The Effective Change Managers Handbook Essential Guidance To The
The Effective Change Managers Handbook Essential Guidance To The
The Effective Change Managers Handbook Essential Guidance To The
me/PrMaB
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The Effective
Change
Manager’s
Handbook
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ii
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The Effective
Change
Manager’s
Handbook
Essential guidance
to the change
management body
of knowledge
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Publisher’s note
Every possible effort has been made to ensure that the information contained in this book is accurate
at the time of going to press, and the publishers and authors cannot accept responsibility for any errors
or omissions, however caused. No responsibility for loss or damage occasioned to any person acting,
or refraining from action, as a result of the material in this publication can be accepted by the editor,
the publisher or any of the authors.
First published in Great Britain and the United States in 2015 by Kogan Page Limited
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted
under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or trans-
mitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of
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The right of each commissioned author of this work to be identified as an author of this work has been
asserted by him/her in accordance with the Copyright, Designs and Patents Act 1988.
A CIP record for this book is available from the British Library.
The effective change manager’s handbook : essential guidance to the change management body of knowledge /
edited by Richard Smith and the APMG.
pages cm
ISBN 978-0-7494-7307-5 (paperback) – ISBN 978-0-7494-7308-2 (ebk) 1. Organizational change–
Management. I. Smith, Richard, 1953 December 29-
HD58.8.E36 2014
658.4’06–dc23
2014030706
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Co n te n t s
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vi Contents
02 Defining change 78
Robert Cole, David King and Rod Sowden
Introduction 78
Section A: Aligning change with strategy 80
Robert Cole
Introduction 80
1. Background to strategy development 80
2. The far environment 81
3. The near environment 85
4. Business modelling 85
5. Strategic delivery processes 86
6. Strategy and change 88
Summary 88
Section B: Drivers of change 89
Robert Cole
Introduction 89
1. The strategic context 89
2. Change analysis 92
3. Strategic change plan 95
4. Systems approach to change 95
5. Monitoring the external environment 95
6. Initial stakeholder engagement 96
Summary 96
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Contents ix
Summary 207
Further reading 208
References 209
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Contents xi
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10 Facilitation 415
Dan Skelsey
Introduction 415
Section A: The role of the facilitator and the skills required 417
Introduction 417
1. The role of the facilitator 417
2. Techniques of questioning 418
Summary 420
Section B: Preparing a group process 421
Introduction 421
1. Factors to be considered 421
2. Purpose – setting objectives 422
3. Product – techniques for capturing and organizing the information in
a session 422
4. Participants – selecting and preparing participants 423
5. Participants – external facilitators 424
6. Process – creating an agenda 424
7. Place – selecting and preparing the venue 426
8. Practical tools – technology in physical meetings 427
9. Probable issues – what if? 428
Summary 429
Section C: Facilitating a group process 429
Introduction 429
1. Opening a session 430
2. Watching for group dynamics 431
3. Personality types and how they react in group settings 432
4. Techniques for intervening 434
5. Changing the agenda 435
6. Closing a session 436
Summary 437
Section D: Virtual meetings 437
Introduction 437
1. Selecting the technology 437
2. Issues in virtual meetings 438
Summary 440
Section E: Facilitation structures and techniques 441
Introduction 441
1. Basic principles 442
2. Structures 442
3. Techniques for building information 444
4. Techniques for prioritizing, decision making and reaching
a consensus 448
5. Approaches to larger workshops 450
Summary 452
Further reading 453
References 453
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Index 592
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xvii
P r eface
Change management in context
I t is less than a year since I wrote the preface to the Change Management Institute’s
The Effective Change Manager: The Change Management Body of Knowledge
(CMBoK). At the time I had little idea that I would be writing another preface so
soon. However, a need has become apparent for a robust examinable text that
follows the content and structure of that body of knowledge. In the preface to
The Effective Change Manager I described change management as:
●● an emergent profession;
●● an interdisciplinary profession;
●● a developing profession.
Change management is an emergent profession in the sense that no one set out to
invent it. The rapidly changing demands on organizations in the latter part of the
20th century and the beginning of the 21st placed a premium on effective organ
izational change management. Success in delivering organizational change initiatives
has been patchy at best, and research has begun to identify the range of factors
that predispose an initiative to succeed. A need has become clear for people with a
particular range of knowledge and competence to help organizations apply these
insights effectively.
For this reason, change management is also an interdisciplinary profession.
Insights about successful change draw on a wide range of academic research and
practitioner expertise, and require effective interfaces with many other disciplines.
The change management ‘nation’ is composed of many ‘tribes’. In particular, those
who have come to change management practice from an organizational develop-
ment (OD) background have long used more than half a century of social science
research to engage the commitment of people, helping them to invest personally in
change to their working lives. But in addition to the ‘OD tribe’ there are project and
programme managers, who have used their specialist knowledge of operational
management, applying their structured approaches, tools and techniques to support
successful change.
It has taken time for people with the appropriate set of interdisciplinary insights
to emerge. They have been guided by far-sighted academics who have for many years
researched and run courses in change management, or who have included this as an
explicit module in MBA programmes. However, the emergence of this interdiscipli-
nary profession is taking time – it is a developing profession. No longer embryonic
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xviii Preface
or in its infancy, change management is clearly ‘out there’ in the world. It is finding
a distinctive voice and making its own impact. Its final ‘mature’ form remains to be
seen, so perhaps in developmental terms the change management profession could
be said to be ‘adolescent’. It may sometimes be susceptible to a passing fashion or to
the influence of a single, charismatic figure. However, it is increasingly firm in its
sense of itself. It possesses the energy, enthusiasm and, increasingly, the wisdom to
make a positive difference in the world.
This book, and the well-researched structure of The Effective Change Manager
that lies behind it, are a contribution to the maturing of change management. In
a remarkably short period a team of 17 authors, each with relevant specialisms, has
collaborated to develop this current text. It covers fully the knowledge expected of
effective change managers. It covers key elements of the Change Management
Institute’s accreditation process for change managers, and can be used as the basis
for courses and examinations that support that process, including the APMG
International syllabus from 2015 onwards.
In this current book – The Effective Change Manager’s Handbook – we have
sought to reflect both the breadth and depth of knowledge needed by change
managers across the variety of challenges they face. Our understanding of change
management has been based on several years’ worldwide research by the Change
Management Institute (CMI) about what change managers actually do. Rather than
offering an academic definition of ‘change management’ the book as a whole reflects
this research.
Most importantly, however, this is a handbook. We are not seeking to break new
ground in what we cover here. Our aim is to make existing change management
knowledge both accessible and practical. Given the impact of change on leaders
and managers of many backgrounds and across organizational life, this book is not
written for people in a narrow professional ‘ghetto’. It is designed to address the
needs of many who need to do the work of managing change, even though this is
not their job title. See the following section on ‘Who is this book for?’
In the following pages we offer applications, techniques, checklists and frame-
works that will, we hope, encourage and support excellent practice. If readers return
to this book frequently, dipping into it to find fresh insights or tools to address a
current challenge, we shall have succeeded in our purpose.
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W h o i s thi s b o o k f o r ?
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E dito r ia l a n d
p r actica l i n fo r mati o n
a b o u t thi s b o o k
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T h o s e wh o hav e made
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xxii Those Who Have Made This Book Possible
peer review, the CMBoK describes and defines the knowledge required for a change
manager to practise effectively across a wide range of situations. It is a key resource
for change managers and those using their services.
This book, The Effective Change Manager’s Handbook, is fully aligned
with the CMI’s CMBoK, and provides a convenient reference for those seeking
accreditation under the CMI’s professional accreditation scheme. The CMI
website provides more information about their professional accreditation:
www.change-management-institute.com/accreditation
Acknowledgements
The editorial team would like to thank APMG International for supporting the
development of this book, and the Change Management Institute for allowing us
unrestricted access to the material we wrote for their CMBoK. The partnership
between these two independent organizations has proved most fruitful.
We would also like to express our thanks to the authors (17 contributors in total)
who gave their time freely to write chapters of this book. They have met challenging
deadlines and been generous with their forgiveness when publishing constraints
have required us to edit or omit aspects of their work.
A number of senior change professionals read an early draft of this book. They
made invaluable and constructive comments, and the book is a very much better
publication as a result. The editors would particularly like to acknowledge the
detailed and thoughtful reviews provided by Ira Blake, Helen Campbell, Robert
Cole, Melanie Franklin and Caroline Perkins.
The editorial team at Kogan Page has been enormously supportive in bringing this
book to publication, solving with great patience the various problems with which
we have confronted them. We would like to mention particularly Liz Barlow, who
first believed in the book, and Geraldine Collard and Melody Dawes who have borne
the brunt of our inexperience of the publication process and our tight schedules!
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Au th o r Bi o g r aphie s
Chapter 1
Richard Smith
Richard’s career has focused on organizational development and related people
development issues. This has included both strategic change for organizations and
tactical change for individuals and teams. He worked for a range of ‘blue chip’ organ
izations before establishing a niche consulting practice aimed at releasing potential,
equipping leaders and facilitating change. This consulting work has taken him to
40 countries across six continents, working with global clients as diverse as Unilever,
GKN, Nestlé, Mars and Harvard Business School, as well as with many more local
businesses. He is a chief examiner for APMG Change Management products, and
led the authoring team for the first global Change Management Body of Knowledge,
written on behalf of the Change Management Institute.
Contact: richard.smith@richardsmithassociates.com
Chapter 2
Robert Cole, David King and Rod Sowden
Robert Cole
Having worked in Hewlett-Packard’s research laboratories as a change manager
and strategist Robert left at the end of the dot-com boom to become a consultant
and trainer. Since then he has worked on a number of engagements, mostly as
a change consultant and mentor to internal change managers in local and central
government, as well as medium and large companies in many industries. Robert
teaches a course on strategy at the Bristol Management Centre. He is the author
of a number of online courses in change, and runs a business offering vocational
qualifications in Managing Change.
Contact: robert.cole@c4cm.co.uk
David King
An independent consultant and trainer for over 25 years, David specializes in
designing and delivering change programmes, projects and related learning solu-
tions to organizations in public, private and third sectors. David is an examiner in
Change Management for global qualifications body APM Group International and
a co-author of the Change Management Institute’s Change Management Body of
Knowledge (CMBoK), published in September 2013. David is also author of Think,
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Author Biographies xxv
Learn, Improve!: Turn your business vision into reality, which sets out a practitioner’s
framework of tools and techniques for designing and developing a comprehensive
change programme.
Contact: david.king@systemic.ltd.uk
Rod Sowden
Rod is a certified management consultant who specializes in strategic change pro-
gramme design and recovery. As lead author of Managing Successful Programmes®
(2007 and 2011), he is one of the leading architects of programme management best
practice. His work as lead author designing and developing the P3M3 maturity
model (2008 and 2014) has developed the industry’s ability to understand and model
what successful organizations do. Rod also wrote the MSP® Survival Guide for
Business Change Managers. In 2004 he founded Aspire Europe as an organization
dedicated to delivering programmes and improving organizations’ programme delivery.
Rod has worked in a variety of industry sectors including central government, health,
finance and logistics sectors.
Contact: rod.sowden@aspireeurope.com
Chapter 3
Stephen Jenner
Steve is author of, and chief examiner for, Managing Benefits™ and co-author of,
and chief examiner for, the OGC’s (now Axelos) ‘Management of Portfolios®’. He
designed, implemented and operated the approach to portfolio and benefits manage-
ment that won the UK’s 2007 Civil Service Financial Management Award. Steve also
worked on the development of Project Portfolio and Benefits Management for the
UK government as part of the Transformational Government and Service Trans
formation agendas. He is currently working at Queensland University of Technology
in Brisbane. A professionally qualified management accountant and a Fellow of the
APM, Steve also holds an MBA and a Masters of Studies degree from Cambridge
University.
Contact: stephen.jenner5@btinternet.com
Chapter 4
Patrick Mayfield
Patrick Mayfield has had a career spanning over 38 years in IT-based change and
leadership, in both the public and private sectors. He has worked on frameworks
that were adaptive yet resilient to change of all types and scales. In 2001 he set
up pearcemayfield, an international consultancy and training business. Patrick
authored the chapter on ‘Leadership and stakeholder engagement’, part of the 1997
revised edition of the programme management framework, Managing Successful
Programmes® (MSP®). More recently he has led research into high-performing
programme and project managers, and in 2013 he published his book, Practical
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Chapter 5
Ranjit Sidhu
Ranjit is a trainer, facilitator and change management consultant with over 20 years’
experience on a variety of projects spanning Europe, North America and Africa. Her
credentials include being an accredited trainer for APMG International’s Change
Management, AgilePM, and Facilitation qualifications, and the AXELOS PRINCE2®
certification. Ranjit is also a certified trainer of NLP, and an assessor for the APM
Practitioner. She is a contributing author for the Gower Handbook of People in Project
Management and The Effective Change Manager (CMBoK) from the Change Manage
ment Institute. Her book, Titanic Lessons in Project Leadership, uses that tragic case
study to highlight guidelines for effective communication and team building.
Contact: ranjit@changequest.co.uk
Chapter 6
Caroline Perkins
Caroline Perkins founded the Change Management Institute (CMI) and is its
president and spokesperson. CMI is a global, voluntary, ‘not for profit’ professional
organization that promotes and professionalizes change management, providing
networking, education and accreditation services. Under Caroline’s leadership CMI
has opened active chapters across Australia, the UK, New Zealand, China and
Brazil, rolled out the first global professional accreditation programme for change
managers, and developed the Change Management Body of Knowledge (CMBoK).
Caroline also owns and manages Carbon Group, a specialist international change
consultancy that helps organizations to develop change strategies and manage
change programmes. Caroline’s book The Agile Change Management Methodology
outlines her researched-based organizational change maturity model, providing a
road map to organizational agility. She is an accredited change manager (ACM) and
an accomplished speaker on the subject of organizational change.
Contact: cperkins@carbon-group.com
Chapter 7
Nicola Busby
Nicola specializes in planning, implementing and embedding change initiatives in the
non-profit and public sector in the UK. She has supported thousands of individuals,
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Author Biographies xxvii
Chapter 8
Ira Blake
Ira has expertise in transformational change, specializing in organization effective-
ness and capability. Over 13 years, Ira has led change initiatives in multiple industries
including pharmaceuticals, not-for-profit, central and local government, retail bank-
ing, travel, retail and transport. She has worked as an internal consultant and external
consultant – for a big-five consultancy and now as director of her own company.
Ira is the author of Project Managing Change and has written articles for Project
Management News and Business Reporter. Ira is an accredited change manager
(ACM), MCIPD qualified and holds an MBA from Cranfield University. She is the
co-lead for the Change Management Institute UK and a contributor to the first
global Change Management Body of Knowledge.
Contact: ira.blake@uncommonexpertise.co.uk
Chapter 9
Richard Smith
See Chapter 1.
Chapter 10
Dan Skelsey
Dan’s career as a programme manager, change manager and educator has spanned
five continents. He has used facilitation as a tool in every role, and realized that
this was a learnable and vital skill for all forms of management. In 2007, he estab-
lished Project Laneways with a mission to provide quality learning experiences in
change management, project management and related topics. He was the first to
offer the APMG Facilitation Practitioner certification training in Australasia. Dan
is an examiner for the APMG change management qualifications, and was one of
four authors for the first global Change Management Body of Knowledge. He has
a Masters from Cambridge and is a graduate of the Australian Institute of Company
Directors.
Contact: dan.skelsey@project-laneways.com.au
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xxviii Author Biographies
Chapter 11
Helen Campbell
Helen specializes in building organizational change capability in project, business
and leadership teams. She has worked in the UK, Europe and Australia managing
a wide range of changes, from a terrorist bombing to anti-money-laundering regula-
tion. She is a Master-accredited change manager and has specialized in change manage-
ment for over 15 years in private, public and not-for-profit sector clients such as
Ernst & Young, BT Financial Group, NSW Government, British Telecom, NatWest
Bank and Westpac. Helen is co-founder and chief assessor for the Change Management
Institute. She is author of Managing Organizational Change (Kogan Page, London,
May 2014) (www.cycleofchangemodel.com), was a guest lecturer at University of
Sydney and is frequently invited to speak at conferences and on expert panels.
Contact: helen@catalyst-solutions.com.au
Chapter 12
Ray Wicks
Ray’s consultancy career has been focused on designing and facilitating leadership
and management development solutions. His particular expertise is in helping leaders
and managers to understand and deal with the people side of change. He is accredited
to train trainers in transition management (William Bridges), which provides perspec-
tives in helping organizations to successfully implement their change agendas. Ray’s
consulting work has taken him to 23 countries across Europe, North America, Asia
and Australia, working across a range of organizations, sectors and cultures.
Contact: ray.wicks1@btinternet.com
Chapter 13
Tim Cole, Martin Lunn, Una McGarvie and Eric Rouhof
Tim Cole
Following a degree in accountancy and training as a chartered accountant, Tim’s
career has focused on the development and assessment of people. He has used busi-
ness and financial simulations as a key methodology, offering blended learning and
development and experiential assessment processes. He worked for a range of
‘blue chip’ multinational organizations before establishing and directing niche con-
sulting practices aimed at recognizing and nurturing talent. His consulting work
has taken him to around 40 countries across most continents, working with global
clients as diverse as Unilever, Heinz, Cazenove and Rolls-Royce, as well as with
many local businesses. Tim also provides global search and recruitment services,
and coaches individuals on personal marketing and career matters.
Contact: tim@timcole.com
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Martin Lunn
Martin has worked in manufacturing engineering and subsequently in operations
management for more than 20 years. He has experience in automotive, service and
distribution industries. Now working for GKN plc as a global continuous improve-
ment leader Martin works with leadership teams from 140 sites across the world.
He provides support in all aspects of lean deployment, covering strategy and vision,
lean education and implementation support in the areas of production, business
process and employee involvement.
Contact: martin.lunn@gkn.com
Una McGarvie
Una’s career has focused on the challenges of managing organizational change,
including advising major change programmes on the impact of change from a HR
perspective. Her experience includes delivery of a variety of transformational
change initiatives including national police IT systems, government policy, employee
engagement, procurement, mergers and organizational redesign. She is a director
of Connecting the Dots Ltd, providing learning and consultancy across a range of
sectors including coaching senior leaders of major UK government change pro-
grammes. She has an MSc in Project Management, a post-graduate qualification in
Leadership and is a member of the APM, BCS, CMI and European Mentoring and
Coaching Council. Una is also a Chartered Fellow of the CIPD.
Contact: una@connectingdots.co.uk
Eric Rouhof
Eric is a passionate SHE professional with Masters degrees in Chemical Engineering
and SHE Management. He respects the paradox of SHE Management: it is by nature
a form of risk management, but it is also a value – ‘nobody gets hurt here’. For him,
the key to sustainable SHE results is to win the ‘hearts and minds’ of employees, while
ensuring that management defines appropriate norms and values. Eric’s functional
experience includes research and development, project management and plant
management. Currently ‘Director Quality and SHE’ at a life sciences and material
sciences multinational, he covers sites in Europe, America and Asia. Eric also runs
a small SHE consultancy, serving various industry sectors, including hospital patient
safety.
Contact: rouhofconsultinggroup@gmail.com
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1
A change 01
management
perspective
Richard Smith
Introduction
Change is a necessity for survival. This was brought home to me many years ago
as I read Charles Handy’s book The Empty Raincoat: Making sense of the future
(Handy, 1994). He describes a pattern, the ‘sigmoid curve’ (shaped somewhat like a
Greek letter ‘s’: see Figure 1.1). It is a classic life cycle that traces the stumbling start,
the rise and success, and the eventual decay of empires, organizations, products,
processes and even an individual person or career. Handy points out that the timescale
is becoming ever more compressed. ‘New’ products, processes, organizations and
initiatives rise and decay at an ever-faster rate.
Time
This sounds depressing, but change is possible (Figure 1.2). A new curve can be
begun. As Handy puts it: ‘The right place to start that second curve is at point A,
where there is the time, as well as the resources and the energy to get the new curve
through its initial explorations and floundering before the first curve begins to dip
downwards.’ The difficulty is that at point A there is no apparent and urgent need
for change. That tends to come at point B, when disaster is imminent. By this stage,
however, the time, energy and resources to support the needed ‘new beginning’ are
no longer available.
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2 Chapter 1: A Change Management Perspective
A
B
Time
C h a p t e r co n t e n t s
Section A: Why change management matters
Section B: Change and the individual
Section C: Change and the organization
Section D: Key roles in organizational change
Section E: Organizational culture and change
Section F: Emergent change
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Section A: Why Change Management Matters 3
Introduction
This section sets out to assess why effective change management is important. It
describes ‘the knowledge required to offer clear, concise and well-evidenced informa-
tion about the role of effective change management in enabling successful change in
organizations’ (CMI CMBoK, 2013).
I shall mention some of the research showing how often and how seriously change
initiatives fail. More encouragingly I outline key research findings that show how
a range of factors can be managed to increase the chances of successful change.
The research offers change managers valuable evidence to use when advocating good
practice.
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Further reading
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6 Chapter 1: A Change Management Perspective
●● The importance of clarity about the various ways in which the organization
expects to benefit from the change.
●● The way that stakeholders are identified and strongly connected to the change
through a variety of communication practices.
●● The way that change and project management practices are aligned and
managed, making them appropriate to the size and structure of the organization.
●● How individuals and teams can be supported through the change by good
leadership, appropriate training and great facilitation.
●● Advocacy of best practice across the organization, supported by effective
information gathering, relevant case studies and application of lessons
learned from past change initiatives.
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Section A: Why Change Management Matters 7
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8 Chapter 1: A Change Management Perspective
Summary
This brief section has highlighted the difficulty of making change initiatives effective
and some of the factors that can help. Change managers who know this research are
better able to influence their colleagues to apply good change management practices.
Further reading
Introduction
This section begins by introducing two significant and widely respected models
of individual change. Both offer insights into change as a human process, and have
direct, practical application for those seeking to lead and manage change. It then
introduces other reasons why people may embrace or resist change – the impact of
motivations and of personality – before concluding with some wider observations
about resistance to change.
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Section B: Change and the Individual 9
2
1 7
3
4 Key
1 – Shock
2 – Denial
6 3 – Anger or blame
5
4 – Bargaining and self-blame
5 – Depression and confusion
6 – Acceptance
Time 7 – Problem-solving
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Section B: Change and the Individual 11
work system to make my life easier. This allows people to try out new approaches,
make new discoveries and eventually to integrate these into their new ‘way of being’.
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12 Chapter 1: A Change Management Perspective
and blame from the recipients of change are not necessarily evidence that
change is being managed badly. It is wise not to take such anger and blame
too personally!
5 It is important to note that this characteristic pattern of human response to
change remains true for the positive changes in life as well as for unwelcome
ones. Most people who have accepted a new ‘dream job’ will be able to trace
their experience over the first six months through this curve! Of course not
everyone will experience these things in exactly the same way, but many will
recognize – from their own experience – elements of these descriptions.
Tip
The change curve is a personal journey. Don’t expect all members of a peer
group to experience change in the manner of synchronized swimmers!
Different personalities, different life experiences, different personal
circumstances at the time of the change – all these and more will affect
the way that different individuals respond – and how quickly.
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Section B: Change and the Individual 13
3 Coming out of the transition and making a new beginning. This is when people
develop the new identity, experience the new energy, and discover the new sense of
purpose that make the change begin to work.
(Bridges, 2009)
ENDINGS
NEUTRAL ZONE
NEW BEGINNINGS
It will be clear how closely this ‘transition’ process mirrors the change curve described
above. It is also helpful to notice two key developments that Bridges’ thinking high-
lights. First, he sees these three ‘phases’ as sequential but overlapping processes: each
of these needs attention at the right time, to ensure that planned changes are actually
implemented by people. These processes are explored in more detail below. Second,
he focuses on the creative potential of the ‘neutral zone’, not just as a time of confu-
sion and depression but as a time when there is sufficient fluidity for experimentation,
a time when genuinely new attitudes and behaviours can be developed.
2.1 Endings
The principal business of this stage is for people to be clear about what particular
details of their working life will come to an end as a result of the change. To ‘let go’
of something I must first realize that I’m holding it. Things to consider, for example:
●● The people in the work process – upstream and downstream – may be different.
●● Communication may be more through clicks on a screen, less by telephone.
●● The location of desks and the community around the coffee machine may
change.
These issues and many like them are easily forgotten as we debate change strategies
– but each is an ending for those affected. Some (not necessarily all) will feel like losses.
Tip
You can ask people to help you identify endings and losses:
‘What would change for you if we...?’
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14 Chapter 1: A Change Management Perspective
The advice offered by Bridges to managers and leaders on how to help people
through this process of ‘letting go of the old ways and the old identity people had’
would include:
●● Describe the change in very specific terms, so that people are clear what
precisely will be different.
●● Do not dismiss as trivial anything that people are losing. Acknowledge them
as losses – large and small – with genuine empathy.
●● Let people know what will not change. For example, a statement that existing
workgroups will be kept close together in the new office configuration may
make a big difference to the people in those groups.
●● Identify the reasons why the current situation cannot continue. There will
be gains amongst the losses.
C a s e s t u dy
A food company was automating a packing line, which would require only one operator
after the change instead of 17 prior to the change. This would clearly break up established
work groups, but guarantees were given to affected staff about continuity of employment.
Further commitments were given that posts on the new, technologically advanced line
would be filled from existing junior staff, who would be provided with the training required.
●● Don’t confuse problems that people raise about the content of the change
with those arising from people going through the change process. Problems
raised about the content are valuable input and will improve the change.
●● Show respect for all that has gone before. Help people to see how the best
aspects of the past – its successes and, most importantly, its values – will be
preserved and enhanced by the change.
●● Communicate prodigiously. Even if you’ve already done so, do it again.
It is difficult to communicate too much!
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Section B: Change and the Individual 15
those affected, but asserts that precisely for these reasons it opens the possibility of
experimentation and for developing genuinely new patterns.
Think of the neutral zone as a journey from one place to another. Here are some
implications:
●● Except in science-fiction films I cannot be ‘beamed’ from one place to another.
The journey is inevitable. However, I can choose to see any journey as a mere
inconvenience – an unwelcome interruption to my life, to be kept as short as
possible – or as an opportunity to look around, to learn, to see new things.
Using an image such as this can help people to give meaning to this period.
It can legitimize the opportunities that may occur if we look for them.
●● During a journey I am likely to be ‘living out of a suitcase’. My normal
routines are disrupted and I need new ones to fit in with the timings of flights,
transfers, overnight hotels and the inevitable delays. In adapting myself to
these new routines I may learn better ways of managing myself when I am
settled. In the same way, individuals and teams passing through their neutral
zone need temporary solutions to the problems of transition. Some of these
adaptations will prove to be useful innovations once the transition draws to
a close. Notice these and celebrate them.
●● A journey can be a lonely time. Encourage those in the neutral zone to
connect more intentionally with other people and other teams (other
travellers or those now securely arrived at their destination). Even planned
social events that bring people together outside their routine work can help
people to remain ‘grounded’. Consider including the friends or family who
are their key personal support systems.
●● Providing guidance to many people on their own individual journeys can be
difficult. Travel agents have helpline numbers to ensure that they receive
feedback from travellers and can revise travel arrangements where necessary.
When you and your people are in the neutral zone, it is very valuable to set
up temporary feedback and communication systems that will ensure you
know the impacts that a range of organizational decisions will have on your
‘travellers’. Conventional ‘chain of command’ communication may not be
sufficient during this period.
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16 Chapter 1: A Change Management Perspective
Making a new beginning is a risk time. It means committing to a new kind of future.
Bridges recommends four things that encourage such commitment. He suggests that
people need:
A purpose for the future after the change, which encourages people to focus on
making it work.
A picture that will engage the creative imagination of those affected, so that they
can already ‘touch and feel’ the positive situation after the change.
A plan that is credible, and that gives people a clear route to success in
implementing the change.
A part to play, both in the execution of the plan and in the ‘new world’ after
the change is accomplished.
Advising leaders and managers on change, Bridges suggests that making new begin-
nings into a reality requires:
●● Consistency in behaviour and messaging from all seen as influential in the
situation after the change. This includes recognizing the importance of
symbolic decisions.
●● Visible early successes to encourage and reassure people: make these widely
known.
●● Celebration of key milestones on the change journey – especially journey’s end!
2.4 Summary
The human change-wisdom of William Bridges brings together many elements of
practical advice found in other writers on change, and is a sound basis for coaching
business change leaders on effective approaches. Bridges summarizes his thinking
like this:
Letting go, repatterning and making a new beginning: together these processes reorient
and renew people when things are changing all around them. You need the transition
that they add up to for the change to get under the surface of things and affect how
people actually work. (Bridges, 2009)
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Section B: Change and the Individual 17
The
need for
self-
actualization
Esteem needs
Love needs
Safety needs
Physiological needs
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18 Chapter 1: A Change Management Perspective
The point that Maslow makes about these basic needs is that they tend to be hierar-
chically ordered. That is, it is only after physiological needs are sufficiently satisfied
that individual concern focuses on safety needs and so on up the hierarchy. In other
words, a lower-level need has power to motivate behaviour until it is sufficiently
satisfied, then the next higher category of need tends to take over.
Tip
Work – at its best – has the possibility of addressing all these ‘basic needs’.
In view of our earlier discussion about ‘endings’ this framework can be used
by leaders and managers to assess the likely impacts of endings and losses
on different people.
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20 Chapter 1: A Change Management Perspective
even a modest amount of cognitive skill, increases in financial reward are not related
to increased performance. Indeed the reverse may be true. This implies that organiza-
tions need to pay people sufficient that pay is no longer an issue (in Herzberg’s terms,
not a ‘dissatisfier’), but that beyond that financial reward may have limited value.
Instead, Pink suggests that there are three key motivators for ‘knowledge work’:
Autonomy: people like to be self-directed, with a high degree of freedom to
decide the direction, methods and circumstances of their work.
Mastery: people like to do things well, and to get better at doing things they
value, so opportunities to grow, develop and excel at their work are
intrinsically motivating.
Purpose: people like to feel that their work has meaning and value, and will
choose to invest themselves in activities they consider worthwhile.
Tip
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22 Chapter 1: A Change Management Perspective
respond to particular leadership situations, those same business leaders are more
evenly balanced between the two poles. This suggests that under the pressure of
real-life situations, behaviour and actions might not always align well with inten-
tions and words. Trust is very important in managing change, and this illustrates
the importance of ensuring that the leaders, especially senior leaders, in any change
plan behave consistently with the culture and norms they espouse.
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Tip
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24 Chapter 1: A Change Management Perspective
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Section B: Change and the Individual 25
●● Look for the objectively ‘right’ answer ●● Seeking a widely accepted outcome
Source: Modified and reproduced by special permission of the Publisher, CPP, Inc, Mountain View, CA 94043
from Introduction to Type, Sixth Edition by Isabel Briggs Myers. Copyright 1998 by Peter B Myers and Katharine D
Myers. All rights reserved. Further reproduction is prohibited without the Publisher’s written consent.
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26 Chapter 1: A Change Management Perspective
Those who know the MBTI® instrument would take the four letters representing
a person’s four preferences between the individual pairs to make a summary such
as ESTJ, ISTJ, ENTJ, INTJ and so on – there are 16 possible combinations. These
four-letter type summaries create a rich picture of the way that someone is likely to
behave across a range of situations, and towards a variety of different people. This
model can help people to clarify their own preferences and to understand how they
differ from other people.
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Section B: Change and the Individual 27
Summary
The differences between people highlighted by considering personality ‘type’ have
implications for many aspects of change. For example:
●● In facilitating a working group, using a format that allows time for those
who are more ‘Introverted’ to think before they speak will prevent their ideas
being lost in the more ‘in the moment’ flow of ideas from the ‘Extravert’
members of the group. Chapter 10, Section C3 says more about working
with different ‘types’ in a facilitation setting.
●● When communicating information during a change initiative we can ensure
that the big picture, the vision for the change, is clear (meeting the needs of
those with an ‘iNtuitive’ preference), whilst providing a backup resource of
data and facts (to meet the needs of those with a ‘Sensing’ preference).
For anyone involved in facilitating change it is important to learn to observe, en-
gage with and get the best from a variety of people. This is a key element of ongoing
personal and professional development. A framework such as that used in the
MBTI® can provide a useful structure for such observations.
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28 Chapter 1: A Change Management Perspective
Source: istockphoto.com
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30 Chapter 1: A Change Management Perspective
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Section B: Change and the Individual 31
Summary
This section has summarized ideas about the process of change for individuals. It has
described a range of perspectives on human motivation and considered how these
relate to support for a change effort. Discussion of the way different people think
and feel (the way they are ‘wired’) has highlighted some important considerations
when designing and communicating change, and has offered insights into why people
embrace or resist change.
Further reading
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32 Chapter 1: A Change Management Perspective
1 Trace the highs and lows of your own journey through a personal
experience of change that you found difficult. Repeat the exercise
for a change you chose and positively wanted. Is there a common
pattern?
2 For a change you have undergone, identify the specific ‘losses’ you
experienced and the personal learning you gained from the change process.
3 Try to identify the main features of your own personality ‘type’ – if possible
arrange to complete a suitable questionnaire and discuss it with the person
who administers it for you. How does this affect your approach to changes in
your working life?
Introduction
Organizations seldom change without some external reason or pressure to do so.
Changes may be wide, affecting many of the organization’s functions, or narrow,
having limited impact outside one department. They may be large, requiring major
investment, or small, costing relatively little in finance and people.
This section introduces some metaphors that people use when describing organ
izations and change. It then focuses on three particular models of the change process.
This provides a foundation for us to think about how change initiatives vary and
require different approaches, before we conclude with a brief discussion of some
factors that help or hinder change.
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Section C: Change and the Organization 33
Organisms ... are ‘open systems’ Leaders need to ensure The whole ‘ecosystem’
that adapt and respond the organization is of the organization has
to their environment. nourished and the to be considered when
Different species of various parts of it are implementing change.
organization will well connected to each There will always be
flourish in different other. They address different ways to
environments. They factors that inhibit the achieve a given end
have a definite life organization’s growth state.
cycle. and health.
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34 Chapter 1: A Change Management Perspective
Ta b l e 1.4 continued
Political systems ... are systems of Power is a key issue. Conflict is expected
government managing Stakeholders are and managed.
the common and identified and, through Attention is paid to
conflicting needs of negotiation, alliances aligning various
various interest are formed. Control of sources of power
groups. Coalitions of boundaries, information (formal authority,
interests form, and and technology give knowledge/
power is used to get leverage. Powerful information, control of
things done. oratory is valued. resources) to support
the change.
Psychic prisons ... reflect the Leaders must be aware The personal
unconscious ‘shadows’ of unconscious symbolism of change
we carry over from assumptions they for individuals and
family and other experience or that groups needs to be
relationships, so that others project on considered. Superficial
structures, rules, to them, avoiding assumptions of
beliefs and behaviours ‘thought control’. rationality are avoided
are not corporate but Their awareness of and care is taken to
personal. They can these issues leads avoid ‘vision’ being
become like cults, them to focus on seen as a cheap
seeking to ethical dimensions of promise of a solution
‘tie people in’. organization, life and to problems.
purpose.
Flux and ... are seen as Leaders must let go of Managing change in
transformation examples of chaos and the idea that they truly the strict sense is
complexity, where control outcomes. They impossible! We can
hierarchy and control can decide on a desired understand the flux
have limited relevance. outcome, protect key around us and ‘nudge’
Order emerges values and use small it where possible,
naturally from a changes to create large helping desirable
process of continuous effects in the right outcomes to emerge.
transformation. general direction, Awareness of
adjusting emphasis as competing desirable
the future unfolds. outcomes, and of
potential ‘feedback
loops’ to amplify small
changes, support
positive movement.
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Section C: Change and the Organization 35
Ta b l e 1.4 continued
Morgan writes:
my aim is not to present an exhaustive account of every conceivable metaphor that
can be used to understand and shape organizational life. Rather it is to reveal, through
illustration, the power of metaphor in shaping organizational management and how
the ultimate challenge is not to be seduced by the power or attractiveness of a single
metaphor – old or new – so much as to develop an ability to integrate the contributions
of different points of view. (Morgan, 2006: xii)
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36 Chapter 1: A Change Management Perspective
Thinking about these (and other) metaphors can make a profound difference to the
way we manage change, in a number of ways:
1 It is important to listen to the words used by those leading change, and to
identify the patterns of metaphor that lie behind them. This helps to build
effective communication with those concerned, using language they will
understand and appreciate. It also helps us to recognize where those leaders
may have mental models (probably unconsciously) that risk limiting their
thinking about change.
2 It provides a framework for thinking about a particular change. Which
metaphor(s) provide the best insights into the issues involved? How might
we look at the change from other perspectives? This process is like looking
through different lenses to understand change more deeply. It helps with
defining the change and with understanding its likely impacts.
3 It offers a way to consider different approaches to change offered by different
authors and consultants, helping us to evaluate the likely strengths and
weaknesses of particular approaches.
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Section C: Change and the Organization 37
Identify the
Create a
Define the forces that
vision of
current will help drive
the desired
situation and resist
end-state
change
Lewin (1951) extended this deceptively simple model (Figure 1.8) to describe groups
in change. He recognized that the collective mindsets and practices of a group must
be broken down before a change can occur – and that subsequently effort is needed
to consolidate the group’s new mindset and practices.
3 Identify the forces that will help to drive and resist the
change, increasing the driving forces identified and decreasing
the resisting forces. Once again, this is best carried out by a
group of those leading and affected by the change. Chapter 2,
Section B2.2 describes Lewin’s ‘force field analysis’ and
suggests a way to conduct this activity.
In Section B3.6 we have already seen how Schein (1993) built upon Lewin’s ‘unfreeze’
stage with a prescription for those seeking to create change in a group that involves
three apparently conflicting activities:
●● disconfirmation;
●● creation of guilt or anxiety;
●● creation of psychological safety.
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38 Chapter 1: A Change Management Perspective
How can the third of these be compatible with the first two? The first two relate to
‘survival’ anxiety, which is needed to ‘unfreeze’; the third is about reducing learning
anxiety, creating safety to learn.
Refreeze
This is the stage at which new work practices become new work habits, and when
new ways of thinking become the conventional wisdom. It is a time for vigilance on
the part of change leaders, who must address any tendency for people to talk, think
or act in line with the old ways. At this stage it is appropriate to reward behaviours
and results that are aligned with the changed environment.
1 E
stablishing Kotter identifies sources of complacency and ways to raise
a sense of the sense of urgency, but is clear that this stage is not complete
urgency until ‘a majority of employees, perhaps 75% of managers overall,
and virtually all of the top executives... believe that change is
absolutely essential’ (Kotter 2012a, p 51). This is a high bar to
achieve, but Kotter sees it as essential.
2 C
reating The change-leading coalition needs to be characterized by trust
the guiding and a common goal, and must contain people with strong
coalition positional power, appropriate and varied expertise, credibility
across the organization and effective leadership.
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Section C: Change and the Organization 39
Ta b l e 1.5 continued
3 D
eveloping Kotter sees vision as: ‘a picture of the future with some implicit or
a vision and explicit commentary on why people should strive to create that
a strategy future’. The vision needs to be something that people can really
imagine, and should offer positive outcomes for the organization’s
key stakeholders. Combining both head and heart, vision is
created by teams, a time-consuming process.
6 Generating Short-term wins provide a boost to the change initiative. They help
short-term wins minimize negativity and promote support for the change. They also
provide opportunities to recognize individuals who deserve credit
for contributing to the change thus far. Don’t just ‘hope’ for them
to happen; make sure short-term wins are a significant element of
the change plan.
7 C
onsolidating There is always a pressure to revert to the old ways. Sustaining
gains and and embedding change requires ongoing effort over a long period.
producing Kotter encourages the guiding coalition to ‘press on’ and deliver
more change more change, increasing resources not reassigning them away
from the change effort. He also emphasizes the importance of
continued clear leadership and direction from the top, and of good
project and programme management disciplines throughout.
nchoring new
8 A It has been said that ‘culture eats strategy for breakfast’ – and it
approaches in sometimes eats change as a second course! It is the nature of
the culture culture to be mostly unconscious and deeply embedded over
a long period. Kotter points out that even apparently successful
change programmes can be ‘eaten’ over the years if the
organization’s culture is not aligned with them. It is vital to identify
aspects of ‘old’ culture that threaten the change and to address
them through highlighting the positive outcomes of the change,
through talking about the old culture, valuing it for its time, and
where necessary through using changes of staff (especially
visible promotions) to strengthen the new culture that is needed.
For more on culture see Section E.
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40 Chapter 1: A Change Management Perspective
placing a strong focus on the role of effective leadership. It is ‘required reading’ for
those leading or supporting change programmes, not least because many senior
organization leaders will also have read it! The delightful fable Our Iceberg Is
Melting (Kotter and Rathgeber, 2006) is also based on (and teaches) these eight
stages.
There is an underlying assumption in Kotter’s writing that, given the right process
and the right leadership, change can be planned and managed. He acknowledges at
a number of points the ‘messiness’ of change and offers prescriptions for dealing
with this. In his seventh and eighth stages Kotter does engage with the complexity of
organization systems and how one thing affects another. However, he appears to see
organizations and change primarily through the machine, architecture and political
systems metaphors described above, and does not engage strongly with the less
deterministic metaphors.
Senge points out that the kinds of systems thinking that explain why different tree
seeds grow to different heights, shapes and states of health – or not at all – can be
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42 Chapter 1: A Change Management Perspective
The ‘flux and transformation’ metaphor helps to explain how change can occur
in very large and complex organizational systems, where the nature and extent of the
forces involved are not easy to map. We do the best we can with systems thinking,
notice the effects on the systems of any interventions we make and adjust our behaviour
accordingly. Sometimes the best we can do is to decide on the most important out-
comes we wish to achieve and try to intervene in ways that direct the organization’s
energy accordingly. Both Kotter’s and Senge’s views contain significant truths and
different change situations, and organizational cultures may call for emphasis on one
or the other approach. Sections C3, E and F below say more about this.
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Section C: Change and the Organization 43
C a s e s t u dy
The IT department of a major banking institution was seen by its business community as
unresponsive. The culture was bureaucratic and hierarchical, so it was difficult for the
organization’s bright, creative people to get things done through the management systems.
A transformation process was put in place, championed by the divisional CEO and led by
the board member responsible for quality, with strong support from the Organizational
Development (OD) department. Board members identified credible, well-respected staff
members to act as continuous improvement facilitators. A major programme of experiential
learning was initiated, using the facilitators to help groups to learn and apply continuous
improvement tools. All attendees began to identify real work improvements they could
make and were encouraged to work with colleagues, using a facilitator, to carry their ideas
forward.
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C a s e s t u dy
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Section C: Change and the Organization 45
C a s e s t u dy
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46 Chapter 1: A Change Management Perspective
Summary
This section has sought to encourage depth in the way that organizations and their
leaders think about change. It has presented a range of metaphors that may un
consciously influence such thought. It has explored examples of both tightly and
loosely structured approaches to change and has illustrated situations where each
might be most useful. The challenge for change managers is to use these insights to
encourage their busy colleagues towards a more reflective approach to future change
initiatives. Such reflection enables leaders to become more intentional about the
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47
HIERARCHY NETWORK
GUIDING
COALITION
INITIATIVE
INITIATIV
SUBINITIATIVE
VOLUNTEERS
STAFF THE NETWORK
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48 Chapter 1: A Change Management Perspective
approach adopted to change and the images used. In turn this stimulates organiza-
tional and individual learning, and builds change capability.
3 What changes have you experienced that needed a highly structured approach?
... and a more organic approach?
4 How well did the approaches actually applied fit with what was needed?
Further reading
Introduction
In this section I focus on the roles and functions performed by people engaged in
change initiatives. These are not ‘job descriptions’ or ‘job titles’ in an organizational
sense. They are archetypes – ‘typical pictures’ of these roles and functions – and are
not linked (here) to the organizational roles (job titles) used to deliver change, such
as change management, project and programme management. Some applications of
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Section D: Key Roles in Organizational Change 49
these roles in organizational settings and related governance processes are discussed
in Chapter 7, Section A4 and Chapter 8, Section A.
Sponsor
Line management
Change ‘targets’
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Section D: Key Roles in Organizational Change 51
Ta b l e 1.6 continued
Targets Implementers
(Conner’s ‘Targets’)
●● The people who must
actually change!
●● ‘Listen, enquire,
clarify concerns
with sponsor’
●● Provide feedback to
sponsor on how things
are working out
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Section D: Key Roles in Organizational Change 53
●● to advise sponsors, line managers and targets when they see opportunities to
add value;
●● to smooth access to resources needed by various groups, knowing where to
go for help;
●● to help sponsors, line management and targets to fulfil their own roles well
and to avoid ‘taking over’ others’ roles.
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Section D: Key Roles in Organizational Change 55
Sponsor
Other change
Change initiative
initiatives?
Project 1 Project 2
Etc
Manager Manager
Sponsor
Other change
Change initiative
initiatives?
Change Manager
Project 1 Project 2
Etc
Manager Manager
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56 Chapter 1: A Change Management Perspective
strategic role involving high levels of expertise and leadership). Organizations whose
change management thinking is still developing embed tactical expertise in projects,
focusing on bringing change management insights and change agent skills to this
level.
However, this does not deal with the question about who these ‘change managers’
are. More and more organizations are appointing people with the job title ‘change
manager’. These may be based within an established project management office or
sometimes in a dedicated change management office. In some organizations the
Organizational Development (OD) function (usually associated with, but slightly
separate from, the HR department) is the provider of change management services
to the organization.
At the time of writing, there appears to be some regional variation around the
world in how titles are used. For example, a common job title in Australia is
‘change analyst’, which (confusingly) may refer either to a technical role analysing
changing technologies, but which is also often used for those employed to support
the ‘people’ side of change management. This responsibility for contributing to the
‘people’ side of change is also sometimes assigned the job title ‘change advocate’.
Networks of change advocates (or sometimes ‘change agents’ or ‘field change agents’)
are sometimes established by geographically spread organizations. These are designed
to provide resources through a period of significant change.
C a s e s t u dy
A large local government organization going through major change established a network
of over 40 volunteer ‘change advocates’ to fill the gap between the process of delivering
change and the people on front-line services who needed to change. Operating as a network,
the change advocates engaged with senior managers to promote change and provide
feedback from staff. These advocates can be seen as an example of Kotter’s ‘guiding
coalition of the willing’ that come together to make the change work.
Our conclusion is that there is a growing consensus about the need for and value of
change management at a local infrastructure level, within projects and increasingly
at a more strategic level. However, there is as yet little agreement about job titles.
People with the job titles ‘change manager’ and ‘OD specialist’ sometimes have re-
markably similar accountabilities. Tentatively, though, we do see job titles such as
these (or similar ones using the term ‘director’) emerging as the more strategic or policy
roles, leading or overseeing those with job titles such as ‘change analyst’, ‘change
advocate’ and ‘change agent’.
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Section D: Key Roles in Organizational Change 57
C a s e s t u dy
One CEO was seeking to generate fundamental change across his organization. He believed
the executive management was committed, and that much of the ‘shop floor’ level was
committed – yet communications seemed to get lost in the middle, in what he termed ‘the
blotting paper layer’!
This case-study description highlights the key importance of engaging the middle
management – in many ways the heart of the organization – in the change process.
At best this level provides excellent, credible local advocacy for the change, acting
as visible role models. They can pilot ideas and give feedback on the practicalities of
implementing change. They can develop the plans that will make change effective.
Failing to engage and envision this core group does indeed create an inert and highly
absorbent blockage to the change process.
We describe middle management as ‘the heart of the organization’ because they
are typically people with some years invested in its success and its people, and who
in general will want it to succeed. Involve middle management early. Create a sense
of urgency – and of the need for change – by giving privileged access to the thinking
that has led to the change. Invite help in making proposed changes practical. Show
willingness to respond to their concerns and critiques. Above all, communicate copi-
ously with this key layer. Doing so enables them to ensure great communication to
their people.
This ability of middle management to communicate credibly and directly to their
people is critical. Reflecting on Hyatt and Creasey’s (2003) summary of factors con-
tributing to change management success, Cameron and Green comment:
One of the most striking conclusions to draw is that employees need to hear about
change from two people – the most senior person involved in the change and also their
line manager. The senior manager is best suited to communicating business messages
around the change, whereas the employee’s line manager is best suited to communicating
more personal messages. This ties in with the notion that the overarching vision and
strategic direction once communicated needs to be translated into a local context.
(2009: 334–35)
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58 Chapter 1: A Change Management Perspective
Change teams A term usually used to describe the governing team leading
a particular change initiative.
Virtual teams This is not strictly a type of team, but rather a way of working
when members of any team type are geographically dispersed.
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C a s e s t u dy
One country group within a global organization deliberately created a formal matrix
structure. This overlaid work groups designed to address the needs of particular customer
groups (large supermarket chains, wholesale distributors, local shops etc) on a structure
based on traditional functional expertise (marketing, sales, finance, HR, distribution etc).
The nature of leadership changed; all managers and staff had to work by influence and
agreement rather than command and control. However, the initiative delivered sustained
business benefits.
Summary
In this section we have discussed archetypal roles and functions in change. These
offer change managers a framework for reviewing the way their own organizations
engage different individuals and groups in support of change. No matter how these
roles are allocated in a particular organizational context, they will be needed. The
section has also acknowledged the significance of team structures in supporting
change, and the risk that they might undermine it if not given appropriate attention.
Further reading
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60 Chapter 1: A Change Management Perspective
Introduction
In this section I discuss ‘organizational culture’. By this I mean the established system
of accepted behaviours, values, beliefs and assumptions that is widely shared within
the organization, and which as a result no one notices. In this sense culture is ‘what
everyone knows’ or ‘the way things are done around here’. The key is that because
‘everyone knows’, no one questions – or if they do they are felt to be rocking the
boat.
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Section E: Organizational Culture and Change 61
‘bad’, based on the shared ideals and aspirations of those in the organization,
and as a result guide how people want to behave ‘at their best’. A ‘work hard
to succeed’ ethic, or a strong value about ‘work–life balance’ are potentially
contrasting examples of values. Although they may occasionally be put into
words, norms and values are most often noticed when they are violated.
The rest of the time they are simply assumed.
●● Level three (deepest): basic assumptions. In national culture, Trompenaars
and Hampden-Turner give as an example the assumption that ‘all people are
equal’. Basic assumptions are seldom articulated (except as political slogans!)
but underpin many of the norms and values of some societies.
C a s e s t u dy
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62 Chapter 1: A Change Management Perspective
C a s e s t u dy
One company board led the organization towards a personal, consensual, influence-driven
leadership culture in place of the previous command-and-control style. After each board
meeting they spent 15 minutes reviewing every decision they had made for consistency
with the new culture – and on occasions went back and changed a decision that they
realized was incompatible with it. The new culture stuck.
