Change Management a Critical Success Factor
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1 Change Management a Critical Success Factor BJ Bard, PMP, B Math, Strategic Change Management (Rotman) Director, Consulting Services Justice & Public Safety, Sierra Systems
2 The Journey Today. A Real Case in Change What is the Demand and Trends in Change Management The Integration Elements of Change Management Why Use Change Management When to Use Change Management Typical Roles, Skills and Competencies Page 2
3 A Real Case in Change
4 A Real Case What Users Said When asked what was wrong with previous IT initiatives Rationale for change not clearly understood Staff looked to chain of command and they were not equipped Communication on the change contributed to confusion versus clarity Changes not well thought through resulting in multiple revisions Policies not changed in tandem with the system Lack of effective support implementing the change Insufficient consideration to operations (business) and workload The result was a lack of trust and a poor relationship between the business and IT
5 Where that Organization is Now Collaborative relationship on all initiatives with an IT spend Business understanding, driving and taking accountability for choices A clear and well understood governance model Greater value for IT dollars both real and perceived A proactive support mechanism for IT changes Repeatable protocols An enthusiastic appetite for the next change The business and IT working collaboratively from start to finish to drive greater value and improved operational efficiency
6 Market Trends
7 Considering the fact that most companies appear to be in a perpetual state of change, it is easy to see how the need for change management consulting is likely to continue for as long as there are businesses (Independent Consulting Bootcamp website) The change consultant must dissect a company s operations and drive interventions that will result in achieved objectives (Independent Consulting Bootcamp website) Page 7
8 Employees are saying that, more than ever, they are reaching their limit in their ability to handle all the organizational change pushed at them (Thinking About Change, Trends in Change Management) Organizations continue to underestimate the time and resources required to help employees make sense of all this change, which is a major factor in a project achieving its objectives (Thinking About Change, Trends in Change Management) Page 8
9 Trends in Change Management Greater awareness of the need for and value of change management Increased use of methodologies, tools, and language More engagement and earlier integration with project management More resources and positions devoted to change management Greater demand for change management training and certification Increased leadership support for change management Underestimation and allocation of change management resources Source: Prosci 2012 Benchmarking Study
10 What are companies investing? Source: Prosci 2012 Benchmarking Study
11 What are companies investing? Companies are realizing the importance of Change Management to the success of their projects at least 10-20% FTE s are being allocated on average to change management. Source: Prosci 2012 Benchmarking Study
12 Perception of Change Management Source: Prosci 2012 Benchmarking Study
13 Perception of Change Management 54% of Project teams see Change Management as at least necessary and important, with 13% seeing it as a critical component of the project. Source: Prosci 2012 Benchmarking Study
14 Why did you use a Change Consultant? Lack of internal competency or resources Knowledge, expertise and experience provided by consultants Support for the change management team or project team Proven results Part of project proposal or contract Training to increase internal change management competency Source: Prosci 2012 Benchmarking Study
15 DID YOU KNOW!! } Change Management is a recognized discipline } Change Management is HOT! } Change Management skills are valued } Change Management skills are scarce } THE DEMAND FOR CHANGE MANAGEMENT IS GROWING Page 15
16 The Value of Change Management Minimizes risk of financial loss Business ready when technology is ready Reduces user resistance Reduces support costs Builds change competence into organization Fosters desired culture
17 The Change Management Discipline
18 Change Management Organization Change Management Organization Development Transition Management Business Transformation Management Page 18 Business Readiness
19 The Change Management Discipline Project Life Cycle Plan Design Build Test Deploy Sustain
20 The Change Management Discipline Project Life Cycle Plan Design Build Test Deploy Sustain Commitment Continuum Contact Awareness Understanding Acceptance Adoption Internalization
21 The Change Management Discipline Project Life Cycle Plan Design Build Test Deploy Sustain Change Management Life Cycle Prepare Design Implement Sustain Build the case for change Vision for success Learning and Development Assessment & Measurement Change Implementation Support Stakeholder assessment Change planning Communication Stakeholder Management Transition Management Change Sustainability Commitment Continuum Contact Awareness Understanding Acceptance Adoption Internalization
22 Stakeholder Perceptions Managing the ride High expectations Better than before Realization of effort and complexity Light at the end of the tunnel Change Implementation Despair Unmanaged change Managed change
