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The Ultimate Change Management Guide

Change Management Plan

In the CIOPages.com ultimate change management guide to organizational transformation, we will dive deep into various facets of how companies need to handle the human dynamics during large enterprise change programs.

Because over 70% of large-scale transformation programs fail, it is essential to focus on managing the organizations through the massive change as post-transformation adoption and evolution are one of the biggest obstacles.

BTW, this article is NOT about “Change Control Process” which is a project management technique on how to account for the shift in business needs and cater to new requirements during a software development lifecycle (SDLC).

For an organization to thrive, change is not only unavoidable, but it is also essential. Firms that don’t change often become moribund and become a part of the ash heap of failed ventures that did not transform with the times.

Changes to technology, job roles, conventional processes, and organizational structures address central problems, improve performance, and advance opportunities for growth.

Top-down initiatives for change that are imposed on an organization instead of carefully facilitated through effective change management rarely achieve the intended outcomes. Primarily, this is because it is the employees who will inevitably need to change how they work for the expected changes to be realized.

Change management should be an integral part of significant enterprise transformations – Digital transformation, HR transformation, CRM transformation, Supply Chain Transformation, Marketing Transformation, Finance Transformation, Business Intelligence Transformation and the like.

Effective change management provides the framework for mindset, cultural, and process change and puts the focuses on the people who make up your organization.

Topic Outline of the Ultimate Change Management Guide:

Let’s dive deep into various aspects of change management and the guide is made up of several sections dealing with a specific point. While it may be beneficial to get a comprehensive overview, please feel free to jump to any of the chapters.

What is Change Management?

The Society for Human Resource Management (SHRM) defines change management as “the systematic approach and application of knowledge, tools, and resources to deal with change.” According to the Harvard Business Review, “The goal [of change management] has been to cope with a new, more challenging market by changing the way business is conducted.” Prosci puts it this way: “Change management is the process, tools, and techniques to manage the people side of change to achieve the required business outcome.”

CIOPages.come has its definition of change management including a compilation from third parties.

The Importance of Change Management

“If you do not like change, you will like irrelevance even less.”

            – General Eric Shinseki, U.S. Army

It may be tempting for leaders to assume that as long as they have the best project management and the most elegant technical solutions, any new project and initiative can be rolled and achieve success. However, when such a seemingly perfect plan fails, the explanation can be complicated to discern from a leadership position. Why would a surefire project fail when another similarly executed project achieve success?

Effective change management provides the framework for mindset, cultural, and process change and puts the focuses on the people who make up your organization.

In most situations, the cause of failure is a lack of focus on the people who will be most affected by the changes being implemented. Any significant change initiative will intensely impact how each within your organization performs their work. Leaders know this. According to Strategy&, “Fifty-nine percent of supervising executives agree with the statement: ‘A successful transformation is due more to the ”people” initiatives than to other elements of the program.’ ” An attempted transformation that lacks careful consideration of the people will either fail outright or achieve only truncated success.

Change management addresses this problem directly and creates effective management of change for every level of an organization. Still, however, utilizing effective change management to facilitate change remains an afterthought for many organization leaders. Moreover, even when a company adopts a change management model, it is often under-budgeted and not entirely followed through.

An adequately budgeted change management model that is entirely carried out within the framework of your organization’s intended transformation is the key to change success.

A few key reasons why change management is so important:

According to Prosci, when excellent change management is used with change initiatives, they are six times more likely to succeed and achieve the desired objectives.

Content employees who feel integral to the organization they work for are an invaluable asset, and treating them with respect and support during a massive organizational change is essential. Change management puts the focus on these individuals and facilitates their transformations as they relate to your change project.

It is not uncommon for transformations to meet intended requirements but still not deliver the desired results. Change management avoids this conundrum by helping organizations focus on achieving the benefits of the solution instead of just focusing on the solution process.

