Change Management

Joel M. Cuadra
 Change Management?
The process, tools and
techniques to manage the people
side of change to achieve the
required business results.
70% of Change Attempts Fail
(McKinsey)

• Nearly all projects require humans to do work

differently than before. Humans usually don‘t like
this.
• Change Management is the art to design and
manage the transition as painless as possible in
order to reduce friction and inefficiencies.
 Why Resistence to Change
• Human fears:
– Loss of job
– Loss of social status
– Loss of privileges
– Loss of control
– General fear of the unknown
• Need to learn new tools or skills
• Leaving the „comfort zone“
 There are consequences of not
managing the people side of change
• Lower productivity
• Passive resistance
• Active resistance
• Turnover of valued employees
• Disinterest in the current or future state
• Arguing about the need for change
• More people taking sick days or not showing up
• Changes not fully implemented
• 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’
Primary reasons for applying
change management
Organizations
understand,,
Increase
accept, and
probability
support
of project
needed
success
business
changes
Build
Manage
change
employee
competency
resistance to
into the
change
organization
• Organizations do
not change!
• People
Change………
• One person at a
time
 Change management
perspectives
• Individual • Organizational
perspective perspective

– Understanding how – The tools that

one person makes project teams and
a change managers have to
successfully support the ‘people
side’ of change
 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 opposition ( resistance) 33
– Initiative fatigue 32
– Unrealistic timetables 31
» source: PriceWaterhouseCoopers
 Making Change Succeed
• Factors that helped the most 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
– Benchmarking V’s competitors 62
» source:PriceWaterhouseCoopers
 The five building blocks of
successful change
Model

Awareness Awareness of the need for change

Desire Desire to participate and support the change

Knowledge Knowledge on how to change

Ability to implement required skills and

Ability behaviors

Reinforcement ® © 2012 Prosci and Bill Cigliano

Reinforcement to sustain the change
The ADKAR Model
Awareness of the need for change.
• What is the nature of
the change?
• Why is the change
happening?
• What is the risk of
not changing?
The ADKAR Model
Awareness Think about the change your
team is working on currently .

Write a number 1 – 5 on the

Post-It note to indicate your
Awareness of this change.

Adapted from Prosci 2008

The ADKAR Model
Desire to support the change.
• Personal motivation to
support the change
• Organizational drivers to
support change

Adapted from Prosci 2008

The ADKAR Model
Desire Think about the change your
team is working on currently .

Adapted from Prosci 2008

The ADKAR Model
Knowledge on how to change.
• Knowledge, skills and
behaviors required
during and after the
change
• Understanding how to
change

Adapted from Prosci 2008

The ADKAR Model
Knowledge Think about the change your
team is working on currently .

Adapted from Prosci 2008

The ADKAR Model
Ability to implement new skills.
• Demonstrated ability to
implement the change
• Barriers that may inhibit
implementing the change

Adapted from Prosci 2008

The ADKAR Model
Ability Think about the change your
team is working on currently .

Adapted from Prosci 2008

The ADKAR Model
Reinforcement to sustain the change.
• Mechanisms to keep the
change in place
• Recognition, rewards,
incentives, successes

Adapted from Prosci 2008

The ADKAR Model
Reinforcement Think about the change your
team is working on currently .

Adapted from Prosci 2008

 ®
Prosci
Prosci’s 3-Phase
Change Change
Management Process
Management Process

organizational
change management process

• A structured process for

managing the ‘people side’ of
change on a project or initiative
– Research-based
– Holistic
– Easy-to-apply
– Scalable
Phase 1 – Preparing for change

• Understanding the
nature of the change
• Understanding the
groups being changed
• Creating the right
sponsorship model
and coalition
• Identifying risks
• Developing special
tactics
Phase 2 – Managing change

• Communication plan
• Sponsor roadmap
• Training plan
• Coaching plan
• Resistance mgmt plan
Phase 3 – Reinforcing change

• Compliance audit reports

and employee feedback
• Corrective action plans
• After action review
• Transition management
 Connecting individual and
organizational change management
Change Individual phases
management of change
tools
Communications Awareness

Sponsor roadmap Desire

Coaching Knowledge

Resistance management Ability

Training Reinforcement™
Who is involved in managing change

• The change
management
Senior leaders Project team
resource on a project
plays the role of
enabler
– The conductor of the
Change orchestra
management
– The director of the
play

Managers and • Effective change

Employees management requires
supervisors
involvement and
action by many in the
organization
Senior leaders
• Why is this group
important?
– Active and visible
sponsorship is identified as
the top contributor to overall
project success in Prosci’s
Senior leaders Project team five benchmarking studies
– Senior leaders are one of
two preferred senders of
messages about change
Change
management
• What is this group’s role?
– Participate actively and
visibly throughout the project
– Build the needed coalition of
sponsorship with peers and
Managers and other managers
Employees
supervisors – Communicate the business
messages about the change
effectively with employees
Managers & supervisors
• Why is this group important?
– Managers and supervisors are
the other preferred sender of
messages about change
– This group has a unique and
Senior leaders Project team well-developed relationship
with the employees being
impacted by the change
Change • What is this group’s role?
management – Communicate the personal
messages about the change
with their direct reports
– Conduct group and individual
Managers and
Employees coaching sessions
supervisors – Identify, analyze and manage
resistance
– Provide feedback to the rest of
the change management ‘gears’
Employees
• Why is this group important?
– Employees will ultimately make
changes to how they do their day-to-
day work
– Their acceptance and use of the
Senior leaders Project team
solution determines the success of
the project and the ongoing benefit
derived from the change

