1. ORGANIZATION MANAGEMENT Managing Organizational Change

2. Change is the process of moving from one state (current state) to another (future state) Transition What is Change? Current StateFuture State

3. l Change is inevitable l Change is uncomfortable l Change is disruptive l The complexity of change has increased Change – Facts & Dynamics People... l feel awkward, self-conscious l think first about what they have to give up l feel alone l can only handle so much l are at different levels of readiness l revert to the old as soon as the pressure is off Facts about Change Dynamics of Change

4. External Forces Economic Social Organizational Environmental Legal How Does Change Take Place? Current StateFuture State Transition Internal Transition Psychological process to shift behavior Let go of the old and embrace the new Occurs at your own pace Internal transitions must occur before change is fully realized

5. The Cycle of Transition Denial Resistance Commitment Exploration ZIGZAG it will be over soon this won’t happen apathy numbness minimize the change ignore sense of loss of control concerned with competency future contribution unclear lack of focus or direction can’t sleep at night anger/fights withdrawal from the team blaming teamwork satisfaction clear focus and plan cooperation balance clear vision of the future seeing possibilities exploring alternatives feeling “ I can make it” high creativity and energy too many new ideas lack of focus indecisiveness have too much to do start “being” in the future Inform, Communicate and Motivate Listen, Share and Understand Reward and Motivate Facilitate, Problem Solve and Motivate Adapted from Managing Change at Work by Cynthia Scott and Dennis Jaffe

6. Strategies for Managing Reactions to Change Resistance: Stop Spinning Your Wheels Exploration: Venture into Uncharted Territory Gather information from reliable sources. Avoid getting caught up in rumors and speculation. Discuss rumors openly with your manager and verify facts. Allow yourself time to internalize and reflect on how you feel about the change. Don’t be swept away by other’s emotion. Avoid staying stuck in this stage. It can be draining and defeating. Adapted from Managing Change at Work by Cynthia Scott and Dennis Jaffe Denial: Gain Power Through Information Commitment: Keep the Momentum Accept that this is a period of emotional turmoil and that you may experience feelings of anger, hurt, disappointment, depression, betrayal and loss. Seek emotional support from trusted friends, family, peers and managers. Avoid self-defeating behavior such as acting like a victim, developing a bad attitude, and rallying others to fight the change. Avoid staying stuck in this stage: A prolonged negative attitude can earn you a poor reputation and undo a lot of your good work. Continue to find new solutions to the new situation. Revisit and refine your goals. Continue to rally people around the change. Avoid complacency by assuming a new status quo. Continue to expand your skills and knowledge. Break out of your comfort zone by taking on new assignments and challenges. Continue to suggest ideas and think unconventionally. Focus on changes that can be made to work rather than listing all the things that can go wrong. Focus on priorities and set short term goals for yourself. Acquire new skills and knowledge.

7. Shifting Behaviors… To have people consistently behave in a new way, three conditions must be met the person must be aware of what the new desired behavior is; have the skills to perform the desired behavior successfully be motivated to change his/her old behavior

8. Managing Organizational Change a disciplined approach to help organizations manage transition

9. Guiding Principles of MOC  People are our only sustainable competitive advantage - they are the intellectual capital of the organization.  Those who are closest to the work have the best information about what is needed to do it most effectively.  People tend to support more readily what they help to create.  People need to understand the context of the change. Understanding is found through dialogue.  To build a sustainable change, people must experience some personal results.

10. Communication Minimizing thrash to the organization Stakeholder Analysis Identifying those impacted or influenced by the project Training Training strategy & delivery Change Impact & Organizational Readiness Assessment Identifying impacts of the change and monitoring organizational readiness Sponsorship Alignment Maintain Sponsor Alignment and Commitment Knowledge Transfer Knowledge capture and transfer to benefit project and others Team Effectiveness Assessing team dynamics and assisting the project manager MOC Areas of Focus

11. Creating Your Business Case Business case should articulate: The objectives of the project The intended outcomes and benefits Specific deliverables (including specific results) The driving forces The costs (fixed, short term, long term) and ROI The timeline and expected delivery date The constraints, risks, and challenges The proposed project structure – who is leading, who is participating Communication Minimizing thrash to the organization The purpose of a business case for change: To influence alignment around project objectives, deliverables, and metrics

12. Critical Success Factors: Gain alignment and agreement between sponsors and key stakeholders. Created to be used in future communications to end users Consider this a decision checkpoint: should we proceed with this investment or not? Lack of alignment indicates the need for continued refinement of the business case or a halt to the project. Communication Minimizing thrash to the organization Creating Your Business Case

13. Stakeholder Analysis Creating a stakeholder analysis: List all groups and individuals you expect to be impacted Useful to include the following attributes initially:  Group name / individual name  Manager name  Classification (sponsor, focus/target, change agent)  Directly or indirectly impacted  Impact Assessment (high, medium, low)  Key interests or expectations Stakeholder Analysis Identifying those impacted or influenced by the project The purpose of the stakeholder analysis: To specifically identify all members of the community that will be directly or indirectly impacted by the project To assess the ‘reach’ or magnitude of the project

14. Stakeholder Analysis – 2 Do early and update often. Utilize this information throughout the project – communication planning, focus groups, training assessments, and identification of risk areas Avoid the temptation to create multiple lists. Make use of this as the master list and design to future intentions. Use for assessments of needs, expectations, and success factors for key stakeholders by conducting interview sessions. Stakeholder Analysis Identifying those impacted or influenced by the project

15. Communication Minimizing thrash to the organization The purpose of communication planning: To identify objectives and messages for key communications ‘moments’ within a project To provide discipline around reviewing your communication strategy To provide a process to follow for creating messages. It can take 7-11 times for us to hear a message before we internalize …

16. Communication – 2 Communication Minimizing thrash to the organization The communication planning process: Determine communication vehicles, owners, and timing Determine audience Determine our desired outcomes Deliver the communication Get feedback and analyze effectiveness Determine key messages and communication objectives START Communication Process From stakeholder analysis What would be observable?