If a change initiative in your organization does not have the proper framework for success, it is more likely to fail. Therefore, setting up a change without the use of active change management creates a grave risk for your business’ future. It also inevitably avoids the need to rework, redesign, revisit, and rescope your project.

Still, however, utilizing effective change management to facilitate change remains an afterthought for many organization leaders. Moreover, even when a change management model is implemented, it is often under-budgeted and not completely followed through.

Change Management Models

Organizations choose one of the many change management models available. Each change model has its approach to change and may benefit certain types of organizations over others, based on their unique attitudes toward training and operation or their specific work structure model.

ADKAR stands for the five outcomes that are necessary for successful change within the model:

Awareness

Desire

Knowledge

Ability

Reinforcement

The goal-oriented format of the ADKAR model achieves results by allowing teams and leaders to look at change on the individual level and steer things from this juncture. The model was a creation of Jeff Hiatt.

Dr. Kotter, leadership and change management expert, created the Kotter model, which involves eight steps — all of which combat what Kotter himself saw as the 8 leading reasons why organizations were frustrated in their efforts to change. The eight changes are as follows:

  1. Establish a sense of urgency for change.
  2. Form a powerful coalition.
  3. Create a vision for change.
  4. Communicate the vision.
  5. Remove the obstacles.
  6. Create short-term wins.
  7. Build on the change.
  8. Anchor the changes in corporate culture. 

As opposed to “managing” change, Kotter promoted leading it — and put the weight of the load on top-tier management. Their support and fostering of the eight steps of change will ultimately be what effects the change and makes it successful.

Lewin’s Model is widespread and relatively simple to implement. Eventually, it breaks a substantial transformation change into easy bite-size steps. These three steps are: unfreeze, change, and rephrase.

Mainly, the unfreeze stage takes apart (or “unfreezes”) the entirety of an organization to analyze and look for potential improvements, and the latter two steps both target and implement the necessary changes needed to improve the current situation of the company. Kurt Lewin, a German-American psychologist, created this model.

CIOPages.com Change Management Framework

CIOPages.com Change Management Framework is a simple and yet a comprehensive metamodel that will allow an enterprise to plan and execute a change effort during a transformation endeavor.  CIOPages.com Change Management Framework is meant as a lightweight and modular set of activities for transformations in the digital age, where agility, transparency, and cohesiveness counts.

People can’t live with change if there’s not a changeless core inside them. The key to the ability to change is a changeless sense of who you are, what you are about and what you value.” –Stephen Covey

You are welcome to customize the CIOPages.com Change Management Framework and adapt to your enterprise needs.

The CIO Pages Change Management Framework reflects the realities of Change Management in the digital age. Today, more than ever there is a need to change fast, and change constantly, and change continuously.

Overview of the CIOPages.com Change Management Framework:

It consists of four phases and 16 main steps, plus an ongoing step to review and apply any data and discoveries to incorporate feedback and refine the approach.

The CIO Pages Change Management Framework reflects the realities of Change Management in the digital age. Today, more than ever there is a need to change fast, and change constantly, and change continuously.

The change management framework includes four broad phases and 14 steps.

Of course, you can take elements of the CIOPages Change Framework and combine it with another popular framework like ADKAR or Kotter.

If you purchase the CIOPages.com Change Management Plan, you will get not only the framework but also detailed descriptions each of the 16-steps, but also a sample plan.

 

Change Management Best Practices 

To efficiently handle changing market conditions, shifting technologies, fluctuating customer demands, and new competition, businesses must learn to adapt, or they risk closing their doors. An effective change management plan should incorporate the following best practices and change management principles as a result:

  1. Understand that change has to organize at the top…

When a transformation is imminent, the direction, strength, and motivation for the change will need to come from leadership positions. It is important that CEOs and executive leaders act the part as well. Preaching a change but not taking part will not position other employees for success.

  1. … and mobilize at the bottom.

