Change Management

Intro To Business

1
 Introduction to Business change
management
Unit one: Defining change management
Unit Two: Individual change management
Unit Three: Organizational change management
Unit Four: Who is involved in managing change
Unit Five: Change management and project
management

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 Change management is:
The process, tools and techniques to manage
the people side of transformation to achieve
the required business results.

33
Organizational change can be represented as three
states of change

States of change

Current Transition Future

state state state

How things How to move How things will

are done today from current be done
to future tomorrow

4
Examples of changes organizations are currently
taking on

Current Transition Future

state state state

Ad hoc processes Documented and managed processes

Multiple, legacy systems One integrated database

Generalists in the call center Specialists in the call center

No web interface for suppliers Supplier website integrated into supply chain

Two different companies Merged organization

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 In reality, there are both organizational and
individual future states

Current Transition Future

Organization
state state state

How I do my How I will do my job after the

job today change is implemented

Individual Current Transition Future

state state state

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The organization’s future state is actually the
collection of many individual future states
Individuals

Organization Current Transition Future

state state state

Current Transition Future

state state state
Future
state Current Transition Future
state state state

Current Transition Future

state state state
Documented and managed processes

One integrated database Current Transition Future

state state state
Specialists in the call center

Supplier website integrated into supply chain Current Transition Future

state state state
Merged organization

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 The focus of change management is helping
individuals make their transition

Individuals
Current Transition Future
state state
Change management drives
state

organization success by supporting Current

state
Transition
state
Future
state
individual transitions required by
organizational projects and initiatives Current
state
Transition
state
Future
state

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There are consequences of not managing the
people side of change
• Lower productivity
• Passive resistance
• Active resistance
• Turnover of valued employees
• Disinterest in the current or future state
• Arguing about the need for change
• More people taking sick days or not showing up
• Changes not fully implemented
• People finding work-arounds
• People revert to the old way of doing things
• The change being totally scrapped
• Divides are created between ‘us’ and ‘them’

9
 Primary reasons for applying
change management

• Increase probability of Business success

• Manage employee resistance to change
• Build change competency in the organization

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Change management perspectives
• Individual • Organizational
perspective perspective

– Understanding how one – The tools that project

person makes a change teams and managers
successfully have to support the
‘people side’ of change

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 The five building blocks of
successful change
Model
Awareness Awareness of the need for change

Desire Desire to participate and support the change

Knowledge Knowledge on how to change

Ability Ability to implement required skills and behaviors

Reinforcement ® © 2012 Prosci and Bill Cigliano

Reinforcement to sustain the change

12
 Forms of the foundation of successful
organizational change
• Ultimately, for a project or initiative to be successful,
individuals in the organization have to do their jobs differently
• provides a framework for understanding how individuals
change
• Managers and project teams can use to:
– Guide organizational change management plans
– Diagnose gaps and root causes of resistance
– Develop corrective actions

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 Prosci® 3-Phase Change
Management Process
Prosci’s Change Management Process

organizational
change management process

• A structured process for managing

the ‘people side’ of change on a
project or initiative
– Research-based
– Holistic
– Easy-to-apply
– Scalable

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Phase 1 – Preparing for change

• Understanding the
nature of the change
• Understanding the
groups being changed
• Creating the right
sponsorship model and
coalition
• Identifying risks
• Developing special
tactics

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Phase 2 – Managing change

• Communication plan
• Sponsor roadmap
• Training plan
• Coaching plan
• Resistance mgmt plan

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Phase 3 – Reinforcing change

• Compliance audit reports

and employee feedback
• Corrective action plans
• After action review
• Transition management

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Connecting individual and organizational
change management
Change Individual phases
management of change
tools
Communications Awareness

Sponsor roadmap Desire

Coaching Knowledge

Resistance management Ability

Training Reinforcement™

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 Who is involved in managing change

• The change management

resource on a project plays
Senior leaders Project team the role of enabler
– The conductor of the
orchestra
– The director of the play
Change
management • Effective change
management requires
involvement and action by
many in the organization
Managers and
Employees
supervisors

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 Senior leaders

• Why is this group important?

