The Use Of Change Management In Process Improvement Damon Werner, MBB Director of Business Process August, 2013

Agenda 1.Introduction and Background 2.View on the role of Change Management in Process Improvement 1. Project Success vs. Organizational Readiness 3.Methodology and Tools of choice 1. Threats vs. Opportunities 2. Elevator Speech 3. Stakeholder Analysis 4. TPC Analysis (Sources of Resistance) 5. 3 D’s (Influence Strategy) 4.Other Change Management Topics: 1. Skewed Adoption Curves in Technology Organizations 2. Downsizing and Change Management 3. Change Management and Customers

Current State Transition State Improved State Background for Change Mgmt Model

The Threats and Opportunity Matrix is completed early on as soon as leaders have committed to champion the change Perception of this division by other businesses Not following the expectations of Corp Leadership Employees will just spin, for lack of the tools Miss goals for Q1 Disappoint some by not following through Apathy of the staff due to previous track record on sticking to what we launch So much change, there may be skepticism Stigma around Six Sigma The perception that this effort is based around job elimination Hard because we are a reactive culture More attention that we’re already doing, like reacting Less distraction Able to fix some of our bigger/nagging pain points with a sustainable process Quick wins to prove the value of the effort Positive energy and retention strategy Consolidate systems in the short term Continued layoffs/repeat of history Never reach full integration of the business units Won’t grow top line revenue or get the cost out to reach the EBIT targets Won’t be viewed as a competitive business unit Hinder ability to attract talent, hurt job satisfaction We may not have the focus or effort behind this in the long haul Might not have the impact that is needed Career growth opportunity Build for efficiencies and become proactive Inherent culture that does it right the first time, expecting better quality Profitability, predictability and confidence in the business Creating A Shared Need Tool: Threat vs. Opportunity Matrix

5 Used For: Helping team members think about the future they are working to create 1. Imagine a point in the future when the project has been very successful. 2.Find words to describe what you would see, hear, feel as you observe key constituents functioning in the new, changed state. 3.Collate, debate, reach consensus, "test" on others and modify Shared Visions Come From Collective Efforts That Reflect Individual Perspectives Now Future Shaping A Vision Tool: Backward Imaging - Exercise

1. Imagine a chance meeting of a team member and a key stakeholder in a empty elevator. The ride is 90 seconds. 2. Describe the need for change and vision of the new state, as if answering the question “Why are we doing this?” Address the following elements: Problem/issue Benefit Where are we What others can do 3. Team members practice this “speech” so they can convey a uniform message to others Shaping A Vision Tool: Elevator Speech – Communicating the Vision

7 ► Identify which stakeholders could be considered an innovator, early adopter, late adopter or resistor, related to this change ► Determine what impact their attitude could have on making the change ► Determine which stakeholders should be approached first to start gaining momentum InnovatorsResistors Early Adopters Late Adopters % of Population Mobilizing Commitment Adoption Strategy

The Stakeholder Analysis helps the team answer the questions: Who are the stakeholders? Where do they currently stand on issues associated with the change Where do we “need” them to be in terms of their level of support What do you need them to do, or what is the win associated with getting them on board?   G. James Mobilizing Commitment Tools: Stakeholder Analysis

Articulating the Glue or Cultural Norms ► Locked into an old “Mindset” ► Afraid of letting go ► “We don’t do it that way.” Cultural Allocating Power & Resources ► Relationships ► Power & Authority imbalance or self- preservation Political Aligning & Structuring Organizations ► Lack of skills / training / equipment ► Sunk Costs Technical RatingExamples Definition: Causes of Resistance Source of Resistance Mobilizing Commitment Tool: Technical-Political-Cultural Analysis The TPC Analysis seeks to identify, label and understand sources of resistance, and help build a specific strategy to use to influence and gain support

Demonstrate: ► Best Practices ► Visiting other organizations ► Panels/pilots/testimonials The 3 Ds are used to generate evidence or proof of the opportunity. It also helps to create a robust communication plan/story for the change. Need to GetHave NowTypes of Proof Demand: ► Dynamic leadership (setting high standards/ accountability) ► Customers/Suppliers/ Competitors (Internal and External) Data/Facts: ► Numbers/Trends/Statistics ► Graphs/Financials ►Benchmark/Competitive Data Need to Get Have NowTypes of Proof Mobilizing Commitment Tool: 3Ds Win

Tactics & Tools Include: Influence Strategy Used For: Identifying what the issues are, who can best influence, and how can they be best influenced Mobilizing Commitment Tool: Overall Influence Strategy

Who are two of your most important stakeholders? What are their: –Issues –Wins –Influence Strategies Exercise Identify the Stakeholders for your project

1.Skewed Adoption Curves in Technology Organizations 2.Downsizing and Change Management 3.Change Management and Customers Questions or Other Topics

InnovatorsResistors Early Adopters Late Adopters Normal Curve Innovators Resistors Early Adopters Late Adopters Skewed/Technology Adoption Curves