By Allen Stines, PhD

Copyright © 2011 Allen Stines

Presented Mar 29, 2011:Webinar - Project Management Institute (PMI) LEAD Community of Practice (CoP)

Purpose of this presentationEngage Project Managers (PM) who are interested in enhancing their skill set around managing organizational and operational change

Start a conversation and engage PMs who are interested in sharing best practices: what works and what doesn’t work

Promote Change Management/Change Enablement (systemic approach) as a key component of projects having direct/indirect impacts on people in an organization 

Share tools and approaches that enhance the skill set and change management competencies of project managers 

Push the envelope and engage you in discussions around various topics related to Change Management (CM) and Project Management (PM)

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AgendaDefining “change management”

My operating principles & experiences

Enabling & sustaining change: an emergent model

Stakeholder engagement

Change management workstreams

Your thoughts, comments, & questions

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Why is managing change important?

2008 McKinsey worldwide survey of 3,199 executives reported that only about 1 in 3 such initiatives were successful

IBM’s 2008 “Making Change Work” surveyed 1,500 practitioners worldwide about 60 percent of the projects FAILED to fully meet their objectives.

2009 article in McKinsey Quarterly noted that surveys conducted during the previous 10 years yielded the same results that only about 30 percent of change-related initiatives were successful

Business transformations fail to fully meet their objectives not only because of a lack of change management activities but also because of poor change management frameworks

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What is Change Management?Art and science of attempting to forecast the unknown, and addressing complex issues that arise in complex organizational systems

Attempt to devise a journey though unchartered territory

Series of activities aimed at improving the odds of successfully implementing an initiative that seeks to change the way an organization operates

Change management is about enabling people and promoting stakeholder responsibility

Change management and Project Management goals are at the same time complementary and antagonistic/contradictory

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Change Management is not…‐My operating principles ‐

Communications management is not change ManagementCommunication should be viewed as a tool, not an endIn most cases, propaganda does not work as an effective tool to promote change

Training delivery is not change ManagementTraining is also a tool, not an endTraining should be viewed as a component of a broader learning/knowledge management/diffusion strategy

Change management is not about “eradicating” resistanceResistance does not automatically result in obstructionism or sabotageResistance and skepticism can be healthy, provided that they are handled properly

Change does not always need to be driven from the top

It is close to impossible to develop a systematic, detailed, step by step change management package that can be applied “out of the box” without a considerable level of customization

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Change Management‐My operating principles ‐

One size never fits all: each person, team, department, business unit, regional area, .. might cope with change in their own, distinct way

CM provides an opportunity to “ground” expectations

Culture change is HARDChange in process, technology, or policy will not automatically result in a change in cultureif a change in culture is needed, it should be an initiative of its own, managed by Org Development experts

The people best equipped to drive change are not necessarily the people who are very familiar with the status quo

The overarching goal is for the change to be IMPLEMENTED WITH the impacted stakeholders, as opposed to having it be IMPOSED ON them

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Enabling & Sustaining ChangeAll about the stakeholdersChange Mgmt is an oxymoronSystemic approach4 major workstreamsManage the change process, not attempt to control itScope creep is the normA good sensing network is key!Stakeholder advocacy is key!Willingness to question assumptionsOpportunities to improve the effectiveness of the deploymentNetwork of change leadersEquipping people for changeEnhancing buy-in/ownershipMaking sure the change sticks

Plan

Coordinate

Manage

Sense 

Assess 

Mitigate 

Align

Enable 

Drive  Anchor 

Transition 

Sustain

Management

Sensing & Monitoring

Enablement

Sustainment

Copyright © 2011 Allen Stines

Stakeholder Management is fundamental

Stakeholder advocacy

Stakeholders are all around:Internal (e.g., corporate, business unit, functional areas, …)External (e.g., customers, suppliers, regulators, …)Project teams

Stakeholder stratification can be difficult. One size never fits allshouldn’t simply lump a functional area or operational area togetherfinding the right level of granularity can be tricky (e.g., some groups could be as large as 1,000 and others as small as 2)as a rule of thumb, the more granular and customized, the better (conversely, the more granular, the higher the overall level of effort)

