CHANGE MANAGEMENT STRATEGIES FOR ORG TRANSFORMATIONS

P R E S E N T E R : J A S M I N E L A N G E V I N EA P R I L 2 6 , 2 0 1 9

ORGANIZATIONAL TRANSFORMATIONS

COMMON OBSTACLES TO CHANGE

In organizational transformations, 66% of change initiatives fail to achieve desired business outcomes. Common reasons include:

Sirkin, Keenan, Jackson. “The Hard Side of Change Management,” Harvard Business Review, October 2006.

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Identify Prepare Design Execute Sustain

CHANGE MANAGEMENT METHODOLOGY

Current State Transformation Future State

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There are typically five phases in a transformation, where change management activities such as planning, engagement, and reinforcement are deployed to support each phase.

Plan

• Vision Alignment• Stakeholder Assessment• Assessing Readiness• Change Management Plan

• Change Agent Network• Communication Strategy &

Plan• Readiness Pulse Checks

• Training / Readiness Materials Strategy & Plan

• Knowledge Transfer Plan• Resistance Plan

Example Change Management Activities

CHANGE COMMITMENT CURVE

The objective of the change management activities is to move those affected by the change along the Change Commitment Curve.

Sirkin, Keenan, Jackson. “The Hard Side of Change Management,” Harvard Business Review, October 2006.

ASSESSING ORGANIZATIONALREADINESS FOR CHANGE

ASSESSMENTS TO PREPARE FOR CHANGE

Change Readiness Assessment Skill Gap Assessment Change Impact Assessment

Definition

§ An evaluation of how effective key organizational dimensions currently are (Project Vision, Communication, etc.) and the identification of areas needing more attention to increase the project’s success

§ An evaluation of the variances between existing skills and skills needed to successfully operate the organization after the change occurs

§ An evaluation of the degree in which the change will impact stakeholders and the organization. Impacts are categorized by a change in: process (business course of action), people (skills & knowledge), technology or structure (operational)

Illustration

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Desired 4.7Actual 435

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Vision

Communication

Desired 4.7Actual 435

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Do our key stakeholders understand the vision, strategy, and rationale for the project?

Are our key stakeholders adequately informed about the project?

Sample Change Impact:

All annual department budgets will be entered into the new system and require VP & SVP approval.

Current Role Future Role

Technology Lead

Solution Architect

CHANGE READINESS ASSESSMENT DIMENSIONS

Change Dimensions

VisionDo our key stakeholders understand the

vision, strategy, rationale, and benefit of the project? Communication & Engagement

Do our key stakeholders and Colleagues have adequate

communication channels to receive reliable and impactful information about

the project?

TrainingDo Colleagues value training for

personal and organizational improvement?

Org. InfrastructureDo we have the appropriate structure and resources to

enable the change?

LeadershipWhat is our Colleagues’

perception of leadership? Does leadership visibly support the

program?

Change HistoryIn past org transformations, what obstacles did we face? Is there resistance towards the change?

UnderstandingDo Colleagues understand their

role in the project? Do they understand what future changes

there will be?

Competing InitiativesWhat other initiatives are occurring at the same time that will stress our resources?

These dimensions help determine overall organizational readiness and identify which areas to focus on to increase the rate of adoption for the change.

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SKILL GAP ASSESSMENT

Depending on what the change is trying accomplish, the skill gap assessment identifies which skills are most lacking that are required to support the future state of the organization.

“Drive for Results Performance Review,” Performance Review Henseki Blogspot, May 2017.

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Of the skills required to be ready for / operationalize the coming

change, identify which resources possess which skills and:

Develop a plan to train up the workforce on key skills that

are lacking

Develop recommendations

for decisions regarding FTE % vs Contractor %

CHANGE IMPACT ASSESSMENT3

Overview

Process Area Stakeholder Group Impact of ChangeLevel of Impact OCM Activity

People Process Tech Eng Com Tra

Onboarding• Local HR• Global Shared Svcs

• Data entry into the system will shift from Local HR Resources to HR Shared Services.

Employee Relations• Local HR• Managers

• Managers will perform direct report suspensions instead of Local HR Resources.

Data Management• Local HR• All Employees

• HR Transactions are not active in the system until all approvals are complete.

Compensation Planning

• Managers• Sr. Ldrs

• Approval of annual compensation budgets will shift from Managers to VP’s and SVP’s.

H H L

L M M

M H M

Level of Impact

(H, M, L)

Level of impact can be determined by:

• Potential increase and change in workload • Impact of process automation on role• Amount of behavioral change required

Category of

Change

PeopleProcessTechnology

Ø Change in tasks, skills, and knowledgeØ Change in process flow and formsØ Change in applications, tools, databases, security

LEGEND:

H M L

The impact assessment illustrates which process areas and stakeholders will be impacted and to what degree.

KEY TAKE AWAYS: READINESS FOR CHANGE

When assessing your organization’s readiness for change there are three key considerations that will underpin the aforementioned methods of measuring readiness.

Amount of time before the change begins

How well stakeholder groups are / can be defined

Effectiveness of existing communication channels

HOW CULTURE IMPACTS CHANGE

ORGANIZATIONAL CULTURE

Culture needs to align with and support the business strategy

Culture isshaped byleaders’ actions and decisions

Culture is sustained by employee behaviors

Culture is reinforced by business and organizational systems

Culture starts with leaders, is realized through employees, and drives the organization’s ability to execute strategy.

COMPONENTS OF ORGANIZATIONAL CULTURE

“Denison Performance Culture Diagnostic,” Curve Group, 2017.

