Change Management Skills Workshop

1. Change Management Skills Workshop July 13, 2006

2. Agenda • Overview • Stakeholder Analysis • Strategies • Integrated Planning • Questions? Change Management Skills Workshop

3. Overview Change Management Skills Workshop

4. What is Change Management? • From Wikipedia.org • Organizational change management is the process of developing a planned approach to change in an organization. • Typically the objective is to maximize the collective benefits for all people involved in the change and minimize the risk of failure of implementing the change. The discipline of change management deals primarily with the human aspect of change, and is therefore related to pure and industrial psychology. Change Management Skills Workshop

5. Bridges Transition Model • From Dr. William Bridges, Ph.D., Transition — The Personal Path Through Change : • Phase 1: Endings: Every transition begins with an ending, a loss. When things change, people leave behind the way things were — and the way they were in the previous situation. They may be left searching for a new way to define themselves. • Phase 2: The Neutral Zone The neutral zone is a confusing in-between state, when people are no longer who and where they were, but are not yet who and where they're going to be. Although the neutral zone can be distressing, it also provides many opportunities for creative transformation. • Phase 3: New Beginnings A new beginning can only happen after people have let go of the past and spent some time in the neutral zone. In this phase, people accept the reality of the change and start to identify with their new situation. Change Management Skills Workshop

6. FUD • F EAR • U NCERTAINTY • D OUBT Change Management Skills Workshop

7. FUD – The Consequences • The most talented and marketable resources will opt for more certain employment (with someone else) • Turnover will be higher • It will be difficult to attract new talent to the organization • Personal productivity will be impacted • Business as usual and transition work will get mixed up – loss of focus on both • Lines of authority and job responsibilities will become blurred • Communications will become reactive – countering misinformation • The outside world will know about the FUD Change Management Skills Workshop

8. FUD – The Strategy • Acknowledge that not everything is known or decided • If you don’t have the answer to the question, know how and when you will • Know how everyone will be involved in the process of creating certainty • Have a solid plan and demonstrate that you are following it to build confidence • Counter balance FUD with visible competent leadership Change Management Skills Workshop

9. The Planning Process • Stakeholder Analysis • Develop Strategies • Staffing Strategy • Communications Strategy • Change Management Strategy • Develop Integrated Project Plan • Execute Change Management Skills Workshop

10. Stakeholder Analysis Change Management Skills Workshop

11. Stakeholder Analysis Process • Identify Stakeholders • Analyze Needs and Wants • Identify Barriers to Change • Best Means for Communication • Ideas for Participation and Leveraging their Skills and Knowledge Change Management Skills Workshop

12. Use a Simple Table Change Management Skills Workshop

13. Merger Scenario • You are the owner of a privately owned business in Halifax with a significant market share in Ontario, Quebec and Atlantic. You have worked out a deal with a Calgary based company with products in the same sector (but not a competitor) to merge into a Canada-wide public company. There are about 200 employees in each company. Your operations overlap in the Ontario and Quebec markets, each with sales and distribution offices in Toronto, London, Montreal, and Quebec. Your primary assumptions for this merger are to increase market share for each product line while at the same time improving costs by consolidation of some assets and reduction in overheads. You expect some reduction in total staff at first but you anticipate that the new company will grow at a rate of at least 10% per year after the merger is complete. Change Management Skills Workshop

14. Who are the Stakeholders? • Executive Management • Management • Employees • Customers • Shareholders • Distributors • Retailers Change Management Skills Workshop

15. Exercise One – Stakeholder Analysis • For your assigned Stakeholder group complete the analysis: • Analyze Needs and Wants • Identify Barriers to Change • Best Means for Communication • Ideas for Participation and Leveraging their Skills and Knowledge Change Management Skills Workshop

16. Strategies Change Management Skills Workshop

17. Staffing Strategy • Are there going to be jobs lost? If so, how many? • How will you decide who gets the jobs in the new organization structure? • Who will decide if I am going to get fired or not? • When and how will I know what is going to happen to me? • If I get to stay will my pay and benefits change? • What happens if I get fired? • How will I know that you are going to treat me fairly? • Who do I go to if I have questions about my employment? • Could my job be moving to another city? If so, will you help me move? • How will you reduce the risk of constructive dismissal and legal challenges? Change Management Skills Workshop

18. Communications Strategy • Why is this happening? • What are the benefits that you hope to achieve? • Where can I go to find out more information about the changes? • What means will you be using to communicate this to all the stakeholders? • What are the key messages that everyone needs to know by heart? • When and how often will you be providing more information? • What role will leaders play in the communications plan? • How will stakeholder feedback be gathered? • How will the effectiveness of your communications be measured? • What protocol will be used with external media? Change Management Skills Workshop

19. Change Management Strategy • How will you come up with the new organization structure? • How are you going to figure out what changes will be made to our business processes? • What resources (financial and human) will be required to do the transition work? • How will I keep day to day operations humming while all this is going on? • What expertise will I need that I don’t have to carry out the transition? • Which systems will we be using to run the organization going forward? • How will you help me to learn the skills I need to do my new job? • Who will be training me? • When will I stop doing my current job and move into my new role? • How can I learn more about the overall changes that are occurring? • Will I get a chance to participate in the development of the new roles and processes? Change Management Skills Workshop

20. Exercise Two – Developing Strategies • Group 1: Staffing Strategy – Come up with a Strategy for how jobs will be filled in the resulting organization • Come up with alternatives • Pick the one that makes the most sense for the scenario • Group 2: Communications Strategy – Develop 2 Key Messages • Come up with what you think will be the most frequently asked questions • Choose 2 and develop key messages for each • Group 3: Change Management Strategy – Come up with a strategy to determine the location(s) of Head Office functions for the combined organization • Come up with alternatives • Pick the one that makes the most sense Change Management Skills Workshop

21. Integrated Planning Change Management Skills Workshop

22. Integrated Planning • Why integrated planning? • Systems facilitate communications • Communications facilitate participation • Participation enhances training • Business processes, systems and job descriptions are intertwined • External stakeholders will notice as soon as the left and right hands are not acting together Change Management Skills Workshop

23. Achieving Integrated Planning • Have a cross company Executive Steering committee • Have a dedicated Project Team to lead the transition • Provide project management support to management through the dedicated project team • Have HR and Communications as key members of the Executive Steering Committee and the Project Team • Identify milestones and key indicators and report on them regularly Change Management Skills Workshop

24. Questions? Change Management Skills Workshop

25. Thank You