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Organizational Change Management

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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 event Changes in the external environment effect changes in a company’s strategy, which drives technology, business processes, and organization Addressing organizational change problems involves the introduction of Organizational Change Management (OCM) Time Productivity Impact of New Technology Managed Change

3 Why Do Change Programs Fail?
Resistance by Employees Inadequate Sponsorship Unrealistic Expectations Poor Project Management Business Case not Compelling Project Team Lacked Skills Scope Expansion / Uncertainty No Organizational Change Plan The items denoted in RED are the areas that OCM efforts can impact. Silos/No Horizontal Process View Source: Deloitte CIO Survey Change Leadership issues are noted in RED IT 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 is a Process
Help People See Understand the Logic Compelling situations are created to help others visualize problems, solutions, or progress in solving complacency, strategy, empowerment or other key problems within the eight steps The logic from the analysis feeds into the creation of the compelling situations Change Behavior Emotionally charged ideas change behavior or reinforce changed behavior Hit the Emotions Help People See Compelling, 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 emotions The visualizations provide useful ideas that hit people at a deeper level than surface thinking. Emotionally charges ideas change behavior or reinforce changed behavior The 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 Stick Implementing & Sustaining Transformation 7. Sustain the Change 6. Create Short-term Wins Engaging & Enabling the Whole Organization 5. Plan/Organize/Enable Action Creating a Climate for Change 4. Communicate for Buy-in Here 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 threads Create the Climate for change Engage & enable the whole organization Implement & Sustain the transformation 3. Define the Change Impacts 2. Create the Vision & Build the Guiding Team 1. Create a Sense of Shared Need & Urgency Based 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 process Step Action New Behavior 1 Create a Sense of Shared Need and Urgency People 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.] 2 Create the Vision and Build the Guiding Team A 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. 3 Define the Change Impacts The guiding team identifies the organizational and personal impacts required to realize the vision. 4 Communicate for Buy-In People begin to buy into the change and this shows in their behavior 5 Plan/Organize/Enable Action More people feel able to act, and do act, on the vision. 6 Create Short-term Wins Momentum builds, as more and more people try to fulfill the vision, while fewer and fewer resist change 7 Sustain the Change People make wave after wave of changes until the vision is fulfilled 8 Make It Stick People 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 ready Engaging & Enabling the Whole Organization is 4-6, Getting things started and Implementing & Sustaining Transformation is 7-8, Getting it embedded Most 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 Stick 7. Sustain the Change 6. Create Short-term Wins Targeted Reinforcement Strategy Perform-ance Mgt Process Continuum Balanced Scorecard Perform-ance Appraisal Design Approach Project QA Program Materials Perform Alignment and Mgt. Strategy Sample Tools 5. Plan/ Organize/ Enable Action User Satisfaction Survey Sponsor Assess-ment (update) Stakeholder Awareness Assess-ment (update) Leader Action Plans Change Challenge Session Materials Don’t Let Up Field Guide 4. Commun. for Buy-in Quick Hit Workshop Template Quick Hit Action Plan Template Quick Hit Evaluation Guidelines 3. Define the Change Impacts Change Agent Assessment Sponsorship Assessment Org. Structure Primer Performance Primer Client Readiness Assessment Stakeholder Action Plan Project Team Assessment 2. Create the Vision Stakeholder Analysis Audience Analysis / Prioritiza-tion Matrix Communication Media Analysis & Survey Media Usage Matrix Communication Matrix Stakeholder Action Plan 1. Sense of Need & Urgency Impact Assess-ment Organiza-tional Analysis Survey Position Prototype Cultural Assess-ment Change Impact Analysis Force Field Analysis Project Team Charter Responsibility Charting Managing Expectation Visioning Basics Guideline Sponsor-ship Action Plan Problem Statement Project Description Climate for Change Assessment Risk Wheel

9 Managing Change at SCE: An Example
Project: PlanView Project/Resource Mgmt System Type of Change: System and Process change Scope: IT Users Vision & Sponsorship - Executive Sponsor Team - Process Owners User Training Plan - Customized classroom Training by role - 1 hr Web based training Communicate for Buy-in - Timely & consistent message to all users - Information disseminated via OCM Reps User Web Site - Central repository of info - Training materials - Project status - FAQs and Pointers PlanView Implementation SMEs - Subject Matter Experts by role - First line of user support Process Team - Developed new processes around the system - Addressed process change issues OCM Reps - Change Agents from each work group - Single point of contact for their group - Issue escalation & resolution

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