Essential Change Management Concepts

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I often use this presentation to introduce/re-introduce change management concepts to leaders prior to starting a new organizational development initiative.

Essential Change Management Concepts

  1. 1. <ul><li>Change management is the planning, initiating, realizing, controlling, stabilizing and sustaining new and altered work activities at the corporate, group and personal levels. </li></ul><ul><li>In involves a balance of considerations from organizational management, industrial engineering and psychology disciplines. </li></ul><ul><li>The objective of change management is to successfully introduce new activities into a work environment in a manner that enhances organizational relationships between all constituents. </li></ul>© William Borges, All Rights Reserved, 2008 Slide 1 CHANGE MANAGEMENT DEFINITION
  2. 2. <ul><li>Change management is primarily a relationship activity. </li></ul><ul><ul><li>No matter how research-based or technical a project, it will always reach a point at which the success of work will hinge on the quality of the relationship the change agent has with the stakeholders. </li></ul></ul><ul><ul><li>Change implementation cannot be treated as a fundamentally rational process, even though tasks can be structured. </li></ul></ul><ul><ul><li>People choose to commit to change based on emotion, intuition, trust, personal faith and hope. </li></ul></ul><ul><ul><li>There are two aspects of change implementation: </li></ul></ul><ul><ul><ul><li>The technical work, and </li></ul></ul></ul><ul><ul><ul><li>The building of support for the proposed change. </li></ul></ul></ul><ul><ul><li>Any change requires not only a shift in what is tangible – such as methods and structure – but, also a shift in what is intangible – such as relationships, trust, intuition, personal faith, hope and commitment . </li></ul></ul>© William Borges, All Rights Reserved, 2008 Slide 2 CHANGE MANAGEMENT ESSENTIALS
  3. 3. <ul><li>Unfortunately, change cannot be simply designed and installed. Therefore, it always takes longer and is more difficult than was ever imagined. </li></ul><ul><li>When change agents lose their way and are unsure of how to proceed – which is often – they need to remember to return to the few ideas that ground the change initiative to reality, i.e., </li></ul><ul><li>What is – or will be – all messed-up? And, </li></ul><ul><li>How important is it that it be avoided, mitigated or fixed? </li></ul><ul><li>In a sense, the change agent’s job is to be a “learning architect.” At their best, change agents go beyond the simple design of sequenced tasks to design social settings that lead to insight, resolution of differences, and change. </li></ul>© William Borges, All Rights Reserved, 2008 Slide 3 CHANGE MANAGEMENT ESSENTIALS CONTINUED
  4. 4. <ul><li>It is hard to value struggle, entertain never-ending challenges from the keepers of the status quo and orthodoxy, and live with paradox in the service of thinking differently . . . Really hard! </li></ul><ul><li>Perceptions are reality to the perceivers. </li></ul><ul><li>Ultimately, implementation of any change boils down to whether people at all levels are going to take responsibility for its success and the success of the organization. </li></ul><ul><li>Implementation does not actually begin until the people who do the work decide whether they are going to make real changes or simply go through the motions. </li></ul><ul><li>Change and accountability occur when they are lived, not when they are preached. </li></ul>© William Borges, All Rights Reserved, 2008 Slide 4 CHANGE MANAGEMENT ESSENTIALS CONTINUED
