Change Management

1. Change Management • Objectives of this session • To create awareness of change management.

2. What does it mean to “manage change”? • At an organisational level • Using a structured change management process • Creating the necessary coalition of sponsors • At an individual level • Building change competency into managers and supervisors • Equipping employees to have the right conversations about change and how the change impacts them The goal is to manage employee and management resistance to change.

3. Change resistant Medium risk High risk Organisational Attributes Low risk Medium risk Change - -able Small Large Incremental Disruptive Change characteristics Risk assessment

4. Organisational change management • Three phases of change: • Prepare • Implement • Reinforce

5. Types of changes • Business process design • 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

6. Greatest contributors to success • Effective sponsorship • Buy-in from front-line managers and employees • Exceptional team • Continuous & targeted communication • Well planned and organized approach

7. Greatest change management obstacles • Employee and staff resistance • Middle management resistance • Poor executive sponsorship • Limited time, budget and resources • Corporate inertia and politics

8. Using the ADKAR Model ADKAR was developed by Prosci Research after studying the change patterns of more than 1000 companies. ADKAR represents the five phases of change that must be achieved for the change to be a success.

9. ADKAR Model ADKAR is easy to remember and is a foundational tool for understanding “how, why and when” to use different change management tools

10. The ADKAR Model* Awarenessof the need for change. Desireto support the change. Knowledgeon how to change. Abilityto implement new skills. Reinforcementto cement the change. Exercise – ADKAR Worksheet

11. Awareness Desire Knowledge Ability Reinforcement Connecting change management activities with desired business results. Change management channels ADKAR phases of change Communications Sponsor roadmap Training Resistance mgmt Coaching

12. Not everyone changes at the same pace

13. Post - implementation Successful Change Implementation Phases of a change project Concept and Design Business need Awareness Desire Knowledge Ability Reinforcement Phases of change for employees Our goal

14. Potential pitfalls – Speed of Change Ineffective change management Post - implementation Failure A Success Implementation Ineffective project management Phases of a change project Concept and Design Failure B Business need Awareness Desire Knowledge Ability Reinforcement Phases of change for employees

15. Problem or opportunity Planning Business improvement Design elements Development Implementation

16. Assessments Team and sponsors Change Communications management elements Coaching and feedback Resistance management

17. Business improvement elements Change management elements

18. Business improvement elements Change management elements

19. Awareness Desire Knowledge Ability Reinforcement These channels enable a project team to facilitate an organisation through a change process Change management channels ADKAR phases of change Communications Sponsor roadmap Training Resistance mgmt Coaching

20. What effective change managers do differently with regard to communication • More communications (more frequent) • Begin communications sooner in the project • More face-to-face communications • More communications from executive sponsors and senior managers • More about the impact of the change on the employees

21. Communication Plan - cont Successful communications are: • honest • frequent and constant throughout the entire program • consistent • open, transparent and safe

22. Communication Plan – cont* • Communicate, Communicate, Communicate, Communicate, Communicate, Communicate, Communicate: • People need to hear a message between 5 and 7 times before it sticks

23. Message guidelines for employees • Focus on the impact of the change on the employee. • Be clearabout what you know now and what you do not know now. • Let employees know whenmore information will be available. • Be clear how employees can provide feedbackabout the change.

24. What do sponsors do?* Role #1 - Participate actively and visibly throughout the project. Role #2 - Build a coalition of sponsorship with peers and managers. Role #3 - Communicate effectively with employees.

25. Top-three most common executive sponsor mistakes Mistake #1 - Failed to personally engage as the sponsor for the change. Mistake #2 - Changed priorities mid-stream. Mistake #3 - Did not build a sponsorship coalition.

26. Sponsor/stakeholder assessment map Typical sponsor map for poorly managed changes. – Asset – Neutral – Barrier

27. Training • Training is a critical tool for building knowledgeand abilityin your organization during a change. Training should be focused on the specific skills and behaviours that are necessary for the change to be a success. • Training will have two focuses: • Training on how to be successful during the change • Training on how to be successful after the change

28. Resistance and comfort • Comfort and the status quo • Do not underestimate the power of “comfort” with how things are today • The natural reaction to change is resistance • Your goal is not to eliminate resistance “Many change agents are surprised by resistance to change, when in fact they should expect it and plan for it.”

29. Address the root cause of resistance to change proactively Why resistant to change? Disconnect with their strategy, financial objectives or compensation Executives Mid-level managers Loss of power or control, and overload of current responsibilities Employees Lack of awareness of why the change is happening and “WIIFM” Comfort with the status quo and fear of the unknown

30. Top-ten steps for managing resistance • Listen and understand objections • Listen and understand objections • Remove barriers • Provide simple, clear choices and consequences • Create hope

31. Top-ten steps for managing resistance continued • Show the benefits in a real and tangible way • Make a personal appeal • Convert the strongest dissenters • Create a sacrifice • Use money or power

32. Coaching Plan • Your coaching plan defines how you will support managers and supervisors during the change and how they will interact with front-line employees. Your role is to fully enable these managers and supervisors to: • sponsor the change • support their employees during the change • support their employees in the new, changed environment.

33. Were you paying attention?........ • Prosci’s change process can be characterised by which three phases of change? • What does ADKAR stand for? • Who should deliver the change messages? • How many times does a message have to be heard before it’s internalised?

34. Were you paying attention?..cont • What are three sponsor roles? • Three common mistakes made by executives are? • What is a key action you can take when coaching managers? • Name 5 ways to manage resistance to change?