ORGANIZATIONAL CHANGE MANAGEMENT

RGANIZATIONAL

HANGE

ANAGEMENT

Course Material

All projects are begun to introduce a change into the business, whether new

processes, new technology or some combination of both. Many projects fail to

realize the desired business benefits however, because not enough attention is

paid to the “people side of change”. This course will provide a basic introduction

to the practice of Organizational Change Management (OCM) and the benefits of

introducing it into your project management approach. We will discuss some of

the key tenets of effective OCM and how you can begin to introduce them to

enhance your project’s value. Project management and OCM are complimentary,

yet different disciplines. Find out how they should be leveraged together to

increase successful adoption of change – after the project is closed.

iii

Table of Contents

Lesson 1: What is Organizational Change Management anyway?......................................................... 1

Topic 1: Why Change Management .................................................................................................. 2

Topic 1: Why Change .......................................................................................................................... 4

Topic 2: OCM vs. Change Control ....................................................................................................... 5

Topic 3: Definitions of the OCM Discipline ......................................................................................... 6

Topic 4: What does it look like? ......................................................................................................... 8

Exercise 1.1 ....................................................................................................................................... 10

Topic 5: Relationship to Organizational Readiness .......................................................................... 11

Lesson 1 Summary: Learning Objectives Recap ............................................................................... 12

Lesson 2: Understanding the OCM Framework ................................................................................... 14

Topic 1: Brief History of OCM ........................................................................................................... 15

Topic 2: Various Methodologies ....................................................................................................... 16

Topic 3: Consistent Concepts ........................................................................................................... 23

Exercise 2.1: Key Benefits and Concepts of OCM ............................................................................. 25

Topic 4: ACMP .................................................................................................................................. 26

Lesson 3: Project Management vs. OCM.............................................................................................. 30

Topic 1: A different focus? ............................................................................................................... 31

Topic 2: How OCM relates to the PMBOK® knowledge areas .......................................................... 41

Exercise 3.1 Stakeholder Analysis .................................................................................................... 42

Exercise 3.2 Stakeholder Analysis .................................................................................................... 45

Topic 3: OCM Skill Sets and Tools ..................................................................................................... 46

Topic 4: Integrated Processes .......................................................................................................... 49

Topic 5: Shared Goals and Challenges ............................................................................................. 51

Exercise 3.3 PM vs. OCM .................................................................................................................. 52

Exercise 3.3 – Project Management vs. OCM .................................................................................. 53

Lesson 4: Defining the Scope of OCM .................................................................................................. 56

Topic 1: Assessing the Scope of Change .......................................................................................... 57

Exercise 4.1 ....................................................................................................................................... 62

Topic 2: Assessing the Readiness for Change ................................................................................... 64

Exercise 4.2 - Assessing the Readiness for Successful Change ......................................................... 66

Topic 2: Change Impact and Risk Management ............................................................................... 68

Topic 3: OCM in your organization ................................................................................................... 71

Exercise 4.3: ...................................................................................................................................... 74

Lesson 5: Managing the Change ........................................................................................................... 81

Topic 1: Building a Vision .................................................................................................................. 82

Exercise 5.1 ....................................................................................................................................... 84

Topic 2: Identifying Resistance ......................................................................................................... 85

Topic 3: Resistance Mitigation ......................................................................................................... 91

Exercise 5.2 – Group Exercise ........................................................................................................... 93

Topic 4: Communication Strategies.................................................................................................. 96

Exercise 5.3 – Group Exercise ........................................................................................................... 98

The Screen Saver – From Ken Moran ............................................................................................... 98

Lesson 6: Creating an OCM Plan ......................................................................................................... 102

Topic 1: Plan Elements ................................................................................................................... 103

Exercise 6.1 HR Infrastructure Checklist (Tool) .............................................................................. 105

Topic 2: Relating the OCM Plan to the Project Management Plan ................................................ 108

Topic 3: The Training Matrix ........................................................................................................... 111

Exercise 6.1 ..................................................................................................................................... 114

Course Agenda

Day 1 Day2

8:30 – 9:00 Introductions 8:30 – 9:00 Review

9:30 - 9:45 BREAK 10:00 – 10:15 BREAK

11:30 -12:30 LUNCH 11:30 -12:30 LUNCH

2:00 - 2:15 BREAK 2:00 - 2:15 BREAK

4:00 GO HOME 3:30 - 4:00 Exam and Evaluation

ESSON

HAT IS

RGANIZATIONAL

HANGE

ANAGEMENT ANYWAY

Topic 1: Why Change?

Topic 2: OCM vs. Change Control

Topic 3: Definitions of the OCM Discipline

Topic 4: What does it look like?

Student Learning Objectives

After completing this lesson you should be able to

• Understand how OCM supports change initiatives

• Distinguish OCM from Change Control and PM Change Management

• Identify OCM’s role in Organizational Readiness

Approximate Presentation time: ½ hour

Topic 1: Why Change Management

There’s an old saying that the only things you can count on are “death and taxes”. In today’s world,

the only constant is CHANGE. We live in a world of technology and ever-shifting environments –

from political to economic to cultural. Organizations need to be able to respond to such externally

and internally driven changes with flexibility. Change initiatives drive projects, but are we truly

prepared to ensure the success of the change and not just the project?

Prosci, Inc. is a leader in research and content creation in the field of Change Management. They

annually prepare a benchmarking report revealing “Best Practices in Change Management”. Their

2011 study was conducted by surveying 650 participants in 62 countries. Of those participants, 70%

Inc.)

Think about all the influences that are affecting your organization today. How well prepared are you

to adapt to that change effectively? Are you doing everything you can to ensure that change is not

only implemented, but adopted and ingrained into your business?

Over the next two days we are going to look above and beyond the project to the entire scope and

impact of the CHANGE. It’s time to think outside of the PM-BOX!

Topic 1: Why Change Management

Industry studies have shown that projects fail due to a lack of strong project management structure

and expertise. But, as we know, projects are driven by change initiatives. What is now being

explored more carefully is how a structured approach to the “people side” of change is also needed.

Research indicates that companies continue to invest billions in new technology systems and

integration. For instance, Gartner estimates that expenditures on new customer relationship

management (“CRM”) systems alone are expected to exceed $1 billion by 2013*. Healthcare is

another industry experiencing significant change. IDC Health Insights reports that spending by

healthcare organizations on electronic health records (“EHR”) is projected to reach nearly $4.0

billion by 2015. Therefore, businesses that allocate significant dollars to change projects have a

strong economic incentive to invest in a structured approach to change for employees given that the

probability of achieving their desired business results is nearly six times higher for organizations

effectively applying change management. (Prosci®)

Change management prepares the organization for the project impact, manages the transition from

how we do things today to how they will be done tomorrow – and puts special efforts into

reinforcing and anchoring the change into the everyday work and life of the organization.

Topic 1: Why Change Management

The reality is:

- Organizations introduce change through projects and initiatives

- Changes impact how individuals do their work

- Success of the change is dependent on the individuals doing their work differently

To understand the difference in focus between Organizational Change Management and Project

Management requires us to take a broader view than we often do as Project Managers. If an

organization desires a change that will improve customer satisfaction, one aspect could be to

implement a website for customer feedback (the Project). Without some of the following change

activities, the organization could fail to realize the results they desired.

• Clear communication around vision - “I don’t know why we are doing this.”

• Coaching by supervisor level management – “This doesn’t pertain to me. I’m not on the

project team. No reason to upset my work.”

• Effective role-based training – “I don’t know how to use the new technology. My

spreadsheets will work just fine.” OR “We don’t work in IT; our job is meeting with

customers. That won’t change.”

• Comprehensive impact analysis – “Our computers don’t allow us to access the internet.”

Are you considering the scope of the entire change or just the project?

Topic 2: OCM vs. Change Control

In the world of project management, the term change control (or management) is usually associated

with two distinct types of change that could impact the project:

• In technology projects, it is critical that there be a structured process in place for introducing

changes (e.g. new code or configurations) into the technical environment. This ensures that

system performance is minimally impacted to reduce risk and that a defined back-out

strategy is in place in case of failure as a result of the changes.

• Project managers also create processes to manage changes to scope of the project by

requiring appropriate review and approval for change requests that could affect project cost

or duration.

Organizational Change Management is a structured process to introduce change into the entire

business organization by addressing the individual needs of all those impacted by the change –

whether a participant in the actual project or not. Let’s talk about the definition of OCM.

Topic 3: Definitions of the OCM Discipline

Project Management Institute (PMI) is a not-for-profit membership association for the project

management profession. PMI’s standards for project, program and portfolio management are the

most widely recognized in the profession and are captured in A Guide to the Project Management

Body of Knowledge (PMBOK®). The standards are developed and updated by thousands of PMI

volunteers and provide a common language for project management professionals globally. Their

definition of project management has come to be accepted as the seminal definition:

“…the application of knowledge, skills, tools and techniques to project activities to meet

project requirements” (PMBOK Guide)

OCM does not yet have a similar governing body. A variety of methodologies and approaches are

espoused by for-profit consulting and training organizations, which creates some challenges in

establishing a true professional discipline. You will find a variety of definitions and terminologies as

you read about OCM. Look for the consistent threads and basic concepts that will work in your

environment.

Topic 3: Definitions of the OCM Discipline

Topic 4: What does it look like?

At its most basic, Change is merely moving from where you are today to where you want to be in

the future. Sounds simple, right? What are often not simple are the transitions that must be made

to realize the benefits of the new and better you.

Maybe you have recognized that you aren’t as healthy as you would like to be. It may be easy to

envision a healthier, more energetic you; but the adjustments to lifestyle and established habits

needed will be uncomfortable and stressful. You could give up before you get there or abandon the

changes if you don’t see immediate results.

By recognizing this, you are on your way to understanding how change in your organization also

introduces uncertainty and fear. Managing that transition in a strategic and systematic way is

critical to achieving success.

