Change
Management
change management as the number
Prepared for the U.S.
Department of State
Digital Video Conference for
New Zealand Institute of
Management, 18 June 2004
companies in this study complained they
one obstacle to success. Few, if any,
lacked creative employees, good coaches,
financial analysis skills, project
Jeff Hiatt – Founder, Change Management Learning
Center and author of the new book, Change
Management: the people side of change
management skills, strategy development
capabilities, marketing talent or the
ability to create a vision for the future.
Based on research by the Change
Too often they could create the solution
Management Learning Center over
but could not effectively implement the
the last eight years, change
change. They experienced employee
competency – the ability to lead
resistance, productivity loss, turnover,
change – is a leadership skill missing
schedule delays and cost overruns. In
in many business managers.
some cases, the changes failed completely.
The success and growth of business
What is change management? Change
managers is often measured by their basic
management is applying techniques
understanding of the mechanics of
and tools to manage the people-side
business management, covering finance
of change to achieve the desired
and accounting, supervisory and coaching
results with minimal disruption or
skills, time management, organizational
negative side effects.
design, marketing and sales. As business
schools focus more on the tactics and
A simple and straightforward model to
strategies of business management,
understand what it means to manage the
graduates sometimes lack the necessary
®
people-side of change is ADKAR .2 The
understanding of human nature,
ADKAR model is a results-oriented
philosophy and psychology that would
framework reflects the sequence and
enable them to lead the people-side of
building blocks for managing change
change and become leaders both in
including:
business and in their communities.
Is this trend visible in business
today? In a study1 with more than 300
companies involved in major change,
study participants cited the lack of
1
•
Awareness of the need for change.
•
Desire to participate in the change.
•
Knowledge about how to change.
•
Ability to implement the change.
2
Best Practices in Business Process Reengineering,
Benchmarking Report, Prosci, 2002.
Hiatt, J. M., The Perfect Change, Prosci Research,
1999.
1
Copyright 2004. Prosci. All rights reserved
•
Reinforcement to sustain the
This inalienable right or natural right of
change.
mankind is often called free will, liberty or
freedom.
Let’s briefly examine each element of the
model.
When employees are asked to change,
If I were to ask you to move your
we are really asking them to change
office to the other side of the
how they work and what they do.
building, what is your first question?
When faced with change most people
Their “free will” asserts itself in the
first ask “Why?” As human beings, we
simple question, “Why?” It is our nature
have an awareness of our surroundings
as free and independent thinking
and how changes will affect us. Along with
individuals to become aware of the reason
this awareness of our surroundings, we
a change is needed so that we can
have what some have called inalienable
determine the impact the change will have
rights or natural rights of mankind
on us.
related to choices we make.
Building this awareness of the need for
"Under the law of nature, all men are
change is the first and foremost
born free, every one comes into the
responsibility of a business leader who
world with a right to his own person,
chooses to lead change. Building
which includes the liberty of moving
awareness includes sharing why the
and using it at his own will. This is
change is necessary, what created a need
what is called personal liberty." --
for change, what is the risk of not
Thomas Jefferson: Legal Argument,
changing, and what might happen if a
1770. FE 1:376
change is not made.
"…all men are naturally in…a state of
What is your reaction to pressure to
perfect freedom to order their actions
change when you lack awareness of
and dispose of their possessions and
why the change is needed? Is it
persons as they think fit, within the
resistance, an urge to fight back, or
bounds of the law of nature, without
perhaps to ignore the change?
asking leave or depending upon the
will of any other man." John Locke,
What we often interpret in employees as
The Second Treatise of Government
apathy, unwillingness to change, or a rigid
culture is often nothing more than their
inherent reaction to pressure to change
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Copyright 2004. Prosci. All rights reserved
without awareness. We each have to
•
Imminent negative consequences
evaluate the situation for ourselves and
•
Loss of status or social standing
make our own decisions as to how we will
•
Discontent with the current state
participate in change.
•
Risk of job loss
Awareness of the reason for change is
Can you force change without the
the first element of the ADKAR
awareness and desire of those subject
model. The second building block is
to the change?
the outward expression of free will as
reflected in a person’s desire to
The answer is yes. Can this be achieved
change.
without consequence? The answer is
typically no. The consequences as
We demonstrate free will through our
demonstrated in repeated studies within
individual choices and decisions. A
private business and the public sector are:
business manager faces a unique
challenge when it comes to leading the
•
Strong employee resistance
people-side of change. That challenge is
•
Delayed or failed changes
creating a desire to participate or
•
Drop in productivity below critical
support the change.
thresholds
•
Turnover of valued employees
A business leader’s greatest challenge is to
•
Negative impact on customers
create and demonstrate the necessary
•
Loss of respect and trust in leadership
motivating factors that result in
employees choosing to support the change.
These consequences directly translate to
These include a complete spectrum of
higher costs, lower revenues and poor
factors that can influence an employee’s
customer service – exactly the opposite of
choices. In order from positive-to-negative
what we teach MBA’s and business
factors to change, they include:
leaders to achieve.
•
Hope in the future state
Effective leaders of the people-side of
•
Trust and respect for leadership
change recognize this basic human
•
Incentives or compensation
truth around free will and freedom of
•
Acquisition of power or position
choice.
•
Career advancement
•
Affiliation and sense of belonging
They begin every change by building
•
Enhanced job security
awareness of the need for change and
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creating a desire to support and
understand what is changing, what the
participate in the change. Awareness and
future will look like, how to change, and
desire are the first two elements of the
how I, as an individual, will fit into the
ADKAR model.
change.
