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MANAGING CHANGE
The Holistic Approach to Strategic Change
© Operational Excellence Consulting. All rights reserved.
© Operational Excellence Consulting
LEARNING OBJECTIVES
2
Acquire knowledge on the
key concepts and
principles of change
management
Identify the challenges
and best practices of
change management
Define the change
management process and
explore the frameworks,
methods and tools for
managing change
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg
© Operational Excellence Consulting
CONTENTS
3
INTRODUCTION TO
CHANGE
MANAGEMENT
THE CHANGE
MANAGEMENT
PROCESS
FRAMEWORKS,
METHODS &
TOOLS
CHALLENGES &
BEST PRACTICES
01 040302
© Operational Excellence Consulting
“It is not the strongest or
the most intelligent who
will survive but those
who can best manage
change.”
CHARLES DARWIN
4
© Operational Excellence Consulting
70%
of change programs fail, most often due to
resistance from employees
5Source: McKinsey
© Operational Excellence Consulting
SOME STATISTICS ON CHANGE MANAGEMENT
6
CEOs recognize the need
for culture change to
support a digital initiative
CIOs say that culture
change is their biggest
barrier to successful digital
transformation
Change/Business leaders
say navigating change
fatigue is a common
frustration
Change leaders say
employees are disengaged
and exhausted from
business transformation
Change leaders say
organizational structure
and systems are
constraints to success
Employees say their
organizations were
effective in inspiring them
in business transformation
42% 46% 51%
49% 41% 39%
Sources: Gartner, Gallup & Gagen MacDonald
© Operational Excellence Consulting 7
Change does not happen overnight
after a CEO’s weekly “sermon”
© Operational Excellence Consulting 8
People are the greatest source of
resistance to change, therefore
change must involve people
© Operational Excellence Consulting
WHY IS CHANGE IMPORTANT IN AN ORGANIZATION?
9
Changing global
economy
Developing a culture
of innovation
Take advantage of
growth opportunities
Challenging the
status quo
Customer needs are
constantly evolving
The ever-changing
world of technology
© Operational Excellence Consulting
THE ORGANIZATIONAL CHANGE ICEBERG
10
VISIBLE
ORGANIZATIONAL
CULTURE
Perceptions
Stories
Unwritten Rules
Tradition
Shared
Values
Beliefs
Vision
Strategy
Structures
Shared
Assumptions
Norms
Feelings
INVISIBLE
ORGANIZATIONAL
CULTURE
© Operational Excellence Consulting
CHANGE MANAGEMENT vs. DIGITAL TRANSFORMATION
11
The process of integrating digital
technology into a business – a
transformation that can impact
technology, culture, work
environment and more.
The process of directing,
administering and managing
organizational changes.
CHANGE
MANAGEMENT
DIGITAL
TRANSFORMATION
© Operational Excellence Consulting
EXAMPLES OF BUSINESSES THAT FAILED TO ADAPT TO CHANGE
12
Photographic film market
disrupted by digital
photography.
Ignored touch screen
based technology and
lost market share in
mobile market.
Movie rentals disrupted
by online video
streaming.
Focused on media and
undervalued the
importance of search.
Sales of physical books
disrupted by sales
through Amazon and e-
reading devices.
Limited to uploading of
songs instead of enabling
people to connect through
more than just music.
© Operational Excellence Consulting
FORCE FIELD ANALYSIS MODEL FOR CHANGE
13
Current
Situation
RESTRAINING FORCES
FOR CHANGE
DRIVING FORCES FOR
CHANGE
Obstacles to change.
These forces should be
removed or reduced.
Positive forces for
change. These forces
should be strengthened
or increased.
© Operational Excellence Consulting
MARTEC’S LAW:
TECHNOLOGY CHANGES
EXPONENTIALLY,
ORGANIZATIONS CHANGE
LOGARITHMICALLY
14
Technology changes
exponentially
Organizations change
logarithmically
Technology management
is deciding which
changes are adopted
?
