A Structured Approach to Change Management. Prosci

Transcription

1 Structured pproach to Change Management Prosci 1

2 2007 Copyright Prosci and Bill Cigliano 2

3 genda Foundation efining change management Prosci Project Change Triangle (PCT) Change as a process Two perspectives required for change management Individual Organizational oles in change management Sneak peek: Change Portfolio Management 3

4 Change management is: Notes from the IMC ffinity call on March 28th To us, change management is fully preparing our internal customers to adopt and embrace new IT products, services, and processes through training, communication, and marketing. Change Management is a process to accelerate and align the system to move from the current to desired state. Change Management is a body of knowledge, with associated processes and tools, that enables organizations to better achieve desired sustainable results from change initiatives through improved engagement with stakeholders. Change Management is a set of planned actions that increase the probability of success of implementation (beyond just people issues). The 3 keys to success are: see the change, move the change, and finish the change. CM is a structured and strategic approach to initiating the change process and team/individual behavior associated with change - To minimize the impact and maximize the benefits. 4

5 Change management is: The process, tools and techniques to manage the people-side of change to achieve the required business outcome. Change management is NOT: Version control for IT hardware and software Just training people Group therapy sessions Equal to communications Just managing resistance n umbrella term that covers everything related to making change The soft stuff that isn t my job! 5

6 Change management and Project management Complimentary disciplines with a common goal: Improving the organization Getting to a desired future state Project management Focus: Technical side of moving from current state to future state Solution is designed, developed and delivered effectively Change management Focus: People side of moving from current state to future state Solution is embraced, adopted and utilized effectively 6

7 Both have processes and tools Process: Initiation Planning Executing Monitoring/controlling Closing Tools: Statement of work Project charter Business case Work breakdown structure Budget estimations esource allocation Schedule and tracking Project management Current Transition Future Change management Process: Organizational: Preparing for change Managing change einforcing change Individual: Tools: Individual change model eadiness assessment Communication plans Sponsorship roadmaps Coaching plans Training plans esistance management einforcement 7

8 Three elements of successful projects Prosci s PCT Model Project Change Triangle What is your PCT score? 8

9 Leadership and sponsorship 1. The change has an executive sponsor. 2. The executive sponsor has the necessary authority over the people, processes and systems to authorize and fund the change. 3. The executive sponsor is willing and able to build a sponsorship coalition for the change, and is able to manage resistance from other managers and supervisors. 4. The executive sponsor will actively and visibly participate with the project team throughout the entire project. 5. The executive sponsor will resolve issues and make decisions relating to the project schedule, scope and resources. 6. The executive sponsor can build awareness of the need for the change (why the change is happening) directly with employees. 7. The organization has a clearly defined vision and strategy. 8. This change is aligned with the strategy and vision for the organization. 9. Priorities have been set and communicated regarding this change and other competing initiatives. 10. The sponsor will visibly reinforce the change and celebrate successes with the team and the organization. Score: (total possible is 30) ey: 3 = exceptional 2 = adequate 1 = inadequate Project management 1. The change is clearly defined including what the change will look like and who is impacted by the change. 2. The project has a clearly defined scope. 3. The project has specific objectives that define success. 4. Project milestones have been identified and a project schedule has been created. 5. project manager has been assigned to manage the project resources and tasks. 6. work breakdown structure has been completed and deliverables have been identified. 7. esources for the project team have been identified and acquired based on the work breakdown structure. 8. Periodic meeting are conducted with the project team to track progress and resolve issues. 9. The executive sponsor is readily available to work on issues that impact dates, scope or resources. 10. The project plan has been integrated with the change management plan. Score: (total possible is 30) 9

