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Synopsis

Change can be difficult. But effective management of the change process can lead to long-lasting improvements for both your business and its people. From principles to implementation, use our Change Management (Part 2) deck to welcome a culture of positive evolution. Make adjustments inside your organization to meet your individual success criteria, whether that's higher profitability or elevated brand image.

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An adoption plan, in a business context, refers to a strategy or roadmap that outlines how a new system, process, or policy will be implemented within an organization. It includes steps to ensure that the change is effectively communicated, understood, and accepted by all stakeholders. The plan typically includes objectives, stakeholder analysis, communication strategy, training plan, timeline, and evaluation. The goal of an adoption plan is to minimize resistance and maximize acceptance of the new change.

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Slide highlights

Learn the five steps that make up a successful change management model, from assess to sustain.(Slide 2)

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Use a change readiness checklist to determine whether your team is ready for the challenges ahead and set positive morale.(Slide 21)

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Create and implement a change management plan to determine the cost, efforts required, and level of impact of your changes.(Slide 23)

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Common challenges in applying a change management model include resistance to change, lack of clear communication, inadequate resources, and lack of management support. These can be overcome by:

1. Encouraging open communication: This can help to understand the concerns and resistance of the team members.

2. Providing adequate resources: This includes time, budget, and personnel necessary for the change.

3. Gaining management support: This can help to drive the change and address any resistance.

4. Training and development: This can help the team members to acquire the necessary skills and knowledge for the change.

The change management model presented here is a five-step process, which includes assessing the situation, preparing for change, implementing the change, monitoring the change, and sustaining the change. This model is comprehensive and focuses on readiness, planning, and sustainability. Other business change frameworks may have different steps or focus areas. For example, Kotter's 8-Step Change Model includes creating a sense of urgency and building a guiding coalition, which are not explicitly mentioned in this model. However, all models aim to manage change effectively and minimize disruption.

While the content provided does not specifically mention any case studies demonstrating the effectiveness of this change management model, it's common in business and management literature to find such case studies. They often illustrate how organizations successfully implemented change by following similar steps: assessing the need for change, preparing the team, creating and implementing a plan, and sustaining the change. However, for specific case studies related to this model, I would recommend looking into business and management journals or publications.

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Outcome

The success of any change management program is hugely dependent on the players involved. It's not just about the success of individual projects, activities, and tasks, but your team's level of understanding, collaboration, and morale.

That's why excellent communication and guidance are paramount. Use the tools from this deck to assess, prepare, plan, implement, and sustain positive changes.

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Application

Types of change managment

We begin with a few common types of change management you can conduct: systemic, project, or organizational. systemic changes could pertain to the organizational architecture, IT applications, or infrastructure that underpin your business. For example, maybe you need to plan a new software update. Project changes could be relevant to management, schedules, and project timelines. Organizational changes involve processes and managing team members. This could be organization-wide or departmental changes.(Slide 3)

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Organization-wide or departmental changes can take many forms. For example, a company might undergo a restructuring that changes the reporting hierarchy, or a department might implement a new workflow process to increase efficiency. Other examples could include a shift in company strategy that requires changes in multiple departments, a merger or acquisition that necessitates a reorganization, or a departmental change in leadership that leads to a shift in roles and responsibilities. These changes often require careful planning and communication to ensure they are effectively implemented and accepted by the team.

Organizational changes involve processes and managing team members in several ways. Firstly, it may require the alteration of existing processes or the introduction of new ones to meet the new organizational objectives. This could involve changes in workflow, reporting structures, or operational procedures. Secondly, managing team members during organizational change is crucial. It involves clear communication about the changes, providing training and support, and managing resistance to change. It's important to ensure that team members understand their new roles and responsibilities and are equipped to perform them effectively.

Project changes in terms of management could include changes in leadership, changes in project scope, or changes in the management approach. Changes in schedules could involve adjustments to the project timeline, changes in the sequence of tasks, or changes in the allocation of resources. Changes in project timelines could include extensions or reductions in the project duration, changes in the project milestones, or changes in the project delivery date.

