Change Management

Nickey DiamondExecutive Director

Youth For Social Change MyanmarNickeyMdy@gmail.com

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 ModelFrom 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•U NCERTAINTY•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 Analysis2. Develop Strategies• Staffing Strategy• Communications Strategy• Change Management Strategy

3. Develop Integrated Project Plan

Stakeholder Analysis Process

1. Identify Stakeholders2. Analyze Needs and Wants3. Identify Barriers to Change4. Best Means for Communication5. 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 Wants2. Identify Barriers to Change3. Best Means for Communication4. Ideas for Participation and Leveraging

their Skills and Knowledge

Use a Simple TableStakeholder Needs and

WantsBarriers to Change

Best Means Ideas 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 ChangeWhy 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+ + + +VISION SKILLS RESOURCESINCENTIVES

ACTIONPLAN

+ =CONFUSION + + + SKILLS INCENTIVESACTION

PLANRESOURCES

=FALSESTARTS+ + +VISION SKILLS INCENTIVES RESOURCES

=ANXIETY + + + +INCENTIVES RESOURCESVISIONACTION

PLAN

=GRADUALCHANGE

+ + + +VISION SKILLS RESOURCESACTION

PLAN

=FRUSTRA-TION

+ + + +VISION SKILLS INCENTIVESACTION

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, or3. don't think that the change makes

sense, or4. find it difficult to cope with either the

level or pace of the change

Resistance to ChangeWhy 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 ChangeWhy 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