HOW TO SUCCESSFULLY MANAGE CHANGE OSU/OKC November 18, 2008

What is Change Management? A systematic approach to dealing with change, from the perspective of both the organization and the individual. Change management has at least three different components: adapting to change adapting to change controlling change controlling change effecting change effecting change

Bill Gates said “In three years, every product my company makes will be obsolete. The only question is whether we’ll make them obsolete or somebody else will.”

Statistics About Change 15% achieve their objectives 15% achieve their objectives 20% fail to achieve all objectives but 20% fail to achieve all objectives but determined to be satisfactory determined to be satisfactory 65% have unsatisfactory results 65% have unsatisfactory results Most significant change fails to meet the expectations and targets of management. Top management is frequently unreasonable in its expectations

Why Change Fails The #1 reason change fails is FEAR

How to Succeed at Change The #1 thing to remember to make change succeed is: COMMUNICATION

Reasons People Resist Change Self Interest-they believe they will lose something of value Self Interest-they believe they will lose something of value Misunderstanding and lack of trust-they do not understand why this is happening Misunderstanding and lack of trust-they do not understand why this is happening Different assessments-they see different costs/benefits Different assessments-they see different costs/benefits Low tolerance of change-they fear they do not have the relevant skills Low tolerance of change-they fear they do not have the relevant skills

We do not agree on the problem-individuals do not see the need for change the same way We do not agree on the problem-individuals do not see the need for change the same way We do not agree on the direction of the solution-individuals see different solutions We do not agree on the direction of the solution-individuals see different solutions We do not agree the proposed change solves the problem-disagreement on whether the proposed change will solve the problem We do not agree the proposed change solves the problem-disagreement on whether the proposed change will solve the problem

The proposed change might work but will create other problems The proposed change might work but will create other problems There are huge obstacles to implementing the change There are huge obstacles to implementing the change Unverbalized fear Unverbalized fear

What Organizations Didn’t Do That Caused the Change to Fail Were not clear about the reasons for the change and the overall objectives Were not clear about the reasons for the change and the overall objectives Failed to move from talking to action quickly enough Failed to move from talking to action quickly enough Leaders not prepared to change management style required to manage the change Leaders not prepared to change management style required to manage the change Organization had too many “goals” at one time Organization had too many “goals” at one time

The organization is not prepared The organization is not prepared Little regard to the overall business and did not plan for the “trickle down effect” Little regard to the overall business and did not plan for the “trickle down effect” Leaders set the direction for the change and then left it to less motivated people to implement Leaders set the direction for the change and then left it to less motivated people to implement Made it a “surprise” Made it a “surprise” Didn’t do enough to resolve uncertainty Didn’t do enough to resolve uncertainty Insensitive to employees feelings Insensitive to employees feelings

How to Reduce Resistance to Change Communication-clear two-way approach with all staff Communication-clear two-way approach with all staff Start with a good idea-have a good, well-thought out concept Start with a good idea-have a good, well-thought out concept Obtain staff commitment-involve staff in both the ideas and implementation stage Obtain staff commitment-involve staff in both the ideas and implementation stage Provide sufficient resources-people, time, money, skills, etc. Provide sufficient resources-people, time, money, skills, etc. Have a plan-look ahead and allow flexibility Have a plan-look ahead and allow flexibility

Take into account the needs/attitudes/beliefs of the staff Take into account the needs/attitudes/beliefs of the staff Be aware of WIIFM—What’s in it for me? Be aware of WIIFM—What’s in it for me? Provide clear and specific information on the change Provide clear and specific information on the change Educate and communicate Educate and communicate Participation and Involvement Participation and Involvement Negotiation and Agreement Negotiation and Agreement Manipulation and Co-optation Manipulation and Co-optation Explicit and Implicit Coercion Explicit and Implicit Coercion

View change as an opportunity, not a threat View change as an opportunity, not a threat Treat your staff like your customers Treat your staff like your customers Involve others in the decision making process Involve others in the decision making process Say it once, say it twice, say it again Say it once, say it twice, say it again Validate the feeling of employees Validate the feeling of employees Anticipate tomorrow Anticipate tomorrow Let go of the past Let go of the past Train the staff Train the staff Be a behavior model Be a behavior model

What Leadership Must Do Believe the change is necessary Believe the change is necessary Be pro-active Be pro-active Convince people undergoing the change that the change is necessary Convince people undergoing the change that the change is necessary Tell staff how the change will affect them as individuals Tell staff how the change will affect them as individuals Tell them early, tell them often Tell them early, tell them often Be honest Be honest Utilize management processes and skills Utilize management processes and skills

Conclusion The four main steps to successfully implement change: Propose the change Propose the change Summarize the impact of the change Summarize the impact of the change Make a decision Make a decision Implement the change Implement the change AGAIN, THE KEY IS COMMUNICATION

References Brownell, Eileen Dwyer, Kevin Palmer, Jonathan Haughey, Duncan Palmer, Jonathan Maisey, Paul Okoro, Samuel Palmer, Jonathan