X4MIS Change Management Principles Bruce Swain 01 Nov 2016

The X4MIS Methodology Describe the scope & impact of change Define the benefits of change Deliver a compelling message Formalise a programme of change 4 Cs - Enable the change Reinforce and embed the new state Measure progress Identify & acknowledge success Systematically manage resistance

Balancing Technology, Process and People One of the biggest challenges of customer-facing change is achieving understanding and adoption of new ways of working internally. Change that is dominated by technology achieves around a 10% level of adoption, leading to significant wasted investment. Getting the right balance between people, process and technology development is critical to improving the customer experience and therefore achieving increased business results Solutions that achieve the right balance of investment across people, process and technology frequently achieve near 100% adoption.

Balancing the Investment High spend with little difference to the customer Compromise driven by technology functionality restrictions Long lead-time for improvement and change ‘What technology can do’ rather then ‘what does the customer want?’ Technology under-utilised/aborted projects/wasted investment Short-term business improvement Lack of ownership of the changes – not integrated Slow and unresponsive benefit realisation No qualitative or cultural change Little real impact on customer Sustainable long-term improvement in results Best return on investment & benefit realisation Optimum use of process and technology by dynamic people who ‘own’ and ‘drive’ improvement Fast gains, ‘quick wins Highest impact on customer Greater customer retention through effective relationship building

The Change Challenge In any technology transformation programme the organisation can expect to experience resistance or reluctance to change. Typically management focus is on minimising the reluctance and an inevitable “production dip”. The focus of the Change Team is to obtain a balance across people, process and technology activities in order to not only avoid the dip, but continuously improve customer experiences and achieve early business results

1st and 2nd Order Change Projects without a managed change programme typically focus on 1st Order Change ‘moving the furniture’ which has limited, if any, lasting effect A Change Management Programme recognises and focuses on 2nd Order Change, a qualitative shift that is transformative in its nature. Doing something significantly or fundamentally different from what was done before. 1st Order Change 2nd Order Change Adjustments within the existing structure Doing more or less of something Reversible Restoration of balance (homeostasis) Non-transformational New learning is not required Old story can still be told New way of seeing things Shifting gears Irreversible Often begins through the informal system Transformation to something quite different Requires new learning New story is told

The Change Workshop Based on our experience and the potential scale and form of change we suggest the following as a first step once. A change initiation workshop consisting of four x 2.5 hour sessions over 3 or 4 weeks with the project team and sponsor plus key technology and business stakeholders Develop the Change Strategy that’s right for your organisation “adopt or adapt” Complete the Change Management plan Understanding and defining the scope Rational, future model Stakeholder analysis and resistance management The Change Team - roles, responsibilities and reporting Communications plan – getting the story right Change delivery plan

Vision To develop the most adopted Change Management Methodology in New Zealand… and the world. The X4MIS™ Change Management Methodology will only be adopted by individuals and organisations if it adds value to the business.  Adoption means we have it right.  Values Collaboration - The X4MIS™ Change Management Methodology was developed, and continues to develop. with the support and collaboration of many different individuals Openness - We have nothing to hide, the X4MIS™ Change Management Methodology and supporting tools will be published and available to all.  Everything we develop is free to individuals and organisations to use. Simplicity - Building complexity defeats the purpose of the Change Management Methodology Thievery - “originality is non-existent, don’t bother concealing your thievery – celebrate it and, always remember it’s not where you take things from – it’s where you take them to” – Jim Jarmusch, film maker.