Using agile and lean to lead business transformation agile 2010
Integrating Change Management Into Technology and Outsourcing Implementations
1. Integrating Change Management Into Technology and Outsourcing Implementations An Introduction to Solleva Group and the Architecture of Change℠
2. Contents Introduction Summary of Capability Our Approach What is Change Management Straight Talk About the Challenges of Change The Science Behind Change Management The Architecture of Change Solleva Group Services and History
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4. Proven track record of managing change in complex business transitions such as outsourcing and technology implementations, mergers, divestitures and workforce reductions
5. Adaptive change management framework that uses behavioral insights as the catalyst for operational action
6. An approach that will help you adapt change project requirements to integrate seamlessly into your technical project plan
7. Multiple mechanisms for delivery to ensure change is well managed regardless of budget, resources or project complexity
9. Broad range of capability that uses expertise, solutions, tools and resources to bring together the components of change management
10. Complementary expertise, such as process redesign, role definition and HR strategy, to create the infrastructure required to sustain behavior change
13. What is Change Management? Change Management is the process of aligning how people work and behave to fit specific changes in business strategy, organizational structure, or systems. Change management helps organizations successfully transition from a current state to a new, desired state. Transition NewState Current State “As Is” “To Be” Increasing Comfort, Control, and Confidence 6
14. Straight Talk About the Challenges of Outsourcing Industry research has shown a number of reasons why outsourcing initiatives often fail to achieve their anticipated results. The common thread is the human component. IT-centricity Communication gap Leaving service unchanged Client abdicating responsibilities Offshore backlash Poor scope management Relationship Lack of innovation Quality Contract Too much, too fast Culture Governance Lack of skills Deals for wrong reasons 7
15. The Bad News: The Research Says . . . Despite the known benefits of a structured approach to managing change, budgets, timelines and technical goals often take priority, and as a result, implementations struggle to achieve success. 30-80% of outsourcing and technology initiatives fail Dun & Bradstreet 2007 report noted that "25 percent of all outsourcing fails" completely and over 50% of all outsourcing deals do not deliver any substantive benefit at all. CIO’s Dynamic Market survey reports 62% of IT projects fail to meet their schedules and 25% get cancelled before completion 30% of web development teams deliver projects late or over-budget, according to the Ruby Report A PwC survey found that only 2.5% of the companies surveyed completed 100% of their projects on time and within budget Gartner's industry analysts report a staggering 55 to 70 percent of CRM projects fail to meet their objectives 29% of organizations launch initiatives with no formalized approach to change Despite these statistics, 80% of companies listed leading change as a Top 5 requirement 85% felt this capability was not as strong as needed in project leaders and teams Only 14-25% of organizations sought outside expertise to support change 8
16. The Good News . . . You Don’t Need “Change Management” People adapt The question is how rapidly do you need them to adapt The “80% solution” is acceptable because it does move organizations forward The question is how quickly do you need performance People figure it out The question is will project complexity make it more difficult to create solutions
17. Technical vs. Adaptive Challenges Adaptive challenges require the application of insight, frameworks, and collaborative processes to identify actionable solutions Technical Adaptive Difficult to identify (easy to deny) Require changes in values, beliefs, roles, relationships, & approaches to work People with the problem do the work of solving it Require change in numerous places; usually cross organizational boundaries People often resist even acknowledging adaptive challenges “Solutions” require experiments and new discoveries; they can take time to implement and cannot be implemented by edict Easy to identify Often lend themselves to quick and easy solutions Often can be solved by an authority or expert Require change in just one or a few places; often contained within organizational boundaries People are generally receptive to technical solutions Solutions can often be implemented quickly—even by edict
18. Why Is Change Difficult? Behind every human behavior there is an emotional process and a rational process. We assume we are reasonable human beings who think rationally about our decisions. The truth is that most of our decisions are made unconsciously with our emotional mind.