Look at the following example in the health care world:

By looking at the changes envisioned for this organization, can you begin to identify some of the

challenges they may face? Without clearly understanding what these transitions will require for all

level of worker (Leadership, Middle Managers, Supervisors, Front Line staff), the view of tomorrow

may not be achieved to the extent it is planned.

Using a major change planned for your agency, let’s begin to identify where there may be hurdles.

• What does the current world look like?

o Who does the work?

o How do they do it?

o With whom do they interact?

o How effective is the work today?

o What is the leadership hierarchy?

• How do you envision the new world?

o Will the workers change (number, role, skills, etc.)?

o How will they do their work in the future (location, processes, systems, etc.)?

o Will their constituent interactions change (face-to-face vs. on-line; will the

population increase, decrease, change)?

o Do you have expectations of improved effectiveness (new performance standards;

more accountability; improved skills)?

o Will the organization chart be revamped (new supervisors, team dynamics, more or

less middle management)?

Organizational Change Management is a structured process to introduce change into the entire

business organization by addressing the individual needs of all those impacted by the change –

whether a participant in the actual project or not. Now let’s put this to work in your world.

Exercise 1.1

Within your group, select a major change initiative that is planned (or ongoing) for your agency.

Using the space below, briefly describe 2-3 major functions in the current world and how they will

be different in your vision of the future once the change has been implemented.

_________________________________ __________________________________

Topic 5: Relationship to Organizational Readiness

Change management is an approach or a set of activities. Using Stephen Covey’s habit #2, begin

with the end in mind, you must focus on the desired outcome – which is for the organization to be

ready to absorb and adopt the change. The term, “organization readiness” for purposes of our

discussion is the desired outcome. OCM activities are very important, but if they don’t lead to an

increase in the organization’s ability to accept change, a failure has occurred similar to projects that

fail to meet requirements.

Organizational Change Management helps impacted people accept process, tool and business

model changes through techniques such as communication, training and knowledge

management. Organizational Readiness is broader, in that it uses those tactics as well as strong

leadership, robust program activities and a focus on efficient, effective and mature work

practices. Organizational Readiness is the operational effectiveness and workforce alignment that

results from change management.

Change agents (OCM team members and supportive leadership) can influence employee readiness

for organizational change. Readiness for change is recognized as the opposite of resistance to

change. Readiness is generally described in terms of the organizational members' beliefs, attitudes,

and intentions. These can be, and should be, influenced by the activities undertaken as part of the

OCM framework.

Lesson 1 Summary: Learning Objectives Recap

• Understand how OCM supports change initiatives

Change management prepares the organization for the project impact, manages the transition

from how we do things today to how they will be done tomorrow – and puts special efforts into

reinforcing and anchoring the change into the everyday work and life of the organization.

• Distinguish OCM from Change Control and PM Change Management

Change control is a process to manage changes introduced into the project environment

(technical or scope) that could create risk for the project. These changes are managed through

documentation, review, escalation and approval activities.

OCM is a structured process focused on the “people side” of change; to assist in transitioning

people from the current state to a desired future vision for the business.

• Identify OCM’s role in Organizational Readiness

Organizational Change Management helps impacted people accept process, tool and business

model changes through techniques such as communication, training and knowledge

management. Organizational Readiness is the operational effectiveness and workforce

alignment that results from change management.

Notes

ESSON

NDERSTANDING THE

OCM

RAMEWORK

Topic 1: Brief History

Topic 2: Various OCM Methodologies

Topic 3: Consistently Defined Concepts

Topic 4: ACMP

Student Learning Objectives

After completing this lesson you should

• Understand where the discipline of OCM is in its development

• Be familiar with various OCM methodologies

• Understand the basic precepts of OCM

Approximate Presentation time: 1 hour

Topic 1: Brief History of OCM

Topic 2: Various Methodologies

The field of OCM is somewhat like the old Wild West. There are many gun-toting experts out there

who can sell you a methodology guaranteed to make your change successful. So, how do you know

what you really need?

Without internationally adopted standards such as those driven by the Project Management

Institute (PMI) or the International Organization of Standards (ISO), it can be confusing to know

where to start. OCM is, relatively speaking, still in its infancy as a full-fledged, accredited

professional designation. As you will see, there is any number of proprietary methodologies or

systematic approaches to implementing change management, with some highly recognized and

accepted leaders in the mix. Until the standards are developed to create that “baseline” of

understanding and language, let’s start by simply looking at a few of the most well-known.

Topic 2: Various Methodologies

One of the cornerstone models for understanding organizational change was developed by Kurt

Lewin back in the 1950s, and still holds true today. His model is known as Unfreeze – Change –

Refreeze, refers to the three-stage process of change he describes. Lewin, a physicist as well as

social scientist, explained organizational change using the analogy of changing the shape of a

block of ice.

Key Points

Lewin's change model is a simple and easy-to-understand framework for managing change.

By recognizing these three distinct stages of change, you can plan to implement the change

required. You start by creating the motivation to change (unfreeze). You move through the

change process by promoting effective communications and empowering people to embrace

new ways of working (change). And the process ends when you return the organization to a

sense of stability (refreeze), which is so necessary for creating the confidence from which to

embark on the next, inevitable change.

Topic 2: Various Methodologies

Founded in 1994, Prosci began conducting formal change management studies in 1997, released in

1998. They have since performed a variety of studies over the next two decades producing the

largest body of knowledge on change management. In 2001 Prosci released their first book for

employee’s titled the “Employee’s Survival Guide to Change,” and in 2003 Prosci began offering

open enrollment certification programs for change management professionals. By 2006 the Prosci®

ADKAR® Model had become increasingly popular world-wide, and Prosci formally presented the

model in Jeff Hiatt’s book, “ADKAR: A model for change in business, government and our

community.” They are widely accepted as having one of the leading methodologies and certification

programs in the discipline.

ADKAR® is based on a five-step approach:

Awareness

• What is the nature of the change; need for change; risk of not changing

Desire

• What’s in it for me (WIIFM)? – there is a personal choice involved

Knowledge

• Understanding how to change

• Learning new skills

Ability

• The demonstrated capability to implement the change

• Achievement of the desired change in performance or behavior

Reinforcement

• Actions that increase the likelihood that a change will be continued

• Recognition and rewards that sustain the change

Prosci®, like Lewin, bases their model on three states of change:

For more information about their methodology and certification program, go to:

www.prosci.com

Topic 2: Various Methodologies

Gartner, Inc. is an American information technology research and advisory firm headquartered in

Stamford, Connecticut, United States. (It was known as GartnerGroup until 2001.) It is an

information technology research and advisory company providing technology related insight.

Research provided by Gartner is targeted at CIOs and senior IT leaders in industries that include

government agencies, high-tech and telecom enterprises, professional services firms, and

technology investors.

They have identified a concept of change that is based on ten stages of struggle:

• Blame

• Denial

• Testing

• Suspicion

• Disbelief

• Hope – Initial Action

• Hard Work

• Initial Success

• Acceptance

• Ongoing Improvement

One of their key lessons is that various stakeholders to change (sponsors, change agents and

targets) will progress through the Change Struggles at different times. The decision-making and

action processes associated with change mandate that different groups will be introduced to the

idea of change at different times.

• Executives/Sponsors must initially approve the change. Logically they are the first group to

reach a level of agreement that the change is necessary and will bring benefit.

• Change agents are engaged by the sponsors to help lead the change to successful results.

They must also go through a transition process to be able to understand the scope of the

impact of change and develop a workable strategy to address it.

• Finally, are the targets of change. They are generally the last to know, and will potentially

feel the most impact. This group should be given time, information and tools to be able to

adapt to the change.

It is critical to understand the varying progressions through the cycle.

What you can do:

• Ensure that your sponsors are aware of the time necessary to bring targets to a level of

Hope/Initial Action.

• Build steps in your communication plan to measure key constituents at every step to gauge

where they are in the progression and how you need to align your message.

• Create cross functional collaboration (project management, business process expertise,

change management expertise and human resource expertise) to reach optimum

acceptance.

Topic 2: Various Methodologies

Change Guides is one of many consulting firms that have developed their own methodology to

support businesses with change initiatives. They have an extensive library of tools (some of which

you will be using today) that are easily obtainable on their website at a low cost.

For more information on resources available from Change Guides, visit:

www.ChangeGuidesLLC.com

Topic 3: Consistent Concepts

A globally accepted language or methodology for OCM is not yet in place. As a result, one can find a

variety of approaches presented by a myriad of consulting organizations. Prosci is the sole not-for-

profit organization dedicated to content development and data gathering in the world of OCM.

Through this review of some of the most well-known leaders in the industry, there are some

comparable, recurring tenets. Whether you adopt a 3-step, 5-step, 8-step or 10-step process, there

are some key elements to an effective OCM approach.

Successful change management is more likely to occur if the following are included:

1. Create a strong business case for the change; one that is clearly aligned with the business

mission and strategic goals of the organization and can show why the change must be done

(and why NOW).

2. Consider the comprehensive impacts of the change – not just those associated with

technology or a new business process.

3. Effective communications that informs various stakeholders of the reasons for the change

(why?), the benefits of successful implementation (what is in it for us, and you) as well as

the details of the change (when? where? who is involved? how much will it cost? etc.)

4. Devise an effective education, training and/or skills upgrading scheme for the organization

5. Counter resistance from the employees and align them to overall strategic direction of the

organization

6. Provide personal counseling (if required) to alleviate any change-related fears

7. Monitoring of the implementation and fine-tuning as required

Exercise 2.1: Key Benefits and Concepts of OCM

Group Exercise:

Topic 4: ACMP

The Association of Change Management Professionals (ACMP) is a new organization. Their website

states their mission as:

ACMP is dedicated to advancing the discipline and profession of change management

practices that support the success of individual and organizational change for the realization

of intended business results.