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64 Chapter 1: A Change Management Perspective
Hierarchical
SOURCE: Trompenaars, F and Hampden-Turner, C (1998) Riding the Waves of Culture: Understanding diversity in
global business, 2nd edn, McGraw-Hill Education, NY. Copyright © McGraw-Hill Education. (Also published by
Nicholas Brealey Publishing, London; 3rd edn in 2012.)
attitudes to authority and people, patterns of thought, change and conflict resolu-
tion. Clearly it is possible in principle to ‘plot’ a particular organization at any point
within the space identified by these axes, so that more subtle differences of culture
will be reflected here than would be seen in a pure ‘type’ approach to culture.
Many commercial models and surveys are available. They can be used to measure
aspects of culture or climate, and may help to measure changes through a change
initiative. In selecting such an approach, consider carefully whether the underlying model
focuses clearly on the particular aspects of culture that the organization wishes to modify.
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Section E: Organizational Culture and Change 65
C a s e s t u dy
One large financial services institution was bureaucratic and stable (but successful) with
mostly long-serving employees. It merged with a more entrepreneurial one that had many
highly commercial staff used to moving between organizations. Attempts at even-
handedness – creating a ‘best of both’ culture – foundered as staff from the more agile culture
of the smaller institution consistently outplayed those from the larger, more traditional one.
The IT implementation
IT implementations range from a simple upgrade of an existing system to a full-scale
re-engineering of processes. At the ‘simple’ end, little cultural effect is likely and
change effort can be focused on training and supporting people through transition
as the project progresses. As the breadth of the change increases, so does the likeli-
hood that different control mechanisms within the systems will move power around
the organization, or that different behaviours will be expected.
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66 Chapter 1: A Change Management Perspective
Summary
The effects of culture are embedded in every aspect of organizational life. Changes
large and small are likely to have cultural implications, whether or not this is
intended. It is always wise to consider the possible impacts of change on the organ
ization’s outward systems, norms values and underlying assumptions. This helps
change managers to consider how to align the culture with the change, so that it
does not create an obstacle.
Further reading
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Section F: Emergent Change 67
Introduction
The discussion of ‘change and the organization’ in Section C recognizes that not
all change initiatives can be fully planned. Morgan’s (2006) ‘machine metaphor’
provides only one way to look at change. Bernard Burnes (2004), in writing a fasci-
nating case study of organizational change, summarizes the literature about different
approaches to organizational change by saying that: ‘the two dominant ones are the
planned and emergent approaches’.
In this section I offer some comments on the roots of an emergent approach to
change, summarize the situations most likely to require such an approach, and make
some suggestions on how leadership can be effective in promoting emergent change.
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68 Chapter 1: A Change Management Perspective
C a s e s t u dy
In one large IT company in the financial sector the direction of change was set by clear
messages from the general manager. He highlighted the unacceptably low service level
that threatened the future of the business. Over 12–18 months around 60 per cent of the staff,
from board members to junior supervisors and senior technical specialists, were given training
to equip them with relevant skills in continuous improvement. They were given time and
encouragement to generate improvement ideas, alongside their normal work commitments.
Over a period of 18 months there was a very significant change in culture, and the many
small changes led to an order of magnitude improvement in service quality performance.
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Section F: Emergent Change 69
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70 Chapter 1: A Change Management Perspective
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Section F: Emergent Change 71
may be clear, the precise route is likely to be less so. Deviations and explorations are
a common feature of culture change journeys. In such circumstances a more emergent
change process should be expected. The CMI CMBoK (2013) puts it like this:
Where the core of the change is to systems, structures, processes and practices, then
planning and scheduling is possible. However, where that core change is in the
discretionary decisions people make about their patterns of values and behaviours, no
dates can be fixed in advance. People will engage with new patterns of behaviour
individually and in their own time.
These two types of change are not mutually exclusive. Elements of both approaches
may be seen in any particular phase of a change, though one or the other usually
predominates. Moreover, as different phases of change occur over time, the
‘developmental and deliberate’ may prepare the way for the ‘swift and sudden’ –
or may be used to align culture and capability with a ‘swift and sudden’ change
already made.
C a s e s t u dy
[The changes] relied on everyone in the company participating in them and becoming
committed to them. The responsibility for their success ultimately rested with those
involved rather than being managed or driven by senior managers.
(Burnes, 2004)
This ‘developmental and deliberate’ change was followed by a rapid restructuring process
(six to twelve months) using planned change. The success of the restructuring was built
upon the foundations laid during the earlier developmental period.
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Section F: Emergent Change 73
Summary
Emergent change is best seen as a journey taken in company with others in the org
anization. A direction is set, and the company of people agree to travel together.
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74 Chapter 1: A Change Management Perspective
The varied observations, skills and experience of all the fellow travellers may be es-
sential to support the company on its journey, and to identify and deal with hazards
and threats that appear along the way. The journey may have an intended – even
agreed – destination, but the route must be adapted to suit the company of travellers.
Even the destination may need to be reviewed in the light of new information gathered
along the way. Safe arrival is a signal for celebrations – and planning the next adventure!
Further reading
References
Adams, J, Hayes, J and Hopson, B (1976) Transition: Understanding and managing personal
change, Martin Robertson, London
Balogun, J and Hope Hailey, V (2008) Exploring Strategic Change, Pearson Education,
Harlow
Beer, M and Nohria, N (2000) Cracking the code of change, Harvard Business Review,
78 (3), May–June 2000, pp 133–41
Block, P (2000) Flawless Consulting: A guide to getting your expertise used, 2nd edn,
Jossey-Bass, San Francisco, CA
Bridges, W (2009) Managing Transitions: Making the most of change, 3rd edn, Nicholas
Brealey, London
Briggs Myers, I and Myers, P B (1995) Gifts Differing: Understanding personality type,
2nd edn, CPP Inc, Mountain View, CA
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References 75
Briggs Myers, I (2000) Introduction to TypeTM, 6th edn, revised by Linda K Kirby and
Katharine D Myers, Consulting Psychologists Press Inc/Oxford Psychologists Press
Limited, California
Burnes, B (1992) Managing Change: A strategic approach to organisational development
and renewal, Pitman, London
Burnes, B (2004) Emergent change and planned change – competitors or allies?: The case
of XYZ construction, International Journal of Operations & Production Management,
24 (9), pp 886–902
Cameron, E and Green, M (2009) Making Sense of Change Management: A complete guide
to the models, tools and techniques of organizational change, 2nd edn, Kogan Page,
London
Cameron, E and Green, M (2012) Making Sense of Change Management: A complete guide
to the models, tools and techniques of organizational change, 3rd edn, Kogan Page,
London
Changefirst (2010) The ROI for Change Management: How change management makes
a substantial difference to project performance, Changefirst Limited, Haywards Heath
(www.changefirst.com)
Change Management Institute (CMI) (2013) The Effective Change Manager: The change
management body of knowledge (CMBoK) Change Management Institute, Sydney
Conner, D (1993) Managing at the Speed of Change, Villard, New York
Danforth, C M (2013) [accessed 16 April 2014] Chaos in an Atmosphere Hanging on
a Wall, Mathematics of Planet Earth 2013 [Online] http://mpe2013.org/2013/03/17/
chaos-in-an-atmosphere-hanging-on-a-wall/
Ferris, K (2013) ITSM Solution Projects Need Organisational Change Management,
Macanta Consulting, Australia
Handy, C (1994) The Empty Raincoat: Making sense of the future, Hutchinson, London
Herzberg, F (2003) One more time: how do you motivate employees? Harvard Business
Review, 81 (1), January 2003, pp 87–96 (reprint of original article from 1968)
Hirsh, S K and Kummerow, J M (1994) Introduction to TypeTM in Organizations, 2nd edn,
Oxford Psychologists Press Limited, UK
Holland, J H (2006) Studying complex adaptive systems, Journal of Systems Science and
Complexity, 19, pp 1–8
Honey, P and Mumford, A (1992) The Manual of Learning Styles, Peter Honey, Maidenhead
Huczinsky, A A and Buchanan, D A (2007) Organizational Behaviour, Pearson Education
Ltd, Harlow
Hughes, M (2011) Do 70 per cent of all organizational change initiatives really fail?
Journal of Change Management, 11 (4), December 2011, pp 451–64
Hyatt, J M and Creasey, T J (2012) Change Management: The people side of change,
Prosci Inc, Loveland, CO
IBM (2008a) Global CEO Study Hungry for Change, IBM, New York
IBM (2008b) Making Change Work, IBM, New York
Johansen, B (2012) Leaders Make the Future: Ten new leadership skills for an uncertain
world, 2nd edn, Berrett-Koehler, San Francisco, CA
Kanter, R M, Stein, B A and Jick, T D (1992) The Challenge of Organizational Change,
Free Press, New York
King, S and Peterson, L (2007) How effective leaders achieve success in critical change
initiatives, part 2: why change leadership must transcend project management for
complex initiatives to be successful, Healthcare Quarterly, 10 (2), April 2007, pp 70–75
Kotter, J P (1995) Leading change: why transformation efforts fail, Harvard Business
Review, 73 (2), May/June 1995, pp 59–67
Kotter, J P (2012a) Leading Change, Harvard Business Review Press, Boston, MA
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76 Chapter 1: A Change Management Perspective
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References 77
Senge, P M (1993) The Fifth Discipline: The art & practice of the learning organization,
Century Business, London
Senge, P M et al (1999) The Dance of Change: The challenges of sustaining momentum in
learning organizations, Nicholas Brealey, London
Smith, M E (2002) Success rates for different types of organizational change, Performance
Improvement Journal, 41 (1), January 2002, pp 26–33
Stacey, R D (2001) Complex Responsive Processes in Organizations: Learning and
knowledge creation, Routledge, London
Taylor, C (2005) Walking the Talk: Building a culture for success, Random House, London
Trompenaars, F and Hampden-Turner, C (2012) Riding the Waves of Culture:
Understanding diversity in global business, 3rd edn, Nicholas Brealey, London
Wikipedia contributors [accessed 22 February 2014] Complexity Theory and Organizations,
Wikipedia, The Free Encyclopedia [Online] http://en.wikipedia.org/w/
index.php?title=Complexity_theory_and_organizations&oldid=596690665
Wikipedia contributors [accessed 15 April 2014] Chaos Theory, Wikipedia, The Free
Encyclopedia [Online] http://en.wikipedia.org/w/index.php?title=Chaos_theory&oldid=
604308207
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78
Defining change 02
R o b e r t Co l e , D av i d K i n g a n d Ro d S ow d e n
Introduction
To be successful, change in organizations must first be fully defined and understood.
This clarity supports effective engagement with all stakeholders within and outside
the organization. It gives a shared foundation on which the differing perspectives of
all stakeholders can build a consensus, and a shared commitment to the change.
Clear definition also supports a clear assessment of the organization’s change capability
and capacity: does the organization possess the skills, competences and resources for
the change to succeed?
In preparing an organization for change, there are six key questions for organizations
to consider:
1 Why is change needed?
2 What change do we need to make?
3 How will the change affect us – both positively or negatively?
4 When do we need to change?
5 Who will lead and facilitate the change?
6 How will we make change a success?
Many people from across the organization, together with expert and specialist advisers,
will play a part in answering these key questions. This will involve:
●● a diagnosis and analysis of needs, issues, the environment and priorities for
change;
●● detailed definition and design of the changes that reflects the diverse needs,
expectations and aspirations of the organization and its people;
●● creation of a viable and achievable change management plan and supporting
business case, aligned to the organization’s corporate strategic goals.
A clear and concise definition of the change is essential to ensure that the change
effort is both focused and sustained. Moreover, change must be benefit driven,
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Introduction 79
Strategic Change
Vision
Drivers Requirements
C h a p t e r co n t e n t s
Section A: Aligning change with strategy
Section B: Drivers of change
Section C: Developing vision
Section D: Change definition
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80 Chapter 2: Defining Change
Robert Cole
Introduction
Strategy defines what an organization is going to do in the future that responds to
the changing environment in which it needs to develop and prosper. The reason that
most organizations need a good strategy is because with a poor strategy, or in the
absence of one, the organization will not survive. The primary purpose of a strategy,
therefore, is to show how an organization intends to develop, given the environment
in which it operates.
The purpose of this section is to explain some of the principles of strategy devel-
opment, some thinking tools used to develop strategy in an organization, and the
implications for defining change. Nearly all the literature on strategy is based on
commercial organizations. However, third sector organizations, central and local
government can also use these tools to understand their environment and develop
appropriate policies.
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Section A: Aligning Change with Strategy 81
2.1 PESTLE
The external drivers in the ‘far’ environment of an organization are often categorized
using the acronym ‘PESTLE’ (Figure 2.2) as follows:
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82 Chapter 2: Defining Change
Tip
In practice these ‘PESTLE’ categories are closely linked and interact with
each other. The list provides a useful checklist to help ensure all external
drivers are considered. It is critical to obtain information about the drivers
seeking trends and early warning signs that might affect strategy. Organizational
strategists need to keep abreast of current thinking, events, and analysis.
2.2 Industry
A key concept in the far environment is that of an industry. This is an identifiable
group of business organizations doing very similar things in the delivery of value to
customers – the food industry, the pharmaceutical industry, the airline industry and
so on. Each of these industries has different dynamics and different levels of invest-
ment return. An organization must ask: ‘What business are we in?’ This will identify
the value that the managers perceive they are delivering to their customers.
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Section A: Aligning Change with Strategy 83
C a s e s t u dy
Kodak processed camera film into paper images that people can keep. Is Kodak in the
chemical business (their processes were all chemical and all the senior managers were
chemists)? Or were they in the ‘personal memories’ business because that was the real
value of the photographs they produced? While wrestling with these questions, Kodak
missed the revolutionary change to digital images and cameras. They nearly went out of
business, even though the digital camera was invented in Kodak and the company held
many of the early patents.
C a s e s t u dy
The airline industry is surprisingly easy to enter. Southwest Airlines started with a flight
schedule of six round trips between Dallas and San Antonio, and 12 round trips between
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84 Chapter 2: Defining Change
Dallas and Houston. They rented three 737-200s from Boeing, and rented airport gates and
other required infrastructure.
Tip
As with external drivers, it is not just the current position of an industry but
the trends that are really important. The trends help us peer into the future,
which is what a strategy is all about. It is often these trends that make
staying in an industry a key decision.
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Section A: Aligning Change with Strategy 85
4. Business modelling
A coherent business model is at the heart of an organizational strategy. An organiza-
tion’s business model shows how the strategy is to be implemented. Business activities
need to be systemically joined up so that they provide a seamless delivery of the
required business value. Typically, organizations will often undertake these activities
in different departments or ‘silos’ (and consequently have problems being joined up).
The business model needs to show how the different parts of the organization
will work together. Some of these activities just need to be as good as the industry
average so they do not become a reason for not buying from you. Others will be your
differentiators and need to be superior to the competition. These key activities will
be the focus of resources and management attention.
C a s e s t u dy
In the telecoms industry the big players often have a poor reputation for customer service,
with offshore call centres. Some smaller telecoms companies make a feature of their
customer service, using onshore call centres, more empowered staff and better response
times. They are attracting a market segment of customers who want that type of service
and have failed to get it so far.
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86 Chapter 2: Defining Change
and Decide
and Refine
Develop
Execute
Idea
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Section A: Aligning Change with Strategy 87
alternative possible futures and to capture them in a story (Figure 2.3). Usually the
stories are not that useful outside the group that created them, but participating in
the scenario development stimulates thinking in a way that widens horizons and
admits new and creative possibilities for a strategy.
This method also identifies the ‘preferred future scenario’ – where the existing
strategy will take the business. This can then be compared with other possible
futures and the strategies needed to reach them. Scenarios enable identification of
early warning signs that one or another possible future may become more likely so
that action can be taken to change or refine the strategy before it is too late.
Scenario
1
Possible future
Scenario
2
Scenario
3
Planned event
Threat (unplanned event)
Opportunity (unplanned event)
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88 Chapter 2: Defining Change
Summary
The purpose of a strategy for an organization is to look into the future to seek ways
to survive, grow and prosper. The resulting strategy then identifies the changes necessary
to the existing organization (its processes, people, assets and information) that will
ensure survival, at least, and prosperity, at best. A good strategy will identify a unique
competitive position as a value proposition to customers, and the business model
needed to sustain that position.
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Section B: Drivers of Change 89
Robert Cole
Introduction
Identifying the drivers of change, the factors driving the need to change, includes the
use of this information to maintain strategic focus and energy throughout the change
process. It provides the answers to the fundamental questions ‘Why change?’ and
‘Why now?’ Section A discussed how strategy can be developed. Following this, the
strategic objectives for the organization become the context for all change.
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90 Chapter 2: Defining Change
Strategy
Change initiatives
Implementation
Required
Outcomes and benefits
result?
The cascading decisions are strategic decisions about the choice of business model
and implementation options, identification of strategic objectives with their vision
and performance scorecard (if used).
The change cascade works as follows:
●● portfolio decisions about how to achieve the strategic objectives within the
capability and capacity of the organization result in a portfolio level plan;
●● a number of change initiatives are created;
●● implementation of the initiatives includes further cascading decisions leading
to delivery of outcomes and achievement of benefits;
●● delivered outcomes can be matched against the vision and scorecard to
measure success.
At each stage there is a feedback loop involving feasibility and design optimization
so that strategy development is informed by the ability to deliver it.
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Section B: Drivers of Change 91
Strategic
Business
Vision
Portfolio
Project 1 Project 2
P Project 3 Project 4
Transformed
Business –
Benefits
Realized
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92 Chapter 2: Defining Change
2. Change analysis
The basis of all change analysis is three questions:
1 Where are we now?
2 Where do we want to go?
3 How do we get there?
Three tools for examining the present situation are:
●● the five forces model at the industry level (Section A2.3);
●● SWOT analysis for comparison with competitors;
●● Lewin’s force-field analysis tool for analysing driving and resisting forces.
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Section B: Drivers of Change 93
Strengths Opportunities
Weaknesses Threats
SWOT is a useful tool for aligning strategic analysis with the current operational
capability and identifying required changes. It can help identify strategic objectives
and priorities and develop a vision at the competitive advantage level.
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Tip
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Section B: Drivers of Change 95
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96 Chapter 2: Defining Change
Tip
Summary
All change in an organization should be in support of the strategy either to maintain
a competitive advantage or seek a new advantage. In a government organization the
change should improve the efficiency of the organization or provide a new function.
In both cases the strategic objectives provide the change drivers.
The culture in an organization is crucial to understanding the drivers for change
and the impact of change. It will contribute to the analysis of change as it is included
in tools such as five forces, SWOT and force field analysis, together with a soft systems
approach. The analysis tools will be used and refined as the change cascades through
the organization. Emergent change must also be considered, so that the organization’s
resources remain focused on achievement of strategic objectives.
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Section C: Developing Vision 97
Introduction
A clear vision for change is essential as it enables an organization’s leaders, managers
and change sponsors to identify and communicate the desired end goal, scope and
boundaries of a change initiative. Furthermore, it enables all those engaged in or
affected by change to understand its purpose and commit to the steps needed to
make change work. A clear vision for change also helps people to focus on the wider
organizational implications and opportunities.
There is a clear distinction between an organization’s strategic mission, goals,
objectives and targets on the one hand, and the creation of a vision and narrative for
a change initiative on the other.
In this section we use soft systems methods (SSM) and related methods and tech-
niques to explore:
1 Viewpoints and perspectives of change – capturing and exploring different
stakeholder viewpoints of the desired ‘future state’.
2 Developing a vision for change – applying systems theory to scope and draft
a definition of the desired ‘future state’ and vision for change.
3 Understanding and validating the vision – using rich pictures and storytelling
to support the change narrative.
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98 Chapter 2: Defining Change
Current Future
Situation State?
Viewpoints of the desired ‘future state’ are often influenced by many different drivers.
Stakeholders may be responding to symptoms without understanding the root causes
of problems or failures. Therefore, the real reasons for change may not always be
apparent and need to be established. Soft systems methods (SSM) provide a valuable
toolset for capturing, exploring and selecting viewpoints (see box).
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Section C: Developing Vision 99
Soft systems method (SSM) is an approach for developing a ‘vision’ for the
‘future state’ of a given business situation. SSM helps you to explore the different
viewpoints of stakeholders, develop models of how things might work and
understand the gap between the ‘future state’ and the ‘current state’, to identify
‘what needs to change’. SSM is based on the work of Peter Checkland (1999) and
Brian Wilson (2001) at Lancaster University in the 1960s and 1970s and arose out of
attempts to apply systems engineering principles (that is, ‘hard’ systems theory)
to business problems. This form of ‘soft’ systems analysis recognizes that
organizations are essentially ‘human activity systems’ or ‘social systems’ and
offers a different way of dealing with situations perceived as ‘problematic’.
The old adage ‘if you know where you are going it is easier to get there’ rings par-
ticularly true for change programmes in organizations. You would not set off on a
journey without first selecting your destination and then planning your route to get
there. Business change is no different. Any other approach represents a significant
business risk in which time, money and patience will eventually run out.
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C a s e s t u dy
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Section C: Developing Vision 101
a
d ide
ry/r elate
Subject/ onda
Sec
Problem/Issue Etc,
etc
Mai
n Th
oug
ht/I
dea
M
ai
a
n
de
Th
Seco
di
n dary
ou
ate /rela
gh
ted i
dea
t/
rel
Id
ea
ry/
Te re
Te rela
da
rti lat
rti ted
ar ed
on
ar
yT i
Etc,
c
y T ide
etc
ho de
Se
ho a
ug a
ht
ug
/
ht/
Develop the primary-task viewpoints into business systems (‘future state’) defini-
tions (BSDs) first – see Section C2.
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102 Chapter 2: Defining Change
Improve health of UK
WHAT? WHY?
population
Operate Operate
specialist diagnostic
treatment centres service HOW? Get people fit Make
patients pay
Improve
awareness
Low Level =
Possible Actions Provide sport Sponsor
& recreation sporting
facilities achievement
Tip
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Section C: Developing Vision 103
V VIEWPOINT
the purpose or ‘what’ we want to do/achieve
O OWNER
who controls
C CUSTOMER
who benefits ‘HUMAN FACTORS’
A ACTORS
who does the work
T TRANSFORMATION
‘how’ it will be done, to achieve the Viewpoint (the ‘what’)
E ENVIRONMENT
the constraints acting upon the system
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104 Chapter 2: Defining Change
C a s e s t u dy
When working with a management team developing a vision for a major change, we finally
arrived at a business system definition that everyone was enthused about and committed
to. I knew we had reached the point of consensus when they started to criticize my grammar
and punctuation!
It may be necessary to develop several BSDs before selecting one that achieves the
greatest consensus and provides an agreed basis on which to explore further ideas
about the changes needed in the organization to achieve it. A good BSD lays the
foundations for a vision for change and drafting of a full ‘vision statement’.
To assist leaders in developing an appropriate vision, Nanus (1992) maintains
that the ‘right vision’ has five characteristics:
●● attracts commitment and energizes people;
●● creates meaning in workers’ lives;
●● establishes a standard of excellence;
●● bridges the present to the future;
●● transcends the status quo.
As well as providing a picture of the future, a clear vision inspires people to want to
work to achieve it. A leader’s efforts to develop a shared vision have been described
as ‘bonding’ by Sergiovanni (1990): leader and followers with a shared set of values
and commitment ‘that bond them together in a common cause’ in order to meet a
common goal.
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Section C: Developing Vision 105
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106 Chapter 2: Defining Change
Tip
Finally, a key requirement is to communicate the change vision effectively, at all levels
throughout the organization (see Chapter 5).
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Section C: Developing Vision 107
2 Put in whatever connections you see between your pictorial symbols: avoid
producing merely an unconnected set. Places where connections are lacking
may later prove significant.
3 Avoid too much writing, either as commentary or as word bubbles coming
from people’s mouths (but a brief summary can help explain the diagram to
other people).
4 Don’t include systems boundaries or specific references to systems in
any way.
Figures 2.13 shows examples of useful symbols for creating a rich picture and an
illustration of a simple rich picture (Figure 2.14), based on the BSD example in
Section C2 above.
Group Activity
Computer/System
View
Records
Office/Facility
Network Single Direction !
Idea
Organization
$€ Bi-Directional External
Input
Unit
Finance Vehicle
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108 Chapter 2: Defining Change
$€
$€
$€
Funding sources
Local
Data
Plan
$€
Policy/
Strategy/
Govt Targets
Sponsor Community
Sponsors
Monitor
New leisure facilities
Take-up and
= Health Data
Fitness ‘Network’
??
Fitter people!
Medical Learn!
Services
C a s e s t u dy
There are many examples of rich pictures, the illustration in Figure 2.15 is from a UK
government agency outlining their 15-year journey, including the challenges and
opportunities that they will face along the way. The journey describes a future where
drivers, operators, vehicles, MOT garages and maintainers are fully compliant with
regulations. Producing this sort of image using professional artists (this example was
produced by a commercial graphic designer) can be expensive, but if the final product is
iconic, as this one is, the investment may well be good value.
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109
F i g u r e 2.15 Rich picture created for a UK government agency (reproduced by kind permission of Scriberia)
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110 Chapter 2: Defining Change
3.2 Storytelling
Rich pictures are a type of storytelling. Storytelling dates back through the ages and
long predates writing. Wikipedia defines storytelling as ‘the conveying of events in
words, and images, often by improvisation or embellishment’ (Wikipedia, 2014b).
The technique of rich pictures focuses on telling the story about what the world will
be like once the change has been delivered, what it will look and feel like to be in the
changed organization. For people who have a strong audio preference, this will be a
particularly powerful medium. Chapter 5, Section B5.3 discusses the use of storytelling
when communicating change.
Summary
●● Within the context of change the focus for a change initiative is vision.
●● Meaningful and lasting change is most likely to be achieved if there is a
shared vision of what the business should be like in its ‘future state’.
●● The old adage of ‘if you know where you are going it is easier to get there’
rings particularly true for change programmes in organizations.
●● Capturing, and selecting from, a wide range of stakeholder viewpoints and
perspectives helps build consensus. Mind maps and other creative techniques
are useful.
●● Select the most relevant and interesting viewpoints as the basis for defining
vision using a ‘why–what–how’ hierarchy.
●● By applying systems theory you can define a vision statement (expressed as a
‘business system definition’) for the system you want.
●● It is wise to consider having a core vision statement, which is short and to the
point, and then create different representations of it for different audiences.
Avoid the pitfalls of creating ‘to-do’ lists or ‘mission statements’.
●● Create pictorial representations (‘rich pictures’) of a desired future state to
help validate the vision with a wide variety of stakeholders.
2 How did you use the vision statement to communicate the need
and focus for change across the organization?
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Section D: Change Definition 111
David King
Introduction
Change definition is the process of developing clear and complete definitions of how
the organization will be changed, the nature of the impact on stakeholders and business
areas, and the specific changes that will be seen across the organization in behaviour,
outputs and outcomes.
Not everyone in an organization will view change in the same way. There will be
a wide mix of positive, negative and neutral responses to change. Nor will the path
to change be smooth and problem-free. It is important to understand and communicate
the ‘big picture’ of change and help people to view change in its wider context. It will
be equally important to draw out the key issues and concerns that people have about
change. The objective is to build and share understanding about the change and how
obstacles, when discovered, can be overcome or resolved.
This section explores methods and approaches for building, sharing and validat-
ing the desired ‘future state’; how to use these models to define and analyse the
required new ‘capability’; determining how this compares to the ‘current state’
through conducting a ‘gap’ analysis; and, how to identify problems and concerns
that may arise.
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112 Chapter 2: Defining Change
BAMs comprise the minimum number of activities that would be expected to take
place for BSD to function. According to systems theory, features that are common to
all systems are:
●● purpose or objective: why the system exists and what it must achieve;
●● environmental constraints: factors that will inhibit or constrain achievement;
●● plan or programme: specific plans and targets against which achievement will
be measured;
●● resources: the specific resources (people, finance, physical, technological)
required by the system;
●● working activities: the primary tasks to be undertaken, what the system exists
to ‘do’;
●● monitoring: the measurement of achievement against plans and targets;
●● control: the actions taken in response to the results of monitoring.
These can be described as generic activities that must be present in all viable business
systems. They have logical interdependencies and can be shown as a generic activity
model (Figure 2.16).
The generic model shows that before we can ‘do the work’, we must have ‘devised
a plan’ for which ‘objectives’ and ‘constraints’ have been defined, and ‘resources
acquired and deployed’. Monitoring of ‘effectiveness’ of ‘doing the work’ is set
against the ‘defined objective(s)’ and the ‘defined plan’. ‘Control action’ can be in
corporated in any generic activity but is usually seen as a single control activity that
generates responsive actions to correct any shortfalls or deficiencies in the system
Establish
Define Constraints
Objective
Devise
a Plan
Take Control
Monitor Action
Effectiveness
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Section D: Change Definition 113
Tip
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114 Chapter 2: Defining Change
3 Using the suggested notations (Figure 2.17), place each activity in a ‘cloud’
shape (Figure 2.18) – each activity must contain a verb (eg ‘know’,
‘understand’, ‘manage’ etc). Always use plain, descriptive language.
4 Connect the cloud shapes containing activities with arrows, to show the
direction of dependencies between them (ie what needs to happen before
and what needs to happen after each activity is undertaken?). Every activity
should have at least one input and one output.
5 Show dependencies to activities or processes that are external to the business
system being modelled (called ‘external entities’).
6 Check to ensure you have included the systemic components of the generic
model (Figure 2.16).
Tip
The BAM is a model for the ‘future state’ and is therefore used to model
your ideas. Beware of ‘reality seepage’ whereby you start to model the
current situation (although the same technique can be used for different
types of models – see above).
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F i g u r e 2.18 Illustration of a business activity model for ‘improving health’ (King, 2006)
IDENTIFY NEW
RESEARCH LOCAL TAKE
A DEMOGRAPHICS &
SPONSORSHIP
APPROPRIATE
OPPORTUNITIES
POTENTIAL USAGE CONTROL
ACTION
RESEARCH
EXISTING
FACILITIES – PREPARE PRIORITIZED
LOCATION & PROGRAMME FOR
ACCESSIBILITY IDENTIFY AREAS/ FACILITY MONITOR
LOCATIONS WHERE DEVELOPMENT & DEVELOPMENT
ADDITIONAL SPONSORSHIP AGAINST PLANS
FACILITIES OR & SPEND PROFILE
SUPPORT REQUIRED
DEVELOP
PLANNING FACILITIES &
REGULATIONS PROVIDE IMPROVE
UNDERSTAND SPONSORSHIP AWARENESS
PLANNING
CONSTRAINTS
MONITOR
TAKE UP/
PROVIDE ACCESS UTILIZATION
ASSESS IMPACT ADJUST
TO MEDICAL PROGRAMME AS
SERVICES ON HEALTH
APPROPRIATE
REVIEW
A PROGRAMME
EFFECTIVENESS
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116 Chapter 2: Defining Change
C a s e s t u dy
Three government agencies involved in funding distribution merged. They used soft systems
methods to define and model the required future state business systems for both operational
management and delivery of the new organization’s services. Over several sessions, the
entire operations management team participated in a workshop to create, first, a business
system definition (BSD) and then a set of business activity models (BAMs). Together these
described how operations would work after the merger. The resulting BAMs provided the
foundation for detailed process mapping, organizational and information systems design.
They also supported a ‘gap analysis’ to determine the scope of the changes required.
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Section D: Change Definition 117
• organization structures
ACCESS TO SPORTS & SPONSORSHIP
RECREATION
FACILITIES
IDENTIFY NEW
RESEARCH LOCAL SPONSORSHIP TAKE
A
frequency
DEMOGRAPHICS & OPPORTUNITIES APPROPRIATE
POTENTIAL USEAGE CONTROL
ACTION
RESEARCH
EXISTING
FACILITIES – PREPARE PRIORITISED
LOCATION & PROGRAMME FOR
ACCESSIBILITY IDENTIFY AREAS/ FACILITY MONITOR
LOCATIONS WHERE DEVELOPMENT & DEVELOPMENT
ADDITIONAL SPONSORSHIP AGAINST PLANS
FACILITIES OR & SPEND PROFILE
SUPPORT REQUIRED
DEVELOP
PLANNING FACILITIES &
REGULATIONS PROVIDE IMPROVE
UNDERSTAND SPONSORSHIP AWARENESS
PLANNING
MONITOR
TAKE UP/
PROVIDE ACCESS UTILIZATION
ASSESS IMPACT ADJUST
TO MEDICAL PROGRAMME AS
SERVICES ON HEALTH
APPROPRIATE
This KOPE capability analysis also provides the baseline against which specified
improvements and benefits can be measured. KOPE capability analysis steps:
1 Select each activity in the BAM in turn (or closely related activities may be
grouped).
2 Analyse the required capability in terms of the four KOPE categories (see
Figure 2.19).
3 Use a capability summary table (Table 2.2) to capture the required capability
for each activity.
4 Remember: you are defining ‘future state’ capability, not what you currently
do (the process of comparison and gap analysis will come later).
5 Use the capability summary table to summarize the total ‘new capability’,
highlighting recurring requirements, themes and priorities.
Tip
When summarizing the required capability for the BAM as a whole, make any
reasonable assumptions to enable you to complete the analysis. Consider
whether any changes to the BAM are needed, to reflect the more in-depth
understanding gained. Remember to record any other emerging issues and risks.
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118 Chapter 2: Defining Change
4 Identify funding ●● Existing funding ●● Funding sector ●● Financial criteria ●● Field research
sources and sources/value knowledge and rules and sector
availability ●● Current funding ●● Creativity and ●● Funding models interaction
– results/ problem solving and procedures
projections
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Section D: Change Definition 119
Ta b l e 2.2 continued
Blueprint Model Knowledge Organization Process & Environment &
Activities & Information & People Procedures Infrastructure
11 Monitor ●● As 10 ●● As 10 ●● As 10 ●● Analytical
take-up/ – desk-based
utilization study
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120 Chapter 2: Defining Change
This initial capability analysis lays the foundations for more detailed (and frequently
specialized) requirements analysis, including process design (Chapter 13, Section C),
data and systems analysis, organizational design and infrastructure development.
Current Future
Gap?
State State
Change
Initiative?
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Section D: Change Definition 121
Consequently, you may need to spend some time at this point mapping the current
business processes, relationships and dependencies before you can commence a full
gap analysis. You can use the BAM technique described above, process mapping
(Chapter 13, Section C) or a combination of both to describe the current state.
Tip
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122 Chapter 2: Defining Change
●● ‘Poor Relations’ (eg activities 4 and 10): these are activities that are done now
and appear to be satisfactory but have dependent activities that are not
undertaken or have significant problems. By definition this must mean that these
activities, whilst giving the appearance of being okay, are in fact being seriously
undermined. The old adage of ‘rubbish in – rubbish out ’ springs to mind here!
●● ‘Blockers’ (eg activities 7 and 8): beware of activities that have dependent
activities that are done well (ie green, or at least amber) but which are
themselves either not done or done very badly. This will inevitably cause the
business system to break down at these points, seriously impacting on delivery
of the required ‘new capability’.
F i g u r e 2.21 Using the business activity model and KOPE capability analysis to
conduct a gap analysis (King, 2006)
LOCAL AREA IDENTIFY FUNDING
INFORMATION FUNDING SOURCES
SOURCES &
SET OVERALL
AVAILABILITY
OBJECTIVES FOR EXISTING
ACCESS TO SPORTS & SPONSORSHIP
RECREATION
FACILITIES
IDENTIFY NEW
RESEARCH LOCAL TAKE
A DEMOGRAPHICS &
SPONSORSHIP
APPROPRIATE
OPPORTUNITIES
POTENTIAL USAGE CONTROL
ACTION
RESEARCH
EXISTING
FACILITIES – PREPARE PRIORITIZED
LOCATION & PROGRAMME FOR
ACCESSIBILITY IDENTIFY AREAS/ FACILITY MONITOR
LOCATIONS WHERE DEVELOPMENT & DEVELOPMENT
ADDITIONAL SPONSORSHIP AGAINST PLANS
FACILITIES OR & SPEND PROFILE
Business
SUPPORT REQUIRED
DEVELOP
PLANNING FACILITIES &
Activity
REGULATIONS PROVIDE IMPROVE
UNDERSTAND SPONSORSHIP AWARENESS
PLANNING
CONSTRAINTS
REVIEW
A PROGRAMME
EFFECTIVENESS
Gap Analysis
RESEARCH
EXISTING A
FACILITIES – PREPARE PRIORITIZED
LOCATION &
IDENTIFY AREAS/
PROGRAMME FOR G
ACCESSIBILITY
LOCATIONS WHERE
FACILITY
DEVELOPMENT &
R MONITOR
DEVELOPMENT
ADDITIONAL
FACILITIES OR A SPONSORSHIP AGAINST PLANS
& SPEND PROFILE
SUPPORT REQUIRED
DEVELOP
PLANNING FACILITIES &
REGULATIONS
UNDERSTAND A PROVIDE
SPONSORSHIP
IMPROVE
PLANNING R AWARENESS
CONSTRAINTS
MONITOR
TAKE UP/
A R
PROVIDE ACCESS UTILIZATION
ASSESS IMPACT ADJUST
TO MEDICAL PROGRAMME AS
SERVICES ON HEALTH
APPROPRIATE
G
REVIEW R
A PROGRAMME
EFFECTIVENESS
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123
F i g u r e 2.22 RAG analysis illustration using the business activity model (King, 2006)
4
R LOCAL AREA IDENTIFY FUNDING
R INFORMATION FUNDING SOURCES
1
A SET OVERALL
OBJECTIVES FOR
G
SOURCES &
AVAILABILITY
EXISTING
ACCESS TO SPORTS &
G RECREATION
SPONSORSHIP
FACILITIES 5
2 A
IDENTIFY NEW 11
RESEARCH LOCAL TAKE
A DEMOGRAPHICS &
SPONSORSHIP
APPROPRIATE
OPPORTUNITIES
POTENTIAL USAGE CONTROL
G
R ACTION
RESEARCH
3 EXISTING A 7
FACILITIES – 6 PREPARE PRIORITIZED
LOCATION &
IDENTIFY AREAS/
PROGRAMME FOR 10 G
ACCESSIBILITY
LOCATIONS WHERE
FACILITY
DEVELOPMENT &
R MONITOR
DEVELOPMENT
ADDITIONAL
FACILITIES OR A SPONSORSHIP AGAINST PLANS
& SPEND PROFILE
SUPPORT REQUIRED
9
DEVELOP
PLANNING 8 FACILITIES &
REGULATIONS
UNDERSTAND A PROVIDE
SPONSORSHIP
IMPROVE
PLANNING R AWARENESS
CONSTRAINTS
12
13
MONITOR
TAKE UP/
A 15 R
PROVIDE ACCESS UTILIZATION
ASSESS IMPACT ADJUST
TO MEDICAL PROGRAMME AS
SERVICES ON HEALTH
APPROPRIATE
G 14
REVIEW R
A PROGRAMME
EFFECTIVENESS
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124 Chapter 2: Defining Change
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Section D: Change Definition 125
C a s e s t u dy
The results of the gap analysis also lay the foundations for more in-depth specifica-
tion of change requirements, an assessment of the full impact of change (Chapter 6)
and the development of the detailed delivery plan.
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126 Chapter 2: Defining Change
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127
F i g u r e 2.23 Mapping change ‘hotspots’ on the BAM
IDENTIFY NEW
RESEARCH LOCAL TAKE
A DEMOGRAPHICS &
SPONSORSHIP
APPROPRIATE
OPPORTUNITIES
POTENTIAL USAGE CONTROL
ACTION
RESEARCH
2
EXISTING
FACILITIES – PREPARE PRIORITIZED
LOCATION & PROGRAMME FOR
ACCESSIBILITY IDENTIFY AREAS/ FACILITY MONITOR
LOCATIONS WHERE
ADDITIONAL
DEVELOPMENT & 3 DEVELOPMENT
SPONSORSHIP AGAINST PLANS
FACILITIES OR & SPEND PROFILE
SUPPORT REQUIRED
DEVELOP
PLANNING FACILITIES &
REGULATIONS PROVIDE IMPROVE
UNDERSTAND SPONSORSHIP AWARENESS
PLANNING
CONSTRAINTS
4
MONITOR
TAKE UP/
PROVIDE ACCESS UTILIZATION
ASSESS IMPACT ADJUST
TO MEDICAL PROGRAMME AS
SERVICES ON HEALTH
APPROPRIATE
5
REVIEW
A PROGRAMME
EFFECTIVENESS
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128 Chapter 2: Defining Change
Problem
Secondary
cause
Primary
cause
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Section D: Change Definition 129
Summary
●● Building models helps to visualize the business in its ‘future state’.
According to systems theory, a minimum set of generic activities must
be present in all viable business systems and are represented in a generic
activity model.
●● Business activity models (BAMs) show connected activities and indicate
dependencies both internal and external to the business system. These ‘future
state’ models enable business managers and change teams to develop and
explore ideas visually, including radical alternatives.
●● For any change programme to succeed, just having a business model is not
enough. A full ‘KOPE capability analysis’ provides the basis for analysis of
all required future state activities described in the BAM – knowledge and
information, organization and people, process and procedure, and
environment and infrastructure – and provides the baseline against which
specified improvements and benefits can be measured.
●● A ‘gap analysis’ identifies what is different between the ‘current state’ and
‘future state’ and the BAM can be used to map the differences using a simple
‘RAG’ analysis approach.
●● The results of the gap analysis lay the foundations for more in-depth
specification of change requirements, an assessment of the full impact of
change and the development of the detailed change plan.
●● When evaluating the scope, requirements and priorities for change, problem-
solving techniques can be invaluable in unravelling complexity and isolating
the causes (as opposed to symptoms) of change. Useful techniques include
‘hotspot’ analysis and ‘cause and effect’ analysis.
2 What relevant knowledge and skills are needed when creating ‘future’
state business activity models and change requirements and who from the
organization should be involved?
3 What techniques did you use to evaluate the ‘gap’ between the current and
future state and how were stakeholder issues and concerns addressed?
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130 Chapter 2: Defining Change
Further reading
For more on using soft systems methods in practice, when defining vision and
change requirements: David King (2006) Think, Learn, Improve! Turn your
business vision into reality is a useful source of practitioner tools, including
some used in this chapter.
For more information on soft systems methods: Brian Wilson (2001) Soft Systems
Methodology: Conceptual model building and its contribution; and the book by
Checkland and Scholes, Soft Systems Methodology in Action, are particularly
informative.
References
Bradley, C, Bryan, L and Smit, S (2012) Managing the strategy journey, McKinsey Quarterly,
July 2012
Bradley, C, Dawson, A and Smit, S (2013) The strategic yardstick you can’t afford to ignore,
McKinsey Quarterly, October 2013
Burke, A (nd) [accessed 24 February 2014] T552 Diagramming [Online]
http://systems.open.ac.uk/materials/T552/pages/rich/richAppendix.html
Buzan, T (2003) The Mind Map Book: Radiant Thinking – Major Evolution in Human
Thought (Mind Set), BBC Active, London
Checkland, P (1999) Systems Thinking, Systems Practice: Includes a 30 year retrospective,
John Wiley & Sons, New York
Checkland, P and Scholes, P C (1999) Soft Systems Methodology in Action, John Wiley &
Sons, Chichester
Coase, R (1937) The nature of the firm, Economica, 4 (16), pp 386–405
Covey, S R (2011) The 7 Habits of Highly Effective People, Simon & Schuster, New York
Heijden, K van der (2004) Scenarios: The art of strategic conversation, 2nd edn, John Wiley
& Sons, Chichester
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References 131
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132
Managing benefits 03
Ensuring change
delivers value
Stephen Jenner
Introduction
Benefits are the reason that an organization invests its time, management attention
and resources in change initiatives. Benefits are defined as the measurable improvement
from change, which is perceived as positive by one or more stakeholders, and which
contributes to organizational (including strategic) objectives.
They typically include: increasing revenue; reducing costs; meeting a legal/regulatory
requirement or maintaining current systems; and making a measurable contribution
to achieving strategic/organizational objectives or reducing risks to their achievement.
While some benefits are automatic (such as where a new contract provides the
same service but at lower cost), benefits realization is often dependent on deliberate
management action. For example, the outcome of a change initiative might be a re-
duction in required headcount. The ultimate or end benefits then depend on what
management action is taken to redeploy the resulting spare capacity – in reduced
budgets, lower unit costs, or being able to undertake some other value-adding activity.
As well as realizing intended benefits, change initiatives can result in dis-benefits.
These are defined as the measurable result of a change, perceived as negative by one
or more stakeholders, which detracts from one or more strategic or organizational
objectives.
Note also that not all positive benefits are planned from the outset – some are
unanticipated and emerge as the initiative is developed, deployed or implemented.
These are termed emergent benefits.
Whilst benefits represent the rationale for investment in change initiatives
(whether established informally, or formally as projects or programmes), research
suggests that many change initiatives struggle to demonstrate the benefits they were
established to realize – and this applies across the globe, in both private and public
sectors, and to many types of initiative. Beer and Nohria (2000), for example, state:
‘change remains difficult to pull off, and few companies manage the process as well
as they would like. Most of their initiatives – installing new technology, downsizing,
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Section A: Benefits Management Principles and Processes 133
restructuring, or trying to change corporate culture – have had low success rates.
The brutal fact is that about 70 per cent of all change initiatives fail.’ More recently
a study by Moorhouse Consulting (2009) reported that only 20 per cent of respondents
believed their organizations succeed in consistently delivering the planned benefits of
change. More information about this and other research is in Chapter 1, Section A.
So, the fundamental driver for benefits management is the regularly reported poor
track record of change initiatives in realizing the benefits they were established to deliver.
C h a p t e r co n t e n t s
This chapter describes the principles, processes and techniques for effective
benefits management and realization in a change initiative:
Section A: Benefits management principles and processes
Section B: Benefits identification, mapping and analysis
Section C: Planning benefits realization
Section D: Supporting benefits realization
Introduction
We should start by asking: what is benefits management? It is defined as the identi
fication, quantification, analysis, planning, tracking, realization and optimization
of benefits. Note the objective is to optimize not maximize benefits realization, ie
optimization is about doing the best that can be achieved within constraints (most
usually costs) and potential other uses of the available funds. Thus, realizing 80 per
cent of the potential benefits for only 60 per cent of the cost may be preferred where
the savings can be used to fund other initiatives.
Benefits management seeks to optimize benefits realization by ensuring:
1 Forecast benefits are complete (ie all sources of potential value are identified)
and realizable – so managing benefits is built on the solid foundations of
realistic forecasts.
2 Forecast benefits are realized in practice by ensuring that the required
enabling, business and behavioural change takes place.
3 Benefits are realized as early as possible and are sustained for as long as possible.
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134 Chapter 3: Managing Benefits
4 Emergent benefits are captured and leveraged (and any dis-benefits are
minimized).
5 The above can be demonstrated – not just as part of the framework of
accountability, but also so that the organization learns what works as a basis
for continuous improvement.
The value of benefits management can be significant. A study by Ward, Daniel and
Peppard (2008) found that while the adoption of more structured approaches to
initiative delivery had not resulted in increased benefits realization, the adoption
of key benefits management-related practices was associated with greater benefits
realization from change initiatives. Recommended practices included robust benefits-
based business cases; planning of organizational change and benefits delivery; and
evaluation and review of organizational change and benefits realization.
In practice, however, the potential value of benefits management often proves elusive.
Common mistakes include:
●● an over-focus on tracking forecast benefits and ignoring emergent benefits;
●● ‘box ticking’ approaches where the emphasis is on filling out forms rather
than facilitating benefits realization;
●● placing too much emphasis on having someone to hold to account should
things not work out as intended.
The answer lies in the following key success characteristics of effective benefits
management:
●● Active: rather than passive tracking against forecast, the focus is on an active
search for benefits, with ongoing participative stakeholder engagement.
As Thorp (2003) says: ‘Benefits realization is a continuous process of
envisioning results, implementing, checking intermediate results and
dynamically adjusting the path leading from investments to business results.’
●● Evidence-based: forecasts and processes are driven by evidence about what
works rather than assumptions and advocacy.
●● Transparent: based on open and honest forecasting and reporting, and a
‘clear line of sight’ from strategic objectives to benefits forecast and realized.
●● Benefits-led: focusing less on the activities undertaken to realize benefits and
more on the actual realization of those benefits, ie just as we expect change
initiatives to be benefits-led, so too should benefits management be focused
on what difference it is making.
●● Forward-looking: with an emphasis on learning and continuous
improvement, rather than backward-looking attribution of blame.
●● Managed across the full business change life cycle: extending from benefits
identification and quantification, through planning, to realization and
capturing and applying lessons learned.
Change managers have a key role to play in achieving this, helping to identify and
quantify the benefits from a change initiative. It is important to ensure that benefits
are aligned with the strategic aims of the organization, and to help business managers
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Section A: Benefits Management Principles and Processes 135
and staff to identify any possible negative effects of change. Change managers, especially,
act as a bridge between the change initiative and the business areas impacted by
change, and liaise with business and operational areas throughout the change process
to ensure a continued focus on benefits. This includes ensuring that benefits are
‘owned’ by the appropriate business managers, who also accept their accountability
for benefits realization. They provide input to the development of benefits realization
plans and support the business in capturing relevant measurement data for tracking
benefit achievement. Chapter 8 says more about the role of the change manager.
Identify and
quantify
Value and
Review appraise
Realize Plan
performance management
portfolio perspective
Align benefits with
delivery methods
Utilize successful
Apply effective
governance
strategy
in mind
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Section A: Benefits Management Principles and Processes 137
Employee Revenue
Retention
Investment
Internal
Employee Customer Customer Customer
Services
Satisfaction Value Satisfaction Loyalty
Quality
Employee Profitability
Productivity
Tip
When completing a benefits map (see Section B.1) start with the problem
you are trying to solve or the opportunity to be exploited. Then ask what
benefits would be realized if the problem was solved. Only then consider
what the scope of the initiative should be.
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138 Chapter 3: Managing Benefits
4 Staff experts and consultants drive 4 Business managers take the lead with
the initiative. staff experts and consultants helping
them to realize benefits.
Further information about developing vision and requirements for the desired future
state is in Chapter 2, Sections C and D.
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140 Chapter 3: Managing Benefits
●● HR performance management
–– Aligning responsibilities for benefits management with individuals’
performance objectives – so there is clarity about what people are
responsible and accountable for, including implementing the changes
upon which benefits realization depends.
–– Aligning responsibilities for benefits management with the reward and
recognition processes. Financial rewards are not always the best way to
motivate people, but inconsistencies between desired behaviours and the
organization’s reward and recognition systems can be a real obstacle to
progress because they send mixed messages about what is regarded as
important. So, wherever possible, link incentives (both financial and
non-financial) to realization of benefits.
It should be noted that integration of benefits with the performance management
systems does not represent a complete solution to the issue of managing benefits
realization. Benefits tracking and reporting is still required as a basis for: confirming
that the desired improvements actually materialize (rather than, for example, cutting
budgets but only creating an unfunded pressure as planned efficiencies are not realized);
understanding what actually causes changes in performance; and for identifying
emergent benefits and mitigating dis-benefits. But the cost of such activity and its
effectiveness is aided where benefits are integrated, as far as possible, with the per-
formance management systems.
Further information about performance management is in Chapter 13, Section A.
