Managing Organizational Change Managing Organizational Change DPS 51114 1802 Unit: 3 Presented by: Leanne Douglas Date: July 27, 2018 Managing Organizational Change MANAGING RESISTANCE Leanne.Douglas@MNP.ca 2 Managing Organizational Change Jerald Young’s Model of Resistance Logic-Based Resistance Emotion-Based Resistance Opposition: “I won’t do my part unless…” Resistance: “I won’t do my part even if…” Projects are faced with opposition and resistance – both must be managed 2003. Jerald Young, Me? Change? Not Now. Not Ever Leanne.Douglas@MNP.ca 3 What is emotion-based resistance? Managing Organizational Change A reaction to pressure to change • Fear of an unknown future • Loss of something good • Forced into a turning point Confusion Immediate criticism Denial Malicious compliance Sabotage Early agreement Deflection Silence What is an example of emotion-based resistance in action? Leanne.Douglas@MNP.ca 4 Managing Organizational Change What do we do about it? Logic-Based Resistance… Rational problem solving Emotion-Based Resistance… Facilitated exploration Answer questions Keep the focus on what’s real Engage in meaningful input Show confidence in the process Communicate often Balance empathy and performance – care without caring too much Leanne.Douglas@MNP.ca 5 Managing Organizational Change What do we do about it? Change Leader’s… Don’t Do View of resistance Insubordination ✓ Non-intentional or a puzzle to solve Attitude Frustrated, judgmental ✓ Open, accepting but motivated Goals Compliance with the change as planned ✓ Commitment to positive improvement Approach Logical problem solving only ✓ Logical problem solving plus expose and dissolve emotional responses Role Boss, problem-solver ✓ Helper, facilitator Rational problem solving Facilitated exploration Resistance doesn’t need to be feared and avoided… understanding it can provide valuable insights into project improvements and management tactics Leanne.Douglas@MNP.ca 6 Minimizing Resistance Managing Organizational Change • Focus 80% of your effort on the 80% who are ready or close to changing Willing and Eager to Change Cautious and Hesitant Refuse to Change Engage them as change agents and champions Keep them informed and build their involvement Ask them what they need to help them support the change 20% 60% 20% Use them to influence others Inform and engage them in the change to influence them Listen to concerns and address if possible Leanne.Douglas@MNP.ca 7 Assessing how people are responding to a specific change Managing Organizational Change General Change Questions: 1. Do you feel you are hearing enough 7. about the project? Who have you heard from and what have you heard? 2. What interests you most about the 8. project? 3. What are your key concerns? 4. What benefits to you see coming from this project? 9. 5. Where do you see room for improvement in how we do things today? 6. What changes, if any, would your like to see in our communication (how often and how we communicate)? Leanne.Douglas@MNP.ca How well did the change initiative go? What worked well and didn’t work well? What do you think of the idea behind this change? How comfortable are you with changing [scope of program]? How confident are you that things will be designed and implemented well? 8 Steven Covey’s Circle of Influence Circle of Concern Circle of Influence Managing Organizational Change Things you are worried about Things you can have some influence over Imagine that this course was moved to a building on Pembina, a one-hour bus ride away. What would be in your circle of concern? Circle of influence? Leanne.Douglas@MNP.ca 9 Steven Covey: Circles of Influence Managing Organizational Change https://www.youtube.com/watch?v=sH6OFrHA7rU Leanne.Douglas@MNP.ca 10 Managing Organizational Change ABOUT CHANGE LEADERSHIP Leanne.Douglas@MNP.ca 11 Change Leadership Managing Organizational Change “What the leader does is the single most important factor in demonstrating what is acceptable – and not acceptable – behaviour in our organizations” Kouzes, J. & Posner, B. (2011) Credibility: How Leaders Gain and Lose It, Why People Demand It. New York:Wiley People will know you are serious about the change and how to handle it when you walk the talk and demonstrate commitment. Leanne.Douglas@MNP.ca 12 A Leader’s Dual Role Preparing yourself for change Understanding Understandingchanges changes underway underwayand andyour yourrole role Adapting Adaptingto tochange changethat thatisis happening happeningto toyou you Developing Developingcompetencies competencies for formanaging managingchange change Leading employees through change Introducing Introducingchange changeto to your employees your employees Managing Managingemployees employees through throughthe thetransition transition Reinforcing Reinforcingand and celebrating celebratingsuccesses successes c Prosci Leanne.Douglas@MNP.ca Managing Organizational Change Be an advocate for the change, with the dual responsibilities of helping provide input into the change while supporting others through it. Introduce employees to the change, manage them through the transition, and reinforce and celebrate success 13 Leadership Game Rules Managing Organizational Change ✓ You can only move to a vacant square – can step past one other person to get there ✓ People facing in the same direction cannot pass each other ✓ You can only move forwards ✓ Only one person on a square at a time ✓ You can talk, but must stay in your square ✓ You can decide to reset if needed ✓ You may turn around when you reach the end of the line Leanne.Douglas@MNP.ca 14 Managing Organizational Change Debrief • What was it like to be in the middle? • What was it like to not be able to move to ‘test’ solutions? • For those who were disengaged, what was going on for you? • Was there any interaction between the two groups and what was that about? • What does this teach us about fostering good communication among and between groups? • What does this teach us about leadership and good leadership in times of change? Leanne.Douglas@MNP.ca 