  5. 5. <ul><li>Transformational efforts often fail because there is: </li></ul><ul><ul><li>No sense of urgency </li></ul></ul><ul><ul><li>No powerful guiding coalition </li></ul></ul><ul><ul><li>No compelling vision </li></ul></ul><ul><ul><li>Failure to communicate the vision </li></ul></ul><ul><ul><li>Failure to empower others to act </li></ul></ul><ul><ul><li>Failure to celebrate short-term wins </li></ul></ul><ul><ul><li>Failure to build on accomplishments, and/or </li></ul></ul><ul><ul><li>Failure to institutionalize results. </li></ul></ul><ul><li>Lessons of Radical Change </li></ul><ul><ul><li>Be cautious in trying to change rapidly </li></ul></ul><ul><ul><li>Spend time building relationships among key change stakeholders </li></ul></ul><ul><ul><li>Give priority to changing key elements first, and </li></ul></ul><ul><ul><li>Be alert that resistance might be high in the most sensitive change areas. </li></ul></ul>© William Borges, All Rights Reserved, 2008 Slide 5 CHANGE MANAGEMENT ESSENTIALS CONTINUED
  6. 6. Change agents should make sure that everyone who may be affected by a change knows specifically how it satisfies the following criteria: • Benefit – The change should have a clear relative advantage for the people being asked to change; it should be perceived as “a better way.” • Compatibility – The change should be as compatible as possible with the existing values and experiences of the people being asked to change. • Complexity – The change should be no more complex than necessary; it must be as easy as possible for people to understand and use. • Triability – The change should be something that people can try on a step-by-step basis and make adjustments as things progress. © William Borges, All Rights Reserved, 2008 Slide 6 CHANGE MANAGEMENT ESSENTIALS CONTINUED
  7. 7. THREE FUNCTIONAL OF ELEMENTS OF CHANGE DESPITE THE SIMPLICITY OF THESE CONCEPTS, CHANGE IS “EVIL” IN MANY ORGANIZATIONS AS EVIDENCED BY ITS LACK OF ENTHUSIASTIC ACCEPTANCE © William Borges All Rights Reserved, 2008 Slide 7 STOP DOING SOME OR ALL CURRENT ACTIVITIES START DOING NEW ACTIVITIES RESEQUENCE THE REVISED SET OF ACTIVITIES, AS NEEDED
  8. 8. CHANGE PHASE REFREEZE PHASE KURT LEWIN’S THREE PHASES OF CHANGE MANAGEMENT REINFORCEMENT TO ENSURE NEW ATTITUDES, SKILLS, KNOWLEDGE OR BEHAVIOR PATTERNS ARE PERMANENT EFFECTING CHANGE THROUGH A PROGRAM, PROJECT OR TECHNIQUE STIMULATING PEOPLE TO FEEL & RECOGNIZE THE NEED FOR CHANGE RESTART PROCESS WHEN ORGANIZATIONAL NEEDS WARRANT THAW PHASE <ul><li>Behavioral Sub-phases Within These Three Main Structural Phases Include: </li></ul><ul><li>Shock and Surprise </li></ul><ul><li>Denial and Refusal </li></ul><ul><li>Rational Understanding </li></ul><ul><li>Emotional Acceptance </li></ul><ul><li>Exercising and Learning </li></ul><ul><li>Realization, and </li></ul><ul><li>Integration. </li></ul>© William Borges, All Rights Reserved, 2008, Slide 8 THESE BEHAVIORAL SUB-PHASES ARE AKIN TO “FORMING, STORMING, CONFORMING & PERFORMING” IN TEAM BUILDING
  9. 9. RECOGNIZING NEEDS FOR CHANGE NEGATIVE ANSWERS TO ANY OF THESE QUESTIONS INDICATE NEEDS FOR ORGANIZATIONAL CHANGE ARE THESE RESOURCES ADEQUATE TO ACHIEVE THE ORG’S OBJECTIVES? ARE THE WORK PROCESSES ASSOCIATED WITH THESE RESOURCES FUNCTIONALLY SOUND? DO THE WORKERS & LEADERS AT ALL LEVELS OF THE ORGANIZATION KNOW HOW TO COMPETENTLY DO THEIR WORK WITH THE AVAILABLE RESOURCES & PROCESSES? IS THERE APPROPRIATE ACTIVE MANAGEMENT (i.e., MONITORING, DETECTING & CORRECTING ) OF RESOURCE USE & THE ASSOCIATED WORK PROCESSES AT ALL LEVELS OF THE ORGANIZATION? ARE CURRENTLY AVAILABLE RESOURCES – INCLUDING WORK PROCESSES -- ACHIEVING SPECIFIC OBJECTIVES