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This report has been designed to provide practical advice for maximizing opportunity and reducing
risk for change initiatives.
Use this brief report to learn:
Read this report to understand why many change management efforts fail, and to learn best practices
for effective change.
HOW-TO GUIDE
Definition of Change Management
Four Key Types of Organizational Change
Requirements for Effecting Change
Gathering Buy-in from Key Stakeholders
Change Management Best Practices
Change Management Tools & Techniques
2. 2 Enabling Enterprise Change Management How-to Guide
This report has been designed to provide practical advice for maximizing opportunity and reducing
risk for change initiatives.
Use this brief report to learn:
Read this report to understand why many change management efforts fail, and to learn best prac-
tices for effective change.
HOW-TO GUIDE
Definition of Change Management
Four Key Types of Organizational Change
Requirements for Effecting Change
Gathering Buy-in from Key Stakeholders
Change Management Best Practices
Change Management Tools & Techniques
Enabling Enterprise
Change Management
Organizational change provides the opportunity for organizations to build more focused, disci-
plined, and mature businesses. This opportunity comes with significant financial risk if changes
are not planned and managed proactively.
Change management is primarily concerned with how to understand, engage, respond, and
communicate with PEOPLE. A solid vision, senior management sponsorship, and having the
right people in the right roles, are the key success factors for implementing a successful change
management campaign.
Change Management Defined
3. 3 Enabling Enterprise Change Management How-to Guide
There are four key types of organizational change:
Use our Change Management Readiness Assessment to ensure you are prepared for change.
Before embarking on a major change initiative, ensure your organization has considered these
key requirements:
Ensuring that your change effort is aligned with the overall business strategy, links directly to
employee career objectives, and is managed by a senior sponsor, will provide a solid founda-
tion for implementing successful programs. Use our Stakeholder Analysis Matrix to evaluate key
stakeholders willingness to change.
Four Key Types of Organizational Change
Requirements for Effecting Change
1. Process Change - these focus on how workflows are managed with an effort to streamline
business processes to increase efficiencies, reduce costs, and improve quality. For example,
changing accounting systems and processes.
2. Structural Change - these focus on changing organizational structures such as reporting rela-
tionships, mergers & acquisitions, and centralization initiatives. Normally, these changes are
top-down and geared to improve the overall financial performance of a business.
3. Cost Containment - these changes are focused on eliminating any costs that are not essen-
tial for operation. Typically, cost containment initiatives are the result of a tight economy for a
particular industry or poor sales results.
4. Cultural Change - as organizations move from a product-centric business to a customer-cen-
tric enterprise, changes to organizational norms and attitudes must be made.
1. Senior Management Sponsorship - it is essential that a senior leader who is capable of
communicating the strategic vision for the change has accepted responsibility for the effort.
This leader must have access to all critical stakeholders, and have solid project management
skills. Use our Stakeholder Analysis Matrix to evaluate key stakeholders willingness to change.
2. Educated and Engaged Employees - employees must: understand why the change needs to
occur; be involved in the planning & implementation of the change; be capable of participating
in the change effort; and help others adapt.
3. Alignment of Business & Personal Objectives - it is critical that you positively reinforce the
change by aligning business objectives with personal objectives for each employees, manager,
and senior executive. For example, link performance reviews and bonus structures to metrics
associated with the goals & objectives of the new programs.
4. 4 Enabling Enterprise Change Management How-to Guide
It is safe to assume that the majority of your staff will NOT be evangelists of the proposed change.
In most cases, senior management view change as an opportunity for the organization and for
themselves. Conversely, change is often seen as disruptive, unnecessary, and frightening for
employees.
Research indicates that less than 20% of your employees will immediately recognize the need and
value of the change, 50% will be sit on the fence, and around 30% will not initially be supportive
of the change.
Similar to government politics, your goal is to leverage the supportive 20% to influence the 50%
majority, while minimizing the influence of the 30% who are likely to never agree with the change.
Following are a few tips from Cynthia Scott and Dennis Jaffe who are regarded as experts in the
change management field:
Gathering Buy-in From Key Stakeholders
1. Have a Good Reason for the Change
2. Involve People in the Change
3. Put a Respected Person in Charge of the Process
4. Create Transition Management Teams
5. Provide Training in New Values & Behavior
6. Bring in Help from Outside if Necessary
7. Establish Symbols of Change
8. Acknowledge & Reward People
Use our Change Management Planning Tool to assess your organizations readiness for imple-
menting a major change initiative. This tool will ensure you have a sufficiently powerful sponsor, and
the means to enable successful change programs. You should also use our Change Management
Strategy Scorecard to document change objectives, initiatives, measures, and targets, for the next
12-18 months. A project portfolio can also be helpful in documenting roll out for change initiatives.
