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Change Management




April 20, 2012

Avoot Wannvong
Deputy Secretary-General
The Office of the Public Sector Development Commission
In your view,
       what is your Change Management?
An Overview on Change Management
What is Change Management?


              change management:




the process that facilitates and accelerates the rate of change acceptance.
It makes the transition from the current state to the desired state easier
by informing and preparing the impacted individuals and groups.
Change Management
The High Cost of Implementation Failure

   Each time an implementation fails
    to achieve its stated human and
    business objectives on time and                       Resources
    within budget it incurs both short                   are wasted &
                                                           business
    and long term costs.                                  objectives
   The most significant cost is in the                     are not
                                                           achieved
    lower quadrant.
                                                                              Morale
   We must manage resistance to            Strategies
                                                                            suffers and
                                               not
    achieve aggressive time frames for    accomplished
                                                                          job security is
    implementation.                                                        threatened

   If we do not manage resistance to                    Confidence in
                                                           leadership
    this change, it slows down                            decreases &
    implementation of nest change.                        next change
                                                         is more likely
   Ultimately, resistance from                               to fail
    employees will impact our ability
    to meet customer needs.
Change Management Commitment Curve
From Awareness to Ownership
   Effective change management enables and accelerates stakeholder groups toward commitment
   to the organizations vision. Targeted change initiative activities aim to move stakeholders through
   the commitment curve


      High
   (Ownership)
                                                                                                                           Ownership
                                                                                                                           Individuals make the change their
                                                                                                                           own. Changes become the way
         DEGREE OF COMMITMENT




                                                                                                                           work is done now - the new status
                                                                                                                           quo.



                                                                                                          Adoption
                                                                                                          Individuals are actively participating
                                                                                                          in the Project and are acquiring the
                                                                                                          skills necessary for change.
                                                                                   Willingness to Accept
                                                                                   Individuals are willing to work with and
                                                         Understanding             implement changes and are ready to
                                Awareness                Individual shave a sound  acquire the skills to adapt to that change.
      Low                       Individuals are aware understanding of the Project benefits
   (Awareness)                  of basic scope and       and the change required of them.
                                concepts of the Project.


                                                                                   TIME
The Importance of Communication in Change Management
Communicate, Communicate, Communicate


                                                                                               Communication is
                                                                                               important, but
                                                                                               how it is received
                                                                                               is even more
                                                                                               critical!
         How the customer      How the Project        How the Analyst    How the Programmer
         explained it          Leader understood it   designed it        wrote it




         How the project was   What operations        How the customer   How it was supports   What the customer
         documented            installed              was billed                               really needed
Change Management Framework
Tackling All the Components of Change
       Effectively tackling all of the issues associated with an organizational transformation doesn't
       happen by accident. It requires a comprehensive, structured approach that addresses every
       aspect of the challenge and aligns with the organization's overall business strategy.

                     Leadership agrees and articulates a
                     common vision and set of business
                     objectives for the project.           Leadership
                                                           Alignment                     Stakeholders with authority,
                                                                                         power and/or influence lead and
Employees learn to use                                                                   visibly support the change.
the new system as part
of their jobs.             Training &
                                                                                    Stakeholder
                          Performance
                            Support                                                 Management
                                                             Change
                                                           Management



                                        Communication                    Change
  Employees are well-informed           & Engagement                    Readiness        Assess areas of resistance and
  about and involved in the change.                                                      determine where leaders and
                                                                                         employees stand in regards to
                                                                                         accepting change.
Change Management Approach
The Entire Lifecycle of the Change Agenda
                     Plan &
                                           Design                   Build                  Deliver               Operate
                     Analyze
Leadership        Assess Leadership   Develop Leader          Support Leadership in Delivery of Action Plans
Alignment                             Specific Action Plans


Stakeholder     Identify Key          Initiate Stakeholder    Reevaluate
Management      Stakeholder Groups    Action                  Stakeholder
                                                              Enrollment

                Develop Stakeholder                                                    Update Stakeholder
                Management Plan                                                        Plan and Implement
Change          Assess Readiness      Design Change Plans                              Support Change
Readiness


Communication   Assess Existing       Develop                                          Deliver Ongoing
& Engagement    Communication         Communication                                    Communications
                Mechanisms            Strategy

