Change Management

 

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Change Management Models And Best Practices

RASHMI RANJAN BEHERA U109082

 

Contents Contents................. Contents....... ..................... ..................... ..................... ..................... ..................... ..................... ..................... .................................................. ....................................... 2 1.0 Introduction................... Introduction.............................. ..................... ..................... ..................... ..................... ..................... ............................................... ..................................... 3 2.0 Roles And Responsibilities................... Responsibilities.............................. ..................... ..................... ..................... .............................................. .................................... 3 3.0 Change Process Models.................... Models.............................. ..................... ..................... ..................... .................................................. ....................................... 5 3.1 Kurt Lewin Model....................... Model.................................. ..................... ..................... ..................... ..................... ........................................... ................................ 5 3.2 Bullock And Batten's Phases Of Planned Change.......... Change .................... ..................... ..................... ..................... ...................6 ........6 3.3 Kotler’s Eight Step Change Model....................... Model.................................. ..................... ..................... ..................... ..................... .................. ....... 6 3.4 Burke-Litwin Change Model..................... Model................................ ..................... ..................... ...................... ....................................... ............................ 7 3.5 ADKAR Model..................... Model............................... ..................... ..................... ..................... ...................... ..................... ..................... .............................. ................... 8 3.6 McKinsey 7 S Model...................... Model................................. ..................... ..................... ..................... ..................... ........................................ ............................. 9 4.0 Change Management Tools...................... Tools................................ ..................... ..................... .................................................... .......................................... 9 5.0 Continuous Process Improvement Improvement.......... .................... ..................... ..................... .................................................... .......................................... 10 6.0 Conclusion.................... Conclusion............................... ..................... ..................... ..................... ..................... ..................... .............................................. .................................... 12 7.0 Critical Analysis.................. Analysis............................. ..................... ..................... ...................... ..................... ..................... ..................... ..................... .................... .........12 12 References................... References......... ..................... ..................... ..................... ..................... ..................... ...................... ..................... ..................... ................................ ..................... 13

 

1.0 Introduction Change management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment. Organizational change provides the opportunity for organizations to build more focused, disciplined, and maturee businesses. matur businesses. This opportuni opportunity ty comes with significant significant financial financial risk if changes changes are not planned planned and manage man aged d proact proactive ively. ly. Change Change manage managemen mentt is primar primarily ily concern concerned ed with with how to underst understand and,, engage engage,, respond, respon d, and communicate communicate with people. people. A solid vision, senior management management sponsorshi sponsorship, p, and having the ri righ ghtt pe peop ople le in th thee righ rightt ro role les, s, ar aree th thee ke key y su succ ccess ess fa facto ctors rs fo forr impl implem emen entin ting g a succe successf ssful ul ch chan ange ge management campaign. 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. 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 Cost Contai Containme nment: nt: these these change changess are focuse focused d on eli elimin minatin ating g any costs that that are not essential essential for  operation. Typically, cost containment initiatives are the result of a tight economy for a particular industry or poor sales results. 4. Cultur Cultural al Change Change:: as organi organizati zation onss move move from from a produc product-ce t-centr ntric ic bu busine siness ss to a custom customer-c er-cent entric ric enterprise, changes to organizational norms and attitudes must be made.

2.0 Roles And Responsibilities There are four major roles involved with the change management process, each with separate and distinct responsibilities. In the order of their involvement in a normal change, the roles are: •

Change initiator 

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Change manager 

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Change advisory board

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Change implementation team (operations)

2.1.1 Change Initiator  The change initiator is the person who initially perceives the need for the change and develops, plans, and executes the steps necessary to meet the initial requirements for a Request for Change (RFC). Some examples of change initiators are: ● A product manager in a line of business desiring a new or changed feature on an application

 

