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Managers Guide for Coaching Human Capital in Change Management Issues Change Management Strategy Sponsorship Communications Education and Training Understanding Resistance Sustaining Change MET MG 743 Group 3 – Team A Benjamin Mellino Jody-Ann Strachan Margaret Early Michaela Knaplund Sheryl Dantzler April 19, 2009

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Human Capital and the Change Management Process This tool serves as a road map for managers challenged with the task of guiding human capital through the process of change. Outlined herein are the competencies, from selecting a change management strategy to sustaining change through rewards and recognition, required to effectively accomplish that goal. The change management strategy Engaging senior management Awareness through communication Educating managers and employees Understanding resistance to change How to sustain change

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<ul><ul><li>Change Management includes a set of activities that help people to transition from “their present way of working, to a desired way of working. </li></ul></ul><ul><ul><ul><li>In essence, it is: </li></ul></ul></ul><ul><ul><ul><ul><li>The task of managing change </li></ul></ul></ul></ul><ul><ul><ul><ul><li>An area of professional practice </li></ul></ul></ul></ul><ul><ul><ul><ul><li>A control mechanism (Change Management Fundamentals, June 2008). </li></ul></ul></ul></ul><ul><ul><li>A good change management strategy: </li></ul></ul><ul><ul><ul><li>Defines the approach needed to manage changes that occur in organizations, projects, or initiatives </li></ul></ul></ul><ul><ul><ul><li>Builds on the analysis of a particular situation </li></ul></ul></ul><ul><ul><ul><li>Support structures, tools, and techniques (Prosci’s Change Management Tutorial Series, 2008). </li></ul></ul></ul>Selecting a Change Management Strategy

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<ul><li>Depending on the change initiative, an effective strategy requires the combination of both people-focused and system-focused skills to manage and gain a “commitment to change” (Change Management Fundamentals, June 2008). </li></ul><ul><li>Four major change management strategies include: </li></ul><ul><ul><li>Empirical-rational strategy: Explains to employees how they will benefit from the change and provides performance incentives to help employees adopt to change </li></ul></ul><ul><ul><li>Re-educative strategy: Seeks out social or well-liked employees to champion the change </li></ul></ul><ul><ul><li>Coercive strategy : Which implements rules or policies that require employees to follow the change, communicating firm authority for change at all managerial levels </li></ul></ul><ul><ul><li>Environmental –Adaptive strategy : Tests changes within one unit or function and then gradually rolls the change out to the entire organization (Change Management Fundamentals, June 2008). </li></ul></ul>Selecting a Change Management Strategy

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<ul><li>Sponsorship is a commitment by management to define, defend, and support major activities from the start to the end </li></ul><ul><li>Engaging senior management in sponsorship is essential to the success of the project. </li></ul><ul><li>Prosci’s Sponsorship’s Checklist for Identifying Senior Management Sponsors: </li></ul><ul><ul><li>Are your sponsors aware of the importance they play in making changes successful? </li></ul></ul><ul><ul><li>Do your sponsors know their three biggest roles in supporting organizational change? </li></ul></ul><ul><ul><li>Are your sponsors active and visible throughout the project? </li></ul></ul><ul><ul><li>Are your sponsors building the coalitions that are needed for the change to be successful? </li></ul></ul><ul><ul><li>Are your sponsors communicating directly and effectively with employees? </li></ul></ul><ul><ul><li>Is your sponsor prepared to manage resistance? </li></ul></ul>Engaging Senior Management in Sponsorship

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Building Awareness through Communication <ul><li>Project Managers and sponsors should develop an effective communication plan. </li></ul><ul><li>Senior manager sponsors should be actively involved in communicating change within the organization. </li></ul><ul><li>Prosci’s Communication Checklist for designing an effective communication plan: </li></ul><ul><ul><li>Are you using the preferred senders to deliver communications in your organization? </li></ul></ul><ul><ul><li>Are you answering the questions &quot;why is this change happening&quot; and &quot;what is the risk of not changing&quot;? </li></ul></ul><ul><ul><li>Are you resisting the urge to have communications come from the project team or project leaders? </li></ul></ul><ul><ul><li>Are you using face-to-face communication? </li></ul></ul><ul><ul><li>Are you finding effective ways to reach your audience? </li></ul></ul>

