Change Management

Manage the Change

or It Will Manage You

Change

Management

Change

Management

The Management Handbooks for Results Series

Change Management: Manage the Change or It Will Manage You

Frank Voehl and H. James Harrington (2016)

The Lean Management Systems Handbook

Rich Charron, H. James Harrington, Frank Voehl, and Hal Wiggin (2014)

The Lean Six Sigma Black Belt Handbook: Tools and Methods for

Process Acceleration

Frank Voehl, H. James Harrington, Chuck Mignosa, and Rich Charron (2013)

The Organizational Master Plan Handbook: A Catalyst for Performance

Planning and Results

H. James Harrington and Frank Voehl (2012)

The Organizational Alignment Handbook: A Catalyst for Performance

Acceleration

H. James Harrington and Frank Voehl (2011)

CRC Press is an imprint of the

Taylor & Francis Group, an informa business

Boca Raton London New York

A P R O D U CT I V I T Y PR E SS BOOK

Manage the Change

or It Will Manage You

Change

Management

Change

Management

Frank Voehl • H. James Harrington

CRC Press

Taylor & Francis Group

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© 2016 by Taylor & Francis Group, LLC

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Version Date: 20151106

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To all the change agents, and to my life-long partner Dr. Jim, who

never met a conflict that he couldn’t resolve, who is a world-master

at asking the right questions. And to my wife Micki, who always tries

to understand why the other person sees the situation differently.

Thank you for helping me to think about thinking,

and to change the way I see change.

Frank Voehl

It seems like you have many, many friends until you need them to do

something for you or when you’re taking a position that is not a popular

one. I feel I am fortunate to have a number of friends who have always

been there through my ups and downs and when I need their help. In

particular, I’d like to recognize Chuck Mignosa and Frank Voehl for

always being there to cheer me up when I’m down, to lift me up when

I’ve fallen, and who have never done anything that would harm me in

any way, even when I’m wrong. True, steadfast friends are hard to find

and I’m lucky to have found a few of them as I struggled through life.

H. James Harrington

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vii

Contents

Prologue ..............................................................................................xvii

Acknowledgments ............................................................................ xxiii

About the Authors.............................................................................. xxv

Section I Remembering

Chapter 1 Introduction to Change Management .............................. 3

Introduction ..................................................................................4

Technical and People Sides of Change Management ..............7

Blending in the Right Amount of Management ......................8

Different Views of Change Management ..................................9

Summary .....................................................................................10

Chapter 2 The Philosophy and Evolution of Change

Management..................................................................... 13

Introduction ................................................................................13

Risks in Systems Implementation ............................................14

Change Management Activities and Goals.............................15

Change Management Processes and Tools.............................18

Why Use Change Management? ..............................................19

Problems Identified by Change Management Study

Research...................................................................................... 20

Change Management Iterative Development .........................23

Basic Change Management Objectives....................................24

Objective 1: Collaborate........................................................25

The Role of the Change Management

Resource Team..................................................................26

Objective 2: Never Compromise Quality ...........................26

Objective 3: Focus on the Business Case ............................27

Objective 4: Deliver on Time................................................27

viii • Contents

Objective 5: Build Incrementally and Iteratively on

Firm Foundations................................................................. 28

Objective 6: Communicate Continuously and Clearly.....29

Objective 7: Demonstrate Control (Final Component

of Sustain) .............................................................................. 30

Summary .................................................................................... 30

Chapter 3 Making the Case for Change Readiness......................... 33

Introduction ................................................................................33

Understanding the Readiness for a Change Life Cycle .........36

Summary .................................................................................... 40

Section II Understanding

Chapter 4 Dirty Dozen Most Popular Models................................. 45

Overview......................................................................................45

Evolution of Change Management.......................................... 46

Some Specifics from the Research............................................49

More Specifics from the Research............................................52

Brief Description of the 12 Models ..........................................53

Best Practices Highlights...........................................................75

Changes in Approach Lead to SUSTAIN................................77

Summary .....................................................................................81

Chapter 5 Sustainable Change Life Cycle ........................................ 83

Introduction ................................................................................83

Key Roles in the Change Process.........................................85

SUSTAIN Model Defined......................................................... 86

7-Cycle SUSTAIN Model...........................................................87

SUSTAIN Model in Detail ....................................................... 88

Use an Enrollment/Engagement Plan Approach...................89

Shift Paradigms Where Needed ...............................................91

Talk and Communicate the Rewards, Challenges,

and Consequences......................................................................94

Contents • ix

Assimilate Risk Mitigation Using Project Planning,

Measurement, and Reporting ...................................................95

Invest to Plan for Optimum Sustained Results......................97

Negotiate the Results with a Prototyping Change

Management Approach .............................................................97

