UNO IT Academy Organizational Change Management The Secret to Delivering Project Benefits

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UNO IT AcademyOrganizational Change Management
The Secret to Delivering Project Benefits
Dr. George Royce Ph.D., PMP University of
Nebraska at Omaha groyce_at_unomaha.edu
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Agenda
Topic Time
Welcome and Introductions 800 815
Introduce Organizational Change Management and resistance to change and benefits 815 835
Team Activity 1 Share examples of resistance in teams and report out 830 to 840
Discuss why people resist change and how to identify it early in projects 840 910
Team Activity 2 Teams work on a project scenario and identify areas of resistance 910 925
Discuss why people resist change and methods to overcome resistance 925 1000
Team Activity 3 Teams are provided a project scenario and must identify resistance in this project. They report to class potential resistance and rank 1000 1030
Break 1030 - 10-45
Discuss methods to manage resistance and change management plans 1045 1110
Team Activity 4 Teams create a organizational change management plan for their project scenario 1100 1130
Teams present their organizational change management plans to the class 1130 1150
Summary and Wrap-up 1150 1200
Agenda
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What is Change Management?
For things to change, somebody somewhere has to
start acting differently. Maybe its you, maybe
its your team.
What is Change Management?
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Two Parts of Managing Change
But often the soft part of change is the
hardest part to do well and key to a projects
success.
What is Change Management?
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The ROI of Organizational Change Management
Total cost Of Project
Expected Savings from a Project
Imagine if you could start saving from day 1 of
a project.
Time
Implementation Begins
Source Prosci
Why Change Management?
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The ROI of Organizational Change Management
Total cost Of Project
Expected Savings from a Project
Realistic progression during rollout. You are
not going to achieve all savings day 1
Time
Implementation Begins
Source Prosci
Why Change Management?
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The ROI of Organizational Change Management
Total cost Of Project
Expected Savings from a Project
Here is what the savings might look like if the
adoption rate is slower for a project.
Time
Implementation Begins
Why Change Management?
Source Prosci
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The ROI of Organizational Change Management
Total cost Of Project
Expected Savings from a Project
Here is what the savings might look like if the
some people never adopt the change.
Time
Implementation Begins
Why Change Management?
Source Prosci
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The ROI of Organizational Change Management
Total cost Of Project
Expected Savings from a Project
Here is what the savings might look like if the
some people never adopt the change And others go
back to the old way of doing things.
Time
Implementation Begins
Why Change Management?
Source Prosci
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The ROI of Organizational Change Management
With good change management you can achieve
these results!
Total cost Of Project
Expected Savings from a Project
Time
Implementation Begins
Why Change Management?
Source Prosci
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Business Impact of Change Management

• Organizational Change Management is the Common
  Project Success Denominator
• McKinney study examined many project variables
  and in particular the effect of an Organization
  Change Management (OCM) program on a projects
  ROI. The study showed
• 143 percent when an excellent OCM program was a
  part of the initiative
• 35 percent when there was a poor OCM program or
  no program.
• What do those these results mean? A 143 percent
  ROI means that for every dollar spent on the
  project the company is gaining 43 cents. On the
  other hand, a 35 percent ROI means that for every
  dollar spent they are losing 65 cents.
• Ignore Change Management put your project
  success at risk!

Source The Business Impact of Change
Management http//gbr.pepperdine.edu/2010/08/the-b
usiness-impact-of-change-management/
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When Do Projects Start Change Management Planning?
Why Change Management?
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Change and Project Management Integration
Source http//dti.delaware.gov/majorproj/changemg
mt.shtml
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Change is a Process of moving from one phase to
another
TO-BE Phase
AS-IS Phase
Transition Phase
Change Management Methodology
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Team Activity 1

• Assemble in teams of 4
• Objective Share one story of resistance observed
  inside or outside of projects at current or past
  jobs or even outside work.
• Team votes for best resistance story to share
  with the class
• You have 10 minutes BEGIN NOW!!!

