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Organization change revisited. How to get plugged in
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Organization change revisited. How to get plugged in
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Organization change revisited. How to get plugged in
1. Organization Change Revisited: How to get plugged inShirley A. Williams ~~~~~It is puzzling how many times the importance of change management is discussed in the businessenvironment and yet so few actually incorporate change management plans in their business initiatives.How is it that our business leaders will often address their management team with the importance ofbecoming more adept at managing change but do so little to nurture this organization capability? In fact, Iventure to say that change management has become THE BUZZ word of 2008 and given the state ofaffairs, it will continue to be so for years to come. A morning read of a newspaper article highlighted thehigh pace of change and the need to manage it - or suffer the consequences of being stuck in the past. Isthere anything unusual about this article? The answer ismost likely “No”. The only quandary is that this was written FIGURE 1. 1929 NEWSPAPER CLIPPINGS (The Telegraph Journal & The New York Times Magazine)in 1929 when you could get a newspaper for three centsand the speed on the highway was not related toinformation (Figure 1). In 1929, the change was related to“mechanical automation”. The only difference today is thenature of the change. Change is a constant. So why is itthat after so many decades we continue to recognize thehigh speed of change, however our change managementapproach continues to be a mystery? To many leaders,change management is an amorphous concept and as aresult they have a tendency to shy away from it.Organization Change Management DefinedChange management means different things to different people and so in order to manage it, we need todefine it. I would like to start with “What it is not”. It is not an event; it is not Human Resources; it is not aconsultant; it is not project change control; it is not one person’s job; and it is not an organization structure.I would now like to offer this definition: Organization change management is a cross-functional, integratedprocess with tools and techniques to enable people to move from their current state, and transition to thepreferred future state of an organization’s vision. When successfully exercised repetitively, an organizationwill have also built a strategic capability to manage and expedite business change, so that they can readilytake advantage of competitive opportunities. Such an organization has invested in an integrated changecompetency, or resiliency, that embraces change as a business norm. Change management is related tothe people-side of an initiative and it means managing the “soft-side” of the change. Change managementis hard work and often poorly addressed. When not addressed, it is also unfortunately a lost opportunitythat would otherwise build change elasticity in an organization which could be a business advantage forthe very reasons described above.Business Strategies Pitfalls and Change Management.Business strategies fail to deliver for a number of reasons. The list below, describes some of the commonpitfalls. Some reasons related to the strategic plan itself and include: failing to define the future vision developing a superficial vision conducting only a long-range financial plan Shirley Williams page 1 November 24, 2008 Principal Consultant. William Pearl & Associates. firstname.lastname@example.org © Copyright 2008 William Pearl & Associates
Organization Change Revisited: How to get plugged inShirley A. Williams failing to make tough decisions failing to clarify and simplify objectives forgetting that people support what they help create neglecting the competition and business environment using confusing terminology and language failing to integrate planning at all levels of the organization conducting “business as usual” after the “ strategic planning event”.Pitfalls are also related to the actual implementation, namely: frequently changing priorities inconsistent decisions and directions an ineffective implementation process poor project management difficultly in building and keeping momentum low commitment failure to provide the needed resources conflicts politics weak re-enforcement or consequencesWith a closer inspection of these pitfalls, you will note FIGURE 2. THE CHANGE GAP IBM GLOBAL BUSINESS SERVICES: SURVEY OF CEOs 1.that many are related to people and culture. In an on- The gap between the expectation of change and an organization’s history of managing change is growinggoing study1 with top CEOs regarding their EXPECT SUBSTANTIAL CHANGE 65%perspective on managing large scale change, CEOs 2006 8% CHANGED SUCCESSFULLY IN THE PAST CHANGE GAPshared their expectations (see Figure 2). This 57%research showed that there is a significant gap with 83%the rate of business change and the ability to actually EXPECT SUBSTANTIAL CHANGEmanage the change. Furthermore, this “change gap” 22% CHANGE GAP 2008 CHANGED SUCCESSFULLY IN THE PASThas widened three times over the last two years. This 61%provides additional support