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Section A: Benefits Management Principles and Processes 141
eligibility rules serve several purposes. They enable consistent appraisal of change
and the contribution made to achievement of strategy, they prevent double-counting
of benefits and they facilitate benefits realization tracking and reporting.
A consistent approach to benefits categorization is central to the benefits eligibility
rules. Common approaches to categorization include splitting benefits into: financial
and non-financial categories; by strategic objective; and analysing them into economy
(doing things more cheaply), efficiency (doing things right) and effectiveness (doing
the right things) groupings.
Tip
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142 Chapter 3: Managing Benefits
Clear governance
There should be clarity/transparency about who is responsible for what and to
whom. This establishes clear business accountability for the change initiative and
for the business changes on which benefits realization depends. It also establishes
decision making and lines of authority, including regular review, and how benefits
are categorized and managed.
This is aided by documenting the governance structures, including key roles and
decision rules, and benefits management processes in a portfolio benefits management
framework.
Aligned governance
Responsibilities and accountabilities for benefits management should be aligned top-
down and bottom-up (from portfolio level to individual change initiative), as well as
with the organization’s wider governance framework. This provides for eventual
realization of individual benefits by clearly identified benefit owners.
Consistent governance
This does not mean that benefits management practices should be applied inflexibly,
rather that variations from agreed processes should be subject to approval by the
appropriate authority, and the rationale for such decisions should be recorded and
communicated to all those involved.
Consistent governance is aided by the agreement of an escalations process and
application of the technique of ‘management by exception’, whereby variances from
plan that exceed a preset control limit (eg where the benefits forecast or benefits
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Section A: Benefits Management Principles and Processes 143
realization varies from approved plan by +/−10 per cent) are escalated to the next
governance level for consideration as to what action is appropriate.
Active governance
Effective governance depends upon an active approach based on planning for success
and an emphasis on a searching for emergent benefits. It creates value by leveraging
existing capability, rather than passive tracking to check that planned benefits have
been realized. The business takes real ownership of change initiatives and realization
of the anticipated benefits.
John Thorp (2003) calls this ‘activist accountability’, ‘which goes beyond traditional
notions of passive accountability. It includes the concept of “ownership” – meaning
active, continuous involvement in managing a program and, most importantly, clear
ownership of each measurable outcome and the associated benefits’.
Chapter 8 has more information on change governance.
Tip
Summary
The benefits management processes run across the business change life cycle and are
discussed in detail in the sections that follow. They are: identify and quantify; value
and appraise; plan; realize; and review.
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144 Chapter 3: Managing Benefits
1 In your present change role you may not have direct control over
portfolio-level benefits management – but consider, how can you
extend your influence beyond your initiative to add value to other
change initiatives? How can you be an ‘apostle’ for benefits
management?
3 Assess your change initiative against Table 3.1 – is it more benefits-led than
activity-centred?
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Section B: Benefits Identification, Mapping and Analysis 145
Introduction
This section encompasses:
●● Identification of benefits: focusing primarily on benefits discovery workshops
and benefits mapping.
●● Quantification of benefits: answering the ‘how much?’ question by accurately
forecasting the scale of benefits anticipated.
●● Documenting benefits in the form of a benefit profile.
●● The role of benefits in relation to the business case.
The importance of the above cannot be overstated, because the work undertaken
here provides the basis for all that follows. If we start off with unreliable benefits
forecasts, then subsequent management of these benefits is severely compromised.
Ideally, the focus should be less on identifying the benefits from an established
initiative than, as was highlighted in our consideration of Principle 2, (see Section A),
on identifying the benefits required and then ensuring the solution is designed to
realize these benefits, ie ‘starting with the end in mind’ with benefits-led change. That
said, in many cases the initiative will have been established before detailed work on
benefits commences – but this only emphasizes the importance of starting work on
benefits identification and quantification as early as possible in the business change
life cycle.
1. Benefits identification
Approaches to benefits identification include techniques such as process mapping
and value-stream analysis that identify areas that offer potential benefits to stake-
holders from process redesign. Process optimization is covered in more detail in
Chapter 13, Section C.
The most commonly used approach to benefits identification is the benefits dis-
covery workshop, the output of which will typically be an agreed benefits map.
Change managers have a key role to play here in facilitating the workshop (Chapter 10)
and in preparing the benefits map.
Various approaches to benefits mapping are in use, but one of the most common
is the Benefits Dependency Network (Ward and Daniel, 2006), shown in Figure 3.3
– here the workshop focuses on:
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146 Chapter 3: Managing Benefits
D
R
I
IS/IT Enabling Business Business Investment
Enablers changes changes benefits objectives V
E
R
S
C a s e s t u dy
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F i g u r e 3.4 Benefits logic map (by kind agreement of Matthew Briggs, Programme Manager, Tell Us Once)
Tell Us Once Birth Service Benefits Logic Map – Benefits to Citizens and LA’s
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148 Chapter 3: Managing Benefits
●● Distinguishes between intermediate and end benefits – this can be achieved by asking
a series of ‘so what?’ questions, such as: staff time will be saved – so what?; the time
saved can be used to reduce caseload backlogs – so what? This results in the
organization meeting its targets for case processing and enhancing customer
satisfaction (the end benefits).
●● Also identifies dis-benefits.
Tip
When the benefits map is complete, undertake a check that all enabling and
business changes under the ‘solution’ heading are both necessary and
collectively sufficient to deliver the benefits identified. This should be
confirmed by the senior responsible owner (SRO)/sponsor as they are
accountable for benefits realization.
2. Quantifying benefits
Research indicates that in many cases the cause of the failure to realize benefits can
be traced back to their overstatement in the business case – for example, a research
study in Australia by Capability Management (2006) found that: ‘Of the business
cases reviewed, over 65 per cent misrepresented the benefits.’ This is due to two main
factors – first, cognitive bias on the part of those involved in forecasting benefits;
second, organizational factors that adversely impact the production of accurate and
reliable benefits forecasts.
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Section B: Benefits Identification, Mapping and Analysis 149
The planning fallacy The belief that, whilst being aware that many similar initiatives
have failed to realize the forecast benefits in the past, this
won’t affect the current initiative.
The framing effect The tendency to value losses avoided more than equivalent
and loss aversion gains. Hastie and Dawes (2001) note that, ‘most empirical
estimates conclude that losses are about twice as painful as
gains are pleasurable’. Thus, business cases that are framed in
terms of what might go wrong if the initiative were not to
proceed (lives lost, for example), appear more compelling than
if the same initiative’s business case is prepared on the basis
of the positive outcomes obtained (such as lives saved).
and reinforcing; and third, they affect experts as well as the general population.
For more information on cognitive bias see also Chapter 5, Section A2 (exploring
how we process information) and Chapter 10, Section C2.1 (for consideration of
another cognitive bias, groupthink).
But there is another explanation for forecasts differing so widely from the benefits
actually realized – and it is one where the cause lies less in the cognitive biases that
affect us as individuals, and more in organizational factors that mitigate against
accurate and reliable forecasting.
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Section B: Benefits Identification, Mapping and Analysis 151
Tip
Always seek out a fresh pair of eyes to review and challenge the benefits
forecast – identify assumptions masquerading as facts.
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152 Chapter 3: Managing Benefits
Benefit category/type
Benefit Description:
Threats to Realization Identify any specific threats to benefits realization and include
of the Benefit x-ref to relevant risk-register entry
Benefits History Record any revision to the benefit forecast with dates and
body authorizing the change
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Section B: Benefits Identification, Mapping and Analysis 153
Tip
Design and use a benefit profile – it helps to ensure that a consistent set of
data is collected on all benefits. This also facilitates the preparation of the
benefits realization plan (addressed in the next section).
Rather than completing a single form for each benefit, an alternative is to use a
spreadsheet with columns for the key information and rows for each benefit. In this
way, a single summary overview of the benefits from a change initiative can be pre-
pared. This can then form the basis for the benefits realization plan discussed in the
next section (see Figure 3.6 in the next section).
Summary
Benefits identification is aided by completion of a benefits map that shows how enabling
and business changes combine to realize benefits that address the investment objectives/
problem to be solved.
Producing reliable benefits forecasts can be compromised by a series of cognitive
biases and organizational factors. Overcoming this issue is helped by strategies and
techniques such as reference-class forecasting, ‘booking the benefits’ and the Delphi
technique.
Information on a benefit is recorded on the benefit profile – which should be
agreed with the benefit owner.
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154 Chapter 3: Managing Benefits
2 Economic case – ●● Do the identified benefits exceed the costs and dis-
does the preferred benefits of the initiative and the results of not investing?
way forward optimize ●● Does the preferred option optimize value for money
value for money? (demonstrated via an options analysis)?
3 Financial case – is the ●● Are there any cashable benefits that can be recycled to
initiative affordable? help fund the initiative?
Introduction
This section encompasses:
●● Awareness of approaches, techniques and mechanisms for:
–– financial analysis and appraisal of benefits;
–– validation of benefits;
–– prioritization of benefits;
–– baselining benefits.
●● Assessing change readiness.
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Section C: Planning Benefits Realization 155
1. Financial analysis
Benefits are often expressed in monetary terms as this provides a ‘level playing field’ for:
●● Options analysis: to compare the various options for achieving the desired
outcomes and benefits.
●● Investment appraisal: to assess whether the benefits justify the costs required
on an initiative.
●● Portfolio prioritization: to rank initiatives in priority order where resources
are limited.
Assigning monetary values to non-financial benefits is not without issue, although
economists have developed techniques to determine end users’ or customers’
‘willingness to pay’ or ‘willingness to accept’ the outcomes of an initiative. Such
techniques include:
●● Revealed preferences: where values are inferred from observed behaviour in a
similar or related situation – for example, by comparing house prices close to
an airport with those in similar areas not on the flight path.
●● Stated preferences: here questionnaires are used to elicit estimates of people’s
willingness to pay or accept something.
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156 Chapter 3: Managing Benefits
There are various approaches to options analysis, investment appraisal and portfolio
prioritization, each with its own advantages and disadvantages. The three main
approaches are outlined below.
2. Benefits validation
Validation is a crucial stage in ensuring that forecast benefits are both realistic and
realizable. Validation encompasses the following aspects:
●● Checks to ensure that benefits claimed are consistent with the organization’s
benefits eligibility rules – including whether forecasts have been adjusted for
optimism bias, or to reflect the organization’s track record in benefits
realization. This is more than a test for technical compliance – test the
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Section C: Planning Benefits Realization 157
Attractiveness 1 2 3 4 5
Financial
Return
Strategic Fit
Exploits Capacity
& Capability
Flexibility
Meets Specified
User Needs
Attractiveness
Score
Achievability 1 2 3 4 5
Simplicity
Planning
Quality
Capacity to
Drive Progress
Achievability
Score
Tip
Undertake a ‘dog that didn’t bark’ test to avoid what Kahneman (2011) calls
the WYSIATI effect (‘What You See Is All There Is’) by asking are there any
additional benefits that have not been included. The use of standard benefits
categories can assist in this regard by prompting questions about whether
benefits in all the categories have been identified.
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158 Chapter 3: Managing Benefits
Tip
3. Benefits prioritization
Ultimately, resources are constrained and benefits realization activity therefore needs
to focus on those benefits that are judged to be most significant. A relatively simple
approach to identifying the relative importance of each benefit is to allocate percentage
ratings to each investment objective (so they total to 100 per cent) on the benefits
map. The contribution of each benefit to each investment objective is then assessed
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Section C: Planning Benefits Realization 159
again by allocating percentages out of 100. In this way, the relative importance of
each benefit can be determined.
4. Baselining
A key challenge in planning benefits realization is to understand the ‘as is’ (or ‘current
state’) performance so that we have a baseline against which to measure the im-
provement achieved. Factors to consider in baselining current performance include:
●● Wherever possible relate baseline measures to existing data from the
organization’s management information system – this minimizes the cost
associated with benefits measurement and helps to demonstrate strategic
contribution.
●● Start benefits tracking as early as possible during development and delivery,
so that data against which to measure benefits realization is available.
Provision for the costs of this activity should be included in the initiative’s
budget (and the ‘management case’ in the business case).
●● Watch out for seasonal trends and normal variation in data – trend analysis
should be used to help ensure that reliable baseline measurements are taken.
●● Also take into account the impact on operational performance of change
initiatives delivered or due to be delivered, ie use forecast baselines where
relevant rather than historical ones. This can be achieved by reviewing the
organization’s business plan, forecast performance targets and future year
budgets.
Baseline performance should be recorded as part of the ‘as is’ information in the
business case, along with the ‘to be’ (or ‘future’) state, which should include the
planned improvement and the performance measures that will be used to determine
whether the benefits have been achieved.
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160 Chapter 3: Managing Benefits
Forecasting failure Benefits are not identified (and therefore are not
monitored) or are overestimated.
Business and behavioural The business and behavioural changes on which benefits
change failure realization is dependent don’t occur, or are poorly
scheduled, so causing delay to benefits realization.
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161
Benefit Benefit Key Benefit Quantification Benefit owner Is the benefit Benefit to be realized this year
category Description Assumptions & (shade box if ‘booked’ in any
and Rationale Dependencies benefit not performance
Scale of impact Period over Measures & Frequency of Quarter 1 Quarter 2 Quarter 3 Quarter 4
(cross ref to agreed with targets/budgets
anticipated over which realization Indicators to be used measurement
Benefits Map) owner or owner etc? State where.
baseline – if will last inc ramp – one row for each
not identified)
unknown state up and tail off metric – and specify type
‘unknown’ ie measures, indicators,
evidence events, case
studies & surveys
Intermediate
benefits
Dis-benefits
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162 Chapter 3: Managing Benefits
It can be seen that much of the detailed work undertaken as part of benefits man-
agement will fall to the change manager. But they do not work alone. First, there
may well be more than one change manager (for example, one for each part of the
business affected). Second, they will also be assisted by the Programme/Project
Office in:
Third, many organizations have a portfolio benefits manager (reporting to the head
of the Portfolio Office) who ensures that a consistent and effective approach to benefits
management is applied across the portfolio and that benefits realization is optimized
from the organization’s investment in change. The portfolio benefits manager’s
activities include: contributing to benefits identification/mapping and working with
change managers to identify additional opportunities for benefits realization, and to
minimize dis-benefits.
Further information about change roles and the role of the change manager is in
Chapter 1, Section D.
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Section D: Supporting Benefits Realization 163
Summary
Planning for benefits realization includes: baselining performance; validating benefits
with the recipients/owners; prioritizing benefits, for example on the basis of contri-
bution to the investment objectives; identifying threats to benefits realization; and
completing a benefits realization plan, which acts as the baseline against which
progress can be tracked. But note – the emphasis is on planning as an activity rather
than on producing documents. As such, the objective is to ensure:
●● Transparency: it should be clear what benefits are planned, when they will be
realized, how they will be measured/evidenced, and who is responsible for
their realization.
●● Accountability: for the business and enabling changes (as identified on the
benefits map) on which the realization of benefits depends, and for benefits
realization (both intermediate and end benefits).
2 Think about the top five benefits of your current change initiative
– what are the main threats to their realization and are there adequate
mitigating actions in place?
3 On your current change initiative(s), has accountability for all required enabling
and business changes been agreed with named individuals and do they have the
necessary authority and information?
Introduction
This section encompasses:
1 Transition management: ensuring that initiative outputs are fit for purpose
and can be integrated into business operations.
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164 Chapter 3: Managing Benefits
The objective here is to optimize benefits realization (Figure 3.7) by: actively manag-
ing planned benefits through to their realization; capturing and leveraging emergent
benefits; and minimizing and mitigating any dis-benefits.
While the focus in investment decision making should be on realism (to overcome
the twin risks of strategic misrepresentation and optimism bias) the approach to
benefits realization should be based on enthusiasm. As Lovallo and Kahneman
(2003) argue:
Draw a clear distinction between those functions and positions that involve or support
decision making and those that promote or guide action. The former should be imbued
with a realistic outlook, while the latter will often benefit from a sense of optimism.
We also need to distinguish between forecasts and targets. The former – as part of
the options analysis, investment appraisal and portfolio prioritization processes –
should be realistic; the latter should be motivational and aspirational – and that
requires that they be used less as a means of backward-looking accountability, and
more as a basis of forward-looking insight and learning. What happens too often is
that benefits management focuses on holding people to account for targets as originally
forecast, but which are now out of date. A ‘blame culture’ emerges in which people’s
attention shifts to appearance-manipulation to make it seem that the initiative is suc-
ceeding even if the opposite is the case – and if people’s attention is on appearance-
manipulation, there is less focus on optimizing benefits realization.
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Section D: Supporting Benefits Realization 165
1. Transition management
Here we are concerned with managing the transition from the old to new ways of
working and embedding change in the operational business. The responsibilities
of change managers include:
●● Preparing business units to implement the relevant outputs delivered by the
change initiative, while minimizing any disruption to ‘business as usual’
performance – the project/programme plan should address coordination of
the delivery of outputs and business changes.
●● Ensuring that responsibility for realization of each benefit/dis-benefit is clearly
assigned to named benefit owners.
●● Establishing appropriate support arrangements, eg a help desk and FAQs.
●● Confirming that outputs are ready for operational use and that staff have
been trained – and advising the initiative sponsor on readiness for transition.
●● Removing access to legacy working practices and systems – so there is no
going back to the old ways of working.
●● Managing implementation and ensuring all enabling and business changes
occur, but beware declaring victory too early – ensure that the change is fully
embedded.
●● Working closely with the individual benefit owners in assessing benefits
realization (more on this below).
As part of initiative closure, the relevant benefits documentation (profiles and real
ization plan) should be updated and the ‘reference point’ for future benefits activity
should be agreed – this will often be the change manager. Benefits realization will
also continue to be monitored at the portfolio level. Further information on sustaining
change is in Chapter 11.
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166 Chapter 3: Managing Benefits
●● Evidence events: ie events that can be observed and which provide evidence
that the benefit has been realized. These can be stated in the form of a ‘date
with destiny’, for example, ‘Three months from today, the sponsor will visit a
front-line office and discuss the improvements seen with staff and customers.’
●● Case studies and stories: capturing both good and bad news, as well as
lessons learned and illustrating the potential benefits from the change.
●● Surveys: of users, staff and management.
Tip
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Section D: Supporting Benefits Realization 167
Tip
As the saying goes – you get what you measure. So measure and report on
the scale of emergent benefits.
Dashboard reporting
Following the format and KPIs used at the portfolio level. This aids consolidation of
the portfolio-level picture and ‘drill down’ from the portfolio benefits realization
dashboard report to initiative/function/divisional level.
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168 Chapter 3: Managing Benefits
James Jordan Kate Tennant August 2012 13/09/2012 Programme Board, Investment
Committee, Board of Directors
Realization Levels
140%
92%
Overall*
120% 129%
programme
performance
100% 106%
90%
80%
74%
60%
40% Commentary
Drug errors: delayed rollout
20% in A&E → system had
smaller impact on errors
0%
Benefit Patient food Patient library Drug errors MRSA MRSA: outbreak in Ward 5,
Priority Med Low High High deep clean initiated, all
staff repeated IC training
* Average of scores when weighting applied according to priority
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Section D: Supporting Benefits Realization 169
Tip
Summary
Benefits represent the rationale for investment in change initiatives. It is therefore
crucial that benefits are managed efficiently and effectively. Achieving this requires
repeatable processes operating in an environment in which the principles outlined in
Section A are fully evident. The change manager has a crucial role in all of this –
from identifying, quantifying and agreeing benefits, through effective planning, to
their realization, reporting, capturing and disseminating lessons learned.
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170 Chapter 3: Managing Benefits
Further reading
The contents of this chapter are heavily based on material in Steve Jenner
(2012) Managing Benefits: Optimizing the return from investments
References
Andrew, J P and Sirkin, H L (2006) Payback, Harvard Business School Press, Boston, MA
Beer, M, Eisenstat, R A and Spector, B (1990) Why change programs don’t produce change,
Harvard Business Review, 68 (6), pp 158–66
Beer, M and Nohria, N (2000) [accessed 8 May 2014] Cracking the code of change, Harvard
Business Review, Abstract [Online] http://hbr.org/2000/05/cracking-the-code-of-change/ar/1
Bradley, G (2010) Fundamentals of Benefits Realization, The Stationery Office, London
Capability Management (2006) Research into the Management of Project Benefits,
Findings Report 2004–06, Capability Management
Cross, M (2002) Why government IT projects go wrong, Computing, 11 September,
pp 37–40
Flyvbjerg, B (2006) From Nobel prize to project management: getting risks right, Project
Management Journal, August 2006, pp 5–15
Flyvbjerg, B et al (2005) How (in)accurate are demand forecasts in public works projects?,
Journal of the American Planning Association, 71 (2), Spring, pp 131–46
Hastie, R and Dawes, R M (2001) Rational Choice in an Uncertain World, Sage, California
Heskett, J L, Sasser, E W Jr and Schlesinger, L A (1997) The Service Profit Chain: How
leading companies link profit and growth to loyalty, satisfaction, and value, Free Press,
New York
Jenner, S (2013) Managing Benefits, APMG International, The Stationery Office, London
Kahneman, D (2011) Thinking, Fast and Slow, Allen Lane, London
Lovallo, D and Kahneman, D (2003) Delusions of success: how optimism undermines
executives’ decisions, Harvard Business Review, 81 (7), July 2003
Moorhouse (2009) The Benefits of Organisational Change, Moorhouse Consulting,
London
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Moorhouse (2011) [accessed 8 May 2014] Benchmarking SROs Attitudes: The Quandary of
the SRO [Online] http://www.moorhouseconsulting.com/news-and-views/publications-
and-articles/benchmarking-sros-attitudes-the-quandary-of-the-sro
National Audit Office (NAO) (2011) [accessed 2 September 2014] Initiating Successful
Projects [Online] http://www.nao.org.uk/wp-content/uploads/2011/12/NAO_Guide_
Initiating_successful_projects.pdf
Simms, J (2012) The ‘Capital Crime’, Kindle, Amazon
Schaffer, R H and Thomson, H A (1992) Successful change programs begin with results,
Harvard Business Review, January–February, pp 80–9
Surowiecki, J (2004) The Wisdom of Crowds, Abacus, London
Thorp, J and Fujitsu Consulting Center for Strategic Leadership (2003) The Information
Paradox: Realizing the business benefits of information technology, McGraw-Hill,
New York
UK Cabinet Office (2011) Managing Successful Programmes, The Stationery Office, London
Ward, J (2006) Delivering Value from Information Systems and Technology Investments:
Learning from success, A report of the results of an international survey of Benefits
Management Practices in 2006
Ward, J and Daniel, E (2006) Benefits Management: Delivering value from IS & IT
investments, Wiley, Chichester
Ward, J and Daniel, E (2012) Benefits Management: How to increase the business value of
your IT projects, 2nd edn, Wiley, Chichester
Ward, J, Daniel, E and Peppard, J (2008) Building better business cases for IT investments,
MIS Quarterly Executive, 7 (1), pp 1–15
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172
Stakeholder 04
strategy
Pat r i c k M ay f i e l d
Introduction
Stakeholder engagement is pivotal to the whole process of effective change. It is the
essence of leading through influence. Through understanding stakeholders, prioritizing
and mobilizing them, change managers begin to gain and sustain the momentum for
change.
Given the emphasis of management literature on ‘things’ – tasks, documents and
processes – it is easy to underestimate the importance of engaging people as people.
Humans are relational creatures. We make sense of the world through tribes and
social units. We find meaning and purpose through those around us.
So it is not surprising that research indicates that an ability to engage with
people, and to engage with them often, is correlated with more effective change
leadership. It seems that time spent in leading change through relationships with
and among stakeholders begins to discriminate the performance of practitioners.
Change managers are more focused on their stakeholders and measured in the
time they spend in leaning towards people. They achieve better results in the end
than those who focus rather more on the technical and process aspects of change.
We could conclude from this that people engagement is the ‘pull’ competence
through which much else is contextualized and framed in change management.
Conversely, take away engagement in relationships and there is nothing left in change
management that really gains any true traction, other than just the mechanical
process of change.
If we make an analogy to the brain, relationships are like the synapses in the
brain’s architecture, and individuals or groups are like brain cells. Neurologists now
maintain that functions of memory and understanding are located in traces through
the synapses rather than within the cells themselves, as originally supposed. In the
same way, we can overemphasize the importance of an individual change agent, instead
of valuing the true momentum that happens through the network of relationships
within a change.
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Introduction 173
people
collaboration
relationships
resource power
allocation
motives logic
requirements
trust
reason
Leadership behaviours
Compare this to the atomized, reductionist worldview of management as a purely
technical, task-focused exercise. The inner circle of the diagram in Figure 4.1 shows
some of the elements that have been traditionally important to managers. The outer
circle adds essential elements within a more progressive view of engagement.
As the change manager enlarges their focus to include the outer circle, they treat
people not as fungible resources – things that can be replaced with like for like – nor
as objects to be processed, to broadcast at, but rather as unique human beings,
irrational at times, emotional, forgetful, with their own agendas, power and fears.
These are people with whom change managers can, and sometimes should, have
conversations – and may be pleasantly surprised by their responses and ideas.
This aligns more with perspectives generally associated with leadership – change
managers need to enlarge their perspective to think and observe as a leader.
Some of the terms included in the outer circle might make traditional managers
uneasy. It might seem rather unfamiliar territory. However, the pay-off in performance
is considerable. With this larger view, change managers become aware of some critically
important aspects of change in which people are involved. They will notice more.
Again and again leaders with this larger view of things get better results. Consider
the value ladder, as shown in Figure 4.2.
Common to any change are various stages:
●● The ‘new’ that is delivered.
●● Using the ‘new’ whilst going through conscious incompetence to conscious
competence.
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174 Chapter 4: Stakeholder Strategy
●● Embedding the change so that living with it and using it becomes unconscious
competence, the ‘new normal’.
The ladder is supported by two vital leadership behaviours:
●● A leaning to people, as evidenced by the effort a leader makes in reaching out
to stakeholders, as measured by the amount of their discretionary time spent
in engaging people as opposed to task-oriented work.
●● A leaning to action, where the change manager ‘pokes the system’ in a
considered risk-taking manner, observes the response, and adapts.
This illustrates the continuous nature of a ‘leaning to people’ and ‘leaning to action’
throughout key events in the journey to realizing value from change.
embed
e
pl
o
n
Pe
tio
to
Ac
use
g
to
in
an
g
in
Le
an
Le
deliver
Tip
Set yourself a target to visit or call at least one person a day seeking out their
views and opinions. Consciously seek to shift the balance of your discretionary
time to be more purposefully people-oriented, rather than task-focused.
Note: sorry, e-mailing doesn’t count: it is a transactional task-oriented medium.
Principles
In this chapter you will find seven principles of stakeholder engagement. A principle,
in our terms, follows Stephen Covey’s (1999) criteria. It is:
●● universal: it will work anywhere;
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Section A: Identifying and Segmenting Stakeholders 175
C h a p t e r co n t e n t s
Section A: Identifying and segmenting stakeholders
Section B: Stakeholder mapping and strategy
Section C: Managing relationships and mobilizing stakeholders
Introduction
For change to be successful, change managers need to know who is involved. Further,
being able to categorize a frequently large population of stakeholders is crucial for
prioritizing and identifying appropriately different influencing strategies.
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176 Chapter 4: Stakeholder Strategy
PRINCIPLE 1: You can forget important stakeholders, but they won’t forget you.
Definition of stakeholder
We should first agree what we mean by the term ‘stakeholder’: any individual or
group with an interest in the change or its outcomes.
Using this definition, change managers begin to identify, analyse and strategize
the engagement of their stakeholders. This broad, inclusive definition immediately
presents the change manager with a risk: that of missing, ignoring or forgetting
important stakeholders. At worst, this can cause irreparable damage. However, by
approaching individuals and groups proactively this can, on the contrary, have a
persuasive and motivating effect on those parties.
1. Identifying stakeholders
The first step is to recognize and include all stakeholders.
There are a number of methods to identify stakeholders, from rapid listing, group
brainstorming to mind mapping. Usually, deciding the categories or segments of
stakeholders goes hand-in-glove with identification.
C a s e s t u dy
When advising a new team that had a particular innovation it wanted to market, each
member of the team generated a short list of individuals and groups they felt they needed
to engage. The team were led through a process of segmenting and identifying further
stakeholders, with the result that they had identified a list more than five times their
combined list at the start.
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Section A: Identifying and Segmenting Stakeholders 177
One of the reasons that group workshops generate this kind of outcome is because
who is or is not a ‘stakeholder’ is very much a matter of perception. A well-run work-
shop begins to open up discussions around whether a particular individual or group
qualifies as a stakeholder for this change. These discussions sow the seeds of better
stakeholder analysis later on.
The process of identifying stakeholders can be inhibited by a fear that the enormity
of communicating with all these people would swamp the team. Engaging with all
these people implies exhausting vast amounts of time. This fear is best brought out
into the open and compared with the risk of forgetting an important stakeholder.
Also, identifying stakeholders is not the same as agreeing to engage them in a certain
way at a certain time, or through the same individual. This is the real business of the
stakeholder strategy, as we will see below. Further information about facilitation and
workshops is given in Chapter 10.
4 Would the workshop actually serve to engage them better in the process?
As a change progresses, as its scope alters some stakeholders become less relevant,
they lose interest or involvement. The inclusion of stakeholders is therefore dynamic.
Tip
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178 Chapter 4: Stakeholder Strategy
Conversations
Engagement is not linear. Once we begin purposeful conversations with stakeholders,
these yield further insights into other stakeholders. So further stakeholders can be
discovered or disqualified as we engage. (See Chapter 5 on communication and
engagement.)
Tip
2. Segmenting stakeholders
Segmenting is common practice in marketing. Segments represent a broad group of
a type of stakeholder. So by using segments marketers gain a better understanding of
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Section A: Identifying and Segmenting Stakeholders 179
their different customers and what propositions are more likely to appeal to each
customer segment.
Segmenting helps:
●● To prioritize stakeholders. As the change continues, these priorities will
change. Some stakeholders will increase in importance to the change, while
others may disappear altogether. For example, in an urban development, the
mayor begins as a key stakeholder, but during the change, independently, city
boundaries are re-zoned, and the mayor is less interested in the outcome.
Alternatively, a supplier is initially invited to tender. In time they win the
tender as the key supplier. Over this period, their priority as a stakeholder rises.
●● Further analysis. By segmenting a subgroup of stakeholders, certain analysis
techniques are more appropriate. For example, personas and empathy maps
are more appropriate for large, broadly homogeneous groups, whereas power
maps are more appropriate for small key groups of individuals.
●● To identify particular engagement strategies appropriate for each segment.
One common classification or set of segments is CPIG (Figure 4.3):
Governance
Provider
Customer
Influencer
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3. Scoping engagement
So how far should we throw the net in considering whom to include as a stakeholder?
There are a number of factors that help to scope appropriate engagement:
●● The impact of the change and its duration over time. Formal change impact
assessments may exist. These will indicate multiple stakeholders. Who are
affected? Who might be subsequently affected? (See Chapters 2 and 6.)
Sometimes the change will impact well beyond the organization. Public
sector programmes, for example, frequently effect social transformation.
●● How power is distributed. Power is rarely distributed as might be represented
in an organization chart. Key process and regulatory ‘gatekeepers’ have
power disproportionate to where they are placed in the organization’s
hierarchy.
●● Vision and visionary stories. (See also Chapter 2, Section C.) Often change
happens in the context of vision, but not always. If a vision for the end
game of the change is written or drawn, or explained as narrative with
protagonists, this will help to identify the people impacted by the outcomes.
●● The organizational culture, and how it sees itself working, and how it sees
change as legitimate or otherwise. The way the organization works (see
Chapters 1 and 2 on this) might be collaborative, so the style of decision
making might involve more parties who would consider themselves stakeholders.
●● Organizational reputation, and who might see it, enhance it, commend it,
threaten it, gossip it and leak it. Public relations are affected by major changes.
C a s e s t u dy
In one global foods business, a major change affected public perception of the company
as well as visibly impacting share prices. As a result, we consulted closely with the PR
department, who also contributed to who and how we would engage.
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Section A: Identifying and Segmenting Stakeholders 181
●● The likely winners and losers of the change. If a business case exists and if
any kind of benefits are identified from the change, these should indicate who
benefits. Any kind of risk analysis will also indicate who might lose. (See also
Chapter 3 on benefits management and Chapter 6 on change impact.)
●● Who is in the temporary organization (project) driving the change? Whom do
they represent?
Tip
Summary
An early and continuous step is to ensure that no stakeholder is forgotten. Omitting
a stakeholder from our consideration can be a major risk to the success of the change
initiative.
There are a number of identification techniques, such as rapid listing and mind
mapping. These work well within a workshop attended by the change team and key
stakeholders.
Identification continues throughout the change, particularly as stakeholders mention
others in conversation.
Segmentation helps prioritize and leads change managers to consider appropriately
different influencing strategies, as well as alerting to other hitherto ignored stake-
holders. The CPIG segmentation is a simple and established means of beginning the
process of segmentation.
1 Are you aware of all individuals and groups who will be impacted
by the change or its outcome? How can you be sure?
What might be the risk of missing someone?
2 Whom could you invite to a stakeholder identification workshop?
Do you need someone else to facilitate it?
3 How are you recording all the stakeholders? How current is it?
4 When reviewing the list of stakeholders, what segments of like stakeholders are
emerging?
5 How extensively do you scope engagement on this change? Have you
considered all the factors above in 3. Scoping engagement?
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Introduction
Change managers need a sense of who, among the population of stakeholders, are
key. Stakeholder mapping takes those stakeholders identified and begins to analyse
them, often in comparison to others, frequently using 2×2 matrices. By analysing the
characteristics of stakeholders, a number of techniques have emerged. This analysis
needs to be assembled into some overarching strategy, particularly where a team or
teams are involved, so that everyone stays aligned and ‘on message’.
Optimizing relationships with key stakeholders is a critical success factor for a
change initiative. But how do we determine which stakeholders are key? What are
the relative priorities for us among stakeholders?
1. Stakeholder characteristics
Change managers will seek to position stakeholders in terms of some key character-
istics, for example:
●● formal position or role towards the change;
●● nature of their interests;
●● level of their interest;
●● level of influence and power;
●● energy/emotional attitude to the change initiative;
●● likely wins and losses from the change/perceived benefits and dis-benefits;
●● likely readiness for change;
●● likely resistance to change and likelihood to adopt the innovation;
●● level of trust by the stakeholder in the change/change team;
●● ability to navigate the change and live in the outcomes;
●● relationships between stakeholders, including support and proximity of
relationships;
●● busyness/cycles of busyness that might distract or displace attention.
It is useful to agree measures and target positions for each stakeholder, using these
characteristics, as well as where we suppose each stakeholder is positioned currently.
The tension between current and target helps to identify necessary influencing strategies
to move the stakeholder to the target position. Of course, these characteristics are
not independent of each other as the mind map in Figure 4.4 shows. Below are some
methods to analyse these different characteristics.
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Section B: Stakeholder Mapping and Strategy 183
Pos
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2. Stakeholder interests
Think about what interests each stakeholder in and around the change, or as a
consequence of the change. Ask, ‘Is this interest shared by other stakeholders also?’
The stakeholders and their interests can be captured on a spreadsheet (Figure 4.5).
The stakeholders are listed down the left-hand column and their interests are
listed across the top. Often there will be a stakeholder within a stakeholder. In this
example there is ‘the Board’ but within it three directors have been separately identified,
within their own variance from the group interests. Since this chart is generated with
a spreadsheet, stakeholders can be nested within stakeholders (eg an individual
within a group), as shown in the Excel® spreadsheet along the left-hand margin. The
finance director, as an individual, may have a different or more specific agenda than
his or her other colleagues on the board, so the team needs to identify this director
separately for special analysis.
People are often more comfortable with talking in broad terms about groups and
bodies: the board, the executive team, the HR function or the IT group, but it is often
the individuals within these that we need to influence. For influential stakeholders it
is essential that we identify the key individuals within them.
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2
Stakeholder Map
1
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6
8 Finance Director +7 +6 +5 +4 +4 –1 +1
9
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10 Middles +4 +4 +3 +3 +1 +3 –1 +3
11 Senior Managers +5 +4 +3 +4 +3 +3 –2 +2
8
12 Managers +4 +5 +3 +3 +2 +2 –1 +2
13 Staff +2 +3 +1 +3 +1 +4 +3
9
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17 External +3 +4 +3 +1
18 Internal –2 +4 +5 +3 +2 +2 –2 +2
11
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21 Union –4 –1 +4
22 Press and Media +1 +2
13
23
24 Providers
14
25 Main supplier –3 +2 +1 +1
26
15
27
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Section B: Stakeholder Mapping and Strategy 185
This type of stakeholder map includes positive and negative attitudes as noted by the
shade of the cells. Also the number indicates the strength of the interest by each
stakeholder. These values and their scale have been agreed by the team and are
documented in the stakeholder engagement strategy. This is just one of a number of
variations of these sorts of tables or maps.
We can use this as a checklist in communications planning, checking whether
we are covering everything of interest with each stakeholder. As we go through
mobilizing engagement with the stakeholders, we can validate our understanding
and change the entries as required.
3. Power mapping
Where real power lies is not always immediately obvious. In some organizations,
some people wield influence and power disproportionate to their formal position.
There may be formal authority vested in someone’s role in an organization, but often
people lower down in the authority hierarchy ‘punch above their weight’; they are more
powerful than might first appear from an organization chart. For example, someone
in a junior position has power because they are the spouse of the sales director.
Chapter 12, Section D has more on sources of power and influence in organizations.
Power maps (Figure 4.6) are useful when you want to identify the key influencers
among a small group. This technique is used by some sales people for identifying the
key influencer in a buying decision in a target organization.
Gill Pole
In: 1 Out: 1
Bill Patterson
In: 0 Out: 1
William Newgate
In: 2 Out: 0
Pauline Crowther
In: 2 Out: 0
James Masters
In: 1 Out: 1
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Section B: Stakeholder Mapping and Strategy 187
The Kübler-Ross model (see detailed explanation in Chapter 1, Section B1) helps
track the emotional states of individuals and groups as they navigate a non-negotiable
change. Often managers and leaders will have gone through the curve and be going
up the other side. They cannot understand why everyone else is not as optimistic as
they are, the reason being that other people are still going down! When people are
experiencing ‘shock, denial, anger, bargaining and depression’ (all internally focused)
it is difficult for them to hear any communication from those who are further along
their personal change journey and are experiencing ‘acceptance, discovery and inte-
gration’. This is a known problem that medical consultants have to deal with when
advising patients on the best course of treatment: shock often means that the patient
simply cannot take it all in at that appointment.
Now, overlaying this curve we can see four broad attitudinal states in relation to
engagement:
●● denial;
●● resistant;
●● exploring;
●● champion.
Where there is a non-negotiable change – where people have to deal with it as there
is no alternative – then we can map individual stakeholders on their emotional journey
in a grid (Figure 4.7).
High
Denial Champion
Energy
Resistant Exploring
Low
C a s e s t u dy
One organization used this attitudinal mapping approach in centralizing its geographically
dispersed workforce of around 2,000 office workers into one central building. In terms of
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188 Chapter 4: Stakeholder Strategy
personal impact on each of these people, this was sometimes traumatic: moving home
and schools, lengthening commute, etc. It was clear from the evidence that, despite
communications well in advance, many had ignored this and were in the denial zone. As the
day approached, resistance surfaced and people realized this was a real threat.
Moving people to ‘exploring’ was helped by personal stories and research from people
who had already moved to the new location and found out about housing, schooling and
other local services. Some had found real added personal benefit from improved lifestyle
and this was also communicated.
The move was considered by this client to have been a success. About 200 people did
not move; they either resigned, took voluntary redundancy or early retirement. It was
recognized that for a change on this scale we will never bring around everyone to the
change.
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Section B: Stakeholder Mapping and Strategy 189
Programme team
Finance function
Business users
management
management
Key benefits and
IS function
Executive
dis-benefits by
Business
stakeholder
Key benefits
Key dis-benefits
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190 Chapter 4: Stakeholder Strategy
7. Measuring ability
The DREAM© Model (Figure 4.8) tracks some broad states of stakeholders. This is
a scale of engagement measuring people through degrees of engagement. It can be
used effectively to position, target and track the degree of engagement of different
stakeholders throughout the change.
Able
Exploring
Resistant
Disengaged
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8. Profiling stakeholders
The results of the stakeholder mapping and analysis of perspectives can be gathered
together into a stakeholder profile. The profile can then be used to track a stake-
holder through the change. An internal customer relationship management (CRM)
system can be used to record these profiles.
An alternative is to chart each stakeholder profile as part of a simple spreadsheet
that can then generate charts on any two attributes for all the stakeholders. Figure 4.9
gives an example of this sort of profile, which is a worksheet within a larger Excel file.
In the example in Figure 4.9, the position and ability rows have current (‘C’) and
target (‘T’) positions. Also, the benefits and dis-benefits have unique identifiers
(BN034..., DB004...) that allows cross-referencing with benefits profiling and modelling.
Overall, this kind of record allows the change team to see at a glance the current
assessment of a stakeholder and the related issues. It begins to help inform an
approach to that stakeholder, and perhaps other stakeholders.
Tip
For the persona image, use stock photography, although people often find a
more casual photo resonates with them. Avoid using a picture of someone
you know! A good test of the photo or picture will be when someone in the
team feels that the persona reminds them of someone in the group, but it is
not an actual photo of them.
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192
Perceived Resistance There is a lot of anger towards the change that could express itself in denial, passive resistance.
Next Steps Consultation meeting with Programme Director and HR Director with this stakeholder, facilitated by HR
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Section B: Stakeholder Mapping and Strategy 193
By using the challenging question: ‘Would Bill do this?’, where ‘Bill’ is a persona
(see below), the team can avoid the common error of providing what people ask for
rather than what they would actually use.
Engaging with groups can be constantly evaluated against the personas. If there is
disagreement about how best to engage with a particular group, then this can often
be resolved by referring back to the persona.
Caution: there is a danger that we all reinforce social stereotypes. Be careful with
this when using personas, and have someone in the group who challenges
caricatures of the people represented.
C a s e s t u dy
An example persona
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I’ve got
better things
I want my to do with
my time HQ is a
plant to be threat
the best
I want to make
THINK and FEEL? sure HQ do not
This I know the
plant is best way to disrupt us
my patch run things
‘Compliance with
the project is Lots of
more important e-mails/
than providing SEE? paperwork
clean water’ HEAR?
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Section B: Stakeholder Mapping and Strategy 195
What are the propositions put to him each day? What are the problems Bill has to
grapple with?
The lower sector is about what Bill says and does. It is about his words and
actions. What is his attitude? What could he be telling others about your initiative?
Look for potential conflicts with what Bill says and what he truly feels. This has
consequences when one leaves the conversation. To what behaviour does he revert?
The final two sections at the bottom of the map are pain and gain: what is Bill’s
pain? What are his biggest frustrations? Have you asked him? What are the perceived
obstacles standing between Bill and what he wants to achieve? Are there any risks he
might fear taking? Is there additional pain that you bring to him with your change?
What does Bill stand to gain? What does he truly want or need to achieve? How does
he measure success? What ways might he use the change to achieve his own goals?
Here are some simple steps to generating a useful empathy map:
1 Start by giving the group an individual persona.
2 Refer to the diagram and draft this face and sectors on to a flipchart or
whiteboard.
3 Build a profile with your team for the persona/stakeholder using the questions
above.
V N G C
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196 Chapter 4: Stakeholder Strategy
Governance
Segment
Quality
Manager
Influencer
Segment
on the level of engagement needed with each of them. From the centre, the different
levels of engagement are labelled:
V for vital to engage.
N for necessary to engage.
G for good to have engaged.
C for courtesy to inform.
The radar can then be segmented into the four domains of customers, providers,
influencers and governance (see Section A2 above). The boundaries of the segmented
radar (Figure 4.12) are porous; ie a stakeholder may straddle more than one domain,
and cross to another domain during the life of the change.
Stakeholders are plotted on the radar, and the primary question becomes: how
close are they to the centre? You can then begin to populate the radar. In the example
shown here, the programme director is right in the centre, whilst other stakeholders
fan out into different domains. Note as well how the existing supplier is closer to the
centre than the shortlisted supplier, as they are rather more engaged with the changes
taking place.
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Section B: Stakeholder Mapping and Strategy 197
High
Influential Observers: Key Players:
Keep Satisfied Engage Closely
Power/
Influence
Low
stakeholder in terms of their power/influence over the change against their actual
interest in it (Figure 4.13).
Stakeholders (groups and individuals) can then be plotted on this grid. Sometimes,
the grids can be used for targeting. For example, a powerful stakeholder in ‘Influential
Observers’ needs to move to ‘Key Players’; that is to say, we need them to buy in and
to be engaged more actively. It is just as important to ensure we keep certain ‘Key Players’
in that quadrant and not drift into disinterest. Further, the ‘Spectators’ need monitoring,
as they might move into other quadrants if a new interest or power base emerges.
Figure 4.14 shows how stakeholders can be plotted on to such a graph and another
characteristic (attitude to the change, ie ‘Allies/Partners’, ‘Neutrals’, ‘Opponents/
Adversaries’) added using a RAG (red/amber/green) legend.
Other common combinations of grid axes are:
●● trust versus alignment/consensus;
●● impact of the change on the stakeholder versus influence;
●● power versus commitment to the change;
●● energy versus commitment to the change;
●● change readiness versus commitment to the change.
Tip
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198 Chapter 4: Stakeholder Strategy
Carmen Amiss
High
Influential Observers: Key Players:
ay
ye s
Keep Satisfied eMelody
Engage
ge
g C Smith
Closely
lo
ose
sely
ly
y
Steve Gabrie Anton Len
Power/
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Denise Hind
C a s e s t u dy
In one project, the marketing director of New Media was someone of high influence, and
the performance of his line of business was going to be directly affected by the project’s
outcome (high interest). So he was a key player and needed on board every step of the way.
Consequently, frequent ‘face time’ was sought with him, usually on a one-to-one basis.
Whereas, another stakeholder on the same project was the IT network manager, and his
influence was marginal and neither the project nor its outcome would change his working
life much; most of the time he was kept informed as a matter of courtesy.
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Super Users
Programme
Press Office
Stakeholder
Customers
Operatives
IT Account
Manager
Manager
Director
Finance
Board
Dept
Team Role
HR
Programme Manager C C I I C C I C C C
Business Division X A I A A A I A A X
Change Champion
Business Unit C R A R R R A C R C
Change Champions
Change Agents I I R I C R C C I
Super Users C I C C C C I
Benefits Manager C C C I I C C
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Summary
Analysing a stakeholder is important for identifying the key stakeholders, and
towards assembling and maintaining a good engagement strategy, particularly when
working with a change team.
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Section B: Stakeholder Mapping and Strategy 201
There are some standard stakeholder characteristics that we can map, sometimes
using techniques specific to a characteristic, such as power. A complete description of
these characteristics can be assembled into a stakeholder profile. Some characteristics
lend themselves to mapping the current position and the target position. These stake-
holder characteristics are not independent of each other, and so the change manager
might focus on influencing to change one characteristic (eg perceived wins) so that it
changes another (eg attitude to the change or its outcomes).
Often mapping compares stakeholders with each other, and this can be done
across two or more characteristics. The most common of such analyses is the power/
influence–interest matrix, where each quadrant in the 2×2 matrix lends itself to a
different description, and therefore to a different engagement strategy.
When working within a change team or with other stakeholders influencing third
parties, defining the engagement roles in a RACI-X matrix and assembling a written
stakeholder strategy document is advisable. This helps coordinate everyone proactively
influencing others so that they are aligned, do not ‘interfere’ or undermine another
key relationship, and kept ‘on message’ when communicating about the change
initiative.
1 What are the key characteristics you need to measure and track on
this change? Are the measures agreed and defined in the strategy?
3 How are you going to record stakeholder assessments? What are the privacy
implications? Who will have access to them?
4 Is it clear what the current and target gaps are for stakeholders? Is there an
effective engagement strategy to help bridge that gap?
5 What is the balance of wins and losses telling you across the benefits
distribution grid?
6 Have you and your team got a manageable and usable set of personas for
groups?
7 Is everyone in the change team, and among your key influencers aware of their
particular engagement role, know how to do it, and have bought into it?
8 How will the team update itself on what individuals are discovering?
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202 Chapter 4: Stakeholder Strategy
Introduction
Gaining and maintaining the momentum of change is the challenge of change leadership.
Change managers need to consider and execute a range of approaches to managing
this momentum. Change often falters after the first flush of enthusiasm. The ability
to re-energize and mobilize stakeholders is a key success factor.
This is achieved by:
●● Seeking stakeholder opinions on the change and its outcomes, and how it will
affect them, their experience, their team, building trust and confidence.
●● Listening carefully to stakeholder needs and concerns, responding openly
and honestly to questions.
●● Exploiting communications technologies to encourage dialogue,
collaboration, and the sharing of ideas and information.
●● Identifying and engaging the ‘bright spots’, the opinion leaders, the potential
champions, making them advocates, whilst reducing the influence of those
who do not support the change.
●● Using appropriate tools to ‘mobilize’ the stakeholders through stimulating
interest and desire to take positive action.
1. Influencing strategies
Many influencing strategies that address the issue of momentum in change consider
who, among the stakeholder mix, are themselves influencers of others. Frequently,
change managers are not the most effective people to influence particular stakeholders.
This may be due to a lack of personal chemistry with that stakeholder, a lack of
position, a lack of shared history or lack of recognized credentials in the eyes of the
stakeholder.
Everett Rogers’s (2004) innovation adoption model (Figure 4.15: the model is
explained fully in Chapter 7, Section A4.3) is relevant if there is a large population
of stakeholders who all seem to have more or less the same power. The strategy is to
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Section C: Managing Relationships and Mobilizing Stakeholders 203
Early Late
majority majority
Early
Innovators adopters
Laggards
Quickest Slowest
to adapt to adapt
identify and target the early adopters and seek to recruit some of these opinion leaders
to the role of champion. For example, you could include some of these people in your
stakeholder workshops, as well as asking them to take on key communication events.
Also target and track the early majority, not allowing the change team to be
distracted by the apparent apathy or resistance of the late majority. Using this model
in this way can give an overall shape to the engagement strategy, build momentum,
and reassure key stakeholders that buy-in is proceeding in a predictable manner.
Others have described the value of those stakeholders who already exhibit positive
behaviours, modelling the change in what they already do. Pascale, Sternin and
Sternin (2010) calls these ‘positive deviants’ and the Heath brothers (2011) call them
the ‘bright spots’.
One of the most powerful influencing strategies is first to ask the other person for
their interests, their needs and their fears – to be interested genuinely in them and
their struggles. The simple courtesy of being interested first in them, of being fully
present with them in conversations about them, breaks down more hostility and
barriers than anything else I can think of. Listening to others first almost earns us the
right to be heard ourselves.
However, this is more than a matter of mere politeness. This principle recognizes
that no single person, or even a small group, has a full view of what is actually
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Section C: Managing Relationships and Mobilizing Stakeholders 205
This is part of what Goleman (1999) means by social awareness. He brings some
compelling data to the argument that all great leaders, people who operate at a high
level of influence and persuasion, have high emotional intelligence in this respect.
