making change management work - congrès hr · 05-19-2014 ceb corporate leadership council™ open...
TRANSCRIPT
05-19-2014
© 2016 CEB. All rights reserved. CLC6282616SYN
A Framework for Member ConversationsThe mission of CEB Inc. and its affiliates is to unlock the potential of organizations and leaders by advancing the science and practice of management. When we bring leaders together, it is crucial that our discussions neither restrict competition nor improperly share inside information. All other conversations are welcomed and encouraged.
Confidentiality and Intellectual PropertyThese materials have been prepared by CEB Inc. for the exclusive and individual use of our member companies. These materials contain valuable confidential and proprietary information belonging to CEB, and they may not be shared with any third party (including independent contractors and consultants) without the prior approval of CEB. CEB retains any and all intellectual property rights in these materials and requires retention of the copyright mark on all pages reproduced.
Legal CaveatCEB Inc. is not able to guarantee the accuracy of the information or analysis contained in these materials. Furthermore, CEB is not engaged in rendering legal, accounting, or any other professional services. CEB specifically disclaims liability for any damages, claims, or losses that may arise from a) any errors or omissions in these materials, whether caused by CEB or its sources, or b) reliance upon any recommendation made by CEB.
300K+
Business
Professionals
30+
Years of
Experience
110+
Countries
Represented
10K+
Participating
Organizations
90%
of the
Fortune 500
85%of the
FTSE 100
Nearly 75%of the Dow Jones
Asian Titans 50
Our
Privilege to
Serve You
CEB enables more precise talent management by delivering insights and solutions to drive your business performance.
CEB Talent
Management
CEB Leadership Councils
Metrics That Matter™
CEB (SHL) Talent Assessment
Leadership Academies/Effortless/SES & MES
Work-force Surveys
CEB Perform-ance Impact Solutions
CEB TalentNeuron / (Wanted)
Plan Recruit Assess Develop Engage Perform| | | | |
Sunstone Analytics
3
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
0% 40% 80%
1%
29%
52%
61%
69%
78%
Change Initiatives Expected in the Next Three Years
ORGANIZATIONS OVERWHELMED WITH CHANGE
None
Leadership Transition
Market Expansion
Merger or Acquisition
Restructuring
Culture Change
n = 305 organizations.Source: CEB HR Change Readiness Survey.
n = 305 organizations.Source: CEB HR Change Readiness Survey.
Five Enterprise Changes in the Past Three Years
of organizations expect the same number of change initiatives.
of organizations expect more change initiatives.
of organizations expect fewer change initiatives.Organizations Undertaking Change
Initiatives in the Past Three Years
73%
14%
13%
4
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
FEW CHANGES ACHIEVE GOALS OR ARE COMPLETED QUICKLY ENOUGH
n = 413 changes.Source: CEB HR Change Readiness Survey.
Leaders and HR Dissatisfied With Speed of Implementation
Organizational Change SuccessPerformance Against Organizationally Defined Goals
n = 6,686.Source: CEB 2016 Workforce Change Survey.
53% of Leaders Agree That
Change Needs to Be Completed Faster
Heads of HR Dissatisfied with Change Implementation Speed
Leaders Dissatisfied with Change Implementation Speed
n = 102.Source: CEB 2016 Change Management Head of Function Survey.
66% of Heads of HR Agree
That Change Needs to Be Completed Faster
50% Clear Failures
16% Mixed Results
34% Clear Successes
6
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
Agree
26%
Disagree
74%Disagree
83%
Agree
17%
EMPLOYEES ARE NOT EFFECTIVELY IMPLEMENTING CHANGEEmployees Are Not Effectively Changing How They WorkPercentage of Employees Who Agree They Effectively Changed How They Work
Employees Are Not Quickly Changing Their BehaviorsPercentage of Employees Who Agree They Quickly Changed Their Behaviors
n = 6,686.Source: CEB 2016 Workforce Change Survey.
n = 6,686.Source: CEB 2016 Workforce Change Survey.
