Effective Change Management - In Practice

Transcription

1 Effective Change Management - In Practice 1 st July 2011 Presenter: Rowan Teh, Senior Manager Risk Advisory Services

2 Agenda What is change management and transition process? Why is Change Management important? What are some key reasons for employee resistance? What are some best practices for managing change? What is KPMG s approach to Change Management? What are some recommendations academia? 1

3 What is Change Management? Where you are today Process of change Time Where you want to be Change Management activity designed to assist the acceptance and rapid adoption of change. the process, tools and techniques to manage the peopleside of business change to achieve the targeted business benefits, and to realise those benefits effectively within the workplace environment The Process of Change (Hiatt & Creasey, 2003) 2

4 The transition process and emotions ENDINGS EXPLORATIONS NEW BEGINNINGS Denial Anxiety Shock Fear Anger Enthusiasm Energy Hope Impatience Acceptance Frustration Skepticism Confusion Creativity Stress Avoidance 3

5 Why is Change Management important? Source: Best Practices in Change Management, Prosci Benchmarking Report, 2009, 575 companies from 65 countries share lessons and best practices in change management 4

6 Why is Change Management important? New Zealand s first major nationwide Project Management Survey has found that 60 percent of New Zealand companies are failing to achieve the return on their investments in projects. Lack of attention to people factors KPMG New Zealand Project Management Survey

7 Why is Change Management important? Be world class Process optimisations Achieve industry standard Create efficiencies Centralisation Standardisation Offshore Implement best practices Enterprise resource planning The only thing constant in life is change Integration Business transformations Business process reengineering Increase maturity level Lean François de la Rochefoucauld Automation 6 Sigma Performance management Realignments 6

8 What are some key reasons for employee resistance? What you see Low motivation Pessimism Skepticism No response Denial Fear of job loss The Symptoms Buzz increases Productivity drops Missed commitments Minimum effort Feel out of control Fear of loss of status Genuine misunderstanding Conflict of interests Threat to authority Lack of communication Fear of increased responsibility Frustration with the process Power struggles at the top Lack of support from the top What you don t The Root Cause Resistance is Feedback Look Beneath the Surface 7

9 What are some key practices in managing change? Think holistically, act locally i.e. WIIFM (incentivise) Know your stakeholders (internal/external) Follow-through on what you promise Be the change advocate Sell the transition, not just the change Be objective in a subjective world L&P world famous in NZ. Glass is always half full. 8

10 A check list for communication messages... The most important messages to communicate to impacted employees were: 1. Impact to the individual (What s in it for me?) 2. Why the change is happening 3. What is changing (current to future state and transition expectations) 4. Impact to the organisation (benefits and negative) 5. Preparation and support for change 6. Role in the change process and importance of involvement 7. Support through change 9

11 Change leadership myths Commonly held beliefs They already know. We announced it. I told the managers and team leaders. It is their job to tell their staff. We don t know the details ourselves so there is no point saying anything until everything has been decided. 10

12 Being objective with Change Management 11

13 What is KPMG s approach to Change Management? Business Case & Vision for change Change Risk Analysis Change Strategy Benefit Realization & Sustainable Performance People Transition & Workforce Effectiveness Global Behavioral Change Management Methodology Change Leadership Stakeholder Management Organizational Integration Involvement Strategies Behavioral Change Management is about getting people ready, willing and able to deliver sustainable business benefit 12

14 Recommendations to the academia Change management is not just HR! Change management should be taught in most disciplines e.g. engineering... 13

15 Thank you Presentation by Rowan Teh

16 2011 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. Printed in New Zealand. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International Cooperative ( KPMG International ). TM Rugby World Cup Limited All rights reserved.