Change Management. This resource guide answers eight of the questions most frequently asked of LCE subject matter experts in change management.

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1 Frequently asked questions SERIES: This resource guide answers eight of the questions most frequently asked of LCE subject matter experts in change management. Life Cycle Engineering 2013

2 QUESTION #1: What is change management and what does it include? ANSWER #1: Change management is now a competitive advantage (much like the Project Management Programs (PMPs) of the 60s) for organizations and leaders who want to ensure successful implementation and completion of major corporate, company or site initiatives. Change management is about achieving adoption of the initiative within the organization or appropriate group. Research on project success continues to identify change management as a key focus area for successful completion of initiatives. Organizational leaders that have recognized the need to master change have done so by focusing on and paying attention to successful execution of their role within the change initiative. Prosci, the global leader in change management research and methodology, defines change management on two levels: On a project level: Change management is the application of a structured process and set of tools for leading the people side of change to achieve a desired outcome. On an organizational level: A leadership competency for enabling change within an organization. A strategic capability designed to increase change capacity and responsiveness. Change management is also an emerging career choice for organizational professionals and is now supported by the Association of Professionals (ACMP). Additional information about this organization and its mission can be obtained at QUESTION #2: What are the critical success factors for change management? ANSWER #2: There are several critical success factors that are characteristic of effective change management. The top three are 1) engaged sponsors 2) clear change definition 3) communication. Successful change requires engaged sponsors who are effective communicators. This is the single most significant success factor. There must be clear definition of the change both in terms of business drivers of the change, the current state, the future state and the impact on individuals. It is common for the future state and impact on individuals to evolve as the change project proceeds. This requires that the change definition be revisited and revised on some regular cadence or as significant new facts become known. Communications are the lifeblood of a successful change. Frequent, direct communications delivered in a wide variety of forms and vehicles. There must be heavy emphasis on face-to-face communications. The effective communications effort includes feedback mechanisms that facilitate and promote timely assessment of the effectiveness of the communications and the state of individuals in the change process. There are many other considerations, including a resistance management plan, a training needs assessment and training programs. Reference research studies conducted in change management best practices and the wealth of published material to determine and validate the best approach for your change. Page 2 of 8

3 QUESTION #3: How does one get started with applying change management? ANSWER #3: Generating buy-in involves making the connection between the required changes that people will need to make and the Return on Investment (ROI) of the project. Your first responsibility as a change management leader/sme is to show how employee adoption, utilization and proficiency of changes connect to bottom-line results along with defining what the risk is if these changes are handled poorly. Senior managers and project leaders need to understand the value and benefit of applying change management to their project. These leaders are more receptive and supportive once they see the value and benefit of applying a formal change management methodology. Once that buy-in occurs the path forward in developing change management plans and integrating them into the project plan becomes much easier. After senior and project leaders buy-in and support is achieved, the next step is to develop a change management strategy and associated change management plans. These plans and activities should be based on a change readiness assessment which evaluates the size and scope of the change along with an evaluation of the organizational resistance/receptiveness to change. Once you have completed the change readiness assessment, you can develop a change strategy and specific plans that drive adoption, utilization and proficiency with a primary focus on results. Establish Case for Change Assess Organization Readiness Identify Risks Define the ROI Get Leadership Involved Gain Momentum Develop Strategy Change Resources - People - Budget Project Management Integration Plans Execute the Plan Communicate Manage Resistance Build Coalitions Educate & Train Coach & Mentor Evaluate Reinforce QUESTION #4: Who is responsible for change management? ANSWER #4: Far too often change management is viewed as one person s (project manager) or department s (Human Resources) role and responsibility. Quite the opposite is true. Responsibility for applying effective change management methodologies and leading individuals through change extends across multiple roles within an organization. Benchmarking studies have found that organizations that successfully implement change leverage individuals throughout the organization in change management activities. These organizations recognize that in order to lead change effectively senior leaders, managers and supervisors, and project team members must work in unison while filling separate change management roles....continued on next page Page 3 of 8