?
Source: Scott Brinker © Operational Excellence Consulting
© Operational Excellence Consulting
TWO SIDES OF CHANGE
15
Technical side (“hard
factors) includes
strategy, structure,
process, systems and
technology
Human side (“soft
factors”) includes
culture, communication,
skills and leadership
modelling
TECHNICAL HUMAN
© Operational Excellence Consulting
“When dealing with people,
remember you are not
dealing with creatures of
logic, but creatures of
emotion.”
DALE CARNEGIE
16
Author of “How to Win Friends & Influence People”
© Operational Excellence Consulting
WHY DO PEOPLE FEAR CHANGE?
17
“Will I be
neglected?”
“Will my job
become
redundant?”
“What is going
to happen?”
“Will my
department be
downsized?”
© Operational Excellence Consulting
RESISTANCE TO CHANGE
18
Organizational
resistance to change
Individual
resistance to change
© Operational Excellence Consulting
USING THE CHANGE CURVE TO REDUCE NEGATIVE CONSEQUENCES &
ACCELERATE CHANGE
19
The Change Curve
Positive
Negative
Impact
Reducing Negative
Consequences
Accelerating
Change
Managed Change
Unmanaged Change
© Operational Excellence Consulting 20
METHODS OF OVERCOMING RESISTANCE TO CHANGE
Education &
Communication
Participation &
involvement
Facilitation &
Support
Negotiation
Manipulation &
Co-option
Coercion
© Operational Excellence Consulting
● It is key to understand and
leverage is the rate and pace
at which people adapt to
change
● Focus time and efforts on the
Middle / Late Enrollers.
Don’t waste time on Slugs /
Die Hards. You won’t
persuade them in 100 days!
● Let the Initiators & Early
Enrollers help you promote
the change
THE ENROLLMENT CURVE DEPICTS THE TYPICAL RESPONSES TO
CHANGE
21
5% 15% 30% 30% 15% 5%
Middle
Enrollers
Late
Enrollers
Early
Enrollers
Initiators
Slugs
Die
Hards
Critical Mass Direction of Enrollment
Source: Based on Atlanta Consulting Group, Inc.
The Enrollment Curve
© Operational Excellence Consulting
When it comes to change
management, internal
communication plays an even
more critical role today
22
© Operational Excellence Consulting
1. Lead with the culture
2. Start at the top
3. Involve every layer
4. Make the rational and emotional
case together
5. Model the new behaviors
10 GUIDING PRINCIPLES OF CHANGE MANAGEMENT
6. Engage through constant
communication
7. Lead through authority and
influence
8. Leverage formal (“hard”) solutions
9. Leverage informal (“soft”) solutions
10. Assess and adapt
23
Source: Adapted from Strategy&/Katzenbach
Center survey, 2013
© Operational Excellence Consulting
CHANGE MANAGEMENT: OVERVIEW OF THE DETAILED STEPS
24
Evaluate
Effectiveness
Monitor
Progress
Plan & Launch
Program
Analyze Current
Situation
CHANGE
MANAGEMENT
PROCESS
1. ANALYZE CURRENT SITUATION
1.1 Identify reason for change
1.2 Assess readiness for change
1.3 Assess impact of change
1.4 Identify gaps
1.5 Gather feedback
2. PLAN & LAUNCH PROGRAM
2.1 Define change strategy
2.2 Set up change infrastructure
2.3 Create awareness and get buy-in
2.4 Develop and communicate plans
2.5 Develop skills
2.6 Launch pilot project(s)
4. EVALUATE EFFECTIVENESS
4.1 Review results
4.2 Share success stories
4.3 Provide follow up support
4.4 Reward and recognize
3. MONITOR PROGRESS
3.1 Monitor change process
3.2 Overcome resistance to change
3.3 Assess behavioral changes
3.4 Measure effectiveness
3.5 Provide support
Change Management Process
© Operational Excellence Consulting
“Insanity is doing the same
thing, over and over again,
but expecting different
results.”