Some facts about the organization:

•

Born from the interest of 200 attendees at the 2009 Global Conference on Change

•

Incorporated as a not for profit professional membership organization 2011

•

ACMP Membership has grown to over 1400 members across all seven continents in two

years – and continues to grow!

•

ACMP is the leading resource for access to change management education, information and

networking.

•

ACMP is leading development of the first global standard in change management and

subsequent professional credential – The Certified Change Management Professional

(CCMP®).

•

ACMP’s vibrant virtual community connects you with thousands of change practitioners and

service providers giving you instant access to information and best practices for managing

change.

•

ACMP’s Annual Global Change Management Conference is recognized as the leading

education and professional networking conference for change thought leaders and

practitioners around the world for discovery and experience of new trends and best

practices in change management.

For additional information, go to:

http://www.acmpglobal.org

Lesson 2 Summary: Learning Objectives Recap

• Understand where the discipline of OCM is in its development

OCM is a relatively young discipline; only broadly adopted in the late 90s and early 2000s. There

is not currently a common language or methodology that has been accepted globally. Most

sources for OCM training and tools are provided by for-profit consulting organizations at this

time.

•

The Association of Change Management Professionals was incorporated as a not-for-profit

professional organization in 2011. They began work in October 2012 on the first global

standard in change management and subsequent professional credential – The Certified

Change Management Professional (CCMP®).

• Be familiar with various OCM methodologies

There are a number of leading organizations providing proprietary approaches and training in

the OCM discipline. Some of the most notable names in the industry and the basic steps in their

approaches are listed in the table below:

Lewin

Prosci

Kotter

Unfreeze

Awareness

Create Urgency

Change

Desire

Form a Powerful Coalition

Refreeze

Knowledge

Create a V

ision for Change

Ability

Communicate the Vision

Reinforcement

Remove Obstacles

Create Short

term Wins

Build on the Change

Anchor the Changes

• Understand the basic precepts of OCM

Basic concepts of OCM theory:

• Know why you are changing

• Understand how it will impact the organization

• Recognize and address resistance to change

• Plan activities that will prepare people for the change

• Assess and reinforce the change

Notes

ESSON

ROJECT

ANAGEMENT VS

OCM

Topic 1: A different focus

Topic 2: How OCM relates to PMBOK®

Topic 3: OCM Skill Sets and Roles

Topic 4: Integrated Processes

Topic 5: Shared Goals and Challenges

Student Learning Objectives

After completing this lesson you should be able to

• Understand how OCM process relates to Project Management

• Identify the skill sets needed for OCM team members

•

Understand how to integrate OCM tasks into a project plan

Approximate Presentation time: 2 hours

Topic 1: A different focus?

“…too many organizations, when forming their project teams, make the incorrect assumption that

project managers (PMs) and/or business analysts (BAs) will handle OCM. But these people have far

too many other responsibilities to be able to devote the necessary time and energy to do an

effective job at OCM. And with all due respect to their capabilities, they cannot possibly have

sufficient knowledge of, and experience with OCM… Change projects fail because of organizational

resistance almost twice as often as they do because of any technical issue, including poor project

management. It appears almost irresponsible to convey a message that says that focusing on the

steps of the project management process is sufficient to ensure success.”

The Need to Integrate Project

Management and Organizational Change by Henry Hornstein, March/April 2012 Ivey Business Journal

Success in Project Management is as much about creating ownership and shared meaning as it is

about following the process steps. Project management needs to consider the entire lifecycle of a

system, to extend its thinking beyond design and development.

Project management and change management each contribute a critical ingredient to successful

change. Although they vary in terms of focus and approach, each are essential in order to navigate

the transition state to reach a future state

Topic 1: A different focus?

Change Management Project Management

Definition

Change management is the application of processes and

tools to manage the people side of change from a current

state to a new future state such that the desired results

of the change (and expected return on investment) are

achieved.

*From PROSCI®

Definition

Project management is the application of knowledge,

skills, tools and techniques to project activities to meet

project requirements.

*From PMBOK® Guide

Intent

To ensure that the solution is embraced, adopted and

used by employees impacted by the change

Intent

To ensure that the solution is designed, developed and

delivered effectively

Focus

Employees impacted by a project or initiative (those who

must adopt and use the change)

Focus

Tasks and activities required to create and implement the

technical solution associated with a change

Scaling factors

Characteristics of the change, attributes of impacted

organizations, degree of “people” change required

Scaling factors

Complexity and degree of technical change associated

with the particular project or initiative

Process

From the PROSCI® 3-Phase Process

• Phase I – Preparing for change

• Phase 2 – Managing change

• Phase 3 – Reinforcing change™

Process

From PMBOK® Guide

• Initiating

• Planning

• Executing

• Monitoring and controlling

• Closing

Tools

Common tools used in change management

• Individual change model

• Readiness assessments

• Communication plans

• Sponsor roadmaps

• Coaching plans

• Training plans

• Resistance management

• Reinforcement mechanisms

Tools

Common tools used in project management

• Statement of Work

• Project Charter

• Business Case

• Work breakdown structure

• Gantt chart

• Budget estimations

• Resource allocation

• Schedule/tracking

Measurement of success

Measurement focused on the “people side” of change

elements, including:

• Speed of adoption by impacted employees

• Ultimate utilization by impacted employees

• Proficiency of impacted employees

• Achievement of results and outcomes*

*Because results and outcomes are dependent on

individuals adopting the change, this is a primary focus

Measurement of success

Measurement focused on the “technical side” of change

elements, primarily:

• On time

• On budget

• Meets technical requirements

• Achievement of results and outcomes*

*In some cases, intended results and outcomes take a

secondary role behind time and budget targets

Practiced by

Change management includes a system of “doers”

Practiced by

Project management is typically practiced by a project

throughout the organi

zation, not just change

management practitioners, including:

• Executives and senior leaders: sponsoring the

change

• Managers and supervisors: coaching their direct

reports through the change

manager and a project team assigned to a specific project

or initiative.

• Project managers: manage the tasks, activities

and resources to execute the technical side of the

effort

• Project team: comprised of subject matter

experts and representatives from the organization

Topic 2: How OCM relates to PMBOK® Knowledge Areas

There are four knowledge areas in Project Management that have been linked to OCM:

Project Integration Management coordinates the other areas to work together throughout the

project.

Project Scope Management is a set of processes used to ensure that the project includes all of the

requirements and no new requirements are added in a way that could harm the project.

Human Resource Management includes all of the processes used to develop, manage and put the

project team together.

Communication Management determines what information is needed, how that information will be

sent and managed, and how project performance will be reported.

There could be an argument for including one more:

Quality Management ensures that the project meets its requirements, or does what it is expected to

do.

Project management quality however, is generally restricted to validating that the “product”

implemented performs in the way defined during Requirements gathering. The product may

perform as designed, but if it is not adopted and absorbed into the business environment

effectively, then the change has not been successful.

We will look at each of the PMBOK® processes within the four knowledge areas to see where the

touch points are between PM and OCM.

Topic 2: How OCM relates to the PMBOK® knowledge areas

Develop Project Charter – The charter for the project should include an agreed upon approach and

strategy for OCM. Later in this course, we will identify some of the key elements that should be

included and look at whether or not one charter is sufficient for a complex OCM initiative.

Develop Project Management Plan – Again, OCM must be included as a key area of work in the plan.

Depending on the scope of OCM to be utilized, you may want to create a separate OCM plan. More

information on this later as well….

Monitor and Control Project Work – OCM activities should be managed and tracked similarly to PM

activities. Outputs from this process (status and milestones) will become inputs to the OCM process

for developing communication materials and assessing employee awareness and readiness for the

change.

Close Project Phase – This phase serves as a milestone for OCM. Much of the OCM work will be

done post-project close; to begin tracking adoption of the product into the environment. Transfer

of ownership to the business should be communicated effectively. Many sectors of the organization

will only celebrate success when they begin to realize the benefits of the change, which may not

come immediately.

Topic 2: How OCM relates to the PMBOK® knowledge areas

Collect Requirements – There is often a tendency to focus success metrics on the performance of

new tools, rather than processes. Spend time with the business owner to understand their

expectations of the benefits from the change investment. Make sure that success metrics are

captured to reflect:

• Possible savings due to reductions in overhead costs (imaging vs. paper documents)

• Anticipated timelines for realization of benefits

• Reduction in time to process transactions, improving business processes

• Improvements in customer satisfaction (from x% Very Satisfied to y %)

Define Scope – Include OCM processes and activities within the scope of the project during early

planning stages; not as an afterthought when problems arise.

Develop Schedule – Develop an integrated schedule to reflect both PM and OCM activities.

Consider interdependencies between the activities and make certain all parties have signed-off on

the commitments. Think about early wins that can be communicated to increase organization

readiness for the change.

Verify Scope – Use OCM metrics to assess performance of the entire change effort – not just

development of the project product.

Topic 2: How OCM relates to the PMBOK® knowledge areas

Develop Human Resource Plan - PMBOK® focuses on the Human Resource needs of the project

team, and managing that team throughout the project. OCM takes a broader view and looks at the

Human Resource needs of the organization to effectively respond to the change. Make certain that

a Human Resource SME is included in the planning for the change. They can provide valuable

expertise in defining the scope of the change, as well as guidance on how to coach and train staff.

Acquire Project Team – Ensure that resources are identified and committed for OCM as well.

Consider the different skill sets from those required to deliver the project. Don’t rely exclusively on

technical resources to perform change management activities. Once you have assessed the level of

change impact (see Lesson 4), determine the roles and skills needed.

Develop Project Team – Many organizations will have a mature level of understanding around

Project Management, but lack knowledge of OCM. Executives and managers will need to be

included early and given orientation and training to their roles in change management.

