ORGANIZATION MANAGEMENT Change Management By Engr Attaullah Shah

ORGANIZATION MANAGEMENT Change Management By; Engr, Attaullah Shah BSc Engg ( Gold Medlaist), MSc Engg ( Strs), MBA, MA ( Eco) MSc Envir Design, PGD Computer Sc, Ph. D Scholar UET Taxila Engr. Attaullah Shah, Project Director AIOU-Islamabad.

n SOME QUOTATIONS n God doesn't Change the Nation unless they have the will to change themselves- Holy Quran n He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery. ~Harold Wilson. n Carl Rogers said: The curious paradox is that when I accept myself just as I am, then I can change. n Change is the law of life. And those who look only to the past or present are certain to miss the future. John F. Kennedy n We must all obey the great law of change. It is the most powerful law of nature. Edmund Burke. n It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Charles Darwin.

n Nature gives to every time and season some beauties of its own; and from morning to night, as from the cradle to the grave, it is but a succession of changes so gentle and easy that we can scarcely mark their progress. Charles Dickens. n You must be the change you wish to see in the world. Mahatma Gandhi. n To improve is to change; to be perfect is to change often. Winston Churchill n People can cry much easier than they can change. James Baldwin n To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly Henri Bergson n When you‘ve finished changing, you're finished. Benjamin Franklin

What is Change? Change is the process of moving from one state (current state) to another (future state) Current State Future State Transition

Changing Workplace n n n n n Globalization: Borderless world Technology: Catalyst to change. Merger & Acquisition: Increase market share & profits Workplace diversity: Virtual organizations Organizational Structure: Focused on value addition. Work-life balance: More priority of personal life. High rate of Change: Cannot be ignored. Increased competition: Never Ending Increased Ethical and Social responsibility:

Determination of what should be changed? n Giegold and Craig: Organizational effectiveness is result of the activities centering around three main classes: ¨ People Factors: Attitudes, Leadership skills, communicating skills, negotiating and other human skills. Structural factors: Policies and procedures. ¨ Technological factors: Equipment, processes. ¨ n To check which changes will improve the organizational effectiveness, two diagnosis; Internal organizational diagnosis ( Strength and Weakness) ¨ External Environmental diagnosis ( Opportunities and Threats) ¨ Also called SWOT Analysis. ¨

Change – Facts & Dynamics of Change Facts about Change People. . . l Change is inevitable l l Change is uncomfortable l l Change is disruptive l The complexity of change has increased feel awkward, self-conscious think first about what they have to give up l feel alone l can only handle so much l l are at different levels of readiness revert to the old as soon as the pressure is off

How Does Change Take Place? External Forces Internal Transition Economic n Social n Organizational n Environmental n Legal n n Current State Psychological process to shift behavior n Let go of the old and embrace the new n Occurs at your own pace n Internal transitions must occur before change is fully realized Future State Transition

The Cycle of Transition Denial Inform, Communicate and Motivate Commitment teamwork satisfaction clear focus and plan cooperation balance clear vision of the future it will be over soon this won’t happen apathy numbness minimize the change ignore Resistance Listen, Share and Understand Reward and Motivate Exploration sense of loss of control concerned with competency future contribution unclear lack of focus or direction can’t sleep at night anger/fights withdrawal from the team blaming ZIGZAG seeing possibilities exploring alternatives feeling “ I can make it” high creativity and energy too many new ideas lack of focus indecisiveness have too much to do start “being” in the future Facilitate, Problem Solve and Motivate Adapted from Managing Change at Work by Cynthia Scott and Dennis Jaffe

Strategies for Managing Reactions to Change Denial: Gain Power Through Information • Gather information from reliable sources. • Avoid getting caught up in rumors and speculation. Discuss rumors openly with your manager and verify facts. • Allow yourself time to internalize and reflect on how you feel about the change. Don’t be swept away by other’s emotion. • Avoid staying stuck in this stage. It can be draining and defeating. Resistance: Stop Spinning Your Wheels Commitment: Keep the Momentum • Continue to find new solutions to the new situation. • Revisit and refine your goals. • Continue to rally people around the change. • Avoid complacency by assuming a new status quo. • Continue to expand your skills and knowledge. • Break out of your comfort zone by taking on new assignments and challenges. Exploration: Venture into Uncharted Territory • Accept that this is a period of emotional turmoil and that you may experience feelings of anger, hurt, disappointment, depression, betrayal and loss. • Continue to suggest ideas and think unconventionally. • Seek emotional support from trusted friends, family, peers and managers. • Focus on changes that can be made to work rather than listing all the things that can go wrong. • Avoid self-defeating behavior such as acting like a victim, developing a bad attitude, and rallying others to fight the change. • Focus on priorities and set short term goals for yourself. • Avoid staying stuck in this stage: A prolonged negative attitude can earn you a poor reputation and undo a lot of your good work. • Acquire new skills and knowledge.