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Communications

Change of any kind creates resistance, which is why it is important to get everyone on board and motivated with a change. You could communicate a change face-to-face with an all-hands or one-on-one meeting, through an announcement from the executive team, or simply a published FAQ or company-wide email. Sometimes a change is also signaled from external sources, like regulations or legislations that compel the business to rethink how it operates.(Slide 4)

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Common challenges in implementing change management include resistance to change, lack of clear communication, inadequate leadership, and lack of a well-defined strategy. These challenges can be overcome by:

1. Encouraging open communication: This can help to address resistance to change. Employees should be made aware of the reasons for the change and how it will benefit them and the organization.

2. Strong leadership: Leaders should be able to inspire and motivate their teams during the change process. They should also be able to manage any resistance effectively.

3. Well-defined strategy: A clear and well-defined strategy can help to guide the change process and ensure that everyone is on the same page. This can include a clear vision for the change, a plan for implementing it, and a strategy for managing any resistance.

Change management is a specific type of business management strategy that focuses on managing the people side of change to achieve the required business outcome. It's different from other strategies in that it places a strong emphasis on the human element, ensuring that changes are smoothly and successfully implemented to achieve lasting benefits. Other strategies may focus more on business processes, financial aspects, or technological improvements. However, all strategies are interconnected and often need to be managed together for a business to succeed.

Change management in the tech industry can be applied in various ways. It can be used during the implementation of new software or systems, where it helps in managing resistance, training users, and ensuring smooth transition. It can also be applied in restructuring processes, where it aids in redefining roles and responsibilities, and managing the change in work processes. Additionally, change management is crucial during mergers and acquisitions, where it helps in blending cultures, systems, and processes of the merging companies. Lastly, it can be used in strategy shifts, where it aids in shifting the company's focus, managing resistance to the new strategy, and ensuring everyone is aligned with the new direction.

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Gap analysis

Tools like Gap Analysis help you determine what your organization needs to accomplish to complete a change. In a table format, list the "what, where, who, and how" of your current state and desired future state. The change needed is the gap between the two. The action to close the gap entails steps that are needed.

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Organizations might face several challenges when using Gap Analysis for change management. These include difficulty in identifying the current and future states, lack of clarity in defining the gap, resistance to change from employees, and lack of resources or skills to implement the change. To overcome these challenges, organizations can ensure clear communication about the change, involve employees in the change process, provide necessary training and resources, and regularly monitor and adjust the change process.

Gap Analysis can significantly contribute to the evolution of a business culture by identifying the differences between the current state and the desired future state of the organization. It helps in understanding what changes are needed to achieve the desired culture. By identifying these gaps, the organization can develop and implement strategies to bridge them, thereby fostering a culture that aligns with its vision and goals. This process encourages continuous improvement and adaptability, key aspects of a progressive business culture.

When performing a Gap Analysis, the key elements to consider are the current state, the desired future state, and the gap between the two. The current state involves understanding what, where, who, and how of your current situation. The desired future state involves envisioning what, where, who, and how of your future situation. The gap is the difference between the current and future states. The action to close the gap entails steps that are needed.

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For instance, let's say your current state is high employee turnover. Your desired future state is keeping great talent on the team as long as possible with higher overall employee satisfaction.

The gap is the distance between turnover and retention. One action you could take would be to provide more educational resources to develop employee capabilities and make them feel that their career isn't stagnating.

As a result, employees will feel it's worth their time to stay at the company because they are getting paid to learn and be better prepared to advance their careers when the right opportunity strikes in the future.(Slide 7)

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Forces,barriers,and resistance

External forces of change can compel change management out of the blue. Everything from the nature of the workforce, to technology, to economic shocks, and changing social trends can lead to the need for change. For example, recent global events have normalized remote work as a viable option. As a result, systemic changes are needed to ensure that employees have the tools and software to do their work. And for some industries that handle sensitive data, more measures would need to be implemented to prevent security breaches. Even though internal personnel are the key players who carry out this change, the reason why it took place was due to external circumstances.(Slide 8)

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The principles of change management enhance business strategy in the face of economic shocks and changing social trends by allowing businesses to adapt and respond effectively. These principles guide businesses in identifying the need for change, planning for it, implementing it, and managing the transition. They help in creating a culture of flexibility and resilience, which is crucial in times of economic shocks or social changes. For instance, during the recent global events that normalized remote work, businesses that had effective change management were able to transition smoothly by ensuring their employees had the necessary tools and software to work remotely. They also implemented measures to prevent security breaches, especially in industries handling sensitive data.

