Change Management Think Piece Piers Schreiber [email_address] +44 7707 263 782

Key Features of Successful Transformational Change It is designed around the business drivers It wins emotional and intellectual support It models and reinforces the new way of working It puts significant investment into communications It creates experiences that shape future behaviour It aligns all the dimensions of management behind the change It releases talent, creativity and ingenuity – often in unexpected ways Incorporate the drivers into the project plan Develop clear engagement / involvement strategies Accomplished before, during and after implementation Communicate from the very start of the project Align and engage all levels of management behind the change Allow for processing resistance and conflict – natural during change Provide processes that emotionally support people through all parts of the change Key Features Implications

It is designed around the business drivers

It wins emotional and intellectual support

It models and reinforces the new way of working

It puts significant investment into communications

It creates experiences that shape future behaviour

It aligns all the dimensions of management behind the change

It releases talent, creativity and ingenuity – often in unexpected ways

Incorporate the drivers into the project plan

Develop clear engagement / involvement strategies

Accomplished before, during and after implementation

Communicate from the very start of the project

Align and engage all levels of management behind the change

Allow for processing resistance and conflict – natural during change

Provide processes that emotionally support people through all parts of the change

Ten Points of Potential Failure A continued discrepancy between top management statements of values or styles and their actual managerial behaviour – Saying one thing and doing another A big programme of activities without any clear goals for change Confusion between ends and means – the question of ‘training for what’ must be answered Short-term perspective. Three to five years is a realistic time framework for organisational change Lack of coordination between a number of different activities aimed at increasing organisational effectiveness Overdependence on others – either outside consultants or inside specialists Large gap between the commitment to change at the top of the organisation and the transfer of this interest to the middle of the organisation Trying to fit a major organisational change into an old organisational structure The constant search for cookbook solutions Applying an intervention or strategy inappropriately. The tendency to apply someone else’s package

A continued discrepancy between top management statements of values or styles and their actual managerial behaviour – Saying one thing and doing another

A big programme of activities without any clear goals for change

Confusion between ends and means – the question of ‘training for what’ must be answered

Short-term perspective. Three to five years is a realistic time framework for organisational change

Lack of coordination between a number of different activities aimed at increasing organisational effectiveness

Overdependence on others – either outside consultants or inside specialists

Large gap between the commitment to change at the top of the organisation and the transfer of this interest to the middle of the organisation

Trying to fit a major organisational change into an old organisational structure

The constant search for cookbook solutions

Applying an intervention or strategy inappropriately. The tendency to apply someone else’s package

The Need for a Compelling Business Case Strong data-driven rationale A specific research-based reason for change Linked directly to performance goals Clarification and communication of vision Compelling reason and urgency behind change activities Focused strategy for stakeholder engagement Identification of critical audiences and gap analysis Realistic understanding of organisational implications Formal; informal; people; tasks

Strong data-driven rationale

A specific research-based reason for change

Linked directly to performance goals

The Need for a Burning Platform

The Need for a Strong Foundation Create a shared, defined and robust view of the imperatives for change and performance requirement Decide on the vehicle for change (e.g. process redesign, cost reduction, culture change, closer alignment with customers) Assess the organisation’s readiness and capability for change Identify stakeholders

The Change Equation (Beckhard) Information about what is happening to the IFC and me, and why Changing individual behaviour requires both new information and new experiences Vision Dissatisfaction 1 ST Steps Costs $$$ Emotional + + > Information Experience Behaviour + = Perception X ( ) Experience of doing my work in new ways which reinforces the change and engages me potentially My perceptions of the organisation, its management and my own capability A shift in my behaviour and attitudes

Leadership Moving one or more people from where they happen to be to some other place Clear committed leadership is vital to the success of any change

Key Features of Leading Change Making the journey and destination compellingly attractive Helping people see a future they want to be part of Helping people find a purpose and meaning for themselves Requesting commitment Enrolling Enabling Energising Exemplifying Helping people see possibilities for their contribution Challenging self-limiting beliefs Setting (together) stretching targets Building self-esteem, confidence and trust Putting into action Building and sustaining people’s energy Celebrating successes Giving recognition Expressing optimism Demonstrating the behaviours and values that are being required of others

