Oliver Group Change Presentation 9-8-2015
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This document discusses common mistakes organizations make when implementing change and provides tips to mitigate risks. It identifies 8 common mistakes: 1) leaving key players out of the process, 2) failing to identify risks and obstacles, 3) using a one-size-fits-all approach, 4) failing to celebrate small wins, 5) not understanding employee perspectives, 6) lacking feedback mechanisms, 7) not establishing change infrastructure, and 8) not properly closing out the change process. The document emphasizes collaborating across functions to identify risks, building a culture receptive to change, and using effective communication.
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Oliver Group Change Presentation 9-8-2015
- 1. Mitigating Risk During Organizational Change: 8 Common Mistakes to Avoid
- 4. 3 U.S. Stock Market – 1975 - 1995 16000 14000 12000 10000 8000 6000 4000 2000
- 5. 4 U.S. Stock Market – Last 20 Years
- 7. 6
- 10. 9 “Change is inevitable. Growth is optional.” ― John C. Maxwell, The 21 Irrefutable Laws of Leadership
- 11. 10 Why Does Change Often Fail?
- 12. 1.COLLABORATE WITH OTHER FUNCTIONS TO IDENTIFY RISKS AHEAD OF IMPLEMENTATION. 2.BUILD A CULTURE FOR CHANGE. 3.EQUIP EMPLOYEES TO MAKE CHANGE SUCCESSFUL. COMMUNICATIONS IS CRITICAL
- 13. 8 Change Communications Mistakes to Avoid
- 14. 13 Mistake #1 – Leaving Key Players Out of the Process
- 15. 14 Mistake #2 Failure to Identify Risks and Obstacles
- 16. 15 Mistake #3 One-Size Doesn’t Fit All
- 17. 16 Mistake #4 Failure to Celebrate Small Wins
- 18. 17 Mistake #5 Understanding “Where They Are” Russell Consulting, Leading Change Training (ASTD Press, 2003)
- 19. 18 Mistake #6 Lack of Feedback Mechanisms
- 20. 19 Mistake #7 Lack of Change Infrastructure
- 21. 20 Mistake #8 Skipping the Close Out Stick a fork in me, I’m done!
- 22. 21 Creating a Culture Resilient to Change
Notes de l'éditeur
- If you’ve done work with The Oliver Group, I’m sure you’ve heard this term before: VUCA. It’s a way to describe the environment in which we are all operating today. It stands for: Volatile Uncertain Complex Ambiguous Does anyone here feel that they are operating in that type of environment within their industry? I think we all probably do at times. And, it’s all thanks to the amount of change that we’re all going through, in our own businesses and in the industries in which we operate. We can thank the military for this latest business catch phrase. And, there’s probably good reason that it came from those who are trained for war – because, in today’s constantly evolving business environment, we’re all feeling like we’re in combat mode.
- (TWO-PHASE CLICK) You all probably already knew that change is a constant, and should be expected in business. But, today’s change feels different than in the past More complex More frequent More scrutinized
- Just look to the U.S. Stock Market as one indicator of us living in a VUCA world. Here’s what the U.S. Stock Market looked like from 1975 to 1995.
- And here’s what it’s looked like the last 20 years. Talk about volatility!
- (TWO PHASE CLICK) Organizations are facing growing external risks forcing change at an unprecedented rate. Changing technology Varied and increasing regulations Growth in emerging markets Rising material costs Generational shifts in the workforce
- (TWO PHASE CLICK) What types of changes are you seeing within your industry/organization? Change takes many forms Restructuring Mergers and Acquisitions Leadership turnover Adjusted growth strategies New cultural expectations Updated technology Change is everywhere, especially in complex industries facing increasing competition, regulations and scrutiny.
- Like banking. In the absence of industries regulating themselves, government entities are stepping in to create stringent new regulations.
- And the health care industry is experiencing an extreme amount of change as companies evolve to respond to new regulations that come from reform and changes in the way reimbursement is handled. Some organizations don’t know what to do, so they take the stance of “I’ll just do nothing.” But it’s riskier to do nothing than it is to change.
- This is a quote from an author of several business leadership books. And, it is so true. Change is inevitable, but the growth part truly is optional. Change is hard. Many have a negative view of change. But, you get to choose your lens. Do you want it to be a state of fear. Or, do you want to look at is as opportunity and amplify that perspective throughout the entire organization. How leaders choose to deal with change is critical. There are inherent risks associated with change. If you go into it with a strong change management process in place – you have a good chance at seeing strong growth (whether it be in the uptake of a new technology that leads to significant growth in cost reduction, or a merger or acquisition to leads to growth in new markets). But many organizations fail at change. They fail to achieve the growth they were expecting.
- According to IBM’s 2008 CEO Study of more than 1500 executives, almost two out of three executives have failed at at least one major change initiative. Why is that? What things have you seen contribute to major change initiatives failing? Change fails for a host of reasons, not the least of which is: Lack of understanding of a new direction Vague expectations Lack of support to help employees act on change Misunderstood benefits of change (What’s in it for me) Lack of organizational resiliancy Change fatigue There’s a common thread behind most of them. What is it? It’s employees - Employees play a critical role in making an organizational change initiative a success – they can make or break it. And all of these causes of failure can be addressed by building employee understanding and engagement in the change.
