Change management – principles and process

Best practice change management principles, process, strategies and tools

1. CHANGE MANAGEMENT – PRINCIPLES AND PROCESS BE A COMPETENT FACILITATOR OF CHANGE IN YOUR ORGANIZATION ROAD ACCIDENT FUND CENTURION CHARLES COTTER 14-17 MARCH 2016

2. Introduction to change management principles and practice Describing the types of change Diagnosis: Identifying and applying the characteristics of change capable organizations Explaining change theories and the change transition cycle Explaining the leadership role and contribution during change Differentiating between Type O and Type D oriented people and the effective management thereof 2-DAY TRAINING PROGRAMME OVERVIEW

3. Applying the Change formula Identifying the reasons for resistance to change Describing the managerial techniques to reduce resistance to change Describing Lewin’s 3-phase Planned approach to change Describing and applying the 7-step organizational change management process Applying Prosci’s Change Management Methodology 2-DAY TRAINING PROGRAMME OVERVIEW

4. INTRODUCTORY LEARNING ACTIVITY Individual activity: Complete the following statement by inserting one word only. In order to effectively manage change in the RAF, I need to/to be……………………………………………… Jot this word down and find other learners who have written down the same word. Write this word down on the flip-chart. Each learner will have the opportunity to explain their choice of word.

5. Change and Change Management The need for change The V-U-C-A nature of the business environment The reasons/forces of change (refer to pages 4-5) The metaphoric views of change First and second order change The areas/types of change DEFINING THE FUNDAMENTALS OF CHANGE

6. THE NEED FOR CHANGE

7. THE NATURE OF THE BUSINESS ENVIRONMENT – V-U-C-A

8. REASONS/FORCES OF CHANGE

9. METAPHORIC VIEWS OF CHANGE CALM WATERS WHITE-WATER RAPIDS

10. First Order change is often referred to as evolutionary or gradual change - usually localized – it impacts on one part of a system without major repercussions to other parts of the system . The organization as a whole remains intact and no overall change of its former state occurs in spite of incremental change to one part of it. Second order change is often referred to as radical or revolutionary change because it impacts on the organization as a whole . FIRST AND SECOND ORDER CHANGE

11. AREAS/TYPES OF CHANGE: S-P-O-T-S

12. Identify examples of both internal and external forces that necessitate your organization to change. How has the RAF responded to these changes? Provide practical examples.   As a manager, how would you view the organizational change – calm waters or white water and/or first or second order change? Substantiate your reasoning.   By referring to the 5 types of change, provide relevant examples of each. Of these types of change, which is the most challenging? Motivate your answer. Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 1

13. The literature on “change management” is clear : over 70% of change initiatives fail . CHANGE MANAGEMENT SUCCESS TRACK RECORD

14. We started with a single question: Why do some changes succeed and others fail? (https :// www.prosci.com/about) The answer: the people side . PROSCI’S VIEW OF CHANGE SUCCESS

15. Unsuccessful means “the goals of change are not achieved or only small parts are achieved.” Refer to the examples (1-5) of failed change management projects (pages 39-41) Refer to the Lessons learnt from these examples (pages 39-40) Good intentions doesn’t equal change success Self protection mechanism Refer to the Pitfalls in a change management project (pages 42-49) CHANGE MANAGEMENT SUCCESS “RECIPE”

16. #1: Linking the present and the future #2: Make learning a way of life (learning organization) #3: Actively supporting and encouraging day-to-day improvements and changes (continuous improvement processes)   #4: Ensuring diverse teams   #5: Encourage out-of-the-box thinking (innovation) CHARACTERISTICS OF CHANGE-CAPABLE/FRIENDLY ORGANIZATIONS

17. #6: Protect and shelter breakthrough ideas (intellectual property) #7: Integrate technology to implement changes   #8: Build and deepen trust (creating an organizational culture of management credibility and integrity)   #9: Streamline and align processes, systems and structures   #10: Leadership have the will and conviction to change CHARACTERISTICS OF CHANGE-CAPABLE/FRIENDLY ORGANIZATIONS

18. Diagnosis: By referring to each of the characteristics of change capable/friendly organizations, measure the degree of the RAF’s readiness to change. Analysis: Identify those areas which need to be improved and recommend strategies to close these gaps. Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 2

19. CHANGE TRANSITION CURVE

20. CHANGE TRANSITION CURVE AND APPROPRIATE LEADERSHIP ACTIONS

21. As a manager, describe how you can accelerate and guide employees through the change transition cycle to the most sophisticated/mature stage i.e. commitment . Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 3