Making the journey and destination compellingly attractive

Helping people see a future they want to be part of

Helping people find a purpose and meaning for themselves

Requesting commitment

Helping people see possibilities for their contribution

Challenging self-limiting beliefs

Setting (together) stretching targets

Building self-esteem, confidence and trust

Putting into action

Building and sustaining people’s energy

Celebrating successes

Giving recognition

Expressing optimism

Demonstrating the behaviours and values that are being required of others

Key Features of Leading Change Explain the basic purpose behind the outcome ‘ What was the problem?’ Who said so and on what evidence? What would have occurred if no one had acted to solve it? What could have happened to us if that had occurred Purpose Picture Plan Part Paint the picture of how the outcome will look and feel What is the outcome going to look, feel and sound like? How are people going to get their work done and interact with each other? How will a day be organised? Lay out the plan for phasing in the outcome Outline steps and schedules in which people will receive information, training & support they need to make the transition People oriented to tell employees how and when their worlds are going to change Start with where people are & work forward to leave the past behind and emerge with new attitudes, behaviours & identity Establish each person’s part in both the plan and the outcome Show employees the role & their relationship to others. Until they see it they can’t adjust hopes & fears to the new reality Show employees what part they play in the outcome & the transition process

Explain the basic purpose behind the outcome

‘ What was the problem?’

Who said so and on what evidence?

What would have occurred if no one had acted to solve it?

What could have happened to us if that had occurred

Paint the picture of how the outcome will look and feel

What is the outcome going to look, feel and sound like?

How are people going to get their work done and interact with each other?

How will a day be organised?

Lay out the plan for phasing in the outcome

Outline steps and schedules in which people will receive information, training & support they need to make the transition

People oriented to tell employees how and when their worlds are going to change

Start with where people are & work forward to leave the past behind and emerge with new attitudes, behaviours & identity

Establish each person’s part in both the plan and the outcome

Show employees the role & their relationship to others. Until they see it they can’t adjust hopes & fears to the new reality

Show employees what part they play in the outcome & the transition process

Transformation Process Set the direction Create the desire & will to change Phase Content Outcomes Part Unfreeze Mobilise Realise Reinforce Sustain Make early changes & build confidence Secure widespread shift in behaviour Underpin with changes in structure & people processes Strive for continuous performance improvement Break with the past Build the energy Perform-ance lift-off Embed new culture Push the limits

Set the direction

Create the desire & will to change

Plan from the Perspective of the Recipients of Change Board Senior Mgmt Team Where do we want them to be? What initiatives will help them get there? Is the ‘load’ of change reasonable & within capabilities? What projects do we need to provide the initiatives Customer Facing Staff Front-line Managers Middle Managers Support Teams Part Unfreeze Mobilise Realise Reinforce Sustain

Where do we want them to be?

What initiatives will help them get there?

Is the ‘load’ of change reasonable & within capabilities?

What projects do we need to provide the initiatives

Plotting Shifts in Commitment (Example) Line Managers Senior Team Board HR Employees Project Sponsor Key Players No Commitment Let It Happen Help It Happen Make It Happen Key: X = Present state O = Minimum commitment needed X X X X X X O O O O O O

Surfacing Potential Barriers Early On Strategy Structure Process Operating principles Culture/behaviour Jobs People Change gets bogged because barriers are not dealt with soon enough or openly enough to keep the change process moving Barriers may exist anywhere and everywhere – even the difficult-to-see places… Leadership Management Resources Systems Rewards Values/Beliefs Capabilities Consider: How will this change effort affect…?

Strategy

Structure

Process

Operating principles

Culture/behaviour

Jobs

People

Change gets bogged because barriers are not dealt with soon enough or openly enough to keep the change process moving

Barriers may exist anywhere and everywhere – even the difficult-to-see places…

Leadership

Management

Resources

Systems

Rewards

Values/Beliefs

Capabilities

Identify Strategies for Closing Critical Gaps Rewards Systems Resources Management Leadership People Culture/Behaviour Operating Principles Process Structure Strategy Strategy Gap Organisational Dimension

Importance of Leadership Communication Actions speak louder than words Day-to-day behaviour and signals need to live the vision Why should I change my behaviour or go the extra mile? Leadership 65% Grapevine ? Systems & Processes 25% Media 10%