7
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
75%
SUCCESSFUL CHANGE IS HR’S RESPONSIBILITYChange Requires More of Heads of HR’s TimePercentage of Heads of HR Agreeing That Change Requires More of Their Time Compared to Three Years Ago
CEOs Challenge Heads of HR to Implement Change More Quickly
n = 102.Source: CEB 2016 Change Management Head of Function Survey.
n = 102.Source: CEB 2016 Workforce Change Survey.
73%of CEOs expect HR to implement change faster than they did three years ago.
12
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC163408PRINT
Today
HR’S ROLE IN SUCCESSFUL CHANGE: ORGANIZE THE FUNCTION AND ENGAGE THE WORKFORCE
How can I organize the HR function to help improve effectiveness at
managing change?
How should I engage the workforce
to execute change successfully?
CEB Corporate Leadership Council™
Organizing HR to Lead Enterprise Change
CEB Corporate Leadership Council™
Organizing HR to Lead Enterprise ChangeOpen Source Change: Making Change Management Work
11
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
1. Determine the changes the organization needs to make
2. Create implementation plans for the workforce to follow
3. Communicate the change to the workforce
MOST ORGANIZATIONS MANAGE CHANGE FROM THE TOP DOWN
Source: CEB analysis.
n = 102.Source: CEB 2016 Change Management Head of Function Survey.
Typical Change Management Plans Lead Change from the Top Down
Consistent: All employees receive the same information about the change and the actions they should take.
Efficient: The change is communicated and implemented with minimum resources.
Fast: The time between when the change is announced and when employees have implemented and sustained the change is brief.
71% of Heads of HR indicate that their organization uses a top-down change approach.
Leaders Anticipate Top-Down Change Management Will Be:
Communicate and Sustain Change
Plan Implementation
Set the Strategy and Define the Vision
12
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
Work used to cascade downward from leadership to employees.
Today, work is multi-directional.
WORK HAS CHANGED: SHOULD YOUR CHANGE STRATEGY?
Work was top-down because: ■ Markets (and work) moved more slowly ■ Organizations were less complex (e.g., fewer products, smaller geographic footprint, less diversity)
■ Leaders had exclusive access to information ■ Leaders were better educated and more experienced than the workforce
Work is multi-directional because: ■ Markets (and work) move quickly ■ Consumers are more sophisticated and knowledgeable
■ Organization structures are flatter and more matrixed
■ Proliferation of communication channels gives workforce better access to information
■ The workforce is more educated and skilled, and exercises more judgment on the job
■ The workforce is increasingly diverse
Leadership
Front-Line Employees
Source: CEB analysis.
Leadership
Front-Line Employees
14
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
OPEN SOURCE CHANGE DEFINED
Open source change uses the workforce to plan and implement change. Three components of open source change are:
■ Co-Created Change Strategy ■ Employee Ownership of Change Implementation Planning ■ Communications that Focus on Talking Instead of Telling
Open Source Change Defined
n = 102.Source: CEB 2016 Change Management Head of Function Survey.
29% of Heads of HR indicate that their organization uses a predominantly open source change strategy, but only 11% of organizations actually are.
15
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
COMPARING TOP-DOWN AND OPEN SOURCE CHANGE STRATEGIES
Source: CEB analysis.
Open Source ChangeTop-Down Change
Leaders Set Change Strategy Leaders alone determine the strategic changes the organization will make and the vision for those changes.
Employees Co-Create Change StrategyEngage the workforce as active participants in making and shaping change decisions.
Set the Strategy and Define the Vision
Leaders Own Implementation Planning Leaders create implementation plans indicating what employees should do.
Employees Own Implementation Planning Shift ownership of change planning to employees to create personal change implementation plans.
Plan Implementation
Organizations Roll Out Communication Campaigns Organizations roll out communication campaigns to tell employees about the change and its’ benefits.