17. Sponsorship Alignment Sponsorship alignment includes: Specify sponsor roles and expectations Validate adequate sponsor representation Determine engagement model (expectations for future meetings and checkpoints) Periodic sponsorship assessments Determining escalation model Clearly stating accountability Establishing effective relationships with sponsors – keeping in touch Sponsorship Alignment Maintain Sponsor Alignment and Commitment The purpose of sponsorship alignment: To help build the partnership between the project and the sponsors To set expectations about what the sponsors will be asked to do to support the MOC activities of the project.

18. Sponsorship Alignment - 2 Sponsor Roles & Responsibilities : Maintaining program priority Championing the program through personal actions and conversations to peers and own organization Resolves conflicts over policies or objectives Providing political influence at high levels Acts as an escalation board for unresolved issues or cross-functional decisions Approving scope changes to site project plans Removing roadblocks and supporting key project decisions Creating the cultural shifts necessary to realize the business results and benefits. EXECUTIVE SPONSORS Note: There may be different levels of sponsorship needed throughout the life of the project Sponsorship Alignment Maintain Sponsor Alignment and Commitment

19. Training Training strategy/plan should articulate: A holistic picture of the education required to shift to future state Training goals and objectives Audience analysis Training needs analysis Delivery approach Cost proposals Use the stakeholder analysis for needs assessment Training Training strategy & delivery The purpose of training strategy/planning: To identify the educational needs required to update or alter the skills needed by the directly impacted audience To effectively deliver the training required

20. Training Strategy/Plan Audience analysis is key to training success Critical to understand what is the same and what is different to create that bridge between the familiar and the unknown Critical to accommodate multiple learning styles in training design Ensure your business community reviews and sponsors your strategy and delivery plan Hardest work is in the logistics Training Training strategy & delivery

21. Change Impact and Organizational Readiness The purpose of these activities: To assess the magnitude of the change to the organization To assess or assist on assessing organizational readiness for go/no go decision checkpoints Change Impact & Organizational Readiness Assessment Identifying impacts of the change and monitoring organizational readiness Change impact should articulate: What will stay the same What will be different What community is impacted how

22. Change Impact and Organizational Readiness Change Impact & Organizational Readiness Assessment Identifying impacts of the change and monitoring organizational readiness Sample Change Impact: Current State Who does this today? What systems are used? Other processes impacted? Process StepEngineerDesigner RA400Supplier Notification Future StateWho will do this? What systems will be used? Are there differences? Yes or No What are the key differences? What is the impact of this change? Process StepProcurementNew SystemYes Transitioning to Procurement Need training for procurement - need to assess readiness to transition

23. Knowledge Transfer Knowledge Transfer strategy should articulate: Recommendations for sharing key learnings from past projects Recommendations for conducting retrospectives at end of each project phase Process for communicating and sharing key learnings Project’s strategy for sharing knowledge and assessing learning skills Process for analyzing trends Process for storing and retrieving key learnings Knowledge Transfer Knowledge capture and transfer to benefit project and others The purpose of knowledge transfer: To identify your strategy for leveraging team knowledge To articulate tactical steps in knowledge capture, sharing, and transfer To identify trends in learning within the organization

24. Knowledge Transfer – 2 Ensure knowledge transfer activities are captured as part of the project schedule Understand your intent for capturing knowledge – how will it be used Identify ‘in the moment’ opportunities to ask “are we getting the results we want and if not, what do we want to do about that?” Developing a psychologically safe environment where learnings are valued Knowledge Transfer Knowledge capture and transfer to benefit project and others

25. Team Effectiveness The purpose of team effectiveness: To purposefully attend to team effectiveness on behalf of relationships and quality of deliverables To assess team processes in decision making, problem solving, and communication To partner with project manager and team members Team Effectiveness Assessing team dynamics and effectiveness

26. Team Effectiveness – 2 Team Effectiveness Assessing team dynamics and effectiveness Teams are most effective when: Commitment to a common purpose Clearly articulated goals Roles are understood and aligned Processes for decision making are clear Team is able to self-learn about their own effectiveness Mutual accountability for success Ability to share leadership Ability to collaborate Team is able to observe and respond to group norms QUESTION: ARE WE GETTING THE RESULTS WE WANT? IF NOT, WHAT DO WE DO ABOUT IT?

27. Today is a world of complex and frequent change Cultural and behavioral factors are the essence of organizational change Supports consistent leadership and communication practices Why is it important to focus on Organizational Change?

28. Barriers to Success for Organizational Change Deloitte & Touche Survey of CIO's regarding Business Transformation: Top 10 Barriers to Success 46% 65% 72% 82% 0%10%20%30%40%50%60%70%80%90% IT Perspective Not Integrated Not Horizontal Process View No Change Management Program Project Team Lacked Skills Scope Expansion / Uncertainty Case For Change Not Compelling Poor Project Management Unrealistic Expectations Inadequate Sponsorship Resistance To Change % of Firms Directly Relates to Managing Organizational Change

29. Assignment Read BA 550 class packet:  Why Should Anyone Be Led by You?  Leadership That Gets Results  Tipping Point Leadership Case brief – Silvio Napoli