Black, White or Gray - The Change Management Imperative for Shared Services and Outsourcing
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Transcript of Black, White or Gray - The Change Management Imperative for Shared Services and Outsourcing
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The Change Management Imperative for Shared Services and Outsourcing
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Why is change management imperative for shared services and outsourcing?
• Manage resistance from perceived ‘loss of control’
• Motivate outgoing employees to retain them through the transition period
• Ensure effective knowledge transfer
• Ensure the right culture and values are created
• Embed new ways of working post go-live
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Introducing Deborah and Sourcing Change
• Was tall and blond, now short and dark
• Admits failure• Deep experience as
buyer/provider• On mission to help industry
succeed through www.sourcingchange.com, the first resource dedicated to outsourcing and shared services change management
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Houston, (do) we have a problem?
• How many of you are struggling with change?
• What is your definition of change management?
• Where are you finding the greatest challenges when implementing shared services and outsourcing?
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Real purpose of sourcing change
Rapid control of and compliance to new ways of working
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Which means revolution…
• Moves fast—makeover throughtakeover
• Not democratic--limited input from stakeholders
• Initial degradation—majority experience or perceive loss
• Collateral damage—loss of position/jobs, new “rulers”
• Not optional—requires mandatory modification of behavior
“Revolution is an attempt to impose by any means rapid and comprehensive changes in the way people behave and think”
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Where almost everything changes
• Enablers - the what, when, how
• Outcomes - benefits from the change
• Rules - ordained ways of working
• Culture - faith in dogmas
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Add loyalty, vision, attitude, performance
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Add loyalty, vision, attitude, performance
GOVERNANCE
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Complexity
SPEED
GOVERNANCE
WORK GENERATIONORGANIZATION
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Grey matters: Revolution ensues …
• Loss of productivity and morale• Business line
rejection/workarounds• Passive resistance—”wait out
another program failure”• Unnecessary noise• Open warfare
“when rapid advances occur, people think they are merely numbers”
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… and compliance becomes critical
• Credibility—is the sponsor credible; is the change credible?
• Validation—can you get others I trust to do it as well?
• Reciprocation—what’s in it for me?
• Penalty—if I don’t change, what will you do to me?
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But we avoid dealing with grey …
• Tell, not engage, stakeholders
• Do not equip with skills to change/behaviours
• Do not position new “rulers” optimally
• Do not harness “self interest”
• Ignore the underpinnings of culture
• Do not acknowledge “taking” and use it effectively
• Do not deal with the psychology of change
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…which results in risk…
• During solution - suboptimal deployment strategy, inappropriate pace, unrefined organization structure, scope diminution, inadequate response models, insufficient championship, low commitment levels, no defined incentives
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…which results in risk…
• During solution - suboptimal deployment strategy, inappropriate pace, unrefined organization structure, scope diminution, inadequate response models, insufficient championship, low commitment levels, no defined incentives
• At announcement - grief, insurrection, departures, lack of trust, inattention, loss of productivity, high noise levels
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…which results in risk …
• During transition -insufficient knowledge transfer, loss of productivity, low morale, delays, rework, insufficient training, inadequate response models, wrong pace, improper staff reassignment/exits
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…which results in risk …
• During transition -insufficient knowledge transfer, loss of productivity, low morale, delays, rework, insufficient training, inadequate response models, wrong pace, improper staff reassignment/exits
• At steady state - passive resistance, solution corruption, inability to expand scope, inadequate communication, lost sponsorship, suboptimal performance, duplicate organizations, rejection of sourcing programs
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Typical approach to change management
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… which is not “better than before”
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For compliance, manage the grey
• What changes for whom? Use what changes to stage and pace
• What is the context in which the change occurs ? Work with the culture
• How best to encourage compliance? Apply the psychology of change
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Stage and pace change
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Work with culture
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Change by the numbers6 months to adopt/12 months to embrace/18Months to expand. No 2 organizations change the same way.
Organization to speak with 1 voice. 3 stages to sourcing change. Infinity = number of opinions. 10+
potential stakeholder groups. Reinforcement of behavior 3 times more powerful than 1
announcement. Maximum attributes to change at once is 5.
change programs in effect 24/7. 3 components of initial messaging in 4 phases. 2 most important messengers
are sponsors and managers. Majority of change efforts spend only
5 percent on employee concerns. Communication is a 2 way street. Effective change results from communicating 7 times
and in 7 ways. 1 chance to get it right.
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Parting words
• Result is revolution, not evolution, where almost everything changes
• Compliance means focus on the grey
• The grey can be effectively managed!
• Change management is control of and compliance to a new business model
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Questions? Comments?
Resources for Outsourcing and Shared Services Change Management