Real change occurs at the bottom. It must be engaged by leaders at every level of the organization. Often, this means encouraging and creating new leaders at the lower layers of the company — those who will help other employees at their respective levels establish ownership of the new changes.

  1. Make “over-communication” the norm.

An essential element of any significant transformation is ensuring that everyone knows the plan. However, those most involved will often assume that by osmosis, all other levels share their knowledge set automatically. As this is never the case, one essential element of change management is over-communication — reiterating the same, consistent and agreed up, easy-to-digest transformation procedure again and again until it sticks.

  1. Demonstrate faith and create a vision.

Individuals may not initially grasp or be enthusiastic about impending change. However, when top leadership embodies the faith needed for any significant transformation to occur and creates a clear vision for what is to come, this will cascade down the ranks and permeate all levels to act.

  1. Emphasize ownership of the change.

Creating ownership of change often starts by allowing input at all levels. Involving everyone in the problem-identifying and the solution-creating process is essential to a successful transition. It is also vital to ensure that the why of change is emphasized and reinforced because quality change will doubtless bring positive results for all involved.

  1. Prepare for change within change.

In other words, prepare for the unexpected to occur. Planning is essential in this process, but even the best-laid plans can go awry. Expecting and preparing for change can help you work as a team through snags and find the motivation to persist through resistance.

When a transformation is imminent, the direction, strength, and motivation for the change will need to come from leadership positions. It is important that CEOs and executive leaders act the part as well. Preaching a change but not taking part will not position other employees for success.

Key Steps in the Change Management Process

“Your success in life is not based on your ability to change simply. It is based on your ability to change faster than your competition, customers, and business.” 

            – Mark Sanborn

Each change management methodology is different; however, most all methods include these necessary steps:

  1. Decide what change(s) need to occur.

The natural first step to any transformation is identifying the problem(s). While not all issues need to be solved at once, but recognizing all difficulties first and finding the most effective changes for as many items as possible will eliminate the need for excessive or repeat change in the future.

  1. Prepare for change at all levels and develop a communication plan.

Understand who will be affected by the decided upon changes and how. Create a communication plan for effective dissemination and training of these changes, remembering to over-communicate whenever necessary so that everyone understands the process.

  1. Implement change management training at all levels.

After training is carried out at the management level, employee level training should begin. Most transformations work in layers down the ranks, with the leaders from each level of management teaching their staff what they have learned in practice.

  1. Manage resistance.

What resistance can you expect from this project? Not everyone will be motivated to implement the changes you have planned, but foreseeing threats to the project and reasons why employees and staff may oppose your planned changes can thwart the problems before they start.

  1. Review the change.

Finally, gather feedback from everyone involved and review how successful the changes are over time. When you see successes, celebrate them. Where there is a failure, reassess what exactly went wrong, attempt to correct if possible, and plan for adjustment down the line.

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Change Management Strategies

Change is hard, and hence to succeed any enterprise transformation needs top-notch change management strategies.

The following are some of the critical change management strategies and alternatives which leaders in charge of transformation programs need to take into consideration and make go forward decisions.

Death is very likely the single best invention of Life. It is Life’s change agent. It clears out the old to make way for the new.

Steve Jobs

Change Management Strategies and Alternatives:

Revolution or Evolution:  Sometimes change can be an ongoing process – the so-called Kaizen to continuously iterate and improve. While at other times, a shakeup and a shakeout may be necessary to get a moribund company unstuck from the muck.  It depends on what is the importance of the said transformation and whether it involves more than just a tweak or whether it is a fundamental shift in the way things are thought and done.  A good rule of thumb is to follow the principles of evolution for 75-80% of the change efforts, whereas 20-25% of the time, it may be a strategic imperative to adopt a revolutionary change management approach.