- And, communications can help with that. Communications, can help you: Collaborate with other functions to identify risks ahead of implementation: Work with functional peers to assess behavioral and process barriers to apply the change. Build a culture for change: Understand change is not a straight line. It’s an ongoing cycle with smaller, overlapping chapters. Effective change doesn’t just happen, it requires preparing employees to be drivers of change, not bystanders. Equip employees to make change successful: give employees what they need to be engaged in their work and the change.
- Sounds easy right? But, communications is where a lot of companies fall down during a change management initiative. So, I’m here today to share some of the common communications mistakes we’ve seen organizations make when they are under the pressure of a change initiative. And, I’ll give you some tips on how to avoid making these same mistakes in your own organization.
- One of the first mistakes that organizations typically make is leaving key players out of the process, or bringing them in too late. How many of you have been involved in a change management initiative that comes out as a mandate from the CEO and is enforced by a division head. At some point down the road, HR is expected to come in, usually because challenges have started to pop up. Then, communications is brought in later to help address things if after they’ve gotten out of control. How many of you have experienced that? Here is a list of representatives that should be at the table early from the start of your change management initiatives. Executive sponsor: You need someone has the power to sanction or legitimize the change. Someone who is trusted among employees and well connected and at the appropriate level within the organization to garner the resources you need and help pave the way for the change. They need to be active and visibly participate in the change. Change management team: This is the team who will facilitate strategic planning for the change, build involvement, review feedback and evaluate progress. Cross section of the organization to represent the different areas that will be heavily impacted by the change. These people are influencers within the organization and can serve as your internal champions to help rally others around the change. Human resources: HR plays a key role in the planning and institutionalizing the change because of its vantage point from managing your company's most valuable resources -- its employees, who are crucial in creating a successful change initiative. HR can help identify and promote the behaviors that will best help make the change happen. They also design training to ensure employees have the skills they need to make the change a success. (ANYTHING ELSE SHOULD LIST, THERE MAY BE A LOT OF HR PEOPLE IN THIS AUDIENCE) Communications team: The communications team creates awareness of the initiative, engages those who can influence the project and builds commitment to the initiative’s success. Change doesn’t happen because of one memo. In fact, right about the time leadership gets tired of talking about the change, the team is just starting to get it. Communications outreach needs to be early and continuous throughout the process. Who here typically has all these people at the table during planning for a change initiative? How has it gone when these people aren’t at the table? All of these parties need to be working together early on and meeting regularly to ensure all aspects of change management are aligned and supporting each other.
- (TWO-PHASE CLICK) The second mistake is failure to identify potential risks. What are some risks or potential obstacles organizations face when making a significant change? Some other examples include: Staff doesn’t have the necessary skills to help enact the change Current internal stresses, such as other initiatives or challenges going on at the same time as your change initiative Lack of clear internal processes to guide people on how to make the change a reality Lack of resources, like don’t have IT infrastructure in place to support the change You need to take time with the key players you’re bringing to the table to think through the risks that you face. Test out your list of risk and obstacles with other key department heads to add new perspective and to make sure there isn’t anything the team missed because you don’t have a day-to-day purview into those areas. You may identify several risks and obstacles. We recommend creating a Heat Map of the potential risks and obstacles. Rate each one by the level of impact it will have on the success of your change initiative. Then, rate each one by the likelihood that that obstacle will occur or that the risk will come to fruition. This exercise quickly identifies areas that will most impede your success, so you can address them in your outreach strategies. But, also keep in mind the velocity of the obstacles and risks. How fast could these obstacles and risks happen? The rate of change is so fast in our VUCA world that the priorities of risks may shift throughout the change initiative. So, reassess this charge on a quarterly basis.
- Understand the various stakeholders in your organization. There are distinct subgroups of employees that you’ll need to take into account when developing your communications plan. For example, if you’re launching a new technology platform to bring efficiencies to processes. Consider: what does your IT department might need versus your sales team to increase adoption/use? You couldn’t find two audiences more different. So, start by identifying subgroups of employees who will be most impacted by the change. Then, do an analysis of their needs and desires. Who do they trust? Where do they go for information? How will this change directly impact them? What do we want them to know/try/do? What is their primary need/desire? What does this change offer them that will support their primary need/desire? What might keep them from embracing this change? What are their greatest fears? Incorrect beliefs? By doing this type of deep dive stakeholder analysis, you’ll have insights that allow you to leverage the communications channels that they already trust and go to for information, and you can craft communications messages that will resonate with them, have impact and move them to action.