● A networ network k architec architectt replaci replacing ng obsole obsolete te networ network k hardwa hardware re with with newer-g newer-gene enerat ration ion hardwa hardware re with with improved functionality ● A network engineer upgrading the capacity of a device or link to handle increased traffic 2.1.2 Change Manager  Larger organizations require a dedicated change manager who is responsible for the following: ● Updating and communicating change procedures ● Leading a team to review and accept completed change requests with a focus on higher risk changes ● Managing and conducting periodic change review meetings ● Compiling and archiving change requests ● Change communication and notification ● Managing change post mortems ● Creating and compiling change management metrics 2.1.3 Change Advisory Board The change advisory board (CAB) is a body that exists to support the authorization of changes and to assist change management in the assessment and prioritization of changes. When a CAB is convened, members should be chosen who are capable of ensuring that all changes within the scope of the CAB are adequately assessed from both a business and a technical viewpoint. The CAB needs to include people with a clear understanding across the whole range of stakeholder needs. The change manager will normally chair the CAB. Typically, there are “standing” members on the CAB, and the change manager will recruit others as needed in order to ensure stakeholder representation. Potent Pot ential ial member memberss includ include: e: Custom Customers, ers, User User manage managers, rs, Use Userr group group represe representa ntativ tives, es, Applic Applicatio ations ns developers/maintainers, Specialists/technical consultants, Services and operations staff, such as service desk, tests management, continuity management, security, and capacity, Facilities/office services staff  (where change (where changess may affect affect moves/ moves/acco accommo mmodat dation ion and vice vice versa), versa), Contra Contracto ctors’ rs’ or third third partie parties’ s’ representatives. It is important to emphasize that the CAB includes representation from all stakeholder groups and: ● Will be composed according to the changes being considered ● May vary considerably in makeup even across the range of a single meeting ● Is likely to include the problem manager and service-level manager and customer relations staff for at least part of the time When the need for emergency change arises, arises , such as when there may not be time to convene the full CAB, it is necessary to identify a smaller organization with authority to make emergency decisions. This body is the emergency change advisory board (ECAB).

 

3.0 Change Process Models Organizations will find it helpful to predefine change process models and apply them to appropriate changes when they occur. Such a model provides the framework for defining the steps needed to handle changes consistently and effectively.

The change process model includes: •

The steps that should be taken to handle the change, including handling issues

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The chronological order in which these steps should be taken

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Responsibilities; who should do what

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Timescales and thresholds for completion of the actions

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Escalation procedures; who should be contacted and when

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Approval authority

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Quality or performance measures and objectives

These models are usually input to the change management support tools in use and the tools then automate the handling, management, reporting, and escalation of the process. Change models may include: Normal change, significant (high-risk) change, Major change, Minor change, Standard (pre-approved) change, Expedited (short-interval) change and Emergency change 3.1 Kurt Lewin Model

Lewin proposed a three stage theory of change commonly referred to as Unfreeze, Change, and Freeze. Stage 1: Unfreezing The Unfreezing is about getting ready to change. It involves getting to a point of understanding that change is necessary. This first stage is about preparing ourselves, or others, before the change (and ideally creating a situation in which we want the change). The more we feel that change is necessary, the more urgent it is, the more motivated we are to make the change. .Stage 2: Change - or Transition Kurt Lewin was aware that change is not an event, but rather a process. He called that process a transition. Transition is the inner movement or journey we make in reaction to a change. This second stage occurs as we make the changes that are needed. This is not an easy time as people are learning about the changes and need to be given time to understand and work with them. Support is really important here and can be in the form of training, coaching, and expecting mistakes as part of the process. Using role models and allowing people to develop their own solutions also help to make the changes. It's also really useful to keep communicating a clear picture of the desired change and the benefits to people so they don't lose sight of where they are heading. Stage 3: Freezing (or Refreezing)

 

This stage is about establishing stability once the changes have been made. The changes are accepted and  become the new norm. People form new relationships and become comfortable with their routines. This can take time. Advantages : It is a simple and easily understood model for change; the model is done through steps. 3.2 Bullock And Batten's Phases Of Planned Change

