organization change revisited. how to get plugged in

Organization Change Revisited How to get plugged in

Shirley A Williams

Shirley Williams page 1 November 24 2008Principal Consultant William Pearl amp Associatesshirleywilliampearlcomcopy Copyright 2008 William Pearl amp Associates

FIGURE 1 1929 NEWSPAPER CLIPPINGS(The Telegraph Journal amp The New York Times Magazine)

~~~~~

It is puzzling how many times the importance of change management is discussed in the business

environment and yet so few actually incorporate change management plans in their business initiatives

How is it that our business leaders will often address their management team with the importance of

becoming more adept at managing change but do so little to nurture this organization capability In fact I

venture to say that change management has become THE BUZZ word of 2008 and given the state of

affairs it will continue to be so for years to come A morning read of a newspaper article highlighted the

high pace of change and the need to manage it - or suffer the consequences of being stuck in the past Is

there anything unusual about this article The answer is

most likely ldquoNordquo The only quandary is that this was written

in 1929 when you could get a newspaper for three cents

and the speed on the highway was not related to

information (Figure 1) In 1929 the change was related to

ldquomechanical automationrdquo The only difference today is the

nature of the change Change is a constant So why is it

that after so many decades we continue to recognize the

high speed of change however our change management

approach continues to be a mystery To many leaders

change management is an amorphous concept and as a

result they have a tendency to shy away from it

Organization Change Management Defined

Change management means different things to different people and so in order to manage it we need to

define it I would like to start with ldquoWhat it is notrdquo It is not an event it is not Human Resources it is not a

consultant it is not project change control it is not one personrsquos job and it is not an organization structure

I would now like to offer this definition Organization change management is a cross-functional integrated

process with tools and techniques to enable people to move from their current state and transition to the

preferred future state of an organizationrsquos vision When successfully exercised repetitively an organization

will have also built a strategic capability to manage and expedite business change so that they can readily

take advantage of competitive opportunities Such an organization has invested in an integrated change

competency or resiliency that embraces change as a business norm Change management is related to

the people-side of an initiative and it means managing the ldquosoft-siderdquo of the change Change management

is hard work and often poorly addressed When not addressed it is also unfortunately a lost opportunity

that would otherwise build change elasticity in an organization which could be a business advantage for

the very reasons described above

Business Strategies Pitfalls and Change Management

Business strategies fail to deliver for a number of reasons The list below describes some of the common

pitfalls Some reasons related to the strategic plan itself and include

failing to define the future vision

developing a superficial vision

conducting only a long-range financial plan


Shirley A Williams


EXPECT SUBSTANTIAL CHANGE

CHANGED SUCCESSFULLY IN THE PAST



2006

2008

8

22

CHANGE

GAP

CHANGE

GAP

65

57

83

61

FIGURE 2 THE CHANGE GAP

IBM GLOBAL BUSINESS SERVICES SURVEY OF CEOs 1

The gap between the expectation of change and an organizationrsquos history ofmanaging change is growing

failing to make tough decisions

failing to clarify and simplify objectives

forgetting that people support what they help create

neglecting the competition and business environment

using confusing terminology and language

failing to integrate planning at all levels of the organization

conducting ldquobusiness as usualrdquo after the ldquo strategic planning eventrdquo

Pitfalls are also related to the actual implementation namely

frequently changing priorities

inconsistent decisions and directions

an ineffective implementation process

poor project management

difficultly in building and keeping momentum

low commitment

failure to provide the needed resources

conflicts

politics

weak re-enforcement or consequences

With a closer inspection of these pitfalls you will note

that many are related to people and culture In an on-

going study1 with top CEOs regarding their

perspective on managing large scale change CEOs

shared their expectations (see Figure 2) This

research showed that there is a significant gap with

the rate of business change and the ability to actually

manage the change Furthermore this ldquochange gaprdquo

has widened three times over the last two years This

provides additional support to why there is a need for

business leaders to manage change effectively if they are to remain competitive However so few

initiatives include a comprehensive organization change strategy and management plan

Best Practices and Critical Success Factors in Change Management

Prosci is an independent research company who are well known for their extensive research on

organization change Their research spans ten years of study includes over 1000 organizations and 59

countries In their best practice study23 Prosci showed that the critical success factors for change

management are

1 active and visible executive sponsorship

2 a structured change management approach

3 the need and vision for change was widely communicated

4 dedicated change management resources

5 employee involvement


Shirley A Williams


58

49

35

33

32

20

18

16

15

12

8

Change mindsets and attitudes

Corporate culture

Complexity underestimated

shortage of resources

Lack of mangement commitment

Lack of change know how

Lack of transparency

Lack of involved employees

Change of process

Change of IT systems

Technology barriers

FIGURE 4 MAJOR CHANGE CHALLENGESIBM GLOBAL BUSINESS SERVICES CHANGE MANAGEMENT STUDY 1The most significant challenges when implementing change project s are people oriented

