Failure Reasons in Change Management and How to Avoid Them

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Failure Reasons in Management and How to g Avoid Them 14th Annual Shared Services Week Orlando, FL March 23, 2010 Workshop Excerpt Contact: stposton@scottmadden.com sbmanning@scottmadden.com jcrosby@scottmadden.com

Objectives Define key change management concepts Illustrate why change management is critical to the success of any transformation project Identify and discuss mitigation of key change management failures Demonstrate change management techniques and tools Capture action plans for your own change management initiative 1

Today s Workshop Approach 7 Failures in Management Symptoms Discussion Break-out sessions Participant objectives Mitigation Participant input Key Examples 2

Management Process Overview Management can been laid out in various stages or steps depending on the objective of the proposed theory. The following demonstrates a simple three phased approach with the key activities of each and sets a stage for identifying failures in change management. Define the Plan the Execute the Identify Leadership Identify Key Milestones and Assess Impacts Implement Develop Vision Integrate Plan Monitor Determine Capacity Prepare Resources Solidify 3

Project Progression and Common Failures Define the Plan the Execute the 1 3 Lack of Ineffective Management Sponsorship from Resources and Senior Leaders Planning 7 2 Not Learning from Past Initiatives 4 5 Not Understanding Dynamics of Organizational, Group, and Individual Poor Support or Alignment with Middle Management 6 Ineffective Communication to Support the Process Resistance to from Employees Source: Management article Pity City 4

Failure # 1 4 5 1 1 2 3 6 7 Ineffective Sponsorship from Senior Leaders Leaders: Symptoms Are not at a high enough level in the organization Lack understanding of the sponsorship role Support is weak beyond your immediate organization Leaders: Are inactive or invisible Talk big to us but don t follow through in public Mitigation Activities Identify leadership requirements Define sponsor roles and behaviors and lobby leaders to fill your needs Build a coalition of stakeholders that fits the project scope Assess and prepare sponsors Interview and assess willingness to be public in their support (positive, negative, or neutral?) Leaders are wavering in their commitment There are competing priorities for funds and resources Provide the means to maintain support Analytical evidence and business case updated throughout the change * Bold text = example header in following section 5

Identify Leadership Define Roles and Behaviors 4 5 1 1 2 3 6 7 Executive Sponsor The success of a change management program is intimately tied to executive sponsorship. An effective leader needs to be accessible, knowledgeable about the change, committed, and involved.¹ A good executive sponsor should: Build a coalition for change by identifying and influencing key stakeholders to support the change Leverage their position to create awareness and a sense of urgency for the change; share the vision and objectives with employees Be a visible and active part of the project team Obtain appropriate resources for the project team Maintain the priority of the project within the organization Help to resolve problems and reach solutions that support the project s vision 1. Content included from Greatest Contributors to Success. Best Practices in Management, Prosci Benchmarking Report, 2007 6

To learn more about our approach to change management, contact us: Sam Poston SVP 919.781.4191 stposton@scottmadden.com Scott B. Manning Partner 404.814.0020 sbmanning@scottmadden.com Jerred Crosby Director 404.814.0020 jcrosby@scottmadden.com Ten Piedmont Center Suite 805 Atlanta, GA 30305 404.814.0020 2626 Glenwood Ave Suite 480 Raleigh, NC 27608 919.781.4191 www.scottmadden.com