I hear this question often so I have come up with ideas to help those of us who believe in Change Management convince others of the value.
Most projects involve people changing. They have to use new technology or they have to use a new process or maybe take on a whole new role because of a reorganization. There are many scenarios and we all know that change takes us out of our comfort zone. You may even have change saturation in the organization.
Why do we need change management? That is touchy feely stuff!
For a new process or technology project, or both, the ROI is generally based on the assumption that users will adopt to the change at go live and will be proficient. What if the people aren’t ready or are resistant to change? Your return will be pushed out and will not be what you expected.
Loss of productivity is an issue whenever you upset the status quo. When people are anxious about a change or resistant to the change, productivity goes down. By working with people to understand the root cause of the resistance, you can minimize this negative impact by helping people understand the business value and personal benefit of the change.
Ultimately projects can fail when change is not handled properly. People can revert to the old way of doing things. There are many business cases out there about major losses caused by failure to pay attention to the people side of the project and properly bring the individuals of the organization through the change.
In summary, Organizational Change Management enables transition to achieve and sustain the desired business strategy and drives ROI through:
– Accelerating the Adoption Curve
– Ensuring Proficiency
– Minimizing the dip in Productivity
– Increasing project success
Let me know if you have other ideas for “selling” change management to those who don’t get it.
They say change is constant but what if that is causing the people in your organization to be very grumpy and unhappy? What can we do about change initiatives and about change across the organization? Persuasion, motivation, and listening are good answers! Here are some ideas for helping people work through change in initiatives and across the organization.
• Create Hope
We all know things get better and things get worse, most everything in life is cyclical. Picture the glorious outcome when you successfully change. Think about the movie Pay it forward. I know that when you saw the movie, you thought that was a brilliant idea. Decide to be happy and pay it forward. Ok, before you stop reading this, I know you can’t just decide to be happy and it is as easy as that! Believe me I get that. But please read on, I am hoping to get you to smile!
I used to be a self-help book junkie. If there was a problem, the answer was in a book. So if all else fails, write to me and I will recommend a book. What really made me thing about self-help was that we know what the organization should do to turn things around but we can’t single handedly save the organization. What we have is control over is what we do and think and our own happiness for the most part. We determine how to react to change. When there is too much change (change saturation), managers and leaders need to have an open door policy to get feedback and help employees work through change. The leaders need to recognize change saturation as it leads to failed initiatives, productivity loss and the best people start leaving the company. If your company isn’t handling this correctly, you take control of how you feel about things or you hate going to work.
• Are things really that bad?
Think about it. You aren’t stranded in a boat with an imaginary friend (Cast Away).
I read a great article this morning about a college student writing home to mom and dad. She first tells them to sit down while they are reading the letter (a scary start!). She then proceeds to tell them how she was injured when she jumped out of her dorm window because the place was on fire. While she was in the hospital for 2 weeks, she met a nice guy who let her stay in his basement when she got out because she couldn’t go back to her burnt down dorm. She fell in love and is going to marry the guy because she is pregnant. By this point in the letter mom and/or dad 1. Have fainted or 2. Are having a heart attack or are 3. Beet red and banging their head on the wall. The girl goes on to say that none of this is true but she is getting one D and one F. Great tactic for putting things in perspective! The truth wasn’t as bad as the original story.
Today, I was thinking about the cliché “what doesn’t kill us makes us stronger”. I must be stronger because I am not dead and it has been one of those weeks. It is all about how you look at things.
• Why are we doing this?
That is the big question. Command and control management doesn’t work anymore in most industries. Once you start empowering people they take command of their job and ask a lot of questions. They aren’t going along with you until you answer that question. People internalize change. Moving out of our current state comfort zone takes persuasion. Sell the change. When you talk to your people about the reasons for the change and you start seeing that light come into their eyes, you have finally answered the question why should I do this?
I heard the psychiatrist/ patient light bulb joke turned around last week: How many employees does it take to change a light bulb? One but he/she has to want to change! In reality, before the change takes in an organization, almost everyone who needs to change will also need to want the change.