R.J. Bullock and D. Batten derived their ideas from project management and they recommend using exploration, planning, action, and integration for planned change. Exploration occurs when managers confirm confi rm the need for change and secure resources resources needed for it. These resources may be physical physical or they may be mental, such as managers' expertise. The next step, planning, occurs when key decision makers and experts create a change plan that they then review and approve. Next, action occurs with enactment of  the plan. There should should be opportunities opportunities for feedback feedback during during the action phase. Finally, Finally, integration integration begins begins when all actions in the change plan have taken place. Integration occurs when the changes have been aligned with the organization and there is some degree of formalization, such as through policies and  procedures in the organization. 3.3 Kotler’s Eight Step Change Model Step One: Create Urgency Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. Identify potential threats, and develop scenarios showing what could happen in the future. Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking. Also, request support from customers, outside stakeholders and industry people to strengthen your argument. Step Two: Form a Powerful Coalition

Convince people that change is necessary. This often takes strong leadership and visible support from key  people within your organization. Managing change isn't enough - you have to lead it. Identify the true leaders in your organization and ask for an emotional commitment from these key people. Check your  team for weak areas, and ensure that you have a good mix of people from different departments and different levels within your company. Step Three: Create a Vision for Change

Determine the values that are central to the change. Develop a short summary (one or two sentences) that captures what you "see" as the future future of your organization. Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five minutes or less. Practice your "vision speech" often. Step Four: Communicate the Vision

What you do with your vision after you create it will determine your success. Talk often about your  change vision. Openly and honestly address peoples' concerns and anxieties. Apply your vision to all aspects of operations aspects operations - from training training to performance performance reviews. Tie everything everything back to the vision. Lead by example. Step Five: Remove Obstacles

 

Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. Step Six: Create Short-term Wins

 Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress. Step Seven: Build on the Change

Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change. Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Each success provides an opportunity to build on what went right and identify what you can improve. Step Eight: Anchor the Changes in Corporate Culture

Finally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. Make continuous continuous efforts to ensure that the change is seen in every aspect of your organization organization.. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If  you lose the support of these people, you might end up back where you started. Advantages : It is that this is a step by step model, which is easy to follow. Another is that it does not focus on the change itself, but rather the acceptance acceptance and preparedness preparedness for this change, which makes makes it an easier transition. 3.4 Burke-Litwin Change Model This change model is based on assessing the organizational as well as environmental factors which can be tweaked so as to ensure a successful change. The Burke-Litwin change model begins with outlining a

framework, comprising the affecting factors which can be manipulated to guarantee a smoother transition from one phase of the change process to another. The most critical aspect here is establishing the links  between the twelve dimensions (external environment, mission and strategy, leadership, organisational cultur cul ture, e, structu structure, re, system systems, s, manage managemen mentt practi practices, ces, work work cli climat mate, e, tasks tasks and skills skills,, ind indivi ividua duall skills skills,, motivational level, individual and overall performance) of this change framework. The Basic Philosophy of Burke and Litwin Change Model

Here are some of the key points of this change model: 1. The most dominan dominantt factor factor that triggers triggers organizat organization ional al change change is the externa externall enviro environme nment nt which that makes an organization to change its mission, culture, leadership and its operating strategies. 2. The change changess in the 12 key dimens dimension ionss bring about about a series series of changes changes in the structure structure,, practices practices and the system of the organization. 3. All All the the affe affect ctin ing g fa fact ctor orss put put toge togeth ther er af affe fect ct th thee moti motiva vati tion on le leve vell of th thee in indi divi vidu dual alss in an organization, which in turn impacts the overall performance.

