1. Healthcare Financial Management Association LEADING CHANGE

2. If you forget everything else, please remember… “People don’t resist change, they resist being changed.” - Peter Senge

3. The Business Case for Leading Change 66% of change/improvement initiatives fail or worse, create a new set of problems Source: Deloitte 82% of survey respondents identified change management as a priority for their company 99% expect an increased need for change management over the next three years Source: The Conference Board, Effective Change in Business Enterprises

4. The Greatest Obstacles to Change Employee resistance Middle-management resistance Poor executive sponsorship Limited time, budget and resources Corporate inertia and politics Source: Prosci Benchmarking Report, over multiple years - same results

5. 5 Discussion What’s your role in leading change?

6. Introductory Exercise Your Signature Please…..

7. Comfort Zone

8. Change Means Changing Productive Habits  Work habits are patterns that run our lives  These habits take the pressure off of needing to consciously control every aspect of daily life  Change very often disrupts our work habits  Stopping a work habit means we all go back to zero  Forming new habits takes repetition, constructive feedback, recognition and patience

9. New Habits Equal Loss of Control Discussion Questions: How could you restore a sense of control? Why would you want to do that?

10. Individual Model

11. 11 Choosing Engagement Over Installation Discussion Question: Isn’t simply telling people to do things enough?

12. 12 Too Much Going On?

13. 13 Change Saturation Two thirds of organizations indicated their organization was nearing, at or past the point of change saturation 76% expect an increase in the amount of change over the next 2 years -2009 Best Practices in Change Management, Prosci

14. 14 Individual Symptoms Disengagement, apathy, indifference Burn out & fatigue Anxiety & stress Confusion More Complaints Frustration, anger, feeling overwhelmed Cynicism & skepticism -2009 Best Practices in Change Management, Prosci

15. 15 Involve people early, often Establish & communicate priorities Improve communications, key stakeholders Celebrate & reward success, early adapters Clearly demonstrate why change is needed, data Reinforce change is constant, “it’s our new normal” Create saturation appreciation Help people prioritize Execute appetite control Eliminate the “nice to have, focus on the must to have” Coping Techniques

16. 16 Portfolio Management One third of organizations kept an inventory or list of all changes underway 24% had a structured process for managing the portfolio of change -2009 Best Practices in Change Management, Prosci

17. 17 Effective Project Management Practices Many change efforts were compromised because people did not use common tools associated with effective project management: A poorly prepared scope document, little input Poor effort estimates and duration calculations Poor resource planning A schedule created in isolation from other initiatives (saturation) Ineffective team Lack of proactive communication, insufficient redundancies Poor engagement of stakeholders “Every change is a project and every project requires a plan”

18. 18 “Washing Hands” Six Sources of Influence – Vital Smarts

19. 19 Six Sources of Influence 1.Make the Undesirable Desirable 2.Over Invest in Skill Building 3.Harness Peer Pressure 4.Find Strength in Numbers 5.Design Rewards & Demand Accountability 6.Change the Environment

20. 20 Stakeholder Analysis A simple tool to understand key stakeholders and their needs – See the handout as identified by the facilitator

21. 21 Communications Planning Develop an executable plan to reinforce key messages with stakeholders – See the handout as identified by your facilitator

22. 22 What is Resistance? “Resistance is the push-back one experiences when trying to change or improve a process or system.”

23. 23 Working with Resistance Skillful leaders manage resistance by: – Identifying resistance when it is taking place – Viewing resistance as an appropriate and normal part of the process – Clarify the existence of resistance, and discussing it candidly and with tact – Use facilitation to move the dialogue forward – Support other’s attempts to explore and express resistance – Not taking resistance personally

24. 24 Where Should You Spend Your Time? Pioneers Thundering Herd CAVE Dwellers

25. 25 “The Tipping Point” Key Concept: 10% - 20% adoption is the heart of the diffusion process, after which it is often impossible to stop a new idea

26. 26 Proactive involvement/engagement It’s about changing habits People change at different rates It’s not about telling or talking louder It’s about helping people with priorities It involves effective project planning and plans It involves use of strategies to influence stakeholders It’s about communication processes on overdrive It involves working effectively with resistance Key Ideas for Leaders

27. 27 Check-Out Share with the person next to you: What is one thing that really struck you today about leading change?

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