Employees Talk Openly About ChangeRefocus change communications on open conversations.
Communicate and Sustain Change
18
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
OPEN SOURCE CHANGE STRATEGIES MORE EFFECTIVE THAN TOP-DOWN STRATEGIESOpen Source Change Strategies Drive Change SuccessImpact on Probability of Change Success
Cha
nge
in P
rob
abili
ty o
f Su
cces
s
Top-Down Change Strategy Open Source Change Strategy
+3 Percentage
Points
+10 Percentage
Points
-1 Percentage
Point
+11 Percentage
Points
+3 Percentage
Points
+8 Percentage
Points
14
7
0Leaders Set
Change Strategy
Employees Co-Create Change
Strategy
Employees Primarily Own
Implementation Planning
Communications Focus on Talking
Communications Focus on Telling
Leaders Primarily Own
Implementation Planning
n = 6,686; 102.Source: CEB 2016 Workforce Change Survey; CEB 2016 Change Management Head of Function Survey.
17
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
OPEN SOURCE CHANGE STRATEGIES OUTPERFORM TOP-DOWN STRATEGIES
Top-Down Change Open Source Change
...Probability of change success increases by as much as 24 percentage points.
...Implementation time decreases by as much as one-third.
...Employee time spent on change decreases by as much as 12.6 hours per week per employee.
...Employee engagement increases by as much as 38 percentage points.
...Discretionary effort increases by as much as 19 percentage points.
...Intent to stay increases by as much as 46 percentage points.
...The number of resistors decreases by as much as 19 percentage points.
…The number of employees who feel ownership for making change successful increases by as much as 29 percentage points.
When organizations use an Open Source change strategy…
n = 6,686; 102.Source: CEB 2016 Workforce Change Survey; CEB 2016 Change Management Head of Function Survey.
19
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
Strategy Creation Implementation Planning Communications
Co-Create Change Strategy
Move Ownership of Implementation Planning
to Employees
Focus Communications on Talking, Not Telling
Open Decision Framework V2MOM Tool Change Conversations
“All Access” Organization Redesign
OPEN SOURCE CHANGE: MAKING CHANGE MANAGEMENT WORK
20
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
LEADERS WANT TO INCLUDE EMPLOYEES, BUT EMPLOYEES DON’T FEEL INVOLVEDLeaders Recognize the Value of Including Employees
“Employees are closest to the customer. It’s important I get their input to make good decisions.”
VP of HR Retail
“When I get asked about strategy, leaders have clearly already made a decision about what they’re going to do. Is what I have to say really going to make any difference?”
Employee Manufacturing
But Employees Don’t Think They Play A Role in Setting Strategy
n = 6,686.Source: CEB 2016 Workforce Change Survey.
n = 102.Source: CEB 2016 Change Management Head of Function Survey.
Only 42% of Employees Say They Are Included in Creating Change Strategy
74% of Leaders Say They Include Employees in Creating Change Strategy
21
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
LEADERS STRUGGLE TO INCLUDE THE RIGHT EMPLOYEES, AT THE RIGHT TIME, IN THE RIGHT WAY
“Involving more people takes more time and it’s hard to justify taking more time in a world that moves so fast. I don’t want us to fall behind the curve.”
SVP HRPharmaceuticals
“I know we need to include employees, but I also don’t want to be overwhelmed by too many opinions. I wouldn’t even know where to look in the workforce for valuable input.”
VP HR OpsFinancial Services
It’s hard to include:
■ The right people ■ At the right time ■ In the right way
25
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
CO-CREATE CHANGE STRATEGY
The right people At the right time In the right way
Selective Participation Early Transparency Differentiated Involvement
Don’t try to include all employees.
Don’t just share your final strategic vision.
Don’t use a uniform approach to gathering employee input.
Selectively include the most relevant employees.
Communicate options for the future before deciding on a certain path.
Scale employee involvement based on employee expertise and requirements of the change.
Co-Creating Change Strategy
means including…
Source: CEB analysis.