Soft factors

Hard factors

92

72

70

65

55

38

36

33

19

Top management

sponsorship

Employee involvement

Honest and timely

communication

Corporate culture for

change

Change agents

Training programs

Performance measures

Organization structure

Incentives

FIGURE 3 WHAT MAKES CHANGE SUCCESSFULIBM GLOBAL BUSINESS SERVICES CHANGE MANAGEMENT STUDY 1Leadership employee engagement and open communication are prer equisites forsuccessful change

Soft factors

Hard factors

In a similar but separate study1 IBM Global Business Services showed similar findings (Figure 3) Both

research efforts showed that top executive sponsorship is the number one critical success factor to

succeed in large scale initiatives

In addition to the critical success factors for

change Prosci 23 also showed the key

obstacles to change they are

1 ineffective sponsorship from senior

leaders

2 employee resistance

3 poor support and alignment with middle

management

4 lack of change management resources

and planning

Again IBMrsquos findings (shown in Figure 4)

were similar These studies support the fact

that change management is not one personrsquos

role it is a shared accountability and

engagement As highlighted here top

executive sponsorship is crucial This

sponsorship is required throughout the

duration of an initiative It is not enough to

introduce or provide a short presentation at a

kick-off meeting and then only surface at the

end of the initiative It is critical that the

sponsor is visibly active and engaged for the

long run of the project with their teams and

employees

Change Management Models and Value

In the mid- 90s Dr Michael Hammer was the driving force behind leading the charge on corporate re-

engineering4 Hammer turned the business world upside down as he drove the concept of business

process transformation and organization change Dr Hammer recognized that if organizations are to

succeed in their quest of large scale transformation it required a deliberate focus and attention to the

human dimension and complexity of the change Over ten years later research continues to validate this

position This is shown in Figure 4 This data indicates that when the complexity of an initiative is not

understood it becomes a serious hurdle to the change implementation It is evident that change

complexity drives the need for appropriate resources however there is an additional human dimension to

this factor It is the potential emotional burnout associated with the implementation that could easily occur

This can also be linked to the lack of any tangible visible benefit generated during the implementation

Understanding the complexity and value of the sub-projects provides a method of phasing the project

such that incremental project benefits can be generated at predetermined intervals as the project is


Shirley A Williams


Reinforcement to sustain the changeR

Ability to implement required skills andbehaviorsA

Knowledge of how to changeK

Desire to support and participate in the changeD

Awareness of the need for changeA

FIGURE 5 ADKAR MODEL3reg

Prosci

HR and Training

Managers andsupervisors

K

D

A

R

A

Project Team

Leadershipcoalition

Primary Sponsor

FIGURE 6 ADKAR MODEL AND CHANGE MANAGEMENT PLAYERS3reg

Prosci

SW recommended SW recommended

deployed throughout the duration of the endeavor When a project is phased in this manner it naturally

builds momentum and energizes the organization during the project implementation Furthermore as

successes are experienced it drives the conversion of skeptical stakeholders This is one tactic to reduce

resistance to a project Delivering small ldquopackets of valuerdquo throughout the implementation builds

confidence within the organization

Prosci has an excellent model to specifically manage

the change process3 The Prosci ADKAR model

provides a framework for understanding change at an

individual level and consequently provides a pragmatic

approach for organization change The ADKAR model

has five elements or objectives as shown in Figure 5

Awareness represents a personrsquos understanding of the

nature of the change including the internal and external

drivers that created the case for change This

incorporates the change vision and the ldquowhatrsquos in if for

merdquo Desire represents the willingness to support and

engage in the change Knowledge represents the information training and education necessary to know

how to change Ability represents the realization of the change Ability is turning knowledge into action

Reinforcement represents those internal and external factors to sustain the change The model stipulates

that you need to address all five components to manage the change process and ultimately to succeed

The model provides a methodology to help move people from their current state and transition them to

their future state The organization levers to enable these components are sponsorship communication

coaching training and resistance management The simplicity of the ADKAR model makes it a very

flexible tool that is readily scaleable to the scope of any change program Prosci also provides guidelines

on required change management roles (Figure 6) which includes the primary sponsor the change

leadership coalition managers supervisors Human

Resources Training and the project team Building on

these guidelines I would offer that the project team also

plays a role in Awareness and Desire in that they should

work closely with their functional team and leaders They

provide valuable information for the messaging and the

bridge for collaboration I like to think of these roles and

responsibilities as a Change Matrix with key stakeholders

having key accountabilities These stakeholders need to

be ldquoplugged-inrdquo and know their role in order to drive a

successful change

Summary

A Google search for ldquochange management modelsrdquo will provide over 9000 hits There is an ever growing

list of change management models to choose from I have personally used the above data and models

successfully when I have led change programs or initiatives In summary I would like to leave you with


Shirley A Williams


these final points 1) Regardless of the change management model you use it is important that it is