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Business- Focused Skills Are the overarching business process knowledge areas required to equip managers with the insights necessary to more accurately determine the selection, direction, focus, and most appropriate tools to employ when guiding subordinates through the change process. In order to facilitate change, one must fully comprehend the business processes already in place. <ul><li>People are the core of an organization. In addition to political skills to engage a large group, change agents must also have more individual interpersonal skills, such as: </li></ul><ul><li>Communication Skills </li></ul><ul><ul><li>Determine preferred styles of team members </li></ul></ul><ul><ul><li>Adjust own style to influence team members </li></ul></ul><ul><li>Listening Skills </li></ul><ul><ul><li>Active listening </li></ul></ul><ul><ul><li>Empathetic listening </li></ul></ul><ul><li>Individual motivators and de-motivators </li></ul><ul><li>Ability to consider another point-of-view </li></ul>Corporate Leadership Council, 2008 <ul><li>During a change, the manager </li></ul><ul><li>must be able to formulate a clear and well </li></ul><ul><li>argued analysis to stakeholders using skills </li></ul><ul><li>such as the following: </li></ul><ul><li>Planning/Prioritizing </li></ul><ul><li>Administration Financial, and </li></ul><ul><li>Performance Reporting </li></ul><ul><li>Budgets, Profit & Loss, and Cash flow Analysis </li></ul><ul><li>Systems skills extend beyond learning computer competencies. A manager must possess a certain degree of what is referred to as General Systems Theories. Mastery of this set of systems skills, which applies to people, industries, organizations, economies, and nations a socio-technical systems, assists the manager in: </li></ul><ul><li>Communicating change throughout the </li></ul><ul><li>organization </li></ul><ul><li>Mediating conflict </li></ul><ul><li>Comprehending the effects of the impending </li></ul><ul><li>change on the external environment </li></ul><ul><li>To become skilled politically, the manager must strengthen: </li></ul><ul><li>Social astuteness – the ability to comprehend what occurs </li></ul><ul><li>in the current surrounding environment and to observe </li></ul><ul><li>others accurately </li></ul><ul><li>Interpersonal influence – having a convincing </li></ul><ul><li>personality and developing a style that is pleasing </li></ul><ul><li>to others </li></ul><ul><li>Networking ability – proficiency at developing </li></ul><ul><li>contacts inside and outside the organizational </li></ul><ul><li>structure </li></ul><ul><li>Sincerity – conveying true sincerity at all times </li></ul><ul><li>and avoiding the use of a veneer of </li></ul><ul><li>sincerity that is not genuine </li></ul><ul><li>Diplomacy – understanding organizational </li></ul><ul><li>political power without becoming </li></ul><ul><li>involved in the power play </li></ul>Skills Necessary to Manage Change Systems Skills Analytical Skills Systems- Focused Skills Personal Skills Political Skills People- Focused Skills

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<ul><li>Use the General Skill Set Assessment </li></ul><ul><li>to measure and determine the employees’ level of </li></ul><ul><ul><li>Skill and Work Competencies </li></ul></ul><ul><ul><li>Behaviors and Attitudes </li></ul></ul><ul><ul><li>Personal Style </li></ul></ul>Use Social Styles Assessments to learn what motives the individual employee Motivated by: Control and security through accuracy, precision, consistency, and attention to process Motivated by: Power, control, competence, achievement, winning, independence, competition, change, being right, results, promotions, salary Motivated by: Meaning, dreaming, making a positive difference, change, popularity, recognition, prestige, compliments, applause, approval Motivated by: Belonging, acceptance, involvement, stability, security, attention to process Approach to Developing the Team <ul><li>Use Managerial Skill Set Assessments </li></ul><ul><li>to measure the managers’ educational gaps in the areas of </li></ul><ul><ul><li>Business-Focused Skills </li></ul></ul><ul><ul><li>People-Focused Skills </li></ul></ul><ul><ul><li>System-Focused Skills </li></ul></ul>Develop a training plan for managers and employees based on the results of the educational gap analysis. (Caproni, 2005) II. ____ Expressive IV. ____ Amiable I. ____ Driver III. ____ Analytical

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Website Business Performance Understanding Resistance to Change Implement Balanced Scorecard Performance Measurement System Strong support from CEO Incentive Program Help from vendors Customer Demands Legislative Sanctions Drivers for Change Resistors of Change Mistrust amongst managers and employees “ Worn out” by constant change Union Resistance Poor communication channels Staff reluctance to use new technology Low Resources

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Skills needed for the change initiative to succeed: <ul><li>Communication Skills </li></ul><ul><li>Leadership Skills </li></ul><ul><li>Team Working Skills </li></ul><ul><li>Belief that you can change (Caproni 2005). </li></ul><ul><li>Conflict Resolution Skills </li></ul>Understanding how an employee may react to an organizational change can be helpful when dealing with change. Some people may react to change poorly. Conversely, some may be enthusiastic supporters of change. If you can identify and manage these types, it will create a smoother transition. There are four basic types of personal reactions to organizational change. Understanding Resistance to Change

