The Change Management Holistic Approach

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1 The Change Management Holistic Approach Session ID#: Prepared by: Fatima Beach Senior Vice President AST REMINDER Check in on the COLLABORATE mobile app

2 Background

3 Introductions Change management and training experience since 1992 Oracle project and training delivery experience since R10.7 Prosci Change Management Certification Presented at other industry conferences Collaborate, OHUG, NCOAUG, NEOAUG, AERO, CLEAR OAUG Education Committee Member Multi-industry experience MSHR Training & Development

4 Introductions Background Project experience Reasons for attending this session

5 INTRODUCTION: COMPANY INFORMATION

6 Agenda

7 Agenda Change Management Community Needs Holistic Approach Overall Process & Affect Questions

8 What Are Some of the Challenges You ve Faced? Failed adoption Still follow old methods Competition evolves and your company resists

9 Change Management

10 We're not adapted to any one environment, but to many; we are creatures of change

11 What is Change Management Change management is the application of a structured process and tools to enable individuals or groups to transition from a current state to a future state, such that a desired outcome is achieved. Prosci

12 Evolution of Change Management Linda Ackerman John Kotter

13 John Kotter 8 Step Change Model 8 INSTITUTE Change 1 CREATE Sense of Urgency 2 BUILD Guiding Coalition 7 SUSTAIN Acceleration 3 FORM Strategic Vision & Initiatives 6 GENERATE Short Term Wins 5 ENABLE Action by Removing Barriers 4 ENLIST Volunteer Army 8 step process for leading change/

14 Why is it important? Dramatic improvements in business operations Implementation of a corporate innovation culture is nearly impossible Implementation of complex systems will fail or will fall short of expected ROI

15 Why is there resistance? Change Objections We always did it that way I like doing work my way I m not sure a new method would work any better Yet another management initiative that will fail Why are we making this change? I don t see the rationale. Business Change Drivers The work method is no longer effective The way we accomplished tasks is not the most efficient This new method has been proven at many other companies This change is necessary, is here to stay and will be supported by the entire management team The delivered business benefit of this change will be quantifiable as follows..

16 Change Adopter Distribution 40% 35% 30% 25% 20% 15% 10% 5% 0% Innovators Early adopters Early adopters majority Late adopters majority Change resisters

17 #1 Reason for Project Failure User community buy-in not successful.

18 Eliminate Change Objections Develop Advocates!!!! We always did it that way I can see why a new work method is needed I like doing work my way I m not sure a new method would work any better I now understand why a new process will be so much easier than my old one Wow! If we can achieve those results, we better start changing very soon.

19 The Players and Their Needs

20 Change Leader Driving change forward Decides the reason for change Leading change Role model for changing

21 Stakeholders Influenced by a range of relationships Key facet of organization s management Central to change management and ability to realize the benefits the change Some examples of stakeholders?

22 Maslow s Hierarchy of Needs To accomplish everything one can, to become the most one can be.

23 Underlying Need WIIFM What s in it for me?

24 Holistic Approach

25 Holistic Definition Holism (from Greek holos all, whole, entire ) is the idea that natural systems (physical, biological, chemical, social, economic, mental, linguistic, etc.) and their properties should be viewed as wholes, not as collections of parts. This often includes the view that systems function as wholes and that their functioning cannot be fully understood solely in terms of their component parts. Oshry, Barry (2008), Seeing Systems: Unlocking the Mysteries of Organizational Life

26 Basic Principles of a Holistic Thinking Made up of interdependent parts They cannot be separated All needs to work at its best Constantly interacting with everything in the surrounding environment

27 Holistic Wellness as a Continuum Premature Death Maximum Well Being

28 Holistic Approach + Change Management Putting it together Purpose Process/Plan People Tools Outcome

29 Productivity Curve TO BE Desired State Productivity AS IS Present State Change Strategy & Plan Transition State Resistance Change Management Time

30 Change Management Model Change Management Model 1. Assess readiness 2. Establish change sponsorship 3. Measure present capability and culture 4. Define future state and determine change strategy 5. Develop sustaining sponsorship 6. Develop team capabilities and plan the change 7. Implement the change and capability improvement 8. Appraise the business value of the change

31 Step 1. Assess Change Readiness Purpose Determine organizational resistance to, and ability to implement, the proposed change before proceeding blindly Process/People Tools Survey and interview various levels of the organization Readiness assessment survey, survey analysis tools, executive reports and dashboards Outcomes Go, No Go determination, change risk assessment & mitigation plan.