Daniel Pink (2014) describes this as a combination of perspective taking and
empathy. In order to influence a person to ‘buy’ your idea or proposal you need to
reduce your power and move to humility. He suggests attention to feelings as well as
to rational thinking.
5. Conversation in mobilization
It is easy to overlook the power of the simple, but purposeful, conversation. As a tool
of analysis, it is also extremely effective in influencing, particularly if used with tech-
niques like active listening (Chapter 9, Section C1).
When compared with other modes of engagement, such as giving presentations or
facilitating a meeting, the conversation is extremely versatile. It spans engagement
across the spectrum, from where we know the outcome we want to where the out-
come is far from certain, as the diagram in Figure 4.16 shows.
Conversations
Facilitation
One-to-one Coaching
Presentations
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8. Collaboration
Collaboration within the team and with key stakeholders remains one of the most
enduring themes of all successful influencing strategies. The degree to which a change
leader can recruit stakeholders to help with and model the change, the more likely
they are to see the change succeed.
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C a s e s t u dy
Oxford-based Unipart has a demonstration building where customers can walk around an
exhibit and see how RFID (radio frequency identification technology) based logistics
systems might work in storing, distributing and fulfilling orders. The exhibit allows customers
to play out different scenarios, showing how RFID technology can save time and waste by
comparing these with existing practices.
Tip
Discuss with the team how the ‘future’ might be prototyped for stakeholders,
in a way that both clarifies and conveys the benefits to them of the change.
Summary
Change managers need to maintain the momentum of change and re-energize engage
ment throughout the change initiative. A number of influencing strategies can help here:
●● Remember that some stakeholders are best engaged by others. Rogers’s
innovation model suggests that the early adopters are disproportionately
influential. Identify and mobilize these people. Collaboration is therefore a
key component of engagement.
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Further reading
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References 209
References
Bennis, W (1994) Authentic Leadership: Rediscovering the secrets to creating lasting value,
Jossey-Bass, San Francisco, CA
Cooper, A (1999) The Inmates are Running the Asylum, Sams Publishing, Indianapolis
Covey, S R (1999) Principle-Centred Leadership, Simon and Schuster, London
Egan, G (1994) Working the Shadow Side: A guide to positive behind-the-scenes
management, Jossey-Bass, San Francisco, CA
Goleman, D (1999) Working with Emotional Intelligence, Bloomsbury, London
Hall, D (2005) Jump Start your Business Brain: The scientific way to make more money,
Clerisy Press, Ohio
Heath, C and Heath, D (2011) Switch: How to change things when change is hard, Random
House Business, London
Kotter, J P (1996) Leading Change, Harvard Business School Press, Boston, MA
Kotter, J P and Cohen, D S (2002) The Heart of Change, Harvard Business School Press,
Boston, MA
Lewin, K (ed) (1951) Field Theory in Social Science: Selected from theoretical papers,
Harper & Row, New York
Lewin, K (1997) Resolving Social Conflicts/Field Theory in Social Science, American
Psychological Press, Washington, DC
Mayfield, P (2013) Practical People Engagement: Leading change through the power of
relationships, Elbereth, UK
Pascale, R, Sternin, J and Sternin, M (2010) The Power of Positive Deviance: How unlikely
innovators solve the world’s toughest problems, Harvard Business School Press,
Boston, MA
Pink, D (2014) To Sell is Human: The surprising truth about persuading, convincing, and
influencing others, Cannongate Books, Edinburgh
Rogers, E M (2004) The Diffusion of Innovations, Simon and Schuster, New York
Schein, E (1985) Organizational Culture and Leadership, Jossey-Bass, San Francisco, CA
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210
Communication 05
and engagement
Ranjit Sidhu
Introduction
Communication and engagement are at the heart of any successful change initiative.
Thorough plans for implementing change may well be in place, but ultimately it is
the people impacted by change who need to be prepared to accept it and adopt new
ways of doing things. If they have not received sufficient communications or had
opportunities to be actively engaged in the process, there will be much greater resistance
and change will not occur.
Many potential barriers can get in the way of successful communication.
Organizations include diverse groups of people with different perceptions, interests
and expectations. Add into the mix high levels of anxiety due to fear of the
unknown, which is inevitable during change, and it is easy to see how any meaningful
exchange of information and ideas can be hindered.
Different levels of engagement and commitment are required depending where
people are along the change journey. This calls for a mix of approaches and levels
of communication along the way. A well-thought-out and structured approach to
communication and engagement ensures that the right level of interaction occurs
with the right people, at the right time, in an efficient way. The illustration below
shows an overview of the topics covered in this chapter.
B.
A. Communic
e
Theory of effectiv Emotional
ating chan
ge
communicating Barriers
impact
Basic principles Improving
ension
The human dim Appeal to
effectivenes
s
ment
Achieving engage hearts & m
inds
C.
Different Channels
When and where to
D.
E. use them
Communication
Monitoring Strategy
and planning
Evaluation
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Section A: Theory of Effective Communicating 211
‘The organization that can’t communicate can’t change, and the corporation that
can’t change is dead.’ Nido Qubein, author and chairman of McNeill Lehman
C h a p t e r co n t e n t s
Section A: Theory of effective communicating
Section B: Communicating change
Section C: Communication channels
Section D: Communication planning
Section E: Monitoring and evaluating communication effectiveness
Introduction
Ever since human interaction began, ways of communicating have evolved from
making sounds, such as grunting and using body language, into using symbols to
record stories, which developed into language, writing, printing, telecommunications
and the more sophisticated multimedia that we have today. Through the years,
the aims of communication have always been to share information, to allow an
exchange of ideas, and to influence the behaviour or actions of others. To achieve
successful communication, we need to understand the complexities of what is
involved in communicating.
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Noise
Communication
Channel
Sender prepares Person at receiving
and sends a message end interprets the
message
A person decides on what message to send and constructs the message, which is
transmitted through a communication channel; the person at the receiving end
decodes the message to give it their interpretation of the message that was sent.
The person sending the message needs to translate thoughts into words, symbols,
diagrams and so on in order to formulate the message. The person at the receiving
end then works the other way around; to interpret the message that has been received
in a way they can relate to and take meaning from.
The term ‘noise’ refers to anything that interferes with the message, from the time
when it is sent to when it is received. For example, with a landline telephone, this could
be crackling that is heard during a call or, in the case of a mobile phone, it could be
a call cutting out due to a weak signal. It was this sort of interference, at a technical
level, that was Shannon and Weaver’s main concern at the time of their research.
The advantage of Shannon and Weaver’s model is that it is relatively simple to
understand and generic enough to be applied to most types of communication.
However, their model treats communication as a one-way, purely mechanical, process.
They considered meaning to be contained within the actual message transmitted,
rather than considering how the receiver would interpret the message and give the
information their own meaning. Nor did they consider a feedback loop back to the
sender of the information. With this model, the only way that the sender can check
if the message was received as intended, is to request feedback from the recipient of
the message.
Modern communication theory has extended the concept of noise (from Shannon
and Weaver’s model) to include any interference that makes it harder for the receiver
to interpret the message and its original intention. This can involve anything from an
uncomfortable chair that the person may be sitting on, to the thoughts, knowledge,
experiences and assumptions a person holds at the time of sending or receiving the
message. For example, a presentation delivered by a technology expert using very
specific technical terms and jargon will fail to deliver anything of real value to a
non-technical audience. In this case, using technical terminology creates noise, which
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Section A: Theory of Effective Communicating 213
n,
rgo
c a l ja
hni ak k
Tec ie spe spea
e ch ch ie
T te
re
Mo
acts as a barrier to effective communication taking place (Figure 5.2). Unless the
receiver is able to understand and interpret the information the sender wishes to
communicate, the message is of no use.
Tip
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Examples of this include using a ‘rule of thumb’ or an ‘educated guess’. This helps
with problem solving, making decisions, learning and discovery. However, shortcut
processing can easily lead to misunderstandings, incorrect assumptions and biased
thinking.
Behavioural psychologists have identified many cognitive biases (Kahneman,
2012). Table 5.1 lists four biases that can occur during change, with suggested com-
munication approaches to deal with them.
Cognitive biases relating to benefits forecasting are discussed in Chapter 3. It is
inevitable that biases occur and we cannot avoid filtering information that we process.
This adds to the ‘noise’ associated with messages being communicated and leads to
possible misinterpretations and incorrect assumptions. This concept is often referred
to as the ‘arc of distortion’ (Chapter 9, Section C2.1). The aim of any communication
effort is to minimize the ‘noise’ as much as possible. One way of doing this is to
incorporate opportunities for feedback wherever possible.
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Ta b l e 5.1 Four common biases and communication approaches to deal with them
Cognitive Bias Symptoms of this Communications
Bias Occurring Approach to Help
Overcome the Problem
Confirmation bias
A tendency for people People argue against the need Communicate reasons for the
to pay attention only to for any change. For example, a change and show objective
information that confirms their company that has been a evidence to back this up.
beliefs and ignore evidence successful market leader in Include the losses and
that indicates otherwise. the past but is now struggling problems that will be avoided
to remain competitive, may by changing.
have people who continue to Engage people in discussions,
believe they are the best and so they have an opportunity to
ignore market data that develop new insights about
indicates otherwise. the situation.
Repeatedly communicate
a compelling vision that
engages hearts and minds.
Availability bias
Tendency to perceive the A few instances of something Communicate when and how
more memorable or easily not going so well, eg aspects specific issues raised are
available information as of a new system not working, being dealt with.
the most significant. which lead to people Frequently highlight and share
complaining and being negative success stories, making them
about planned changes as a visible and easily accessible.
whole.
Bandwagon effect
The more people come Groups who are resistant to Start to communicate success
to believe something, change start to influence stories early, eg how successful
the more others want to others, and resistance spreads. a pilot was, and continue
‘hop on the bandwagon’. It can of course work the other throughout the change process.
way, as momentum builds Get others involved in
people actively start to adopt communicating these
changes. messages.
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The concept of feedback originates from the field of cybernetics, which is the
science of control systems (Fiske, 1996). A very simple feedback mechanism is, for
example, the oil-light indicator in a car – if this lights up, it is a message for the driver
that the oil needs topping up. As a result of that information, action can be taken to
address the situation. Similarly, during communication, feedback provides valuable
information about whether a message has been understood as it was intended.
A critical element to make this work is that the sender must be prepared to listen to
the incoming feedback and respond accordingly, rather than just be focused on sending
messages out. Further information on active listening is in Chapter 9, Section C1.
C a s e s t u dy
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One-way
inform
share information engage
takes less time shared input
less effort participative
little feedback takes longer
more effort
Two-way
Tip
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Smythe (2007: 15) explains that: ‘real engagement means asking people to think the
business issue through for themselves’. In other words, telling people information
will not result in engagement. Smythe goes on to say: ‘employee engagement is not
an end in itself; it is a platform from which to engage everyone in change so that
people move beyond “feeling a part of it” to having a meaningful role in it’.
Visible support from the sponsor and involvement from leaders at the top is critical
for any change initiative. Using a top-down, one-way approach to convey information,
such as the reasons and vision for change, are very useful in getting the information
out quickly to large numbers of people. However, to achieve fuller engagement, this
should then be balanced by a genuine invitation for people to participate in discussions
and offer their feedback. If people are given these opportunities within an environ-
ment of trust and openness, they will feel more involved and committed and become
more engaged with the change initiative.
C a s e s t u dy
An organization wanted to introduce flexible working hours to a workforce who were used
to working in set shift patterns. This was a big change for a traditional organization, where
nothing like this had been attempted before. The leadership agreed that a final decision on how
to implement this change would not be made until everyone had an opportunity to understand
the full consequences and give their opinions on the proposed changes. Forums were held for
people to participate in discussions and voice their opinions. Change agents were nominated
in different sections, so people had a point of contact to get their questions answered and
share any additional thoughts. The feedback gathered led to some changes to what had
originally been proposed, and as a result a more phased approach was used to implement
this change. People were more willing to participate because they knew they had an opportunity
to influence the outcome, and the result was that these changes were accepted willingly.
Summary
We cannot avoid communicating: we do it instinctively. There are many different
ways of communicating and an understanding of the basic principles of communication
opens up the opportunity to make considered choices that can make communication
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Section B: Communicating Change 221
more focused and effective. People communicating need to keep in sight the perspectives
of those receiving their messages, remembering how the timing and structure of a
message can affect how it is received. Understanding different approaches for com-
munication, and when they are appropriate to use, can make the critical difference
between the success or failure of communication efforts and ultimately the change
initiative.
Introduction
A consistent and thorough approach to communicating change is essential to:
●● build an awareness of the need for change;
●● achieve a shared understanding of what is required across stakeholder groups;
●● gain people’s commitment and get them actively engaged in making change
happen.
To accommodate the needs of diverse groups, different types of communication
activities and interventions should be considered. People have different preferences
for the way they process information, so the same messages need to be conveyed using
different formats and styles. Equally it is important to appeal to ‘hearts and minds’,
as making this emotional connection helps achieve fuller engagement during change.
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messages may have on people. If a change initiative is announced using words like
‘efficiency drive’ or ‘rationalization’, in a way that implies jobs could be at risk but
does not actually state that, people will make their own interpretations of what this
means. Trust is of paramount importance: where leaders are less than transparent about
the reasons for change, this can be very clear to employees, and they will lose trust.
THREAT REWARD
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Tip
It is better to say ‘we do not know yet and here is what we are doing
to find out’. Regular communication keeps people updated on
progress and helps to manage the rumour grapevine.
Tip
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Section B: Communicating Change 225
basic needs must be met first (Chapter 1, Section B3.1). This means people’s key
questions at this point will be: ‘How will the change impact me?’; ‘What does this
mean for my role and position in the organization?’ Messages need to connect with
people’s interests and concerns. This provides a more meaningful and relevant con-
text, so they can understand what the change means for them and are more moti-
vated to take the required actions. This approach helps people translate what could
be treated as the ‘management agenda’ into how it relates to them.
Tip
Tip
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sense of change, require time and patience. Getting people’s commitment to change
does not happen in one step or one meeting. At the early stages, people are gaining
awareness and assessing how the change and suggested actions broadly fit with their
lives. Next they move on to evaluate how feasible the actions are. Only at this stage
can they begin to absorb, and become engaged with, the detail. This is when the
capacity for commitment begins to form. The full journey will cover gaining awareness
of the change, understanding its implications, becoming involved with decisions, and
becoming committed to its success.
Tip
Tip
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Tip
C a s e s t u dy
An organization transformed their culture by focusing on changing the language and tone
of their communication from being traditional and overly bureaucratic to much more friendly
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230 Chapter 5: Communication and Engagement
and approachable. They focused on simplifying all of their communications and adopting a
much more personal and friendly style, even for internal, automatically generated e-mail
responses.
Consider when Nelson Mandela walked out on the field in the 1995 Rugby World
Cup wearing the South African Springbok team’s rugby shirt. Following decades of
apartheid rule, rugby had been the sport solely for the elite in a racially segregated
and deeply divided nation. Yet, in that moment, the act of Nelson Mandela wearing
the green and gold rugby shirt was a powerful symbol of a nation uniting as
‘one team, one country’.
The way leaders and managers interact with people on a day-to-day basis conveys
information about the organizational culture. How responses to people’s feedback
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Section B: Communicating Change 231
are managed also sends an important message. It symbolizes the extent to which
individual contributions are valued, and this will affect their levels of engagement.
The impact of this type of activity should not be underestimated, as it provides a
powerful context for the way people interpret things. They will be quick to notice
any inconsistencies and this will undermine other communication efforts.
Visual symbols are also extremely powerful and can be used to reinforce important
messages. When two organizations merge, the logo of the newly formed company
can become a powerful symbol of a new beginning and a new sense of identity.
Uniforms, company branding and the type of offices all send messages about what is
considered important within the organization. Using a visual image or symbol to
represent the vision for change can also be a powerful way of reinforcing the message
(Rose, 2010).
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Reach a resolution that addresses a ‘The merger was successful and went
problem smoothly.’
Have a clear key message that is ‘Each company has their speciality and
the main point of the story strengths, but together they are much
stronger, offer a better service and have
more opportunities’
Use rich sensory language to make Describe some of the characters involved,
it come alive the angst they felt, their thoughts and
concerns.
to relate to the story. Table 5.3 lists the characteristics of stories that can be used for
getting people engaged with change.
Tip
It is imperative for the success of any change initiative for the leadership
and change teams to be aligned and agree on the key messages around
change and the stories to communicate. In this way, even though the
different people involved in communicating these stories will be telling
stories in their own way, the key points and messages will remain consistent.
As well as using stories to get people ready for change, they can also be used to reinforce
change and help counteract negative views during change. For example, sharing peo-
ple’s success stories of how adopting changes has led to better and improved results for
them. Stories have a power to influence that is difficult to match through any other
type of communication. They can describe the journey through change in a relevant
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Section B: Communicating Change 233
and non-threatening way without the danger of seeming to ‘attack the current situa-
tion’, because there is no right or wrong with stories.
Denning (2011) describes use of different kinds of stories for different purposes and
how they can be used to counteract negativity. He refers to these types of stories
as ‘taming the grapevine’. He tells the story of a computer manufacturing company,
‘where stories circulated about managers not doing any real work, being overpaid,
and having no idea what it was like on the manufacturing line. But an additional
story was injected into the mix: One day, a new site director turned up in a white
coat, unannounced and unaccompanied and sat on the line making laptops for a
day. During the day, a person asked him “Why do you earn so much more than
me?” His simple reply: “If you screw up badly, you lose your job. If I screw up badly,
three thousand people lose their jobs.”’ While not a story in the traditional sense,
the manager’s words and actions served as a seed for the story that eventually
circulated in opposition to the one about managers being lazy and overpaid. The
atmosphere at the facility began to improve within weeks.
Summary
There are many factors to consider when planning communications, from how best
to engage people emotionally to the mechanics of how best to structure messages so
they can be easily understood. Change managers should work closely with other
members of the change team and, if available, specialists from internal communications,
to plan and implement robust communication approaches.
3 What styles and approaches have you used to engage people’s hearts
as well as minds?
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Introduction
During any change initiative there will be a diverse range of people with differing
communication needs. Change managers need to understand the many different
means by which communication can take place, so they can use the most appropriate
mechanisms to achieve their communication objectives. These mechanisms are referred
to as communication channels.
An effective communications approach recognizes the strengths and weaknesses
of different channels and uses them appropriately (Quirke, 2008) to ensure effective
communication occurs during change, whether that is top-down, bottom-up or
across the organization. Different types of change initiatives need differing levels of
communication and engagement. For example, the announcement of a redundancy
programme will need a more sensitive approach than the announcement of a new
software upgrade for employees’ computers.
Decisions about communication channels to be used are often made on the basis
of convenience for the sender. This can lead to communication failure. Better choices
will be made by focusing on the needs and perspectives of those receiving the messages.
Two main communication channels are typically employed during change: push
channels and pull channels.
Push channels
Push channels allow information to be sent out to people in a one-way direction.
These are useful for making announcements in a timely way, or passing on information
to keep people updated. They do not allow for feedback to be given easily, nor do
they provide the opportunity for people to get involved: examples of push channels
are physical notice boards, printed newsletters, instruction manuals. With push
channels, the sender’s control over the message ends once it has been released; there
is no further influence over how the information will be interpreted.
Pull channels
These are channels that allow people to access or ‘pull’ information when they want
it, and when it is convenient for them: a traditional library is an example of a pull
channel. This caters for many different interests and information needs, and people
use it when they want to, going to the specific areas that they are interested in.
Intranets, information portals and podcasts serve the same purpose. Pull channels
are valuable during times of change, and enable people to access information at the
point where they need it, and when they are ready to absorb its content. This will
vary according to different personality preferences. Some people may need time to
reflect on announcements that have been made about change, before they are ready
to start digesting that information further.
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Tip
Verbal
This includes both spoken and written communication. During any change initiative
information will be shared by speaking to people both informally and through more
formal presentations. There are also likely to be a vast amount of written messages
through update reports, e-mails, bulletins, newsletters, intranet pages, blogs and so
on. If available, the internal communications department can advise on corporate
style to use for both internal and external communications. The words used are
important; they can be used to influence and persuade, equally they can demotivate
and make people switch off. See Section 5.2 on appealing to hearts and minds
through using metaphors and storytelling.
Listening
This is quite likely the most underrated form of communication and yet it can be the
most powerful way of connecting and building rapport with people. See Chapter 9,
Section C on active listening. When people are experiencing change and the emotional
journey that goes with it, they need to know that their concerns have been heard,
before they can move to participating and engaging with change. The only way to
assess whether your efforts in implementing change are going according to plan, is
by listening to others’ opinions and views. This feedback gives you the vital informa-
tion needed to make change happen.
C a s e s t u dy
An organization that was struggling after a merger and had been drifting strategically, with
the help of a new CEO wanted to change its culture to a more open and trusting environment,
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Section C: Communication Channels 237
where people felt they could have their say. They set up an initiative for all managers and
leaders to arrange open forums, to allow people to talk about whatever was on their mind.
There was no set agenda. The only rule stipulated was that the managers and leaders in
these sessions were not to speak, only listen! After each session, the topics of discussion,
and how people felt about these, were recorded via an online portal, so that the information
could be reported back to the board. Thousands of people participated in these sessions
and, even though it was clearly out of many people’s comfort zone, the results led to a major
transformation in the organization. Senior management had to start addressing the issues
that actually mattered to people. It also helped to create a more open and trusting
environment where people felt more comfortable speaking up about the matters that
concerned them.
Visual
The saying ‘a picture speaks a thousand words’ is very apt, as the brain is capable
of subconsciously absorbing very large amounts of information almost instantly,
whereas it is much slower at processing words. Visuals can act as a mental shortcut
for the brain and the simplest image can quickly communicate an important message
as well as emotion (Figure 5.8).
Using visual diagrams and images can make communication more effective and help
to reinforce important messages. I say ‘can’ rather than ‘will’ as the visuals need to
support the intended message and be appropriate for the audience.
An icon is a classic example of a symbol that is representative of a message
(Figure 5.9). Airports the world over use the same easily and universally recognized
icons to help direct people to where they need to go. Company logos, brand names,
type of office and location, the pictures and posters on the wall, are also visual
symbols that send out a message. Visual forms of communicating are non-verbal and
include use of signals, gestures and body language.
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Meaning that we cannot help but communicate something, even when we are not
saying anything. Communication occurs anyway, non-verbally through our facial
expressions and gestures.
C a s e s t u dy
One organization chose to use posters to launch a major change initiative around health
and safety. Posters were chosen, as they work well both in digital form and print, and they
wanted to cater for a diverse, international population, some of whom were comfortable
with the digital world whereas others were not or did not have easy access to the internet.
The change team met with communications experts to share the key themes and messages
to be portrayed. Other channels were used with posters to promote the change initiative,
such as blogs and newsletter updates. People were encouraged to vote for their favourite
posters and share their feedback on them, either online or via suggestion boxes. The result
was that it created more conversation and people engaged with the change initiative more
readily.
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Section C: Communication Channels 239
3. Fostering collaboration
During any change initiative there is a need to bring groups of people together, to share
information, exchange ideas and generate solutions to challenging issues. These
groups can be brought together in larger numbers or in smaller, more informal settings.
Tip
Keep group sizes for these types of discussions small. This helps create a
comfortable and trusting environment where people feel safe to speak out.
It encourages the kind of interaction that will build relationships and
encourage respect for conflicting views.
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C a s e s t u dy
In one organization, a ‘Rumour Buster’ group was set up online and they chose to use a
number of different channels to support this. Employees were encouraged to post online
anything they had heard, and to ask about it. Members of the executive and senior team
responded personally. Alongside this, physical post-boxes were placed across the
organization, providing the option for people to physically post their rumours anonymously.
A champion of the scheme would then post it online on their behalf, so that both the query
and the answer could be viewed more widely.
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Section C: Communication Channels 241
This scheme helped to increase the visibility of the senior executive team, and allowed
front-line employees to engage directly with them on their priority issues. The company
also organized live question-and-answer sessions between senior teams and staff. It
proved to be a great way for them to ask any strategic questions and opened up lines of
communication that had not been available before.
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●● Put best practice guidelines in place about what is acceptable and what is not.
●● Establish governance to monitor adherence to a clear social media policy.
●● Have dedicated resource to generate content and interaction to help build
momentum.
●● Seek commitment from all levels of management for use of social media.
●● Put monitoring systems and processes in place to measure its effectiveness.
Guidelines are essential, especially in those professions where there may be legal
restrictions around the information that can be shared; for instance, in the health-
care industry where patient confidentiality is key. Social media enables unmediated,
quick, peer-to-peer communication without any control from above. This can be
challenging within a traditional top-down hierarchical organization with a culture
of controlling communication in a top-down fashion. Leaders will also need to
demonstrate its use, and be seen to be fully involved with social media, if they are
expecting their people to engage with it. It can take time for social communications
to become embedded in an organization, so be patient and plan for this.
C a s e s t u dy
In one company where a social network had been implemented, the uptake had been low.
The HR director stopped sending company updates by e-mail, and only made them available
on their enterprise social media network. It became obvious that some people seemed
much better informed and ‘in the know’ about company updates than their colleagues.
These were the people who had been the early adopters of the social network. People soon
changed their behaviour and started accessing the network, as they had no other option
and they did not want to be left out. Training sessions were offered about how to use the
new tools. They now have four times the industry average rate of participation.
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Section D: Communication Planning 243
Summary
An effective communications strategy will include a balanced portfolio of com
munication channels, which meets the needs of the different audience members, is
convenient for them and suits their preferences. There are many different types of
channels that can be used within organizations. They can be very simple, such as the
use of the visual emoticons to represent emotional involvement and use of posters.
Or they can take the form of enterprise-wide social media platforms or large-scale,
face-to-face events, which encourage greater sharing of ideas and collaboration
amongst wider groups.
All those involved in communicating change should look for opportunities to
use different types and combinations of channels to support their communication
efforts. This will ensure they achieve the appropriate levels of understanding and
engagement from people during change.
3 What needs to be done to make better use of the range of channels available
to you?
Introduction
During any change initiative, people need to understand:
●● why change is necessary;
●● what is involved;
●● how it will impact them;
●● what role they can play in making change happen;
●● what happens next.
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Effective communication aims to get the answers to people in a timely way and get
them engaged with the process. To do this, communication planning needs to find
ways to:
●● Provide information: to keep people updated with relevant and timely
information, ideas and concepts.
●● Provide the context for change: people need to understand the bigger picture
surrounding the changes and be able to relate it to their own situations. This
provides a map that helps them navigate through what may otherwise be seen
as chaos.
●● Engage people: allowing them to develop a shared understanding, exchange
ideas, relay concerns and contribute to making change happen.
●● Evaluate and gather feedback: to check how communication is being received
and whether it has been effective.
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246 Chapter 5: Communication and Engagement
measurable so that progress can be tracked and any problems in achieving them can
be identified early. Objectives should also be linked to key milestones for the change
initiative.
Tip
A common mistake is to try and ‘sell’ the change too early, before people are
ready to accept that change will happen. Beware of this and pay attention to
where people are in terms of their levels of awareness and commitment.
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Section D: Communication Planning 247
Messages do not have to be just factual data; they can be put into a narrative
form, to develop a story for the change. Different narratives can be used, one at the
organization-wide level, and other versions that are more specific to different audience
groups.
Use a variety of formats to suit different preferences and have both short and long
versions of the messages, ie something that can be stated in less than one minute such
as an ‘elevator pitch’, as well as longer versions. Communication packs with presen-
tation slide packs, frequently asked question sets and so on, all help with providing
consistency of messages. Change managers should proactively seek out the right
information from the sponsor and other key stakeholders.
Tip
Do the research to find out which issues are important to the audience,
and what a good outcome may look like for them. Use this to define the
communication objectives for each audience group, and identify what the
messages should be and how you will track whether those outcomes have
actually been achieved.
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Communication strategy
2 Analyse audience/stakeholders
Communication plan
Measure
Target Key
Objective Activities Who Timing for
audience messages
impact
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Section D: Communication Planning 249
Setting out a well-considered communication plan will ensure that timely, appropri-
ate and consistent activity takes place to deliver all the objectives set out in the com-
munication strategy. It shows who is going to deliver what, when, to whom and how
that will be measured, by setting out:
●● the target audience;
●● the objective that is to be achieved for that audience;
●● the key messages to communicate;
●● the activity that will deliver those messages and achieve that objective;
●● the person(s) responsible for that communication;
●● the timing of activities;
●● how the activity will be measured.
Figure 5.12 shows an example extract of a communication plan. It can be difficult
depicting all the necessary information, especially the detail of the activities and their
Key messages Drivers and benefits for Narrative for why we are doing this and
change and clear vision the benefits. What this means for them
Narrative for why we are – impact and new opportunities
doing this and what the Actions required of them:
benefits will be Develop key messages and narrative for
Progress update their areas
Conduct briefing sessions with their teams
Give their input into content of briefing packs
Activities and Monthly face-to-face Initial offsite meeting, with external facilitator
timing meetings to explore issues and develop key messages –
Fortnightly progress (by end of next month)
update reports – first Breakfast meeting – with a member of the
and third senior leadership team and the sponsor.
Tuesdays of the month 1 day training session on use of social media
and writing blogs
Newsletter – with updates on progress, and
featured stories about individuals’ experiences
so far, selected from people across different
departments – (every two months)
Sent via e-mail and placed on intranet
Monthly face-to-face meetings
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1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Change
Meeting x x x x
Manager
Breakfast Change x
meeting Manager
Newsletter x x
timing. If this is the case, information from the communication plan about the
activities and their timing can be shown separately in a communication schedule.
Figure 5.13 shows an example extract of a communication schedule.
Summary
Effective communication is such a critical aspect of managing change that it needs
careful consideration from the very start of the change initiative. Those involved in
communicating change should understand the aims of the change initiative, consider
the terrain and culture within which change is taking place, and use the information
gathered from thorough stakeholder analysis to devise appropriate communication
strategies and plans for change. The planning process needs to include a careful con-
sideration of the target audiences, the tone and content of the messages, the most
effective channels to use, the timing for messages, and how results will be monitored
and evaluated. Following a structured approach, as outlined in the steps above,
allows you to develop effective plans to maintain a consistent and effective com
munication effort throughout the change initiative.
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Section E: Monitoring and Evaluating Communication Effectiveness 251
2 How did you test whether the key messages were relevant and
appropriate for the different stakeholder groups?
3 Do you have regular and varied communication activities scheduled across all
the stakeholder groups identified?
Introduction
Regular monitoring and evaluation of the communications approach is essential to
understand if the actions taken are getting the desired results. If they are not, this
information will pinpoint the areas where more focus, or a different approach, is
needed to ensure the planned benefits can be realized (see also Chapter 3, Sections C
and D).
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252 Chapter 5: Communication and Engagement
Tip
Always link what you measure to the communication strategy and key
objectives.
2. Capturing data
There is no single perfect way to capture information, so a range of different methods
will provide better results. Initial research will have to be done to find out the starting
position at the beginning of a change initiative, so that improvements can be assessed
against this initial baseline. The method selected will depend on what is to be measured.
For example, for the communications channels to be used during the change initiative,
initial research should identify whether these channels are used currently and how
effective they are.
This takes into account both quantity and quality dimensions, which are some-
times referred to as ‘reach’ and ‘richness’. The ‘reach’ refers to the number of people
who, for example, receive a newsletter, and the ‘richness’ refers to the number who
have understood the key messages or taken some action. There are many technology
tools available to measure activity, such as how many people read a blog, newsletter
or other online content, or whether people click on further links, add comments
and so on. These methods are useful for measuring the activity taking place.
However, it is more useful to know who is actually reading this content and what
impact it has. To understand this, more interaction is required, through the use of
methods such as surveys, focus groups, observation and individual interviews
(Chapter 7, Section D2).
How well people respond to surveys and requests for feedback depends very much
on the way they are asked for this information and how this process is managed:
●● Let people know that their feedback is important. If they do not contribute,
their voice will not be heard.
●● Make it easy and accessible for them to make their contributions.
●● Make it clear that the purpose of surveys and questions is to measure the
effectiveness of the communication activities and improve them – it is not a
test to assess people.
●● Follow through with regular updates on how that feedback has been used
and the difference it has made.
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Section E: Monitoring and Evaluating Communication Effectiveness 253
C a s e s t u dy
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254 Chapter 5: Communication and Engagement
close to major changes being implemented, then there is more reason to question
the effectiveness of the communication.
Tip
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Section E: Monitoring and Evaluating Communication Effectiveness 255
C a s e s t u dy
Summary
The outputs from monitoring and evaluation are invaluable for change managers
and the other key roles involved in the change process. This information will high-
light where communications have been fully understood, whether those affected are
becoming fully engaged in the process, and where collaboration is making the best
contribution. By dedicating time and effort to planning the approach and processes
for monitoring and evaluating communications throughout a change initiative,
improvements can continually be made to future communication plans and activities.
The effort involved in doing this should not be underestimated, and yet this area
cannot be neglected. The effectiveness of communications leads to the effectiveness
of the overall change initiative.
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Further reading
References
Blundel, R, Ippolito, K and Donnarumma, D (2013) Effective Organisational
Communication, 3rd edn, Pearson Education, Harlow
Charvet, R (1997) Words That Change Minds: Mastering the language of influence,
2nd rev. edn, Kendall/Hunt Publishing, US
CIPR (Chartered Institute of Public Relations) (2012) Share This: The social media
handbook for PR professionals, Kindle edn, Wiley, Chichester
Deitz, K and Silverman, L (2014) Business Storytelling for Dummies, Kindle edn,
Wiley & Sons, New Jersey
Denning, S (2011) The Leader’s Guide to Storytelling: Mastering the art and discipline of
business narrative, Kindle edn, Josey-Bass, San Francisco, CA
Fill, C and Jamieson, B (2006) [accessed 15 July 2013] Marketing Communications, e-book,
Edinburgh Business School, Heriot-Watt University library [Online] http://
coursewebsites.ebsglobal.net
Fiske, J (1996) Introduction to Communication Studies, 2nd edn, Routledge, London
Frahm, J and Brown, K (2006) [accessed 19 July 2013] Developing communicative
competencies for a learning organization, Journal of Management Development, 25 (3),
pp 201–12 [Online] www.emeraldinsight.com
Kahneman, D (2012) Thinking Fast and Slow, Penguin, London
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References 257
Kanter, R M (2005) [accessed 20 July 2013] Leadership for change: enduring skills for
change masters, Harvard Business Review [Online] http://www.hbsp.harvard.edu
Larkin, T J and Larkin, S (1994) Communicating Change, McGraw Hill, New York
Lewis, L K (2011) Organisational Change: Creating change through strategic
communication, Wiley-Blackwell, Chichester
Mehrabian, A (1981) Silent Messages: Implicit communication of emotions and attitudes,
Wadsworth Publishing Company, Belmont CA
Pilkington, A (2013) Communicating Projects, Gower Publishing, Surrey
Quirke, B (2008) Making the Connections: Using internal communication to turn strategy
into action, Kindle edn, Gower, Surrey
Rock, D (2009) Your Brain at Work, HarperCollins, New York
Rose, C (2010) How to Win Campaigns: Communications for change, Kindle Edn,
Earthscan, London
Shannon, C E and Weaver, W (1949) The Mathematical Theory of Communication,
University of Illinois Press
Smith, L and Mounter, P (2008) Effective Internal Communication (PR in Practice),
Kindle edn, Kogan Page, London
Smythe, J (2007) The CEO, Chief Engagement Officer: Turning hierarchy upside down to
drive performance, Gower Publishing Ltd, Aldershot
Timmerman, C E (2003) Media selection during the implementation of planned
organizational change, Management Communication Quarterly, 16 (3), pp 301–40
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258
Change impact 06
C a ro l i n e P e rk i n s
Introduction
Planned organizational change intends to impact the ‘business as usual’ aspects of
the organization in some way or another. These impacts can be both positive and
negative, and can affect individuals, teams, business units, the organization as a
whole, customers and other external groups. Change can create great disturbance
and turbulence in an organization and care is needed to balance ‘managing the
change’ and the ongoing task of ‘managing the business’.
Pascale (1999) highlights the difficulty of gaining order in chaotic, uncertain
times. His research explains that living systems are difficult to direct due to a weak
understanding of cause-and-effect linkages and, as such, our best laid efforts to
intervene in a system – to change it or even to replicate it artificially – almost always
miss the mark. The best-laid plans are often perverted through self-interest, misinter-
pretation, or lack of the necessary skills to reach the intended goal.
Identifying and analysing the impact of change is one of the keys to effective
change management planning and helps to avoid, or at least minimize, the disruptive
effects and support the positive aspects of the change. When assessing the impacts it
is important to bear in mind that there is often an organizational ‘Pollyanna’ effect
(when someone thinks only good things will happen or finds something good in
everything, after the heroine of the novel Pollyanna by Eleanor Porter, 1913). This
leads to a tendency to downplay the change, thinking it is easier than it is, and down-
playing the impacts.
Tip
As a rough rule of thumb, the more it costs, or the bigger the benefits,
then the more potential to disrupt business as usual (BAU) operations.
Ask the question, ‘Why spend all this money if there is no change?’
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Section A: Assessing the Impact of Change 259
Change
impacts
Change Business
risks continuity
C h a p t e r co n t e n t s
Section A: Assessing the impact of change
Section B: Assessing and managing the risks of change
Section C: Business continuity and contingency during change
Introduction
Change impact assessment is the process that analyses the impacts and implications
of a change initiative on all aspects of the business, the operations and its people and
customers, as a basis for decision making and planning for a change initiative.
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260 Chapter 6: Change Impact
Once the change has been properly defined it is important to conduct a full
assessment of the impact. The results and insights gained from this activity will have
a bearing on how and if the change will proceed. This places the change impact
assessment at the heart of the change management process.
Assessing the impacts of the change can be a complex exercise as it brings
together all the elements of the change itself, personal responses to the change, the
environment within which the change is occurring and other competing demands on
people’s time, whether at work or in their personal lives.
Assessing the impact of change is a two-step process. The first step is to identify
the impacts, from the perspective of the organization, implementation and stake-
holder. Once this is complete, the second step is to determine the severity of these
impacts for each of the stakeholder groups, taking into account the environmental
and change maturity of the organization.
This section covers:
●● Methods and techniques for conducting a change impact analysis (including
heat maps and process mapping) to gather relevant data and information that
addresses the wider implications of change for the organization, its structure,
processes, people and stakeholders.
●● Methods for evaluating and quantifying the effects and costs of managing
the positive effects (benefits) on the one hand, and the unexpected negative
consequences (dis-benefits or ripple effect) of change on the other.
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Section A: Assessing the Impact of Change 261
This is the easiest to assess and often how the ‘change impact’ is articulated
to a business area, as they are tangible and have an immediate effect. It is
important that these are also explained in context of the planned and
unplanned impacts.
It is important to fully examine all impact areas, and to ensure that business leaders
gain understanding and sign off on this understanding. As introduced earlier, it is
common for businesses to underestimate the impacts of a change (often overstating
the benefits at the same time), and the earlier they are understood the less risk for the
organization.
C a s e s t u dy
Key inputs
When starting to identify the impacts of any change initiative there are a number of
key inputs, the most important of which are:
●● The detailed proposal and plans for the change initiative: these will have
identified the change, the deliverables, and the benefits of and the risks to the
change happening. For the sake of completeness the change plans should also
identify high level impacts, and activities to manage those impacts, as a basis
for the change management budget. If this level of analysis was not completed
as part of the planning phase, it should be done as part of the impact
assessment phase.
●● The gap analysis (also covered in Chapter 2, Section D3): this forms a
high-level view of the starting point (current state) and the ending point
(future state) of the organization and therefore the gap that needs to be
managed.
●● The stakeholder assessment: this will help you to identify the key business
areas and whether external stakeholders (ie customers) will be impacted.
Chapter 4 explores this in more detail.
There are a number of useful models that can be used as a guide to identify change
impacts as they relate to the organizational and the implementation aspects of the
initiative, as shown below.
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262 Chapter 6: Change Impact
Structure
Strategy Systems
Shared
values
Skills Style
Staff
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Section A: Assessing the Impact of Change 263
the McKinsey model to assess the gap will help to determine the impact and the
project or programme activities that are involved in realizing the organizational
strategy of the initiative.
C a s e s t u dy
Table 6.1 provides an illustration of a gap analysis for a project to implement a shared
services model for an organization. This shows how the McKinsey model can guide the
assessment of the intended change of the organization and the project activities that are
required to embed the change.
The change activities need to support and address both the ‘gap’ and the barriers to
change. Using a formal approach such as this will help to identify impacts that may have
been missed without looking at the organizational interconnectivities. For instance,
examining the shared values element identifies that a cultural awareness and collaboration
programme will be required across internal and external teams.
Structure Multiple execs Single exec of New structure, IR implications for Organizational
and decentralized shared services, & reinforcing more junior staff redesign
structures reduced financial and HR programme
Staff freeze
management system enablers
may hinder Billing system
layers
redeployment training
opportunities
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Ta b l e 6.1 continued
System Multiple finance Single ERP Knowledge and Staff do not like ERP training,
and HR systems system used for ability to use the the one-size-fits- coaching and
used across the finance and HR new system and all approach of support
organization activities processes the system programmes
available to staff
in three centres
(locations)
Style Clear ownership The introduction Processes and Lack of clarity Leadership
of teams and of a consulting RACI around role training,
resources model requires requirements, coaching and
a change in loss of productivity support
leadership and motivation programme
style and matrix
management
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Section A: Assessing the Impact of Change 265
It is important to test the assumptions that have been made in deciding on the initiative
strategy, as Chip and Dan Heath (2010) discovered in their recent research, what
looks like a people problem is often a situation problem, and the simpler the solution
the more realistic the change. Be very clear about the interventions that are required.
For example, they explain that changing people’s habits from drinking full fat to
skimmed milk is a behavioural change in purchasing habits rather than a change in
drinking habits, as families will drink whatever happens to be in the house!
Be wary of the concept of intuitive design and underestimating the difficulties for
many people in coming to terms with new ways of working. The design itself is not
automatically intuitive; designs are only intuitive if the user already has enough
knowledge about the design to understand it and operate it, or the user has enough
knowledge to work out how to operate it. The change manager has a role to help the
designers ensure that the user has the required amount of knowledge to enable them
to use their ‘intuition’.
Substance Is the change hard (systems, What does this mean for the type
structure, strategy) or soft (skills, of interventions that are needed
style, shared values)? (capability gap assessment)?
Sequence Is the change staggered or big Can the approach be used to trial
bang? outcomes and learn from initial
approaches?
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Ta b l e 6.2 continued
Speed What speed of change is required How quickly and what effort is
for success, immediate results or required to gain behavioural
longer-term benefits? change and realize benefits?
The aforementioned detailed proposal and plans can provide the information
required to assess the implementation approach impacts. Reviewing the stated business
benefits or success measures can give a sense of the scale, scope and speed of the
change. Benefits and the business case are addressed in Chapter 3, Section B4. Further
information on financial aspects of change is available at Chapter 13, Section D.
C a s e s t u dy
For a change initiative where increased sales are the main benefit it is important to
understand which customer segments and which distribution channels are key to realizing
them, and therefore where the scale impacts will fall. The difference in segmentation
approach, and therefore impacts, is shown in Table 6.3; the two options have very different
impacts.
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Section A: Assessing the Impact of Change 267
Option 1 Option 2
As previously stated, the detailed proposal and plans should also provide an insight
into the assumptions that are made in determining the scope of the change initiative.
It is important to look at what is in scope and also what is explicitly out of scope for
the programme. Often it is the out-of-scope items that cause the most problems for
the change programme as the new world butts up against the old world, with incom-
patible culture, systems, processes etc.
An example of this can be the methodology used to implement the change. Agile
methodologies are becoming more and more prevalent as organizations respond to the
constantly changing competitive environment (Chapter 8, Section A1.2). Not only
does this bring challenges when assessing impacts – as the change may not be fully
formed at the beginning of the project and ‘emerge’ as the design iterations complete
– the move to agile methodology may be a change that needs to be managed in itself.
Tip
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Tip
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Section A: Assessing the Impact of Change 269
C a s e s t u dy
An example stakeholder impact assessment for the introduction of a new website is shown
in Table 6.4. In this instance it was more a case of taking the organizational structure and
working out their role in setting up and managing the new website. As can be seen, although
the initial assessment seemed to indicate a smooth and easy transition, further analysis
identified quite a complex impact picture across a large number of stakeholder groups.
The resulting high-level assessment helped to ensure the correct level of investment into
change management activities.
Media, Partners, Interested parties who may see the changes on the new website
Unions etc and misconstrue the nature of them without adequate
communication and engagement.
Customer The customers will experience a change to the website and may
find it difficult to locate what they are looking for. This may lead
to increased calls to the contact centre or complaints.
PR, Marketing & Sales teams need to play a role in making external parties aware
Sales of the website changes.
Media play on the new brand and design, indicating a
transformed organization.
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Ta b l e 6.4 continued
Customer Support Call centres will be taking calls from the customers to help them
navigate the new site.
Operational Support The operational areas will provide second-level support to the call
centres when they are not able to answer the customers’
problems.
Product Will need to understand the new processes for uploading their
Development product information to the new website.
Technology Develop the system and provide final support if there are
problems with the new website.
Finance, HR, Legal Legal will need to provide sign-off for the disclaimers across the
new website.
HR need to adjust the approach to recruitment through the use
of the new website.
Executive Be involved in providing support and energy to the teams that are
Leadership getting used to the navigation of the new site and helping
customers through the change process.
Step 2: d
etermine the specific impacts on each stakeholder/
group
Once the role that each stakeholder group plays in supporting the change has been
determined, the next step is to work through what this means for them. Table 6.5
leverages the McKinsey 7-S model and can be used as a checklist for assessing the
impacts for each stakeholder group. Impacts will differ for each group and it is common
for areas to experience multiple impacts.
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Section A: Assessing the Impact of Change 271
System New systems, system upgrades New hand-held tablets are being
Changes or replacements. Software or used to take orders at tables.
infrastructure.
C a s e s t u dy
Continuing the example of the new website, we can examine in more detail the impacts to
the e-business group, part of the distribution area. The impact as documented in the
stakeholder analysis is: ‘the content management processes need to be adjusted to support
the new website, this includes sign-off responsibilities and writing/brand guidelines’.
Using the stakeholder impact checklist (Table 6.5), to examine the impacts in more detail,
it is clear that this high-level impact translates to detailed impacts in all areas (Table 6.6).
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272 Chapter 6: Change Impact
Job Changes New job roles, objectives and performance measures introduced
for people in the new team.
Behavioural Change of behaviour for those people who had been used to
Changes publishing their own content, requiring them to respect the
views and changes that the new process was introducing.
Capability Changes Training in the new CMS system and training in the correct way
to write customer communications in the correct ‘voice’.
Financial Changes New operational budgets to support the new e-business group.
Redistribution of budget from marketing areas to support this.
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Section A: Assessing the Impact of Change 273
–– Use cases: these are an invaluable source of information when they have
been developed; they will provide both a ‘happy’ path and an ‘unhappy’
path, explaining how a process will work for different scenarios. User
acceptance testing often leverages these use cases and can double-check
assumptions.
●● Scenario testing
–– Business workshops: bringing together key subject-matter experts to walk
through scenarios is a great way to test impacts, often this will identify key
issues that can be solved much earlier than if they had been found in
testing – or worse, in a live situation. For example, testing the customer
identification paper process against an actual driving licence highlighted
that an issue date that is a mandatory piece of information does not
actually exist!
–– Customer experience: there are a number of customer experience
specialists around that can do everything from record the movement of
your eyes to providing role-play opportunities. But if these are not
available, simple techniques such as videoing a planned experience – for
example, a call-centre operative playing out the new behaviours on the
phone with an imaginary customer – can elicit great feedback.
●● Pilots
Pilots can provide great feedback and input to a change programme, not only
can you test new software, it is possible to trial new support models, the
training that is planned and make adjustments as required. Make sure that
participants from different segments are involved; include both detractors and
early movers to make sure the feedback is well rounded.
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C a s e s t u dy
Customer 200 Off phones for one hour Medium High High
Contact face-to-face training to (100%)
Centre understand new customer
processes. 5% increase in
customer calls expected with
no compensating resourcing
increase for three months as
letters are sent out – may
impact service levels.
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Two M L H L L L H H H
Three H M L L L L M M M
Four M N/A M M H M H H H
Five L L H L L L L L L
Six N/A L M M H L M L L
Overall H M H M H M H H H
Impact
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Summary
With the business environment becoming more chaotic and uncertain, understanding
change impacts has become equally more complex. The approaches to identify and
assess the severity of impacts examined in this section provide some guidance
and frameworks to analyse the interconnecting aspects of implementing change.
The impact assessment process often provides clarity on risks and business continuity
requirements that were not previously understood.
However, change management is not a linear process and it is important to constantly
assess impacts as the project or initiative becomes clearer, or as the environment
changes (Chapter 2, Section A explores how strategy influences organizational
change). No two changes are ever the same and, as such, this is an important aspect
of the change process that should not be taken lightly.
1 Have you linked the planned business benefits with all the
stakeholder groups that will be required to deliver and support
the changes?
3 Have you aligned the impacts with the risk assessment and the business
continuity planning?
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Section B: Assessing and Managing the Risks of Change 279
Introduction
Risk assessment and management is an essential component of successful change.
It can be very useful to position change management as an integral part of a corporate
or an initiative’s risk management strategy, particularly to senior stakeholders or
programme/project managers that see limited value. Clearly, if there was no risk to
the organization either in realizing expected benefits or in disrupting the business-
as-usual activities, then there would be no need to specifically manage the change.
Heath and Heath (2010) argue that it is important to highlight the possibility of
failure as a corollary to the norm of taking the ‘rosiest possible interpretation of the
facts’. Assessing the risks of the change effectively will help you do this.
A key priority is to work with programme/project managers and business repre-
sentatives to establish effective governance arrangements that reflect the need to
manage the risks of the change. Risks can be hard to identify, and being hit by an
unexpected consequence often has a business impact and, in some circumstances,
reputational damage. Performing a risk analysis is an essential step in the change
management process, and provides a useful communication tool for sharing concerns
and communicating vision.
Change risk should be looked at from three perspectives (see Figure 6.5):
●● Strategic: the risk that the business benefits (or the change) are not realized or
sustainable.
●● Business: the amount, or type, or order of change negatively impacts the pro
ductivity of the business or their readiness to receive the change (change fatigue).
●● Programme/project: the solution development and delivery, and the associated
change management activities, are not sufficient to meet the needs of the
strategy or the business areas.
Strategic Risk
Business Programme/
Risk Project Risk
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Understanding change risks first requires an analysis of the potential risks and then
agreement on the actions that will manage, or mitigate the risk effectively. As with
any activity and process within the change management arena, constant feedback
and monitoring is required to assess progress and incorporate learnings.