Change management aligns with digital transformation initiatives in the context of remote work by ensuring that employees have the necessary tools and software to perform their tasks effectively. It involves making systemic changes to accommodate the shift to remote work, such as implementing new technologies and processes. In industries that handle sensitive data, additional measures may be required to prevent security breaches. While the shift to remote work may be driven by external circumstances, it's the internal personnel who carry out these changes, guided by effective change management strategies.

A company that could benefit from implementing change management due to the normalization of remote work is a traditional banking institution, such as Bank of America. With the shift to remote work, they would need to implement changes in their operational and security protocols. For instance, they would need to ensure that their employees have secure and efficient access to internal systems and databases from remote locations. This could involve the adoption of new software or technology, and the implementation of new security measures to prevent data breaches. Additionally, they would need to manage the change in work culture and ensure that employees are able to adapt to working remotely. This could involve providing training and support, and implementing new policies and guidelines for remote work.

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On the other hand, internal forces of change can come from changes in key leadership, recruiting impediments, or pressure from shareholders.(Slide 9)

Human beings tend to seek comfort in the status quo. Barriers to change, such as mental resistance, lack of executive commitment, or unrealistic expectations, can be difficult to overcome until they are addressed. For instance, a leader might have unrealistic expectations on how fast the change can be implemented. This sentiment could lead to a lack of appreciation and acknowledgment for the work that employees put in, and negatively impact everyone's drive to continue.(Slide 10)

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Use a feedback form to determine where the areas of resistance are at your organization. Perhaps you have a feeling there is a lack of understanding of the purpose of change. Or maybe it's a lack of support from leadership. Perhaps the change has a high level of impact on daily work patterns. Survey your team and rate their responses from strongly agree to strongly disagree. You can report these findings in a table format.(Slide 11)

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Force fleld analysis

A force field analysis assesses factors that influence a situation. When used in the context of change management, it compares the driving forces that encourage change against the restraining forces that hold it back. For instance, your customers' demand for new products and an increased production speed could encourage change. However, the loss of staff over time (as a result of more efficient production) and the environmental impact to create a new product could hold you back. But when you tally up the scores at the top, you find the benefits still outweigh the barriers in this scenario. Ultimately, you decide it's worthwhile to upgrade the facility equipment and make new products.(Slide 16)

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Change transition curve

Every change follows a familiar pattern. The change transition curve begins with uncertainty and then heads into a period of skepticism as productivity wanes. Luckily, this temporary drop usually bottoms out. To help with this transitional period, the organization can create a sense of urgency and support with a guiding coalition. Again, this all goes back to the importance of team communications. As skepticism bottoms out, empower broad action and recognize the short-term wins through the exploration phase. Finally, incorporate the change into the company-wide culture to create a lasting commitment.(Slide 19)

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Cost

It takes time to implement a change, and time is money. Determine your change management cost in a table format that takes the timeframe into account. Assess how long each task will take across a four-quarter period and the total costs associated with the change over the course of a fiscal year.(Slide 26)

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Evaluation

As part of "aftercare" and continuous improvement, use a questionnaire to learn what went well, what went wrong, and what could be improved next time. If you're answering a question like, "What has enabled you to sustain the changes?" The answer could be "Every few weeks, we saw incremental improvements in productivity and performance. This provided positive reinforcement that we're on the right path and motivated us to keep going."(Slide 27)

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Share feedback from your questionnaire in a bar graph format, organized by those who strongly agree to strongly disagree with a series of questions. For instance, you might ask how your employees feel about the effectiveness of leadership, or if your company has a strong focus on customers. This feedback will help you analyze how the implemented changes are perceived by your team.(Slide 28)

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