Dan Olson's presentation on change management for the HUGmn2010 techday conference.

1. STAR Collaborative’s Top 7
Change Management
Tools to Improve
Implementation Performance
or,
“How I Learned to Stop Worrying and
Love Change Management “
03.11.10

2. The Case For Change Is a Case For Change
“The most important capacity a[n]…organization can
have is a change capability. And it’s the one
capability most organizations lack today. Forward-
looking organizations are building and investing in
their capability to manage change, but most are
not.”
From Built to Change: How to Achieve Sustained Organizational Effectiveness by Edward
E. Lawler III and Christopher G. Worley, Foreword by Jerry Porras, coauthor of Built to
Last.
Change management practices impact rational and emotional commitment, which in
turn leads to effort and the intent to stay, resulting in performance and retention. 1
© 2009 STAR Collaborative 2

3. Fighting for Mindshare
• A 2006 study from Harvard Business
Review found that 66% of all change
initiatives fail to achieve their
desired outcomes. 2
• In the same year, Accenture found
that 57% of organizations experience
a decline in workforce productivity
during change management
initiatives.3
Too Many Competing Items, Coupled With A Lack of Prioritization, Water Down Benefits
© 2009 STAR Collaborative 3

4. The Difficulty and Costs of Change 4
Most difficult to get going
Anticipatory The Costs of Change
Change
Least
Difficult to get going Cost
Reactive Moderate
Change Anticipatory Cost
Change
Easiest to get going Most
Crisis Reactive Cost
Change Change
The Difficulty of Change
Crisis
Change
Pay now or pay later. There are costs no matter when you react to change.
The trick is minimizing them.
© 2009 STAR Collaborative 4

5. Change tool #1: Learning Cycle
Modified from
Peter Senge’s The Fifth Discipline
SCCPMSD-V1-62790.1

6. Change Tool #2: Engagement Agreement
Each member of the project team
should write an engagement
agreement to detail exactly what
they will bring to the project,
expected check-in points, milestones
and goals.
© 2009 STAR Collaborative 6

7. Change Tool #3: Change Magnitude
Assessment
BREADTH of proposed change: Low Moderate High Score
How many functional areas are directly
1-2 3-5 6-all
impacted by the change?
How many roles are directly impacted by the
1-2 3-5 6-all
change?
How many people are directly impacted by the
1-100 100-1000 1000+
change?
Dispersion: Centralized Mixed Decentralized
Overall Score:
Key Learnings:
© 2009 STAR Collaborative 7

8. Change Tool #3: Change Magnitude
Assessment
DEPTH of proposed change: Low Moderate High Score
What type of change is expected: Slight change to Significant change
Same skills
Skills? skills to skills
What type of change is expected: Same Slight change to Significant change
Responsibilities? responsibilities responsibilities to responsibilities
What type of change is expected: Slight change to Significant change
Same workload
Workload? workload to workload
Overall Score:
Key Learnings:
© 2009 STAR Collaborative 8

9. Change Tool #3: Change Magnitude
Assessment
IMPACT on current organization: Low Moderate High Score
Adjustment of current Redefinition of
Business Strategy No change to strategy
strategy current strategy
No or small process Moderate process Redefinition of
Process
changes changes processes
No or small changes to Major enhancements
Tools New tools
existing tools to existing tools
Fully aligned with Requires moderate Requires significant
Culture
current culture culture shift culture shift
Overall Score:
Key Learnings:
© 2009 STAR Collaborative 9

10. Change Tool #3: Change Magnitude
Assessment
CRITICALITY of potential change: Low Moderate High Score
Internal driver (i.e. Creates plan for External driver
Driver:
transition to MS Outlook) external (customer, competitor)
Non-core processes May help drive Core processes
Core:
(i.e. back office) core processes (merchandising)
Not directly tied to Enables strategy Drives strategy
Strategic Relevance:
corporate strategy realization realization
Overall Score:
Key Learnings:
Total Change Impact Estimate:
© 2009 STAR Collaborative 10

11. Change Tool #4: The Change Curve
8
Internalize
7
Institutionalize
Commitment Level
6
Launch
5
Adopt
4
3 Accept
1 2 Understand
Aware
Contact
Time
© 2009 STAR Collaborative 11

12. Change Tool #5: Stakeholder Assessment
Review all players on a particular
project. This is the preliminary list of
all people who should be
incorporated into the project plans.
© 2009 STAR Collaborative 12

13. Change Tool #5.5: The Change Curves
a b c d e
© 2009 STAR Collaborative 13

14. Change Tool #6: Key Role Map
Using your stakeholder assessment,
identify and group all impacted
audiences and their constituents.
Identify detractors and champions
for the coming change.
© 2009 STAR Collaborative 14

15. Change Tool #7: Current & Future State
Definitions
Drive clarity within the project team
on where you are starting with your
project and what specific goals you
want to accomplish.
© 2009 STAR Collaborative 15

