ORGANIZATION MANAGEMENT
Managing Organizational Change
Change is the process of moving from onestate (current state) to another (future state)
Transition
What is Change?
Current State Future State
Change is inevitable
Change is uncomfortable
Change is disruptive
The complexity of change has increased
Change – Facts & Dynamics
People ...
feel awkward, self-conscious
think first about what they have to give up
feel alone
can only handle so much
are at different levels of readiness
revert to the old as soon as the pressure is off
Facts about Change Dynamics of Change
External Forces Economic Social Organizational Environmental Legal
How Does Change Take Place?
Internal Transition Psychological process to shift behavior Let go of the old and embrace the new Occurs at your own pace Internal transitions must occur before change is fully realized
Transition
Current State Future State
The Cycle of Transition
Denial
Resistance
Commitment
Exploration
ZIGZAGZIGZAG
it will be over soonthis won’t happenapathynumbnessminimize the changeignore
sense of loss of controlconcerned with competencyfuture contribution unclearlack of focus or directioncan’t sleep at nightanger/fightswithdrawal from the teamblaming
teamworksatisfaction
clear focus and plancooperation
balanceclear vision of the future
seeing possibilitiesexploring alternatives
feeling “ I can make it”high creativity and energy
too many new ideaslack of focus
indecisivenesshave too much to do
start “being” in the future
Inform, Communicate and Motivate
Listen,Share
and Understand
Reward and Motivate
Facilitate, Problem Solve and Motivate
Adapted from Managing Change at Work by Cynthia Scott and Dennis Jaffe
Strategies for Managing Reactions to Change
Resistance: Stop Spinning Your Wheels Exploration: Venture into Uncharted Territory
• Gather information from reliable sources.• Avoid getting caught up in rumors and speculation. Discuss rumors openly with your manager and verify facts.• Allow yourself time to internalize and reflect on how you feel about the change. Don’t be swept
away by other’s emotion.• Avoid staying stuck in this stage. It can be draining and defeating.
Adapted from Managing Change at Work by Cynthia Scott and Dennis Jaffe
Denial: Gain Power Through Information Commitment: Keep the Momentum
• Accept that this is a period of emotional turmoil and that you may experience feelings of anger, hurt, disappointment, depression, betrayal and loss.
• Seek emotional support from trusted friends, family, peers and managers.
• Avoid self-defeating behavior such as acting like a victim, developing a bad attitude, and rallying others to fight the change.
• Avoid staying stuck in this stage: A prolonged negative attitude can earn you a poor reputation and undo a lot of your good work.
• Continue to find new solutions to the new situation.
• Revisit and refine your goals.
• Continue to rally people around the change.
• Avoid complacency by assuming a new status quo.
• Continue to expand your skills and knowledge.
• Break out of your comfort zone by taking on new assignments and challenges.
• Continue to suggest ideas and think unconventionally.
• Focus on changes that can be made to work rather than listing all the things that can go wrong.
• Focus on priorities and set short term goals for yourself.
• Acquire new skills and knowledge.
Shifting Behaviors…
For people to consistently behave in a new way, three conditions must be met
the person must
• be aware of what the new desired behavior is;
• have the skills to perform the desired behavior successfully
• be motivated to change his/her old behavior
Managing Organizational Changea disciplined approach to help organizations manage transition
Guiding Principles of MOC People are our only sustainable competitive
advantage - they are the intellectual capital of the organization.
Those who are closest to the work have the best information about what is needed to do it most effectively.
People tend to support more readily what they help to create.
People need to understand the context of the change. Understanding is found through dialogue.
To build a sustainable change, people must experience some personal results.
CommunicationMinimizing thrash to the
organization
Stakeholder AnalysisIdentifying those impacted or
influenced by the project
TrainingTraining strategy
& delivery
Change Impact & Organizational Readiness
AssessmentIdentifying impacts of the change and monitoring organizational readiness
Sponsorship AlignmentMaintain Sponsor Alignment and
Commitment
Knowledge TransferKnowledge capture and transfer to
benefit project and others
Team Effectiveness
Assessing team dynamics and assisting the project
manager
MOC Areas of Focus
Creating Your Business Case
Business case should articulate: The objectives of the project
The intended outcomes and benefits
Specific deliverables (including specific results)
The driving forces
The costs (fixed, short term, long term) and ROI
The timeline and expected delivery date
The constraints, risks, and challenges
The proposed project structure – who is leading, who is participating
CommunicationMinimizing thrash to the
organizationThe purpose of a business case for change: To influence alignment around project objectives,
deliverables, and metrics
Critical Success Factors: Gain alignment and agreement between sponsors and key
stakeholders.
