Why Even Talk about Change Management?

Impact of Change on People

Significant change can affect productivity and morale due to a loss of familiarity, control, and empowerment at the individual level.
New Organizational Structure New Boss New Reports New Work Processes New Policies New Incentive / Reward Plans New Technologies New Business Strategies

Enabling Change and Unleashing Great Performance

Why Organizational Change Management is Important to BPM Success

BPM Institute BrainStorm SF Event - June, 2010 Sara M. Roberts

New Job Roles and Responsibilities

New Skills & Knowledge Requirements

New Business Challenges, Risks, and Concerns

44 Montgomery Street, Suite 600 | San Francisco, CA | 94104 | +1-415-641-5523 | www.robertsgolden.com

2

Importance of Managing Change:

Impact of Change on People

Throughout major changes, me issues are questions asked by people at all levels

If I ignore this, will it go away? Will anyone know? Or care?

Will I have a job? How will I look to those who determine my future?

Who will I report to? What kind of work will I do?

How much does this change what is familiar and easy for me?

Will this impact how my compensation is determined?

Will my role change? How? Will I like it? Will I have to do stuff I hate?

Do I have the skills? Will I have to upgrade my skills or knowledge?

What would it take to make change?

Will I need to do this to fit in?

Does this really matter or make a difference from my perspective?

creating an inward focus, causing a loss of productivity and loss of key talent.
3

The Keys to Mastering Change

Reframe it Engage them Give them constant guidance Work right alongside them while theyre making the change Work directly in their environment Ensure accountability for new behaviors
6

Lessons Learned Why Initiatives Fail

Lessons Learned Why Initiatives Fail

Change Management Areas Non Change Management Areas

7

Change Management Areas

Source: Deloitte Survey

Source: Deloitte Survey

Non Change Management Areas

8

Adoption is Key
Commit to full support and predictability for the change Weekly webinars Adoption champion network Working sessions with different stakeholder groups One-on-one training
More than 500 hours of training for a core impacted audience of 100

There is a silver lining. Change efforts can succeed.

Coaching sessions while performing new activities

10

Know the Right Time for Change

Time periods of stability with periods of change Cannot be in constant change process V.S. A company needs periods of stability to regroup and regain energy Know normal

Within the next ten years, the ability to effectively manage change will be the number one necessary skill required of business professionals.

12

Assessing the Degree of Impact Estimating and Prioritization Guidelines

Mega
Involves major change across one or more business & technology dimensions (organization, process, application, technology, data, facilities, etc.) x +70% employees impacted x +32 hours of training / practice time required prior to implementation x +3 month learning curve to achieve mastery level x +6 months of sustained communication needed x 3-6 months to fully operationalize (e.g. stability and enhancements) x +3 months of intensive, sustained floor support needed Involves significant change across one or more business & technology dimensions x 50% - 70% employees impacted x +16 hours of training / practice time required prior to implementation x 2 - 3 month learning curve to achieve mastery level x 3 6 months of sustained communication needed x 1 - 2 months to fully operationalize and stabilize Involves moderate change across one or more business & technology dimensions x 25% - 50% employees impacted x +8 hours training / practice / coaching time required x Up to 1 month learning curve to achieve mastery level x 1-2 months of sustained communication needed x Up to one month to fully operationalize and stabilize

Designate a Change Guardian An executive that has his or her finger on the pulse of the company or a cross-functional change council that you form for that purpose Similar to how PMOs manage portfolios or how executive councils prioritize projects from a financial perspective Have birds-eye view Ensure initiatives are prioritized and arent competing Large Medium

Small

Incremental change across one or more business & technology dimensions x Minimal employees impacted x Minimal training / practice / coaching time required x Minimal learning curve to achieve mastery level x Requires 1 month of intensive, sustained communication x 5 days or less to fully operationalize and stabilize
14

*E* Employee Framework

Change Curve: How People Transition Through Change

High
UNDERSTANDING

BUY-IN
Individuals are actively involved in and contribute to project activities

AWARENESS
Individuals have heard that the project exists and are aware of basic scope of the project / general concept

Individuals have an appreciation for the impacts and benefits that the project will have on them and their areas

