Managing Change in Organizations. Sonja Streuber, PMP, SSBB
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1 Managing Change in Organizations Sonja Streuber, PMP, SSBB
2 Sonja Streuber Project Mgmt & Engineering, Six Sigma, Risk Mgmt & Risk Analysis: Agilent Technologies Lockheed Martin ITT Exelis 2011 present Valparaiso University 2012: Founded PMReboot 2012 present: NiSource (currently IT PMO Risk and Metrics Mgr) Education, Certifications: Six Sigma Black Belt, Caterpillar Corp., 2012 PMP, Project Management Institute, 2010 M.S. (Systems Engineering), George Washington U M.A./ A.B.D. (English), UC Davis
3 Agenda What is Change Management Change as a Strategy The Nature and Process of Change Three Change Life Cycle Models: PMI, ProSci, ChangeMethod) Critical Factors that Can Impede or Foster Change Managing Change in an Organizational PM context Change Management and OPM Assessing Change Readiness Key Factors for Change Management Change Management at Different Levels Portfolio Program Project Free Resources Summary
4 Re alized Value What is Change Management? Change as Strategy Change management is a comprehensive, cyclic, and structured approach for transitioning individuals, groups, and organizations from a current state to a future state with intended business benefits. It helps organizations to integrate and align people, processes, structures, culture, and strategy. Increasing Capability Growing Population Technology As-Is Business Objectives External drivers Agile Culture Sponsoring Change throughout the org Formulate Change Legal/ Regulatory New Markets Knowledge Mgmt Strategic Agility Org. Business Strategy Plan Change Implement Change Manage Transition Sustain Change Global Economy Global Comm Social Networking To-Be
5 What is Change Management? The Nature and Process of Change Human dimension: Resistance is natural because people feel loss of control over their environment & work processes Organizational dimension: Resistance is futile Change as: Psychological Transition (disruption) Process Occurring in three degrees: 1. Adjustment 2. Transformation 3. Values Corporate Culture Reason Need Org Process Review PM must deal with people and ambiguity Vision Desire Baby Steps Political Environment
6 Re alized Value What is Change Management? Change Management Framework (PMI) As-Is Org. Business Strategy To-Be Formulate Change Need, Readiness, Scope Business Objectives Plan Change Approach, Stakeholders, How Implement Change Prepare, Mobilize, Deliver Manage Transition Outputs, Measurements, Gap Analysis Sustain Change Communication, Sensemaking Activities, Measure Benefits Realization
7 What is Change Management? Change Mgmt Model (ProSci) ADKAR Model Awareness Desire Knowledge Ability Reinforcement See also: Change Management Planning Checklist Change Management Tutorial Other Tutorials
8 What is Change Management? Change Mgmt Model (ChangeMethod) Process Steps: 1. Define Future State 2. Define Change Governance 3. Develop Change Strategy 4. Conduct Change Impact Assessment 5. Develop Change Mgmt Plan Free cheat sheets, tools, templates to download. Methodology similar to PMI and ProSci
9 What is Change Management? Factors that Impede or Foster Change The Challenge: Diagnosis and Communication Change No Change Is Good Advantages of Changing? Advantages of Not Changing? Is Bad Threats of Changing? Threats of Not Changing? Alligators and Mermaids: Where does your organization fall?
10 Managing Change in an Org PM context: Change Management and OPM Program and Project Management: Effectively & efficiently deliver org value (aligned in Portfolio) Business Impact Analysis: Collects results data from programs & projects for portfolio review cycles Value Performance Analysis: Is the business value being realized? Organizational Environment Tech Change comes in cycles! People Mission Vision Org Strategy Portfolios: Programs, Projects Operations OPM3 Structur es Change Mgmt Process
11 Re alized Value Managing Change in an Org PM context: Change Management and OPM As-Is Org. Business Strategy To-Be Business Objectives Portfolio Formulate Change Need, Readiness, Scope Program Plan Change Approach, Stakeholders, How Implement Change Prepare, Mobilize, Deliver Project Operations Manage Transition Outputs, Measurements, Gap Analysis Sustain Change Communication, Sensemaking Activities, Measure Benefits Realization The OPM3 view
12 Managing Change in an Org PM Context: Assessing Change Readiness Culture and historical experience in dealing with change Policies, processes, roles, decision-making norms Accountability hierarchy/ performance mgmt Change agenda: Size, timeframe, concurrency Resources leading change (expertise, experience) Leadership support (sponsoring) Motivation s, barriers, limitations Context People and Orgs Available support, needed resources Surveys, Interviews, Focus Groups?
