused the Change to Fail

Were not clear about the reasons for the Were not clear about the reasons for the change and the overall objectiveschange and the overall objectives

Failed to move from talking to action quickly Failed to move from talking to action quickly enoughenough

Leaders not prepared to change management Leaders not prepared to change management style required to manage the changestyle required to manage the change

Organization had too many “goals” at one timeOrganization had too many “goals” at one time

The organization is not preparedThe organization is not prepared Little regard to the overall business and did not Little regard to the overall business and did not

plan for the “trickle down effect”plan for the “trickle down effect” Leaders set the direction for the change and Leaders set the direction for the change and

then left it to less motivated people to then left it to less motivated people to implementimplement

Made it a “surprise”Made it a “surprise” Didn’t do enough to resolve uncertaintyDidn’t do enough to resolve uncertainty Insensitive to employees feelingsInsensitive to employees feelings

How to Reduce Resistance to How to Reduce Resistance to ChangeChange

Communication-clear two-way approach with all Communication-clear two-way approach with all staffstaff

Start with a good idea-have a good, well-thought out Start with a good idea-have a good, well-thought out conceptconcept

Obtain staff commitment-involve staff in both the Obtain staff commitment-involve staff in both the ideas and implementation stageideas and implementation stage

Provide sufficient resources-people, time, money, Provide sufficient resources-people, time, money, skills, etc.skills, etc.

Have a plan-look ahead and allow flexibilityHave a plan-look ahead and allow flexibility

Take into account the needs/attitudes/beliefs of Take into account the needs/attitudes/beliefs of the staffthe staff

Be aware of WIIFM—What’s in it for me?Be aware of WIIFM—What’s in it for me? Provide clear and specific information on the Provide clear and specific information on the

changechange Educate and communicateEducate and communicate Participation and InvolvementParticipation and Involvement Negotiation and AgreementNegotiation and Agreement Manipulation and Co-optationManipulation and Co-optation Explicit and Implicit CoercionExplicit and Implicit Coercion

View change as an opportunity, not a threatView change as an opportunity, not a threat Treat your staff like your customersTreat your staff like your customers Involve others in the decision making processInvolve others in the decision making process Say it once, say it twice, say it againSay it once, say it twice, say it again Validate the feeling of employeesValidate the feeling of employees Anticipate tomorrowAnticipate tomorrow Let go of the pastLet go of the past Train the staffTrain the staff Be a behavior modelBe a behavior model

What Leadership Must DoWhat Leadership Must Do

Believe the change is necessaryBelieve the change is necessary Be pro-activeBe pro-active Convince people undergoing the change that the Convince people undergoing the change that the

change is necessarychange is necessary Tell staff how the change will affect them as Tell staff how the change will affect them as

individualsindividuals Tell them early, tell them oftenTell them early, tell them often Be honestBe honest Utilize management processes and skillsUtilize management processes and skills

ConclusionConclusion

The four main steps to successfully implement The four main steps to successfully implement change:change:

Propose the changePropose the change Summarize the impact of the changeSummarize the impact of the change Make a decisionMake a decision Implement the changeImplement the change

AGAIN, THE KEY IS COMMUNICATIONAGAIN, THE KEY IS COMMUNICATION

ReferencesReferences

Brownell, Eileen Brownell, Eileen http://www.shoh.orghttp://www.shoh.org

Dwyer, Kevin Palmer, Jonathan Dwyer, Kevin Palmer, Jonathan http://www.projectsmart.co.ukhttp://www.projectsmart.co.uk

Haughey, Duncan Palmer, Jonathan Haughey, Duncan Palmer, Jonathan http://http://www.projectsmart.co.ukwww.projectsmart.co.uk

Maisey, Paul Maisey, Paul http://www.leadershiptipsandtrauma.comhttp://www.leadershiptipsandtrauma.com

Okoro, Samuel Okoro, Samuel http://www.projectsmart.co.ukhttp://www.projectsmart.co.uk

Palmer, Jonathan Palmer, Jonathan http://www.projectsmart.co.ukhttp://www.projectsmart.co.uk