Presentation on theme: "Organizational Change Management"— Presentation transcript:
1 Organizational Change Management Leading Change in Information Technology
2 What Is Organizational Change? Organizational change is defined simply as:changes in organizational behaviors and employee attitudes to move from a current state to a desired future state based upon external stimuli triggering the eventChanges in the external environment effect changes in a company’s strategy, which drives technology, business processes, and organizationAddressing organizational change problems involves the introduction of Organizational Change Management (OCM)TimeProductivityImpact of New TechnologyManaged Change
3 Why Do Change Programs Fail? Resistance by EmployeesInadequate SponsorshipUnrealistic ExpectationsPoor Project ManagementBusiness Case not CompellingProject Team Lacked SkillsScope Expansion / UncertaintyNo Organizational Change PlanThe items denoted in RED are the areas that OCM efforts can impact.Silos/No Horizontal Process ViewSource: Deloitte CIO SurveyChange Leadership issues are noted in REDIT Perspective not Integrated
4 Why Do We Need OCM in IT?OCM is how an organization goes about implementing the human changes brought about by Technology and Business Process Improvements.The process of change management deals with the mechanisms of human transitions, the way personnel within an organization relate to change in their lives, and why some change efforts are successful while others fail.Successful change management and successful business management require effective integration and alignment of system and structure to support an effective culture. It requires attention to all major elements that impact organizational performance.
5 Change is Not an Event...it is a Process Help People SeeUnderstand the LogicCompelling situations are created to help others visualize problems, solutions, or progress in solving complacency, strategy, empowerment or other key problems within the eight stepsThe logic from the analysis feeds into the creation of the compelling situationsChange BehaviorEmotionallycharged ideas change behavior or reinforce changed behaviorHit the EmotionsHelp People SeeCompelling, dramatic situations are created to help others visualize problems, -solutions, or progress in solving complacency, strategy, empowerment, or other key problems within the 8 steps.Seeing something new hits the emotionsThe visualizations provide useful ideas that hit people at a deeper level than surface thinking.Emotionally charges ideas change behavior or reinforce changed behaviorThe visualizations provide useful ideas that hit people at a deeper level than surface thinking. They evoke a visceral response which reduces emotions that block change and enhances those that support it.
6 SCE’s Eight Steps of Change 8. Make it StickImplementing & Sustaining Transformation7. Sustain the Change6. Create Short-term WinsEngaging & Enabling the Whole Organization5. Plan/Organize/Enable ActionCreating a Climate for Change4. Communicate for Buy-inHere is SCE’s 8-step approach (based on Kotter’s Heart of Change model)Based on See-Feel-Change model – basically, show people the problem you are trying to solve (based on analysis and logic). Show them the problem in an emotionally impactful way. By creating that emotional connection, people feel the need to change. This clears a great deal of resistance and creates a demand for change.Three threadsCreate the Climate for changeEngage & enable the whole organizationImplement & Sustain the transformation3. Define the Change Impacts2. Create the Vision & Build the Guiding Team1. Create a Sense of Shared Need & UrgencyBased on Kotter, John P. Leading Change. Boston: Harvard Business School Press
7 Eight Steps of Change and Behavior Each step is designed to create a new behavior in the organization that will support the change processStepActionNew Behavior1Create a Sense of Shared Need and UrgencyPeople start telling each other, “let’s go, we need to change things!”[Note: This is the most important step. If you lose urgency the change effort grinds to a halt, maintain it and you will be able to navigate the remaining 7 Steps.]2Create the Vision and Build the Guiding TeamA group powerful enough to guide a big change is formed and they start to work together well. The guiding team develops the right vision and strategy for the change and begins to engage key stakeholders.3Define the Change ImpactsThe guiding team identifies the organizational and personal impacts required to realize the vision.4Communicate for Buy-InPeople begin to buy into the change and this shows in their behavior5Plan/Organize/Enable ActionMore people feel able to act, and do act, on the vision.6Create Short-term WinsMomentum builds, as more and more people try to fulfill the vision, while fewer and fewer resist change7Sustain the ChangePeople make wave after wave of changes until the vision is fulfilled8Make It StickPeople keep behaving in new ways despite the pull of tradition, turnover of change leaders, etc.Here are the 8-steps outlined at a very high level. We’ll be using the 8-steps to organize our activities and tools. Using the 8 steps also helps us communicate what we do in Change Management to those who either don’t know about CM or see it as too soft or ambiguous.The blue/yellow/red coloring helps outline the phase you are in.Creating a Climate for Change is steps 1-3 = Getting things readyEngaging & Enabling the Whole Organization is 4-6, Getting things started and Implementing & Sustaining Transformation is 7-8, Getting it embeddedMost projects rush to step 4 and 5 – ‘say something and get going’, but they never get to 7 because they try to bite off more than the organization can chew in the initial steps – so things get bogged down and stall.Based on Kotter, John P. Leading Change. Boston: Harvard Business School Press
8 Tools & Accelerators for Each Step 8. Make it Stick7. Sustain the Change6. Create Short-term WinsTargeted Reinforcement StrategyPerform-ance Mgt Process ContinuumBalanced ScorecardPerform-ance Appraisal Design ApproachProject QA Program MaterialsPerform Alignment and Mgt. StrategySample Tools5. Plan/ Organize/ Enable ActionUser Satisfaction SurveySponsor Assess-ment (update)Stakeholder Awareness Assess-ment (update)Leader Action PlansChange Challenge Session MaterialsDon’t Let Up Field Guide4. Commun. for Buy-inQuick Hit Workshop TemplateQuick Hit Action Plan TemplateQuick Hit Evaluation Guidelines3. Define the Change ImpactsChange Agent AssessmentSponsorship AssessmentOrg. Structure PrimerPerformance PrimerClient Readiness AssessmentStakeholder Action PlanProject Team Assessment2. Create the VisionStakeholder AnalysisAudience Analysis / Prioritiza-tion MatrixCommunication Media Analysis & SurveyMedia Usage MatrixCommunication MatrixStakeholder Action Plan1. Sense of Need & UrgencyImpact Assess-mentOrganiza-tional Analysis SurveyPosition PrototypeCultural Assess-mentChange Impact AnalysisForce Field AnalysisProject Team CharterResponsibility ChartingManaging ExpectationVisioning Basics GuidelineSponsor-ship Action PlanProblem StatementProject DescriptionClimate for Change AssessmentRisk Wheel
9 Managing Change at SCE: An Example Project: PlanView Project/Resource Mgmt SystemType of Change: System and Process change Scope: IT UsersVision & Sponsorship- Executive Sponsor Team- Process OwnersUser Training Plan- Customized classroom Training by role- 1 hr Web based trainingCommunicate for Buy-in- Timely & consistent message to all users- Information disseminated via OCM RepsUser Web Site- Central repository of info- Training materials- Project status- FAQs and PointersPlanViewImplementationSMEs- Subject Matter Experts by role- First line of user supportProcess Team- Developed new processes around the system- Addressed process change issuesOCM Reps- Change Agents from each work group- Single point of contact for their group- Issue escalation & resolution