Shifting Behaviors… To have people consistently behave in a new way, three conditions must be met the person must • be aware of what the new desired behavior is; • have the skills to perform the desired behavior successfully • be motivated to change his/her old behavior

Managing Organizational Change a disciplined approach to help organizations manage transition

Guiding Principles of MOC ¨ People are our only sustainable competitive advantage - they are the intellectual capital of the organization. ¨ Those who are closest to the work have the best information about what is needed to do it most effectively. ¨ People tend to support more readily what they help to create. ¨ People need to understand the context of the change. Understanding is found through dialogue. ¨ To build a sustainable change, people must experience some personal results.

MOC Areas of Focus Knowledge Transfer Communication Knowledge capture and transfer to benefit project and others Minimizing thrash to the organization Sponsorship Alignment Stakeholder Analysis Maintain Sponsor Alignment and Commitment Identifying those impacted or influenced by the project Team Effectiveness Change Impact & Organizational Readiness Assessment Identifying impacts of the change and monitoring organizational readiness Assessing team dynamics and assisting the project manager Training strategy & delivery

Creating Your Business Case The purpose of a business case for change: n Communication Minimizing thrash to the organization To influence alignment around project objectives, deliverables, and metrics Business case should articulate: n n n n The objectives of the project The intended outcomes and benefits Specific deliverables (including specific results) The driving forces The costs (fixed, short term, long term) and ROI The timeline and expected delivery date The constraints, risks, and challenges The proposed project structure – who is leading, who is participating

Creating Your Business Case Communication Critical Success Factors: Minimizing thrash to the organization n Gain alignment and agreement between sponsors and key stakeholders. n Created to be used in future communications to end users n Consider this a decision checkpoint: should we proceed with this investment or not? n Lack of alignment indicates the need for continued refinement of the business case or a halt to the project.

Stakeholder Analysis The purpose of the stakeholder analysis: n n Stakeholder Analysis Identifying those impacted or influenced by the project To specifically identify all members of the community that will be directly or indirectly impacted by the project To assess the ‘reach’ or magnitude of the project Creating a stakeholder analysis: n List all groups and individuals you expect to be impacted n Useful to include the following attributes initially: ¨ ¨ ¨ Group name / individual name Manager name Classification (sponsor, focus/target, change agent) Directly or indirectly impacted Impact Assessment (high, medium, low) Key interests or expectations

Stakeholder Analysis – 2 Stakeholder Analysis Identifying those impacted or influenced by the project n Do early and update often. n Utilize this information throughout the project – communication planning, focus groups, training assessments, and identification of risk areas n Avoid the temptation to create multiple lists. Make use of this as the master list and design to future intentions. n Use for assessments of needs, expectations, and success factors for key stakeholders by conducting interview sessions.

Communication Minimizing thrash to the organization The purpose of communication planning: n To identify objectives and messages for key communications ‘moments’ within a project n To provide discipline around reviewing your communication strategy n To provide a process to follow for creating messages. It can take 7 -11 times for us to hear a message before we internalize…

Communication – 2 The communication planning process: Communication Minimizing thrash to the organization START Determine key messages and communication objectives From stakeholder analysis Get feedback and analyze effectiveness Determine audience Communication Process Determine our desired outcomes Deliver the communication Determine communication vehicles, owners, and timing What would be observable?

