An overview of the current best-thinking on change management, circa 2002. Very little is different in 2015, largely because people and their motivations have not changed.

1. Corp
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Project
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Change Leadership Opportunities for
Project VULCAN

2. Corp
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Project
LogoContents
• Challenges for VULCAN
• Steps for effecting change
• Expectations management
• Methods for dealing with resistance
• Factors influencing change strategies

3. Corp
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Project
LogoPEM Replacement Faces Challenges
Because of the goals and the scope of the VULCAN project, there are
many challenges that must be overcome:
– Integrating 40+ local fiefdoms (the plants)
– Developing strong executive leadership
– Interfacing with multiple other areas (other projects, other departments)
– Developing a desire for change in an organization that may have little additional
enthusiasm for change
The key to any successful technology implementation rests with how the
organization is managed, not with the technology. The top reasons for
failure cited by a study of technology projects:
1. Need for managing change is not recognized (Change Management)
2. Top management's short term view and quick fix mentality (Project Planning)
3. Rigid hierarchical structures in the organization (Change Management)
4. Line managers in the organization unreceptive to innovation (Change Management)
5. Failure to anticipate and plan for the organizational resistance to change (Change
Management)
Source: Grover, Jeong, Kettinger& Wang. The Implementation of Business Process Reengineering.
Journal of Management Information Systems, 1995.

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Project
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Planning for andPlanning for andPlanning for andPlanning for and
Creating ShortCreating ShortCreating ShortCreating Short----TermTermTermTerm
WinsWinsWinsWins
• Identify opportunities to
demonstrate positive
results early
• Develop project plans
that incorporate
successes in every phase
• Celebrate successes to
sustain enthusiasm and to
expand the effort
Creating a VisionCreating a VisionCreating a VisionCreating a Vision
• A vision must be
created to link the present
to the future
• The vision must guide &
motivate people’s actions
• The vision must be
desirable and achievable
• Develop strategies on
how to realize the vision
Communicating theCommunicating theCommunicating theCommunicating the
VisionVisionVisionVision
• Communicate the
purpose & goals of the
effort to everyone
constantly
• Maintain the sense of
urgency & need for action
• Ensure that the effort
does not get lost in the
corporate “noise”
Sustaining the EffortSustaining the EffortSustaining the EffortSustaining the Effort
• Include project activities
in personnel evaluations &
development plans
• Manage staffing to
prevent burn-out
• Reinvigorate the project
with new people, new
themes & new goals
Institutionalizing NewInstitutionalizing NewInstitutionalizing NewInstitutionalizing New
ApproachesApproachesApproachesApproaches
• Make “the new way” the
only way
• Transition the deadline
mentality to a sustaining
mentality
• Inculcate a culture of &
processes for continuous
improvement & change
Empowering Others toEmpowering Others toEmpowering Others toEmpowering Others to
ActActActAct
• Eliminate organizational
obstacles to change
• Extend the change
mandate to others
• Evangelize the change
effort within the
organization
Establishing a SenseEstablishing a SenseEstablishing a SenseEstablishing a Sense
of Urgencyof Urgencyof Urgencyof Urgency
• Change efforts require
the efforts of many
motivated people
• Without a deadline,
“analysis paralysis” can
stymie change efforts
• 50% of change efforts
fail due to a lack of
urgency
Forming a PowerfulForming a PowerfulForming a PowerfulForming a Powerful
Guiding CoalitionGuiding CoalitionGuiding CoalitionGuiding Coalition
• Change leaders must
have the “weight” to move
the organization
• Coalition membership
should grow with the
scope and success of the
project
Effecting Change is a Holistic Process
Source: John Kotter, Leading Change, HBR 1995

5. Corp
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LogoExpectations Lead Results
Expectations
Actual Results
Expectations
Gap
Time
Failed
Expectations
OrganizationalImpact
• Success and failure are based upon
people’s expectations and perceptions
– not on the actual results
• Initially, people’s expectations for the
results of a change effort are
dramatically higher than the actual
results that are delivered.
• Tremendous effort must be made to
bring expectations in line with actual
results – without destroying the project’s
momentum
• If results trail expectations too long,
then the organization’s drive for change
will diminish and ultimately disappear

6. Corp
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LogoChange Resistance Takes Many Forms
• Parochial self-interest
• Misunderstanding & lack of trust
• Different assessments
• Low tolerance for change
Source: Kotter & Schelsinger, Choosing Strategies for Change, HBR 1979

7. Corp
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Project
LogoMethods for Dealing with Resistance
• Education & CommunicationEducation & CommunicationEducation & CommunicationEducation & Communication – the various constituencies within the organization should be
educated about the goals, benefits and challenges faced by the change effort. On-going effort must
be made to ensure that the project stays fresh in people’s minds
• Participation & InvolvementParticipation & InvolvementParticipation & InvolvementParticipation & Involvement – Key people should be given roles in the change effort to ensure
their on-going support and commitment to the project – even if only in a token or “advisory” role.
• Facilitation & SupportFacilitation & SupportFacilitation & SupportFacilitation & Support – Where people are being displaced or fiefdoms are being dismantled,
explicit facilitation might be used to act as a forum for those most negatively impacted by the project.
Adjustment support (re-training, outplacement, etc.) might also be required both as an aide for those
impacted and as a statement about the organization’s commitment to both its people and to the
change effort.
• Negotiation & AgreementNegotiation & AgreementNegotiation & AgreementNegotiation & Agreement – If one or more powerful constituencies exist that can actively resist
the project, then an explicit negotiation might be required to identify areas of concern and strategies
for dealing with those concerns in order to move the project forward.
• Manipulation & CoManipulation & CoManipulation & CoManipulation & Co----optationoptationoptationoptation – While manipulation or “hijacking” someone else’s work may be an
expedient method of implementing change, it can lead to serious negative consequences in the
long-term.
• Explicit & Implicit CoercionExplicit & Implicit CoercionExplicit & Implicit CoercionExplicit & Implicit Coercion – In some cases, an explicit or implicit use of organizational power
may be appropriate to coerce compliance with the efforts of the change project. However, if
improperly or excessively used, such tactics can have the most negative long-term consequences.
Source: Kotter & Schelsinger, Choosing Strategies for Change, HBR 1979

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LogoEffort Varies Inversely with Speed
Speed &
Forcefulness
Effort &
Effectiveness
Lower
Higher
Education & Communication
Participation & Involvement
Facilitation & Support
Negotiation & Agreement
Manipulation & Co-optation
Explicit & Implicit Coercion
Higher
Lower
When explicit change management strategies are required, a choice must be made as to how
to deal with each situation. While more forceful strategies are faster, the less forceful strategies
tend to have the most long-lasting positive effects.

9. Corp
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Project
LogoFactors Influencing Implementation Speed
Key situational variables:
• The amount and type of resistance that is anticipated
• The relative positions of the change initiators versus the change resistors within
the organization
• The locus of relevant data for designing the change and of needed energy for
implementing it
SlowerSlowerSlowerSlower
Project is not clearly planned
in the beginning
Lots of involvement of others
Attempt to minimize
organizational resistance
FasterFasterFasterFaster
Clearly planned with a
compelling vision
Little involvement of others
Attempt to overcome any
resistance
Source: Kotter & Schelsinger, Choosing Strategies for Change, HBR 1979