1. UNDERSTANDING & IMPLEMENTING STRATEGICUNDERSTANDING & IMPLEMENTING STRATEGIC
CHANGE (Part-1)CHANGE (Part-1)
AA Simple & Complete Basic Overview of What Change Is?Simple & Complete Basic Overview of What Change Is?
TIPS On Implementing Long-Term Sustainable ChangeTIPS On Implementing Long-Term Sustainable Change
Rich Fierson Human Capital-ROI OCM ConsultingRich Fierson Human Capital-ROI OCM Consulting
2. AGENDAAGENDA
1.1. The Elements of ChangeThe Elements of Change
2.2. Why Do “We” Make Change Harder Then It IS?Why Do “We” Make Change Harder Then It IS?
3.3. The Reality of ChangeThe Reality of Change
4.4. The Reasons & Drivers For Strategic ChangeThe Reasons & Drivers For Strategic Change
5.5. Understanding the Psychology of ChangeUnderstanding the Psychology of Change
6.6. Why Change Is Really Hard T0 Do -Why Change Is Really Hard T0 Do - RIGHT!RIGHT!
7.7. The 10 Change Success Secrets Nobody Tells YouThe 10 Change Success Secrets Nobody Tells You
8.8. A Sample of The Prosci/ADKAR Approach (The NextA Sample of The Prosci/ADKAR Approach (The Next
Presentation)Presentation)
2
3. Change Management –MyChange Management –My DefinitionDefinition ll
• Change management is the Transitioning a
person, group, or company from a Current State,
to a desired Future State, Meeting and, Or
Exceeding desired Outcomes, and the
implementation of Long-Term Structured
Processes & Behaviors for the Adoption ofAdoption of
ChangeChange
3
Prosci-Group
4. Change Management –MyChange Management –My DefinitionDefinition ll
• Change management is the Transitioning of a
person, group, or company from a Current
State, to a desired Future State, by
implementing Long-Term Structured
Processes, and Behaviors for the AdoptionAdoption
of Change,of Change, to Meet and Exceed theto Meet and Exceed the
Desired Outcomes forDesired Outcomes for
the Change Initiationthe Change Initiation
4
Rich Fierson
5. Change Management – MyChange Management – My DefinitionDefinition ll
Change management enables employees
to adopt to a change so that Business
Objectives are realized.
It’s the bridge between solutions and
results, and is fundamentally about people
and our collective role of transforming
change into successful outcomes for our
organizations
5
6. Change Management BasicsChange Management Basics
• The person, or group must be able to:
“CARE,CARE, EMBRACE, and ADOPT”” the new
Future State behaviors, processes and
Solutions
6
7. Change Management BasicsChange Management Basics
• Change Management provides an organizational
framework that enables individuals to adopt new
values, skills and behaviors so that business results
are achieved!
• Change Management is about engaging the
PASSIONPASSION and the ENERGYENERGY of employees around a
common and Shared Vision, so that the change
becomes an integral part of their work and
behavior.
7
8. Change is About Business ResultsChange is About Business Results
1. Business ResultsBusiness Results and managing the People Side of
Change are inseparable. That is why change
management is more then simply communicating,
changing a few processes, even training.
2. Change Management enables organizations to
respond to changing market conditions so they can
adapt, grow and be profitable
8
9. Change is About Business ResultsChange is About Business Results
3. Change Management enables business results to
be realized from the change initiatives you have
designed for the organization.
4. It is the connection between business outcomes
and change management that resonates the loudest
with business leaders and executives
9
10. Prosci – ADKAR Change MethodProsci – ADKAR Change Method
The ADKAR Model captures how a single person or
group goes through change.
AWARNESS: includes the nature of the Change, & “WHY”“WHY” the
change is happening.
DESIRE: is that personal choice to embrace the change and
Commit to moving forward.
KNOWLEDGE: includes education & training on the “HOW”“HOW” to
change effectively.
ABILITY: is the demonstrated proficiency with new tools,
processes and job roles such that the desired outcomes of the
change are achieved.
REINFORCEMENT: includes reward, recognition, compensation
or other performance management activities that sustain the
change for that person 10
11. WHAT ARE THE ELEMENTS OFWHAT ARE THE ELEMENTS OF
CHANGE MANAGEMENT?CHANGE MANAGEMENT?
Change ManagementChange Management Project ManagementProject Management
Leadership ManagementLeadership Management
11
12. The Prosci-ADKAR Phases ofThe Prosci-ADKAR Phases of
Change Management?Change Management?
