Drive Change (Change Management)

Prepared by

Nesreen Nasr El Deen

Course Objectives
By the end of the training program, you will be able to :

• Define Change Management

• Analyze Reasons for failing change efforts

• Outline the Process for handling change effectively

• Develop a personal plan

4
Food For Thought
Think about a project at your organization:
• What percentage of its benefits depend on people
changing the way they work?
• Do you have the support in place to help them make
this change?
What is Change Management?

People side of
change
Change management is

The process, tools and techniques to manage the

people-side of change to achieve the required business
outcome.
Adapted from Prosci 2008
Primary reasons for Change Management

• Manage resistance to change

• Increase probability of success

• Reduce transition time

Adapted from Prosci 2008

Consequences of not managing the people side of change

• Lower productivity
• Passive resistance
• Active resistance
• Turnover of valued employees

Adapted from Prosci 2008

Consequences of not managing the people side of change

• Disinterest in the current or future state

• Arguing about the need for change
• More sick days
• Change not fully implemented

Adapted from Prosci 2008

Consequences of not managing the people side of change

• People finding work arounds

• People revert to the old way of doing things
• The change being totally scrapped
• Divides are created between ‘us’ and ‘them’

Adapted from Prosci 2008

Consequences of not managing the people side of change

• People finding work arounds

• People revert to the old way of doing things
• The change being totally scrapped
• Divides are created between ‘us’ and ‘them’

Adapted from Prosci 2008

How Does Change Mgmt Impact Employees?
Successful Implementation of CM
Change Management happens at three levels
Why Change Fails
Top barriers in major change programs
• Competing resources 48%
• Functional boundaries 44
• Lack of change skills 42
• Middle management 38
• Long IT lead times 35
• Communication 34
• Employee resistance 33
• Initiative fatigue 32
• Unrealistic timetables 31
source: PriceWaterhouseCoopers
Stages of Change
What to Expect from Change
• No matter how positive , promising or proactive the change is,
expect a sense of loss
• No matter how competent and committed stakeholders are ,
expect a sense of confusion
• No matter how loyal employees are, expect some initial
skepticism and an increase in “me” focus
“Positive” Response to Change

Informed Hopeful Realism

Pessimism
(Hope) Informed
(Doubt)
Optimism
(Confidence)
Uniformed
Optimism Completion
(Certainty) (Satisfaction)
Responses to Change
“Negative Responses to change”
Active Acceptance
Anger

R
e Bargaining
s
i Stability
s
t Denial
Testing
a Immobilization
n
c
e
Depression

Passive Time
Individual Change Response
Denial
P Commitment
r
o
d
u
c
t
i
v
i
t
y

Resistance Exploration

Adapted from Kubler -Ross

Recognizing the Individual Change Response
Denial
P Commitment
r What you see
What you Hear
What you See
o Indifference
Silence
What you hear
Future
d Disbelief
It will never happen
Orientation How can I contribute
u Avoidance
It wont affect me
Initiative Lets get on with it
c Self-efficiency
t Confidence
i What you see
v What you see What you Hear Energy What you hear
i Anger It wont work Risk taking Optimism
t Complaining It used to be… Tentativeness
I’ve got an idea
y Glorifying the The data is Impatience
Lets try…
past flawed.. Activity without
focus What if ….
Skepticism
Unwillingness to Resistance Exploration
participate

Adapted from Kubler -Ross

Summary
• There are four typical stages of change
• Denial
• resistance
• Exploration
• Commitment
• All these stages are normal and expected
• Be sure to plan for and manage all stages, especially
Resistance.
Individual Change Process
• Individuals will move through the process at different
speeds

• Your role is to effectively maximize the speed through

the change process, reducing the time spent in Denial
and Resistance
Making Change Succeed
Factors that helped successful companies achieve their goals:
Good Communication 100%
Strong mandate by senior management 95
Setting intermediate goals and deadlines 95
Having an adaptive plan 91
Having access to adequate resources 86
Demonstrating urgency of change 86
Setting performance measures 81
Delivering early , tangible results( quick wins) 76
Involving customers and suppliers early 62
source : PriceWaterhouseCoopers
Organizational change is represented as three states of change

Current Transition Future

state state state

How things are How to move How things will

done today? from current to be done
future? tomorrow?