 

4. The 12 key key dimensions dimensions of the the change model model interact interact with and affect affect each other. other. And And understand understanding ing the linkage between these supportive pillars is the key to effective and smoother change. Advantages: External environment is major factor. It is based on hierarchy and casualty between elements. It distinguishes variables that influence organisational climate and organisational culture. 3.5 ADKAR Model The ADKAR model consists of five sequential steps or actions: 1. Aware Awarenes nesss of the the need need for change change..

Understanding why change is necessary is the first key aspect of successful change. This step explains the reasoning and thought that underlies a required change. Planned communication is essential. 2. Desire Desire to participa participate te in and suppor supportt the change. change.

In this step the individual individual is able to reach a point where they make a personal decision to support support the change and participate in the change. 3. Knowle Knowledge dge on how how to to chan change ge..

Providing knowledge about the change can be achieved through normal training and education methods. Other methods of transferring knowledge, such as coaching, forums and mentoring, are equally useful. Two types of knowledge need to be addressed: knowledge on how to change (what to do during the transition) and knowledge on how to perform once the change is implemented. 4. Ability Ability to implement implement required required skills skills and behaviou behaviours. rs.

In the ADKAR model Ability Ability is the difference difference between theory and practice. practice. Once knowledge knowledge on how to change is in place (theory) the practice, or actual performance of the individual, needs to be supported. This can take some time and can be achieved through practice, coaching and feedback. 5. Reinfo Reinforc rceme ement nt to sustai sustain n the chang change. e.

This final stage of the model is an essential component in which efforts to sustain the change are emphasised. Ensuring that changes stay in place and that individuals do not revert to old ways can  be achieved through positive feedback, rewards, recognition, measuring performance and taking corrective actions. Advantages : •

It directs change management activities. It's focused on outcomes, not tasks to be performed.

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Communication strategies can be focused.

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The ADKAR model helps to measure the effectiveness of the change process. Progress can be measured down to the individual level, gaps diagnosed, and corrective action is directed.

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Managers have a tool they can use. Each part of the model gives managers a specific role

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This change management model can be used for both project and non-project change, and is effective as a model of individual change outside of the organisational setting as well.

 

3.6 McKinsey 7 S Model

The 7-S Framework considers organisations to be made up of several inter-connecting systems and that all these should be considered and planned for during a change. Attention must be paid to all systems or factors but the relative importance of each can vary, depending on the circumstances and the phases of the change. 1. The Decision Making Phase This is when the organisation is deciding whether the change is necessary and right one? Some factors take on more special importance in this phase: Staff, Style, Shared values, Strategy. Staff: Wherever possible and feasible, opinions should be gathered from all levels of staff. Whether  this is done formally (through staff surveys etc) or informally will depend on many factors. Style: Does the proposed change match with the management style and culture of the organisation? If  the answer is yes, then while this aspect should be monitored, it should not present much of a problem. Sometimes a change is necessary for organisational survival even if this is contrary to the management style and culture. 2. The Planning Phase During the planning phase, all  all 7 7 factors should be analysed and the eventual plan should address each

one. All  projects should, at the very least, have a  formal stakeholder analysis and a communications  plan. Both must consider internal and external stakeholders.  plan. If the decisi decision on phase phase reveal revealed ed signif significan icantt Change Change Manage Managemen mentt challen challenges ges,, then then the plan plan should should include real and concrete deliverables to address these issues. Some examples would be:• Creation of materials to explain the new model, culture or vision. • Opportunities Opportunities for senior management management to visibly visibly sponsor the change change and demonstrate demonstrate it through through role modelling. • Time and opportunity for staff at all levels to learn about and work through the proposed changes. • The use of pilot groups. 3. The Implementation or Execution Phase This is the easiest to explain and the hardest to do:

• Follow the plan • Monitor progress • Deal with the issues • Be prepared to change the plan If the change is complex, it will not be possible to plan it in every detail. This is especially true when the change affects the more emotional factors (such as Shared Values). Values). While change is often a continuous process, at some stage senior management will require a formal review. This will not be a trivial exercise, although regular “temperature readings” throughout the implementation phase will benefit here. effec fecti tive ve way to diag diagno nose se an and d un unde derst rstan and d th thee or orga gani niza zati tion on;; it is a gu guid idee fo for  r  Advantages: It is an ef organizational change; it is a combination of both rational and emotional constituents; and all parts are interrelated, so all portions must be addressed and focused on. 4.0 Change Management Tools

A change ticketing tool will help ensure that:

 

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All of the requirements for a proposed change are collected and available for evaluating risk 

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The change is scheduled for implementation

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Status updates are communicated to stakeholders

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Users can generate change reports that can be used to govern the change process itself and provide change management with actionable feedback on change activity.

5.0 Continuous Process Improvement 5.1 Process Improvement Program

In order to continuously assess and improve the change management process, a process improvement  program (PIP) must be implemented. This program must be formal, Documented, Documented, Continuous and periodic (various activities may have different intervals) and Used by management for key business decisions The goal of the PIP is to achieve the following critical success factors (CSFs): •

A repeatable process for making changes

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Make changes quickly and accurately (driven by business needs)

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Protect services when making changes

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Deliver process efficiency and effectiveness benefits

The main activities of the PIP are: (a) Process Process measurement measurement (b) Process reporting (c) Process Process assessment assessment (d) Process improvement 5.2 Key Performance Indicators and Measurements

Change management must ensure that measures have specific meaning. Measures taken should be linked to business goals wherever practical—and also to cost, service availability, and reliability. Any predictions should shou ld be compared compared with actual measurements measurements.. Meaningful Meaningful measurements measurements provide provide management management with actionable feedback those results in timely and accurate decision-making. 5.2.1 Examples of Measures

Some examples of the types of measures used within organizations are listed here. Most of the listed measures can be usefully broken down by category, organizational division, geography, supplier, etc. 5.2.2 Operational Metrics •

 Number of disruptions, incidents, problems/errors caused by unsuccessful changes and releases

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Incomplete impact assessment

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Percentage reduction in time, effort, cost to make changes and releases (for example, by service, change type, asset type)

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Service or application rework caused by inadequate change specification

 

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Percentage improvement in predictions for time, quality, cost, risk, resource, and commercial impact

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Percentage improvement in impact analysis and scheduling of changes safely, efficiently, and effectively reduces the risk of changes affecting the live environment

5.2.3 Process Measures •

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People’s satisfaction with the speed, clarity, and ease of use  Number and percentage of changes that follow formal change management procedures procedures

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Ratio of planned versus unplanned changes (urgent, emergency)

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Ratio of accepted to rejected change requests

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 Number of changes recorded and tracked using automated tools tools Cost against budget

5.2.4 Example KPIs The following KPIs can be used to measure the performance of the change management process. •

Change efficiency rate

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Change success rate

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Emergency change rate

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Change reschedule rate

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Average process time per change (days)

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Unauthorized change rate

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Change incident rate

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Change labor workforce utilization

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Change management tooling support level

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Change management process maturity

5.2.5 Summarizing Measures The metrics above can be rolled up in key performance indicators (KPIs) and critical success factors (CSFs). The KPIs and CSFs can then be reported to management via the dashboard or balanced scorecard. For instance the KPI “change success rate” can be computed as: “Number of failed changes” / “Total changes implemented”.

 

6.0 Conclusion

Change management is one of the most important service management processes. Any organization—no matter mat ter its size—wi size—will ll experi experienc encee a large large volume volume of change changess in order order to accommo accommodat datee new busine business ss requirements, to correct faults in the infrastructure or the services, or for other reasons (such as legal requirements). All changes have a disruptive potential for the business, hence controlling the release of  changes is critical. Change management is even more effective in reducing service disruptions in concert with other service management management processes, processes, in particular particular configurati configuration on management management,, release management, management,  problem management, and incident management.

