Organisational Change Why should I care? Martin Davis MBA, BSc, PMP VP of IT, J. D. Irving Ltd Organisational Change Management – Why Should I care? Martin Davis 1
Key Learning Points Importance of Change Management 1 Basic approaches you can use 2 Hints and tips to making your project 3 more successful Organisational Change Management – Why Should I care? Martin Davis 2
Why should I care? Why should I care? “In the United States, we spend more than $250 billion each year on IT application development: • 31% of projects will be cancelled before they ever get completed. • 53% of projects will cost twice as of their original estimates, • overall, the success rate is less than 30% .” Organisational Change Management – Why Should I care? Martin Davis 3
Why should I care? Top reasons projects fail • Executive sponsorship • Clear Business case / requirements • Project Management / Planning / Governance • Resources / Funding • Organisational Change Management – (includes: communications, org. change, stakeholder management, culture issues etc) Organisational Change Management – Why Should I care? Martin Davis 4
Session Overview Change Management – Why Should I care? 1 Approaches to Change Management 2 Do people resist change? 3 Importance of Change Leadership What’s in a name? Just success 4 or failure! 5 Success with Change Management Organisational Change Management – Why Should I care? Martin Davis 5 5
Remember the pain…. Organisational Change Management – Why Should I care? Martin Davis 6 6
Change is hard; especially under stress……. Desire to Draw back to change the familiar Organisational Change Management – Why Should I care? Martin Davis 7 7
Barriers to Change What gets in the way? • Conflicting priorities • Culture • Politics • Regulatory Compliance • Market pressures • Leadership alignment and desires • Cost • Time / Patience to make it happen Organisational Change Management – Why Should I care? Martin Davis 8
What is Change Management? Wikipedia Definition Change management is an approach to transitioning individuals, teams, and organizations to a desired future state . Organisational Change Management – Why Should I care? Martin Davis 9
Approaches to Change Top Down Mandates are Quick, BUT…….. Organisational Change Management – Why Should I care? Martin Davis 10
Top Down vs Bottom Up Change (Planned vs Emergent) Planned Top down change Short term Shareholder returns Emergent Medium to long Build term returns Capability based on Emergent Bottom-Up increased organisational capability Organisational Change Management – Why Should I care? Martin Davis 11 11
Step Models of Change Lewin (1951) Unfreeze Move Refreeze CHANGE Kotter (1996) Organisational Change Management – Why Should I care? Martin Davis 12
What’s in a Name? Just Success or Failure! • Who has named their project after a technology being implemented? • Why is this a bad idea? X Technology Name = IT Project IT Responsibility Lack of Business Ownership Organisational Change Management – Why Should I care? Martin Davis 13
Impact of Change Fear leads to Resistance • Sense of loss, confusion • Mistrust and a “what’s in it for me” focus • Fear of letting go of the past • Uncertainty, emotional stress, anxiety • Perceived high levels of inconsistency • Fear of loss of control • Conflict increases — especially between groups Organisational Change Management – Why Should I care? Martin Davis 14
Do People Resist Change? The Loss or Bereavement Curve Shock Feelings Healing Anger Acceptance Rejection Time Organisational Change Management – Why Should I care? Martin Davis 15 15
Different Perspectives Keeping people aligned Organisational Change Management – Why Should I care? Martin Davis 16 16
Getting Employees Involved The key to reducing resistance • It’s not just about sending out a few email communications!!! • Need to reduce the unknown • Communicate frequently in a variety of forms (posters, emails, town hall mtgs) • Involve employees – get their input • Ensure the change resonates with them Organisational Change Management – Why Should I care? Martin Davis 17
Importance of Change Leadership “Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better ” Harry S Truman (1884 – 1972) “Management is doing things right; leadership is doing the right things” Peter Drucker (1909 – 2005) Organisational Change Management – Why Should I care? Martin Davis 18
Importance of Change Leadership “ Leadership is about results. A leader’s vision must in the end produce the desired results: successful, profitable change where employees are committed and engaged ” Peter Drucker (1909 – 2005) Organisational Change Management – Why Should I care? Martin Davis 19
Importance of Change Leadership No Success without Strong Leadership Anchor the new reality in the Organisational culture Lead the impacted staff towards a new vision (“the promised land!”) Leaders must paint a clear picture of the reason for change (create a climate for change) Organisational Change Management – Why Should I care? Martin Davis 20
Importance of Change Leadership No Success without Strong Leadership 1 Leaders are credible 2 Leaders are accountable 3 Leaders are accessible 4 Leaders are open to ideas Leaders sponsor people in 5 change “Change Capability Framework” ( Carnall, 2007) Organisational Change Management – Why Should I care? Martin Davis 21 21
Change Leadership In Action Ford CEO Alan Mulally Get every employee: • to understand the vision of the company, • buy in to the plan, REUTERS/Tim Shaffer • feel supported in their “If people aren't optimistic, jobs. they're not going to make the sacrifices and do the work required to turn things around .” Business Insider, Nov 2013 Organisational Change Management – Why Should I care? Martin Davis 22 22
Effective Leaders No Success without Strong Leadership • Modify their approach to the mood of the Organisation • Provide clear guidance and direction • Focus attention on most impactful changes • Relate well with key stakeholders Organisational Change Management – Why Should I care? Martin Davis 23
Aligning & Anchoring the Change “Making it Stick!” • Achieve tangible results quickly • Ensure change is embedded • Align policies, incentives and results to the behaviors needed for the new reality • Reinforce new culture through training and coaching • Hold steadfast until desired, sustained outcomes Organisational Change Management – Why Should I care? Martin Davis 24
Vicious Circle of Change The Interrelated Pieces Lack of Change Leadership Reduced Results Unclear Less Drive Messages To Change Greater Resistance Uncertainty Apathy Increased Fear Lack of Momentum Organisational Change Management – Why Should I care? Martin Davis 25 25
Virtuous Circle of Change The Interrelated Pieces Change Leadership Improved Results Clear Urgency Communication Empowered Employees Clarity Engagement People Embrace The Change Organisational Change Management – Why Should I care? Martin Davis 26 26
Success with Change Management Key principles An Art not a Science Focus on Not just a helping Check Sheet Individuals Exercise change Organisational Change Management – Why Should I care? Martin Davis 27
Success with Change Management 8 things to remember Make the change Ambitious 1 Name the project appropriately 2 Structured and Coherent Change Program 3 Change Leadership 4 Create a sense of Urgency 5 Ensure the change Resonates with the staff 6 Involve everyone and define how they benefit from the 7 change (to reduce resistance) Anchor the change as the new reality 8 Organisational Change Management – Why Should I care? Martin Davis 28
Key Learning Points Importance of Change Management 1 Basic approaches you can use 2 Hints and tips to making your project 3 more successful Organisational Change Management – Why Should I care? Martin Davis 29
THANK YOU! Q&A For further information: Twitter: @mcdavis10 Blog: http://martindavis01.wordpress.com/ and: Enterprise CIO Forum at http://bit.ly/18xU0CC Organisational Change Management – Why Should I care? Martin Davis 30
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