change management module

Confidential & Proprietary • Internal Kaplan Use Only.

Change Management

Process Improvement Team


CHANGE MANAGEMENT: RESULTS

___% of change initiatives fail to achieve desired outcomes

2006 Study in Harvard Business Review

___% of organizations experience a decline in workforce

productivity during change management initiatives

Recent research by Accenture

___% of organizations experience a decline in employee

engagement after a major cultural change

2005 report from Towers Perrin


Implementing Effective Change requires that

Solutions be addressed hand in hand with the

Acceptance of the People

Your Change

(A)Acceptanceof the People

(E) EFFECTIVE CHANGE

(S)Solution’sCapability


Change Management

Change Management Addresses the Human

Element of Change


CHANGE MANAGEMENT: DEFINITION

The process, strategies, and activities that support

organizational and personal transitions from the

current state, to the desired future state, in order to

achieve and sustain the desired business vision and

strategy.

CHANGE MANAGEMENT: DEFINITION


WHY CHANGE MANAGEMENT?

We have significant business challenges

Changes are required to respond to these challenges

We all need change management skills to

successfully implement these business changes


FOCUS ON LEADERSHIP

“Because of the seriousness of today’s change related

problems and the great potential for opportunities. It is

essential that as many people as possible learn how to

better assimilate major transitions. This challenge is best

approached, however, by those in leadership positions.”

Daryl R. Conner, Managing At The Speed of Change


GOAL OF CHANGE MANAGEMENT

TIME

BU

SIN

ES

S P

ER

FO

RM

AN

CE

Denial

Anger

Depression

Bargaining

1. Minimize the dip

2. Ensure change is sustainable

Acceptance


• Establishes strategic vision and manages

goals to fulfill it

• Inspires others to see the strategic vision and

their part in it

• Builds a strong team with clear roles for team

members

• Demonstrates passion and enthusiasm

• Builds trust with internal and external

customers

• Communicates personal and business

perspective and values

Leadership Developing People

Change Agent

Analysis

• Motivates and empowers others

• Hires and staffs effectively

• Provides direct reports with feedback

and coaching

• Delegates work effectively

• Creates clear lines of accountability

• Fosters a high performance team

• Manages conflict

CommunicationProblem Solving

& Execution

• Participates in and drives change in the

organization

• Manages others through change

• Adjusts priorities to changing situations

• Demonstrates organizational agility and

versatility

• Embraces innovation

• Articulates a clear and compelling message

• Uses business communication skills and

etiquette

• Influences, persuades and negotiates

effectively

• Listens and inquires (vs. advocates)

• Communicates assertively and with

confidence

• Facilitates effective meetings

• Plans and executes projects effectively

• Establishes standards and

measurements

• Sets priorities

• Manages risks

• Holds self accountable for problems in

own area of control

• Demonstrates proficiency in fundamental

financial and business concepts

• Applies financial knowledge to business

risks/opportunities

• Understands business

interrelationships/how things work

together

• Gains insight from business experience

• Uses financial analysis to deliver results

KAPLAN COMPETENCIES


CHANGE MANAGEMENT: FORMULA

14

E = S X A

Effectiveness = Solution Capability X Acceptance

Today we will focus on the A


DO THE MATH…

E = S X AEffectiveness = Solution Capability X Acceptance

________E =____________ S X ___________ A

________E =____________ S X ___________ A

________E =____________ S X ___________ A


FOCUS OF THIS MODULE

How individuals react to change

Individuals Response to Change

Steps to successfully implement change

Organizational Change Model


THE EMOTIONAL RESPONSE TO CHANGE


I’m driving the

changeI’m not

driving the

change, but it

affects me

WHAT IS YOUR ROLE?


I’m driving the changeDog, Dolly and Cat, Mr. Darcey

Not involved in decision

DEE MANAGING CHANGE

Family, we are

moving from

the North GA

mountains to

Ft Lauderdale!

Meow?

Say

what?


DENIAL

This can’t be

happening to me.


ANGER Meow!!!


