Change Management Framework

Change Management Framework

Debunking the Myths2

Myth: Change is driven by company-wide initiatives such as “corporate culture” programs and training courses.

Myth: Change should start with attitudes and behaviors at the individual level.

Effective Transformational Change is not brought about by creating programs focused on changing

culture, attitudes or behaviors

The road to transformational change . . .

3

The first step is to articulate the Strategic Vision.

StrategicVision

Implementation:Driving Change

through theOrganization

Beyond the vision4

It’s about achieving “task alignment”

Making a vision come to life with clear strategies, initiatives and well-defined work activities

Grouping work activities into refined or redefined jobs

Putting the right people in those jobs and giving them direction...people only change behavior if their work changes

Task alignment requires great discipline

5

Three core phases:

DEFINE CORE CAPABILITIES

SYSTEMS

& TOOLS

PHASE IIORGANIZATIONAL DESIGN

PHASE ISTRATEGY DEVELOPMENT

JOBS AND STRUCTURE

ST

RA

TE

GY

DEVELOP BUSINESS PROCESSES, ACTIVITIES

AND PERFORMANCE REQUIREMENTS

TRANSITION

PHASE IIITRANSITION

ASSESS & SELECT TALENT

Activity Definition & Sequencing Investment Allocation & Re-Allocation

INVEST IN SYSTEMS

& TOOLS OR HUMAN

CAPITAL?

Phase 1 – Strategy Development6

Strategy – What is the future state that you want to achieve? What are the specific, measurable strategies or objectives for the business? Are the strategies sufficiently defined in order to identify the work activities associated with them?

Core Capabilities – What organizational capabilities will be critical for achieving the strategy? What must the organization be able to do well?

ST

RA

TE

GY



ST

RA

TE

GY

Phase II – Organizational Design7

SYSTEMS

& TOOLS


JOBS AND STRUCTURE




Activity Definition & Sequencing Resource Allocation & Re-Allocation

INVEST IN SYSTEMS

& TOOLS OR HUMAN

CAPITAL?

Develop Business Processes and Activities – What are the processes that must be designed and implemented in order to achieve the strategic objectives? What metrics will be used to measure these activities?

Performance Requirements – How will we know we have been successful? How will the organization distinguish itself from competitors?

Resource Allocation – What allocation or re-allocation decisions will we need to make to effectively support these activities and processes?

Systems and Tools – What systems and tools will be put in place to support the business strategy and to perform critical business activities?

Jobs and Structure – What roles will be necessary to carry out the critical business activities? How will the roles be effectively and efficiently organized?

Phase III - Transition8

Transition – What activities are required to transition to the future state? How will new processes, roles, and systems be implemented? How will people be set up to perform successfully in their new or changed roles? How will you deal with resistance?

TRANSITION

PHASE IIITRANSITION

Some level of Resistance is a natural part of change

So what is Change Management?9

People Management – Setting individual performance expectations, assessing and selecting, training, redefining compensation and rewards, and supporting individuals so that they may perform effectively

Communication – Delivering the right messages, to the right people, at the right times so that they are able to align their work with the strategy

Risk and Impact Management – Identifying and managing the risks and impacts associated with the change

Leadership and Sponsorship – Engaging leadership to drive change throughout the organization

People Management

Lea

der

ship

&

Sp

on

sors

hip

Risk and ImpactManagement

Co

mm

un

ication

People ManagementCHANGE

MANAGEMENT

A set of practices and tools that help bring

about task alignment

Change Management practices support, but don’t drive Transformational

Change10


SYSTEMS

& TOOLS



JOBS AND STRUCTURE

ST

RA

TE

GY



TRANSITION

PHASE IIITRANSITION



INVEST IN SYSTEMS

& TOOLS OR HUMAN

CAPITAL?

Transformational Change engages every level of the organization

11

All Employees

TransitionOrganizational

DesignStrategy

Development

Senior Leadership

Management

Why Change Management12

??