13 Managing Change in an Org PM context: Key Factors For Success 1. Stakeholder Engagement 2. Acceptance 3. All Supporting Systems Aligned 4. Realistic speed, complexity, scope 5. All sponsors aligned 6. Clear description of future state 7. Success Metrics defined & in place 8. COMMUNICATION (vision, benefits/ impacts, support, FAQs, ) and effectiveness checks (webpage hits, etc.) 9. Change evangelists embedded 10. Culture of change For Failure 1. Lack of Sponsor 2. Lack of Commitment to Funding or Resources 3. Culture of Resistance (inertia, trust, competencies, bureaucracy) 4. Failure to Build Change Readiness 5. Insufficient Time 6. Poor vision of the future 7. Poor success metrics
14 Re alized Value Change Management at different levels: Portfolio As-Is Org. Business Strategy To-Be Business Objectives Portfolio Formulate Change Need, Readiness, Scope Program Plan Change Approach, Stakeholders, How Implement Change Prepare, Mobilize, Deliver Project Operations Manage Transition Outputs, Measurements, Gap Analysis Sustain Change Communication, Sensemaking Activities, Measure Benefits Realization The OPM3 view
15 Change Management at different levels: Portfolio Portfolio = a collection of quantifiable programs, projects, or operations (not necessarily related) managed as a group to achieve strategic objectives Principles & Practices 1. Strategic Focus 2. Strategic Initiatives 3. Portfolio Components 4. Quantifiable Components 5. Time Horizon (long-term) 6. Portfolio Snapshot 7. Portfolio Mgmt Activities 8. Alignment to Org Strategy 9. Governance (decision body) 10. Balancing of Conflicting Demands
16 Change Management at different levels: Portfolio Change Impact Assessment Value Scope: Gap Analysis Impact to existing systems Impact on org s processes Impact on people Impact on org structure Technology impact Environmental impact (availability of capital, demographics of resources, social/ political issues Need: Change Readiness Assessment Governance Sponsorship Accountability Capacity to Execute Success Definition Method Business Case Capacity to Manage Resolve Success: Aggregate investment performance and realization of intended benefits
17 Re alized Value Change Management at different levels: Program As-Is Org. Business Strategy To-Be Business Objectives Portfolio Formulate Change Need, Readiness, Scope Program Plan Change Approach, Stakeholders, How Implement Change Prepare, Mobilize, Deliver Project Operations Manage Transition Outputs, Measurements, Gap Analysis Sustain Change Communication, Sensemaking Activities, Measure Benefits Realization The OPM3 view
18 Program Life Cycle Phases Change Management at different levels: Program Program Management= The harmonized management of a number of related components through a common outcome of delivery of a collective set of benefit. Program Definition Program Formulation Program Preparation Program Benefits Delivery Component Planning &Auth Component Oversight &Integration Communicate & engage stakeh Component Transition and Closure Program Closure Program Transition Adaptive change Program Transition Program Closeout Formulate Change Identify/ clarify the need for change Assess change readiness Define change scope Plan Change Define change approach Plan stakeholder engagement Plan transition and integration Implement Change Prepare ogranization for change Mobilize stakeholders Deliver project outputs Manage Transition Transition output to business Measure adoption rate and benefits Adjust plan to address discrepancies Sustain change Ongoing communication, consultation, and representation of stakehodlers Conduct sensemaking activities Measure benefits realization Change Life Cycle
19 Change Management at different levels: Program Primary Integrator Functions p. 81 Success Metrics: Short-term: Knowledge acquisition ( before/after assessment) Medium-term: Knowledge transfer or application of training to work (=conformance to new performance standards) Long-term: Improvement in overall performance (causeeffect problematic) Change must be measurable!
20 Re alized Value Change Management at different levels: Project As-Is Org. Business Strategy To-Be Business Objectives Portfolio Formulate Change Need, Readiness, Scope Program Plan Change Approach, Stakeholders, How Implement Change Prepare, Mobilize, Deliver Project Operations Manage Transition Outputs, Measurements, Gap Analysis Sustain Change Communication, Sensemaking Activities, Measure Benefits Realization The OPM3 view
21 Change Management at different levels: Project PMs need to understand Project s role in achieving business benefits How the project may need to adapt to other changes in the environment Who the SMEs are on the project team Project scope relative to program scope and vision Impact of human factors outside the project team Program Lifecycle Phases PM Process Groups Change Lifecycle Program Definition Formulate Change Program Formulation Identify/ clarify need for change Assess change readiness Define change scope Program Preparation Initiating and Planning Plan Change Define change approach Planning Plan stakeholder engagement Planning Plan transition and integration Program Benefits Delivery Implement Change Component Planning and Authori Planning Prepare ogranization for change Component Oversight and Integration Communicate & engage Executing Mobilize stakeholders stakeholders Component Transition and Executing Deliver project outputs Closure Program Closure Manage Transition Program Transition Executing Transition output to business Monitoring and Controlling Measure adoption rate and outcomes/ benefits Adaptive change Monitoring and Controlling Adjust plan to address discrepancies Program Transition Sustain change Communication, consultation, and representation of stakeholders Conduct sensemaking activities Measure benefits realization Monitoring and Controlling Monitor for resistance or apathy Program Closeout
22 Change Management at different levels: Project p. 97 Procure resources to support deliverables Communicate to enlist & empower stakeholders Identify & address risks of resistance Build flexibility into project management plans Coordinate & align project and program efforts A project output becomes operationally effective when An acceptable number of people adopt it and use it effectively in dayto-day operations after project completion Management systems are in place to measure & ensure the effective performance of the new work activity Support systems and feedback loops are in place
23 Free Resources PMI Managing Organizational Change at Management/Change-Management-Form.aspx PMI Change Management Community of Practice: OCM Plan Template at SearchCIO at TechTarget has an entire template set for free: e-change-management-templates Change Management Toolbook (method and templates):
24 Summary Organizational change Starts with a vision of a future state Must prove success with metrics at the end Derives initiatives from the overall business strategy Delivers sustained value to the business Requires a Change Impact Assessment (for Context/ Environment and People) Requires Resistance Risk Management with varying forms of communication
25 Questions? Sonja Streuber, PMP SSBB 8/19/
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