to why there is a need forbusiness leaders to manage change effectively if they are to remain competitive. However, so fewinitiatives include a comprehensive organization change strategy and management plan.Best Practices and Critical Success Factors in Change ManagementProsci is an independent research company who are well known for their extensive research onorganization change. Their research spans ten years of study, includes over 1000 organizations and 59countries. In their best practice study2,3, Prosci showed that the critical success factors for changemanagement are:1. active and visible executive sponsorship2. a structured change management approach3. the need and vision for change was widely communicated4. dedicated change management resources5. employee involvement Shirley Williams page 2 November 24, 2008 Principal Consultant. William Pearl & Associates. email@example.com © Copyright 2008 William Pearl & Associates
Organization Change Revisited: How to get plugged inShirley A. Williams In a similar but separate study1, IBM Global Business Services showed similar findings (Figure 3). Bothresearch efforts showed that top, executive sponsorship is the number one critical success factor tosucceed in large scale initiatives. In addition to the critical success factors forchange, Prosci 2,3 also showed the key FIGURE 3. WHAT MAKES CHANGE SUCCESSFUL IBM GLOBAL BUSINESS SERVICES CHANGE MANAGEMENT STUDY 1. Leadership, employee engagement and open communication are prer equisites forobstacles to change, they are: successful change1. ineffective sponsorship from senior Soft factors Hard factors leaders Incentives 19%2. employee resistance Organization structure 33%3. poor support and alignment with middle Performance measures 36% management Training programs 38%4. lack of change management resources Change agents 55% and planning Corporate culture for 65% change Honest and timely 70% communicationAgain, IBM’s findings (shown in Figure 4.) Employee involvement 72%were similar. These studies support the fact Top management 92% sponsorshipthat change management is not one person’srole; it is a shared accountability and FIGURE 4. MAJOR CHANGE CHALLENGESengagement. As highlighted here, top IBM GLOBAL BUSINESS SERVICES CHANGE MANAGEMENT STUDY 1. The most significant challenges when implementing change project s are people oriented.executive sponsorship is crucial. This Technology barriers 8% Soft factorssponsorship is required throughout the Change of IT systems 12% Hard factorsduration of an initiative. It is not enough to Change of process 15% Lack of involved employees 16%introduce or provide a short presentation at a Lack of transparency 18%kick-off meeting and then only surface at the Lack of change know how 20%end of the initiative. It is critical that the Lack of mangement commitment 32% shortage of resources 33%sponsor is visibly active and engaged for the Complexity underestimated 35%long run of the project with their teams and Corporate culture 49%employees. Change mindsets and attitudes 58%Change Management Models and ValueIn the mid- 90s, Dr. Michael Hammer was the driving force behind leading the charge on corporate re-engineering4. Hammer turned the business world upside down, as he drove the concept of businessprocess transformation and organization change. Dr. Hammer recognized that if organizations are tosucceed in their quest of large scale transformation, it required a deliberate focus and attention to thehuman dimension and complexity of the change. Over ten years later, research continues to validate thisposition. This is shown in Figure 4. This data indicates that when the complexity of an initiative is notunderstood, it becomes a serious hurdle to the change implementation. It is evident that changecomplexity drives the need for appropriate resources; however there is an additional human dimension tothis factor. It is the potential emotional burnout associated with the implementation that could easily occur.This can also be linked to the lack of any tangible visible benefit generated during the implementation.Understanding the complexity and value of the sub-projects provides a method of phasing the project,such that incremental project benefits can be generated at predetermined intervals as the project is Shirley Williams page 3 November 24, 2008 Principal Consultant. William Pearl & Associates. firstname.lastname@example.org © Copyright 2008 William Pearl & Associates
Organization Change Revisited: How to get plugged inShirley A. Williamsdeployed throughout the duration of the endeavor. When a project is phased in this manner, it naturallybuilds momentum and energizes the organization during the project implementation. Furthermore, assuccesses are experienced, it drives the conversion of skeptical stakeholders. This is one tactic to reduceresistance to a project. Delivering small “packets of value” throughout the implementation buildsconfidence within the organization.Prosci has an excellent model to specifically managethe change process3. The Prosci ADKAR model ® FIGURE 5. ADKAR MODEL 3provides a framework for understanding change at an Awareness of the need for change Aindividual level and consequently provides a pragmatic Desire to support and participate in the change