WITH LEAST COST, EFFORT AND RISK? 1 3 2 4 <ul><li>NOTE: </li></ul><ul><li>AT THE HEART OF THESE QUESTIONS ARE COMMON ROOT CAUSES OF HEALTHCARE PERFORMANCE PROBLEMS – i.e., OBJECTIVES ARE NOT ACHIEVED WITH LEAST COST, EFFORT AND RISK : </li></ul><ul><li>THERE AREN’T ADEQUATE RESOURCES </li></ul><ul><li>WORK PROCESSES ARE NOT FUNCTIONALLY SOUND </li></ul><ul><li>NEITHER WORKERS NOR MANAGERS KNOW HOW TO COMPETENTLY DO THEIR WORK TO ACHIEVE OBJECTIVES WITH LEAST COST, EFFORT & RISK, AND </li></ul><ul><li>WORK IS NOT ACTIVELY MANAGED AT ALL LEVELS OF THE ORGANIZATION. </li></ul><ul><li>TAKING THEM A NECESSARY STEP FURTHER, THE COMMON ROOT CAUSE OF THESE ROOT CAUSES IS THEY HAVEN’T BEEN HIGH ENOUGH PRIORITIES FOR THE ORGANIZATION’S LEADERSHIP. </li></ul>© William Borges, 2008, All Rights Reserved Slide 9
  10. 10. STRUCTURED CHANGE MANAGEMENT PROJECT PHASE WORK BREAKDOWN STRUCTURE TEMPLATE FOR “FIX-IT” PROJECTS NEEDS ASSESSMENT & PROJECT SCOPING PHASE EXCLUDING THE DETAILED NEEDS ASSESSMENT TASKS, THE FOUNDATIONAL J.U.S.E* PROBLEM SOLVING PROCESS IS INTEGRATED INTO THIS SIMPLY EXPRESSED WBS 1 2 3 4 5 6 7 8 9 REMEMBER, THIS PROJECT TEMPLATE IS USED TO COMPLETELY OVERHAUL DYSFUNCTIONAL WORK PROCESSES © William Borges, 2008, All Rights Reserved, Slide 10 * J.U.S.E. – The Japanese Union of Scientists & Engineers concepts were originally introduced to that organization by W. E. Deming. They provide the foundation for continuous-improvement methods, e.g., total quality management, six-sigma , and Lean .
  11. 11. HYBRID FIX-IT PROJECT WBS INVOLVING IT SYSTEM IMPLEMENTATION PS1 PS2 PS3 PS4 PS5 PS6 PS7 PS8 PM1 PM2 PM3 IT1 IT2 IT3 IT4 IT5 IT6 © William Borges, 2008, All Rights Reserved Slide 11
  12. 12. PREPAREDNESS TESTING DRAFT PERFORMANCE STANDARD REVIEW, AMEND, APPROVE & PUBLISH PERFORMANCE STANDARD PARSE THE CHANGE MGT ACTIVITIES & MANAGEMENT CONTROLS FROM THE NEW PERFORMANCE STANDARD MONITORING, DETECTING & CORRECTING ACTIONS PHASE III CHANGE MANAGEMENT WORK BREAKDOWN STRUCTURE IMPLEMENT ADMINISTRATIVE SERVICE CHANGES DESIGN, SCHEDULE & COMPLETE INSTRUCTION IMPLEMENT PHYSICAL WORK SPACE & EQUIPMENT CHANGES 8 9 C1 IMPLEMENT DEPARTMENT MGT, ORGANIZATION & STAFFING CHANGES IMPLEMENT SUPPLY CHAIN, OTHER WORKFLOW & RISK MGT CHANGES C7 C8 C9 IMPLEMENT INFORMATION SYSTEM CHANGES THAW PHASE CHANGE PHASE REFREEZE PHASE C2 C6 C3 C5 C4 PHASE II PHASE I © William Borges All Rights Reserved, 2008 Slide 12
  13. 13. THE BASIC EMPLOYMENT CONTRACT AND ITS RELATIONSHIP TO AN EMPLOYEE’S FUNDAMENTAL MOTIVATION TO WORK ALTHOUGH THE BASIC EMPLOYMENT CONTRACT PREVAILS IN CONFLICTS, THE MORE CLOSELY ALIGNED THESE TWO FACTORS ARE, THE MORE LIKELY EMPLOYEES WILL ENTHUSIASTICALLY SUPPORT ORGANIZATIONAL DEVELOPMENT EFFORTS © William Borges, All Rights Reserved, 2008 Slide 13 An Employee Trades Their Time and Best Efforts to Achieve the Employer’s Objectives in Exchange for the Employer’s Compensation. THE BASIC EMPLOYMENT CONTRACT An Employee Works to Gain the Resources They Need to Do the Things They Really Want to Do in Life. AN EMPLOYEE’S FUNDAMENTAL MOTIVATION TO WORK
  14. 14. FOR EVERY GOOD THING WE TRY TO ACHIEVE, THERE WILL BE ADVERSE SIDE EFFECTS ADVERSE SIDE EFFECTS VARY IN SIGNIFICANCE. REMEMBER, HOWEVER, FEW ARE ACTUALLY “FATAL FLAWS.” WITH THOROUGH CHANGE PLANNING, MANY ADVERSE SIDE EFFECTS CAN BE ANTICIPATED. Obstructionist Behaviors Are Often Attempts to Stop Change Initiatives Because of This Reality THEN, IF THEY CANNOT BE OBVIATED, THEY CAN AT LEAST BE MITIGATED TO AN ACCEPTABLE LEVEL. MANAGING THE T.A.N.S.T.A.A.F.L.* DILEMMA *(There Ain’t No Such Thing As A Free Lunch) However, As a Leader, Our Job Does Not Require Us to Find 10 Reasons Why a Problem Shouldn’t, Couldn’t or Wouldn’t Be Resolved. Rather, As a Leader, We Only Need to Successfully Implement One Workable Solution. A Leader Is Better Off Focusing on These Principles © William Borges All Rights Reserved, 2008 Slide 14
