Change Process Model 6 Mar 00

8/8/2019 Change Process Model 6 Mar 00

http://slidepdf.com/reader/full/change-process-model-6-mar-00 1/59

Gary SadavageGary Sadavage ---- [email protected]@aol.com

Chalk it up to good old Yankee Ingenuity!Chalk it up to good old Yankee Ingenuity!

Yankee Ingenuity

Consulting

1

Non-Financial Measures for

Effective Change Management

International Society for Performance Improvement

Conference

Wednesday, April 12 2000





Yankee Ingenuity

Consulting

2

Your level of success is determined by your ability to deliberatelyalter business practices in a timely and cost effective manner.

The real challenge of change is not just to come up with abrilliant idea - it¶s to implement it.

Change ManagementChange Management

Successful change programs begin with targeted results.

Organizations worldwide are confronting moretur bulent markets, more demanding shareholders,

and more discerning discerning customers.





Yankee Ingenuity

Consulting

3

³ All Organizations now say routinely,

µpeople are our greatest asset.¶Yet few practice what they preach,

let alone truly believe it.´

- Peter Drucker





Yankee Ingenuity

Consulting

4

The soft stuff is theThe soft stuff is the hard stuff...hard stuff...

Change is hard, personally

We all go through it

Change is never sequential

Some of us manage our transitions better than others Change impacts different people differently

Consider the following...





Yankee Ingenuity

Consulting

5

How will my jobchange?

Who will Ireport to?

How will myperformance

bemeasured?

Whatdecisions do I

have tomake?

Whatnew skills

do Ineed?

Will this change beas difficult as the

last change?

How will myco-workers be

effected?

When willthe

changeimpactme?

Whowill Iworkwith?

What¶sin it for me?

They are of a very personal,individual nature.

?

?

Whyshould Icare?

What do all these questions have in common?What do all these questions have in common?

During times of change, employees focus:

1st, personal implications of the change

2nd, organizational implications

Employees may or may not ask thesequestions out loud, but more often than

not they are thinking them.

The process for answering the questionsis as important as the answers

themselves.



PAIN...

Is

WeaknessLeaving

the Body.

www.marines.comPhoto courtesy US Marines

Graphic courtesy of United States Marines

www.marines.com





Yankee Ingenuity

Consulting

7

TheThe CostCost of of Failure...Failure...

Desired changes are not realized

Change occurs only after greatexpense, both financial and human

Future change efforts are compromised

Destroyed shareholder value

Uncontrolled loss of knowledgeable andvaluable employees

Prolonged, reduced productivity

Lost opportunity in the marketplace

Poor customer perceptions or worse

Customer Attrition³It is a terrible thing to look over your shoulder when you aretrying to lead. . . And find no one there.´

-- Franklin D. Roosevelt

When Change Initiatives Fail,There Are Tangible Impacts to the Business:

Source: Arthur Andersen



DDetailetail



Who wants to manage changelike a

Millionaire!

Who wants to manage changelike a

Millionaire!



According to a 1991 survey (AEA)

of 300 electronics companies:

What percentage (%) of companies

with a total quality program

had failed to improve quality defects

by even as much as 10%?

A: 13 % B: 29 %

C: 46 % D: 63 %




of more than 300 electronics companies:





A: 13 % B: 29 %

C: 46 % D: 63 %





Yankee Ingenuity

Consulting

13

Successful TransformationsSuccessful Transformations

Change Management ³bridges the gap´between the technical and the humansides of change. It prepares theorganization to accept and embracechange.

Successful transformations can lead to: Higher morale

Increased productivity

³Ownership´ of new processes andsystems

Accepted roles and responsibilities Increased employee knowledge

Reduced re-training

Reduced ³post change´ support

Realized efficiencies and objectives

Source: Arthur Andersen

³The most daunting problems with technology (changes)have nothing to do with technology. . . The biggest problemis the lack of widespread readiness to adopt solutions. Thenumber one error made is failure to invest adequately inchange management.´

-- Michael Hammer

© Christof Spieler



Gary SadavageGary Sadavage ---- [email protected]@aol.comChalk it up to good old Yankee Ingenuity!Chalk it up to good old Yankee Ingenuity!

