1952 Module 6 Organizational Change PDF

~ :,:; U NIVERSITY OF TORONTO ~ SCHOOL ,w CONTINUING STUDIES 1952 Leading Projects in Organizations Module 6: Organization Change rl; U N IV E RSIT Y OF TO RON TO ~ SC II OO L ~,, l llr--,'.Tl'\,'l l'\,'l, STL DILS...

~ :,:; U NIVERSITY OF TORONTO ~ SCHOOL ,w CONTINUING STUDIES 1952 Leading Projects in Organizations Module 6: Organization Change rl; U N IV E RSIT Y OF TO RON TO ~ SC II OO L ~,, l llr--,'.Tl'\,'l l'\,'l, STL DILS Module 6 - Section 1 Organization Change Management  What is Change? Change is something that pushes us out of our comfort zone Make or become different (Oxford Dictionary) To exchange one thing for another thing "It is not the strongest of the species that survive, nor the most intelligent; but the most responsive to change" - Charles Darwin "The quality of a successful man is to flow and not to freeze" - Ralph Waldo Emerson A lot of people are resistance to change  Organization Change An alteration of an organization's environment, structure, technology, or people: - A constant force - An organization reality - An opportunity or a threat An effect of rearranging priorities in organizations or bringing in new leadership "If you want to change the culture, you will have to start by changing the organization" - Mary Douglas How does it impact people  Change Management Addresses the people side of change Application of a structured process and a set of tools for leading the people side of change Focuses on how to help people engage, adopt, and change their day-to-day work to achieve a desired strategic outcome $ ~~~~~~T~~.!~~D~ Source· httrnrllwww prpscj cnm/re'lrn1mes(artidHtwbaH11-changA-manaoernent-and:bow:does:it-work systematic approach to dealing with the transition controlling the change, but managing the people helping people adapt, understand, be aware, communicating through it  Change vs. Transition Change is situational, something that starts and stops Transition is psychological - the gradual process of psychological adjustment that happens inside us as we adapt It is the inner reorientation or self re-definition that you have to go through in order to incorporate those changes The human side of change takes time "Without the transition , change is just a re-arrangement of the furniture; the change will simply not exist" - William Bridges as leaders, you need to consider what you team is going through in their personal life change is moving from one house to another, transition is adjusting to the new situation - a response to the change Change vs. Transformation Change Transformation Subscribes to Vision and Strategy Redefines Vision Creates fixes to the Past and Present Creates Future Tactical Approach Strategic Approach Focus on Processes and Methods Focus on Culture External Influence is High - -~ External Influence is Minimal "Transformation - an extreme, radical change that orients an organized body in a new direction and takes it to an entirely different function. " - Michael Sahota  Transformation vs. Evolution Transformation Evolution Planned for Forced into Motivated by strong sense of Unknown end state purpose and direction Heavily influenced by the external Meant to initiate paradigm shift environment Proactive mechanism to initiate Meant to adapt to external forces change Reactive mechanism in response Driven by people (internal locus to change of control) Driven by external variable (external locus of control) proactive vs reactive  Prosci's Stages of Change - Phase 1 Phase 1 - Preparing for Change Define change management strategy Identify anticipated points of Prepare your change resistance and special tactics based management team on readiness assessment Develop your sponsorship model build in communication and training  Prosci's Stages of Change - Phase 2 Phase 2 - Managing Change Develop change management plans Res istance management plan is one of the plans created as a deliverable Take actions and implement 15 timeline, town halls, planning the plans/roadmap are we prepared to support ppl through the change then implement the change  Prosci's Stages of Change - Phase 3 Phase 3 - Reinforcing Change Collect and analyze feedback Collect feedback , audit compliance , Diagnose gaps and diagnose and address gaps, look for manage resistance pockets of resistance Implement corrective actions and celebrate successe 11 How do we sustain the change? Get feedback how do you manage resistance ? anticipate this, ask people ahead of time about how they are feeling celebrate the change - imagine toddlers monuments  Reactions to Change During change, employees go through different reactions that need to be carefully managed by the leadership team Integration Changes integrated , a Denial- Create renewed individual Alignment Disbelief, looking for evidence that it ---- isn 't tr Frustration- Maximize Communication Recognition