Top-down Mandate or Bottom-up Consensus: In general top-down mandates don’t work well. It is always a good idea to have ideas percolate from the rank and file and spread across the organization. But when there is a fire or a tectonic shift in the business landscape, it is imperative for the top leadership of the company to institute changes with a top-down approach.  Of course, this is not about issuing a fiat and waiting on the sidelines.  The top-down mandate should be followed by a well-thought-out strategy, a prudent plan, and modeling of behaviors by the top brass.

Change Culture or Adapt to the Culture: Often, things that go counter to the culture will fail. It is a best practice to institute changes that are within the cultural norms and social mores of an organization. But if the culture itself is an impediment, then a change in culture should precede the transformation change program. Uprooting the culture and instituting a new culture itself is a massive change challenge and requires a robust change management approach and plan.

A good rule of thumb is to follow the principles of evolution for 75-80% of the change efforts, whereas 20-25% of the time, it may be a strategic imperative to adopt a revolutionary change management approach.

Crush the Resistance or Let it Linger: For those of us who still remember our physics, Newton’s third law states, “For every action, there is an equal and opposite reaction.” Similarly, in most organizations, there is resistance and opposition to any change effort. From attitudes like “It will never work,” “Not in my division,” “Not until pigs fly,” and “I’ve seen things like this come and go” stems the resistance. How does the change management leadership deal with the resistance and opposition? Is nipping the resistance in the bud the right option? Or should the leadership allow the corporate equivalent of “free speech” and let it linger and make converts of them in the long run? As usual, there is no right answer. It depends on three aspects – the criticality of the change initiative, the nature of the resistance (whether it is principled and reasoned resistance or intentional sabotage), and the influence of the teams who are resisting.  Often, a prudent middle way is to giving the opposition a reasonable time and space, and when it starts to become an obstacle using aggressive measures to put out the fires.

Change as an Integral Process or a Standalone Initiative:  Some companies are exceptional in being in an ever-changing mode.  If that is the case, change is something that is business as usual.  However, in most other large firms, change management is an aftermath of a significant transformation. Even in this case, results will be better if companies incorporate change management as an integral part of the transformation.

Proactive Change or Reactive Change: Should the company leadership wait until there is a need for transformation and consequent change? Or should the leadership anticipate the mega shifts and be proactive?  While the latter may sound great in theory, but corporations are deeply entrenched in running the current business operations and often do not see the trends that will have impact the very survival.  History is replete with industry sectors and companies not realizing the magnitude of the impact of the new wave of technologies and other mega shifts. Even if a proactive change is not always possible, recognizing it before it is too late, and acting firmly is an essential corporate leadership trait.

Irrespective of which change management strategies or alternatives are relevant and essential in a particular situation, it is crucial to develop an integrated and holistic change management plan with strong buy-in.

Key Components of Change Management

Drawing from decades of research and trial and error, Prosci recommends these critical components for any change management plan:

Once a change or set of changes has been agreed upon, decide how ready the organization is to begin. What challenges will you face? How big of a change will this be and who will be affected?

CEOs and other company leaders will play critical roles. Ensure that their desire to participate is in place, but also ensure that they are prepared with their own roadmap for action and participation.

By using a structured change management methodology, you will see marked success in your transformation. Proven methods facilitate an “all-in” dedication to the change project and create a structure that cannot be found with a lax approach.

Starting with a proven methodology is critical; however, every institution requires modifications to their plan. This customization is essential in making sure that changes occur on the organization’s terms and that all staff members and leaders can see that this is not a one-size-fits-all transformation.

Communication planning is a central issue that must continually be addressed throughout the change process. The dissemination of information and explanation of the methodology and unique plan aspects has to have a structure.

All levels of an organization must be adequately trained based on the behavior, knowledge, and skill that the changes will require.

Once a change transformation has occurred, assembling feedback from those involved and creating an overview of the successes and failures is essential. Where problems arise, if corrective action is possible, action should be taken.

Change Management in the Digital Age

The digital age has brought about numerous changes in all types of organizations. From government institutions to multi-billion dollar companies to start-ups and mom and pops, there’s no moving forward without the right technology.

