ENABLING

ENTERPRISE
CHANGE
MANAGEMENT

HOW-TO GUIDE
 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:

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 & Techniquesç

Read this report to understand why many change management efforts fail, and to learn best prac-
tices for effective change.

Change Management Defined

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.

2 ENABLING ENTERPRISE CHANGE MANAGEMENT HOW-TO GUIDE

Four Key Types of Organizational Change
There are four key types of organizational 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.

Requirements for Effecting 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:

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.

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.

3 ENABLING ENTERPRISE CHANGE MANAGEMENT HOW-TO GUIDE

Gathering Buy-in From Key Stakeholders
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:

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

Change Management Tools & Techniques

Use our Change Management Plan to assess your organizations readiness for implementing 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 object-
ives, initiatives, measures, and targets, for the next 12-18 months. A project portfolio can also be
helpful in documenting roll out for change initiatives.

4 ENABLING ENTERPRISE CHANGE MANAGEMENT HOW-TO GUIDE

 Action Plan
STEP 1 - Establish Need

1 Establish
Need Establish the Need for
Change

2 Steering Committee
Build momentum and urgency
for the change by examining
market conditions and
competitive forces. Identify
Vision &
3 Strategy risks, potential crises, and
opportunities for adapting the
organization to the situation.
Use our Change Management
Reinforce
4 Change
Readiness Assessment to
examine your organizations
readiness for change.

Empower
5 Employees

6 Short-Term Wins
Change Management
Readiness Assessment

7 Consolidate VIEW RESOURCE

Anchor
8 Approaches

5 ENABLING ENTERPRISE CHANGE MANAGEMENT HOW-TO GUIDE

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