Change Management Overview Objectives  Overview of the change management approach  Clarity on how the tools support the change approach  Apply the change management approach 2 Top 5 Reasons for Success 1. Active and visible executive sponsorship 2. Frequent and open communications 3. Structured change management approach 4. Dedicated resources for change management 5. Employee participation © Prosci From the Prosci 2012 Best Practices in Change Management Research Report www.change-management.com/best-practices-report.htm 3 Why Change Management? Change management provides a structured approach or framework to effectively transition groups or organizations through change.    Reduce resistance and misunderstandings that create costly delays, re-work, error / waste and turnover Increase and expedite user “adoption, proficiency and ultimate utilization” thereby optimizing business results Engage users in the change, share relevant information about the change, and expedites the transition to the ‘new future’ 4 Project Management and Change Management Phase One Phase Two Phase Three Phase Four Initiate Plan Execute Close Understand Prepare Do Sustain 5 Change Management 6 High Level Approach Change Management 7 Understand    The Organization (the landscape)  Historical perspective; collective memory; culture  Skills, abilities and processes the support change The People (who is on the journey)  Change Leaders (Sponsors)  Change Participants (Change Targets / Stakeholders; directly impacted, indirectly impacted and influencers)  Change Team The Change (the journey)  Where are you now, where are you going and how will you get there?  What does success look like?  Type, Size, Timing and Impact 8 Understand – Activities/Tools/Templates Topic Organization Tool/Template Organizational Assessment Activity Complete the assessment; determine potential risk People - Sponsors Sponsor Analysis Identify Sponsors - Stakeholders Stakeholder Management Identify Stakeholders - Team Determine resources required and form change team Change Change Impact Assess the impact of the change at a Success Definition (ties to benefit high level; confirm success definition realization) 9 Understand – the Organization Organizational Assessment • Helps to understand the organization, and its overall capacity and readiness for change. • Considers the context of what’s happening in the organization in relationship to the change • Scores the risk of resistance, saturation and other change issues 10 Understand People - Sponsors 11 Understand People - Stakeholders 12 Understand The Change • Clearly Define Success • Determine the Change Impact 13 Prepare    Analyze  Impact of change on specific stakeholder groups  Support or potential resistance of stakeholder groups  Leadership competency and commitment (Sponsor Analysis) The Plan  Determine the activities needed to achieve the change success based on the understanding of the organization, people and change  Create Stakeholder Management Plan and Sponsorship Plan The Team  Ensure sufficient resources; align roles and responsibilities 14 Prepare – Activities/Tools/Templates Activity Stakeholder Management (Detailed Stakeholder Analysis) Stakeholder Management Needs Analysis Description What does each stakeholder (group) need to be, know or do in order to successful accomplish the change What change management activities apply • Coaching  Communication  Learning / Education  Resistance Management  HR systems and structure - Org Design  Engagement – dialogue or involvement  Hyper Care / Support  Change Campaign Create Stakeholder This combines the identification of the stakeholders with the Management Plan from Needs impact analysis and needs analysis to come up with a Analysis comprehensive approach for managing each stakeholder group through the change 15 Prepare – Activities/Tools/Templates Activity Sponsor Analysis / Checklist Description Determine the change commitment and the change competence of sponsor. What is the influence and positional power of the sponsor? Assess the risk and as needed define a risk mitigation strategy. Perform an individual sponsor assessment as needed using the Sponsor Checklist. Sponsor Analysis Create Sponsor What change management activities (if any) are needed • Coaching • Communication • Learning / Education • Resistance Management This is a plan to address sponsorship challenges Management Plan 16 Do the Change Activities  Communicate, Educate, Coach, Manage Resistance, Address System / Structure, Engage Stakeholders  Assess and Adjust the Plan as Needed  Determine the activities needed to achieve the change success based on the understanding of the organization, people and change  Periodically assess the movement of stakeholders through the change from awareness to commitment 17 Do – Activities/Tools/Templates Activity Perform the change activities defined in the stakeholder management plan Assess and adjust activities as Update plans; reassess stakeholders and needed to manage resistance sponsors and achieve sustainable change success Determine whether the Change Readiness Assessment (tool) organization is ready to make the change 18 Sustain  Transition to Operations  Measure Against Benefits Realization   Assess adoption, proficiency and utilization  Review change success definition Maintain the Change   Determine the activities needed to sustain the change success based on the understanding of the organization, people and change Celebrate Success 19 Sustain – Activities/Tools/Templates Activity Track and Monitor Results Validate success against (integrated with benefits realization) the definition 20 Watch Out’s (from John Kotter) Some of the most common change errors are: (1) Allowing too much complacency, (2) Failing to create a sufficiently powerful guiding coalition, (3) Underestimating the power of vision, (4) Under communicating the vision, (5) Permitting obstacles to block the new vision, (6) Failing to create short-term wins, (7) Declaring victory too soon, (8) Neglecting to anchor changes firmly in the corporate culture. 21 Overview  Take the time to Understand: • The Change • The People • The Organization  Prepare - create a plan to successfully accomplish the desired results  Do - execute the plan  Sustain – make sure the benefits of the change stick! 22