Dapproach for organization change. The ADKAR model Knowledge of how to change Khas five elements or objectives as shown in Figure 5. Ability to implement required skills and A behaviors Reinforcement to sustain the changeAwareness represents a person’s understanding of the Rnature of the change including the internal and externaldrivers that created the case for change. This Prosciincorporates the change vision and the “what’s in if forme”. Desire represents the willingness to support andengage in the change. Knowledge represents the information, training and education necessary to knowhow to change. Ability represents the realization of the change. Ability is turning knowledge into action.Reinforcement represents those internal and external factors to sustain the change. The model stipulatesthat you need to address all five components to manage the change process and ultimately to succeed.The model provides a methodology to help move people from their current state and transition them totheir future state. The organization levers to enable these components are sponsorship, communication,coaching, training and resistance management. The simplicity of the ADKAR model makes it a veryflexible tool that is readily scaleable to the scope of any change program. Prosci also provides guidelineson required change management roles (Figure 6) which includes the primary sponsor, the changeleadership coalition, managers, supervisors, HumanResources, Training and the project team. Building on ®these guidelines, I would offer that the project team also FIGURE 6. ADKAR MODEL AND CHANGE MANAGEMENT PLAYERS 3plays a role in Awareness and Desire in that they should A D K A Rwork closely with their functional team and leaders. They Primary Sponsorprovide valuable information for the messaging and the Leadership coalition bridge for collaboration. I like to think of these roles and Managers and supervisors responsibilities as a Change Matrix with key stakeholders HR and Training having key accountabilities. These stakeholders need to Project Team SW recommended SW recommendedbe “plugged-in” and know their role in order to drive a Proscisuccessful change.SummaryA Google search for “change management models” will provide over 9000 hits. There is an ever growinglist of change management models to choose from. I have personally used the above data and modelssuccessfully when I have led change programs or initiatives. In summary, I would like to leave you with Shirley Williams page 4 November 24, 2008 Principal Consultant. William Pearl & Associates. email@example.com © Copyright 2008 William Pearl & Associates
Organization Change Revisited: How to get plugged inShirley A. Williamsthese final points: 1) Regardless of the change management model you use, it is important that it isplanned very early in the program, ideally during the strategy discussions. If this is not feasible, it shouldbe integrated very early in the planning stages of the initiative. Integration is key to success. 2) You mustmarry the right tool with the right scope, thus it is important to assess the change complexity early in theinitiative. 3) As the above research showed, it is critical to have an engaged and visible primary sponsor.4) Use simple language to articulate the change vision and business drivers. 5) You should also rememberpeople implement what they believe they have created. So as well as having an excellent communicationplan, it is advantageous to facilitate some level of stakeholder involvement. 6) There is significantadvantage to phasing an initiative to deliver incremental value and excitement throughout the duration ofthe program. 7) An integrated comprehensive change management program will significantly increase thechances of success to deliver value of that new business and organization reality.References 1. Making Change Work. IBM Business Consulting Services. Hans Henrik Jogensen, Lawrence Owen and Andreas Neus. 2008 (http://www-935.ibm.com/services/us/index.wss/ibvstudy/gbs/a1030541?cntxt=a1005266 ). 2. Best Practices in Change Management. Prosci Benchmarking Report. Time Creasey and Jeff Hiatt. 2007 (http://www.change management.com/best-practices-report.htm ). 3. ADKAR: A Model for Change in Business, Government and Our Community. Jeffrey Hiatt. 2006. 4. The Reengineering the Corporation. Michael Hammer and James Champy 1993.About the AuthorShirley Williams has more than 20 years experience in organization business change and project management.She has led numerous initiatives with a geographical scope that has included Canada, US, The South Americas,Europe and Australia. Shirley’s professional career spans Biotechnology, Brand & Generic Pharmaceuticals andIBM Business Consulting Services. She currently provides leadership in Strategy, Organization Change andProject Management as a Principal Consultant at William Pearl and is also the Vice-Chair for Toronto,BioPharmaPM. Shirley is a certified practitioner and professional of Change (Prosci) and Project Management(PMP/PMI). She may be reached at firstname.lastname@example.org . Shirley Williams page 5 November 24, 2008 Principal Consultant. William Pearl & Associates. email@example.com © Copyright 2008 William Pearl & Associates
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