10 Change management 1. structured change management approach is being applied to the project. 2. n assessment of the change and its impact on the organization has been completed. 3. n assessment of the organization's readiness for change has been completed. 4. nticipated areas of resistance have been identified and special tactics have been developed. 5. change management strategy including the necessary sponsorship model and change management team model has been created. 6. Change management team members have been identified and trained. 7. n assessment of the strength of the sponsorship coalition has been conducted. 8. Change management plans including communications, sponsorship, coaching, training and resistance management have been created. 9. Feedback processes have been established to gather information from employees to determine how effectively the change is being adopted. 10. esistance to change is managed effectively and change successes are celebrated, both in private and in public. Score: (total possible is 30) ey: 3 = exceptional 2 = adequate 1 = inadequate Score (out of 30) Leadership: Project management: Change management: Score interpretation: < 20 High risk / jeopardy - needs immediate action lert / possible risk - needs further investigation > 25 Strength - should be leveraged and maintained 10

11 What does your PCT score mean? Prosci PCT Profile Leadership / Sponsorship Profile level analysis: Plot your scores on the radar graph. The shape of your triangle provides insights into the health of the project. Project Management Change Management Questions that scored a 1 : Question level analysis: Which questions scored a 1 in the assessment. Each of the questions dictate specific actions that should be taken to improve the health of the project. 11

12 Prosci PCT Profile Leadership / Sponsorship Prosci PCT Profile Project Management Change Management Leadership / Sponsorship Prosci PCT Profile 10 0 Leadership / Sponsorship 30 Project Management Change Management Prosci PCT Profile Project Management Change Management Leadership / Sponsorship Prosci PCT Profile 10 0 Leadership / Sponsorship 30 Project Management Change Management Prosci PCT Profile Project Management Change Management Leadership / Sponsorship Project Management Change Management 12

13 dding the executive role 13

14 few more advanced applications Single user With a group Over time Project launch cross the organization Pre-implementation 10 Investment vs risk analysis Highest risk lpha 7 Beta Gamma Post-implementation isk factor 5 4 elta Epsilon Zeta Lowest risk Total investment in millons Prosci

15 Change as a process Where you want to be Where you are today Process of change Time Current Transition Future 15

16 The power of the current state The current state defines who we are. The current state is where we have been successful. The current state is comfortable. The current state is predictable. Our current personal and professional plans are based on the current state. 16

17 The uncertainty of the future state The future state is not fully defined. The future state is worrisome. The future state may not match my personal and professional goals. 17

18 If you want to make enemies, try to change something. - Woodrow Wilson 18

19 The transition state is: Messy isorganized Less productive Emotionally charged 19

20 Who lives in each state of change Current Transition Future Who in the organization lives in the: Future state? Transition state? Current state? What are the implications on our actions and what we talk about? 20

21 States of change: Two levels Organizational Current Transition Future d hoc processes Old operating model Generalists in the call center No web interface for suppliers Two different companies ocumented and managed processes New operating model Specialists in the call center Supplier website integrated into supply chain Merged organization Typically we take an organizational perspective 21

22 In reality, each impacted employee has their own current and future state Organizational Current Transition Future How do I do my job today? How will I do my job after the change? Current Transition Future Individual 22

23 critical perspective Organization Future Is actually Current Transition Future Bob Current Transition Future Sue Current Transition Future John Current Transition Future Emily 23

24 States of change analysis For a project you are currently supporting: escribe the organizational states of change Current Transition Future escribe the individual states of change for one person impacted by this change Current Transition Future 24

25 Organizations don t change. People within organizations change! 25

26 If: The organization s future state is the culmination of many individual future states The organization s future state can only be achieved if individuals change their day-today work processes and behaviors What can we do about it? 26

27 Effective change management requires two perspectives Individual perspective How does one person makes a change successfully? Organizational perspective What tools we* have to help individuals make changes successfully? * we = internal consultants, change managers, project leaders and team members, H, O, training, communications, managers, supervisors 27

28 Individual change management 28

29 Individual change management Centerpiece of success The secret to successful change lies beyond the visible and busy activities that surround change. Successful change, at its core, is rooted in something much simpler: How to facilitate change with one person. From : a model for change by Jeff Hiatt vailable at the Change Management Learning Center or mazon 29