– Active and visible sponsorship is identified as the
top contributor to overall project success in
Prosci’s five benchmarking studies
Senior leaders Project team – Senior leaders are one of two preferred senders
of messages about change

Change • What is this group’s role?

management – Participate actively and visibly throughout the
project
– Build the needed coalition of sponsorship with
Managers and peers and other managers
Employees – Communicate the business messages about the
supervisors
change effectively with employees

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 Managers & supervisors

• Why is this group important?

– Managers and supervisors are the other
preferred sender of messages about change
– This group has a unique and well-developed
Senior leaders Project team
relationship with the employees being impacted
by the change

Change • What is this group’s role?

management – Communicate the personal messages about the
change with their direct reports
– Conduct group and individual coaching sessions
Managers and – Identify, analyze and manage resistance
Employees
supervisors – Provide feedback to the rest of the change
management ‘gears’

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 Employees

• Why is this group important?

– Employees will ultimately make changes to how
they do their day-to-day work
– Their acceptance and use of the solution
Senior leaders Project team determines the success of the project and the
ongoing benefit derived from the change
–
Change • What is this group’s role?
management – Seek out information related to the business
reasons for change and the personal impact of
the change
– Provide feedback and reaction to the change
Managers and
supervisors
Employees and the change management efforts
– Take control of the personal transition (using an
individual change management model like
ADKAR)

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 Project team

• Why is this group important?

– The project team designs and develops the
‘change’ – they are the ones who introduce new
processes, systems, tools, job roles and
Senior leaders Project team responsibilities
– This group provides much of the specific
information about the change to the other
‘gears’
Change
management
• What is this group’s role?
– Provide timely, accurate and succinct
information about the change (or project)
Managers and
supervisors
Employees – Integrate change management activities into
project management plans and activities

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 Change management is like project
management

• However, it is the ‘people side’ of change

• Both aim to deliver value to the business by

supporting initiatives and projects

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 Change management and
project management

Technical side
Project management of the project

Current Transition Future

state state state

People side of
Change management
the project

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 Comparing processes

• Project management • Change management

– Initiation – Organizational:
– Planning • Preparing for change
– Executing • Managing change
• Reinforcing change TM

– Monitoring and controlling

– Individual:
– Closing
• Awareness
• Desire
• Process groups defined in the Project
Management Institute’s PMBOK® • Knowledge
• Ability
• Reinforcement ®

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 Comparing tools
• Project management
– Statement of work
– Project charter
– Business case
– Work breakdown structure
– Budget estimations
– Resource allocation
– Schedule
– Tracking
• Change management
– Individual change model
– Readiness assessment
– Communication plans
– Sponsorship roadmaps
– Coaching plans
– Training plans
– Resistance management
– Reinforcement
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 The right amount
• How much project
management is needed?
– Depends on the complexity
and degree of change to
processes, systems,
organization structure and job
roles
• How much change
management is needed?
– Depends on the amount of
disruption created in
individual employees’ day-to-
day work and the
organization attributes like
culture, value system and
history with past changes
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 Integrating change management and
project management activities

• Project management and change management

activities are most effective when they are
integrated

• Unfortunately, in many instances change

management is an add-on after the project has
experienced obstacles

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 Problem or
opportunity

Planning

Business
improvement Design
steps

Development

Implementation

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Assessments

Team and
sponsors

Change
Communications management
process

Coaching and
feedback

Resistance
management

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Business
improvement
steps
Change
management
process

32
Business
improvement
steps

Change
management
process

33
 Research results
When to start change management

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 Conclusion
• Change management focuses on the ‘people side’ of
organizational change
• Change management involves both an individual and an
organizational perspective
• Change management requires action and involvement by
leaders and managers throughout the organization
• Change management and project management are both tools
that support project benefit realization – project management
is the ‘technical’ side and change management is the ‘people’
side
• Change management is most effective when it is launched at
the beginning of a project and integrated into the project
activities

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