  15. 15. A LACK OF SYSTEMATIC STRATEGY-TO-OPERATIONS LINKAGE IN THE MBO MODEL OFTEN ENCOURAGES THOSE WITH INADEQUATE MANAGERIAL SKILL SETS TO DEVELOP A PERFORMANCE OUTLOOK BASED ON: DEFLECTIONS OF ACCOUNTABILITY AGGRESSIVE RELIANCE ON SUPERFICIAL COMPETENCIES AND PERFORMANCE OUTCOMES TO CONCEAL THEIR INABILITIES (i.e., THE DUNNING-KRUGER EFFECT) SILO-ING AND DEFENDING THEIR TURF TO LIMIT INTERACTIONS WITH – AND POSSIBLE INTRUSIONS BY – OUTSIDERS WHO MIGHT NOTICE AND EXPLOIT THEIR MANAGERIAL SHORTCOMINGS LEADERSHIP SHORTCOMINGS THAT LEAD TO OBSTRUCTIONIST BEHAVIORS © William Borges, 2008, All Rights Reserved Slide 15
  16. 16. LEADERSHIP SHORTCOMINGS THAT LEAD TO OBSTRUCTIONIST BEHAVIORS Continued ONCE ESTABLISHED, THIS FLAWED PERFORMANCE OUTLOOK BECOMES A LEADER’S COMFORT ZONE FROM WHICH THEY WILL FIGHT ANY SUBSTANTIAL CHANGE LIKE A CORNERED CAT! AFTER ALL, THEY WORKED LONG AND HARD TO CREATE THEIR COMFORT ZONE AND THEY ARE NOT GOING TO LET ANYONE MESS IT UP! A TERRIFIC POP CULTURE REFERENCE TO THIS PHENOMENON COMES FROM MEL BROOKS IN HIS ROLE AS BLAZING SADDLES’ GOVERNOR WILLIAM J. LE PETOMANE: “ WE’VE GOT TO PROTECT OUR PHONY-BALONEY JOBS, GENTLEMEN!” © William Borges, 2008, All Rights Reserved Slide 16
  17. 17. GENERAL CHANGE OBSTRUCTIONS <ul><li>Obstructions to change are not all bad. The essence of this constructive approach is to recognize that when people resist change, they are defending something important that appears to be threatened by the change proposal. </li></ul><ul><li>Change agents can use such resistance as feedback to facilitate the achievement of change objectives. </li></ul><ul><li>Resistance to change can be categorized as follows: </li></ul><ul><ul><li>Resistance to the Change Itself – People may reject a change because they believe it is not worth their time, effort, or attention. </li></ul></ul><ul><ul><li>Resistance to the Change Strategy – People may reject a change because of reliance on an implementation strategy such as force-and-coercion . </li></ul></ul><ul><ul><li>Resistance to the Change Agent – PeopIe may direct obstructionist behaviors at the person implementing the change. This often involves personality issues and other less tangible factors. </li></ul></ul>© William Borges, All Rights Reserved, 2008 Slide 17
  18. 18. <ul><li>An informed change agent has many options available for dealing positively with resistance to change in any of its forms. </li></ul><ul><li>Regardless of the chosen obviation or mitigation tactic – or combination of tactics – it is always best to remember that the presence of resistance typically suggests that something can be done to achieve a better fit among the change, the situation, and the people affected. </li></ul><ul><li>A good change agent deals with resistance to change by listening to feedback and acting accordingly. </li></ul>© William Borges, All Rights Reserved, 2008 Slide 18 OBVIATIONS & MITIGATIONS TO CHANGE OBSTRUCTIONS: THE POSITIVE APPROACH