30 The five building blocks for successful change wareness esire nowledge bility einforcement 30

31 wareness wareness of the need for change. What is the nature of the change? Why is the change happening? What is the risk of not changing? wareness esire nowledge bility einforcement 31

32 esire esire to support the change. Personal motivation to support the change Organizational drivers to support the change wareness esire nowledge bility einforcement 32

33 nowledge nowledge on how to change. nowledge, skills and behaviors required during and after the change Understanding how to change wareness esire nowledge bility einforcement 33

34 bility bility to implement new skills. emonstrated ability to implement the change Barriers that may inhibit implementing the change. wareness esire nowledge bility einforcement 34

35 einforcement einforcement to sustain the change. Mechanisms to keep the change in place ecognition, rewards, incentives, successes wareness esire nowledge bility einforcement 35

36 Exercise Personal worksheet Complete the exercise for a change you would like to see happen with a friend or family member. 36

37 pplying to a personal change Personal Change Worksheet The best way to understand the usefulness of the model is to apply it to a personal situation. Using a situation you are close to will help separate the key elements of the model. Begin by identifying a change you are having difficulty making in another person (a friend, family member, neighbor or work associate). Complete the worksheet to the best of your ability, rating each element on a scale of 1 (e.g. no awareness) to 5 (e.g. complete awareness). Be sure you select a change you have been trying to make happen that is not working regardless of your continued efforts. Briefly describe a personal change in behavior you are trying to facilitate with a friend, family member, neighbor or work associate. 37

38 W E N E S S List the reasons you believe this change is necessary. eview these reasons and ask yourself the degree to which the person you are trying to change is aware of these reasons. ank on a 1 to 5 scale. wareness ank E S I E List the factors or consequences (good and bad) for this person that create a desire to change. Consider these motivating factors, including the person s conviction in these areas. ssess the desire to change. ank on a 1 to 5 scale. esire ank N O W L E G E List the skills and knowledge needed for the change, both during and after the transition. ate this person s knowledge or training in these areas. ank on a 1 to 5 scale. nowledge ank 38

39 B I L I T Y Considering the skills and knowledge from above, evaluate the person s ability to perform or act in the new way. re there any barriers inhibiting the person s ability? To what extent does the person have the ability to implement the new skills, knowledge and behaviors. ank on a 1 to 5 scale. bility ank E I N F O C E M E N T List the reinforcement that will help to retain the change. re incentives in place to make the change stick? re there incentives to not change? To what degree are reinforcements in place to support and maintain the change. ank on a 1 to 5 scale. einforcement ank Notes: 39

40 Transfer your scores from each stage to the table below. Take a moment to review your scores. Highlight those areas that scored 3 or less and identify which is the first area with a score of 3 or less. This first area will be your primary focus. Create a bar graph below showing your change profile. Brief description of the change: Score from worksheets 1. wareness of the need to change? Notes: 2. esire to make the change happen? Notes: 3. nowledge about how to change? Notes: 4. bility to change? Notes: 5. einforcement to maintain change? Notes: 6 To create an profile bar graph, mark your score for each element and shade the area below the mark to create each bar. The example below is of a profile with =4, =5, = 2, =1, =4. Example profile: wareness esire nowledge bility einforcement wareness esire nowledge bility einforcement 40

41 41 on different sizes of change Change with one person Or five people Or twenty people Or 1000 people

42 ole of in organizational change Change management planning iagnosing gaps eveloping corrective actions brings a results orientation to managing the people side of change What we are trying to achieve, not what we are doing 42

43 Organizational change management 3-phase process for: - Preparing for change - Managing change - einforcing change 43

44 Organizational process foundation Input: Output: change to how the organization operates and does work. Online H benefits system IT system Strategic plan EP Merger or acquisition New product Productivity improvement initiative Change management strategy Change management plans einforcement and recognition 44

45 Phase 1: Preparing for change Understanding the nature of the change Understanding the groups being changed Identifying risks eveloping special tactics Creating the necessary support structures team and sponsor model 45

46 Change management readiness assessments Characteristics of the change + ttributes of the organization = Situational wareness 46

