Helping organisations manage change

Change Management Skills Change Management Skills WorkshopWorkshop

Change Management Skills Workshop 2July 13, 2006 Helping organisations manage change

AgendaAgenda

Overview

Stakeholder Analysis

Strategies

Integrated Planning

Questions?

Change Management Skills Workshop 3July 13, 2006 Helping organisations manage change

OverviewOverview

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What is Change Management?What is Change Management?

From Wikipedia.orgOrganizational 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.

Change Management Skills Workshop 5July 13, 2006 Helping organisations manage change

Transition ModelTransition Model

Transition — The Personal Path Through Change :

n 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.

n 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.

n 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.

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FUDFUD

F EARF EARU NCERTAINTYU NCERTAINTYD OUBTD OUBT

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FUD FUD –– The ConsequencesThe Consequences

The most talented and marketable resources will opt for more certain employment (with someone else)Turnover will be higherIt will be difficult to attract new talent to the organizationPersonal productivity will be impactedBusiness as usual and transition work will get mixed up –loss of focus on bothLines of authority and job responsibilities will become blurredCommunications will become reactive – countering misinformationThe outside world will know about the FUD

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FUD FUD –– The StrategyThe Strategy

Acknowledge that not everything is known or decidedIf you don’t have the answer to the question, know how and when you willKnow how everyone will be involved in the process of creating certaintyHave a solid plan and demonstrate that you are following it to build confidenceCounter balance FUD with visible competent leadership

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The Planning ProcessThe Planning Process

1. Stakeholder Analysis2. Develop Strategies

n Staffing Strategyn Communications Strategyn Change Management Strategy

3. Develop Integrated Project Plan4. Execute

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Stakeholder AnalysisStakeholder Analysis

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Stakeholder Analysis ProcessStakeholder Analysis Process

1. Identify StakeholdersIdentify Stakeholders2.2. Analyze Needs and WantsAnalyze Needs and Wants3.3. Identify Barriers to ChangeIdentify Barriers to Change4.4. Best Means for CommunicationBest Means for Communication5.5. Ideas for Participation and Leveraging Ideas for Participation and Leveraging

their Skills and Knowledgetheir Skills and Knowledge

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Use a Simple TableUse a Simple Table

Ideas for Participation

Best Means

Barriers to Change

Needs and Wants

Stakeholder

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Merger ScenarioMerger Scenario

You are the owner of a privately owned business in Halifax with a significant market share in the UK. You have worked out a deal with a French based company with products in the same sector (but not a competitor) to merge into a European wide public company. There are about 200 employees in each company. Your operations overlap in the UK and French markets, each with sales and distribution offices in Paris, London, and Frankfurt. Your primary assumptions for this merger are to increase market share for each product line while at the same time improving costs by consolidation of some assets and reduction in overheads. You expect some reduction in total staff at first but you anticipate that the new company will grow at a rate of at least 10% per year after the merger is complete.

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Who are the Stakeholders?Who are the Stakeholders?

nExecutive ManagementnManagementnEmployeesnCustomersnShareholdersnDistributorsnRetailers

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Exercise One Exercise One –– Stakeholder AnalysisStakeholder Analysis

For your assigned Stakeholder group complete the analysis:

1.1. Analyze Needs and WantsAnalyze Needs and Wants2.2. Identify Barriers to ChangeIdentify Barriers to Change3.3. Best Means for CommunicationBest Means for Communication4.4. Ideas for Participation and Leveraging their Ideas for Participation and Leveraging their

Skills and KnowledgeSkills and Knowledge

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StrategiesStrategies

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Staffing StrategyStaffing 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?

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Communications StrategyCommunications 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?

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Change Management StrategyChange 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?

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Exercise Two Exercise Two –– Developing StrategiesDeveloping Strategies

Group 1: Staffing Strategy – Come up with a Strategy for how jobs will be filled in the resulting organizationn Come up with alternativesn Pick the one that makes the most sense for the scenario

Group 2: Communications Strategy – Develop 2 Key Messagesn Come up with what you think will be the most frequently asked

questionsn 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 organizationn Come up with alternativesn Pick the one that makes the most sense

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Integrated PlanningIntegrated Planning

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Integrated PlanningIntegrated Planning

Why integrated planning?n Systems facilitate communicationsn Communications facilitate participationn Participation enhances trainingn Business processes, systems and job descriptions are

intertwinedn External stakeholders will notice as soon as the left and

right hands are not acting together

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Achieving Integrated PlanningAchieving Integrated Planning

n Have a cross company Executive Steering committeen Have a dedicated Project Team to lead the transitionn Provide project management support to management

through the dedicated project teamn Have HR and Communications as key members of the

Executive Steering Committee and the Project Teamn Identify milestones and key indicators and report on them

regularly

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Questions?Questions?

Helping organisations manage change

Thank YouThank You