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What is Organisation Change Management?
• Change Readiness Acceleration
• Change Leadership Development
• Performance Lever Gap Analysis
• Stakeholder Involvement Strategies
• Culture and Values Alignment
• Transition Planning and Management
• Team Development
• Organisational Learning
• Clear and Compelling Business Case
for the Change
• Engaged, Skilled Change Leaders
and Sponsors
• Accelerated Change Readiness
• Flexible and Adaptive Workforce
• Leverage Learning Capability
FocusFocus OutcomeOutcome
A structured approach that helps manage the people components duringA structured approach that helps manage the people components during
a business transformation initiative to realise the desired outcomesa business transformation initiative to realise the desired outcomes
A structured approach that helps manage the people components duringA structured approach that helps manage the people components during
a business transformation initiative to realise the desired outcomesa business transformation initiative to realise the desired outcomes
Why the need for Change Management?
SOLUTION IDENTIFICATION
WRONG RIGHT
SOLUTION
IMPLEMENTATION
EFFECTIVEINEFFECTIVE
I
III
IV
II
70% of
occurrences
10% of
occurrences
10% of
occurrences
10% of
occurrences
The value of MIS Upgrade Project is realised only through
successful implementation
CellCell Impact on Desired
Business Objectives
Impact on Desired
Business Objectives
II FailureFailure
IIII FailureFailure
IIIIII FailureFailure
IVIV
SuccessSuccess
Why efforts fail
PERCEPTION
TECHNOLOGY INFRASTRUCTURE MANAGEMENT
OF CHANGE
Why efforts fail
PERCEPTION
TECHNOLOGY
REALITY
INFRASTRUCTURE
MANAGEMENT
OF CHANGE
Commitment versus Compliance
 Commitment building costs are significantly less
than the cost of:
managing post-implementation resistance
compromised implementation efforts
project failure
Pay now...
or pay later?
Commitment versus Compliance
 Commitment is a powerful phenomenon in transition
management
 Commitment generates productive behaviour
without the need for monitoring
 Compliance may result in similar behaviour, but
rarely generates initiative. Compliance strategies
rely on external enforcement
Detailed Workplan
Proposed Approach to
Organisational Change Management
Phase 1
Change Readiness Assessment
WhatWhatWhatWhat
HowHowHowHow
BenefitBenefitBenefitBenefit
Value ofValue of
ApproachApproach
Value ofValue of
ApproachApproach
Identifies key factors which may help or hinder the change process and
is used to determine BIMB’s readiness to change. Action plans can then
be developed to leverage strengths and minimise potential risks.
Identifies key factors which may help or hinder the change process and
is used to determine BIMB’s readiness to change. Action plans can then
be developed to leverage strengths and minimise potential risks.
A series of one day workshops delivered to a select number of staff
representing identified stakeholder groups. Surveys and other tools
will be used to identify potential risks to MIS implementation.
A series of one day workshops delivered to a select number of staff
representing identified stakeholder groups. Surveys and other tools
will be used to identify potential risks to MIS implementation.
Action plans to address implementation issues
Greater ownership and awareness of MIS Upgrade Project
Action plans to address implementation issues
Greater ownership and awareness of MIS Upgrade Project
Structured approach to identify potential implementation risks
Consistent application of E&Y world-wide OCM tools
Objective methods to determine potential implementation risks
Involvement of stakeholder groups throughout Bank
Comparison of perceived risks across management levels and locations
Comparison of perceived risks over time
Structured approach to identify potential implementation risks
Consistent application of E&Y world-wide OCM tools
Objective methods to determine potential implementation risks
Involvement of stakeholder groups throughout Bank
Comparison of perceived risks across management levels and locations
Comparison of perceived risks over time
Change Readiness Assessment
PowerfulPowerful
BusinessBusiness
CaseCase
VisionVision
ClarityClarity
ChangeChange
Leadership &Leadership &
AccountabilityAccountability
ChangeChange
SpecificSpecific
CommunicationCommunication
IntegratedIntegrated
PlanningPlanning
& Teams& Teams
IncreasedIncreased
ChangeChange
CapabilityCapability
AlignedAligned
PerformancePerformance
& Culture& Culture
StakeholderStakeholder
CommitmentCommitment
Implementation Factors for Success...
Communications Strategy and Plan
Value ofValue of
ApproachApproach
Value ofValue of
ApproachApproach
Determines the strategies, goals, themes, messages and vehicles used to
communicate with key stakeholders (internal and external) throughout
the duration of the MIS Upgrade Project.
Determines the strategies, goals, themes, messages and vehicles used to
communicate with key stakeholders (internal and external) throughout
the duration of the MIS Upgrade Project.
