Change Management

Change Management
• Organizations do
not change!
• People
Change………
• One person at a
time
Common Experience with
Change
• What is the biggest experience of change
you have experienced at CTS over the last
year?
• What impact did this change have on you
and others?
• What was your initial response to this
change?
Expectations
• Identify 1 thing you
expect to learn today?
Agenda
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•
•
•
•
•
Context for change
Change roles and responsibilities
Stages of change
Managing resistance
stakeholder analysis and involvement planning
Change management levers
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sponsorship
communication
Performance management
Organizational structure
Capability development
Workforce transition
• Risk assessment
• Its an era of change.
• You’ve got to basically
accept change as an
everyday event and
believe that it is a good
thing!
• “Without the appropriate change
implementation support, a company spends
$3-$10 for every dollar invested in
technology , to retrofit it to the culture”
» Gartner Group
• “Nearly half of all major technical initatives
fail because of fear and anxiety in the
organisation, and resistance from key
managers”
» Computer World
Why Change Fails
• Top barriers in major change programs
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competing resources
Functional boundaries
Lack of change skills
Middle management
Long IT lead times
Communication
Employee opposition ( resistance)
Initiative fatigue
Unrealistic timetables
» source: PriceWaterhouseCoopers
48%
44
42
38
35
34
33
32
31
Making Change Succeed
• Factors that helped the most successful companies
achieve their goals
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Good communication
Strong mandate by senior management
Setting intermediate goals and deadlines
Having an adaptive plan
Having access to adequate resources
Demonstrating urgency of change
Setting performance measures
Delivering early , tangible results( quick wins)
Involving customers and suppliers early
Benchmarking V’s competitors
» source:PriceWaterhouseCoopers
100%
95
95
91
86
86
81
76
62
62
Communicating about Change
( 5 Communication Points)
• 1. Why is the change necessary?
–
( rationale)
• 2. What are we changing to?
– ( Vision)
• 3. How and when do we intend to get there?
– (plan)
• 4. What is the personal impact?
– (what's in it for me?)
• 5. Is help available to support transitions?
– (resources)
1.Why is Change Necessary?
• To survive in today's changing market
– PCA’s can be seen / treated as a commodity
• To keep up with changing customer needs,
such as build to order, immediate delivery
• To achieve our goal of leading the sector of
low to mid-volume / high mix EMS
business’s
• Increase efficiency and customer
satisfaction and therefore profit
.CTS’s Key Objectives
• Develop strategic relationships with key
customers
• Provide best in class product and process
quality
• Create world class manufacturing processes
• Develop strategic supplier relationships
• Become employer of choice
2.What are we changing to?
•
•
•
•
Globally unified
More efficient
More profitable
More customer focused
3.How do we intend to get there?
• Through Implementation of key strategies
such as:
–
–
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–
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Supply chain management
Core teams
Six-Sigma
Lean Manufacturing
Inter Company Benchmarking
4.What is the personal Impact?
• More successful company which can invest
in its resources
• Increased stock value and profit sharing
• Employer of choice
talented,
challenging co-workers.
• Working for a globally recognized industry
leader
• More enjoyable work enviroment
5. What help do you need to support
change?
5.Help is available to Support
Change!
•
•
•
•
•
Training classes for you and managers
Increased corporate-wide communication
Visible senior management support
Change infrastructure built around projects
New, consistent vocabulary to talk about
change.
Context for change ( is CTS alone?)
• Companies must continually undergo organizational transformations to
survive and grow
Organizational
effectiveness
Time
Context for change
• Organizational transformations can be disruptive
Before
Established systems
Organizational
effectiveness
Solidified culture
High level of effectiveness
During and After
Transformation
Point
Disruptions to leader ship & systems
Organizational nervousness
Reduced effectiveness
Time
The Transformation Point
•
•
•
•
•
•
•
Low stability: high chaos
High emotional stress
Control becomes a major issue
High undirected energy
Glorifying the past
Conflict increases
Resistance starts to build
Organizational Culture
• Culture consists of the norms, values,
beliefs, expectations, behaviors and
assumptions that exist in an organization
Exercise:What do you think?
• How do you think CTS’s culture affects its
ability to successfully change?
• How will it affect your ability to implement
your change?
• What can you do as a Manager or Project
Leader to move CTTS towards an ideal
culture?
• “Corporate culture is real and powerful. It’s
also hard to change, and you won’t find
much support for doing so inside or outside
your company. If you run up against the
culture when trying to redirect strategy,
attempt to dodge. If you must meddle with
the culture directly, tread carefully and with
modest expectations”
– Bro Uttal
– Corporate Culture Vultures
Summary
• Companies that fail to change may not
survive
• By changing , CTS stand to gain
significantly in many areas, which will
benefit everyone
• CTS’s organizational culture may not be
“ideal” but understanding the current
culture will assist in helping make changes
that will positively affect it.