Adapted from Prosci 2008

The organization’s future state is a collection of many individual
future states
Current Transition Future

Organization
Current Transition Future

Current Transition Future

Future
Current Transition Future

Current Transition Future

Current Transition Future

Adapted from Prosci 2008

Context for change
• Organizational transformations can be disruptive
Before
Organizational
Established systems During and
effectiveness Solidified culture
After
High level of
effectiveness Disruptions to leader ship
& systems

Transform Organizational
ation Point nervousness
Reduced effectiveness

Time
Handling Change ( The Process)
1. Readiness assessments
2. Communication and communication planning
3. Sponsor activities and sponsor roadmaps
4. Coaching and manager training for change management
5. Training and employee training development
6. Resistance management
7. Data collection, feedback analysis and corrective action
8. Celebrating and recognizing success
9. After-project review
1. Readiness Assessments
• Assessments are tools used by a change management team
or project leader to assess the organization's readiness to
change.
• Readiness assessments can include organizational
assessments, culture and history assessments, employee
assessments, sponsor assessments and change assessments.
• Each tool provides the project team with insights into the
challenges and opportunities they may face during the
change process. What to assess:
Assess the Scope of the Change
• How big is this change?

• How many people are affected?

• Is it a gradual or radical change?

Assess the Readiness of the Organization Impacted by the Change:
• What is the value-system and background of the impacted
groups?
• How much change is already going on?
• What type of resistance can be expected?
Case : Why is Change Necessary?
• To survive in today's changing market
• PCA’s can be seen / treated as a commodity
• To keep up with changing customer needs, such as build
to order, immediate delivery
• To achieve our goal of leading the sector of low to mid-
volume / high mix EMS business’s
• Increase efficiency and customer satisfaction and
therefore profit
2. Communication and Communication Planning
Many managers assume that if they communicate clearly with
their employees, their job is done.
However, there are many reasons why employees may not
hear or understand what their managers are saying the first
time around.
In fact, you may have heard that messages need to be
repeated five to seven times before they are cemented into
the minds of employees.
Three Components of Effective Communication
Effective communicators carefully consider three components:
• The audience
• What is communicated
• When it is communicated
Communicating about Change
1. Why is the change necessary?
( rationale)
2. What are we changing to?
( Vision)
3. How and when do we intend to get there?
(plan)
4. What is the personal impact?
(what's in it for me?)
5. Is help available to support transitions?
(resources)
Communication Planning
• Communication planning, therefore, begins with a careful
analysis of the audiences, key messages and the timing for
those messages.
• The change management team or project leaders must
design a communication plan that addresses the needs of
frontline employees, supervisors and executives.
• Each audience has particular needs for information based on
their role in the implementation of the change.
3. Sponsor Activities and Sponsor Roadmaps
• Business leaders and executives play a critical sponsor role in
times of change.
• The change management team must develop a plan for
sponsor activities and help key business leaders carry out
these plans.
• Research shows that sponsorship is the most important
success factor for successful change management .
Change Roles and Responsibilities
Change Roles
• Executive Sponsorship
• Legitimizes the change
• Sustaining Sponsor
• Represents the executive sponsor
• Change Agent
• Sees the need for change but can not legitimize it
• Stakeholder
• Supports the change
• ( in beliefs, skills, behaviors, etc)
Executive Sponsor
• Has ultimate authority over and responsibility for the
project
• Has a vested interest in project resourcing and project
results
• Manages organizational expectations
• Provides high level direction
• May delegate day to day involvement to a sustaining
sponsor
Sustaining Sponsor
• Acts as appointed representative of the Executive
Sponsor( ensure formal appointment)
• Participates frequently with the project team
• Interacts with local Stakeholder groups
• Shares duties with the Executive Sponsor
• Brings changes to the Executive Sponsor for review and /
or approval
• HEAD
• Clear understanding of business case for change Characteristics of
• Clear understanding of changes impact
• Aware of own personal power to make change
Successful Sponsors
• Realistic understanding of organizations true capability to reach desired level of change
• Hands
• Initiates objectives, goals, deliverables and scope of the project
• Maintains validity of business case until change conclusion
• Displays strong public and private support for change
• approves work plans and activities
• Defines roles/ responsibilities for project teams
• Heart
• Believes in change and communicates with others to help them understand how change
will impact them Motivates and rewards change supporters
• Builds and environment to reduce change resistance.
Change Agent
• Anticipates who will lose what
• predicts resistance points
• Plans for the resources people will need to successfully change
• Effectively communicates the what , when, why and how of the
change
• Creates a change -monitoring system to check whether plans are
being put into action
• Prepares to facilitate the change rather than just make the change
happen
• Looks at how he / she will need to change to work effectively in the
new system.
Stakeholders
All those who will be affected by the change and / or
whose active support , commitment and behavior
change are required for successful implementation and
sustained change
Avoid Confusing the Notion of Sponsorship with Support
• The CEO of the company may support your project, but that is not the
same as sponsoring your initiative.
• Sponsorship involves active and visible participation by senior
business leaders throughout the process, building a coalition of
support among other leaders and communicating directly with
employees.
• Unfortunately, many executives do not know what this sponsorship
looks like. A change manager or project leader's role includes helping
senior executives do the right things to sponsor the project.
4. Change Management Training for Managers
• Managers and supervisors play a key role in managing change.
• Managers can be the most difficult group to convince of the need for change and
can be a source of resistance.
• It is vital for the change management team and executive sponsors to gain the
support of managers and supervisors. Individual change management activities
should be used to help these managers through the change process.
• Once managers and supervisors are on board, the change management team
must prepare a strategy to equip managers to successfully coach their employees
through the change.
• They will need to provide training and guidance for managers, including how to
use individual change management tools with their employees
5. Training Development and Delivery
• Training is the cornerstone for building knowledge about the change and
the required skills to succeed in the future state.
• Ensuring impacted people receive the training they need at the right
time is a primary role of change management.
• This means training should only be delivered after steps have been taken
to ensure impacted employees have the awareness of the need for
change and desire to support the change.
• Change management and project team members will develop training
requirements based on the skills, knowledge and behaviors necessary to
implement the change.
• These training requirements will be the starting point for the training
group or the project team to develop and deliver training programs.
6. Resistance Management
• Resistance from employees and managers is normal and can
be proactively addressed.
• Persistent resistance, however, can threaten a project.
• The change management team needs to identify, understand
and help leaders manage resistance throughout the
organization.
• Resistance management is the processes and tools used by
managers and executives with the support of the change
team to manage employee resistance.
Sources of Resistance: Attitude
Lack of Motivation Differing Assessments