Working directly with Project Teams and Task Force staff, drawing
on the results of the Change Readiness Assessment and using Consultant’s
methods to identify most appropriate communications methods.
Working directly with Project Teams and Task Force staff, drawing
on the results of the Change Readiness Assessment and using Consultant’s
methods to identify most appropriate communications methods.
Accelerates contact, awareness, understanding and acceptance of the
intended changes
Reduces stakeholder resistance resulting in positive action
(thinking and behaviour)
Greater ownership and awareness of MIS Upgrade Project
Accelerates contact, awareness, understanding and acceptance of the
intended changes
Reduces stakeholder resistance resulting in positive action
(thinking and behaviour)
Greater ownership and awareness of MIS Upgrade Project
Structured approach to develop communication plans
Consistent application of Consultant’s world-wide OCM tools
Greater re-use of data collected during Change Readiness Assessment
Structured approach to develop communication plans
Consistent application of Consultant’s world-wide OCM tools
Greater re-use of data collected during Change Readiness Assessment
WhatWhatWhatWhat
HowHowHowHow
BenefitBenefitBenefitBenefit
Communications
Building Commitment Through Communications is a process...
Time
Preparation
Phase
Acceptance
Phase
Communication
Phase
Grudging
Compliance
Formal
Compliance
Genuine
Compliance
Installation InstallationInstallation
Commitment/
Compliance
Threshold
Disposition
Threshold
Adoption
Institutionalization
Internalization
Understand
the Change
Positive Perception
Understand
the Change
Awareness
Awareness
Awareness
I Contact
Noncommitment Noncommitment Noncommitment
OC160
Change Facilitator Network
Value ofValue of
ApproachApproach
Value ofValue of
ApproachApproach
Establishing an internal network of change champions to build awareness
and understanding of change management principles.
Establishing an internal network of change champions to build awareness
and understanding of change management principles.
Network is established initially by involving client staff in a one day
workshop to explore business change principles and concepts within
the context of the MIS Upgrade Project.
Network is established initially by involving client staff in a one day
workshop to explore business change principles and concepts within
the context of the MIS Upgrade Project.
Establishing a change infrastructure of staff who will promote the
Bank MIS Upgrade Project
Generating greater communication across the branch network
Involvement of those most affected by the changes
Greater understanding of change and their important role in the process
Establishing a change infrastructure of staff who will promote the
Bank MIS Upgrade Project
Generating greater communication across the branch network
Involvement of those most affected by the changes
Greater understanding of change and their important role in the process
Structured approach to managing change
Opportunities for testing management potential
Build on Change Readiness Assessment results
Develop a link to customer facing staff in the branches
Opportunities for breaking down barriers between branches
Structured approach to managing change
Opportunities for testing management potential
Build on Change Readiness Assessment results
Develop a link to customer facing staff in the branches
Opportunities for breaking down barriers between branches
WhatWhatWhatWhat
HowHowHowHow
BenefitBenefitBenefitBenefit
Change Facilitator - Tips
 Involve those most impacted by the changes
 Develop objective method for selecting candidates
 Select staff of equivalent seniority
 Select staff who are:
well regarded by their peers
credible
reliable
eager to learn and be involved
“opinion leaders”
 Do not select staff:
who are perceived to be management mouthpieces
Transition Management Plan
Value ofValue of
ApproachApproach
Value ofValue of
ApproachApproach
Incorporates data gathered during the Change Readiness Assessment,
Change Facilitator workshops and communication planning stages to
produce a comprehensive roadmap addressing the human aspects of
change for the duration of the project. It will also provide other people
related issues which are beyond the scope of Phase 1.
Incorporates data gathered during the Change Readiness Assessment,
Change Facilitator workshops and communication planning stages to
produce a comprehensive roadmap addressing the human aspects of
change for the duration of the project. It will also provide other people
related issues which are beyond the scope of Phase 1.
Working with project managers and the Task Force to thread together all
relevant information.
Working with project managers and the Task Force to thread together all
relevant information.