26
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN 1© 2016 CEB. All rights reserved. CLC163408PRINT
OPEN DECISION MAKING
OPEN DECISION FRAMEWORK INVOLVES EMPLOYEES, NOT JUST LEADERS, IN DECISIONS
“Red Hat strives for change management to happen during the decision process, not during execution.”
Jim WhitehurstRed Hat CEO
Source: The Open Organization, Jim Whitehurst, 2015, Red Hat Open Decision Framework Overview, http://redhat.slides.com/rfernand/deck-1-3-3-4-6#/; CEB analysis.
Giving everyone a vote
Trying to please everyone
Ignoring requirements and constraints
Avoiding uncomfortable conversations
Endless debates
Failing to execute
Achieving consensus
Inviting diverse perspectives and ideas
Managing expectations
Explaining requirements, constraints, and tradeoff s
Engaging potential detractors (early and often)
Staying engaged with those who reject solution
Remaining open to new information and ideas
Working together to get stuff done
Slower decision-making leads to more eff ective and faster results because:
■ All levels of employee are involved
■ Responsibilities are clearer ■ Reasons for the project are understood and accepted, if not always liked
27
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN 2© 2016 CEB. All rights reserved. CLC163408PRINT
LEADERS CONSIDER WHO SHOULD BE INVOLVED IN DECISIONS
1. Who Should I Include?
2. How Should I Include Them?
3. Who Holds Me Accountable?
Who would be surprised by this?
Who is likely to opt out or reject the solution?
Who is knowledgeable about this that may not speak out?
Are specifi c demographics or geographies impacted?
Who might care about this, despite not being impacted?
Who is outspoken about this?
By asking these questions leaders realize who they do and do not need to include in decisions.
Source: The Open Organization, Jim Whitehurst, 2015, Red Hat Open Decision Framework Overview, http://redhat.slides.com/rfernand/deck-1-3-3-4-6#/; CEB analysis.
28
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN 3© 2016 CEB. All rights reserved. CLC163408PRINT
SCALE OF INVOLVEMENT DIFFERS
2. How Should I Include Them?
3. Who Holds Me Accountable?
1. Who Should I Include?
Source: The Open Organization, Jim Whitehurst, 2015, Red Hat Open Decision Framework Overview, http://redhat.slides.com/rfernand/deck-1-3-3-4-6#/; CEB analysis.
Eff ective Employee Involvement
Use judgement based on constraints. Constraints include:
■ Impact of the decision ■ Time constraints ■ Employee expertise ■ Legal constraints
Involve as many employees as possible. Leaders should seek to broaden employee involvement based on open source principles: transparency, inclusivity, and customer-centricity.
Ensure productive involvement. Leaders should:
■ Create shared understanding of the problem or opportunity the organization faces
■ Set expectations up front for what is required of employees
■ Show employees how their involvement is shaping decision-making
■ Create a safe environment for employees to disagree and ask questions
29
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN 4© 2016 CEB. All rights reserved. CLC163408PRINT
EMPLOYEES HOLD LEADERS ACCOUNTABLE FOR OPEN DECISIONS
Source: The Open Organization, Jim Whitehurst, 2015, Red Hat Open Decision Framework Overview, http://redhat.slides.com/rfernand/deck-1-3-3-4-6#/; CEB analysis.
3. Who Holds Me Accountable?
1. Who Should I Include?
Leaders are accountable for making open decisions, even when it is hard, because:
■ Employees demand it—Everyone at Red Hat is onboarded with the Open Decision Framework from day one. All employees are accountable for knowing Red Hat’s strategy and listening and engaging with their peers and leaders about it.
■ Peers demand it—Other leaders will expect justifi cations on how decisions are made. Leaders must defend and explain the choices not taken to their peers.
2. How Should I Include Them?
22
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC163408PRINT
KEY TAKEAWAYS FOR HR LEADERSThe average organization has experienced five major changes in the past three years, of which only 34% succeeded.
