2. 2
Importance of Change Management
People-related aspects
Transformation cycle and
supporting processes
The ADKAR model
Content
Adaptated from Prof. Ehap Sabri’s Global Logistics and Transportation course material
3. The need for change management
3
70%
30%
Transformation initiatives
Failure Success
Source: McKinsey Quarterly Transformation Executive Survey, 2008
People-related aspects poorly
addressed or neglected
Inadequate communication
Lack of stakeholder
comprehension
6. The classic adoption curve
6
Everett Rogers – Diffusion of Innovations, 1962
Change ambassadors Resistance group
7. Transformation Cycle
7
Lean & Agile Value Chain Management (LAVCM)
Alignment with
Corporate Goals
Developing Vision,
Objectives, Strategies
Process Analysis
& Benchmarking
Selecting
Software Provider
(if needed)
Calculating
Return On
Investment
Developing
Program and
Project Plans
Project
Implementation
Updating
Performance
Management System
Plan
Implement
Sustain
Ehap Sabri, Ph.D., CFPIM; Salim Shaikh, CPIM, CSCP
Developing a Winning
Transformation Team
Organizational Alignment
and Cultural Support
Education, Communication
Management & Sponsorship
Effective Performance
Management System
Supporting Processes
8. 8
The ADKAR model
Achievements
A Awareness Recognize need for change
D Desire Willingness to support and participate
K Knowledge How to change
A Ability To implement required skills and behavior
R Reinforcement Full implementation of change
Phases / Milestones
Source: Jeffrey Hiatt. “ADKAR: A Model for Change in business, Government and Community” Prosci Research, 2006
9. ADKAR & transformation cycle phases
9
Organizational
A Awareness
D Desire
K Knowledge
A Ability
R Reinforcement Sustain
Plan
Implement
Individual
Source: Jeffrey Hiatt. “ADKAR: A Model for Change in business, Government and Community” Prosci Research, 2006
10. ADKAR & change mngmt supporting processes
10
Source: Jeffrey Hiatt. “ADKAR: A Model for Change in business, Government and Community” Prosci Research, 2006
Developing a Winning
Transformation Team
Organizational Alignment and
Cultural Support
Education, Communication
Management & Sponsorship
Effective Performance
Management System
A D K A R
11. 11
Change management is critical
Recognize and address people-
related aspects
Transformation cycle:
Plan – Implement – Sustain
The ADKAR model x transformation
cycle and supporting processes
Summary
Research has shown that 70% of all transformation initiatives fail because the people-related aspects are poorly addressed or altogether neglected
Inadequate communications and a lack of stakeholder comprehension often lead to increased risk, poor performance, and increased time to transition, resulting in wasted time and dollars
The Kubler-Ross model describes typical responses to grief which have been applied to understanding change on an individual level and in the workplace.
Transformation Execution Phases
During phase 1, it’s important to fight fear and denial with information. An informed stakeholder has a greater sense of control. A greater sense of control leads to less resistance to the change.
Before things get better, they get worse, in terms of productivity and job satisfaction. The downturn in productivity will continue until workers master the new learning curve. During phase 2, management must reward early adopters
Breakthrough is only achieved after the workers have obtained significant levels of confidence, security, and new skills.
Kurt Lewin wrote that "An issue is held in balance by the interaction of two opposing sets of forces - those seeking to promote change (driving forces) and those attempting to maintain the status quo (restraining forces)".
There will always be driving forces that make change attractive to people, and restraining forces that work to keep things as they are.
Successful change is achieved by either strengthening the driving forces or weakening the restraining forces.
Not everybody accept changes at the same pace. Most of people will “wait and see” or be skeptical about the benefits of changing.
A good practice in managing resistance is to identify its root-causes, and to engage first the “innovators” and “early adopters”, that can act as ambassadors of change.
An effective transformation program starts with a good planning, followed by a careful implementation, and is sustained overtime through reinforcement from a well designed Performance Management System. Even before the planning phase starts, a deep comprehension of the corporate’s situation and business direction is absolutely necessary.
Understanding the corporate goals fully is the first step in any transformation program. This step is crucial to secure the buy-in from upper management, who typically ask for an explanation of how the change helps in implementing the organization’s strategic plan and achieving corporate goals, before committing organizational resources (time, energy, and money) to the transformation program.
A clear vision (elevator speech) of the program is the second step for a successful transformation. A few examples of elevator speeches or vision for a transformation program for the demand fulfillment process include: 1) Becoming the industry leader in providing reliable and quick delivery to customers, or 2) Gaining competitive advantage and market share by promising what we can deliver and delivering on every promise.
In the 3rd step, the transformation team should identify and analyze core business processes. The team, for example, might suggest outsourcing noncore processes to improve efficiency and focus on the value-added processes. During process analysis, we take a hard look at the firm’s value chains in order to identify processes that would need an improvement
Selecting a software provider for technology capabilities is required only if the functional requirements that were determined in the previous step are not supported by the existing systems.
Calculating ROI is the process that compares the potential benefits to the costs associated with implementing a transformation process. crucial for securing the buy-in from upper management
Adopting an incremental value-driven approach to conduct LAVC transformation programs is very crucial. An effective transformation program typically takes 2-5 years, with several intermediate projects (Go-Lives) that can pay for the rest of the program
Implementing one project as part of the overall transformation program should go through four phases: (1) describing where we are (“as is”), (2) deciding where we want to go (“to be”) and planning on how we are going to get to where we want to be, (3) taking the “journey” of change (deploying the new process or solution), and finally (4) anchor the change in the culture of the organization (stabilizing the new process).
This step is responsible for updating Performance Management System to reflect the new performance baselines, and anchor the new culture. Measuring the benefits and ROI should begin during and after the implementation of the transformation program. For example, improving forecast accuracy that is mainly entered by the salespeople in a certain organization can be achieved by adding this performance measure (forecast accuracy) as one of the parameters in a sales bonus. This would align sales goals with program targets because sales will be motivated to provide an accurate forecast to meet their bonus target, which means the old behavior of overestimating to make sure enough inventory exists when sales happen or underestimating to lower the bar of their quota will disappear.
By the end of the day, change happens one person at a time. Even large, complex organizational changes are only successful if the impacted individual changes how they do their day-to-day work. Organizational change is the culmination of many individuals moving from their own current state to their own future state.
ADKAR is a goal-oriented change management model. It is based, fundamentally, on how we as human beings experience change.
It makes sense then that this model, developed by Jeff Hiatt, CEO of Prosci® Change Management (www.prosci.com), and first published in 2003, focuses on 5 actions and outcomes necessary for successful individual change, and therefore successful organizational change.
ADKAR represent the five milestones (phases) of change that must be achieved by individuals to be a success:
Awareness:
Understanding why the change is being made and the risk of not changing
Information on the internal and external drivers
Desire:
I understand the need and willing to change
Addressing “What is in it for me”
Knowledge:
A person has the knowledge and access to the information on how to change
Knowledge of processes, tools, skills, roles, and techniques that are needed in the new process
Ability:
A person can implement the change and achieve the desired performance
Addressing psychological blocks, physical abilities, intellectual capabilities, time & resources
Reinforcement:
Sustaining the change and preventing individuals from slipping back to old ways of conducting work
Building momentum during transition
Effective organizational change, of any kind, requires mastering three phases: “Plan”, “Implement”, and “Sustain”
While many change management projects focus on the steps necessary for organizational change, ADKAR® emphasizes that successful organizational change occurs only when each person is able to transition successfully.
This table correlates the phases of organizational changes with the individual change milestones.
This table correlates ADKAR milestones with the change management supporting processes
