This document discusses business change management and how to successfully manage change. It defines business change management as focusing on the people side of change, including the activities and people involved. It notes that managing change becomes more important as more change occurs. It introduces models for assessing the impact of change, including the McKinsey 7S model. It also discusses measuring change readiness using the change equation and provides examples for a company implementing a new finance system. Finally, it emphasizes that focusing on people can help reduce typical high failure rates for organizational change initiatives.

1. Nicola Busby Associates
Focusing on people for successful change
Understanding the Impact of Change
Inspiring Positive Change in Complex and Uncertain Times
22 March 2018

2. Nicola Busby Associates Focusing on people for successful change
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The best innovations need acceptance to be
successful
Would you……
• Send your children to school in a driverless car?
• Move your family into the top floor of a 3D
printed high rise?
• Allow a bot to reply to your stakeholders’ email
queries?
Nicola Busby Associates Focusing on people for successful change
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3. Nicola Busby Associates Focusing on people for successful change
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What is Business Change Management?
Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Business change
management
focuses on the
people-side of
change
The associated
activities
The object of
the change
People involved in
and affected by
the change

4. Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
The object of
the change
The object of
the change
The object of
the change
The associated
activities
The associated
activities
The associated
activities
The associated
activities
The associated
activities
The associated
activities
The associated
activities
The associated
activities
The associated
activities
The associated
activities
Business Change Management in a VUCA world
Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
The people-side
of change
becomes more
important as
more change
occursThe object of
the change
The object of
the change
The object of
the change
The object of
the change
The object of
the change
The object of
the change
The object of
the change
The associated
activities
The object of
the change
People involved in
and affected by
the change

5. Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Impact Assessment: McKinsey 7s Model
Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Shared
Values
Strategy
Structure
Style
Staff
Skills
Systems
Peters and Waterman, 1982
• Analyse what happens now for each of
the elements
• Describe what is going to happen in
the future
• Compare the difference – the gap
• Decide whether the gap is high,
medium or low for each element

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Impact Assessment: Finance System Change
Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Organisation: Fortisdown Energy,
an Alternative Energy company
Project: replacing many disparate
finance systems with one corporate
system
Shared
Values
Strategy
Structure
Style
Staff
Skills
Systems

7. Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Background and drivers for change
• Fortisdown produces world-class, cutting-edge R&D in alternative
energy
• Traditionally well funded, emphasis on quality of research and
innovation rather than economic considerations
• Funding significantly reducing and competition increasing
• CEO wants Fortisdown to be more efficient, bringing transparency
and control to finances
• Fortisdown will need to become more commercial and competitive in
the future

8. Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Impact Assessment: second attempt
Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
The analysis shows that
the project is a high
impact cultural and
behavioural change, not
just an IT implementation!Shared
Values
Strategy
Structure
Style
Staff
Skills
Systems

9. Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Change Readiness: the change equation
C = [ABD] > x
C = change
A = level of dissatisfaction with the status quo
B = desirability of future state
D = practical steps needed to change
x = perceived cost of change
If A, B or D are zero, change will not happen!
Beckhard and Harris, 1987

10. Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Change Readiness: ideas for Fortisdown
Ideas for increasing A
• Show scientists financial evidence that income is decreasing and competition increasing
• Illustrate areas of inefficiency which affect current R&D projects
Ideas for increasing B
• Set up quality circles to create ideas for future income generation
• Give scientists budgets to manage themselves to increase ownership
• Arrange visits to other R&D organisations who have good financial management
Ideas for increasing D
• Create quick and clear training notes and e-learning for new financial system
• Coach managers in performance management and difficult conversations
• Create change agent network to support colleagues through the change

11. Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Nicola Busby Associates Focusing on people for successful change
© 2018 Informaticians Ltd All Rights Reserved
Final thoughts
• 70-80% failure rates are not necessary
• There is increasing knowledge on how to change successfully
• Make it your responsibility to manage change well
Not only will you realise your benefits,
your organisation will be a happier place

12. Nicola Busby Associates
Focusing on people for successful change
Email: enquiry@nicolabusbyassociates.co.uk
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Book: The Shape of Change