Like any discipline, change management has not been untouched by the evolution of technology. Not only is the format of change management models changing, but how often they change due to technology and demographics is increasing.

Key Tenets and Differences in Change Management in the Digital Age:

Historically…

 

In the Digital Age 

Change was top-down and driven by management. Change is driven by all levels of an organization, with support from the bottom-up.
The pace of change was slow and deliberate. The pace of change is rapid and constant.
Change activities occurred linearly. Change activities can be done in parallel.
Change programs often take an extended period. Change programs are often rapid with a focus on quick experimentation.
Changes are often fully executed before testing for organizational fit. Changes are continuously tested, with failures quickly abandoned and/or tweaked.
Training is done from the top-down, with focus on classroom learning. Training is done on many levels, including peer-to-peer and web-based learning.

Historical, linear Change Management frameworks do not match the demands of business in the digital age. Next-generation Change Management must follow some new rules:

Reacting to External Digital Change

Technology is no longer a single department in your organization. It is a pervasive aspect of the industry, integral to all units and management levels. However, as the digital world continues to reinvent itself, it can be difficult for organizations to keep up.

It is up to leadership and human resources departments to discern which new technological approaches should be adopted and how. When a digital transformation is ultimately decided upon, even more, challenges may face those who are leading the change management of the transformation:

Specific industries and individual organizations will not survive the era of the digitization rush. However, not all “recommended” digital changes should be implemented without thorough consideration.

Keeping up with external digital trends is where to begin, but organizations must also be discerning about which changes to broach. To do these, essential leadership skills must be present in the deciding leadership:

From fine technology tweaks to substantial platform overhauls, all digital changes must be facilitated with a robust change management model to achieve the desired outcomes. Without change management, an organization may go through the motions of digital transition, but the actual benefits of these changes may never be realized.

Like any discipline, change management has not been untouched by the evolution of technology. Not only is the format of change management models changing, but how often changes are prompted because of the evolution of technology is also changing.

Change Management Road Blocks and Barriers:

The most prominent change management roadblocks are not necessarily about the frameworks, plans, and procedures but the mindset of people, the prevalent psyche, and popular folklore. Deep-rooted objections are the most significant impediment to change management.

To address and mitigate the change management roadblocks, it is essential to know what are the typical objections, and obstacles that typically come up whenever there are transformation initiatives and associated change management challenges.

People don’t resist change. They resist being changed!” –Peter Senge

Change Management Roadblocks List:

  1. We are doing quite well. Our stock price is up. Why bother changing?
  2. Oh, wow! That’s what you are planning. Only when pigs fly!
  3. We do things differently around here!
  4. That will never work here. Not as long as I have a say.
  5. Let’s get together in six months. You will agree that it will not work.
  6. That’s too ambitious. We are biting more than we can chew.
  7. Our plate is too full. We can’t handle any other initiatives.
  8. Company XYZ tried and failed. Why do we think we will succeed?
  9. It such an invasive surgery, we may end up with the operation being successful and yet patient dying.
  10. That group will not like it. They will derail it.

    The most prominent change management roadblocks are not necessarily about the frameworks, plans, and procedures but the mindset of people, the prevalent psyche, and popular folklore. Deep-rooted objections are the most significant impediment to change management. 

  11. I don’t think there is a compelling business case.
  12. This shiny new thing has no prospects. It will fail and everyone who adopted it.
  13. Should we call in some consultants?
  14. Do we need to do it now? How about next fiscal year?
  15. The leadership talks the talk but does not walk the walk.
  16. Just wait out the upstarts. Once they wither away, we can continue to rule.
  17. Well, Sir (or Madam), your predecessors tried it and failed. And failed. Would you want another failure under your reign?
  18. A disproportionate burden always falls on our group. If others don’t pull their weight, we wouldn’t either.
  19. Let’s skip one generation and then we can do it when the concept hits the mainstream.
  20. Over my DEAD BODY!

