Healthcare Financial
Management Association
LEADING CHANGE
If you forget everything else, please
remember…
“People don’t resist change,
they resist being changed.”
- Peter Senge
The Business Case for Leading Change
66% of change/improvement initiatives fail or worse,
create a new set of problems
Source: Deloitte
82% of survey respondents identified change management
as a priority for their company
99% expect an increased need for change management
over the next three years
Source: The Conference Board, Effective Change in Business
Enterprises
The Greatest Obstacles to Change
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Employee resistance
Middle-management resistance
Poor executive sponsorship
Limited time, budget and resources
Corporate inertia and politics
Source: Prosci Benchmarking Report,
over multiple years - same results
Discussion
What’s your role
in leading change?
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Introductory Exercise
Your Signature Please…..
Comfort Zone
Change Means Changing Productive
Habits
 Work habits are patterns that run our lives
 These habits take the pressure off of needing to
consciously control every aspect of daily life
 Change very often disrupts our work habits
 Stopping a work habit means we all go back to zero
 Forming new habits takes repetition, constructive
feedback, recognition and patience
New Habits Equal Loss of Control
Discussion Questions:
How could you restore a sense of
control?
Why would you want to do that?
Individual Model
Choosing Engagement Over Installation
Discussion Question:
Isn’t simply telling people to do
things enough?
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Too Much Going On?
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Change Saturation
• Two thirds of organizations indicated
their organization was nearing, at or
past the point of change saturation
• 76% expect an increase in the amount
of change over the next 2 years
-2009 Best Practices in Change Management, Prosci
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Individual Symptoms
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Disengagement, apathy, indifference
Burn out & fatigue
Anxiety & stress
Confusion
More Complaints
Frustration, anger, feeling overwhelmed
Cynicism & skepticism
-2009 Best Practices in Change Management, Prosci
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Coping Techniques
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Involve people early, often
Establish & communicate priorities
Improve communications, key stakeholders
Celebrate & reward success, early adapters
Clearly demonstrate why change is needed, data
Reinforce change is constant, “it’s our new normal”
Create saturation appreciation
Help people prioritize
Execute appetite control
Eliminate the “nice to have, focus on the must to
have”
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Portfolio Management
• One third of organizations kept an
inventory or list of all changes underway
• 24% had a structured process for
managing the portfolio of change
-2009 Best Practices in Change Management, Prosci
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Effective Project Management Practices
Many change efforts were compromised because people did
not use common tools associated with effective project
management:
 A poorly prepared scope document, little input
 Poor effort estimates and duration calculations
 Poor resource planning
 A schedule created in isolation from other initiatives
(saturation)
 Ineffective team
 Lack of proactive communication, insufficient redundancies
 Poor engagement of stakeholders
“Every change is a project and every project requires a plan”
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“Washing Hands”
Six Sources
of
Influence
– Vital Smarts
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Six Sources of Influence
1.
Make the Undesirable Desirable
2.
Over Invest in Skill Building
3.
Harness Peer Pressure
4.
Find Strength in Numbers
5.
Design Rewards & Demand Accountability
6.
Change the Environment
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Stakeholder Analysis
A simple tool to understand key
stakeholders and their needs –
See the handout as identified by
the facilitator
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Communications Planning
Develop an executable plan to
reinforce key messages with
stakeholders – See the handout as
identified by your facilitator
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What is Resistance?
“Resistance is the push-back one experiences when
trying to change or improve a process or system.”
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Working with Resistance
Skillful leaders manage resistance by:
– Identifying resistance when it is taking place
– Viewing resistance as an appropriate and
normal part of the process
– Clarify the existence of resistance, and
discussing it candidly and with tact
– Use facilitation to move the dialogue forward
– Support other’s attempts to explore and
express resistance
– Not taking resistance personally
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Where Should You Spend Your Time?
Pioneers
Thundering Herd
CAVE Dwellers
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“The Tipping Point”
Key Concept:
10% - 20%
adoption is the
heart of the
diffusion process,
after which it is
often impossible
to stop a new idea
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Key Ideas for Leaders
Proactive involvement/engagement
It’s about changing habits
People change at different rates
It’s not about telling or talking louder
It’s about helping people with priorities
It involves effective project planning and plans
It involves use of strategies to influence stakeholders
It’s about communication processes on overdrive
It involves working effectively with resistance
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Check-Out
Share with the person next to you:
What is one thing that really struck
you today about leading change?
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