Managing Change in
Organizations
Sonja Streuber
Project Mgmt & Engineering, Six Sigma, Risk Mgmt & Risk Analysis:
• 2000 – 2003 Agilent Technologies • 2003 – 2009 Lockheed Martin • 2009 – 2011 ITT Exelis
• 2011 – present Valparaiso University • 2012: Founded PMReboot
• 2012 – present: F1 @ NiSource (currently IT PMO Risk and Metrics Mgr)
Education, Certifications:
• Six Sigma Black Belt, Caterpillar Corp., 2012 • PMP®, Project Management Institute, 2010
• M.S. (Systems Engineering), George Washington U • M.A./ A.B.D. (English), UC Davis
What is Change Management
◦
Change as a Strategy
◦
The Nature and Process of Change
◦
Three Change Life Cycle Models: PMI, ProSci, ChangeMethod)
◦
Critical Factors that Can Impede or Foster Change
Managing Change in an Organizational PM context
◦
Change Management and OPM
◦
Assessing Change Readiness
◦
Key Factors for Change Management
Change Management at Different Levels
◦
Portfolio
◦
Program
◦
Project
Free Resources
Summary
Agenda
What is Change Management?
Change as Strategy
“Change management is a comprehensive, cyclic, and structured approach for transitioning individuals, groups, and organizations from a current state to a future state with intended business benefits.
It helps organizations to integrate and align people, processes, structures,
culture, and strategy.”
Strategic Agility
Org. Business Strategy
Formulate Change Plan Change Implement Change Manage Transition Sustain Change R e al iz ed V al ue Busi ness Objecti ves As-Is To-Be Increasing Capability Growing Population Technology Legal/ Regulatory New Markets Knowledge Mgmt Global Economy Global Comm Social Networking • External drivers • Agile Culture
What is Change Management?
The Nature and Process of Change
Human dimension: Resistance is
natural because people feel loss of
control over their environment &
work processes
Organizational dimension:
Resistance is futile
Change as:
Psychological Transition (disruption)
Process
Occurring in three degrees:
1. Adjustment
2. Transformation
3. Values
PM must deal with people and ambiguity
Reason Need Vision Desire Org Process Review Baby Steps Corporate
Org. Business Strategy Formulate Change
Need, Readiness, Scope
Plan Change
Approach, Stakeholders, “How”
Implement Change
Prepare, Mobilize, Deliver
Manage Transition
Outputs, Measurements, Gap Analysis
Sustain Change
Communication, Sensemaking Activities, Measure Benefits Realization
R e al iz ed V al ue Busi ness Objecti ves As-Is To-Be
What is Change Management?
What is Change Management?
Change Mgmt Model (ProSci)
See also:
• Change Management
Planning Checklist
• Change Management
Tutorial
• Other
Tutorials
ADKAR Model
• Awareness
• Desire
• Knowledge
• Ability
• Reinforcement
What is Change Management?
Change Mgmt Model (ChangeMethod)
Process
Steps
:
1. Define Future State
2. Define Change Governance
3. Develop Change Strategy
4. Conduct Change Impact
Assessment
5. Develop Change Mgmt Plan
Free cheat sheets, tools, templates
to
download
.
What is Change Management?
Factors that Impede or Foster Change
Alligators and Mermaids: http://www.youtube.com/watch?v=hcz1aZ60k7w
Is Good
Is Bad
Change
Advantagesof Changing? Threats of Changing?
No Change
Advantages of NotChanging? Threats of Not Changing?
The Challenge: Diagnosis and Communication
Chan ge Mgm t
Managing Change in an Org PM context:
Change Management and OPM
Mission Vision Org Strategy Portfolios: Programs, Projects Operations People Process Structur es Tech OPM3
•
Program and Project
Management: Effectively
& efficiently deliver org
value (aligned in Portfolio)
•
Business Impact Analysis:
Collects results data from
programs & projects for
portfolio review cycles
•
Value Performance
Analysis: Is the business
value being realized?