ALBERT EINSTEIN
25
© Operational Excellence Consulting
Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING

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Change Management (previously entitled "Managing Change")

  • 1. MANAGING CHANGE The Holistic Approach to Strategic Change © Operational Excellence Consulting. All rights reserved.
  • 2. © Operational Excellence Consulting LEARNING OBJECTIVES 2 Acquire knowledge on the key concepts and principles of change management Identify the challenges and best practices of change management Define the change management process and explore the frameworks, methods and tools for managing change NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg
  • 3. © Operational Excellence Consulting CONTENTS 3 INTRODUCTION TO CHANGE MANAGEMENT THE CHANGE MANAGEMENT PROCESS FRAMEWORKS, METHODS & TOOLS CHALLENGES & BEST PRACTICES 01 040302
  • 4. © Operational Excellence Consulting “It is not the strongest or the most intelligent who will survive but those who can best manage change.” CHARLES DARWIN 4
  • 5. © Operational Excellence Consulting 70% of change programs fail, most often due to resistance from employees 5Source: McKinsey
  • 6. © Operational Excellence Consulting SOME STATISTICS ON CHANGE MANAGEMENT 6 CEOs recognize the need for culture change to support a digital initiative CIOs say that culture change is their biggest barrier to successful digital transformation Change/Business leaders say navigating change fatigue is a common frustration Change leaders say employees are disengaged and exhausted from business transformation Change leaders say organizational structure and systems are constraints to success Employees say their organizations were effective in inspiring them in business transformation 42% 46% 51% 49% 41% 39% Sources: Gartner, Gallup & Gagen MacDonald
  • 7. © Operational Excellence Consulting 7 Change does not happen overnight after a CEO’s weekly “sermon”
  • 8. © Operational Excellence Consulting 8 People are the greatest source of resistance to change, therefore change must involve people
  • 9. © Operational Excellence Consulting WHY IS CHANGE IMPORTANT IN AN ORGANIZATION? 9 Changing global economy Developing a culture of innovation Take advantage of growth opportunities Challenging the status quo Customer needs are constantly evolving The ever-changing world of technology
  • 10. © Operational Excellence Consulting THE ORGANIZATIONAL CHANGE ICEBERG 10 VISIBLE ORGANIZATIONAL CULTURE Perceptions Stories Unwritten Rules Tradition Shared Values Beliefs Vision Strategy Structures Shared Assumptions Norms Feelings INVISIBLE ORGANIZATIONAL CULTURE
  • 11. © Operational Excellence Consulting CHANGE MANAGEMENT vs. DIGITAL TRANSFORMATION 11 The process of integrating digital technology into a business – a transformation that can impact technology, culture, work environment and more. The process of directing, administering and managing organizational changes. CHANGE MANAGEMENT DIGITAL TRANSFORMATION
  • 12. © Operational Excellence Consulting EXAMPLES OF BUSINESSES THAT FAILED TO ADAPT TO CHANGE 12 Photographic film market disrupted by digital photography. Ignored touch screen based technology and lost market share in mobile market. Movie rentals disrupted by online video streaming. Focused on media and undervalued the importance of search. Sales of physical books disrupted by sales through Amazon and e- reading devices. Limited to uploading of songs instead of enabling people to connect through more than just music.
  • 13. © Operational Excellence Consulting FORCE FIELD ANALYSIS MODEL FOR CHANGE 13 Current Situation RESTRAINING FORCES FOR CHANGE DRIVING FORCES FOR CHANGE Obstacles to change. These forces should be removed or reduced. Positive forces for change. These forces should be strengthened or increased.
