Organizational Change Management

Organizational Change Management

OCM-FISCal-Readiness-Guide – Organizational Change Management

Five Pillars of Successful Change

1. Communication 

Communication is the fundamental pillar of change. People crave information and want to know what is going to happen, how, when and why! It is the engagement mechanism for change. Communication helps you frame how your stakeholders are exposed to the change and thereby gives you the avenue for influencing how they view it. Without quality communication your change participants will not have the awareness and understanding they need to commit to and implement your change successfully. By formally setting expectations, employing tools to improve communication and proactively seeking ways to reduce misinformation, stakeholders are more likely to buy into a change initially. They will also stay more committed to the change, ultimately leading to a successful transformation. Good communication should be deliberate and well thought out. Develop your communication strategy in the early stages of planning the change itself. Communicate [using your best business English]  early, openly, often, through multiple methods and allow for feedback.

2. Sponsorship

When change occurs people turn to the organization’s leaders for direction and support. Ensure there is active sponsorship for the change at an executive level within the organization, and engage this sponsorship for a successful outcome. A sponsor builds commitment across the organization and particularly at the senior management level.

Sponsors have ultimate responsibility for projects. Success of a project can be directly linked to an active sponsor who champions the change, mitigates change resistance and builds organizational alliances.

3. Stakeholder Management

The primary goals of Stakeholder Management are to accurately identify all stakeholders and make them aware of the change and its benefits throughout the change process. This helps gain and maintain stakeholder buy-in. Much like Sponsorship, actively engaging stakeholders early during the change cycle often directly correlates to the success of the change.
Perform change activities with stakeholders, not ‘to’ them.
Commit to a partnership with your stakeholders.
It is absolutely critical that those impacted by the change understand the needs for and benefits of the change.

Once you have identified and planned a strategy to engage your stakeholders, ask yourself what else is going on in the organization and what could distract them. Ensure you are able to focus your stakeholders on the change. Strategize and tailor your messaging to the types of stakeholders on the project.

4. Readiness 

This is a measure of the reality of the current organization in relation to the future state. When determining readiness for change you should consider the culture and history of change in your organization, accountability, resource availability, and availability of staff with change management knowledge and experience. There are two perspectives by which readiness is assessed:

1. The human side of change. Supporting the people and culture involved in the change.

2. It is necessary to document [using your best business English] and understand the organizational processes impacted by change. This readies you to migrate from “current state” to “future state” processes. Business Process Modeling allows you to identify processes impacted by the new system, create a baseline for process improvements, increase efficiency in day-to-day operations, educate staff and advance business understanding.

The first perspective is about getting people ready to adapt to change by ensuring they have the right information and toolsets. It is covered more in the Readiness In Detail section on the next page.

5. Training and Turnover 

The primary goal of Training in OCM is to understand gaps in stakeholders’ skills and provide them opportunities to learn these skills before the change is implemented. A learning solution should be designed to foster understanding, acceptance and commitment, enable all users to work with, and build their confidence in the new processes/systems. Additionally, turnover is a “hidden” cost of change management. Staff turnover is often prevalent and disruptive during a major change effort and can result in reduced employee morale and retention. Engaging staff early and providing adequate training and communication about the change is essential to demystify rumors and opposition in your organizational change initiative. The training and knowledge transfer / skill building will help ensure that all staff have the necessary technical and business knowledge, skills, and abilities to use change solutions.

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