Change Management Methodology
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Resistance to Change
Resistance is a natural part of the change
process. It is the force that opposes any
significant shift in the status quo.
Manage Resistance to Change
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Resistance

• Resistance to change in projects should be
  expected.
• Dont be upset when people resist your cool new
  software or cool new process improvement. We
  need to plan for resistance.
• We need to predict/identify possible resistance
  and develop a plan to overcome resistance in all
  kinds of projects.
• My interest in project resistance came out of an
  early and dramatic experience in resistance be
  careful when you take a familiar tool away from
  workers!

Manage Resistance to Change
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A Story of Organizational Change Management
Claims Examiner Workstation (CEWS)
Projects involved moving claims examiners from
dumb terminals and tape calculators to a PC
application and a built in calculator on the
screen
CAPS
Why were claims entry staff and examiners so
emotional about this change?
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Manage Resistance to Change
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But why do people become emotional about changes?
Change happens in our personal lives.
A First Child Harrison Royce A Real Change
Agent!
Manage Resistance to Change
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Learning /Relearning can be scary and emotional!

• Change lights up an area of the brain, the
  prefrontal cortex.
• The prefrontal cortex is like RAM in a computer.
  Its capacity is finite and it takes lots of
  energy while you are using it to first learn new
  things.
• The Prefrontal cortex is closely linked the
  amygdala the fight or flight center of the
  brain.
• If you try to process too much too fast with the
  prefrontal cortex, you can experience emotions of
  fear and anxiety.

• The pain of learning new things is experienced
  by all of us.
• People react differently to this emotion. How do
  you react?

Koch, Chris. The Science of Change. CIO
Magazine, Sept 15, 2006.
Why Do People Resist Change?
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Why Do People Resist Change?

• When a person does learn something, it can
  creates insight and the pleasure of insight.
• By repeating something many times, there are new
  paths developed in the basal ganglia of the
  brain. This is like writing things to the hard
  disk in a computer.
• Creating those connections takes energy, time and
  can cause discomfort just like building
  muscles. It is also exhausting!
• Until the new way is in the basal ganglia, people
  often revert to old ways already in the basal
  ganglia

Basal Ganglia

• Moving people rapidly through this change process
  is organizational change management.

Koch, Chris. The Science of Change. CIO
Magazine, Sept 15, 2006.
Why Do People Resist Change?
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Learning anything means tuning new connections

• Getting better at anything (sports skills or
  paying claims faster in a new system) involves
  tuning.
• New paths and connections are created.
• The more you exercise the path, your body
  responds by growing and moving myelin cells to
  speed the connection.
• The brains creates the connections and then
  insulates /tunes them to make the newly created
  paths fast.

The Talent Code
Why Do People Resist Change?
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Top Reasons Why People Resist Change

• Loss of Control
• Excess Uncertainty
• Surprise, Surprise! Decisions imposed suddenly
• Everything Seems Different
• Loss of Face
• Concerns about competence
• More work!
• Ripple Effects
• Past Resentments
• Sometimes the threat is real!
• /

Source Rosabeth Moss Kantor http//blogs.hbr.org/
2012/09/ten-reasons-people-resist-chang
Why Do People Resist Change?
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Team Activity 2

• Each team will receive a one page description of
  a project and background information of people
  involved in the project.
• A. Web Content Management Take Two!
• B. Drop DropBox and start using the corporate
  version of Box to improve our security.
• C. Work-from-home in the call center for the new
  evening shift
• D. Physicians office converts to electronic
  medical records(EMR).
• Objective is to predict the areas of resistance
  in these projects based on the role of each
  employee mentioned in the story.
• Teams present their finding to class
• You have 20 minutes BEGIN NOW!!!!

Why Do People Resist Change?
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Change Models and MethodologiesWays to move from
As-IS to To-BE
TO-BE Phase
AS-IS Phase
Transition Phase
Change Management Methodology
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Satirs Change Process Model
New Status Quo
Change
Integration
Late Status Quo
Transforming Idea
Chaos in reactionto the change
The impact on group performance of a change
during the five stages of the Satir Change Model
Virginia Satir Famous Family Therapist her
model was adopted by organizational change in the
90s
Change Management Methodology
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Kubler-Ross Stages of Change Model
Change Management Methodology
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Kotters Phases of Organizational Change Model
Whats in it for Me? (WIIFM)
Change Management Methodology
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Lewins Dynamic Stability Model
Change Management Methodology
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ADKAR - A Methodology for Change Management

• ADKAR is a methodology for Change Management
  originally developed by Jeff Hiatt, founder of
  Prosci Research.