Don’t see the need for

change Change initiators usually
have more information
A compelling vision has than stakeholders
not been presented
Those affected may not
No positive see the “Big Picture”
consequences for therefore the change does
changing not make sense
Perceive costs greater
than benefit
The Faces of Resistance

Not Enough Time

Anger Attack

Silence
Withdrawal Intellectualizing
Endless
Questions
Going Through Confusion Just don’t
The motions want To Get It
Details
Ignore IT
Details
Deny It
Details
Glorify the Past
Faces Of Resistance
Active Passive
Because it is out in the open,
active resistance is more When resistance is Hidden, it can go
constructive and easier to unnoticed and undermine efforts to
manage than its transform an organisation
underground counterpart
Faces of Resistance
• Active
• Deliberate opposition
• Hostility
• Agitating others
• Failing to report problems
• Problem denial
• Chronic quarrels
• “This won’t work”
• Passive
• Withholding info
• Procrastination/ Delays
• No confrontation, but still no
productivity
• Not attacking solution, but not
supporting either
• Over-complicating the new way
• “We’ve always don it this way
Managing Resistance
Apply the appropriate level of involvement given the degree of change
Involve
Chaos
Include
Degree of
Involvement Best case
Consult
Major road blocks

Inform Fine Major

tuning Degree of Change Transformation
Managing Resistance: Aptitude
• Identify needed Knowledge and skills
• Provide a training / development program
• Create opportunities to practice without consequences
• Reward demonstrations of new abilities
• Mentor and model desired behaviors and skills
• Monitor workloads to ensure they remain realistic
Managing Resistance: Attitude
• Ensure people understand why change is needed- the business case for
change
• Put the change into the context of the “ Big Picture” link it to other changes
• Convey a compelling vision for the future
• If possible, personalize benefits of the change
• Establish rewards, recognition, incentives and performance objectives that
support change objectives
Managing Resistance: Raising Thresholds for Change
• Communication
• Preview, view and review
• Ensure regular, timely information distribution
• Communicate with the audiences “needs” in mind
• Clarify what is not changing along with what is
• Participate
• Involve people in decision making
• Seek out and use ideas and opinions
Potential Resistance Forces and Challenges
• Psychological Blocks
• The Force of Habit
• Limitations in Physical or Intellectual Capability
• Time and Priorities
• Availability of Resources
7. Employee Feedback and Corrective Action
• Managing change is not a one way street; employee
involvement is a necessary and integral part of
managing change.
• Feedback from employees as a change is being
implemented is a key element of the change
management process.
• Change managers can analyze feedback and
implement corrective action based on this feedback to
ensure full adoption of the changes.
8. Recognizing Success and Reinforcing Change
• Early adoption, successes and long-term wins must be
recognized and celebrated.
• Individual and group recognition is a necessary
component of change management in order to
cement and reinforce the change in the organization.
• Continued adoption needs to be monitored to ensure
employees do not slip back into their old ways of
working.
Tactics For Building Reinforcement
• Celebrations and Recognition
• Rewards
• Feedback from Employees
• Audits and Performance Management Systems
• Accountability Systems
9. After-Project Review
• The final step in the change management process is the
after-action review.
• It is at this point that you can stand back from the entire
program, evaluate successes and failures, and identify
process changes for the next project.
• This is part of the ongoing, continuous improvement of
change management for your organization and ultimately
leads to change competency.