Managing Change. Gabrielle K. Gabrielli, Ph.D. 18 November 2010

Transcription

1 Managing Change Gabrielle K. Gabrielli, Ph.D. 18 November 2010

2 Ground Rules 1. Turn any cell phones or pagers to the off or vibrate position. 2. Listen actively. 3. Participate to the fullest of your ability. 4. Keep an open mind.

3 Objectives By the end of this session, participants should be able to: Describe how to achieve optimum organizational performance in today s environment Achieve effective communication in times of adversity Reduce resistance and increase buy-in for change efforts Determine your adversity quotient

4 Budget Customer Expectations Personnel Relationships Priorities Change Procedures Policies Economy Technology

5 Agenda 1300 Ground Rules, Learning Objectives, Review and Connections 1315 Change Management Overview, Benefits, Barriers 1345 Overcoming Adversity Activity Assessment 1430 Break 1445 Fear, Resistance, and Other Human Barriers to Change 1530 Working through Change Activity 1600 Applying Strategies at Danfoss Turbocor 1645 Course Wrap-Up

6 Review: 10 Steps for Great Decisions 1. Enlist everyone. 2. Discover shared hopes. 3. Uncover the real issues. 4. Identify all options. 5. Gather the right information. 6. Get everything on the table. 7. Write down choices that support shared hopes. 8. Map the solutions. 9. Look ahead. 10.Stay charged up.

7 During Times of Change... Gossip goes from 19% of our day to 40% We drop from being 60% efficient to 15% efficient Organizations lose, on average, 2 hours of productivity per employee per day Bureau of Labor Statistics

8 Activity: Quick Change Pair in A s and B s. In 60 seconds, partners A will change 5 things about themselves. Keep your back to B s so that they can't see you. In 60 seconds, B s will see if they can identify the 5 things that A s changed. In 60 seconds, A s will change 5 more things about themselves.

9 "Things alter for the worse spontaneously, if they be not altered for the better designedly." Sir Francis Bacon

10 Complete the Adversity Quotient Assessment

11 Change Change happens. There are 3 categories of people: Those who embrace change. Those who deal with it. Those who complain about it.

12 Influencing Change in Chaos Avoid attempts to predict, control, or manipulate events. Recognize opportunities for creativity in the midst of chaos. Appreciate aspects of changing conditions that add a sense of mystery and fun to our lives. Use subtle influences to create widespread impact. Use collaboration and self-organization to build community in chaotic situations. Appreciate the paradoxical nature of life, and harness the power of polarity management. Create an environment in which psychological flow can occur, even in times of significant change. John Briggs and F. David Peat. Seven Life Lessons of Chaos: Spiritual Wisdom from the Science of Change.

13 13 Human Change Management

14 "The soul would have no rainbow had the eyes no tears. Native American Proverb

15 Change projects do not have a successful track record. 50% to 75% of all Manufacturing Technology Projects in the U.S. fail. 50% to 75% of all re-engineering efforts do not deliver the expected results. Only 16% to 24% of all Information Systems and Technology projects are completed successfully. Of those completed, 52.7% will cost 189% of the original estimate/budget (over runs). Completed projects deliver only 42% of the original requirements in large companies. Standish Group Chaos Report

16 Top 10 Reasons Change Efforts Fail 1. No sense of urgency (complacent staff) 2. Lack of commitment and guidance from leadership 3. Failure to obtain ownership from all stakeholders 4. Lack of vision 5. Under-communicating the vision 6. Not removing obstacles to new vision 7. Not celebrating milestones 8. Declaring victory too soon 9. Not anchoring changes in the corporate culture 10. Not dealing with the emotional component of change Adapted from John Kotter, Leading Change., 1996, Harvard Business Press, Boston, MA

17 Myths about Change People will eventually adapt to change (without change management). People hate change. Change happens; you don t have to manage it. That s what we pay our managers to do. The project will get done with or without change management.

18 Discussion: Why Innovation? How has innovation allowed some companies to thrive in today s economy? What companies have excelled in the marketplace due to innovation? What role does organizational learning play in driving and sustaining innovation? 18

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20 Managing Change with Resilience Resilience is the ability to return to the original state after being stretched or bent. In organizations, it is the ability to recover from adversity. Characteristics of resilient people: Positive Focused Flexible Organized Proactive Daryl R. Conner, Resilience: A Change for the Better.

21 Adversity Difficulties happen. Out of adversity comes opportunity.

22 Break

23 Activity: Magic Wand You just found a magic wand that allows you to change three work related activities. You can change anything you want. How would you change yourself, your job, your boss, coworkers, an important project, etc.?

