Organizational Change Management Leading Change in Information Technology
Organizational Change Management Leading Change in Information Technology
What Is Organizational Change? Organizational change is defined simply as: - changes in organizational behaviors and employee attitudes to move from a current state to a desired future state based upon external stimuli triggering the event Changes in the external environment effect changes in a company's strategy,which drives technology,business processes,and organization Addressing organizational change problems involves the introduction of Organizational Change Management(OCM) Impact of New Technology Managed Change Time
What Is Organizational Change? • Organizational change is defined simply as: – changes in organizational behaviors and employee attitudes to move from a current state to a desired future state based upon external stimuli triggering the event • Changes in the external environment effect changes in a company’s strategy, which drives technology, business processes, and organization • Addressing organizational change problems involves the introduction of Organizational Change Management (OCM) Time Productivity Impact of New Technology Managed Change
Why Do Change Programs Fail? Resistance by Employees 82% Inadequate Sponsorship 72% Unrealistic Expectations 65% Poor Project Management 54% Business Case not Compelling 46% Project Team Lacked Skills 44% Scope Expansion/Uncertainty 44% No Organizational Change Plan 43% Silos/No Horizontal Process View 41% Source:Deloitte CIO Survey IT Perspective not Integrated 36% Change Leadership issues are noted in RED 10% 20% 30% 40% 50% 60% 70% 80% 90% of Firms
Why Do Change Programs Fail? 36% 41% 43% 44% 44% 46% 54% 65% 72% 82% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% IT Perspective not Integrated Silos / No Horizontal Process View No Organizational Change Plan Project Team Lacked Skills Scope Expansion / Uncertainty Business Case not Compelling Poor Project Management Unrealistic Expectations Inadequate Sponsorship Resistance By Employees % of Firms Why Do Change Programs Fail? Resistance by Employees Inadequate Sponsorship Unrealistic Expectations Poor Project Management Business Case not Compelling Project Team Lacked Skills Scope Expansion / Uncertainty No Organizational Change Plan Silos/No Horizontal Process View IT Perspective not Integrated Source: Deloitte CIO Survey Change Leadership issues are noted in RED
Why Do We Need OCM in IT? OCM is how an organization goes about implementing the human changes brought about by Technology and Business Process Improvements. The process of change management deals with the mechanisms of human transitions,the way personnel within an organization relate to change in their lives,and why some change efforts are successful while others fail. Successful change management and successful business management require effective integration and alignment of system and structure to support an effective culture.It requires attention to all major elements that impact organizational performance
Why Do We Need OCM in IT? • OCM is how an organization goes about implementing the human changes brought about by Technology and Business Process Improvements. • The process of change management deals with the mechanisms of human transitions, the way personnel within an organization relate to change in their lives, and why some change efforts are successful while others fail. • Successful change management and successful business management require effective integration and alignment of system and structure to support an effective culture. It requires attention to all major elements that impact organizational performance
Change is Not an Event.it is a Process Help People See Understand the Logic Compelling situations are The logic from the created to help others analysis feeds into the visualize problems, creation of the solutions,or progress in compelling situations Logic solving complacency, strategy,empowerment or other key problems within the eight steps See Change Behavior Change Emotionally charged ideas Hit the Emotions change behavior The visualizations provide or reinforce useful ideas that hit changed behavior people at a deeperlevel than surface thinking. Feel They evoke a visceral response which reduces emotions that block change and enhances those that support it
