Change Management

DRAFT PAPER

15th March 2016

Contents

Page

CHANGE MANAGEMENT

BACKGROUND

INTRODUCING THE ISSUE

CHANGE MANAGEMENT PRINCIPLES

CHANGE MANAGEMENT MODELS

CHANGE MANAGEMENT PLAN

IDENTIFIED CHANGE MANAGEMENT ISSUES

MANAGING THE ENVIRONMENT OF CHANGE

PLANNING PHASE

COMMUNICATION PLAN

NEXT STEPS

CONCLUSION

CHANGE MANAGEMENT PRINCIPLES

THE 8 STEP CHANGE MODEL

12

Change Management
Background
Any significant transformation creates people issues. New people may join the
organization, people may leave, jobs will be changed, new skills and capabilities
must be developed, and employees will be uncertain and resistant. Dealing with
these issues on a reactive, case-by-case basis puts speed, morale, and results at
risk. A formal approach for managing change, beginning with the leadership
team and then engaging key managers and personnel, should be developed
early, and adapted often as change moves through the organization.
Generally people resist change only when it makes them feel out of control,
when change is imposed on them without any say in the process. The
introduction of increased use of change management strategies and methods in
transformation will often be resisted due to the difficulty of precise definition of
their results and the uncertainty of their outcomes. This is directly related to the
level of communication and buy-in of the transformation.
Public sector organizations are often perceived as resisting change. Many public
sector organizations seek capacity (the ability to get things done) but not change
(a different way of doing old things).
For many organizations change and capacity are seen as distinct, but the
evidence suggests that they are intertwined. As such, it is important to
understand what aspects of the status quo can be changed so that capacity
development can take place. Identifying the boundaries of change management
work is important as is identifying the risks and potential mitigation. Moreover,
this is necessary in order to manage expectations accordingly.
Different actors in change process have different powers and exert different
influences. Thus, there is a risk that the change model may represent political
fix (reflecting the interest of the more powerful players) or a response to
pressure as external drivers for change without a genuine commitment, thus
risking failure of the change effort. Change initiatives need to have a powerful
guiding partnership group and strong internal support.
Genuine change takes time. Hence, it is necessary that any capacity
development effort be planned as a long-haul journey.

Introducing the Issue

The first and most obvious definition of change management is that the term
refers to the task of managing change. Managing change is itself a term that has
at least two meanings.

One meaning of managing change refers to making changes in a planned and

managed or systematic fashion. External events may also necessitate
organizational change. Hence, the second meaning of managing change - the
response to changes over which an organization exercises little or no control.
Change Management is a structured approach for ensuring that changes are
thoroughly and smoothly implemented, and that the lasting benefits of
change are achieved. The focus is on the wider impacts of change, particularly
on people and how they, as individuals and teams, move from the current
situation to the new one.
Change Management enables employees to adopt a change so that business
objectives are realized. It is the bridge between solutions and results, and it is
fundamentally about people, and our collective role of transforming change into
successful outcomes for our organizations.

Change Management Principles

Change Management is the organised, systematic application of knowledge,
tools, and resources of change that provide organizations with a key process to
achieve their business strategy. No single methodology fits every organization
but there are a set of tools, practices and techniques that can be adapted to suit
a variety of situations.
Annex A gives a list of guiding principles for change management which can
help managers understand what to expect, how to manage their own personal
change and how to engage the whole organization in the process.

Change Management Models

Change models and processes that aim to change the culture of the organization
can be difficult to operationalise, because of the inherent difficulty in uncovering
the informal systems that guide peoples behaviour. Hence, using a mix of insider
knowledge and experience, with objective outsider (outside to the organization
undergoing change) expertise and facilitation is essential throughout the
process.
There are many models for change management: business schools offer
instruction in its theory and practice and consulting firms offer a variety of
services to facilitate change. This body of knowledge focuses on change within a
single small organization.
While there are many Change Management models, most organizations will
choose at least one of the following three models to operate under considering
the peculiarity of its organization;