Sponsorship Alignment The purpose of sponsorship alignment: n n Sponsorship Alignment Maintain Sponsor Alignment and Commitment To help build the partnership between the project and the sponsors To set expectations about what the sponsors will be asked to do to support the MOC activities of the project. Sponsorship alignment includes: n n n n Specify sponsor roles and expectations Validate adequate sponsor representation Determine engagement model (expectations for future meetings and checkpoints) Periodic sponsorship assessments Determining escalation model Clearly stating accountability Establishing effective relationships with sponsors – keeping in touch

Sponsorship Alignment - 2 Sponsorship Alignment Maintain Sponsor Alignment and Commitment Sponsor Roles & Responsibilities: n Maintaining program priority n Championing the program through personal actions and EXECUTIVE SPONSORS conversations to peers and own organization n Resolves conflicts over policies or objectives n Providing political influence at high levels n Acts as an escalation board for unresolved issues or cross-functional decisions n Approving scope changes to site project plans n Removing roadblocks and supporting key project decisions n Creating the cultural shifts necessary to realize the business results and benefits. Note: There may be different levels of sponsorship needed throughout the life of the project

Training The purpose of training strategy/planning: n n To identify the educational needs required to update or alter the skills needed by the directly impacted audience To effectively deliver the training required Training strategy/plan should articulate: n A holistic picture of the education required to shift to future state Training goals and objectives Audience analysis Training needs analysis Delivery approach Cost proposals n Use the stakeholder analysis for needs assessment n n n Training strategy & delivery

Training Strategy/Plan Training strategy & delivery n Audience analysis is key to training success n Critical to understand what is the same and what is different to create that bridge between the familiar and the unknown n Critical to accommodate multiple learning styles in training design n Ensure your business community reviews and sponsors your strategy and delivery plan n Hardest work is in the logistics

Change Impact and Organizational Readiness Change Impact & Organizational Readiness Assessment Identifying impacts of the change and monitoring organizational readiness The purpose of these activities: n To assess the magnitude of the change to the organization n To assess or assist on assessing organizational readiness for go/no go decision checkpoints Change impact should articulate: n What will stay the same n What will be different n What community is impacted how

Change Impact and Organizational Readiness Change Impact & Organizational Readiness Assessment Identifying impacts of the change and monitoring organizational readiness Sample Change Impact: Current State Process Step Future State Process Step Who does this today? What systems are Other processes used? impacted? Engineer Designer RA 400 Who will do this? What systems will be used? Procurement New System Supplier Notification Are there differences? Yes or No Yes What are the key differences? What is the impact of this change? Transitioning to Procurement Need training for procurement - need to assess readiness to transition

Knowledge Transfer The purpose of knowledge transfer: n n n Knowledge Transfer Knowledge capture and transfer to benefit project and others To identify your strategy for leveraging team knowledge To articulate tactical steps in knowledge capture, sharing, and transfer To identify trends in learning within the organization Knowledge Transfer strategy should articulate: n n n Recommendations for sharing key learnings from past projects Recommendations for conducting retrospectives at end of each project phase Process for communicating and sharing key learnings Project’s strategy for sharing knowledge and assessing learning skills Process for analyzing trends Process for storing and retrieving key learnings

Knowledge Transfer – 2 Knowledge Transfer Knowledge capture and transfer to benefit project and others n Ensure knowledge transfer activities are captured as part of the project schedule n Understand your intent for capturing knowledge – how will it be used n Identify ‘in the moment’ opportunities to ask “are we getting the results we want and if not, what do we want to do about that? ” n Developing a psychologically safe environment where learnings are valued

Team Effectiveness The purpose of team effectiveness: Team Effectiveness n To purposefully attend to team effectiveness on behalf of relationships and quality of deliverables n To assess team processes in decision making, problem solving, and communication n To partner with project manager and team members Assessing team dynamics and effectiveness

Team Effectiveness – 2 Teams are most effective when: n n n n n Commitment to a common purpose Clearly articulated goals Roles are understood and aligned Processes for decision making are clear Team is able to self-learn about their own effectiveness Mutual accountability for success Ability to share leadership Ability to collaborate Team is able to observe and respond to group norms Team Effectiveness Assessing team dynamics and effectiveness QUESTION: ARE WE GETTING THE RESULTS WE WANT? IF NOT, WHAT DO WE DO ABOUT IT?

Why is it important to focus on Organizational Change? n Today is a world of complex and frequent change n Cultural and behavioral factors are the essence of organizational change n Supports consistent leadership and communication practices

Barriers to Success for Organizational Change Deloitte & Touche Survey of CIO's regarding Business Transformation: Top 10 Barriers to Success Resistance To Change 82% Inadequate Sponsorship 72% Unrealistic Expectations 65% Poor Project Management Case For Change Not Compelling 46% Scope Expansion / Uncertainty Directly Relates to Managing Organizational Change Project Team Lacked Skills No Change Management Program Not Horizontal Process View IT Perspective Not Integrated 0% 10% 20% 30% 40% 50% % of Firms 60% 70% 80% 90%