BARGAINING

Let’s discuss some

alternatives…how

about you move

and come visit us?


DEPRESSION


ACCEPTANCE

Florida, here we

come.


Stages of emotional response to change

Receive

news of the

change

Based on Elizabeth Kubler-Ross Model analyzing the emotional responses to grief by terminally

ill patients


Stage Potential

Responses

Suggestions to

Overcome

Denial

Anger

Bargaining

Depression

Acceptance

5 STAGES OF EMOTIONAL RESPONSE TO

CHANGE


EXAMPLE: 5 STAGES OF EMOTIONAL RESPONSE TO

CHANGEEmotional Response Response Suggestion to Overcome

Denial

Problem has corrected itself and it will be over soon

Review Business Case

Exhibit apathy and numbness Emphasize that change will happen

Rationalize change away Allow time for change to sink in

Anger

Sabotage the change effort Acknowledge legitimacy of anger

Play "Shoot the Messenger"Distinguish between feelings and inappropriate behavior

Withdraw from teamRedirect the blame from the change agent to the real reason necessitating the change (goals of the organization/business case)

BargainingCut a deal to spare them

Focus on how the individual or their area will benefit from the change

Suggest other concerns to redirect problem solving

Keep problem focused on the root cause

DepressionExpress a loss of control over the work environment

Provide a series of specific next steps and follow-up frequently

Increase in absenteeism Reinforce positive actions the individual takes

AcceptanceExpress ownership for solutions Use the individual as a coach or mentor for others

Focus on achieving benefits Provide recognition for their efforts.


FOCUS OF THIS MODULE

How individuals react to change

Individuals Response to Change Steps an

organization needs to take to successfully implement change

Organizational Change Model


JOHN P. KOTTER WRITES:

OVER THE PAST DECADE, I HAVE WATCHED MORE THAN A HUNDRED

COMPANIES TRY TO REMAKE THEMSELVES INTO SIGNIFICANTLY BETTER

COMPETITORS. THEY HAVE INCLUDED LARGE ORGANIZATIONS (FORD) AND

SMALL ONES (LANDMARK COMMUNICATIONS), COMPANIES BASED IN UNITED

STATES (GENERAL MOTORS) AND ELSEWHERE (BRITISH AIRWAYS),

CORPORATIONS THAT WERE ON THEIR KNEES (EASTERN AIRLINES), AND

COMPANIES THAT WERE EARNING GOOD MONEY (BRISTOL-MYERS SQUIBB).

THEIR EFFORTS HAVE GONE UNDER MANY BANNERS: TOTAL QUALITY

MANAGEMENT, REENGINEERING, RIGHT-SIZING, RESTRUCTURING, CULTURAL

CHANGE, AND TURNAROUND. BUT IN ALMOST EVERY CASE THE BASIC GOAL

HAS BEEN THE SAME: TO MAKE FUNDAMENTAL CHANGES IN HOW BUSINESS IS

CONDUCTED

IN ORDER TO HELP COPE WITH A NEW, MORE CHALLENGING MARKET

ENVIRONMENT.

A FEW OF THESE CORPORATE CHANGE EFFORTS HAVE BEEN VERY

SUCCESSFUL. A FEW HAVE BEEN UTTER FAILURES. MOST FALL SOMEWHERE IN

BETWEEN, WITH A DISTINCT TILT TOWARD THE LOWER END OF THE SCALE.

John Kotter


INDIVIDUAL ACTIVITY

•5 Minutes: Think of successful changes you have

experienced in the work environment .

•Record the characteristics/elements of the

successful change

_Example: Clear Vision

__________________________________________________

__________________________________________________

__________________________________________________

_


GROUP ACTIVITY - COMPARE YOURSELF TO

THE EXPERTS

• Discuss with your group the

characteristics/elements of the

Successful change

•Record on flip chart the common

elements/characteristics of a

successful change

Successful

Change

Elements


JOHN KOTTER. A PROFESSOR AT HARVARD BUSINESS

SCHOOL, KOTTER INTRODUCED HIS EIGHT-STEP CHANGE

PROCESS IN HIS 1995 BOOK, "LEADING CHANGE."