Provide a Blue Print for Bank to manage change beyond March 1998
Provide further issues to consider to help align business needs with
desired behaviour
Provide a Blue Print for Bank to manage change beyond March 1998
Provide further issues to consider to help align business needs with
desired behaviour
Structured approach to managing change
Benefit of E&Y experience across similar IT enabled change projects
Assistance with the identification of HR issues using Consultant’s
Organisational Alignment methodology
Structured approach to managing change
Benefit of E&Y experience across similar IT enabled change projects
Assistance with the identification of HR issues using Consultant’s
Organisational Alignment methodology
WhatWhatWhatWhat
HowHowHowHow
BenefitBenefitBenefitBenefit
Looking into the future
STAFFING &
DEPLOYMENT
ALIGNED
CULTURE
ORGANISATIONAL
STRUCTURE
COMMUNICATION
EDUCATION &
DEVELOPMENT
LEADERSHIP
EFFECTIVENESS
MEASUREMENT &
REWARD
Looking into the future
The value of Organisational Alignment
 Drives organisational behaviour needed for process,
technology and culture changes
 Creates the environment where desired behaviours
are communicated, modelled, measured and
rewarded
 Reinforces and sustains desired behaviours over
time through alignment of human and organisational
systems
Looking into the future
Organisational
Performance
Levers
Organisational
Performance
Levers
Communication
Education & Development
Leadership Effectiveness
Organisational Structure
Measurement & Reward
Staffing and Deployment
Communication
Education & Development
Leadership Effectiveness
Organisational Structure
Measurement & Reward
Staffing and Deployment
Current State
Behaviour
Current State
Behaviour
Future State
Behaviour
Future State
Behaviour
Act without consideration
of other units and their
purpose
Withhold information from
others
Elevate issues / problems
upwards for resolution
Discount all ideas “not
invented here”
Focus on own needs rather
than those of the
organisation
Act without consideration
of other units and their
purpose
Withhold information from
others
Elevate issues / problems
upwards for resolution
Discount all ideas “not
invented here”
Focus on own needs rather
than those of the
organisation
Work with other units to
address problems and
opportunities
Share information with
others
Take initiative to solve
problems
Search out and welcome
new ideas
Focus on the needs of the
company, the customers and
other employees
Work with other units to
address problems and
opportunities
Share information with
others
Take initiative to solve
problems
Search out and welcome
new ideas
Focus on the needs of the
company, the customers and
other employees

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Wk 7b organizational change

  • 1. What is Organisation Change Management? • Change Readiness Acceleration • Change Leadership Development • Performance Lever Gap Analysis • Stakeholder Involvement Strategies • Culture and Values Alignment • Transition Planning and Management • Team Development • Organisational Learning • Clear and Compelling Business Case for the Change • Engaged, Skilled Change Leaders and Sponsors • Accelerated Change Readiness • Flexible and Adaptive Workforce • Leverage Learning Capability FocusFocus OutcomeOutcome A structured approach that helps manage the people components duringA structured approach that helps manage the people components during a business transformation initiative to realise the desired outcomesa business transformation initiative to realise the desired outcomes A structured approach that helps manage the people components duringA structured approach that helps manage the people components during a business transformation initiative to realise the desired outcomesa business transformation initiative to realise the desired outcomes
  • 2. Why the need for Change Management? SOLUTION IDENTIFICATION WRONG RIGHT SOLUTION IMPLEMENTATION EFFECTIVEINEFFECTIVE I III IV II 70% of occurrences 10% of occurrences 10% of occurrences 10% of occurrences The value of MIS Upgrade Project is realised only through successful implementation CellCell Impact on Desired Business Objectives Impact on Desired Business Objectives II FailureFailure IIII FailureFailure IIIIII FailureFailure IVIV SuccessSuccess
  • 3. Why efforts fail PERCEPTION TECHNOLOGY INFRASTRUCTURE MANAGEMENT OF CHANGE
  • 5. Commitment versus Compliance  Commitment building costs are significantly less than the cost of: managing post-implementation resistance compromised implementation efforts project failure Pay now... or pay later?
  • 6. Commitment versus Compliance  Commitment is a powerful phenomenon in transition management  Commitment generates productive behaviour without the need for monitoring  Compliance may result in similar behaviour, but rarely generates initiative. Compliance strategies rely on external enforcement
  • 7. Detailed Workplan Proposed Approach to Organisational Change Management Phase 1
  • 8. Change Readiness Assessment WhatWhatWhatWhat HowHowHowHow BenefitBenefitBenefitBenefit Value ofValue of ApproachApproach Value ofValue of ApproachApproach Identifies key factors which may help or hinder the change process and is used to determine BIMB’s readiness to change. Action plans can then be developed to leverage strengths and minimise potential risks. Identifies key factors which may help or hinder the change process and is used to determine BIMB’s readiness to change. Action plans can then be developed to leverage strengths and minimise potential risks. A series of one day workshops delivered to a select number of staff representing identified stakeholder groups. Surveys and other tools will be used to identify potential risks to MIS implementation. A series of one day workshops delivered to a select number of staff representing identified stakeholder groups. Surveys and other tools will be used to identify potential risks to MIS implementation. Action plans to address implementation issues Greater ownership and awareness of MIS Upgrade Project Action plans to address implementation issues Greater ownership and awareness of MIS Upgrade Project Structured approach to identify potential implementation risks Consistent application of E&Y world-wide OCM tools Objective methods to determine potential implementation risks Involvement of stakeholder groups throughout Bank Comparison of perceived risks across management levels and locations Comparison of perceived risks over time Structured approach to identify potential implementation risks Consistent application of E&Y world-wide OCM tools Objective methods to determine potential implementation risks Involvement of stakeholder groups throughout Bank Comparison of perceived risks across management levels and locations Comparison of perceived risks over time
  • 9. Change Readiness Assessment PowerfulPowerful BusinessBusiness CaseCase VisionVision ClarityClarity ChangeChange Leadership &Leadership & AccountabilityAccountability ChangeChange SpecificSpecific CommunicationCommunication IntegratedIntegrated PlanningPlanning & Teams& Teams IncreasedIncreased ChangeChange CapabilityCapability AlignedAligned PerformancePerformance & Culture& Culture StakeholderStakeholder CommitmentCommitment Implementation Factors for Success...
