Strategic Change Management in Human Resources Management (HRM) - Principles and Processes

STRATEGIC CHANGE MANAGEMENT FOR HRM – PRINCIPLES AND
PROCESSES
CHARLES COTTER PhD, MBA, B.A (Hons), B.A
www.slideshare.net/CharlesCotter
15 JUNE 2018

• Identifying the required change in the HRM space
• Recommended improvement strategies
• Action steps to transform HRM to SPA
• Introduction to the fundamental change management principles and practice
• Diagnosis: Identifying and applying the characteristics of change capable
organizations
• Explaining change theories and the change transition cycle
1-DAY TRAINING PROGRAMME OVERVIEW

• Explaining the HRM leadership role and contribution during change
• Differentiating between Type O and Type D oriented people and the effective
management thereof
• Identifying the reasons for resistance to change
• Describing the managerial techniques to reduce resistance to change
• Applying the foremost change management models
• Applying Prosci’s Change Management Methodology
1-DAY TRAINING PROGRAMME OVERVIEW

SABPP HR AUDITED RATINGS
(X39 COMPANIES)

MEASURING THE STRATEGIC IMPACT AND VALUE
OF HRM/L&D
• Over the past 12 months, I’ve developed Survey Monkey quizzes, based on compliance of current HRM/L&D
practices, measured against 10 best practice criteria, that I’ve used on various training and conference speaking
assignments in South Africa, Ghana, Zambia, Mozambique and Kenya.
• The respondents from these five (5) countries were HR/L&D managers and -professionals, representative of both
public and private sector institutions.
• The seven (7) focal points of these mini surveys include the following HRM/L&D value chain processes:
❑Strategic Performance Advisor (SPA)
❑Strategic HR Planning
❑HRM Metrics and Analytics
❑Strategic Total Rewards Management (STORM)
❑Skills Auditing
❑Strategic Learning Partner (SLP)
❑Ethics of S.A trainers

OVERALL FINDINGS
HRM/L&D Value chain process Number of
respondents (N)
Mean Score Relative Difficulty
ranking
Standard
deviation
Level of Strategic Maturity
Strategic Performance
Advisor (SPA)
38 60% 6 15% Level 2 (Transactional)
Strategic HR Planning 33 57% 4 14% Level 2 (Transactional)
HRM Metrics and Analytics 61 53% 2 11% Level 2 (Transactional)
Strategic Total Rewards
Management (STORM) –
Principles and Best Practices
13 48% 1 8-9% Level 2 (Transactional)
Skills Auditing 29 56% 3 17% Level 2 (Transactional)
Strategic Learning
Partner (SLP)
23 60% 6 13% Level 2 (Transactional)
Ethics of S.A trainers 54 58% 5 12% Level 2 (Transactional)
OVERALL 251 56% Level 2 (Transactional)

0
10
20
30
40
50
60
70
OVERALL FINDINGS
Strategic Performance Advisor HR Planning HR Metrics STORM
Skills Auditing Strategic Learning Partner Ethics of S.A trainer

ENABLERS OF TRANSFORMATION/RE-
POSITIONING TO SPA – “RIGHTING THE
SHIP”
“HR needs to follow the right process,
applying the right skills, in the right
manner/method, fulfilling the right
roles, for the right reasons, to achieve
the right results.”
(Cotter, 2014)

THE FUTURE-FIT CODE: 10 STRATEGIES TO FUTURE-
PROOF YOUR HRM CAREER
• Future-fit, career-minded HRM consultants will apply the following strategies:
❑#1: Relevance
❑#2: Differentiation
❑#3: Unique Value Proposition (UVP)
❑#4: Specialization
❑#5: Agility

THE FUTURE-FIT CODE: 10 STRATEGIES TO FUTURE-
PROOF YOUR HRM CAREER
• Future-fit, career-minded HRM consultants will apply the following strategies:
❑#6: Re-invention
❑#7: Value Amplification
❑#8: Next Dimension Thinking
❑#9: Digital Literacy and -Citizenship
❑#10: Hyperconnected Collaborator

SOURCE OF RELEVANCE: MINDSET
FUTURE-FIT HRM CONSULTANT FUTURE UNFIT HRM CONSULTANT
Growth Fixed
Abundance Scarcity
Optimalist Perfectionist
Investment Cost/expenditure
Future-focused (strategist) Present and short-term (tactician)
Aspires to success and sustainability Aspires to safety and stability

TAKING THE TEST: FUTURE-FIT HRM CONSULTANT
HEALTH CHECK
• So, in light of the above Future-fit Code, do you believe that you are
ready for the future workplace?
• To determine your future fitness score you are welcome to complete
the 2-minute, self-scoring survey. Please refer to the following link:
• https://www.surveymonkey.com/r/CDS9HCP