This section covers:
●● the terms definition and characteristics of a change risk (threat or opportunity);
●● effective risk management governance structure (roles, responsibilities and
processes);
●● methods and techniques for identifying, capturing, analysing and mitigating/
resolving risks;
●● content and use of a risk register for a change initiative, programme or project
as basis for management or risks and for compiling reports for decision makers.
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Probability (1–5)
Consequence/
Impact (1–5)
Likelihood/
Tip
3. Risk analysis
The purpose of a risk analysis is to identify the possible barriers to successful
organizational change and then estimate (assess) the likelihood that they will materialize.
Identifying risks to benefits realization and optimization is also a key area of focus
(covered in detail in Chapter 3, Section C).
The risk analysis leverages the information gathered through the impact assessment
process, and particularly the feedback received while validating impacts with stakeholder
groups. Use the activities to identify the corresponding issues/barriers/risk, such as
those seen in Table 6.10.
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The risk analysis needs to cover the strategic, business and project/programme as-
pects of the change, but do not need to be IT- or project management-related risks;
these may be identified but should be supported more fully in other responsibility areas
(see Chapter 8 for more information about using risk management tools in projects).
Specific workshops can be held to gain insights to the change risks of the initiative.
A good starter for these sessions is to start with a failure, and ask people to think
through how this may have happened.
C a s e s t u dy
An online business is implementing a new online system for their accounts payable process,
where invoices will be entered via a web-based system by their pre-approved suppliers.
The workshop was introduced with the following positioning:
It is two weeks after the implementation of the system, suppliers are not able to enter
their invoices into the system, some are starting to experience financial stress due to
the previous ‘hold’ on invoice payments due to the system conversion process, the
newspapers are reporting the issues, which is impacting the brand of the business.
Why did this happen?
The risk assessment extract shown in Table 6.11 was developed as a result of a change risk
workshop.
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Consequence
Likelihood
Overall
Strategic The reputation of the Low High Medium Ensure that the
organization is impacted PR group are fully
due to inadequate Public informed and have
Relations involvement prepared for potential
and management issues
Project System upgrades that Low Medium Low Ensure that the
are not required for the go-live weekend is
new system impact the quarantined from
performance of the non-essential system
system upgrades
Once the risk has been identified, the likelihood and consequence of the risk
happening need to be determined. This is often subjective and will need to be
validated by the involved stakeholders.
4. Mitigating actions
Once the risks have been identified and validated the actions that are required to
effectively manage the risk need to be planned and implemented. It is standard process
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to update and report on the progress of risk management at least monthly. The mitiga
tion activities need to be able to be actionable by the person assigned to own them.
Risk responses can include:
●● Acceptance: effectively the ‘do-nothing’ option: ‘If the risk occurs then we will
deal with it.’
●● Reduction: actions that will change the likelihood and/or consequences of the
risk.
●● Transfer: where some or all of the risk is transferred to a third party, eg
insurance.
●● Share: where a risk is shared by multiple parties using the ‘pain/gain’
principle.
●● Contingency: planning ahead for suitable responsive actions should the
situation change.
Summary
It is important for organizational leaders to adopt a solid and formalized change
management strategy to achieve their strategic objectives (Chapter 2, Section A). In
Prosci’s 2012 benchmarking report, the top obstacle identified by study participants
was inefficient change management sponsorship from senior leaders, followed by
inefficient change management resourcing.
The change strategy provides activities for mitigating both internal and external
risk factors of failure and poor user acceptance and adoption. Presenting change
management as a risk management strategy to key stakeholders helps to explain and
gain support for change management activities from senior leaders of the organization
to reverse this trend.
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Introduction
Change can be disruptive and care needs to be taken to balance ‘managing the
change’ with the ongoing task of ‘managing the business’ (Figure 6.6). The most
important risk during change is to business continuity, ensuring that during and after
change the business continues to work effectively. Identifying and analysing the
impact of change enables effective initial planning and preparation, and helps to
minimize the effects of non-controlled change.
The change manager and corporate business continuity roles work together to
identify the potential impacts of a change initiative on business as usual. This
includes reviewing plans to identify core business processes, confirming impacts,
providing input for changes to the process and advising managers of these changes
as required.
Business
Strategy
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C a s e s t u dy
To aid the BCP process it is important to include the following as part of the project
or change planning:
●● Adequate activity modelling and process mapping (Chapter 2, Section D and
Chapter 13, Section C) and assessment of the change impact has been done.
●● Cutover processes are tested effectively, pilots and parallel runs work well.
●● Business continuity plans are adjusted and tested.
●● Business readiness is measured for all impacted groups, and included the
changes to BCP plans.
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Summary
Change managers are not usually expert in business continuity; however, it is impor-
tant to understand the concepts and work with key stakeholders to ensure business
continuity plans meet the needs of the changed organization.
1 Have you assessed the impacts to the core business processes in the
business continuity plan?
3 Have you assessed the business continuity risks and included them in your
change risk register?
Further reading
References
AS/NZS ISO 31000 (2009) [accessed 2 September 2014] Risk Management: Principles and
guidelines [Online] http://www.standards.co.nz/news/standards-information/risk-
managment/
Cameron, E and Green, M (2012) Making Sense of Change Management, Kogan Page,
London
Change Management Institute (2011) Organisational Change Management Maturity, White
Paper [Online] https://www.change-management-institute.com
Heath, C and D (2010) Switch: How to change when change is hard, Broadway Books, New
York
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References 289
Myers, K (1996) Total Contingency Planning for Disasters: Managing risk, minimizing loss,
ensuring business continuity, John Wiley & Sons, Chichester
Nohria, N and Khurana, R (1993) Executing change: seven key considerations, Harvard
Business School, Background Note 494–038
Pascale, R (1999) Surfing the edge of chaos, MIT Sloan Management Review, Spring,
pp 83–94
Peters, T and Waterman, R (1982) In Search of Excellence: Lessons from America’s best-run
companies, Harper and Row, New York
Porter, E H (1913) Pollyanna, LC Page, Boston
Prosci® (2012) Best Practices in Change Management, Loveland, CO
Taleb, N (2007) Fooled by Randomness: The hidden role of chance in life and in the
markets, and the follow-up, The Black Swan: The impact of the highly improbable,
Random House, New York
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Change readiness, 07
planning and
measurement
N i co l a B u s by
Introduction
Change readiness is concerned with preparing the organization for the changes it is
facing. An organization that is ready for change will find it easier to implement and
sustain the new ways of working, and therefore reap the benefits of the change.
It is much easier to identify the tangible and practical things that are needed
(such as new IT systems or organizational structures) than ensuring the cultural
conditions are in place to support the change. This means equipping people with the
motivations and attitudes to engage with the change and make it work. However,
if this aspect is neglected, there is a vastly increased risk that people will resist the
change, fail to adopt new ways of working and that the change will therefore be
unsuccessful.
This chapter focuses on the people and cultural aspects – why they matter, how to
identify the issues and increase change readiness, how to prepare for resistance to
the change and how to measure the impact of any change interventions.
C h a p t e r co n t e n t s
Section A: Building individual motivation to change
Section B: Building organizational readiness for change
Section C: Preparing for resistance
Section D: Measuring change effectiveness
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C = change
A = level of dissatisfaction with the status quo
B = desirability of the proposed change or end state
D = practicality of the change (knowledge of the next practical steps, minimal
risk and disruption)
X = perceived ‘cost’ of the change
Basically, an individual will decide to make the transition if they perceive that the
effort or ‘cost’ of changing is worth it. In order for this to happen, they have to be
unhappy with the way things currently are, happy with the proposed solution, and
not face too many unknowns or too much risk and disruption during the change.
Implied in the formula is the assumption that if either A, B or D are zero then the
change initiative will never overcome the ‘cost’ of the change, people will resist and
the change will fail. In this case, the formula can be a very useful way of beginning
difficult discussions with the change sponsor and senior management about the
wisdom of continuing with the change initiative.
Focusing on raising levels of A, B and D will lower resistance, increase motivation
and therefore increase the chances of the individual engaging in the change. Some
ideas of how to do this are listed below:
●● A: level of dissatisfaction with the status quo. Communicating the ‘burning
platform’ (Section B2.1) can help to increase dissatisfaction with the status
quo. For example, if the change is being made for regulatory purposes,
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dissatisfaction with the status quo can be easily generated by making staff
aware that they or the organization could face the consequences of acting
outside of regulations. For changes that aim to increase efficiency, talking to
people about how much time they are currently spending on a task, and
exploring what they could do with that time instead (taking a lunch break,
leaving on time in the evening), will again soon raise levels of dissatisfaction.
Be careful to keep the dissatisfaction within the scope of your change,
otherwise people may start to focus on other workplace issues in need of
improvement – and which are out of your control.
●● B: desirability of the proposed change or end state. This can be increased by
focusing on the benefits of the change – both corporate and, more
importantly, individual. For example, an office move may mean that people
are closer to better shops and cafés; a move to electronic filing may result in
an environmental benefit of less printing. However small these benefits may
be, if well communicated they can increase the desirability of the change
significantly.
●● D: practicality of the change. Being clear on what steps you need users to
undertake will help to reduce the fear of the unknown and allow them to
plan their time during the change. Users are often concerned that the
disruption of the change will affect their performance and reduce their ability
to undertake their day-to-day work. This is often the case in the short term
whilst a change is being implemented and embedded. It is important to put
mitigations in place to reduce risk and disruption as much as possible, and
then communicate these mitigations to users. For example, amending
performance targets whilst users get used to new software, or planning
office moves for a weekend, will show users that the practicalities of the
change are being thought about and effort is being put into minimizing risk
and disruption.
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When going through a change of any significant size, many organizations decide
to establish a specific network of change agents, or champions, to support the change.
Membership of this network consists of ‘on the ground’ internal staff, usually one
representative for each area, department or team affected by the change. The change
agents are nominated by their area to work on the change alongside their ‘day job’.
Change agent networks can offer the following benefits:
●● One dedicated person to assist in the information flow from the change team
to each specific business area and back.
●● A network of people across the organization who have the ability to break
down silos and look at the effects of the change and possible solutions across
different departments.
●● A manageable-sized group with which to develop and test ideas, approaches
and solutions.
●● A source of information and a feedback mechanism for affected staff that is
trusted and ‘one of us’.
●● A group of users with in-depth knowledge about the change, who can
challenge, constructively criticize and suggest best ways to approach the
change for their particular areas.
●● Expert users for new processes or systems brought about by the change.
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The role will be in addition to your day job and take approximately
4 hours per week – more during busy periods.
not being released from other obligations. Figure 7.1 shows an example of an internal
advertisement for a change agent.
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Tip
What’s in a name? Be careful with the name you choose for your network.
The author once struggled to recruit ‘Change Champions’ as potential
recruits did not want to be seen to be passively championing the change.
Whilst you want people who widely support what you are trying to do,
you don’t want mindless support with no challenge. Therefore, choose a name
to accurately reflect the role, for example ‘Change Pioneer’ or ‘Change Partner’.
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Laggards
Late majority
Early majority
Early adopters
Innovators
0 5 10 15 20 25 30 35 40
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●● The majorities: these make up the largest percentage of your users (hence the
name). They are a vital group to work with as they can be persuaded to support
the change, but can also easily resist the change dependent on the information
they are given and the behaviours they observe from the early adopters.
Messages about benefits, opportunities derived from the change and explanations
about what the change will entail will help to swing them over to your side.
●● Laggards: these will often resist change. It is important to find out whether
they are doing this because they generally find change difficult, or because
they have genuine concerns about your specific change. If the former, try to
keep them from ‘poisoning’ others and ensure they are given extra support
during the change. If the latter, it can be invaluable to the success of your
change to engage them and explore their concerns. You may find that they
have got ideas or insights that no one else has thought of and which,
if addressed, could significantly improve the change.
Tip
Summary
Change is very personal and each individual will have a diverse reaction to your
change. In order for the change to be successful, each affected individual will have to
decide to transition from old ways of working to the new.
The following may help to increase individual motivation to change:
●● motivational theories (Chapter 1, Section B3), including expectancy theory;
●● appreciative enquiry;
●● Beckhard and Harris’s (1987) change formula.
It is important to set up a structure to support individuals, either a network of
change agents or middle managers. There are also different models of engagement
for individuals in adopting change, depending on whether they are early adopters,
in the majority or laggards.
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1 How could you use Beckhard and Harris’s change formula (1987)
to help increase motivation for your change?
Further reading
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What are the seating Organizational culture, Staff engagement and buy-in
arrangements and where management style. is vital for a successful
do managers sit (do they sit change. A collaborative
with their teams in open culture and informal
plan areas or do they have hierarchy means that
separate offices with greater levels of staff may
closed doors)? have influence over the
change. Greater levels of
involvement and buy-in will
be needed here than in
a culture where staff are
more used to doing what
they are told.
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Ta b l e 7.1 continued
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Tip
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It was change for change’s There was a recognition that Make sure the need for
sake. change needed to happen. change is clear.
Decision points took a long People listened to our Ensure there is enough
time to get to, then change questions and concerns. time to plan properly for
was rushed through. the change.
There was a lack of There was early Engage early and frequently
engagement. engagement. throughout the change.
We were consulted but There was learning from Consult, listen to concerns
there was no action or previous mistakes. and be clear on how we
feedback as a result. will deal with ideas,
suggestions and issues.
There was a lack of training Our expectations about the Ensure there is enough
and support. change were managed. training and support for
everyone.
We felt defensive, resistant, The change led to a more Check frequently on how
critical, hostile, sceptical, unified service. people are feeling about
demotivated. the change.
attention in your change, but be careful how many burning platforms are being
described at any one time, as continual messages of panic can be exhausting and
give the impression of constant firefighting rather than planned and controlled
improvements within the organization.
A more positive way to build awareness of the need for change is through focus-
ing on the benefits that will be realized through the change initiative. The benefits
of change are often on two levels – corporate and local. Whilst staff may be inter-
ested in the corporate level benefits, it is really the individual benefits – what’s in
it for me (WIIFM) – that will win hearts and minds for the change. Holding work-
shops with users (a good exercise for your change agent network) to explore where
they think the local benefits will be can help to build good communications to get
buy-in for your change. Table 7.3 shows some examples of corporate versus local
benefits for a move from paper to electronic case files.
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Section B: Building Organizational Readiness for Change 307
Reduced risk of losing files during Easier to work cases remotely leading
transportation around the organization. to more flexible working patterns.
Potential for ‘big data’ work to help Easier to search for information within
set future organizational strategy. a file.
Be truthful about the benefits of your change, though. Not everyone may benefit,
and some aspects of people’s jobs may become more cumbersome, repetitive or less
appealing. Be honest about what will improve for people – and what will not. Often,
if one thing improves, particularly if it is something that people care a lot about,
a lot of other dis-benefits will be tolerated.
Be very careful about how you communicate the need for change if there may be
job losses. Whilst there may be very strong corporate benefits for this type of change,
the individuals involved may not see any benefits at all. Take advice from HR about
how to communicate this type of change, but always be truthful about what the
potential impact may be.
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will become concerned about potential issues before any answers or reassurances
can be given. However, if information is not given, people will fill in the gaps with
rumour and conjecture, which can be more damaging and very hard to dispel in later
stages of the change. Chapter 5 describes how to communicate effectively during the
early stages of a change.
Stakeholder engagement, involvement and communications are all activities that
need to recur throughout the change preparation process. As discussed in Section A
of this chapter, there is an individual change journey for each person affected by
the change, and they will need continual engagement to ensure they move towards
accepting and supporting the change. Don’t make the mistake of assuming that
because one article has gone out on the change in the internal newsletter, and key
stakeholders have attended one workshop, that the organization is ready for the
change.
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Ta b l e 7.4 The pros and cons of internal versus external recruitment for
your change team
External Recruitment
Internal Recruitment (Including Consultants)
Staff will generally You may not get Senior managers will Bringing in outside
trust their colleagues 100% of people’s often listen to and resource to work on
more than they will time – they may respect the opinion change can increase
an outsider. have to keep their of an outside expert. the feeling that
day job ‘ticking over’ change is being
as well as working done to people, and
on the change reduce opportunities
initiative. for ownership.
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Summary
Organizational readiness is a key part of preparing to implement change initiatives.
There are a number of elements to this, including:
●● assessing organizational factors such as culture, values and management style;
●● developing the competencies needed to deliver the change, including utilizing
skills from other areas of the business, recruiting into your own team and
developing stakeholder skills;
●● building awareness and support for the change.
Change management should begin as early as possible in the change process, as
should communications in order to minimize the risk of the informal grapevine
filling in gaps with rumour and conjecture.
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2 What other teams and departments will you need to work with in
order to plan and implement your change?
3 How can you build awareness of the need for your change in a positive manner?
Further reading
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The CIPD (2013) defines the psychological contract as ‘the perceptions of the two
parties, employee and employer, on what their mutual obligations are towards each
other’. ‘Perceptions’ is the key word here, as the obligations of a psychological con-
tract are not written down in the formal employment contract, but are the unspoken
assumptions and expectations developed through verbal promises and results of past
actions.
Organizations that have positive psychological contracts with their staff are
rewarded with high levels of employee commitment. This normally translates into a
positive impact on performance. If this psychological contract is broken, the results
can be a negative impact on job satisfaction, commitment, engagement and, there-
fore, performance.
It is very important to consider the psychological contract when planning for
a change initiative, as alterations to current ways of working can threaten a positive
psychological contract. The resulting loss of commitment and engagement may not
only mean that the change fails to realize its benefits, but the impacts might be felt
a lot wider across the organization and for a long time into the future.
There are various things you can do to help mitigate the threat to the psychological
contract during your change:
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Loss of control over territory ●● Leave room for those affected by change to
make choices, get involved with planning and
take ownership.
Loss of face from those ●● Celebrate the elements of the past that are
associated with current state worth honouring.
Past resentments surface due to ●● Consider gestures to heal the past before
the interruption of a steady state focusing on the future.
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Office Move
More informal
breakout areas
Further from
train station
Organization all
n one building
in
Disruption
whilst moving
As you can see from Figure 7.4, the forces for and opposing the move are similar in
total, but the biggest resisting force is the move from static desks to hot-desking.
Focused work with people on accepting the move to hot-desking, and therefore
weakening that particular resisting force, will increase the chances of the change
being successful.
Tip
The initial reasons given by people for resistance are not always the real
reasons. It may be that your change will uncover covert practices or lack of
skills that have so far gone undetected and which people will not readily
admit. In order to deal with the real issues, dig deep with resistant users to
find out what they are truly worried about.
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Ta b l e 7.6 continued
Sabotage People bring their own Sabotage is subversive Identify the saboteurs and
agendas to meetings, so it is often hard to ensure they know they have
workshops and identify the source. been identified.
training sessions. New systems and Give people responsibility
Try to ‘break’ systems processes can be fragile for aspects of the change in
and processes. in their early stages and order to increase their
Spread negative quite easily broken if buy-in and accountability.
rumours about the someone really puts
change to colleagues. their mind to it.
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working in order to make the change initiative a success. This means they can really
influence your change.
Middle management can be a stressful position in which to sit in an organization.
Managers have to ensure that directives from senior management are implemented,
and also have to deal with resistance and issues from their teams, all whilst maintain-
ing performance standards. If the organization is quite new to change, they also
may not have experienced before either going through a change, or managing others
through a change. Therefore, it is important to understand that managers and
supervisors may need support to buy into and back your change.
Communicate as much as you can with your managers and supervisors. It is
important that they are able to answer questions from their staff about the change,
and they can be put in an awkward situation if they do not know what is going
on. Workshops, briefings and written FAQs can all help managers and supervisors
to understand what is going on and also to support their staff.
Managers and supervisors who are struggling with the change may also benefit
from some informal coaching or mentoring (Chapter 9, Section C describes coach-
ing). This can help you to support your managers and supervisors to deal with
challenges brought about by the change.
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keep the levels of communications and ‘good news’ stories high. Publish hard
data updates, for example ‘300 more people have gone live with the change
this month’.
●● Task managers with the responsibility for delivery: build successful
implementation for their areas into their targets, objectives or reporting.
Remember: ‘if it isn’t measured, it doesn’t get done’.
Summary
Resistance to change is to be expected and, therefore, it pays to prepare for it. There
are common causes for resistance, for example loss of control or increased uncertainty,
but each change will also have specific elements that may also cause resistance.
There are a number of techniques to deal with resistance, depending on the cause
and type of resistance you are experiencing and the urgency of the change. Building
and sustaining momentum, and supporting managers and supervisors, are both key
factors in preparing for resistance.
4 What practical activities can you undertake to build and sustain momentum for
your change during planning and implementation?
Further reading
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1. Measures of engagement
Change management is all about taking people on a journey. One way to explain
this journey is through using the ADKAR® model (Hyatt, 2006). This is a set of five
sequential building blocks, all of which are needed to move people through a success-
ful change. The model states that if a change fails to be implemented successfully, one
or more of the blocks has usually been missed out. The five building blocks are:
●● Awareness of the need for change.
●● Desire to participate and support the change.
●● Knowledge on how to change.
●● Ability to implement required skills and behaviours.
●● Reinforcement to sustain the change.
It is important to ‘take the temperature’ periodically throughout this journey in
order to check that people are still with you and have not stalled along the way.
As measuring change is not straightforward, it is worth measuring a number of
factors using a variety of methods, both statistical and anecdotal, in order to build
a picture of how effective your change interventions are. Measures can include:
●● Engagement with the change: do people know what the change is and what it
is trying to achieve?
●● Feelings about the change: are people generally supportive of what the change
is trying to do?
●● Readiness for the change: are people prepared and informed about what the
change will mean to them?
●● Progress with change activities: what and how many activities are being held?
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Figure 7.5 shows an example of engagement measures that could be taken during
a change journey. They gauge the levels of readiness and commitment to the change
by the organization, using the ADKAR® model.
Benchmark: Pulse
Benc
survey asking how any
surv Benchmark: In depth survey
Benc No oof people
people know about
peop about how people feel about
abou attending demos
atten
the cchange the cchange. Focus groups new systems,
of ne
exploring why people feel
expl proc
processes etc
the wway they do
Time and activity
Number of people
Time and activity
ACTION REINFORCEMENT
Num
Number of people live Num
Number and type of
with new ways of policies changed,
polic
work
working instructions issued on
instr
new ways of working
Time and activity
Mon
Monitor KPIs and MI to
chec
check desired performance
is ha
happening
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Pulse Taking a quick temperature Easy to interpret quick Are you looking
surveys check about the change. yes and no answers. forward to the
Can be repeated change? Yes/no.
throughout change journey
to measure progress.
Focus Finding out why Data can be very rich The survey says
groups something is happening – – need to be able to that 70% of people
often used to dig down capture it all and pick are not confident in
into the quantitative out themes and salient using the new
results of a survey. points. software. Why do
you think that is?
Individual Sensitive subjects where Data can be very What are your
interviews people may not be happy rich and personal to thoughts on the
to discuss their thoughts individuals. May not change? Why do
in public. reflect the thoughts you think that?
Senior managers who are of the organization as
too busy to attend focus a whole, but can be
groups, or who may useful to understand
digress or disagree if where key stakeholders
put in a group together. are coming from.
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Between five and ten people is a good number for a focus group. Any larger and
it can be difficult for everyone to have their say. Any smaller and you may not get
the range of ideas and thoughts that you need. Make sure you invite people who
are comfortable in discussing ideas with each other. For example, inviting staff to-
gether with their manager may mean that no one feels comfortable about being
really honest. Having separate sessions for staff and managers means people may be
able to discuss issues and concerns much more openly. Set some ground rules before
you begin, including confidentiality, so that people are happy to discuss issues openly.
Be aware that focus groups will only give you the ideas and interpretations of that
particular group of people, and may not be representative of the wider user group.
To mitigate this, it is worth holding a number of focus groups with representatives
from different segments of your users in order to get a wider picture of thoughts and
concerns.
Take notes on a flipchart about key points raised so that all participants can agree
that you are representing their views accurately. You can write up these flipchart
notes afterwards and e-mail them to your participants at the same time as thanking
them for their time and letting them know what will be done with the information
they have given.
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appendix, eg a pie chart to show the number of people who have attended training,
a bar graph with results from a pulse survey.
Collating and presenting data can show how effective the change management
interventions are being, which may not otherwise be picked up. Figure 7.6 is a real-life
example of a survey completed by staff attending a training session on a new IT
system that was about to be implemented. This shows:
●● The vast majority of attendees agreed that the training met its objectives.
●● 100 per cent of attendees feel confident they understood the content covered
in the training session.
●● Most attendees found the session very useful.
However:
●● Less than 30 per cent of attendees are confident in using the new system.
The data in Figure 7.6 shows that, even though the staff are pleased with the training
session, it does not mean that they are confident in the new ways of working. This
means they will struggle to make the transition and, therefore, the success of the
change is at risk. Presenting feedback from the training session in this way will build
the case for investing in more support to staff throughout the implementation and
make sure they are confident in using the new system.
Use a range of qualitative reports to back up your quantitative data, for example
quotes from evaluation forms and case studies. Case studies from early adopters of
the change are an excellent way of communicating progress to other users, as they
will be very interested in seeing how one of their colleagues is getting on with the
change. The following short case study offers an example.
C a s e s t u dy
I am a senior manager in casework and have been using the new technology for about
a year. It took a while to get used to working electronically, but the training and support
from my local super user really helped when I was getting frustrated.
I have found the new technology has lots of features that are an improvement on paper.
Information is more secure; you can search easily for key words; you can increase font
size to reduce eye strain; and you can copy and paste text or take snapshots of documents.
I also like that I can be in a different location to one of my colleagues, but still be able to
look at the same documents as them. This really comes in handy as I often need to discuss
information with people who work in different locations. I also like that I don’t have to cart
heavy paper files backwards and forwards!
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Yes
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Q2 I feel confident that I have understood the content covered in the training session
Answered: 102 Skipped: 0
Yes
No
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0 1 2 3 4 5 6 7 8 9 10
Q6 Having completed training do you think you can now confidently use the new system?
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Summary
Measuring change is not simple but there are four factors that could be measured:
●● engagement with the change;
●● feelings about the change;
●● readiness for the change;
●● progress with change activities.
Four commonly used techniques for measuring change are pulse surveys, one-off
surveys, focus groups and individual interviews, each with their own challenges. Data
should be presented to senior managers as simply as possible and in visual form.
2 How can you best present data in order to give your sponsor
confidence that the organization is ready for your change?
3 Who from your change could give a good case study for potential resistors?
Further reading
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References
Beckhard, R F and Harris, R T (1987) Organizational Transitions: Managing complex
change, Addison-Wesley, Reading, MA
Bridges, W (2009) Managing Transitions: Making the most of change, 3rd edn, Nicholas
Brealey, London
Cameron, E and Green, M (2012) Making Sense of Change Management: A complete guide
to the models, tools and techniques of organizational change, 3rd edn, Kogan Page,
London
The Chartered Institute of Personnel and Development (CIPD) (2013) [accessed 12 April
2014] The Psychological Contract [Online] http://www.cipd.co.uk/hr-resources/
factsheets/psychological-contract.aspx
Cooperrider, D L and Whitney, D (2005) A Positive Revolution in Change: Appreciative
inquiry, Berrett-Koehler Publishers Inc, California
Herzberg, J F (2003) One more time: how do you motivate employees? Harvard Business
Review, 81 (1), January 2003, pp 87–96 (reprint of original article from 1968)
Hyatt, J M (2006) ADKAR: A model for change in business, government and our
community, Prosci Learning Center Publications, Loveland, Colorado
Kanter, R M (2012) [accessed 12 April 2014] Ten Reasons People Resist Change [Online]
http://blogs.hbr.org/2012/09/ten-reasons-people-resist-change/
Kotter, J P and Schlesinger, L A (2008) Choosing strategies for change, Harvard Business
Review, July–August, 86 (7–8), pp 130–39
Kübler-Ross, E (1969) On Death and Dying, Macmillan, Toronto
Lewin, K (1964) Field Theory in Social Science: Selected theoretical papers,
Harper Torchbooks, New York
Lunenberg, F (2011) Expectancy theory of motivation: motivating by altering expectations,
International Journal of Management, Business and Administration, 15 (1), pp 1–6
Maslow, A H (1943) A Theory of Human Motivation, Cambridge University Press,
Cambridge
Morgan, G (2006) Images of Organization, 2nd edn, Sage, London
Rogers, E M (2003) Diffusion of Innovations, 5th edn, Free Press, New York
Tannenbaum, R and Schmidt, W H (1973) How to choose a leadership pattern, Harvard
Business Review, May–June, pp 162–80
Whitmore, J (2009) Coaching for Performance: Growing human potential and purpose – the
principles and practice of coaching and leadership, 4th edn, Nicholas Brealey, London
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329
Project 08
management
Change initiatives,
projects and programmes
Ir a B l a k e
Introduction
Project management is chiefly associated with planning and managing change in an
organization, yet it can be applied to many situations, such as domestic endeavours.
Projects can be various shapes and sizes, from the small and straightforward to the
extremely large and highly complex. Chapter 2, Section B1.3 describes the way that
projects may fit into the more complex governance structures of programmes and
portfolios. The methods, tools and techniques in this chapter are in most cases
applicable to programmes and portfolios as well as to projects.
Project management techniques and project planning tools are useful for any
tasks in which different outcomes are possible – where risks of problems and failures
exist – and so require planning and assessing options, and organizing activities and
resources to deliver a successful result.
A task does not necessarily have to be called a ‘project’ in order for project
management methods to be very useful in its planning and implementation. Any task
that requires some preparation to achieve a successful outcome can benefit from the
application of project management skills and techniques. Even if you never intend to
manage a project in your life, it is essential for every manager, and change manager,
to at least know and understand what project management is and its purpose.
C h a p t e r co n t e n t s
Section A: Change within project governance structures
Section B: Establishing a project
Section C: Delivering a project
Section D: Project completion and transition
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Introduction
Project management is both an established profession in its own right and also a
competence that forms a part of many managers’ general toolkit. Project management
is a specific skill set and the demand for this capability is a reflection of the value
placed on project management by organizations in all industry sectors.
All projects result in a change that affects someone. Project managers are focused
on defining and delivering the ‘what’ of change. Managing the impact of change on
people requires a specific skill set and a focus on the ‘who’ and ‘application’ of
change. This is the remit of change management.
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Organizational Governance
Membership: Board of
Directors
Business Unit Programme Meeting Frequency: Once per quarter Change Leaders meeting
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Depending on the scale and complexity of the project, there will be a number of
different governance bodies, committees and/or boards. The relationship between
these groups will be shown on the project organization chart. Each group will have
a defined remit described in its Terms of Reference (ToR) document and also a list of
its members and their roles/job title. The ToR document outlines the level of authority
and decision making that is delegated to a group, and also the escalation route for
issues requiring a greater level of authority.
Levels of authority
Situational leadership theory, developed by Paul Hersey and Ken Blanchard (2012),
suggests that delegation of authority depends on the kind of task and the maturity of
the people to whom the tasks are delegated.
The authority to make decisions in the context of a project (remit) is defined in
the project governance structure. In complex and large-scale projects, there is often
a need to distribute controls and for the sponsor and project board to delegate their
authority. The hierarchy of authority helps individuals to understand from whom
they are to receive guidance and direction, and helps to establish efficient communi-
cation paths between individuals, teams and leaders in an organization.
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project – and coming with its own unique language. The most popular are PRINCE2®,
PMI (PMBOK®) and SCRUM™. Many companies have their own methodology that
is often some form or hybrid of these. Most systems are proprietary and are sold as
a package of services that will include training sessions and consultancy alongside
documentation that will include templates and guidance notes. When you look at all
the different systems it becomes apparent that they are variations on one of two
major types: ‘waterfall’ and ‘agile’.
Waterfall methodology
The waterfall method is a sequential process in which progress is seen as flowing
steadily downwards (like a waterfall) through the phases of initiation, requirements,
specification, analysis, design, development, testing, implementation and maintenance.
The waterfall method originates in the manufacturing and construction industries
that are highly structured environments in which after-the-fact changes are prohibi-
tively costly, if not impossible. The central idea behind the waterfall model is that
time spent early on making sure requirements and design are correct saves much
time and effort later. Some waterfall proponents prefer the waterfall model for its
simple approach and argue that it is more disciplined. The waterfall progresses
linearly through discrete, easily recognizable and explainable phases and thus is easy
to understand; it also provides easily identifiable milestones in the development
process.
The concepts behind the waterfall process are:
●● high-level requirements should be concrete before design begins (otherwise
work put into a design based on incorrect requirements is wasted);
●● design should be complete before people begin to implement the design
(otherwise they implement the wrong design and their work is wasted);
●● make sure each phase is 100 per cent complete and absolutely correct before
proceeding to the next phase.
One argument in favour of the waterfall model is that it places emphasis on docu-
mentation (such as requirements documents and design documents). Knowledge can
be lost if team members leave before the project is completed, and it may be difficult
for a project to recover from the loss. If a fully working design document exists, new
team members or even entirely new teams are able to familiarize themselves by reading
the documents.
Agile methodology
Agile approaches came about in response to the challenges faced by using more
sequential project management methods. For example, for more complex projects
with greater uncertainty and within fast-paced change environments, it becomes
increasingly difficult to define detailed requirements early on, with any degree of
confidence. This is commonly evident in complex technology projects where end
users tend to have difficulty defining the long-term requirements without being
able to view progressive prototypes. Agile approaches use the idea of iterative and
incremental development to allow detailed requirements to be defined later as the
solution evolves.
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Agile projects manage the design and build of solutions in an incremental, flexible
and interactive manner. It requires individuals with specific skills and competencies
from the relevant business, with supplier and customer input and there are also links
to lean techniques and Six Sigma.
Agile methods were developed in recognition that, during a project, the customers
can change their minds about what they want and need (often called requirements
churn), and that unpredicted challenges cannot be easily addressed by traditional
project methods. Some specific techniques have been developed that support this
approach:
Timeboxing
Timeboxing is a technique that sets a fixed period of time to achieve one or more
objectives. The timebox is managed by adding or removing elements from the
scope of the objective(s). This focuses work on the most important elements and
depends on the effective prioritization of these elements. Agile projects are divided
into timeboxes, each having its own deliverables and timeline. It is the project
stakeholders who determine the priorities.
Sprints
One of the most commonly used agile methods is SCRUM™. An iteration or sprint
is the basic unit of progress within this method and each sprint is started by a
planning meeting, where the tasks for the sprint are identified and an estimated
commitment for the sprint goal is made. A sprint ends in a review-and-retrospective
meeting, where the progress is assessed and lessons for the next sprint are identified.
Sprints are restricted to a specific duration. The duration is fixed in advance for each
sprint and is normally between one week and one month, although two weeks is
typical. The SCRUM™ method emphasizes having a working product at the end of
the sprint that is really ‘done’. In the case of software, this means a system that is
integrated, fully tested, end-user documented and deployable.
An advantage of developing solutions iteratively and incrementally is that they
can constantly gather feedback to help refine those requirements. The intended result
is a project that best meets current customer needs and is delivered with minimal
costs, waste and time, enabling companies to achieve business benefit gains earlier
than via traditional/waterfall approaches.
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toast bread
fry eggs
start serve
warm plates
time – minutes
Gantt charts
Gantt charts (Figure 8.3) are excellent models for scheduling, budgeting, reporting,
presenting and communicating plans and progress easily and quickly. They are
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performance
activity week 1 week 2 week 3 week 4 week 5 week 6 week 7 night
confirm date
secure venue
print tickets
advertise
sell tickets
test sound
Project software
Project management also extends to the use of some specific tools, eg Microsoft
Project, or the use of familiar tools such as Microsoft Excel, but potentially using
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Section A: Change within Project Governance Structures 337
Tool selection
The tools mentioned above each have their strengths and particular purposes, and
traditional project management systems with their checklists and templates, processes
and procedures can reek of rigidity and bureaucracy. The challenge for smaller
projects is to make use of project management techniques at an appropriate level.
It makes little sense to produce copious documentation on a tiny project; the effort
has to be justifiable by the result.
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together in order to deliver a successful result. This team is often referred to as the
steering committee. In most cases, the steering committee appoints a ‘project board’
or equivalent to provide operational support to the project sponsor and project
manager.
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a change, will help with the management of that time lag between implementation
and realization.
The change management workstream has the responsibility to help those leading
the project to identify what is likely to change in terms of people, processes, organ
ization capability and culture – as a direct impact of the project. It is critical that there
is clarity of scope relating to what the project will ‘own’ and change that is attributable
to other projects or initiatives. Managing the challenge of ‘scope-creep’ (the absorption
of numerous incremental changes to the original project or plan scope that collec-
tively poses a significant risk to the achievability of benefits or outcomes) is essential
for the change workstream manager as it will determine the quality of change inter-
ventions and the effort/resources available to deliver the work.
Diluting the project change management plan with additional, non-project
activities will result in an unsuccessful project outcome and may generate a poor
perception of the value, effectiveness and professionalism of change management in
the organization.
Summary
It is essential for every manager, and change manager, to at least know and under-
stand what project management is and its purpose. Throughout the life of a change
initiative, change managers and project managers will need to work together to
ensure that the two disciplines are in step, and that a consistent language and
terminology is used so that stakeholders understand what the initiative will achieve
and how.
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1 Why does this project exist and what are the desired outcomes or
benefits expected by the business stakeholders?
4 Do I understand the language and key project terms and tools being
used in the project?
Introduction
A typical project starts with someone having an idea, which then gains acceptance
informally through discussion with colleagues and then through a more formal process
involving senior management. A funding model and process must then be agreed
before the project can start, staff appointed and work begins. Fundamental to estab-
lishing a project is the definition and governance of the benefits case (Chapter 3). Once
the benefits case has been approved, the project budget is released to the project
sponsor. The project sponsor appoints a project manager and the project then enters
the first stage of the project: set-up phase.
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Section B: Establishing a Project 343
project off course. These are categorized as risks, issues and changes. Quality should
also be the subject of clear control procedures.
Change control refers to suggested or actual changes or amendments to the project
itself – not any necessary changes to business processes or ways of working required
as part of the project – sometimes termed managing scope.
The documents or ‘logs’ to help track and monitor risk, issues, scope and quality
are established during the set-up phase of the project. The ongoing process of project
control is part of the iterative cycle of project management and is a shared responsi-
bility of everyone in the project.
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contributions are essential to successful project delivery. This is the first activity for
the project manager in the set-up phase.
The change manager has an important role to play. They need to encourage and
support the project manager to invest time in developing the team and working with
them to build their change capability. Change managers can also advise project managers
how to establish a relationship with their team members before the team begins to
meet as a group. Otherwise, they may not feel connected to the rest of the project
team or, worse, may feel put upon and lack any commitment to the project.
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the development of behaviours, and alignment of values with the target operating model.
Change management also has the accountability for building commitment, cooperation
and change capability within the project board, project team and change network.
On a tactical level, change managers also have the following accountabilities:
●● compliance to organizations’ change management methodology (if one exists)
and ensuring standards and common tools across the programme;
●● understanding and communicating changes, and consequences from changes,
in the external business environment;
●● project board representation.
Change management specialists play a key role in ensuring that change initiatives
deliver value to the project and to the business by increasing employee adoption and
usage. Their primary responsibility is to create and implement change management
action plans that maximize employee acceptance and minimize resistance. Ultimately
this will accelerate benefits realization, increase value creation, ROI and the achieve-
ment of results and outcomes.
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Summary
Many key decisions are made during the period when a project or programme is
being established. Gathering business requirements is a critical activity and is typically
the first time the project will engage with many of its stakeholders to determine the
business needs that the project should satisfy. Requirements refine the scope and
shape understanding of many aspects of the project, including the business case,
plans, budgets, standards and operating processes for the project.
Introduction
The delivery or ‘run’ phase of a project is often broken down into several phases. The
number of phases depends on the scope and complexity of the project. Different
organizations and methodologies may use a naming convention, but often the
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Section C: Delivering a Project 351
number of phases and what they are called is decided by the project manager.
Commonly, project delivery phases include the following as a minimum: definition,
delivery and implementation.
1. Definition phase
Following on from the project set-up phase (Section B1), project definition is the first
phase in project delivery and consists of three modules: determining purposes (stake-
holder needs and values), translating those purposes into criteria for both product
and process design, and generating design concepts against which requirements and
criteria can be tested and developed.
As the definition phase progresses, focus shifts from analysis to defining the solution
to get the organization to its post-change state. There is no magic formula or cookbook
that will automatically lead to the best solution, so it is important to generate and
explore possible opportunities and solution options before going into designing the
solution.
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Contingency
Thorough project planning and involving the right people in the development of the
change management plan will ensure that it is achievable and will reduce the risk of
any serious oversight. However robust and future-proofed the plan is, it is pragmatic
to leave some room for manoeuvre (aka contingency) so that the project can be flexible
enough to deal with potential areas of ambiguity and additional or reprioritized
work, if they arise. Documentation can be quite useful as an historical record and a
way to share information to a wide audience, and judgement will need to be applied
to what is appropriate and useful.
For a change manager, the objectives of the definition phase are to confirm or create
a shared view about the future: change vision, fit with strategic objectives, scope of
the change, and how much resistance the project is likely to encounter.
Programme
plan
Project
plans
Stage/Phase
plans
eg
Change
IT
Stream
IMS
plans
Quality
Infrastructure
Function 1
Function 2
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Section C: Delivering a Project 353
Stream plans identify the activities and tasks at a detailed level, including start and
end dates and resource requirements. This level of detail is particularly valuable in
reducing duplication and confusion if responsibilities for different activities are
shared between different teams or individual roles. Progress is monitored against
and reported on for each workstream and phase until the project reaches completion.
2. Implementation phase
Implementation is where the bulk of work defined by the project happens and must
both deliver the needs of the project and incorporate local needs and priorities at the
business unit level. The implementation phase is concerned with the identification
and management of the integrated activities, deliverables and time frame in the de-
livery plan, and provides an operational framework to prioritize and schedule them.
A whole bunch of trade-offs can be made as dependencies, priorities and budgets are
decided.
Key activity focus in this phase include:
●● milestones;
●● dependencies;
●● start and end dates for key activities;
●● schedule (order, timing and ‘float’);
●● resource allocation;
●● budget;
●● delivery reviews;
●● risk assessment.
2.2 Dependencies
It is common to find that some tasks will be dependent on each other – for example,
you can’t paint a wall until the bricklayers have finished building it. Reliance on one
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piece of work finishing before the next can begin (a dependency) becomes visible as
the plan is developed, and so a reasonably accurate timescale for the whole project
can be set. The detailed stream plans should make these dependencies clear – if the
wall is not built on time, or a venue for the event cannot be found, other tasks in the
workstream or project may be delayed.
Critical path
Scheduling the earliest and latest date that essential activities can start and finish
establishes a project’s ‘critical path’. This is an important indicator used to track
project progress against the delivery timeline. Any delay of an activity on the critical
path directly impacts the planned project completion date. Non-critical path activities
have ‘float’ and can be delayed without making the overall project longer.
Float, in a project context, means the flexibility within the schedule between the
earliest date a task could be completed and the latest completion date, eg a two-day
task that could start on Monday morning and must be complete by the end of Friday
has a float of three days.
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to capture these assumptions so that they can be reviewed and updated as the project
definition gains clarity. Proactively defining a draft change delivery plan will, at the
very least, demonstrate an organized approach that can be shared and discussed with
others.
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Getting started
Some change management models, such as McKinsey’s 7-S, or Johnson’s culture web
(Johnson et al, 2013), can also be a useful starting point for the content of a change
management plan. Each of the components can be used as an activity line in the
change management plan, to be elaborated into sub-activities and tasks. Once individual
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Section C: Delivering a Project 357
Where are the Training needs What do we need Resource and skills
gaps? analysis to make change model
happen?
tasks are identified, an assessment on the amount of effort (usually in ‘man-days’) can
be made and this will form an essential input into the resource plan. Once you have
created a change delivery plan you can reuse this as a template plan for subsequent
projects that can be tailored to purpose.
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Summary
Change planning is covered in Chapter 7, Section B3, but there are some specific
concepts unique to projects. During the process of developing change management
plans, it is important to consider concepts such as effort versus duration, critical
path, dependencies, milestones and best practice. Change management plans must
be integrated with the other workstream plans and reviewed regularly to monitor
progress against deliverables and the delivery timeline, and to consult on any amend-
ment or modification to the plan(s).
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2 Does the change management team have the required skills and
knowledge of the project tools and planning software to develop and
maintain the delivery plan?
3 Is there a detailed communication plan to share key project information
and updates? Who needs to be involved and who will do what?
4 What are the risks, issues and assumptions from a change management
perspective? Are they documented and being actively managed?
Introduction
The main concern for the change stream in this phase is on the deployment of tools
and interventions, and capability development. Benefits realization (Chapter 3) is
also a feature of this phase, as is change sustainability planning (Chapter 11).
1. Project completion
The completion of a project is generally characterized by the deployment of the
changes to products, systems and services delivered by the project. Securing adoption
of and embedding the change successfully has implications for work done during the
project. It is important, therefore, that at the start of the project, planning takes place
for what will happen to the outputs at the end.
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Employees can learn the new while Increased risk of confusing employees
performing BAU work. when to use or apply the changes.
Continued operation of old BAU provides Increased costs to run duplicate systems,
built-in backup if the new fails. and inefficient if employees have to repeat
tasks (eg duplicate data entry).
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Transitioning difficulties and ‘pains’ are More pronounced ‘performance dip’ and
condensed. highest impact on productivity.
Employees trained on the new (ie no need Employees have less time to learn new
for interim or changeover tasks). skills, processes etc.
Implementation happens on a single date A failure in one part of the system could
and everyone is clear when. affect others.
The options are assessed by comparing them to the business requirements and selecting
the one that is most appropriate for the project. Once a rollout option has been selected
and agreed by project governance and stakeholders, the approach will inform key
change management activities, eg communications and training. Due to the complexity
and number of activities required for deployment and rollout, these activities are
sometimes accorded their own phase and managed through a separate rollout plan.
Deployment checklist
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Summary
There are several options for rolling out the solution to the business, each with
different advantages and disadvantages. The business must decide which option best
suits its needs, having considered the relative risks, costs and benefits. Transition is
where ownership for the changes moves from the project to BAU and, as a result, the
project closes down. Effective change managers must pay particular attention to
stakeholder reactions during transition, especially where the deliverables are failing
to meet expectations or where the training is proving to be ineffective.
1 Which rollout option offers the best solution for the project,
and is this achievable for the business? What possible
consequences can be anticipated?
4 Have all the change management deliverables been met? Is it understood what
was achieved and lessons identified to be passed on? Have contributors to the
success of the project been recognized?
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Further reading
Online resources:
Chapman, A [accessed March 2014] Project Management [Online]
http://www.businessballs.com/project.htm#project-management-tools
Neal, H [accessed April 2014] A Guide to ERP Implementation Methodology
[Online] http://blog.softwareadvice.com/articles/manufacturing/erp-
implementation-strategies-1031101
Suchan, J [accessed March 2014] Build Effective Project Teams [Online]
http://office.microsoft.com/en-us/project-help/build-effective-project-teams
User:Ap [accessed March 2014] Project Management [Online] http://en.wikipedia.
org/wiki/Project_management
West, R [accessed March 2014] Running a JISC Project [Online]
http://www.jisc.ac.uk/fundingopportunities/projectmanagement
References
Blake, I and Bush, C (2008) Project Managing Change, Pearson Education, Harlow
Hersey, P and Blanchard, K (2012) Management of Organizational Behaviour, 10th edn,
Pearson Education, Harlow
Johnson, G et al (2013) Exploring Corporate Strategy: Text and cases, 10th edn, Pearson
Education, Harlow
Project Management Institute (2013) A Guide to the Project Management Body of
Knowledge (PMBOK® Guide), 5th edn, The Project Management Institute, Newtown
Square, PA
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Education and 09
learning support
Richard Smith
Introduction
Change and learning are very closely linked. Edgar Schein (1995) went so far as to
say this:
My own thinking has evolved from theorizing about ‘planned change’ to thinking about
such processes more as ‘managed learning’.
Effective change managers are not expected to be specialists in training, learning and
development. In many cases they will be able to work alongside such specialist
colleagues, drawing on their expertise, experience and resources. However, the close
connection between change and learning means that change managers do benefit
greatly from a good working knowledge of learning theory, skills development,
training planning and coaching. This enables them personally to address such issues
when necessary, and to make the most effective use of specialist colleagues when they
are available.
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C h a p t e r co n t e n t s
Section A: Learning theory and skills development
Section B: Identifying and meeting learning needs
Section C: Behavioural change and coaching
Introduction
Learning is described as ‘the process of acquiring knowledge through experience which
leads to an enduring change in behaviour’ (Huczynski and Buchanan, 2007). However
others have offered wider ideas about learning. It is ‘a qualitative change in a person’s
way of seeing, experiencing, understanding, conceptualising something in the real world’
(Marton and Ramsden, 1988). Learning includes both the procedural elements required
to complete a task and gaining the underpinning or background understanding and
attitudes needed to perform the task effectively in its organizational context.
(CMI, The Effective Change Manager (CMBoK), 2013)
Although the title of this section refers specifically to ‘skills development’, this section
will address the wider concept of learning referred to in the CMBoK definition
above. The section focuses on principles that are applied in later sections. It traces
the roots of learning theory, and then considers some key aspects of giving effective
instruction. It then discusses the relationship between learning activity and the
preferences of individual learners, considers the impact of learning on short-term
performance and concludes with discussion of learning and the process of changing
attitudes.
The quotation that began this introduction contains a definition of learning that
links ‘acquiring knowledge’ and ‘experience’ with ‘behaviour’. This is a very good
starting point for a discussion of learning theory.
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Input Output
Stimulus Response
By using rewards, experimenters in the first half of the 20th century (including IP
Pavlov, EL Thorndike and BF Skinner) showed how behaviour could be trained.
Selecting some behaviours for ‘reinforcement’ (usually the reward of food) the
desired behaviours could be made to happen more frequently. Where these selected
behaviours were trained to respond to a specific stimulus (Pavlov’s dogs are a well-
known example) the resulting behaviour is known as ‘conditioned response’.
The key is the close association of the behaviour and the reward. The training of
domestic dogs is still often based on this approach.
More sophisticated experiments showed that animals could learn to operate
levers or open doors where they believed that there would be food behind them. Rats
could learn their way around mazes to a destination where food would be found.
However, in all these cases the trained behaviour reduced when the reward was
no longer provided. The conditioned response was said to have suffered ‘extinction’.
Yet this was not evidence that learning had been ‘lost’: sometimes it recovered
spontaneously. Moreover, the time required to re-establish the conditioned response
in those animals that had lost it was much shorter than was required for initial
conditioning.
A related example of invisible learning was seen in another series of experiments.
Rats that had been given free but unrewarded access to a maze, and had explored the
maze over a period of time, learnt much quicker than others to find their way to food
when that was introduced. Both this situation and that of ‘extinction’, above,
demonstrate that learning is not always visible in behaviour. The rats had clearly
developed something like a ‘mental map’ of the maze through their exploration of it,
though this learning became visible only when it was useful. This is known as ‘latent
learning’.
