Preparing For and Managing Change in Times of
Transition
May 7, 2008
© Grant Thornton LLP. All rights reserved.
Session Overview
• Objective
• Panel Discussion
– The story thus far…
• Change Management Defined
• Goals of Change Management
• Challenges of Change
• The Wheel of Change Framework
• Panel Discussion
– The story thus far…
• Conclusion
• Questions and Answers
Objective
Drawing on the principles of change management to
execute and sustain priorities
• The impending Presidential election is likely to bring
change
– New priorities
– New initiatives
• This is likely to affect current initiatives and projects
– Leadership support
– Resources
• How can you use the principles of change management to
execute and sustain your projects and priorities?
The story thus far…
• Department of Defense
• US House of
Representatives
– Business Transformation
– A new leadership team
The change and its challenges
Change management defined
• The set of proactive processes, tools and
techniques used to lead and manage the "peopleside" of organizational change resulting from the
introduction and implementation of new policies,
initiatives, systems, etc
Goals of change management
• Assemble active advocacy for change
• Communicate effectively and make data,
information, and knowledge readily accessible to
all of our stakeholders
• Increase organizational capability through
individual training and education
• Meet our business drivers to yield their benefit
• Embed widespread use of new ways of working
and accountability for change into the institution
The challenges of change
Barriers to implementing Federal financial executive
priorities*
*AGA Annual CFO Survey June 2007 Scoring Financial Management & Oversight Efforts
Top Priorities
• Clean Audit Opinion
Barriers
Systems
• Internal Controls
• Budget Formulation and
Execution
Human
Capital
• Strategic Decision Making
• Financial Management
System
• Cost and Performance
Management
Culture
Funding
The challenges of change
Three out of four change programs fail because of
people
Top 5 Obstacles
Top 5 Success Factors
• Employee resistance at all
levels
• Middle-management
resistance
• Poor executive sponsorship
• Limited time, budget, and
resources
• Corporate inertia and politics
•Effective and strong executive
sponsorship
•Buy-in from front line managers and
employees
•Exceptional teams
•Continuous and targeted
communication
•Planned and organized approach
Results From 288 organizations in 51 countries
Source: Prosci 2003 "Best Practices in Change Management"
A framework for change
We build commitment through the Wheel of Change
Framework
C
m
O
rg
A an
lig iz
nm ati
o
en na
t l
om
e
itt
d
a
Le
r
de
Leaders articulate,
empower, and
sustain change
ip
sh
Change is
aligned strategy
and people
Effective
Text
Measurement
dy
ea n
R io
e at
ng niz
ha ga
r
O
In Int
fr e g
as r
tr a te
uc d
tu
re
C
Organization is
ready, able and
willing to change
Progress through change
can be measured
Processes,
systems, and
people practices
support change
Conclusion
Successful change is proactively planned,
consistently managed and is a joint responsibility
The Project Sponsor, Project Manager, and Change
Manager work together in leading successful change
Provides project leadership, support,
and galvanizes key stakeholders
Project
Sponsor
Manages the
people involved
in and impacted
by the project
Project
Leadership
Change
Manager
Project
Manager
Manages the dayto-day project
schedule, team,
and budget
Questions and Answers
What questions do you have for the panel?
Thank You…Please contact us if you have additional
questions
• Darlene Meister
– Darlene.Meister@mail.house.gov
•
Tom Modly
– Thomas.Modly@us.pwc.com
– Karen Shrum
– Karen.Shrum@gt.com