The People Side of Change

1. The People Side of Change APSAC Professional Development Presentation

2. Getting Started • How many people take pride in the way you do your work today? • How many people believe that the work you do everyday directly contributes to Purdue’s success? • Look to the person next to you and thank them for a job well done.

3. Employees Have Found Meaning in Their Work • Most employees feel their work matters -- that they’re contributing to something larger than themselves. The majority of our employees have found a sense of meaning in the work they do today.

4. Change Readiness and Comfort • Comfort with the current state • Do not underestimate the power of “comfort” with how things are today • The natural reaction to change is pause and reflection “Many change agents are surprised by the reaction to change, when in fact they should plan for many reactions.”

5. Three Phases of Change Current State Transition State Future State

6. Current State • Employees generally prefer the current state Current State Transition State Future State

7. Future State • The future state is unknown to the employee. Current State Transition State Future State

8. Transition State • The transition state creates stress and anxiety Current State Transition State Future State

9. Today’s Discussion • What is change management? • How do we manage change from both the individual and organizational perspective? • How do we manage readiness?

10. What is Change Management? A structured process and set of tools for leading the people side of change.

11. Understanding Impact of Change on Everyday Jobs

12. Change Management Maturity Model (Prosci) Change management competency is evident Change management competency is evident Continuous Continuous Highest Highest in all levels of the organization and is part of in all levels of the organization and is part of process process probability of probability of Organizational Organizational Level 5 Level 5 the organization’s culture and intellectual the organization’s culture and intellectual improvement in improvement in success success competency competency property. property. place place Organizational Organizational Organization Organization - - wide standards and methods wide standards and methods Selection of Selection of Level 4 Level 4 are broadly deployed for managing and are broadly deployed for managing and common approach common approach standards standards leading change leading change Multiple Multiple Comprehensive approach for managing Comprehensive approach for managing Examples of best Examples of best Level 3 Level 3 change is being applied in multiple projects change is being applied in multiple projects practices evident practices evident projects projects Isolated Isolated Some elements of change management are Some elements of change management are Many different Many different Level 2 Level 2 being applied in isolated projects being applied in isolated projects tactics used tactics used projects projects inconsistently inconsistently Adhoc or Adhoc or Little or no change management applied Little or no change management applied People People - - dependent dependent Highest rate of Highest rate of Level 1 Level 1 without any formal without any formal project failure, project failure, absent absent practices or plans practices or plans turnover and turnover and productivity loss productivity loss

13. Blending Organizational and Individual Approach • At an organizational level • Using a structured change management approach • Engaging sponsors in the change process • At an individual level • Building change competency of managers and supervisors • Equipping employees to have the right conversations about change and how the change impacts them

14. OnePurdue’s ComprehensiveChange Management Approach Phase 1 – Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Phase 2 – Managing change Develop change management plans Take action and implement plans Phase 3 – Reinforcing change Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes

15. Phase 1 – Preparing for Change – assesses the current state and prepares for the transition. Phase 1 Preparing for change Assessing the Assessing the Creating a change Creating a change Sizing the change Sizing the change Define your change organization organization management strategy management strategy management strategy Prepare your change management team Assessing team Assessing team Preparing the change Preparing the change Acquiring resources Acquiring resources Develop your sponsorship model competencies competencies management team management team Phase 2 – Managing change Developing sponsor Developing sponsor Identifying sponsors Identifying sponsors Assessing sponsor Assessing sponsor Develop change management plans models and enabling models and enabling and stakeholders and stakeholders competencies competencies sponsors sponsors Take action and implement plans Phase 3 – Reinforcing change Collect and analyze feedback Outputs: Sizing the change profile Diagnose gaps and manage readiness Organizational attributes profile Change management strategy guidelines Implement actions and Change management team structure celebrate successes Sponsor structure and responsibilities

16. Phase 1 Preparing for change Define your change management strategy Desired outcomes Prepare your change management team Awareness Develop your sponsorship model Desire A D K A R Phase 2 Managing change Customized Develop change management plans Organizational attributes Change characteristics activity Knowledge design Take action and implement plans Ability Phase 3 Reinforcing change Collect and analyze feedback Reinforcement Diagnose gaps and manage readiness Implement actions and celebrate successes Outputs: Communications plan Supervisory coaching plan Training plan Phase 2 -- Managing Change -- can be linked to the transition phase. Readiness management plan Sponsor roadmap Project team activities Master schedule

17. Phase 1 Preparing for change Define your change Phase 3 – Reinforcing Change -- provides a framework for assessing and reinforcing progress within the future state. management strategy Prepare your change management team Develop your sponsorship model Phase 2 – Managing change Develop change management plans Auditing compliance Assessing effectiveness Analyzing change Analyzing change Take action and implement plans Listening to employees Listening to employees with new processes, of new processes, management management and gathering feedback and gathering feedback systems and roles systems and roles effectiveness effectiveness Phase 3 – Reinforcing change Collect and analyze feedback Identifying root causes Identifying root causes Enabling sponsors and Enabling sponsors and Developing corrective Developing action plans and pockets of coaches to manage coaches to manage related to readiness action plans resistance readiness resistance Diagnose gaps and manage readiness Implement actions and celebrate successes Celebrating early Celebrating early Conducting “After action Conducting “After action Implementing corrective Implementing action plans successes and successes and reviews” and reviews” and action reinforcing the change reinforcing the change transferring ownership transferring ownership

