Build a Change Management Office 9 Steps to Make Your Change Efforts Stick
Ani O’Leary, Hitachi Consulting
Ani O’Leary, Hitachi Consulting, 12/14/15 ACMP Change Management 2016 May 15 – 18, 2016 – Dallas, Texas, USA 1
Introduction Setting up a CMO: Below is a scenario that may sound familiar. A Nine Major Steps new program is designed to take advantage of Setting up a CMO can be a daunting task. In a new market opportunity. It is expected that most cases, companies will need to build the this new program will substantially improve CMO from the ground up. Organizations with business performance. Months are spent successful CMOs typically undertake nine developing the perfect implementation strategy. major steps to establish them including: Employees are given the program details and some guidelines to follow. There is initial 1. Design and establish a change interest in the program, but it fades quickly. management office structure. After a few months, the new program is 2. Create change management abandoned and marked a failure, disappearing methodology, tools and templates. into obscurity. 3. Align the change management
methodology with project management. Similar stories play out year after year at companies across the world. The fast-paced 4. Engage key leaders and stakeholders to nature of our global economy means that new support the CMO. promising changes are designed on a regular 5. Raise awareness of change management basis. A deliberate change management and the CMO. strategy is crucial for companies looking to be agile in their adaptability, but structured in their 6. Develop change management knowledge approach to change. and skills in employees. 7. Deliver change management on projects Establishing Change Management Offices to set an example and prove the value. (CMOs) or Change Management Centers of Excellence (COEs) can add structure to how a 8. Measure and show change management company approaches inevitable changes. This results and successes. can increase the likelihood of successful 9. Change the culture to view change implementation and adoption of new programs, management as a key part of project processes and ideas. CMO/COEs are also implementation. tasked with enabling or improving change management capabilities within a company. While CMOs/COEs can vary dramatically in Their specific role can vary from organization to structure, processes, staffing or goals, they can organization. For some, the CMO delivers all utilize these nine steps for their change management work, while others only development. These steps walk organizations provide project managers and employees with through building the foundation for a successful the tools and training needed to deliver the CMO by engaging employees to embrace change management work themselves. change management and create lasting change. The goal is to continue providing the While the role may vary by company, the change management support required to purpose is the same – to enable a company to successfully meet business needs. effectively manage the people side of change and implement the changes needed to be successful.
Ani O’Leary, Hitachi Consulting, 12/14/15 ACMP Change Management 2016 May 15 – 18, 2016 – Dallas, Texas, USA 2
Step 1. Design and These decisions will form the foundation for designing the CMO and will influence how the establish a CMO structure CMO is implemented. The first step is to design and establish a CMO to lead change management efforts. This Structure demonstrates a commitment to embrace and A well-designed structure can provide the improve change management, and also foundation for success and remove barriers. provides accountability for change The design should be informed by the strategy management within the organization. and scope, as well as limitations due to budget, culture or the existing organizational structure. A CMO is the place for the organization to go for change management support. It also better Key Considerations: enables change management strategy, processes and goals. Each organization has Where is the CMO located within the different needs and limitations for a CMO. organizational structure? Changes vary on the volume, type and Should it have a centralized, decentralized complexity of typical change efforts. or matrixed design structure? Additionally, organizations can face limitations due to processes, culture, geographic locations Roles & Responsibilities or budget. Major decisions will need to be made when designing the CMO relating to scope, The final major decision when designing the strategy, goals, structure, roles and CMO structure is defining roles and responsibilities. responsibilities. Responsibilities are varied and can include building change management Strategy and Scope awareness, training employees, developing and maintaining a change management Determining the strategy and scope of the CMO methodology and resources, delivering change is a key first step when designing and management on projects, or advising leaders establishing its structure. on how to structure project implementations to best support employee adoption. Key Considerations: What will the CMO need to accomplish? After determining roles and responsibilities, determine staffing considerations, taking into Will it drive efforts to increase the use of account the following: change management, set requirements for projects that must use change Specialization of team members (i.e., management, or simply be a center where generalists versus specialized workers). to access templates and guidance? Employment status (i.e., FTE or part-time Will the CMO lead change management workers versus contingent staff). or will change be led by project managers Once the CMO has been staffed, it can with CMO support and resources? continue with the next steps to drive What specific divisions, functions or forward. project types will it support? Will it only support projects above certain impact, revenue or budget levels?