Lewins Change Management model

McKinsey 7-S Model
Kotters 8 Step Change Model

Change Management Plan

The primary objective of organizational change management is to execute
strategy.
The reasons for change are as varied as the change itself: revenue growth,
improved efficiency, reduced costs, better product or service quality, reduced
risk exposure, improved output and so on. As the change evolves there is a need
for the transformation to be appropriately communicated to the key stakeholders
- internal and external. This enables them to buy-in, appreciate and support the
intended change as it evolves to facilitate an appreciation of the process.
This paper documents the necessary actions required to effectively manage the
on-going change.
For the purpose of structure and planning at this stage the Kotter Model is
exampled here. The reason is basically because the focus is on preparing and
accepting change not the actual change consequently transitions are easier with
this model. That said this could change once initial discussions, meetings etc
have taken place.
This model causes change to become a campaign, consequently employees buy
into the change after leaders convince them of the urgent need for change to
occur.
There are 8 steps involved in this model:

Increase the urgency for change.

Build a team dedicated to change.
Create the vision for change.
Communicate the need for change.
Empower staff with the ability to change.
Create short termshort-term goals.
Stay persistent.
Make the change permanent.

Full details of these steps are given in Annex B.

Identified Change Management Issues

Again this will become clearer over the next week but early discussions indicate
that the identified issues that necessitate a Change Management and
Communication strategy are basically centered on the on-going changes and are
not limited to the following aspects
OngOrganizational review;
On-going organizational changes;
Corporate goals and objectives;

 Communication issues;
Human Resource issues
Formulating a Change Management plan is the first critical step in implementing
a Change Management methodology. A well thought through plan will describe
how the change in the organization will impact the organization and the people
in it.

Managing the Environment of Change

This covers two main areas:

Creating the momentum for change including making the case, visioning,
empowerment and voicing activities. By definition, this step is for the
leadership to principally act upon.

Analysis of the change context including diagnosing issues of who benefits

and who doesndoesnt, social, cultural, legal and policy issues; data collection
and analysis; and operations research on problems.

Executing the change process: here an enabling role is foreseen again in two
areas:
-

Facilitation of change including building a change team and harnessing

champions, process consultation, decision-making methods, consensus
building, and brainstorming, all informed by factual information and
analysis.

Communications about change, including general meetings, various other

forms of two-way communications, and information dissemination.

Planning Phase
The planning phase is critical to the overall success of the initiative. Change
planning would normally address three areas - its content, the people and the
process.
Content
Content refers to what in the organization needs to change, strategy, structure,
systems, technology, business processes, products, services, and /or culture. It
describes the business solution being designed and implemented, and typically
gets the most attention from senior figures in the organization.
Changes can be formalised projects, strategic initiatives or even small
adjustments to how the organization operates. It is important to begin by being
clear on the change that is being introduced and what business outcome is
expected from the change.

People
The people component of the change strategy includes who will be affected?
What might peoples emotional reactions be to the change? How to address the
changes in behaviors, mindsets and culture that the future organization requires
and how to obtain commitment to change.
In doing this it is also important to consider:

What is the perceived need for this change among employees and managers?
How have past changes been managed?
Is there a shared vision for the organization?
How much change is going on right now?

It is important to develop a map of who in the organization is being impacted by

the change and how they are being impacted. Outlining the impacted groups and
showing how they will be impacted enables specific and customised plans later
in the change management process.
Process
The process component of the change strategy is to develop a high-level
roadmap to get the organization from where it is to where it needs to be to
achieve the desired results from the change. The process gets the organization
ready for success; moving fromthefrom the design of possible solutions through
to full realisation whilst attending to the people and cultural issues along the
way.
What's next?
Formulating the change management plan is the first critical step in
implementing a change management methodology. The plan provides direction
and results in informed decision making throughout the change process.
This brings the project or change to life, describing how it will impact the
organization and the people in it. The change management plan also contributes
to formulation of the rest of the change management plans. For instance, the
groups identified in the plan should each be addressed specifically in the
communication plan.
Each of the subsequent change management plans and activities are guided by
the findings in the original change management strategy.