15 Managing Organizational Change CHANGE MANAGEMENT PLANNING HelpPath Case Study Leanne.Douglas@MNP.ca 16 Managing Organizational Change Build a Case for the Change A good case for change is… Truthful & Compelling Leanne.Douglas@MNP.ca Easy to understand Shows clear value to those impacted 17 Managing Organizational Change Build a Case for the Change Try to provide strong and clear responses to all of the following questions: ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ How do organizational leaders describe the vision for this change? What is the objective or purpose of the change? What will be different when the change is in place? What benefits is the change intended to achieve? Which of the benefits cannot be realized without employee adoption of the change (what benefits are dependent on employees changing their behaviour)? Who will be impacted by the change and how? How ready are stakeholders for the change? Why should people impacted by this change be excited by the change? What do stakeholders need to hear to get ready for the change? Leanne.Douglas@MNP.ca 18 Building a Strong Case for Change Managing Organizational Change OK… More compelling… We are redesigning our customers’ claims experience to ensure our customers have the best possible experience and know that we value their business and care about their situations. We are changing our First Notice of Loss processes so that we will provide customers with knowledgeable and trained adjusters, timely decisions, clear information and communication, efficient processes including straight-through financial processing. Customers will also have access to us 24/7, through the use of a new call centre vendor and by providing to claims information online. Our company’s claims experience will recognize that some customers are experiencing great stress and loss when they are reporting a claim to us. Our process will be designed to anticipate and adapt to our customer’s needs during this difficult time, rather than expecting the customer to adapt to our process. Leanne.Douglas@MNP.ca When customers first report a loss to us, they should feel confident that they are being taken care of. They should feel heard and know that our company ‘has their back’. Our customer’s first interaction with Company X Claims must instill confidence in our staff and in our claims process, to reduce their stress and uncertainty. If it also enhances the customer’s acceptance of our adjudication and settlement decisions, then all the better, but our priority, first and foremost, is to ensure our customers feel cared for. 19 Building a Strong Case for Change Managing Organizational Change OK… More compelling… Through this initiative, we will shift away from multiple systems and inconsistent manual processes which are inefficient and costly. By implementing a new ERP, we will be able to reduce effort for data manipulation and increase information clarity between stakeholders, while also improving the ease of day-to-day work for the organization. The system will also accelerate the Company’s capacity for higher value analytics and decision support. • Focus on people: design solutions that make work easier and align with our culture • Drive shareholder value: seek to achieve competitive advantage and increase business value • Empower better decision making: unlock value through meaningful information and insight • Treat data like an asset: align to one source of truth and touch data once • Standardize and simplify: allow complexity only when a clear business case supports it • Maintain license to operate: at all costs, avoid jeopardizing our license to operate • Remove historical customs: challenge all aspects of the status quo. Nothing is off the table. Leanne.Douglas@MNP.ca 20 Managing Organizational Change Write a Case for Change • Write a short case for change for the HelpPath initiative Leanne.Douglas@MNP.ca 21 Managing Organizational Change Assess the impacts of the change on people readiness Impact Assessment Impact 1 Impact 3 Impact 5 Stakeholder Group A Impact 6 Impact 7 Messaging Characteristics Resistance Management Plan Impact 2 Stakeholder Group B Communication Plan Stakeholder Group C Stakeholder Group D Training needs Training Plan Leanne.Douglas@MNP.ca 22 Managing Organizational Change Assess the impacts of the change on people readiness Technology Process People Change Overall Change Impact Change Category People Impacts Process Impacts Technology Impacts 1-3 Training Resistance Mgmt Sponsorship Engagement Communication Change Strategies Key Change Strategies Descriptions ✓ Leanne.Douglas@MNP.ca 23 Stakeholder Analysis Managing Organizational Change • Change impact: generally, how the group will be impacted by the project for which you are doing change management • Success criteria: how this group would define success for the project • Key challenges: primary ways in which this group might be negatively impacted by the change or barriers that the project might face in working to get this group to adopt the change • Commitment: a rating of the group’s Current and Required levels of commitment (such as high, medium, or low) • Influence or Impact on the Project: a description of the influence that this group has on the success of the project, which can include their level of influence on other stakeholders as well as on the actual design and implementation of the change Leanne.Douglas@MNP.ca 24 Sample Stakeholder Analysis Success Criteria Group (in the eyes of the stakeholders) Auto Will be able to see No more driving Appraisers what claims they time than their have been current territories dispatched to require; no (or very through Mitchell few) schedule accessible on their changes during the mobile phones; day; ability to go appraisal schedules straight to first will be available appointment from one-day ahead, with home a map for finding all appraisal locations; territories will change Impact of the Change Leanne.Douglas@MNP.ca Anticipated Change Management Challenges Larger territories will