4 Directive Roles (employee-facing) Executives and senior leaders set the direction and vision of the change and provide the business context for the change. they also play a key role in connecting the change to the business strategy, building a guiding coalition amongst other managers, reinforcing behaviors, and celebrating success along the change journey. Employees want to see senior leaders actively involved leading by example, removing barriers and providing resources. Senior leaders make the change real by demonstrating commitment and active sponsorship throughout the life of the change initiative. Mid-level managers and supervisors fulfill many responsibilities in leading change, including coaching, managing resistance, communicating, advocating and being a liaison between the project and employees. Managers and supervisors are closest to the change. Therefore they are in the best position to lead their people at a personal level, throughout the change process. Employees look to their direct supervisor for answers on how the change will affect them personally (WIIFM), to see if they are supportive of the change, for help making the changes, and for key project information. Essentially, the supervisor is the face of the change. This proximity to the change positions the manager or supervisor as the first line of defense in managing resistance. Supportive Roles (enabling) Project and change management team members provide the three I s of the change: infrastructure, information and integration. Their duties include strategies, action plans, schedules, budgets, technical information, communications, tools, project status updates, support and leadership coaching. It s important to note that at times these two disciplines can have functionally distinct roles and responsibilities while yet being integrated and sharing a common goal of successful change implementation. Within any organization, individuals at all levels look to these different roles for commitment, information and the support needed to make the change transition successfully. Each of these functions plays a distinctive but integrated role in change management. The absence of one or more of these roles or placing all the responsibilities on a single person or entity can place a change initiative in jeopardy. Successful change thrives when all of these roles effectively fulfill their change management responsibilities in unison. QUESTION #5: How do you get sponsors engaged? ANSWER #5: Active and visible leadership is a critical success factor in all organizations and even more so in an organization undergoing complex change. Leaders must lead and inspire their people. Communicate the vision and constantly link vision to strategy to actions. Creating transformational change within an organization is all about people. We do not change people, people change themselves. In essence, real change occurs from the inside out. You cannot delegate your way through a major change transformation. People must be led! So, how do we get sponsors engaged? Keys to engaging sponsors 1. Create awareness: Sponsors need to understand the vital role that they play in implementing major change. Research shows that effective sponsorship is a critical success factor. Create awareness in your sponsors by providing information such as research, articles, and case studies connecting the role of the sponsor to project success. When sponsors truly understand the impact they have on project success they will engage themselves. 2. Provide assistance: Do not assume that a sponsor who desires to engage knows exactly what to do. Sponsors have varied backgrounds and experience and may not have previously led people through major change. Help your sponsors become better...continued on next page Page 4 of 8

5 communicators by creating communication message outlines or scripts. Help them become better leaders in the field by providing them memory jogger checklists of things to do while they are trying to become more active and visible. Great sponsors often have great coaches behind the scenes enabling their success. 3. Reinforce their behaviors: Many activities require leadership visibility such as kicking off special events (i.e. training sessions, celebrations, and ribbon cuttings), project status meetings, town meetings, etc. The injection of enthusiasm and confidence from a well-executed team visit is immediately visible and reaps great rewards with the team in the form of motivation and quality of output. While this may be visible to those close to the project, sponsors may not see it. To help reinforce these sponsor behaviors be sure to make them visible to sponsors. QUESTION #6: What is the biggest challenge in applying change management? ANSWER #6: There are five obstacles to effective change management identified in Prosci s 2012 Best Practices in benchmarking report: Ineffective change management sponsorship from senior leaders Insufficient change management resourcing Resistance to change from employees Middle-managers resistance Poor communications Two additional obstacles that surface when coaching people and organizations through change are: 1. Lack of core change management skills: Sponsors and managers do not understand or possess the fundamental skills needed to lead effective change management initiatives. For sponsors, these skills include: Active and visible sponsorship throughout the initiative Building coalitions for effective communications and project involvement Communicating directly with employees involved in the change For managers, these skills include: Communication Serving as a liaison between leadership and employees Advocating for the initiative Managing resistance Coaching employees 2. Not establishing ROI for change and who will pay for it: One primary reason for inclusion of change management in major initiatives is to achieve higher levels of business results. This includes having the change management efforts funded within the project, both in terms of FTEs involved and budget dollars allocated for the change management effort. A few other things to keep in mind when applying change management: Sponsor responsibilities cannot be delegated. Change efforts and support for them do not stop at go-live Core change management skills can be taught to increase ability of execution in the ADKAR, Prosci s Individual Change Management model. Page 5 of 8

6 QUESTION #7: How do you justify the change management investment? ANSWER #7: Change management is about one thing business results. In many organizations, change management is perceived as a soft skill more linked to employee satisfaction than to measurable business results. The logical justification for change management is based on results in three areas: 1. The only way to get different results is to do things differently: Change management is the process of changing behaviors to achieve the new results. 2. Reducing negative impact of change: When we ask people to learn a new process, new technology, or a new skill, we are asking them (and their supervisors) to invest time and energy into the learning curve. Good change management, including explanations of why, coaching on skills, and communication on progress, reduces resistance and frustration and accelerates the learning curve. 3. Financial returns: A change that is adopted quickly and implemented fully will deliver results sooner than a partially adopted change that drags out over months (or years). Change management is about maximizing adoption and ownership. While this is the logical justification, often logic is not enough to overcome an existing negative or neutral perception towards the term change management. In these cases, the justification for change management can be better positioned as risk management. For example: One of the more significant risks in this project is getting the new processes implemented fully and the teams taking ownership. We need to make sure we focus sufficient time and resources to prepare the teams for the changes and manage them through the learning curve. QUESTION #8: What is Enterprise? ANSWER #8: Enterprise (ECM) is the organizational approach to integrating effective change management into all changes. It is the transition from applying change management on a tactical, project-by-project basis to building a strategic change management competency. ECM is about aligning the entire organization around the ability to manage change as a core competency and a sustainable competitive advantage. This occurs by building skills in three critical areas: 1. Change management at a project level: This is more than effective change management on big projects or most projects. ECM is where change management is integrated into ALL projects and all changes. 2. Leadership skills: Numerous recent studies have shown that the top leadership skill required in today s world is the ability to lead change. Boards, stockholders and customers are shifting focus from what have you done for me lately to what are you going to do for me tomorrow. 3. Supervisory skills: Organizations that can quickly adapt to changes in a competitive environment have line supervisors that can both achieve the day-to-day business requirements for today AND manage the changes to meet tomorrow s demands. Into the 1980s, businesses were focused on stabilizing production and quality control. The focus then shifted to continuous improvement and removing waste. Starting in the new millennium, the rapid rise in disruptive technologies, massive improvements in information access and analysis, and reduced point-of-entry costs have created a new age of constant change an environment where, in a decade or less, organizations are going from innovative to obsolete. Knowing what to do is only half of the equation. Developing an Enterprise proficiency is the other half creating the ability to execute quickly. Or as W. Edwards Deming stated Change is not required. Survival is not mandatory. Page 6 of 8

