© University of Wisconsin-Madison 1

Introduction to theOrganizational Change Manager

(OCM)

How to Predict and Improve your Chances for a Successful Project

Learning ObjectivesUpon completing this module, you will be able to:

Understand the nature and proper use of the Organizational Change Manager (OCM)

Understand the different types of organizational change.

Understand the four phases of change initiatives and the 15 factors comprising the OCM model

Use the OCM Scoring Guide to collect information for assessing the project readiness of your organization

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Overview of OCM

• Research-based; tested in > 500 projects

• Input: Check “Yes/No” to four questions for each of 15 factors

• Outputs: – The OCM Model provides a score that defines the

likelihood (chance) of having a successful project versus an unsuccessful project (if all the factors remain the same).

– Helps the team analyze the strengths and opportunities for improvement in the project/organization

– Helps to bring about a better understanding by the entire team of what it is are trying to accomplish with the project, and monitor progress over time.

Process Change

• When an organization changes the nature or sequence of a series of related tasks/steps in order to accomplish a specified task.

• Examples are: changing the process of handling nonconformances or changing the process of billing. Thus process changes are primarily procedural in nature and there is little of any change in the way people think about their jobs.

• Apriori Chance of Success? 1 out of __

Cultural Change

• When the organization tries to change the way people think and act in doing their jobs. Cultural changes thus address the established ”norms of behavior", that is, the ways in which people are expected to approach their work and interact with one another.

• Examples are: An organization is attempting to change the ways they treat customers to be more customer focused. Likewise, changing the way people work together in an organization to share information, identify problems, and focus on continual improvement.

Apriori Chance of Success? 1 out of __

1. ProjectStart

2. Problem Exploration

3. Solution Development

4. Solution Implementation

& Testing

SolutionPlan

Successful Change

Modify?

Four Phases of Change Initiatives

Project Start Factors

1. Project Launch

2. Project Champion

3. Linkage of Goals and Communications with Senior Leadership Level

1. Project Launch

• Gain Senior Leadership Support

· Establish a Clear Aim and Measures

· Make the Status Quo Unacceptable

· Formally Recognize Project Champion

2. Project Champion· Select effective Champion (s)

· Enhance the Champion's Power and Prestige

· Gain Commitment

· Gain Staff Respect for Champion

3. Senior Leadership Linkages & Communication

· Get Leaders to Visibly Endorse the Plan / Change Initiative

· Keep the Leaders Informed

Relative Importance of Project Start Factors?

• Most Important (#1)

• 2nd Most Important (#2)

• Least Important (#3)

• Project Launch

• Project Champion

• Linkage and Communications with Senior Leadership Level

The Experts Say…

0.000

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

OCM Factor

Strength of OCM Factors

1. ProjectStart

2. Problem Exploration

3. Solution Development

4. Solution Implementation

& Testing

SolutionPlan

Successful Change

Modify?

Four Phases of Change Initiatives

Problem Exploration Factors

4. Linkage and Communications with Operating Unit Managers

5. Linkage and Communications with Operating Unit Staff

6. Tension for Change

7. Problem Exploration

8. External Influence

4. Unit Managers: Linkages & Communication

· Gain the Endorsement of Middle Managers

HOW?• The project, if successful, will meet an important operating

unit goal• Mechanisms have been defined to keep key managers

informed and involved• The operating unit managers openly endorse the project.• These managers have committed to spend their time and

resources to remove obstacles when they arise in the project

5. Operating Unit Staff Linkages & Communication

· Get Informal Opinion Leaders & Staff to Endorse the Solution

· Keep the Staff Informed· Keep constant stream of info to address the what, why,

when, who, and how of the project

· Provide “safe” mechanisms for employee feedback

· Provide evidence that similar changes have been made successfully at other organizations

· Address the WIN/WIN aspects

6. Tension for Change

· Convince the Target Group that Change is Necessary

· Prove that Change Will Work

· Track Tension for Change over Time – Tension Changes…

7. Problem Exploration

· Identify the problem · Identify how customers are affected by problem.

· Explore the nature of the problem and involve the users· Flowchart: learn process & effect on customers. · Walk through process to see the problems.