16. Current/Future State Definitions
Date: Date:
© 2009 STAR Collaborative 16

17. Change Tool #8: Behavioral Anchors
 Develop leading measures on what
success and failure looks like for each
impacted audience group. What should
you see and hear from as your project
is deployed?
 Create concrete observable behaviors
that will indicate if each of the
impacted audiences are doing and
saying what they should during each
step of the change journey.
© 2009 STAR Collaborative 17

18. Behavioral Anchors for Group A
Change Curve What should we see and hear What should we watch out for?
#
Level from this group? (Negative Behaviors)
1 Contact
2 Aware
3 Understand
4 Accept
5 Adopt
6 Launch
7 Institutionalize
8 Internalize
© 2009 STAR Collaborative 18

19. Steps Up the Change Curve:
What Should You See and Hear?
What good looks like: What to watch out for:
Contact Leaders have built a culture of transparency and clearly Employees are unaware of strategic priorities or are unclear on
communicate company priorities. what is most important.
Aware Employees have received baseline communication about the Employees are surprised by the new change effort or hear it
change effort that is to come. through the rumor mill.
Understand People can clearly articulate what change is coming, how it Employees are unclear how the change affects them in their
affects them, and how to prioritize it. role or how it fits into the company’s priorities.
Accept Impacted audiences are willing and able to process the There is active resistance or apathy to the coming change.
change and are actively participating in the process. People have checked out.
Adopt The proposed change has become the new way of doing Old systems, tools or processes are still being used instead of
things. People are actively engaged and excited. the new change.
Launch The new system , process or toll begins.
Institutionalize The new tool, process or system becomes the standard Old systems and tools are still being used. Active resistance or
operating procedure for the organization’s culture. apathy towards the new change.
Internalize The new tool, process or system becomes the standard Old systems and tools are still being used. Active resistance or
operating procedure for each individual. apathy towards the new change.
These guidelines are general behavioral anchors and should be modified based
on your culture, bandwidth, and readiness for change.
© 2009 STAR Collaborative 19

20. Change Tool #9: Culture Assessment 6
Current Contributors Behaviors & Future
Detractors
Culture Attitudes Culture
Watchers
1 Identify the new desired culture you are trying to create.
2 Evaluate the current culture (behaviors, attitudes, contributors, detractors, watchers).
3 Detail what changes need to be made to move from current to new.
4 Identify key individuals’ roles in change (block it, watch it, help it, make it happen)
5 Determine effective ways to move stakeholders to appropriate level of support.
6 Detail what changes need to be made to move from current to new.
© 2009 STAR Collaborative 20

21. Change Tool #10: Base Deck Communication
Prepare a baseline of communication
vehicles by compiling elevator
messages, future state definitions
and the like.
Using the key role map audiences,
prepare unique messaging in the
language of the recipient.
© 2009 STAR Collaborative 21

22. Change Tool #11: Communication Plan
• Combining the key role map, the
behavioral anchors and the
communication plan strategy, this
document will detail all
communication milestones.
• Imbed the communication plan into
the broader project plan and ensure
that it is seamlessly deployed and
evaluated within the program itself.
© 2009 STAR Collaborative 22

23. Communication Plan: Message Framework
Positioning:
What is the burning imperative of this project?
What does future state look like?
Twitter-Sized Description:
Key words or phrases that makes this
project important.
Audiences:
What interests each audience listed in
the key role map?
Benefits and Attributes:
Key messages about what the project offers
from the point of view of the audience.
Features:
Talking points or detailed messages about the
benefits in the language of the audience.
© 2009 STAR Collaborative 23

24. Change Tool #12: Sponsor Contracting
 Goal: Help leaders understand what and when
they should be expressing, modeling and
reinforcing for this project.
• Break their work into manageable chunks.
• Give them their “Say’s and Do’s”
• Contract it in writing
• Add it to the communication plan
• Add it to the project plan
• Measure it with behavioral anchors
• Monitor it with scorecards and status reports
© 2009 STAR Collaborative 24

25. STAR Collaborative in Monday’s STAR
Tribune Business Section
© 2009 STAR Collaborative 25

26. STAR Collaborative, LLC
Partner of choice for the collaborative network
www.STARcollaborative.com
18120 46th Ave N., Plymouth, MN 55446
p: 763.515.7838
f: 757-299-0932
twitter: STARcollab
References and Sources
1. Corporate Leadership Council 2004 Employee Engagement Framework and Survey, Corporate Leadership Council research
2. “The Hard Side of Change Management,” Harvard Business Review, October 2006.
3. Accenture, “The High-Performance Workforce Study 2006,” 2006. ~Sirkin, Keenan & Jackson
4. Diagrams from Leading Strategic Change: Breaking Through the Brain Barrier by J. Stewart Black and Hal B. Gregersen. © 2003.
5. “Change Management: Case for Action and Manager’s Toolkit,” Corporate Executive Board/Corporate Leadership Council Report,
2007.
6. Modified from The New Leader’s 100-day Action Plan: An On-Boarding Process for Leaders at Every Level, by George Bradt, Jayme A.
Check, Jorge Pedraza. 2006.