accelerated results with change management
TRANSCRIPT
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Accelerated Results with Change Management
Karen MaskellAzurion Consulting
2016 Spring Seminar Program March 12, 2016
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Session Objectives
• What is Change Management?• Why Change Management?• 5 Step Approach to Change• Success Factors• Results
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What is Change Management?
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What is Change Management?
Prosci’s definition of change management
• The application of a structured process and set of tools for leading the people side of change to achieve a desired outcome.– Emphasizes the “people side” of change – Targets leadership within all levels of an
organization• executives, senior leaders, managers, supervisors
• Done well: people feel engaged in the change process and work collectively towards a common objective, realizing benefits and delivering results.
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What is Change Management?
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Why Change Management?
1. Global Responsibility2. Consumer Awareness3. Globalization4. The Increasing Rate of Change5. The Workforce of the Future6. Aging Population7. 21st Century Quality8. Innovation
Key forces influencing the future of quality
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Why Change Management?• Cannot take quality for granted• Quality is the competitive advantage
Then NextGoal Prevention PerfectionQuality of Product EnterprisePhilosophy Processes CommunitySector Manufacturing EveryWaste Tolerable AbhorrentFocus Product/Service ExperienceMethodology Control/ Improvement Change/Transformation
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Why Change Management?
we will barely be able to keep pace with changes in the nature of customer demand, and it is a field that is changing perhaps faster than any of us realize.
everything will affect everything else, both for better and for worse.
the need for high-quality information to be broadly shared to allow for timely decisions.
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Why Change Management?
• Connects to business results• Increases probability of project success• Translates to financial performance
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Why Change Management?
• Mitigates negative consequences• Manages employee resistance to change• Builds change competency Gaining importance
as we deal with the increasing rate of change
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Why Change Management? Effective change management decreases
the uncertainty associated with changes that impact how people
do their jobs – improving the ROI of projects that
impact people
1st communication or1st rumor
Incr
easi
ng re
sist
ance
Dec
reas
ing
prod
uctiv
ity
Time
Dept. A
Dept. B
Dept. C
Dept. D
Turnover of valued employeesTangible customer impactActive resistanceOpt-out of the change
Productivity lossEmployee dissatisfactionPassive resistance
Prosci® Flight Risk Model
Copyright Prosci 2012. All rights reserved.
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17%
49%
80%
95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor(n=177)
Fair(n=441)
Good(n=561)
Excellent(n=107)
Perc
ent o
f res
pond
ents
that
met
or
exc
eede
d pr
ojec
t obj
ectiv
es
Overall effectiveness of change management program
Correlation of change management effectiveness to meeting project objectives
*Data from 2007, 2009 and 2011© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
Prosci Correlation Analysis
With excellent change management, projects are six times more likely to meet objectives than with poor change management
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16%
34%
57%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor(n=215)
Fair(n=532)
Good(n=679)
Excellent(n=116)
Per
cent
of r
espo
nden
ts th
at w
ere
on o
r ahe
ad o
f sch
edul
e
Overall effectiveness of change management program
Correlation of change management effectiveness to staying on schedule
*Data from 2007, 2009 and 2011
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
Prosci Correlation Analysis
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48%
63%71%
82%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor(n=188)
Fair(n=498)
Good(n=661)
Excellent(n=116)
Per
cent
of r
espo
nden
ts th
at
wer
e on
or u
nder
bud
get
Overall effectiveness of change management program
Correlation of change management effectiveness to staying on budget
*Data from 2007, 2009 and 2011
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
Prosci Correlation Analysis
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Change is a process…
Current State Transition Future State
Not an event.
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Five Tenets of Change Management#1 We change for a reason.#2 Organizational change requires individual
change.#3 Organizational outcomes are the collective
result of individual change.#4 Change management is an enabling
framework for managing the people side of change.
#5 The application of change management helps to realize the benefits and desired outcomes of change.
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When to start Change Management?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Project closure
Project implementation
Project design
Project planning
Project initiation
Percent of respondents
When did you start CMactivities this time?
When would you start CMactivities next time?
© Prosci. From Prosci’s 2009 Best Practices in Change Management benchmarking report
When would you start Change Management activities next time?
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5 building blocks of successful change
Awareness Awareness of the need for change
Desire Desire to participate and support the change
Knowledge Knowledge on how to change
Ability Ability to implement required skills and behaviors
Reinforcement®
Reinforcement to sustain the change
Prosci®
ADKAR®
Model
ADKAR and “Awareness Desire Knowledge Ability Reinforcement” are registered trademarks of Prosci, Inc. All rights reserved.
