Managing Organizational Change Jack Smalley, SPHR Director, Human Resources

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Ten Business Drivers for Organizational Change 2009/2010 recession New leadership Move to shared services Outsourcing Mergers/acquisitions

Ten Business Drivers for Organizational Change Downsizing/rightsizing Going for growth Under new management New technology Going public

Interesting Facts 95% of companies are going through organizational change 30% are due to change in upper management including HR Why organizational change fails 60% of the time

Top Five Types of Change Initiatives: Structural Cultural Process Cost-cutting Leadership

For Organizational Change To Be Effective You Must Have: Leadership Don’t waste time waiting for orders Effectiveness depends on credibility Admit mistakes Team reconstruction bogs down when employees stop believing in leaders

20-50-30 Rule 20% of employees are “change friendly” 50% of employees are “fence sitters” 30% of employees are “resisters” The “resisters” make the most noise and require the majority of your time Spend your time wisely with the “fence sitters”

For Organizational Change To Be Effective You Must: Seek opportunities to involve your people Find an immediate role for the 20% “change friendly” group Use your employees for the design phase

For Organizational Change To Be Effective You Must: Analyze your people assets Identify subject experts Mix together right combinations Spread out the talent Surround yourself with the best and most trusted employees Re-recruit your keepers

Competencies Needed to Lead Change Integrity Honesty Trust Communication skills Presentation skills Leadership skills

Competencies Needed to Lead Change Proven track record Ability to win over peers Relationship skills - Know your audience - Get out of your office Financial and metrics knowledge Conflict resolution

Your Role in Communicating Change MANAGE IT FROM BEGINNING TO END Change initiatives usually fail due to poor communication which breeds conflict

Your Role in Communicating Change Communicate everything Often Good news Bad news Dispel rumors “ME” issues Avoid promises

Key Points to Managing Change Communication Don’t surprise employees Give employees a voice Communicate change timely and thoroughly Ensure effective manager-subordinate relationships Deal quickly with conflict For HR to sell change we must get employees at all levels engaged in the process.

Resistance to Organizational Change

Wear Your Commitment on Your Sleeve Most resistance dies out once employees believe change is finished Softening your position stiffens the resistance Actions speak louder than words Resisters beware It’s time to get on board

Resistance Be prepared for resistance from: Above Sideways Below *Don’t assume they believe your mission.

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