require more driving time for most appraisers; group is not strong with using new technology Managing Organizational Change Stakeholder Influence on Project Success Have little to no influence on success of the new dispatching process, but have the ability to impact client experience if they don’t follow-through properly on what is dispatched to them Current Required Commit- Commitment ment Medium High 25 Managing Organizational Change Complete the Stakeholder Analysis • Choose a stakeholder group from the case study ❑ Managers ❑ Supervisors ❑ Community Health Workers ❑ Administrative Support ❑ Information Technology • Complete the stakeholder analysis for your group Leanne.Douglas@MNP.ca 26 Impact Assessment Managing Organizational Change • Overall Change impact: a general description of how the change will impact people • Change category: an indication of whether the change affects roles and responsibilities (the People changes), processes, policies and work tools (the Process changes), or technology. Any given change could have an impact one or more of these categories. To be informative, rather than simply indicating which change categories apply, you can also rate the degree to which the change impacts each category (for example, High impact on People, Low impact on Processes, and Low impact on Technology) • People Impacts: a listing of the ways in which the change will be impacting people’s roles, responsibilities, organizational culture, and performance management Leanne.Douglas@MNP.ca 27 Impact Assessment Managing Organizational Change • Process Impacts: a listing of the ways in which the change will impact business processes • Technology Impacts: a listing of the ways in which the change will impact technology • Change Strategies: an indication of which types of change management strategies will be needed to address the impacts of the change • Key Change Strategies Description: a brief description of the change management strategies that will be planned to address this aspect of the change (for example, “Weekly conference calls with all leaders to provide project updates”) Leanne.Douglas@MNP.ca 28 Sample Impact Assessment Change Category People Process Technology What is Changing Overall Change Impact People Impacts (e.g. staffing, roles, skills, structures, culture, training) Most regions have a dispatch role in place; the change is addition of dispatch for internal assignments (dispatch is already done for IAs) New Dispatch function Managing Organizational Change Process Impacts Technology Impacts Mitchell WorkCenter will default to an appraisal resource for each claim based on staff capacity, Appraisers will receive proximity, skill set, and schedule, map and suggested time frame requirements driving route Assignment to Direct Phase 1 = users will Repair Shops will skip the Appraisers will need to contact manually schedule High X X X dispatcher the customer to notify that they appointments; Phase 3 are coming = intelligent scheduler Field appraisers will rarely with user intervention need to come into the office Consistent dispatching process required only for (the size of this change will be used across all regions exceptions varies region by region) Appraisal appointments can be FNOL staff will schedule made during FNOL appointments Leanne.Douglas@MNP.ca Appraisers will no longer be able to select their own assignments 29 Sample Impact Assessment Managing Organizational Change Training Resistance Mgmt Leadership Engagement What is changing Communication People Readiness Communication Needs • • • Introduction of a Dispatch function X X X X • • Leanne.Douglas@MNP.ca Communicate to Appraisers the new dispatch process (key message = they cannot self-assign appraisals); Communicate the multi-phased roll-out: phase 1 = manual dispatch, and phase 3 = automated dispatch with confirmation; Engage regional leadership engagement in dispatch role assignment, territory definition and system’s workload management rules Train Appraisers in new dispatch process in Mitchell WorkCenter (note, training for independent appraisers will be provided by Mitchell); Train FNOL staff on appraisal appointments (deliver during training related to other FNOL changes) 30 Managing Organizational Change Complete the Impact Analysis • Choose one change associated with the HelpPath project ❑ Workflow management ❑ Financial management ❑ CasePath ❑ Supervisor portal ❑ User-friendly interface • Complete the impact analysis for that change Leanne.Douglas@MNP.ca 31 Managing Organizational Change PANEL DISCUSSION Prep Leanne.Douglas@MNP.ca 32 Managing Organizational Change Panelists Adam Gerhard Harold Thompson Director of Strategy & Planning, Recently retired civil servant University of Manitoba IT Over 30 years experience in public policy University of Winnipeg Board of development in the Manitoba Civil Service. Regents Recent project and policy experience include: • Developing and implementing policy and Has a background in IT organizational roadmaps for the Manitoba consulting and HR leadership at Mineral Resource Development Division of Executive level Manitoba Growth, Enterprise and Trade. Has been witness to and has • Developing succession plans for policy and had to implement many business development departmental workplace changes functions. • Preparing for and participating in policy development discussions re: the legalization of cannabis in Manitoba. Leanne.Douglas@MNP.ca 33 Managing Organizational Change Panel Prep We need: • Two questions to ask panelists in advance (today) • Additional questions to be asked during class • Facilitator(s) for the panel discussion Leanne.Douglas@MNP.ca 34 Managing Organizational Change WORKSHOP PREP TIME Leanne.Douglas@MNP.ca 35 Managing Organizational Change NEXT CLASS Leanne.Douglas@MNP.ca 36 For Next Class… Managing Organizational Change • Bring questions on Change Management Plans – We will work on the Change Management Activities, and will do some brainstorming together • Prepare for Panel Discussion Leanne.Douglas@MNP.ca 37