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Change Management Framework

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Janet Akers Hollings

1. The document discusses common myths around change management and outlines a structured framework for leading transformational change. 2. The framework involves three phases: developing a clear strategic vision, designing the new organization required to execute the strategy, and managing the transition to the new organization. 3. Using a structured change management process in each phase, including engaging stakeholders and assessing risks, can help minimize disruptions during transformational change and reduce the typical "performance dip."

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Change Management Framework
Debunking the Myths Myth: Change is driven by company-wide initiatives such as “corporate culture” programs and training courses. Myth: Change should start with attitudes and behaviors at the individual level. Effective Transformational Change is not brought about by creating programs focused on changing culture, attitudes or behaviors
The road to transformational change . . . The first step is to articulate the Strategic Vision. Strategic Vision Implementation: Driving Change through the Organization
Beyond the vision It’s about achieving “ task alignment ” Making a vision come to life with clear strategies, initiatives and well-defined work activities Grouping work activities into refined or redefined jobs Putting the right people in those jobs and giving them direction...people only change behavior if their work changes
Task alignment requires great discipline Three core phases:
Phase 1 – Strategy Development Strategy – What is the future state that you want to achieve? What are the specific, measurable strategies or objectives for the business? Are the strategies sufficiently defined in order to identify the work activities associated with them? Core Capabilities – What organizational capabilities will be critical for achieving the strategy? What must the organization be able to do well?
Phase II – Organizational Design Develop Business Processes and Activities – What are the processes that must be designed and implemented in order to achieve the strategic objectives? What metrics will be used to measure these activities? Performance Requirements – How will we know we have been successful? How will the organization distinguish itself from competitors? Resource Allocation – What allocation or re-allocation decisions will we need to make to effectively support these activities and processes? Systems and Tools – What systems and tools will be put in place to support the business strategy and to perform critical business activities? Jobs and Structure – What roles will be necessary to carry out the critical business activities? How will the roles be effectively and efficiently organized?
Phase III - Transition Transition – What activities are required to transition to the future state? How will new processes, roles, and systems be implemented? How will people be set up to perform successfully in their new or changed roles? How will you deal with resistance? Some level of Resistance is a natural part of change
So what is Change Management? People Management – Setting individual performance expectations, assessing and selecting, training, redefining compensation and rewards, and supporting individuals so that they may perform effectively Communication – Delivering the right messages, to the right people, at the right times so that they are able to align their work with the strategy Risk and Impact Management – Identifying and managing the risks and impacts associated with the change Leadership and Sponsorship – Engaging leadership to drive change throughout the organization A set of practices and tools that help bring about task alignment
Change Management practices support, but don’t drive Transformational Change
Transformational Change engages every level of the organization
Why Change Management ?
Significant change creates significant disruption Disruption in: rEvEnuE gEnEration Employee Engagement Internal Work Processes SeRvicE to CuSTomeRs
Significant change often causes a Performance “Dip”
What causes the “dip”? Poor Strategy Development Lack of a clear vision or strategy Senior leadership unwilling to take calculated business risks Insufficient ownership and accountability for vision and strategy
What causes the “dip”? Poor Organization Design The wrong people involved in the organization design work Work activities and performance requirements not sufficiently defined to make effective resource allocation decisions possible Technology, process and intellectual capital not utilized to speed processes and take costs out Job roles and structure not designed effectively to support work activities or enable individual success
What causes the “dip”? Poor Transition Management Poor project management and risk planning Lack of rigor in selecting people Employee skill sets do not align with future roles “ Sacred Cows” – not willing to make the tough people calls Employees not properly trained for future role Individual performance expectations not defined or measured Compensation not aligned with role requirements
You can decrease the performance dip
What can you do to decrease the performance dip? Use a structured change management process in each phase of the transformational change
Structured Change Management Actions PHASE 1 - Strategy Development Engage group of leaders in defining the vision Use structured visioning process Conduct stakeholder analysis Define measures of success Develop plan for engaging stakeholders Define specific roles in the change effort Identify who to communication with, about what, and when Develop plan for building the Organization Design
Structured Change Management Actions PHASE 2 - Organization Design Engage critical stakeholders and subject matter experts Use structured, facilitated process to ensure objectivity and to decrease impact of resistance Build strong change network for communication and stakeholder management Share what you know…it’s usually not necessary to wait until it’s fully baked
Structured Change Management Actions Phase 3 – Transition Invest in strong and influential project management Conduct real risk assessment and develop risk plan accordingly Objectively assess current talent against future requirements – both individuals and overall bench strength Engage a selection team that will make the tough calls Identify knowledge and skills required; develop and implement plan for training in new roles and new skills Clearly define and communicate individual performance expectations and measures Align compensation plan with the strategy and critical business activities Measure and reward individuals for performance in new roles
Key Points to Remember A clear and tangible strategy is a must…without it, there’s nothing to transform to Engaging key people will build confidence and enthusiasm for the transformation You’ll have to make some tough calls on people…”laggards” will stall the effort and drive costs up substantially You don’t have to do everything at once…build momentum by starting with something meaningful but manageable Be prepared to provide significant support and direction to employees throughout the transition phase