•
Organizational
Environment
Managing Change in an Org PM context:
Change Management and OPM
Org. Business Strategy Formulate Change
Need, Readiness, Scope
Plan Change
Approach, Stakeholders, “How”
Implement Change
Prepare, Mobilize, Deliver
Manage Transition
Outputs, Measurements, Gap Analysis
Sustain Change
Communication, Sensemaking Activities, Measure Benefits Realization
R e al iz ed V al ue Busi ness Objecti ves As-Is To-Be Portfolio Program Project Operations
Managing Change in an Org PM
Context: Assessing Change Readiness
Motivation s, barriers,
limitations Context People and Orgs
Available support, needed resources Culture and historical
experience in dealing with change
Policies, processes, roles, decision-making norms Accountability hierarchy/ performance mgmt
Change agenda: Size, timeframe, concurrency Resources leading change (expertise, experience) Leadership support (sponsoring)
Managing Change in an Org PM context:
Key Factors
For Success
1.
Stakeholder Engagement
2.Acceptance
3.
All Supporting Systems Aligned
4.Realistic speed, complexity,
scope
5.
All sponsors aligned
6.
Clear description of future state
7.Success Metrics defined & in
place
8.
COMMUNICATION (vision,
benefits/ impacts, support,
FAQs, … ) and effectiveness
checks (webpage hits, etc.)
9.Change evangelists embedded
10.Culture of change
For Failure
1.Lack of Sponsor
2.Lack of Commitment to
Funding or Resources
3.Culture of Resistance
(inertia, trust, competencies,
bureaucracy)
4.
Failure to Build Change
Readiness
5.
Insufficient Time
6.
Poor vision of the future
7.Poor success metrics
Org. Business Strategy Formulate Change
Need, Readiness, Scope
Plan Change
Approach, Stakeholders, “How”
Implement Change
Prepare, Mobilize, Deliver
Manage Transition
Outputs, Measurements, Gap Analysis
Sustain Change
Communication, Sensemaking Activities, Measure Benefits Realization
R e al iz ed V al ue Busi ness Objecti ves As-Is To-Be Portfolio Program Project Operations
The OPM3 view
Change Management at different
levels: Portfolio
Change Management at different
levels: Portfolio
Portfolio = a collection of
quantifiable programs,
projects, or operations (not
necessarily related)
managed as a group to
achieve strategic objectives
Principles & Practices
1. Strategic Focus
2. Strategic Initiatives
3. Portfolio Components
4. Quantifiable Components
5. Time Horizon (long-term)
6. Portfolio Snapshot
7. Portfolio Mgmt Activities
8. Alignment to Org Strategy
9. Governance (decision body)
10. Balancing of Conflicting Demands
Need: Change
Readiness
Assessment
Governance
Sponsorship
Accountability
Capacity to Execute
Success Definition
Method
Business Case
Capacity to Manage
Resolve
Scope: Gap Analysis
•
Impact to existing
systems
•
Impact on org’s
processes
•
Impact on people
Impact on org
structure
•
Technology impact
•
Environmental impact
(availability of capital,
demographics of
resources, social/
political issues
Change Impact Assessment
Success:
Aggregate
investment
performance
and realization
of intended
benefits
Value
Change Management at different
levels: Portfolio
Org. Business Strategy Formulate Change
Need, Readiness, Scope
Plan Change
Approach, Stakeholders, “How”
Implement Change
Prepare, Mobilize, Deliver
Manage Transition
Outputs, Measurements, Gap Analysis
Sustain Change
Communication, Sensemaking Activities, Measure Benefits Realization
R e al iz ed V al ue Busi ness Objecti ves As-Is To-Be Portfolio Program Project Operations
The OPM3 view
Change Management at different levels:
Program
Change Management at different
levels: Program
Program
Management=
The harmonized
management of
a number of
related
components
through a
common
outcome of
delivery of a
collective set of
benefit.