planned very early in the program ideally during the strategy discussions If this is not feasible it should

be integrated very early in the planning stages of the initiative Integration is key to success 2) You must

marry the right tool with the right scope thus it is important to assess the change complexity early in the

initiative 3) As the above research showed it is critical to have an engaged and visible primary sponsor

4) Use simple language to articulate the change vision and business drivers 5) You should also remember

people implement what they believe they have created So as well as having an excellent communication

plan it is advantageous to facilitate some level of stakeholder involvement 6) There is significant

advantage to phasing an initiative to deliver incremental value and excitement throughout the duration of

the program 7) An integrated comprehensive change management program will significantly increase the

chances of success to deliver value of that new business and organization reality

References

1 Making Change Work IBM Business Consulting Services Hans Henrik Jogensen Lawrence Owen

and Andreas Neus 2008 (httpwww-935ibmcomservicesusindexwssibvstudygbsa1030541cntxt=a1005266 )

2 Best Practices in Change Management Prosci Benchmarking Report Time Creasey and Jeff Hiatt

2007 (httpwwwchange managementcombest-practices-reporthtm )

3 ADKAR A Model for Change in Business Government and Our Community Jeffrey Hiatt 2006

4 The Reengineering the Corporation Michael Hammer and James Champy 1993

About the Author

Shirley Williams has more than 20 years experience in organization business change and project management

She has led numerous initiatives with a geographical scope that has included Canada US The South Americas

Europe and Australia Shirleyrsquos professional career spans Biotechnology Brand amp Generic Pharmaceuticals and

IBM Business Consulting Services She currently provides leadership in Strategy Organization Change and

Project Management as a Principal Consultant at William Pearl and is also the Vice-Chair for Toronto

BioPharmaPM Shirley is a certified practitioner and professional of Change (Prosci) and Project Management

(PMPPMI) She may be reached at shirleywilliampearlcom


Shirley A Williams






2006

2008

8

22

CHANGE

GAP

CHANGE

GAP

65

57

83

61

FIGURE 2 THE CHANGE GAP

IBM GLOBAL BUSINESS SERVICES SURVEY OF CEOs 1

The gap between the expectation of change and an organizationrsquos history ofmanaging change is growing

failing to make tough decisions

failing to clarify and simplify objectives

forgetting that people support what they help create

neglecting the competition and business environment

using confusing terminology and language

failing to integrate planning at all levels of the organization

conducting ldquobusiness as usualrdquo after the ldquo strategic planning eventrdquo

Pitfalls are also related to the actual implementation namely

frequently changing priorities

inconsistent decisions and directions

an ineffective implementation process

poor project management

difficultly in building and keeping momentum

low commitment

failure to provide the needed resources

conflicts

politics

weak re-enforcement or consequences

With a closer inspection of these pitfalls you will note

that many are related to people and culture In an on-

going study1 with top CEOs regarding their

perspective on managing large scale change CEOs

shared their expectations (see Figure 2) This

research showed that there is a significant gap with

the rate of business change and the ability to actually

manage the change Furthermore this ldquochange gaprdquo

has widened three times over the last two years This

provides additional support to why there is a need for

business leaders to manage change effectively if they are to remain competitive However so few

initiatives include a comprehensive organization change strategy and management plan

Best Practices and Critical Success Factors in Change Management

Prosci is an independent research company who are well known for their extensive research on

organization change Their research spans ten years of study includes over 1000 organizations and 59

countries In their best practice study23 Prosci showed that the critical success factors for change

management are

1 active and visible executive sponsorship

2 a structured change management approach

3 the need and vision for change was widely communicated

4 dedicated change management resources

5 employee involvement


Shirley A Williams


58

49

35

33

32

20

18

16

15

12

8


Corporate culture







Change of process


Technology barriers


Soft factors

Hard factors

92

72

70

65

55

38

36

33

19

Top management

sponsorship


Honest and timely

communication


change

Change agents

Training programs



Incentives


Soft factors

Hard factors








leaders



management


and planning














employees















Shirley A Williams








Prosci

HR and Training


K

D

A

R

A

Project Team

Leadershipcoalition

Primary Sponsor


Prosci





































successful change

Summary





Shirley A Williams













References







About the Author









Shirley A Williams


58

49

35

33

32

20

18

16

15

12

8


Corporate culture







Change of process


Technology barriers


Soft factors

Hard factors

92

72

70

65

55

38

36

33

19

Top management

sponsorship


Honest and timely

communication


change

Change agents

Training programs



Incentives


Soft factors

Hard factors








leaders



management


and planning














employees















Shirley A Williams








Prosci

HR and Training


K

D

A

R

A

Project Team

Leadershipcoalition

Primary Sponsor


Prosci





































successful change

Summary





Shirley A Williams













References







About the Author









Shirley A Williams








Prosci

HR and Training


K

D

A

R

A

Project Team

Leadershipcoalition

Primary Sponsor


Prosci





































successful change

Summary





Shirley A Williams













References







About the Author









Shirley A Williams













References







About the Author