7 SErvice: Prosci Site License: Integration and Customization Why work with the Life Cycle Institute? Prosci Authorized Training Provider (ATP). We are the most experienced ATP in the world and the first to be selected in the U.S. 40+ Prosci-certified change management professionals Is your Prosci site license opening doors or just lowering your training costs? Having a site license can be an extremely powerful asset for your organization when used to its full potential. It can open doors to an agile, change-ready culture with highly engaged employees. The Life Cycle Institute can support Prosci site license holders by working with you to customize tools and programs to your internal audiences. As experts in the disciplines of change management and learning, we offer expertise in Prosci change management tools, methodology and training, combined with our proprietary 3A Learning process. We can partner with you to Customize your change management training programs Integrate Prosci s training programs with your existing organizational culture Streamline the change management process with project management methodology Create learning tools and job aids to increase retention As a Prosci Authorized Training Provider, our Prosci Certified Instructors can deliver your programs Provide follow-up coaching to ensure learning is retained and tools are properly applied We have worked with Prosci site license holders in Manufacturing Healthcare Financial Services Insurance Non-profit 3A Learning Process Prosci Certified Instructors on staff In-depth knowledge and experience delivering the Prosci course material More than 25 years experience helping clients implement change management ASTD Certified Professional in Learning & Performance Learning consultants who embrace the idea that Learning is Change Proprietary 3A Learning process focused on results About the Life Cycle Institute: The Life Cycle Institute is the learning, leadership and change management practice at Life Cycle Engineering. We help individuals and organizations learn and adapt to their changing environment by building knowledge, skills, talent and engagement. The Institute s team of learning, leadership and change management professionals integrate the art and science of learning and change to produce desired results. As the first U.S. Authorized Training Provider for Prosci, the world leader in change management best practices and research, the Institute combines LCE s wealth of thought leadership experience and process improvement expertise with one of the most widely used approaches for managing the people side of change. Prosci Licensing For more information on Prosci licensing, contact Prosci at or

8 Learning is Change. Learning is Change. Change is Learning. Those who learn and adapt faster have a competitive advantage. Organizations with a structured change management process and an organizational change management competency have the ability to learn and adapt faster with greater results. A 2008 McKinsey & Company global survey of over 3,000 executives revealed that nearly 70% of all organizational change initiatives fail. What makes the other 30% successful? According to Prosci s 2012 Best Practices in benchmarking report five factors determine the success of change efforts: > Visible and active sponsorship > Frequent and open communications > Structured change management approach > Dedicated resources > Employee engagement and participation > Engagement with and support from middle managers In a culture of empowerment, ownership, and accountability people will embrace change as long as they are part of the change. Life Cycle change management consultants can guide your organization through culture change, process change, software implementation and reorganization. We can provide your staff with the strategy, tools and processes you need to succeed through change. The Life Cycle Institute is proud to be the first Prosci Authorized Training Provider in the United States. As a Prosci Authorized Training Provider, we offer the most comprehensive options for change management training. Prosci is the world leader in change management best practices and research. Prosci s methodology has become one of the most widely used approaches for managing the people side of change in corporations and government. Build competency in change management by participating in a top-tier training program which utilizes best practices research from more than 2,000 companies worldwide. Services: Planning Create a change management strategy to proactively manage the people side of change and to create the knowledge and skills necessary for supervisors and managers to be effective change agents. Scope of Services: Risk Assessment Strategy Training Communications Plan Risk Plan Training Plan Coaching Plan Implementation Training and coaching for your implementation team to create an integrated project plan. Collaborate with the project team to effectively manage the people side of the change. Scope of Services: Structured change management strategy and plan Knowledge transfer of change management best practices to the project team On-site coaching for sponsors, project team and process teams Change and communication effectiveness assessments Enterprise Competency Build the internal organizational change management competency to consistently apply change management processes in organizational change. Scope of Services: Prosci Certification Training Learn to apply Prosci tools/methodology and earn an individual license to apply the Prosci tools Consulting (two weeks) Support in applying learning to achieve specific goals within 90 days Results Engine Web-based tool to encourage accountability and document progress

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