that things are Learning how to work in different, sometimes angry the new situation , feeling Shock more positive Surprise or shock at the event Experiment- Develop Capability Initial engagement with the new situation Depression - Spark Motivation Low mood , lacking in energy 12 use emotional intelligence your team members may all be experiencing different emotions and different times you as a leader are also going to go through these emotions, and you need to lead your team through it  Lean Change Management Cycle One or more Planning stage of hypothesis and the Experiment expected benefits Introduce a change and see if ii works the way you expect Working with the people affected by char;ige Understand the current state of your organization ~~~~~~T~~.!~~D~ (, Source. ¥nHW leaochanpe om Review outcomes of the experiment 13 A bunch of small changes while the large change is happening  The 'Trigger' for Change An event that prompts a sense of discomfort and disruption, indicating that the "status quo" is no longer appropriate: - Brings people's mindset into the context of change Trigger event - a shift in the environment that precipitates a need for organization change: - Environment - shifts in the market, competitive pressures, legislative changes - Business relationships - acquisitions, partnerships , new alliances - Technology - new hardware or software, end of life environments - People - new employees with different cultural background , new leadership 14 A decision that happens that brings about the change  ~ Change Enabling Behaviour IC-1.2 1. Optimism - positive orientation towards change 2. Self-efficacy - not afraid of change, be proactive, learning about the change 3. Psychological capital - confident change is good and profitable, understand the benefits 4. Resiliency - persistent bounces from adversity 5. Hope - find ing pathway to goal and results 6. Happiness - feeling of achievement of something new 15 1. Talk about positive situations that can make a difference a. Example - A Team success a deliverable being accomplished successfully 2. Provoke the team to take on activities that require changes. The more people go through change, the more they get used to it. a. Example - merger and acquisition projects, process reengineering 3. Build confidence that change makes a positive impact; talk about change as an opportunity for improvement. a. Example building an open space will make team members interact better and communicate 4. Continue to reinforce the change and build a change environment. Persist with continuous improvement. a. Example - people will react to open space office and demand lack of privacy. Take them to see other sites where people have embraced the open office mentality and ask them to share their experience. Build additional space/rooms for people to have private conversations 5. Find words of encouragement; the opportunity and the end goal 6. Build conversations around happy stories; find the happy story in any story through the art of storytelling. a. Example - every opportunity for change is an opportunity to do something better to provoke progress, and leave something behind. Games about change can also bring people into a state of happiness  Change Resistant Behaviour There are multiple reasons for change resistant behaviours, here are some of the most common ones: - "That's not how we do it" mentality - Cynical - disbeliever that anything good will come out of it - "What's in it for me" mentality - Lack of teamwork - no desire to work together with others - Reluctance/ Skepticism - push back on using anything new - "Wait and see" mentality, still not convinced change will work "People often resist change for reasons that make sense to them , even if the reasons don't correspond to organizational goals. So, it is crucial to recognize, reward and celebrate accomplishments" - R.M. Kanter 16 As leaders, we need to model positive behaviours Tips to Change Resistant Behaviour Turn the discussion for change into some,thing positive Make the change appealing for the stakeholders Provide rewards for any "change wins" Get training for people on change mana!