  • 10. Communications Strategy and Plan Value ofValue of ApproachApproach Value ofValue of ApproachApproach Determines the strategies, goals, themes, messages and vehicles used to communicate with key stakeholders (internal and external) throughout the duration of the MIS Upgrade Project. Determines the strategies, goals, themes, messages and vehicles used to communicate with key stakeholders (internal and external) throughout the duration of the MIS Upgrade Project. Working directly with Project Teams and Task Force staff, drawing on the results of the Change Readiness Assessment and using Consultant’s methods to identify most appropriate communications methods. Working directly with Project Teams and Task Force staff, drawing on the results of the Change Readiness Assessment and using Consultant’s methods to identify most appropriate communications methods. Accelerates contact, awareness, understanding and acceptance of the intended changes Reduces stakeholder resistance resulting in positive action (thinking and behaviour) Greater ownership and awareness of MIS Upgrade Project Accelerates contact, awareness, understanding and acceptance of the intended changes Reduces stakeholder resistance resulting in positive action (thinking and behaviour) Greater ownership and awareness of MIS Upgrade Project Structured approach to develop communication plans Consistent application of Consultant’s world-wide OCM tools Greater re-use of data collected during Change Readiness Assessment Structured approach to develop communication plans Consistent application of Consultant’s world-wide OCM tools Greater re-use of data collected during Change Readiness Assessment WhatWhatWhatWhat HowHowHowHow BenefitBenefitBenefitBenefit
  • 11. Communications Building Commitment Through Communications is a process... Time Preparation Phase Acceptance Phase Communication Phase Grudging Compliance Formal Compliance Genuine Compliance Installation InstallationInstallation Commitment/ Compliance Threshold Disposition Threshold Adoption Institutionalization Internalization Understand the Change Positive Perception Understand the Change Awareness Awareness Awareness I Contact Noncommitment Noncommitment Noncommitment OC160
  • 12. Change Facilitator Network Value ofValue of ApproachApproach Value ofValue of ApproachApproach Establishing an internal network of change champions to build awareness and understanding of change management principles. Establishing an internal network of change champions to build awareness and understanding of change management principles. Network is established initially by involving client staff in a one day workshop to explore business change principles and concepts within the context of the MIS Upgrade Project. Network is established initially by involving client staff in a one day workshop to explore business change principles and concepts within the context of the MIS Upgrade Project. Establishing a change infrastructure of staff who will promote the Bank MIS Upgrade Project Generating greater communication across the branch network Involvement of those most affected by the changes Greater understanding of change and their important role in the process Establishing a change infrastructure of staff who will promote the Bank MIS Upgrade Project Generating greater communication across the branch network Involvement of those most affected by the changes Greater understanding of change and their important role in the process Structured approach to managing change Opportunities for testing management potential Build on Change Readiness Assessment results Develop a link to customer facing staff in the branches Opportunities for breaking down barriers between branches Structured approach to managing change Opportunities for testing management potential Build on Change Readiness Assessment results Develop a link to customer facing staff in the branches Opportunities for breaking down barriers between branches WhatWhatWhatWhat HowHowHowHow BenefitBenefitBenefitBenefit
  • 13. Change Facilitator - Tips  Involve those most impacted by the changes  Develop objective method for selecting candidates  Select staff of equivalent seniority  Select staff who are: well regarded by their peers credible reliable eager to learn and be involved “opinion leaders”  Do not select staff: who are perceived to be management mouthpieces
  • 14. Transition Management Plan Value ofValue of ApproachApproach Value ofValue of ApproachApproach Incorporates data gathered during the Change Readiness Assessment, Change Facilitator workshops and communication planning stages to produce a comprehensive roadmap addressing the human aspects of change for the duration of the project. It will also provide other people related issues which are beyond the scope of Phase 1. Incorporates data gathered during the Change Readiness Assessment, Change Facilitator workshops and communication planning stages to produce a comprehensive roadmap addressing the human aspects of change for the duration of the project. It will also provide other people related issues which are beyond the scope of Phase 1. Working with project managers and the Task Force to thread together all relevant information. Working with project managers and the Task Force to thread