See Feel Change Logic See Feel Change Logic Change is Not an Event.it is a Process The logic from the analysis feeds into the creation of the compelling situations Emotionally charged ideas change behavior or reinforce changed behavior Compelling situations are created to help others visualize problems, solutions, or progress in solving complacency, strategy, empowerment or other key problems within the eight steps The visualizations provide useful ideas that hit people at a deeper level than surface thinking. They evoke a visceral response which reduces emotions that block change and enhances those that support it. Help People See Hit the Emotions Understand the Logic Change Behavior
SCE's Eight Steps of Change 8.Make it Stick Implementing&Sustaining Transformation 7.Sustain the Change Engaging&Enabling the Whole Organization 6.Create Short-term Wins 5.Plan/Organize/Enable Action Creating a Climate for Change 4.Communicate for Buy-in 3.Define the Change lmpacts 2.Create the Vision Build the Guiding Team 1.Create a Sense of Shared Need Urgency Based on Kotter,John P.Leading_Change.Boston:Harvard Business School Press
SCE’s Eight Steps of Change 1. Create a Sense of Shared Need & Urgency 2. Create the Vision & Build the Guiding Team 3. Define the Change Impacts 4. Communicate for Buy-in 5. Plan/Organize/Enable Action 6. Create Short-term Wins 7. Sustain the Change 8. Make it Stick Based on Kotter, John P. Leading Change. Boston: Harvard Business School Press Engaging & Enabling the Whole Organization Implementing & Sustaining Transformation Creating a Climate for Change
Eight Steps of Change and Behavior Each step is designed to create a new behavior in the organization that will support the change process Step Action New Behavior People start telling each other,"let's go,we need to change things!" 7 Create a Sense of Shared [Note:This is the most important step.If you lose urgency the change Need and Urgency effort grinds to a halt,maintain it and you will be able to navigate the remaining 7 Steps.] Create the Vision and Build A group powerful enough to guide a big change is formed and they start to work together well.The quiding team develops the right vision and the Guiding Team strategy for the change and begins to engage key stakeholders. Define the Change Impacts The guiding team identifies the organizational and personal impacts required to realize the vision. Communicate for Buy-In People begin to buy into the change and this shows in their behavior Plan/Organize/Enable Action More people feel able to act,and do act,on the vision. 6 Create Short-term Wins Momentum builds,as more and more people try to fulfill the vision,while fewer and fewer resist change Sustain the Change People make wave after wave of changes until the vision is fulfilled Make It Stick People keep behaving in new ways despite the pull of tradition,turnover of change leaders,etc. Based on Kotter,John P.Leading _Change.Boston:Harvard Business School Press
Each step is designed to create a new behavior in the organization that will support the change process Step Action New Behavior 1 Create a Sense of Shared Need and Urgency People start telling each other, “let’s go, we need to change things!” [Note: This is the most important step. If you lose urgency the change effort grinds to a halt, maintain it and you will be able to navigate the remaining 7 Steps.] 2 Create the Vision and Build the Guiding Team A group powerful enough to guide a big change is formed and they start to work together well. The guiding team develops the right vision and strategy for the change and begins to engage key stakeholders. 3 Define the Change Impacts The guiding team identifies the organizational and personal impacts required to realize the vision. 4 Communicate for Buy-In People begin to buy into the change and this shows in their behavior 5 Plan/Organize/Enable Action More people feel able to act, and do act, on the vision. 6 Create Short-term Wins Momentum builds, as more and more people try to fulfill the vision, while fewer and fewer resist change 7 Sustain the Change People make wave after wave of changes until the vision is fulfilled 8 Make It Stick People keep behaving in new ways despite the pull of tradition, turnover of change leaders, etc. Based on Kotter, John P. Leading Change. Boston: Harvard Business School Press Eight Steps of Change and Behavior