~ement processes, tools, and most importantly mindset Continuously provide mind changing exiercises Invite change agents to self-select for leading change Have leaders forefront the change and bHhave as role models Talk and then Walk the Talk! 17 Ingredients of a Successful Organization Change Ownership and commitment to change: - The right leadership style - The right buzz (noise) - The right supporting organization Ability to focus organizations on prioritiz1ed set of changes: - Understanding risks - Mitigating the re-prioritizations Clear accountability for specific actions during change : - The right people for the right roles - The right change mindset - The right skill building mechanisms Implementation practices: - The right process for feedback , results monit:oring, and actioning, etc. 18  People Embrace Change Differently Most people do not mind change; they just do not Inventors Very few like to be changed - Very Positive / { Very Open especially if they have a Innovators Some choice Some individuals are eager Early Adopters Many Responses to for change Change Positive / Open { ----- Late Adopters Resistors and Rejectors Many can swing either way Resistors depending on the Negative / Not { Some Very Open approach for change Rejecters Very few 19 How can our early adopters sway our late adopters? ~ Organization Change Management- Exercise IC-2.1 Place each of the tasks in the correct change stages Change stages Task i. Develop change management Preparing for change plans Managing change Define change management Reinforcing change strategy Diagnose gaps and manage resistance Implement corrective actions and celebrate success Take actions and implement plans Prepare your change management team 20 Collect and analyze feedback  Organization Change Manaqement - Questions IC-3.1 IC-3.2 1. Which of the following is a behaviour that enables change? a. "Wait and see" b. Self efficacy c. Lack of teamwork d. Skepticism 2. What does Lean change start with? a. Experiment b. Options c. Insights d. Review 21 rl; U N IV E RSIT Y OF TO RON TO ~ SC II OO L ~,, l llr--,'.Tl'\,'l l'\,'l, STL DILS Module 6 - Section 2 Organization Change Process  Change is Not an Easy Process Performance The Change Process New Status Quo Integration ' 23 Measured against performance and time Team is not doing well during mid-change Change Process (1) Managing the change with a solid process not only prepares the organization for change, but also makes the journey easier By breaking the large components of change into more manageable items, it will help create focus at three levels: Individual change - people are the root of all change, and it requires psychological processes and tools to help find the right ingredients to steer a person from one behaviour to another - Organization change - identify areas for change and lead through change activities at people, structure, and process levels - Ecosystem change - include all aspects of individual and organization change, plus all the factors that can influence change (external vendors , regulators, competitors , economy, politics , disruptors) 24  ~ Change Process (2) IC-1.3 It starts with the trigger and continues with all the steps required for implementing the change successfully 25 1. A circumstance that causes an organization to realize that change is inevitable 2. Define the effectiveness of the results A change is intended to achieve 3. Based on the trigger and outcomes, investigate what changes are required and the different approaches to change for each of them 4. Different techniques to adopt changes: a. Burning Bridges = there's no way back b. Open space = people talking about what concerns them c. Boiling the Frog = incremental changes that are not visible d. Command = force people into the change e. Burning platform = create a crisis for the need for change 5. Develop a change management plan to help the adapters of change get used to the idea of change and prepare for it 6. Changes adopted by everyone affected 7. Once changes implemented, the change needs to be cemented and constantly reinforced  Organization Change Contributors Communication Culture Leadership Processes Organization Change Talen t Clarity Structure When you use all the components for change, you can achieve a more lasting result, quickly and efficiently 26 people need clarity*** and best way is to communicate how do we let people know whats going on? website, emails, newsletters  The Process of Transition - Fisher MOt NG FORWARD RADUAL ~ COMPLACENCY CCEPTANCE --- *" ,* l ···-· ♦ ~ THREAT GUILT DEPRESSION HOSTILITY ~ ~ - 27 Thoughts and feelings post/transition The Process of Transformation 'No going back' expectation to be explained from the beginning Introduce a culture of safety, where failure is acceptable as a way of learning: - 'Fail fast, learn fast' approach where people can learn as much as possible and improve at every step Things can only improve from the trigger point on Change is radical , the past will not be recognizable 28  The Process of Evolution Time is the main component of evolution Change happens gradually, through a process of satisfaction of current state in order to trigger evolution to next state Evolve Evolve Evolve and and and Accept Accept Accept Time l l Maturity l Satisfaction :: UNIVERSITY Of TORONTO Tfj -.CHOOL CO... TINUINt. !!oTUDIH 29  Organizations Approach to Change Objective: Maintain Objective: Evolve Objective: Introduce current business existing business completely new capabilities capabilities business capabilities Operational Enhancing roles and Innovation and approach to