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Website Business Performance Understanding Resistance to Change Basic Types of Personal Reactions to Change Enthusiasts These change recipients are intrinsically wedded to the change idea. They may agree dispassionately that the change will be of benefit to the organization, or they may stand to receive some personal gain from the change, such as a guarantee of job security, more status or a higher salary. Enthusiasts will use opportunities to broadcast approval for the change and will try to convince others of its merits. They will also model the new behavior early and will volunteer for membership of teams. These early adopters may also make good choices as trainers and coaches during the implementation process. Followers Followers range from those that are generally compliant, wishing to take the path of least resistance, to those that are initially reticent to adapt, but eventually do so once they accept the inevitability of the change. These change recipients will do what is required, but no more. Objectors Objectors will display their resistance to change whenever the opportunity arises. They may disrupt meetings, not attend training, take unapproved leave and refuse to carry out instructions. Objectors will continue to use superseded systems and processes when others are taking up the new ways of doing things. They are not averse to arguing with managers and fellow workers and will try to convince others to continue with the old ways. In a unionized environment, resistance can take the form of strikes, lockouts, “work to rule”, legal challenges and boycotts. Underground Change recipients working for the underground have solid motivations for not making their resistance public. They may fear direct punishment, such as termination or fines, or more personal costs, such as ridicule or loss of status and authority. Managers who are against the change but need to be seen to be in support of it are prime candidates for promoting underground resistance. This style of resistance is, by its nature, always covert and can take many forms. Common among these are falsifying reports, inputting incorrect data, stealing, damaging infrastructure and equipment, using sarcasm, spreading rumors,

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Rewards and performance measurement are the keys to sustaining the change. <ul><li>How to keep employees motivated about change? </li></ul><ul><ul><li>Public Recognition is a very important tool to use to reinforce an individual’s contributions to change. </li></ul></ul><ul><ul><li>Tangible rewards that are aligned with the values of the employee should also be used. </li></ul></ul><ul><li>What motivates the employees in your group? </li></ul><ul><ul><li>Managers and employees often have different views on what are motivating rewards. </li></ul></ul><ul><ul><li>Managers often fail to understand how a potential reward could act as a de-motivator. </li></ul></ul><ul><ul><li>The manager needs to fully understand how they directly impact the sustainability of change. </li></ul></ul><ul><ul><li>Strong Leadership Skills will serve as a strong motivating factor in creating a successful change environment. </li></ul></ul><ul><li>What is the importance of performance measurement? </li></ul><ul><ul><li>Performance Measurement will help the manager confirm that the change is going as planned. </li></ul></ul><ul><ul><li>Performance Measurement will provide the manager an opportunity to review and assess needed changes. </li></ul></ul><ul><ul><li>Root-cause analysis will allow the manager to review shortcomings in the desired outcome by identifying the root cause of the problem. </li></ul></ul>Sustaining Change

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Sustaining Change <ul><li>Tips For Establishing Performance Measurements </li></ul><ul><ul><li>Executive Involvement – The company leadership should be committed to the metrics. </li></ul></ul><ul><ul><li>Sense of Urgency – Implementation should be made swiftly </li></ul></ul><ul><ul><li>Alignment with Strategic Direction – the metric needs to be inline with the company’s strategic mission, vision, strategy, and current strategic changes. </li></ul></ul><ul><ul><li>Conceptual Framework – The process used should be tied directly to the management process. </li></ul></ul><ul><ul><li>Communication – The organization needs to communicate the metric to maintain success. </li></ul></ul><ul><ul><li>Employee Involvement – The employee should be involved from the beginning of the measurement process. </li></ul></ul><ul><li>Remove Any Potential Roadblocks to Continued Improvement </li></ul><ul><ul><li>Report the results frequently </li></ul></ul><ul><ul><li>Review the effectiveness of the measurement system </li></ul></ul><ul><ul><li>Use Root Cause Analysis to identify performance gaps. </li></ul></ul>

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Communications Sponsorship (Prosci, 2008) Preparing the Manager for Change Leading Employees through Change Empowering employees through communication and education Understanding the effects of the impending change on the manager role Adapting to the change that is happening Developing competencies to manage the change Managing employees through the transition by understanding resistance Reinforcing change and celebrating success with rewards and recognition

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References Caproni, P. (2005). Management skills for everyday life (2nd ed.). Upper Saddle River, NJ.: Pearson Education. Change Management Fundamentals: An Introduction to Change Management. (2008, June). Corporate Leadership Council. Retrieved April 10, 2009 from http://hosteddocs.toolbox.com/change-management-fundamentals.pdf. Change Management Guide for Managers . (2008). Change Management Learning Center. Retrieved April 10, 2009 from http://www.change-management.com/managers-guide.htm. Change Management Tutorial Series-Prosci . (2007). Change Management Learning Center. Retrieved April 13, 2009 from http://www.change-management.com/tutorial-2007prep-strategy.htm. Gore, A. (June, 1997). Serving the American Public: Best Practices in Performance Measurement , 6-8. Retrieved April 11, 2009 from http://govinfo.library.unt.edu/npr/library/papers/benchmrk/nprbook.html. Rewards and Recognition in Knowledge Management . (July, 2002). Retrieved April 11, 2009, from http://www.providersedge.com/docs/km_articles/Rewards_and_Recognition_in_ KM.pdf. Website Business Performance Retrieved 4/15/09 from website: http://www.businessperform.com/html/resistance_to_change.html.