  • 14. © Operational Excellence Consulting MARTEC’S LAW: TECHNOLOGY CHANGES EXPONENTIALLY, ORGANIZATIONS CHANGE LOGARITHMICALLY 14 Technology changes exponentially Organizations change logarithmically Technology management is deciding which changes are adopted ? ? Source: Scott Brinker © Operational Excellence Consulting
  • 15. © Operational Excellence Consulting TWO SIDES OF CHANGE 15 Technical side (“hard factors) includes strategy, structure, process, systems and technology Human side (“soft factors”) includes culture, communication, skills and leadership modelling TECHNICAL HUMAN
  • 16. © Operational Excellence Consulting “When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion.” DALE CARNEGIE 16 Author of “How to Win Friends & Influence People”
  • 17. © Operational Excellence Consulting WHY DO PEOPLE FEAR CHANGE? 17 “Will I be neglected?” “Will my job become redundant?” “What is going to happen?” “Will my department be downsized?”
  • 18. © Operational Excellence Consulting RESISTANCE TO CHANGE 18 Organizational resistance to change Individual resistance to change
  • 19. © Operational Excellence Consulting USING THE CHANGE CURVE TO REDUCE NEGATIVE CONSEQUENCES & ACCELERATE CHANGE 19 The Change Curve Positive Negative Impact Reducing Negative Consequences Accelerating Change Managed Change Unmanaged Change
  • 20. © Operational Excellence Consulting 20 METHODS OF OVERCOMING RESISTANCE TO CHANGE Education & Communication Participation & involvement Facilitation & Support Negotiation Manipulation & Co-option Coercion
  • 21. © Operational Excellence Consulting ● It is key to understand and leverage is the rate and pace at which people adapt to change ● Focus time and efforts on the Middle / Late Enrollers. Don’t waste time on Slugs / Die Hards. You won’t persuade them in 100 days! ● Let the Initiators & Early Enrollers help you promote the change THE ENROLLMENT CURVE DEPICTS THE TYPICAL RESPONSES TO CHANGE 21 5% 15% 30% 30% 15% 5% Middle Enrollers Late Enrollers Early Enrollers Initiators Slugs Die Hards Critical Mass Direction of Enrollment Source: Based on Atlanta Consulting Group, Inc. The Enrollment Curve
  • 22. © Operational Excellence Consulting When it comes to change management, internal communication plays an even more critical role today 22
  • 23. © Operational Excellence Consulting 1. Lead with the culture 2. Start at the top 3. Involve every layer 4. Make the rational and emotional case together 5. Model the new behaviors 10 GUIDING PRINCIPLES OF CHANGE MANAGEMENT 6. Engage through constant communication 7. Lead through authority and influence 8. Leverage formal (“hard”) solutions 9. Leverage informal (“soft”) solutions 10. Assess and adapt 23 Source: Adapted from Strategy&/Katzenbach Center survey, 2013
  • 24. © Operational Excellence Consulting CHANGE MANAGEMENT: OVERVIEW OF THE DETAILED STEPS 24 Evaluate Effectiveness Monitor Progress Plan & Launch Program Analyze Current Situation CHANGE MANAGEMENT PROCESS 1. ANALYZE CURRENT SITUATION 1.1 Identify reason for change 1.2 Assess readiness for change 1.3 Assess impact of change 1.4 Identify gaps 1.5 Gather feedback 2. PLAN & LAUNCH PROGRAM 2.1 Define change strategy 2.2 Set up change infrastructure 2.3 Create awareness and get buy-in 2.4 Develop and communicate plans 2.5 Develop skills 2.6 Launch pilot project(s) 4. EVALUATE EFFECTIVENESS 4.1 Review results 4.2 Share success stories 4.3 Provide follow up support 4.4 Reward and recognize 3. MONITOR PROGRESS 3.1 Monitor change process 3.2 Overcome resistance to change 3.3 Assess behavioral changes 3.4 Measure effectiveness 3.5 Provide support Change Management Process
  • 25. © Operational Excellence Consulting “Insanity is doing the same thing, over and over again, but expecting different results.” ALBERT EINSTEIN 25
  • 26. © Operational Excellence Consulting Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg ABOUT OPERATIONAL EXCELLENCE CONSULTING