22. The employee does not have a responsibility to manage change . The responsibility lies with management and executives of the organisation . They must manage change in a way that employees can cope with it . The manager has the responsibility to facilitate and enable change. RESPONSIBILITY FOR MANAGING CHANGE

23. “ Leaders should not only administer and manage change , but pioneer, pilot and drive change towards barrier-busting heights of performance improvement .” (Cotter: 2005) Managerial Roles and Actions Change Agents (internal and external) Building resilience and change-hardiness Transformational Leadership Develop Employee engagement strategies Scaling the Hierarchy of Commitment THE ROLE OF LEADERSHIP IN CHANGE MANAGEMENT

24. Provide a future vision for change Leaders should possess diagnostic ability to read, scan and respond to the changing environment in the perpetual quest for business growth and expansion opportunities Be a catalytic driver of change Guide, support and lead people through the change transition cycle Be a change agent Lead by example during change i.e. be a role model/ambassador and advocate for change Be a transformational leader Break down resistance to change To build resilience and change hardiness amongst the workforce CHANGE LEADERSHIP ROLES AND ACTIONS

25. The five attributes of resilience include: Positive (they see life as complex but filled with opportunity) Focused (they have a clear vision of what they want to achieve) Flexible (they demonstrate pliability when responding to uncertainty)   Organized (they develop structured approaches to managing ambiguity)   Proactive (they engage with change rather than defending against it) BUILDING RESILIENCE AND CHANGE HARDINESS

26. CHARACTERISTICS OF TRANSFORMATIONAL LEADERSHIP

27. According to Gallup (2013) research, the best organizations deeply integrate employee engagement into the following four (4) areas : Strategy and Leadership Philosophy Accountability and Performance Communication and Knowledge Management Development and on-going Learning Opportunities BEST PRACTICE EMPLOYEE ENGAGEMENT

28. According to Gallup (2013), strategies to improve employee engagement are: Use the right employee engagement survey Focus on engagement at the enterprise and local levels Select the right people and managers Coach managers and hold them accountable for their employees’ engagement Define engagement goals in realistic, everyday terms Develop employees’ strengths Enhance employees’ well-being Find ways to connect with each employee STRATEGIES TO DEVELOP EMPLOYEE ENGAGEMENT

29. Describe your role and contribution as a change agent. Express your opinion regarding the use of external change agents i.e. do you support or oppose the contracting of external change agents. Substantiate your reasoning. By referring to the characteristics of transformational leaders, describe how you can demonstrate these during times of change.   How you will build resilience and change hardiness amongst the workforce (refer to the characteristics of highly resilient people) How you will develop employee engagement strategies in the RAF. SYNDICATE GROUP LEARNING ACTIVITY 4

30. Rating of 18 - 35: Highly Type O; interprets the world as a multifaceted and overlapping ; maintains a strong purpose or vision that helps during times of change; has a high tolerance for ambiguity; manages many simultaneous tasks and demands successfully; takes risks in spite of potentially negative consequences. Rating of 36 - 53: Moderately Type O; predominately views disruptions as a natural result of the changing world, but sometimes needs a long recovery time after adversity or disappointment; exhibits patience, understanding, and humour when dealing with change; fails to ask for assistance from others when it is needed .   Rating of 54 - 71: Moderately Type D; believes there are usually lessons to be learned from challenges, but lacks an overriding purpose and the ability to stay focused; questions and modifies (when necessary) his/her own assumptions or frames of reference; becomes confused when faced with confusing information.   Rating of 72 - 90: Highly Type D; expects the future to be orderly and predictable and sees major change as uncomfortable and something to avoid; feels victimized during change and fails to break from established way of seeing/doing things INTERPRETATION – TYPE O AND D

31. Individually : Complete the Type O vs. D-oriented questionnaire . Group: As a manager, describe how you will manage your staff with both a Type O and Type D orientation towards change. Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 5

32. Why people resist change? Why it is so challenging to reduce resistance to change? Managerial techniques to reduce resistance to change MANAGING RESISTANCE TO CHANGE

33. RESISTANCE TO CHANGE – “COMFORT ZONE”

34. Uncertainty ( i.e . fear of the unknown ) People’s self-interest is threatened   A lack of trust and misunderstanding Belief that change is incompatible with the goals and the interest of the organization A low tolerance for change is also a barrier to organizational change Other general reasons (e.g. include inertia where people do not want to change the status quo, poor timing, and unexpected, extreme or sudden change and peer pressure) WHY PEOPLE RESIST CHANGE?