12
Phase1 – Preparing for Change
Define Your Change
Management Strategy
Prepare Your Change
Management Team
Develop your Sponsorship
Management Model
PHASE 1
13. The Prosci-ADKAR Phases ofThe Prosci-ADKAR Phases of
Change ManagementChange Management
13
Phase 2 – Managing Change
Develop Change
Management Plans
Take Action and
Implement Plans
PHASE 2
14. The Prosci-ADKAR Phases ofThe Prosci-ADKAR Phases of
Change ManagementChange Management
14
Phase 3 – Reinforcing Change
Collect and Analyze
Feedback
Diagnose Gaps & Manage
Resistance
Implement Corrective Actions
And Celebrate Successes
PHASE 3
15. The Five Critical Tenets of the Prosci
Change Process
1. People Change For a Reason! = # 1
2. Organizational Change RequiresRequires Individual
Change
3. Organizational Outcomes are the CCollective
Results of Individual Change
4. Change Management is the EnablingEnabling
Framework for Managing the People Side
of Change
5. We Apply Change Management to Realize the
Benefits andBenefits and Desired Outcomes of ChangDesired Outcomes of Changee
15
From the Prosci Group
16. The Five Critical Tenets of the
Prosci Change Application
1. Jeff Hiatt and the Prosci Groups ADKAR is absolutely right
on target, with the exception of one element.
2. Prosci 1st
Tenet is “People Need a Reason to Change. TO
accomplish this you first must start with
Fist You Must
“Ask The Right Questions”
16QQ
QQ
QQ
QQ
QQ
QQ
QQ
QQ
QQ
17. We Change for aWe Change for a Reason…Reason…
• Every individual has an intrinsic need to accept and
acknowledge the benefits of a change (What’s in it
for me?, What’s in for: my team, or my group)?
• In order to fully support it. However, cultural factors
influence whether the inquiry is approached from a
collective or individualistic perspective. Some value
systems focus on “What in for “us”; while others
take great stock in “what’s in it for “me” as an
individual.
17
18. THE 3 FORMS OF CHANGETHE 3 FORMS OF CHANGE
• DevelopmentalDevelopmental - Change that occur on a scale of small
• TransitionalTransitional - Changes to existing processes, with a desire to find ways of
working to large scale
• TransformationalTransformational - Changes e.g. merger, ERP implementation
18
19. What Is PESTLE Important?
19
PP EE SS TT
LL
EELL
• PPEESSTTLLEE
• PPoliticalolitical
• EEconomicconomic
• SSociologicalociological
• TTechnicalechnical
• LLegalegal
• EEnvironmental &nvironmental & EEfficiencyfficiency
20. We Change For A Reason
• Change Management EnablesEnables employees to ADOPADOPTT to a
Change so that business objectives are RealizedRealized
• Change is the Bridge between Solutions and Results
• Change Management is fundamentally between about People
and our Collective role of Transforming change into Successful
Business Outcomes for the Organization!
• We Change For A ReasonWe Change For A Reason. As Simple as this sounds, an
underlying principal for managing change is that a Future State
can be Envisioned, that is different from the Current State of
today, and we are changing to the Future State to achieve a group
of specific Outcomes
20
From slide 4
21. We Change For A Reason
• New Technology
• Stakeholder Input
• Strategic plans
• Internal performance
• Market and economic shifts
• Customer input
• Competitive threats
• New technologies
• Regulation/legislation
• Demands to do more with less
• Increasing Productivity through
Technology to Enhance & Maximize
the Customers Experience
• Do More with less/or development
• Costs lower
• Revenues higher
• Market share larger
• Errors fewer
• Efficiency greater
• Customers more satisfied
• Risk exposure less
CHANGE DRIVERS: CHANGE GOALS:
21
23. We Change for Reasons!Reasons!
Issues & OpportunitiesIssues & Opportunities
Internal Performance
Financial Results
Strategic Planning
Employee Input
Customer Input
New Technologies
Regulation/Legislation
Economic Conditions
Market Shifts Competitive Threats
Demands To Do More With Less
Stakeholder Input
23
24. We Change for Multiple &We Change for Multiple &
Individual ReasonsIndividual Reasons
• The previous slide said there are MANY
REASONS. However I underlined 3
• WHY?WHY?
• Because whatever the reason, there isBecause whatever the reason, there is
One ConstantOne Constant!!!!