Manage Project Team – It is important to remember that the OCM team will continue to support the

change after the project is closed out. Make certain you have a structure in place for continued

tracking and reporting on adoption success.

Topic 2: How OCM relates to the PMBOK® knowledge areas

Identify Stakeholders – Expand the view of stakeholder analysis to ensure you have considered

everyone who will be impacted by the change, rather than focusing on the project alone. Begin to

develop a repository of information about key leaders in your organization and how they support

change efforts. This will help to identify champions for change in future efforts.

Plan Communication – Develop communication strategies that will address both project and change

objectives. Create a sponsor roadmap to ensure that continuous coaching and “cheerleading”

occurs before, during and after the project. Tailor communication for WIIFM and individual change

messages.

Distribute Information – Be creative and use a wide variety of communication vehicles.

Manage Stakeholder Expectations – Focus on business objectives. Make certain there is a clear

understanding between the business and the project team about expectations for success. (Will the

business owner call it a success if their employees are frustrated and don’t understand new

processes or tools?) Manage resistance and escalate when appropriate.

Report Performance – Don’t forget to include progress against OCM tasks and milestones.

Topic 2: How OCM relates to the PMBOK® knowledge areas

Expand the information you gather during planning for your Stakeholder Register. An OCM sponsor

cannot participate merely by reviewing deliverables and attending Steering Committee Meetings.

They must be a visible champion for the changes to the organization. Managers must assist in

actively coaching their staff on the new way of conducting business. Make sure you know which

leaders will be the best to perform these activities.

Consider:

• Are they familiar with OCM?

• Will they be comfortable being an active and visible sponsor?

• How have they managed changes in the past?

• Are they good communicators?

• Do the employees have respect for them?

• How much control do they have over the areas impacted?

Exercise 3.1 Stakeholder Analysis

Stakeholder Case Study

As Bob walked into his office, he thought about his last meeting. The meeting had gone well. His

executive team had presented an ambitious plan to the board and gained their approval to move

ahead. After six months of analysis and discussion, the executive team had proposed a major

restructuring and process improvement initiative. In order to save the hospital system, they would

close two buildings, going from seven to five. They would create new standardized processes across

all the hospitals for things like registering patients and ordering lab work. This initiative would help

them become financially solvent. It also would set the foundation for improved patient service.

Their current situation could no longer be tolerated. Being an urban healthcare system, they were

heavily dependent on Medicare and Medicaid reimbursement. That reimbursement had continued

to decline and they needed a way to cut costs and work more efficiently. Every month they spent

more than they took in. In addition, each of the seven hospitals worked independent of the others.

Each had their own unique processes and systems. Some worked better than others.

A few employees knew something was amiss. They’d seen the consultants roaming the halls. Some

had been interviewed about their work. Managers, close to the executive team, knew about some

of the basic recommendations. Communication up to this point had mostly been hearsay and

rumors. Now, there was finally a decision to communicate.

This ambitious initiative would take several years to complete. A lot of people would be affected

and it would take a lot of people for it to succeed. As Bob sat at his desk reflecting on the work

ahead, his phone rang. One of his executives, Amy, was on the other end. Amy was concerned

about the physicians’ reaction. They were not employees of the hospital but their support was

critical. Some physicians would need to move out of one building and into another. Their offices,

staff and equipment would be moved. What if they protested? He understood Amy’s concern and

told her they would meet soon to think about all the groups impacted by this project. As he hung up

the phone, he wondered about Dr. Jones. They had kept her informed during this process, and she

seemed to understand the need for the change. Maybe she could be an ally.

Bob sent an email to the executive team. Luckily, the executive team represented all divisions of the

hospital system. He was sure that they would bring diverse perspectives on who would be

impacted. He needed their ideas on who would be affected and how to get them on board.

Bob started to think about who would be impacted. Their healthcare system was a large employer

in the city. Anything this big would get people’s attention, both inside and outside the system.

After he hung up the phone, he started to make a list of individuals and groups that might have

unique concerns and questions.

Name Role &

Function

Issues

Concerns

Contact Awareness Understanding Desire Adoption Internalization

Exercise 3.2 Stakeholder Analysis

Topic 3: OCM Skill Sets and Tools

Consider sample skills that may be needed for a project team:

Technology Implementation: Developer

Infrastructure Architect

Business Analyst

Technical Writer

Web Designer

Construction: Concrete work

Welder

Machinist

Electrical Engineer

Architect

Crew Foreman

Merger: Financial analyst

Legal analyst

Contracts specialist

Organizational Branding expert

Activity Based Costing consultant

Facilities appraiser

Without focused and dedicated OCM resources, the changes that initiated the projects may not

have an opportunity for success. The Project Manager’s organizational and time management skills

– coupled with their industry knowledge – will provide them with the ability to effectively manage

the identified resources to meet the project objectives. The “people side” of the change requires an

understanding of the change impacts and resources that can exclusively address the needs of the

individuals impacted.

Topic 3: OCM Skills Sets and Tools

When an OCM methodology is applied, there can be clear delineation of responsibilities between

the Project Manager and Organizational Change Manager. Some of the plans that have historically

been the responsibility of the Project Manager can, and should, be reallocated. The chart shows

those deliverables that could be easily broken out between the two teams – keeping in mind that

those assigned to OCM must continue to address the project needs.

Topic 4: Integrated Processes

Integration between the state’s Enterprise Performance Life Cycle (Plan, Build, Run) and Project

Management Process Groups (Initiate, Plan, Execute, Monitor & Control, Close) has been presented

in the Managing by the EPLC Project Management course. OCM has a similar three-stage approach

– Prepare, Manage, Reinforce. The spacing on this chart reflects the fact that both EPLC and OCM

continue on beyond the close of the project. The methodologies are complimentary and should be

looked at as parallel, yet interdependent.

OCM focuses on the broader picture of the entire change, which could be supported by one or more

projects

• Implementation of a new software system to gather data and provide reports;

• Development of agency policies for handling new business program;

• Renovation and build-out of additional office space;

• Staffing restructure to consolidate regional offices into headquarters

The resources that implement OCM must also be committed to the entire scope of the effort. A

project is defined as a temporary endeavor designed to produce a unique product, service or result

with a defined beginning and end, undertaken to meet unique goals and objectives. Once the

unique product or service has been delivered, the project is closed and project resources are

generally released to move on to the next project.

A key tenet of OCM is reinforcement to ensure use and adoption of the change(s) implemented.

OCM resources must remain in place (even if only on a part-time basis) to conduct or monitor

follow-up activities geared to gathering success metrics. Without analysis to show how, or if,

change has been integrated into the organization’s daily business it will be difficult, if not

impossible, to determine whether the goals and objectives were achieved. The size and complexity

of the change again define the duration of time needed for monitored reinforcement.

Topic 5: Shared Goals and Challenges

Another similarity between Project Management and OCM is their shared challenges. Neither the

organizational change nor the project initiative will be successful without:

• Effective Communication

• Stakeholder Buy-in

• Leadership Support

OCM takes a somewhat more proactive approach in that it identifies the OCM role of managing the

sponsor and managers. Managers especially have not typically been trained on how to coach their

staff through change. Prosci® focuses heavily on the importance of defining a Sponsor Roadmap

based on an assessment of the organization and the change impact.

Exercise 3.3 PM vs. OCM

Exercise 3.3 – Project Management vs. OCM

(a real-world application)

Each team will be given a different life event to discuss. Using the columns below, list the

areas of concern or focus for a project manager versus those that an organizational change

manager would consider:

_______________________________ ________________________________

__________________________ ___________________________

Lesson 3 Summary: Learning Objectives Recap

• Understand how OCM process relates to Project Management

o PM focuses on implementing the change; OCM focuses on ensuring that individuals

are successful in adopting the change and absorbing it into their environment

o There is a close relation to four of the PMBOK® knowledge areas:

 Integration Management

 Scope Management

 Human Resource Management

 Communications Management

• Identify the skill sets needed for OCM team members

o The key skills needed for OCM resources are:

 Communication skills

 Change Management competency

 Flexibility

 Interpersonal Skills

• Understand how to integrate OCM and PM processes

o The EPLC, Project Management Process areas and OCM Processes are related and

interdependent

o Both EPLC and OCM extend beyond the completion of the project

o Key tools for OCM:

 Organizational Assessments

 Stakeholder mapping

 Communication and coaching plans

 Training programs

 Sponsorship roadmap

 Reinforcement activities

o Both OCM and PM share the challenges of having effective communication and

strong leadership support

Notes

ESSON

EFINING THE

COPE OF

OCM

Topic 1: Assessing the Scope of Change

Topic 2: Change Impact and Risk Management

Topic 3: OCM in Your Organization

Student Learning Objectives

After completing this lesson you should be able to

• Understand the impact of change

• Assess potential impacts and risks for change initiatives

• Identify the level of change management needed

• Recognize Organizational Change Structures

Topic 1: Assessing the Scope of Change

The Change Curve

The Change Curve model describes the four stages most people go through as they adjust to change.

You can see this in figure 1, below. When a change is first introduced, people's initial reaction may

be shock or denial, as they react to the challenge to the status quo. This is stage 1 of the Change

Curve. Once the reality of the change starts to hit, people tend to react negatively and move to

stage 2 of the Change Curve: They may fear the impact; feel angry; and actively resist or protest

against the changes. Some will wrongly fear the negative consequences of change. Others will

correctly identify real threats to their position. As a result, the organization experiences disruption

which, if not carefully managed, can quickly spiral into chaos. - See more at:

http://www.mindtools.com/pages/article/newPPM_96.htm#sthash.O003H9ZM.dpuf

For as long as people resist the change and remain at stage 2 of the Change Curve, the change will

be unsuccessful, at least for the people who react in this way. This is a stressful and unpleasant

stage. For everyone, it is much healthier to move to stage 3 of the Change Curve, where pessimism

and resistance give way to some optimism and acceptance. Tip: It's easy just to think that people

resist change out of sheer awkwardness and lack of vision. However you need to recognize that for

some, change may affect them negatively in a very real way that you may not have foreseen. For

example, people who've developed expertise in (or have earned a position of respect from) the old

way of doing things can see their positions severely undermined by change. At stage 3 of the Change

Curve, people stop focusing on what they have lost. They start to let go, and accept the changes.

They begin testing and exploring what the changes mean, and so learn the reality of what's good

and not so good, and how they must adapt. By stage 4, they not only accept the changes but also

start to embrace them: They rebuild their ways of working. Only when people get to this stage can

the organization can really start to reap the benefits of change. - See more at:

http://www.mindtools.com/pages/article/newPPM_96.htm#sthash.O003H9ZM.dpuf

Topic 1: Assessing the Scope of Change

These factors determine the outcome of any transformation initiative.

D. The duration of time until the change program is completed if it has a short life span; if not short,

the amount of time between reviews of milestones.

I. The project team’s performance integrity; that is, its ability to complete the initiative on time.

That depends on members’ skills and traits relative to the project’s requirements.

C. The commitment to change that top management (C1) and employees affected by the change

(C2) display.

E. The effort over and above the usual work that the change initiative demands of employees.

Topic 1: Assessing the Scope of Change

Steps for completing the P-P-P-P blank sheet exercise:

1. Start with a blank sheet of paper.

2. Divide the paper into four columns.

3. Label the first column "Project name" and answer the question: What is the project?

4. Label the second column "Purpose" and answer the question: Why are we changing?

5. Label the third column "Particulars" and answer the question: What are we changing?

6. Label the fourth column "People" and answer the question: Who will be changing?

7. Finally, pose the question: How much of the "Purpose" can be achieved if the "People" do

not adopt the change to their day-to-day work? Or, said another way, what percentage of

the "Purpose" of this project is dependent upon the "People" doing their jobs differently?

Change management connection:

The connection to change management is how dependent the "Purpose" is on the "People"

changing their behaviors. For every project or initiative, success is determined by how effectively

those individuals in the final column adopt and embrace the change to how they do their jobs.

When you use the exercise with a project team, you are forcing them to think about the individual

impacts of their project or initiative.

On a single sheet of paper, this exercise allows you to make the connection between the project, the

intended outcomes, the specific technical changes and the individuals and groups who must adopt

the change.

Change management connection:

The change management connection for this exercise is the perspective of change on two levels -

the organizational level and the individual level. In the exercise, you use a fairly simple and

accessible model (the three states of change) as the foundation for examining the Future State at

the organizational and the individual levels.

You may find that your project team can instantly define the Future State from the organization's

perspective, but struggle to even begin defining individual Future States.

This exercise can be eye opening for many who have always thought about change strictly in terms

of the organizational perspective. On a single sheet of paper you are able to introduce the individual

level of change and start the discussion about how to best facilitate these changes.

Prosci®

Exercise 4.1

The Four Ps

The Four PsThe Four Ps

The Four Ps

Topic 1: Assessing the Scope of Change

A combination of the organization’s culture and history with previous changes has a direct linkage to

the risk of successful change. If the employees do not trust that their leadership will handle the

change well (i.e. equitably treat staff that will be impacted by the change), it will be difficult to

obtain their buy-in.

After completing the assessments of the impact and the environment, it may be advisable to delay

or cancel implementation of the change. Similar to a project risk assessment, these factors should

be taken into consideration when planning the project schedule, resources and activities.

Topic 2: Assessing the Readiness for Change

OCM methodologies and strategies use a variety of tools to assist you throughout the assessment

and implementation process. This is an example of one tool to help you evaluate your

organization’s readiness to accept your change initiative. There are no “right” or “wrong” answers –

just an honest assessment of where you are and what level of engagement will be needed to move

the needle. Here is a description of the tool and how to use it:

WHAT:

• The Change Readiness Audit is a survey that evaluates the level of organizational readiness

for change.

WHY:

• To shape the Change Management strategy by helping the team determine what activities

will best target areas for improvement

• To highlight issues and areas that need further investigation

• To help the project team focus on critical areas

• To take a snapshot of how effectively change is being implemented

WHEN:

• Conduct the audit during planning for the change

• Update or reference the audit throughout the project

HOW:

 Determine whether a formal or informal Change Readiness Audit is required (A formal

assessment is recommended when a thorough, data-driven and robust assessment is needed.

An informal assessment may be appropriate when time and resources are short and a more

subjective assessment is adequate.)

• If a formal assessment is needed:

o Define the target audience that will be impacted by the change

o Define the survey population (either a random sample of the target audience or

only specific elements or levels of target audiences)

o Define the approach for implementing the survey (written, electronic or focus

groups and survey combined)

o Administer survey

o Prepare a summary of the assessment findings and present the results to project

leaders and stakeholders

o Determine what areas need further investigation and use other assessments as

needed

o Develop action plans to address any item or category that has several “no” or

“somewhat” answers

o Incorporate actions into a Change Management Work plan

• If the Change Readiness Audit is being used as an informal assessment:

o On a regular basis or when issues arise, review the checklist and answer questions

with individuals or small groups to determine areas of risk

o Determine what areas need further investigation and use other assessments as

needed

o Develop action plans to address any item or category that has several “no” or

“somewhat” answers

o Modify the Change Management Work plan if necessary

o Routinely assess organizational readiness for the change by scoring the checklist

Successful Outcomes

• When checks on the assessment tool move from “no” or “somewhat” to “yes”

• When the team agrees on actions that develop areas not yet ready for change and that

leverage areas already prepared for change

Exercise 4.2 - Assessing the Readiness for Successful Change

Complete the following form for your change initiative:





 The Tool: Change Readiness Audit

Yes Somewhat No

Vision and Business Case

Is there a complete and unambiguous vision / future state?

Are employees excited about the future?

Do people understand how the change will benefit customers and

stakeholders?

Is there a clear expectation of what successful change looks like?

Is there a clear understanding of the need for change?

Are there consistent and supportive messages from management on

the need for change?

Engagement

Is there recognition of who needs to be committed to the change in

order to be successful?

Is there adequate participation by middle and lower managers in

designing the future state?

Are there allowances for ensuring that involvement will not cause

undue stress on the organization?

Is there a safe outlet for feedback including reactions, concerns and

comments?

Leadership

Is there a leadership team that is accountable for the success of the

change?

Do leaders demonstrate commitment to the change through actions as

well as words?

Are leaders willing to commit resources to the implementation and

sustainability of the change?

Do leaders invest their personal time and attention to following through

on actions related to the change?

Implementation Effectiveness

Are there enough resources to carry out the strategies (people, time

and money)?

Are there well trained people with time available within the company to

carry out / apply the tools?

Is there a means of measuring successful change?

Sustainability

Is there an understanding of how to sustain the change through

modifying HR systems (such as staffing, training, appraisal, rewards,

communication)?

Have new measurement and reward systems been implemented?

Have new training and development systems been implemented?

Is the organization structure appropriate for the future state?

Does the organization have the skills / competencies to get the job

done?

Is there understanding of how to sustain the change among leaders?

Is there a plan for adapting the change over time to shifting

circumstances?

Topic 2: Change Impact and Risk Management

In addition to the knowledge areas discussed earlier (Lesson 3), the area of Risk Management should

be considered:

- Potential risk of the change not being accepted or adopted by staff/customers/stakeholders

is often identified in project risk logs. Without conducting the environmental and

organizational assessments recommended by OCM however, appropriate, targeted risk

mitigation strategies cannot be identified.

- If OCM methodology is not utilized for projects that have a potential for large impact, this

should be identified as a risk to achieving full benefits from the investment.

Topic 2: Change Impact and Risk Management

Similar to the risk log maintained for the Project Management Plan, OCM risks should be captured

and managed in a document available to all team members and for Sponsor level reporting. This

sample log shows the type of information needed. If the project and change are being managed

together, risks can also be managed together. Just be certain that all risks are given equal

consideration and appropriate data is maintained.

Following is a sample OCM risk evaluation structure that was used by the Northumberland County

Council in the UK to evaluate risks for the coal mining industry. (For a copy of their Toolkit for

Organisational Change, view http://jisc.cetis.ac.uk/ and search for “toolkit”.)

Qualitative measures of Consequence or Impact

Qualit

ative measures of Likelihood

Level

Descriptor

Example detail description

Level

Descriptor

Example detail description

Catastrophic

Death, toxic release off

site

w/detrimental effect, huge

financial loss

Almost certain

Is expected to occur in most

circumstances

Major

Extensive injuries, loss of

production capability, off-site

release w/no detrimental

effects, major financial loss

Likely

Will probably occur in most

circumstances

Moderate

Medical treatment required,

on-site release immediately

contained w/outside

assistance, high financial loss

Possible

Might occur at some time

Minor

First aid treatment, on

site

release immediately

contained, medium financial

loss

Unlikely

Could occur at some time

Insignificant

No injuries, low financial

loss

Rare

May occur only in exceptional

circumstances

Topic 3: OCM in your organization

It is not unusual to see “lack of user buy-in” as a standard risk on technology projects. Without

implementing OCM best practice to assess the level of anticipated resistance however, mitigation

strategies identified will be guesses, at best.

The most prevalent approaches to offset resistance are generally training and/or communication. In

both instances it is important to understand more about the true impacts of the change to better

target appropriate audiences with an appropriate message.

Make certain that the impacts have been analyzed and captured as a risk, even if structured OCM is

not implemented in your business. The lack of focus on OCM should also be identified as a critical

risk, when not addressed as part of the approach to change.