IMPROVEMENT
RECOMMENDATIONS - SPA
• According to Cotter (2014), business executives expect SPA’s to
fulfil the following key roles:
• #1: Catalytic Driver of Change;
• #2: Pro-active Business Thinker;
• #3: Collaborative Consultant;
• #4: Purpose-directed Coach;
• #5: Delivery (results-oriented HR practices);
• #6: Strategic Facilitator and
• #7: (Credible and Accountable) Performance Advisor

IMPROVEMENT RECOMMENDATIONS – SPA
(COTTER, 2017)
• #1: Transition from transactional to transformational HRM;
• #2: Transition from a cost to a profit centre;
• #3: Acquisition of more advanced, business relevant skills by HR Professionals;
• #4: Migration from manual to automated/digital HRM – 1G to 4G technology;
• #5: Transition from administrative expert to strategic performance advisor and
• #6: Migration from fundamentals of people science to the complexities of data
science.

“HRM will have to migrate from the
fundamentals of people science to the
complexities of data science.”
(Cotter, 2017)

ACTION STEPS/PLAN TO
TRANSFORM HR INTO A SPA
• Step 1: Strategic Review and Analysis
• Step 2: Strategic Role Clarification and Contracting
• Step 3: Formulation and Development of
Transformational Strategies
• Step 4: Implementation of Transformational
Strategies
• Step 5: Measure and evaluate business impact and
results

STEP 1: STRATEGIC REVIEW
AND ANALYSIS
• Objective: The focus of the analysis should be on
understanding the needs of the business as a sustainable
entity, its strategic direction and identifying initiatives that
will help your business grow.
• Review of current HRM and business strategies
• Identification of resources and capabilities
• Tools:
❑Environmental scan (PESTEL)
❑Gap Analysis
❑S-W-O-T Analysis

STEP 2:
STRATEGIC ROLE
CLARIFICATION
AND
CONTRACTING
Objective: The concluding of Service
Delivery Agreements with line/operational
and senior/executive management
Consultation, engagement and
communication with operational
management
Clarification of expectations, needs and
value-adding roles of HRBP
Contracting agreements

STEP 3: FORMULATION
AND DEVELOPMENT OF
TRANSFORMATIONAL
STRATEGIES
• Objective: Development of HRBP transformation
strategic plan
• Formulation of goals and objectives
• Development of alternative transformational
strategies
• Choice of most appropriate strategies
❑Viability
❑Feasibility
❑Sustainability

STEP 4:
IMPLEMENTATION OF
TRANSFORMATIONAL
STRATEGIES
Project-based, cross-functional
team approach
Organizing, assigning and
deploying resources
Leading and directing (the
implementation process)
Monitoring and Controlling

STEP 5: MEASURE AND EVALUATE
BUSINESS IMPACT AND RESULTS
• Measure and calculate the ROI
• Amend and review strategies (remediation
action)
• Report back to business partners (to
demonstrate transparency and
accountability)
• Aspire to continuous improvement
processes

LEARNING ACTIVITY 1
• Group Discussion:
• Review the business executive
expectations, roles and process
of transforming HR to a SPA
(state of readiness). Apply step 3
of the action steps/plan of
transforming HR to a strategic
performance advisor.

THE NATURE OF THE BUSINESS
ENVIRONMENT – V-U-C-A

METAPHORIC VIEWS OF CHANGE
CALM WATERS WHITE-WATER RAPIDS

• First Order change is often referred to as
evolutionary or gradual change - usually
localized – it impacts on one part of a system
without major repercussions to other parts of
the system. The organization as a whole
remains intact and no overall change of its
former state occurs in spite of incremental
change to one part of it.
• Second order change is often referred to as
radical or revolutionary change because it
impacts on the organization as a whole.
FIRST AND SECOND
ORDER CHANGE

LEARNING ACTIVITY 2
• Group discussion:
• Identify examples of both internal and external forces that
necessitate HRM and your organization to change. How has
HRM and your organization responded to these changes?
Provide practical examples.
• As a HR manager, how would you view the organizational
change – calm waters or white water and/or first or second
order change? Substantiate your reasoning.
• By referring to the 5 types of change, provide relevant
examples of each. Of these types of change, which is the
most challenging? Motivate your answer.
• Present a summary of group discussion

• The literature on “change management” is clear: over 70% of change initiatives
fail.
CHANGE MANAGEMENT SUCCESS TRACK RECORD

• We started with a single
question: Why do some changes
succeed and others fail?
(https://www.prosci.com/about)
• The answer: the people side.
PROSCI’S VIEW OF
CHANGE SUCCESS

• #1: Linking the present and the future
• #2: Make learning a way of life (learning
organization)
• #3: Actively supporting and encouraging day-to-
day improvements and changes (continuous
improvement processes)
• #4: Ensuring diverse teams
• #5: Encourage out-of-the-box thinking (innovation)
CHARACTERISTICS
OF CHANGE-
CAPABLE/FRIENDLY
ORGANIZATIONS