Well, these are some of the common objections and change management roadblocks.  We are sure several others are depending on the industry, corporate culture, geography, social, and demographic and psychographic considerations as well as the magnitude and impact of the proposed change.

Implementing a Change Management Plan

Leaders who intend to achieve the goals of a widespread change within their organization should consider change management their number one key to success. By using the information and guiding principles outlined above and implementing a proven change management model, it is possible for any organization to adequately address problems, improve performance, and surpass the competition.

The Change Management Secret to Success

Here’s the change management secret you will need to know to be successful in managing change during significant enterprise transformations.  It all boils down to WIIF (What’s in it for…).  Yes, that’s it.  Let’s dig in.

While there are a lot of change management theories and change management models and change management processes, the change management secret you must know is simple – individual motivation.  The personal motivation starts with self but expands in concentric circles to encompass a broad swath of stakeholders.

Start with the self and expand the scope of the statement to extend beyond the individual.

In times of rapid change, experience could be your worst enemy. 
– J. Paul Getty

The Anatomy of the Change Management Secret:

Even the most altruistic and noble causes and endeavors are also about self-interest, self-satisfaction, and self-actualization.  Hence, framing a change management endeavor in these expanding circles will serve you well.

While there are a lot of change management theories and change management models and change management processes, the change management secret you must know is simple – individual motivation. 

Let’s take an example on how one might position an enterprise change management program involving re-engineering some customer service processes, and re-architecting the platform with a new customer service application.

There you have it. The framing of a change management program that appeals to the individual at multiple levels. Of course, we are not saying enterprise transformation change management is all about framing. It is just a start. You still will have to have a change management plan, a change management process, the right set of people, engagement at all levels, and supporting technology to support your change management endeavors.

Now that you know the change management secret, please share it with others! And implement it in your next change program.

The Top 7 Reasons Change Management Programs Fail

Change has its enemies. 
~Robert Kennedy

  1. Do As I Say:  One of the most traditional Change Management barriers is the top management professing one thing and then modeling a different behavior.  Employees are perceptive and can fathom not just clear mandates, but the implicit signals the actions of the management sends.
  2. Business as Usual: Avoiding dealing with the change – the 800-pound gorilla in the room – or not acknowledging it and wishing it goes away is a common trait among some company leadership.  Just going about business-as-usual and expecting the change to take root is another significant barrier to change.
  3. Forgetting the Individual: At the end of the company is a collective image of its employees, the guiding principles of corporate culture, and the broad societal mores.  It starts with the individual, his/her motivations, aspirations, competencies, and skills. And their fears, uncertainties, and doubts.  Without addressing What’s in it for me, individuals will become a barrier to any change efforts.

    One of the most traditional Change Management barriers is the top management professing one thing and then modeling a different behavior. 

  4. Political Dynamics: A company seldom acts in unison, and cliques, informal, and formal groups are the norm. Even if the destination has the consensus, the approach and the route to get there may be in the debate.  The Change leadership must address the politics and sometimes harness them, sometimes snub them, and sometimes work around them.
  5. Addressing the Symptoms: Change is painful, intense, and invasive. But instead of solving these hard problems, at times the leadership treats the outward symptoms and not the cause. Furthermore, the kumbayah moments may look warm and cuddly, but the simmering underlying reality is far different.
  6. Under Budgeting: A cardinal sin enterprises commit is treating the change management challenge as an afterthought and as a checklist item on a project plan. Hence, the under budgeting is the norm than the exception.  Without funding the change cause, any talk is just that and is empty regarding its impact.
  7. The “C” Players: Last but not the least, to show that the company leaders take the transformation change seriously, the team in charge of the change management should be influential members of the leadership. Having the change team populated by corporate discards and misfits will send a negative signal to the rank and file as to the strategic importance of the change endeavor.

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