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UNCLASSIFIED / FOUO




                       National Guard
                      Black Belt Training
                          Module 08

                      Change Management

                                            UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




CPI Roadmap – Define
                                                           8-STEP PROCESS
                                                                                                    6. See
   1.Validate          2. Identify           3. Set         4. Determine        5. Develop                          7. Confirm        8. Standardize
                                                                                                   Counter-
      the             Performance         Improvement           Root             Counter-                            Results            Successful
                                                                                                   Measures
    Problem               Gaps              Targets             Cause           Measures                            & Process            Processes
                                                                                                   Through

       Define                   Measure                      Analyze                         Improve                          Control



                                           ACTIVITIES                             TOOLS
                           •   Identify Problem                               •Project Charter
                           •   Validate Problem Statement                     •Project Selection Tools
                           •   Establish Strategic Alignment                  •Value Stream Map
                           •   Gather Voice of the Customer & Business        •Various Financial Analysis
                           •   Create Goal Statement                          •Effective Meeting Skills
                           •   Validate Business Case                         •Stakeholder Analysis
                           •   Determine Project Scope                        •Communication Plan
                           •   Select and Launch Team                         •SIPOC Map
                           •   Develop Project Timeline                       •High-Level Process Map
                           •   Create Communication Plan                      •Project Management Tools
                           •   Prepare High-Level Process Map / SIPOC         •VOC and Kano Analysis
                           •   Complete Define Tollgate                       •RACI and Quad Charts
                                                                              •Strategic Alignment
                                                                                                                                                       2
                       Note: Activities and tools vary by project. Lists provided here are not necessarily all-inclusive. UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Learning Objectives

            Identify the inherent structures of an
             organization and describe how they
             become barriers to improvement
            Describe the characteristics and skills of
             a Change Agent

                          Change is good,
                           you go first.
                               - Dilbert

                                                                       3

                                                 UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Inherent Structures: Common Cultural Types
        Inherent structures of an organization dramatically affect
        how easy it is to introduce change
         Clan
             – Strong allegiances, resistance to outsiders,
               feudalism
         Ad Hocracy
             – Everything very dependent on the current
               situation, chaotic
         Hierarchy
             – Chain of command, clear authority
         Enterprise
             – Everyone a venture capitalist
                                                                             4

                                                       UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Culture Change Approach

        Culture can affect how it is best to
         approach the introduction of change
               – Clan: ensure you’ve got the “parents” bought in
                 and committed
               – Hierarchy: ensure you use the chain of
                 command
               – Ad Hoc: ensure you’ve identified the “voices of
                 authority” and have them speaking for you
               – Enterprise: ensure you’re strongly tied to
                 business goals

                                                                               5

                                                         UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Change Readiness Formula

     Formula: D + V * L > R

            D = Dissatisfaction with status quo
            V = Vision of the future
            L = Leadership
            R = Resistance to change




                                                                        6

                                                  UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Exercise: Change Examples
                Characteristics of              Characteristics of
               Successful Change               Unsuccessful Change
                   Initiatives                      Initiatives
                                          
                                          
                                          
                                          
                                          
                                          
                                          
                                     10 Minutes
                                                                                 7

                                                           UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Cycle of Change
   Stage 1:               Right Thing          Wrong Thing
   Do the right                                                                       Stage 2:
   thing and do       Stage 1            Stage 2                                      Discover that
   it well.                                                                           the right thing
             Done                                                                     is now the
             Well                                                                     wrong thing.


  Stage 4:           Stage 4
  Eventually do
                      Stage 3            Stage 3:
  the new right
                                         Do the new right
  thing well.
                                         thing, but do it
                                         poorly first.
            Done
            Poorly                              From Black, J.S., & Gregersen, H.B.
                                                Leading Strategic Change:
                                                Breaking Through the Brain Barrier.
                                                New Jersey: Prentice Hall. 2002.

                                                                                                        8

                                                                          UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Barriers to Change
                                Right Thing            Wrong Thing

                      Stage 1                                 Stage 2

             Done                        Fail to SEE
             Well


                      Stage 4

                             Fail to
            Done            FINISH
            Poorly




                      Stage 3
                                                                                           9

                                                                     UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Examples of Barriers

            Empire building
            Excuses / scapegoats
            Change resistance
            Lack of openness and dishonesty
            Politics and bureaucracy
            Authoritarian, autocratic management
            Little to no empowerment



                                                                      10

                                                UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Counter-Measures for Change
                            Right Thing                    Wrong Thing

                      Stage 1                                      Stage 2
                                           Fail to See -
             Done                           Make It
             Well                             Real!