24 What is Change Management? Systematic approach to transitioning individuals, teams, and organizations from a current state to a desired future state Includes preparation for change management Engages senior managers as change leaders Builds awareness of the need for the change Develops KSAs to support the change Helps employees move through transition Involves methods to sustain the change

25 Framework For Change Change Forces How Business Is Positioned for Change?

26 Change Continuum Kurt Lewin, 1993

27 Organizational Responses to Change Level 4 Creating Possibilities Mindset Level 3 Exploiting Opportunity Mindset Level 2 Adapting Adjust Mindset Level 1 Coping Victim Mindset

28 LEVEL MENTALITY VIEW ON CHANGE RESPONSES 1 COPING 2 ADAPTING 3 EXPLOITING 4 CREATING Four Levels of Change Victim Adjust Opportunity Possibility Unfair, unjust Being done to us Short term Of little importance A nuisance / A pain A necessary evil Short to medium term Of some importance Tough reality Provides opportunities if wanted Medium to long term Of clear importance Normal / Constant state Provides possibilities to create Constant state of things Of great importance Blame and complain Fight back against Deny or dismiss Ignore / Hope it goes away Neutral / Accept Low level attention Make light adjustments to play along Touch and go Accept / Embrace Explore what is happening Initiate changes aligned with change event Monitor to ensure success Anticipate / Look forward Explore why it is happening Initiate changes beyond the change event Continuously improve

29 Why Change Initiatives Fail 500 executives said that resistance was the primary reason changes failed in their organizations. 80% of CIOs said resistance was the main reason why tech projects failed- not lack of skills or resources; human response

30 Best Practices Report (Procsi, 2005) Top 5 reasons front line employees resist change: Employees not aware of the underlying business need for change Layoffs announced or feared as part of the change Employees unsure if they had the needed skills for success in the future state Individuals comfortable with the current state; they wanted to maintain status quo Employees felt they were being required to do more with less, or do more for the same pay

31 Why People Resist Change Lack of job skills and new competencies Lack of information Lack of agreement with new direction Current job threatened Loss of control Fear of the unknown

32 Fear Bandwagon Canadian poll examined irrational anxieties Found that 68% would accept a message of doom and gloom without questioning who was telling them and what they were talking about

33 Dealing with Resistance Resistance to change as well as management's reaction to resistance both contribute to failure. If management ignores employee resistance (or lack of engagement), there is a greater chance of failure.

34 Whether you think that you can, or that you can't, you are usually right. Henry Ford

35 Exercise Describe a change that you are trying to facilitate...this can be a personal change. List at least three reasons this change is necessary. List reasons that resistance may occur. List ways to help ensure success.

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37 Brainstorm

38 Tyson s Organizational Change Methodology Arm Team Members with the information, knowledge, and skills that they need to be successful in tomorrow s world. Planning Estimate level of effort. Determine the number of business and project training resources needed. Training Procedures and Templates Assessment Create awareness, buy in, and ownership for the project. Communicate the right message to the right Team Members at the right time. Create an on going conversation with all Stakeholders in order to engage them in the project. Communication Understand the history and current state of the organization. Identify how the project will impact today vs. tomorrow s business. Identify Stakeholders that can impact the success of the project and anticipate how it will impact the business.

39 The Accelerated Change Process Leading Change Building a Shared Need Creating a Vision Mobilizing Commitment Changing Systems/Structures Current State Analyze & Prepare Transition State Design & Engage Monitoring Progress Future State Implement, Monitor & Sustain

40 Prerequisites for Successful Change Current State Analyze & Prepare Transition State Design & Engage Future State Implement, Monitor & Sustain + Leading Change Engaged leadership who sponsors the change and assembles the right team of people to make it happen. + Building a Shared Need Providing a compelling reason for change that is sufficient to overcome resistance to the change. + Creating a Vision Clearly articulating the desired outcome for the change that is reasonable and legitimate. + Mobilizing Commitment Securing understanding and commitment from key stakeholders to make it work. + Changing Systems/Structures Aligning management practices, systems and processes to reinforce the change. + Monitoring Progress Ensure accountability and celebrate successes.

41 Change Management Continuum Adapted from Darryl R. Conner (1993). Managing at the Speed of Change. Random House

42 Prepare Phase (Inform Phase) This phase lays the groundwork for later work toward support for the change. It prepares people for changing their behavior and primarily consists of making people aware of change and why it will happen.

43 Educate Phase This phase is the transition to understanding what impact the change will have on all involved. It enables people to begin making decisions about whether or not to accept the change.

44 Commit Phase With all the preparation having taken place, the change is implemented during this phase. During this phase the change is institutionalized and becomes part of everyday life for the stakeholders.

45 Organizational Change Management

46 Change Readiness 1. Communication- Articulate vision & business case. Build understanding of new expectations; invite feedback. 2. Leadership & Ownership- Build alignment of leaders and team members to own program outcomes including business ownership of the what and how.. 3. Learning- Develop new, sustainable skills and capabilities. 4. Work Design & Talent Management- Alignment of roles with new capabilities and expectations. Proactive talent management efforts to match changing requirements. 5. Business Readiness & Measurement- Understand organizational impacts, enabling readiness, measuring progress and risks. Ensure benefits are realized and sustained.

47 Communicating Change Define organizational change management Illustrate primary reasons for project failure Describe the change process Provide tactics including consistency for ensuring successful change Share lessons learned Focus on your business challenges

48 Communication Strategies along Change Continuum Adapted from World Bank, 1996

49 Communication Change Template

50 Change Process Current State Delta State Desired State WHY? HOW? WHAT?

51 Hierarchy of Change High Visionary Change Change Impact Medium Low Tactical Change Operational Change Strategic Change Low Medium Change Complexity High

52 Kotter's 8-Step Change Model 1. Create Urgency. 2. Form a Powerful Coalition. 3. Create a Vision for Change. 4. Communicate the Vision. 5. Remove Obstacles. 6. Create Short-term Wins. 7. Build on the Change. 8. Anchor the Changes in Corporate Culture.

53 Conclusions and Thanks Presentation, handouts, resources: