The Use Of Change Management In Process Improvement

Damon Werner, MBB

Director of Business ProcessAugust, 2013

Agenda

1. Introduction and Background

2. View on the role of Change Management in Process Improvement

1. Project Success vs. Organizational Readiness

3. Methodology and Tools of choice1. Threats vs. Opportunities2. Elevator Speech3. Stakeholder Analysis4. TPC Analysis (Sources of Resistance)5. 3 D’s (Influence Strategy)

4. Other Change Management Topics:1. Skewed Adoption Curves in Technology

Organizations2. Downsizing and Change Management3. Change Management and Customers

CurrentState

TransitionState

ImprovedState

Background for Change Mgmt Model

OPPORTUNITIESTHREATS

DoDon’tDoDon’t

OPPORTUNITIESTHREATS

DoDon’tDoDon’t

Short Term

Long Term

The Threats and Opportunity Matrix is completed early on as soon as leaders have committed to champion the change

•Perception of this division by other businesses

•Not following the expectations of Corp Leadership

•Employees will just spin, for lack of the tools

•Miss goals for Q1

•Disappoint some by not following through

•Apathy of the staff due to previous track record on sticking to what we launch•So much change, there may be skepticism•Stigma around Six Sigma•The perception that this effort is based around job elimination•Hard because we are a reactive culture

•More attention that we’re already doing, like reacting

•Less distraction

•Able to fix some of our bigger/nagging pain points with a sustainable process

•Quick wins to prove the value of the effort

•Positive energy and retention strategy

•Consolidate systems in the short term

•Continued layoffs/repeat of history•Never reach full integration of the business units•Won’t grow top line revenue or get the cost out to reach the EBIT targets•Won’t be viewed as a competitive business unit•Hinder ability to attract talent, hurt job satisfaction

•We may not have the focus or effort behind this in the long haul

•Might not have the impact that is needed

•Career growth opportunity

•Build for efficiencies and become proactive

•Inherent culture that does it right the first time, expecting better quality

•Profitability, predictability and confidence in the business

Creating A Shared NeedTool: Threat vs. Opportunity Matrix

5

Used For:

Helping team members thinkabout the future they are

working to create1. Imagine a point in the future when the project has been very successful.

2. Find words to describe what you would see, hear, feel as you observe key constituents functioning in the new, changed state.

3. Collate, debate, reach consensus, "test" on others and modify

Shared Visions Come From Collective Efforts That Reflect Individual Perspectives

Now Future

Shaping A VisionTool: Backward Imaging - Exercise

1. Imagine a chance meeting of a team member and a key stakeholder in a empty elevator. The ride is 90 seconds.

2. Describe the need for change and vision of the new state, as if answering the question “Why are we doing this?” Address the following elements:

• Problem/issue

• Benefit

• Where are we

• What others can do

3. Team members practice this “speech” so they can convey a uniform message to others

Shaping A VisionTool: Elevator Speech – Communicating the Vision

7

► Identify which stakeholders could be considered an innovator, early adopter, late adopter or resistor, related to this change

► Determine what impact their attitude could have on making the change► Determine which stakeholders should be approached first to start gaining

momentum

Innovators Resistors

Early Adopters

Late Adopters

% of Population

Mobilizing CommitmentAdoption Strategy

Strongly Supportive

ModeratelySupportive

NeutralModerately

AgainstStrongly Against

NamesStrongly

SupportiveModeratelySupportive

NeutralModerately

AgainstStrongly Against

Names

The Stakeholder Analysis helps the team answer the questions:• Who are the stakeholders?• Where do they currently stand on issues associated with the change• Where do we “need” them to be in terms of their level of support• What do you need them to do, or what is the win associated with getting them on board?

G. James

Mobilizing CommitmentTools: Stakeholder Analysis

Articulating the Glue or Cultural Norms►Locked into an old “Mindset”►Afraid of letting go►“We don’t do it that way.”

Cultural

Allocating Power & Resources►Relationships►Power & Authority imbalance or self-

preservationPolitical

Aligning & Structuring Organizations►Lack of skills / training / equipment►Sunk Costs

Technical

RatingExamplesDefinition: Causes of Resistance

Source of Resistance

Mobilizing CommitmentTool: Technical-Political-Cultural AnalysisThe TPC Analysis seeks to identify, label and understand sources of resistance, and help build a specific strategy to use to influence and gain support

Demonstrate:► Best Practices► Visiting other organizations► Panels/pilots/testimonials

The 3 Ds are used to generate evidence or proof of the opportunity. It also helps to create a robust communication plan/story for the change.

Need to GetHave NowTypes of Proof

Demand:► Dynamic leadership (setting

high standards/ accountability)

► Customers/Suppliers/ Competitors (Internal and External)

Data/Facts:► Numbers/Trends/Statistics► Graphs/Financials► Benchmark/Competitive

Data

Need to GetHave NowTypes of Proof

Mobilizing CommitmentTool: 3Ds

Win

I nfluence Strategy (3 Ds)

I dentify “Wins”I ssues/ Concerns

(TPC)Stakeholder

I nfluence Strategy (3 Ds)

I dentify “Wins”I ssues/ Concerns

(TPC)Stakeholder

Tactics & Tools Include: Influence Strategy

Used For: Identifying what the issues are, who can best influence, and how can they be best influenced

Mobilizing CommitmentTool: Overall Influence Strategy

Who are two of your most important stakeholders?

What are their:

– Issues

– Wins

– Influence Strategies

ExerciseIdentify the Stakeholders for your project

1. Skewed Adoption Curves in Technology Organizations

2. Downsizing and Change Management

3. Change Management and Customers

Questions or Other Topics

Innovators Resistors

Early Adopters

Late Adopters

Normal Curve

Innovators

Resistors

Early Adopters Late

Adopters

Skewed/Technology

Adoption Curves