Experiments to reinforce natural but generally unrewarded behaviour (like
operating a lever) were extended to see what would happen when reinforcement was
not given every time that the lever was pressed, but was inconsistent – say every third
press. It was found that such intermittent reinforcement could be very effective,
especially when the frequency of reward being given for the activity varied (eg not
every third lever press, but on average every third lever press). This kind of reinforce-
ment (known as ‘variable ratio reinforcement’) led to slower learning but proved
very enduring. Many human habits are reinforced in this way, and the implications
for the popularity of gambling are not difficult to see.
Animal experiments on learning were also conducted using ‘punishment’ – a neg-
ative ‘reward’. Some of these would be abhorrent to a sensitive 21st-century mindset.
The outcomes were actually quite ambiguous in their results. Some experiments
seemed to demonstrate that selected behaviour was effectively inhibited by punishment,
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2.3 Memory
Clearly, memory is closely linked to learning. It is used for learning facts and concepts,
but also in storing experiences that have learning value. The latter – the experiences
– are generally well remembered especially if they have strong emotional ‘anchors’,
either positive or negative. People remember vividly their first kiss, and the occasion
when they got something badly wrong and everybody laughed. Learning processes that
involve activity, especially activity with other people where there is the strong asso-
ciation of energy and warmth, can be very powerful. Many senior team-development
events make use of this.
Where the learning is to do with facts and information, four strategies can be very
useful:
●● Repetition: those of us whose schooling included learning and reciting
multiplication tables will recognize the value of this approach.
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CONCRETE
EXPERIENCE
(Something happens)
PRACTICAL REFLECTIVE
EXPERIMENTATION OBSERVATION
(You test your theory) (You think about it)
ABSTRACT
CONCEPTUALIZATION
(You identify a pattern)
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Peter Honey and Alan Mumford (1992) took this thinking a step further with their
observation that different individuals possess different ‘learning styles’. These represent
distinct preferences for one or more steps of the learning cycle, or tendencies to ‘skip’
one or more steps, which will diminish learning opportunities. As set out in Table 9.1,
they label the learning styles like this:
●● Activists: typically learn most happily from experience, preferably new
experiences involving other people. True activists are constantly busy,
enjoying the challenge of anything new and always ready to ‘have a go’.
The risk for activists is that their tendency to move on rapidly from one
experience to another may mean that they fail to learn effectively.
●● Reflectors: like to learn from watching others and from thinking back over
their own experiences. Thorough and careful in character, reflectors absorb
and consider all possible angles before drawing conclusions. Reflectors lose
opportunities to learn because they tend to take too few risks to gain many
practical experiences, and may not engage sufficiently with others.
●● Theorists: prefer learning that proceeds logically from ‘first principles’ and
appreciate clear theoretical models. They are happy to absorb their ideas
through reading. They appreciate lectures that offer credible explanation
of sound theory, or which systematize and integrate data from experience.
They may miss learning opportunities due to their aversion to intuitions
and creativity, and their intolerance of ambiguity.
●● Pragmatists: like to test and apply ideas and theories, especially where they
have practical relevance to a current problem. Their realistic and practical
approach to problems makes pragmatists open to new techniques and to
anyone who can help or coach them as they try them out. Pragmatists lose
learning opportunities by rejecting or ignoring ideas for which they can see
no obvious and immediate application.
Table 9.2 sets out some examples of activities that might particularly suit the preferences
of different learners. Of course, none of the examples in Table 9.2 are uniquely
preferred by a single learning style. Pragmatists can learn well from observing others,
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Pragmatists Theorists
Note: An ‘action learning set’ is a small group of colleagues, usually from different parts of an organization,
who commit to meeting regularly to learn together. The learning comes from actual work experiences of
members of the ‘set’. Participants each present and discuss their real work challenges, and develop options
using one another as a resource. Members of a ‘set’ hold one another accountable for taking action on their
individual challenges, and for learning from the process. The set provides its members with both support and
challenge (Revans, 2011).
theorists can learn from coaching and so on. Also, the fact that a learning method is
less preferred does not necessarily mean it will be less effective. However, the examples
illustrate some of the range of options that may support a learning journey, and the
learning styles most likely to appreciate each learning method.
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Visual This preference favours images and symbols over other ways to
receive information. Charts, diagrams and creative images are
used to aid learning.
Aural (or auditory) People with an aural preference like listening to information,
favouring lectures, MP3 files and the radio.
Kinaesthetic Fleming and Mills use this term in their own way, saying that
this is a ‘perceptual preference related to the use of experience
and practice (simulated or real)... it is not a single mode because
experience and practice may be expressed or “taken in” using
all perceptual modes – sight, touch, taste, smell and hearing.’
discussed in this section. Rather it is to encourage all involved in helping people learn
to be observant about what is working for particular individuals. The ‘learning
styles’, VARK and MBTI®, may help to guide these observations. The important thing
is then to adapt the learning approach to best meet the needs of different individuals.
Some academics question the evidence that meeting the learning preferences of
groups of learners actually improves the effectiveness of learning (Coffield et al,
2004; Pashler et al, 2008). Nevertheless, designing learning processes to address
differing preferences as far as possible, perhaps even allowing flexibility for different
people to access the learning in different ways, often improves learning design.
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Conscious Unconscious
incompetence competence
• the learner is • the learner,
unaware of • the learner now through practice, • the
he learner can
his/her lack of a realizes the can now do the do this skill
particular skill importance of a skill but has to effortlessly
skill but fails in think about each without much
trying to do it step concious thought
= mastery
Unconscious Conscious
incompetence competence
Source: The Essential Handbook of GP Training and Education, Ramesh Mehay (ed) (2012)
Time
competence) can be a period of anxiety for the learner – the fear of failure is most
acute here, and the ‘ghosts’ of past learning experiences come back to haunt!
This process has implications for job performance, too (Figure 9.5). The skilled
performance or mastery associated with unconscious competence is fluent and quick.
Errors are infrequent. As soon as the learner has to pay conscious attention to the
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Peak performance
Optimum pressure
Performance
Pressure
skill – and especially before basic competence is achieved – productivity declines and
error rates climb. There is a significant fall in job performance. When planning any
change that will involve people in learning new skills where they have previously
been highly competent, a learning dip such as this must be expected and planned for.
The extent of the dip and the speed with which recovery takes place will be a function
of the timeliness and effectiveness of training provision.
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New New
My position
Idea Idea
‘A’ ‘B’
My zone of
tolerance
A B
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This suggests that one way to help people to respond to new attitudinal require-
ments in change is to widen their ‘zones of tolerance’. Exposing people to a wide
range of different views, values and feelings but without the pressure at that time to
make any personal response can help people to become more open – with wider
‘zones of tolerance’. Experiences of learning together with people from other very
different workplace settings can help achieve this. As a result, when new ideas associated
with change are presented they are more likely to be accepted and assimilated. On the
other hand, care needs to be taken when presenting values very different from those
in a prevailing culture. Here, attitude change may have to be by small increments.
C a s e s t u dy
A major UK engineering plant making car bodies was buying new body presses from
a Japanese supplier. The employee relations history had been difficult and resistance was
expected to the ‘new technology’. The ‘shop floor’ workers who would operate the new
machines were asked to visit a Japanese car factory to see the presses in action. Seeing
the different work culture and application of the presses in Japanese factories led to the
operators returning with the views that: ‘they are great machines and we can run them
better than our Japanese colleagues do’. When the presses were installed they did in fact
deliver higher output than the equivalent factory in Japan.
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Me
I like
I dislike
this
this idea
person
Another This
person likes An idea
person
this idea
This model suggests that when there is a need to influence people it is important to
have credible, respected people who clearly espouse the target attitudes. Role modelling
by senior people is important, but the extent to which that genuinely influences
attitudes depends on the respect in which those senior people are held. I am much
more likely to be influenced by a ‘nearby’ leader whom I like and respect. It is important
in times of change to find ‘opinion leaders’ who are credible, highly respected and
(ideally) well-liked by those whose attitudes you need to influence. It is also important
to identify those who may have unhelpful attitudes and decide how their influence
can be mitigated.
C a s e s t u dy
A law firm planned to introduce a new performance management process to improve staff
development. The partners feared that if they championed the process there would be
suspicion from staff that they were introducing it only for professional compliance reasons.
A specialist consultant was invited to meet and discuss performance management issues
with all the affected staff, allowing opportunity for concerns and prejudices to be explored
with someone who was seen as both expert and more neutral. Staff members with previous
negative experiences had the opportunity to discuss their concerns with the accepted expert
amongst a group of colleagues. The consultant’s discussions with staff influenced the design
of the process and it was introduced successfully, with substantial support from staff.
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This ‘triangle’ helps to explain the importance of group approval and disapproval
when new norms are being formed during changes of culture. Cameron and Green
(2012) make the important point that group reinforcement through social approval
and disapproval is essential to establish and reinforce the norms of acceptable
behaviour. If I value and want to be part of a group I will want to follow its norms.
Discussion and clear agreement within the group undergoing change helps to establish
those norms.
Summary
This section has outlined some key threads in the fabric of learning theory and its
application, considering motivation to learn, methods of instructing and memory
issues. It has identified the need to think about both the learning required by
a change, and the people who need to learn. The tendency for learning to create
a temporary ‘performance dip’ has been highlighted. Finally, the section has intro-
duced the importance of planning for attitudes that may need to change, as well as
skills and knowledge.
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Further reading
Introduction
Managing successful change initiatives includes ensuring that the knowledge, skills
and attitudes of all involved are developed appropriately. This requires that learning
needs are analysed and gaps identified, learning and development plans are developed
and implemented and that the effectiveness of the learning is evaluated. Ideally these
activities leave a legacy of training designs and materials, which continue to offer
value as the change is embedded in the organization.
This section focuses on some practical applications of the learning theory
explored in Section A. It offers an introduction to some approaches that learning and
development (L&D) professionals might use to identify learning needs, to plan and
schedule training, and to design and evaluate learning. It offers a limited selection of
basic tools that can be useful in these processes. The aim is to help change managers
to make more effective use of the skills of their L&D colleagues, and to provide
a basic toolkit for situations where professional L&D support is not available.
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through the change process successfully and to be effective once the change is
complete).
●● Identify the gaps (new KSAs that each stakeholder and group must develop).
●● Plan to meet them.
Notice the choice above of the word ‘stakeholder’ rather than ‘jobholder’. This
emphasizes the importance of considering the learning needs of stakeholders both
within and outside the organization. This frequently includes customers, suppliers
and other key groups impacted by a change. It may be appropriate for the organization
to provide learning opportunities for such stakeholders in order to ensure the success
of the change initiative.
Notice also the use of ‘KSAs’ in the description. Some of the learning that is
needed will be simple procedural learning, but some will relate more to the ‘soft
skills’. Soft skills typically relate to the behavioural and personal effectiveness of
people, to group processes and to relationships. Such skills can be developed and
formal training activities can help with this. However, developing soft skills takes
time, reflection and practice.
Action Result
Feedback
(First feedback loop)
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Underlying
Action Result
assumptions
Feedback
(First feedback loop)
Double-loop learning (Figure 9.10) is more complex and recognizes that as human
beings our action decisions are based on paradigms – sets of underlying assumptions
– about how things work. This extends well beyond technical systems to social
systems, such as business organizations, and to personal and interpersonal transac-
tions. ‘Reflective practitioners’ (and increasingly some artificial intelligence systems)
respond not only to the immediate feedback but also review their own assumptions
about how the world operates.
Reg Revans (1979) wrote:
In conditions of change there is bound to be uncertainty... programmed knowledge
(of necessity drawn from the describable certainties of more than one past) may inhibit
the exercise of leadership and the freedom to pose fresh questions (Q).
In the paper cited, Revans was particularly addressing the question of leadership
development, but the comment extends to any attitudinal change and ‘soft skills’
learning.
When planning any learning in times of change, this distinction between ‘P’ and
‘Q’ is important. If programmed learning is all that is required, simple single-loop
learning feedback will be sufficient to develop or test knowledge and skill. However,
if learners will need to respond flexibly to a variety of contexts, creating unexpected
or unplanned situations, the learning process must be designed to include ‘double-
loop’ feedback. Such feedback develops the ‘questioning insight’ needed to recognize
and, where necessary, to revise the underlying assumptions on which future actions
will be based.
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Department
Corporate Accounts
Job Title
Accounts payable team member
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2. Job analysis
2.1 The jobs cover approach
Where simple issues of skills cover arise as a result of change (perhaps due to a
reduction in headcount) a simple ‘skills cover chart’ such as that shown in Figure 9.12
may be useful. In the example shown, a blank cell in the matrix indicates no require-
ment for the individual to apply a certain skill. The subsequent coding used here is
additive, which works well with pen and paper. However, the method of coding can
be adapted to circumstances and the use of colour makes spreadsheet versions of
such charts easy to read – perhaps using a simple ‘RAG’ (red–amber–green) code.
Another variant would use a scale (perhaps 1 to 5) to indicate levels of proven per-
formance. Using this approach it is also possible to conduct a simple risk analysis,
identifying the adequacy of skills cover for holidays or sickness.
Alex
Bernie
Chris
Denny
Eric
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Feedback processes
Light = ‘nice to have’
Escalation of calls
Customer service
Medium = ‘important’
Discount policies
Active listening
Dark = ‘essential’
Business skills
Current competence of
groups assessed in cells as
% competent
Etc.
Account Managers (13) 50 60 50 30 20 70
Etc.
In this illustration, moving columns 1, 3 and 5 together
would suggest a ‘customer skills’ module offering skills
development for call handlers and account managers.
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suggests: ‘Begin with the end in mind.’ Writing good learning objectives means
completing the following sentence (or variants of it): At the end of the learning
activity, learners will be able to...
This sounds simple, but often requires considerable careful thought. Here are
three examples taken from the learning activity ‘learning to drive a car’:
1 ‘At the end of training the driver will be able to identify correctly the meaning
of, and correct response to, all road signs within the territory of the licence
that affect motor vehicles.’
This is a knowledge objective and it is clear how success could be
established. Note that it imposes a 100 per cent success rate, which is
appropriate in this case as a learning objective. The formal driving test might
still allow a margin of error on some less common or less important signs.
The objective is appropriate, too, in that the knowledge test it implies
reflects the way the driver will need to interpret road signs after training.
An alternative would have been ‘will be able to describe correctly all road
signs...’ – but this requires verbal skills not relevant to driving and is not
related to how the target knowledge will be applied in practice.
2 ‘At the end of training the driver will be able to perform basic safety checks
on the condition of the vehicle.’
This objective includes some knowledge and some skill components. It also
fails to specify what are the ‘basic safety checks’. This is not necessarily a
problem in a learning objective, provided that there is a separate document
that lists what the checks are, how they are performed and the standards to
be achieved. Covering all these details with a long series of individual ‘micro’
learning objectives is tedious and unnecessary.
Consider the following extreme options and you will see how
inappropriate levels of detail undermine the value of learning objectives:
‘will be able to maintain a car’ or ‘will be able to replace the dust cap
correctly after inflating a tyre’!
3 ‘At the end of training the driver will consistently show appropriate caution
when performing manoeuvres.’
Caution is an attitude. The skilled behaviours to demonstrate that attitude
must be documented and (as the objective says) displayed consistently. The
target attitude is evidenced not just by the skilful display of target behaviours
but by the ingrained, habitual way in which they are applied. The range of
manoeuvres included must also be specified in a separate document. The
minimum is those required for a national driving test, but learning objectives
may include additional items. As a result, the driver will be more effective
after training.
Note that one or more additional learning objectives are required
to specify the skilful (not merely cautious) execution of these manoeuvres.
This objective is designed to focus attention specifically on attitude.
This ‘learning to drive’ example illustrates that:
●● For one learning activity there are usually a number of specified learning
objectives.
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●● Learning objectives should include all knowledge, skills and attitudes relevant
to the work.
●● Outcome measures or indicators should relate well to the way the job will
actually be done.
●● Success standards set in a competence test may be different from those set as
learning objectives.
●● The level of detail must be appropriate (supplemented by other documents
where necessary).
●● Attitudinal objectives can be specified through consistent patterns of
behaviour.
Finally, supervisors of the work activity must be able to sign a list of learning objectives,
confident that anyone who meets those objectives will perform effectively in their role.
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Existing jobholders Really know the job context! No clear guarantee of support
Established level of knowledge for change (but can select for it).
and skill. Instructional skills can vary
(but can train for these).
self-directed if learners are clear what their next destination is and have a clear map
to help them get there.
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Ta b l e 9.5 continued
Some of the learning methods in Table 9.5 can be adapted for delivery using
videoconferencing or webinars to create a ‘virtual classroom’. This approach offers
significant savings in the time and costs of travel, but may risk loss of impact and
effectiveness. A ‘learning journey’ may use a combination of learning methods.
‘Blended learning’ uses online delivery for parts of a learning programme (allowing
learners to select times and places to suit their own needs) combined with a face-to-face
element to cover other aspects.
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‘One must learn by doing the thing; for although you think you know it you have
no certainty, until you try.’
Sophocles, Trachiniae, 415 bc
5. Evaluating learning
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Reactions Reaction
How learners respond to the material The learners’ reactions to the learning
taught and the methods by which it is experience.
taught.
It is always difficult to link specific learning activities with wider organizational out-
comes – there are too many uncontrolled variables. However, for the reasons given
above, evaluation is important; it is worthwhile to gather and analyse the best avail-
able information about learning effectiveness.
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Tip
Tip
Many years’ experience writing test questions tells me not to underestimate the
time and effort required to write even ‘simple’ multiple choice questions that:
●● are not too easy;
●● have one unambiguously correct answer;
●● have wrong answers that are all clearly wrong;
●● can be interpreted only in the way intended by the question writer.
Before using any such question you design ‘for real’ it is essential to try them out on
a group of people similar to those who will take the test. The results of doing this
are always a surprise!
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Tip
Summary
Learning needs may relate to knowledge, skills and attitudes. The current situation
and future needs of all stakeholders can be mapped and gaps identified. The appro-
priate method to address these gaps must be chosen on a case-by-case basis. Learning
methods, the ‘target audience’ and the schedule are elements of a learning plan.
The starting point for learning design is a set of carefully considered learning objectives.
The crucial step of evaluating the learning is also based on the learning objectives,
as well as on wider organizational goals.
Understanding these learning management processes enables change managers
to collaborate effectively with L&D colleagues or, in the absence of such support, to
produce workable training plans themselves.
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1 Select a job you know well and draft a KSA chart for it.
2 For one ‘major activity’ in the KSA chart, write learning objectives
for someone needing to become fully competent in this activity.
3 Design a suitable ‘learning journey’ for this ‘major activity’, using a range
of learning methods.
4 How should the results of this learning activity be evaluated?
Further reading
Introduction
To include a section on behavioural change and coaching in a text on change man-
agement is both appropriate and dangerous! It is appropriate because the experience
around the world of those engaged in change management is that they need to
‘coach’ others from time to time. In particular, they find value in coaching line man-
agement colleagues in behaviours likely to support effective change. However, it is
also dangerous to include this section. Coaching at its best is a sophisticated application
of interpersonal skills, helping people to develop their effectiveness using work situ-
ations as learning opportunities. Change managers are not expected to be professional
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coaches and, some would say, ‘a little learning is a dangerous thing’. Further reading,
well-designed coach training, personal experience and reflection should all be used
to build on the brief introduction offered here.
I start by describing the core behavioural skills of active listening and managing
feedback, then discuss issues in structuring coaching, and end with some further
comments about coaching in change situations. This section is not written for profes-
sional coaches, and no true ‘client’ relationships may be involved. However, when
referring to the people involved in a coaching encounter I use the words ‘coach’ and
‘client’ as a convenient shorthand.
Giving attention
Body language makes a critical contribution to helping another person to know (s)he
is being understood through giving them focused attention. Body language includes
posture and gestures (open, receptive, oriented towards the other, and ideally echoing
the level of energy displayed by the other person) and eye contact (focused on the
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other person, noticing his/her responses, but without simply staring). Occasional
vocal responses (mmm, hmmm etc) may also form part of demonstrating focused
attention.
Reflecting content
This is typically the behaviour of ‘playing back’ to the other person what (s)he has
just said (usually just the last few words) in his/her own words.
Paraphrasing
This is similar to reflecting content, but uses the listener’s own words. Done effectively
this really does communicate a high level of understanding. The other person hears
his/her own meaning accurately captured in the listener’s words. However, care must
be taken to avoid distorting the intention of the other person, or the opportunity to
understand the other person in his or her own terms will be lost.
Reflecting feelings
Understanding is demonstrated very powerfully by reflecting to the other person any
feelings (emotions) – either positive or negative – you perceive in what (s)he is saying
or how it is being said. Examples would be: ‘You sound more and more excited as
you describe that meeting’; or ‘As you describe that meeting you sound weary’. Be careful
not to ‘tell’ people how they are feeling; simply describe what you see and hear.
Questions
In general, questions (whether open or closed) that remain on and extend the agenda
of the other person are experienced as expressing understanding. They often begin
with ‘So...’. They often extend and apply what the speaker has said: ‘So does that
mean that you...’. (Note: questions designed to find facts or explore issues are
perfectly legitimate. However, since they typically reflect elements of the listener’s
own agenda or interests, they are not strictly ‘active listening’.)
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My values Response
Behaviour
and goals from others
Feedback
(First feedback loop)
The way that individuals operate in the world, and particularly the way they relate
to others, are formed as habits and are deeply embedded through life’s experiences.
They do not usually change either quickly or easily, and are not very ‘trainable’ in the
short term. Carefully designed behavioural skills training has some value. It can offer
tools and techniques to help people adjust their behaviour. However, most change of
this kind is a process that relies on a form of ‘double-loop feedback’ (Section B1.2),
as shown in Figure 9.15.
Feedback in this context may be more or less explicit. It may be that people take
the time and care to tell me what impact my behaviour has on them, applying good
principles of behavioural feedback. More frequently, I may simply observe the
impact my behaviour has on others and form my own conclusions. Such conclusions
are based on my own interpretations, fears, self-image, biases and personal history,
and may not represent very accurately the responses I get from others. Explicit feedback
from others helps to avoid misinformation entering the feedback process.
n
ntio
Inte
‘arc of distortion’
Imp
act
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Such feedback helps to minimise what is often referred to as the ‘arc of distortion’
(Figure 9.16) associated with my behaviour. This term is often used in communication
theory (see Chapter 5). In that context, it relates to the factors that cause misunder-
standings in my communication. In the broader context of human behaviour, it
describes the way in which the impact of my behaviour may be different from the
intention that lies behind it. The factors causing this gap are less significant for our
present purpose than the fact that getting feedback from others about my actual
impact (as opposed to my intended impact) gives me the opportunity to calibrate my
behaviours more accurately in future.
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Evaluative (judging)
●● Actionable
Feedback focuses on behaviour – which the receiver can do something about.
Frustration is only increased when people are reminded of some shortcoming
over which they have no control.
●● Welcome
Feedback is most useful when it is requested by those receiving it. It is
especially valuable where receivers have identified the kinds of behaviour on
which they would value observations. At the least, when giving feedback, ask
the receiver for permission: ‘Would you like my feedback on this?’
●● Timely
In general, feedback is most useful at the earliest opportunity after the
behaviour concerned. The situation and feelings are freshest in the receiver’s
mind. However, if the situation giving rise to feedback has been particularly
difficult or distressing, a little distance in time (and emotional distance) is
usually helpful.
●● Balanced
In general, it is easier for people to receive and integrate feedback when the
negative (critical) aspects do not overwhelm the positive, affirming elements.
Aim to offer at least as much affirming comment as critical observation.
Feedback that is entirely positive is fine (if this is honest) but feedback that is
wholly negative is not usually developmental.
●● Checked and confirmed
Some people have a tendency to filter out the positive aspects of feedback and
hear only the critical comments. Others have tendencies in the opposite
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direction! Check that feedback has been heard the way it was intended, by
asking the receiver to repeat or paraphrase it. This makes it possible to check
that both the focus and balance of the feedback have been properly
understood.
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Giving Receiving
developmental feedback developmental feedback
• Helpful intention • Listen non-defensively
• Given privately • Seek clarification
• Descriptive, not evaluative • Ask for examples
• Specific • Thank the feedback giver
• Actionable • Evaluate
• Welcome • Cross check
• Timely • Decide
• Balanced
• Checked and confirmed
3. Understanding coaching
3.1 What we mean by coaching
The model of elite sports coaching is the one most frequently adapted by advocates
of coaching at work. It acknowledges that coaching is not primarily a remedial
activity, but can help people of different levels to perform better. It incorporates
elements of feedback and direction. It includes the element of diagnosis, analysing
current levels of performance, and the reasons for it, as the basis for future
development. Critically, it also includes the setting of clear goals for performance
improvement.
One element is not explicit in this description, but is critical in the work context
(and in fact in the sports context). This is the need to involve the ‘client’ fully in joint
diagnosis of the current situation, joint goal setting, joint analysis of options and in
making real commitment to the next steps.
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Goal Defining a clear and motivating goal to which the client can be committed
Reality Analysing and specifying current levels of performance and the reasons for these
Options Identifying options the client can select to develop from the current reality to the goal
Will Testing and securing the client’s will and determination to take the next steps
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This framework can be used to structure a single coaching meeting and as a template
for a coaching process. It suggests questions that the coach may helpfully use in dis-
cussion with the client, for example:
●● Goal questions:
–– What is your objective? What are you aiming to achieve?
–– What would that look like? Sound like? Feel like?
–– How would others be able to see the change?
–– What advantage would this give you?
●● Reality questions:
–– On a scale of 1 to 10, how far are you towards your goal (target
performance)?
–– What aspects of your goal (target performance) are already a part of your
behaviour (at least some of the time)?
–– How do you achieve this?
–– How does it look/sound/feel when you operate this way?
–– What elements of your goal are most difficult for you? Why?
–– What obstacles prevent you from behaving in line with your goal?
●● Options questions:
–– What opportunities do you have to practise your goals (apply your target
behaviours)?
–– Which elements of your goals will best be developed in these various
situations?
–– Whom can you trust to give you feedback (in the various settings identified
as opportunities)?
–– How can you gather that feedback?
–– Are there other ways you could track your own performance and
behaviour?
–– What sources of objective data are there on your performance?
●● Will questions:
–– What will you do before we meet again?
–– On a scale of 1 to 10 how certain are you that you will take the
development opportunities you have identified?
–– What will be the rewards to you of making the changes you plan?
–– What problems might arise?
–– How can others help you stay on track?
–– How can I help you?
–– When we next meet, what will you be saying to me about your progress
and development?
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Of course, these questions are only illustrative, and an effective coach does not place
too much reliance on asking questions. Listening and exploring the clients’ ways of
seeing their development are central. Even so, the example questions above should
give a practical idea of how a coaching conversation might run in each of the four
areas of the model. Closing each conversation with clarity about the next steps and
a clear commitment by the client is particularly important.
Summary
No short text can turn a reader into a skilled coach. This section has offered practical
guidelines on two core skills that are useful to all supervisors, managers and leaders:
active listening, and giving and receiving feedback. Neither is likely to be new to the
reader, but both are skills that can be improved by consistent application. Moreover,
both are core to the discipline of coaching, which has been introduced briefly here as
a valuable skill for change managers to develop.
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Further reading
References
Beevers, K and Rea, A (2013) Learning and Development Practice, 2nd edn, Chartered
Institute of Personnel and Development, London
Cameron, E and Green, M (2012) Making Sense of Change Management: A complete guide
to the models, tools and techniques or organizational change, 3rd edn, Kogan Page, London
Change Management Institute (2013) The Effective Change Manager: The change
management body of knowledge, (CMBoK) Change Management Institute, Sydney
Coffield, F et al (2004) [accessed 30 April 2014] Learning Styles and Pedagogy in Post-16
Learning: A Systematic and Critical Review, Learning and Skills Network [Online]
www.itslifejimbutnotasweknowit.org.uk/files/LSRC_LearningStyles.pdf
EduTech Wiki contributors [accessed 5 March 2014] Nine Events of Instruction, EduTech
Wiki, A resource kit for educational technology teaching, practice and research
[Online] http://edutechwiki.unige.ch/mediawiki/index.php?title=Nine_events_of_
instruction&oldid=11040
Fleming, N D and Mills, C (1992) [accessed 4 March 2014] Not Another Inventory,
More a Catalyst for Reflection, To Improve The Academy, 11 [Online]
http://www.vark-learn.com/documents/not_another_inventory.pdf
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415
Facilitation 10
Dan Skelsey
Introduction
Facilitation is the act of planning and managing a group meeting so that it achieves
its objectives in a timely and effective manner. During the meeting, the facilitator
focuses on the agenda and group dynamics, allowing the participants to focus on
the subject matter of the meeting. Good facilitation enables groups to succeed. A
well-facilitated meeting is one where the participants take ownership of the results,
and leave with a sense of achievement and a belief that their time has been well spent.
There is a need to structure the meetings to ensure that differing views are con-
sidered and decisions reached. Recently, technology has opened up more options and,
perhaps, also created more problems.
Group meetings are often referred to as conferences, roundtables, forums or
workshops. By any name, they are often an effective way to achieve many change
management tasks, such as:
●● identifying issues, risks or stakeholders;
●● defining the change and understanding the implications;
●● engaging with stakeholders;
●● developing strategies and plans;
●● solving problems.
Very often the change manager needs to organize and manage these meetings. Using
the tools and techniques of facilitation improves the outcomes and builds owner
ship and engagement with the participants.
Poorly facilitated meetings do not achieve their outcomes – and thus waste people’s
time. Many organizations track the cost of people’s time – and getting many people
in a room for several hours can quickly add up to a substantial cost.
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Adding it up
Aside from the financial implications, poorly facilitated meetings leave problems
unsolved or lead to a reduced commitment to follow through on agreed actions.
They lower staff engagement and often create cynicism and scepticism around the
topic under discussion.
C h a p t e r co n t e n t s
Section A: The role of the facilitator and the skills required
Section B: Preparing a group process
Section C: Facilitating a group process
Section D: Virtual meetings
Section E: Facilitation structures and techniques
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Introduction
A facilitator is an individual who develops and manages the processes and structure
for a workshop or meeting so that it can be effective in achieving its objectives. The
facilitator focuses on the agenda, processes and dynamics of the meeting, thereby
allowing the participants to focus on the core subject matter and work together
effectively.
This section will look at the role of a facilitator, and addresses the important
skill of questioning. Good facilitators are also practised in the art of active listening
(Chapter 9, Section C1).
Manages the agenda but ●● Opens and closes the meeting professionally.
not the content ●● Remains independent of the content and does not
(See Section C for more take sides.
information.) ●● Manages the group process and associated timing.
●● Looks ahead and predicts how the agenda will unfold
or needs to be changed.
●● Is prepared to change the agenda if required.
continues overleaf
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Ta b l e 10.1 continued
2. Techniques of questioning
2.1 Open and closed questions
Closed questions invite short and generally factual answers. For example ‘What type
of laptop do you have?’ By contrast, open questions invite longer responses and may
lead into new areas. For example: ‘How do you use your laptop to help you with
your work?’
Funnelling is a series of questions that move from open to closed or vice versa.
It can be a useful technique for gaining the maximum information. For example:
1 ‘How do you use computers in your work?’
2 ‘What kind of presentations do you prepare?’
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2.6 ORID
ORID is a structured questioning technique. Sometimes called the ‘focused conversa-
tion method’, it was developed by the Institute of Cultural Affairs in the United
States. It is a sequence of questions in four stages: objective, reflective, interpretive
and decisional (Table 10.2).
Summary
The role of the facilitator is to prepare a solid and well-thought-through agenda,
and to manage the meeting by simultaneously managing the agenda and the group
dynamics; all the time maintaining a professional approach.
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Introduction
This is the process of designing a facilitated group event on a solid foundation of
understanding the objectives, the constraints and the participants. Good preparation
is the cornerstone of good facilitation. This section starts by summarizing the factors
to be considered and then addresses each one in detail.
1. Factors to be considered
The factors set out in Table 10.3 need to be fully thought through as part of prepar-
ing a group meeting.
2. Product This is the output required from the meeting(s) (Section B3).
5. Place The place or venue for the meeting must be chosen and
prepared (Section B7).
6. Practical tools The tools required for the process are chosen (Section B8)
and it is useful to create a checklist of materials to take.
7. Probable issues Consideration of the risks may lead to a change in the plans
prepared (Section B9).
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If notes are to be taken during the session, this usually requires an assigned note
taker. This person often finds it hard to contribute whilst taking notes, and should
be selected with that in mind. Except in the smallest of groups, facilitators do not
act in the role of the note taker. Presenting back the notes taken during the meeting
can help to verify the notes and remind people of progress made so far. The timing
of this should be chosen so that it does not interfere with the natural momentum
of a successful meeting. There are also technologies that will synchronize an audio
recording with the note taken. This can be a useful way to review the notes after the
event.
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Prior to the meeting, preparation by participants might take the form of gathering
data to present at the workshop. Alternatively, it may be studying material that sets
the background or context of the workshop.
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Objective: Identify actionable plans for making work life easier for parents with young children.
Output: Recommendations for further analysis. At least five ideas with simple plans and risks. All ideas that are
generated, even if not in top five, should be recorded.
Attendees: Gabby, Ben, Sam, David, Audrey, Philip, Sunila, Achim, Awadh, Carol and Afshin.
Timing: Arrive 8:45 am for a 9:00 am start; day will finish at around 4:30 pm. Morning refreshments and lunch will
be provided.
Venue: The Sky room, Conference Centre, 265 Somewhere St. See attached map and instructions.
Open 9:00 9:15 Facilitator introduction. Round robin introductions. Facilitator presents a
session summary of the agenda. Agree ground rules.
Workplace 9:45 9:55 Everyone working alone writes down every workplace issue affecting parents
Issues with young children and sticks them on a wall – one issue per sticky note.
9:55 10:20 One person goes to the wall and, with others calling out, starts to group like
issues with like issues and removes duplicates.
Actions to 10:35 11:00 Depending on the quantity of data, either address individual issues or groups
address of issues. Split into three syndicates and give each syndicate a set of issues
workplace (or groups) to work on. They should explain possible solutions rather than
issues analyse them.
11:00 11:30 Each syndicate presents back to the overall group. As they present, one
member of the syndicate ’ticks off’ issues and the ideas are posted on
a new wall. Issues without an idea are placed in a ‘sin bin’. Ten minutes per
syndicate.
Search for 11:30 12:00 Brainstorming session – start with round robin and then free for all. ’Any other
more ideas ideas’. Add these to existing list of ideas.
12:00 12:15 One person goes to wall and, with others calling out, starts to group like ideas
with like ideas and removes duplicates. (This step may be quite simple.)
Prioritize 1:15 1:35 Ideas are plotted on a XY axis with ’easy to do’ versus ’low to high impact’.
ideas This is done by one person with others calling out.
1:35 1:45 Top five ideas (perhaps more) are selected from XY – one person selects with
whole group calling out. Should be obvious from the XY axis.
Develop 1:45 2:45 Five pairs of two – each take one or two ideas and develop simple action plans.
plans Major steps to be taken. For each step what, who, how and where (if relevant).
and risks Also identify risks to the plan. Includes an opportunity for 10-minute break.
Note that Awadh is an experienced planner and will float between groups and
help them plan.
2:45 3:45 Each pair presents plans, takes questions and comments. One member of pair
records comments. Roughly 10 minutes per pair.
Close 3:45 4:15 Facilitator summarizes, addresses any outstanding actions, reviews with group
session using six hats review, and closes session. Note: this is an early finish, which
allows some 'slack' time.
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The following factors should also be considered when creating the agenda:
●● Breaks should occur at regular intervals.
●● Time is required for introductions at the beginning, and opening and closing
comments.
●● Time is required for the participants to move into and out of syndicates,
and the inevitable milling about and moving of furniture.
●● Time can be saved by sending out background material in advance of the
workshop.
●● Generally, the more participants, the more time is required. This can be
partially managed by the appropriate selection of structure and techniques
(see Section E).
●● Using ‘slack time’ (Schwarz et al, 2005) in an agenda creates a contingency
against problems with time.
Creating an agenda is an iterative process. The time allowed must be matched to
the complexity of the objective, the number of participants, the knowledge of the
participants, and whether or not the participants work well as a team. Sometimes
these factors can only be balanced by increasing the time allowed or reducing the
scope of the objectives.
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Participants object to the ●● How does this workshop fit with the stakeholder
purpose of the workshop engagement and communications planning?
(an example would be when ●● What prior knowledge do the participants have?
they are asked to discuss the ●● Allow time to discuss the purpose.
details of a change and this is
the first they have heard
about it)
The room turns out to be ●● Inspect the venue before booking it.
unsuitable ●● Send clear instructions for the set-up of the venue.
●● Arrive with plenty of time to fix issues before the
workshop is scheduled to start.
●● Are there other spare rooms?
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Summary
Strong preparation for a workshop event is the foundation of good facilitation.
Each of the following factors must be considered (the ‘seven Ps’):
1 purpose;
2 product;
3 participants;
4 process;
5 place;
6 practical tools;
7 probable issues.
Getting these factors right will go a long way to ensuring a productive and enjoyable
event.
1 How much time and thought do you or your colleagues put into
the ‘seven Ps’?
3 How would your regular team meetings benefit from better preparation?
Introduction
Facilitating a group is managing the process to help the group to reach the best
possible result and take ownership of it.
This section starts with opening a session, and discusses group dynamics and
individual reactions as the session progresses. It looks at techniques for intervening
and addresses how and when to change the agenda as the session evolves. Finally,
we examine the crucial step of closing the session well.
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1. Opening a session
Opening a workshop is the opportunity to establish the tone and rules for the meet-
ing. It must be informative, succinct and set an expectation of success. This is the
time to:
●● Acknowledge the participants individually, or, in large-scale workshops,
acknowledge the groups and interests present. In smaller meetings, this can
be done by asking each person to introduce themselves.
●● State the meeting objective and summarize context. If detailed context is
required, this will be a subsequent agenda item.
●● State the facilitator’s role clearly. This will vary according to the nature of
the objective, agenda and participants. If there are supporting roles, such as
a note taker, these should also be mentioned.
●● Summarize the agenda.
●● Establish the ground rules.
Tip
Ground rules establish appropriate ways to interact and become a useful basis for
intervention by facilitators. Established teams may already have ground rules, but
groups that have not met regularly will need these to be established. Asking the
group to suggest ground rules first is the best approach. Facilitators can always make
tentative suggestions of their own. A typical list of ground rules is:
●● Be on time after breaks.
●● Listen to others and show respect. Sometimes phrased as ‘let others speak’.
●● Turn off mobile phones.
●● There are no stupid questions.
●● If having a side conversation, be expected to have to repeat it to the group.
●● An agreement on the required level of confidentiality about what is said in
the meeting and the outcomes.
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‘You handle the vast majority of potential group problems through careful design
and planning, before the group ever convenes – not during the session by using
an arsenal of tricks.’
The Facilitator’s Fieldbook, Tom Justice and David W Jamieson
2.1 Groupthink
Groupthink (Janis, 1972) describes a common phenomenon where the desire for
consensus leads to poor decision making. The symptoms are:
●● complacency: a feeling that the group cannot fail;
●● rationalization: not listening to counter arguments;
●● high moral ground: the group ignore the ethical consequences of its decisions;
●● stereotyping: those who are opposed are described as biased, weak or
incompetent;
●● peer pressure: dissenters are seen as ‘disloyal’;
●● self-censorship: doubts about the group consensus are not expressed;
●● illusion of unanimity: silence is taken as assent;
●● mindguards: self-appointed members protect the group from information that
contradicts the consensus.
Common techniques for counter-attacking groupthink are:
●● encouraging participants to critically evaluate proposals;
●● encouraging the opinions of junior participants before calling on the senior
participants;
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3.2 The people who love process and those who do not
Section E offers a variety of tools to use in a group meeting. More tools are available
throughout this book. Not everyone is equally comfortable with every tool. Some
people feel hemmed in by process and suspicious of the outcomes. This leads to with-
drawal and less ownership of the results. There are a number of ways to overcome
this problem and often they should be used in combination:
●● explaining how the tool works and why it has been chosen;
●● offering a variety of tools that will perform the same function and let the
group choose;
●● allowing some individuals to use different tools.
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do not resolve the problem, then parts of the agenda will need to be deferred to
another meeting.
Having designed a change in the agenda, it should be proposed using the cause-
and-effect approach (Section C4). For instance: ‘You only have 60 minutes left and
four issues to address. Split into four syndicates, with each syndicate working on a
different issue for 30 minutes and then presenting back to the group. This will give
you time to address each issue properly.’ The group may suggest alternative arrange-
ments but at least the issue of time is being addressed.
6. Closing a session
Closing a session is a critical step. It is a chance to summarize what was achieved
and what was not, agree the follow-on actions and review the session. Ideally, par-
ticipants should leave a workshop with a sense of pride and achievement. Creating
clarity on the next steps and thanking them for their time and their contribution
will help to foster this feeling.
Reviewing the session is useful because it helps the facilitator to improve their
skills and, more importantly, it allows the participants to voice their feelings. There
are many techniques for doing this and each facilitator will have their own preferred
method. Suitable for groups of up to about 15 people, here is one using De Bono’s
six hats (Section E3.6 has more on this method):
1 Remind people what the six hats mean. Perhaps display a graphic of the
six hats to remind people of the meaning of each colour.
2 The facilitator will represent the blue or ‘process’ hat.
3 For each hat, in the order given below, give the participants a short time
(one or two minutes each) to write down the main bullet points for
a particular hat when thinking about the workshop:
–– red: emotional reactions to the workshop;
–– white: the facts about the workshop;
–– yellow: what was good and positive about the workshop;
–– black: what criticisms they would make about the workshop;
–– green: what ideas they have for improving the workshop if it were
run again.
Then start with one person and ask them what they wrote for the red hat. Next,
go round the room asking if anyone has anything to add. Repeat this for each hat
except blue. The main points could be recorded on a whiteboard.
After the session is completed and closed, facilitators:
●● Reflect on their own performance, what went well and what could have been
done better.
●● Prepare and deliver output as agreed.
●● Follow through on any commitments owned by them.
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Summary
Strong preparation should be followed by strong execution. This starts with a pro-
fessional opening to the session and sets the expectations and ground rules. While
managing the session, the facilitator is observing group dynamics and individual
reactions. The facilitator is also looking ahead to see if the agenda is still a viable
plan. If necessary, the facilitator intervenes skilfully to bring the session back on
track.
2 Have you ever been in a workshop where you had wished that
the facilitator had intervened earlier?
3 Would your regular team meetings also benefit from a more professional
closing?
Introduction
A virtual meeting is one where one or more of the participants are in different
locations. This might mean one or more people remotely joining a physical meeting.
It might be two or more physical locations joined by communication technology.
In this case, there is the possibility of using co-facilitators at the other locations.
Finally, it could be that most or all of the participants are in different locations.
This section takes a look at how to select a mix of technologies for virtual meet-
ings. Then it examines the additional problems that plague virtual meetings and how
to address them.
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2.7 Multitasking
Participants might attempt to ‘multitask’. In the absence of videoconferencing,
some participants are tempted to do other tasks. During the meeting they might
check their e-mail or browse the internet for reasons unrelated to the meeting.
This is a form of withdrawal. Discussing this in the ground rules, regularly polling
for comment, or using a round-robin style of conversation (Section E2) all help to
manage this.
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Summary
The principles of good facilitation for physical meetings apply equally to virtual
meetings. However, virtual meetings can bring additional problems, which arise
from:
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Section E: Facilitation Structures and Techniques 441
3 Do your virtual meetings experience some of the problems listed in this section?
How are they dealt with?
Introduction
Structures are how people work together, such as on their own or in groups.
Techniques are tools for achieving the next part of the objective, such as brainstorm-
ing ideas or voting to select a preferred option. The facilitator chooses both the
structure and the technique for each part of the agenda.
This section of the chapter lists a variety of structures and techniques that can be
used to progress a task. Many of the other chapters in this book also offer tools that
are suitable for workshopping. Just a few examples are:
●● many of the tools identified in Chapter 2, Defining change;
●● the benefits logic map in Chapter 3, Section B1;
●● stakeholder identification, mapping, personas and empathy maps in
Chapter 4, Sections A and B;
●● the process diagrams in Chapter 13, Section C, Process optimization in
organizations.
There are many more tools available for the interested researcher; a number of
references listed for this chapter are excellent sources for more tools.
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1. Basic principles
When selecting the structure and technique to use, there are some basic principles
to apply:
●● break the objective into steps, each with its own purpose;
●● the steps build up into an agenda;
●● match the technique to the purpose of the step;
●● techniques can often be combined;
●● consider the size of the group, the nature of the venue;
●● allow for different working styles;
●● consider an appropriate structure;
●● vary the structures as the workshop progresses.
It is common near the beginning of the workshop to use divergent thinking to gener-
ate many items or ideas, and then move to convergent thinking, thus attempting to
narrow down the options to a few actionable solutions. Brainstorming and listing
known ideas are examples of divergent thinking. Tools for grouping like with like,
connecting and prioritizing are forms of convergent thinking.
2. Structures
Structure is how the participants work together. For example, they may work as indi
viduals, syndicates or as a whole group. Different structures have different advantages
and disadvantages. Often intervention can take the form of changing the structure.
For example; ‘There seem to be two opposing views here. You could form a syndicate
around each view and ask them to prepare their case to present to the other group.
This way both sides will get a chance to clearly state their case.’
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different views on the same topic, offering constructive debate. The third possible
benefit could occur when the workshop is being used to survey opinion. Working in
syndicates allows individual opinions to be anonymous and can also have the effect
of bringing ‘extreme’ opinions back towards the centre through group discussion.
However, syndicates can be dominated by individuals and the facilitator will need
to watch the group dynamics of each syndicate.
Sometimes it can be helpful to have expert individuals floating between syn
dicates, providing help as needed. When syndicates are preparing to make the cases
for different points of views, avowedly neutral individuals may float between syn
dicates. Similarly it can be very helpful for syndicates to send people to ‘spy’ on other
syndicates, bringing useful information back to their ‘home’ syndicate. The facilitator
will need to expressly state that this is within the rules. Otherwise some will object
and others will not think of it.
2.5 Presentations
This is when one or a few people present to the wider group. This is frequently used
when someone has expert knowledge or when there is a need to make the case for
a point of view. It is often used at the beginning of workshops to set the context
of the overall workshop. The facilitator may need to intervene if the presentation
starts to veer off its brief, or if it starts to threaten the overall timetable.
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The structure used for this can influence the output. Consideration should be given
to the strengths and weaknesses of working individually, in syndicates, as a whole
group or using a round robin. In all cases, the means of recording the information
must be clearly identified. Once identified, the initial list will often need to be sorted,
grouped and duplicates may need to be removed.
Sometimes people will run out of ideas and it can help to stimulate them by asking
them to recall a similar situation or to walk through the situation in their head. Alter
natively, consider the situation through someone else’s eyes, such as the customer.
Group A Group B
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It helps to have a visual aid, such as a poster, to remind people of each hat. It
works well when the whole group is wearing the same colour hat at the same time.
An example of this is given in Section C6 on closing a session.
Action 1
Action 2
Action 3
Action 4
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4.1 Voting
Voting is a way of selecting one or more items from a list. It allows everyone to par-
ticipate and it is seen as fair and transparent. Voting can be done by a show of hands,
giving group members’ sticky dots to stick on items on the wall, or one person could
write votes on a whiteboard while others call out their decision. If there is a need for
a secret ballot, votes could be dropped in a hat or passed to the facilitator.
There are many voting schemes. The simplest approach is to give everyone one
vote. However, if the intention is to pick several items from the list, participants may
be disgruntled that they can only express an opinion on one item. Alternatively, each
participant could be asked to ‘like’ or ‘not like’ each item. A simple count of the
number of ‘likes’ for each item will lead to a ranked list. This can be quite quick
when combined with a show of hands.
Another approach is to give each person somewhere between three and 10 votes.
Often the number of votes each person is given is roughly half the size of the list that
is being examined. They can give all their votes to one option or spread them evenly
or unevenly amongst several options. This has the advantage of encouraging the
participants to consider the relative merits of all options rather than choose a single
favourite.
Similarly, but requiring more time, each participant could rate each item on a
scale of, say, one to five and the results for each item for each person could then be
added up. This is a more detailed approach and takes longer.
These methods can be combined if the voting is done in several rounds, with each
round selecting a smaller list for the next round of voting.
4.2 MoSCoW
MoSCoW stands for Must, Should, Could and Won’t. It is one way of categorizing
a long list of items:
●● Must: you absolutely must have these and cannot possibly do without them.
●● Should have: you really need them, but if you really had to then a
workaround could be found, even though it would be extra effort.
●● Could: would be good to have if circumstances allow.
●● Won’t have: won’t have this time but may have it at another time.
This approach could be used to select functionality for software, or requirements for
something that must be built or designed.
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High D
Benefit to the customer
High D
B B
impact
Medium C A
A
Low
C
E impact E
Low
4.3 XY axis
Sometimes items need to be rated on two unconnected criteria such as benefits versus
time to implement for actions, or impact versus urgency for problems. Obviously,
high-impact and high-urgency problems would be tackled first, or priority would be
given to high-benefit and quick-to-implement actions. Chapter 4 has a number of
examples of how the XY approach can be used for stakeholder mapping.
Items can be plotted on an XY axis with each axis representing different criteria.
Figure 10.3 shows examples of this. In practice, this can be done by placing sticky
notes on a diagram or numbering a list and then writing the numbers on a diagram.
Sometimes the diagram is split into four quadrants, as in the example in Figure 10.3.
Option 1 32 4 Low 1
Option 2 16 3 Medium 2
Option 3 27 2 High 3
Option 4 20 5 Low 4
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options against cost, quality, risk and benefit. Different columns can be rated in dif-
ferent ways. In the case of Table 10.6:
●● cost is given as an actual figure;
●● quality is rated on a scale of one to five;
●● risk is rated as high, medium or low;
●● benefit has been ranked top to bottom.
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3 The process involves rounds of conversation at each table and then people
moving to new tables. Each round is between 20 and 30 minutes.
4 At the end of each round, each participant at the table moves to a different
new table. They may or may not choose to leave one person as the ‘host’ for
the next round. The host would briefly tell the next set of participants who
join the table what happened in the previous round.
5 Each round is prefaced with a question designed for the specific context and
desired purpose of the session. The same question can be used for multiple
rounds, or the questions can evolve from round to round.
6 After several rounds (three is a number frequently mentioned) start to record
the results on a wall or projected picture. This will usually take a person
skilled in capturing and summarizing the information and presenting it in
an interesting and clear manner.
World Café is a technique that can be used with anywhere from 12 to several hundred
people. It is generally a creative process and works best with open-ended questions.
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The law is called the ‘Law of Two Feet’. It simply states that if at any time an attendee
is neither learning nor contributing, then they should use their two feet and move
on. Open Space Technology works best when tackling complex issues with diverse
people, who have diverse ideas and a passion for the problem.
Summary
The structure is how people work together and each structure has its place:
●● Everyone working on their own allows people to contribute equally and not
be dominated but this can lead to a lot of duplication.
