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The Use Of Change Management In Process Improvement Damon Werner, MBB Director of Business Process August, 2013 Agenda 1. Introduction and Background 2. View on the role of Change Management in Process Improvement 1. Project Success vs. Organizational Readiness 3. Methodology and Tools of choice 1. Threats vs. Opportunities 2. Elevator Speech 3. Stakeholder Analysis 4. TPC Analysis (Sources of Resistance) 5. 3 D’s (Influence Strategy) 4. Other Change Management Topics: 1. Skewed Adoption Curves in Technology Organizations 2. Downsizing and Change Management 3. Change Management and Customers Background for Change Mgmt Model Current State Transition State Improved State Creating A Shared Need Tool: Threat vs. Opportunity Matrix The Threats and Opportunity Matrix is completed early on as soon as leaders have committed to champion the change THREATS Don’t •Perception of this division by other businesses Short Term •Not following the expectations of Corp Leadership •Employees will just spin, for lack of the tools Do •Apathy of the staff due to previous track record on sticking to what we launch •So much change, there may be skepticism •Stigma around Six Sigma •Miss goals for Q1 •The perception that this effort is based around job elimination •Disappoint some by not following through •Hard because we are a reactive culture •Continued layoffs/repeat of history Long Term OPPORTUNITIES •Never reach full integration of the business units •Won’t grow top line revenue or get the cost out to reach the EBIT targets •Won’t be viewed as a competitive business unit •Hinder ability to attract talent, hurt job satisfaction •We may not have the focus or effort behind this in the long haul •Might not have the impact that is needed Don’t •More attention that we’re already doing, like reacting •Less distraction Do •Able to fix some of our bigger/nagging pain points with a sustainable process •Quick wins to prove the value of the effort •Positive energy and retention strategy •Consolidate systems in the short term •Career growth opportunity •Build for efficiencies and become proactive •Inherent culture that does it right the first time, expecting better quality •Profitability, predictability and confidence in the business Shaping A Vision Tool: Backward Imaging - Exercise Now Future Used For: 1. Imagine a point in the future when the project has been very successful. Helping team members think about the future they are working to create 2. Find words to describe what you would see, hear, feel as you observe key constituents functioning in the new, changed state. 3. Collate, debate, reach consensus, "test" on others and modify Shared Visions Come From Collective Efforts That Reflect Individual Perspectives 5 Shaping A Vision Tool: Elevator Speech – Communicating the Vision 1. Imagine a chance meeting of a team member and a key stakeholder in a empty elevator. The ride is 90 seconds. 2. Describe the need for change and vision of the new state, as if answering the question “Why are we doing this?” Address the following elements: • Problem/issue • Benefit • Where are we • What others can do 3. Team members practice this “speech” so they can convey a uniform message to others Mobilizing Commitment Adoption Strategy % of Population Early Adopters Innovators Late Adopters Resistors ► Identify which stakeholders could be considered an innovator, early adopter, late adopter or resistor, related to this change ► Determine what impact their attitude could have on making the change ► Determine which stakeholders should be approached first to start gaining momentum 7 Mobilizing Commitment Tools: Stakeholder Analysis The Stakeholder Analysis helps the team answer the questions: • Who are the stakeholders? • Where do they currently stand on issues associated with the change • Where do we “need” them to be in terms of their level of support • What do you need them to do, or what is the win associated with getting them on board? Names G. James Strongly Against Moderately Against Neutral Moderately Supportive Strongly Supportive Mobilizing Commitment Tool: Technical-Political-Cultural Analysis The TPC Analysis seeks to identify, label and understand sources of resistance, and help build a specific strategy to use to influence and gain support Source of Resistance Technical Definition: Causes of Resistance Aligning & Structuring Organizations ► Lack of skills / training / equipment ► Sunk Costs Allocating Power & Resources Political Cultural ► Relationships ► Power & Authority imbalance or selfpreservation Articulating the Glue or Cultural Norms ► Locked into an old “Mindset” ► Afraid of letting go ► “We don’t do it that way.” Examples Rating Mobilizing Commitment Tool: 3Ds The 3 Ds are used to generate evidence or proof of the opportunity. It also helps to create a robust communication plan/story for the change. Types of Proof Data/Facts: ► Numbers/Trends/Statistics ► Graphs/Financials ► Benchmark/Competitive Data Demonstrate: ► Best Practices ► Visiting other organizations ► Panels/pilots/testimonials Demand: ► Dynamic leadership (setting high standards/ accountability) ► Customers/Suppliers/ Competitors (Internal and External) Have Now NeedNeed to Get to Get Win Mobilizing Commitment Tool: Overall Influence Strategy Tactics & Tools Include: Influence Strategy Used For: Identifying what the issues are, who can best influence, and how can they be best influenced Stakeholder Issues/Concerns (TPC) Identify “Wins” Influence Strategy (3 Ds) Exercise Identify the Stakeholders for your project Who are two of your most important stakeholders? What are their: – Issues – Wins – Influence Strategies Questions or Other Topics 1. Skewed Adoption Curves in Technology Organizations 2. Downsizing and Change Management 3. Change Management and Customers Adoption Curves Normal Curve Early Adopters Late Adopters Innovators Resistors Skewed/Technology Innovators Early Adopters Late Adopters Resistors