together all relevant information. Provide a Blue Print for Bank to manage change beyond March 1998 Provide further issues to consider to help align business needs with desired behaviour Provide a Blue Print for Bank to manage change beyond March 1998 Provide further issues to consider to help align business needs with desired behaviour Structured approach to managing change Benefit of E&Y experience across similar IT enabled change projects Assistance with the identification of HR issues using Consultant’s Organisational Alignment methodology Structured approach to managing change Benefit of E&Y experience across similar IT enabled change projects Assistance with the identification of HR issues using Consultant’s Organisational Alignment methodology WhatWhatWhatWhat HowHowHowHow BenefitBenefitBenefitBenefit
  • 15. Looking into the future STAFFING & DEPLOYMENT ALIGNED CULTURE ORGANISATIONAL STRUCTURE COMMUNICATION EDUCATION & DEVELOPMENT LEADERSHIP EFFECTIVENESS MEASUREMENT & REWARD
  • 16. Looking into the future The value of Organisational Alignment  Drives organisational behaviour needed for process, technology and culture changes  Creates the environment where desired behaviours are communicated, modelled, measured and rewarded  Reinforces and sustains desired behaviours over time through alignment of human and organisational systems
  • 17. Looking into the future Organisational Performance Levers Organisational Performance Levers Communication Education & Development Leadership Effectiveness Organisational Structure Measurement & Reward Staffing and Deployment Communication Education & Development Leadership Effectiveness Organisational Structure Measurement & Reward Staffing and Deployment Current State Behaviour Current State Behaviour Future State Behaviour Future State Behaviour Act without consideration of other units and their purpose Withhold information from others Elevate issues / problems upwards for resolution Discount all ideas “not invented here” Focus on own needs rather than those of the organisation Act without consideration of other units and their purpose Withhold information from others Elevate issues / problems upwards for resolution Discount all ideas “not invented here” Focus on own needs rather than those of the organisation Work with other units to address problems and opportunities Share information with others Take initiative to solve problems Search out and welcome new ideas Focus on the needs of the company, the customers and other employees Work with other units to address problems and opportunities Share information with others Take initiative to solve problems Search out and welcome new ideas Focus on the needs of the company, the customers and other employees

Editor's Notes

  1. By focusing on the activities on the left, we can ensure that Bank will achieve the outcomes listed on the right We will NOT perform all of these activate on this engagement The scope of the OCM engagement includes: Change Readiness Assessment and Acceleration Stakeholder Involvement Strategies Transition Planning and Management Facilitate Organisation Learning through Change Facilitator Network (Provide 30 second description of each ‘focus’ dot point)
  2. Typically, organisations are good at ‘solution identification’, but do not pay enough attention to ‘solution implementation’. The distinction between these to key areas of consulting can be viewed as the difference between content (solution identification) & process (solution implementation). Poor assimilation to change and future shock is often linked to the fact that organisations typically put a lot of effort into the ‘identification’ of solutions & are less concerned with the ‘implementation’ of the solution.
  3. IT projects generally are task focussed. Many people hold the perception that an IT project is simply the installation of a new box with some cabling. The most immediate hurdle poses the most challenging task. Change management is usually seen as an add on rather than an integral part of the process of managing the transition. Refer to next slide: In reality though, managing the people aspect of change is the most time consuming and resource intensive during implementation of the system.
  4. Unlike establishing a technology infrastructure or installing new software, change management is not a once-off activity. For example, don’t expect to communicate once and think everyone understood the message. By involving people early and repeatedly, Bank Islam will help negate resistance by: fostering a sense of ownership and teamwork convey a sense of understanding for the reasons for the project, how the bank will look like in the future and how the changes will affect them Constant communication - people will not think the project is being done by stealth. Gives people opportunities to prepare and adjust their expectations. All people working as part of the Bank MIS Upgrade project are involved in change management. Members of the Task Force and OCM team have a greater responsibility by putting measures in place to actively support the transition to the new systems and processes.
  5. Commitment or compliance - start now and manage the process or pay later and risk the project’s success.
  6. RBS example - Dr Hamzah