1
Although employees are capable of—and willing to—change, only 26% of employees effectively implement change.
2
Organizations currently lead change from the top of the organization down, with leaders guiding the workforce through the change.
3
The best organizations use open source change strategies, which use the workforce, not just leaders, to plan and implement change.
4
Open source strategies shift from: ■ Leaders setting change strategy to co-created change strategy ■ Leader-owned to employee-owned implementation planning ■ Communications focused on telling to communications focused on talking
5
Using open source change strategies: ■ Increases the probability of change success by as much as 24 percentage points, ■ Reduces the time it takes to implement change by as much as one-third, ■ Decreases employee time spent on change by as much as 12.6 hours per week per employee, ■ Increases employee engagement by as much as 38 percentage points, and ■ Decreases number of employee resistors by as much as 19 percentage points. ■ Increases the number of employees who feel ownership for making change successful by as much as 29 percentage points.
6
8
05-19-2014
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
CEB ANALYZED DATA FROM COMPANIES AROUND THE GLOBEPartial List of Participating Organizations
Source: CEB analysis.
Project # xxxxxx
Catalog # 01 CLC3280115SYN
Year Range 2015
16
Sid
ebar
to
be
add
ed f
or
Fu
ll-Te
xt v
ersi
on
© 2016 CEB. All rights reserved. CLC6282616SYN
The New Change Environment
■ How work is changing ■ How changes are changing
Effectiveness of Change Behaviors
■ Leader/manager change behaviors
■ Change training effectiveness
Drivers of Change Success
Strategic Decision-Making
Implementation Planning
Communications Strategy
CEB INVESTIGATES TOP-DOWN AND OPEN SOURCE CHANGE STRATEGIES
1. CEB surveyed over 6,500 employees and 100 Heads of HR around the globe, and interviewed over 100 Heads of HR to test 500 potential drivers of successful change.
2. CEB asked organizations to evaluate the success of changes they initiated within the last two years based on their performance against goals such as the following:
3. We conducted regression analyses to identify the most significant drivers of change management success.
■ Cost-Cutting ■ Return on Investment
■ Revenue ■ Employee Performance
■ Shareholder Value ■ Employee Engagement
■ Time Saving
Change Strategies and Expectations
■ Accountability, incentives, goal design
■ Change success indicators
■ Enterprise contribution ■ Change strategy and expectations
Change Communication Effectiveness
■ Communication source (manager, leader, etc.)
■ Frequency of communication
■ Content and tone of communication
■ Use of change champions/ambassadors
Sample Categories
Source: CEB analysis.
158© 2013 –2016 CEB. All rights reserved. CLC163408PRINT
HOW WE CAN HELP: CEB CHANGE CAPABILITY SOLUTIONDiagnose and Reduce Risks to Your Organization’s Change Success
Enable and Develop Your Talent’s Change Capabilities
CEB Corporate Leadership Council™ Membership
CEB Corporate Leadership Council™ Membership
Additional Talent Management Services
Additional Talent Management Services
Data-Driven Insights
Benchmark your change approach against CEB insight: ■ Best practices in change management strategy design. ■ Open Source change executive briefings. ■ Key imperatives guide.
Decision Support Tools
Embed Open Source change initiatives in your organization using our suite of always-on guides and implementation tools:
■ Ready-to-use support for leaders, managers, employees and HR Business Partners.
Best Practice Innovations
Accelerate execution of your Open Source change initiatives by taking advantage of our best practice member resources:
■ Teach leaders how to involve employees in change strategy decisions.
■ Teach employees to diagnose how change will affect daily work.
Organizational Change Survey
Identify your organization’s strengths and risks to success in Open Source Change strategy with our diagnostic survey.
Team Change Enablement
Objectively assess individual and team change readiness behaviors to identify talent trends and gaps across your organization.
Support your managers and teams in developing these critical change capabilities via ChangeCoach scalable on-the-job learning programs.