Workplace Change Management. November 11, :00-1:30 p.m.
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1 Workplace Change Management November 11, :00-1:30 p.m.
2 Today s Speakers Glenn Dirks Director, Consulting Services Facet Teletrips Peter Miscovich Managing Director Jones Lang LaSalle Susan Mitchell-Ketzes Senior Vice President, Director HOK
3 Agenda Change Management 101 Building the Business Case A How To Guide to Workplace Change Management Lessons Learned
4 Change Management 101 Enterprise change is accelerating for most organizations. Mergers, acquisitions, new products and processes and responding to customer demands all require change. Unfortunately, mastery of change is a core competency for few enterprises. Gartner Group, Leading Enterprise Change, October 2005
5 The Nature of Work is Changing New Work Realities New Work Requirements Globalization is driving new ways of collaborating Technology is enabling new work behaviors Workforce is anywhere/everywhere Work activity is more team-oriented Major constraint time Business continuity is a growing concern Growing desire for flexibility and choice Sustainability is driving demand for mobile work which drives additional need for Change Management Workplace Work is something you do, not somewhere you go... page 5
6 Changing Workplace Response New challenges require a different response Need for Senior Leadership sponsors to manage key resources Policies and resources that support flexibility and mobility Integrated teams representing Technology, Work Space and Work Process New workplace and organizational designs enabling the workforce in an integrated system All supported by a comprehensive workplace change management strategy to optimize effectiveness Integrated Workplace Team HR CRE IT Other Key Partners: Finance Corporate Communications Legal and Risk Management Compliance Sustainability page 6
7 What Is It and Why Do It? Change Management provides a systematic use of knowledge, tools, and processes to help organizations achieve their business strategies in the face of competitive forces. Change is managed in order to predict and address the issues and problems at each stage of new initiatives. Change Management facilitates buy-in, adoption and minimizes disruptions. It helps with the rate of change page 7
8 Why Change Management? Change Management on some scale is a key component to the overall success of all workplace initiatives. Defines vision and value proposition Assesses change readiness and develops change strategy tailored to culture and situation Addresses resistance through planned communications and skill building tactics creating awareness and understanding Engages the organization at the highest levels carefully managing stakeholder involvement, alignment and commitment Minimizes work disruption and impact on productivity Increases velocity of change Mitigates risk Enhances employee satisfaction and performance page 8
9 Question In your organization, what typically are the greatest barriers to successful workplace projects? page 9
10 Substantial Barriers to Change Change Management helps overcome common barriers and rapidly realizes benefits associated with wide-scale change efforts. Progress is a nice word. But change is its motivator. And change has its enemies. -Robert F. Kennedy Source: Information Week page 10
11 Impact of Workplace Change Management The Workplace Change Curve One of the primary objectives of Workplace Change Management is to minimize the time organizations spend in the Valley of Despair and mitigate its depth. P r o d u c t i v i t yy New Workplace Program Initiative Fear of the Unknown Danger Zone Valley of Despair Benefits Current Realization Baseline Learning New Workplace Implementation page 11 T i m e
12 Workplace Change Resources Change Management Resources Technology And HR CLIENT Business Units CLIENT Consulting Resources Business Unit Leaders Administration Management Change Communication Business Units and Employees Orientation/ Training Focus on the integration of a variety of disciplines and contributors. This is NOT all about CRE and IT. CRE and Workplace Resources Feedback Written Face to Face Voice mail Focus Groups Intranet Video Need for Change Shared Leadership Employee Cultural + Vision + Commitment + Involvement + + Alignment Performance Measures SUCCESSFUL LASTING CHANGE page 12
13 Building the Business Case
14 Context Building the Business Case for executive management and stakeholders helps gain their ownership of the workplace change program. Workplace Change Management is woven through the workplace project process and tied to data collecting and key diagnostics Workplace Assessment helps characterize and determine the size of the opportunity, the magnitude of the change and the organizational readiness Workplace Assessment steps create the foundation for the development of the Business Case for Workplace Change Management page 14
15 Workplace Change Process Work Profile Assessment Employee Willingness page 15 Preference for work schedules, locations and voice in work/life issues Workplace Ability Work more flexibility, in locations other than primary office and be effective working in new ways Managerial and Organizational Support From manager and other group members Workspace Utilization Assessment Conduct Observational Studies Observational; physical walk-throughs Conduct Electronic Bed Check / Systems in-use Studies Keyboard, mouse movement Conduct Badge-in Studies Security badge access swipe frequency
16 Workplace Change Process Business Culture and Organizational Readiness Assessment creates awareness, assesses employee and organization attitudes. Organizational Profile Readiness Questionnaire Change Management Methodology HR Policies and Practices Review Performance Management Systems Review Important Change Management Questions to Address How will proposed workplace changes impact the current culture? How will these cultural issues be addressed? Important Are the new workplace strategies very different from the existing workplace? If so, what are the major differences? Do employees understand why the workplace is being transformed? Do employees understand the benefits to be gained through workforce transformation for the organization, for their work group, and for themselves as individuals? Is there visible leadership support for the change? What new skills will be required of management and employees as a result of the workplace changes? What communication vehicles are being used to help different groups (audiences) understand the issues related to this change? page 16
17 Workplace Change Process The workplace change management process helps employees to understand: What aspects of their work environment are changing How they will need to work differently What behaviors will need to change What role they will play in decision-making regarding the new workplace strategy The most effective change management activities include the following: One-on-one discussions with supervisor Experiential activities (laboratory simulation of virtual workplace environment) Orientation team meetings Information-intensive meetings with all employees Technology training page 17
18 Workplace Change Process High Low Degree of Change Advocacy Fully committed to taking the change further and becoming the advocate of change Ownership Being involved in deciding how to change might be implemented Buy-In Understanding implications of change and supporting buy in Awareness Not supporting change, but not getting in the way of change Degree of Change Management High page 18 To ensure successful implementation and adoption of a new workplace program, leadership must be committed to its development and evolution and involved throughout the change process.