47 Change characteristics assessment Mark your location on the following spectrum. If you fall on the right of the spectrum, your project will require more change management resources and activities than if you fall on the left of the spectrum. This assessment result will be used to customize your change management strategy and activities. ecord your assessment score. Scope of change Workgroup epartment ivision Enterprise Number of impacted employees Less than 10 Over Variation in groups that are impacted ll groups impacted the same Groups experiencing the change differently Type of change Single aspect, simple change Many aspects, complex change egree of process change No change 100% change

48 egree of technology and system change No change 100% change egree of job role changes No change 100% change egree of organization restructuring No change 100% change mount of change overall Incremental change adical change Impact on employee compensation No impact on pay or benefits Large impact on pay or benefits eduction in total staffing levels No change expected Significant change expected Timeframe for change Very short (<month) or very long (> year) 3 month to 12 month initiative Sum of points for change characteristics assessment (out of 60 total): Note: score of 35 or higher is considered a large change that will require more change management resources and activities to be successful. 48

49 Organizational attributes assessment Perceived need for change among employees and managers Compelling business need for change is visible employees are dissatisfied with the current state Employees do not view change as necessary employees are satisfied with the current state Impact of past changes on employees Employees perceive past changes as positive Employees perceive past changes as negative Change capacity Very few changes Everything is changing underway Past changes Changes were successful and well-managed Many failed projects and changes were poorly managed Shared vision and direction for the organization Widely shared and unified vision Many different directions and shifting priorities esources and funding availability dequate resources and funds are available esources and funds are limited Organization s culture and responsiveness to change Open and receptive to new ideas and change Closed and resistant to new ideas and change

50 Organizational reinforcement Employees are rewarded for risk taking and embracing change Employees are rewarded for consistency and predictability Leadership style and power distribution Centralized istributed Executives/senior management change competency Business leaders demonstrate effective sponsorship on change projects Business leaders lack sponsor skills and knowledge Middle Management change competency Managers are highly competent at managing change Managers lack knowledge and skills for managing change Employee change competency Employees are highly competent at managing change Employees lack the knowledge and skills for managing change Sum of organizational attributes assessment (out of 60 total): score of 35 or higher indicates a change resistant organization that will require more change management for the project to be successful. 50

51 isk assessment Change characteristics score: Organization attributes score: Change resistant Medium risk High risk Organizational ttributes 35 Change-able Low risk Medium risk Small Incremental 35 Change characteristics Large isruptive Gives direction to rest of change management activities 51

52 Team structures Sponsor Project team CM 1. Training the team on change management Sponsor 2. Understanding the business issues and business solution Project team CM 52

53 Sponsor coalition COO Primary Sponsor T.J. U.W. S.P. M.B. E.G. E.T..B. G.F. P.O. I.T..C. W.. T.L. C.H. B.U. Logistics Sales Sales egion 1 egion 1 Sales egion 2 MFG Finance 53

54 Phase 2: Managing change Communication plan Sponsor roadmap Coaching plan Training plan esistance mgmt plan 54

55 Connecting individual and organizational CM Change management tools Communications phases of change wareness Sponsor roadmap esire Coaching nowledge esistance mgmt bility Training einforcement 55

56 Phase 3: einforcing change Compliance audit reports and employee feedback Corrective action plans fter action review Transition management 56

57 Change management methodology summary We utilize a structured process and set of tools (Organizational change mgmt) To encourage each employee impacted by the change to embrace, adopt and utilize it (Individual change mgmt) 57

58 So, the who question remains: Who in the organization plays a role in: Current Transition Future Current Transition Future Current Transition Future Current Transition Future 58

59 Change management requires a system of doers Executives and senior managers Middle managers and supervisors Change management resource/team Project team Project support functions Each gear plays a specific role based on how they are related to organizational change 59

60 Change mgmt resource/team Executives and Middle managers senior managers and supervisors Change management resource/team Project Project support team functions pply a structured methodology Prepare for change Manage change einforce change Enable the other doers Execs and senior mgrs Middle mgrs and supervisors Project team 60