• #6: Protect and shelter breakthrough ideas
(intellectual property)
• #7: Integrate technology to implement changes
• #8: Build and deepen trust (creating an
organizational culture of management credibility
and integrity)
• #9: Streamline and align processes, systems and
structures
• #10: Leadership have the will and conviction to
change
CHARACTERISTICS
OF CHANGE-
CAPABLE/FRIENDLY
ORGANIZATIONS

LEARNING ACTIVITY 3
• By referring to each of the characteristics of change
capable/friendly organizations, measure the degree
of your organization’s readiness to change.
• By referring to each of the conditions of the
successful implementation of change management
programmes, determine the degree of sustainability
of change at your organization.
• Identify those areas which need to be improved and
recommend strategies to close these gaps. Indicate
your change leadership and -facilitation role in
bridging these gaps.

CHANGE TRANSITION CURVE AND APPROPRIATE LEADERSHIP
ACTIONS

LEARNING ACTIVITY 4
• As a HR manager, describe how
you can accelerate and guide HR
employees through the change
transition cycle to the most
sophisticated/mature stage,
commitment.
• Present a summary of group
discussion

• “Leaders should not only administer and manage
change, but pioneer, pilot and drive change towards
barrier-busting heights of performance improvement.”
(Cotter, 2005)
❑Change Leadership Roles and Actions
❑Change Agents (internal and external)
❑Transformational Leadership
❑Building resilience and change-hardiness
❑Develop Employee engagement strategies
❑Scaling the Hierarchy of Commitment
THE ROLE OF
LEADERSHIP IN
CHANGE
MANAGEMENT

• The employee does not have a responsibility to
manage change.
• The responsibility lies with management and
executives of the organisation.
• They must manage change in a way that
employees can cope with it.
• The manager has the responsibility to facilitate
and enable change.
RESPONSIBILITY
FOR MANAGING
CHANGE

• Provide a future vision for change
• Leaders should possess diagnostic ability to read, scan
and respond to the changing environment in the
perpetual quest for business growth and expansion
opportunities
• Be a catalytic driver of change
• Guide, support and lead people through the change
transition cycle
• Be a change agent
• Lead by example during change i.e. be a role
model/ambassador and advocate for change
• Be a transformational leader
• Break down resistance to change
• To build resilience and change hardiness amongst the
workforce
CHANGE
LEADERSHIP
ROLES AND
ACTIONS

CHARACTERISTICS OF
TRANSFORMATIONAL
LEADERSHIP

• The five attributes of resilience include:
❖Positive (they see life as complex but filled
with opportunity)
❖Focused (they have a clear vision of what
they want to achieve)
❖Flexible (they demonstrate pliability when
responding to uncertainty)
❖Organized (they develop structured
approaches to managing ambiguity)
❖Proactive (they engage with change rather
than defending against it)
BUILDING
RESILIENCE
AND CHANGE
HARDINESS

• According to Gallup (2013) research, the best
organizations deeply integrate employee
engagement into the following four (4) areas:
❖Strategy and Leadership Philosophy
❖Accountability and Performance
❖Communication and Knowledge
Management
❖Development and on-going Learning
Opportunities
BEST PRACTICE
EMPLOYEE
ENGAGEMENT

• According to Gallup (2013), three (3)
strategies to accelerate employee
engagement are:
❑Select the Right People and
Managers
❑Enhance employees’ well-being
❑Develop employees’ strengths
STRATEGIES TO ACCELERATE EMPLOYEE
ENGAGEMENT

• Help employees align their greatest talents to
the expectations and responsibilities of their
roles.
• Incorporate strengths into performance
conversations and reviews and help
employees set goals based on their strengths.
• Focusing on strengths improves employees’
lives and the organization’s bottom line –
facilitates a win-win situation
STRENGTHS-BASED LEADERSHIP
APPROACH TO EMPLOYEE
ENGAGEMENT

• According to Gallup (2013), strategies to improve
employee engagement are:
❑ Use the right employee engagement survey
❑ Focus on engagement at the enterprise and local
levels
❑ Select the right managers
❑ Coach managers and hold them accountable for
their employees’ engagement
❑ Define engagement goals in realistic, everyday terms
❑ Find ways to connect with each employee
STRATEGIES TO DEVELOP
EMPLOYEE ENGAGEMENT

LEARNING ACTIVITY 5
• Describe your role and contribution as a
change agent. Express your opinion regarding
the use of external change agents i.e. do you
support or oppose the contracting of external
change agents. Substantiate your reasoning.
• By referring to the characteristics of
transformational leaders, describe how you
can demonstrate these during times of
change.
• How you will build resilience and change
hardiness amongst the workforce (refer to
the characteristics of highly resilient people)

LEARNING ACTIVITY 5
• How you will develop employee engagement
strategies within your HR team and/or at your
organization?
• Evaluate the current degree of your organization’s
employee retention by gauging against the
Deloitte’s Irresistible Organization.
• How you will lead your HR team to the pinnacle of
the Hierarchy of Commitment during times of
change at your organization?