                                      Deliver Initial                                  Collect Feedback
                                      Communications
Training &      Develop End-User      Develop Course          Develop Instructor &     Deliver Training        Conduct Refresher
Performance     Training Strategy     Outlines                Student Materials                                Training As Required
Support
Change Management Approach
The Entire Lifecycle of the Change Agenda
     Thread                                                 Outcomes
                    Leaders sponsor and support initiative vision and imperative
    Leadership      Desired behaviours and reinforced
    Alignment       Approach for aligning HR Levers (job design, performance planning rewards & recognition)

                    Appropriate stakeholder groups identified
   Stakeholder      Understand influence and impact of each key stakeholder group
   Management


                    Clear understanding of the organizations readiness for change
     Change         Evaluate the risk factors associated with the change imperative
    Readiness


                    Clear understanding of the who, what, where, when, and how of communications
   Communication    Communications aligned to vision and imperative
   & Engagement     Plan for smooth and timely communications


    Training &      End users have the skills and competencies needed to use the new system when it goes live
   Performance
     Support
Leadership Alignment
The Role of Leadership in the Change Process
   Leaders play key roles in facilitating change in each of the different stages of change management. They
   help with ensuring staff understand what will change, keeping staff motivated, and preparing staff with
   the tools and supports they need to be successful in the new environment.

           Active Leadership is Essential in Each of the Different Stages of Change Management

                                                                                                   Implement and Sustain
                                                                                                           Implement and
                                                             Engage and Enable                                 sustain
                                                                                                           transformation
                                                                   Engage and
                    Initiate                                        enable the
                                                                   organization
                   Create climate
                     for change




           1             2               3               4              5               6                 7                 8

        Increase    Build Guiding   Get the Right   Communicate                    Create Short-
                                                                   Enable Action                     Don’t Let Up    Make it Stick
        Urgency        Teams           Vision         for Buy-In                    term Wins
Stakeholder Management
Understanding Your Stakeholders
         A stakeholder is a person or group of people internal or external to the organization that includes
         executives through hourly employees identified based on any of the following criteria:
          Owns a piece of the project
          Controls critical resources associated with the project
          Can potentially block the proposed change
          Must approve certain aspects of the proposed change
          Can influence another stakeholder

                                                                          Understand your Stakeholders – Impact Relationship Matrix
  Map was developed to classify stakeholders according to the project impact upon the stakeholder and how critical the stakeholder was
  to the success of the project.               Stakeholder Influence – Impact Relationship Map
         High
                                                     S2. Consult and Collaborate                                                  S1. Enlist and Engage
              Influence the stakeholder has on the
                success on the project outcomes




                                                     These stakeholder should be consulted and collaborated to rally              These stakeholder are leaders in the change process. It is important to
                                                     support and gain approval. This group have the authority to make             engage these stakeholder to build commitment and ownership. They
                                                     decision within the organization but they are not directly affected by       are key influencers and have the authority to make decisions and
  Influence




                                                     the project                                                                  proactively promote the project within their own business area

                                                     S4. Keep Informed                                                            S3. Involve and Inform

                                                     These stakeholder only need to be kept aware of general project              These stakeholders need to understand how they will be affected by
                                                     information. This group has no authority to make decisions and are not       the project and what is required of them in the change process
                                                     significantly impacted by the project

         Low
                                                     Low                                              Likely impact the project has on the stakeholder                                              High
                                                                                                                              Impact
Change Readiness
Is your Organization Ready for Change?
    The purpose of a Change Readiness Assessment (CRA) is to identify areas of resistance and to
    determine where leaders and employees stand in regards to accepting change.
     The CRA also identifies opportunities and barriers for project leadership to address
     Helps identify staff alignment issues
     Raises other critical operational elements that may impact large scale transformation objectives.

                                           Change Readiness Dimensions
  Readiness Dimensions                                                    Definitions
  Vision Focus                  Measures the extent to which stakeholders understand and can articulate what the project is trying
                                to achieve.
  Value Proposition             Measures the level of understanding of and the buy-in to the anticipated business benefits of the
                                project.
  Communication                 Measures the extent to which stakeholders are receiving key project information through
                                appropriate channels to increase understanding and buy-in to the project.
  Leadership/Sponsorship        Measures the level of visible and vocal support and quality of information being delivered by
                                leadership.
  Training and Development      Measures stakeholder’s commitment in build skill for new environment.