Yankee Ingenuity

Consulting

14

Recent Trends in ERecent Trends in E--Commerce (CRM)Commerce (CRM)

Integration of front and back office ± market --> place orders --> order fulfillment -->

manufacturing --> logistics of delivery

Phenomenal growth of CRM market ± $1.9B (1998) to $11B (2003) source: International Data Corp

Mergers/Acquisitions ± Baun -- Aurum

± PeopleSoft -- Vantive

± J.D. Edwards -- Siebel

Need for speed speed but also to get it right




Yankee Ingenuity

Consulting

16

Critical Business PracticesCritical Business Practices (some examples)(some examples)

Vision/Strategy Innovation Management

y Rate your organization¶s capability to anticipate significant marketplace

developments (before they impact business) & develop a strategy to

capture these opportunities.

Partner Relationship Management

y Rate your organization¶s capability to engage in joint planning for the

people policies, programs, and systems required by partnership

arrangements.

Process Innovation Management

y Rate your organization¶s capability to quickly and efficiently execute

coordinated changes to your core processes (e.g., marketing, financial,

manufacturing, etc).

Knowledge Capture

y Rate your organization¶s capability to tap your workforce¶s ideas and

knowledge (from anywhere in your organization) and then act on this input.




Yankee Ingenuity

Consulting

17

Change Proficiency Maturity FrameworkChange Proficiency Maturity Framework

Source: RKDove, Paradigm Shift International

Metric

FocusStages

Working

Knowledge

Capabilities

Reactive Proactive

0 Accidental Examples Pass/Fail Lucky Lucky

1 Repeatable Concepts Time Safe Occasional

2 Defined Metrics Cost Confident Competitive

3 Managed Responsibilities Robust Sure Aggressive

4 Mastered Vision Scope Automatic Formidable

Consider: Ability to partner with strategic ally to offer diverse products and servicesExample: Bann &Aurum vs PeopleSoft & Vantive




Yankee Ingenuity

Consulting

18

Critical Business PracticesCritical Business Practices

Vision/Strategy Innovation Management

y Rate your organization¶s capability to anticipate significant marketplace

developments (before they impact business) & develop a strategy to

capture these opportunities.

Partner Relationship Management

y Rate your organization¶s capability to engage in joint planning for the

people policies, programs, and systems required by partnership

arrangements.

Process Innovation Management

y Rate your organization¶s capability to quickly and efficiently execute

coordinated changes to your core processes (e.g., marketing, financial,

manufacturing, etc).

Knowledge Capture

y Rate your organization¶s capability to tap your workforce¶s ideas and

knowledge (from anywhere in your organization) and then act on this input.

90 SecondExercise




Yankee Ingenuity

Consulting

19

Change Management Critical PracticesChange Management Critical Practices

These practices should be considered

imperatives for successfully realizing

change objectives. And they should be

planned out and executed as integrated

and focused tactics in coordination with a

larger plan.

Focusing on these practices can help

accelerate the change process.

Determine organizational readiness &

build the business case for change.

Develop a compelling vision for

change & create a sense of urgency

Create a strong guiding coalition of

executives & generate stakeholder

commitment

Establish pervasive communications

Align organizational design and

performance management systems

Build individual and team capacity to

change

Generate short terms wins,consolidate gains & produce more

change

Align culture and change process



Determine organizational readiness and business case for change.

Establish

pervasivecommunications.

Develop a compelling vision for change

& create a sense of urgency.

Align organizational design and performance management systems.

Align culture and change process.

Generate short terms wins, consolidate gains & produce more change.

Create a strong guiding coalition of

executives & generate stakeholder commitment.

Evaluate business environment.

Build individual and team capacity to change.

