Change Management. Frank Jeffries

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1 Change Management Frank Jeffries

2 Our Roadmap What s the Big Deal Anyway? Change and our reactions Mental Models and Organizational Identity Change acceptance and process Kotter s Eight Steps to Successful Change Let s Roll the DICE

3 Change is Big Business Google Change Management and you get: 836,000,000 hits There are: Change management consultants Change management journals Change management departments of organizations Change management models Hundreds of em There is even an Association of Change Management Professionals

4 Change is Life Change is driven by: Technology Competition Scarce resources The Economy New Generations Fill in the blank

5 The Big Deal is that to Survive in Business we need to Deal With Change Effectively It is not a matter if if, but when change will come It is unpredictable in many cases We need to adapt and survive

6 Typical employee reaction to change

7 Why is Change so Challenging? Routines give us security Change involves risk Change requires (additional) work Change leads us into the unknown Change is scary

8 The Role of Mental Models We view change through our existing mental models Change requires a different mindset This challenges our assumptions about the organization

9 Mental Models and Organizational Identity Part of the culture How we do things around here What members think is vital to the essential character of the organization Can limit what an organization can do

10 Barriers to Fundamental Change Barrier One: Passive Resistance Passive resistance due to failure to comprehend the change Fundamental change is foreign to the members If it is not linked to some current aspects of identity, risk of failure is greater

11 Barrier Two: Active Resistance Change is perceived to be in basic conflict with valued elements of the current organizational identity Triggers strong negative emotional responses like anger and fear Failures result because change is not framed well, WIIFM is not understood

12 Organizational Identity as a Tool for Change The current identity is the base for resistance Creating an ideal identity can help overcome this resistance Who do we want to be? Creating a shared vision

13 The Identity Gap To be meaningful the gap between who we are and who we want to be needs to be significant Too small of a gap results in the perception there is no need for change, creating inertia Too large a gap will result in perceptions that the change is unattainable, creating stress A significant gap will create positive organizational stress to close the gap

14 The Change Acceptance Zone The change must be large enough to cause members to have a strong desire to close the gap It has to be enough to motivate fundamental change without looking impossible This will be an on-going process to be effective Incremental change is not seen as necessary Revolutionary change is too scary (and expensive)

15 Effective Change Process Selling change can come back to haunt you Rather, have a dialogue and get those affected to understand the change, accept it, and support it You are revising the Psychological Contract Face-to-face is best People many times don t like the change, but if they understand it they will support it

16 Be Clear About Whose Responsibility Change is The manager is responsible for change Facilitation Managing The employee is responsible for doing their best

17 Change Involves People, it is not Imposed on Them Participation, involvement, communication Feedback from employees is critical Empathy and empowerment from management Reinforce and reward behaviors that advance the cause

18 Let s Roll the DICE Up to now we have focused on the touchy-feely side There is a set of hard factors that are important too (Sirkin, Keenan, and Jackson (2005) The Hard Side of Change Management. HBR October, pp ) Paying attention to the soft side of change is necessary, but not sufficient for success There is a correlation between the success (or failure) of change efforts and four factors: Duration Integrity Commitment Effort

19 Duration There is no correlation between the length of time an initiative takes and its success or failure What matters if how it is reviewed Long projects reviewed frequently more often succeed Transformation projects that are reviewed every two months are more likely to succeed If reviews happen less that every 8 weeks they lose momentum Milestones are important and should be marked and celebrated when accomplished

20 Integrity The reliability of the team managers and leaders in championing, managing, and leading the change Having the right people on the teams from executive management to staff Employees go the extra mile to ensure that their normal work gets done in addition to the change program Clear roles, expectations, and commitment is required as well as a reward system for performance Members of the team are carefully selected

21 Commitment Commitment from two groups is a must: Visible backing from the most influential executives Enthusiasm of the people who need to deal with the new systems, processes, or ways of working If you are the champion of a change initiative, You need to be talking up the change initiative at least three times more than you think you need to There needs to be a single company line regarding the initiative ( layoffs will not occur and layoffs are not expected to occur ) Do not underestimate your ability to build staff support

22 Effort Those doing the work of change have jobs to do in addition to the change effort No one should experience more than a 10% increase in workload Exceeding that limit invites trouble Low morale Conflict Look for lower priority work that can be delayed or find help with handling routine priorities

23 Does DICE help? Why, yes it does It was predictive of the success of change efforts in a study of 225 firms It has been used effectively in many others

24 So, to Wrap it All up. We cannot avoid change No one particularly likes it The natural response is to resist it

25 We Don t Want to be Here

26 Successful Change in a Nutshell To be successful we need to pay attention to the DICE Explain WIIFM Involve those impacted Lead from the front show commitment Make it worth their while, reward them for taking the risk and performing

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