Tools Accelerators for Each Step 8.Make it Stick 7.Sustain the Change 6.Create Short- Targeted Sample Tools term Wins Reinforceme 5.Plan/ ·Use nt Strategy rganize/Enable Satisfaction ·Perform 4.Commun. Action Quick Hit Survey for Buy-in ance Mgt Workshop 3.Define the Change Agent Template Sponsor Process Change Assessment Assess-ment Continuum 2.Create the Impacts Stakeholder Quick Hit (update) Vision Analysis Sponsorship ·Balanced Action Plan Stakeholder Scorecard 1.Sense of ·Impact Assessment Template Awareness Need Urgency Assess-ment Audience Org.Structure Quick Hit Analysis/ Assess-ment ance ·Project Team Organiza- Prioritiza-tion Primer Evaluation (update) Charter Appraisal tional Analysis Matrix Problem Performance Guidelines ·Leader Action Design ·Responsibility Survey Statement Communicatio Primer Plans Approach Charting ·Position ·Project Managing Prototype n Media Client ·Change ·Project QA Description Expectation Analysis Readiness ·Cultural Challenge Program Climate for Survey Assessment Session Materials Visioning Assess-ment Change Materials Basics Change Media Usage Stakeholder ·Perform Assessment Guideline Impact Matrix Action Plan ·Don't Let Up Alignment ·Risk Wheel ·Sponsor-ship Analysis Project Team Field Guide and Mgt. Communicatio Action Plan ·Force Field n Matnx Assessment Strategy Analysis Stakeholder Action Plan
Tools & Accelerators for Each Step 1. Sense of Need & Urgency 2. Create the Vision 3. Define the Change Impacts 4. Commun. for Buy-in 5. Plan/ Organize/ Enable Action 6. Create Shortterm Wins 7. Sustain the Change 8. Make it Stick • Problem Statement • Project Description • Climate for Change Assessment • Risk Wheel • Project Team Charter • Responsibility Charting • Managing Expectation • Visioning Basics Guideline • Sponsor-ship Action Plan • Impact Assess-ment • Organizational Analysis Survey • Position Prototype • Cultural Assess-ment • Change Impact Analysis • Force Field Analysis • Stakeholder Analysis • Audience Analysis / Prioritiza-tion Matrix • Communicatio n Media Analysis & Survey • Media Usage Matrix • Communicatio n Matrix • Stakeholder Action Plan • Change Agent Assessment • Sponsorship Assessment • Org. Structure Primer • Performance Primer • Client Readiness Assessment • Stakeholder Action Plan • Project Team Assessment • Quick Hit Workshop Template • Quick Hit Action Plan Template • Quick Hit Evaluation Guidelines • User Satisfaction Survey • Sponsor Assess-ment (update) • Stakeholder Awareness Assess-ment (update) • Leader Action Plans • Change Challenge Session Materials • Don’t Let Up Field Guide • Targeted Reinforceme nt Strategy • Performance Mgt Process Continuum • Balanced Scorecard • Performance Appraisal Design Approach • Project QA Program Materials • Perform Alignment and Mgt. Strategy Sample Tools
Managing Change at SCE:An Example Project:PlanView Project/Resource Mgmt System Type of Change:System and Process change Scope:1400 IT Users Vision Sponsorship Executive Sponsor Team User Training Plan -Customized dassroom Training by role Process Owners -1 hr Web based training Communicate for Buy-in -Timely consistent message to all users Information disseminated via OCM Reps User Web Site Central repository of info PlanView Training materials Implementation Project status -FAQs and Pointers SMEs Subject Matter Experts by role First line of user support Process Team -Developed new processes around the system OCM Reps Addressed process change issues -Change Agents from each work group Single point of contact for their group Issue escalation resolution
Managing Change at SCE: An Example SMEs - Subject Matter Experts by role - First line of user support Communicate for Buy-in - Timely & consistent message to all users - Information disseminated via OCM Reps User Training Plan - Customized classroom Training by role - 1 hr Web based training OCM Reps - Change Agents from each work group - Single point of contact for their group - Issue escalation & resolution Vision & Sponsorship - Executive Sponsor Team - Process Owners User Web Site - Central repository of info - Training materials - Project status - FAQs and Pointers Project: PlanView Project/Resource Mgmt System Type of Change: System and Process change Scope: 1400 IT Users Process Team - Developed new processes around the system - Addressed process change issues PlanView Implementation
Quality Quality can be defined as the totality of features and characteristics of a product or service that bears on its ability to satisfy given needs. 6
Quality Quality can be defined as the totality of features and characteristics of a product or service that bears on its ability to satisfy given needs. 6