19 Making the Case for Change: Enrolling Executive Leadership Key activities Executive Leadership Vision and Strategy Develop Executive Leadership vision and strategy Build strong business case for the workplace program for Executive Leadership to be able to own and sponsor Develop workplace program that supports the way that people are really working and occupying space Provide comprehensive change management across all important stakeholder groups to ensure successful implementation: CRE, HR, IT, Finance, Business Units Drive improve cost management Key selling points / benefits Support the way people are working Provide work/life flexibility solutions to improve individual performance Drive and improve cost management and real estate cost efficiencies over time Reinforce the culture of the organization through the new workplace program Enhance brand and image of the company externally and internally through the new workplace program Improve employee satisfaction through the workplace change Measure satisfaction upon program implementation page 19
20 Business Case Metrics: Measuring What Matters page 20
21 A How To Guide for Workplace Change Management
22 Critical Success Factors A number of factors should be considered when designing and implementing a Workplace Change Management Program to ensure success: Determine the type of change required to improve performance Establish the rate of change depending upon existing resources Establish Leadership vision and ownership Develop an effective communications strategy Ensure ownership of stakeholder groups Program Management Build Commitment Build Leadership Vision Develop Sponsorship Workplace Change Management Develop Employee Buy-in Manage Change Pace Remove Barriers Communicate page 22
23 Workplace Change Management Phased Activities Program Initiation Announcement of program Initial communications Address potential concerns Develop Mock Up and receive feedback from employees Develop workplace pilot programs and receive feedback from employees Executive leadership sponsorship and buy-in Pre-Implementation Communications New workplace behaviors Mobility behaviors for workers Non mobile workers Technology New Management skills Orientation Training Team workshops Manager orientation programs Post-Implementation Feedback Post implementation Feedback from mobile employees and non mobile workers Ongoing Communications Refinement of virtual collaboration skills New Management skills: Goal Oriented page 23 Communication Program for Employees Continuous Evolution and Refinement Workplace Program Development & Change Management
24 Change Management Key Steps Set Business Context Conduct key executive interviews to document business trends and potential impacts of new work realities Communicate the general benefits of mobile work Outline potential organizational changes and barriers associated with deploying a mobile work program Secure Executive Endorsement Conduct stakeholder analysis to identify and understand key individuals with greatest impact on your program Enroll high-profile vocal champion for program Analyze Stakeholders Identify key stakeholders and assess their position on future workplace strategies Develop action plan to manage key stakeholders Set expectations and secure endorsements Communication Strategy Develop key messages Match messages with audience Select delivery strategies to match message and audience Educate and Train Identify new skills and behaviours required Develop and deliver training strategies Implement and Monitor page 24
25 Change Management: Awareness to Ownership Process Overview High C O M M I T M E N T Low page 25 Clearly defined vision and measurable strategic goals help in developing the change management program to communicate to all stakeholders Data Collection 4 National / Regional Leadership interviews 4 Lessons Learned from previous workplace programs 4 Survey data from employees 4 Cross functional employee focus groups held in multiple locations representation 4 Executive leaders focus groups for functions and locations Establish Contact and Begin Communications Analysis and Findings 4 Emerging Guiding Principles 4 Work styles and behavior patterns 4 Workplace preferences and attitudes 4 Current performance challenges 4 Leading workplace practices 4 Preliminary workplace scenario development 4 Socialize with Leadership for preliminary reactions Build Awareness Stakeholders are aware of the basic scope of the new workplace program Pilot Workplace Mock Up Workplace 4 Design and construct mock-up Development 4 Performance data and 4 Workplace Solution feedback collection Criteria 4 Performance data and 4 Workplace Scenario feedback analysis development and 4 Revise and refine firmwide workplace ranking 4 Architectural guidelines Interpretation and fullfloor test fits 4 Share mock-up feedback with regional and 4 Final Scenario and national executive architectural concept leadership development 4 Develop appropriate 4 Draft company wide focused communications preliminary workplace per level of organization guidelines based upon mock up 4 Socialize with feedback Leadership and Executive Management Understanding Stakeholders understand the benefits of the new workplace program and how it impacts the company T I M E Positive Perception Stakeholders understands how the new workplace program benefits them Implementation 4 Business case development qualitative and quantitative analysis 4 Implementation strategy development 4 Change management and communications plan and execution program 4 Final firm-wide workplace guidelines 4 Socialize and communicate with Executive Management and Regional Management Stakeholders Action Stakeholders are willing to work and implement the workplace program Ownership of Stakeholders Institutionalization As workplace program becomes the new status quo
