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Enabling Enterprise Change Management

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Download the PDF: https://www.demandmetric.com/content/enabling-enterprise-change-management

This report has been designed to provide practical advice for maximizing opportunity and reducing
risk for change initiatives.
Use this brief report to learn:
Read this report to understand why many change management efforts fail, and to learn best practices
for effective change.
HOW-TO GUIDE
Definition of Change Management
Four Key Types of Organizational Change
Requirements for Effecting Change
Gathering Buy-in from Key Stakeholders
Change Management Best Practices
Change Management Tools & Techniques

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Enabling Enterprise Change Management

  1. 1. ENABLING ENTERPRISE CHANGE MANAGEMENT HOW-TO GUIDE
  2. 2. 2 Enabling Enterprise Change Management How-to Guide This report has been designed to provide practical advice for maximizing opportunity and reducing risk for change initiatives. Use this brief report to learn: Read this report to understand why many change management efforts fail, and to learn best prac- tices for effective change. HOW-TO GUIDE Definition of Change Management Four Key Types of Organizational Change Requirements for Effecting Change Gathering Buy-in from Key Stakeholders Change Management Best Practices Change Management Tools & Techniques Enabling Enterprise Change Management Organizational change provides the opportunity for organizations to build more focused, disci- plined, and mature businesses. This opportunity comes with significant financial risk if changes are not planned and managed proactively. Change management is primarily concerned with how to understand, engage, respond, and communicate with PEOPLE. A solid vision, senior management sponsorship, and having the right people in the right roles, are the key success factors for implementing a successful change management campaign. Change Management Defined
  3. 3. 3 Enabling Enterprise Change Management How-to Guide There are four key types of organizational change: Use our Change Management Readiness Assessment to ensure you are prepared for change. Before embarking on a major change initiative, ensure your organization has considered these key requirements: Ensuring that your change effort is aligned with the overall business strategy, links directly to employee career objectives, and is managed by a senior sponsor, will provide a solid founda- tion for implementing successful programs. Use our Stakeholder Analysis Matrix to evaluate key stakeholders willingness to change. Four Key Types of Organizational Change Requirements for Effecting Change 1. Process Change - these focus on how workflows are managed with an effort to streamline business processes to increase efficiencies, reduce costs, and improve quality. For example, changing accounting systems and processes. 2. Structural Change - these focus on changing organizational structures such as reporting rela- tionships, mergers & acquisitions, and centralization initiatives. Normally, these changes are top-down and geared to improve the overall financial performance of a business. 3. Cost Containment - these changes are focused on eliminating any costs that are not essen- tial for operation. Typically, cost containment initiatives are the result of a tight economy for a particular industry or poor sales results. 4. Cultural Change - as organizations move from a product-centric business to a customer-cen- tric enterprise, changes to organizational norms and attitudes must be made. 1. Senior Management Sponsorship - it is essential that a senior leader who is capable of communicating the strategic vision for the change has accepted responsibility for the effort. This leader must have access to all critical stakeholders, and have solid project management skills. Use our Stakeholder Analysis Matrix to evaluate key stakeholders willingness to change. 2. Educated and Engaged Employees - employees must: understand why the change needs to occur; be involved in the planning & implementation of the change; be capable of participating in the change effort; and help others adapt. 3. Alignment of Business & Personal Objectives - it is critical that you positively reinforce the change by aligning business objectives with personal objectives for each employees, manager, and senior executive. For example, link performance reviews and bonus structures to metrics associated with the goals & objectives of the new programs.
  4. 4. 4 Enabling Enterprise Change Management How-to Guide It is safe to assume that the majority of your staff will NOT be evangelists of the proposed change. In most cases, senior management view change as an opportunity for the organization and for themselves. Conversely, change is often seen as disruptive, unnecessary, and frightening for employees. Research indicates that less than 20% of your employees will immediately recognize the need and value of the change, 50% will be sit on the fence, and around 30% will not initially be supportive of the change. Similar to government politics, your goal is to leverage the supportive 20% to influence the 50% majority, while minimizing the influence of the 30% who are likely to never agree with the change. Following are a few tips from Cynthia Scott and Dennis Jaffe who are regarded as experts in the change management field: Gathering Buy-in From Key Stakeholders 1. Have a Good Reason for the Change 2. Involve People in the Change 3. Put a Respected Person in Charge of the Process 4. Create Transition Management Teams 5. Provide Training in New Values & Behavior 6. Bring in Help from Outside if Necessary 7. Establish Symbols of Change 8. Acknowledge & Reward People Use our Change Management Planning Tool to assess your organizations readiness for imple- menting a major change initiative. This tool will ensure you have a sufficiently powerful sponsor, and the means to enable successful change programs. You should also use our Change Management Strategy Scorecard to document change objectives, initiatives, measures, and targets, for the next 12-18 months. A project portfolio can also be helpful in documenting roll out for change initiatives. Change Management Tools & Techniques
