Management Engineering

1. CHANGE MANAGEMENT THEORIES:ADKAR MODELSIX CHANGE APPROACHBUSINESS PROCESS REENGINEERING Engr. Ma. Stella M.Frias Presenter/Discussant, Professor: Jo B. Bitonio ME 215 Management of Change & Transition

2. Change Management: It is a set of processes that is employed to ensure that significant changes are implemented in an orderly, controlled and systematic fashion to effect organizational change

3. Change management theories and how well they are implemented can be the ultimate driving factor of success in the organizational change. There are many models and theories, and each one has potential benefits or weaknesses for each organization. The following are a mere few that have demonstrated success in organizations.

4. ADKAR MODEL

5. ADKAR is a goal-oriented change management model that allows change management teams to focus their activities on specific business results. The model was initially used as a tool for determining if change management activities like communications and training were having the desired results during organizational change. The model has its origins in aligning traditional change management activities to a given result or goal.

6. The ADKAR model has the ability to identify why changes are not working and help you take the necessary steps to make the change successful. You will be able to break down the change into parts, understand where the change is failing and address that impact point. The ADKAR model was first published by Prosci in 1998 after research with more than 300 companies undergoing major change projects. In 2006, Prosci released the first complete text on the ADKAR model in Jeff Hiatt's book ADKAR: a model for change in business, government and our community. This model is intended to be a coaching tool to help employees through the change process.

7. The ADKAR Model ADKAR describes the required phases that an individual will go through when faced with change ADKAR is a foundational tool for understanding “how, why and when” to use different change management tools

8. The five building blocks of successful change

9. The ADKAR Model Awareness of the need for change. What is the nature of the change? Why is the change happening? What is the risk of not changing? For your employees, what is the level of Awareness of the need to change?

10. Desire to support the change. Personal motivation to support the change Organizational drivers to support the change For your employees, what is the level of Desire to support and participate in the change?

11. Knowledge on how to change. Knowledge, skills and behaviors required during and after the change Understanding how to change For your employees, what is the level of Knowledge on how to change?

12. Ability to implement new skills. Demonstrated ability to implement the change Barriers that may inhibit implementing the change For your employees, what is the level of Ability to implement the change?

13. Reinforcement to sustain the change. Mechanisms to keep the change in place Recognition, rewards, incentives, successes For your employees, what is the level of Reinforcement to sustain the change?

14. Without ADKAR

15. ADKAR describes the key building blocksfor successful change personal or professional Success with change requires all elements of the ADKAR model to be present

16. ADKAR applications Change management planning Diagnosing gaps Developing corrective actions

17. To use the ADKAR model effectively, you will need to understand the underlying framework for change initiatives. In the next diagram, change happens on two dimensions: the business dimension (vertical axis) and the people dimension (horizontal axis). Successful change happens when both dimensions of change occur simultaneously.

20. What is the goal of each tool?Sponsor roadmap Training Resistance mgmt Coaching

22. Diagnosing gaps with ADKAR ADKAR describes the building blocks and sequence for successful change When changes are failing, ADKAR can be used to identify which element is the root cause for the change not being successful

23. Take for example the implementation of a new software tool. If the change is implemented and you believe it was not needed (i.e., you were not aware that any changes were required), then your reaction might be:

24. Our natural reaction to change, even in the best circumstances, is to resist. Awareness of the business need to change is a critical ingredient of any change and must come first.

25. If someone had taken the time to explain that the old software would no longer be supported by the vendor, and that new software was necessary to meet the needs of your customers, then your reaction (based on this awareness) would be:

26. Take this same example one step further. Assume you were made aware that a change was required, but you had no desire to participate or support the change.

27. Now the tables are turned, and you may become the target of an emotional response from individuals within the organization. You may be labeled as difficult, inflexible or unsupportive. Some may say you lack initiative or vision. You may be called a cynic or pessimist.

28. Now it’s your turn. The change. Briefly describe the personal change you are trying to implement with a friend, family member or work associate:

29. 1. Awareness. List the reasons you believe the change is necessary. Review these reasons and rate the degree to which the person you are trying to change is aware of the reasons or need to change (1 - 5 where 1 is no awareness and 5 is total awareness).