Communication plan
Effective Development and Implementation of a Communication Plan
Effective Communication is at the core of Change Management. There is a need

for proactive communication to enable all stakeholders understand the processes

and transformations. This helps to avoid ambiguity that could result in resistance
to the ring fencing and unbundling initiative in the organization. Consequently, a
detailed Communication Plan that is timely and reaches the desired audience is
key.
Face-to-face communications is preferable in handling sensitive aspects of
organizational change management rather than written notices, which has been
found to be weak at conveying and developing understanding of the direction of
the organization.
However, basic information notices would greatly help with dissemination of
useful information. This could be in the form of a weekly printed onepager FAQ
information bulletin/news letters on the general direction of the organization for
all staff whichstaff, which could be placed on the work tables to ensure
accessibility and circulation.
Other ways to facilitating involvement by staff include holding workshops and
focus groups, which are very useful processes aimed at ensuring collective
understanding, developing approaches etc. Staff surveys are also a helpful way
to repair damage and mistrust among staff provided you allow people to
complete them anonymously, and follow through with their suggestions.

Next Steps
Whilst it is appreciated that the current review is a short project, the outcomes of
that will impact on the organisation for some time.
Formulating a change management plan should be the first critical step in
implementing a change management process. The plan can help provides
direction and result in informed decision making throughout the change process.
It will also help with future changes and plans.
This plan need not be lengthy or work intensive but should just highlight key
areas to consider. For example:
- Develop a Communication Plan to start communicating the change and the
project activity as soon as possible;
- Work with TNP2K to develop a clear strategy early in the process;
- Develop Key Milestones and short term goals;
- Creating a small Change Team to support the Senior Management Team;
- Be prepared for the unexpected be honest about the challenges and the risks;
and
- Ensure there is provision for regular review of the change management process.

Conclusion
Organizational changes and the management of those changes can be a

critical component for a successful organization. Attention is required to

understand what organizational changes may be required and their
impact to both the organizations and individuals. Understanding the
nature and scope of these changes enables the change management
team to more effectively plan, execute, and monitor their execution and
effectiveness.

Annex A

Change Management Principles

1. A clear vision of where the organization is going and a definition in

the form of strategic objectives andofand of how that vision will be
achieved.
This should be a clear and succinct representation of why the organization
exists. It is an opportunity to define who the organization is, what it does and
how the aims and objectives will be achieved. It should incorporate meaningful
and measurable criteria. It is important to be realistic about outcomes and the
time needed to change culture.
2. Address the human side systematically
Any significant transformation creates people issues. New leaders will join
the
organization, jobs will be changed, new skills and capabilities must be
developed, and
employees will be uncertain and resistant. Dealing with these
issues on a reactive,
case-by-case basis puts speed, morale, and results at
risk. A formal approach for
managing change, beginning with the
leadership team and then engaging key
stakeholders and leaders,
should be developed early, and adapted often as change moves through the
organization.
Generally people resist change only when it makes them feel out of control,
when change is imposed on them without any say in the process. People are
more likely to change if they understand and accept the reasons, and have a
say in the way their jobs are restructured.
3. Start at the top
Because change is inherently unsettling for people at all levels of an
organization, when it is on the horizon, all eyes will turn to the head of the
organization and the senior team for strength, support, and direction. The
leaders themselves must embrace the new approaches first, both to challenge
and to motivate the rest of the institution. They must speak with one voice
and model the desired behaviors. The senior team also needs to understand
that, although its public face may be one of unity, it, too, is composed of
individuals who are going through stressful times and need to be supported by
their superiors and / or their peers.
Senior teams that work well together are best positioned for success. They are
aligned and committed to the direction of change, understand the culture and
behaviors the changes intend to introduce, and can model those changes
themselves.
4. Involve every layer
As change programs progress they affect different levels of the organization.

Change efforts must include plans for identifying leaders throughout the
organization and pushing responsibility for design and implementation down,
so that change cascades through the organization. It is important to
encourage managers at all levels to help set the agenda, involve managers in
project teams and give managers the authority to act.

