Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop July 13, 2006

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop2July 13, 2006 Agenda Overview Stakeholder Analysis Strategies Integrated Planning Questions?

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop3July 13, 2006 Overview

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop4July 13, 2006 What is Change Management? From Wikipedia.org Organizational change management is the process of developing a planned approach to change in an organization. Typically the objective is to maximize the collective benefits for all people involved in the change and minimize the risk of failure of implementing the change. The discipline of change management deals primarily with the human aspect of change, and is therefore related to pure and industrial psychology.

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop5July 13, 2006 Bridges Transition Model From Dr. William Bridges, Ph.D., Transition The Personal Path Through Change : Phase 1: Endings: Every transition begins with an ending, a loss. When things change, people leave behind the way things were and the way they were in the previous situation. They may be left searching for a new way to define themselves. Phase 2: The Neutral Zone The neutral zone is a confusing in-between state, when people are no longer who and where they were, but are not yet who and where they're going to be. Although the neutral zone can be distressing, it also provides many opportunities for creative transformation. Phase 3: New Beginnings A new beginning can only happen after people have let go of the past and spent some time in the neutral zone. In this phase, people accept the reality of the change and start to identify with their new situation.

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop6July 13, 2006 FUD F EAR U NCERTAINTY D OUBT

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop7July 13, 2006 FUD – The Consequences The most talented and marketable resources will opt for more certain employment (with someone else) Turnover will be higher It will be difficult to attract new talent to the organization Personal productivity will be impacted Business as usual and transition work will get mixed up – loss of focus on both Lines of authority and job responsibilities will become blurred Communications will become reactive – countering misinformation The outside world will know about the FUD

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop8July 13, 2006 FUD – The Strategy Acknowledge that not everything is known or decided If you dont have the answer to the question, know how and when you will Know how everyone will be involved in the process of creating certainty Have a solid plan and demonstrate that you are following it to build confidence Counter balance FUD with visible competent leadership

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop9July 13, 2006 The Planning Process 1. Stakeholder Analysis 2. Develop Strategies Staffing Strategy Communications Strategy Change Management Strategy 3. Develop Integrated Project Plan 4. Execute

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop10July 13, 2006 Stakeholder Analysis

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop11July 13, 2006 Stakeholder Analysis Process Identify Stakeholders 1. Identify Stakeholders 2. Analyze Needs and Wants 3. Identify Barriers to Change 4. Best Means for Communication 5. Ideas for Participation and Leveraging their Skills and Knowledge

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop12July 13, 2006 Use a Simple Table StakeholderNeeds and Wants Barriers to Change Best Means Ideas for Participation

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop13July 13, 2006 Merger Scenario You are the owner of a privately owned business in Halifax with a significant market share in Ontario, Quebec and Atlantic. You have worked out a deal with a Calgary based company with products in the same sector (but not a competitor) to merge into a Canada-wide public company. There are about 200 employees in each company. Your operations overlap in the Ontario and Quebec markets, each with sales and distribution offices in Toronto, London, Montreal, and Quebec. Your primary assumptions for this merger are to increase market share for each product line while at the same time improving costs by consolidation of some assets and reduction in overheads. You expect some reduction in total staff at first but you anticipate that the new company will grow at a rate of at least 10% per year after the merger is complete.

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop14July 13, 2006 Who are the Stakeholders? Executive Management Management Employees Customers Shareholders Distributors Retailers

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop15July 13, 2006 Exercise One – Stakeholder Analysis For your assigned Stakeholder group complete the analysis: 1. Analyze Needs and Wants 2. Identify Barriers to Change 3. Best Means for Communication 4. Ideas for Participation and Leveraging their Skills and Knowledge

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop16July 13, 2006 Strategies

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop17July 13, 2006 Staffing Strategy Are there going to be jobs lost? If so, how many? How will you decide who gets the jobs in the new organization structure? Who will decide if I am going to get fired or not? When and how will I know what is going to happen to me? If I get to stay will my pay and benefits change? What happens if I get fired? How will I know that you are going to treat me fairly? Who do I go to if I have questions about my employment? Could my job be moving to another city? If so, will you help me move? How will you reduce the risk of constructive dismissal and legal challenges?

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop18July 13, 2006 Communications Strategy Why is this happening? What are the benefits that you hope to achieve? Where can I go to find out more information about the changes? What means will you be using to communicate this to all the stakeholders? What are the key messages that everyone needs to know by heart? When and how often will you be providing more information? What role will leaders play in the communications plan? How will stakeholder feedback be gathered? How will the effectiveness of your communications be measured? What protocol will be used with external media?

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop19July 13, 2006 Change Management Strategy How will you come up with the new organization structure? How are you going to figure out what changes will be made to our business processes? What resources (financial and human) will be required to do the transition work? How will I keep day to day operations humming while all this is going on? What expertise will I need that I dont have to carry out the transition? Which systems will we be using to run the organization going forward? How will you help me to learn the skills I need to do my new job? Who will be training me? When will I stop doing my current job and move into my new role? How can I learn more about the overall changes that are occurring? Will I get a chance to participate in the development of the new roles and processes?

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop20July 13, 2006 Exercise Two – Developing Strategies Group 1: Staffing Strategy – Come up with a Strategy for how jobs will be filled in the resulting organization Come up with alternatives Pick the one that makes the most sense for the scenario Group 2: Communications Strategy – Develop 2 Key Messages Come up with what you think will be the most frequently asked questions Choose 2 and develop key messages for each Group 3: Change Management Strategy – Come up with a strategy to determine the location(s) of Head Office functions for the combined organization Come up with alternatives Pick the one that makes the most sense

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop21July 13, 2006 Integrated Planning

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop22July 13, 2006 Integrated Planning Why integrated planning? Systems facilitate communications Communications facilitate participation Participation enhances training Business processes, systems and job descriptions are intertwined External stakeholders will notice as soon as the left and right hands are not acting together

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop23July 13, 2006 Achieving Integrated Planning Have a cross company Executive Steering committee Have a dedicated Project Team to lead the transition Provide project management support to management through the dedicated project team Have HR and Communications as key members of the Executive Steering Committee and the Project Team Identify milestones and key indicators and report on them regularly

Gerry Giffin Helping Organizations Manage Change Change Management Skills Workshop24July 13, 2006 Questions?

Gerry Giffin Helping Organizations Manage Change Thank You