Why do we need
Organizational Change
Management (OCM)?
Signs that you need structured
change management
Your corporate culture cannot easily
change to keep ahead of the competition
Projects fail because of stakeholder
resistance and lack of user buy-in
You have too many changes in progress
causing higher project failure
2www.carolynreid.net
People Resist Transition
Because They:
 Are not willing . . .
 Have a general fear of change
 Are in their comfort zone
 Are not able . . .
 Have not been trained
 Don’t have the skills required
 Do not know . . .
 Lack of communications
 Don’t understand the business
Drivers
 Cannot relate this to personal
benefit
3www.carolynreid.net
Comfort Zone!
Retailers change our world,
Sometimes they don’t understand
our comfort zone
• New Coke
– Don’t take our Coke flavor away
• Jones Soda flavors: Dirt, Mutton,
Green Bean Casserole
– NOT Appealing
• Bic Men’s Cologne and Pizza Hut
Cologne
– What were you thinking??!
What do people need to know?
Why are we doing this?
Why are we doing this now?
What is the impact if we don’t do this?
Do leaders support this change?
How will this affect me personally?
What are the consequences if I don’t
participate?
5www.carolynreid.net
Prosci Study: Project
Success Factors
 Projects with effective OCM were nearly six times
more likely to meet or exceed their project goals
1.Active and visible executive sponsorship
2.Structured change management approach
3.Frequent and open communications around the
need for change
4.Dedicated Resources for change management
5.Employee Participation
6© Prosci, Inc. All rights reserved. Used with permission. www.change-management.com
Prosci® Study: Greatest
Obstacles
Greatest Obstacles to successful change:
1.Ineffective Change Sponsorship from Senior
Leaders
2.Resistance to the Change from Employees
3.Poor Support and Alignment with Middle
Management
4.Lack of Change Management Resources and
Planning
7
© Prosci, Inc. All rights reserved. Used with permission. www.change-management.com
Change is a process, Your
attitude will change
throughout the transition
Your first change But then you discovered cake…
Then you
realized that
your parents
don’t know
anything and
they don’t get
you
College!
Another major change
And then you reviewed
this presentation
Managed OCM lowers the drop in
Production caused by people’s change
in attitude as they transition
9www.carolynreid.net
What happens when stakeholders
don’t participate in Change?
• Passive or active resistance
• Project failure, money loss
• Good people leave
• Productivity goes down
• Impact on customer
• Benefits and ROI not realized
• People expect future changes to fail
www.carolynreid.net 10
What happens when you
forget about OCM?
2010 - Lumber Liquidators ($650 million
revenue) endured 45% net income drop from
reduced productivity during SAP
implementation
2011 - UK Government cancelled Electronic
Health Record initiative because users didn’t
buy in - $18 Billion loss
www.carolynreid.net 11
OCM Drives ROI
12
Managed Change results
in:
 Faster Adoption
 Higher Utilization and
Proficiency
www.carolynreid.net
Working through Change
Strong sponsorship
Two way communication
People understand the business drivers for
the change and how it will affect them
Expect and understand Resistance
Provide simple, clear choices while people
are transitioning
13www.carolynreid.net
The Change Ready Culture
 Change Management competency across the
organization
 Leaders have a passion for the change & communicate
the business benefit
 People know the answer to
 What is in it for me? Why are we doing this?
 What if we don’t do this?
 Early Employee involvement in the solution
 Management knows & works on managing resistance
www.carolynreid.net 14
Organizational Change
Management (OCM)
OCM enables organizations & people to
transition to achieve and sustain the
desired business strategy
OCM drives ROI:
Accelerating Adoption
Ensuring Proficiency
Minimizing the dip in Productivity
www.carolynreid.net 15
Contact Me
Email me: csreid1@cox.net
Call me: 602-882-5292
Visit my blog and website to read about my consulting
and read my blog posts: www.carolynreid.net
Link in with me on LinkedIn:
http://www.linkedin.com/in/carolynreid
Visit my consulting partner: www.vistx.com
Join the Arizona Change Management Group:
http://www.linkedin.com/groups/Arizona-Change-
Management-Group-5065670?trk=my_groups-b-grp-v
My blog post on Hi Tech Answers:
http://www.hitechanswers.net/?s=carolyn+reid+
www.carolynreid.net 16
Thank you and I look forward to talking with you!

whydoweneedorganizationalchangemanagement-140227143634-phpapp01

  • 1.