Diagnosis and Change Agents................................................. 99

Three Common Elements of Change.....................................101

Life Cycle Details: Preproject Activities...........................102

Life Cycle Details: Feasibility Cycle Activities.................103

Life Cycle Details: Foundations Cycle Activities.............103

Life Cycle Overview: Exploration Cycle Activities.........104

Life Cycle Overview: Engineering Cycle Activities ........105

Life Cycle Overview: Deployment Cycle Activities ........106

Life Cycle Overview: Post-Initiative Activities................107

Change Management Deployment Planning Checklist......107

Summary ...................................................................................108

Chapter 6 Facilitated OCM Workshops..........................................111

Introduction ..............................................................................112

Facilitated Workshops Background.......................................114

Getting the Process Started.....................................................115

Create a Change Baseline....................................................115

Define Change Strategies....................................................115

Change the Measurements.................................................116

Communicate Change Details...........................................116

Communicate Successful Changes....................................117

Measure Change Progress ..................................................117

Ensure Change Lasts...........................................................117

Benefits of Facilitated Workshops..........................................118

Neurological Roots of Resistance to Change....................... 120

Managing the Workshop.........................................................121

Roles and Responsibilities...................................................... 123

Workshop Owner................................................................ 124

Workshop Facilitator.......................................................... 124

The Participants’ Role..........................................................125

Observers ..............................................................................125

x • Contents

Co-Facilitators..................................................................... 126

Workshop Scribes............................................................... 126

Facilitated Workshop Life Cycle Activities...........................127

Plan the Workshop (Workshop Definition).....................127

Prepare for the Workshop ..................................................127

Facilitate the Workshop—Run the Workshop.................127

Facilitate the Workshop—Review the Workshop .......... 128

Document the Workshop .................................................. 128

Follow-Up..............................................................................129

Success Factors for Facilitated Workshops ...........................129

Summary ...................................................................................130

Chapter 7 Culture Change Management (CCM)........................... 131

Introduction ..............................................................................131

Change Management and Organization Design Projects.......133

Organization Development and the Lifestyle Evolution.....137

The Cultural Web and Change at IBM..................................140

The IBM Culture 80 Years Ago..........................................142

Culture Change Management as the Floodgate ..............144

Why Focus on CCM?...............................................................147

Psychodynamic Approach to Change....................................148

CCM Model...............................................................................149

CCM Element One: Conditions

for Transformational Change.............................................151

CCM Element Two: Mobilize a Commitment

to Change ..............................................................................152

CCM Element Three: Develop a Shared Vision

of How to Organize and Manage for Competitiveness,

and a Plan for Creating a Resilient Organization ...........153

CCM Element Four: Implement a Process

for Fostering Consensus on the Desired Future State

and the Competence and Cohesion to Move It Along....155

CCM Element Five: Spread and Institutionalize

Revitalization through Formal Policies, Systems,

and Structures......................................................................156

CCM Element Six: Monitor and Adjust Strategies

in Response to Problems.....................................................157

Summary ...................................................................................158

Contents • xi

Section III Applying

Chapter 8 Applying Methods for Deployment .............................. 161

Overview and Background......................................................161

CCM Capability Design Process............................................163

Structure and Governance for Deployment .........................164

Change Methodology...............................................................164

Culture Change Tools..............................................................165

Resources and Competency ....................................................165

Interviews and Research..........................................................166

Change Capability Blueprint...................................................170

Emergent Culture Change Accelerator Tools..................171

CCM 10 Critical Success Factors............................................175

CSF #1: Establish Measurable Culture Change

Business Goals......................................................................175

CSF #2: Align Business Culture and Operations ............176

CSF #3: Get Executive Support Up Front.........................177

CSF #4: Let Business Goals Drive Change

Management Functionality ................................................177

CSF #5: Minimize Customization by Leveraging

Out-of-Box Functionality ...................................................178

CSF #6: Use of Trained and Experienced Consultants...179

CSF #7: Actively Involve End Users in the Design Effort...180

CSF #8: Invest in Training to Empower End Users ........181

CSF #9: Use a Phased Rollout Schedule

with Incremental Delivery..................................................181

CSF #10: Measure, Monitor, and Accelerate ....................182

Creating a Culture of Assessment for Change

Management..............................................................................183

The Missing Link in Culture Change Management:

A Daily Management System..................................................187

Getting Organized with a Design Team To-Do Checklist.....189

Summary ...................................................................................192

Chapter 9 Initiatives’ Prioritization ............................................... 195

Overview....................................................................................195

MoSCoW Rules for CCM........................................................197

Must Have Category............................................................198

xii • Contents

Should Have Category.........................................................199

Could Have Category ..........................................................199