    Stage    Description
Awareness   of need for change -- reasons, and degree of comprehension
Desire  to participate and support -- motivating factors and consequences and level
Knowledge about how to change -- skills and insights
Ability to implement new skills and behaviors -- evaluate level and determine shortcomings
Reinforcement to keep the change in place -- incentives and constraints to make it stick
Change Management Methodology
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Role of the First Line Manager in Change
Initiatives
When you come back from the big change
announcement in the auditorium what happens?
Change Management Methodology
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Who Should Deliver the Message?

• The current situation and rationale for the
  change
• Business issues or drivers that created the need
  for the change
• Competitive issues or changes in the marketplace
• What might happen if the change is not made
• Vision of the organization after the change is
  made
• Overall timeframe
• Alignment of the change with business strategy

Change Management Methodology
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Change and Project Management Integration
Source http//dti.delaware.gov/majorproj/changemg
mt.shtml
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Successful Projects Start Change Management Early
Project Success
Closing
Monitoring / Controlling
Executing
Project Management
Planning
Initiation
Managing - Executing
Managing - Planning
Analyze-Transition
Preparing
Change Management
Source http//dti.delaware.gov/majorproj/changemg
mt.shtml
Change Management Methodology
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Assessing Impact of Change
Risk Determination Table
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Medium-High Risk
High Risk
Organizational Attributes
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Medium-Low Risk
Low Risk
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Change Characteristics
Source http//dti.delaware.gov/majorproj/changemg
mt.shtml
Change Management Methodology
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Stakeholder Analysis for State Conversion to
PeopleSoft HR (ERP module)
End-users Fat Client (HR specialists - power
users)
Developers End-users Web Client
Service Desk Customer Care Center Vendors
Executive Sponsors Governor
Source http//dti.delaware.gov/majorproj/changemg
mt.shtml
Change Management Methodology
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Organizational Change Management Plan
Major Changes Roles/Areas Impacted Change Management Assessment   Likely Forms of Resistance Approach to Manage Resistance
          Importance 1Low 5Medium 10High _______   Influence 1Low 5Medium 10High _______    
          Importance 1Low 5Medium 10High _______   Influence 1Low 5Medium 10High _______    
          Importance 1Low 5Medium 10High _______   Influence 1Low 5Medium 10High _______    
          Importance 1Low 5Medium 10High _______   Influence 1Low 5Medium 10High _______    
          Importance 1Low 5Medium 10High _______   Influence 1Low 5Medium 10High _______    
          Importance 1Low 5Medium 10High _______   Influence 1Low 5Medium 10High _______    
          Importance 1Low 5Medium 10High _______   Influence 1Low 5Medium 10High _______    
          Importance 1Low 5Medium 10High _______   Influence 1Low 5Medium 10High _______    
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Assess the Change and Those Being Impacted

• Identify the nature of the change and relative
  size of change.
• What is the scope of the change?
• Who is being impacted by the change?
• What is the risk if the change management is not
  done well?
• Is the sponsor a seasoned sponsor of change with
  a good track record in the this areas?
• What kind of support can we expect from first
  line managers?
• What is the culture like and how is change
  handled in this culture?

Change Management Methodology
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Build Your Change Management Resistance Plan

• Consider each group and begin to anticipate
  resistance from each group.
• How will the front line employees react?
• How will their managers react?
• What kind of change management tactics should be
  used to get the resistance out quickly and begin
  to deal with it?
• How can the sponsor help?
• Develop your resistance plan
• What should you do to address the resistance.
• What should the sponsor do?
• What should the first line managers do?

Change Management Methodology
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Team Activity 3

• Objective Assess the likely resistance that will
  develop based on roles. Predict the forms of
  resistance
• Using our sample projects, each team now needs to
  assess the potential influence and importance of
  each actor you have identified and the likely
  forms of resistance you expect. Complete using
  the change management plan template
• Teams present their finding to class
• You have 20 minutes BEGIN NOW!!!!