19. Transition Phase D C Continuous Improvement : Objectives of Managing Change: : Steady State A • Minimize A: Duration of performance drop- Resistance and grief off during transition phase • Minimize B: Depth of performance drop-off during transition phase Stabilize B • Maximize C: Performance level after Change Implementation implementation • Maximize D: Continuous improvement Time What Does Change Management Accomplish? The feelings people go through when experiencing change are similar to those feelings experienced during grief – and as in the stages of grief people can get ‘stuck’. Change Management helps people through these stages, while minimizing their loss of productivity Productivity 12
20. Why Most Approaches to Change Are Not Enough The difficulty leveraging the value of proven change models may lie less in the construct of the model itself, and more in the challenge of applying a rational and uniform framework to the irrational and unpredictable elements of human behavior A change management methodology, much like an architect’s blueprint, provides the overall design and objectives for managing the human aspects of a project It provides a structured plan to help you achieve a desired outcome It also gives project resources a consistent way to organize change-related activities and establishes a common language to conduct the work of change However, since the context and challenges are different for each organization change, our experience suggests that frameworks aren’t enough 13
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22. 15 Our Approach to Change Management Solleva’s Architecture of Change: Science & Art The Architecture of Change helps you navigate the inevitable challenges and ambiguity once projects begin by applying adaptive capability in a structured framework that integrates with the technical objectives of projects Division of Labor Task Clarity Task Master Tested Tools Project Mgmt 101 Regular Meetings Go to the Balcony Build Relationships Ask Tough Questions Listen Find the Real Problem Be Brutally Honest
23. 16 What is Change Science? The Science of Change: Technical Structure Science provides the structure (roles, tasks, milestones) to support change management technical activities. This will help us integrate change into your technical project plan. Division of Labor Task Clarity ..... ..... ..... ..... ..... ..... ..... ..... Task Master Tested Tools ..... ..... ..... Project Mgmt 101 Regular Meetings ..... ..... Science
24. 17 What is Change Art? The Art of Change: Adaptability Art provides ways for dealing with the emotionally and behaviorally driven, or adaptive, factors (perceptions, fears, agendas, points of view) of change management. Art Go to the Balcony Build Relationships Ask Tough Questions Listen Be Brutally Honest Find the Real Problem
33. Ask the tough questions to get stakeholders to acknowledge and address the riskScience Art Results: on-time delivery, engaged stakeholders, open communication, meaningful deliverables
34. Getting Started—What we do Understanding the project We have to know what’s changing in order to anticipate the impact on people Sales process, due diligence, project initiation Assessing organization, culture, project team capability, business requirements Read on the risks and organization readiness Helps build the plan Building the change team Train technical project team members on the approach—key to information feed Establishing common goals and language for project team Integrated team-- Building the plan—integrate and timed with technical plan Business requirements assessment, solutioning and documentation Build the change work stream plan and Influence the core project/technical plan Implementation of plan Adapt plan to changing requirements Issues and risks and recommendations to PMO Deliverables Post project activities
67. Coaching – Access to senior level consultants who will help you identity overall change framework, develop a project plan, provide tools and templates and be available for ongoing guidance.
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69. Communicationsand Knowledge Transfer –We create stakeholder and project team communications using a variety of formats that are tailored to align with organization level and corporate brand. We also help you identify learning requirements, develop content and deliver training to make sure end users are prepared for the transition.
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71. What Others Are Saying The Jump-Start Change! Workshop conducted has added a broader dimension to my PMO thinking about managing corporate change. I have found their integrated science-art model proposition to be thought provoking and their effective tools and roadmap ready to be put to the test, which I am doing already. Simply put, I believe Solleva has raised the bar on the subject of managing corporate change. Senior Director, Regional PMO, Beverages Company I love the Art & Science concept! The class will help me to go through the steps with greater depth. HR Director, Hospital The delineation between Art & Science forces you to focus on what you may be doing subconsciously to work against effecting change. VP of HR, Fortune 500 Conglomerate This class will make me more balanced in not only my professional life, but also my personal relationships. Senior Director of IT, Manufacturing I learned that having a plan doesn’t mean you’re done…it’s about planning and consistently retooling. Project Leader, Business Services
72. Additional Solleva Group Services In addition to our core change services, Solleva Group can provide expertise to help you address the infrastructure required to achieve long-term, sustainable results Role Definition & Design Process Redesign Change Management HR Effectiveness Talent Assessment
73. 25 Who Is Solleva Group? We are a new firm that brings together a team of seasoned experts with a shared passion for helping organizations manage change. The Solleva Group can hardly say it has a history. While we are newly formed and not yet a recognized name in the world of change management services, we are anything but new to the world of organization transitions. We understand change management from a variety of perspectives and bring deep experience and a proven track record in managing these initiatives. Our partners have held executive roles in major companies and have led practice areas at leading consulting and service organizations. Our team members’ capabilities span change management, communications, technology, outsourcing, finance, human resources, process standardization, organization and job design, operations management, shared services, . . . and more. Our team members have managed a myriad of change initiatives such as technology and outsourcing implementations, merger integrations, divestitures, leadership transitions, restructurings and downsizings, and broad-based culture change for companies of all sizes ---- from major global organizations to regional family-owned businesses. Our team members have deep expertise in a variety of industries including financial services, pharmaceuticals, manufacturing, health care, utilities, media, chemicals, business services, education, government, and nonprofits.
Editor's Notes
Change failsYou need to have an approach that goes beyond formalizedYou need outside expertise
You don’t need change, but you have to be ready to absorb the risk. The more complex the change, the more moving parts, the greater the risk that people will resist, etc.
Even when change team is in place, these transitions often don’t go well
