Change Management The Human Side of Change. The High Road to Success

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1 Change Manageent The Huan Side of Change The High Road to Success

2 The Nature of Change The Change Process Managing Organizational Change

3

4 BECAUSE YOU ABSOLUTELY BELIEVE YOU HAVE NO OTHER CHOICE

5 YOU VE GOT TO BELIEVE

6 Huans are very control-oriented. Change is propted when there is a disruption of expectations. To recover, people ust adjust expectations to allow success in a new environent. This process is referred to as assiilating change.

7 Assiilation resources are consued in three ways: Micro Organizational Macro

8 Future shock occurs when people can no longer assiilate change without displaying dysfunctional behavior. deand > capacity

9 Apathy Low trust Confused thinking Covert and Overt Aggression Depression Frustration Increase in errors Low productivity Job withdrawal/ unwanted turnover Faily probles Physical coplaints Chronic illnesses

10 Organizations and individuals assiilate change at different rates. The key to operating at an optiu speed of change is resilience.

11 Sponsor - legitiizes the initiative Agent - ipleents the initiative Target - individual or group who ust actually change Advocate - wants to achieve the initiative but has no power to legitiize it

12 The ability to absorb high levels of disruptive change while displaying inial dysfunctional behavior.

13 Soe people becoe iobilized and react with: Fear, Denial Anger, Reversion Coplacency, Apathy Fatalis

14 Other people recognize the discofort as a signal to start adapting. Resilient people are: Positive Focused Flexible Organized Proactive

15 Highly resilient organizations are able to ipleent initiatives on tie and within budget because they understand that: Change is ajor whenever the people affected are disrupted fro their basic expectations. The true short-ter and long-ter costs associated with failure ust be accurately assessed.

16 ... they understand that: Assessing the risk of failure is essential Both strategic and tactical initiatives can entail ajor change. Therefore, ipleentation plans warrant special consideration in both developent and execution.

17 THE CHANGE PROCESS DENIAL How good things were in the past. They can t really ean it. Everything as usual. Nubness COMMITMENT Where a I headed? Focus. Teawork. Vision. Collaboration, breakthroughs. INTERNAL RESISTANCE Anger, Loss & Hurt. Blaing, coplaining, getting sick, doubting ability.. EXPLORATION What s going to happen to e? Seeing new possibilities, learning new skills, unfocused, chaos. PAST FUTURE

18 C o it en t T i e

19 C o Present State it en t T i e

20 C o Present State Desired State it en t T i e

21 C o Present State Desired State it en Transition t T i e

22 C o Present State Desired State it en F.O.R.* t T i e

23 C o Present State Desired State it en Individual Resistance F.O.R.* t Risk Areas T i e

24 C o Present State Desired State it en t Individual Resistance F.O.R.* Risk Areas T i e People change only when they have the willingness and ability to do so.

25 C o Present State Desired State it en t Individual Resistance F.O.R.* Sponsor Coitent Risk Areas T i e

26 C o Present State Desired State it en t Individual Resistance F.O.R.* Sponsor Coitent Risk Areas T i e *

27 C o Present State Desired State it en t Individual Resistance F.O.R.* Sponsor Coitent Risk Areas T i e *

28 C o Present State Desired State it en t Individual Resistance Cultural Alignent F.O.R.* Sponsor Coitent Risk Areas T i e

29 C o Present State Desired State it Individual Resistance en Cultural Alignent F.O.R.* Skilled Agents t Sponsor Coitent Risk Areas T i e

30 C o Present State Resilience Desired State it Individual Resistance en Cultural Alignent F.O.R.* Skilled Agents t Sponsor Coitent Counication T i e

31 C o Present State Ipleentation Architecture Resilience Desired State it Individual Resistance en Cultural Alignent F.O.R.* Skilled Agents t Sponsor Coitent Counication T i e

32 Managing the Transition Change 1 Begins Multiple change initiatives increase the load and decrease the ability of individuals to assiilate Coitent Change 2 Begins Tie Expect Perforance Decay Increase resilience or plan to fail 6/3/2009

