Hfma 8 essential steps to manage succesful change

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Presentation delivered to HFMA Healthcare Financial Management Association Conference 24th January 2013

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Hfma 8 essential steps to manage succesful change

  1. 1. Yorkshire & Humber Branch Annual Conference “The New Improved NHS ”8 Essential Steps to Managing Successful Change 24th January 2012
  2. 2. What is change management?Change management is a structured approach to transitioning individuals, teams andorganisations from a current state to a desired future state
  3. 3. Change quotes…
  4. 4. Why change? No change is without a purposeEnvironment- internal or external factors• Systems • Competition• Processes • Innovation• Culture • Upgrades• Things could be better • New Strategy• Mergers • Outsourcing• Acquisitions • Economy• Continuous Improvement • New Technology• Take Over • Restructuring
  5. 5. "If you are doing business today the same wayas you did business yesterday, the chances are that you won’t be doing business tomorrow" Peter F Drucker
  6. 6. Changes over the yearsNobody can go back and start a new beginning but anyone can start today and make a new ending
  7. 7. A changing perspective
  8. 8. A changing perspective
  9. 9. Change process Based on Kurt Lewin’s modelUndesired Chaos Desiredsituation Unpredictability situation No control Confusion Loss-Attachment Fear Shock Anger
  10. 10. People’s reaction to change - 8 step process.Information/Communication Guidance/DirectionStability Emotional Support Understanding Shock Ok This is where I’m at and what Don’t see the reasons why I’m doing now Can’t be happening, no need, it’ll run Denial out of steam, it’ll go away Start outing emotions, frustrated, Anger hurt, blame. Testing/Acceptance/ Bargaining letting go Test our understanding Try to defer it, attempt to of how it relates to us, moderate the change put out feelers, maybe I can cope! Depression They don’t care, why should I? Present Withdrawn from job, lack of Preferred engagement, quiet, introverted, Reality full scale of change has sunk in Future Transition Phase
  11. 11. People’s reaction to change - 8 step process. If led positively you can build Let them express their feelings, listen, be on this and lead them into the empathetic, explain, communicate, future.Stability communicate, communicate! Understanding Shock Don’t see the reasons why Expect the shock! Ok This is where I’m at an what Explain and sell Can’t be happening, No need, it’ll run I’m doing now the benefits. Denial out of steam, it’ll go away •Communicate! •Communicate! Start outing •Communicate! Anger emotions, frustrated, hurt, blame.Don’t compromise, stand Testing/Acceptance/firm! Bargaining letting go Try to defer it, attempt to Accept people will moderate the change Test our understanding be withdrawn and of how it relates to us, Give them time and let put out feelers, maybe I not contribute very them know what they much. Give them Depression mean to you, reinforce can cope! space to go through Withdrawn from job, lack of their value, train, coach, this period. engagement, quiet, be there for them. Preferred Present introverted, full scale of change has sunk in Future Reality Transition Phase
  12. 12. 5 Phases of change
  13. 13. 5 Phases of change
  14. 14. Universal facts about changeWho do you know that really looks forward to change?
  15. 15. Universal facts about change The chains of habit are too weak to be felt until they are too strong to be broken’. Samuel Johnson
  16. 16. Universal facts about change• Different people react differently to change• Change often involves a loss and people go through a loss curve• Success or failure of change depends on co- operation of people implementing the change
  17. 17. Universal facts about change• They key question everyone has on their mind about change is….?• A small number of people and groups are almost always pivotal to a smooth and effective change process• Your leadership is the absolute key to its success or not• Effective communication and support are vital
  18. 18. Questions we must ask before change• What do we need to achieve?• Why? How? When?• Who will be affected?• How will they react?• How do we support them?• Have we the resources to manage the change?
  19. 19. Questions we must ask before change• How do we communicate the change and get buy in?• How do we deal with resistance?• What part of the change do we need help with?• How do we know what success is and how will we measure it?• After the change, what next?
  20. 20. How do we introduce change? • Build trust- be open and honest1 • Build a compelling, logical case for organisational change2 • Match actions and words3 • Involve the people affected4 • Communicate a sense of confidence5 • Repeat you main messages6
  21. 21. 8 steps to effective change
  22. 22. 8 steps to effective change
  23. 23. Pre-requisites for change
  24. 24. Communicate for change!• Communicate only what you know to be true (don’t speculate)• Be sure senior management approves what you are communicating• Communicate what you know as soon as you know.• Communicate from their perspective- put yourself in their shoes
  25. 25. Communicate for change!• Communicate using multiple mediums ( 1-1, small groups, large groups, written, focus groups, discussions etc.)• Be prepared to answer questions.• Really listen• The more resistance, the more you need to communicate.
  26. 26. Barriers and resistance to changeThe normal reaction to change is resistance Fear Anger 1. Parochial self interest Habits 2. Misunderstanding Negative thinking 3. Low tolerance to change Attitude 4. Genuine disagreement Culture Subjectivity People Emotions Poor planning
  27. 27. Factors for failure• Lack of pro-active leadership or strategy• Lack of consistent leadership• Poor communication• Intensive or brash approach• Lack of recognition and reward• Apathy
  28. 28. Factors for failure• Staff kept in the dark• Lack of time, capacity, budget• Short term approach- stressed out out staff• Lack of staff buy-in• Lack of initiative to do something different These factors then lead to the ‘tread- mill effect’, setting up a vicious circle
  29. 29. Absolute donts of change managementDon’t just think that Don’t start anychange will happen change automatically- it management needs work without a business case and a plan Don’t ignore communication and support. You need Do not do a Don’t try and do it on both for change tomanagement high up your own, you need stick. selling alone. You supporters! need to sell changeto all your staff and stakeholders Don’t ignore rationale concerns, address them and find solutions
  30. 30. Change management summary People will react Change is difficult differently butbecause of emotions typically follow the same pattern
  31. 31. Change management summary Good information Accept that fear , and communication denial, anger, is essential. Peopleresistance is normal are good at dealing with change if they know what is changing
  32. 32. Change management summaryFocus on removing Carefully look for the fear, most other opportunities, theybehaviours seem to will be there stem from this
  33. 33. Yorkshire & Humber Branch Annual Conference “The New Improved NHS ”8 Essential Steps to Managing Successful Change 24th January 2012

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