“Lean” organizations are so common today. Doing more with less is such a popular slogan. While the Portfolio of projects, initiatives and tasks is “super-sized”, the staff to complete all of this work is not big enough to get it all done. If resource demand is much higher than capacity, some things just aren’t going to get done, projects will fail, mistakes will be made and people are going to be very unhappy. This is a sure way to lose the best people.
Your organization will always have tons of ideas for improving business, improving processes or buying the latest technology. But you can’t do it all! However, you can stick to a very solid corporate strategy and prioritize what gets done based on the strategy.
Right-sizing the Portfolio of Projects and Initiatives:
1. Develop a clear, solid Strategy based on your organization’s core competency.
2. Communicate the strategy so that everyone knows how to translate the strategy into what gets done.
3. Develop a method to determine value of projects and initiatives (relate to strategy and other benefits to be realized).
4. Prioritize the portfolio of projects and match resource capacity and demand.
While your organization certainly is made up of superstars, they aren’t super human. There really are only 24 hours in a day and you really do have finite resources.
I wanted to discuss a positive theme today and this came to mind – how to help ensure a happy work force. I read earlier this week that happy people are more productive. So I thought about the places I have worked and put together these points. I am sure there are more ideas and I would like to hear them.
1. Build teams that work well together. This may seem naive and impossible but it can be done. Provide team training so everyone knows how a good team should work. Most work places have some people that aren’t team players. Hopefully you have work where they can be independent.
2. Hire happy, positive people and keep them happy.
3. I don’t know many people who work well in an environment led by a micro manager or dictator type leader. A leader needs to care about the people in the organization. The best leaders have a sense of humor and ability to motivate and inspire.
4. If people can make mistakes without being beaten up over the mistake, more creativity and innovation will occur as people learn from their mistakes and fix problems before it is too late. And the work force will be happier not living in fear of making a mistake.
5. Everyone is motivated differently and has a different personality. Do you recognize individuality? Can you get the best out of your people? People need to be rewarded when they do a good job. This varies quite a bit according the each person’s personality.
6. Everyone appreciates the occasional free lunch or other social events and parties.
7. I don’t know any people who like bosses that yell all the time. Do you?
8. I think most people like friendly, approachable bosses. I certainly do!
9. The leaders of the organization set the core values and the culture. You can make it so that people like coming to work.
10. When people are really overworked, they are not efficient and not happy. Of course this is about life-work balance.
The Business Need
Sound strategic planning is fundamental to achieving business objectives. Execution of the strategy is difficult and the complexities created by out of sync and competing activities, processes, functional groups and systems across the organization create many obstacles on the road to success. Constant change, corporate politics, functional silos and many other factors affect progress toward business objectives.
A sound business plan and clearly defined goals are essential, but the key to successful execution is understanding how to accomplish those goals. This paper looks at process relationships and information flow across the business from strategic planning to achievement of the strategy, from great ideas to benefits realization. To ensure the business efficiently and effectively achieves its strategy; the organization must optimize the outcomes from their processes across the entire life-cycle.
While organizations put emphasis on improvement of individual processes, improvement across processes and systems is often neglected. This big picture transformation is more difficult to tackle. Over time, standalone systems, functional stovepipes and constant change cause issues around data, communication, processes, systems and performance. While this task of analyzing and improving the full life-cycle is difficult, the results are very valuable to the organization.
The Life-cycle Answers:
• Strategic Planning – How can the organization succeed?
• Portfolio Management – What should we be doing to achieve our strategy? How do we maximize ROI?
• Project Management – How do we best achieve these things we should be doing?
• Operations – are we effectively putting the plans in place for ongoing operations?
The Business Issues
Virtually every organization has information fragmented in multiple repositories and enterprise applications. Many obstacles keep organizations from meeting their basic needs for efficient operations, strategic alignment and profitability. Common business issues include:
o Duplication of effort and disconnected processes
o No standardization, documentation or understanding of process
o Poor metrics and poor performance
o Insufficient or bad data
o Difficulty in obtaining data
o No authoritative source of data, duplicate entry
o Insufficient applications and infrastructure to support best practice processes
o Disparate applications and systems
The Holistic view of the full life-cycle
Strategic Planning, Portfolio Management, Project Management, Program Management and Operations make up the life-cycle from concept to benefits realization. These processes exchange critical information. All of these processes contribute to achievement of strategy, thus are critical to business success.