business skills creativity roles/ tasks - UNIVE~ITY OP TOI\.ONTO , 5CHOOl CONTINUING !ioTllDll'.:!I 30 You need to keep the lights on while the change is happening - even when ppl are struggling - prepare prepare prepare  Business Transformation Statistics According to Gartner, 91 % of businesses are engaged in some form of digital initiative, and 87% o1f senior business leaders say digitalization is a priority 89% of all companies have already adoplted a digital-first business strategy or are planning to do so According to a study by Statista , the two main agendas of CEOs to help business preserve through the current disruption are lead digital transformation activities at 37%; and 37% improving remote work experiences 80% of executives expect to increase spending on digital business initiatives in 2022 according to Gartner (" '\;[\"I l{',J J ~ l)f· J\)J{l)'\: [l) yf/. , , 11,>I 1,,,11,1 1,,,-..ll l>II', Sou,::,, Mtt~ q1,1i,cy.o:>m'blog1CJI-CligQl.fl' ,_formlllic,n.- 1.t11i5ti c..tt~c, ~,..~ ~ W 31 Tasks in Change Stages PREPARING FDR CHANGE MANAGING CHANGE REINFORCING CHI\NGE Develop your Develop change Diagnose gaps and sponsorship model management plans manage resistance Prepare your change Take actions and Collect and analyze feedback management team implement plans Define change Implement corrective actions management strategy and celebrate success  Organization Change Process - Questions IC-3.3 IC-3.4 1. What does Ecosystem Change include? a. Team members of an organization only b. Aspects of organization change c. Factors that can influence change d. The disruptors only 2. What kind of change involves completely new business capabilities? a. Status quo b. Transition c. Evolution d. IT"ransformation 33 rl; U N IV E RSIT Y OF TO RON TO ~ SC II OO L ~,, l llr--,'.Tl'\,'l l'\,'l, STL DILS Module 6 - Section 3 Organization Change and Projects Organization Change Impact Proiects Changes are triggered in order to support the competitive strategy of the business and are typically implemented through projects Project implementation success is dependent on the following factors: - Sponsorship at the CEO level - successful change initiatives start at the top - Plan is cascaded at every level of the organization - mobilize middle management and get buy in - Continuous reinforcement of change - create accountability by monitoring and openly expose results 35 Proiect and Change Management Change management and project management are complementary and mutually beneficial disciplines Traditionally, project management has 1focused on tasks, schedules, budgets, and deliverables - the technical side of achieving an enterprise goal Change management is concerned wit:h the employees, structure, culture, and leadership in the organizations Change management is a structured process 36  Integrating Change Management and Proiect Management Activities Change management can improve project management success by engaging people to make the desired change a reality By combining project management with change management the sum is greater than the individual components Project Management Conduct post- Scope Prepare Define team Select Implement Implementation project project plan requirements solution solution review Initiate Identify Identify Develop change stakeholders milestones solution Conduct Identify Identify training readiness stakeholder Anticipated requirements communications assessments analysis Resistance architects and develop Conduct Prepare Communicate Continue training Conduct Continue impact analysis change why change is communications training coaching management happening and sponsorship activities team activities Change Management UN IVERSITY OP TO~ONTO dJi '9 5CHOOl CONTINUING !!oTllDIE!!o 37 Star this slide - very helpful need to take change management into the project plan  Proiect Lifecycle and Change Management Major Events Kick off "Go Live" General Project Initiate Plan Design Develop Deploy Lifecycle Individual Change Journey Milestones (Prosci ADKAR Model: Awareness of the need for change; Desire to support change; Knowledge of how to change; Ability to demonstrate skills & behaviours; Reinforcement to make the change slick) Organization Phase 1: Phase 3: Change Phase 2: Preparing for Reinforcing Management Managing Change Change Change Activities (Prosci 3-phase Process) $ ~~~~~~~~.~~~ Source: ProsciADKAR Alodtl ANZbylim Cftuuy, Gartner Conftrtnce, SeJitmbtr 2015 38 Prosci phases: 1 - strategy/plan, 2 - implementation, 3 - feedback Prosci is org change, ADKAR is individual change journey (aware, desire, knowledge, ability, reinforce) Decision Matrix for Change Manager Leadership commitment and the degree of required Q. :c 3. PM with strong change are the main ~ (I) CM skills. or PM 4. CM with PM "O impact factors ca plus CM (I) This helps determine ~.a -....J whether the project :'i (..) manager (PM) requires g! t: 2. PM with strong; the change manager's 0 1. PM with some· Q. Q. CM skills, or PM (CM) help or can evolve ::::, CM skills Cl) plus CM their own skills in change management Strong Low Degree of Behavioural High Change Required $ ~~~~~~~~.