  19. 19. <ul><li>However, a wise change agent understands that not all obstructionist behavior has positive underpinnings or the potential for beneficial outcomes. </li></ul><ul><li>When a blatant obstructionist has lost sight of “the basic employment contract” and is acting exclusively within their own narrowly defined “motivation to work” thereby threatening the success of a change initiative, corrective actions prescribed by human resource policies and procedures are warranted. (See Slide 13) </li></ul><ul><li>The obviation and mitigation tactics presented on the next slides are in the preferred order of use. It is far better to start with the positive tactics and escalate to more draconian measures only as a last resort. </li></ul><ul><li>If it is deemed appropriate – through a cool, fact-based, well-reasoned assessment of organizational needs and risks – the draconian measures must be administered resolutely, strictly, ethically and legally within organizational policies and procedures. </li></ul>© William Borges, All Rights Reserved, 2008 Slide 19 OBVIATIONS & MITIGATIONS TO CHANGE OBSTRUCTIONS: THE NEGATIVE APPROACH
  20. 20. <ul><li>Education and Communication – The objective is to educate people about a change before it is implemented and to help them understand the logic of the change. </li></ul><ul><ul><li>Education and communication seem to work best when resistance is based on inaccurate or incomplete information. </li></ul></ul><ul><li>Participation and Involvement – With the goal of allowing others to help design and implement the changes, this approach asks people to contribute ideas and advice or to work on task forces or committees that may be leading the change. </li></ul><ul><ul><li>This is especially useful when the change agent alone could not possibly have all the information needed to successfully solve a problem. </li></ul></ul>© William Borges, All Rights Reserved, 2008 Slide 20 OBVIATIONS & MITIGATIONS TO CHANGE OBSTRUCTIONS – TACTICS
  21. 21. <ul><li>Facilitation and Support – These tactics provide help – both emotional and material – for people experiencing the hardships of change. </li></ul><ul><ul><li>A manager using this approach actively listens to problems and complaints, provides competency-based training and instruction in the new ways, and helps others overcome performance pressures. </li></ul></ul><ul><ul><li>Facilitation and support are highly recommended when people are frustrated by work constraints and difficulties encountered in the change process. </li></ul></ul><ul><li>Negotiation and Agreement – These tactics offer incentives to actual or potential change resistors. </li></ul><ul><ul><li>Trade-offs are arranged to provide special benefits in exchange for assurances that the change will not be blocked. </li></ul></ul><ul><ul><li>It is most useful when dealing with a person or group that will lose something of value as a result of the planned change. </li></ul></ul>© William Borges, All Rights Reserved, 2008 Slide 21 OBVIATIONS & MITIGATIONS TO CHANGE OBSTRUCTIONS – TACTICS , CONTINUED
  22. 22. <ul><li>Manipulation and Cooptation – These negative tactics use covert activities to influence others by selectively providing information and consciously structuring events so that the desired change occurs. </li></ul><ul><ul><li>In some cases, leaders of the resistance may be “bought off” with special side deals to gain their support. </li></ul></ul><ul><ul><li>Manipulation and cooptation are common when other tactics do not work, are too expensive or there is little time to implement the change. </li></ul></ul><ul><li>Explicit or Implicit Coercion – This negative tactic employs the force of authority to get people to accept change. </li></ul><ul><ul><li>Resistors are often threatened with a variety of undesirable consequences if they do not go along as planned. </li></ul></ul><ul><ul><li>This may be done, for example, in crisis situations when speed is of the essence. </li></ul></ul>© William Borges, All Rights Reserved, 2008 Slide 22 OBVIATIONS & MITIGATIONS TO CHANGE OBSTRUCTIONS – TACTICS , CONTINUED

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