35. People and their behaviour is the most difficult to change because unlike structure and technology, in which managers have absolute control, managers do not have absolute control over peoples’ thinking, attitudes and perceptions . “Unlike technology, structure, processes and strategy, people talk back when confronted by uncomfortable levels of change.” (Cotter: 2014) People are the greatest source of resistance to change because people have minds of their own i.e. they have personalized and subjective views regarding change. Change must involve the people - change must not be imposed upon the people WHY IT IS SO CHALLENGING TO REDUCE RESISTANCE TO CHANGE?

36. In the RAF work environment, identify the five (5) foremost reasons why employees resist change. For each of these 5 reasons, describe the ways and means that you as a manager can use to break down these “walls of resistance”. Provide practical examples. Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 6

37. MANAGERIAL TECHNIQUES TO REDUCE RESISTANCE TO CHANGE

38. By referring to each of the 6 techniques to manage employee resistance to change, describe how you as a manager can apply these techniques in the RAF working environment. Provide practical examples. Also indicate at which stage of the change process, each of these techniques is most appropriate. Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 7

39. At all times involve and agree support from people within system (e.g. the environment, processes, culture, relationships, behaviours - whether personal or organizational) Understand where you/the organization is at the moment (status quo) Understand where you want to be, when, why, and what the measures will be for having got there Plan development towards above in appropriate achievable measurable stages Communicate, involve, enable and facilitate involvement from people, as early and openly and as fully as is possible. BEST PRACTICE CHANGE MANAGEMENT PRINCIPLES

40. Refer to pages 35-39 in the Study Guide By reviewing the Advantages and Disadvantages of the five change management strategies (figure 6 – page 38), indicate which strategy is most appropriate for the various change management initiative and interventions at the RAF. Justify your response. Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 8

41. LEWIN’S 3-PHASE MODEL OF CHANGE

42. MCKINSEY 7-S MODEL (OF ORGANIZATIONAL EFFECTIVENESS)

43. KOTTER’S CHANGE MANAGEMENT PROCESS

44. STEP 1: Forces for change (internal and environmental forces) which affect: STEP 2: Performance outcomes (individual, group and organizational) which encourages   STEP 3: Diagnosis of the problem (information, participation and change agent) which leads to   STEP 4: Selection of appropriate intervention (structural, behavioural and technological) as constrained by S-P-O-T-S STEP 5: Limiting conditions (leadership climate, formal organization structure and organization culture)   STEP 6: Selection and I mplementation of the method (timing, scope and experimentation) provision for   STEP 7: Evaluation of the method (feedback, adjustment, revision, reinforcement) APPLYING THE 7-STEP, ORGANIZATIONAL STRATEGIC CHANGE MANAGEMENT PROCESS

45. Step one of the strategic change management process starts with an assessment of the organization’s Mission and Vision, challenges (pains), enablers and values . The following strategically-relevant items form the scope to be scrutinized by business managers: The company's mission statement   The company's strategic plan/vision   The financial status of the organization  How the organization is currently structured and operating  The level of expertise of their employees  Customer satisfaction level Tools: SWOT Analysis PESTEL Analysis STEP 1: FORCES FOR CHANGE - INTERNAL AND EXTERNAL STRATEGIC ASSESSMENT

46. STEP 5: LIMITING CONDITIONS - FORCE FIELD ANALYSIS

47. By referring to the 7-step organizational change management process, apply each of the steps in the RAF working environment. Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 9

48. Point 1: Change management requires both an individual and an organisational perspective. Point 2: A-D-K-A-R (awareness, desire, knowledge, ability and reinforcement) presents an easy-to-use model for individual change. Point 3: The 3-phase process gives structure to the steps project teams should take. HIGH-LEVEL OVERVIEW OF PROSCI’S METHODOLOGY

49. A-D-K-A-R

50. PROSCI’S CHANGE MANAGEMENT METHODOLOGY

51. Evaluate the merits and application and utility value of Prosci’s Change Management methodology to the RAF. Is there a viable, feasible and sustainable business case for it’s implementation value at RAF. Justify your response. Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 10

52. Summary of the key learning points Questions Conclusion Good luck with the implementation of change management processes, systems and tools in the RAF. CONCLUSION

53. CONTACT DETAILS Charles Cotter ([phone] [email protected] LinkedIn Twitter: Charles_Cotter http:// www.slideshare.net/CharlesCotter