Ani O’Leary, Hitachi Consulting, 12/14/15 ACMP Change Management 2016 May 15 – 18, 2016 – Dallas, Texas, USA 3
Step 2. Create a Change management processes. This approach can save time and resources, but should be Management Methodology, done with care to ensure that the intent of Tools and Template change management is not lost. Once a CMO is established, a change Whichever option an organization prefers, it is management methodology - supported with important to consider that the methodology resources and tools -needs to be created. This does not need to be intensive or complex. will enable individuals to view change Oftentimes, a simple methodology applied management in a consistent and common way, consistently can provide the structural and will serve as a guide to efficient and foundation for change management. effective change management delivery. Tools & Templates
Tools and templates should also be developed Methodology to support the methodology. Many existing Different organizational structures necessitate change management methodologies include varied approaches to the way business is associated tools and templates, but conducted, and change management organizations may also create ones that may be methodology is no exception. In every case, more consumable by their organization. organizations should focus on obtaining and solidifying leadership and stakeholder commitment throughout the phases of change Step 3. Align the Change management. However, whereas a top-down Management Methodology organization may emphasize formal leadership with project management engagement more heavily, a flatter organization’s methodology may focus more Once a change management methodology has keenly on engaging influencers and those who been developed, it should be aligned with lead indirectly. Organizational structures can project management activities to allow for an differ greatly from company to company, so easier integration of change management change management methodology should be principles and activities when applicable. tailored as such. Organizations have several choices for establishing a change management Organizations with formal project management methodology. They can: methodologies should consider where change management activities can and should exist Leverage an existing methodology used by within their existing frameworks. For other organizations, but customize it to organizations with an informal approach to closely align to their organization’s culture. project management, change management This can be beneficial because existing methodology should be aligned to general methodologies have oftentimes been project management activities. This effort may tested and/or refined. be as basic as identifying key project Create a brand new methodology, tying it milestones (e.g., leadership approval/“go-lives”) specifically to the needs and operating and aligning them to key change management model of the organization. activities. Create a hybrid methodology by leveraging Step 4. Engage Key Leaders & existing methodology, and incorporating it Stakeholders to Support CMO into the organization’s current state project
Ani O’Leary, Hitachi Consulting, 12/14/15 ACMP Change Management 2016 May 15 – 18, 2016 – Dallas, Texas, USA 4
Sponsorship for Change Management – Articulate why the organization will require a CMO, and the benefits of a Over 50% of large scale institutional changes CMO. fail because the project fails to generate a sense of urgency and importance around the – Articulate the risk or opportunity cost change. Like any change, a sense of urgency of not conducting a CMO (e.g., and importance needs to be generated for the productivity declining as resources CMO to be established successfully. resist change or missed business opportunities because a change A critical component to the successful could not be implemented). establishment of a CMO – and to the implementation of any change for that matter – Key Functions to Engage is the involvement of a senior-level leader as the CMO business sponsor. A key component In addition to leaders of key business divisions of the sponsorship role is to engage and gain such as operations and finance, CMOs should buy-in from other senior leaders – as well as consider engaging stakeholders within the key employees in informal roles of influence – following departments: to generate a sense of urgency and importance around the creation of the CMO. Organization Development: If an organization has a department focused on Organization Introduction to Leadership and Development or Effectiveness, it is critical to Stakeholder Engagement engage it due to its people focus. Oftentimes, Organization Development departments are As mentioned, leadership and stakeholder responsible for change management activities, engagement is critical to the successful so in the establishment and execution of a establishment of a CMO. Leaders and other CMO, they will either be strong partners or stakeholders build support for change deeply involved in key efforts. management throughout the organization, drive changes and generally set the tone for the rest Human Resources (HR): Because of HR’s role of the organization. dealing expressly with employees and talent Stakeholder Analysis: As part of efforts management, this department often will to engage leaders and other stakeholders, naturally advocate for issues that impact its a key first step involves conducting a employees, including the use of change stakeholder analysis. This will help identify management. Since HR is often a channel for stakeholders (including key leaders), and feedback on general employee concerns and document their influence and impact attitudes, it is critical to engage HR in change within the organization. management efforts to inform the CMO’s approach to managing change. If an Business Case for CMO: Additionally, as organization does not have a department a critical component of leadership and directly dedicated to Organizational stakeholder engagement, a clear Development or Transformation the CMO can Business Case for the establishment of a be housed with the HR department. CMO must be created. The Business Program Management Office (PMO): The Case should accomplish the following: PMO is often engaged with key projects and can advocate/monitor change management – Articulate the future vision of the activities. In some organizations, the CMO is a organization. part of the PMO.
