Change Management Framework
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Change Management Framework
Debunking the Myths2
Myth: Change is driven by company-wide initiatives such as “corporate culture” programs and training courses.
Myth: Change should start with attitudes and behaviors at the individual level.
Effective Transformational Change is not brought about by creating programs focused on changing
culture, attitudes or behaviors
The road to transformational change . . .
3
The first step is to articulate the Strategic Vision.
StrategicVision
Implementation:Driving Change
through theOrganization
Beyond the vision4
It’s about achieving “task alignment”
Making a vision come to life with clear strategies, initiatives and well-defined work activities
Grouping work activities into refined or redefined jobs
Putting the right people in those jobs and giving them direction...people only change behavior if their work changes
Task alignment requires great discipline
5
Three core phases:
DEFINE CORE CAPABILITIES
SYSTEMS
& TOOLS
PHASE IIORGANIZATIONAL DESIGN
PHASE ISTRATEGY DEVELOPMENT
JOBS AND STRUCTURE
ST
RA
TE
GY
DEVELOP BUSINESS PROCESSES, ACTIVITIES
AND PERFORMANCE REQUIREMENTS
TRANSITION
PHASE IIITRANSITION
ASSESS & SELECT TALENT
Activity Definition & Sequencing Investment Allocation & Re-Allocation
INVEST IN SYSTEMS
& TOOLS OR HUMAN
CAPITAL?
Phase 1 – Strategy Development6
Strategy – What is the future state that you want to achieve? What are the specific, measurable strategies or objectives for the business? Are the strategies sufficiently defined in order to identify the work activities associated with them?
Core Capabilities – What organizational capabilities will be critical for achieving the strategy? What must the organization be able to do well?
ST
RA
TE
GY
DEFINE CORE CAPABILITIES
PHASE ISTRATEGY DEVELOPMENT
ST
RA
TE
GY
Phase II – Organizational Design7
SYSTEMS
& TOOLS
PHASE IIORGANIZATIONAL DESIGN
JOBS AND STRUCTURE
DEVELOP BUSINESS PROCESSES, ACTIVITIES
AND PERFORMANCE REQUIREMENTS
ASSESS & SELECT TALENT
Activity Definition & Sequencing Resource Allocation & Re-Allocation
INVEST IN SYSTEMS
& TOOLS OR HUMAN
CAPITAL?
Develop Business Processes and Activities – What are the processes that must be designed and implemented in order to achieve the strategic objectives? What metrics will be used to measure these activities?
Performance Requirements – How will we know we have been successful? How will the organization distinguish itself from competitors?
Resource Allocation – What allocation or re-allocation decisions will we need to make to effectively support these activities and processes?
Systems and Tools – What systems and tools will be put in place to support the business strategy and to perform critical business activities?
Jobs and Structure – What roles will be necessary to carry out the critical business activities? How will the roles be effectively and efficiently organized?
Phase III - Transition8
Transition – What activities are required to transition to the future state? How will new processes, roles, and systems be implemented? How will people be set up to perform successfully in their new or changed roles? How will you deal with resistance?
TRANSITION
PHASE IIITRANSITION
Some level of Resistance is a natural part of change
So what is Change Management?9
People Management – Setting individual performance expectations, assessing and selecting, training, redefining compensation and rewards, and supporting individuals so that they may perform effectively
Communication – Delivering the right messages, to the right people, at the right times so that they are able to align their work with the strategy
Risk and Impact Management – Identifying and managing the risks and impacts associated with the change
Leadership and Sponsorship – Engaging leadership to drive change throughout the organization
People Management
Lea
der
ship
&
Sp
on
sors
hip
Risk and ImpactManagement
Co
mm
un
ication
People ManagementCHANGE
MANAGEMENT
A set of practices and tools that help bring
about task alignment
Change Management practices support, but don’t drive Transformational
Change10
DEFINE CORE CAPABILITIES
SYSTEMS
& TOOLS
PHASE IIORGANIZATIONAL DESIGN
PHASE ISTRATEGY DEVELOPMENT
JOBS AND STRUCTURE
ST
RA
TE
GY
DEVELOP BUSINESS PROCESSES, ACTIVITIES
AND PERFORMANCE REQUIREMENTS
TRANSITION
PHASE IIITRANSITION
ASSESS & SELECT TALENT
Activity Definition & Sequencing Investment Allocation & Re-Allocation
INVEST IN SYSTEMS
& TOOLS OR HUMAN
CAPITAL?
Transformational Change engages every level of the organization
11
All Employees
TransitionOrganizational
DesignStrategy
Development
Senior Leadership
Management
Why Change Management12
??
