April 30, 2014

Amy Marshall Alexis Langlois Shelly Angolano Nick Satterfield

The Magnitude of Managing Change

Amy Marshall Alexis Langlois

Shelly Angolano

• 2006 Associates -Mechanical Engineering

• 2014 Bachelors - Business Management

• Husky Injection Molding -Manage multiple teams

Nick Satterfield

• 2007 Associates General Eng. & Tech

• 2014 Bachelors

Business MGT

• IBM Equipment Support Technician

• 2004 AS Gen. Engineering

• 2014 BS Bus. Tech. Mgmt

• Org. Change Management – Business Transformation

Keurig Green Mountain

• 2014 Bachelors- Business Management

• Costco Wholesale- Major sales assistant

Change can be a difficult

endeavor for any

organization. Without

proper structures, activities,

and skills, change projects

are often terminated,

abandoned, or result in

failure. People

TechnologyProcess

Amy Marshall

The need for change management

Alexis Langlois

Establish a change management approach

Shelly Angolano

Ensure changes are effective

Nick Satterfield

Develop a change agent network

Agenda:

Amy Marshall

The Need for Change Management

30.00%

70%

Change Initiatives

Successful

Unsuccessful

30 %

70 %

Amy

Leading Causes to Failure….

UnsuccessfulChange

Initiatives

2010, Oracle is the Information Company: Process Transformation and Adoption of Change

EMPLOYEES MANAGEMENT

Amy

2010, Oracle is the Information Company: Process

Transformation and Adoption of Change

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Large Scale

Technology

Projects

Small Scale

Technology

Projects

Employee Resistance Other Reasons

Leading Causes to Failure….

Amy

All Projects Aren’t Equal

•Overall project length

•Scope, Schedule, Cost

•Executive and staff commitment

•Effort to manage the change

Amy

The Feelings of Change

ANXIETY

Can I

cope ?

HAPPINESS

At last

something’s

going to change !

GUILT

Did I

really do

that?

DEPRESSION

Who am I?

GRADUAL

ACCEPTANCE

I can see

myself in

the future

MOVING

FORWARD

This can

work and

be good

HOSTILITY

I’ll make this

work if it kills

me!!

THREAT

This is bigger

than I thought!

FEAR

What impact

will this have?

How will it

affect me?

DISILLUSIONMENT

I’m off!! …

this isn’t

for me!

Amy

Executive Influence and Engagement

BenchmarkYear Active & Visible

1998

2000

2003

2005

2007

2009

Amy

Operational Complexities

Amy

Listen…Change is Coming

"Messages about change

having serious, human

implications can be

alienating if they are

delivered via channels

perceived as impersonal,

distant, or lacking

interactivity.”

2000 Stephen Axley, Communicating Change:

Questions to Consider

Amy

Keys to Managing Change

Establish a Change Management Approach

Ensure Changes are Effective

Develop a Change Agent Network

Amy

Alexis Langlois

Establish a Change Management Approach

Establish a Change Management Approach

Define change management

Learn to manage

Build an approach

McKinsey 7S framework

Prosci ADKAR model

Alexis

Define Change Management

The process of monitoring and

controlling change within an

organization

Alexis

“Organizational change is the movement of an organization away

from its present state and toward some desired future state to

increase its effectiveness.”

– 2008, Jennifer George and Gareth Jones, Understand and Managing Organizational Behavior

Present enterprise state

TransformationFuture state of

the enterprise

Alexis

Define Change Management

Overcoming

resistance

Supporting

transformation

Alexis

they “were structured

around readily

understandable

themes”

“they encouraged

employees to take the

initiative and contribute

to change”

they had “Transformations

with clear,

unambiguous metrics

and milestones”

6X

5X

7X

More

Successful

A McKinsey survey of nearly 2,000 executives found that programs…

Alexis

Organizational transformation occurs…

“By changing the work

systems that comprise the

work environment around

the people whose behavior

is supposed to change.”

– 2013, Gregory Shea and Cassie

Solomon, Change Management is Bigger

than Leadership

Learn to Manage

Alexis

Learn to Manage

Using the mission, goals, and strategies of the organization.

Successful change comes from…

the ability of an enterprise

to develop and maintain a

change management

approach.

Alexis

Implementation of a generic set of definitions, techniques, and specifications

What change is needed?

What is the implementation

method?

How will the structure be

established and maintained?

Build an Approach

Alexis

Build an Approach

McKinsey 7S Framework

Prosci ADKAR Model

Alexis

McKinsey 7S FrameworkStructure

Staff

Skills

Strategy Systems

Style

Shared

Values

To achieve success,

“these seven elements

need to be aligned and

mutually reinforcing.”

