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Research has shown that 70% of all transformation initiatives fail because the people-
related aspects are poorly addressed or altogether neglected
Inadequate communications and a lack of stakeholder comprehension often lead to
increased risk, poor performance, and increased time to transition,
resulting in wasted time and dollars

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The Kubler-Ross model describes typical responses to grief which have been applied
to understanding change on an individual level and in the workplace.

Transformation Execution Phases

- During phase 1, its important to fight fear and denial with information. An informed
stakeholder has a greater sense of control. A greater sense of control leads to less
resistance to the change.

- Before things get better, they get worse, in terms of productivity and job
satisfaction. The downturn in productivity will continue until workers master the new
learning curve. During phase 2, management must reward early adopters

- Breakthrough is only achieved after the workers have obtained significant levels of
confidence, security, and new skills.

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Kurt Lewin wrote that "An issue is held in balance by the interaction of two opposing
sets of forces - those seeking to promote change (driving forces) and those
attempting to maintain the status quo (restraining forces)".

There will always be driving forces that make change attractive to people, and
restraining forces that work to keep things as they are.

Successful change is achieved by either strengthening the driving forces or weakening

the restraining forces.

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Not everybody accept changes at the same pace. Most of people will wait and see
or be skeptical about the benefits of changing.
A good practice in managing resistance is to identify its root-causes, and to engage
first the innovators and early adopters, that can act as ambassadors of change.

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An effective transformation program starts with a good planning, followed by a
careful implementation, and is sustained overtime through reinforcement from a well
designed Performance Management System. Even before the planning phase starts, a
deep comprehension of the corporates situation and business direction is absolutely
necessary.

- Understanding the corporate goals fully is the first step in any transformation
program. This step is crucial to secure the buy-in from upper management, who
typically ask for an explanation of how the change helps in implementing the
organizations strategic plan and achieving corporate goals, before committing
organizational resources (time, energy, and money) to the transformation
program.

- A clear vision (elevator speech) of the program is the second step for a successful
transformation. A few examples of elevator speeches or vision for a transformation
program for the demand fulfillment process include: 1) Becoming the industry
leader in providing reliable and quick delivery to customers, or 2) Gaining
competitive advantage and market share by promising what we can deliver and
delivering on every promise.

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- In the 3rd step, the transformation team should identify and analyze core business
processes. The team, for example, might suggest outsourcing noncore processes
to improve efficiency and focus on the value-added processes. During process
analysis, we take a hard look at the firms value chains in order to identify
processes that would need an improvement

- Selecting a software provider for technology capabilities is required only if the

functional requirements that were determined in the previous step are not
supported by the existing systems.

- Calculating ROI is the process that compares the potential benefits to the costs
associated with implementing a transformation process. crucial for securing the
buy-in from upper management

- Adopting an incremental value-driven approach to conduct LAVC transformation

programs is very crucial. An effective transformation program typically takes 2-5
years, with several intermediate projects (Go-Lives) that can pay for the rest of the
program

- Implementing one project as part of the overall transformation program should go

through four phases: (1) describing where we are (as is), (2) deciding where we
want to go (to be) and planning on how we are going to get to where we want to
be, (3) taking the journey of change (deploying the new process or solution), and
finally (4) anchor the change in the culture of the organization (stabilizing the new
process).

- This step is responsible for updating Performance Management System to reflect

the new performance baselines, and anchor the new culture. Measuring the
benefits and ROI should begin during and after the implementation of the
transformation program. For example, improving forecast accuracy that is mainly
entered by the salespeople in a certain organization can be achieved by adding this
performance measure (forecast accuracy) as one of the parameters in a sales
bonus. This would align sales goals with program targets because sales will be
motivated to provide an accurate forecast to meet their bonus target, which
means the old behavior of overestimating to make sure enough inventory exists
when sales happen or underestimating to lower the bar of their quota will
disappear.

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By the end of the day, change happens one person at a time. Even large, complex
organizational changes are only successful if the impacted individual changes how
they do their day-to-day work. Organizational change is the culmination of many
individuals moving from their own current state to their own future state.

ADKAR is a goal-oriented change management model. It is based, fundamentally, on

how we as human beings experience change.

It makes sense then that this model, developed by Jeff Hiatt, CEO of Prosci Change
Management (www.prosci.com), and first published in 2003, focuses on 5 actions and
outcomes necessary for successful individual change, and therefore successful
organizational change.

ADKAR represent the five milestones (phases) of change that must be achieved by
individuals to be a success:

Awareness:
Understanding why the change is being made and the risk of not changing
Information on the internal and external drivers

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Desire:
I understand the need and willing to change
Addressing What is in it for me

Knowledge:
A person has the knowledge and access to the information on how to change
Knowledge of processes, tools, skills, roles, and techniques that are needed in the
new process

Ability:
A person can implement the change and achieve the desired performance
Addressing psychological blocks, physical abilities, intellectual capabilities, time &
resources

Reinforcement:
Sustaining the change and preventing individuals from slipping back to old ways of
conducting work
Building momentum during transition

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Effective organizational change, of any kind, requires mastering three phases: Plan,
Implement, and Sustain

While many change management projects focus on the steps necessary for
organizational change, ADKAR emphasizes that successful organizational change
occurs only when each person is able to transition successfully.

This table correlates the phases of organizational changes with the individual change
milestones.

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This table correlates ADKAR milestones with the change management supporting
processes

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10/17/2016

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