· Use team based management and planning tools

8. External Influence

• Reach outside the industry

• Find analogous situations

• Find theoretical & practical experts

• Customer influence and pressure

• Marketplace drivers

Relative Importance of Problem Exploration Factors?

• Most Important

• 2nd Most Important

• Least Important

• Linkage and Communications with Operating Unit Managers

• Linkage and Communications with Operating Unit Staff

• Tension for Change

• Problem Exploration

• External Influence

The Experts Say…

0.000

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

OCM Factor

Strength of OCM Factors

1. ProjectStart

2. Problem Exploration

3. Solution Developmen

t

4. Solution Implementation

& Testing

SolutionPlan

Successful Change

Modify?

Four Phases of Change Initiatives

Solution Development Factors

9. Relative Advantages of the Potential Change(s)

10. Project Funding

11. Flexibility of the Solution Design

“We can tailor this solution to fit the unique needs of the staff and the situation”.

1. ProjectStart

2. Problem Exploration

3. Solution Development

4. Solution Implementation

& Testing

SolutionPlan

Successful Change

Modify?

Four Phases of Change Initiatives

Implementation and Testing Factors

12. Complexity of the Implementation Plan

13. Staff Changes Required

14. Work Environment

15. Testing and Refinement

12. Implementation Complexity

· Create a Simple, Detailed Implementation Plan & Schedule· Realistic times and assigned activities

· Ensure the Solution is Understood– Communicate, communicate, communicate

13. Staff Changes Required

· Limit Job Changes· Identify the kinds of job/skill changes that will be

needed.· Modify the solution if possible to ensure that the staff

will not have to make the most difficult of changes. · Provide Adequate Training

· On-going support until established

14. Work Environment

· What things will Really Have to Change to Allow This Solution to Work?· Policies?· Procedures?· Incentives?

· Take the “status quo” off the Table, Make it Impossible to Return to the “Old Way”.

15. Testing and Refinement

· Establish Risk Free Feedback Mechanisms

· Setup a Transition Monitoring Team (TMT)

· Collect honest reactions from customers and staff, and respond

· Publicly display performance measures over time

· Use results to make continued improvements

The Experts Say…

0.000

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

OCM Factor

Strength of OCM Factors

The OCM Scoring Guide

Factor Yes No Project Start

You and the Senior Leadership Team:1a. Carefully selected the project1b. Provided a very clear aim for the project1c. Indicated that not changing is unacceptable and set a firm deadline1d. Designated a champion(s) to make the project succeed

Project Champion:2a. Was very committed to making this project successful2b. Had substantial power to make things happen2c. Had substantial prestige in the organization2d. Showed respect for the involved staff

3a. The project, if successful, would help the organization meet corporate goals3b. Mechanisms have been developed to keep leaders informed and involved3c. Leaders have endorsed the project in visible ways3d. Leaders have committed to spend their time and resources to remove obstacles when they arose in the project

1. Project Launch

2. Project Champion

3. Linkage and Communication

Senior Leadership

Level

Homework Assignment

• Use the OCM to evaluate your project.

• We will discuss this in the live class this week

C 1999-2010, David H. Gustafson and Harold J. Steudel

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OCM References

Gustafson, Edwards and Phillips "Subjective Probabilities in Medical Diagnosis," IEEE Trans on Man-Machine Sys 10( 3), Sept 1969.

Gustafson, Greist, Kestly and Jensen, "Initial Evaluation of Subjective Bayesian Diagnostic System," Health Services Research, Fall, 1971.

Gustafson, Cats-Baril & Alemi (1992) Systems to Support Health Policy Analysis, Health Administration Press.

Gustafson, Sainfort, Johnson, Sateia, et al, “The Construction, Reliability, Validity, Application and Impact of a Quality Index for Psychiatric Emergency”, Health Services Research 28(2), 1993.

Gustafson D., Sainfort F., Eichler M., Adams L., Bisognano M., and Steudel H., (2003) The Developing and Testing a Model to Predict Outcomes of Organizational Change" Health Services Research, V38, N2, April 2003.