18. OnePurdue’s ComprehensiveChange Management Approach Phase 1 – Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Phase 2 – Managing change Develop change management plans Take action and implement plans Phase 3 – Reinforcing change Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes

19. Sizing the Change • Scope the Change(workgroup, department, division, enterprise) • Determine Number of Individuals Impacted • Define Change Type(policy, process, system, organization, job roles, etc.) • Determine Amount of Change(incremental improvement v. dramatic change)

20. Organizational Attributes • Value system and culture(adaptability to change) • Capacity for change(how much more change can the organization absorb) • Leadership styles and power distribution • Residual effects of past changes(past failures may result in “baggage” that burdens a future change) • Middle-management’s predisposition to change

21. Organizational Assessment Grid (60) (44, 50) Low Change Readiness Medium risk High risk Organizational (30) Attributes (50) Low risk Medium risk High Change Readiness (0) (30) (60) Small Incremental Large Disruptive Change characteristics (44)

22. OnePurdue’s ComprehensiveChange Management Approach Phase 1 – Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Phase 2 – Managing change Develop change management plans Take action and implement plans Phase 3 – Reinforcing change Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes

23. Awareness Desire Knowledge Ability Reinforcement ADKAR is useful for individual change management between supervisor and employees.

24. ADKAR • ADKAR is based on basic human truths that are present even in the absence of change. • Awareness of surroundings and self. • The need to have control over our life. • A quest for growth and knowledge. • A hope to make a meaningful contribution. • The need to be recognized and appreciated.

25. ADKAR • Awareness of the need for change (why). • Desire to support and participate in the change (our choice). • Knowledge about how to change (the learning process). • Ability to implement the change (turning knowledge into action). • Reinforcement to sustain the change (celebrating success).

26. Not Everyone Changes at the Same Pace Awareness Desire Knowledge Ability Reinforcement Person A Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person B Person B Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person C Person C Person D Person D Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person E Person E Awareness Awareness Awareness Awareness Desire Desire Desire Desire Knowledge Knowledge Knowledge Knowledge Ability Ability Ability Ability Reinforcement Reinforcement Reinforcement Reinforcement Person F Person F Person F Person F Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person G Person G Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person H Person H Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person I Person I

27. Employee Employee A A D D K K A A R R Notes/actions Notes/actions Adam Adam 4 4 5 5 2 2 2 2 4 4 Beverly Beverly 4 4 1 1 4 4 3 3 4 4 Charles Charles 2 2 2 2 3 3 3 3 4 4 Denise Denise 5 5 1 1 4 4 2 2 3 3 Create ADKAR Profile for Each Employee

28. Why are these channels Why are these channels critical for change management? critical for change management? Mapping ADKAR to Change Management Tools Communications Sponsor Roadmap Training Readiness Mgmt Supervisory Coaching

29. Mapping ADKAR cont. Communications Awareness Awareness These channels enable project team to facilitate organization through phases of ADKAR. Sponsor Roadmap Desire Desire Training Knowledge Knowledge Readiness Mgmt Ability Ability Reinforcement Reinforcement Supervisory Coaching

30. ADKAR Model • ADKAR describes the required phases that an individual will go through when faced with change. • ADKAR is a foundational tool for understanding “how, why and when” to use different change management tools.

31. OnePurdue’s ComprehensiveChange Management Approach Phase 1 – Preparing for change Define your change management strategy Prepare your change management team Develop your sponsorship model Phase 2 – Managing change Develop change management plans Take action and implement plans Phase 3 – Reinforcing change Collect and analyze feedback Diagnose gaps and manage readiness Implement actions and celebrate successes

32. Best Practices Approach to Reinforcing Change Preferred senders • Immediate supervisor Best Practices: • Repeat messages 5 to 7 times • Use face-to-face • Answer WIIFM (What’s In It For Me) • Utilize question and answer format • Understand their interpretation

33. Factors Influencing Employee’s Perspective on Change • Whether they trust the sender • What they have heard from others • How satisfied they are with work • Experience with other changes at work

34. Common Change Management Error • A common mistake change management teams make is to not train managers and supervisors in the basic principles and tools for managing change. These managers will be instrumental in your overall success.

35. OnePurdue Partners with the Supervisor One Purdue OCM is bringing aboard a communications manager 3/06/06 Communications Sponsor Roadmap Consultation on how to utilize critical change management tools 04/03/06 Training Readiness Mgmt Consultation on how to utilize critical change management tools 04/03/06 Supervisory Coaching

36. Today’s Discussion • Understanding three phases of change • (Current, Transition & Future) • Change management is a structured process and set of tools for leading the people side of change. • Individual change is managed through the ADKAR model. • Supervisors are the lynchpin to change management success.