5. Make the formal case

Individuals will question to what extent change is needed, whether the
organization is headed in the right direction, and whether they want to commit
personally to making change happen. They will look to the leadership for
answers. The articulation of a formal case for change and the creation of a
written vision statement are invaluable opportunities to create or compel force
leadership-team alignment.
Three steps should be followed in developing the case: first, confront reality
and articulate a convincing need for change. Second, demonstrate that the
organization has a viable future and the leadership to get there. Finally,
provide a guide to behavior and decision-making. Leaders must then
customise this message for various internal audiences, describing the pending
change in terms that matter to the individuals.
6. Create ownership
Leaders of large change programs must over-perform during the
transformation and be the enthusiasts who create a critical mass among the
work force in favour of change. This requires more than mere buy-in or passive
agreement that the direction of change is acceptable. It demands ownership
by leaders willing to accept responsibility for making change happen in all of
the areas they influence or control. Ownership is often best created by
involving people in identifying problems and crafting solutions.
7. Communicate the message
Good communication is absolutely key to any change programme. Too often,
change managers make the mistake of believing that others understand the
issues, feel the need to change, and see the new direction as clearly as they
do. The best change programs reinforce core messages through regular,
timely advice that is both inspirational and practicable. Communications flow
in from the bottom and out from the top, and are targeted to provide all
employees the right information at the right time and to solicit their input and
feedback. Often this will require over-communication through multiple,
redundant channels.
It is important to clarify how change will affect people and what their new role
will be, then allow time and space for staff concerns to be aired. Provide
information as soon as possible and do not forget the power of the rumour
mill.

8. Understand the importance of the organizational culture

Successful change programs pick up speed and intensity as they cascade
down, making it critically important that leaders understand and account for
culture and behaviors at each level of the organization. Thorough cultural
diagnostics can assess organizational readiness to change, bring major
problems to the surface, identify conflicts, and define factors that can
recognise and influence sources of leadership and resistance. Leaders should
be explicit about the culture and underlying behaviours that will best support
the new organization.
9. Prepare for the unexpected
No change program goes completely according to plan. People react in
unexpected ways; areas of anticipated resistance fall away; and the external
environment shifts. Effectively managing change requires continual
reassessment of its impact and the organizations willingness and ability to
adopt the next wave of transformation. With a solid decision making process,
supported by quality information, change managers can then make the
adjustments necessary to maintain momentum and drive results.

10.

Speak to the Individual

Change is both a journey for the organization but also a very personal one.
People spend many hours each week at work; many think of their colleagues
as a second family. Individuals (or teams of individuals) need to know how
their work will change, what is expected of them during and after the change
program, how they will be measured, and what success or failure will mean for
them and those around them. Team leaders should be as honest and explicit
as possible. People will react to what they see and hear around them, and
need to be involved in the change process. It is important to manage the
expectations of staff.

Annex B
The 8 Step Change Model
Increase The Urgency for Change
There is a need for Management to make a case for change. Individuals will
question to what extent change is needed, whether the organization is headed in
the right direction, and whether they want to commit personally to making
change happen. They will look to the leadership for answers. The articulation of a
formal case for change and the creation of a written vision statement cannot be
over-emphasized.
Three steps should be followed in developing the case:

Confront reality and articulate a convincing need for change;

Demonstrate faith that the organization has a viable future and the leadership
to get there;
Provide a guide to behaviour and decision-making.

Build a Team Dedicated To Change

The employee does not have a responsibility to manage change;the employee's
responsibility is no other than to do theirbest, which is different for every person
and depends on a wide variety of factors (health, maturity, stability, experience,
personality, motivation, etc.).
Responsibility for managing change lies with management and executives of the
organization. The manager has a responsibility to facilitate and enable change,
and all that is implied within that statement, especially to understand the
situation from an objective standpoint (to 'step back', and be non-judgmental),
and then to help people understand reasons, aims, and ways of responding
positively according to employees' unique situations and capabilities.
Whilst it is important to involve staff at all levels in the change process it is also
important that momentum is maintained and that the change process moves
ahead. To maintain this balance, it is recommended that a Change Management
Committee be set up. This committee will act as an implementation team
comprised of key people from the organization.
The Change Management Committee will primarily have responsibility for:

Development of the Committees Terms of Reference

Roles and responsibilities

Development of an implementation plan which will include the selection of the

Change agents

Building and sustaining strong enthusiasm about the change.