  Competing Initiatives         Measures the extent to which competing initiatives may impact the project by not giving it the
                                appropriate attention.
  Stakeholder Resistance        Measures the level of support for the project and identifies areas where additional change
                                management efforts are required.
  Organizational Alignment      Measures the level of understanding of the impacts the project will have on people strategy,
                                structure and processes.
Communication & Engagement
Communicate, Communicate, Communicate

  1. Restate vision,        State leadership view and what is expected
  business priorities       Convey reasons for difficult message and goals that organization is trying
                           to achieve
  2. Be visible, accessible  Keep an open door but also interact with others outside
                             Wander the halls
  3. Share information      Inform staff about the timing of message delivery
                            Be frank when you have no new information
  4. Communicate often,     Commit to clear two-way feedback opportunities
  openly, honestly          Feed and/or stop the rumour mill as necessary
  5. Plan messages          Strategically plan the communication objective, content, audience
                           and timing
  6. Anticipate inevitable  Prepare answers to the 5 “Ws” as well as “what’s next” and “what is in it
  questions                for me?”
                            Rehearse answering the questions in your head
  7. Take the pulse of      Talk regularly with staff at all levels (don’t neglect the middle layers)
  the organization          Work with them to manage the “buzz” and analyze indicators of success
Communication & Engagement
Communication Channel
   1. Think about communication channel in your organization.
   2. Advantage and disadvantage of each channel.
   3. Share your experience for type of message or occasion when you choose those channels.

                                          Communication Channel Mapping
                    High
                                              One-to-ones

                                                                     Meeting


                                                             Phone
                       Interactivity




                                                                          Print campaign

                                                                        Intranet

                                                                         E-mails

                                                      Reports             Newsletters

                    Low

                                       High                 Level of coverage              Low
Communication & Engagement
Communication Channel

                             Advantages                           Disadvantages                           Examples
  One-to-ones       Face-to-face; highest impact;         Time consuming; ad hoc; limited    1-2-1 with leads at start of each
                   involvement promotion; direct,         record                              phase
                   immediate feedback                                                          Informal weekly checks
  Meetings          Face-to-face; involvement             Time consuming                     Steering board meetings
                   promotion; direct; immediate                                                Team workshops
                   feedback; high impact
  Phone             Interactive; immediate feedback;      Time consuming; limited record     Interviews with external
                   potentially more cost effective than   of communication                    stakeholders
                   meetings                                                                    External ‘pulse checking’
  Print campaign    Consistent; prepared messages;        Limited interaction                Poster campaign
                   wide target audience reach;                                                 ‘Touchstone’ events
                   reinforces verbal communication
  Intranet          Consistent; prepared messages;        Dependent upon user interaction    ‘Money Out’ Programme Intranet
                   wide target audience reach;            for efficacy                        site
                   reinforces print media                                                      Executive fortnightly blog
  Newsletters       Consistent; prepared messages;        No interaction, static             Monthly programme newsletter,
                   wide target audience reach                                                 published to intranet
  E-mails           Consistent; prepared messages;        Limited interaction                Programme email address
                   wide target audience reach                                                  Status report updates
  Reports           Consistent; prepared messages;        No interaction                     Weekly programme team reports
                   practical reference source                                                  Quarterly executive summaries
Training & Performance Support
Empower your Workforce for Change
   With drastic transformation requires changes in skill-sets. Empowering your employers with the
   right capabilities will facilitate change and allow employees to be more open to the change
   requirements.
   Most of the training effort will be devoted to Workforce Transition related changes (e.g. changes
   in job profiles, roles and capabilities needs), and thus most of trainings become a responsibility of
   Workforce Transition team to handle.
   However, there also exist some non-job profile related changes. Numbers of these kind of
   changes maybe small, but they are still significant and deserve appropriate trainings (if needed)
   as well.
Q&A