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Change Management Framework

  • 2. Debunking the Myths Myth: Change is driven by company-wide initiatives such as “corporate culture” programs and training courses. Myth: Change should start with attitudes and behaviors at the individual level. Effective Transformational Change is not brought about by creating programs focused on changing culture, attitudes or behaviors
  • 3. The road to transformational change . . . The first step is to articulate the Strategic Vision. Strategic Vision Implementation: Driving Change through the Organization
  • 4. Beyond the vision It’s about achieving “ task alignment ” Making a vision come to life with clear strategies, initiatives and well-defined work activities Grouping work activities into refined or redefined jobs Putting the right people in those jobs and giving them direction...people only change behavior if their work changes
  • 5. Task alignment requires great discipline Three core phases:
  • 6. Phase 1 – Strategy Development Strategy – What is the future state that you want to achieve? What are the specific, measurable strategies or objectives for the business? Are the strategies sufficiently defined in order to identify the work activities associated with them? Core Capabilities – What organizational capabilities will be critical for achieving the strategy? What must the organization be able to do well?
  • 7. Phase II – Organizational Design Develop Business Processes and Activities – What are the processes that must be designed and implemented in order to achieve the strategic objectives? What metrics will be used to measure these activities? Performance Requirements – How will we know we have been successful? How will the organization distinguish itself from competitors? Resource Allocation – What allocation or re-allocation decisions will we need to make to effectively support these activities and processes? Systems and Tools – What systems and tools will be put in place to support the business strategy and to perform critical business activities? Jobs and Structure – What roles will be necessary to carry out the critical business activities? How will the roles be effectively and efficiently organized?
  • 8. Phase III - Transition Transition – What activities are required to transition to the future state? How will new processes, roles, and systems be implemented? How will people be set up to perform successfully in their new or changed roles? How will you deal with resistance? Some level of Resistance is a natural part of change
  • 9. So what is Change Management? People Management – Setting individual performance expectations, assessing and selecting, training, redefining compensation and rewards, and supporting individuals so that they may perform effectively Communication – Delivering the right messages, to the right people, at the right times so that they are able to align their work with the strategy Risk and Impact Management – Identifying and managing the risks and impacts associated with the change Leadership and Sponsorship – Engaging leadership to drive change throughout the organization A set of practices and tools that help bring about task alignment
  • 10. Change Management practices support, but don’t drive Transformational Change
  • 11. Transformational Change engages every level of the organization
  • 13. Significant change creates significant disruption Disruption in: rEvEnuE gEnEration Employee Engagement Internal Work Processes SeRvicE to CuSTomeRs
  • 14. Significant change often causes a Performance “Dip”
  • 15. What causes the “dip”? Poor Strategy Development Lack of a clear vision or strategy Senior leadership unwilling to take calculated business risks Insufficient ownership and accountability for vision and strategy
  • 16. What causes the “dip”? Poor Organization Design The wrong people involved in the organization design work Work activities and performance requirements not sufficiently defined to make effective resource allocation decisions possible Technology, process and intellectual capital not utilized to speed processes and take costs out Job roles and structure not designed effectively to support work activities or enable individual success
  • 17. What causes the “dip”? Poor Transition Management Poor project management and risk planning Lack of rigor in selecting people Employee skill sets do not align with future roles “ Sacred Cows” – not willing to make the tough people calls Employees not properly trained for future role Individual performance expectations not defined or measured Compensation not aligned with role requirements
  • 18. You can decrease the performance dip
  • 19. What can you do to decrease the performance dip? Use a structured change management process in each phase of the transformational change
  • 20. Structured Change Management Actions PHASE 1 - Strategy Development Engage group of leaders in defining the vision Use structured visioning process Conduct stakeholder analysis Define measures of success Develop plan for engaging stakeholders Define specific roles in the change effort Identify who to communication with, about what, and when Develop plan for building the Organization Design
  • 21. Structured Change Management Actions PHASE 2 - Organization Design Engage critical stakeholders and subject matter experts Use structured, facilitated process to ensure objectivity and to decrease impact of resistance Build strong change network for communication and stakeholder management Share what you know…it’s usually not necessary to wait until it’s fully baked
  • 22. Structured Change Management Actions Phase 3 – Transition Invest in strong and influential project management Conduct real risk assessment and develop risk plan accordingly Objectively assess current talent against future requirements – both individuals and overall bench strength Engage a selection team that will make the tough calls Identify knowledge and skills required; develop and implement plan for training in new roles and new skills Clearly define and communicate individual performance expectations and measures Align compensation plan with the strategy and critical business activities Measure and reward individuals for performance in new roles
  • 23. Key Points to Remember A clear and tangible strategy is a must…without it, there’s nothing to transform to Engaging key people will build confidence and enthusiasm for the transformation You’ll have to make some tough calls on people…”laggards” will stall the effort and drive costs up substantially You don’t have to do everything at once…build momentum by starting with something meaningful but manageable Be prepared to provide significant support and direction to employees throughout the transition phase