How Smart Businesses Embrace Change Lessons to Enable a Successful Business Transformation
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1 How Smart Businesses Embrace Change Lessons to Enable a Successful Business Transformation January Paulk Director of Client Services Organizational Change and Business Process Management Services
2 Agenda Brief Introduction of Panorama Consulting Solutions Managing the Human Aspect of a Business Transformation Five Lessons Learned from Failed Business Transformations When Should Change Management Happen? Questions
3 About Panorama Consulting Solutions Niche consulting firm with focus on the ERP market Our service offerings include: ERP Software Evaluation and Selection ERP Implementation Project Management Organizational Change Management and Benefits Realization Business Process Management IT Strategy Expert Witness Experience with 150+ ERP packages Depth in targeted industries including: Manufacturing and Distribution Financial and Professional Services Government and Public Sector ERP vendor independent and neutral
4 Agenda Brief Introduction of Panorama Consulting Solutions Managing the Human Aspect of a Business Transformation Five Lessons Learned from Failed Business Transformations When Should Change Management Happen? Questions
5
6 Change Management Helps Mitigate the Change Curve
7 Top Reasons for Process Implementation Failures Lack of top management commitment Not having eyes wide open (unrealistic expectations) Inadequate project resources Resistance to change and lack of employee buy-in Poor project planning Failure to track business benefits and ROI Inadequate training and education Poor project management and controls Not leveraging the A-Team from the business Poor employee communications
8 Agenda Brief Introduction of Panorama Consulting Solutions Managing the Human Aspect of a Business Transformation Five Lessons Learned from Failed Business Transformations When Should Change Management Happen? Questions
9 Lesson 1: Leadership and Executive Sponsorship Top five common executive mistakes Failed to remain visible and engaged throughout the project Failed to demonstrate support for the project in words and actions Failed to effectively communicate messages about the need for change Ignored the people side of change Delegated the sponsorship role and responsibilities Role of executive management Be active, visible and participate throughout the project Build a coalition of sponsorship with peers and managers Communicate directly with employees Be your sponsor s coach Hold regular meetings with the executive sponsor Prepare communications for them Hold the sponsor accountable in their role
10 Lesson 1: Executive Rules of Engagement Project Team Managers Employees Planning Secure project resources Build management support Create awareness Design Provide direct resources Develop sponsorship Educate Implementation Maintain momentum Align leadership and manage resistance Reinforce and reward
11 Lesson 2: Connect the People Side of Change with Project Success If people don t change how they do their job, then it doesn t matter what specific changes are implemented Leadership Objectives Employee Impact Unintended Consequence Reduced costs New service concepts Process efficiencies Improved technologies More effective organizational structure New skills required New expectations New and unknown tasks Change in work environment Change in decision authority Loss of status Resistance Slow implementation Quality problems Reduced productivity Increased risk avoidance Reduced commitment Project Name Purpose Particulars Peoples What is the project Why we are changing What we are changing Who will be changing
12 Lesson 3: Time for Change Actions and Resources Consequences of not having a dedicated resource: Neglected change activities Increased risk of project failure Lack of project coordination Lack of ownership and accountability 60% 50% Relationship between dedicated resources and project success Number of project resources is dependent on: Nature of the change Scope change management efforts Organizational capacity for change Geographical distribution Phase of project 40% 30% 20% Top constraining factors: Budget Availability of resources Skill sets of resources 10% 0% Poor Fair Good Excellent Did not used a dedicated resource Used a dedicated resource 2014 Procsi Survey
13 Lesson 4: Understand and Manage Resistance You can see it, hear it, but you don t know the root cause. How can I identify resistance? Observation: behavior and lack of buy-in Use feedback tools to include readiness assessments, stakeholder analyses, and social media Seek feedback through organizational channels, change agents and informal networks Conduct meetings, interviews and focus groups Primary reasons for resistance Lack of awareness Impact on current job role Organization s past performance with change Lack of visible support and commitment from managers Fear job loss
14 Lesson 4: Understand and Manage Resistance Steps to deal with resistance Listen and understand objections Focus on the what and let go of the how Remove barriers Provide simple, clear choices and consequences Create hope Show the benefits Make a personal appeal Convert the strongest dissenters Create a sacrifice (should be a last choice) Proactive steps to prevent resistance from employees Clear, honest, two-way communications Early involvement of end-users in all phases of project development Manager and supervisor engagement
15 Lesson 5: Communicate! Develop a Communication Plan Perform a stakeholder assessment to identify the audiences By group, location, function By level (employees, managers, executives, customers, suppliers) By how they are impacted by the change Identify key messages and timing Will be delivered by senior leadership Will be linked back to strategic goals and vision Will be customized based on audience Will be unique to each phase of the project Message about the business today Messages about the change Messages about how the change impacts employees Status updates and progress reports
16 Lesson 5: Develop a Communication Plan Determine timing, packaging, delivery and sender Timing depends on: size of change, impact on employees, readiness of the organization Packaging: all at once or in manageable components Delivery methods: face-to-face, , town halls, bulletin update boards Sender: depends on the audience Business messages: CEO, Executives, Senior Managers Personal messages: Employee Supervisor, Department Head Prepare and present the communications plan Your plan should include: Who is the audience What are the key messages When should this be delivered Where will this occur How will the message be sent
17 Sample Communication Plan Timing Communication Purpose Audience Segmentation Vehicle/ Mechanism Responsibility Develop Deliver Notes Identify the timing of the message Identify the name of the communication (e.g. weekly updates, kick-off memo, etc.) Outline the purpose of each communication that will be sent Identify the core audience for each message Identify the vehicle or mechanism that will be used to send each message Identify the individual(s) responsible to develop/ deliver each message Outline any key assumptions, considerations or details
18 Agenda Brief Introduction of Panorama Consulting Solutions Managing the Human Aspect of a Business Transformation Five Lessons Learned from Failed Business Transformations When Should Change Management Happen? Questions
19 Integration of Change Management Over 50 percent of organizations are not ready for change 60% Impact of integration of CM activities 6% 50% 51% 43% Yes No Don't Know 40% 30% 2014 Procsi Survey Begin change management earlier 20% Provide training on change management 10% Assign adequate resources to change management Engage senior leaders 0% Poor Fair Good Excellent Did not integrate CM Integrated CM 2014 Procsi Survey
20 An Effective Change Management Plan Organizational and Business Readiness Identify change management opportunities Establish a change management plan Communication and Alignment Stakeholder assessment Communications plan Change Impact and Assessment\ Identify and address change impacts Workforce transition plan Benefits Realization Determine measurements and measurement strategy Assign accountability and structure Training Define training strategy Benchmark skills assessment
21 Greatest Contributors for Project Success 1. Active and visible leadership 2. Structured change management approach 3. Dedicated change management resources and budget 4. Open communication about the change and the need for change 5. Employee engagement and participation 6. Integration with project management activities
22 Questions?
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