Critical Components of Effective Change Management

North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 2
Objectives of Understanding the Critical
Components of Effective Change Management
Regardless of where your organization may be on the maturity spectrum of
shared services, change is a constant, and the ability to manage change as
part of your day-to-day operations is crucial to ensure the cultural
transformation needed for execution and growth.
During this workshop we demystify change management and employee
engagement techniques by exploring the practical applications, tools and
latest practices.
Objectives include allowing you to:
Enable on-going change for sustainable support and business results
Manage cultural changes while keeping employees engaged/motivated
Master ongoing communication that is relevant and resonates with
stakeholders and employee
Gain an improved understanding of change management
Tools
Processes
Practical tools or ideas that can be implemented after the conference

Agenda
Chazey Partners Background
Breakout 1
Goals for the Workshop
Change Management Overview
Overview of Models
Transformation
Change Management
Breakout 2
Change Management Successes and Challenges
Best Practices in Change Management
Breakout 3
Addressing Challenges
Wrap Up/Conclusion

North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 4North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 4
Who We Are: Founded 2006 • Global offices headquartered in California • Over 50 full-time and 70 specialist resources
What We Do: Strategic advice • Project management • Technical & domain expertise • Business continuity
Where We Focus: Transformation of the back office • Human resources • Finance • IT • Procurement • Facilities
The Chazey Difference: Continuity of staff • Practitioners first • Knowledge transfer • Engage client in transformation

Who We Have Worked With

Goals for the Workshop
Breakout 1
Breakout into groups of 8 people
Introductions – Name, Title/Role and Company
Share your goal for the workshop
Write your goals on the flip chart

• Treats its internal clients as if they were an external client. Treats them with
the same level of respect and service that external clients expect
Elevator
Speech
• Provides non-core services to the “business”, employing a specialist team,
geographically unconstrained, and focusing on the requirements of the
internal client. This involves a philosophy and approach totally unlike
traditional “corporate-driven” centralization.
Definition
• Has the goal of providing high quality, non-core, but mission critical services
(which can include both repetitive common processes and more specialized
professional services) to the business at lower cost and more efficiently than
the business could otherwise provide for itself.
Goal
• Achieves cost savings and higher quality of service by leveraging organizational
re-alignment, economies of scale, technology, lower cost locations, client
interaction framework, standardized end-to-end processes, and best
practices.
How-To
What Exactly is Shared Services?

Structures have Benefits & Challenges
 Remote from
business
 Unresponsive
and inflexible
 No Business/
Operational
control over
costs
 Viewed as
central
overhead
 Prevalence of
shadow
operations
Centralized
Challenges
 Disparate
processes
 Multiple
standards
 Duplication of
effort
 Different
control
environments
 High cost and
costs unclear
across the
business
 Not scalable
Decentralized
Challenges
 Responsive
to Business
and
Operational
needs
 Business/
Operations
control
decisions
 Customized
solutions to
meet
Business/
Operational
requirements
Benefits Shared
 Highly client
focused
 Commercially
driven
 Service
Partnership
Agreements
 Clear unit costs
 Flexible
delivery
 Clear
understanding
of drivers and
activities
 Common
systems and
support
 Consistent
standards
and controls
 Tight control
environment
 Economies of
scale
Benefits

Be clear on your purpose/intent, and understand the different
potential components of “Change Management”.
Remember the 3 C’s
Communication
You own the message, generally one-way information transfer
Consultation
Recipient can influence/impact message, but you have ultimate
veto/decision
Collaboration
You do not control or ultimately own the final outcome. You agree to agree
with the outcome and direction to be taken.
The Three C’s of Effective Change Management

Change Management
Change is personal, affects you individually and benefits the organization
collectively. “What’s in it for me?”
Shared services (as with many other similar programs) is about
transformation, about continuously looking at your processes, policies,
technology and ways of working together with the best skills and people
available.
Being successful with “Change Management” actually requires there to
be an actual change. Maintaining the status quo means you haven’t
changed anything!
This is all about “doing things differently”. If things are the same as they
have always been then you have not changed anything, so why did you
bother?

