Change Management Nickey Diamond Executive Director Youth For Social Change Myanmar

Presentation Outlines Define Change and its Management Introduce Organizational Change Management FUD & Planning Process Resistance to Change Managing Change

If you don’t like something, Change it or re-design it. If you can’t change it, change the way you think about it.

What is “Change”? Type of Change Incremental Fundamental evolution revolution

Change Management Change management is a structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment. In project management, change management refers to a project management process where changes to a project are formally introduced and approved.

What is Organizational Change Management? From Wikipedia.org Organizational change management is the process of developing a planned approach to change in an organization. Typically the objective is to maximize the collective benefits for all people involved in the change and minimize the risk of failure of implementing the change. The discipline of change management deals primarily with the human aspect of change, and is therefore related to pure and industrial psychology.

Effective management of the people dimension of change requires managing five key phases:  Awareness of the need for change  Desire to make the change happen  Knowledge about how to change  Ability to implement new skills and behaviors  Reinforcement to sustain the change once it has been made

ADKAR – Awareness of the need for change (why). – Desire to support and participate in the change (our choice). – Knowledge about how to change (the learning process). – Ability to implement the change (turning knowledge into action). – Reinforcement to sustain the change (celebrating success).

Examples of Organizational Change Missionary changes Strategic changes Operational changes (including Structural changes) Technological changes Changing the attitudes and behaviors of personnel

Bridges Transition Model From Dr. William Bridges, Ph.D., Transition — The Personal Path Through Change : Phase 1: Endings: Every transition begins with an ending, a loss. When things change, people leave behind the way things were — and the way they were in the previous situation. They may be left searching for a new way to define themselves. Phase 2: The Neutral Zone The neutral zone is a confusing in-between state, when people are no longer who and where they were, but are not yet who and where they're going to be. Although the neutral zone can be distressing, it also provides many opportunities for creative transformation. Phase 3: New Beginnings A new beginning can only happen after people have let go of the past and spent some time in the neutral zone. In this phase, people accept the reality of the change and start to identify with their new situation.

Current State Employees (including management and executives!) generally prefer the current state, because that is where they live Current State Transition State Future State “better the devil you know is better than the devil you don’t”

Successful Change Management Benefits management and realization to define measurable stakeholder aims, create a business case for their achievement (which should be continuously updated), and monitor assumptions, risks, dependencies, costs, return on investment, dis-benefits and cultural issues affecting the progress of the associated work. Effective Communications that informs various stakeholders of the reasons for the change (why?), the benefits of successful implementation (what is in it for us, and you) as well as the details of the change (when? where? who is involved? how much will it cost? etc.). Devise an effective education, training and/or skills upgrading scheme for the organization. Counter resistance from the employees of companies and align them to overall strategic direction of the organization. Provide personal counseling (if required) to alleviate any change related fears. Monitoring of the implementation and fine-tuning as required.

F U D F EAR F EAR U NCERTAINTY U NCERTAINTY D OUBT D OUBT

FUD – The Consequences The most talented and marketable resources will opt for more certain employment (with someone else) Turnover will be higher It will be difficult to attract new talent to the organization Personal productivity will be impacted Business as usual and transition work will get mixed up – loss of focus on both Lines of authority and job responsibilities will become blurred Communications will become reactive – countering misinformation The outside world will know about the FUD

FUD – The Strategy Acknowledge that not everything is known or decided If you don’t have the answer to the question, know how and when you will Know how everyone will be involved in the process of creating certainty Have a solid plan and demonstrate that you are following it to build confidence Counter balance FUD with visible competent leadership

The Planning Process 1.Stakeholder Analysis 2.Develop Strategies Staffing Strategy Communications Strategy Change Management Strategy 3.Develop Integrated Project Plan

Stakeholder Analysis Process Identify Stakeholders 1. Identify Stakeholders 2. Analyze Needs and Wants 3. Identify Barriers to Change 4. Best Means for Communication 5. Ideas for Participation and Leveraging their Skills and Knowledge

Exercise One – Stakeholder Analysis For your assigned Stakeholder group complete the analysis: 1. Analyze Needs and Wants 2. Identify Barriers to Change 3. Best Means for Communication 4. Ideas for Participation and Leveraging their Skills and Knowledge

Use a Simple Table StakeholderNeeds and Wants Barriers to Change Best MeansIdeas for Participation

Staffing Strategy Are there going to be jobs lost? If so, how many? How will you decide who gets the jobs in the new organization structure? Who will decide if I am going to get fired or not? When and how will I know what is going to happen to me? If I get to stay will my pay and benefits change? What happens if I get fired? How will I know that you are going to treat me fairly? Who do I go to if I have questions about my employment? Could my job be moving to another city? If so, will you help me move? How will you reduce the risk of constructive dismissal and legal challenges?

Communications Strategy Why is this happening? What are the benefits that you hope to achieve? Where can I go to find out more information about the changes? What means will you be using to communicate this to all the stakeholders? What are the key messages that everyone needs to know by heart? When and how often will you be providing more information? What role will leaders play in the communications plan? How will stakeholder feedback be gathered? How will the effectiveness of your communications be measured? What protocol will be used with external media?

Change Management Strategy How will you come up with the new organization structure? How are you going to figure out what changes will be made to our business processes? What resources (financial and human) will be required to do the transition work? How will I keep day to day operations humming while all this is going on? What expertise will I need that I don’t have to carry out the transition? Which systems will we be using to run the organization going forward? How will you help me to learn the skills I need to do my new job? Who will be training me? When will I stop doing my current job and move into my new role? How can I learn more about the overall changes that are occurring? Will I get a chance to participate in the development of the new roles and processes?