  5. 5. 5 Enabling Enterprise Change Management How-to Guide Action Plan STEP 1 - Establish Need 3 Vision & Strategy 1 Establish Need 7 Consolidate 8 Anchor Approaches 6 Short-Term Wins 4 Reinforce Change 2 Steering Committee 5 Empower Employees Build momentum and urgency for the change by examining market conditions and competitive forces. Identify risks, potential crises, and opportunities for adapting the organization to the situation. Use our Change Management Readiness Assessment to examine your organizations readiness for change. Establish the Need for Change Change Management Readiness Assessment V I E W R E S O U R C E
  6. 6. 6 Enabling Enterprise Change Management How-to Guide Action Plan STEP 2 - Steering Committee Create a cross-functional steering committee that has the power to invoke the changes that need to be made. This inter-departmental team must quickly gel and check their egos at the door. Work from a Steering Committee Steering Committee Charter 3 Vision & Strategy 1 Establish Need 7 8 6 4 2 Steering Committee 5 V I E W R E S O U R C E Reinforce Change Empower Employees Short-Term Wins Consolidate Anchor Approaches
  7. 7. 7 Enabling Enterprise Change Management How-to Guide Action Plan STEP 3 - Vision & Strategy Use a project plan to articu- late how the change will be managed. Communicate the vision of the goal-state, and devise strategies to accom- plish the desired outcomes and objectives. Develop a Vision & Strategy Change Management Plan 3 Vision & Strategy 1 7 8 6 4 2 Steering Committee 5 V I E W R E S O U R C E Establish Need Reinforce Change Empower Employees Short-Term Wins Consolidate Anchor Approaches
  8. 8. 8 Enabling Enterprise Change Management How-to Guide Action Plan STEP 4 - Reinforce Change Use all channels to communi- cate the vision. Create signs, slogans, and team charters. Communicate updates on your intranet, via email, and during staff meetings on a regular basis. Reinforce the Change Vision 1 7 8 6 4 Reinforce Change 2 5 Establish Need Steering Committee Vision & Strategy Empower Employees Short-Term Wins Consolidate Anchor Approaches
  9. 9. 9 Enabling Enterprise Change Management How-to Guide Action Plan STEP 5 - Empower Employees Clear any obstacles to achieving the vision; change structures or systems that obstruct the required change; encourage risk-taking and non-traditional ideas, activities, and actions. Empower your Employees1 7 8 6 4 2 5 Empower Employees Establish Need Steering Committee Vision & Strategy Reinforce Change Short-Term Wins Consolidate Anchor Approaches
  10. 10. 10 Enabling Enterprise Change Management How-to Guide Action Plan STEP 6 - Short-Term Wins Plan and monitor visible improvements in performance (wins). When small achieve- ments are made, recognize your employees in front of their colleagues and peers. Generate Short-Term Wins1 7 8 6 Short-Term Wins 4 2 5 Establish Need Steering Committee Vision & Strategy Reinforce Change Empower Employees Consolidate Anchor Approaches
  11. 11. 11 Enabling Enterprise Change Management How-to Guide Action Plan STEP 7 - Consolidate Use increased credibility from short-term wins to change all systems, policies, and struc- tures that don’t fit with the transformational vision. Hire, promote, and develop people who are agents of posi- tive change. Reinvigorate the change program with new projects, themes, and change agents. Consolidate Gains & Produce More Change 1 7 Consolidate 8 6 4 2 5 Establish Need Steering Committee Vision & Strategy Reinforce Change Empower Employees Short-Term Wins Anchor Approaches
  12. 12. 12 Enabling Enterprise Change Management How-to Guide Action Plan STEP 8 - Anchor Approaches Improve performance by adopting a more custom- er-centric, and productivity-ori- ented behavior. Articulate connections between new behaviors and organizational success. Develop effective leadership and succession processes. Anchor New Approaches in the Culture 1 7 8 Anchor Approaches 6 4 2 5 Establish Need Steering Committee Vision & Strategy Reinforce Change Empower Employees Short-Term Wins Consolidate
  13. 13. Demand Metric is a marketing research and advisory firm serving a membership community of over 120,000 marketing professionals and consultants in 75 countries. Offering consulting playbooks, advisory services, and 500+ premium marketing tools and templates, Demand Metric resources and expertise help the marketing community plan more efficiently and effectively, answer the difficult questions about their work with authority and conviction, and complete marketing projects more quickly and with greater confidence — thus boosting the respect of the marketing team and making it easier to justify resources the team needs to succeed. To learn more about Demand Metric, please visit www.demandmetric.com About Demand Metric Follow us on Twitter Like us on Facebook Join Linkedin Group © Demand Metric Research Corporation. All Rights Reserved.

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