                      Stage 4

                                Fail to
                                Finish -
                                Make It
                                 Last!
            Done
            Poorly

                      Stage 3
                                                                                               11

                                                                         UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Elements Of Successful Change
       1. Identify the leader for the change.
       2. Build a mutual need for the change.
       3. Create the vision of how things will look
          after the change.
       4. Mobilize commitment for the change.
       5. Align systems and structures to support
          the change.
       6. Monitor progress.
       7. Sustain the change.
                                          Adapted from GE Change Acceleration Process

                              Fulmer, R.M. & Goldsmith, M. (2001). The Leadership Investment.
                              New York: American Management Association.
                                                                                                12

                                                                  UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Principles to Implementing Change

      To successfully implement change:
             The organization’s vision must be compelling enough
              to generate the excitement needed to propel people
              through the chaos of change
             Formal structures must support the change
             Management behavior must match their words
             Employees must understand and really desire to
              make the change
             Recognition must be frequent and supportive
             Communication strategies must be developed and
              implemented in all areas
                                                                             13

                                                       UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Change Agent Characteristics and Skills
      Successful Change agents have the following
      characteristics and skills:
             Credibility - with key sponsors and team members
             Awareness - of the organization’s culture and the
              needs of the team
             Enthusiasm - for the project and the business overall
             Reliability - to do the job they say they will do
             Flexibility - to do the job when and where needed
             Communication Skills - to use clear language and
              actively listen to others


                                                                              14

                                                        UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Cycle of Change




                                            15

                      UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Change Management Objectives
  Change Management applies structured approaches to prepare an organization’s
  people for change.
  •    Sponsorship:
                                                                Inviting
        −     Build commitment and support for the             Participation
                                                                                                       Commitment
              change effort with formal and informal leaders
        −     Build a Change Network and ensure that
                                                                                         Buy-In
              communications are cascaded
  •    Change Readiness:                                     Generating
        −  Assess and monitor the workforce’s               Understanding
                                                                                Understanding
           readiness for and acceptance of the
           change
        − Provide stakeholder feedback to                                   Awareness
           Communications and Sponsorship
                                                             Informing
           (program and decision/site levels) in
           order to address CM issues                                                         Time

  •    Communications:
        -   Provide the right information, to the right people, at the right time, to build awareness,
            understanding, buy-in, and commitment
        -   Primary Audience: Stakeholders impacted (directly and indirectly) by the changes
                                                                                                                    16

                                                                                          UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




 Organization Change Strategy Framework

                                                                    Plan, Align
                                                                   and Mobilize
          Yesterday and Today             Vision                                                                 Tomorrow
           Recent performance
            business trends                and                                                      Design  Future policy
           Existing policy,                                           Develop                                Future enterprise
            operating models,             Commit                      capability                     and
                                                      Lead,                                                    goals
            capacity and                                             and capacity
                                                   communicate                                     Implement  Future operating
            capabilities                           and engage                                                      models, capacity
           Change history                                                            Design
                                                                                                                   and capabilities
           External constraints                                 Focus on           organization
                                                                                        and
                                                                 outcomes           governance
                                               Transform            and
                                                 culture
                       Case for Change                            benefits                         Benefits Delivered
                                                                                Align
                                                                             individuals
           Major technology initiative                      Manage          and teams                            Qualitative measures
           Merger or acquisition                          performance
                                                                                                                  Quantitative measures
           Enterprise repositioning                                                                              Stakeholder alignment




                                                     Enhance and Evolve

                                                                                                                                           17

                                                                                                                  UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Commitment or Compliance?

                       Compliance                                            Commitment
          “I have to do it this new way”
                                                                             “I want to do it this new way”
                                     Reaction                      Action
          “I will react to this change - if I must”                “I will act to achieve this change”

                                            Testing             Testing
                        “I must absorb this change”             “I will put myself at stake for this change”

                            Negative perception              Positive perception
                      “I feel threatened by this change”     “I see the opportunity in this change”

                                                           Engagement
                                                           “I see the implications for me/us”
     • Each stage requires energy
                                                           Understanding
     • At each stage there is a price for                  “I know why and what will change”
      continuing or dropping off
                                                           Awareness
                                                           “I am being told about something”


              While building commitment is usually the goal of the change management
               effort, it is expensive. Do not pay for more commitment than you need.
                                                                                                                18

                                                                                          UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




Takeaways

          Understand inherent structures that
           impede change efforts
          Recognize and overcome barriers to
           improvement
          Know the characteristics and skills of a
           Change Agent

               Communicate, Communicate, Communicate!