It is important to remember that
Especially in a time of change,
managers and business leaders have
knowledge is power. How that power
direct control over awareness, and only
is used reflects the current values
indirect influence over an employee’s
and culture of an organization.
desire to change.
Open and forthright management styles
When awareness and desire to change
foster the sharing of knowledge and
are present, the acquisition of
encourage employee participation. Tightly
knowledge is the next highest
controlled, strongly hierarchical
priority.
management structures tend to keep
information close to the vest and minimize
Knowledge and learning are universal.
employee participation in the decision-
You’ll be surprised to hear that the fastest
making process.
growth in Internet usage is among adults
55 and older. Why? In many cases, the
The consequences of withholding
required changes relate to improving
knowledge can be lack of buy-in, distrust
health and changing lifestyles. The
and resistance from employees.
Internet provides a knowledge base that
exceeds anything we have ever had before.
Employees, for the most part, want to
The quest for knowledge is timeless and
contribute to the organization to
ageless. Communication, in some cases,
which they belong. This need to make a
cannot come fast enough. “When, what,
meaningful contribution is inherent in our
where and how” – these are the urgent
desire to realize purpose in our lives and
and compelling questions that drive a
in our work.
thirst for knowledge about how to
When change is taking place, what follows
change.
knowledge is the ability to act on new
This thirst for knowledge includes
information and effectively contribute in
training and education programs, ongoing
the changing environment. This may be
communication and ready-access to
accomplished by applying new skills and
information. This knowledge is critical to
knowledge to a new tool or system, by
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Copyright 2004. Prosci. All rights reserved
following a new process or procedure, or
successful efforts of implementing change.
by adopting new values. Ability is the
This could range from a personal
extension of knowledge into an action or
expression of thanks and recognition for a
behavior in support of the future state of
job well done to organization-wide
the change.
celebrations of major change milestones.
Leaders of change can foster ability
In the absence of reinforcement,
through coaching, mentoring and
employees will revert back to old
ongoing feedback processes to
behavior.
employees.
Leaders of change must understand that
Employees will need help breaking old
change is difficult and takes time. If this
habits and developing new skills. This
effort is not rewarded, then the overall
process takes time and requires patient
process of change is not cemented into the
and constant leadership. In some cases,
organization and employees will revert
barriers to ability may be physical or
back to old behaviors. This is especially
psychological challenges. In some cases
true when problems are encountered
these challenges may be overcome, and in
during the change that do not match what
others they may not. Not every person can
employees were taught in training.
develop the required abilities of the new
Individual reinforcement and overall
environment.
celebration of successes are essential
ingredients of the change process.
Ability follows knowledge as the fourth
Reinforcement represents the final
element of the ADKAR model.
element of the ADKAR model.
The final component in the ADKAR
The ADKAR model has endured and
model is reinforcement. Our need for
become one of the most requested
recognition and appreciation is a
models for managing change from the
companion to our need to contribute
Change Management Learning
and to feel a sense of
Center.
accomplishment. People want to be
appreciated and recognized for the
This model strikes a chord that relates to
value they provide.
several basic human truths about people.
Awareness and Desire are requirements
Reinforcement is providing the
to satisfy the inalienable right that “I am
recognition and appreciation to reward the
in control of myself,” and that my free will
5
Copyright 2004. Prosci. All rights reserved
and right to choose are inherent in my
Change management is the
value of self. The quest for Knowledge is
systematic application of these tools
shared in every culture and at every age,
by leaders in the public and private
and represents the primary force that
sectors to realize successful change.
distinguishes us from the other creatures
What steps can you take to build
on this earth. Ability reflects our need to
change management competency in
make a meaningful contribution, both at
your business leaders?
work and home, and to apply our
1. Build awareness of the need for
knowledge for the good of others. This
contribution enhances our perception of
change management within your
value and self-worth. Reinforcement is
organization and with your clients.
2. Communicate the benefits of
the fundamental human need to be
wanted and appreciated. Recognition and
effectively managing change to the
acknowledgement of our contribution
organization and create a desire to
completes the cycle.
build change competency.
3. Procure basic reading material for
your organization or organize
So what is change management?
structured training in the area of
Change management is the effective
change management to increase
application of leadership tools to
knowledge in this area.
4. Begin to use change management on
facilitate employees to achieve each
your change projects.
element of the ADKAR model, so
5. Celebrate successes and recognize the
business results are realized with a
minimum amount of disruption to the
accomplishments of your business
business (see diagram in Appendix A).
leaders.
Suggested resources:
Change Management: the people side of
change (18.95)
Employee’s Survival Guide to Change
($14.95)
These leadership tools include:
•
Communications
•
Training
•
Coaching
•
Sponsorship
•
Resistance management
•
Reward and recognition
For advanced materials:
Change Management Toolkit ($349)
Change Management Pilot ($449)
Go to: www.change-management.com
for more information.
6
Copyright 2004. Prosci. All rights reserved
Appendix A
Mapping of Change Management Tools to ADKAR Model
For more information see the complete ADKAR series at:
www.change-management.com/tutorials.htm
Change
management
tools
ADKAR
phases of
change
Communications
Awareness
Sponsor roadmap
Desire
Training
Knowledge
Resistance mgmt
Ability
Coaching
Reinforcement
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Copyright 2004. Prosci. All rights reserved