You cannot manage change at an organizational level until you know how to manage change with a single individual.
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AwarenessChange begins with understanding why.
Build the Case for Change• What is the nature of the change?• Why is the change needed? Why now?• What is the risk of not changing?
ERROR: LACKING A VISION
Resistance is normal. Resist pain of change, fear of
unknown Lack of awareness is the most
common reason for resistance. 90% of resistance evaporates
by answering “Why?”
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DesireChange involves personal decisions
• A personal choice• A decision to engage &
participate• Awareness = Desire
ERROR: NOT ESTABLISHING A GREAT
ENOUGH SENSE OF URGENCY
Often considered the most difficult step to achieve
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KnowledgeChange requires knowing how
• Understanding how to change• Training on processes & tools• Learning new skills
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AbilityChange requires action in the right direction• The demonstrated capability to
implement the change• Achievement of the desired change in
performance or behavior• Knowledge = Ability hands-on practice, support from
coaches, subject matter experts policies, processes, procedures
that support and/or interfereERROR:
NOT REMOVING OBSTACLES TO NEW VISION
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ReinforcementChange must be reinforced to be sustained
Recognition & rewards that sustain the change
Actions that increase the likelihood that a change will be continued
ERROR: NOT CREATING AND
CELEBRATING SMALL VICTORIES
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Success Factors
2014 additions: Engagement Integration with project management
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Success Factors - Sponsorship• Active. Visible. Engaged.
– Talk about it – formally & informally• Communicate directly with employees at all levels
– Demonstrate commitment – in words & actions• Build a coalition of sponsorship
– Employees evaluate importance of change based on what they see and hear from senior leaders
– Involvement, Commitment, Action– Sponsor is a verb – not a title ERROR:
NOT CREATING A POWERFUL COALITION
OF SPONSORSHIP
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Success Factors - Sponsorship• Assess Sponsor Competencies
– Is the sponsor at the right level?– Does sponsor support the change?– What is sponsors track record?– What is sponsors communication style?
• Prepare the sponsor– Clear Responsibilities– Training, Coaching, Assistance– Regular Meeting– Accountability– Examples:
• good sponsorship activities• common mistakes
Project teams ranked over 50% of their sponsors as having a moderate to low understanding of their role in managing the people side of change and graded them “average to poor” in terms of sponsorship activities.
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Success Factors – Communication
• Employees often do not hear or internalize key messages from managers, despite efforts to create the most complete & clear communications.
Preferred senders of change messages? Vision: CEO / Executive / Sponsor Impact: Immediate Supervisor/Manager
ERROR: UNDER COMMUNICATION
VISION BY A FACTOR OF 10
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Success Factors – Communication• Send the right message• To the right audience• At the right time• From the right sender• Through the right channel
Often must hear a message 5 to 7 times before message is internalized.
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Success Factors – Communication
• Ethos – Trust, Credibility• Logos – Logical, Use of Reason• Pathos – Emotion Influence via inspiration Focus on the future: possibilities and
opportunities NOT fears and regrets
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Success Factors – CommunicationWhat Do Followers Want From Leaders?Trust: Your Word is Your Bond
– Respect, Honesty, IntegrityCompassion: Genuine Caring
– Understanding, Friendship, Happiness, Love Stability: Constancy in Times of Change
– Security, Strength, Support, PeaceHope: Aspirational for the Future
– Direction, Guidance, Faith
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Success Factors – CommunicationGo beyond Communication to EngagementGALLUP’S Q12® SURVEY QUESTIONS THAT MEASURE EMPLOYEE ENGAGEMENT EMPLOYEE’S NEEDS
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Success Factors – CommunicationGo beyond Communication to Engagement
Engagement Increases the Odds of Success
17%25%
30%37%
42%46%
50%54%
58%63%
70%75%
83%
0%
20%
40%
60%
80%
100%
1st 5th 10th 20th 30th 40th 50th 60th 70th 80th 90th 95th 99th
Probability of Above-Average Performance*
Engagement PercentileAnalysis of business units across organizations in Gallup’s database
*Composite of absenteeism, turnover, shrinkage, safety, quality, customer metrics, productivity, and profitability
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Change with one person
Or five people…
Or twenty people…
Or 1000 people…
Success Factors - Approach
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Time (periods)
0
+
- Exceptionally managed change cash flowPoorly managed change cash flowExpected cash flow
Prosci’s ROI of Change Management Model
Exceptionally ManagedPoorly ManagedExpected
Results
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Great Results Beginwith Great Questions
Karen MaskellChange Management ConsultantGallup Certified Strengths CoachPast Chair, ASQ Minnesota [email protected]