●● Working in syndicates can save time by looking at different tasks in parallel
or it can be used to form debating teams.
●● Working all together allows people to build on each other’s contribution,
but can lead to a few people dominating the conversation.
●● Round robin gives everyone a chance to be heard.
●● Presentations allow people to set the context or make a case for their point
of view.
Techniques for building information start with divergent techniques such as brain-
storming and listing, and are then followed by convergent techniques such as putting
like with like. There are various methods for prioritizing or building consensus such
as voting, XY axis, matrices or forming a debating structure.
Two innovative approaches to larger groupings are World Café and Open Space
Technology. These both allow large groups of people to enter into useful debate.
World Café is more structured than Open Space.
2 Do you use the same techniques all the time or do you try to match
them to the needs of the objective?
3 Can you think of times when you would use World Café or Open Space
Technology?
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References 453
Further reading
References
De Bono, E (1999) Six Thinking Hats, Back Bay Books, New York
Janis, I L (1972)Victims of Groupthink, Houghton Mifflin, New York
Justice, T and Jamieson, D W (2012) The Facilitator’s Fieldbook, AMACOM, New York
Harrison, O (2008) Open Space Technology: A user’s guide, 3rd edn, Berrett-Koehler,
San Francisco, CA
Harrison, O [accessed 13 February 2014] Open Space for Emerging Order [Online]
http://www.openspaceworld.com/brief_history.htm
International Association of Facilitators (2003) [accessed 24 April 2013] Basic IAF Core
Competencies for Certification [Online] www.iaf-world.org/index/certification/
CompetenciesforCertification.aspx
Mann, T (2014) Facilitation: Develop your expertise, Resource Publications, Newbury
Mittleman, D D, Briggs, R O and Nunamaker, J F (2000) Best practices in facilitating virtual
meetings: some notes from initial experiences, Group Facilitation: A Research and
Applications Journal, 2 (2), Winter, pp 5–14
Schwarz, R (2002) The Skilled Facilitator: A comprehensive resource for consultants,
facilitators, managers, trainers and coaches, Jossey-Bass, San Francisco, CA
Schwarz, R et al (2005) The Skilled Facilitator Fieldbook: Tips, tools, and tested methods for
consultants, facilitators, managers, trainers, and coaches, Jossey-Bass, San Francisco, CA
Watkins, M (2013) [accessed 11 February 2014] Making Virtual Teams Work: Ten Basic
Principles [Online] http://blogs.hbr.org/2013/06/making-virtual-teams-work-ten/
World Café Community Foundation, World Café Method [accessed 13 February 2014]
[Online] http://www.theworldcafe.com/method.html
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Sustaining change 11
Helen Campbell
Introduction
Organizations invest time, money and energy in change because they want to do, be
or have something different. Not just for a day or a week but as an integrated part
of the evolving organization. As we have seen in previous chapters, humans love the
status quo and will go to great lengths to get back to it. Despite evidence time and
time again telling us that changes are not self-sustaining, we continue to turn a blind
eye a week or two after ‘go-live’ – long before the benefits have been sustainably
delivered.
‘Planting the seed may provide a sense of achievement but only with careful
planning beforehand and vigilance afterwards will we produce the food we need.’
This chapter explains some of the underlying principles, models and tools that a
change manager uses to make sure the change sticks and, more importantly, stays
stuck! The first part of the chapter covers some of the common concepts used when
planning, measuring and sustaining change. Alongside each of these concepts is a
clear indication of what it is, why it is useful and how it is applied. A case study is
also used to illustrate how a change manager applies each topic. At the end of the
chapter are a few practical checklists for each stage of the change, which will help
practitioners focus on sustaining change throughout.
Change managers continually look at the big picture and the long term to make
sure the change sticks. Chapter 7 shows how they work with the business and the
project team to ensure that the change and the environment ‘fit’ together to enable
as easy a transition as possible. They understand the concept of levers and leverage
and the full range of levers at their disposal. They have the skill and experience to
be able to apply the right one(s) at the right time. They check that levers are having
the desired effect, and are ready to change their approach in response to feedback
and new information. They understand that every change and every environment
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is different and that the need to sustain the change and the way in which this mani-
fests itself is different every time. They understand the nature of human behaviour
and how this helps and hinders the successful sustaining of change.
Change managers start working on how to sustain the change as soon as they
come on board and they don’t stop thinking about it until the benefits are delivered.
However, sustaining change is a team effort and the change manager needs to build
strong relationships with colleagues across the organization. The people impacted by
the change (internal and external) provide valuable insights into the environment
into which the change will be delivered. The human resources (HR) and organization
development (OD) teams offer critical expertise. The business risk management team
are constantly on the lookout for strategic, operational, reputational and financial
risk. It is not unusual for a change initiative to raise significant risks in all these areas.
Within the project team the people developing the change solution have an impor-
tant role to play and the change manager works with them to make sure the solution
and the approach to implementing it enable those on the receiving end to easily
adopt and embed it. Finally, the Project Management Office (PMO) ensure all project
risks are reported, prioritized and managed, and the change manager makes sure that
risks to the adoption and sustainability of the change are on the risk register from
the outset (Chapter 6).
Tip
C a s e s t u dy
Captain Engineering had been experiencing problems with customer orders. They had
traced the main cause of the problems back to a lack of communication between functions
within the organization. This in turn was resulting in duplication of tasks, conflict and
confusion, which in turn was preventing them from meeting customer orders quickly and
accurately. One of the barriers to cross-functional communication was the strong
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hierarchical structure that was forcing people to communicate up and down the chain of
command. Carmel had been appointed to the role of Change Manager and, throughout this
chapter, you will see how she applies each of the concepts and tools to ensure the change
sticks, stays stuck and ultimately enables a better customer experience.
C h a p t e r co n t e n t s
Section A: Sustaining change concepts
Section B: Useful checklists and tools
This section provides information and practical examples of how to apply some
core concepts that are behind the successful adoption, embedding and sustaining
of change.
1. Concept of ‘fit’
What is it?
Change
Change will have a smooth transition into
operation if it ‘fits’ the environment into which Environment
it is being introduced. A good fit means that
adoption is relatively painless, whilst a poor fit
results in high levels of angst.
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How is it applied?
As we saw in Chapter 7, change managers are closely involved in the design of the
solution to make sure it can be adopted and sustained by the recipients as quickly
and easily as possible. For example, if a change involves getting ‘square pegs’ into
‘round holes’ in the organization, change managers apply the techniques outlined so
far in this book to adapt both the square pegs (the solution) and the hole (the human
and other aspects of the environment into which the solution is being introduced).
They do this just to the extent required to enable the ‘square pegs’ to be adopted,
integrated and sustained as quickly and painlessly as possible and the benefits delivered.
C a s e s t u dy
Carmel used the concept of ‘fit’ to work out how best to design cross-functional
communications channels without any major changes to existing processes, so that they
could be introduced without major disruption. She also used it to identify the areas of the
change that would clash with existing skills and processes and would therefore need to
be adapted to ‘fit’ the new way.
2. Systems thinking
What is it?
Systems thinking is a form of analysis that
identifies the positive and negative ripple effects
of the change and change management activities.
It is arguably one of the most important and
powerful processes that a change manager offers.
Systems thinking encourages the change manager
to look at the organization and its environment
as a series of interdependent systems – where
a change to one area naturally has ripple effects
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elsewhere. The ‘system’ can be internal (for example, the reward system or the financial
management system) or external (such as political, social, regulatory or economic).
It works on the basis that an action influences something, which influences some-
thing else and eventually flows back to the initial element via a positive or negative
feedback loop. In a change management context, a positive feedback loop reinforces
attempts at change, whereas a negative feedback loop supports the status quo. See
Chapter 2, Sections C and D for more on using systems theory and soft systems
methods when defining change.
To use a generic example: putting your foot on the accelerator increases fuel
flow, which in turn makes the car go faster. When you check the actual versus the
desired speed of the car you alter the position of the accelerator and the cycle starts
again. Using a systems diagram this would look like the flow in Figure 11.1. To apply
this thinking to a change management situation might look like the systems diagram
in Figure 11.2.
Perceived
gap Fuel flow
s
in
ce
flu
en
nc e
lu
inf
s e
Speed of car
in
ce
flu
en
en
lu
ce
inf
How they
allocate their
time
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Section A: Sustaining Change Concepts 459
How they
es
enc allocate their in
influ time
flu
en
ce
s
Remuneration
The
es
customer
enc
experience
influ
Customer Sales
retention
in
fl
lay
ue
lay De Customer n
De
ce
s
nce satisfaction
s
s
ce lue
en lu inf
inf
To take this one step further we can expand into another system and identify the
influences on the customer system, as shown in Figure 11.3. This example shows
how the actions of leaders can have a ripple effect on customer satisfaction, retention
and sales results. Note also the concept of ‘delay’ introduced with this diagram. Not
all responses are immediate and it is important to understand the nature and effect
of those delays on the change and its benefits.
How is it applied?
Change managers use systems thinking in a variety of tasks and, when it comes to
sustaining change, the main application of systems thinking is to identify the forces
that will help and those that will get in the way of the change sticking and to exploit,
remove or minimize their impact as appropriate.
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Systems thinking requires a major shift from the linear approach more common
in projects. It is based on the ability to see the big picture – both in place and time
– and how each element is interdependent on each other. As Peter Senge says: ‘cause
and effect are not closely related in time and space’ (for more on Senge’s thinking
see Chapter 1, Section C2.3). The change manager takes into account the short-,
medium- and long-term effects of the change and any approach to sustaining it.
A strategy that looks promising during implementation can sometimes unravel over
time and undermine the realization of benefits. Considering a variety of perspectives
helps to understand the true effect as well as the influence that change may have
on other systems, including any that will derail the change. Systems may exert a dif-
ferent type and level of force at different times, and it is the skill and experience of
the change manager that ensures there is more forward motion overall and that the
change has the momentum it needs to stick and stay stuck.
C a s e s t u dy
Carmel thought about which systems would be involved in making sure the new com
munication channels remained effective and delivered the improved customer experience
required. She worked with the HR and Communications departments to identify formal and
informal systems relating to recruitment, reward, physical environment and decision
making to find those that would help the change stick and those that might derail it. Against
each of these systems she jotted down some questions that would help her to understand
the power of each one (see Figure 11.4).
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F i g u r e 11.4 C
aptain Engineering – relevant systems and their influence
What is it?
Levers are the elements of a change and its landscape that can be activated in some
way to enable or support adoption on a broad scale. Leverage is where a small
amount of effort targeted in the right place (ie the right lever) at the right time can
have a big effect on the outcome.
How is it applied?
Levers are used to avoid or minimize the harm from forces stopping or inhibiting
adoption and encourage the forces that will have a positive effect. Leverage is used
to influence individuals sufficiently so that they voluntarily demonstrate and main-
tain the required new behaviours, where it is often the small things that will have a
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big effect on the outcome. The nature of systems thinking – seeing our world as a
complex array of interdependent systems, all of which can influence each other –
leads nicely to the concept of levers and leverage. Imagine flying in a helicopter high
above the change. As you look at the landscape from a variety of perspectives the
patterns of influence emerge – what influences what and how; how activities, people
and outcomes are linked interdependently. From there, the change manager decides
where and how to act so that the desired outcome is reached. They play out the
various scenarios to see what effect different strategies might have. When they are
satisfied they have thought through the rippling consequences of each strategy, they
confidently invest their time and energy in the ones that will have the best outcome.
These may be avoiding or limiting the damage from a disruptive system, or exploit-
ing the power of a supportive system.
C a s e s t u dy
Carmel had already identified the systems that were relevant to the change. Now she had
to work out which of these would provide the greatest leverage to make the change stick.
She drafted the list before going to check it with her colleagues in HR (see Figure 11.5).
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the new system they may prefer a party and public praise. If you need to
persuade people with legacy skills to stay in their role for long enough to
complete the transition, a bonus or other financial incentive may provide the
motivation they need. These are examples of providing effective short-term
motivation. An example of a longer-term ‘carrot’ strategy would be to
consistently provide new opportunities to those with a positive attitude
towards the change. The process for allocating the rewards must be
transparent, as people will be on the lookout for any signs that procedural
fairness is compromised.
●● Stick: inflict a penalty for activities and behaviours that undermine the success
of the change. Remembering that in general people are not deliberately doing
the wrong thing these penalties should start with minor consequences such as
the absence of rewards. For example: ‘My colleague Jane won the competition
for data accuracy this week. My boss is going to help me understand what I need
to do to improve my score.’ As further motivation, the change manager makes
it clear what will happen to the organization, its customers, divisions and the
individual if benefits are not realized.
●● Burning bridges: carrot-and-stick strategies can lose their effectiveness when used
over the long term or repeated frequently. A strong but often neglected strategy
is to make it impossible for your people to do things any other way. This requires
a focus during the design of the solution. A simple example is in the embedding
of a new system that automates a manual process. The design of the system and
the associated processes can ensure that it is not possible to complete the
transaction unless every worker uses the new system in the way it was intended.
Here’s what a team member may encounter when they try to work around such a system:
Most of my customers don’t have their tax details with them when they apply so we
used to enter ‘99999’ in the old system and it would let us carry on with the application.
I tried putting ‘99999’ in the new system but it is clever! It knows when I have tried
to trick it and won’t let me complete the application until I have entered the right
information. Now we make sure we ask customers to bring their tax details with them
so that it doesn’t hold up their application.
One of the best models around for helping to understand how hard it is to
change human behaviour – and that also gives the change manager some clues
about how to approach this – is Jonathan Haidt’s reworking of the Indian classic
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about the rider and the elephant. The rider represents the logical, rational mind
– which needs facts and information about a change and why adoption is critical to
success. The elephant represents the emotional and autonomic self – the one with
a mind of its own who tends to act without consideration of the consequences.
As a simple example, when an individual is placed in front of a piece of chocolate
cake it is the rider that reasons ‘I should not eat that as I am trying to lose weight’.
By contrast, it is the elephant that is saying ‘eat the cake... I love cake... eat the
cake...’. The elephant is bigger, stronger, has more stamina and is harder to control
than the rider. Haidt suggests that sustainable behaviour change requires the
appropriate appeals to both the rider (the most powerful facts, figures and
rationale) and the elephant (with messages aimed at emotions such as desire and
fear). He also suggests ‘shaping the path’ – in other words, making it impossible
(or really troublesome) for the elephant to do anything other than what you need.
C a s e s t u dy
Carmel had identified that the leaders’ offices presented a physical barrier to the desired
open communication and also symbolized the hierarchical culture she needed to shift.
Several of the leaders had suggested that their offices be turned into meeting rooms
but Carmel knew that if the offices remained then the leaders would be tempted to move
back in. She could see that in the longer term they may need more meeting rooms, but this
need could be met in other ways for the time being. She knew she had to ‘burn their bridges’
and dismantle the managers’ offices. The new open office would force ongoing interaction
between managers and their teams, which would be critical to changing to a more
egalitarian culture.
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Tip
Look out for planned incentives or penalties that are no longer powerful. For
example, linking adoption to the size of the staff bonus may have made sense
in the planning, but if the poor company performance led to no one getting their
bonuses last year then this lever will no longer have the power it once did.
C a s e s t u dy
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Words make up only around 7 per cent of the message so it is the tone of
their voice, body language and ultimately the actions leaders take that send
a much stronger signal about the type of behaviour that will be rewarded
(see Chapter 5, Section 5.1 on symbolic actions). When a leader says that
the change is important, but is then unable to answer any questions about it,
you can almost hear the change momentum grinding to a halt!
Tip
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C a s e s t u dy
Carmel knew that to kick off the change she needed a powerful demonstration of the new
behaviours from the senior leaders, so she got agreement from the CEO and the executive
to be the first to relinquish their offices. This would role-model the required change. In
addition, she asked them to actively and visibly engage more with the people around them
and ‘talk up’ the change in order to send a clear message to managers that attempts to
rebuild barriers will be frowned upon.
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Job design
If we were starting from scratch how would we design the roles to support the change?
Which tasks group together logically into one role? By looking at new processes,
work volumes, current and future skill requirements, available talent and profes-
sional and personal development paths it is often possible to design roles that make
it hard to go back to the old ways and still provide satisfying and stimulating jobs.
Role descriptions
If we were starting from scratch how would we write the role descriptions for the
people in these roles? How can role descriptions be changed to highlight the impor-
tant elements of the change? For example, important stakeholders, new responsi-
bilities, skills and desired behaviours for the person in the role.
Organization structure
How can we change the structure of the organization to make it easier to adopt
and sustain the change? For example, if an organization’s stated aim is to ‘put the
customer at the centre of everything we do’ it would help to move from a functional
structure (Figure 11.6) to a structure that gives more visibility of, and therefore
influence to, the customer groups (Figure 11.7).
CEO
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CEO
This new structure ensures that workflows and decisions are primarily based on
the customers’ needs. This also illustrates how a change of name for a department
(for example changing from ‘Operations’ to ‘Customer Operations’) can help to remind
those working in that department about what is important, and therefore reinforce
the change when supported by other activities. Other organization structure options
might include a regional structure, creating subsidiary companies, a structure based
on the core processes of the organization, centralized or decentralized control. See
Chapter 13, Section A6 for more information about organization design.
This is a good example of burning bridges. When the team is structured in a way
that groups the right people together and designs the interdependency between roles
to align to the change, it can be difficult for recalcitrant or fearful recipients to find
their way back to the old way.
Tip
Think carefully about whether, when and how to restructure for maximum
effect and minimum disruption. It can be highly disruptive and distracting if
not done well – and has the power to undermine all other change
management interventions.
Team structure
If we were starting from scratch how would we build the team to support this?
How should we change the team structure to accommodate and support the change
given the nature, volume, timing and flow of the team’s work and the level of inter-
dependency between team members and with other teams?
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formal annual performance review processes most still work with their employees
to identify a set of task- and behaviour-related objectives (sometimes referred to as
Key Performance Indicators (KPIs), Key Results Areas (KRAs) or Balanced Scorecards),
which are designed to set the organization’s, team’s or person’s priorities. Careful
planning of KPIs, and an awareness of the behaviour they will drive and the ripple
effects they will have, makes them an influential lever for sustaining change when
they are used wisely. When applied without forethought they can have just as strong
an effect on undermining the change. For example, measuring customer service by
‘number of problems solved’ means the customer service area is under pressure to
close problems – regardless of whether the customer is happy. Using ‘customer satis-
faction’ as a measure drives more helpful behaviour.
There can be a strong temptation to believe that changing the impacted people’s
KPIs is enough to make the change stick. However, this will only work if the follow-
ing criteria are in place:
●● Performance targets are few in number so that they can provide effective
focus and motivation.
●● KPIs drive, not undermine, the behaviour that will support the change.
●● Leaders consider this a critical process and give it the appropriate time and
effort throughout the year.
●● Rewards reflect the level of achievement.
●● Rewards are valued.
●● Objectives remain relevant and motivating throughout the performance period.
●● It is complemented with other levers and strategies.
It is important to remember that OD levers will be met with concern at best and
extreme resistance (and industrial action) at worst (see also Chapter 13, Section A).
As we saw in Chapter 7, Section C1, the psychological contract implies that people
must have a safe environment within which to take their first tentative steps towards
the new way of working. A good change manager understands the perceived personal
threats that come with changes to people’s status, and provides the support required
to help those impacted make the transition (see also Chapters 1, 6 and 7).
C a s e s t u dy
Carmel needed to make sure that information flowed freely between the functions involved
in receiving, processing and building customer orders. After a meeting with the OD manager
she jotted down some OD levers that would help to sustain the change (see Figure 11.8).
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Tip
Look for levers among the formal and informal reward mechanisms and
apply those with the greatest ability to reinforce the change. In some cases,
the reality of how work flows around the organization, how people are
promoted and the scope of their role bears little relation to the written documents!
4. Levels of adoption
What is it?
Chapter 4 addresses the different needs and expectations of various stakeholder
groups during change. Once the change is implemented the change manager focuses
on getting each group to the point required to deliver benefits – and keeping them
there. Consider the three levels from the model by Herbert Kelman (1958) outlined
in Figure 11.9 – compliance, identification and internalization. Some changes, phases
or stakeholders may only need ‘compliance’: for example, if the change requires only
a simple one-off action such as updating your new e-mail signature. If your office is
relocating to the other side of town you may need people to ‘identify’ more strongly
with the change. When the change impact is significant, leaders are usually required
to reach a level of internalization so that they can be authentic advocates.
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‘I need to be able to
Rewards and
1. Compliance tell them what to do Short term Low Accept
penalties
and they’ll do it’
‘I need them to
understand why they
2. Identification Medium Medium A sense of Willing
need to do this and
term meaning
the consequences of
not changing’
‘I need them to be
able to make
Alignment
3. Internalization decisions about what, Long term High Committed
to values
why, when and how
things are done’
How is it applied?
During the planning phase it is important to create a common understanding of, and
commitment to, the level of adoption that is required for the change. This informa-
tion also forms the basis for measurement after implementation.
C a s e s t u dy
During the planning stage Carmel thought through what levels of adoption the change
would need in order to create and sustain the momentum it needed. This enabled her to
focus her time and energy on the most critical areas and, when the new way of working
was implemented, this would form the basis of her measurement (Figure 11.10).
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Tip
Laggards... In the latter stages of most changes there will still be laggards,
to use Everett Rogers’s (2003) terminology – people who cannot or will not
adopt the change. Whilst it is sometimes possible to deliver the planned
benefits in spite of this, the organization must identify and manage the cumulative
effect of this behaviour on the organization’s agility. Sometimes if you can’t
change the people you need to change the people!
Tipping point
Adoption
Implementation
phase
Time
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of critical mass as ‘when the people and systems operating in the new way achieve
unstoppable momentum’. He also points out that this is the point at which we can
safely accelerate the elimination of the old way.
How is it applied?
In the latter stages of development the change manager is building up to a point
where the change needs to progress under its own steam, and the right conditions
need to be in place as soon as possible after implementation for this to happen. This
may mean targeting new stakeholders or changing the targets and approach to
existing ones. For example, early in the development phase one of the line managers
impacted may just need to ‘help it happen’, but in order to sustain the change they
need to move to ‘make it happen’ at implementation.
C a s e s t u dy
Carmel had a meeting planned with Sue, the programme sponsor, and one of the things she
was keen to discuss was her understanding of what critical mass would be required to
sustainably deliver the changes they needed. She also wanted to find out what Sue would
be looking for to indicate that they were reaching a tipping point. In preparation for the
meeting she jotted down some ideas about what she thought people would be doing and
saying differently when the change was successful (Figure 11.12).
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6. Reinforcing systems
Having introduced the idea of an ‘unstoppable momentum’ through the concepts
of levers, leverage, tipping point and critical mass, how do you make sure that the
momentum stays on the right tracks? Knowing when and how to intervene is a
critical skill of the change manager. Here we come back to our systems thinking
again, but this time instead of using it to analyse effects we use it to create the effects
that we need to reinforce the change.
How is it applied?
Change managers work hard to prevent, spot and intervene with vicious cycles and
to create virtuous ones. They think through the ripple effects of alternative strategies
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2. Their team
members look to them
to decide what to do
6. What system?!!
5. Their friends
bought the new
laptop
3. Customers liked it
2. A few customers
bought one
1. The sales teams
were nervous about
selling the new laptop
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to find the two or three interventions that will start the ball rolling. Once the
momentum takes hold they are on the lookout for external elements that will
interrupt it.
Senge and Goodman (1999) suggest targeting three reinforcing systems simulta-
neously to create a sustainable impetus for change:
R1 – individual personal results: ‘I’ll change because it matters to me.’
Interventions make clear the ‘What’s in it for me’ (or WIIFM) for each
stakeholder group.
R2 – networks of committed people: ‘I’ll change because it matters to my
colleagues.’ An individual’s need to fit in with the tribe can be triggered
if we can build a belief that the change matters to their colleagues.
R3 – improved business results: ‘I’ll change because it works.’ Ultimately
people want to see that the change has achieved something worthwhile, so
the change manager shows how it is having a direct positive effect on the
success of the organization. The change manager considers which types of
reinforcement strategies will work best for the particular change and
nature of stakeholder.
C a s e s t u dy
In her planning Carmel had put together some ideas for creating virtuous cycles. Working
back from her desired outcome of delivering customer orders quickly and accurately she
identified a series of events that would naturally flow to the outcome being achieved. One
such virtuous cycle that she plans to use is outlined in Figure 11.15.
She also jotted down some ideas about the key messages that would need to be in her
communications plan for each stakeholder group, checking that she had included the full
range of R1, R2 and R3 messages.
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Stakeholders want to see data that backs up the change management strategy and
reassures them that time, energy and money are being well spent. Chapter 7 provided
some useful information about monitoring and measuring change. There may be a
different set of measures for adoption, embedding and sustaining the change, but
they should always meet the following criteria:
●● no more than three;
●● each have a clear link to the desired outcome;
●● have no or minimal negative influence on behaviours;
●● data is relatively easy to collect;
●● uses an established and effective reporting mechanism and forum.
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Lapse or relapse?
How is it applied?
Working back from the desired benefits (as well as possible dis-benefits mentioned in
Chapter 3) change managers identify the indicators they will look for, who will collect
the data, how they will analyse and report on it and who will have accountability for
acting on the results. This requires systems thinking skills to assess the implications
of different options, thinking through the positive and negative ripple effects that
can result from measurement, and reporting and tailoring the approach to suit.
C a s e s t u dy
Carmel knew she would need some data to back up her views if she was going to galvanize
the senior leaders into action. She looked at the work she had done so far, particularly on
the levels of adoption, critical mass and tipping point. She also went back to the benefits
realization plan and used the change and business outcomes as benchmarks for
measurement. Next she decided what evidence she would look for to indicate whether
the change was sticking. Some of it would be objective data and some would inevitably
be based on subjective judgements. She knew that monitoring what people were doing
could cause a range of unhelpful behaviours if they felt like they were being ‘checked up
on’, so she tested her ideas on some of the impacted team members and adjusted her
approach based on their feedback. She wanted to make sure the measurement and
reporting was done in a way that would encourage them to ask questions, provide feedback
and raise concerns.
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8. Transition management
What is it?
Transition management is argu-
ably the point at which the change
is in most jeopardy. It is the
high-risk phase during which The old The new
the change is implemented and way way
it becomes a reality for those
impacted. The change manager
adapts their approach from one of careful preparation to active vigilance. William
Bridges’ (2009) transition model outlined in Chapter 1, Section B2 suggests the way
in which we need to regard the period of transitioning to a new way of working with
endings, a neutral zone and a new beginning.
Tip
How is it applied?
During transition the change manager’s plan allows for everyone to be at a different
stage in their personal transition as well as in the change as a whole. They balance
these two elements to create the momentum required to sustain the change long
after implementation.
The transition model offers strategies to support people at each phase of the tran-
sition. To enable endings, a company that is moving to a new building might have
a ‘farewell to the building’ party where people can reminisce. Alternatively, if a
change requires a significant change of skills there may be an opportunity to reflect
on the success that the previous skillset has brought to the company. The risk with
people in this zone is that often their managers and colleagues, who may already
have moved on, try to ‘jolly’ them out of it, ignore their concerns or move them on
before they are ready. Unless they move out of the ending zone under their own
steam they will always have a foot in this camp and will not be able to truly embrace
the new beginning.
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Barriers to adoption
There can be many things that get in the way of people adopting the
change at this point. Some of these will be foreseeable and some won’t.
Below are a few of the scenarios that change managers may experience:
●● Our people are ‘change fatigued’. Whether they have had too much change or
too much bad change they just don’t have the energy to focus on this one.
●● The recipients are not ready. They thought they were but now the time has
arrived they need more support, more training and more time.
●● ‘You never told me...’. As people struggle to adapt to the new ways they become
more fearful and engage in disruptive behaviours aimed at distracting attention
away from themselves and, if possible, delaying or derailing the change.
●● No one is watching. There do not appear to be any positive or negative
consequences for changing the way they do things.
●● There is a problem with the measurement. Perhaps we are measuring the wrong
thing or measuring in a way that leads recipients to cover up rather than raise
problems.
●● No one cares. Our measures indicate that some remedial action is required if the
benefits are to be realized but no one wants to make it happen. Which leads us
on nicely to...
●● There is no money or resources. Budgets often cut off shortly after
implementation, which means that when the inevitable remediation work is
required there is no one to do it and no money left in the budget.
●● Humans will be humans! Despite the best efforts of the change manager, human
behaviour can be an unstoppable force. If it is working against adoption of the
change it can seem like an unwinnable war.
●● We expect to return to ‘business as usual’ after the change. If business is
‘as usual’ after the change then surely the change has failed!
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For the people in the neutral zone the change manager’s aim is to maintain a sense
of momentum and provide a specific path to the future. For example, Jeremy from
the sales team has finally accepted that the new ordering system is going to happen
next week and is now ready to learn what he needs to do to make it happen. The
change manager makes sure he is swept up in the momentum of the implementation
by sending him regular progress updates along with the specific information he will
need to be successful. They make sure that his focus is kept firmly on the ‘here and
now’ and how this links to future success.
The new beginning is obviously the goal for any transition, and the change
manager activates as many levers as they can to move people into this zone quickly
and prevent them from slipping back when the change hits its inevitable snags.
Tip
Summary
There are a wide variety of useful concepts to help change managers plan for and
monitor the sustainability of the change. Change managers know which ones to
use when – and keep an eye on their effectiveness so they can take advantage of new
opportunities or change course when required.
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5 What measurements will support the right behaviour and provide an accurate
assessment of whether the change has been adopted?
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✓✓ Lays the groundwork to ensure that everyone is ready to activate the levers
and work towards the targets at the right time.
✓✓ Monitors changes to the desired change outcomes, business outcomes and
benefits, and updates plans and measurement systems accordingly.
✓✓ Plans the most effective transition approach.
✓✓ Actively monitors the plan to ensure that strategies will still have the intended
effect.
Whilst the change does not need to reach its tipping point into critical mass until
after implementation, change managers constantly work to create the conditions
needed for this to occur. Key questions during the planning phase are:
●● What conditions will be in place to tell us we have reached a sustainable
tipping point for our change? (To the extent required to deliver the required
benefits.)
●● What are the lead indicators that we are on track?
●● Who are the stakeholders who will be most influential in creating this state?
What is in it for them? What information, skills and support do they need
to equip them?
●● What barriers might there be to creating critical mass quickly? How will
we mitigate these?
●● What barriers might there be to gaining a sustainable tipping point?
How will we mitigate these?
●● What or who can we leverage to help us reach a sustainable tipping point and
therefore critical mass quickly?
●● What do I need to do differently to increase our chances of success?
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By now the solution is ready to roll out with the people, and the environment
carefully prepared so that the change will transition smoothly into operation. But the
transition needs a period of intense and specific attention to enable this smooth tran-
sition to become a reality. This period requires a fresh perspective and will highlight
issues and opportunities that have been missed along the way. Change managers stay
vigilant to these and continue to adapt their approach to deliver the outcomes.
During this phase the change manager typically:
✓✓ Implements strategies to help people let go of the old ways, move quickly and
confidently through the neutral zone to consolidate and celebrate the new
beginning.
✓✓ Monitors the effectiveness of adoption levers.
✓✓ Maintains a forward-looking focus with patience and persistence.
✓✓ Monitors the transition phase of the change recipients at an individual,
team and organization level.
✓✓ Looks out for potential slippages and obstacles that may derail the change,
and acts quickly to report and remediate them.
✓✓ Represents the views of the change leaders and change recipients when
highlighting and discussing teething problems.
✓✓ Measures and reports progress and risks.
✓✓ Alters their approach in the light of new information.
Tip
No matter how well prepared you thought you were there will be
surprises – be ready to find them and respond accordingly!
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Tip
Workarounds are your friend – they are the path of least resistance and
should be shared, or they are a human behaviour loophole and need to be
closed off! Either way, the recipients must feel confident raising them.
Summary
Activities required to sustain change start right at the beginning of a change – when
it is just an idea. They usually continue long past implementation until benefits are
delivered, realigned or abandoned. Change managers play a critical role in enabling
a change to be sustained, by applying the concepts of fit, systems thinking, leverage,
tipping point, critical mass and reinforcing systems. They work closely with col-
leagues in the impacted teams, HR, OD and risk teams to develop and implement
powerful strategies to make the change stick and keep it stuck.
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4 Does our organization provide funding, focus and resources until we have
realized the benefits we need?
Further reading
For more on the magic of systems thinking – Senge, P M (1993) The Fifth
Discipline: The art and practice of the learning organization, Century,
London
For more on the business activities required to sustain change and complement the
change manager’s efforts – Campbell, H (2014) Managing Organizational Change:
A practical toolkit for leaders, Kogan Page, London
For more about the power of communication in driving successful adoption –
Larkin T J & Larkin S (2006) Communicating Big Change, Larkin Communication
Consulting, 3rd edn
For more on leadership and cultural levers – Schein, E (2010) Organizational Culture
and Leadership, 4th edn, Jossey-Bass, San Francisco, CA
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References 491
Lawson, E and Price, C (2003) (accessed February 2014) The psychology of change
management, McKinsey Quarterly, June [Online] http://www.mckinsey.com/
insights/organization/the_psychology_of_change_management
Prochaska, J O and DiClemente, C C (1994) The Transtheoretical Approach: Crossing
the traditional boundaries of therapy, Dow-Jones/Irwin, Homewood, IL
Towers Watson (2012) [accessed February 2014] Clear Direction in
a Complex World: Change and Communication ROI Study Report [Online]
http://www.towerswatson.com/en-GB/Insights/IC-Types/Survey-Research-
Results/2012/03/Clear-direction-in-a-complex-world-2011-2012-change-and-
communication-ROI-study-report
References
Bridges, W (2009) Managing Transitions: Making the most of change, 3rd edn,
Nicholas Brealey, London
Campbell, H (2014) Managing Organizational Change: A practical toolkit for leaders,
Kogan Page, London
Carloppio, J (2010) Change Management Institute Conference Presentation,
Sydney, Australia
Kelman, H (1958) Compliance, identification and internalization: three processes
of attitude change, The Journal of Conflict Resolution, 2 (1), pp 51–60
Larkin, T J and Larkin, S (2006) Communicating Big Change, 3rd edn, Larkin
Communication Consulting
Lewin, K (1936) Principles of Topological Psychology (republished by Munshi Press in
2007)
Lewin, K (1947) Frontiers in group dynamics: concept, method and reality in social science;
social equilibria and social change, Human Relations, 1 (1), June, pp 5–41
Meyer, C (2010) The Frontier of Change: Five Strategies to Accelerate Change to Critical
Mass [pdf ]
Rogers, E M (2003) Diffusion of Innovations, 5th edn, Free Press, New York
Senge, P M (1990) The Fifth Discipline, Doubleday/Currency, New York
Senge, P and Goodman, M (1999) ‘Generating Profound Change’, in The Dance of Change:
The challenges to sustaining momentum in learning organizations, Nicholas Brealey,
London
Schein, E (2010) Organizational Culture and Leadership, 4th edn, Jossey-Bass,
San Francisco, CA
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Personal and 12
professional
management
R ay W i c ks
Introduction
A change management role can be extremely demanding. It requires high levels of
personal commitment and resilience to remain motivated and perform well consistently
through the change initiative. Having the skills to deal with personal emotions and
actions, while managing the emotional fallout and challenges of organizational
change, requires deep inner resources and self-discipline. Developing skills in areas
such as personal leadership and emotional intelligence equips change managers with
the resources required to manage themselves more effectively and, importantly, to
lead others by example.
Change managers are instrumental in developing high-performing change teams,
who have a shared sense of purpose and the motivation needed to deliver successful
change. The development of strong interpersonal communication, effective influen
cing, negotiation and conflict management skills, mean they have a wide range of
personal approaches and strategies for dealing with diverse groups of people at all
levels of the organization. These skills give them the flexibility and confidence to deal
with the tough challenges that arise during any change initiative.
While it is important for change managers to understand the processes of change,
this chapter explores the similarly important personal qualities that a change manager
brings in delivering successful outcomes. It examines the critical aspect of a change
manager’s role of engaging with people to exchange information, gain their support,
facilitate collaboration and help resolve any tensions that change may create. Using
the theories and models of leadership and teamwork provides perspectives on how
today’s change manager may need to vary style and strategy to deliver the outcomes
required.
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Tip
C h a p t e r co n t e n t s
Introduction
Change managers provide leadership throughout the change initiative, both for
those over whom they have line authority and for those over whom they have no
such authority. The ability to build relationships, engage with people and influence
them to gain their support for a shared purpose is what helps to drive change initiatives
forward. Effectiveness in this role comes from being self-aware and continuing to
build appropriate skills.
Understanding personal strengths and weaknesses allied to understanding how
and when to use appropriate leadership styles and approaches are important com
ponents in delivering successful outcomes.
1. Personal effectiveness
For people who hold influential roles in change, personal effectiveness is both a goal
and a responsibility if success is to be achieved. Change managers set an example to
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others by taking responsibility for being as effective as possible for the delivery of
their part of the outcome.
People look to leaders and managers of change to be role models, demonstrating
the actions and behaviours for others to follow (‘walking the talk’). While change
managers will apply their own approach (Section A3), the flexibility needed to meet
the demands of change requires personal motivation to acquire the necessary skills
and knowledge. The focus in this section will be:
●● Knowing what to do during change and being able to use the tools that will
assist. This means using the experience of others and the understanding and
research from practitioners who suggest strategies and models that can be
used during change. The ability to interpret the knowledge so that it can be
applied to the local context is a vital component of understanding.
●● Applying appropriate skills flexibly during the change. This is the range
of skills needed to engage people in their individual and collective roles in
delivering change. This also includes the interpersonal skills necessary to over
come blockages, such as influencing, negotiating and overcoming conflict.
●● Leaving a positive legacy for future change. When the change has been com
pleted, has the learning been captured so that the organization and individuals
have an improved understanding and capability to deal with future change?
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emerging from a person’s life stories of experiences, whether these are positive or
negative.
Whether responsibility for change is as a sponsor, change manager or project
manager, leadership is likely to feature. While there can be a tendency to focus on
inspirational qualities, Goffee and Jones (2000) provided research showing that
in addition to a range of characteristics of inspirational leaders there were four un-
expected qualities required to win the hearts and minds of followers:
●● Reveal your weaknesses: this means being authentic, including not hiding or
denying any weaknesses (although not weaknesses seen as vital). For a change
manager this ‘honesty’ of approach will help to build trust and collaboration
with stakeholders and enhance their approachability.
●● Become a sensor: this requires developing an ability to collect and interpret
subtle interpersonal cues, detecting what is going on without others spelling it
out. This ‘intuition’ helps to gauge the responses necessary to connect with
others. There will be many individuals and teams to connect with during the
stages of change, each with their own agenda and challenges. Many change
initiatives have high-level sponsorship, and local leaders and managers will
make supportive statements. In practice, levels of support may vary and a
change manager who understands the challenges and can sense a need to look
beyond the words of support to deal with the reality is likely to achieve a
more positive response.
●● Practice tough empathy: effective leaders empathize fiercely with their people
and care intensely about their people’s work. They are also realistic and
understand when to be empathetically ‘tough’. This means giving people not
necessarily what they want, but what they need to achieve their best.
Change managers will often be responsible for delivering solutions that have
longer-term benefits but that create short-term ‘pain’. While understanding
and empathy is important to show an awareness of the issues, it is vital
that decisions and actions reflect what is needed for a successful outcome
to be achieved.
●● Dare to be different: this means capitalizing on unique qualities that a leader
may have such as imagination, creativity, innovation etc in order to inspire
and motivate others. Care needs to be taken that these are applied in a way
that is not perceived to be arrogant. Change leaders and managers cannot
deliver change alone. They need followers. It can be inspirational and
developmental to work with managers who look at challenges in a different
way in order to generate ideas and a range of solutions. The refreshing
characteristic of doing things differently and achieving a positive outcome
can be energizing when faced with the challenges of change.
The learning for change leaders is that the qualities that leaders have that make them
successful is that they inspire people by appealing to their hearts and minds. A change
manager would therefore benefit from developing a personal (and authentic) style
that works for them, including, where appropriate, acknowledging the qualities
listed above rather than attempting to copy superstar qualities attributed to a few
high-profile leaders.
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4. Leadership approaches
Delivering change outcomes will be influenced by the way that managers motivate,
gather and use information, make decisions and handle the obstacles and challenges
that come their way. The ‘style’ of leadership used to create the climate for change is
a factor that will influence how followers respond and, hence, eventual success.
The following are some views as to what effective leadership comprises.
C a s e s t u dy
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Six months later, progress was considered ‘disappointing’, staff engagement was low
and business as usual was back as the priority. More was needed to engage people at all
levels in order to deliver sustainable change.
The turning point came when the change team worked with local managers to help them
communicate and translate organizational strategy into meaningful and actionable steps
for the workforce – real progress was made.
The learning for the organization was that while inspirational speeches are important to
initiate change, and at various points during the change, they must be quickly supplemented
by ‘management’ tasks of translating vision into practical realities at a local level.
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Coercive This ‘do what I say’ approach can be very effective in challenging
situations or where working with difficult employees. But in most
situations, coercive leadership inhibits the organization’s flexibility and
dampens employees motivation.
Authoritative This is a ‘come with me’ approach. The leader states the overall goal
but gives people the freedom to choose their own means of achieving
it. This style works well when the change is drifting. It is less effective
when working with people who are more experienced than the
leader.
Affiliative The leader here has a ‘people come first’ attitude. This style is
particularly useful for building team harmony or increasing morale.
Caution here is where poor performance is allowed to go uncorrected.
Democratic This gives people a voice in decisions and hence builds organizational
flexibility and helps to generate ideas. This style can lead to time
spent in debate and meetings, with decisions taking longer and
employees potentially feeling ‘leaderless’.
Pacesetting A leader who sets high performance standards and exemplifies them
has a very positive impact on employees who are self-motivated and
highly competent. But other employees can be overwhelmed by the
leader’s demands for excellence.
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●● When establishing the need for change with stakeholders: inner leadership
relates to managing emotions, courage, energy, integrity; outer leadership
could include researching, presenting, influencing and negotiating.
●● Building the change team: inner leadership could include organizational
awareness, adaptability, taking initiative, drive and energy; outer leadership
on the other hand is likely to involve facilitating discussion, establishing
relationships, team building, problem solving and dealing with politics.
●● Communicating and engaging: inner leadership includes patience, analysis of
how to present to different audiences, managing emotions particularly when
dealing with resistance, adaptability and empathy; outer leadership could
involve persuading and engaging, presenting, listening, being assertive and
networking.
●● Consolidating progress: inner leadership involves social awareness, taking
time to reflect, steadiness of purpose; outer leadership involves reviewing
objectively, celebrating success and giving feedback.
In a diverse and distributed workforce there is a need to adapt approaches as the
needs of individuals and teams are modified. The same will apply as the phases and
progress of the change dictates. Change managers therefore have the challenge of
combining authenticity with approaches and styles that connect with the needs of
the individual, and with the evolving needs of the change itself.
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Summary
While ‘authority’ may carry some weight in leading change, the ability to engage
others and overcome resistance requires much more. Winning over people’s hearts
and minds requires leaders who, while being their authentic self, also have awareness
during the various phases of change of the need to operate flexibly. The challenges
that change brings will require inner strength and perseverance as well as the
application of a range of skills and strategies, which if they do not exist will need to
be learned.
Further reading
Bennis, W and Goldsmith, J (2010) Learning to Lead, Basic Books, New York
Blanchard, K (2000) Leadership and the One Minute Manager, Harper
Collins, New York
Collins, J (2001) Good to Great, Random House Business Books, London
Nayar, V (2010) Employees First, Customers Second, Harvard Business Books,
Boston, MA
Senge, P (2003) The Fifth Discipline, Nicholas Brealey Publishing, London
www.themindgym.com (creative problem solving)
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Introduction
Change managers consider how to set up the most appropriate team and combina-
tions of teams during a change initiative, those that will ensure the best chances of
success. Many different types of teams can be established during the course of a
change initiative. Building team effectiveness means developing teams that have
a strong shared sense of purpose, who plan and organize their work around that
purpose, and foster an atmosphere of openness and trust, so that they can perform
at the optimum level.
You cannot do it alone. Successfully delivering a change initiative requires building
a team or teams that have the ability and credibility to influence stakeholders and
engage and guide the organization through the change itself. Without strong teams
with a clear sense of purpose change initiatives seldom have the support, energy,
speed and sense of urgency to succeed.
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agreement and consensus among the team. Roles and responsibilities are
understood and they have clarified with the change manager the purpose,
why certain decisions were made and the assumptions they were based on.
The team’s energy is focused on the allocated tasks, and significant decisions
are made by the group following discussion and debate. Smaller decisions
may be delegated to individuals or small teams within the group.
Communication across the group is more open, commitment is strong and
there is a desire to resolve issues objectively.
●● Stage 4 – performing
The team has a sense of unity. They have a shared vision and are able to stand
on their own feet, using the change manager to deal with issues of links to the
sponsor or significant problems that require focus. The team embodies the
way of working collectively to achieve tasks, supporting each other through
the peaks, troughs and challenges that arise. They have the desire to improve
still further and learn from their experiences. The team has a high degree of
autonomy and the change manager feels comfortable to delegate.
●● Stage 5 – adjourning (also known as mourning)
When the change is successfully completed, its purpose fulfilled, everyone can
move on to new things, feeling good about what has been achieved. The
change manager will need to be empathetic, recognizing the potential sense of
loss of the team dynamic and the insecurity from the change.
The phases of team development described by Tuckman are not discrete, such that
once a phase is reached the team moves forward to the next stage. While this may
be the usual progression it is not the inevitable progression. In practice, teams may
go backwards or oscillate between the stages, or just get stuck, caused by factors
such as change in personnel, major differences of opinion, changes in strategy,
variation in performance standards or commitment of team members, or failure to
meet targets.
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In the three sections that follow, the change scenario set out in the box below is used
to illustrate how three comparable views – Glaser and Glaser, John Adair and Patrick
Lencioni – can be applied to provide perspectives and understanding on the creating
of a high-performing change team.
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In the scenario above, team members are taken from the various business
units. Members of the team are unlikely to know each other and it may take
time for trust to be earned. Delivering the initiative requires relationships
with each business unit and there is potential for pressure for ‘favours’/
differential treatment. Any lack of consistency will impact on trust.
●● Dysfunction 2: fear of conflict
Without trust people will not have the open and constructive debates that are
necessary to arrive at better thought-through decisions. A team that fears
conflict will create an environment where politics and personal attacks thrive,
and waste time and energy. Teams that have no fear of conflict will discuss
openly the most important and difficult issues and actively seek and explore
ideas from all team members.
●● Dysfunction 3: lack of commitment
If a team has not aligned behind a purpose then the individual members who
did not agree with the strategy will ultimately be less committed to that
approach. A team that fails to commit will have ambiguity around direction
and priorities, lack confidence and fear failure. It will engage in excess
analysis and discussions, and lack decisiveness.
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Summary
While change is becoming more complex and demanding, what we observe from the
above is that building an effective team to deal with the challenges change brings
has broadly consistent requirements. In the scenario used here, it requires a change
manager who is able to galvanize a group of diverse individuals into a team, through
its various stages of development. It requires adapting leadership style during the
team’s evolution while remaining focused on providing purpose and direction, both
individually and collectively, in order to deliver a successful outcome. It requires
managers who can provide clear direction and standards when needed but are able
to take a supportive role when team capability matures to a stage where manage-
ment is more subtle, intervening on an as-needed basis. Of crucial importance where
the drive from sponsors for results contrasts with the ability or willingness of the
business to accept change is the balance that is achieved between achieving the task
and sustaining the energy, morale and capability of the people.
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Further reading
Introduction
Change managers who demonstrate strong emotional intelligence are more effective
in dealing with the challenges that are inevitable during any change, particularly the
people and emotional aspects of change. They are self-aware, can manage their own
emotions and deal with others’ emotions so are better placed to influence others
using appropriate interpersonal skills. This results in lower levels of anxiety or stress
during change, both for themselves and for others around them. They recognize
early warning signals of unhelpful emotions and step in to deal with these effectively
before issues escalate to a point where progress of the change initiative is hindered.
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Emotional intelligence is a type of social intelligence that involved the ability to monitor
one’s own and others’ emotions, to discriminate among them and to use the information
to guide one’s thinking and actions. (Salovey and Mayer, 1990)
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3. Resilience
Developing emotional intelligence helps to build personal resilience, which is essen-
tial for coping with the challenges of bringing about successful change. Resilience is
an awareness of one’s own feelings and emotions, balanced with an ability to avoid
being ‘swamped’ by them. In other words, even when aware of personal feelings of
cynicism or frustration that can accompany change, a manager will continue to
make effective decisions and fulfil accountabilities. This needs an ability to maintain
focus on results or actions while also being able to express personal feelings effectively.
Managers with resilience have the ability to adapt and bounce back when change
does not go as planned. Resilient managers do not dwell on failures; they acknowledge
the problem and focus on what is needed to get change back on track, while learning
from the experience.
Building resilience requires:
●● practising an ability to think positively;
●● maintaining perspective;
●● developing a strong network of supportive relationships;
●● ability to cope by taking care of mind and body;
●● ability to adapt and bounce back when things do not go as planned.
The work of Martin Seligman (2006) suggests that it is possible to train the mind to
think positively and learn from our experiences. With a belief that if we are in con-
trol of our minds we can choose the reaction to any given situation then it is possible
to remain calm and look objectively at any given situation.
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Tip
Tip
Handling pressure may need a release valve. It can help to have people
to turn to who listen, are non-judgemental and can provide suggestions and
perspectives. Identify a support group of individuals to whom you can turn
when the going gets tough, preferably outside your working environment.
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Summary
While emotional intelligence can be included as part of change managers’ skills in
leadership, its potential impact – both positive and negative – makes it a worthy
subject for separate focus. Controlled and positive emotion is an ingredient that can
provide excitement and energy to a change. However, where a change manager is
insensitive to more negative aspects of emotion that can occur – at any stage during
change – and fails to channel them towards successful outcomes, then the change can
be compromised. Understanding what emotional intelligence means and taking
responsibility to develop personal capability is a useful asset to facilitate change.
3 What part does resilience play in change management and how can
resilience be developed?
Further reading
Introduction
Change managers recognize the need to adopt different strategies and tactics,
depending on the people involved and on the situation. For example, some people
need reasoned logic and facts, while others respond better to an approach that
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1. Sources of power
Power is a source of influence and change managers will need to understand the
source of their power as part of their ability to deliver effective outcomes. Change
managers can have formal power by virtue of their position or perhaps because of
being experts in their field, but influence will be well received if accompanied by
personal qualities and skills. One of the most notable studies on power was
conducted by the social psychologists French and Raven (1959) who identified five
bases of power: legitimate, reward and coercive (positional power sources); expert
and referent (personal power sources) – as set out in the sections below.
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3. Influencing models
Building on the push/pull modes of influence the following two models develop the
understanding of how strategies can be used to influence others. The influencing
strategies to be used will depend upon the situation, the ‘natural’ style of the change
manager together with the anticipated and actual response of the individual or group
to be influenced.
