Organization Transformation and Selling Organizational Change

1. Western International University MGT 466: Organizational Change Michael J. Miller, Ph.D michaeljmillerphd.com Organization Transformation and Selling Organizational Change

2. What is Change Management? • The integration of people and process activities to ensure rapid and widespread user adoption of new policies, systems, and processes. “There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.” - Niccolo Machiavelli

3. Who is a “Stakeholder”? • Any group or individual that is impacted by the project • Project preparation • Transition • Delivery • Adoption

4. Types of Stakeholders • End Users • Management • Sponsors • Decision Makers • Core and Extended Project Team Members • Process Owners • Subject Matter Experts • Change Agents • Interested Parties

5. A Hierarchy of Change Dimensions of Change Change Approach Type of Change Focus Strategy People/Culture Org Structure Policy/ Process Systems/Tools Organization focus Identify and address organizational barriers to strategic growth Transformation Change Management Change in Business Strategy drives Organizational Transformation High High High High High Change Management Redesign of Process, Policies, and/or Systems Individuals in Group transition focus Support the individual transition through change Medium Medium Medium High High Process enhancement or System Upgrade User System Interaction focus Supports the user adoption of technology deployments Low Medium Low Medium High Organizational Adoption Change Impacts

6. . . . Requiring Different Activities and Skills Change Approach Key Skills Key Activities • Leadership Coaching and Development • Strategic Planning/Alignment/Rewards • Organizational Design Transformation Change Management • Executive sponsorship and Alignment • Change Leadership development • HR Alignment (behavior alignment, skills alignment) • Role mapping to strategy Stakeholder/ Audience Management Change Management • Functional sponsorship and Alignment • Rewards system (MBO change, etc..) • Case for Change / Burning Platform/ Derived business value • Capabilities assessment (as is/to be process to determine skills gaps) • Team Effectiveness (surveys) • Cross-functional activities and integration/alignment • Develop integrated change management plan (adoption strategy, pre and post go-live activities, risks mitigations, training and comms, metrics and reporting) • Management, peers Coaching • Metrics reporting • Team Building • Influencing (peers, management, without authority) • Conflict resolution • Survey design (effective inquiries) • Leadership ability (build credibility and trust) • Appropriate mitigation (diplomacy in driving change) • Organization Adoption expertise • Project/Program Management • Facilitation (workshops, Rapid Alignment Sessions, Lessons Learned) • Cross-functional collaboration • Instructional design skills • Program sponsorship and alignment • Training • Communication • Readiness assessment • Stakeholders analysis (identification, impact analysis, stakeholder view of change) Organizational Adoption

7. Change Management Scope In Scope Net Impact to Stakeholders Out of Scope Out of Scope Change Impact Analysis Project Normalization Stakeholder Coalition Support Organization Adoption User Testing Data Migration

8. Identifying the Impacts & Risks From Change High-level view of change and adoption effort High Level Stakeholder risk and impact analysis • Change Management Assessment Detailed Net Effect of the Change for Each impacted Role • Stakeholder Analysis External Forcesrisk and impact identification • Context & Culture Impacts • Net Effect Analysis

9. Increasing Organizational Adoption Forming a Coalition of Support for the Project • Stakeholder Engagement • Communications Team Engagement • Training Team Engagement Identifying Structures Needed to Sustain the Change • Sustaining Assessment

10. Change Management Project Kick Off • Considered the “world view” of the Change Management effort • Dialogue between Project Team and Change Management begins here • Time commitments required for resources based on the CM effort are determined • Activities to be completed: • Change Management Assessment • CM Agreement

11. Purpose of Change Management Assessment (CMA) • To obtain insight into the potential up-stream and down-steam impact to people • To indicate the audiences being impacted & provide an estimation as to the level by which they will be impacted • To gain an initial understanding of the Change Management effortrequired for the project • To receive recommendations on the resource commitments needed to support completion of Change Management activities

12. Change Management Assessment and Agreement Input and Output As-Is Situation To-Be Situation Project Scope Project team structure Design and business requirements documents, if available Estimated extent of change management effort Estimates of resource commitments needed to support Indication of audiences impacted Estimated levels of impact to indicated audiences Input Output Change Management Assessment and Agreement

13. Change Process A change program represents a major undertaking across a wide scope of the business. Managing the change effectively throughout its lifecycle is critical to achieve desired outcomes. Structured Change Management – Positive outcomes maximized View Change as a process, and measure its progress. D C A Without Change Management - Outcomes unpredictable performance B “valley of despair” Start of program Go-live Build Foundation Deploy Sustain time • The goal is to minimize the negative impact of change in duration (A) and depth (B), accelerate time to competence/new levels of productivity (C), and sustain ongoing performance (D).

14. Change Model Dimensions • The focus and importance of the Change Model’s dimensions and the related change activities vary during the course of the change lifecycle. • Commitment Curve • Stakeholders • Sponsors • End Users Adoption Ownership support for change Understanding Decision not to Attempt/Support Implementation Change Aborted after Implementation Awareness Negative Perception Confusion time Marketing Communications Stakeholder & Sponsorship Engagement Readiness Training & User Documentation

15. To support adoption, ... Metrics closing the loop Support go-live and normalization support, escalation protocol, and communications channels Garner understanding and acceptance through knowledge connection: training, communications, supporting early adopters Build awareness through theater engagement, communications, and participation in cross-functional forums Identify and assess needs through cross-functional partnering and impact analysis

16. Establish Framework for Success • Build a strategic network • Cascading information on engagement, communications, training, and business readiness activities throughout the organization • Building a common sense of purpose • Creating a “link” between the change management, project teams, and the end users

17. Establish Framework for Success (cont.) Change Management Team Early Adopters User Community

18. Early Adopters • Comprised of individuals from impacted user community • Adoption agents for represented organizations • Established avenues of communication • Presentations to share with teams

19. Communicate Their Responsibilities • Ensure your organization is ready, willing, and able to adopt process, tool, and system changes • Capture user issues and questions • Be a key factor in the success of the release • Contributing member of a highly-visible, cross-functional team • Utilize leadership skills to bring organization to a state of readiness

20. Early Adopter Skill Set • Strong knowledge of organization’s business activities and processes • Ability to influence others to champion change • Good communication skills • Embrace successful change adoption

21. Next Steps • Establish yourself as the “go-to” person for your team • Become familiar with the change initiative • Attend weekly meetings • Share the information with your team • Dedicate 1 to 2 hours a week to make the change a SUCCESS!!!