23 Transitioning between States Current state Transition Future state Not meeting organizational needs Aligned with organizational strategy Processes Culture Structure Competencies Technology Processes Culture Structure Competencies Technology Page 23
24 The Challenges. And the Rewards Challenging Rewarding Managing Change is tough Highly sensitive Takes time Not all people will be converted Change management is the first thing to be dropped on a project when the budget is tight Managing Change is rewarding Challenging Work with all levels of the organization Get to influence Skills applicable in your personal life Page 24
25 The role of the Change Expert
26 Change Advisor or Coach Change Lead Change Specialist Communications Lead Learning and Development Specialist Page 26 Business Readiness Lead
27 Change Discipline vs Project Discipline Element The Change Project Management Change Management Goal or Objective To improve the organization in some fashion - for instance reducing costs, improving revenues, solving problems, seizing opportunities, aligning work and strategy, streamlining information flow within the organization Develop a set of specific plans and actions to achieve the change given time, cost and scope constraints and to utilize resources effectively (managing the technical side of the change) To apply a systematic approach to helping the individuals impacted by the change to be successful by building support, addressing resistance and developing the required knowledge and ability to implement the change (managing the people side of the change)
28 Structure and Tools Required Discipline Process Tools Project Management Initiate Plan Execute Monitor and Control Close Statement of work, Project charter, Business case Work breakdown structure, Budget estimations, Resource allocation, Schedule Tracking, Risk identification and mitigation, Reports on performance and compliance Change Management Prepare Design Implement Sustain Executive Alignment, Vision and Strategy Engagement & Accountability Readiness Assessments Tactical Change Plans Governance Models Coaching and Measurement Training Support and Sustainment Plans
29 Do you know your stakeholders? External Stakeholders Change agents Change sponsors Communications Learning & Development Human Resources Change targets Change advocates Project team Internal Stakeholders (Users) Page 29
30 The Why s and When s of CM for IT Why Use Change Management? To increase probability and magnitude of success To drive greater business value from IT dollars To make IT a valued business partner When to Use Change Management? On every project and initiative When to Use a Change Expert? On projects that have a significant impact on users To help establish protocols for service agreements To enable IT culture changes Page 30
31 Core Competencies and Skills for Change
32 Skills & Competencies Business Analyst Project Manager Change Lead Requirements/Process Focused Communication Consulting Skills Problem Solving Collaboration Analytical Attention to Detail Facilitation Business Knowledge Creativity BA Methods/Tools Page 32 Scope/Budget/Time Focused Communication Consulting Skills Problem Solving Collaboration Decisive Delegation skills Coordination Numerate Organization skills Leadership Management Negotiation PM Methods/Tools Coaching Conflict Resolution Adaptable /Flexible People Focused Communication Consulting Skills Problem Solving Collaboration Analytical Emotional Intelligence Facilitation Business knowledge Leadership Management Influencing Strategic thinking Coaching Conflict Resolution Adaptable /Flexible CM Methods/Tools
33 Level of Skills for a Change Role Junior Intermediate Senior Supports Leads Leads/ Directs /Advises Understands the components of change management. Has 1-2 years experience in one or more areas of change on a project. Understands and follows a change management methodology and uses the tools required by these activities, tasks and techniques. Has 3-4 years experience in a change management role and 1 year lead experience of a particular area of change management or leads change management on a small project. Understands and follows a best practices change management methodology. Has 5+ years experience in a change management role. Has at least 2+ years experience leading one/more complex change projects. Experienced project manager. Page 33
34 CM Certification/Education Programs Prosci 3 days, $2,100 Learning Tree (APMG Change Management Practitioner) 5 days, $3,635 AIM Methodology 2 days, $1,250 Being First Leading Transformation 3 days, (price unavailable) Royal Roads Change Management Certificate 1 day, $195 Other change management courses as part of degrees.
35 Books and useful links Becoming a change consultant - Change tools - Breakthrough IT Change Management: How to Get Enduring Change Results by Bennet P. Lientz and Kathryn P. Rea 2004 Thriving Through Change: A Leader s Practical Guide to Change Mastery by Elaine Biech 2007 Change is the Rule: Practical Actions for Change on Target, on Time, on Budget by Winford E. Dutch Holland 2000 Managing at the Speed of Change by Daryl R. Conner. New York: Random House, 1993 The Heart of Change: Real-Life Stones of How People Change Their Organizations by Kotter, John P., and Cohen, Dan S., 2002 Leading Change by Kotter, John P.,1996. Page 35
36 (T): (T):
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