For most organizational transformations, critical

culture components include:

How people / departments

work together (e.g., not in silos)

If continuous learning is

expected and embedded

There are four key areas that help identify your organization’s culture.

ADDRESSING COMMON PITFALLS DURING CHANGE

COMMON PITFALLS

Stakeholders

Continuous shift of members in varying stakeholder groups

Project Resources

Continuous evolution of collaboration and change in project resources

Training

Continuous change to training needs & requirements

Most organizations naturally evolve throughout the duration of a long term change journey. There is a need for change management agility to keep up with the demands of the change.

Stakeholders

Potential Solutions

Project Resources

Potential Solutions

Training

Potential Solutions

ACTIVITY: DISCUSS POTENTIAL SOLUTIONS TO COMMON PITFALLS

Partner with the person next to you, select one pitfall, and briefly discuss potential solutions to managing the common change management challenges list below.

SHIFTING STAKEHOLDERS: POTENTIAL SOLUTIONS TO COMMON PITFALLS

Reassess Appropriate Change Management Activities for Shifting Stakeholders

Identify if new change management activities are needed for evolved stakeholder groups, e.g:• Engagement (e.g., Change Agent Network or

department representatives in the network)• Communications (e.g., altering / customizing

information provided to stakeholder groups)• Training (e.g., people who were in different

stakeholder groups now joining a combined group who will perform the same task in the future state)

Reassess and Update Stakeholder List / Groups

Develop a list of stakeholder groups (often categorized by department, level, or task they execute), then at each project milestone:• Assess if the shifts caused by the change,

e.g.,: each group’s reporting structure / new leader, members who will enter/exit the group, or key tasks members of the group will perform in the future state

• Redefine the stakeholder groups

Text

Redefined Stakeholder Groups

Review & Redefine at Each Milestone

Illustrative

Illustrative

Communicate

Engage

Train

SHIFTING PROJECT RESOURCES: POTENTIAL SOLUTIONS TO COMMON PITFALLS

Visioning Realignment Sessions at EACH Milestone

• As the scope, impact, or other major components of the project change, re-visit the overall vision and journey map for the project

• Gather all project resources and leaders toair out grievances, identify solutions, and recommit to the larger goal

• Create a project resource ”bench / alternate list / pipeline” to prepare for shifting resources

Lessons Learned Review Sessions at EACH Milestone

• At the end of each phase / milestone throughout the change journey continually iterate on how resources work together

• Analyze why certain project components were a success or failure

• Identify ways to repeat successes and proactively anticipate & manage future challenges

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Recalibration Discussions

Develop & Review at Each Milestone

with Teams

Illustrative

Illustrative

SHIFTING TRAINING NEEDS: POTENTIAL SOLUTIONS TO COMMON PITFALLS

Job Readiness Presentations

When Training:• Provide information on how jobs will change

using a more succinct format and a forum for associate questions

• Communicates how employees perform processes, tasks, & jobs today vs in the future

• Redefine at each project milestone specific activities that associates will start, stop, and continue doing as a result of the change

Quick Reference Cards

Before Training:• Provide high-level information on how the

change will impact the organization• Identify which areas within the organization

will be impacted more significantly than others

• Refresh change impacts regularly (e.g., at each milestone) and incorporate into the project overviews and training materials

TextDevelop & Review Iteratively with

Teams

Readiness Materials

PROFIT ASDA Workforce Readiness 8

How is your role changing?

• Inputting invoices directly on AP notes• Weekly (every Friday) batch run to complete netting between

the purchase ledger (AP) and the sales ledger (AR• Executing Pay Me Early in a stand alone system• Manually generating large volumes of cheques• Manually entering foreign currency payments• Entering routing information for Electronic File Transfer (EFT)

payments

ActivityAction

You will no longer be performing the following activities:

PROFIT ASDA Workforce Readiness 9

How is your role changing?

• Completing new supplier master data fields in in legacy so that the feed works through eMDM to interface with SAP

• Using supplier master records that have been automatically created in SAP when a new supplier master is added in eMDM

• Inputting invoices into SAP• Using a Pay Me Early system that interfaces to SAP• Utilizing a cheque payment process that is fully automated in

SAP that results in very few manual cheques needing to be created

• Using SAP functionality that enables a file to be sent directly to a middleware system which converts the currency in a bank file format

• Using ‘Straight2Bank SCB’ technology that sends EFT payments directly to the bank

ActivityAction

You will now be performing the following activities:

PROFIT ASDA Workforce Readiness 10

How is your role changing?

• Creating supplier master data in legacy• Inputting T-batches on AP notes• Reviewing Cheque payments for One Time Vendors (OTV)

before sending out to suppliers

ActivityAction

You will continue to perform the following activities:

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SUMMARY AND RECAP

Identify Prepare Design Execute Sustain

CONCEPT REVIEW

Current State Transformation Future State

In your organization’s transformational journey, it is imperative to assess readiness, understand how culture will influence executing the change, and prepare for common pitfalls.

Assessing Readiness Your Org’s Culture Common Pitfalls

• Change Readiness Assessment

• Skill Gap Assessment

• Change Impact Assessment

• Key Cultural Components:

• How people / departments work together

• If continuous learning is expected and embedded

• Stakeholders (Continuously review / redefine groups)

• Project Resources (Review & realign after key milestones)

• Training (Develop short trainings around start, stop, and continue)

THANK YOU

F O R M O R E I N F O R M AT I O N V I S I TW W W. C A R E E R C O N V O S . C O M