Significant change creates significant disruption
13
Disruption in:
Significant change often causes a Performance “Dip”
14
Time
Scenario 1: No Change Implementation
Return on Investment (ROI)
Performance Deficit due to Implementation
Performance
Organizational Equilibrium
(current state)
Implementation of Initiatives Begin
Return to Equilibrium
What causes the “dip”?15
Poor Strategy Development Lack of a clear vision
or strategy Senior leadership
unwilling to take calculated business risks
Insufficient ownership and accountability for vision and strategy
DEFINE CORE CAPABILITIES
SYSTEMS
& TOOLS
PHASE IIORGANIZATIONAL DESIGN
PHASE ISTRATEGY DEVELOPMENT
JOBS AND STRUCTURE
ST
RA
TE
GY
DEVELOP BUSINESS PROCESSES, ACTIVITIES
AND PERFORMANCE REQUIREMENTS
TRANSITION
PHASE IIITRANSITION
ASSESS & SELECT TALENT
Activity Definition & Sequencing Investment Allocation & Re-Allocation
INVEST IN SYSTEMS
& TOOLS OR HUMAN
CAPITAL?
What causes the “dip”?16
Poor Organization Design The wrong people involved in
the organization design work Work activities and
performance requirements not sufficiently defined to make effective resource allocation decisions possible
Technology, process and intellectual capital not utilized to speed processes and take costs out
Job roles and structure not designed effectively to support work activities or enable individual success
DEFINE CORE CAPABILITIES
SYSTEMS
& TOOLS
PHASE IIORGANIZATIONAL DESIGN
PHASE ISTRATEGY DEVELOPMENT
JOBS AND STRUCTURE
ST
RA
TE
GY
DEVELOP BUSINESS PROCESSES, ACTIVITIES
AND PERFORMANCE REQUIREMENTS
TRANSITION
PHASE IIITRANSITION
ASSESS & SELECT TALENT
Activity Definition & Sequencing Investment Allocation & Re-Allocation
INVEST IN SYSTEMS
& TOOLS OR HUMAN
CAPITAL?
What causes the “dip”?17
Poor Transition Management Poor project management
and risk planning Lack of rigor in selecting
people Employee skill sets do not
align with future roles “Sacred Cows” – not
willing to make the tough people calls
Employees not properly trained for future role
Individual performance expectations not defined or measured
Compensation not aligned with role requirements
DEFINE CORE CAPABILITIES
SYSTEMS
& TOOLS
PHASE IIORGANIZATIONAL DESIGN
PHASE ISTRATEGY DEVELOPMENT
JOBS AND STRUCTURE
ST
RA
TE
GY
DEVELOP BUSINESS PROCESSES, ACTIVITIES
AND PERFORMANCE REQUIREMENTS
TRANSITION
PHASE IIITRANSITION
ASSESS & SELECT TALENT
Activity Definition & Sequencing Investment Allocation & Re-Allocation
INVEST IN SYSTEMS
& TOOLS OR HUMAN
CAPITAL?
You can decrease the performance dip
18
Time
Scenario 2:Proactive Change Implementation
Return on Investment (ROI)
Performance
Organizational Equilibrium
(current state)
Implementation of Initiatives Begin
Return to Equilibrium
Performance Deficit due to Implementation
What can you do todecrease the performance dip?
19
Use a structured change management process in each phase of the transformational change
People Management
Lea
der
ship
&
Sp
on
sors
hip
Risk and ImpactManagement
Co
mm
un
ication
People ManagementCHANGE
MANAGEMENT
Structured Change Management Actions
20
PHASE 1 - Strategy Development
Engage group of leaders in defining the vision
Use structured visioning process
Conduct stakeholder analysis
Define measures of success
Develop plan for engaging stakeholders
Define specific roles in the change effort
Identify who to communication with, about what, and when
Develop plan for building the Organization Design
ST
RA
TE
GY
DEFINE CORE CAPABILITIES
PHASE ISTRATEGY DEVELOPMENT
ST
RA
TE
GY
Structured Change Management Actions
21
PHASE 2 - Organization Design
Engage critical stakeholders and
subject matter experts
Use structured, facilitated process
to ensure objectivity and to
decrease impact of resistance
Build strong change network for
communication and stakeholder
management
Share what you know…it’s usually
not necessary to wait until it’s
fully baked
SYSTEMS
& TOOLS
PHASE IIORGANIZATIONAL DESIGN
JOBS AND STRUCTURE
DEVELOP BUSINESS PROCESSES, ACTIVITIES
AND PERFORMANCE REQUIREMENTS
ASSESS & SELECT TALENT
Activity Definition & Sequencing Resource Allocation & Re-Allocation
INVEST IN SYSTEMS
& TOOLS OR HUMAN
CAPITAL?
Structured Change Management Actions
22
Phase 3 – Transition Invest in strong and influential project
management Conduct real risk assessment and
develop risk plan accordingly Objectively assess current talent against
future requirements – both individuals and overall bench strength
Engage a selection team that will make the tough calls
Identify knowledge and skills required; develop and implement plan for training in new roles and new skills
Clearly define and communicate individual performance expectations and measures
Align compensation plan with the strategy and critical business activities
Measure and reward individuals for performance in new roles
TRANSITION
PHASE IIITRANSITION
Key Points to Remember23
A clear and tangible strategy is a must…without it, there’s nothing to transform to
Engaging key people will build confidence and enthusiasm for the transformation
You’ll have to make some tough calls on people…”laggards” will stall the effort and drive costs up substantially
You don’t have to do everything at once…build momentum by starting with something meaningful but manageable
Be prepared to provide significant support and direction to employees throughout the transition phase
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