COMMITMENT

COMMITMENT / OWNERSHIP Individuals acknowledge that the project belongs to them and actively support and adopt the changes

In order to: Convince of value Feel confident they can make the change Ensure theyre capable Feel continuously supported during and after change process Maintain and sustain change
Low Status Quo
(Where we Started)
15

TIME

Vision
16 16

1. Engage Your People

Its All About Me

How is it going to impact me? impact me? a Whats in it for me? Whats in it fo Is there a role for me? s rol l

Know your audiences get a handle through stakeholder analysis and understanding where they are

Establish a sense of urgency with them

Communicate a compelling vision and strategy

17 18

Engaging Stakeholders Appropriately

Getting a Handle on Your Audiences Getting Out There

Not just about talking about your stakeholders in a war room with other project team members have to roll your sleeves up and engage with the stakeholders Focus groups, interviews, surveys, workshops, on the job observation and discussions Find out where they are and whats important to them Determine timing, ability and willingness for stakeholders to adopt the changes

To conduct an effective stakeholder analysis, consider these 7 questions: 1. Who are the individuals or groups that need to be considered or involved at some point in the process? 2. What is their importance to the ultimate success of these efforts? 3. How can you uncover their concerns, issues and potential contribution? 4. If theyre opposing the change or refusing to engage with you directly, is there someone who supports you that could provide a better link? (Who are the key influencers?) 5. What methods of involving and informing stakeholders would help you strike a balance between efficiency and inclusiveness? 6. Who are the losers, meaning the people who will have to give up positions, or people, or a valued way of working? 7. Who are the winners, the people who will gain the most from the change?
19

20

Assessing for Change Readiness: Change Enablers

Definition Sponsorship
R

Change Risk Wheel Example

Commitment
R
G Y R

Key Change Enablers

Sponsorship

Having sponsors/champions who support the change and have visible, active public commitment of the change

Area Ready for Change Opportunities exist to enhance change success Must be addressed to ensure project success

Case for Change

The reason to change, whether driven by threat or opportunity, is instilled within the organization and widely shared through data, demonstration or demand. The need for change exceeds its resistance.

Vision

The desired outcome of the change is clear, legitimate, widely understood and shared; the vision is shaped in behavioral terms

Vision
R Y Y

Y Y Y Y
Project Team

Case for Change

G G Y Y R R Y Y

Commitment

Stakeholders are strongly committed to invest in the change, make it work and demand and receive management attention; stakeholders agree to change their own actions and behaviors to support the change

Change Integration

Changes are integrated with other key initiatives. Processes are in place to capture early learnings and transfer them throughout the organization
R

Communication

Plans and resources are in place to communicate the changes and their timing and impact; appropriate channels have been identified

Systems and Structures

R
Senior Leaders

Change Integration
R
Impacted Stakeholders

Training

Plans and resources are in place to train impacted stakeholders in new roles, systems, processes, etc.

Systems and Structures

21

Foundation and practices are in place to complement and reinforce the change (Measurement, Rewards, Org Design, IT Systems)

Training
Red = Avg. Response Value = 0.00 2.99

Communication
Yellow = Avg. Response Value = 3.00 3.99 Green = Avg. Response Value = 4.00 5.00 22

Why Does There Have To Be Urgency?

Raise the Urgency Level

Recent Harvard research shows that an organization with 100 employees must have at least two dozen people go far beyond the normal call of duty to produce a significant change.

In a company of 100,000 employees, the same is required of 15,000 or more.

Show others the need to change help them see, touch, feel Make the message tangible emotions not just numbers Stop senior management happy talk put more honesty out there Talk about the rewards of capitalizing on the opportunities Highlight performance gaps Use customer and shareholder testimonies

23

24

Communicate, Listen, Repeat

Individual
Meeting Conversation

Impactful Ways to Engage Stakeholders

Vehicles for Stakeholder Engagement

Use a combination of tactics to engage with your stakeholders

Small Group
Advisory Councils Project Teams Task Forces Focus Groups Brown Bag Lunches Discussion Teams Online Real-Time Workgroups Group Town Halls

Large Group
System-wide Networks (ambassadors, change champions) Webinars / web meetings All-Hands Meetings Interactive Website

Have your stakeholders participate all throughout change efforts Give them meaningful roles

Across All
Conference calls Video conferencing Instant messaging Voicemails Social networking Training

Plan for meaningful involvement face to face or at least, person to person interaction
25 26

We are going to throw out some of the rules and give employees more discretion to do the right thing for our customers.