• The 3 Groups that will always need toThe 3 Groups that will always need to
be involvedbe involved Why?Why?
24
25. The 3 Drivers Of ChangeThe 3 Drivers Of Change
• There are many drivers of change on both an
internal and external level.
• Once defined, the change vision will need to
ensure that three groups are considered:
• Customers,
• Stakeholders
• Employees
=
25
27. Understanding the Psychology of ChangeUnderstanding the Psychology of Change
• It is helpful to understand the psychology of
change when planning a change effort, it helps
to explain why people think and act as they dowhy people think and act as they do
when faced with a change?when faced with a change?
• When aiming to transform the attitudesto transform the attitudes and
behavior of employeesbehavior of employees, a foundational knowledge
of this topic will prove beneficial to the leadership
and project team responsible for delivering the
change.
• In order to succeed in changing mind-sets and
behaviors, let's consider the three most importantthe three most important
elements in changing behaviorelements in changing behavior:
27
28. THE 3 Most Important Elements To Changing
Behavior:
• Readiness to change - Do employees have
the resources and knowledge to successfully
make a lasting changemake a lasting change??
• Barriers & resistance to change - Is there
anything preventing employees from
changing, or making them resist?
• Expect relapse - What might trigger a return
to the previous state behavior? 28
29. The Basis of Change101The Basis of Change101
• Resistance to change is the largest obstacle that leaders
are faced with when initiating a change effort. It can be very
damaging to the process and can potentially stall the efforts to
move forward if not addressed appropriately.
• There are many reasons why an employee may resist change
and so as "leaders of change", you will need to be
sensitive to how individuals respond while keeping in
mind that the process of commitment and acceptance
takes time.
• It also takes A “Structured ApproachStructured Approach” Without this
Structured ApproachStructured Approach you will be part of the 70% that not
only Fail, But end up in worst shape then when youBut end up in worst shape then when you
startedstarted
29
30. The Basis of Change101The Basis of Change101
30
When we see Change
Here is the Change Vision
We first see
31. 08/18/14 31
The Real Change Is Represented UnderThe Real Change Is Represented Under
the View of Most Peoplethe View of Most People
This is why the Elements of ResistanceThis is why the Elements of Resistance
Begin to Show as the Project MovesBegin to Show as the Project Moves
ForwardForward
SS-TITANIC
32. The Elements That will Impact Change AdoptionThe Elements That will Impact Change Adoption
ChangeChange
ConceptsConcepts
SendersSenders
&&
ReceiversReceivers
ResistanceResistance
&&
ComfortComfort
AuthorityAuthority
ForFor
ChangeChange
ValueValue
SystemsSystems
IncrementalIncremental
vs.vs.
RadicalRadical
ChangeChange
The RightThe Right
Answer isAnswer is
NotNot
EnoughEnough
ChangeChange
Is aIs a
ProcessProcess
• The Focus of this
Chart represents the
key concepts that
impact the effective
application of
change
management & the
5
Tenets
2
1
3
4
5
6
7
32
Prosci Group
33. WHY CHANGE IS REALLY HARD TO DO RIGHT!
Or
Why is it SO Hard for People to Want to Change?
• Dr. Elisabeth Kübler-Ross, wrote a famous
book. Does anyone Know the Name? Or
the Subject Matter?
33
34. Why Change Is Really Hard To Do Right!
• The ANSWER IS?The ANSWER IS?
• “On Death and DyingOn Death and Dying””
• In which she named the 5 stages of Grief
• In Change I Believe That is The Same
For People Going Through A Forced
• Transition…Think About ItTransition…Think About It!
1. Denial
2. Anger
3. Bargaining
4. Depression
5. Acceptance
THE PSYCHOLOGY OF THETHE PSYCHOLOGY OF THE
AVERAGE PERSON GOINGAVERAGE PERSON GOING
THROUGH A CHANGETHROUGH A CHANGE
ESPECIALLYESPECIALLY
A SPFTWARE CHANGE!!!A SPFTWARE CHANGE!!!