26 Best Practices To achieve successful and long lasting change, companies need to address both organizational and individual employee transitions. A clear vision as well as strong leadership commitment and involvement is critical to ensure the success of a mobile or distributed work program. It is beneficial to define organizational performance levels and measures of success associated with the change process at each stage of implementation. Engaging employees throughout the change process will enhance their support and commitment to the mobile or distributed work program. It has been proven that organizations who devote greater resources to change management will have employees who are more satisfied with and more committed to the new workplace strategy page 26
27 Lessons Learned Experience is a hard teacher. She gives the test first and the lessons afterwards. Anonymous
28 Lessons Learned Change is hard and takes more time and energy than you ever expect. Don t assume that since you ve told them already you don t need to tell them again. Don t rely on formal presentations and written materials; nothing replaces the personal touch. Don t assume that change management starts with move-in and stops after it. It begins when the project begins and continues after occupancy. Don t focus on the physical design and technology and shortcircuit the cultural issues. Executive endorsement is critical to success. Employees need to understand the WIIFM (What s In It For Me?) in order to begin the buy-in process. Doing it right is hard work..( years The ROI is long term (3-5 page 28 Frank Becker, C. Tennessen, Managing Workplace Change, Cornell University International Workplace Studies Program
29 Lessons Learned Effective partnering with RE, IT, HR is critical. Not all managers have the key skills to lead in this environment without training; management by line of sight is not an effective strategy. Mandates can cause significant, long-term issues. Flexible work is not appropriate for all work profiles and/or work styles; use work profile assessment to determine viability. Affiliation and social connectivity are critical to acknowledge and address. Cultural and geographic issues have significant impacts on local implementation; one size does not fit all. page 29
30 Lessons Learned Create realistic expectations and manage them. Leaders who fail to make management decisions well understood by employees may not appreciate how meaningless they can appear over time. Communication is everything. Honest communication is critical to helping employees adapt to change and make workplace transitions more successful. Without detailed communication, the employee is not going to know what s really happening and how it will affect them. They will assume the worst in the absence of communication. Give employees opportunities to ask questions and voice concerns during the entire workplace change management process. Keep workplace program momentum going create objectives, incentives, milestones and remember that forced change creates employee resistance. page 30
31 Questions & Answers What questions, comments or take-aways do you have as we wrap up this webinar? Push *1 on your telephone key pad to comment or ask your question OR your comment/question by clicking on the question icon in the lower right corner of your screen. Type your question or comment in the window that appears, and then click send. Submitted questions will be answered verbally as time allows. page 31
32 Thank You for Your Participation! We wish to thank the many clients and colleagues over the years who have who have shared, tested, trusted, resisted, measured and otherwise improved the Workplace Change Management tools, processes and findings included here. Special thanks to Dr. Frank Becker and the Cornell International Workplace Studies Program (IWSP). Please feel free to contact us with your questions or comments. Glenn Dirks Director, Consulting Services Facet Teletrips Tel: Peter Miscovich Managing Director Jones Lang LaSalle Tel Susan Mitchell-Ketzes Senior Vice President and Director HOK Advance Strategies Tel page 32
33 Webinar Schedule by date and topic December 9 th, LEED: Managing risk in new construction January 13 th, Workplace: Physical solutions February 10 th, LEED: Managing risk in commercial interior projects March 10 th, Workplace: Workforce trends & sustainability April 14 th, LEED: Managing risk in existing building projects May 12 th, Workplace: Metrics & the business case June 9 th, LEED: Leveraging LEED to improve workplace performance July 14 th, Workplace: Impact on culture page 33
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