A Change Management Playbook: Addressing the people side of change
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1 A Change Management Playbook: Addressing the people side of change
2 Let me introduce myself Natascha Walker Organization Change Practitioner About me: 12+ years IBM consultant - helping organizations address the people challenges associated with transformation Joined Kinetic Concepts, Inc Dec 2010 Reach me at: natascha.walker@me.com
3 Imagine this scenario There is a problem identified in your organization. A team of the best & brightest assemble. Countless hours & dollars are spent on crafting the right solution. Then, we Go Live But, no benefits are realized. Instead: Resistance, Workarounds, Ignoring the change. How could the right solution fail to deliver results? Because the right answer is not enough. 3
4 The right answer alone does not - 4
5 Lessons from benchmarking Top reasons employees and managers resist change: Lack of awareness Loss of control or negative impact on job Culture of change resistance Lack of visible commitment from managers Job loss concerns None of the reasons identified by 575 study participants from 65 countries are related to the rightness of the solution! Prosci s 2009 Best Practices in Change Management benchmarking report 5
6 Performance Why Change Management? Change management minimizes the depth and length of performance disruption H Change project starts Disruption due to lost productivity Speed of adoption change management program promotes Ultimate utilization L Reduced productivity Proficiency Time 6
7 What is this presentation and who is it for? Purpose: Provide a Change Management Playbook What s your role in a change initiative? Sponsor Project manager Functional manager Employee (aka Target ) Senior leaders Project team Change management Managers & supervisors Employees 7
8 Do you have an approach to address the people side? Must Have Change Management Components Sponsorship Communication Objective: Key stakeholders are visibly engaged in communicating the vision and preparing for the change Objective: Impacted groups and individuals understand the change and have the information they need to support it Coaching Objective: Individuals are prepared for the change through interactions with their supervisors and managers 8
9 Contents 1. Why Change Management? 2. Sponsorship 3. Communications 5. Coaching 6. Change Management Resources 9
10 Ask yourself Are you engaging leaders to sponsor the change? 10
11 Why does sponsorship matter? Top five contributors to overall change management success*: 1. Active and visible executive sponsorship 2. Frequent and open communications about the need for change 3. Structured change management approach 4. Dedicated resources and funding for change management Employee engagement and participation 5. Which of these five factors are improved through sponsorship planning? * Prosci Benchmarking Report
12 12 12
13 Avoid a common pitfall Assuming that sponsors know how to lead the change Study Why CEOs get fired Four-year study by LeadershipIQ, compiled interview results with 1,087 board members from 286 public, private, business and healthcare organizations that fired their chief executive. Top reason? Not due to missed financial goals Mismanaging change (31%)! Virtually every organization interviewed indicated they were undergoing a change initiative. However, half of board members said that their change initiative did not go well. Most pointed to a failure on the CEOs part of properly motivate employees and managers and to adequately sell the need to change course. 13
14 Pitfall: Overlooking Why Anybody remember, Norah Jones singing Don t Know Why with Elmo on Sesame Street? Purpose drives meaning - Why change? - What would happen if we didn t make the change? 14
15 Study explains that why is a big deal for us humans 15
16 Probably the most common pitfall to avoid is Avoiding problem stakeholders Problem stakeholders who seem disinterested or pose opposition? It s tempting to avoid interacting with them. But they need just the opposite more engagement and interaction. Resist the urge to limit interactions with stakeholders who demonstrate opposition or ambivalence. 16
17 Powerful Tool: Telling stories at work Why story telling? Stories have a long history as powerful change makers Stories are engaging: Let me tell you a story Stories are easy to remember & share Stories are emotional Stories can convey subtle or complex information Stories can change behavior 17 17
18 Example of story telling at work Let me tell you a story VP of Sales & Marketing for a catalog retailer shared his wife s customer experience The story became a catalyst for the company s ERP project Voice of the customer Case for change Project benefits 18 18
19 Photo credit: 19 Cayusa on Flickr 19
20 Contents 1. Why Change Management? 2. Sponsorship 3. Communications 5. Coaching 6. Change Management Resources 20
21 Why communicate? People need information to make change happen Lack of information breeds uncertainty and anxiety Information-sharing gives people a sense of belonging Honest, timely communication enhances credibility Without good information people make it up Anxiety interferes with focus and productivity We work harder for an organization we feel part of Reliable communication is preferred over the grapevine 21
22 Common Communication Pitfall: Wrong sender for the message Preferred sender Business related messages How change aligns with corporate strategy Why we are making this change Risk of not changing Senior business leaders Individual implications How the change will impact my job? What s in it for me? What will I do differently? Immediate supervisor 22
23 Pitfall: Believing that once or twice is enough Say it again And again And again 23
24 Pitfall: Waiting until you have all the answers While you are quietly designing the perfect solution, your people are in the dark wondering worrying feeding the rumor mill Instead of waiting, bring them in early with the big picture and provide details when you can If you get stumped with questions that don t have answers yet, log them to be communicated later 24
25 Employees are probably wondering What is the project? Why are we doing it? Will I still have a job? When will this happen? Why now? Who s involved? How did the project get started? How will this affect me? How will this be implemented? Where do I find out more? Will I receive training? What should I be doing now? Can I learn new ways? What s in it for me? What are the benefits? 25
26 Pitfall: Underestimating the Rumor Mill The rumor mill is a powerful change management tool Employee feedback Friends & Family Manager Friends & Family Manager Friends & Family Manager Friends & Family Manager Friends & Family Manager Friends & Family Manager Friends & Family Manager Friends & Family Manager Friends & Family Manager Friends & Family Manager Friends & Family Manager Friends & Family Manager Day 1 Day 2 Day 3 26
27 Pitfall: Relying too much on Most effective communication methods*: 1. Group meetings and presentations 2. One-on-one coaching sessions and discussions did not make the list! It s okay to use , but don t rely on it exclusively * Prosci change management benchmarking study
28 Pitfall: Credibility problems 28
29 For godsakes, talk like a human being
30 Communication Checklist Candid: Be open and honest. People will know when you re not. Credible spokesperson: Involve executives and management. Use the line: Employees rely on their direct supervisor. Managers first: Give managers a head s up or preview. Two Way: Listen! Provide a mechanism for getting input. Silence is not an option: Communicate even when you don t have all the answers. Repeat key messages: If you re tired of saying it that s a good sign. Build up to the details: Start general to build a foundation. 30
31 Contents 1. Why Change Management? 2. Sponsorship 3. Communications 5. Coaching 6. Change Management Resources 31
32 ADKAR a model for change Organizations don t change individuals do A D K Awareness of the need for change Desire to participate and support the change Knowledge on how to change A R Ability to implement required skills & behaviors Reinforcement to sustain the change 32
33 33
34 Ensure you series of events to engage individuals Plan a progression of events to engage managers and employees Desire: Get into the details (WHY) Knowledge: Training and education Ability: coaching, remove barriers GO- LIVE Reinforcement: Rewards & Recognition Awareness: Start with the basics 34
35 Contents 1. Why Change Management? 2. Sponsorship 3. Communications 5. Coaching 6. Change Management Resources 35
36 Selected change management resources Thought Leaders: John Kotter Leading Change Daryl Conner Managing at the Speed of Change William Bridges Managing Transition Tools: Prosci Change Management Learning Center Provides benchmarking, thought leadership, free webinars, and change management certification training Communities: Linked In Groups ACMP: Association of Change Management Professionals 36
37 Questions 37
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