Significant change creates significant disruption

13

Disruption in:

Significant change often causes a Performance “Dip”

14

Time

Scenario 1: No Change Implementation

Return on Investment (ROI)

Performance Deficit due to Implementation

Performance

Organizational Equilibrium

(current state)

Implementation of Initiatives Begin

Return to Equilibrium

What causes the “dip”?15

Poor Strategy Development Lack of a clear vision

or strategy Senior leadership

unwilling to take calculated business risks

Insufficient ownership and accountability for vision and strategy


SYSTEMS

& TOOLS



JOBS AND STRUCTURE

ST

RA

TE

GY



TRANSITION

PHASE IIITRANSITION



INVEST IN SYSTEMS

& TOOLS OR HUMAN

CAPITAL?


Poor Organization Design The wrong people involved in

the organization design work Work activities and

performance requirements not sufficiently defined to make effective resource allocation decisions possible

Technology, process and intellectual capital not utilized to speed processes and take costs out

Job roles and structure not designed effectively to support work activities or enable individual success


SYSTEMS

& TOOLS



JOBS AND STRUCTURE

ST

RA

TE

GY



TRANSITION

PHASE IIITRANSITION



INVEST IN SYSTEMS

& TOOLS OR HUMAN

CAPITAL?


Poor Transition Management Poor project management

and risk planning Lack of rigor in selecting

people Employee skill sets do not

align with future roles “Sacred Cows” – not

willing to make the tough people calls

Employees not properly trained for future role

Individual performance expectations not defined or measured

Compensation not aligned with role requirements


SYSTEMS

& TOOLS



JOBS AND STRUCTURE

ST

RA

TE

GY



TRANSITION

PHASE IIITRANSITION



INVEST IN SYSTEMS

& TOOLS OR HUMAN

CAPITAL?

You can decrease the performance dip

18

Time

Scenario 2:Proactive Change Implementation

Return on Investment (ROI)

Performance

Organizational Equilibrium

(current state)

Implementation of Initiatives Begin

Return to Equilibrium

Performance Deficit due to Implementation

What can you do todecrease the performance dip?

19

Use a structured change management process in each phase of the transformational change

People Management

Lea

der

ship

&

Sp

on

sors

hip

Risk and ImpactManagement

Co

mm

un

ication

People ManagementCHANGE

MANAGEMENT

Structured Change Management Actions

20

PHASE 1 - Strategy Development

Engage group of leaders in defining the vision

Use structured visioning process

Conduct stakeholder analysis

Define measures of success

Develop plan for engaging stakeholders

Define specific roles in the change effort

Identify who to communication with, about what, and when

Develop plan for building the Organization Design

ST

RA

TE

GY



ST

RA

TE

GY


21

PHASE 2 - Organization Design

Engage critical stakeholders and

subject matter experts

Use structured, facilitated process

to ensure objectivity and to

decrease impact of resistance

Build strong change network for

communication and stakeholder

management

Share what you know…it’s usually

not necessary to wait until it’s

fully baked

SYSTEMS

& TOOLS


JOBS AND STRUCTURE




Activity Definition & Sequencing Resource Allocation & Re-Allocation

INVEST IN SYSTEMS

& TOOLS OR HUMAN

CAPITAL?


22

Phase 3 – Transition Invest in strong and influential project

management Conduct real risk assessment and

develop risk plan accordingly Objectively assess current talent against

future requirements – both individuals and overall bench strength

Engage a selection team that will make the tough calls

Identify knowledge and skills required; develop and implement plan for training in new roles and new skills

Clearly define and communicate individual performance expectations and measures

Align compensation plan with the strategy and critical business activities

Measure and reward individuals for performance in new roles

TRANSITION

PHASE IIITRANSITION

Key Points to Remember23

A clear and tangible strategy is a must…without it, there’s nothing to transform to

Engaging key people will build confidence and enthusiasm for the transformation

You’ll have to make some tough calls on people…”laggards” will stall the effort and drive costs up substantially

You don’t have to do everything at once…build momentum by starting with something meaningful but manageable

Be prepared to provide significant support and direction to employees throughout the transition phase