Topic 3: OCM in your organization

Scale the level of OCM methodology to the complexity and impacts of the change. Some projects

may not create a broad impact to the organization. By conducting some level of initial impact

assessment, you can begin to tailor the amount of OCM structure needed. At least some

consideration should be given to the “people side” of change during the development of the

Business Case or early project planning.

Topic 3: OCM in your organization

__________________________________________________________________________________

OCM analysis can also drive decisions regarding the way the change implementation team is

structured.

For projects that are low impact, low complexity and shorter in duration, the structure of having the

change management team as a subset of the project management team may be the best solution

for your organization. If however, there are broad impacts (both internal to the organization and

externally to customers and other constituents) and the change is highly complex, you may need to

consider having a separate, dedicated change management staff with no other project-related

responsibilities.

There is no right or wrong answer. Use planning analysis results to support the most viable

recommendations for your environment.

Exercise 4.3:

Instructions:

Read the Case Study below, and answer the following questions:

What is the scope of the change being planned?

How complex is the change? Give examples of process, technology, job roles, business model, etc.

Based on the information in the study, can you thoroughly assess the environment? If so, what did

you find? If not, what additional inputs might you need to do so?

What change risks have you identified?

What change structure would you recommend, and why?

Case Study – Speedy Office Supplies Web Expansion Project

Company Overview

Speedy Office Supplies has been in business for 15 years and is recognized as the leader in

discount office supplies. We have a reputation of providing high quality products at

reasonable prices and offering superior customer service. We are selling to corporate

clients, governmental agencies, and individuals. Our customers are served by over 40,000

employees through direct sales, catalogs, e-commerce and more than 2,000 stores. Eighty

percent of our business is currently done in our 2,000 retail stores.

Over the past five years the Retail Store Division has shown a steady decline in sales and

profitability; energy costs have increased by 30% for our fleet vehicles and retail stores;

employee health care costs have increased by 75% and continue to rise. Market trends and

customer preferences are indicating that customers desire the ability to order their

products on-line at times convenient to them. The SOS management team believes if we

phase-out the Retail Store Division and replace it with a web-based ordering system and

consolidation of our distribution network, we anticipate a savings of nearly 10 million

dollars per year. This would also need to integrate into the existing supply chain systems.

Customer satisfaction surveys also indicate a favorable reaction to the concept of web-

based sales, which could increase our current sales by at least 25% over the next 5 years.

Based on this information SOS management has made a decision to close all the brick and

mortar stores within 18 months. We believe this decision will significantly cut costs and that

we can be just as successful selling our products on our website.

Currently orders for products are received via in-store requests, phone calls, or catalog mail-

in from customers. We access our online system to check inventory, prices, and estimated

shipping dates. If the order total is over $100,000 we turn it over to a supervisor. We then

call the Credit Card Authorization Company to check the customer’s credit card account. If

the credit card charge is authorized we enter the order into the system. The current system

is an old mainframe application and is very cumbersome.

There are purchasing agreements, special discounts, and payment terms for our clients

purchasing over $50,000 per year. In the past, we have billed these customers on a monthly

basis, providing them with a detailed listing by location of their purchases. We want to

make it easier for them to pay via credit card each time they place an order to increase our

cash flow and lower our Accounts Receivable. If possible, we still want to provide select

customers the same reporting on a monthly basis for their purchases by location.

Federal Express and UPS are currently bidding on the exclusive rights for delivery of all

customer office supplies. Each company is proposing an online interface to track shipments,

including the name of the person who signs for the delivery. The shipment will need to have

a label and detailed purchase order slip with the package. The cost of shipping is

determined by the size of the package, weight, location, insurance, and timeliness of

delivery. The customer will need an accurate shipping cost at the time of purchase.

Project Request

Our main focus for this project is to create the shopping experience for our retail customer

on the website and to place product orders on the Internet. We want to have real time

information regarding product description; quantities; pricing; availability; payment

processing; shipping method options with associated costs; delivery date; and order

tracking. All information currently available at the retail stores and in the catalogs should be

available and consistent with the Internet.

It would be nice if there were a place on the Internet for the customer to build a profile and

store frequently purchased items in a list to use for future purchases. This would be very

beneficial for large organizations that purchase the same products frequently.

We envision using our existing customer number and allowing each customer to create a

password to ensure security. Anyone could look at the products online, but only registered

customers would be allowed to place orders. The web site should have search ability by

several options: product item number (from the catalog), product type, color, and size.

Hopefully when a customer places an order the software would quickly calculate a shipping

charge and present the order total to the customer. We would not allow orders totaling

more than $1000 to be placed on the web. The software should also email a confirmation to

the customer if requested.

Departments Involved

The Marketing Department is responsible for customer reporting and the negotiations for

preferred customer status including volume discounts. Our largest customers receive one

monthly bill for all their departments’ purchases and a report showing the detailed

purchases. Additionally, marketing maintains the customer profiles, which are used to

process orders, verify billing information, discounts, and reduce redundancy by eliminating

the need for the customer to always enter their company information.

The Customer Service Department will need access to all information regarding customer orders to

assist with the web site usage and handle any possible complaints.

Accounts Receivable is responsible for processing and sending bills to our preferred customers. The

web ordering system will need to notify accounts receivable when one of our preferred customers

request their order to be direct billed. Some customers have negotiated payment terms and

discount rates based on volumes. They work with the Collections Department for any outstanding

receivables beyond 90 days. On a monthly basis Accounts Receivable produces an aging report.

Inventory Management is impacted by a reduction in inventory from placed orders and an increase

in inventory from cancellations and returns. They are responsible for managing the inventory and

placing orders with vendors. Inventory Management is also responsible for handling returns,

including items that have to be returned to the suppliers as defective.

Order Fulfillment receives an order notification from the order processing system containing all

necessary information required to assemble the order. They are responsible for producing the

packaging slips, retrieving the supplies, assembling the order into a bin or crate, and delivering the

order to the Shipping Department.

The Shipping Department receives the order from the Order Fulfillment department and prepares

the order for shipment. The packing slip contains the shipping method requested by the customer

and the estimated shipping timeframe. The Shipping Department is responsible for notifying the

shipping company and updating the order status.

Outside Organizations

The Shipping Company currently has an online tracking system. Our web ordering system will have a

direct link to the shipping company’s web site for the customer to track packages using the tracking

number provided by the Shipping Department to the order status system.

The Credit Card Processor currently authorizes customer purchases made in the stores, over the

phone, or via fax. An additional interface will need to be established between the web application to

receive the customer and order information and to return an authorization code.

Lesson 4 Summary: Learning Objectives Recap

Understand the impact of change

When change is introduced into an organization, there is a related Productivity Dip that occurs. The

purpose of OCM is to reduce the size and duration of the expected dip by understanding the

potential impact(s) and proactively managing the change.

In order to understand the scope of the impact, one must assess both the change itself and the

environment (both at the organization level and the individual level).

Assess potential impacts and risks for change initiatives

Just as in Project Management, a structured approach to managing the risks of change impacts is

required. Identify potential impacts; assess the risk based on the degree of impact and probability;

then put in place mitigation approaches (process, training, communication, etc.)

At a minimum, after this course you should begin to always identify impacts on the “people side of

change” in every project your organization undertakes.

Identify the level of change management needed

Understanding the scope of the change and its potential impacts – along with an assessment of the

organization’s ability to manage change – will drive decisions about the level and structure of

Organizational Change Management required.

Recognize Organizational Change Structures

OCM SMEs and change leaders can be incorporated into the Project Management team or stand

alone and report independently to the Sponsor. There is no “right or wrong” approach. The

decision will be driven by an assessment of the change, organizational acceptance of OCM practices,

resource availability and hierarchical structures.

Notes

ESSON

ANAGING THE

HANGE

Topic 1: Building a Vision

Topic 2: Understanding Resistance

Topic 3: Resistance Mitigation

Topic 4: Communication Strategies and Vehicles

Student Learning Objectives

After completing this lesson you should be able to

• How to create a vision for change

• Understand the nature and types of resistance

• Build effective strategies for identifying and addressing resistance

• Develop communication strategies to support OCM

Approximate Presentation time: 1.5 hours

Topic 1: Building a Vision

Every successful large-scale change that I have seen has, as a part of it, a change vision.

(John P. Kotter)

A change vision is important to communicate the “what and why” of the change in order to increase

buy-in both internally and externally to the organization. It should:

- Align the change to the organization’s mission and vision

- Show how the change is in step with the organization’s value statement

- Reinforce with employees why they need to “get on board”

- Explain to customers or constituents what they can expect to see – “Please be patient while

we are working to improve our website to serve you better.”

Topic 1: Building a Vision

The vision should be “EASY” to understand, communicate, feel and visualize.

• What will the future look like?

• Is it easy for anyone to understand and grasp?

• Is it short, sweet and to the point?

• Can it be spoken in less than 1 minute?

• Is it business focused, yet inspirational?

• Will people get it?

Exercise 5.1

Instructions:

Using the Speedy Office Supplies case study or a change initiative in your organization, create a

rough draft of an “article” for Fortune Magazine about the results of your change effort – project

five years into the future. In the article talk about the following:

• How the organization is different

• What customers have to say about the company

• What employees are saying

• Performance as compared to other companies or states

In doing this, be concrete – include quotes from people, actual numbers, and a clear description of a

new product or service or process.

__________________________________________________________________________________

_________________________________________________________________________________

*After putting together your draft article, see if you can identify a key phrase or goal that should be

part of your vision statement.

Topic 2: Identifying Resistance

Everyone has experienced resistance to change, whether overt or covert. It is a defense mechanism

in people that is natural and should be expected.

Don’t ignore the fact that resistance can be a positive thing. Prosci® identifies “good” resistance as

“informed disagreement with the change”. In this scenario, it is not resistance due to fear of the

unknown or unwillingness to change, but based on knowledge or expertise that leads them to

believe it will not work. Don’t ignore this type of feedback. It could provide valuable insight the

project needs to succeed.