Site Recommended:
http://www.deloitte.com/

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Change Management

  • 1. Change Management April 20, 2012 Avoot Wannvong Deputy Secretary-General The Office of the Public Sector Development Commission
  • 2. In your view, what is your Change Management?
  • 3. An Overview on Change Management What is Change Management? change management: the process that facilitates and accelerates the rate of change acceptance. It makes the transition from the current state to the desired state easier by informing and preparing the impacted individuals and groups.
  • 4. Change Management The High Cost of Implementation Failure  Each time an implementation fails to achieve its stated human and business objectives on time and Resources within budget it incurs both short are wasted & business and long term costs. objectives  The most significant cost is in the are not achieved lower quadrant. Morale  We must manage resistance to Strategies suffers and not achieve aggressive time frames for accomplished job security is implementation. threatened  If we do not manage resistance to Confidence in leadership this change, it slows down decreases & implementation of nest change. next change is more likely  Ultimately, resistance from to fail employees will impact our ability to meet customer needs.
  • 5. Change Management Commitment Curve From Awareness to Ownership Effective change management enables and accelerates stakeholder groups toward commitment to the organizations vision. Targeted change initiative activities aim to move stakeholders through the commitment curve High (Ownership) Ownership Individuals make the change their own. Changes become the way DEGREE OF COMMITMENT work is done now - the new status quo. Adoption Individuals are actively participating in the Project and are acquiring the skills necessary for change. Willingness to Accept Individuals are willing to work with and Understanding implement changes and are ready to Awareness Individual shave a sound acquire the skills to adapt to that change. Low Individuals are aware understanding of the Project benefits (Awareness) of basic scope and and the change required of them. concepts of the Project. TIME
  • 6. The Importance of Communication in Change Management Communicate, Communicate, Communicate Communication is important, but how it is received is even more critical! How the customer How the Project How the Analyst How the Programmer explained it Leader understood it designed it wrote it How the project was What operations How the customer How it was supports What the customer documented installed was billed really needed
  • 7. Change Management Framework Tackling All the Components of Change Effectively tackling all of the issues associated with an organizational transformation doesn't happen by accident. It requires a comprehensive, structured approach that addresses every aspect of the challenge and aligns with the organization's overall business strategy. Leadership agrees and articulates a common vision and set of business objectives for the project. Leadership Alignment Stakeholders with authority, power and/or influence lead and Employees learn to use visibly support the change. the new system as part of their jobs. Training & Stakeholder Performance Support Management Change Management Communication Change Employees are well-informed & Engagement Readiness Assess areas of resistance and about and involved in the change. determine where leaders and employees stand in regards to accepting change.
  • 8. Change Management Approach The Entire Lifecycle of the Change Agenda Plan & Design Build Deliver Operate Analyze Leadership Assess Leadership Develop Leader Support Leadership in Delivery of Action Plans Alignment Specific Action Plans Stakeholder Identify Key Initiate Stakeholder Reevaluate Management Stakeholder Groups Action Stakeholder Enrollment Develop Stakeholder Update Stakeholder Management Plan Plan and Implement Change Assess Readiness Design Change Plans Support Change Readiness Communication Assess Existing Develop Deliver Ongoing & Engagement Communication Communication Communications Mechanisms Strategy Deliver Initial Collect Feedback Communications Training & Develop End-User Develop Course Develop Instructor & Deliver Training Conduct Refresher Performance Training Strategy Outlines Student Materials Training As Required Support
  • 9. Change Management Approach The Entire Lifecycle of the Change Agenda Thread Outcomes  Leaders sponsor and support initiative vision and imperative Leadership  Desired behaviours and reinforced Alignment  Approach for aligning HR Levers (job design, performance planning rewards & recognition)  Appropriate stakeholder groups identified Stakeholder  Understand influence and impact of each key stakeholder group Management  Clear understanding of the organizations readiness for change Change  Evaluate the risk factors associated with the change imperative Readiness  Clear understanding of the who, what, where, when, and how of communications Communication  Communications aligned to vision and imperative & Engagement  Plan for smooth and timely communications Training &  End users have the skills and competencies needed to use the new system when it goes live Performance Support
  • 10. Leadership Alignment The Role of Leadership in the Change Process Leaders play key roles in facilitating change in each of the different stages of change management. They help with ensuring staff understand what will change, keeping staff motivated, and preparing staff with the tools and supports they need to be successful in the new environment. Active Leadership is Essential in Each of the Different Stages of Change Management Implement and Sustain Implement and Engage and Enable sustain transformation Engage and Initiate enable the organization Create climate for change 1 2 3 4 5 6 7 8 Increase Build Guiding Get the Right Communicate Create Short- Enable Action Don’t Let Up Make it Stick Urgency Teams Vision for Buy-In term Wins
