Change Management Leading Corporate Transformation

PANKAJ AGRAWAL

CHANGE – THE WAY OF LIFE

Change is inevitable

There is only one thing constant in the world – Change

Nothing Lasts Forever

If mankind denied changes – We would still be living on tree

BUT STILL – WHY TO CHANGE When the rate of change outside is more than rate of

change inside, end is in sight – JACK WELCH (CEO GE 1981-2001)

A Change Paradox - To not introduce change in changing environment may present as much risk as to introduce change in a non – changing environment.

At this moment of history, change is so rapid that we see the present, only when it is already disappearing.

AND THOSE WHO DON’T CHANGEDo you remember :-

FIAT and AMBASSOADAR Cars From Omni Present status to the rubble

NOKIA PHONE Synonyms to mobile - Struggling for survival

KODAK From USD 30 billon company to less then a billion company now.

FORCES FOR CHANGES Technological Advancements Changing customer aspirations Mergers & Acquisitions Privatization Knowledge Economy E-commerce Human Resource – Problem & Prospects External Economy – World Politics

EXAMPLES OF CHANGES ORGANIZATIONS ARE CURRENTLY TAKING ON

Ad hoc processes Documented and managed processes

Multiple, legacy systems One integrated database

Haphazard & inefficient duty roster New efficient & lean roster

No web interface for suppliers Supplier website integrated into supply chain

Two different companies Merged organization

Currentstate

Transitionstate

Futurestate

Manual Work Flows Automated Machines

FORMAL CHANGE MANAGEMENT PROCESS– A NEW MANAGEMENT TOOL

Consequences of no/improper Change management

Lower productivity Passive resistance Active resistance Turnover of valued employees Disinterest in the current or future state Changes not fully implemented People revert to the old way of doing

things The change being totally scrapped

CHANGE MANAGEMENT Two sides of changes

Technical Side of Change Human Side of Change

Change Management here is the process, tools and techniques to manage the people side of change to achieve the required business results.

(Change Management at Technical changes is part of Project Management).

PROPER CHANGE MANAGEMENT IS IMPERATIVE TO ACHIEVE DESIRED RESULTS FROM THE INTENDED CHANGE

CHANGE MANAGEMENT PROCESSCreate Vision for Change – Prepare for it

Manage Change

Post implementation Reinforcement

PHASE 1 – PREPARE FOR CHANGE Define nature of

change Do benefit analysis Identify Risk Prepare Risk

Handling Plan Devise Strategy Prepare Sponsor Plan Take Approval

PHASE 2 – MANAGE CHANGE Communication

plan Sponsor Roadmap Training Plan Coaching Plan Resistance

Mgmt Plan

CHANGE MANAGEMENT – CRITICAL SUCCESS FACTORS COMMUNICATION WITH STAKEHOLDERS

COMMUNICATION List all the stakeholders to be affected Make a clear communication to them

about changes Explain new risk/comfort profile

subsequent to change Check and handle scepticism Take Acknowledgement

CHANGE MANAGEMENT – CRITICAL SUCCESS FACTORS

TRAINING & COACHING

TRAINING & COACHING Assess current competency level of

people Assess competency level required post

change Do gap analysis Provide adequate training & coaching

at each level Check & freeze preparedness Keep Plan B ready in case of fallout

CHANGE MANAGEMENT – CRITICAL SUCCESS FACTORS

PEOPLE’s RESISTANCE

RESISTANCE TO CHANGE

Resistance to change (individual) is the main barrier for change – 60% time this is the case.

Employee Resistance

Habit

Job Security

Economic Fear

Selective Information Processing

Unknown Fear

OVERCOMING RESISTANCE

TRANSITION OF CHANGES

DENIALIt can’t happen here:::Current System is just fine:::Refusing gathering new information

RESISTANCEAnger:::Complaining:::Getting Sick:::Blame Game

EXPLORATIONWhat’s for me:::Seeing possibilities:::Chaos & indecisiveness

COMMITMENTFocus:::Team Work:::Vision:::Cooperation

TRADITIONAL CHANGE MODEL

PHASE 3 - POST IMPLEMENTATION REINFORCEMENT

Audits and employee feedback

Corrective action plans

After action review

Finally freeze the change

MOOT QUESTION - WHO WILL DO IT ………….

Project team

Changemanagement

Senior leaders

Managers and supervisors Employees

SENIOR LEADER(Main Project

Sponsor)• DRIVES CHANGE AT

MACRO LEVEL • Build the needed

coalition with peers and other managers

• Overall communicate the business messages about the change to all

MOOT QUESTION - WHO WILL DO IT ………….

Project team

Changemanagement

Senior leaders

Managers and supervisors Employees

MANAGERS/SUPERVISOR

(The Key Link)• Communicate the

personal messages about the change to stake holders

• Conduct group and individual coaching sessions

• Identify, analyze and

manage resistance • Provide feedback to the

rest of the change management ‘gears’

MOOT QUESTION - WHO WILL DO IT ………….

Project team

Changemanagement

Senior leaders

Managers and supervisors Employees

EMPLOYEES(Critical Success

Factor)• IF THEY EMBRACE IT, IT

WILL HAPPEN• Seek out information

related to the business reasons for change and the personal impact of the change

• Provide feedback and reaction to the change process

• Take control of the

personal transition

MOOT QUESTION - WHO WILL DO IT ………….

Project team

Changemanagement

Senior leaders

Managers and supervisors Employees

PROJECT TEAM(The executor on

ground)• Provide timely, accurate

and succinct information about the change (or project)

• Integrate change

management activities into project management plans and activities. Both should be well interlaced

CHANGE MANAGEMENT AND PROJECT MANAGEMENT

Currentstate

Transitionstate

Futurestate

Project management

Change management

Project Management & Change Management Process to work in tandem and should be in sync with each other

CONCLUSION Continual Change is imperative for success of any

organization Proper Change management is key to success behind any

change implementation Managing resistance, proper communication and training

are key success factors for proper change management.

Change management requires action and involvement by leaders and managers throughout the organization

Change management and project management are both tools that support project benefit realization – project management is the ‘technical’ side and change management is the ‘people’ side

SO ITS TIME FOR A CHANGE

Thanks a lot for your kind attention