Charting a course PROCESS

What are we going to cover Context Realities of change Why change fails Change Process Scope Who Why What How Your situation Planning your change Wrap it up 5 tips for success

Why is change hard?

Core Challenge So many moving parts… Leaders Employees Customers Resources Messages Sustainability Structure So many moving parts…

Difficult & challenge with organizational change A survey of senior executives in 14 industries confirmed that the benefits of Change Management substantially delayed and/or negated due to: Lack of buy-in that the transformation is necessary 64% Lack of skill or experience with Change Management 44% No senior management champion or alignment of leaders 44% Turf battles 44% Lack of congruent reward system 36% Data from Accenture Consulting

Managing the “valley of despair” Structured Change Management – Positive outcomes maximized D C A Without Structure - Outcomes unpredictable performance B “valley of despair” Start of program Go-live Build Foundation Deploy Sustain time Managed Change Management goal: minimize negative impact of change in A – Duration B – Depth C – Acceleration of time to competence/new levels of productivity D – Sustaining ongoing performance

What is change management? Effective transformation achieves the following: Maintains a clear focus on business results. Builds and sustains ownership and commitment to the change by involving the right employees and management throughout the change. Enables the workforce through training and communication of new responsibilities and expectations. Aligns the organization to drive appropriate changes in behavior. Builds the support system to sustain transformation.

Organizational performance APPROACH TO IMPROVING

CHANGE MANAGEMENT CRITICAL ELEMENTS SCOPE of the change and the realities you’ll face WHO is involved in the design, development, implementation WHY change is needed WHAT is the organizational design – alignment, integration HOW the new organization is implemented and managed

Sustainable change management process ULTIMATELY ADAPTABLE

PHASE 1 – CHANGE MANAGEMENT PROJECT ANALYSIS Analyze the objectives and outcomes Match up against the current culture, modifying approach to increase likelihood of success KEY ACTIVITIES Development of overall change strategy Ensure project structure and plan meets key objectives of senior leaders Develop and implement initial communication strategy to: Enlist key change agents Build project participants awareness DELIVERABLES Solidified Project Plan Meeting and updating schedule for senior leadership Sign-off design of approach and initiative Communication plan for leadership team Facilitated session with the senior leadership to ensure understanding of goals, objectives, deliverables, etc.

SIZING THE PRIZE Pick a change from that previous exercise: What are the challenges you see? Who are key people you’ll need to talk to? What information will you need to understand scope SIZING THE PRIZE

Involving the impacted

Typical project structure for organizational redesign Involve the organization to increase success and sustainability. Sponsors Executive Sponsor Team Review recommendation Make final decisions Core Team Core Team Leader and Core Team Members Develop organizational improvement recommendations Work with key stakeholder Change Support Change Agents Functional Stakeholder Teams Develop detailed functional area recommendations Functional Stakeholder Teams Develop detailed functional area recommendations Functional Stakeholder Teams Develop detailed functional area recommendations

Change management builds commitment of users & stakeholders To achieve project vision and benefits

Your core team What are the key areas you need represented on the core team? Why? Who would be on your core team? Why?

Phase 2 – building the business case for change - what “Agreeing to Why Change is Needed and Aligning the Stakeholders to Support the Change” Key Activities Asses & build business case for change. - External Reasons for Change - Internal Reasons for Change Asses & align organization (rewards, policies, metrics, culture) to support change. Incorporate business case for change with stakeholder management strategies. Incorporate business case for change in organizational metrics system. Deliverables Defined business case for change. - External: Financial, Customer, Market, Competition, Regulatory - Internal: Organizational, Individual Stakeholder management strategy that incorporates the business case for change. Project plan that continues to build momentum, support & alignment of stakeholders to support the change. Assessment & alignment of organizational factors to support change.

Your Change What is the key business driver for this change? What will it improve? What will be different? How will the changes be received? Your Change

Phase 3 – Designing and building the SOLUTION “Designing a High Performance Organization” Key Activities Work with your core team to Make Changes to the organization as needed Create any Functional / Process Design Update Process, Roles, Structure, Metrics, Teams, Technology [ALTER AS NEEDED] Deliverables An agreed upon design/solution that your stakeholders are in line with.

Alignment of all organizational elements are critical What are we trying to accomplish? Strategy Acquisition development, and use of competencies required for performance. Arrangement of resources, tasks, and accountabilities. People Structure Formal and informal measures that define success and are used to hold people accountable. Formal and informal ways things are done. Technology enablement of processes. Process & Technology Metrics

Your Change What are the key design elements of your change? Structure? Metrics? People? Your Change

Phase 4 – Implementation and achieving high performance “Achieving the desired business results” Key Activities Development of performance metrics that track the phases of: Implementation Utilization Realization Deliverables Performance metrics that track and measure success at three phases of the project: Implementation Utilization Realization

Your Change How will you know the change is successful?

Key takeaways Most change fails because the impacted are not involved. Change is a process, not an event. Link change to a business driver. Know the impact to key organizational elements. Be clear about what success of the change looks like.