Successful Change Management
Key Principles and Insights for Super Funds
Today’s session
• Types of change
• Barriers and piDalls
• Change experiences in our own industry
• Principles for successful change management
• Applying the principles to changes we are facing now
Types of change
• There are many different types of change
– E.g. Technological, regulatory and legisla@ve, mandated, compliance-‐led,
strategic, behavioural, opera@ng model, growth, risk, human, roles, physical loca@ons…
• Today we are talking about the key changes that will impact
people’s day to day work, and how these changes can be successfully managed…from the “human” side as well as the “process” side
• We will talk through the principles of successful change
management and work through a prac@cal example of how you can apply these
Barriers and piDalls
Most major changes fail
• “The brutal fact is that 70% of all change ini@a@ves fail” Beer,
M and Nohria, N, ‘Cracking the Code of Change’, Harvard Business Review, May 2000
• Ko;er’s research and global surveys (e.g. McKinsey & Co.)
come to a similar conclusion
Barriers and piDalls
Why?
• People and organisa@ons are naturally resistant to change!
• Typical reasons cited for the lack of buy-‐in and failure of
change management are:
– Poor communica@on and engagement, with lack of focus on
the “human” aspects of change (Why? What’s in it for me?)
– Ineffec@ve sponsorship from leaders
– Lack of a structured approach to change management
(star@ng too late, with insufficient plan/resources)
Change experiences in our own industry
From… …To
Taking phone calls through a
switchboard Birth of importance of call centres and contact centres Focus on processes Rela:ng to members and employers 1:1 Paper in-‐trays Imaging, electronic delivery, op:cal
scanning
“How fast can you key?” Needing a combina:on of
communica:on, problem-‐solving and good keying skills
Looking back, we’ve seen a number of shiJs in superannua:on admin…
Change experiences in our own industry
• We’ve seen some examples of successful changes
– “Aber some ini@al complaints, staff and team leaders got together, took
responsibility for the solu@on (they took a managed account approach) and transformed it into be;er outcomes”
• There have also been challenges with implemen@ng change
– “S@ll moving off paper”
– “Haven’t heard the words ‘change management’ un@l the last 18 months”
– “Major projects are seen as IT/technical projects”
– “The business has not been engaged along the way – were engaged at the start but
then the projects went away in isola@on…we need a smoother handover”
– “We needed to iden@fy the implica@ons earlier – what retraining was needed,
which jobs were changed, lost, redeployed”
– “The tempta@on is to change everything at once…we need to focus more on the
main objec@ve, and come back later to deal with the smaller issues we saw along the way”
Principles for successful change management
1.
Define the change and change-‐readiness
2.
Engage, engage, engage
3.
Get leadership buy-‐in and the right team
4.
Address “human” and “process” ac@ons
Changes we are facing now
•
Let’s take an example from today (e.g. auto-‐
consolida@on)…
•
Imagine you have been asked to “make this change
happen smoothly”
Exercise: Applying the principles
• Each table will be given one
of the principles
• Your objec@ve is to answer
the two ques@ons for this principle, for our example
• Each table nominates a
table captain
• We have 20 mins for table
discussion
• Each table captain then has
2 mins to summarise for the rest of the room
1. Define the change and change-‐readiness
• How disrup@ve will the
change be?
– What exactly is changing?
– What are the implica@ons for which workflows, roles and people are impacted?
– How challenging are the targets?
• How ready for change is
2. Engage, engage, engage
• Who do we need to engage
and where do we need to get them to?
– Who are the people or groups of people we need to engage?
– How well do they currently understand why they should change -‐ where are they on the “ADKAR” scale (“Awareness, Desire, Knowledge, Ability, Reinforcement” – Prosci TM)?
• When and how can we engage
3. Get leadership buy-‐in and the right team
• What do we need to do to
get buy-‐in from key senior leaders?
– Who of the senior leaders needs
to sponsor the change?
– Where do they need to be in
terms of leading the change?
– Where are they now?
– What can we do to get them to
where they need to be?
• What team and resources
do we need to manage the change?
4. Address “human” and “process” ac@ons
• What “human” ac@ons do
we need?
(e.g. rela@ng to engagement on who/what/why/when/how, capability-‐building, addressing resistance to change, leadership role-‐modelling)
• What “process” ac@ons do
we need?
(e.g. rela@ng to targets, visual metrics, process changes and improvements)
5. Take a structured approach
• What are the phases of our
change management plan?
• What do we need to
Today’s session
• Types of change
• Barriers and piDalls
• Change experiences in our own industry
• Principles for successful change management
• Applying the principles to changes we are facing now