Change Management Methodology
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Agenda
Topic Time
Welcome and Introductions 800 815
Introduce Organizational Change Management and resistance to change and benefits 815 835
Team Activity 1 Share examples of resistance in teams and report out 830 to 840
Discuss why people resist change and how to identify it early in projects 840 910
Team Activity 2 Teams work on a project scenario and identify areas of resistance 910 925
Discuss why people resist change and methods to overcome resistance 925 1000
Team Activity 3 Teams are provided a project scenario and must identify resistance in this project. They report to class potential resistance and rank 1000 1030
Break 1030 - 10-45
Discuss methods to manage resistance and change management plans 1045 1110
Team Activity 4 Teams create a organizational change management plan for their project scenario 1100 1130
Teams present their Organizational Change management plans to the class 1130 1150
Summary and Wrap-up 1150 1200
Agenda
Change Management Methodology
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Switch How to Change Things when Change is Hard

• Direct the rider
• Motivate the Elephant
• Shape the path

How to change things
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The Emotional Side of Us is Like an Elephant

• The Heaths suggest that since our emotional and
  rational minds compete for control, both must be
  appealed to in order to create effective change.

How to change things
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The Rider is Much Smaller Than the Elephant

• Perched atop the Elephant, the Rider holds the
  reins and seems to be the leader. But the
  Riders control is precarious because the rider
  is so small compared to the elephant. Anytime
  the six ton elephant and the rider disagree, the
  rider is going to lose. He is completely
  overmatched.

How to change things
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Both have Strengths and Weaknesses

• The Elephant looks for immediate gratification,
  but also has the energy and drive to get things
  done.
• The Rider has the ability to think for the
  long-term and to plan for the future, but also a
  tendency to spin his/her wheels overanalyze and
  over-think

How to change things
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DIRECT the Rider

• FOLLOW THE BRIGHT SPOTS. Investigate what is
  working and clone it.

• Problem A large of number children in rural
  villages were malnourished.
• Jerry Sternin with Save the Children in 1990 was
  assigned to help fight malnutrition in Vietnam.
• Jerry decided to look for exceptions and
  determine what they were doing to avoid it.
• Jerry found the bright spot and then communicated
  it throughout rural Vietnam helping cure
  malnutrition!
• We are using the same technique for a project in
  the customer service call center!

How to change things
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DIRECT the Rider

• SCRIPT THE CRITICAL MOVES. Dont think big
  picture, think in terms of specific behaviors.
• Researcher in the 1980s wanted to have people
  eat healthier.
• Finally FOCUSED on moving people from whole milk
  to 1 milk.
• Advertisement 1 glass of whole milk had the fat
  of 5 strips of bacon.
• People changed their buying habits after the
  campaign

How to change things
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DIRECT the Rider

• POINT TO THE DESTINATION. Change is easier when
  you know where youre going and why its worth
  it.

• Crystal Jones was assigned to a first grade class
  that had no kindergarten. The students had
  little or no reading skills.
• Jones set a goal that was tailor made for first
  grade psyche

• She announced by the end of the school year
  your going to be third graders (at least in
  reading)
• Called the students scholars and their work was
  scholar work.
• By the end of the year 90 were reading at or
  above the 3rd grade level!

How to change things
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MOTIVATE the Elephant

• FIND THE FEELING. Knowing something isnt enough
  to cause change. Make people feel something.
• Jon Stegner wanted to convince his senior
  management that decentralized purchasing was
  costing the company millions.
• To make an impact, he piled 427 DIFFERENT sets of
  work gloves with price tags (5 to 17) on the
  table for a meeting with senior management
• The management team reacted by asking Jon to lead
  the change to centralized buying.
• The gloved became a part of a traveling road show
  
• Check out 40 famous leaders motivational pep
  talks!
• https//www.youtube.com/watch?vmQerL6YmxR8

How to change things
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MOTIVATE the Elephant

• SHRINK THE CHANGE. Break down the change until it
  no longer spooks the elephant.
• Company wanted to convince customer to come back
  to their car wash.
• Used two punch cards
• One with 8 punches and then receive a free car
  wash
• The other with 10 punches but 2 are already
  punched
• Which was more effective?
• Celebrating small milestones in large projects
  also helps to shrink the change.
• Completing and demonstrating stories in Agile
  projects every 3 weeks.