Topic 2: Identifying Resistance

It is not uncommon for an organization to choose to conduct a project that will have impact on the

organization itself. Some examples:

- New Time and Attendance System

- New e-mail system

- Transition from paper to electronic Requisitions

- Change from primarily print to primarily electronic media

- Introduction of a new technology

- Distribution of workers in new office space

- Merging of organizations

Management initiates these changes because they have determined that the investment will bring

benefits to the organization that will make it worthwhile. They usually move forward on the basis

that since it is in everyone’s best interest, everyone will endorse the project and work to make it

successful. All too often they receive a rude shock!

There are many reasons for resistance to change. People are inherently control oriented, and any

change to their environment can leave them feeling “out of control” or chaotic. Resistance

generally begins as soon as the change is announced, but it can be displayed openly or hidden.

One of the common pitfalls with regard to resistance is that sponsors who are driving change tend

to think of resistance as a mystery. They view resistance as a mysterious force that affects people.

They think that resistance is avoidable, and if it occurs, it must be someone’s fault. Typical

responses are:

“What’s wrong with the person/group?”

“Why won’t they support our change effort? “

“There must be something wrong with those people.”

Some reasons why people may resist organizational change are:

•

belief that the change initiative is a temporary fad

•

belief that fellow employees or managers are incompetent

•

loss of authority or control

•

loss of status or social standing

•

lack of faith in their ability to learn new skills

•

feeling of change overload (too much too soon)

•

lack of trust in or dislike of managers

•

loss of job security

•

loss of family or personal time

•

feeling that the organization is not entitled to the extra effort

Topic 2: Identifying Resistance

• It is a natural and inevitable reaction. You can expect it. You should plan for it.

• It is sometimes hidden, so it may be necessary to take active steps to find it.

• There are many reasons for it; it is important to understand its roots.

• Resistance is managed by working with people and helping deal with their concerns.

• There are many ways to build acceptance. It is important to be flexible. But persist!

• Engage the appropriate change agents for the resister(s).

Some of the more recognizable types of resisters:

Objectors

Objectors will display their resistance to change whenever the opportunity arises. They may disrupt

meetings, not attend training, take unapproved leave and refuse to carry out instructions. Objectors

will continue to use old systems and processes when others are taking up the new ways of doing

things. They are not averse to arguing with managers and fellow workers and will try to convince

others to continue with the old ways. In a unionized environment, resistance can take the form of

strikes, lockouts, "work to rule", legal challenges and boycotts.

Underground

Change recipients working for the underground have solid motivations for not making their

resistance public. They may fear direct punishment, such as termination or fines, or more personal

costs, such as ridicule or loss of status and authority. Managers who are against the change but need

to be seen to be in support of it are prime candidates for promoting underground resistance. This

style of resistance is, by its nature, always covert and can take many forms. Common among these

are falsifying reports, inputting incorrect data, stealing, damaging infrastructure and equipment,

using sarcasm, spreading rumors, excessive absences, shoddy work and "go slow".

Topic 3: Resistance Mitigation

_________________________________________________________________________________

Force Field Analysis is a useful decision-making technique. It helps you to analyze the forces for and

against a change, and communicate the reasoning behind your decision. You can use it for two

purposes:

• To decide whether to go ahead with the change; and

• To increase your chances of success, by strengthening the forces supporting change and

weakening those against it.

Force Field Analysis was created by Kurt Lewin in the 1940s. Lewin originally used the tool in his

work as a social psychologist. Today, however, Force Field Analysis is also used in business, for

making and communicating go/no-go decisions. You use the tool by listing all of the factors (forces)

for and against your decision or change. You then score each factor based on its influence, and add

up the scores for and against change to find out which of these wins.

To carry out a Force Field Analysis, use a blank sheet of paper or whiteboard. Then describe your

plan or proposal for change in a box in the middle of the paper. List the forces for change in a

column on the left-hand side, and the forces against change in a column on the right-hand side. As

you do this, consider the following questions:

• What business benefit will the change deliver?

• Who supports the change? Who is against it? Why?

• How easy will it be to make the change?

• Do you have enough time and resources to make it work?

• What costs are involved?

• What other business processes will be affected by the change?

• What are the risks?

Next, assign a score to each force, from, say, 1 (weak) to 5 (strong), and then add up the scores for

each column (for and against).

Once you've done your Force Field Analysis, you can use it in two ways:

• To decide whether or not to move forward with the decision or change.

• To think about how you can strengthen the forces that supports the change and weakens

the forces opposing it, so that the change is more successful.

If you had to implement the project in the example above, the analysis might suggest a number of

changes that you could make to the initial plan. For instance, you could:

• Train staff ("Cost" +1) to minimize the fear of technology ("Staff uncomfortable with new

technology" -2).

• Show staff that change is necessary for business survival (new force that supports the

change, +2).

• Show staff that new machines would introduce variety and interest to their jobs (new force

that supports the change, +1).

• Install slightly different machines with filters that eliminate pollution ("Impact on

environment" -1).

These changes would swing the balance from 11:10 (against the plan), to 13:8 (in favor of the plan).

Exercise 5.2 – Group Exercise

Topic 3: Resistance Mitigation

Once you’ve identified the resistance drivers, use the following tips to reduce or eliminate their

influence:

Prioritize

• Choose the most powerful of the restraining forces and devote time and energy to

weakening these. Focus on the 80%, not the 20%.

Leverage

• Apply the drivers for change you have identified in your Force Field Analysis to either

weaken or eliminate an opposing force. If your staff is fearful of the change, make certain

they understand the consequences of not changing on your organization’s future success.

• Leverage champions and supportive stakeholders to help sell the benefits and advantages.

Use WIIFM (What’s In It For Me)

• Show the fiercest resisters what’s in it for them. Appeal to them either in terms of personal

gain or loss avoided.

Engage

• Put resisters on teams that allow them to play some decision-making part in the change

process.

Use Transparency

• Defuse political power plays amongst managers and other employees by conducting broad-

based meetings where goals and tactics are openly discussed, and introduce processes that

leave little room for individual discretion.

Empathize

• Endeavor to look at the world through the eyes of the change resister. Listen openly and

honestly to what they are trying to say. Examine your own basic beliefs and assumptions.

Be a Leader

• Don’t avoid the hard decisions by ignoring resisters. False champions and constant

naysayers can undermine the best efforts for change in your organization. There may be

some who will never adapt and adopt. If the change is truly critical to your business, are you

willing to let those few derail your goals? Be willing to acknowledge that some may not fit

in your new world.

Topic 4: Communication Strategies

Provide focused, strategic context:

• Make certain you can define a compelling business need; explain the reasons why the

change is necessary and beneficial

Use few messages, many messengers:

• Messages should be consistent – don’t vary the content substantially

• People want to hear about the organizational change from the CEO; but they want to hear

about how it affects them from their immediate supervisor – target the message to the

appropriate messenger

Target audiences:

• Ensure that you have precise audiences (groups impacted by the change) defined and their

needs identified and prioritized.

• Approach individuals in the organization (from various groups) to help assess the relevance

and appropriateness of the message

Integrate cross-functionally:

• Deliver consistently timed messages across the organization; make certain everyone is

hearing the same message from your team, not at the water cooler

Feature multiple vehicles:

• Feature a menu of options that appeal to a variety of groups, preferences and learning

styles

• Organizations have populations that cross multi-generations; don’t assume everyone will

respond to the same type of message equally

Build in feedback mechanisms:

• Create ways to follow-up and validate that the communication was effective

• Telephone or e-mail surveys can provide verification that the messages were received and

accurately understood

Repeat, repeat, repeat:

• Through intermittent repetition, people learn and absorb key messages

• The longer the change takes to implement, the more critical it is to keep communication

going; don’t lose momentum because no one knows what you are doing

Exercise 5.3 – Group Exercise

The Screen Saver – From Ken Moran

There was no set screen saver before we introduced this. Everyone chose their own – some sort of

wallpaper, something they downloaded from the Internet. Your normal morning went something

like this: You walk into the office, get your coffee, greet your coworkers, go to your desk, log on to

the computer. . . and your day begins.

Now imagine walking in, getting your coffee, greeting friends, logging on, and discovering that

something is different. You take a closer look at your computer screen and realize that the picture

of a fish that usually greets you every morning has been replaced with a multicolored map of the UK

surrounded by a bright blue circle. As the image slowly moves around your screen, you read the

words surrounding the circle: “We will be #1 in the UK market by 2001.” This was exactly the image

we presented to all employees one morning about two years ago.

Because the screen savers appeared on all computers the same morning, we surprised everyone.

We had recently announced our new vision, so the concept wasn’t new. The point was not to

introduce the vision in this way, but to show our commitment to it and to keep it fresh in people’s

minds. The aspiration to become number one is pretty infinite. We wanted people to know that

this was not just another fad, or just a warm and fuzzy hope. This was an absolute, a constant. By

putting the message on people’s computers so that they saw the logo every time they logged on, we

found a simple way to continually reinforce our message.

Needless to say, the arrival of the screen savers had everyone talking. That day, you’d hear people

in the halls saying, “The strangest thing happened when I logged on this morning . . . Oh, you got

one of those new screen savers too? Did everyone get one? What’s this all about?” Over the next

few weeks, the conversation moved toward “Do you think we can become number one by 2001?”

At a later department meeting, they might talk about new metrics: having five new products in the

UK by 2001, growing at a rate of at least 15 percent a year, and being number one in sales each year.

“If we hit those targets,” people said, “I think we’ll definitely achieve the vision.