Source: http://www.kotterinternational.com/KotterPrinciples/ChangeSteps.aspx


THE KOTTER MODEL THE MODEL IS BASED ON RESEARCH WHICH

SHOWS THAT THERE ARE EIGHT CRITICAL STEPS AN ORGANIZATION

OR SERVICE NEEDS TO GO THROUGH TO ENSURE THAT CHANGE

HAPPENS AND STICKS.

THESE STEPS ARE:

1. ESTABLISH A SENSE OF URGENCY.

2. FORM A POWERFUL, GUIDING COALITION.

3. CREATE A VISION

4. COMMUNICATE THE VISION.

5. EMPOWER OTHERS TO ACT ON THE VISION

6. PLAN AND CREATE SHORT TERM WINS

7. CONSOLIDATE IMPROVEMENTS AND PRODUCE STILL MORE CHANGE

8. INSTITUTIONALIZE NEW APPROACHES


Step 1:

Acting With Urgency Examine market and competitive realities

Identify and discuss crises, potential crises or major opportunities

Step 2:

Developing the Guiding Coalition

Assemble a group with enough power to lead the change effort

Encourage the group to work as a team

Step 3:

Developing a Change Vision

Create a vision to help direct the change effort

Develop strategies for achieving that vision

http://www.kotterinternational.com/KotterPrinciples/ChangeSteps/Step1.aspx





Step 4:

Communicating the Vision Buy-in

Use every vehicle possible to communicate the new vision and strategies

Teach new behaviors by the example of the Guiding Coalition

Step 5:

Empowering Broad-based Action

Remove obstacles to change

Change systems or structures that seriously undermine the vision

Encourage the risk-taking and nontraditional ideas, activities, and actions

Step 6:

Generating Short-term Wins

Plan for visible performance improvements

Create those improvements

Recognize and reward employees involved in the improvements





Step 7:

Don't Let Up

Use increased credibility to change systems, structures and policies that don't

fit the vision

Hire, promote, and develop employees who can implement the vision

Reinvigorate the process with new projects, themes, and change agents

Step 8:

Make Change Stick

Articulate the connections between the new behaviors and organizational

success

Develop the means to ensure leadership development and succession




HOW MANY OF THE 8 DID YOU IDENTIFY?

Successful

Change

Elements


PER JOHN KOTTER VIDEO

WHAT IS URGENCY?

WHY DO WE NEED URGENCY?

WHAT IS FALSE URGENCY?

WHAT HAVE YOU EXPERIENCED A

KAPLAN? AT OTHER COMPANIES?

ALSO: 11 MIN KOTTER ON URGENCY

HTTP://WWW.YOUTUBE.COM/WATCH?V=ZD8XKV2UR_S

video 4 Min Kotter on Urgency

http://www.youtube.com/watch?v=U5802F

BaMSI&feature=channel

http://www.youtube.com/watch?v=zD8xKv2ur_s


EXERCISE – REPORT OUT ON KOTTER VIDEO


ORGANIZATIONAL CHANGE PROFILE

2. Form a

powerful

guiding

coalition

1.Create

and

maintain

Sense

of urgency

3. Create

Vision in

behavior

terms

4. Mobilize

people to act on

the vision

5. Plan and

create short

term wins

6. Monitor the

progress

7. Alter the

Systems &

Structures

Well

Done

Not

Done

Individual

Exercise


EXAMPLE: HOW SUCCESSFUL WAS THIS

CHANGE?

2. Form a

powerful

guiding

coalition

1.Create

Sense

of

urgency

3. Create

vision

4. Communicate

vision

5. Empower

others to act on

the vision

6. Plan and

create short

term wins

7.Consolidate

improvements

and produce still

more change

8.Institutionalize

new

approaches

Well

Done

Not

Done


THE END

change management module

Documents

change initiatives

dipensure change

change management skills

desired business vision

business perspective

harvard business review

desired outcomes2006

major transitions