Change Process Model, © Gary Sadavage 2000

[email protected]




Yankee Ingenuity

Consulting

23

Determine organizational readinessDetermine organizational readiness

& build business case for change.& build business case for change.

The Four Questions

What¶s changing or what needs to change in your organization? What factors external to your organization are causing you to make

these changes (e.g., lost market share, reduced product life, increasedcompetition)?

What difficulties have you encountered in making changes?

What are your organization¶s strengths and weaknesses (highly flexible,dedicated employees/legacy accounting system)?

90 SecondExercise




Yankee Ingenuity

Consulting

24

Develop a compelling vision for changeDevelop a compelling vision for change

& create a sense of urgency.& create a sense of urgency.

Deter m

neorgan

¡ ational readiness and business ¢ ase £

or ¢ hange.

¤

stablish per vasive

¢ ommunications.

Developa com pelling vision£

or change & create a sense o

£

urgency.

¥

lign organizational design and perf or mance management systems.

¥

lign culture and change pr ocess.

¦

enerate short ter ms § ins,consolidate gains & pr oduce more change.

Create astr ong guiding coalition of execu tives &generatestak eholder commitment.

¤

valuate business envir onment.

Build indiv idual and team ca pacity tochange.

Change Pr ocess ̈

odel, ©¦

ar y [email protected]




Yankee Ingenuity

Consulting

25

Sony¶s Articulated 1950¶s VisionSony¶s Articulated 1950¶s Vision

Core Ideology

± Being a pioneer, not following others, but doing the impossible.

± Experiencing the sheer joy of innovation and the application of technology for the benefit and pleasure of the general public.

Envisioned Future

± Become the company most known for changing the worldwideimage of Japanese products as being of poor quality. Made in

Japan will mean something fine and not shoddy.

± Create products that become pervasive around the world.

± Be the first Japanese company to go into an American market and

distribute directly. ± Fifty years from now, our brand name will be as well known as any

on Earth.




Yankee Ingenuity

Consulting

26

Sources of ComplacencySources of Complacency

Complacency

The absenceof a major andvisible crisis

Too many visibleresources

Low overallperformancestandards

Organizationalstructures that focus

employees on narrowfunctional goals

A lack of sufficientperformance feedbackfrom external sources

Internal measurementsystems that focus on thewrong performance indexes

A kill-the-messenger-of-

bad-news, low-candor,low-confrontation culture

Human nature, with itscapacity for denial,especially if people arealready busy or stressed

Too much happy talkfrom senior management

S ource: Leading Change © 1996 James P. Kotter




Yankee Ingenuity

Consulting

28



90 SecondExercise

To what extent have you been trained to understand your organizations financial

statement?

To what extent are you provided with information about problems (e.g., profits up but

market share down?

To what extent are you provided with information about potential problems (e.g., a new

competitor is showing signs of becoming more aggressive)?

To what extent are you provided with information about potential opportunities (e.g.,

through technology or new markets)?




Yankee Ingenuity

Consulting

29



0 20 40 60 80 100

³Needs Wor k´ r nge ³ oes the Job´ r nge ³A bsolutely Top- Not h´

r nge

RATING SCALE

Absolutely Top-Notch...........Score 90-100Does the Job.........................Score 50- 90

Needs Work..........................Score 0- 50




Yankee Ingenuity

Consulting

30

Research based not-for-profit transitioning to for-profit consulting organization.

Flat organizational structure.

Cross-functional teamed environment. Less than 100 employees.

Many diverse strategic partner collaborations.

Less than 10 years in operation.

Case Study: Organizational ProfileCase Study: Organizational Profile




Yankee Ingenuity

Consulting

31

Organizational Concern

Site champion motivated to distribute survey based upon concern for morale. Not sure what underlying issues are.

Desired State

Noted that the organization is u ndergoing a transition from a publiclyfunded research organization to a commercially funded consultinggroup. Would like to focus direction [for people] and rally resourceswith minimal loss of productivity due to possible poor morale.

What issues are important to you as youWhat issues are important to you as you continuecontinue to buildto build

your organization?your organization?




