CHANGE MANAGEMENT Course: MGT323 BPM Lecture # 10 1 Fall 2008-BPM FAST-NU Islamabad

WHY MANAGE CHANGE? Fall 2008-BPM FAST-NU Islamabad 2 “ In the old days we had no time to plan, but somehow we could always find the time to do the job twice when it went wrong!” Architectural metalworker foreman

Fall 2008-BPM FAST-NU Islamabad 3 CHANGE MANAGEMENT: TODAY’S VIEW

Fall 2008-BPM FAST-NU Islamabad 4

5 CHANGE MANAGEMENT: TODAY’S VIEW

Fall 2008-BPM FAST-NU Islamabad 6 CHANGE MANAGEMENT: TODAY’S VIEW

Fall 2008-BPM FAST-NU Islamabad 7 CHANGE MANAGEMENT: TODAY’S VIEW

So Manage Change? Fall 2008-BPM FAST-NU Islamabad 8

CHANGE IS DIFFICULT & RANKS AS A TOP CONCERN FOR MOST ORGANISATIONS Most Large Scale Transformation Projects Fail Source: The Economist: Change Management, An Inside Job, 15 July 2000 % Projects Success Rate Of 294 Large Scale Transformation Projects (%) Organisations need to rigorously anticipate and manage the challenges of implementing strategy Organisations need to rigorously anticipate and manage the challenges of implementing strategy 100

CHANGE MANAGEMENT IS ABOUT ‘HOW’ NOT ‘WHAT’ Some Illustrative Examples Not ‘What’......but ‘How’ E.g., Crafting a vision to an organization E.g., Asserting a model for governance and decision making E.g., Defining criteria for success & evaluating against them E.g., Communicating the changes Surfacing perspectives & gaining consensus on opportunities & constraints Exploring key areas of need and framing tradeoffs for consideration Understanding stakeholder expectations and feasibility Creating an overall plan for vehicles to deliver key messages to specific stakeholders Capability applies to any change initiative: One UN, Joint Offices, Agency realignment etc. Capability applies to any change initiative: One UN, Joint Offices, Agency realignment etc.

Note:This curve reflects the ‘classic’ situation if change is well managed. In other situations the curve may evolve dramatically differently. Copyright 2001 © Jeanie Daniel Duck THE ‘CHANGE CURVE’ DESCRIBES THE JOURNEY OF TRANSFORMATION FOR AN ORGANISATION Where are the pilots?

Phase One: Stagnation Phase Two: Preparation Phase Three: Implementation Phase Four: Determination Phase Five: Fruition Organization assumes it’s safe Feels no serious threat or compelling opportunity Knows change is needed but is unsure what to do Lacks confidence in self and management Rush to the answer and jump into action Fail to clarify scope, constituencies, robust plan Fail to balance broad vision with detailed plan Fail to appreciate the complexity of communications Core group gets too far ahead Assume readiness and understanding Early wins generate unrealistic expectations Take easy actions, leave long, hard ones unaddressed Results slower than expected Enthusiasm wanes; burnout occurs Gloom and doom scenarios and blaming proliferate Don’t celebrate or share rewards/recognition Fail to reflect and harvest lessons learned Allow accomplishments to become sacred cows Allow Fruition to fade into Stagnation Create a healthy dissatisfaction with the status quo Generate appetite for change Build required capabilities -skills, beliefs, behaviors Unite the leaders; prepare to be tested Develop credible action plan -strategy, plan to generate energy, enthusiasm -robust communications plan Manage expectations and experience Address beliefs and behaviors directly; reinforce what’s desired Keep focus and clear accountability Validate the vision Stay in touch and stay flexible Leaders drive action, make any necessary trade-offs Address morale issues to increase motivation Broadly share praise and rewards Leverage learning to build change capability Prepare for next cycle Recruit new blood and new perspectives Do we really have to change? Will this plan work? What’s in it for me? Will mgmt make the hard decisions? Can we stay here? PhaseTrapsManagement Challenges EACH PHASE EXHIBITS PREDICTABLE TRAPS AND UNIQUE MANAGEMENT CHALLENGES Does anything sound familiar?

Supporting Change Tools SIX PARTS TO ANY CHANGE PROJECT Consensus on case for change Establish baseline Build compelling vision Translate vision into manageable changes initiatives Engage senior leaders and gain commitment Align beliefs and behavior of stakeholders, both internal and external Recognize and manage the emotional journey Align organization design Align HR processes and performance management Align IT systems Align budgets and targets Conduct post- project audit Transfer change management capabilities Start to close identified capabilities gaps Create and execute internal communications plan and align external stakeholders communications Provide governance and program management Design roadmaps to deliver results Rigorously monitor & manage change initiatives Create Change Agenda Mobilize Organization Manage for Results Sustain Change Hardwire Change Communicate Intensively JanFebMarAprMayJunJulAug Overall status of pilots

COMPULSORY READING: Fall 2008-BPM FAST-NU Islamabad 14  BPM Third Wave: Chapter 7  Change Management is a Process Too ( pp )  This will help you in understanding how BPM Systems can help in optimizing organizational Change Processes.