How To Guide

Enabling Enterprise Change Management

Executive Summary:

This report has been designed to provide practical advice for maximizing
opportunity and reducing risk for change initiatives.

Use this brief 7-page Best Practices Report to learn:

 Definition of Change Management

 Four Key Types of Organizational Change

 Requirements for Effecting Change

 Gathering Buy-in from Key Stakeholders

 Change Management Best Practices

 Change Management Tools & Techniques

Read this report to understand why many change management efforts

fail, and to learn best practices for effective change.

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Table of Contents Page

Change Management Defined 3

Four Key Types of Organizational Change 3

Requirements for Effecting Change 4

Gathering Buy-in from Key Stakeholders 5

Change Management Best Practices 6

Change Management Tools & Techniques 7

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Change Management Defined

Organizational change provides the opportunity for organizations to

build more focused, disciplined, and mature businesses. This opportunity
comes with significant financial risk if changes are not planned and
managed proactively.

Change management is primarily concerned with how to understand,

engage, respond, and communicate with PEOPLE. A solid vision, senior
management sponsorship, and having the right people in the right roles,
are the key success factors for implementing a successful change
management campaign.

Four Key Types of Organizational Change

There are four key types of organizational change:

1. Process Change - these focus on how workflows are managed

with an effort to streamline business processes to increase
efficiencies, reduce costs, and improve quality. For example,
changing accounting systems and processes.

2. Structural Change - these focus on changing organizational

structures such as reporting relationships, mergers &
acquisitions, and centralization initiatives. Normally, these
changes are top-down and geared to improve the overall financial
performance of a business.

3. Cost Containment - these changes are focused on eliminating

any costs that are not essential for operation. Typically, cost
containment initiatives are the result of a tight economy for a
particular industry or poor sales results.

4. Cultural Change - as organizations move from a product-centric

business to a customer-centric enterprise, changes to
organizational norms and attitudes must be made.

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Requirements for Effecting Change

Use our Change Management Readiness Assessment to ensure you are

prepared for change. Before embarking on a major change initiative,
ensure your organization has considered these key requirements:

1. Senior Management Sponsorship - it is essential that a senior

leader who is capable of communicating the strategic vision for
the change has accepted responsibility for the effort. This leader
must have access to all critical stakeholders, and have solid
project management skills. Use our Stakeholder Analysis Matrix
to evaluate key stakeholders willingness to change.

2. Educated and Engaged Employees - employees must:

understand why the change needs to occur; be involved in the
planning & implementation of the change; be capable of
participating in the change effort; and help others adapt.

3. Alignment of Business & Personal Objectives - it is critical

that you positively reinforce the change by aligning business
objectives with personal objectives for each employees,
manager, and senior executive. For example, link performance
reviews and bonus structures to metrics associated with the
goals & objectives of the new programs.

Ensuring that your change effort is aligned with the overall business
strategy, links directly to employee career objectives, and is managed
by a senior sponsor, will provide a solid foundation for implementing
successful programs. Use our Stakeholder Analysis Matrix to evaluate
key stakeholders willingness to change.

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Gathering Buy-in From Key Stakeholders

It is safe to assume that the majority of your staff will NOT be

evangelists of the proposed change. In most cases, senior management
view change as an opportunity for the organization and for themselves.
Conversely, change is often seen as disruptive, unnecessary, and
frightening for employees.

Research indicates that less than 20% of your employees will

immediately recognize the need and value of the change, 50% will be sit
on the fence, and around 30% will not initially be supportive of the
change.

Similar to government politics, your goal is to leverage the supportive

20% to influence the 50% majority, while minimizing the influence of
the 30% who are likely to never agree with the change.

Following are a few tips from Cynthia Scott and Dennis Jaffe who are
regarded as experts in the change management field:

1. Have a Good Reason for the Change

2. Involve People in the Change
3. Put a Respected Person in Charge of the Process
4. Create Transition Management Teams
5. Provide Training in New Values & Behavior
6. Bring in Help from Outside if Necessary
7. Establish Symbols of Change
8. Acknowledge & Reward People

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Change Management Best Practices

1. Establish the Need for Change - build momentum and

urgency for the change by examining market conditions and
competitive forces. Identify risks, potential crises, and
opportunities for adapting the organization to the situation. Use
our Change Management Readiness Assessment to
examine your organizations readiness for change.

2. Work from a Steering Committee - create a cross-functional

steering committee that has the power to invoke the changes
that need to be made. This inter-departmental team must quickly
gel and check their egos at the door.

3. Develop a Vision & Strategy - use a project plan to articulate

how the change will be managed. Communicate the vision of the
goal-state, and devise strategies to accomplish the desired
outcomes and objectives.

4. Reinforce the Change Vision - use all channels to

communicate the vision. Create signs, slogans, and team
charters. Communicate updates on your intranet, via email, and
during staff meetings on a regular basis.

5. Empower your Employees - clear any obstacles to achieving

the vision; change structures or systems that obstruct the
required change; encourage risk-taking and non-traditional
ideas, activities, and actions.

6. Generate Short-Term Wins - plan and monitor visible

improvements in performance (wins). When small achievements
are made, recognize your employees in front of their colleagues
and peers.

7. Consolidate Gains & Produce More Change - use increased

credibility from short-term wins to change all systems, policies,
and structures that don’t fit with the transformational vision.
Hire, promote, and develop people who are agents of positive
change. Reinvigorate the change program with new projects,
themes, and change agents.

8. Anchor New Approaches in the Culture - improve

performance by adopting a more customer-centric, and
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productivity-oriented behavior. Articulate connections between

new behaviors and organizational success. Develop effective
leadership and succession processes.

Change Management Tools & Techniques

Use our Change Management Planning Tool to assess your

organizations readiness for implementing a major change initiative. This
tool will ensure you have a sufficiently powerful sponsor, and the means
to enable successful change programs. You should also use our Change
Management Strategy Scorecard to document change objectives,
initiatives, measures, and targets, for the next 12-18 months. A project
portfolio can also be helpful in documenting roll out for change
initiatives.

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