Implementation of the communication strategy, ensuring high quality

consultation and communication with stakeholders on the benefits of the

change.

Organising and coordinating the overall change effort, liaising with the rest of
the organization and working to ensure that the change effort stays on
schedule and is sustained by on-going provision of resources and training.

Identify and nominate change agents. The key characteristics of a change

agent, amongst others, are:
-

Clarity of vision
Patience and persistence
Excellent communication skills
Ability to build good relationships

This group also continues to build and sustain strong enthusiasm about the
change. This includes having responsibility for the Communication Strategy,
ensuring high quality communication and consultation take place, reminding
everyone of why the change is occurring in the first place and the many benefits
that have come and will come from the change process.

Create The Vision For Change

A clear vision of where the organization is going and a definition, in the form of
strategic objectives, and of how that vision will be achieved is imperative.
This should be a clear and succinct representation of why the organization exists.
It is an opportunity to define aims and objectives of the organization and how
they will be achieved. It should incorporate meaningful and measurable criteria.
It is important to be realistic about outcomes and the time needed to change
culture. There is therefore an absolute need to agree on what the change will
achieve and when.

Communicate The Need for Change

Communication in any change process is absolutely key and thought needs to be
given to a communication strategy to ensure communication is appropriate,
effective, timely and reaches the appropriate people.
Too often, change managers make the mistake of believing that others
understand the issues, feel the need to change, and see the new direction as
clearly as they do. The best change programs reinforce core messages through
regular, timely advice that is both inspirational and practicable. Communications
flow in from the bottom and out from the top, and are targeted to provide all
employees the right information at the right time and to solicit their input and
feedback. Often this will require communication through multiple channels.
Communicate with imagination.

It is important to not 'sell' change to people as a way of accelerating 'agreement'

and implementation. When people listen to a senior management person 'selling'
them a change, staff may appear to accept what is being said, but quietly to
themselves they are likely to be thinking the opposite.
While communicating, it is important to clarify how change will affect people and
what the new roles will be then allow time and space for staff concerns to be
aired. Check that people affected by the change agree with, or at least
understand, the need for change, and have a chance to decide how the change
will be managed. Ensure they are involved in the planning and implementation of
the change. It is therefore important to provide information as soon as possible
to quench the power of the rumour mill.

Empower Staff With The Ability to Change

Change cannot be imposed and expected to succeed. People and teams need to
be empowered to find their own solutions and responses, with facilitation and
support from managers, and tolerance and compassion from the leaders and
executives.
Management and leadership style and behaviour are more important than clever
process and policy. Employees need to be able to trust the organization. It is
therefore important to engage and involve all employees through workshops and
other communication methods to enable them appreciate the imperative for the
change

Create Short Term Goals

To sustain a change effort over the long term, senior leadership and the change
management committee must generate short-term wins. Without some early
success, it is easy for people to believe that the change effort is only wishful
thinking.
A short-term win is an organizational improvement that can be implemented in
at least 6 to 18 months. An effective short-term win is not a gimmick. It is a
significant organizational improvement. A short-term win must meet three
criteria

Its success must be unambiguous

It must be visible throughout the organization
It must be clearly related to the change effort.

Generating short-term wins is necessary to prevent the loss of momentum and

keep the organization engaged. Short-term wins help eliminate organizational
discouragement with the slow pace of lasting major change. Short-term wins
also derail cynics and self interested resisters of change as the wins provide real
evidence about the validity of the change vision.

Stay Persistent

Managers must foster and encourage determination, persistence, and ongoing

progress reporting. This can be done by highlighting achievements, ensuring
successes are celebrated and that future milestones are communicated.
It is also important to analyse what worked and what didnt as well as developing
new goals to maintain and continue strong growth.

Make Change Permanent

The final stage requires continuous efforts to ensure that the change is seen in
every aspect of the organization. Continuous efforts will also confirm that the
changes are working and on track. Integrate new values within the culture,
recognise and promote support.

Tell success stories about the change process, and repeat other stories you
hear.
Explain the importance of change ideals and values when hiring and training.
Develop new policies and processes that reinforces the values of change.