~~~ Sourtt: SuggNt«I o.ciaion Alatm ~Engagement of Prqect ~.-d Chq, AfM,gin. byOawfotd and Nlhmiat 39  Change Proiects Sponsorship and Leadership: - Strategy side of the projecU program - Start with a vision of clearly understood goals, organization 's commitment to change, and a well defined project business case Transformation or Change ProjecU Program: - Organization side of the projecU program - Integration of change management processes and methods into project management methodology Management of Change: - People side of the project / program - Understand and manage the impact on day to day work, processes and systems, culture and organizational behaviour, structure and job roles 40 the change needs to be tied to the strategic vision - it needs to make sense how will it impact different teams/ departments? prepare for this, talk to ppl ahead of time  Proiect Change Management Plan - Template Prepare for Change: Identify anticipated points of resistance and special tactics based on readiness assessment Define your change management strategy / plan Identify Change Agents and Change Influencers Name Change Champion Officer (Leadership Team) Develop leadership communication plan Execute Change: Implement changes and continuously"assess the situation Implement plans Inspect and Adapt sessions (weekly); alternate Change Agents and Leadership "Get the Pulse" Survey Reinforce Change: Revise and address gaps, look for pockets of resistance Pull/Push Approaches (pull the audience first, then push if needed) Communicate success stories (newsletters, videos, etc) Celebrate successes 41 related to assignment  Proiect Change Management Plan Example Change Management Plan Section Deliverable Change management strategy Inform the staff regularly usin!~ a variety of approaches Change agents and influencers Update stakeholders registry to identify stakeholders role in change Change champion named Announce Quan, VP, as the Change champion Communication plan Update @Work program communication plan to include change elements Implementation plan Update WBS to include chan1ie activities Inspect and adapt session Focus group of JKLM staff meeting every month "Get the Pulse" survey Survey JKLM staff about @Work program Pull/Push approaches Use website to post announcements and face to face meetings Communication success 100% of JKLM staff aware of the move two months before hand Celebrate successes Add celebrations for each program milestone Not part of the plan Update risk register 42 Proiect Change Management Plan - lie~ APoLLO Exercise CHANGE MANAGEMENT PLAN SECTION DELIVERABLE Change management Inform Saturn staff through multiple channels slrate to ensure they are aware of the project Change agents and Update stakehof~er register to influencers identi fy stakeholders role in change Change cha mpIon Announce to all Saturn named staff about the change team Update Apollo communication plan Communication plan to include change elements Implement plans Update WBS to include change activities Inspect and adapt Hold multiple face to face meetings with session small groups of Saturn staff "Get the Pulse" survey Survey Saturn staff about Apollo Use website to post announcements Pull/Push approaches and face to face meetings Comm un ication Ensure 100°0 of JKLM staff are aware of success project Apollo six months after jlroject start Add celebrations for Celebrated successes each Program milestone Not part of the plan Contract updates 43 ()~ Organization Change and Proiects - ~ Questions ~ 5 IC-3.6 1. How does project management inteigrate with change management? a. Change management can improve projject management success by engaging people to make the desired change a reality b. Change management includes project management c. Project Management includes change management d. Change management and project management are mutually exclusive methodologies 2. What type of PM and CM skills are needed in a weak supportive and low change environment? b. CM with PM c. PM with strong CM d. PM with some CM e. Some PM , no CM ~ ~~~~:, ~S) ~~,T~l: ,1:~ ~~l~;I~ 44 rl; U N IV E RSIT Y OF TO RON TO ~ SC II OO L ~,, l llr--,'.Tl'\,'l l'\,'l, STL DILS Module 6 - Section 4 Leadership Styles and Organization Change "What good is an idea if it remains an idea? Try. Experiment. Iterate. Fail. Try again. Change the world." - Simon Sinek Change and Leadership Leadership is about making and embracing change in any possible way: - People at every level - Business Models - Ways of working - Mindset and behaviours - Life Change is inevitable, leaders need to embrace change and make the journey