Shared Services Requires Continuous Change Management
Benefit
Time
Cost Reduction
• Focus on
cost
• Consolidate
and
Standardize
• Reduce fixed
cost base
Re-engineering and
Productivity
Enhancement
• Focus on process
• Reduce/eliminate
none value-added
activities
• Reduce errors and
increase rework
• More timeliness
and accuracy of
information
Value Creation and
Continuous
Improvement
• Focus on Value
• Leverage Shared
Services network
and expertise
• Create new
services that
enable business
transformation
Integrated Strategic
Service Delivery
• Focus on strategic
business drivers
• Create strategic
partnerships
• Ensure seamless
integration of
outsourcing
• Enable a virtual
organization

Why Change Management? Business
Expectations
Effective transition - maintain business
stability/minimise business disruption
Delivery of the business case
Increased efficiency, improved control
High expectations for a higher
quality/efficiency of service
Low tolerance for lengthy ‘stabilization’

Why Change Management?
ImplementInstall
Let’s make sure
people are actually
using the new
technology to deliver
results
Let’s just get the
technology in on
time and deliver
some training
The problem with the simple “on time/on budget” mentality of
traditional project management

1.
Business
Case and
Imp Plan
2. Design 3. Build
4.
Deploy
5.
Stabilize
&
Optimize
Transform in the Design/Build Phases
The 5 key phases of a Shared Services project
This can be an initial transformation or growth to a new phase
Change Management is part of all stages of a project, although most work is
undertaken through the design and build phases

Change Management Curve
What we think it looks like
Current State
Future State
Take personal responsibility
Use in Daily Work
Buy-in
Realize is good idea
Understand the change
Hear about the change

Change Management Curve
What it really looks like

Goal of a Change Management Program
The goal is not to eliminate effects of change…
Time
Impact
Positive
Negative
Managed
Change
Unmanaged
Change
Accelerating
Change
Reducing Negative
Consequences

“Real Life” Examples
Government of New Brunswick’s NBISA
Collaboration critical
Danger of over-collaborating
Coca-Cola Enterprise’s Implementation of a New SSC
Greenfield site in Bulgaria
Completely new approach for the company
Required significant selling
Understanding of culture impact was critical
Recognized these points in change management approach
May Gurney addressed resistance to change
Identified resistance points
Exposed resistance points and managed change
International Baccalaureate – Poorly Managed Change
Recovery Strategy necessary due to poor initial start
Need to constantly “sell” the change

Change Management Successes and Challenges
Breakout 2
Breakout into groups of 8 people
Share an example of an effective change management tool or practice in
your organization
Share a change management challenge from your current project
Choose 1 or 2 of the challenges to share with the entire group

Change Management – Chazey Approach
• Change Management is critical to success
• Our experience confirms that an early focus on Change Management is essential to develop, secure
and maintain Sponsorship and Stakeholder buy-in
• Successful change management addresses the human elements throughout the development of a
robust Shared Services model including:
• Communication Plan
• Stakeholder Management
• Employee transition
• Process Design
• SSO Enabling Technologies
• Shared Services Organization
• Customer Relationship Mgmt/Client Interaction Framework (CIF)
• Governance approach
• Training
• Hiring
• Shared Service office /facilities
• A successful change program requires constant selling.

Change Management Cycle
Lessons
Learned
Recognize
Need for
Change
Create Leadership
And Change Teams
Develop
Vision/Begin
Communication
Conduct a Change
Readiness
Assessment
Perform
Stakeholders
Analysis
Risk
Management
Implement in
Steps
Celebrate success
& adapt approach
Change
Management
Cycle

Kotter’s Model
70% of all major change
efforts fail
Source: http://www.kotterinternational.com/our-principles/changesteps/changesteps
Make change stick
Never let up
Produce short term wins
Empower Action
Communicate for buy in
Get the vision right
Build Guiding Teams
Create a sense of urgency

Tools and Forms
Stakeholder Alignment
Value
Three Core Groups
Stakeholder Identification Map
Stakeholder Management Plan

The Value of Stakeholder Management
Stakeholder identification and analysis highlights:
What are my Stakeholders' interests and opinions?
What degree of influence and impact would these
stakeholders have?
Potential risks associated with any stakeholder and
associated response planning
Groups that should be encouraged to participate in
different stages of the project
Communication and stakeholder management planning
requirements throughout the project
Stakeholder expectations, how to best manage these and
to encourage their involvement in the project

Three core stakeholder groups
Key
Stakeholders
Individuals
within the
project
Individuals or
departments
within the
organization
Individuals or
groups
outside my
organization