Yankee Ingenuity

Consulting

32

Shared VisionShared Vision

The vision, mission, and goals of your organization:

0 20 40 60 80 100

a. ...are well defined for individuals.

0 20 40 60 80 100

b. ... are accepted by individuals and used to guide their daily priorities.

Organizational understanding of the vision was not unified.

Respondent Commentary:

Recent changes in strategy, make it difficult to know if

organizational goals are being addressed and achieved.

Internalization of the vision was below average.

CEO

CEO




Yankee Ingenuity

Consulting

33

Create a strong guiding coalition of executivesCreate a strong guiding coalition of executives

& generate stakeholder commitment.& generate stakeholder commitment.

D et e r m i n e o r g an i za t i o n a l r ead i n ess an d b u s i n ess case f o r ch an g e .

Establ ish

pervasive

co m m u n ica t i o n s .

D e v e l o p a co m p e l l i n g v i s i on f o r ch an g e

& c r ea t e a sen se o f u r g en cy .

A l i g n o r g an i za t i on a l d es i g n an d p e r f or m an ce m an ag em en t sy s t em s .

A l i g n cu l t u re a n d ch an g e p r o cess .

G en e r a t e sh o r t t e r m s w i n s , co n so l i d a t e g a i n s & p r o d u ce m o r e ch an g e .

Cr ea t e a s t r o n g g u i d i n g co a l i t io n o f

ex ecu t i v es & g en e r a t e s t ak eh o l d e r co m m i t m en t.

Ev a l u a t e b u s i n ess en v i ro n m en t .

Bu i l d i n d i v i du a l an d team cap ac i t y t o ch an g e .

Ch a n g e P r o cess Mo d e l , © G ar y S ad av ag e 2 0 0 0

g sad av ag e@ao l . co m




Yankee Ingenuity

Consulting

34



Most resistance to change is a precondition for change.

³A critical mass of commitment will never be generated

without conflict escalation ± the airing of differences, divided opinions,

good ideas, criticisms and the like.´ Paul Taffinder

Benefits of conflict (Vliert, 1997)

Generate motivation and energy to deal with underlying problems.

Make underlying issues explicit.

Sharpen people¶s understanding of real goals and interests.

Enhance mutual understanding between different groups.

Stimulate a sense of urgency.

Discouragement people to engage in avoidance behavior.

Prevent premature (and therefore dangerous) resolution of problems.




Yankee Ingenuity

Consulting

35



To what extent are your department¶s monthly results evaluated in light of the new vision?

To what extent are the workforce¶s ideas and knowledge being tapped to question and test

the validity of the proposed methods of operation?

To what extent do you feel you have a real stake in improving your organization¶s

performance as opposed to just your narrow job responsibilities? To what extent do business unit leaders act on criticisms and suggestions for

improvement?

To what extent have you been involved in redesigning your new job?

To what extent is your input valued for improving your job responsibilities during thetransition?




Yankee Ingenuity

Consulting

36



90 SecondExercise

To what extent was provided training adequate preparation for the new realities of how you

must now do your job?

To what extent were you adequately trained on change management concepts and

techniques?

To what extent was information about the transition easily understood by every member of

the workforce?

To what extent does your manager act as if they believed the organization needed major

change?

To what extent does your manager constantly demand new ideas and perspectives?

To what extent does your manager sustain pressure so that people achieve more than

expected?




Yankee Ingenuity

Consulting

37

Establish pervasive communications.Establish pervasive communications.


Establ ish

pervasive
















Yankee Ingenuity

Consulting

38


Using every vehicle possible to constantly communicate the new

vision and strategies

When communicating major change to employees, keep it simple

and avoid mission statements and management proclamations ±

most important, give them the facts; be straight.

Introduce the planned change face to face, not through videos,publications or vast, impersonal public meetings.

Target supervisors: get senior managers who are involved in the

change to brief small groups of supervisors face to face.