Change Roles and
Responsibilities
Change Roles
• Executive Sponsorship
– Legitimizes the change
• Sustaining Sponsor
– Represents the executive sponsor
• Change Agent
– Sees the need for change but can not legitimize
it
• Stakeholder
– Supports the change
• ( in beliefs, skills, behaviors, etc)
Executive Sponsor
• Has ultimate authority over and
responsibility for the project
• Has a vested interest in project resourcing
and project results
• Manages organizational expectations
• Provides high level direction
• May delegate day to day involvement to a
sustaining sponsor
Sustaining Sponsor
• Acts as appointed representative of the
Executive Sponsor( ensure formal appointment)
• Participates frequently with the project team
• Interacts with local Stakeholder groups
• Shares duties with the Executive Sponsor
• Brings changes to the Executive Sponsor
for review and / or approval
Characteristics of Successful Sponsors
• HEAD
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Clear understanding of business case for change
Clear understanding of changes impact
Aware of own personal power to make change
Realistic understanding of organizations true capability to reach desired level of change
• Hands
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Initiates objectives, goals, deliverables and scope of the project
Maintains validity of business case until change conclusion
Displays strong public and private support for change
approves work plans and activities
Defines roles/ responsibilities for project teams
• Heart
–
–
–
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Believes in change
communicates with others to help them understand how change will impact them
Motivates and rewards change supporters
Builds and environment to reduce change resistance.
Change Agent
• Anticipates who will lose what
– predicts resistance points
• Plans for the resources people will need to successfully
change
• Effectively communicates the what , when, why and how
of the change
• Creates a change -monitoring system to check whether
plans are being put into action
• Prepares to facilitate the change rather than just make the
change happen
• Looks at how he / she will need to change to work
effectively in the new system.
Stakeholders
• All those who will be affected by the
change and / or whose active support ,
commitment and behavior change are
required for successful implementation
and sustained change
3.Stages of Change
What to Expect from Change
• No matter how positive , promising or
proactive the change is, expect a sense of
loss
• No matter how competent and comitted
stakeholders are , expect a sense of
confusion
• No matter how loyal employees are, expect
some initial skepticism and an increase in
“me” focus
“Positive” Response to Change
Hopeful Realism
Informed
Pessimism
(Doubt)
(Hope)
Informed Optimism
(Confidence)
Uniformed
Optimism
Completion
(Certainty)
(Satisfaction)
Responses to Change
“Negative Responses to change”
Active
R
e
s
i Stability
s
Denial
t
a
Immobilization
n
c
e
Passive
Acceptance
Anger
Bargaining
Testing
Depression
Time
Individual Change Response
P
r
o
d
u
c
t
i
v
i
t
y
Denial
Resistance
Commitment
Exploration
Adapted from Kubler -Ross
Recognizing the Individual Change Response
P
r
o
d
u
c
t
i
v
i
t
y
Denial
Commitment
What you Hear
What you see
Indifference
Disbelief
Silence
What you See
It will never happen
Future
Orientation
It wont affect me
Avoidance
Initiative
What you hear
How can I contribute
Lets get on with it
Self-efficiency
Confidence
What you see
What you see
What you Hear
Energy
What you hear
Anger
It wont work
Optimism
Complaining
It used to be…
Risk taking
Tentativeness
Glorifying the
past
The data is
flawed..
Skepticism
Unwillingness
to participate
Resistance
Impatience
Activity without
focus
I’ve got an idea
Lets try…
What if ….
Exploration
Adapted from Kubler -Ross
Individual Change Process
• By Definition, Individuals will move
through the process at different speeds
• Your role is to effectively maximize the
speed through the change process, reducing
the time spent in Denial and Resistance
Summary
• There are four typical stages of change
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Denial
resistance
Exploration
Commitment
• all these stages are normal and expected
• Be sure to plan for and manage all stages,
especially Resistance.
Remember…..
• “Its
not so much that we’re afraid
of change, or so in love with the
old ways , but it’s a place in
between we fear…it’s like being in
between trapezes ….there’s nothing
to hold on to.”
4. Managing Resistance
• Resistance is a Normal
Reaction to Disruption and
Real or Perceived Loss
Question?
• What resistance to change have you
encountered in the past ?