Driving support across the organization
The WINN Model
Effective
Stakeholder
Management
WHO are the
Stakeholders
to the change?
What is their
level of
INTEREST &
SUPPORT?
Understanding
their
communication
NEEDS and
delivering these
Assessing their
level of
INFLUENCE over
a successful
outcome

Stakeholder Analysis
Level of support & drive to change
Levelofinfluenceoversuccessfulchange
Low support,
Low influence
Neutral support,
High influence
Low support,
Some influence
Neutral support,
Low influence
Low support,
High influence
Neutral support,
Some influence
High support,
Little influence
High support,
Some influence
High support,
High influence

“Real Life” Examples
Cendant – the “Command and Control” Approach
Initially may help drive the project forward, but without “proper”
change management the project (and change) will falter
“Shared Services” isn’t shared services just because you call it so
Large Medical Company – Senior Stakeholder Management
Solid plan allows communication and consistency when Senior
Leadership changes
Aeromexico – Answering a Key Question
Strong senior level executive support
Needed to answer the “what’s in it for me” question to support the
implementation
Answering this question is key to developing internal resources and
showing new opportunities
“Selling the Change” is critical to future success

Addressing Challenges
Breakout 3
Using Challenges identified earlier
Brainstorm as many recommendations as possible
Select group’s best recommendations
Share group’s recommendations with all

Examples
Higher Education
Determine why are you here?
Determine what problem are we trying to solve?
Iowa University System – Complexity
Three Universities with Three Workstreams each
Different Constituents, Stakeholders and Audiences
Federal Government
Not all of your opponents will face you directly
Face your detractors
“Selling the Change” is critical to future success

Wrap Up
Participant Expectations
Were they all met?
Key Point
Change Management is vital to continuous improvement in Shared
Services Organizations
Maintain a practical, not theoretical approach
Questions?
Please fill in the workshop evaluation and visit our stand to discuss
further

Key Stakeholder Tools
Additional Best Practices
Appendix

Identifying key stakeholders
StakeholderIdentificationMap
StakeholderGroup StakeholderName Role Reportsto ImpactofProject/Change
Otherrelevantkey
contacts,incl:Direct
Reports
AffiliateLeadership
Team ANOther General Manager VPEMEA
Likelyredundancies incountry;EWC
Issues;improvedFinancesupport
Works closelywithVPSales
EMEA(ANOther3)
ANOther2 CFO GM ReducedFinanceTeam
VPSupplyChainEMEAAN
Other4)
ANOther3 VPSales EMEA CEO Positive -supporter
ANOther4 VPSupplyChain CEO Neutral currently

Managing key stakeholders
Stakeholder Management Plan
Strongly
Opposed
Some
Concerns Neutral Supporter
Current commitment level to project
Desired commitment Level
Stakeholder
Name/Group Role/Group
Level of Influence
over Project
(L)ow
(M)edium
(H)ighLocation
Key concerns and barriers
to change
Implications of failing to achieve
desired commitment level
Suggested change management actions and
approach

5 Tips from the American Society for Training & Development
(ASTD)
Personal reputations are at stake in the midst of organizational
change. Clarify where and when possible.
Need for Certainty - Lack of information triggers threat.
Perceived helplessness associated with the change effort.
Helplessness causes emotional responses such as depression and
apathy.
Reinforce pre-existing group relationships
Highlight equity of decision making
Source: http://www.astd.org/Publications/Blogs/Human-Capital-Blog/2013/02/How-Could-Neuroscience-Change-the-Way-We-Manage-Change

Tools and Forms
Role Impact Assessment
Resistance Assessment

Ensure all changes that are medium to high potential to happen
with a medium to high impact are incorporated in plans
Process Stream: HR
As of 22 February 2016
Termination: Voluntary Employee Czech Tells manager verbally today.
New process, completes
online form
Doesn't complete form -
only tells manager.
Employee leaves without
HR and others being
notified
X X X X
This is also an issue today.
Need to train employee
and manager.
Termination: Voluntary Manager Czech Notifies local HR today. Will
now notify BSO.
Does not notify BSO so
others not notified
X X X X X
JobAidon
website
Training
JobDesign/
Redesign
Other,specifyin
comments
Impact if it
Occurs
Recommended tools/
migration strategies to
address
Comments
High
Med
Low
High
Med
Low
Communication
Process
Impacted
Business
Role
Country Expected Change Potential Risks/Problems
How Likely to
Occur?

Resistance Assessment

Critical Components of Effective Change Management

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