2. Enable & Empower Your People

The most important thing to remember about communicating a new direction is that its most powerful when its communicated through behavior.

5 Increase training to support these roles 5 Enable decision-making for frontline personnel 5 Change the environment when situation changes, the behavior changes 5 Direct your reward systems 5 Reshape your culture 5 Redefine roles and responsibilities so that managers oversee the larger processes rather than detailed work activities 5 Develop people rather than supervise them 5 Align your people and organizational systems to the vision
30

Increase Training to Support Roles

Provide the right training Provide it just-in-time Follow-up support on the job coaching is integral to sustaining change

Enable Decision Making

Help more people become more powerful Provide employees with flexibility and latitude to make decisions that benefit the customer and organization

31

32

Align Your Systems to the Vision

Align your:

One dollar equals SEVEN dollars in repeat business

Performance appraisals Compensation Succession planning Promotions

34

3. Maintain and Sustain Change

Chunk Your Efforts Dont throw too many changes at your stakeholders all at once Commit to not moving forward with next phase until youve reached appropriate level of adoption One bite at a time

Take baby steps

Dont declare victory too soon

Ensure results - accountability is the name of the game

35

Dont Declare Victory Too Soon Often times team starts to disband and efforts start to fizzle after first success is declared Changes in culture can take 3 to 10 years new approaches are subject to revertia

Make People Accountable at all Levels

Build structured ways to talk to your people often Understand whats working and whats preventing them from doing things the new way Use the same stakeholder engagement methods you were using during change Do evaluations every 90 days to see if the changes are sticking Measure and manage look at it 3 ways activities, adoption & business results
38

Key Takeaways

If you think youre too small to make a difference, youve obviously never been in bed with a mosquito.
Michelle Walker

Orchestrate the ebb and flow of change in your organization Make managing change in a systematic way a priority for your initiative. Remember the Four Es Engage, Enable, Empower & Ensure need to go beyond engagement Dont think of this as an initiative; develop the competency so its just part of how you do business
39

Questions?
About Us

Who We Are
Roberts Golden Consulting is an organization performance consulting firm that specializes in helping companies and their people to adapt and succeed in times of change. We leverage our deep expertise in organizational effectiveness and change management to engage employees, build leadership capability and enhance business performance. We help companies to make the turn and sustain the changes.

What We Do

43

44

Our Areas of Expertise

Our Business
Experienced, seasoned consultants with years of experience Serving clients in many industries, including:

Our work spans across many different scenarios. Just a few examples include managing change and transition efforts for organizational culture transformations, business process transformations, mergers and acquisitions, corporate branding efforts and companies working to develop a culture of innovation.

Unlocking your success

We have practical and proven expertise in solutions such as: Organizational analysis & measurement Employee communications Executive alignment Strategy and execution roadmap facilitation Training for employees and management Leadership development Process design and improvement Governance processes Rewards and recognition Performance management Organizational design

45

46

Roberts Golden at a Glance

Contact: Sara M. Roberts President / CEO

Headquarters Location 44 Montgomery Street, Suite 600 San Francisco, CA, USA 94104 + 1.415.641.5523 (office) sara@robertsgolden.com http://www.robertsgolden.com
47

Expertise in employee engagement, inside/out branding, change management and organizational effectiveness. These are the unique skills and experiences Roberts Golden combines to positively influence your employees' attitudes, behaviors and performance for increased business results. We understand that businesses across the globe are frequently faced with many of the same issues and concerns things such as how to address a disengaged workforce or how to effectively minimize the impact to and gain the buy-in of employees in times of change. We have experience tackling a wide variety of these issues and our flexible, scalable approach enables us to meet your objectives through solutions from a rapid 30-day business assessment to a larger-scale effort such as managing change in a merger or reviving a struggling brand. Come talk to us we can help.