Change Management

Why change management  For many change practitioners, there is no doubt that change management must be used on projects that impact how people do their jobs. A great solution and a well managed project are not enough to ensure success. Written another way: Myth: A great solution + Effective project management = Project success  The missing piece of the equation above is change management. Managing the human side of change is key to meeting objectives. Although the answer may be obvious to you, you might be tasked with answering "why change management?" for some people in your organization.

What can happen if change is NOT managed? What can happen if change is EFFECTIVELY managed?  Productivity declines as people become more consumed with the change being introduced.  Passive resistance festers.  Active resistance emerges and sabotages the change.  Valued employees leave the organization, a very costly proposition in terms of the lost contribution and the cost to replace them.  Employees become disinterested in the current state and the future state.  Employees begin arguing about change and the direction of the company.  People are left to wonder why the change is happening.  More people begin taking sick days or not showing up for work.  Employees have a solid understanding of why change is happening.  Employees engage in both the solution and the change.  Training is used to build knowledge after employees have made the personal decision to support the change.  Resistance is identified and dealt with early in the process.  Senior leaders demonstrate their own and the organization's commitment to the change.  Communications are segmented and customized for different audiences, answering the questions that they care about.  Momentum is built throughout different areas and levels within the organization.

ROI of Change Management Model  Return On Invesment model shows the three human factors that limit or contribute to the ROI a project can realize:  Speed of adoption - 'how quickly' do people being doing their job the new way, whether it is a new process, system, tool or job role  Ultimate utilization - 'how many' of the entire group participate in the change  Proficiency - 'how effective' are each and every employee at doing their job the new way

Correlation of change management and project success  To what degree did the project meet objectives?  To what degree was the project on schedule?  To what degree was the project on budget?  What was the overall effectiveness of the change management program? We measure the change management effectiveness by asking..

1 Create Urgency 2 Form a Powerful Coalition 3 Create a Vision for Change 4 Communicate the Vision 5 Remove Obstacles 6 Create Short-term Wins 7 Build on the Change 8 Anchor the Changes in Corporate Culture Kotter's 8-Step Change Model

Step 1: Create Urgency  Identify potential threats, and develop scenarios showing what could happen in the future.  Examine opportunities that should be, or could be, exploited.  Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking.  Request support from customers, outside stakeholders and industry people to strengthen your argument.

Step 2: Form a Powerful Coalition  Identify the true leaders in your organization.  Ask for an emotional commitment from these key people.  Work on team building within your change coalition.  Check your team for weak areas, and ensure that you have a good mix of people from different departments and different levels within your company.

Step 3: Create a Vision for Change  Determine the values that are central to the change.  Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization.  Create a strategy to execute that vision.  Ensure that your change coalition can describe the vision in five minutes or less.  Practice your "vision speech" often.

Step 4: Communicate the Vision  Talk often about your change vision.  Openly and honestly address peoples' concerns and anxieties.  Apply your vision to all aspects of operations – from training to performance reviews. Tie everything back to the vision.  Lead by example.

Step 5: Remove Obstacles  Identify, or hire, change leaders whose main roles are to deliver the change.  Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they're in line with your vision.  Recognize and reward people for making change happen.  Identify people who are resisting the change, and help them see what's needed.  Take action to quickly remove barriers (human or otherwise).

Step 6: Create Short-term Wins  Look for sure-fire projects that you can implement without help from any strong critics of the change.  Don't choose early targets that are expensive. You want to be able to justify the investment in each project.  Thoroughly analyze the potential pros and cons of your targets. If you don't succeed with an early goal, it can hurt your entire change initiative.  Reward the people who help you meet the targets.

Step 7: Build on the Change  After every win, analyze what went right and what needs improving.  Set goals to continue building on the momentum you've achieved.  Learn about kaizen, the idea of continuous improvement.kaizen  Keep ideas fresh by bringing in new change agents and leaders for your change coalition.

Step 8: Anchor the Changes in Corporate Culture  Include the change ideals and values when hiring and training new staff.  Publicly recognize key members of your original change coalition, and make sure the rest of the staff – new and old – remembers their contributions.  Create plans to replace key leaders of change as they move on. This will help ensure that their legacy is not lost or forgotten.