Social Proof This principle can be used by creating excitement around the
change. The aim here is to gain support from influential people in
the organization by building a sense of energy that the
stakeholders will want to be a part of.
Liking The aim here is to build good relationships with stakeholders and
ensure time and effort is given to build trust and rapport. Care
needs to be taken not to try too hard to be liked such that
authenticity is lost.
Authority Here managers can use both their own authority and that of
influential and powerful others.
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C a s e s t u dy
Summary
While change will originate largely from a business opportunity or need, successful
implementation relies heavily on people. People need to be persuaded of the need for
change and the extent and detail of support that will be required. For those involved
in leading and managing change, influencing skills are therefore critical. Reliance on
the various forms of power often present in change initiatives will not on its own
create the buy-in and enthusiasm needed to achieve success.
The ability of a change manager to identify the difference between resistance,
superficial compliance and real commitment is a key component of influencing.
The flexibility to respond to those differences by applying a range of strategies such
as those identified above will be a significant contributor to a successful outcome.
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2 How would you describe the difference between the ‘push’ and
‘pull’ approaches to influencing?
3 What are the relative merits and challenges arising from the principles
of ‘liking’ and ‘authority’ in Cialdini’s six principles of influence?
Further reading
Section E: Negotiating
Introduction
Change managers will over time deal with challenges that arise due to people having
differing interests and conflicting needs that require negotiated solutions. Change
managers will also need to negotiate levels of support and cooperation, particularly
from internal stakeholders, in order to deliver a successful outcome. This is particu-
larly likely where a stakeholder is required to provide time, resources, effort and
commitment that could divert attention from their own responsibilities and priorities.
Negotiation will be considered effective when it delivers a positive outcome while
maintaining good or enhanced relationships between the negotiating parties.
Maintaining a good relationship is particularly important with internal stakeholders
from whom ongoing or future support may be required (Chapter 4). This section
looks at the different approaches to negotiation, a view on a practical strategy for
negotiation and the emotional and cultural implications of negotiation.
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1. Defining negotiation
Negotiation is ‘a two-way communication to reach an agreement when both parties
have a combination of shared and opposed interest’ (Fisher and Ury, 1999).
Negotiations are a ‘vehicle of communication and stakeholder management. As such
they play a vital role in assisting to obtain a better grasp of the complex issues,
factors and human dynamics behind important issues’ (Alfredson and Cungu, 2008).
The change manager may use strategies of both influence and negotiation but
there is a difference between the two. Negotiation and influence (Section D), both
involve skills and strategy, but negotiation is a two-way process where the possibility
exists for both parties to trade/benefit, whereas influence is more one-way in the
sense that while the interaction may be two-way the aim is to get another person
or people to believe or act in a certain way without necessarily receiving anything in
return.
2. Approaches to negotiation
Stephen Covey (2013) suggests that while much of our background may focus on
winning or losing, particularly in sporting terms, when it comes to negotiation the
aim should be win–win. This approach focuses on cooperation, with all parties feeling
respected and committing to subsequent action.
This can be contrasted with change managers who at the first sign of challenge
revert to an authoritarian approach, perhaps based on the power of sponsorship to
get their way and face the danger of creating a win–lose situation. They may achieve
what they want and thus ‘win’ but the approach can leave the other party feeling
they have ‘lost’. In such cases the ‘losing’ party may comply but the level of cooperation,
trust and whole-hearted commitment will be diminished. Successful outcomes
require give and take between people or teams, and negotiation to resolve any issues
or tensions.
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●● Relationships
Relationships are created and sustained through a genuine respect for the
other person and their point of view. In practice this may mean sustaining
conversations to achieve a real understanding of the issues involved.
●● Agreements
Agreements help to clarify expectations between the parties involved in the
negotiation. They provide a mutual understanding of what is required in
terms of: results, parameters, resources, accountability and consequences. The
agreement represents win–win with the change manager and other parties to
the negotiation working to support achievement of its elements.
●● Systems
Win–win solutions require systems that are consistent with the aims of the
change. Where cooperation is required then systems should measure and
reward its achievement.
C a s e s t u dy
A joint project seeking to combine engineering expertise with medical experience to solve
health problems found difficulties in negotiating operating protocols and procedures. What
was rewarded and valued varied greatly between the two populations and this interfered
with cooperation and trust. Time invested in understanding the respective values and needs
of each group unlocked the impasse and enabled them to find measurement and reward
systems that satisfied their respective needs.
3. Phases of negotiation
Fisher and Ury (1999) suggest that successful negotiation has four phases: preparation;
exchange information and disclose necessary details; bargaining; and closure. These
are set out below.
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3.1 Preparation
This is where data and information are acquired that may prove necessary to bring
a situation to agreement. During preparation, it helps to look for win–win agree-
ments that focus on shared interests. This opens the door to finding positive solu-
tions acceptable to all stakeholders to the negotiation.
Tip
As change can result in resistance, a change manager should also prepare a fall-back
position before entering into bargaining. A good fall-back position would include
details on the following:
●● A ‘best alternative to a negotiated agreement’.
●● A ‘worst alternative to a negotiated agreement’.
●● A ‘walk away point’. This is the point at which parties agree to step away
from the issue to regroup later to consider the options – or end the
negotiations because the options are unacceptable.
●● A ‘zone of possible agreement’ where interests overlap with the other
negotiating parties.
3.3 Bargaining
It is at this stage that most of the interaction between parties takes place and individuals
display a range of negotiating styles and tactics to make their case (Section E4).
It is during bargaining that the risk of unsuccessful or troublesome negotiations
is highest.
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3.4 Closure
This phase formally seals and binds parties into the outcomes of the agreement.
4. Conducting negotiations
Looking at the negotiation itself, a further subdivision of four steps (Fisher and Ury)
offers a useful process for change managers who may be conducting negotiations in
a challenging business climate.
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criteria. Objective criteria consist of value, costs, standards, efficiency or any prin
ciple agreed as fair and reasonable. Three basic points need to be remembered:
●● discussions on each issue to be a mutual search for objective criteria;
●● be both reasonable and open to reason as to which standards should be used
and how they should be applied;
●● never bend to pressure, only to principle.
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C a s e s t u dy
A financial services organization found that change originating from HR was perceived by
other business units as being ‘soft’ and as a result negotiating implementation agreements
was difficult. By focusing on the business benefits of the change, and using business units
as sponsors of the change, HR strategies were seen as more acceptable and implementation
significantly improved.
Reflecting on the cultural implications must be a factor that the change manager
takes into account when negotiating. Whether the differences are in terminology
used, social etiquette or beliefs and attitudes, these could become barriers to success-
ful negotiation if they are not recognized and addressed. Frequently checking to en-
sure there is shared understanding becomes even more important when the cultural
differences are sensitive or deeply embedded.
Summary
Negotiating is a process that can be approached in many ways. No matter what
strategy a change manager chooses, success lies in preparation. The key to negotiat-
ing a beneficial outcome is the negotiator’s ability to consider all elements of the
situation carefully and identify and think through the options. At the same time,
negotiators must be able to keep events in perspective and be as fair and honest as
circumstances allow. By looking at the other party as a ‘partner’ rather than as
an opponent, and by working together, negotiators have an opportunity to create
the win–win solutions that benefit both sides.
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Further reading
Fisher, R and Ury, W (2014) Getting Past No: Negotiating with difficult
people, Random House Business Books, London
Lum, G (2011) The Negotiation Field Book, 2nd edn, McGraw-Hill, USA
Morrison, T and Conaway, W A (2006) Kiss, Bow, or Shake Hands,
Adams Media, Avon, MA
Introduction
Change managers are frequently faced with conflict situations that need resolving in
order to avoid unnecessary delays to the change initiative. There is likely to be more
conflict in environments with higher levels of uncertainty and ambiguity, more
diverse groups of stakeholders, unclear priorities and tight resource constraints.
Change managers can anticipate disruptive conflict, and find timely resolutions to
deal with it. However, conflict is not always negative – it can be used for generating
more creativity and improving the quality of decisions. All those responsible for
change, from the sponsor to those responsible for local implementation, face change
scenarios involving tensions that could result in conflict. Handled sensitively, but
with an understanding of the needs of the initiative, conflict can be a creative force
and can highlight problems and possibilities. Conflict not dealt with or handled
badly leaves fractured relationships and reduces the potential for a successful
outcome to the change.
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2. Sources of conflict
The first logical steps in resolving conflict is to identify the problem and then identify
what caused the conflict. Psychologists Art Bell (2002) and Brett Hart (2000) identified
eight sources of conflict, as listed below.
Conflicting needs
Change will involve competing for scarce resources, recognition, and power. Since it
is likely that these will be needed to meet existing and emerging objectives, any claim
that threatens their availability will create conflict.
Conflicting styles
Those seeking to deliver change will differ in their approach to dealing with people
and problems. These differences create conflict. Change managers who understand
how to accept and deal with conflicting styles can harness the potential of differing
perspectives that the conflict creates.
Conflicting perceptions
People see the world through their own lens and differences in perceptions of events
can create conflict. Conflict can occur when a change team with a variety of assigned
roles perceives that work allocated to a member of the team does not match assigned
responsibilities, creating rumour and gossip as to why.
Conflicting goals
Change can create a moving target of deliverables as stakeholders negotiate and
renegotiate according to evolving circumstances. The tension of time versus quality
is a regular cause of conflict, as is the capability to deliver versus resource availability.
C a s e s t u dy
A sponsor and business leader initiated a significant change to supply chain arrangements.
The early briefings were communicated in ‘big-picture’ terms to the team. The lack of detail
created confusion and a multiplicity of views and opinions. Some members of the team
were comfortable working with ambiguity, and others needed greater clarity to be able to
operate effectively. The situation was further complicated by a reluctance of some team
members to seek clarification from the leader for fear of being considered to lack strategic
capability. The situation was resolved when the business leader appointed a deputy, who
was more analytical, to be the ’bridge’ from the business to the change team.
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Conflicting pressures
Change by its nature can create pressure within organizations, and where pressure to
deliver business as usual is combined with a demand for change, tensions and conflict
can occur. Pressure is further increased where demands to deliver better, cheaper,
faster are added.
Conflicting roles
Situations can exist where one team member may view a task as his or her responsibility
but where roles are not clear; others may see the task as their own and conflict can
result.
Unpredictable policies
Whenever an organization’s policies are changed, inconsistently applied or nonexist-
ent, misunderstandings are likely to occur. People need to understand their organiza-
tion’s rules and policies. The absence of clear policies, or policies that are constantly
changing, can create an environment of uncertainty and conflict.
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Tip
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assertiveness is defined as behaviours that are used to meet personal needs; coopera
tiveness is defined as behaviours that are used to meet the needs of others. They
argued that people typically have a preferred style for dealing with conflict. However,
they also noted that different styles were most useful in different situations. They
developed the Thomas-Kilman Conflict Mode Instrument (TKI) which helps to
identify the style a person tends towards when conflict arises.
The styles included are:
●● Competitive: people who tend towards a competitive style take a firm stand
and know what they want. They usually operate from a position of power
drawn from factors such as position, rank, expertise or persuasive ability.
This style can be useful during change when decisions need to be made
quickly; when the decision is unpopular; or when defending against someone
who is trying to exploit the situation for their own purpose. However, it can
leave people feeling bruised, unsatisfied and resentful when used in less urgent
situations such as prolonged periods of change.
●● Collaborative: people tending towards a collaborative style try to meet the
needs of all people involved. These people can be highly assertive but, unlike
the competitor, they cooperate effectively and acknowledge that everyone is
important. This style is useful when a manager needs to bring together a variety
of viewpoints to get the best solution; when there have been previous conflicts
in the group; or when the situation is too important for a simple trade-off.
●● Compromising: people who prefer a compromising style try to find a solution
that will at least partially satisfy everyone. Everyone is expected to give up
something. Compromise is useful when the cost of conflict is higher than the
cost of losing ground, when equal strength opponents are at a standstill and
change deadlines are approaching.
●● Accommodating: this style indicates a willingness to meet others’ needs at the
expense of the person’s own needs. The accommodator often knows when to
give in to others, but can be persuaded to surrender a position even when it is
not warranted. This person is not assertive but is highly cooperative.
Accommodation is appropriate when the issues matter more to the other
party, when peace is more valuable than winning, or when a manager wants
to be in a position to collect on this favour. However, people may not return
favours, and overall this approach is unlikely to lead to the best outcome.
●● Avoiding: people tending towards this style seek to evade the conflict entirely.
This style is typified by delegating controversial decisions, accepting default
decisions and not wanting to hurt anyone’s feelings. It can be appropriate
when the controversy is trivial, when someone is in a better position to solve
the problem or where it is a short-term measure in waiting for a better moment.
However, in many situations this is a weak and ineffective approach to take.
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Section F: Conflict Management 531
Compromising Each party achieves some of its Neither party fully achieves its
objectives. own objective.
Reduces the tension of a The solution may be weakened
‘win–lose’ battle. to the point of being
Facilitates teamwork. ineffective.
Maintains a harmonious A lack of real commitment on
relationship with the other either side.
party involved.
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Summary
This section has highlighted the tensions, positive and negative, that create a need for
conflict management. As has already been seen, the wide variety of stakeholders –
many with emotional investment in its outcome – will mean tensions and differences
of opinion. Lencioni (2002) (Section B4) argued about the vital importance of con-
flict as evidence that a team is functioning openly and effectively. What is clear is that
in change of any significance with a team of engaged people, change managers will
have to deal with conflict situations. The option of avoidance, unless temporary,
is not one that will feature in the options of an effective change manager. Conflict
will happen and the emotionally intelligent, skilled change practitioner will face the
challenge, reflect, devise an appropriate strategy and deal with it!
Further reading
References
Adair, J (2009) Effective Team Building: How to make a winning team, Pan Books, London
Alfredson, T and Cungu, A (2008) [accessed 20 February 2014] Negotiation Theory and
Practice: A Review of the Literature [Online] http://www.fao.org/docs/up/easypol/
550/4-5_negotiation_background_paper_179en.pdf
Baron, R A (1990) Conflict in organizations, in Psychology in Organizations: Integrating
science and practice (pp 197–216), eds K R Murphy and F E Saal, Hillsdale, NJ
Bar-On, R (2000) Emotional and social intelligence: insights from the emotional quotient
inventory, in Handbook of Emotional Intelligence, eds R Bar-On and J D A Parker,
Jossey-Bass, San Francisco, CA
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References 533
Bell, A (2002) [accessed 11 March 2002] Six Ways to Resolve Workplace Conflicts, McLaren
School of Business, University of San Francisco [Online] http://www.usfca.edu/fac-staff/
bell/article15.html
Bennis, W (1994) On Becoming a Leader, Addison-Wesley, Reading, MA
Bryman, A (1992) Charisma and Leadership in Organizations, Sage, London
Cameron, E and Green, M (2012) Making Sense of Change Management: A complete guide
to the models, tools and techniques of organisational change, 3rd edn, Kogan Page,
London
Cialdini, R B (2006) Influence: The Psychology of Persuasion, Harper Business, New York
Cohen, D S (2005) Building guiding teams: creating a climate for change, in The Heart of
Change Field Guide: Tools and tactics for leading change in your organisation, Harvard
Business Press, Boston MA
Covey, S R (2013) The 7 Habits of Highly Effective People, Simon and Schuster, London
Drucker, P (2005) [accessed 20 April 2014] Managing Oneself [Online] http://hbr.org/
2005/01managing-oneself/ar/1
Fisher, R and Ury, W (1999) Getting to Yes: Negotiating an agreement without giving in,
2nd edn, Random House, London
French, J P R and Raven, B (1959) The Bases of Social Power, in Studies in Social Power,
ed D Cartwright, pp 150–67, MI Institute for Social Research, Ann Arbor, MI
George, B (2003) Authentic Leadership: Rediscovering the secrets to creating lasting value,
Jossey-Bass, San Francisco, CA
Glaser, R and Glaser, C (1992) Team Effectiveness Profile, Organizational Design and
Development, King of Prussia, PA
Goffee, R and Jones, G (2000) (accessed February 2012) Why should anyone be led by you,
Harvard Business Review, September–October [Online] http://hbr.org/2000/09/why-
should-anyone-be-led-by-you/ar/1
Goleman, D (1998) [accessed 7 April 2014] What makes a Leader?, Harvard Business
Review, Nov–Dec [Online] http://hbr.org/best of hbr1998/
Goleman, D (2000) [accessed 10 May 2014] Leadership that gets results, Harvard Business
Review, Mar–Apr [Online] http://hbr.org/product/leadership-that-gets-results/an/
R00204-PDF-ENG
Hart, B (2000) [accessed 14 April 2014] Conflict in the Workplace, Behavioral Consultants,
PC [Online] http://www.excelatlife.com/articles/conflict_at_work.htm
Heifetz, R and Laurie, D (1997) The work of leadership, Harvard Business Review, 75 (1),
Jan–Feb, pp 124–34
Kilman, R H (2011) Celebrating 40 Years With the TKI Assessment: A Summary of My
Favorite Insights [Online] https://www.cpp.com/PDFs?Author_Insights_April_2011.pdf
Leary, K, Pillemer, J and Wheeler, M (2013) [accessed 19 February 2014] [Online] http://
hbr.org/2013/01/negotiating-with-emotion/ar/2
Lencioni, P (2002) The Five Dysfunctions of a Team: A leadership fable, Jossey-Bass,
San Francisco, CA
Lipman-Blumen, J (2002) The age of connective leadership, in On Leading Change,
eds F Hesselbein and R Johnston, pp 89–101, Jossey-Bass, New York
Mayer, J D and Salovey, P (1997) [accessed 26 March 2014] What is Emotional Intelligence?
[Online] http://www.unh.edu/emotional_intelligence/EI%20Assets/Reprints...EI%20
Proper/EI1997MSWhatIsEI.pdf
MindTools.com [accessed 15 February 2014] Conflict Resolution – Resolving Conflict
Rationally and Effectively [Online] http://www.mindtools.com/pages/article/newLDR_
81.htm
Musselwhite and Plouffe [accessed 20 April 2014] When Your Influence is Ineffective, HBR
Blog Network
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535
Organizational 13
considerations
T i m Co l e , Ma r t i n Lu n n , U n a McG a r v i e a n d
Er i c R o u h o f
Introduction
The four sections in this chapter reflect decisions made to include these topics in the
CMI CMBoK. None of these topics is the particular responsibility of a change manager
(more than any other manager), and no specialist knowledge is expected. However,
a ‘blind spot’ regarding any of them, and failure to seek appropriate specialist support
at the right time, could derail a change initiative. The authors who have contributed
to this chapter are specialists in their own fields. They have been asked to offer here
a brief introduction to their subjects. These are intended to: 1) equip change managers
with an understanding of key concepts; and 2) enable change managers to work
effectively with relevant specialists in their own situations.
C h a p t e r co n t e n t s
Section A: The change manager and Human Resources (HR)
Section B: Safety, health and environment issues in change
Section C: Process optimization in organizations
Section D: Financial management for change managers
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536 Chapter 13: Organizational Considerations
Una McGarvie
Introduction
Human Resources (HR), or Human Resource Management (HRM), refers to how
an organization effectively harnesses and maximizes the value of its people to achieve
its strategic goals. Organizations can be viewed as systems. HR understands the people
elements of the system and how changes to one part of the system can have repercus-
sions for other areas across the organization. In particular, HR understands how the
organization engages with, incentivizes, develops and manages its people. Crucially,
it has the management information required to understand the totality of the workforce,
its demographics and capabilities, the current baseline and future projections of
workforce composition.
Change is about people; all change affects someone. In order to plan and manage
change effectively it is important to understand who is affected, when, where, how
and why. HR understands which people elements within the organizational system
need to align not only to overcome resistance to change, but also to embed and
reinforce change.
1. Engaging with HR
At the start of the change process an analysis is undertaken of the proposed change,
its impact and the readiness for change of those affected. This involves looking at a
range of factors that affect people, including the existing processes, technology,
organizational structure, organizational culture, values and skills. Early involvement
of HR enables a timely assessment of the people factors affected and solutions
identified that are most likely to succeed (Table 13.1).
At the end of the change process HR can help to embed and sustain change.
This is covered in more detail at the end of this section.
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Section A: The Change Manager and Human Resources (HR) 537
Pay and Reward How individuals are remunerated, It is important that the new ‘right’
rewarded and incentivized, including behaviours are rewarded and the old
non-financial incentives such as ‘wrong’ behaviours are not, also that
improved holiday entitlement. the incentives chosen are relevant,
fair and cost-effective.
Recruitment and The process and approach an Change often involves redefining,
Selection organization takes to recruiting new eliminating or creating roles and
people. It also covers placing people recruiting people to the change
in roles within an organization, team itself. HR can assist with
either on level transfer or promotion recruitment, arranging temporary
(or occasionally downgrading). contracts and transfer agreements
for people.
Being seen to be fair, open and
non-discriminatory in selecting
people to roles is vital to engage
people in the change and limit
dissatisfaction.
Learning and Ensuring people have the right skills Change requires learning new
Development to do their job and establishing a things and unlearning old habits.
learning culture that supports and Learning encourages people to
enables achievement of strategic engage with change. Learning
goals. professionals can ensure a suitable
learning strategy is developed to
support change.
Workforce and Having the right people, with the Understanding where people work
Talent Planning right skills, in the right place at the and what skills are available. For
right time. Understanding the example, relocating work may make
workforce’s current demographics, economic sense but is not viable if
skills and experience and those the required skills are not available
needed to meet future in the new area.
requirements.
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Ta b l e 13.2 continued
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Ta b l e 13.2 continued
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Section A: The Change Manager and Human Resources (HR) 543
C a s e s t u dy
An international IT company had a 10-year outsourcing contract coming to an end and had
to prepare for a new organization to take it over. Legislation required a consultation period
of one month. However, the company operated a three-month notice period to give people
the chance to look for other work if they did not want to transfer. This caused conflict,
because the recipient of the outsourced service wanted the transfer to be implemented
quickly. They focused only on the IT and service aspects, not on the needs of the people.
Consultation with HR ensures not only that legal requirements are met but also that
organizational HR policies are adhered to. Proper consultation facilitates the effec-
tive and ethical transition of people to new employment arrangements.
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544 Chapter 13: Organizational Considerations
Learning and This may cover how many days’ Understanding people’s
Development learning a person can expect in expectations around learning
a year or whether a financial can help influence how change
sum is allocated per individual. initiatives approach the
It could also cover how learning development of new skills and
and development is accessed, expertise in the workforce.
defining the responsibilities of
the individual and the
organization.
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Section A: The Change Manager and Human Resources (HR) 545
Ta b l e 13.3 continued
HR Policy Description of Policy Considerations for Change
Managers
Recruitment and This explains the recruitment Change may require alteration
Selection process, how eligibility for jobs to job roles or recruiting new
is determined, how skills or skills into the organization
experience are assessed, and quickly. Understanding the
the types of assessment that correct process for filling roles
may be used. will ensure that people view the
process as fair and open.
Travel and This describes how the Change projects often require
Subsistence organization refunds and people to engage in travel.
manages payment for workers These policies ensure that
who are required to travel as expenses incurred are
part of their job role. It can allowable. These costs may
include mileage allowances, need to be factored into the
meal allowances and types of change business case.
travel that are allowed.
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546 Chapter 13: Organizational Considerations
C a s e s t u dy
HR policies can have a major impact on how change is undertaken. Time must be
included to consult and negotiate effectively. Failure to follow such policies can lead
to disputes and escalation to external bodies for resolution.
Tip
5. Employee relations
Employee relations (ER) or industrial relations (IR) is concerned with managing
the relationship between an organization’s management and representatives of its
employees. Such arrangements take various forms in different countries, including
trade unions, confederations, federations, councils, alliances, committees, congress
and labour unions. The roles of these bodies varies between countries and is influ-
enced by legislation, membership numbers, organizational size, the sector in which
they operate and location.
Organizations need to understand the customs, practices and legal requirements
at play in the countries in which they operate. They must use this knowledge to engage
appropriately with employee representatives, especially during times of change.
It cannot be assumed that what works well in one country will also work in another.
As labour becomes more mobile and as organizations expand into new global
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Section A: The Change Manager and Human Resources (HR) 547
markets there is additional pressure to consider not just how to engage with workers
at a local or national level but also at a wider global level.
C a s e s t u dy
In 2008 Britain’s biggest trade union, Unite, merged with North America’s largest private
sector union, the United Steelworkers Union (USW), to create a global union called Workers
Uniting. The global union undertakes collective bargaining and develops common strategies
to prevent reductions in members’ rights. In addition, Unite is also affiliated to a number of
global federations that represent and promote the rights of workers operating in specific
industries around the world.
Tip
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548 Chapter 13: Organizational Considerations
There are significant benefits of having employee bodies to work with during the
change process. Such bodies can help to communicate information, provide support
for learning and identify learning gaps (especially where employees may feel too
vulnerable to acknowledge skill deficiencies). These bodies can also support the
priority of people and provide an appropriate channel for people issues. This helps
to ensure that the focus of the change initiative does not overemphasize task elements
at the expense of the people. Identifying who to engage with and the best mechanism
for doing so should be considered as part of establishing the governance structure
and stakeholder engagement strategy for any change programme (Chapter 4).
C a s e s t u dy
A public sector organization with over 70,000 employees uses impact assessments as part
of all their change programmes. These review the impact of change initiatives on people.
The completion of employee impact assessments is confirmed as part of the project review
processes.
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Section A: The Change Manager and Human Resources (HR) 549
●● Design organizations around their business strategy and what they are in
business to do.
●● Organizations do not exist in a vacuum. External changes can affect how
they operate, where they operate and potentially their fundamental business
strategy (Chapter 2).
●● Effective organizational design can be resource intensive and take time.
Organizational design is best undertaken by those with a specialist understanding of
organizational behaviour and expertise in applying organizational design techniques.
Chapter 11, Section A3.4 describes some Organization Development (OD) levers for
sustaining change.
C a s e s t u dy
It is unlikely that there is a single design that can work for an organization. Effective
performance may be achieved through a variety of configurations. Organizational
design needs to identify a range of alternatives from which the most appropriate
option is selected (Table 13.4). Nadler et al (1992) suggest four steps to organiza-
tional design:
Step 1: determine what is not working well, identify performance gaps and
review how current performance relates to the desired strategy.
Step 2: establish a strategic design or ‘umbrella structure’ focusing on the top
layers of the organization, roles, structures and corporate governance.
Step 3: incorporate the detail such as workflows, process, dependencies,
relationships and people factors that drive or inhibit change.
Step 4: generate the plan for implementation, how it will be monitored and how
issues will be managed.
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Ta b l e 13.4 Common types of organizational design and implications for their use
Flat Structures Very few layers between the CEO and the Positives
rest of the organization. Power can be based Speedy decision making with fewer layers for approvals.
CEO
on relationships and budgets. Enables faster and clearer communications. People at the bottom
Sales Production Distribution
Distribution
Finance
Director
HR are closer to and know those at the top (and vice versa).
Negatives
Fewer promotion opportunities. Reward options need to
compensate for lack of promotion. Roles and accountabilities can
become blurred. May not be sustainable as the organization grows.
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Ta b l e 13.4 continued
Store
4
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552 Chapter 13: Organizational Considerations
Tip
Summary
This section has outlined some significant aspects of HR in organizations, focusing
on its relationship with change management. The level of HR support varies from
organization to organization, and the range of expertise described in this chapter
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Section A: The Change Manager and Human Resources (HR) 553
may not be available in every situation. Where appropriate expertise is not available
internally, change initiatives may need to use external specialists instead. However
the resource is provided, change initiatives benefit from early consultation and ongoing
alliance with HR colleagues.
The author would like to thank Ann Gaskell, Head of Projects and Programmes at
Steria UK, and Chris D Bell, HR Systems Manager at HM Revenue and Customs,
UK for their contributions to the case studies, which help bring Section A to life.
Further reading
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554 Chapter 13: Organizational Considerations
References
CIPD (2003) [accessed 24 January 2014] Reorganising for Success in the 21st Century;
CEO’s and HR Managers’ Perceptions [Online] http://www.cipd.co.uk/NR/rdonlyres/
C3F16CBB-E53E-4F40-9A5C-2EABB2430941/0/org_success_survey.pdf
CIPD, Definition of HR Policies [accessed 24 January 2014] [Online] http://www.cipd.co.uk/
hr-resources/factsheets/hr-policies.aspx
Entrekin, L and Scott-Ladd, B D (2014) Human Resource Management and Change:
A practising managers guide, Routledge, London
Martin, D (2006) The A-Z of Employment Practice, Thorogood, London
Nadler, D A et al (1992) Organizational Architecture: Designs for changing organizations,
Jossey Bass, San Francisco, CA
Nadler, D A and Tushman, M L (1997) Competing by Design: The power of organizational
architecture, Oxford University Press, Oxford
Roper, I, Prouska, R and Chatrakul Na Ayudhya, U (2010) Critical Issues in Human
Resource Management, CIPD, London
Stanford, N (2007) Guide to Organization Design: Creating high-performing and adaptable
enterprises, Profile, London
Eric Rouhof
Introduction
This section gives an introduction into SHE (safety, health and environment)
management and describes the interaction with change management. (The author
acknowledges the variety of terms used around the world for this field: health, safety
and environment (HSE), environment, health and safety (EHS), health and safety
(H&S) and others.)
The section describes the relationship between a change manager and SHE issues,
and indicates some tools to be used. Examples are included to clarify key concepts.
Change managers are not expected to possess specialist expertise in SHE issues, but
they should be able to identify potential areas of risk. They should also know when
to seek and use the expertise of appropriate specialists.
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Ta b l e 13.5 S ome examples of legal and other regulatory requirements
regarding SHE
GENERATIVE
HSE is how we do business
round here
ed
PROACTIVE
rm
still find
In
ly
y
g
ilit
in
as
CALCULATIVE
ta
re
un
co
REACTIVE
us
PATHOLOGICAL
In
Source: Used by kind permission of the Energy Institute, Hearts and Minds safety culture ladder
(www.energyinst.org/heartsandminds)
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Section B: Safety, Health and Environment Issues in Change 557
2. SHE management
SHE management is a particular form of risk management. There is a sense in which
all management is about risk. This is especially so if one accepts that risk and
opportunity are the same, though differing by mathematical sign – ‘opportunities’
are seen as positive and ‘risks’ as negative. The SHE challenge is to manage the risk
exposure of the organization regarding safety, health and environment.
However, the situation is complicated by the paradox of SHE management. It is a
form of risk management – but there is also a core value attached to it: ‘no one gets
hurt here’. It is important to recognize, acknowledge and respect this paradox, which
helps to understand and guide behaviour.
From a risk perspective, if SHE performance is equal to or better than the stand-
ard set (either by external legislative parties, or by organizational policy), risks are
deemed sufficiently under control. If not a gap exists, exposing the organization to
additional and unacceptable risk.
The concept of ‘risk’ is widely described as the product of ‘impact’ and ‘probability’:
Risk = Impact × Probability
When assessing risks, both the impact of a situation or event and its probability must
be included. SHE management is not about striving for zero risk: that situation does
not exist in the real world. It is about ‘acceptable risk’. Risk management for SHE
follows some basic steps:
●● Assessment of a situation (‘What is the risk?’).
●● Compare the risk to the standard (‘Is the risk higher or lower than the
“acceptable level”?’).
●● Define and implement mitigating controls to reduce excessive risk
(‘How can we manage the risk?’)
●● Ensure mitigating controls are effective and sustained (‘How do we
monitor and maintain controls?’).
In SHE literature, controls are usually considered in three categories:
●● hardware controls (eg equipment, safety devices);
●● software controls (eg procedures, standard operating procedures (SOPs),
work instructions);
●● mindware controls (eg behaviour of people, mindset, culture).
Every organization will have its own sets of controls to address the particular SHE
risks it faces. When improving SHE in lower-maturity organizations, it tends to be
more effective to focus on hardware controls. In organizations with higher SHE
maturity levels, attention will be on all three types of control. Some situations present
particular SHE risks that may require that one or two of the controls take priority,
but in general it is a good principle to establish a balance of all three.
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558 Chapter 13: Organizational Considerations
C a s e s t u dy
Consider someone whose hobby is to ride a motorbike. It is a great hobby offering a high
degree of freedom, steering with your weight, feeling the wind, smelling the environment.
It is, however, an activity that has some risks, as traffic accident statistics clearly tell us.
In order to make this hobby sufficiently safe (remember the term ‘acceptable risk level’) we
can distinguish examples of the three types of control:
●● hardware: a good braking system;
●● software: clear traffic rules and procedures (such as who has priority at junctions);
●● mindware: the driver’s behaviour, controlling his right wrist on the throttle.
If only two out of three controls are properly in place, there is a recipe for disaster.
All three types of controls must be in place, in a balanced way.
C a s e s t u dy
One example of an unintended negative side-effect was seen directly by the author. In a
hospital emergency room doctors introduced a new type of stretcher that was intended to
increase the comfort of patients (a softer, less cold feel). When used for the very first time,
coincidentally with a patient suspected to have severe back damage, the stretcher bent in
the middle by about half a metre.
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Section B: Safety, Health and Environment Issues in Change 559
Negative effects of changes on SHE are, unfortunately, not limited to major projects
such as building or changing an industrial plant. Negative side effects can also occur
in organizational change management projects, where changes can have negative
impact on existing SHE controls. For example:
●● work instructions or procedures may not be properly amended to reflect a
change in the organization, so that staff no longer execute the right steps;
●● feelings of insecurity resulting from the change may lead to unacceptable
levels of stress for staff;
●● excessive workload demanded in a transition phase may also cause high stress
levels.
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C a s e s t u dy
Organizational restructuring
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Section B: Safety, Health and Environment Issues in Change 561
Obtain approval
Obtain formal management approval (change sponsor) of the risk profile. Identified
risks are reported to the change sponsor for approval. If any ‘residual risks’ still fall
outside an ‘acceptable standard’, the sponsor must decide either: 1) to accept this
explicitly (with clear, documented reasons for accepting a higher-than-normal risk
exposure for the organization); or 2) to implement additional controls.
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562 Chapter 13: Organizational Considerations
Impact
Probability
Review to improve
Review the effectiveness of control measures. This final step closes the well-known
Deming circle of plan–do–check–act. The ‘check’ (review what has happened), and
‘act’ (do something to improve things next time around) steps are crucial to ensure
that the intended effect is actually achieved. The author’s own experience confirms
that these steps lead to important learning and improvements.
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Section B: Safety, Health and Environment Issues in Change 563
Summary
Change processes are intended to make things better. However, it is important to
realize that any change is a deviation from an (assumed) well-controlled situation
and hence possesses SHE risks. All the SHE boundary conditions – external and
internal – must be respected. As a result, SHE risks of change must be professionally
assessed, and where risks rise above an ‘acceptable level’, additional controls must be
defined and implemented. This section has offered some guidelines on how to do this
in an effective way.
1 For an activity you know well, make a table showing the hardware,
software and mindware controls that relate to safety. Is any type
of control over-represented? Which type requires more focus?
2 For a set of activities, draw a risk matrix showing the impact and
probability of risk scenarios you can imagine (Section B4.2). For what
risks would you like to install risk mitigation measures? What mitigation
measures would you use?
Further reading
References
Energy Institute (2003) [accessed 25 February 2014] HP PDF Roadmap, [online] http://www.
eimicrosites.org/heartsandminds/userfiles/file/Homepage/HP%20PDF%20roadmap.pdf
Kinney, G F and Wiruth, A D (1976) [accessed 6 May 2014] Practical Risk Analyses for
Safety Management, Naval Weapons Center, China Lake, California, NWC TP 5865
[Online] http://www.dtic.mil/dtic/tr/fulltext/u2/a027189.pdf
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564 Chapter 13: Organizational Considerations
Martin Lunn
Introduction
Process optimization describes the systematic improvement of material and information
flow processes to achieve business goals and ultimately create competitive advantage
for an organization. This is not a new approach. Modern-day concepts draw on
learning from historical thought leaders such as Fredrick Winslow Taylor’s Scientific
Management (1911), Henry Ford’s Mass Assembly Manufacturing System (1915)
and, more recently, Taiichi Ohno’s Toyota Production System (1980).
Today, approaches such as Total Quality Management (TQM), Continuous
Improvement (CI), Lean and Six Sigma all aim to involve and engage people. They
use a set of enabling tools to help identify and then reduce or eliminate wasteful
elements of an organization’s processes.
1. Process mapping
1.1 Establishing the scope of process mapping
Competitive advantage is improved by closing the performance gaps that inhibit
business growth. This is achieved where organizations improve their business processes
to add more value to the customer. Process mapping tools help people with such
improvements.
The first big challenge is to identify what processes to improve and why. Two
questions must be answered satisfactorily:
●● Does the selected process have a proven and significant impact on business
performance, the identified benefits being aligned with declared business goals
and objectives?
●● Is there full buy-in from leadership to the process being mapped, to the
expected resource commitment and to implementing the expected
improvements that are being targeted?
Without these two key prerequisites a process mapping activity will be less accurate.
Moreover, if it is not improving the business in the right direction it is likely to fail
in implementation, as leaders move on to the next problem. The easiest way to
capture this commitment is through the creation of a project scope clearly stating:
●● the process to be improved;
●● the start and finish of the process to be mapped;
●● the expected outcome or improvement.
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Once the ‘future state’ map is created, it is important that the project group checks
that the result meets the expectation agreed in the project scope. Hopefully the con-
tribution to business results made from the future state implementation is in line
with the organization’s needs. If not, the organization’s leadership needs to be aware
of the gap in contribution, as this may need to be closed through other improvement
activities.
2. Mapping techniques
Process maps help people to understand process flow. By visualizing the process
start, process end, process steps, the links and relationships it is possible to see very
quickly what would take significant time to explain verbally. Visualizing a process
makes it very easy for a group to reach a common understanding, and to discuss and
agree common interpretation of it.
Purchase Order
Supplier Customer
order entry
Production
Invoice
plan
Factory Payment
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Start
Transportation Rough
machining
Quality Yes
OK?
Decision
No
Heat
Scrap part treatment
Storage
No Quality
Fill in
scrap report OK?
Database
Yes
File Cooling
Data report
Despatch
note
Document
Packing
Delay
KEY End
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Supplier Customer
Weekly Forecast
Weekly
Order
Production
Control
Cycle Time 30s Cycle Time 10s Cycle Time 20s Cycle Time 20s
Changeover Changeover Changeover Uptime 99%
2 mins 1 mins 5 mins
I Uptime 85% I Uptime 95% I Uptime 80% I I
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deep understanding of the influencing factors between process steps. Significant time
should be allowed for this. Where multiple value streams share the same resources
more specialized ‘mixed model’ VSM knowledge is required to support the mapping
process.
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Time Line
Resource
Participants / Stakeholders
(Hours)
(Hours)
Standards/
time
Phases
st
1 Participant 2 nd rd th
Participant 3 Participant 4 Participant
Criteria
which go sideways
Report / 3 1
es ee
Document
s s in
Timeline shows
ta tim
rt
Phases
p
denote key
process.
ta
7 0.5
e
milestones in Decision?
nd
the process
such as the N
start, middle Y
and end points
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sources
Participants / Stakeholders
Time
Line
Phases Standards
Re-
R&D Sales Prodn Qual Eng. Log Proc Supp Cust Days Man
days
Go/
No Go N 15 • Plant and Equip Cost
Y Costing • Maintenance Costs
20 4
Costing • Labour Costs
25 6
• Material Costs
• Capacity review
N Cost Y
OK?
Reply 30 • Suitable Profit
• Competitive Price
N 0.5
Reply
30
N
51 0.5 • Best all round Deal
Y
Order
51
Pre-Prodn placed
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sources
Participants / Stakeholders
Time
Line
Re-
Phases Standards
R&D Sales Prodn Qual Eng. Log Proc Supp Cust Days Man
days
Plan Assess
Costing Costing Costing
Req’ts
3 6, 7, 8 4, 5 7 3. Technologically Capable
Do Costing
4. Plant and Equip Cost
5. Maintenance Costs
6. Labour Costs
7. Material Costs
8. Capacity review
N Meets N Meets N Meets N Meets
Criteria Criteria Criteria Criteria
4.5 11.5
Y Y Y Y
Check 3 6, 7, 8 4, 5 7
5.5 0.5
9, 10
9. Suitable Profit
Quote
10. Competitive Price
Act
Internal
Post
Reply
Total Time Line = 26.5 Days 6.5
Total Resource = 13 Man days
N 11 11. Best all round Deal
Future action: work with customer to reduce 20 days
Y
delay in responding by introducing target costs Order
Placed 26.5 13
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possible, process rules can often be set, allowing decisions to be made more
quickly and more locally. This promotes empowerment within an
organization and leads to greater employee engagement.
5 Rework loops. Rework, shown as a returning loop on a process map, is the
result of not doing the process right the first time. Elimination of the rework
loop by problem solving why the error occurs has two benefits: 1) lead-time
is improved; and 2) output quality goes up.
6 The process ‘issues’ list. A process map can convey only some aspects of the
process. To understand what is really happening in a process the mapping
team must ‘go see’ the process and walk it from start to finish, talking to the
stakeholders. Identifying the ‘pain’ that stakeholders are experiencing in the
process (examples such as printers jamming, difficult-to-read instructions and
distractions) helps the future state map to tackle the issues that are most
important to those directly involved in the process.
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Summary
Process mapping helps you to see. The map is a visualization of how a process flows.
At the right level of detail it will show you non-adding-value steps that can either be
reduced or eliminated. The people involvement aspect of process mapping should be
considered carefully to ensure full understanding, buy-in and involvement from
leadership and all process stakeholders. This will greatly enhance the chances of a
successful future-state implementation.
Further reading
Bicheno, J and Holweg, M (2008) The Lean Toolbox: The essential guide
to lean transformation, Picsie Books, Buckingham
Lareau, W (2003) Office Kaizen: Transforming office operations into
strategic competitive advantage, ASQ Quality Press, Milwaukee, WI
Panagacos, T (2012) The Ultimate Guide to Business Process
Management: Everything you need to know and how to apply it in your
organization, CreateSpace Independent Publishing Platform
Rother, M and Shook, J (2003) Learning to See: Value stream mapping to add value
and eliminate MUDA, The Lean Enterprise Institute Inc., Cambridge, MA
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Tim Cole
Introduction
What does business finance have to do with managing
change?
Other chapters in this book show how changes in an organization can impact
productivity, employee engagement, employee retention and customer satisfaction.
Each stage of change, and the effect of each change, is likely to have a commercial
impact too. Chapter 3 traces some of these connections. The purpose of this section
is to offer those with limited formal understanding of business finance an introduction
to some key terms and concepts. It will also show how they relate to change initiatives.
This section does not explore the distinctive financial issues specific to public sector
and ‘third sector’ organizations.
The use of management accounting information is critical at each phase of change
to ensure a commercially successful change or, at the very least, to mitigate any financial
problems that may result from it. Discussion of some of these concepts with the
organization’s management accountants will help to deepen understanding.
This chapter will help you to understand:
●● how financial information is reported;
●● how financial reporting can be used in the change process;
●● management accounting and financial analysis tools that can be used in
decision making.
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Section D: Financial Management for Change Managers 577
ASSETS
FIXED ASSETS
Plant, Property &
Equipment
Labour
Raw
Overheads
Materials
Working
Capital
Finished
Cash Goods
Receivables Sales
LIABILITIES
EQUITY
PAYABLES
Capital +
Retained Profit
LOANS
●● The top area represents the things of value owned by the business, your
organization’s assets.
●● The lower area shows the funding of the business – what it owes – in two
categories:
–– The bottom left area shows the investors’ (owners’) current stake in the
business, known as their equity. This is the total of what they contributed
to the business (for example, by buying shares) and any accumulated
profits (or losses) the business has made.
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–– The lower right area shows the liabilities of the business – money owed by
the business to other parties. These may be other people (such as banks)
who have lent money to the business (loans) or money owed for invoices
not yet paid – ‘payables’ or ‘creditors’.
A business starts with cash invested as capital by the owners, and other cash
obtained through loans or other similar financing. Cash is invested by the business
into items that are not intended for resale (typically land, buildings, plant and equip-
ment). These are called fixed assets. Money spent on fixed assets is called capital
expenditure (CAPEX).
Cash is also invested by the business through operating (revenue) expenditure,
which includes:
●● items intended for resale (such as raw materials);
●● the wages of people who create the end product or service (direct labour);
●● other materials and salaries that support the business activity (overheads).
These items of expenditure contribute to the organization’s working capital. Other
components of working capital are inventories (stores of raw materials, work in
progress and finished goods waiting to be sold), together with the value of invoices
issued to customers but not yet paid (‘receivables’ or ‘debtors’).
The arrows on Figure 13.9 show that any change in the business, such as investment
in new equipment, recruitment of staff or an increase in sales, will affect cash, and
therefore have a knock-on impact on other areas of your business.
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580 Chapter 13: Organizational Considerations
Item
Revenue Sales (value of goods/services shipped and invoiced) 100
Direct costs less Raw materials 15
of these sales Direct labour costs 15 30
Contribution margin 70
Indirect costs less Depreciation 2
Overhead costs of running the
Marketing and
Marketing and sales 10
sales costs
Research and Market research 5
development Innovation (research etc.) 10
costs
Administration costs 2
General
administration Rent 3
costs Recruitment and training costs 5 45
Profit (Earnings) before interest and tax (EBIT) 20
Financing costs less Interest on loans 4
Profit (Earnings) Before Tax (EBT) 16
Taxation less Tax (eg 25% of profit before tax) 4
Net Profit (Net Earnings) 12
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Balance Sheet
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Tip
When building a case for a change initiative, discuss with your accountant
how it will be financed. Consider the cost to the business of this form of
finance. The initiative must repay this financing cost, as well as other
more obvious costs.
Then consider the cost of the initiative compared to other investments
in fixed assets and processes.
Finally consider its impact on trade (revenues and costs, reported as profit),
and on the efficiency with which working capital is used (perhaps due to improved
business processes).
It all comes back to generating more cash!
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Cash balance at start of month 100 110 115 100 25 (25) (30)
CASH IN:
Cash sales 50 45 40 40 40 50 60
CASH OUT:
Tax payments 0 0 0 30 0 0 0
CASH BALANCE AT END OF MONTH 110 115 100 25 (25) (30) (5)
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584 Chapter 13: Organizational Considerations
●● Projected balance sheets are useful tools for gaining financing as they list a
company’s assets, liabilities and equity at a specified future point. Additional
fixed assets will be seen here.
●● Cash-flow forecasts predict a company’s future liquidity based on these
planned changes (Section D2.4).
Using budgeting and forecasting tools, change managers can communicate expectations,
avoid foreseeable issues and take action to mitigate problems.
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Budget variance analysis for October 2014 Budget Actual Variance Var %
Sales (value of goods/services shipped and invoiced) 100 120 +20 +20
Costs
Raw materials 15 18 +3 +20
Labour costs 15 15 0 0
Distribution 10 12 +2 +20
Marketing and sales 10 5 (5) (50)
Administration 5 6 +1 +20
C a s e s t u dy
A large organization making and selling ice cream formed a sales budget on the basis of a
summer in which 40 days would have a temperature above 22°C. In the event an unusually
hot summer meant that 60 days exceeded this temperature, leading to record value sales of
ice cream. The sales team claimed a great success, but variance analysis showed that a
high level of discounts had been given to customers. Given the actual seasonal conditions,
a higher level of profitability should have been achieved.
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3 By the time I get the money back/the projected profit, what will it be worth?
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Change managers should take care when comparing projects using the ARR.
The percentages alone give no indication of size of investments, project durations or
timings. These factors need to be considered when comparing a portfolio of project
choices using this method. For example, in the above scenario we have taken an
average of the profit over four years. ARR remains the same, regardless of when the
cash came in during that four-year period.
Would you prefer £1,000 today or in four years’ time? Why? (List some
of the reasons.)
Your responses to the above questions may have included concerns about rising
levels of prices (inflation), the interest you could gain by investing the money for four
years, how sure you can be about the promise four years’ from now, and other
factors. Most will stem from the comparative certainty of ‘money today’ and the
additional options you have if you are given the money now.
Organizations and those who invest in them are also concerned about the ‘time
value of money’. As a result, change initiatives must also consider the value of future
returns in terms of how much will arrive and when. It is important to be able to
value future cash flows in today’s terms – because we are looking to invest today!
Figure 13.16 takes the example already outlined (Figure 13.14) and adds information
about the future value of money. This will provide the basis for some additional
ways to assess the value of a change initiative.
Discounting future cash flows allows us to assess their ‘true’ value (based on clear
assumptions) and to consider associated risks. Understanding the principles involved
allows managers to raise relevant questions and reach better decisions.
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Section D: Financial Management for Change Managers 589
Annual net cash flow, in Present Value, @15% (500) 261 152 66 29
Cumulative Net Cash Flows, Discounted @15% (500) (239) (87) (21) 8
= Net Present Value
same 15 per cent applied to an income of £100 in two years’ time ‘discounts’ the
£100 by 15 per cent twice (£100 / 1.152 = £76) – and so on. This allows us to answer
the question: ‘By the time we receive the projected income or profit streams, what
will they be worth?’ In our example it shows us that the investment does not become
cash positive (in today’s money) until year four, when the ‘net present value’ (NPV)
of the cash flows is just £8,000.
This technique is usually a more appropriate investment appraisal technique than
payback or ARR, which do not recognize the time value of money.
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Tip
Summary
Almost all organizations have access to professional accounting expertise. The brief
overview of finance here is designed to help change managers to engage more effectively
with these professionals. This leads to changes that are well founded in the commer-
cial realities of the organization.
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Further reading
Online resources:
Accounting-Simplified.com: http://accounting-simplified.com/financial/
users-of-accounting-information.html
CKT Solutions Ltd: http://www.cktsolutions.com/business-acumen-
development.html
Financial Fluency Ltd: http://www.financial-fluency.co.uk/financial-fluency-publications/
Investopedia LLC, A Division of IAC: http://www.investopedia.com/tags/cash_flow/
Kaplan Financial Limited: http://kfknowledgebank.kaplan.co.uk/wiki%20pages/
home.aspx
ReadyRatios Software, Financial Analysis, IFRS Disclosure Guide, Audit :
http://www.readyratios.com/faq/
References
Deloitte Touche Tohmatsu Limited (‘DTTL’): http://www.iasplus.com/en/publications/global/
models-checklists/2013/ifrs-mfs-2013
International Financial Reporting Standards Foundation (IFRS Foundation):
http://www.ifrs.org/The-organisation/Pages/IFRS-Foundation-and-the-IASB.aspx
and www.iasb.org
Professional Accountants in Business International Good Practice Guidance, Project and
Investment Appraisal for Sustainable Value Creation, Exposure Draft (2012) November,
p 13 [Online] https://www.ifac.org/sites/default/files/publications/files/PAIB-IGPG-ED-
Project-and-Investment-Appraisal-for-Sustainable-Value-Creation_0.pdf
Warner, S (2010) Finance Basics, HarperCollins, London
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I n de x
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Index 595
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596 Index
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Index 597
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