± As a consultant, spend 80% of your time concentrating efforts

on supervisors

± Do briefings in two rounds ± first, to explain the change and

get supervisors¶ reactions and recommendations, second, to

explain any modifications of the planned change based on the

supervisors¶ feedback.




Yankee Ingenuity

Consulting

39


90 SecondExercise

To what extent do you feel the organization communicates honestly and openly about the

changes going on?

To what extent does information about the status of the business flows freely throughout

the organization with minimal filtering?

To what extent does information (business, industry, production, etc.) flow to the right

people, at the right time, in the most appropriate/effective medium throughout theorganization, without barriers?

To what extent do you have access to the information you needed (daily? in the long run?)

To what extent does useful knowledge and good ideas travel across the organization?

To what extent do business units learn from one another (i.e., reinventing the wheelalmost never happened)?




Yankee Ingenuity

Consulting

40

Seamless CommunicationsSeamless Communications

0 20 40 60 80 100

a. Information about the status of the business flows freely throughout organization with minimal filtering.

0 20 40 60 80 100

b. Your organization¶s leaders continuously display decisiveness, consistency, and approachability

during times of transition.

Lowest rated proficiency throughout the organization.

Respondent Commentary:³T he grapevine far supplants official channels for disseminating information´.

³ Information is perceived as sanitized and dumbed-down to avoid conflict and minimize

dissension in the ranks´

Organizational leaders were decisive and approachable but not consistent. This lack of

consistency was cited as the source of leadership ineffectiveness during times of transition.

CEO

CEO




Yankee Ingenuity

Consulting

41

Align organizational designAlign organizational design

& performance management systems.& performance management systems.


Establ ish

pervasive













42




Yankee Ingenuity

Consulting

42



To what extent is the design of your job based on the tasks that need to be performed

rather than on position descriptions, reporting relationships, and title changes?

To what extent does your organization encourage individuals, regardless of job description,

to search for innovation?

To what extent where you briefed on how your job impacts the goals and targets of other

department?

To what extent are there lots of planned opportunities for talk with other departments and

joint activities?

To what extent do you feel you receive a sufficient amount of feedback from internal and

external sources to help you improve what you do?

43




Yankee Ingenuity

Consulting

43



90 Second

Exercise

To what extent is your performance evaluation tied to the change initiative?

To what extent does your current performance appraisal system support/promote the new

way for doing work?

To what extent does your current compensation system support/promote the new way for

doing work?

To what extent does your current promotion system support/promote the new way for doing

work?

To what extent do you understand what you must do to satisfy the customer¶s needs?

To what extent can you link your day-to-day work to satisfaction of the client¶s needs?

44




Yankee Ingenuity

Consulting

44

Knows the Customer Knows the Customer

0 20 40 60 80 100

a. You can link your individual contributions to satisfaction of client¶s needs.

0 20 40 60 80 100

b. Your organization seeks to partner with its clients on product and service

conception, design, production, and evaluation.

Highest rated proficiency, valued throughout the organization.

On-going relationships with internal and external clients were directly linked their

feedback on ³client delight´.

The organization¶s partnerships were cited as examples where the clients worked as a

concurrent part of the project team.

Respondent commentary:

W e have a long term track record of being called last minute

and fulfilling these Herculean requests without fail.

CEO

CEO

45




Yankee Ingenuity

Consulting

45

Build individual and team capacity to change.Build individual and team capacity to change.


Establ ish

pervasive













46




Yankee Ingenuity

Consulting

46


Getting rid of obstacles ± Skills (Technical, Management, Leadership)

Changing systems or structures that undermine thechange vision

Encouraging risk taking and nontraditional ideas,activities, and actions

47




Yankee Ingenuity

Consulting

47


To what extent do you understand how your department¶s performance is measured?

To what extent is it the ³norm´ for you to look for problems and opportunities that might

impact the success of the transition?

To what extent is there sufficient motivation and rewards (policies, procedures, and

methods) for encouraging people to contribute in ways that exceed their job/workdescriptions?