• Why people resist change?
• Why it is so challenging to reduce resistance to change?
• Managerial techniques to reduce resistance to change
MANAGING RESISTANCE TO CHANGE

• Uncertainty (i.e. fear of the unknown)
• People’s self-interest is threatened
• A lack of trust and misunderstanding
• Belief that change is incompatible with the
goals and the interest of the organization
• A low tolerance for change is also a barrier to
organizational change
• Other general reasons
WHY PEOPLE RESIST CHANGE?

RESISTANCE TO
CHANGE –
“COMFORT
ZONE”

• People and their behaviour is the most difficult to change because
unlike structure and technology, in which managers have absolute
control, managers do not have absolute control over peoples’
thinking, attitudes and perceptions.
• “Unlike technology, structure, processes and strategy, people talk
back when confronted by uncomfortable levels of change.”
(Cotter, 2014)
• People are the greatest source of resistance to change because
people have minds of their own i.e. they have personalized and
subjective views regarding change.
• Change must involve the people - change must not be imposed
upon the people
WHY IT IS SO
CHALLENGING TO
REDUCE RESISTANCE
TO CHANGE?

LEARNING ACTIVITY 6
• In your work context, identify the
five (5) foremost reasons why
employees resist change. For each
of these 5 reasons, describe the
ways and means that you as a HR
manager can use to break down
these “walls of resistance”. Provide
practical examples.
discussion

MANAGERIAL
TECHNIQUES TO
REDUCE RESISTANCE
TO CHANGE

CHANGE
LEADERSHIP
PRINCIPLES
• At all times involve and agree support from people within
system
• Understand where you/the organization is at the moment
• Understand where you want to be, when, why and what the
measures will be for having got there
• Plan development towards above in appropriate achievable
measurable stages
• Communicate, involve, enable and facilitate involvement from
people, as early and openly and as fully as is possible.

LEARNING ACTIVITY 7
• By referring to each of the 6
techniques to manage employee
resistance to change, describe how
you as a HR manager can apply these
techniques in your work context.
Provide practical examples. Also
indicate at which stage of the change
process, each of these techniques is
most appropriate.
discussion

LEWIN’S 3-PHASE MODEL OF CHANGE

MCKINSEY 7-S
MODEL (OF
ORGANIZATIONAL
EFFECTIVENESS)

KOTTER’S
CHANGE
MANAGEMENT
PROCESS

• STEP 1: Forces for change (internal and environmental forces) which affect:
• STEP 2: Performance outcomes (individual, group and organizational) which
encourages
• STEP 3: Diagnosis of the problem (information, participation and change
agent) which leads to
• STEP 4: Selection of appropriate intervention (structural, behavioural and
technological) as constrained by S-P-O-T-S
• STEP 5: Limiting conditions (leadership climate, formal organization
structure and organization culture)
• STEP 6: Selection and Implementation of the method (timing, scope and
experimentation) provision for
• STEP 7: Evaluation of the method (feedback, adjustment, revision,
reinforcement)
APPLYING THE 7-
STEP,
ORGANIZATIONAL
STRATEGIC
CHANGE
MANAGEMENT
PROCESS

STEP 5: LIMITING CONDITIONS - FORCE FIELD
ANALYSIS

• Point 1: Change management requires both
an individual and an organisational
perspective.
• Point 2: A-D-K-A-R (awareness, desire,
knowledge, ability and reinforcement)
presents an easy-to-use model for individual
change.
• Point 3: The 3-phase process gives structure
to the steps project teams should take.
HIGH-LEVEL
OVERVIEW OF
PROSCI’S
METHODOLOGY

PROSCI’S
CHANGE
MANAGEMENT
METHODOLOGY

LEARNING ACTIVITY 8
• Evaluate the merits and application
and utility value of Prosci’s Change
Management methodology to HRM
change management. Is there a
viable, feasible and sustainable
business case for its implementation
value at your organization? Justify
your response.
discussion

CONCLUSION – DAY 5
• Key points
• Summary
• Questions
• Training Administration
• Good luck with the implementation of
HR change management processes,
systems and tools at your organization.

CONTACT DETAILS
• Dr. Charles Cotter
• (+27) 84 562 9446
• charlescot@polka.co.za
• LinkedIn
• Twitter: @Charles_Cotter
• https://www.facebook.com/CharlesACotter/
• http://www.slideshare.net/CharlesCotter

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