4 Core Challenge So many moving parts… Leaders Employees Customers ResourcesMessagesSustainabilityStructureSo many moving parts…
5 Difficult & challenge with organizational change A survey of senior executives in 14 industries confirmed that the benefits of Change Management substantially delayed and/or negated due to:Lack of buy-in that the transformation is necessary 64%Lack of skill or experience with Change Management 44%No senior management champion or alignment of leaders 44%Turf battles 44%Lack of congruent reward system 36%Data from Accenture Consulting
6 Managing the “valley of despair” Structured Change Management – Positive outcomes maximizedDCAWithout Structure - Outcomes unpredictableperformanceB“valley of despair”Start of programGo-liveBuild FoundationDeploySustaintimeManaged Change Management goal: minimize negative impact of change inA – DurationB – DepthC – Acceleration of time to competence/new levels of productivityD – Sustaining ongoing performance
7 What is change management? Effective transformation achieves the following:Maintains a clear focus on business results.Builds and sustains ownership and commitment to the change by involving the right employees and management throughout the change.Enables the workforce through training and communication of new responsibilities and expectations.Aligns the organization to drive appropriate changes in behavior.Builds the support system to sustain transformation.
8 Organizational performance APPROACH TO IMPROVING
9 CHANGE MANAGEMENT CRITICAL ELEMENTS SCOPE of the change and the realities you’ll faceWHO is involved in the design, development, implementationWHY change is neededWHAT is the organizational design – alignment, integrationHOW the new organization is implemented and managed
11 PHASE 1 – CHANGE MANAGEMENT PROJECT ANALYSIS Analyze the objectives and outcomesMatch up against the current culture, modifying approach to increase likelihood of successKEY ACTIVITIESDevelopment of overall change strategyEnsure project structure and plan meets key objectives of senior leadersDevelop and implement initial communication strategy to:Enlist key change agentsBuild project participants awarenessDELIVERABLESSolidified Project PlanMeeting and updating schedule for senior leadershipSign-off design of approach and initiativeCommunication plan for leadership teamFacilitated session with the senior leadership to ensure understanding of goals, objectives, deliverables, etc.
12 SIZING THE PRIZE Pick a change from that previous exercise: What are the challenges you see?Who are key people you’ll need to talk to?What information will you need to understand scopeSIZING THE PRIZE
14 Typical project structure for organizational redesign Involve the organization to increase success and sustainability.SponsorsExecutive Sponsor TeamReview recommendationMake final decisionsCore TeamCore Team Leader and Core Team MembersDevelop organizational improvement recommendationsWork with key stakeholderChange SupportChangeAgentsFunctional Stakeholder TeamsDevelop detailed functional area recommendationsFunctional Stakeholder TeamsDevelop detailed functional area recommendationsFunctional Stakeholder TeamsDevelop detailed functional area recommendations
15 Change management builds commitment of users & stakeholders To achieve project vision and benefits
16 Your core teamWhat are the key areas you need represented on the core team? Why?Who would be on your core team? Why?
17 Phase 2 – building the business case for change - what “Agreeing to Why Change is Needed and Aligning the Stakeholders to Support the Change”Key ActivitiesAsses & build business case for change.- External Reasons for Change- Internal Reasons for ChangeAsses & align organization (rewards, policies, metrics, culture) to support change.Incorporate business case for change with stakeholder management strategies.Incorporate business case for change in organizational metrics system.DeliverablesDefined business case for change.- External: Financial, Customer, Market, Competition, Regulatory- Internal: Organizational, IndividualStakeholder management strategy that incorporates the business case for change.Project plan that continues to build momentum, support & alignment of stakeholders to support the change.Assessment & alignment of organizational factors to support change.
18 Your Change What is the key business driver for this change? What will it improve?What will be different?How will the changes be received?Your Change
19 Phase 3 – Designing and building the SOLUTION “Designing a High Performance Organization”Key ActivitiesWork with your core team toMake Changes to the organization as neededCreate any Functional / Process DesignUpdate Process, Roles, Structure, Metrics, Teams, Technology [ALTER AS NEEDED]DeliverablesAn agreed upon design/solution that your stakeholders are in line with.
20 Alignment of all organizational elements are critical What are we trying to accomplish?StrategyAcquisition development, and use of competencies required for performance.Arrangement of resources, tasks, and accountabilities.PeopleStructureFormal and informal measures that define success and are used to hold people accountable.Formal and informal waysthings are done.Technology enablement of processes.Process & TechnologyMetrics
21 Your Change What are the key design elements of your change? Structure?Metrics?People?Your Change
22 Phase 4 – Implementation and achieving high performance “Achieving the desired business results”Key ActivitiesDevelopment of performance metrics that track the phases of:ImplementationUtilizationRealizationDeliverablesPerformance metrics that track and measure success at three phases of the project:ImplementationUtilizationRealization
23 Your ChangeHow will you know the change is successful?
24 Key takeaways Most change fails because the impacted are not involved. Change is a process, not an event.Link change to a business driver.Know the impact to key organizational elements.Be clear about what success of the change looks like.