- The fourth mistake is forgetting to celebrate small wins along the way in your change management process. It’s such an easy thing to forget, especially when everyone is so busy working to implement the change. But change initiatives often lose steam and fizzle out because they forget this step. So, don’t wait until you’ve reached the end goal of your change to give pause, celebrate and give employees a chance to rejuvinate. Continuously collect examples of small wins and milestones met along the way. Sharing these examples through internal news channels and events shows progress and helps motivates your employees. They also help recognize the actions of teams and individuals who are supporting the change and helping make it happen. Using these real world “in the moment” stories can reinforce desired behaviors and provide examples for others to model. Lastly, it can help combat change fatigue, which is common in today’s VUCA world. With so many changes going on within organizations, employees can become frustrated and jaded because it feels never ending. Find opportunities to celebrate the completion of key steps along the way to give the feeling of forward movement. Make people heroes with your organizations. Elevate those frontline workers.
- Just as with the Seven Stages of Grief after a loss, there is a progression of steps toward acceptance that employees go through during a major change initiative at their company. Employees begin in the Comfort and Control Stage – They feel in control, a bit complacent and comfy. People have lost their fire and are in an everything’s fine mode Fear, Anger and Resistance Stage – You announce a major change and employees feel betrayed, upset, hostile and anxious Inquiry, experimentation and Discovery Stage – Employees are still confused. They are trying to figure out how they fit into the change. They are questioning things and frustrated not happening fast enough. They may be hopeful, but still cautious Learning, Acceptance and Commitment Stage – Employees understand how they can play a role. They feel energized, confident and relieved. There are different communications strategies apply to each of these stages. Comfort and Control Stage – Acknowledge their past successes, explain the consequences of not changing, share examples of when change has been successful in the past Fear, Anger and Resistance Stage – Share early wins, be specific about how the change will benefit them, make them feel like they are included – identify small decisions they can own, encourage discussion and feedback Inquiry, Experimentation and Discovery Stage – Recognize individual accomplishments, outline what’s left to do, admit to failures along the way, show progress Learning, Acceptance and Commitment Stage – Create positive reinforcement – awards that celebrate contributions, discuss the future, share lessons learned, highlight ongoing results of the change And, employees progress through these stages at different rates. We recommend using pulse check surveys or post All-Staff Meeting polls to get a feel for where a majority of your employees fall, and focus corporate-wide communications on strategies that are effective during that stage. Leverage your people managers to identify and meet with outliers who may be further along or behind in the process. The manager-employee relationship is one of the most critical ways to increase employee engagement, and managers have insights into what their direct reports need to do their jobs, and how they might respond to changes. Give managers the tools and skills they need to help individuals through the change cycle.
- Many organizations just rely on an annual employee survey to get an understanding of where employees stand. But, a major company change is dynamic and needs more than an annual check point to identify issues before they spiral out of control. You need multiple forms of feedback mechanisms to inform how to gauge the rate of adoption and modify your communications strategy to address issues. What types of employee feedback mechanisms have you used? Here are some additional examples. Pulse checks in staff meetings, utilizing tools like the real-time text polling technology we used in today’s presentation. Employee Advisory Committees Manager Feedback Collecting ongoing feedback throughout the change process will ensure resources are put to the best use and that you remain on track as internal and market forces evolve.
- Old habits die hard. After time, it’s easy for employees to revert back to the old way of doing things. So, create structure and formal written policies as references to guide people and ensure that the change sticks. Examples of helpful resources include: Organizational structure Job descriptions Hiring policies Performance evaluations New policies and procedures Formal rewards and recognition Employee engagement survey questions This is part of what The Oliver Group does for organizations. They are a great resource to tap for assistance in developing these items.
- This is what a lot of people feel like as they reach the end of their change management initiative. You’ve worked for months to communicate on a regular basis, get feedback from employees and adjust your plans and set up the right supports to help institutionalize the change. Whew! Stick a fork in me, I’m done! But, it’s critical that you don’t lose steam yet and forget the important final steps of closing out the initiative. You need to signal to the organization that its worked through the change: through celebration, through recognition of those who made significant contributions and by reminding people of where you were and how far you’ve come. Officially closing out the initiative, makes it feel like a successful endeavor. People want to feel that they’ve arrived somewhere and aren’t just continuing to tread water. It’s also time to evaluate the lessons learned and best practices. Insights on what worked and what didn’t will help your next change management initiative get off the ground faster. We also recommend monitoring for the first year to check in on the continued institutionalization of the change.
- Changes, changes and more changes! What can happen is that one change initiative ends and another major initiative begins immediately following it, or simultaneously. Now, there are different levels of change within an organization. Incremental change – driven by a general focus on performance improvement, i.e. a change in benefits, new technology implemented for one department (medium impact) Radical change – driven by crisis or significant opportunity, i.e. a merger or business strategy shift (large impact) But, our jobs as company leaders are to help create a culture that is resilient to all types of change. Because change is constant and we live in a VUCA world. The better we equip our organizations to weather change and get some strong examples of successful change under our belts, the more likely we’ll be able to create an environment where employees are excited to be a part of change, versus feeling that they are victims of it. And, by avoiding the eight mistakes we’ve reviewed today, you’ll be well on your way to being successful in a VUCA world.