Sources of Resistance
• Aptitude
– Is unable to make the change
• attitude
– Doesn’t want to make the change
• Threshold for Change
– Doesn’t have the “energy” to make the change
Sources of Resistance: Aptitude
Individual Abilities
See change as more
work
Fear inability to
develop the new
skills required
Don’t understand
what it will take to
be successful in the
future state
Low Tolerance for Change
Fear the unknown
Don’t want to accept the death of
the old ways ( preservation of the
past)
Have “scars”from prior changes
Sources of Resistance: Attitude
Lack of Motivation
Don’t see the need for
change
A compelling vision has
not been presented
No positive consequences
for changing
Perceive costs greater
than benefit
Differing Assessments
Change initiators usually
have more information than
stakeholders
Those affected may not see
the “Big Picture” therefore
the change does not make
sense
The Faces of Resistance
Not Enough Time
Anger Attack
Silence
Withdrawal
Endless
Questions
Details
Details
Details
Intellectualizing
Going Through
The motions
Ignore IT
Deny It
Glorify the Past
Confusion Just
don’t want To Get
It
Faces Of Resistance
Active
Passive
Because it is out in
the open, active
resistance is more
constructive and
easier to manage
than its
underground
counterpart
When resistance is
Hidden, it can go
unnoticed and
undermine efforts to
transform an
organisation
Faces of Resistance
• Active
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Deliberate opposition
Hostility
Agitating others
Failing to report
problems
– Problem denial
– Chronic quarrels
– “This won’t work”
• Passive
– Withholding info
– Procrastination/ Delays
– No confrontation, but
still no productivity
– Not attacking solution,
but not supporting
either
– Over-complicating the
new way
– “We’ve always don it
this way
Managing Resistance
Apply the appropriate level of involvement given the degree of change
Involve
Chaos
Include
Degree of
Involvement
Best case
Consult
Major road blocks
Inform
Fine tuning
Degree of Change
Major Transformation
Managing Resistance: Aptitude
• Identify needed Knowledge and skills
• Provide a training / development program
• Create opportunities to practice without
consequences
• Reward demonstrations of new abilities
• Mentor and model desired behaviors and
skills
• Monitor workloads to ensure they remain
realistic
Managing Resistance: Attitude
• Ensure people understand why change is
needed- the business case for change
• Put the change into the context of the “ Big
Picture” link it to other changes
• Convey a compelling vision for the future
• If possible, personalize benefits of the
change
• Establish rewards, recognition, incentives
and performance objectives that support
change objectives
Managing Resistance: Raising
Thresholds for Change
• Communication
– Preview, view and review
– Ensure regular, timely information distribution
– Communicate with the audiences “needs” in
mind
– Clarify what is not changing along with what is
• Participate
– Involve people in decision making
– Seek out and use ideas and opinions
Raising Thresholds for Change
• Facilitate ( Change)
– Understand People
• Find out how people are doing along the way, not
just at the end
• Provide opportunities for two way communication
and “Venting”
• Don’t just hear Listen!
– Find supporting people
• Leverage the help of those who commit early
• Create a change infrastructure.
Stakeholder: A Definition
One who will be affected by
the change and / or whose
active support, commitment
and behavioral change are
required for successful
implementation and
sustained change
Stakeholders Involvement Strategies
Level of Change and Commitment Required
Inform
Provide the
stakeholder
with
information
on a need to
know basis
only
Consult
Include
Occasionall
y obtain the
stakeholders
input,
advice and
expertise
Include the
stakeholder in
the project by
giving him / her
a support role
and / or making
him / her project
champion
Involve
Actively
involve the
stakeholder in
the project,
role in
decision
making
Facilitating The Individual Change Response
Denial
P
r
o
d
u
c
t
i
v
i
t
y
Commitment
Provide frequent consistent
messages
Provide guidance, support and
recognition
Confront without threatening
Provide frequent feedback on
progress
Demonstrate visible signs of
change
Clarify what is and what is not
changing
Address rumors and
misinformation
Probe for underlying feelings/
concerns
Acknowledge and legitimize
feelings
Clarify case for change( vision,
plan)
Enroll those here as advocates to
assist others
Be careful not to overload or burn
out
Acknowledge efforts and the struggle
Celebrate success
Provide opportunities for visible advocacy
Provide opportunities for participation and
contribution
Listen
Relate expectations and
consequences for non compliance
Resistance
Exploration
Adapted from Kubler -Ross
Facilitative Techniques
P
r
o
d
u
c
t
i
v
i
t
y
Denial
Communicate
& Clarify
Educate &
Re-emphasize
Resistance
Commitment
Acknowledge &
Advocate
Facilitate &
Encourage
Exploration
Adapted from Kubler -Ross
Summary
• Resistance is a normal response to change
• There are many different displays of
resistance
• Encourage expression of resistance; get it out
in the open
• Help move people toward exploration and
commitment in order to minimize resistance
and productivity loss
• Choose suitable strategies to deal with group
and individual responses: customize plans
What is Change Communication
• Introduces, educates and informs target audiences,
both internally and externally, about change
efforts.