==
34
35. WHY CHANGE IS REALLY HARD TO DO RIGHT!
• “On Death and Dying”On Death and Dying”
l. Denial
Shock
Il. Anger
(Emotion)
lll. Bargaining
lV. Preparatory
Depression
V. Acceptance
(Increased
Self-Reliance
Terminal Illness Diagnosed
(Significant Change)
Loneliness
InternalConflict
GuiltMeaningless
GradualRealizationof
TheRealConsequences
Movem
entToward
Increased
SelfAwarenessand
Contactwith
Others
Heath
(Sustainability)
35
36. Yes Change IsYes Change Is HARDHARD To Do!To Do!
• We can often very clearly observe similar
reactions to those explained by Kübler-Ross's
grief model in people confronted with far less
serious traumas than death and bereavement,
such as organizational -----
• Change efforts, Redundancy, Enforced
Relocation etc., Different Boss, Change in
ERP/Software, Change of Process
36
37. A Change ContinuumA Change Continuum
37
Ownership
Individuals make the
ERP their own and
create innovative ways
to use and improve
COMMITMENT
High
Contact
Individuals
have heard about
the ERP
Low
Awareness
Individuals are aware
of basic scope and
concepts of an ERP
Understanding
Individuals understand
how an ERP impacts the
company and their
functional areas
Positive Perception
Individuals understand the ERP
impacts and benefits to them
Action
Individuals are willing
to work with and
implement the ERP
Institutionalization
An ERP is the way work is done
-- the new status quo
Stage 3: Commitment
Implementing and
Sustaining New Ways
Stage 3: Commitment
Implementing and
Sustaining New Ways
Stage 2: Involvement
Engaging & Enabling
the Organization
Stage 2: Involvement
Engaging & Enabling
the Organization
Stage 1: Awareness
Setting the Climate
for Change
Stage 1: Awareness
Setting the Climate
for Change
TIMETIME
38. Change Phase 1 Overview
Details of ChangeDetails of Change
• Identify the change
• Specifics of the
change
• Change approach
Implementation ofImplementation of
ChangeChange
• Implementation strategies
• Release Strategy
Review of ChangReview of Changee
• Appraisal of change
strategy
OUTPUTOUTPUT
• Schedule of activities
• Assessments (Readiness, GAP,
Impact, Heat Mapping ,etc.)
• Action planning
• Communication plan &
• Training Plan
• Resistance to Change plan
• Employee to change plan
• Release Plan Review plan
OUTPUTOUTPUT
CHANGE MANAGEMENTCHANGE MANAGEMENT
PLANPLAN
OUTPUTOUTPUT
39. Communicating the Message
39
• Communications at its best (in multiple formats) and
the correct messaging is the identification of impacted
people and the development and distribution of
ongoing two-way exchange of information involving the
right people at the right time in the right manner. An
interactive communication process is key to successful
change management!
• It is unlikely that employees will change their
behaviors in support of the change imperative until
they are given sufficient time and information both to
understand and believe in the need for change.
Communicating the Message
40. 40
Communication Of Objectives:
1. Inform and Engage key stakeholders by creating awareness and
commitment to the:
• Vision,
• Objectives,
• Plans,
• Expected results,
• and the Specific impacts Improve management of
stakeholder and influencer expectations
2. Increase willingness of Leaders, Managers and employees to
perform their job the new environment.
41. 41
Communication Of Objectives:
3. You either gain complete acceptance of role and task
changes resulting from the changes in processes and
technology, or you will fail ultimately to make transitions
permanent!
4. Enhance understanding of the challenges and
opportunities of the change transformation – “making the“making the
unknown knowunknown known”
42. 42
Communication Objectives:
5. Build manager and leader capability around communication
by providing resources and tools to drive ownership of
consistent dialogue with stakeholders
6. Increase project awareness and buy in among stakeholders
7. Reduce resistance, fears, uncertainty, and rumors
8. Minimize confusion and misunderstanding
9. Monitor and measure feedback
43. 43
Communication Of Objectives:
1.The benefits of effective communications
include:
•Employees that understand what is expected of them in the new
environment and what they can expect from the organization
•Increases employees acceptance of changes
•Employees feel more comfortable and do not put up as much
resistance
•Employees think and act like owners of the business Processes
44. 44
• Risks ofRisks of ineffectiveineffective communications include:communications include:
• Confusion
• Resistance and rejection of the project by all
stakeholders
• Negative perception of the project
• Decision not to implement Loss of support
• Project aborted
• Project Go Live has less then a 40% chance of
being maximized by all employees
Not Communicating the Message
45. 45
Overall Communications Approach
• Identify all audience groups to determine their level of
criticality to the success of the program and the level of impact
on their future jobs
• Define the key communications goals and Guiding Principles
for the program
• Define the key messages to be delivered to each audience
group that will best enable the group to move upwards along
the commitment curve
• Conduct a media analysis to better understand which vehicles
deliver the greatest impact to each audience group
Communicating the Message
46. 46
1. Develop a Communications Plan based on the
following goals:
• Provide clear and consistent communications for
each phase of the project
• Deliver clear, simple, and consistent messages
across the organization communicating the ““what’swhat’s
in it for me”in it for me” to stakeholders
2. Execute business transformation Communications
Plan
3. Gather feedback to ensure the effectiveness of the
communications
Communicating the Message
47. 47
Communicating the Message
Conduct
Audience
Analysis
Conduct
Media Analysis
Identify Key
Communication
Messages
Develop High-Level
Communication Plan
Define
Communication
Guiding
Principles
Execute Communication PlanGather Feedback
Conduct
Readiness
Survey
Impact Change Readiness
GAP- Heat Mapping
Assessments, etc.