Exercise Two – Developing Strategies Group 1: Staffing Strategy – Come up with a Strategy for how jobs will be filled in the resulting organization Come up with alternatives Pick the one that makes the most sense for the scenario Group 2: Communications Strategy – Develop 2 Key Messages Come up with what you think will be the most frequently asked questions Choose 2 and develop key messages for each Group 3: Change Management Strategy – Come up with a strategy to determine the location(s) of Head Office functions for the combined organization Come up with alternatives Pick the one that makes the most sense

Barriers to Change Why do people resist change? The status quo provides a certain comfort zone Need for stability Need for predictability Fear of the unknown Others???

Model of Employee Decision to Actively Resist an Organizational Change Effort

Management of Complex Change: Critical Components Vision –Strategic Planning Skills Incentives Resources Action Plan

Management of COMPLEX CHANGE =CHANGE VISIONSKILLSRESOURCESINCENTIVES ACTION PLAN + =CONFUSION +++ SKILLSINCENTIVES ACTION PLAN RESOURCES = FALSE STARTS +++ VISIONSKILLSINCENTIVESRESOURCES =ANXIETY INCENTIVESRESOURCESVISION ACTION PLAN = GRADUAL CHANGE ++++ VISIONSKILLSRESOURCES ACTION PLAN = FRUSTRA- TION ++++ VISIONSKILLSINCENTIVES ACTION PLAN

FORCE FIELD ANALYSIS DRIVING FORCES RESTRAINING FORCES State Desired Change Here ( EQUILIBRIUM OR CURRENT STATUS) Forces resisting the change Forces favoring the change

Why Resistance? People don't like change Don't like being changed Fear and resistance

Resistance Fight against change: 1.fear to lose something 2.don't understand the change and its implications, or 3.don't think that the change makes sense, or 4.find it difficult to cope with either the level or pace of the change

Resistance to Change Why people resist change: Resistance to change can be a defense mechanism caused by frustration and anxiety Individuals may not be resisting the change as much as they are resisting a potential loss of status, pay, comfort, or power that arises from expertise In many case there is not a disagreement with the benefits of the new process, but rather a fear of the unknown future and about their ability to adapt to it, e.g. fear that one will not be able to develop new skills and behaviors that are required in a new work setting

Resistance to Change Why people resist change: There may be resentment in disgruntled employees due to a perceived unfairness of the change. This can be strong enough to lead to sabotage. Some employees may see the change as a violation of "personal compacts" management has with their employees. This can involve elements of mutual trust, loyalty and commitment and go very deep An employee may have a “competing commitment” that is incompatible with the desired change

How prevalent is Resistance to Change? – It is generally acknowledged that in an average organization, when the intention for change is announced: – 15% of the workforce is eager to accept it – 15% of the workforce is dead set against it – 70% is sitting on the fence, waiting to see what happens

How can I best accomplish Organization-wide Change? – Since our interest here is in Management of Organizational-wide Change, it can be helpful to re-define Resistance to Change as “employees are not wholeheartedly embracing a change that management wants to implement" (Dent & Goldberg, 1999) – This allows us to focus on gaining acceptance (a positive) rather than on breaking down resistance (a negative).

How can I best accomplish Organization-wide Change? The high-level view: – Get senior management agreement (i.e. conflicting goals can kill the project!) – Identify a champion who can articulate the reasons for and advantages of the change – Translate the vision for change into a realistic plan and then carry out the plan – Involve people from every area of the organization – Communicate. Communicate. Educate. Educate. – Get organizational buy-in to the change – Modify organizational structures so that they will sustain the change

 Widely communicate the potential need for change. Communicate what you're doing about it. Communicate what was done and how it worked out. Communicate that Senior Management backs this strategy unanimously.  Get as much feedback as practical from employees, including what they think the problems are and what should be done to resolve them. If possible, work with a team of employees to manage the change.  Don't get wrapped up in doing change for the sake of change. Know why you're making the change. What goal(s) do you hope to accomplish? Communicate the goals!

 Plan the change. How do you plan to reach the goals, what will you need to reach the goals, how long might it take and how will you know when you've reached your goals or not? Focus on the coordination of the departments/programs in your organization, not on each part by itself. Have someone in charge of the plan.  Delegate decisions to employees as much as possible. This includes granting them the authority and responsibility to get the job done. As much as possible, let them decide how to do the project.  The process won't be an "aha!" It will take longer than you think.  Keep perspective. Keep focused on meeting the needs of your customer or clients.

 Take care of yourself. Organization-wide change can be highly stressful.  Don't seek to control change, but rather expect it, understand it and manage it.  Include closure in the plan. Acknowledge and celebrate your accomplishments.  Read some resources about organizational change, including new forms and structures.  Consider using a consultant. Ensure the consultant is highly experienced in organization- wide change.

Summary – Organizational Change Management is “all of the actions required for an organization to understand, prepare for, implement and take full advantage of significant change”. – The goals of Change Management are: The successful design, implementation, measurement and maintenance of an organization’s change initiative Enhancement of their on-going capacity for managing change

Summary – Enterprise Transformation is driven by an underlying strategy that organizes and energizes People to understand, embrace and make full use of new Process and Technology – Degree of success of this endeavor is measured by the level and nature of the Business Impact achieved

Summary To be effective as a change agent, consider and understand: – The system or context in which you work – Yourself as a leader – What it takes to motivate and involve others

“Everyone thinks of changing the world, but no one thinks of changing himself.” Leo Tolstoy

Thank you! Q & A