                                                                     19

                                               UNCLASSIFIED / FOUO
UNCLASSIFIED / FOUO




          What other comments or questions do
                       you have?




                                                             20

                                       UNCLASSIFIED / FOUO

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NG BB 08 Change Management

  • 1. UNCLASSIFIED / FOUO National Guard Black Belt Training Module 08 Change Management UNCLASSIFIED / FOUO
  • 2. UNCLASSIFIED / FOUO CPI Roadmap – Define 8-STEP PROCESS 6. See 1.Validate 2. Identify 3. Set 4. Determine 5. Develop 7. Confirm 8. Standardize Counter- the Performance Improvement Root Counter- Results Successful Measures Problem Gaps Targets Cause Measures & Process Processes Through Define Measure Analyze Improve Control ACTIVITIES TOOLS • Identify Problem •Project Charter • Validate Problem Statement •Project Selection Tools • Establish Strategic Alignment •Value Stream Map • Gather Voice of the Customer & Business •Various Financial Analysis • Create Goal Statement •Effective Meeting Skills • Validate Business Case •Stakeholder Analysis • Determine Project Scope •Communication Plan • Select and Launch Team •SIPOC Map • Develop Project Timeline •High-Level Process Map • Create Communication Plan •Project Management Tools • Prepare High-Level Process Map / SIPOC •VOC and Kano Analysis • Complete Define Tollgate •RACI and Quad Charts •Strategic Alignment 2 Note: Activities and tools vary by project. Lists provided here are not necessarily all-inclusive. UNCLASSIFIED / FOUO
  • 3. UNCLASSIFIED / FOUO Learning Objectives  Identify the inherent structures of an organization and describe how they become barriers to improvement  Describe the characteristics and skills of a Change Agent Change is good, you go first. - Dilbert 3 UNCLASSIFIED / FOUO
  • 4. UNCLASSIFIED / FOUO Inherent Structures: Common Cultural Types Inherent structures of an organization dramatically affect how easy it is to introduce change  Clan – Strong allegiances, resistance to outsiders, feudalism  Ad Hocracy – Everything very dependent on the current situation, chaotic  Hierarchy – Chain of command, clear authority  Enterprise – Everyone a venture capitalist 4 UNCLASSIFIED / FOUO
  • 5. UNCLASSIFIED / FOUO Culture Change Approach  Culture can affect how it is best to approach the introduction of change – Clan: ensure you’ve got the “parents” bought in and committed – Hierarchy: ensure you use the chain of command – Ad Hoc: ensure you’ve identified the “voices of authority” and have them speaking for you – Enterprise: ensure you’re strongly tied to business goals 5 UNCLASSIFIED / FOUO
  • 6. UNCLASSIFIED / FOUO Change Readiness Formula  Formula: D + V * L > R D = Dissatisfaction with status quo V = Vision of the future L = Leadership R = Resistance to change 6 UNCLASSIFIED / FOUO
  • 7. UNCLASSIFIED / FOUO Exercise: Change Examples Characteristics of Characteristics of Successful Change Unsuccessful Change Initiatives Initiatives               10 Minutes 7 UNCLASSIFIED / FOUO
  • 8. UNCLASSIFIED / FOUO Cycle of Change Stage 1: Right Thing Wrong Thing Do the right Stage 2: thing and do Stage 1 Stage 2 Discover that it well. the right thing Done is now the Well wrong thing. Stage 4: Stage 4 Eventually do Stage 3 Stage 3: the new right Do the new right thing well. thing, but do it poorly first. Done Poorly From Black, J.S., & Gregersen, H.B. Leading Strategic Change: Breaking Through the Brain Barrier. New Jersey: Prentice Hall. 2002. 8 UNCLASSIFIED / FOUO
  • 9. UNCLASSIFIED / FOUO Barriers to Change Right Thing Wrong Thing Stage 1 Stage 2 Done Fail to SEE Well Stage 4 Fail to Done FINISH Poorly Stage 3 9 UNCLASSIFIED / FOUO
  • 10. UNCLASSIFIED / FOUO Examples of Barriers  Empire building  Excuses / scapegoats  Change resistance  Lack of openness and dishonesty  Politics and bureaucracy  Authoritarian, autocratic management  Little to no empowerment 10 UNCLASSIFIED / FOUO
  • 11. UNCLASSIFIED / FOUO Counter-Measures for Change Right Thing Wrong Thing Stage 1 Stage 2 Fail to See - Done Make It Well Real! Stage 4 Fail to Finish - Make It Last! Done Poorly Stage 3 11 UNCLASSIFIED / FOUO
