Info Source - Volume IX, Issue 2 - Summer, 2009

Introduction

Welcome to the second issue of TSI Info Source for 2009.  In this issue, we share our insight with respect to an elusive goal and under practiced discipline - Change Management (CM).  Frequently our clients ask how we approach Change Management including questions such as:

- How does CM fit within a process improvement or expense reduction project?

- What is the probability for success? 

- What can leaders do to cultivate an environment for change?

Simply scroll down for TSI's perspective on these and other CM topics. 

Important - as a reminder, if your 2009-2010 project initiatives involve clarifying and/or implementing strategies, improving processes, reducing costs, process training, strategic planning, assessing or evaluating technology or managing change,  please to call us at 847-705-0960 x202) or e-mail here

If you have questions or ideas that you would like us to address in future Whitepapers, let us know -  we enjoy hearing from you!

Kind Regards,

Change Management:  The Key To Success

The business world is in a state of change.  Every day we hear about mergers, layoffs, bankruptcies, restructurings and consolidations.  In these tough economic times, many organizations are struggling with efficient ways of doing business and pressure to do more with less. Whether it be cost cutting measures, such as budget freezes or head count reduction, streamlining current processes to eliminate wastes, or assessing existing technology systems, organizations must find more efficient ways of working. (Refer to the news article, “A Foundation for Transformation” by, Dan Feely to see how TSI is assisting its clients.)

Some leaders are so focused on implementing their “core” initiatives that the “change” aspect i.e. how the change will impact the organization is most often overlooked.   Change Management is erroneously looked as the “touchy feely” side of a project, implying leaders may not see it as important enough to invest time and resources. Unfortunately, this kind of thinking can put the best planned solution’s success in jeopardy.  Without gaining support of the change from the organization, more than likely, an initiative will fail.

Changes Implemented Without a Change Management Initiative

Type of Initiative	Reported Success Rate
Strategy Deployment	60%
Restructuring & Reorganizing	50%
Re-engineering	40% (using cost reduction as measure)
Technology & Systems	35-40% (28% of large IT initiatives are abandoned before completion.)

Sources include:
ProSci 2003 Benchmark study, Best Practices in Change Management
Smith M.E. (2002) Success Rates for Different Type of Organizational Change. Performance Improvement Vol. 41, 26-33. (Metra analysis of 49 studies over 10 years); Crawford& Associates Internal historical Client Cast Recaps; Gartner Group

Change Management is a structured approach used to ensure that significant organizational changes such as adopting new programs, policies or technology are implemented in an orderly, controlled and systematic fashion.  A major goal of change management is to ensure employees overcome resistance to the change and eventually buy-in to the organization’s goal of transformation. 

Change management is at the forefront of TSI’s work. We recognize how important it is to ensure those impacted by change feel comfortable every step of the way. Our consultants take the time to educate and guide an organization through the change process to ensure a smooth, seamless transition and ultimately a successful implementation.  We make sure those impacted by the changing environment understand why changes are being made, are able to visualize the future state and have a firm grasp on the steps needed to reach the vision and their specific role in the process.

The biggest mistake leaders can make is to assume their employees will jump on board once a project initiates.  This is rarely the case.  It takes employees time to understand the meaning of the change and eventually accept the change.  The success of any change rests on the ability of leaders to lay the ground work, create a clear vision, show visible and sustained support and continually address both the emotional and practical issues at hand.

Leadership Tips:
•    Define a clear, detailed, realistic vision.  Keep informed.  Provide specific, consistent and continuous information on 1) why the need for change, 2) where the organization is heading, 3) what the anticipated outcomes are and 4) how and when the organization will get there (plan & timeline).  Indicate the expected commitment of each individual.  Communication is an integral part of the change process.  To ensure messages are being received as intended, make opportunities available to solicit feedback and to reflect on the information that has been heard.   Stay connected and be visible throughout the change process.  Pay close attention to the changes occurring, the progress being made and the barriers getting in the way.  Act when needed.

•    Recognize the human element.  Everyone responds to change differently.  Some may thrive on change, others might find it threatening.  Leaders need to recognize the patterns and acknowledge the steps individuals go through to come to terms with and adjust to change.   As a leader, the more support you can offer and the more detailed information you can share, the easier it will be for individuals to let go of the old and move into the new.

•    Walk the talk.  If you are fully committed and totally support your department’s or organization’s need for change, your employees will quickly follow suit.  How you think, behave and lead is constantly being monitored.  Employees expect leadership to be supportive and concerned for their welfare. They also recognize that sometimes tough decisions have to be made to move the business in the right direction.  If you show a sense of confidence and commitment and believe change is in the company’s best interest, your employees are more likely to believe it too.

In Summary...
Just like losing weight or saving money, Change Management does not happen by itself. It requires a deliberate, intentional, focused effort that considers the organizational DNA, as well as the market conditions.  As a general rule, CM is an after thought to a project approach and consideration generally starts after the first crisis.    

For more on CM, simply contact TSI.