30. 2. Desire. List the factors or consequences (good and bad) for this person that create a desire to change. Consider these motivating factors, including the person’s conviction in these factors and the associated consequences. Rate his/her desire to change on a 1 - 5 scale.

31. 3. Knowledge. List the skills and knowledge needed to support the change, including if the person has a clear picture of what the change looks like. Rate this person’s knowledge or level of training in these areas on a 1 to 5 scale.

32. 4. Ability. Considering the skills and knowledge identified in the previous question, evaluate the person’s ability to perform these skills or act on this knowledge. Rate this person’s ability to implement the new skills, knowledge and behaviors to support the change on a 1 - 5 scale.

33. 5. Reinforcement. List the reinforcements that will help to retain the change. Are incentives in place to reinforce the change and make it stick? Rate the reinforcements as helping support the change on a 1 to 5 scale.

34. Now transfer your scores from each worksheet to the table. Take a moment to review your scores. Highlight those areas that scored a 3 or below, and identify (using the order listed on the score sheet) which was the first area to score less than 3.

35. Now consider the first area in which your score was 3 or below. You must address this area before anything else is done. For example, if you identified awareness as the area with a low score, then working on desire, knowledge or skill development will not help you make the change happen.

36. On the other hand, if you identified desire, then continually repeating your reasons for change is not adequate to move this person forward. Once they know these reasons, you must address their inherent desire to change. Desire may stem from negative or positive consequences. The negative consequences have to be great enough to overcome their personal threshold to resist change (same for the positive consequences)

37. If knowledge was the area you identified, then be careful not to dwell on the reasons for change and the motivating factors. This could be discouraging for someone already at this phase. What is needed is education and training for the skills and behaviors that are needed for change.

38. If ability was the area selected with the low score, then several steps are required to move forward.

39. The person will need time to develop new skills and behaviors. Just like learning a new sport or any new skill, time is required to develop new abilities. The person will need ongoing coaching and support. No one-time training event or educational program will substitute for ongoing coaching and mentoring. Outside intervention or support may be required

40. Finally, if reinforcement was the area identified, then you will need to investigate if the necessary elements are present to keep the person from reverting to old behaviors. Address the incentives or consequences for not continuing to act in the new way.

41. Now that you have completed the ADKAR model for a personal change, you can follow the same process for the change happening at work. This process should give you insight as to where you are in the change process, and what steps you can take to not only survive change, but advance professionally in a changing business environment.

42. If you are deploying a major change in your organization, then a critical step in change management is organizational awareness of the reasons for change. Desire to change at the employee level must be addressed as resistance will be a natural reaction to change. As the change moves into implementation, you need to develop knowledge about the change and the ability to implement new skills and behaviors. Once the change is in place, you will need to reinforce the change to avoid moving backwards to old behaviors. Each element of the ADKAR model represents a business goal for managing change. This results-oriented model helps guide change management activities for both organization and individual change management.

43. Six Change Approach by : Kotter and Schlesinger

44. The Six Change Approaches developed by Kotter and Schlesinger is designed to prevent or minimize employee resistance to change. This model can be useful to any size organization as it covers many possible issues, some organization may never even face. The approaches react to the four main resistance factors which are; self-interest, misunderstanding, low tolerance for change, and employee disagreement with reasoning.

45. 4 reasons that people are resisting change PAROCHIAL SELF INTEREST MIS-UNDERSTANDING LOW TOLERANCE TO CHANGE DIFFERENT ASSESSMENTS OF THE SITUATION

46. 6 CHANGE APPROACHES TO DEAL WITH RESISTANCE TO CHANGE 1. Education and Communication. "Up-front communication and education helps employees see the logic in the change effort."

47. 6 CHANGE APPROACHES TO DEAL WITH RESISTANCE TO CHANGE 2. Participation and Involvement. "When employees are involved in the change effort they are more likely to buy into change rather than resist it."

48. 6 CHANGE APPROACHES TO DEAL WITH RESISTANCE TO CHANGE 3. Facilitation and Support. "Managerial support helps employees deal with fear and anxiety during a transition period."