33 Successful change is rooted in coitent.

34 CHANGE COMMITMENT MODEL VIII. Internalization Degree of Support for the Change Coitent Phase Acceptance Phase Preparation Phase II. Awareness of Change I. Contact III. Understand the Change IV. Positive Perception VII. Institutionalization V. Installation VI. Adoption Coitent Threshold Disposition Threshold Tie

35 Provide an understanding of the structure of change Avoid initiatives that will exceed the organization s assiilation capacity Reward people who axiize resilience for theselves and those they anage Develop an ipleentation architecture to iniize resistance and axiize coitent

36 Strategic Tactical 1. Clarify Project 2. Announce Project 3. Conduct Diagnosis 4. Develop Ipleentation Plan 5. Execute Plan 6. Monitor Progress/Probles 7. Evaluate Final Results

37 1. Have the paraeters of the change been fully clarified? 2. Does leadership understand the degree to which the change will disrupt the expectations of the people affected? 3. Have the key coponents of the overall change been identified and vital people and relationships analyzed?

38 C o Present State Ipleentation Architecture Resilience Desired State it Individual Resistance en Cultural Alignent F.O.R.* Skilled Agents t Sponsor Coitent Counication T i e

39 1. Critical ass of pain C o Present State Ipleentation Architecture Resilience Desired State it Individual Resistance en Cultural Alignent F.O.R.* Skilled Agents t Sponsor Coitent Counication T i e

40 1. Critical ass of pain C o Present State Ipleentation Architecture Resilience Desired State 2. Attractive, accessible reedies it Individual Resistance en Cultural Alignent F.O.R.* Skilled Agents t Sponsor Coitent Counication T i e

41 1. Critical ass of pain C o it Present State 3. Ipleentation architecture Ipleentation Architecture Resilience Individual Resistance Desired State 2. Attractive, accessible reedies en Cultural Alignent F.O.R.* Skilled Agents t Sponsor Coitent Counication T i e

42 Expect ore than you can anticipate Know the new ground rules Manage processes, not events Learn how to learn

43 A c c e l e r a t I o n Past T I M E Today

44 A c c e l e r a t I o n Past T I M E Today

45 A c c e l e r a t I o n The cobined effect produces a highly turbulent work environent. Past T I M E Today

46 More interdependencies Reduced predictability More unanticipated consequences Less tie to react More sophisticated yet less durable answers

47 Developing Strong Resilience

48 Positive Focused Flexible Organized Proactive View life as coplex but filled with opportunity Have a clear vision of what they want to achieve Are pliable when responding to uncertainty Develop structured approaches to anaging abiguity Engage change rather than defend against it

49 ? How resilient are your anagers and eployees? What steps can you take to hire ore resilient eployees? How can you train, reward, and foster individual, tea, and organizational resilience

50 1. Evaluate and reduce resistance 2. Identify and increase sponsorship 3. Assess and develop change knowledge 4. Diagnose and increase synergy

51 Developing Strong Resilience Increasing Change Knowledge

52 Nature Synergy Process Culture Resilience Roles Coitent Resistance

53 Responding to change is a resource-consuing activity.

54 Synergistic organizations work together in a anner that produces a total effect that: Is greater than the su of their individual efforts Generates ore benefits than resources consued in their interaction > 2

55 Prerequisites for a synergistic organization: Willingness - sharing of coon goals and interdependence (foxholes) Ability - epowerent and participatory anageent skills

56 Developing Strong Resilience Managing Assiilation Resources (Capacity > Deand) Increasing Change Knowledge

57 ? What is your organization s current capacity to absorb change? What is its current level of change deand? Are you seeing an increase in change-related dysfunction.? How is this affecting productivity and quality of service.? What can be done to decrease the deands for change, increase the capacity to assiilate it, or both.

58 Financial/People Resources Assiilation Resources

59 Conduct inventory of all changes Assess value created and assiilation deand generated by each change Deterine the organization s reaining assiilation capacity If assiilation deand exceeds capacity: a. Reduce, delay, or cancel change b. Raise organization s assiilation capacity c. Cobination of both a and b.