How to change things
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MOTIVATE the Elephant

• GROW YOUR PEOPLE. Cultivate a sense of identity
  and instill the growth mindset.
• Braliziata a can manufacturer in Brazil wanted
  to have employees adopt continuous improvement.
• They created a new identity and employees became
  know as inventors.
• New employees signed a innovation contract.
• New ideas poured in and led to new products and
  more efficient production lines.

How to change things
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SHAPE the Path

• TWEAK THE ENVIRONMENT. When the situation
  changes, the behavior changes. So change the
  situation
• A great example of this is Amazons One Click
  ordering!

How to change things
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SHAPE the Path

• BUILD HABITS. When behavior is habitual, its
  free it doesnt tax the Rider. Look for ways
  to encourage habits.
• Set Action Triggers (the next action is
  preloaded)
• When I drop Anna off at school, then I will go
  to the gym.
• Stand up meetings and a fixed agenda in Agile
  Project

How to change things
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SHAPE the Path

• RALLY THE HERD. Behavior is contagious. Help it
  spread.
• Seeding the tip jar
• Seeding the United way effort!
• Blackberry junkies in meetings when they sneak
  a look at their blackberry the rest of the team
  stare at the person.
• Sending out monthly Application Portfolio
  Management reports describing the progress of
  each team

How to change things
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Team Activity 4

• Objective Complete the Organizational Change
  Management Plan by describing the actions needed
  to manage the resistance you have described in
  Activities 2 and 3.
• Using our sample projects, each team now needs to
  describe the actions needed to manage the
  resistance you have described in Activities 2 and
  3.
• Teams present their finding to class
• You have 20 minutes BEGIN NOW!!!!

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How to change things
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Summary

• Resistance is a natural part of the change
  process.
• Resistance to change in projects should be
  expected.
• Dont be upset when people resist your cool new
  software or cool new process improvement.
• We need to plan for resistance.
• We need to predict/identify possible resistance
  and develop a plan to overcome resistance in all
  kinds of projects.
• Organizational Change Management needs to be
  started early in any project using any
  methodology!

How to change things
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If you want to learn more about organizational
change management check out these excellent
sources
Summary
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Resources

• HBR http//blogs.hbr.org/2012/09/ten-reasons-peop
  le-resist-chang/
• Lean Marketing Blog http//business901.com/blog1/o
  vercoming-resistance-and-backsliding/
• Graziadio Business Reviewhttp//gbr.pepperdine.edu
  /2010/08/the-business-impact-of-change-management/
  
• Delaware OCM http//dti.delaware.gov/majorproj/cha
  ngemgmt.shtml
• Kubler Ross Model http//blog.readytomanage.com/co
  ping-with-change/!prettyPhoto
• Kotter CM http//www.kotterinternational.com/our-p
  rinciples/changesteps
• Lewin CM http//www.change-management-coach.com/ku
  rt_lewin.html
• Prosci Model of CM http//www.prosci.com/ (also
  Delaware OCM)

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Supplemental Topics Follow This Slide
Supplemental slides
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Elements of a Communications Plan
Communication Plan a plan to communicate key
messages to a variety of audiences impacted by a
project and/or initiative.

• Determine goal of a project and/or initiative
• Identify and profile the audience
• Develop the messages
• Select communication channels
• Choose activities and materials
• Establish partnerships
• Implement the plan
• Evaluate and make mid-course corrections

Supplemental slides
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Communications technology factors that can affect
the project include

• The urgency of the need for information
• The availability of technology
• The expected project staffing
• The length of the project
• The project environment
• Methods
• Email
• Webex or SameTime Meetings
• Document Collaboration Database

Supplemental slides
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Project Communication Plan
Message Objective Impact on Audience Audience Vehicle Sender of Message Preparer of Message Reviewer of Message Feedback Mechanism Target Date Completed Date Frequency

• Message Objective
• Impact on Audience (Low Medium High)
• Audience
• Vehicle (Email, One on One, Presentations, etc)
• Sender of Message
• Preparer of Message
• Reviewer of Message
• Feedback Mechanism (did the audience receive and
  understand the message)
• Target Date
• Completed Date
• Frequency (if recurring message such as a project
  update).

Supplemental slides