49. 6 CHANGE APPROACHES TO DEAL WITH RESISTANCE TO CHANGE 4. Negotiation and Agreement. "Managers can combat resistance by offering incentives to employees to not resist change."

50. 6 CHANGE APPROACHES TO DEAL WITH RESISTANCE TO CHANGE 5. Manipulation and Co-option. "Co-option involves the patronizing gesture in bringing a person into a change management group for the sake of appearances rather than their substantive contribution."

51. 6 CHANGE APPROACHES TO DEAL WITH RESISTANCE TO CHANGE 6. Explicit and Implicit Coercion. "Managers can explicitly or implicitly force employees into accepting change by making clear that resisting to change can lead to losing jobs, firing, transferring or not promoting employees."

52. Business Process Reengineering

53. REENGINEERING – is about rethinking and redesigning the organization of work that will deliver better products or services 5 Major components of the reengineering process: 1. Preparation 2. Identification 3. Vision 4. Solution 5. transformation

55. BPR Definition: HAMMER & CHAMPY (1993) BPR - as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical contemporary measures of performance such as cost, quality, service and speed

56. BPR Definition: THOMAS DAVENPORT(1993) Uses the term process innovation which he says “encompasses the envisioning of new work strategies, the actual process design activity and the implementation of the change in all its complex technological, human and organizational dimensions”.

57. Finally: JOHANSSON et al (1993) Provide a description of BPR relative to other process-oriented views such as Total Quality Management (TQM) and Just-in-time (JIT) and state: “BPR, although a close relative, seeks radical rather than merely continuous improvement. It escalates the effort of JIT and TQM to make process orientation a strategic tool and a core competence of the organization. BPR concentrates on core business processes and uses the specific techniques with JIT and TQM tool boxes as enablers, while broadening the process vision.”

58. Business Process Reengineering - is a model focused more on outcomes and the work process than on employee specific issues. Seven principles are used to streamline processes and improve time management, costs and quality. For organizations operating under bloated parameters, BPR is the efficient, if not exactly friendly, solution to downsize costs. The factors include:

59. 1. Organize around outcomes, not tasks. 2. Identify all the processes in an organization and prioritize them in order of redesign urgency. 3. Integrate information processing work into the real work that produces the information.

60. 4. Treat geographically dispersed resources as though they were centralized. 5. Link parallel activities in the workflow instead of just integrating their results. 6. Put the decision point where the work is performed, and build control into the process. 7. Capture information once and at the source.

61. When changes in technology are in front of employees they can be fearful of having to learn new programs and tasks. They are also wary of the issues that follow working the bugs out of a new program. This includes downtimes or malfunctions. New technology can be a breeding ground for employee frustration. The best way to combat this frustration is to communicate with the employees the potential benefits of the new technologies and to develop an atmosphere of positive change. "An atmosphere of openness, good communications, clear vision, leadership and training engenders good change management. Consultation, communications, transparency and informality minimize fear and suspicion; staff resent the sense that changes are imposed on them and that they are powerless - they need to be involved. They need to understand the rationale behind decisions which are being made, even if they do not agree with them." (Edwards and Walton, 2000)

62. Don Forrer, D.B.A., of International College states the critical factors that contribute to the importance of technology and its impact on managing employees during change, "Technology factors are elements important to a company's ability to dominate the information systems aspects of their industry. This could include people skills, better communication equipment or more efficient technology. Expertise in any technology-related field can provide a competitive advantage. Technology enhances productivity and leads to better efficiency at a lower cost." (Forrer, 2006)

63. "Key success factors take the form of human and business processes as they evolve to help move a company forward. Organizations and people are dependent upon each other for survival. People contribute ideas, energy and talent to the organization while benefiting from the job, pay and careers provided by the company. Each individual plays an important role in productivity, quality and image. It is management's job to ensure that employees are focused on the vision of the company and change occurs when required." (Forrer, 2006)

64. The ADKAR model speaks highly of employee action plans. The Six Change Approach is a valuable model for management to have in mind for future change. As the company grows and tries to branch out, the six change approaches could become a necessity to implement new changes. Business process reengineering can be modified to develop the focus on outcomes and employee processes that will keep employees focused on the work that needs to be done and what will be measured as their performance metrics.

65. THANK YOU