60 Developing Strong Resilience Building Ipleentation Architecture Increasing Change Knowledge Managing Assiilation Resources (Capacity > Deand)

61 Sponsorship Resistance Culture Skilled Agents Building Ipleentation Architecture Developing Strong Resilience Managing Assiilation Resources (Capacity > Deand) Increasing Change Knowledge

62 We were searching for eployees, but people showed up instead!

63 CHANGE IS ABOUT THE PEOPLE!!

64 Why is this taking so long? I ve told you what I want, what s the proble? Who s the boss around here anyway?

65 Reeber, the case for change is intellectual; the process of change is heavily eotional

66 Initiatives Are Successful When At least one person in an organization perceives a need for ipleenting an initiative and top anagers support it or at the very least do not oppose it.

67 Initiatives Are Successful When Conditions in the work environent or work processes are contributing to the perceived need or proble.

68 Initiatives Are Successful When Managers and key decision akers are willing to coit to long-ter iproveents in the organization.

69 Initiatives Are Successful When Soe trust and cooperation exist in an organization.

70 Initiatives Are Successful When Top anagers are willing to provide the resources necessary to support the change

71 Change Manageent akes use of Critical Research Steps Describe the ideal organization state (How people believe the organization or group ought to be functioning). Identify situations, events, processes, and conditions that conflict with the ideal organization situation (What is actually happening).

72 Change Manageent akes use of Critical Research Steps Identify individuals or groups desiring positive change (individuals who want to challenge the current situation and work for positive change). Confront opponents of the initiative.

73 Change Manageent akes use of Critical Research Steps Define action steps to ipleent the initiative. Collaborate with the targets to establish a tieline for ipleenting the initiative. Ipleent the initiative. Help onitor the initiative to ake iproveents as needed and as opportunities arise.

74 Inforation Gathering Methods Interviews Questionnaires Observations Surveys Exaination of records Include

75 Areas of Ipleentation Assessent Include: Systes & Policies Organizational Processes Leadership Behavior Group Processes Organizational Culture Organization Resilience Change Knowledge

76 Change Interventions Include: Individual Interventions (e.g., coaching, training) Tea Or Unit Interventions (e.g., tea building, unit goal setting) Intra-organization (e.g., workflow planning, conflict resolution) Total Organization (e.g., strategic planning, structural change)

77 Soe Critical Assuptions Successful change is part of a continuous journey of learning, growing, iproving, adapting, and anaging. Lasting change takes tie. Quick fixes rarely last. Incentives for ipleenting change ust be greater than incentives for keeping the status quo.

78 Soe Critical Assuptions Significant change usually involves significant personal losses and gains that can be articulated and anaged. Change rarely succeeds without at least one or ore chapions. The process of ipleenting the change is as iportant as the actual change and the results it provides.

79 Soe Critical Assuptions A change needs to go through three phases (preparation, ipleentation, and transition). The ajor focus of a change should be on the present realities, the future ideal, and how to systeatically ove toward the future ideal. All change situations are unique.

80 Soe Critical Assuptions Involving ebers of an organization in a change increases their understanding, coitent, and ownership. Positive change is ore effective than negative change. Opportunities for change disappear quickly and oentu wanes as tie passes.

81 Soe Critical Assuptions Concentrate on only a few iportant initiatives. Keep the change process siple and understandable. The ore there is at stake, the greater the resistance to the change and the greater the need to effectively anage the ipleentation process.

82 Soe Critical Assuptions Educate and train ebers of an organization for the change. Change needd to fit an organization s infrastructure and culture. Manageent at every level ust be involved in the planning of the change, be coitted to, and take ownership of its outcoe.

83 To Increase The Chances For Successful Change Have a clear vision of the change and how it is to be accoplished. Align the infrastructure to support the initiative. Plan the follow-through and accountability.

84 To Increase The Chances For Successful Change Secure top anageent support and encourageent. Reove roadblocks. Establish reasonable consequences for noncopliance.

85 Change Manageent The planning and ipleentation of organizationwide, top down initiatives to increase organization effectiveness and well being through planned interventions in the organization s processes and culture.

86 If necessary, be EMOTIONAL. One of the essential qualities of a leader is the ability to convey his or her strong feelings about a subject

87 Recruit Supporters. It s too difficult to try to do this alone

88 BEWARE OF EGOS AND LEARN TO RECOGNIZE THE DIFFERENCE BETWEEN REAL AGREEMENT AND BEING GRINNED AND NODDED TO DEATH

89 Cultivate Patience & Persistence You will need plenty of both

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