Change Management Tools & Techniques
5. 5 Enabling Enterprise Change Management How-to Guide
Action Plan
STEP 1 - Establish Need
3
Vision &
Strategy
1 Establish
Need
7 Consolidate
8
Anchor
Approaches
6 Short-Term Wins
4
Reinforce
Change
2 Steering Committee
5
Empower
Employees
Build momentum and urgency
for the change by examining
market conditions and
competitive forces. Identify
risks, potential crises, and
opportunities for adapting the
organization to the situation.
Use our Change Management
Readiness Assessment to
examine your organizations
readiness for change.
Establish the Need for
Change
Change Management
Readiness Assessment
V I E W R E S O U R C E
6. 6 Enabling Enterprise Change Management How-to Guide
Action Plan
STEP 2 - Steering Committee
Create a cross-functional
steering committee that
has the power to invoke the
changes that need to be made.
This inter-departmental team
must quickly gel and check
their egos at the door.
Work from a Steering
Committee
Steering Committee Charter
3
Vision &
Strategy
1 Establish Need
7
8
6
4
2 Steering
Committee
5
V I E W R E S O U R C E
Reinforce
Change
Empower
Employees
Short-Term Wins
Consolidate
Anchor
Approaches
7. 7 Enabling Enterprise Change Management How-to Guide
Action Plan
STEP 3 - Vision & Strategy
Use a project plan to articu-
late how the change will be
managed. Communicate the
vision of the goal-state, and
devise strategies to accom-
plish the desired outcomes
and objectives.
Develop a Vision &
Strategy
Change Management Plan
3 Vision &
Strategy
1
7
8
6
4
2 Steering Committee
5
V I E W R E S O U R C E
Establish Need
Reinforce
Change
Empower
Employees
Short-Term Wins
Consolidate
Anchor
Approaches
8. 8 Enabling Enterprise Change Management How-to Guide
Action Plan
STEP 4 - Reinforce Change
Use all channels to communi-
cate the vision. Create signs,
slogans, and team charters.
Communicate updates on
your intranet, via email, and
during staff meetings on a
regular basis.
Reinforce the Change
Vision
1
7
8
6
4 Reinforce
Change
2
5
Establish Need
Steering Committee
Vision &
Strategy
Empower
Employees
Short-Term Wins
Consolidate
Anchor
Approaches
9. 9 Enabling Enterprise Change Management How-to Guide
Action Plan
STEP 5 - Empower Employees
Clear any obstacles to
achieving the vision; change
structures or systems that
obstruct the required change;
encourage risk-taking and
non-traditional ideas, activities,
and actions.
Empower your Employees1
7
8
6
4
2
5 Empower
Employees
Establish Need
Steering Committee
Vision &
Strategy
Reinforce
Change
Short-Term Wins
Consolidate
Anchor
Approaches
10. 10 Enabling Enterprise Change Management How-to Guide
Action Plan
STEP 6 - Short-Term Wins
Plan and monitor visible
improvements in performance
(wins). When small achieve-
ments are made, recognize
your employees in front of their
colleagues and peers.
Generate Short-Term Wins1
7
8
6 Short-Term
Wins
4
2
5
Establish Need
Steering Committee
Vision &
Strategy
Reinforce
Change
Empower
Employees
Consolidate
Anchor
Approaches
11. 11 Enabling Enterprise Change Management How-to Guide
Action Plan
STEP 7 - Consolidate
Use increased credibility from
short-term wins to change all
systems, policies, and struc-
tures that don’t fit with the
transformational vision.
Hire, promote, and develop
people who are agents of posi-
tive change.
Reinvigorate the change
program with new projects,
themes, and change agents.
Consolidate Gains &
Produce More Change
1
7 Consolidate
8
6
4
2
5
Establish Need
Steering Committee
Vision &
Strategy
Reinforce
Change
Empower
Employees
Short-Term Wins
Anchor
Approaches
12. 12 Enabling Enterprise Change Management How-to Guide
Action Plan
STEP 8 - Anchor Approaches
Improve performance by
adopting a more custom-
er-centric, and productivity-ori-
ented behavior.
Articulate connections
between new behaviors and
organizational success.
Develop effective leadership
and succession processes.
Anchor New Approaches
in the Culture
1
7
8 Anchor
Approaches
6
4
2
5
Establish Need
Steering Committee
Vision &
Strategy
Reinforce
Change
Empower
Employees
Short-Term Wins
Consolidate