Change Management

101

Overview
 Change Management Overview

Objective:
 To enable you to
understand the basic
framework and
background of the change
management approach.
 Types of Change Projects

 Business process design;

 Six Sigma;
 Technology/system upgrades;
 Restructuring;
 Expansion or downsizing;
 Business model changes/new
ventures;
 New marketing campaigns;
 Job redesign;
 Changes that impact suppliers;
 Changes that impact customers.
 Primary Reasons for Change
Management

 Increase probability of
project success;
 Manage employee
resistance to change;
 Build change management
capacity in the organization.
 Primary Reasons for Change
Management
 Top 10:
 Inadequately trained and/or inexperienced project
managers;
 Failure to set and manage expectations;
 Poor leadership at any and all levels;
 Failure to adequately identify, document and track
requirements;
 Poor plans and planning processes;
 Poor effort estimation;
 Cultural and ethical misalignment;
 Misalignment between the project team and the
business or other organization it serves;
 Inadequate or misused methods;
 Inadequate communication, including progress
tracking and reporting.
 Consequences to Avoid

 Project failures;
 Productivity loss;
 Turnover of valued
employees;
 Delayed implementation
or over-budget;
 Disruption to customers
and business revenue.
 Risk and Flight Model

Turnover of valued employees

Risk / flight Tangible customer impact
Increasing fear and resistance

Active resistance

degree Productivity loss

Worry / uncertainty Employee dissatisfaction
Passive resistance
time

Normal work environment

Comfort / security

Time
1st communication or
1st rumor © Prosci
 Goal of Change Management

Poor change management

Increasing fear and resistance

Turnover of valued employees

Risk / flight Tangible customer impact
Active resistance

Productivity loss
Worry / uncertainty Employee dissatisfaction
Passive resistance
Excellent change management

Normal work environment

Comfort / security

Time
1st communication or
1st rumor © Prosci
 Potential for Different Profiles

Dept. A
Turnover of valued employees
Risk / flight Tangible customer impact
Increasing fear and resistance

Active resistance
Dept. B

Productivity loss
Worry / uncertainty Employee dissatisfaction
Passive resistance
Dept. C

Dept. D Normal work environment

Comfort / security

Time
1st communication © Prosci
1st rumor
Consequences to Avoid
 What is Change Management?

 Change Management is the

“people side” of projects;
 Research shows that change
management is the #1 success
factor for project teams;
 Change management is
proactively managing the people
side of change to achieve the
desired business results.
 Change Management Framework

 The psychology of change

(the people process);
 Change management
process (initiation,
planning, execution and
control of change
management
interventions);
 Managing change issues
(issue based approach).
 The People Process

Frustration
HIGH FRUSTRATION

Commitment
to Change
People Axis

N T
RME
E
OW
P
EM

HIGH
Risk
RISK

Task Axis
 Psychology of Change (the People
Process)
 Theories and perspectives;
 Developed from practical
experience and basic
human truths about
change;
 Help provide a foundation
for understanding the “why”
managing the change;
 Helps adjust and adapt to
your unique situation.
 Change
Management
Process
Change as a Set of Strategic Issues

Capacity

Ownership

Change Leadership

Communications
 Best Practices

 Research from over 500

organizations, in 51
countries;
 What is working;
 What is not working;
 What mistakes can we
avoid.
 Understand Resistance to Change

 Normal part of the change

process;
 Plan for resistance and manage
proactively;
 Know how to identify resistance.
 Evidence of Resistance to Change
 Managers may be unwilling to
assign resources;
 Managers may create negative
messages;
 Employees may lose interest in
work;
 Valued employees may leave;
 Absenteeism may increase;
 Unforeseen obstacles may
appear;
 Sudden shift in executive’s
priorities.
 Integrating Change
Management with Project Work

A Starting Point for Change

 Possible Entry Point Scenarios

♦Project is well underway;

♦Project team has
completed planning and
solution design;
♦Project has just started.
 Possible Entry Point Scenarios

♦Essential consideration
(as with project
management), flexibility
to manage the change.
 Connecting Change Management to
Projects

Problem or Assessments
opportunity

Team and
Planning sponsors

Change
Business Communications management
improvement Design process
process

Coaching and
Development feedback

Resistance
Implementation management
 Connecting Change Management to
Projects

Business
improvement
process
Change
management
process
 Change Management Maturity Model
Change management competency is evident Continuous Highest
Organizational in all levels of the organization and is part of process probability of
Level 5 competency the organization’s culture and intellectual improvement in success
property. place

Organizational Organization-wide standards and methods Selection of

Level 4 standards are broadly deployed for managing and common approach
leading change

Multiple Comprehensive approach for managing Examples of best

Level 3 projects change is being applied in multiple projects practices evident

Isolated Some elements of change management are Many different

Level 2 projects being applied in isolated projects tactics used
inconsistently

Adhoc or Little or no change management applied People-dependent Highest rate of

Level 1 absent without any formal project failure,
practices or plans turnover and
productivity loss