  • 11. Stakeholder Management Understanding Your Stakeholders A stakeholder is a person or group of people internal or external to the organization that includes executives through hourly employees identified based on any of the following criteria:  Owns a piece of the project  Controls critical resources associated with the project  Can potentially block the proposed change  Must approve certain aspects of the proposed change  Can influence another stakeholder Understand your Stakeholders – Impact Relationship Matrix Map was developed to classify stakeholders according to the project impact upon the stakeholder and how critical the stakeholder was to the success of the project. Stakeholder Influence – Impact Relationship Map High S2. Consult and Collaborate S1. Enlist and Engage Influence the stakeholder has on the success on the project outcomes These stakeholder should be consulted and collaborated to rally These stakeholder are leaders in the change process. It is important to support and gain approval. This group have the authority to make engage these stakeholder to build commitment and ownership. They decision within the organization but they are not directly affected by are key influencers and have the authority to make decisions and Influence the project proactively promote the project within their own business area S4. Keep Informed S3. Involve and Inform These stakeholder only need to be kept aware of general project These stakeholders need to understand how they will be affected by information. This group has no authority to make decisions and are not the project and what is required of them in the change process significantly impacted by the project Low Low Likely impact the project has on the stakeholder High Impact
  • 12. Change Readiness Is your Organization Ready for Change? The purpose of a Change Readiness Assessment (CRA) is to identify areas of resistance and to determine where leaders and employees stand in regards to accepting change.  The CRA also identifies opportunities and barriers for project leadership to address  Helps identify staff alignment issues  Raises other critical operational elements that may impact large scale transformation objectives. Change Readiness Dimensions Readiness Dimensions Definitions Vision Focus Measures the extent to which stakeholders understand and can articulate what the project is trying to achieve. Value Proposition Measures the level of understanding of and the buy-in to the anticipated business benefits of the project. Communication Measures the extent to which stakeholders are receiving key project information through appropriate channels to increase understanding and buy-in to the project. Leadership/Sponsorship Measures the level of visible and vocal support and quality of information being delivered by leadership. Training and Development Measures stakeholder’s commitment in build skill for new environment. Competing Initiatives Measures the extent to which competing initiatives may impact the project by not giving it the appropriate attention. Stakeholder Resistance Measures the level of support for the project and identifies areas where additional change management efforts are required. Organizational Alignment Measures the level of understanding of the impacts the project will have on people strategy, structure and processes.
  • 13. Communication & Engagement Communicate, Communicate, Communicate 1. Restate vision,  State leadership view and what is expected business priorities  Convey reasons for difficult message and goals that organization is trying to achieve 2. Be visible, accessible  Keep an open door but also interact with others outside  Wander the halls 3. Share information  Inform staff about the timing of message delivery  Be frank when you have no new information 4. Communicate often,  Commit to clear two-way feedback opportunities openly, honestly  Feed and/or stop the rumour mill as necessary 5. Plan messages  Strategically plan the communication objective, content, audience and timing 6. Anticipate inevitable  Prepare answers to the 5 “Ws” as well as “what’s next” and “what is in it questions for me?”  Rehearse answering the questions in your head 7. Take the pulse of  Talk regularly with staff at all levels (don’t neglect the middle layers) the organization  Work with them to manage the “buzz” and analyze indicators of success
  • 14. Communication & Engagement Communication Channel 1. Think about communication channel in your organization. 2. Advantage and disadvantage of each channel. 3. Share your experience for type of message or occasion when you choose those channels. Communication Channel Mapping High One-to-ones Meeting Phone Interactivity Print campaign Intranet E-mails Reports Newsletters Low High Level of coverage Low
  • 15. Communication & Engagement Communication Channel Advantages Disadvantages Examples One-to-ones  Face-to-face; highest impact;  Time consuming; ad hoc; limited  1-2-1 with leads at start of each involvement promotion; direct, record phase immediate feedback  Informal weekly checks Meetings  Face-to-face; involvement  Time consuming  Steering board meetings promotion; direct; immediate  Team workshops feedback; high impact Phone  Interactive; immediate feedback;  Time consuming; limited record  Interviews with external potentially more cost effective than of communication stakeholders meetings  External ‘pulse checking’ Print campaign  Consistent; prepared messages;  Limited interaction  Poster campaign wide target audience reach;  ‘Touchstone’ events reinforces verbal communication Intranet  Consistent; prepared messages;  Dependent upon user interaction  ‘Money Out’ Programme Intranet wide target audience reach; for efficacy site reinforces print media  Executive fortnightly blog Newsletters  Consistent; prepared messages;  No interaction, static  Monthly programme newsletter, wide target audience reach published to intranet E-mails  Consistent; prepared messages;  Limited interaction  Programme email address wide target audience reach  Status report updates Reports  Consistent; prepared messages;  No interaction  Weekly programme team reports practical reference source  Quarterly executive summaries
  • 16. Training & Performance Support Empower your Workforce for Change With drastic transformation requires changes in skill-sets. Empowering your employers with the right capabilities will facilitate change and allow employees to be more open to the change requirements. Most of the training effort will be devoted to Workforce Transition related changes (e.g. changes in job profiles, roles and capabilities needs), and thus most of trainings become a responsibility of Workforce Transition team to handle. However, there also exist some non-job profile related changes. Numbers of these kind of changes maybe small, but they are still significant and deserve appropriate trainings (if needed) as well.