- 2014, James Manktelow, the

McKinsey 7S Framework

Alexis

Prosci ADKAR Model

of the need to change

Awareness

to participate in and support change

Desire

about how to change

Knowledge

to implement new skills and behaviors

Ability

to keep the change in place

Reinforcement

A AKD R

Alexis

Structured

Change

Balanced

Management

Organized

Approach

Maintained approach through assessment

Alexis

Shelly Angolano

Ensure Change is Effective

Success After Change

Shelly

Ultimate performance

Compare the best competitors

Compare customers’ perceptions and expectations

Compare present performance against past performance

Low

Perf

orm

ance

Medio

cre P

erf

orm

ance

Hig

h P

erf

orm

ance

Top P

erf

orm

ance

Perf

orm

ance

Gap

(+) L

eve

l of P

erfo

rman

ce(-)

Benchmarking

research for best practices

Shelly

Each of these Industries benchmarked their supply chain

performance and then repeated this process between 2 and 5

years later. In each case there was a significant change in most

performance metrics.

http://www.benchmarkingsuccess.com/benchmarking-case-studies.asp

Benchmarking Case Study:

Initial Review

70%

Assessment

Review

99%

29%

Performance

Increase

Shelly

Each of these Industries benchmarked their supply chain

performance and then repeated this process between 2 and 5

years later. In each case there was a significant change in most

performance metrics.

http://www.benchmarkingsuccess.com/benchmarking-case-studies.asp

Benchmarking Case Study:

Initial Review

3%

Assessment

Review

0.25%

2.75%

Budget Cost

Savings

Shelly

Capabilities

• Focused drive

• Emotional intelligence

• Trusted influence

• Conceptual thinking

• System thinking

Responsibilities

• Creating a vision

• Creating an organization

• Leveraging knowledge

• Motivating the team

• Producing results

Skills

• Change management

• Coaching and mentoring

• Communication

• Negotiation

• Problem solving

Work towards new strategies and implementing change initiatives!

Conduct, prioritize and manage business assessment findings!

Shelly

Don’t underestimate!

Level of difficulty to expect

Time

Resources

http://www.bdbmc.org/index.php?submenu=_GET&src=gendocs&ref=Glossary+of+ED+Terms&category=Residents#Business%20Climate

Evaluate the Current Business Climate

Shelly

Predict the Amount of Employee Resistance

Why change it, it’s

still working

Okay!

We have a vision and

need your help to get

there!

Shelly

http://www.maximumadvantage.com/

Conduct Proper CommunicationThree Basic forms:

Written, Oral and Non-verbal

communication

The main objective of communication is to ensure smooth flow of information!

How will

this effect

me?

Why do we

need to

change?

Shelly

Blah, Blah,

Blah!

Timely – the right information at

the right time

Targeted – the right information to

the right people

Informative – tell them what they

need to know

(highlight “What’s in it for me?”)

Inclusive – as many people as possible need to feel actively involved

Accurate – misinformation leads to frustration, disappointment and credibility loss

Measurable – measured through feedback analysis to improve the effectiveness

http://nextgen.umich.edu/methodology/documents/NextGen-Michigan-Change-Management-Guidebook.pdf

Shelly

Nick Satterfield

Develop a Change Agent Network

Cultivate Skilled Change Agents

Agents influencing large transformations understand organizational:

Tensions

Culture

Power & Authority

Agents have the ability to influence:

Morale & Motivation

Creativity

Culture receptive to change

Resistance is a leading cause for failure

Nick

Develop Front Line Leaders

Increasing pressure on organizations to

adapt has shifted leaders typical

responsibilities

Organizations effective at managing

change are 2.5 times more likely to

outperform others

• 82% provide specialized training

Merrell, Phil. "Effective Change Management: The Simple Truth."

Nick

Develop Front Line Leaders

One global company realized increased revenue of $1.5

Billion annually by developing leaders soft skills

Develop Front Line Leaders

People don’t necessarily resist

change, they resist the fear of

the unknown

Nick

Smet, Aaron De, Johanne Lavoie, and Elizabeth Schwartz

Hioe. "Developing Better Change Leaders."

Encourage Network Connections

Hierarchy networks

Change must be supported at all levels of organizational structure

United Kingdom’s National Health Services study showed Informal

network connections matter

Agents closer to the center of informal networks have more

influence

Relationships with fence sitters are key

Nick

Battilana, Julie, and Tiziana Casciaro. "The Network Secrets Of Great Change Agents."

Encourage Network Connections

Informal network connections matter

Cohesive networks

Promote trust and support

Not typically a diversified network

Bridging networks

Allow messages to be spread quickly throughout diverse

groups

Nick

Support Engagement

Four conditions are required before an

employee will change behavior

Convincing story

Role modeling

Reinforcing mechanisms

Capability/skill building

Nick

Coaching & Development

Reinforcing

Skill building

Accountability

Emotions drive 90% of human behavior

Best-in-class companies where employees are accountable for their performance generate

up to 70 percent more revenue

Rogers, Bob. "High Performance Is More Than A Dream--It's A Culture."

Support Engagement

Nick

Make it Permanent

Successful change requires:

Leadership Engagement

Skilled change agents

Network connections

Employee support

Nick

Recommendations

As a Leader…

Be a positive influence and a force for the greater good

Stay the course, there will be bumps in the road, this is a

journey

Remember, supporting successful change is a team effort

Your employees will look to you for guidance

Acknowledge

Challenges

Listen for Concerns

Refer to the Feelings

of Change Curve

Be active and visible

Communicate

Frequently

Focus on benefits

Amy

Overcome Resistance to Change

Develop a clear, unambiguous structure

Develop a culture for change

Be informative and communicate effectively

Embrace Change

Alexis

Ensure Change is Effective

Conduct benchmark assessments

A team with strong leadership qualities

Assess business climate

Properly communicate change

Shelly

Support:

Informal networks

People development

Culture of change

Develop a Change Agent Network

Nick

Everyone thinks of

changing the

world, but no one

thinks of

changing himself.

-Leo Tolstoy