32 Step 2. Establish Change Sponsorship Purpose Without sponsorship, the change will not be taken seriously or considered a business imperative Process/People Tools Assign change sponsor based on area of responsibility, personality profile Sponsorship communication plan, set of sponsor roles, rules & responsibilities Outcomes Change to sponsor s KPIs, role description, management scope to include change initiative.

33 Step 3. Measure Present Capability & Culture Purpose Enables the company to benchmark current capabilities and culture vs. industry leaders and best practices Process/People Tools Survey and interview various levels of the organization Change benchmark assessment survey, survey analysis tools, executive report and dashboard Outcomes Detailed firm profile of current capabilities/culture vs. industry leaders and best practices

34 Step 4. Define Future State & Determine Change Strategy Purpose Enables the company to develop a profile of desired organizational capabilities and plan to deliver them Process/People Tools Through a series of workshops and capability vision sessions Capability visioning workshop plan and analysis tools Outcomes Change and communications management plan, detailed cost, budget and resources needed to accommodate the change

35 Step 5. Develop Sustaining Sponsorship Purpose Enables the firm to institutionalize a culture of change in order that change and innovation becomes part of the company s ongoing DNA Process/People Tools Assign change leaders/sponsors, change the organizations KPIs to align with change and monitor change s progress via ongoing management meetings Sponsorship communication plan, set of sponsor roles, rules and responsibilities Outcomes Change to sponsor s KPIs, role description, management scope to include change and innovation as a way to do business

36 Step 6. Develop Team Capabilities and Plan the Change Purpose Enables the organization to understand key roles, role gaps, what the detailed organizational change plan and playbook will look like and how it will be executed Process/People Tools Assessment of current team capabilities vs. needed future capabilities, mapping of key roles to future needed capabilities Skills and capability assessment matrix Outcomes New role and capability definitions, new role KPIs and team success metrics

37 Step 7. Implement the Change & Capability Improvement Purpose Transitions the company from the current state to the future capability state, including all team roles Process/People Tools Either pilot and replicate the change in measured increments or roll-out full change depending on scale of change Communication plan, education sessions, pilot plan, success replication model, project plan, metrics Outcomes Change acceptance percentage, training & competency scores, communication ratings, change plan budget and earned value management metrics

38 Step 8. Appraise the Business Value of the Change Purpose Determines the initial and ongoing ROI of the change, transitions change & innovation measurement from point-in-time to systematic Process/People Tools Development of change and innovation metrics, measures, management principals and tools Change and innovation metrics, measure tied to KPIs, set of management principals Outcomes Change/innovation increase per week/month/year as tied to bottom line business value

39 Overall Process & Effect

40 The goal is to achieve maximum wellbeing, where everything is functioning the very best that is possible. The Illustrated Encyclopedia of Body Mind Disciplines, Holistic Health, by Suzan Walter, 1999

41 It Takes a Village Business Goals Stakeholders Functional Leads Project Manager End User Needs Change Agents Technical Leads Software Capabilities

42 Holistic Change Approach BUSINESS DRIVERS FOR CHANGE PROJECT FOCUS BUSINESS STRATEGY CLARITY OF DIRECTION SYSTEMATIC CHANGE APPROACH MEASURABLE GOALS & METRICS STANDARDS TECHNOLOGY DEVELOPMENT STRATEGY CHANGE MANAGEMENT PLAN VISIBLE LEADERSHIP & SPONSORSHIP CONSISTENT COMMUNICATION

43 Result: Community & Project Well Being

44 "Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that frightens us most. Nelson Mandela

45 Questions

46 Please complete the session evaluation We appreciate your feedback and insight Session #10157 You may complete the session evaluation either on paper or online via the mobile app

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