7.0 Critical Analysis

Change can be a time of exciting Change exciting opportunity opportunity for some and a time of loss, disruption or threat for others. How such responses to change are managed can be the difference between surviving and thriving in a work or business environment. Change is an inherent characteristic of any organisation and like it or not, all organisations whether in the public or private sector must change to remain relevant. Change can originate from external sources through technological advances, social, political or economic  pressures, or it can come from f rom inside the organisation as a management response to a range of issues such as changing client needs, costs or a human resource or a performance issue. It can affect one small area or  the entire organisation. Nevertheless, all change whether from internal or external sources, large or small, involves adopting new mindsets, processes, policies, practices and behaviour. Irrespective of the way the change originates, change management is the process of taking a planned and structured approach to help align an organisation with the change. In its most simple and effective form, change management involves working with an organisation’s stakeholder groups to help them understand what the change means for  them, helping them make and sustain the transition and working to overcome any challenges involved. From a management perspective it involves the organisational and behavioural adjustments that need to be madee to accomm mad accommoda odate te and sustain sustain change change.. There There are nu numer merous ous models models and theori theories es about about change change management, and it is a topic subject to more than its fair share of management fads and fashions. Popular approaches include the linear, step by step methods exemplified by Kurt Lewin’s1 classic three phase model of change -- unfreeze, move or change, and refreeze, John Kotter’s 8 step change model, the McKinsey’s 7-S model, and the ADKAR model. Other approaches such as Rosabeth Moss Kanter’s theories and change theories based on derivatives of the Kübler-Ross model focus on the cultural and  people aspects of change. Each approach has its pros and cons; however no one framework f ramework is "best" in all situations. Indeed it is not so much the actual model or theory that is important, but more that the approach that is taken is relevant to the circumstances. In fact the best change approaches appear to use and adapt aspe aspect ctss of va vari riou ouss mode models ls to suit suit th thee cu cult ltur uree of the the or orga gani nisat satio ion n an and d th thee co cont ntex extt of th thee ch chan ange ge.. Fundamentally, the basic goal of all change management is to secure buy-in to the change, and to align individual behaviour and skills with the change. Best practices in Change Management include: 1. Establish the Need for Change– build momentum and urgency for the change by examining market condition cond itionss and competitive competitive forces. Identify risks, potential crises, and opportuni opportunities ties for adapting the organization to the situation

 

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 smal sm alll achiev achievem emen ents ts are are made made,, reco recogn gniz izee yo your ur empl employ oyee eess in fron frontt of th their eir co coll lleag eague uess an and d pe peer ers. s. 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. 8. Anchor New Approaches in the Culture– improve performance by adopting a more customer-centric, and productivity-oriented behaviour. Articulate connections between new behaviours and organizational success. Develop effective leadership and succession processes.

References

1. Websites •

http://ezinearticles.com/?ADKAR-Change-Model---An-Evaluation-of-Its-Strengths-andWeaknesses&id=3164961

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http://www.12manage.com/methods_burke_litwin_model.html

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http://www.evancarmichael.com/Marketing/5604/Change-Management-Best-Practices.html

 

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http://www.businessballs.com/sevenhabitsstevencovey.htm

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http://www.12manage.com/methods_7S.html

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http://www.dcsf.gov.uk/everychildmatters/strategy/deliveringservices/servicedirectories/models/ch angemanagementmodels/

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http://www.referenceforbusiness.com/management/Pr-Sa/Reactive-vs-Proactive-Change.html

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www.change-management.com

2. Reports / White papers •

Lick, Reopoldi, “ITSM Change Management Best Practices”, 2002

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Baekdal Thomas et al, “Change Management Handbook”,2006

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Randy A. Steinberg: Measuring ITIL, Trafford Publishing, Jan. 2001, ISBN 978-1412093927

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http://www.cisco.com/en/US/technologies/collateral/tk869/tk769/white_paper_c11-458050.html