Program Definition Formulate Change
Program Formulation Identify/ clarify the need for change Assess change readiness
Define change scope Program Preparation Plan Change
Define change approach Plan stakeholder engagement Plan transition and integration
Program Benefits Delivery Implement Change
Component Planning &Auth Prepare ogranization for change Component Oversight
&Integration
Communicate & engage stakeh Mobilize stakeholders Component Transition and
Closure Deliver project outputs
Program Closure Manage Transition
Program Transition Transition output to business
Measure adoption rate and benefits Adaptive change Adjust plan to address discrepancies Program Transition Sustain change
Ongoing communication, consultation, and representation of stakehodlers Conduct sensemaking activities Measure benefits realization
Program Closeout
Pr
ogr
am Life
Cy
cl
e
Phase
s
Ch
ange
Lif
e
Cy
cl
e
Change Management at different
levels: Program
p. 81
Primary Integrator Functions
Success Metrics: • Short-term: Knowledge acquisition ( before/after assessment) • Medium-term: Knowledge transfer or application of training to work (=conformance to new performance standards) • Long-term: • Improvement in overall performance (cause-effect problematic)
Org. Business Strategy Formulate Change
Need, Readiness, Scope
Plan Change
Approach, Stakeholders, “How”
Implement Change
Prepare, Mobilize, Deliver
Manage Transition
Outputs, Measurements, Gap Analysis
Sustain Change
Communication, Sensemaking Activities, Measure Benefits Realization
R e al iz ed V al ue Busi ness Objecti ves As-Is To-Be Portfolio Program Project Operations
The OPM3 view
Change Management at different levels:
Project
Change Management at different
levels: Project
PMs need to understand Project’s role in achieving business benefits How the project may
need to adapt to other changes in the environment
Who the SMEs are on
the project team
Project scope relative
to program scope and vision
Impact of human
factors outside the project team
Program Lifecycle Phases PM Process Groups Change Lifecycle
Program Definition Formulate Change
Program Formulation Identify/ clarify need for change
Assess change readiness
Define change scope
Program Preparation Initiating and Planning Plan Change
Define change approach
Planning Plan stakeholder engagement
Planning Plan transition and integration
Program Benefits Delivery Implement Change
Component Planning and Authori Planning Prepare ogranization for change
Component Oversight and Integration
Communicate & engage stakeholders
Executing Mobilize stakeholders
Component Transition and Closure
Executing Deliver project outputs
Program Closure Manage Transition
Program Transition Executing Transition output to business
Monitoring and Controlling Measure adoption rate and outcomes/ benefits
Adaptive change Monitoring and Controlling Adjust plan to address
discrepancies
Program Transition Sustain change
Communication, consultation, and
representation of stakeholders
Conduct sensemaking activities
Measure benefits realization
Monitoring and Controlling Monitor for resistance or apathy
Change Management at different
levels: Project
p. 97
A project output becomes operationally effective when • An acceptable number of people adopt it and use it effectively in day-to-day operations after project completion• Management systems are in place to measure & ensure the effective performance of the new work activity
• Support systems and feedback loops are in place
• Procure resources to support deliverables
• Communicate to enlist & empower stakeholders • Identify & address risks of resistance
• Build flexibility into project management plans • Coordinate & align project and program efforts
Free Resources
• PMI Managing Organizational Change at
http://www.pmi.org/Knowledge-Center/Change-Management/Change-Management-Form.aspx
• PMI Change Management Community of Practice:
http://changemgmt.vc.pmi.org/Home.aspx
• OCM Plan Template at
http://www.cvr-it.com/Samples/XOrgChgMgtPlanTemplate.pdf
• SearchCIO at TechTarget has an entire template set for
free:
http://searchcio.techtarget.com/news/2240020677/Fre
e-change-management-templates
• Change Management Toolbook (method and
templates):
http://www.change-management-toolbook.com/change-management
Summary
Organizational change
• Starts with a vision of a future state
• Must prove success with metrics at the end
• Derives initiatives from the overall business strategy
• Delivers sustained value to the business
• Requires a Change Impact Assessment (for Context/
Environment and People)
• Requires Resistance Risk Management with varying
forms of communication
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