1. Organizations Can Change (“How” is the Tricky Part)
Your Trusted Advisor for Business Consulting & IT Solutions
Organizations Can Change (“How” is the Tricky Part)
Robert R. Gleason
Vice President
The Revere Group
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

2. Purposes
Provide an overview of organization change management principals
Identify points where change efforts stall
Look at ways to prevent stalling (the “tricky part”)
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

3. Organization Change Management Principals
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4. How do people react to change?
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5. "We trained hard - but it seemed that every time we were beginning to form up into teams we were reorganized. I was to learn later in life that we tend to meet any new situation by reorganizing, and what a wonderful method it can be for creating the illusion of progress while actually producing confusion, inefficiency, and demoralization."
--Petronius Arbiter, 210 B.C.
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6. People don’t resist change
People don’t resist change. They resist the perception of the change being forced upon them.
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

7. “If there’s more change going on outside your company than inside your company, the end is near!” Jack Welch General Electric
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8. What is Change Management?
“The transforming of the organization so it is aligned with the execution of a chosen corporate business strategy. It is the management of the human element in a large-scale change project….”
Gartner Group
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

9. Change Management Value
Speed
Projects progress more quickly if the organization is prepared in advance
The more complicated the project, the more likely it is that organizational issues will slow it down and add to the cost
Integration
Changing and integrating enterprise business processes and business rules is much harder than building an enterprise application
The longer the integration of new processes and rules take, the longer it takes to realize the business value of the project
Reduced business disruption
Disruption of business, even if thought to be “minor”, has negative long-term hard dollar, soft dollar and goodwill impacts
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

10. What Does Change Look Like?
Performance
Future State
Current State
ASK “Anyone experience a significant change where people still talk about it - e.g., the old way was better?”
HOW DO WE HELP PEOPLE MAKE THIS TRANSITION?
Time
The expectation...
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

11. What Does Change Look Like?
Performance
Future State
Current State
Transition State
ASK “Anyone experience a significant change where people still talk about it - e.g., the old way was better?”
HOW DO WE HELP PEOPLE MAKE THIS TRANSITION?
Time
The reality...
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

12. How Change Efforts Stall
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

13. Romans to Romulins
“The two most common elements in the universe are hydrogen and stupidity.” Kiri Kin Tom Romulin philosopher
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

14. Speed and Integration Integration Time 100% Integration 2/3 1/3
John Kotter: reasons change initiatives fail:
Eight Common Errors
Allowing too much complacency.
Failing to create a sufficiently powerful guiding coalition.
Underestimating the power of vision.
Undercommunicating the vision by a factor of 10+.
Permitting obstacles to block the new vision.
Failing to create short-term wins.
Declaring victory too soon.
Neglecting to anchor the changes in the corporate culture.
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

15. How Change Initiatives Stall
Implementation vs. integration
The rule of thirds
Conceptual vs. practical
No articulation of the “new rules for success”
Underestimating the impact by 10x
Lack of cross functional involvement
Lack of emphasis on behavior change
Respectful of the past, focused on the future
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

16. The Rule of Thirds The Leading Third The Middle Third
The Trailing Third
View changes as opportunities
View changes skeptically
View changes as threats
Tend to be supportive and enthusiastic
Tend to wait to see who else is involved
Tend to work -- passively or actively -- against changes
Anxious to move forward
Tend to maintain the status quo
Find themselves involved in resistance efforts
Note: one’s position in the “thirds” appears to be based more on temperament than choice, although some people do consciously choose their position.
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

17. Managing the Change Process (The “tricky part”)
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

18. © 2006—The Revere Group, Limited an NTT Data Company
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

19. Understanding Clarify
Preparing for Change
Specific
Vision
Sponsorship
Communication
Organization Impact
Training/Integration
Support
Specificity
General
Awareness Inform
Understanding Clarify
Acceptance Convince
Commitment Involve
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

20. Can We Estimate the Need to Manage Change?
Potential areas for loss or undesirable cost in the absence of effective organizational change
Hard Dollar
Soft Dollar
Goodwill
Disruption of customer relationships result in lost revenue
Organizational silos survive, slowing change, adding drag and expense
Employees complain about “another bad system”
Project re-work because of wrong requirements
Poor preparation of staff leads to employee floundering & lost productivity
The public experiences “system problems”– affects the organization’s credibility
Dramatically increased support costs if people are not properly prepared
Employee turnover because they are not prepared for job changes
The investor community wonders about the company’s capabilities
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

21. For more information...
“The Heart of Change” by John P. Kotter (Harvard Business School Press, 2002)
“Leading Change” by John P. Kotter (Harvard Business School Press, 1996)
“Managing at the Speed of Change: Guidelines for Resilience in Turbulent Times” by Daryl Conner (Villard Books, 1993)
“Communicating Change: Winning Employee Support for New Business Goals” by T.J. Larkin & Sandar Larkin (McGraw-Hill, 1993)
“A Time for Boldness: A Story of Institutional Change” by Nancy L. Zimpher, et. al. (Anker Publishing Co., 2002)
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.

22. Organizations Can Change (“How” is the Tricky Part)
Your Trusted Advisor for Business Consulting & IT Solutions
Organizations Can Change (“How” is the Tricky Part)
Robert R. Gleason
Vice President
The Revere Group
© 2006—The Revere Group, Limited an NTT Data Company. All rights reserved.