Actions speak louder than words

Day-to-day behaviour and signals need to live the vision

The Transition Curve: How Attitudes & Feelings Change Confidence Time “ I’m not sure I know what’s going on” “ I feel overwhelmed” “ I can handle this” “ We can’t do this. It won’t work. We’re not allowed” “ Actually, things might get better” “ This could be a better way of doing it” “ This way is more effective” “ S/he really made the effort to help us implement this change”

Making Sense of the Journey The information they receive Their work and how they do it The context in which they do their work The needs of the organisation To change their behaviour, employees need to see the link between:

Link between desired result & communication approach Level of change Level of involvement Tell Sell Consult Join Awareness Understanding (and Action) Acceptance/ Alignment Ownership/ Engagement

Choosing the Right Communications Tools & Channels Level of change Level of involvement Tell Sell Consult Join Awareness Understanding (and Action) Acceptance/ Alignment Ownership/ Engagement Newsletters, emails, memos, letters, notices Booklets, plenary sessions, presentations, videos, intranets Focus groups, working parties, suggestions schemes, consultative presentations Working sessions, 1-to-1 conversations, workshops, coaching

Information + Involvement to Build Commitment & Change Increasing Commitment Awareness of desired change Understanding of change direction Translation to the work setting Commitment to personal change Internalisation of new behaviour “ Yeah, I saw the memo” “ I understand where we need to go” “ I know how we need to do our jobs differently” “ OK, I’m ready to do it the new way” “ This is the way we do things here” Stages of Individual Behaviour Change Information with some involvement sufficient here Significant involvement needed

Ten Strategies for Employee Involvement Meet regularly with employees and openly discuss the organisational changes and why they occurred Recognise that employees understand that you may not have the answers to everything, but it’s important for them to feel the communications are open and honest Constantly communicate clear goals and vision of the new situation Encourage people to discuss fears and concerns in teams Open ‘suggestion boxes’ for employees to raise questions in anonymity Set up weekly lunches or other informal meetings to discuss the progress of the restructuring process Whenever possible, assign roles and responsibilities in line with peoples interests Develop rituals and marker events that allow people to connect Involve employees affected by the changes in making decisions about what’s best for them Discuss realistic career options with employees and ensure training is available for any new skills that are needed

Meet regularly with employees and openly discuss the organisational changes and why they occurred

Recognise that employees understand that you may not have the answers to everything, but it’s important for them to feel the communications are open and honest

Constantly communicate clear goals and vision of the new situation

Encourage people to discuss fears and concerns in teams

Open ‘suggestion boxes’ for employees to raise questions in anonymity

Set up weekly lunches or other informal meetings to discuss the progress of the restructuring process

Whenever possible, assign roles and responsibilities in line with peoples interests

Develop rituals and marker events that allow people to connect

Involve employees affected by the changes in making decisions about what’s best for them

Discuss realistic career options with employees and ensure training is available for any new skills that are needed

Coaching Others in Building Employee Commitment Identify individuals or groups whose commitment is necessary to the success of the change effort Create and follow a departmental plan to increase commitment of all players Continually encourage and enable employee involvement Continually communicate the goals of the change process Turn covert resistance to overt resistance and then to commitment WALK THE TALK!

Identify individuals or groups whose commitment is necessary to the success of the change effort

Create and follow a departmental plan to increase commitment of all players

Continually encourage and enable employee involvement

Continually communicate the goals of the change process

Turn covert resistance to overt resistance and then to commitment

WALK THE TALK!

What People Pay Attention To: Leader attention, measurement, rewards and controls Leader reaction to critical incidents Leader role modelling, coaching Criteria for recruitment, promotion, retirement and excommunication Formal and informal socialisation Recurring systems and procedures Organisation design and structure Design of physical space Stories and myths about key people and events Formal statements, charters, creeds, codes of ethics etc Between 80-90% of behaviour is determined by the first three points

Leader attention, measurement, rewards and controls

Leader reaction to critical incidents

Leader role modelling, coaching

Criteria for recruitment, promotion, retirement and excommunication

Formal and informal socialisation

Recurring systems and procedures

Organisation design and structure

Design of physical space

Stories and myths about key people and events

Formal statements, charters, creeds, codes of ethics etc