enjoyable for everyone "Leadership is about change... The best way to get people to venture into the unknown terrain is to make it desirable by taking them there in their imagination." - Noel Tichy 47  Leadership Styles in Implementing Change Servant leader: - Lead with the heart, listen to the people around you Laissez-faire: - Allow the team to focus on activities Charismatic: - Energize the audience with enthusiasm Transactional: - Hands on delivery of tasks ; people rely on you to deliver results Transformational: - Use executional abilities to drive toward vision and an inspiring future 48 LF is not good through change Leadership Styles Based on Type of Change Servant and Charismatic styles promote a culture of business change that will bring profits to the t rJ) organization ~C Q) Servant Transformation al Transformational is high on ro rJ) business impact, focusing on ~ radical change -~ ro Transactional is a "run the 0 0 Organization" type, focused «I c.. Transactional Charismatic on maintenance and E operations Impact of Change - - - Laissez-faire leadership style is not suited for organization change 49 How to Lead Change Successfully Change yourself: - Change your mindset, actions , and behaviours - Be a role model for the organization - "Put the oxygen mask on fi rst" - Michael Sahota Don't do it alone: - Take the team with you on the journey - Communicate reasons for change - Keep communication open and transparent Know the signs: - Monitor activities that are at risk of derailment - Follow the voice of the crowd 50 Steps to Effective Change Leadership Communicate: - Focus on the 'why', not just the 'what' and the 'how' of change, to increase purpose and buy-in Collaborate: - Break down silos - Encourage accountability and empowerment Commit: - Model persistence - Adapt to challenges - Stay positive and patient 51 Leading vs. Managing Change Change management requires strong leadership Choosing to manage and lead change and complement the skills of both can be the perfect recipe for success Managing change: - Setting new objectives that recognize the need for change - Ensuring adequate people - Developing appropriate planning Leading change: - Establish a vision for the business and leadinig people towards it - Motivate people at all levels, so they are posiitive and patient - Put change at the center of the culture of thei organization 52 Leader Transition during Organization Change From... Working in silos Being right the first time Seeking advice from experts and applying it in the overall context Being an expert Having a diveirse team with diverse perspectives Putting the customer first Thinking like the customer Building relationships with vendors Negotiating productively with vendors Focusing on getting things done Focusing on showing value Being reactive Being proactive Executing the strategy Executing the vision 53 Keys to Successful Change Leadership Show empathy: - Listen and understand the people who are being asked to change - Put yourself in every situation the people are f~oing through Demonstrate self-awareness: - Understand and adapt your leadership style to the situations - Speak in the words of the people you are leading the change with Embrace change: - Communicate, lead, and influence across all levels of the organization - Balance the need for the current results and the future results - Remember change is a journey! Lean into change: - Realize you have more access to information and perspective than anyone else - Get yourself to the level of everyone you lead 54 Remember! $ ~~~~~~~~.~~~ 55  Leadership and Organization Change - Exercise IC-2.3 Identify the leadership approach for each of the projects in the @Work Program Project 1 Office: New office selection and leasehold improvement of the new space 2 Downtown: Downtown office selection and leasehold improvement 3 Move: Relocate staff to the new office Leader's Attitude team! - Leadership Style Always looking for input from my Servant Let's get this done with the least Transactional amount of delays! Change is good for everyone, it Transformer will help us reboot! 4 IT: Laptop provision and software It will be amazing for alll of us, Charismatic installation and we will have lots of fun 1 5 Training: Staff training and support Great to see people taking Charismatic training! 6 Communication: Stakeholder Focus on the message and send Transactional commun ication and change management it out on time! 56  Leadership and Organization Change - Questions IC-3.7 IC-3.8 1. The servant leadership style is a change leader that: a. Motivates people to try new things b. Has a vision and helps people follow it c. Works with people to deliver results d. Creates an environment for delivery 2. Which of the following is a key step in successful leadership? a. Embrace change b. Define change c. Demonstrate empowerment d. Show emotions 57