Created to be used in future communications to end users
Consider this a decision checkpoint: should we proceed with this investment or not?
Lack of alignment indicates the need for continued refinement of the business case or a halt to the project
CommunicationMinimizing thrash to the
organization
Creating Your Business Case
Stakeholder Analysis
Creating a stakeholder analysis: List all groups and individuals you expect to be impacted
Useful to include the following attributes initially: Group name / individual name Manager name Classification (sponsor, focus/target, change agent) Directly or indirectly impacted Impact Assessment (high, medium, low) Key interests or expectations
Stakeholder AnalysisIdentifying those impacted or
influenced by the projectThe purpose of the stakeholder analysis: To specifically identify all members of the community
that will be directly or indirectly impacted by the project To assess the ‘reach’ or magnitude of the project
Stakeholder Analysis – 2
Do early and update often
Use for assessments of needs, expectations, and success factors for key stakeholders by conducting interview sessions
Utilize this information throughout the project – communication planning, focus groups, training assessments, and identification of risk areas
Avoid the temptation to create multiple lists. Use a master list and design to future intentions.
Stakeholder AnalysisIdentifying those impacted or
influenced by the project
Communication CommunicationMinimizing thrash to the
organization
The purpose of communication planning: To provide discipline around reviewing your communication
strategy
To identify objectives and messages for key communications ‘moments’ within a project
To provide a process to follow for creating messages.
It can take 7-11 times for us to hear a message before we internalize…
Communication – 2CommunicationMinimizing thrash to the
organizationThe communication planning process:
Determine communication vehicles,
owners, and timing
Determine audience
Determine our desired
outcomes
Deliver the communication
Get feedback and analyze
effectiveness
Determine key messages and communication
objectives
START
Communication Process
From stakeholder analysis
What would be observable?
Sponsorship Alignment
Sponsorship alignment includes: Specify sponsor roles and expectations Validate adequate sponsor representation Determine engagement model (expectations for future meetings
and checkpoints) Periodic sponsorship assessments Determining escalation model Clearly stating accountability Establishing effective relationships with sponsors – keeping in touch
Sponsorship AlignmentMaintain Sponsor Alignment and
Commitment
The purpose of sponsorship alignment: To help build the partnership between the project and the sponsors To set expectations about what the sponsors will be asked to do
to support the MOC activities of the project.
Sponsorship Alignment - 2
Sponsor Roles & Responsibilities: Maintaining program priority
Championing the program through personal actions and
conversations to peers and own organization
Resolves conflicts over policies or objectives
Providing political influence at high levels
Acts as an escalation board for unresolved issues or
cross-functional decisions
Approving scope changes to site project plans
Removing roadblocks and supporting key project decisions
Creating the cultural shifts necessary to realize the business
results and benefits.
EXECUTIVE SPONSORS
Note: There may be different levels of sponsorship needed throughout the life of the project
Sponsorship AlignmentMaintain Sponsor Alignment and
Commitment
What if you have a weak / passive sponsor?
Training
Training strategy/plan should articulate: A holistic picture of the education required to shift to future state Training goals and objectives Audience analysis Training needs analysis Delivery approach Cost proposals
Use the stakeholder analysis for needs assessment
TrainingTraining strategy
& delivery
The purpose of training strategy/planning: To identify the educational needs required to update or
alter the skills needed by the directly impacted audience To effectively deliver the training required
Training Strategy/Plan
Audience analysis is key to training success
Critical to understand what is the same and what is different to create that bridge between the familiar and the unknown
Critical to accommodate multiple learning styles in training design
Ensure your business community reviews and sponsors your strategy and delivery plan
Ensure appropriate logistics
TrainingTraining strategy
& delivery
Change Impact and Organizational ReadinessThe purpose of these activities: To assess the magnitude of the change to the organization
To help assess organizational readiness for go/no go decision checkpoints
Change Impact & Organizational Readiness
AssessmentIdentifying impacts of the change and monitoring organizational readiness
Change impact should articulate: What will stay the same
What will be different
What community is impacted how
Change Impact and Organizational Readiness
Change Impact & Organizational Readiness
AssessmentIdentifying impacts of the change and monitoring organizational readiness
Sample Change Impact:
Current StateWho does this
today? What systems are
used?Other processes
impacted?