61 Executives and senior mgrs Executives and Middle managers senior managers and supervisors Change management resource/team Project Project support team functions 1. Participate actively and visibly throughout the project 2. Build a coalition of sponsorship and manage resistance 3. Communicate directly with employees * From the 2007 Best Practices study Not just signing checks and charters! 61

62 Middle mgrs and supervisors Executives and Middle managers senior managers and supervisors Change management resource/team Project Project support team functions ole 1 Communicator ole 2 dvocate ole 3 Coach ole 4 Liaison ole 5 esistance manager * From the 2007 Best Practices study Macro top-down changes Micro daily changes Executives and senior leaders Executives and senior leaders Middle managers and supervisors Middle managers and supervisors Front-line employees Front-line employees 62

63 Project team Executives and Middle managers senior managers and supervisors Change management resource/team Project Project support team functions 1. esign the actual change 2. Manage the technical side Charter, business case, schedule, resources, work breakdown structure, budget, etc. 3. Engage with CM team/resource 4. Integrate change mgmt plans into project plan Project management Current Transition Future Change management 63

64 Project support functions Executives and Middle managers senior managers and supervisors Change management resource/team Project Project support team functions Bring specific experience, knowledge, tools and expertise to the project Sometimes act as the change management resource ey pieces of the technical and people puzzles Examples H, O, OE, Training, Communication, SMEs 64

65 Executives and Middle managers senior managers and supervisors Change management resource/team ll gears must be moving to drive successful change Project team Project support functions emember the objective!!! Employees make a personal change Current Transition Future Current Transition Future Current Transition Future Current Transition Future so that Projects meet objectives Business results are achieved OI realized On time and on budget 65

66 Final observation on roles Employee-facing roles Executives and Middle managers senior managers and supervisors Change management resource/team Project Project support team functions One-to-one interactions One-to-many interaction Observable behaviors Enabling roles Executives and Middle managers senior managers and supervisors Change management resource/team Project Project support team functions Creation and implementation of plans that are executed by the employee-facing roles 66

67 oles summary 1. pply methodology 2. Formulate strategy 3. evelop plans 4. Support other doers 1. uthorize and fund 2. Participate actively and visibly 3. Create coalition 4. Communicate directly 1. Communicator 2. dvocate 3. Coach 4. Liaison 5. esistance manager Executives and senior managers Middle managers and supervisors Change management resource/team Project team Project support functions 1. esign the change 2. Manage technical side 3. Engage with CM 4. Integrate CM 1. Experience 2. nowledge 3. Tools 4. Expertise 67

68 ecap Participants who met or exceeded OBJECTIVES Why change management? What is change management? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 17% 45% 75% 88% Poor Fair Good Excellent Overall effectiveness of change management program ata from Prosci's 2007 Best Practices in Change Management benchmarking study Who does change management? Executives and Middle managers senior managers and supervisors Change management resource/team Project Project support team functions 68

69 Next steps for applying a structured methodology for change management Free weekly webinars Membership distribution list Certification program Methodology & tools Books & reports One hour sessions focused on a particular change management topic ecent sessions: Methodology overview, Seven principles of change management, oles in change management, pplying, Managing resistance, Connecting change management to business results, Enterprise Change Management Weekly tutorials and announcements Become a member of the Change Management Learning Center for free at: 3-day intensive program where you apply the tools and methodology to a real project you are supporting elivered at your location or in an open-enrollment format at venues across the US Earn 2.4 CEUs, 24 PUs and 24 HCI credits Change Management Toolkit Hardcopy 3-ring binder with C-OM step-by-step instructions, templates and assessment Change Management Pilot 2008 Online tool with Prosci methodology and downloadable templates, assessments, presentations and elearning Best Practices in Change Management 2007 benchmarking study with lessons learned and best practices from 426 participants : a model for change definitive work on the model and how it can be applied Change management: the people side of change foundation and introduction to applying structure to individual and organizational change 69

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