Pre/Post & On-Going
48. The 10 Change Success SecretsThe 10 Change Success Secrets
Nobody Tells YouNobody Tells You
1. Understand the Psychology of Change
2. Ask The Right Questions
3. Clearly Articulate the Change Vision
4. Effective Communications Start With a Clear Strategy
5. Support Leadership (Champions) and Sponsor (s)
6. Integrate Project Management and Change Management
7. Create a Network of Change Champions
8. Utilize a Range of Collaboration Tools to Increase
Engagement
9. Actively Manage Resistance9. Actively Manage Resistance
10.Plan Training in Detail10.Plan Training in Detail
48
50. Understanding The Psychology of Change
It is helpful to understand the psychology of change when planning
a change effort, it helps to explain why people think and act as they
do when faced with a change. When aiming to transform the attitudes
and behavior of employees, a foundational knowledge of this topic will
prove beneficial to the leadership and project team responsible for
delivering the change.
The four most important elements in changing behavior:
Readiness to ChangeReadiness to Change - Do employees have the resources and
knowledge to successfully make a lasting change?
Reason To Change – Do employees have a reason in their
interest to change?
Barriers to ChangeBarriers to Change - Is there anything preventing employees
from changing?
Expect RelapseExpect Relapse - What might trigger a return to the previous
state behavior?
50
51. UNDERSTANDING THEPSYCHOLOGY OF
CHANGE
So why do employees Resist Change?
1As people We know that change creates Anxiety
2The current State has tremendous holding power
3The possibility of losing what we have grown
accustomed to (and comfortable) with
Creates Worry and Uncertainty
4.The Future State is often Ill-defined, and people
are afraid of what lies ahead.
51
ChangeChange
ResistorResistor
52. Understanding The Psychology of Change
Ask:Ask:
•Does the company have a change history/record?
•Do employees really know whywhy for the New
Software/Change, or were they taken by surprise?
•Do they believe the reasonss for the implementation, and
do the believe the reasons are Validare Valid?
•Do they Trust the SendersTrust the Senders of the Message?
•From a Personal perspective, How might the change
Impact ThemImpact Them?
52
53. Individual Change Comes Before
Organizational Change
• What motivates a person is unique to that person
• We each March to a Different Drummer
• What is the Organizations History with Change?
Here is a Key Change Successes Factor – You must getYou must get
People on-Board. To do this you need:People on-Board. To do this you need:
–Visible and Active Executive Sponsorship or Change
Leadership
–Do We Have Mid-Level/Supervisor Sponsors?
• Connor defines a sponsor as “The individual or group who has
the power to sanction or legitimize change”
53
54. Individual Change Comes Before
Organizational Change
• SPONSORS:
– Actively and visibly participate in the individual
level change (how does this change effect
me?)
– Build a coalition pf sponsorship between
key business leaders
– Communicate directly with employees
about why the change is needed
54
55. Prosci ADKAR Five TenetsProsci ADKAR Five Tenets
1 We change for a reason.for a reason.
2 Organizational change requires Individual
Change
3 Organizational outcomes are the collective
result of individual change
4 Change management is an enablingenabling
framework fframework for managing the people side of
change
5 We apply change management to realize
the benefits and desired outcomes ofbenefits and desired outcomes of
changechange
55
56. Prosci-ADKAR MethodologyProsci-ADKAR Methodology
The five building blocks of successful change
AAwarenesswareness - of the need for change
DDesireesire -- to participate and support the change
KKnowledgenowledge - on how to do change
AAbilitybility - to implement required skills and
behaviors
RReinforcement -einforcement - to sustain the change
A.D.K.A.RA.D.K.A.R..
AA
DD KK
AA
RR
56