Won’t Have This Time.........................................................199

Using a Standard Body of Knowledge ...................................199

Agreeing How Priorities Will Work .................................201

The Business Sponsor’s Perspective........................................201

MoSCoW and the Business Case........................................... 202

Establishing Levels of Priority ............................................... 202

Checklist of Tips for Assigning Priorities............................ 204

Summary .................................................................................. 206

Chapter 10 The Iterative Development Approach........................... 207

Overview................................................................................... 208

Applying Iterative Development to the CCM Solution .....210

Managing the Iterative Development Process

When Software Is Involved in the Deployment ..............211

Evolutionary Development Strategy ......................................213

Summary ...................................................................................216

Section IV Analyzing and Evaluating

Chapter 11 Gathering, Analyzing, and Prioritizing

Requirements ................................................................. 219

What Are Requirements?........................................................219

Requirements for Motivating Change (Power) ....................221

Creating Vision (Legitimacy)..................................................221

Developing Functional Requirements That Build

on Political Support (Urgency).............................................. 223

Managing Transition Requirements

(Power and Legitimacy).......................................................... 225

Sustaining the Culture Change Momentum

(Power and Urgency)............................................................... 227

Action Learning and Other Requirements

Considerations (Legitimacy and Urgency).......................... 228

Gathering and Prioritizing Requirements........................... 230

Guidelines on Requirements Gathering................................232

Putting Together Requirements Definition

and Requirements Management........................................232

Contents • xiii

The Structure and Hierarchy of Requirements....................239

Life Cycle of a Requirement ................................................... 242

Prioritizing Requirements Using MoSCoW........................ 243

The Prioritized Requirements List (PRL)............................. 245

Summary .................................................................................. 245

Chapter 12 Using Estimates and Time Boxes.................................. 249

Overview................................................................................... 249

The Estimating Cycle .............................................................. 250

Project Variables and Contingency........................................251

Top Tips.................................................................................252

Estimating during the Life Cycle............................................252

Controlling a Time Box ..................................................... 256

Getting Started with a Time Box Kickoff............................. 258

Investigation Iteration..............................................................259

Refinement Iteration ................................................................259

Closeout .................................................................................... 260

Relationship with Other Methods..........................................261

The Team Charter and the Daily Huddle............................. 262

The Chinese Room .................................................................. 267

Planning and Scheduling Time Boxes...................................270

Summary ...................................................................................271

Section V Creating

Chapter 13 Modeling and Simulation .............................................. 275

Introduction to Modeling........................................................276

What Is a Simulation Model?..................................................276

Modeling and Prototyping......................................................278

What to Model or Prototype...................................................279

Modeling and Abstraction ..................................................... 280

Target Audience for the Model...............................................281

Viewpoints for Modeling........................................................ 282

Using the Culture Change Models........................................ 284

Using Systems Thinking Models........................................... 287

The Iceberg Model ................................................................... 288

Summary ...................................................................................291

xiv • Contents

Chapter 14 Measurement and Appraisal ......................................... 293

Introduction to CCM Measurement......................................293

Using the Outcomes’ Appraisal Purpose ............................. 294

Combine, Compare, and Interpret Measures...................... 297

Making the Collection of Measures Easy............................. 298

Examples of Culture Change Measures ............................... 299

Using Earned Value Analysis..................................................301

Quality Metrics........................................................................ 303

Employee Involvement Metrics............................................. 305

Cost Metrics ............................................................................. 306

Creating a Culture Change Web Index ................................ 308

Summary ...................................................................................310

Chapter 15 Risk Management Considerations ................................ 313

Introduction ..............................................................................313

The Culture Change Risk Log.................................................315

On Digital Literacy and CCM ................................................316

Using Crowdsourcing and Wikimedia for Culture

Change .......................................................................................317

Change Management Risks.....................................................318

Using the CCM Approach to Reduce Risk........................... 328

On Developing a Risk-Oriented Culture...............................329

The Team Spirit Environment ................................................332

Summary ...................................................................................335

Chapter 16 Deploying and Implementing CCM ............................. 337

Introduction ..............................................................................337

Installing and Implementing a CCM System.......................339

The Eight-Phase Implementation Plan ................................. 341

Phase I: Perform a Current State Assessment................. 341

Phase II: Develop Vision Statements................................ 342

Phase III: Prepare Performance Goals............................. 342

Phase IV: Define Desired Behavioral Patterns

for Each of the KBDs.......................................................... 343

Phase V: Develop a 3-Year Plan for Each of the KBDs..... 343

Phase VI: Combine the Individual 3-Year Plans

into One Masterplan .......................................................... 344