Best Practices and Tools for Managing Organizational Change Presenter: Stacy Aaron
Learning Objectives To understand how a People Strategy can mitigate risks To understand how a People Strategy can Improve results To understand what tactical resources are available to apply a comprehensive People Strategy To be exposed to the Change Readiness Audit, a tool that helps assess risk Change Guides LLC
What s Your Success Rate? Have Past Projects Met Promised ROI and Objectives?
A Few Facts F2009 Standish Chaos Reports www.standish.com 32% characterized project as successful 24% characterized project as failed 44% characterized project as challenged Only 61% said they had changed successfully in the past - 2008 IBM CEO Survey www.ibm.com Major corporate investments in technology are not used as intended or abandoned within 6 months 80% of the time - Miller, D. (2002). Successful Change Leaders: What Makes Them? What Do they do That is Different?, Journal of Change Management, 2(4), 359-368. Change Guides LLC
Managing Transitions Today Uncertain and Uncomfortable Tomorrow Current State Transition State Future State
Transition Example Current State Late shipments Too much scrap & rework High defect rates Waste Excess paperwork Long cycle times Non-value added processes Poor planning Transition/ Change Management Future State New standardized tools & streamlined processes Reduced rework Lower scrap rates On time deliveries Knowledgeable staff Increased margins Risk management
What Is a People Strategy? Driving business results by getting individuals and groups ready, willing, and able to implement and sustain new ways of working
The Eight Constants of Change The 8 critical things that leaders must understand and address in order to drive change and succeed
Constant #1 It Takes a Village Organizations change when the people within them change
COMMITMENT The Commitment Curve High First hear about it Using new Processes Internalization Desire Adoption Awareness Contact Low Status Quo Change Guides LLC Adapted From Daryl Conner, Managing at the Speed of Change, 1993 T I M E Understanding Vision
Constant #2 An Object at Rest Tends to Stay at Rest Resistance is inevitable
Constant #3 Old Trees Have Deep Roots Commitment to the past hinders change in the future
Constant #4 Get to the Heart of It Connecting to the head and the heart builds commitment
Constant #5 Beware the Paparazzi A leader s actions speak louder than words
Leaders Make the Difference Greatest Contributors to Overall Success Active and visible executive sponsorship 1998 Ranking #1 2000 Ranking #1 2003 Ranking #1 2005 Ranking #1 2007 Ranking #1 2009 Ranking #1 2012 Ranking #1 *Prosci Benchmarking Reports
Leaders Help Others Transition Where are leaders when change is announced? Contact Awareness Internalization Desire Adoption Understanding Change Guides LLC
Constant #6 You Can Say That Again Effective communication demands quality and quantity
Communicating During Change Change Guides LLC Be Honest Be Organized & Consistent Listen and Respond Make it a Group Activity Say it Again and Again
Constant #7 If They Build It, They Will Come People support what they help create
If They Build It, They Will Come Change Guides LLC Pay me now - or pay me later
Constant #8 You re Not In Kansas Anymore Sustaining change takes support and reinforcement
People Strategy Reduces Risk Speed Organizational Change Management Utilization Proficiency
Reducing Risk Projects with effective change management programs were more likely to meet objectives, stay on schedule and stay on budget than those without effective change management 2012 Prosci Inc Best Practices in Change Management Benchmarking Study Projects with excellent change management programs were nearly six times more likely to meet or exceed their objectives than those with poor change management programs
% of respondents that met or exceeded project objectives The Impact of Change Management on Project Objectives 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Poor (n = 177) Fair (n=441) Good (n=561) Excellent (n=107) Overall Effectiveness of Change Management Program Change Guides LLC *2012 Prosci Inc Best Practices in Change Management Benchmarking Study
Complimentary Methodologies Change Management 101 Deming's PDCA Model Change Management 101 Methodology property of Change Guides LLC Change Guides LLC
The Change Readiness Audit There s an App for that! Yes Somewhat No Vision and Business Case Are employees excited about the future? Do people understand how the change will benefit customers and stakeholders? Engagement Is there recognition of who needs to be committed to the change in order to be successful? Is there adequate participation by middle and lower managers in designing the future state? Are there allowances for ensuring that involvement will not cause undue stress on the organization? Is there a safe outlet for feedback including reactions, concerns and comments? X X X X X X
Questions?