CHANGE MANAGEMENT: EMPOWERING ORGANIZATIONS TO DEAL WITH UNCERTAINTY

Transcription

1 CHANGE MANAGEMENT: EMPOWERING ORGANIZATIONS TO DEAL WITH UNCERTAINTY 1 By Woro Ireng Renoati Organization and Management System Manager of SKK Migas

2 THE NATURE OF CHANGE WHAT IS CHANGE? Change is the act or instance of making or becoming different WHY SHOULD AN ORGANIZATION CHANGE? To overcome crisis To improve performance To cope up with new technology To tackle new opportunities Mergers and acquisitions About 70% of all change initiatives fail Blanchard, 2010; Kotter, 2007; Nohria & Beer,

3 WHY MANAGE CHANGE? Performance With change management Performance Crisis Performance Crisis Performance Gap Design Develop Implement Maintain Time Change fails for predictable reasons: people and/or process. Naturally, people prefer status quo over change. However, most people are neutral at the start of the change. The process of the change defines how people will react to the change: resist it or go with it. Change management makes sure change is running on the right track, therefore minimize people s resistance toward change 3 3

4 CHANGE MANAGEMENT WHAT IS CHANGE MANAGEMENT? Change management is a systematic and structured approach in dealing with change to achieve a desired outcome HOW DOES CHANGE MANAGEMENT WORK? Preparing change Managing change Reinforcing change 4 4

5 WHAT HAPPENED? SKK Migas recognize the need to shift from manualbased processes to system-based processes using enterprise resource planning (ERP) INITIAL CONDITIONS Mild sense of urgency Vague vision Fragmented teams Invisible executive support Little sense of ownership PROJECT CHALLENGES Technical issues Time constraints Resource allocations Consistency 5 5

6 SKK MIGAS CHANGE MANAGEMENT CONCEPT A D K A R Awareness Desire Knowledge Ability Reinforcement Communicate the need to change Communicate what s working and what s not working in the organization Communicate the benefits of the new system/process Build momentum Address fears and doubts Learn new technical skill Train the basics Set reasonable targets Start small Implement new skills Adjust processes as needed Celebrate success Reinforce positive behaviors Address resistance ADKAR is a trademark and copyright of Prosci 6 6

7 SKK MIGAS CHANGE MANAGEMENT PLAN A D K A R Awareness Desire Knowledge Ability Reinforcement Project kick-off ERP newsletter ERP desktop wallpaper ERP banner Management attendance and sponsorship Change management workshop Appointed change agent Regular technical meeting Regular coordination meeting Regular management meeting User acceptance test Change agents training Key user and user training Management training Simulation test ERP merchandise Go live celebration Provide support via helpdesk 7 7

8 MEASURING CHANGE CHANGE TRIANGLE Leadership/sponsorship Project management Change management IMPACT OF CHANGE Scope of change Number of impacted employees Variation of change Type of change Degree of process change Degree of technology and system change Degree of job role change Degree of organization restructuring Time frame of change Overall change score 8 8

9 MEASURING CHANGE Before change management After change management 9 9

10 RESULTS 1. SKK Migas ERP went live on schedule 2. Team members were engaged and dedicated to the project 3. Resistance was relatively low and manageable LESSONS LEARNED AND DISCUSSION 1. People and process was the key to success in any change. 2. Frequent and open communication was the greatest contributors to the success of the change. 3. Well-structured and carefully-crafted communication materials were crucial to set users /employees mindset about the upcoming change. 4. Change management competencies should be built throughout the organization through the use of change agents so that users would be able to manage change independently and confidently in their daily activities

11 SKK MIGAS CHANGE MANAGEMENT TEAM 11 11

12 ERP NEWSLETTER 12 12

13 THANK YOU Woro Ireng Renoati 13 13