Process Step Engineer Designer RA400 Supplier Notification
Future State Who will do this?What systems will
be used?
Are there differences?
Yes or No
What are the key differences?
What is the impact of this change?
Process Step Procurement New System Yes Transitioning to Procurement
Need training for procurement - need to assess readiness to transition
Knowledge Transfer
Knowledge transfer strategy should articulate: Recommendations for sharing key learnings from past projects Recommendations for conducting retrospectives at end of each
project phase Strategy and process for communicating and sharing key learnings Process for storing and retrieving key learnings Process for analyzing trends
Knowledge TransferKnowledge capture and transfer to
benefit project and othersThe purpose of knowledge transfer: To identify your strategy for leveraging team knowledge To articulate tactical steps in knowledge capture, sharing, and transfer To identify trends in learning within the organization
Critical Success Factors: Understand the intent for capturing knowledge – how will it be used? Develop a psychologically safe environment where learnings are valued
Team EffectivenessTeam
EffectivenessAssessing team dynamics
and effectiveness
Teams are most effective when: Commitment to a common purpose Clearly articulated goals Mutual accountability for success Roles are understood and aligned Processes for decision making are clear Team is able to self-learn about their own effectiveness Team is able to observe and respond to group norms Ability to share leadership Ability to collaborate
The purpose of team effectiveness: To improve team effectiveness and project performance To assess team processes in decision making,
problem solving, and communication
ARE WE GETTING THE RESULTS WE WANT? IF NOT, WHAT DO WE DO ABOUT IT?
Today is a world of complex and frequent change
Cultural and behavioral factors are the essence of organizational change
Supports consistent leadership and communication practices
Why is it important to focus on Organizational Change?
Communication
Stakeholder Analysis
Training
Change Impact & Organizational Readiness
AssessmentSponsorship
Alignment
Knowledge Transfer
Team Effectiveness
Barriers to Success for Organizational Change
Deloitte & Touche Survey of CIO's regarding Business Transformation: Top 10 Barriers to Success
46%
65%
72%
82%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
IT Perspective Not Integrated
Not Horizontal Process View
No Change Management Program
Project Team Lacked Skills
Scope Expansion / Uncertainty
Case For Change Not Compelling
Poor Project Management
Unrealistic Expectations
Inadequate Sponsorship
Resistance To Change
% of Firms
Directly Relates to Managing Organizational Change
How to Hit the Ground Running in Your New Management Job
Fortune March 7, 2005
“35% of managers who change jobs fail in their new ones and either quit or are asked to leave within 18 months. . .
Most managers who blow it have fine technical skills but stumble over the softer side.”
Phase 1. Group talks, manager listens Facilitator leads brainstorm: “Issues that affect the
group” Issues are prioritized (multi-vote) in three categories:
technical, interpersonal and administrative Manager stays in background, takes notes, observes
group processes Manager publishes list of issues and priorities
Group members come prepared to answer: Name a recent group accomplishment What area does the group need to develop? What is a strength of the group? What is the atmosphere of the group? “If I could only change one thing it would be . . . “
Management Transition Meeting
Phase 2. Manager talks, group asks questions and listens
Questions to focus on manager and his/her style, not on issues from Phase 1
Manager can respond “I’ll get back to you on that” Manager can ask and answer his/her own questions
(including issues from Phase 1 if so desired)
Possible questions for the group What strengths do you bring to the group? What pressures do you believe you will face in this job? What do you expect of the people reporting to you? What makes you angry? What should we do if we think you’re making a mistake?
Management Transition Meeting
Reduces the transition time for the group Provides the new manager with group opinions on issues and priorities Helps the new manager get off on the right foot Helps the new manager set the tone for the future
Management Transition Meeting (in the first 2 weeks in the job)
Assignment
Case brief – Allentown
Last names beginning with N – Z