Change Acceptance Process A Best Practice of Managing Organizational Change

Challenges of Change Internal factors: Leadership, employees set in their ways Complexity causing paralysis Takes too long to innovate Technology Lag Lack of willingness to do what it takes External factors Increased competition Rapidly changing market conditions

A Change Methodology A change methodology is a consistent philosophy and approach to change. It consists of a common language, framework, process and tools used throughout an organization. It sets expectations for the attitudes, behaviors and actions that any employee will take regarding a change initiative.

Why Have a Change Methodology? Most large and/or decentralized organizations have more than one approach to change operating within their organization. This causes inefficiencies, misunderstanding and miscommunication resulting in slower or no adoption of a change across the organization.

Foundations for this Change Methodology General Electric researched effective change initiatives when they were having challenges with implementing large-scale change. Result was the “Change Acceleration Process”, which was deployed across all GE businesses, starting in 1993, and to customers in 1995. The current Change Acceptance Process methodology represents an evolution based on application in well over 300 companies & organizations worldwide and on a wide variety of change initiatives.

Components of Effective Change Q x A = E Q = The “Quality” of the chosen solution (i.e. the solution will address the problem or opportunity at hand) A = The “Acceptance” of the solution by key stakeholders E = The overall “Effectiveness” of the change execution to solve the problem, challenge or opportunity Your change initiative needs both a high “Q” and a high “A” score to be successful

Reasons Change Fail Not establishing a great enough sense of urgency Not translating the vision into meaningful terms Not having visible leadership for the change Not identifying and understanding key stakeholders Not systematically planning to deal with resistance Not anchoring the change in the company / organization culture and infrastructure Declaring victory too soon Focusing on the launch and not the long-haul The ‘A’ Factor

Ongoing Change Research 100% of all changes evaluated as “successful” had a good solution or approach Over 98% of all changes evaluated as “unsuccessful” also had a good solution or approach What is the differentiating factor between success and failure?

Copyright Demeter Matrix Alliance & Sun Microsystems, Inc., 2004 CAP Model Integrate The Change Compelling Business Need Engage Support And Resistance Mobilized Commitment Shared Vision Map the Transition Focused Leadership Copyright Demeter Matrix Alliance & Sun Microsystems, Inc., 2004

Mobilized Commitment: CAP Model Mobilized Commitment: At the heart of any change effort are people who make individual commitments to move the change forward. The objective of the change acceptance work is to have that individual effort mobilized and committed. All of the other CAP elements touch it, are linked to it and drive toward it. Compelling Business Need: The change must originate from a business requirement that is either a response to a threat or a movement toward an opportunity and must be articulated in a way as to provide motivation to get others on board. Integrate the Change: Driving the change into the DNA of the organization to ensure staying power involves replacing old mindsets, systems and structures and inserting new actions and behaviors. Integrate The Change Compelling Business Need Engage Support and Resistance: Actively seeking out resistance and leveraging the support of those behind the change enhances the change effort by learning from and responding to differing input. Engage Support And Resistance Shared Vision: The future is expressed in such a way that it creates a picture of what the change will look like and people can see what they will be doing differently when the change is fully functioning and in place. Mobilized Commitment Shared Vision Map the Transition Focused Leadership Map The Transition: Just as a topographical map depicts the lay of the land and provides direction to a destination, so too must a change be charted and planned, providing steps toward the vision. Focused Leadership: Leadership, whether as sponsoring executives or team leaders, provides focus and motivates commitment through visible actions and behaviors around communication, resourcing, and time and attention to the change. Assess and Adjust: Throughout the change there is constant movement, collecting and learning from the input of key stakeholders and adapting the change effort in response to the input. Copyright Demeter Matrix Alliance & Sun Microsystems, Inc., 2004

Using the Model Provides a ‘Pilot’s Checklist’ for change A flexible, non-linear model – all principles used repeatedly throughout a change Contains tools to creates conversations and opportunities to apply strategic thought to the influencing of others Helps teams identify ways to achieve behavioral change and enhance their action planning

Change Model & Methodology Implementation Approach

Our Approach to Introduce & Implement a Change Methodology Entire Organization Business Transition Business Integration Go/ No Go? Stakeholder Involvement Business Application Leadership Alignment Limited Time

Stakeholder Involvement Leadership Alignment An explicit process focused on creating shared understanding and buy-in among the leadership team and action plans with accountability placed on both the leaders and the implementation team. Stakeholder Involvement: Senior Leadership Change implementation team Outcomes: Define the Business Case Build agreement with leadership Create roll out strategy & implementation plan Identify target processes and desired outcomes Determine competency development needed Design/customize Change Effectiveness training & toolkit Identify difficult conversations inherent in targeted processes Coach key leaders & stakeholders Leadership Alignment Stakeholder Involvement Time Business Application Business Integration Business Transition Go/ No Go?

Stakeholder Involvement Business Application Pilot application of Change methodology on select business processes/projects to determine applicability and feasibility of expanded business application. Stakeholder Involvement: Select Leadership Select process / project owners and teams Change implementation team Outcomes: Model application of Change Effectiveness methodology Launch of initial suite of training programs Train initial group of Change Effectiveness facilitators* Ensure difficult conversations are surfaced and addressed with candor and integrity Evaluate effectiveness of pilot efforts Create expanded roll out strategy & implementation plan Coach leaders & change facilitators Leadership Alignment Stakeholder Involvement Time Business Application Business Integration Business Transition Go/ No Go? * Depending on rollout strategy, selecting and equipping initial wave of Change Facilitators may be pushed to phase 3.

Stakeholder Involvement Business Integration Expand rollout of Change Effectiveness methodology to selected or all business functions / units Stakeholder Involvement: Entire Business or subset as define by rollout strategy Change implementation team Outcomes: Application within business functions / units Revise and finalize Change Effectiveness model, toolkit and initial suite of training Expand network of trained Change Effectiveness facilitators Design/develop Change Mastery and/or Practitioner’s Clinics Develop on-line tools / aids Monitor roll out plan and business impact Consult on Change Effectiveness initiatives Coach leaders & change facilitators Leadership Alignment Stakeholder Involvement Time Business Application Business Integration Business Transition Go/ No Go?

Stakeholder Involvement Business Transition An explicit process focused on integration with key HR & business processes and transition of competency & skill development to internal resources. Stakeholder Involvement: Select process owners Change implementation team Outcomes: Integrate skills and competencies into Systems and Structures Transfer training competency to internal resources Assess need for additional Change approaches and models (e.g. Org Design, Systems Thinking) Process for continuous improvement Coach process owners & all levels of change users Leadership Alignment Stakeholder Involvement Time Business Application Business Integration Business Transition Go/ No Go?

For more information, contact: Valuing Change, Inc. Webcontact@Valuing-Change.com www.Valuing-Change.com