Weaknesses in any of these areas will result in problems in the other areas as there is information feeds and dependencies between these functions. In addition, the processes in each of these major areas must be efficient and must provide quality information to the other areas.
Typical Process Area Issues:
• Strategic Planning – Objectives may not be clear and not understood by the organization and the Organization may not be able to interpret the strategy into what needs to be done.
• Portfolio Management – Many organizations don’t use objective criteria for investment selection which results in a Portfolio that is not optimized. The Portfolio may not be sized correctly to match resource capacity to demand.
• Project Management – There may be overlapping and redundant projects. There may be resource conflicts, priority conflicts and poor performance.
• Operations – Transition process may not be sufficient for a smooth roll-out. Rush to get to production can result in problems after roll-out.
The strategic goals are meaningless to the organization unless they are clear, understood by all and interpreted into the activities (Portfolio Management: selected projects) required to achieve the goals. This means that executives should not throw high-level strategic goals out to the organization with the directive to make it happen. Instead, they should have a clear idea of the major activities designed to meet the strategic objectives to ensure the organization is headed in the right direction. Leaders in Strategic Planning and Portfolio Management can work together to clearly connect the strategy with the required tactical activity.
Is it working? – Performance Management
Performance Management is an element in each of the processes as metrics and analysis are required to ensure each area is achieving its goals and to ensure benefits realization from the system as a whole. For decision makers, Portfolio Management will provide benefits realization metrics including financial benefits. Portfolio Management measures progress toward corporate goals based on the metrics for each goal and reports this information to Strategic Planning/Executives. For each Project, metrics will be established to ensure the project team is meeting the project goals. Project Performance is measured and analyzed to develop corrective actions and ensure risks are managed. This Performance information is reviewed in Project and Program reviews to ensure Project Management performance is optimized. Performance information is fed from the Project Management system to the Portfolio Management system (and/ or the Program Management system) to allow decision-making for the portfolio and programs. In Portfolio reviews, project performance is taken into consideration and failing projects may be stopped.
Where has this solution been applied and what were the results?
A division of a government agency required an analysis of all applications, systems, processes and data across life-cycle management. The analysis showed they had legacy systems that were no longer supported, high maintenance homemade tools (requiring frequent coding), applications that only had a handful of users, standalone applications for each process, data entered manually in more than one application and manual processes. The analysis led to corrective actions to eliminate or retire systems, automate and streamline processes and data feeds and implement a more robust infrastructure. An IT/ Process Roadmap was developed to provide the needed solution concept and plan.
A large company had merged many other companies into the organization. There were many scattered databases, duplication of effort, re-packaging of information for different levels of the organization, different databases, processes, and reports across the same functions. Excessive time was spent manually generating reports in preparation for management decision-making meetings. There were no standard project performance metrics across the enterprise. Portfolio management had been developed using a very complex process involving numerous Excel spreadsheets. A new life-cycle was designed to standardize and automate Project Management, Portfolio Management, IT Governance and Financial Management across the merged businesses. This solution brought all the data for these processes into a centralized database, providing greatly improved efficiency, improved data accuracy, cost and labor savings and elimination of non-value added work.
Building the Holistic Life-cycle Solution
How do you build the holistic life-cycle process to optimize sharing information across processes, eliminate duplication of tasks, and improve each process while optimizing across all processes? First, ensure high-level sponsorship with a clear understanding of the value of this effort from the top down. As this solution provides both strategic and tactical benefit and provides significant financial benefit, this holistic approach should be an easy “sell” to the leaders of the organization. However, the new life-cycle design may require breaking down barriers between functions and may bring major changes in governance and decision-making. Good Change Management planning can help ensure success of the new solution.
By mapping the current processes, systems and data flow, you will reveal gaps, duplications and problem areas. Analysis of this current situation will determine required improvements to establish the optimized life-cycle. Keep in mind that the goal is to improve individual processes as well as tying the processes together and developing good information flow and process coordination across the life-cycle.
This improved life-cycle will provide benefits of strategic achievement, a portfolio of investments with the highest ROI and improved efficiency across the organization. The transformation effort is not easy to achieve but well worth the effort.