To what extent is the requirement for ongoing improvement built into each job and team

assignment?

To what extent does your organization provide µidea¶ resources for innovation and

improvement (industry journal, internet , competitors analysis)?

48




Yankee Ingenuity

Consulting

48


90 SecondExercise

To what extent is decision making driven down to the lowest level possible?

To what extent is HR a key element in the success of the transformation?

To what extent were there specific individuals named as change agents for your business

unit?

To what extent does the organization focus on the deliberate selection (hire or promotion)

and development of people who can embrace and thrive in fast changing environments?

49




Yankee Ingenuity

Consulting

49

Generate short terms wins,Generate short terms wins,

consolidate gains & produce more change.consolidate gains & produce more change.


Establ ish

pervasive















51




Yankee Ingenuity

Consulting

51



To what extent are you kept abreast of day to day progress during the transition?

To what extent are you able to use the vision to guide the decisions you make on a daily

basis?

To what extent are the workforce¶s ideas and knowledge used to question and test the

validity of how your department¶s performance would be measured?

To what extent are mechanisms in place to assure that new learning was rapidly captured

and disseminated throughout the organization?

To what extent do you share innovative ideas with other departments?

52




Yankee Ingenuity

Consulting

52



90 SecondExercise

To what extent are the short-term goals achievable?

To what extent is progress tracked against plans/goals and necessary adjustments made

on a real-time basis?

To what extent is organizational action based on real-time knowledge of the transition?

To what extent does your department adapt to unexpected problems and identify workable

solutions?

To what extent does your organization acknowledge mistakes fast and attempt to fix them?

To what extent are training and development activities custom fit to your specific needsvs. ³out of the can´?

53




Yankee Ingenuity

Consulting

53

0 20 40 60 80 100

JustJust--InIn--Time AdaptabilityTime Adaptability

a. The organization is able to execute major and multiple actions quickly and efficiently.

0 20 40 60 80 100

b. Your organization supports the continuous development of individual adaptability skills

(e.g., collaboration, communication, and continuous learning).

Consistently recognized as a strength and source of pride within the organization.

Respondent commentary:

³W e have a good record of fire fighting.´

The organization strongly encourages and supports personal development (in-

house training, tuition reimbursement, work release time, flexible hours).

CEO

CEO

54




Yankee Ingenuity

Consulting

Align culture and change process.Align culture and change process.


Establ ish

pervasive













55




Yankee Ingenuity

Consulting

Align culture and change process.Align culture and change process.

Change sticks only when it becomes ³the way we do thingsaround here.´

Culture is powerful for three primary reasons (John Kotter)

± New employees are selected and indoctrinated through

culture.

± Culture exerts itself through the actions of hundreds or

thousands of people.

± All of this happens without much conscious intent and thus is

difficult to challenge or even discuss.

Two approaches to anchoring changes in an organization¶s

culture.

± Actively show people how specific behaviors and attitudeshave helped improve performance.

± Verify that promotion and performance criteria are fostering

the next generation of management that personifies the new

vision (this takes time).

56




Yankee Ingenuity

Consulting



To what extent is the right data tracked so that gains or improvements could be clearly

shown?

To what extent does your organization have a culture that seeks our µdifference¶ and

embraces challenge and self-critique?

To what extent will lessons learned from this implementation be able to be shared

throughout the organization?

To what extent did your organization clearly define how your performance would be

measured throughout the transition? (What were those measures?)

57




Yankee Ingenuity

Consulting



90 SecondExercise

To what extent are training and development activities keeping pace with the changes thattook place?

To what extent have new work habits replaced the old way for doing work for you?

To what extent are old work habits confronted, coached, and monitored to ensure that new

work habits were the only way for doing business? To what extent is poor performance confronted, coached, and monitored to instill

appropriate behavior?

58




Yankee Ingenuity

Consulting

Evaluate business environment.Evaluate business environment.


Establ ish

pervasive













Change Process Model 6 Mar 00

Documents

Transcript of Change Process Model 6 Mar 00