• Creates awareness, understanding and dialogue
among stakeholders
• Establishes the message, channels and ongoing
feedback processes between management,
employees, customers and suppliers
Goals of Change Communication
•
•
•
•
•
•
Move people toward commitment
Help people make informed choices
Build trust through honesty and openness
Demonstrate empathy
Seek to understand
Report progress-or lack of-so people can be
responsible contributors to success
5 Key Communication Points
Rationale
Why the change is occurring
Vision
What the organization will look like in the future
Plan
How and when the organisation plans to make
these changes
WIIFM
Resources
Why they should support the change
Who is supporting the change, sponsors, change
agents
Frame of Reference
A personal frame is made up of
assumptions about self, others,
tasks, and the organization that
lead a person to behave in a
particular way
“A common trap managers and
executives get caught in comes
from attributing one’s own
perceptions, values, feelings and
needs to other people. In other
words, we often assume people
are made like ourselves”
From “making mergers work”
By Price Pritchett
Two Way Communication
• Ensures that both parties have the same
understanding of a situation
• Reduces misunderstandings
• Provides a vehicle to build trust and
demonstrate empathy
Communication Channels
A communication channel is a means by which information
goes from one party to another
•
•
•
•
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•
•
•
•
E-mail
Business Monday
Company magazines
News letters
Press release
All employees meetings
Posters
Hotlines
Staff meetings
•
•
•
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•
•
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•
Voice mails
Focus groups
Bulletin boards
Home mailings
Network broadcasts
Video/DVD
Letters from CEO
Internet
Paycheck stuffers
Communicating to Build Commitment
D
e
g
r
e
e
o
f
s
u
p
p
o
r
t
Awareness of
change
Contact
Memo
Video
meeting
Time
Developing a Communication
Plan
Myths about Change Communication
• What others don’t know can’t hurt you-the rumor
mill will fill in what you don’t explain
• You can control what people will perceive
• Understanding can be developed simply by
broadcasting information
• Giving people information will lessen the impact
of the change
• Communication stays the same over the life of the
project-same messages same media
• One size fits all
Principles of Change Communication
• Communicate, communicate, communicate
• Align communication to the business case and
vision for change
• Communication must be:
– Consistent
– Frequent
– Tailored to the stackholder group
• Use varied, but existing channels to communicate
to stackholders
What is Performance Management
A method to link employees actions
and behaviours to company
strategies and goals using systems
that define, monitor, measure, report
on, improve and reward desired
employee performance
What is Performance Management
• A method to Link employee actions and
behaviors to company strategies and goals
using systems that define, monitor, measure,
report on, improve and reward desired
employee performance
Why is Performance Management Important
in successful Change Implementation
• “ That which gets measured and rewarded
gets done”
• What are the new behaviours and
performance standards?
• How will we measure them?
• How will we reward them?
Principles of Performance
Management
• Performance standards are aligned with
company strategies and goals
• Metrics exist to monitor performance
• Employees are provided with specific goals
and actions to improve performance, on an
on-going basis.
Team based Structures Work Best When
• People share common, clearly defined goals
• Everyone on the team will benefit from achieving
the goal
• Different types of expertise and skill are needed to
accomplish the goal
• Tasks require interdependence and interaction
• The organizations culture supports and values
employee involvement
• Managers are willing to use team output
Team based structures are less effective when:
• One person can be equally or more effective at the task
• The task requires individual accountability and / or fast
paced decision making
• Work output required in a short time
• Team members accountabilities and reward systems are
different(especially when in conflict)
• Not having the requisite interpersonal skills, or the energy
or commitment to acquire them
• Managers do not understand or support team process
• Organization does not have value collaboration and will
not reward people who share information, expertise or
success.
Factors in Effective Team Building
• Coaching:
– The team management philosophy requires that
workers be trained to “ manage” themselves.
Managers need to be coaches rather than
“bosses”
• Decision Making:
– It must be made clear who has the
responsibility and authority for which
decisions, both inside and outside the team.
Factors in Effective Team Building
• Communicating:
– Everyone needs to know what's happening, and
clear mechanisms for communications must be
in place
• Chartering
– Mission, Vision, Values
– Ground rules
– Roles and responsibilities
Factors in Effective Team Building
• Competencies:
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Teamwork
Decisiveness
Problem solving; conflict resolution
Communication
Project management
Leadership