LEADING AN ORGANIZATION THROUGH CHANGE A DISCUSSION All businesses are faced with ongoing change. Some changes are driven internally as ways are developed to make processes more efficient. Other changes are driven externally because of the changing nature of every industry sector. Managing change effectively is becoming increasingly important, especially in complex organizations. When change is managed well, resources are employed efficiently, positive morale is maintained and growth opportunities become unlimited. When change is not managed well, or is not managed at all, resources can be wasted, morale can fall and growth opportunities may be missed. An Overview of Change Management: New Millennia s approach is based on a recognition that each business operates within a dynamic system comprised of two primary ecospheres the internal Company Culture, and the external Business Environment of customers and competition. These interrelationships are illustrated in the diagram below. At the center of the diagram are the results the change management and training program are designed to achieve Learning and Change. Our change management methodology addresses each of the elements depicted within the diagram. This graphic also illustrates that while an organization is made up of many different parts; at the center of any organizational universe are its people. Change has to take place inside the hearts and minds of a company s employees, one person and then one workgroup at a time. New Millennia s proprietary and proven change management methodology is based on five key prerequisites for successfully guiding employees through the change process: strong leadership, effective communications, analyzing business processes, addressing job impacts and comprehensive user training. Change Management in the Context of the Business Ecosphere: 1
Oiling the Gears for Change: From an organizational viewpoint, it is the sum of the individual employee and smallworkgroup choices that can be the make or break of a change initiative. All efforts from the top client leadership, the project personnel and the consulting support need to be aimed at oiling the gears of change by understanding and mitigating the change impacts at the departmental, workgroup and individual levels. Change Assumptions: When individuals face change, they predictably go through a multistage process of shock, followed by denial, anger, negotiating, acceptance and then hope. This fear of loss curve is based upon work by Elisabeth Kubler Ross. Individuals go through these stages at their own pace, some quickly and some surprisingly slowly. Most adult change involves attitudes, values and self image. The unlearning of present responses in these areas is inherently painful and threatening. Any change process involves not only learning something new, but unlearning something that is probably well integrated into the personality and work relationships of the individual. No change will occur unless there is motivation to change. Providing the proper motivation is often the most difficult part of the change process. Organizational changes like new structures, processes and reward systems occur only through individual changes in key members of the organization. Organizational change is always mediated through individual change. Change is a multistage cycle, and all stages must be negotiated before stable change can be said to have taken place. Defining Change Management: Because managing change is a significant effort that must be well planned and executed, it is helpful at the outset to discuss managing change in terms of two key components. 1. Change Leadership 2. Organizational Readiness Change Leadership describes the responsibility of senior management to recognize that any major change initiative contemplated, or already in progress, will significantly impact the affected divisions / company, and that they must proactively lead the affected groups through the change. Major change initiatives may include an acquisition, merger, divestiture, IT system replacement or corporate relocation. A Case for Change must be defined and widely shared. This case should be presented in terms of the Vision, Mission and Goals of the initiative, which should also be seen to be directly aligned with the company s overall goals. The Case for Change also 2
involves the need to communicate to the affected employees the benefits of the change for them; i.e., why they should support the change effort. Alternatively, if the circumstances are less positive, communication needs to revolve around what the change will mean to employees in terms of job security, relocation, changed work expectations and so on. Addressing the change impacts honestly gives employees a sense of control and will generate more positive support in the long term. Organizational Readiness, on the other hand, is about understanding and driving the effects of the proposed change down to the departmental, work group or individual level and getting the organizational elements ready to transition to the future state envisioned after the change dust settles. This involves understanding the change impacts, communicating them, training employees to be effective in their new positions or modified jobs and communicating with customers about the pending changes. The term ready organization implies that both project and organizational risks have been appropriately mitigated. It is critical to establish measurable progress towards achieving organizational readiness. Gathering feedback and monitoring the progress of the change campaign are important, as these measures prompt the change team to alter course as needed to ensure the objectives are met. Management is equipped with a quantitative measurement of change readiness and the information needed to support targeted change interventions. The Change Team working a plan to transition from Current to Future State: Managing change is a matter of moving from one state to another, specifically, from the current state to the future state. Goals are set and achieved at various levels and in the affected functional areas. Careful planning is accompanied by efforts to obtain buy-in, support and commitment. The net effect is a transition from one state to another through a planned, structured, organized and measured process. This is the planned change model. The change effort might involve a large or small scope or scale, and it might focus on individuals or groups, on one or more divisions or departments, the entire organization, or one or more aspects of the organization s environment. At the heart of planned change lies the considerable work of the Change Team. A structured approach with a clear work plan and concrete deliverables aimed at achieving a successful transition to the future state helps the change management planners to be analytical, remain focused and not get derailed by the emotional or resistive responses to change. Managing the kinds of changes encountered by and initiated within organizations requires an unusually broad and well developed set of skills, including political, analytical, people, IT system and generalist skills. The Change Process as Unfreezing, Changing and Refreezing : The process of change has been characterized as having three basics stages: unfreezing, changing and refreezing. This view draws heavily on Kurt Lewin s adoption of the 3
systems concept of homeostasis, or dynamic stability. What is useful about Lewin s framework is that it gives rise to thinking about a staged approach to changing things. Change Communications and Selling it to the Employees: Change inevitably provokes resistance on the part of those affected by it. Businesstechnology executives, with their logical orientation, often feel that resistance is exhibited only by those who think they ll be hurt by a change in process. Unfortunately, this is not true. Change provokes insecurity, discomfort and anger even among those whose jobs and prospects will presumably be improved by the system changes. As with almost all business initiatives, communication is critical. Most companies internal change-related communications are poor. Far too many companies think that communication means a video of an executive making a speech, or the HR Department sending out a newsletter. These activities actually tend to invoke cynicism, boredom or dismissal rather than enthusiasm and commitment. It s not enough to tell employees about change. Companies need to sell them on it, make them understand and embrace it, and actively contribute to its success. Managed Change Approach - A Ten Step Change Management Life Cycle: New Millennia s proven methodology for managing organizational change was built around a Ten Step Change Management life cycle as outlined below. 1. Develop the Case for Change - Identify the drivers for change. - Articulate a shared vision. 2. Assess the Client History / Environment / Culture - Identify and understand the strengths to be leveraged and the gaps to address. 3. Plan for the Change - Detail the Change Management activities. - Identify success factors and risks. 4. Define what Success looks like - Agree on critical project success factors and develop success criteria. - Agree on SMART* goals and associated measures. * SMART = Specific, Measurable, Achievable, Realistic and Time-boxed 5. Lead the Change - Identify the Change Team. - Help develop skills and transfer knowledge to team. - Ensure active and visible sponsors and involved stakeholders. - Enroll affected employees while managing resistance. 4
6. Communicate the Change - Plan and deliver an orchestrated communications plan to inform, listen to and involve employees and other key stakeholders, both internal and external. 7. Identify Key Change Impacts - Assess impacts on process, procedure, jobs and organizational elements. 8. Get Ready for the Changes - Enroll end users and key stakeholders. - Develop and implement change readiness plans which address the change impacts. 9. Champion the Change - Identify, build and support a strong network of change agents. - Mobilize the end users / affected employees. - Celebrate successes. 10. Monitor Progress and Reinforce the Change Process - Regularly assess progress towards achieving goals. - Stay the course. 5