Change • What is this group’s role?

management – Seek out information related to the
business reasons for change and the
personal impact of the change
– Provide feedback and reaction to the
Managers and change and the change management
Employees
supervisors efforts
– Take control of the personal transition
(using an individual change
management model like ADKAR)

30 30
Project team
• Why is this group important?
– The project team designs and
develops the ‘change’ – they are
the ones who introduce new
processes, systems, tools, job roles
and responsibilities
Senior leaders Project team
– This group provides much of the
specific information about the
change to the other ‘gears’
Change
management • What is this group’s role?
– Provide timely, accurate and
succinct information about the
Managers and change (or project)
Employees
supervisors – Integrate change management
activities into project management
plans and activities
 Force-Field Analysis

Steps:
•Identify all relevant stakeholders
•Identify forces for and against change
•Prioritize the forces
•Develop strategies to strengthen
supporting forces
•Develop strategies to reduce, weaken or
isolate opposing forces.
 Force-Field Analysis Steps
• Perform exhaustive stakeholder analysis.
Take notes about the interests of each
stakeholder.
• Prioritize the forces
• Develop strategies to strengthen or leverage
supporting forces
• Develop strategies to weaken or isolate
opposing forces.
Kotter’s Eights Steps to Change
1. Create a sense of
Urgency
2. Build a Guiding
Coalition
3. Form a Strategic Vision
and Initiatives
4. Enlist a Volunteer Army
5. Enable Action by
Removing Barriers
6. Generate Short-Term
Wins
7. Sustain Acceleration
8. Institute Change
Kotter’s Eights Steps to Change
1. Create a sense of Urgency
Craft and use a significant opportunity as a means for exciting people to sign up to change their organization

2. Build a Guiding Coalition

Assemble a group with the power and energy to lead and support a collaborative change effort

3. Form a Strategic Vision and Initiatives

Shape a vision to help steer the change effort and develop strategic initiatives to achieve that vision

4. Enlist a Volunteer Army

Raise a large force of people who are ready, willing and urgent to drive change

5. Enable Action by Removing Barriers

Remove obstacles to change, change systems or structures that pose threats to the achievement of the vision

6. Generate Short-Term Wins

Consistently produce, track, evaluate and celebrate volumes of small and large accomplishments – and correlate them to results

7. Sustain Acceleration
Use increasing credibility to change systems, structures and policies that don’t align with the vision; hire, promote and develop
employees who can implement the vision; reinvigorate the process with new projects, themes and volunteers

8. Institute Change
Articulate the connections between the new behaviors and organizational success, and develop the means to ensure leadership
development and succession
 Managing Organizational Change
– From Carter McNamara, PhD, www.mapnp.org
• (Management Assistance Program for Non-Profits)

 Widely communicate the potential need for change.

Communicate what you're doing about it. Communicate
what was done and how it worked out. Communicate that
Senior Management backs this strategy unanimously.
 Get as much feedback as practical from employees,
including what they think the problems are and what should
be done to resolve them. If possible, work with a team of
employees to manage the change.
 Don't get wrapped up in doing change for the sake of
change. Know why you're making the change. What goal(s)
do you hope to accomplish? Communicate the goals!
 Managing Organizational Change
– From Carter McNamara, PhD, www.mapnp.org
• (Management Assistance Program for Non-Profits)

 Plan the change. How do you plan to reach the goals, what
will you need to reach the goals, how long might it take and
how will you know when you've reached your goals or not?
Focus on the coordination of the departments/programs in
your organization, not on each part by itself. Have someone
in charge of the plan.
 Delegate decisions to employees as much as possible.
This includes granting them the authority and responsibility
to get the job done. As much as possible, let them decide
how to do the project.
 The process won't be an "aha!" It will take longer than
you think.
 Keep perspective. Keep focused on meeting the needs of
your customer or clients.
 Managing Organizational Change
– From Carter McNamara, PhD, www.mapnp.org
• (Management Assistance Program for Non-Profits)

 Take care of yourself. Organization-wide change can be

highly stressful.
 Don't seek to control change, but rather expect it,
understand it and manage it.
 Include closure in the plan. Acknowledge and celebrate
your accomplishments.
 Read some resources about organizational change,
including new forms and structures.
 Consider using a consultant. Ensure the consultant is
highly experienced in organization-wide change.
 General
• „Build Trust“:
Start with small steps or a „pilot system“ and
celebrate the milestone
• „Shared Reality“:
Make sure you understand and „live“ the reality
of your stakeholders. They need to accept the
change agents as „one of them“.
• Know when not to proceed:
Don‘t execute the project if the opposing forces
are too strong.
Appendix
 Organizational Change Web Links

• Teaching the Caterpillar to fly by by Scott J.

Simmerman, Ph.D.
– http://www.squarewheels.com/content/teachin
g.html

• Sample Organizational Change

Management Plan
– http://www.hhs.gov/ufms/ufmscmpfinal.pdf
 Organizational Change Web Links
• Employee Resistance to Organizational
Change
©2002 by Albert F. Bolognese
– http://www.newfoundations.com/OrgTheory/Bo
lognese721.html

• Basic Context for Organizational Change

Written by Carter McNamara, PhD | Applies to
nonprofits and for-profits unless noted
– http://www.mapnp.org/library/mgmnt/orgchnge.htm