  • 12. UNCLASSIFIED / FOUO Elements Of Successful Change 1. Identify the leader for the change. 2. Build a mutual need for the change. 3. Create the vision of how things will look after the change. 4. Mobilize commitment for the change. 5. Align systems and structures to support the change. 6. Monitor progress. 7. Sustain the change. Adapted from GE Change Acceleration Process Fulmer, R.M. & Goldsmith, M. (2001). The Leadership Investment. New York: American Management Association. 12 UNCLASSIFIED / FOUO
  • 13. UNCLASSIFIED / FOUO Principles to Implementing Change To successfully implement change:  The organization’s vision must be compelling enough to generate the excitement needed to propel people through the chaos of change  Formal structures must support the change  Management behavior must match their words  Employees must understand and really desire to make the change  Recognition must be frequent and supportive  Communication strategies must be developed and implemented in all areas 13 UNCLASSIFIED / FOUO
  • 14. UNCLASSIFIED / FOUO Change Agent Characteristics and Skills Successful Change agents have the following characteristics and skills:  Credibility - with key sponsors and team members  Awareness - of the organization’s culture and the needs of the team  Enthusiasm - for the project and the business overall  Reliability - to do the job they say they will do  Flexibility - to do the job when and where needed  Communication Skills - to use clear language and actively listen to others 14 UNCLASSIFIED / FOUO
  • 15. UNCLASSIFIED / FOUO Cycle of Change 15 UNCLASSIFIED / FOUO
  • 16. UNCLASSIFIED / FOUO Change Management Objectives Change Management applies structured approaches to prepare an organization’s people for change. • Sponsorship: Inviting − Build commitment and support for the Participation Commitment change effort with formal and informal leaders − Build a Change Network and ensure that Buy-In communications are cascaded • Change Readiness: Generating − Assess and monitor the workforce’s Understanding Understanding readiness for and acceptance of the change − Provide stakeholder feedback to Awareness Communications and Sponsorship Informing (program and decision/site levels) in order to address CM issues Time • Communications: - Provide the right information, to the right people, at the right time, to build awareness, understanding, buy-in, and commitment - Primary Audience: Stakeholders impacted (directly and indirectly) by the changes 16 UNCLASSIFIED / FOUO
  • 17. UNCLASSIFIED / FOUO Organization Change Strategy Framework Plan, Align and Mobilize Yesterday and Today Vision Tomorrow  Recent performance business trends and Design  Future policy  Existing policy, Develop  Future enterprise operating models, Commit capability and Lead, goals capacity and and capacity communicate Implement  Future operating capabilities and engage models, capacity  Change history Design and capabilities  External constraints Focus on organization and outcomes governance Transform and culture Case for Change benefits Benefits Delivered Align individuals  Major technology initiative Manage and teams  Qualitative measures  Merger or acquisition performance  Quantitative measures  Enterprise repositioning  Stakeholder alignment Enhance and Evolve 17 UNCLASSIFIED / FOUO
  • 18. UNCLASSIFIED / FOUO Commitment or Compliance? Compliance Commitment “I have to do it this new way” “I want to do it this new way” Reaction Action “I will react to this change - if I must” “I will act to achieve this change” Testing Testing “I must absorb this change” “I will put myself at stake for this change” Negative perception Positive perception “I feel threatened by this change” “I see the opportunity in this change” Engagement “I see the implications for me/us” • Each stage requires energy Understanding • At each stage there is a price for “I know why and what will change” continuing or dropping off Awareness “I am being told about something” While building commitment is usually the goal of the change management effort, it is expensive. Do not pay for more commitment than you need. 18 UNCLASSIFIED / FOUO
  • 19. UNCLASSIFIED / FOUO Takeaways  Understand inherent structures that impede change efforts  Recognize and overcome barriers to improvement  Know the characteristics and skills of a Change Agent Communicate, Communicate, Communicate! 19 UNCLASSIFIED / FOUO
  • 20. UNCLASSIFIED / FOUO What other comments or questions do you have? 20 UNCLASSIFIED / FOUO