Of course there were the skeptics who didn’t appreciate the fact that we had removed “their”

screen saver. They probably felt like we were forcing this down their throats. On the day the screen

savers arrived, their conversations were more like, “How dare they change my computer! What

happened to my old screen saver?” These were the people who had a problem accepting the fact

that they would have to change, so it wasn’t really the screen saver that was the issue. These were

the people who wanted to ignore our new vision, to write it off as just another fad and wait for the

initiative to go away. The new screen saver and the conversations it sparked, on top of all the other

communications circulating around the company, made it very difficult to ignore our vision.

After a while, we updated the computer image to include other metrics. We still had the UK map

surrounded in the blue circle, but we changed the message around it. This sparked new

conversations about our goals and our vision. I could walk around the office and ask people what

last year’s results were and what this year’s target was and many could respond without even

having to think about it. These were people that, a year before, might not have even been able to

quote the company’s vision, let alone its targets.

We continued to update the screen saver, and it’s become a sort of corporate icon around here. It’s

great because, instead of a newsletter or flyer that’s here today and gone tomorrow, it is a constant

reminder of our company’s goals. It’s amazing what can happen if large numbers of us all

understand what the goals are.

The Heart of Change: Real-Life Stories of How People Change their Organizations

By John P. Kotter and Dan S. Cohen

100

Lesson 5 Summary: Learning Objectives Recap

• How to create a vision for change

• Understand the nature and types of resistance

• Build effective strategies for identifying and addressing resistance

• Develop communication strategies to support OCM

101

Notes

102

ESSON

REATING AN

OCM

LAN

Topic 1: Plan Elements

Topic 2: Relating the OCM Plan to the Project Management Plan

Topic 3: The Training Matrix

Student Learning Objectives

After completing this lesson you should be able to

• How to create a vision for change

• Understand the nature and types of resistance

• Build effective strategies for identifying and addressing resistance

• Develop communication strategies to support OCM

Approximate Presentation time: 1.5 hours

103

Topic 1: Plan Elements

________________________________________________________________________________

Without the body of knowledge and content associated with PMI, there are not a lot of resources

available for a standard OCM plan. Nonetheless, it should still follow the same guidelines and rigor

associating with PM planning. Document the approaches to be followed, resources required and

how the plan will be integrated with the project plan.

104

Topic 1: Plan Elements

________________________________________________________________________________

Components that are different from a PM plan:

• Assessment approach

• Cross dependencies with the Project Team

• Adoption Tracking Strategies (post implementation)

Components that are traditionally included in a PM plan:

• Structure and Resources

• Communication Strategies

• Training Strategies

You may choose to incorporate into the OCM plan instead, or augment the PM plan with OCM

required elements.

105

Exercise 6.1 HR Infrastructure Checklist (Tool)





 The Tool: HR Infrastructure Checklist

HR Impacts Identified

We have identified all positions / people impacted by our project

We have identified the type of position that will be impacted – represented / workforce

/ classified / unclassified

We have identified any required changes in skill by position / role associated with our

project

We have identified any changes to the existing organization and reporting structures

(new positions, elimination of positions, etc.)

We have identified any changes required to performance evaluation / measurement

structures (i.e., goal development processes, risk / reward strategies and metrics /

tools)

HR Adjustment / Realignment

Activities Completed

Skill changes and measures of effectiveness have been incorporated into the job

description / job role definition process (i.e., jobs have been redesigned)

Organization structure has been adjusted to reflect new reporting relationships, new

jobs etc.

Appropriate changes have been made to position / organization metrics, evaluation

tools and reward strategies

Impacted jobs / positions have been recalibrated with market compensation

adjustments (if warranted)

Appropriate changes to the career / job development paths have been made to reflect

job / position changes

Training curriculums have been adjusted to reflect new skill requirements and ongoing

development needs of people impacted

Recruiting processes for positions / roles have been adjusted

106

As-is assessment / to-be analysis performed to determine gap in people / positions for

new job / organization structure (organization impact assessment)

Workforce Transition Activities Completed

Workforce transition plans by position, department and function have been developed

to reflect changes in personnel / positions

Transition plans have been jointly developed, circulated and communicated to all

appropriate people (workforce, site management, project leadership, etc.)

Communication strategies regarding job / HR impacts have been developed and are

ready to be implemented

Important information about the tool

What

• The HR Infrastructure Checklist is a list of Human Resources (HR) issues that must be

considered during the project.

Why

• To identify and address HR elements such as roles, staffing, skill levels, rewards and

evaluation processes

• To promote cross-functional problem solving between the project team, the

organization and HR.

When

• Create a checklist at the beginning of the Planning stage.

• Update and reference throughout the project.

How

• Tailor the checklist to ensure the appropriate items for the project are listed.

• Meet with project team members and review the checklist. As a team, prioritize which

HR items will be most critical for project success.

• Meet with HR and program leadership to review findings from project team meetings.

Include project team members as needed.

• Review the checklist periodically with stakeholders.

107

Successful Outcomes

• All appropriate boxes on the checklist are checked off by the team, HR and the affected

managers.

• Program managers and employees contribute suggestions and take ownership of the

changes.

TIPS and Lessons Learned

• Not all job changes will be known at the beginning of the project. Review the checklist

periodically to ensure that it includes the latest job change decisions.

• Align HR tasks with project milestones. For example, all training must be completed

before employees can use the new computer system.

• Meet with site leadership to promote buy-in and allocate time and resources to assist

with the tasks. This is important as ownership shifts from project team to the

organization.

108

Topic 2: Relating the OCM Plan to the Project Management Plan

_______________________________________________________________________________

The same level of planning and preparation is necessary for OCM as for PM. Just because it is often

referred to as the “warm and fuzzy” discipline, doesn’t mean it isn’t still a discipline. Create a WBS

and comprehensive schedule for all OCM activities and integrate it with the project schedule to

identify dependencies and opportunities for shared communications.

The OCM strategy and approaches can be included in the PM Project Charter if desired, or a

separate charter may be needed. Make these types of decisions based on the size of the OCM effort

and the structure of the change organization.

Make decisions early on about whether a separate OCM plan will be developed or the PM plans

(communication, training, risk management, etc.) will be expanded to incorporate OCM strategies.

It may be easier to have it separated out, but again depends on the complexity of the change and

how the resources will be allocated.

109

Topic 2: Relating the OCM Plan to the Project Management Plan

________________________________________________________________________________

Project Management communication is generally centered around reporting statistical type

information on status and progress against milestones and deliverables. The reporting formats may

be somewhat tailored depending on the level of the audience (project team vs. Executive Steering

Committee), but the basic content is generally the same. The focus is how the project is performing

against scope, budget and schedule.

These communications generally don’t begin until the project has its official kick-off and will cease

upon project close. The primary communicator is generally the Project Manager or Sponsor.

110

Topic 2: Relating the OCM Plan to the Project Management Plan

_____________________________________________________________________________

When building a communication strategy for OCM, there are additional factors that must be

included:

• The message can be project or non-project related. It could focus on organizational

activities that are a dependency for the change success, but do not directly affect the

project’s ability to move forward.

• The appropriate messenger is critical. Individuals want to hear about organizational change

from the Sponsor or CEO; but they want to hear about how it will impact their day-to-day

work environment from their supervisor or manager.

• OCM communications should utilize a wide variety of vehicles and be repeated multiple

times. (No one wants to hear a project status report over and over!)

• In some cases, it will be very important to follow up with the audience to ensure that the

message was clearly understood. For large change initiatives, consider phone surveys to

test random employee’s awareness of the change and how they are preparing.

111

Topic 3: The Training Matrix

________________________________________________________________________________

Start with understanding the basic tenets of effective training. This will provide a solid foundation

for the appropriate approach and strategies to incorporate into the Training Plan.

112

Topic 3: The Training Matrix

________________________________________________________________________________

In defining the type of training needed, it can be helpful to conduct a visioning exercise with your

Sponsor and key stakeholders. If the change is successful, what will the future look like? How will

the organization perform differently? How will employees perform differently? What will the

customers and/or other constituents see as a result?

Focus on process changes and/or role changes. If individuals may see a change in role, or if their

role will be eliminated, it is critical to have a plan for addressing their needs early in the process. It

may be important to think about providing more focused transitional training or coaching. All of

these factors should be considered as the training plans are being developed.

113

Topic 3: The Training Matrix

_________________________________________________________________________________

This is an excerpt from a training matrix that was developed for the state’s new STARR application.

The system will gather data from agencies related to their technology expense and management. It

cuts across the functional areas of Information Security, Application Management and Finance.

Because of the breadth of the system, it was critical to identify all the various roles within the

agency and GTA that could be impacted by the change. In some instances, individuals would only

require training on the tool – their processes would not change. In other cases, entirely new

processes were being introduced and employees would need to take on additional roles. The

change wasn’t extremely complex, but very diverse in the way it would impact different

stakeholders.

114

Exercise 6.1

115

Lesson 6 Summary: Learning Objectives Recap

• Know the key elements to include in an OCM Plan

An OCM plan should include the following basics:

- Purpose

- Team Structure and Resources

- Assessment Approach

- Communication Strategies

- Training Strategies

- Cross Dependencies with the Project Team

- Adoption Tracking Strategies

• Understand how to relate (and integrate) the OCM Plan with the PM Plan

- Make certain to follow the same level of discipline in OCM planning as you would in PM

planning.

- Ensure that OCM approach and structure is included in a charter document (whether in

the Project Charter or a separate OCM charter).

- Designate early how communication planning and training planning will be documented.

- At the end of the day, there must be an integrated PM and OCM plan and schedule.

• Be able to create an effective training plan/matrix

Effective training should be 1) specific; 2) incremental; and 3) continuous

Develop a matrix of courses and trainees based on complexity of the change:

- Look at the entire spectrum of training needed – not just tools

- Training should be targeted based on role, gaps between current and future functions

and needed skill sets

- Don’t forget to build a plan for ongoing training after the change has occurred

116

Notes

117

Name 3 actions you can take to introduce OCM into your environment.

My Change Management Action Items

Activity Completed By