    Why do weneed Organizational Change Management (OCM)?
  • 2.
    Signs that youneed structured change management Your corporate culture cannot easily change to keep ahead of the competition Projects fail because of stakeholder resistance and lack of user buy-in You have too many changes in progress causing higher project failure 2www.carolynreid.net
  • 3.
    People Resist Transition BecauseThey:  Are not willing . . .  Have a general fear of change  Are in their comfort zone  Are not able . . .  Have not been trained  Don’t have the skills required  Do not know . . .  Lack of communications  Don’t understand the business Drivers  Cannot relate this to personal benefit 3www.carolynreid.net Comfort Zone!
  • 4.
    Retailers change ourworld, Sometimes they don’t understand our comfort zone • New Coke – Don’t take our Coke flavor away • Jones Soda flavors: Dirt, Mutton, Green Bean Casserole – NOT Appealing • Bic Men’s Cologne and Pizza Hut Cologne – What were you thinking??!
  • 5.
    What do peopleneed to know? Why are we doing this? Why are we doing this now? What is the impact if we don’t do this? Do leaders support this change? How will this affect me personally? What are the consequences if I don’t participate? 5www.carolynreid.net
  • 6.
    Prosci Study: Project SuccessFactors  Projects with effective OCM were nearly six times more likely to meet or exceed their project goals 1.Active and visible executive sponsorship 2.Structured change management approach 3.Frequent and open communications around the need for change 4.Dedicated Resources for change management 5.Employee Participation 6© Prosci, Inc. All rights reserved. Used with permission. www.change-management.com
  • 7.
    Prosci® Study: Greatest Obstacles GreatestObstacles to successful change: 1.Ineffective Change Sponsorship from Senior Leaders 2.Resistance to the Change from Employees 3.Poor Support and Alignment with Middle Management 4.Lack of Change Management Resources and Planning 7 © Prosci, Inc. All rights reserved. Used with permission. www.change-management.com
  • 8.
    Change is aprocess, Your attitude will change throughout the transition Your first change But then you discovered cake… Then you realized that your parents don’t know anything and they don’t get you College! Another major change And then you reviewed this presentation
  • 9.
    Managed OCM lowersthe drop in Production caused by people’s change in attitude as they transition 9www.carolynreid.net
  • 10.
    What happens whenstakeholders don’t participate in Change? • Passive or active resistance • Project failure, money loss • Good people leave • Productivity goes down • Impact on customer • Benefits and ROI not realized • People expect future changes to fail www.carolynreid.net 10
  • 11.
    What happens whenyou forget about OCM? 2010 - Lumber Liquidators ($650 million revenue) endured 45% net income drop from reduced productivity during SAP implementation 2011 - UK Government cancelled Electronic Health Record initiative because users didn’t buy in - $18 Billion loss www.carolynreid.net 11
  • 12.
    OCM Drives ROI 12 ManagedChange results in:  Faster Adoption  Higher Utilization and Proficiency www.carolynreid.net
  • 13.
    Working through Change Strongsponsorship Two way communication People understand the business drivers for the change and how it will affect them Expect and understand Resistance Provide simple, clear choices while people are transitioning 13www.carolynreid.net
  • 14.
    The Change ReadyCulture  Change Management competency across the organization  Leaders have a passion for the change & communicate the business benefit  People know the answer to  What is in it for me? Why are we doing this?  What if we don’t do this?  Early Employee involvement in the solution  Management knows & works on managing resistance www.carolynreid.net 14
  • 15.
    Organizational Change Management (OCM) OCMenables organizations & people to transition to achieve and sustain the desired business strategy OCM drives ROI: Accelerating Adoption Ensuring Proficiency Minimizing the dip in Productivity www.carolynreid.net 15
  • 16.
    Contact Me Email me:csreid1@cox.net Call me: 602-882-5292 Visit my blog and website to read about my consulting and read my blog posts: www.carolynreid.net Link in with me on LinkedIn: http://www.linkedin.com/in/carolynreid Visit my consulting partner: www.vistx.com Join the Arizona Change Management Group: http://www.linkedin.com/groups/Arizona-Change- Management-Group-5065670?trk=my_groups-b-grp-v My blog post on Hi Tech Answers: http://www.hitechanswers.net/?s=carolyn+reid+ www.carolynreid.net 16 Thank you and I look forward to talking with you!