The interaction must be 2-way to really be effective

Managing change impacts 2 degrees remoteUnderstanding the impacts not just on stakeholders but on stakeholders’ stakeholders

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Stakeholder engagementACCEPTA

NCE

High

Low

Initiation Transition

ACCO

UN

TABIL

ITY

Stakeholdergroups

Project team

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Internalization

Commitment

FullEngagement

Awareness

The change strategy should focus on moving stakeholders up the curve until they reach their respective expected level of engagement

Levels of stakeholder engagement

Awareness: Individuals are knowledgeable of the goals of the initiative & its perceived/anticipated impacts

Internalization: Individuals understand the (+/-) impacts to their job and to their functional area. They have begun to recognize the personal gaps that must be filled in order to operate in the new environment

Commitment: Individuals are actively gaining the skills and knowledge they will need to operate in the new environment

Full Engagement: Individuals are actively working to further improve the desired future state so that it better fits the needs of their functional areas or teams

Plan Coordinate Manage Adapt

Goal

• Operationalization of the change management/enablement strategy

• Planning, scheduling, estimating• Adaptable strategy and dynamic

plan• Scope management/ dynamic

prioritization• Comprehensive systemic roadmap

(2 degrees of freedom)

Potential deliverables

• Change plan w/ rolling wave planning window

• Roles/responsibilities• Programmatic success factors• Transformation roadmap

Examples:• Transformation leads leaving (change in priorities)• Transformation roadmapping• Vendor selection gone awry

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Sense Assess Mitigate Monitor

Goal

• Design and management of a good “sensing network”(e.g., change agents, change leaders)

• Proactive identification and management of organizational & operational risks to the business

• Issue mitigation• Effective stakeholder engagement• Grounding of assumptions

Potential deliverables

• Identification of barriers• Change impact analysis• Org critical success factors• Stakeholder stratification (assessment)

• Cultural assessment*• Learning effectiveness• Communication effectiveness• Establishment of change agent

network• Proactive problem solving• Change readiness strategy & plan

Examples:• Managing change from the middle• Enterprise rollout• Dynamic operating model

* Purpose is not to attempt to change the culture but to understand cultural constraints

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Align Enable Drive Innovate

Goal

• Stakeholder alignment• Leadership alignment• Organizational realignment• Systemic alignment (strategies, people,

processes, technologies, policies, …)

• Expectation management• Shared ownership/buy-in• Equipping people to tackle the

change• Knowledge diffusion• Diffusion of innovations

Potential deliverables

• Expectation setting• Communication plan• Talent development/Learning and

development strategy• Adaptation of deployment

strategy• Organizational/business readiness

plan• Org design activities

Examples:• Systemic cascade in business unit• Alignment expectations across leadership• Risk-based enterprise-wide deployment

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Goal

• Start with co-ownership that leads to a full transfer of ownership

• Change sustainment• Acculturation of the change

Potential deliverables

• Transition strategy & plan (not exit strategy)

• Readiness plan• Benefits realization framework• Sustainability planning• Smooth transition• Full transfer of ownership of “new

way of doing things”

Examples:• Engineer CoP• Lunch & learns by business/owners

Anchor Transition Sustain Acculturate

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Your thoughts & Questions?

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About the presenter

Allen Stines, PhDe‐mail:  allenstines@gmail.comLinkedIn:  www.linkedin.com/in/allenstines

Allen Stines is a business transformation & strategic change architect who has designed, managed and enabled business transformation initiatives in a wide range of functional areas including operations, IT, HR, finance, supply chain, market management, and various technical areas. He has worked in a variety of industry sectors such as energy, manufacturing, education, government, and health care.Over the past decade Allen has led a broad range of initiatives aimed at transforming the way an organization conducts business. He’s driven systemic change while aligning stakeholders across multiple functional areas, designing and implementing strategies that enable the transformation of businesses by mitigating organizational risks and strengthening the overall alignment of people and business processes to support and execute strategy.He also conducts research and is collaborating on a series of articles defining a risk‐based change management framework. Allen has completed undergraduate degree programs in Business Operations (BS), Applied Math & Statistics (BS), and graduate degree programs in Systems Management (MS), Educational Computing (AGC), and Workforce & Organization Development (PhD). 

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