Ani O’Leary, Hitachi Consulting, 12/14/15 ACMP Change Management 2016 May 15 – 18, 2016 – Dallas, Texas, USA 5
Strategy or Planning Divisions: Strategy and change champions and advocates. The planning divisions are often intimately involved purpose of a change champion is to build in leading major changes, and may have insight awareness of change management and into an organization’s most critical projects. the CMO, and to encourage employees to implement change management activities IT: IT often drives a lot of organization-wide at all levels. Change advocates are changes. New systems, tools and technologies influential individuals who have bought often require changes to the way employees into the change and who can advocate for approach and understand their work. IT it. Sometimes, advocates have formal changes often have a much broader impact on responsibility for championing the change, employees than just tools and systems. but in other cases, they are informal advocates with strong influence. Step 5. Raise awareness of Change Management Community: A change management and the change management community, or a CMO group of employees interested in change Awareness is the first step to change adoption. management, can also build awareness The implementation of a CMO itself is a change for change management and the CMO. and will require its own change management. Change advocates are influential Employees need to be informed on what individuals who have successfully used change management is, why it is needed, what change management and who can the CMO is, and how they will interact with it. advocate for it. Employees involved in the Employees will also need to understand “what’s community can then be leveraged to build in it for them,” and how the CMO will impact awareness of change management and improve their work lives. Because of the throughout the organization as informal nature of change management, many change champions. employees will require multiple communications to facilitate their understanding. Step 6. Develop Change Ways to Build Awareness Management knowledge and Formal Communication and Events: skills in employees The most common way to build Once employees are aware of change awareness of change management and management and the CMO, they must develop the CMO is through formal foundational knowledge and skills in change communications and events. Formal management. Regardless of whether change communication channels can include management will be planned and facilitated by company meetings, newsletters, staff dedicated CMO individuals, or if employees will meetings, and email communications. be responsible for planning and facilitating it Typically multiple formal communication themselves, employees must understand when channels are required to reach all targeted and why it is needed. As employees better employees. understand change management, they can
effectively leverage the CMO and integrate Change Champions: Another way to change management activities into their build awareness and support for the CMO everyday roles. and change management is to leverage
Ani O’Leary, Hitachi Consulting, 12/14/15 ACMP Change Management 2016 May 15 – 18, 2016 – Dallas, Texas, USA 6
Methods for Developing Change Step 7. Deliver Change Management Knowledge and Skills Management on projects to set an example and to prove Two key methods for developing change management knowledge are formal training the value and coaching: Oftentimes, teams need to see the benefits of Formal Training: The most common way change management firsthand in order to buy to develop change management into it. To set the bar for change management knowledge is formal training. effectiveness and prove its value, the CMO Organizations can use a number of should model change management delivery on methods including instructor-led trainings, individual projects early on. online training and written training. Depth of the training varies, depending on the Select a high-profile, high-visibility project so role employees will have in leading employees can experience the benefits of change management activities. In-depth change management directly. Ensure project training is required if employees are sponsors and leaders already support change responsible for planning and facilitating management to increase the chances of a change management on their own positive experience. Finally – and most projects. More high-level training can be importantly – select a project where change used if dedicated change managers are management efforts have a high probability of available. While formal training can be succeeding. Understand that if the project fails, useful due to its structure, it can be costly employees will have difficulty distinguishing up front and may be met with initial between well-executed change management on resistance to the change that learning new a poor project and poorly executed change skills represents. However, if presented in management. When the right project is selected a way consistent with steps 1-6, and change management is delivered well, a resistance to training can be mitigated. powerful message is sent demonstrating the value of change management. Coaching: Another method to develop change management knowledge and skills is coaching. On a smaller scale, Step 8. Measure and show employees working on a projects or teams Change Management results requiring change management are and successes coached through the process by someone from the CMO. This provides a hands-on Demonstrating positive results over multiple opportunity to learn how to deliver change projects builds continued buy-in and support for management, while the recipient of the change management. These results and coaching can integrate their learning in successes can include both anecdotal evidence real-time. After they have learned through and metrics. When leaders and employees see experience, employees can continue to change management is beneficial over time, deliver it on future projects. Coaching is they will continue to support it and it will an effective way for employees to learn, become a part of the regular way they operate. but can also require significant resource investments and time.
Ani O’Leary, Hitachi Consulting, 12/14/15 ACMP Change Management 2016 May 15 – 18, 2016 – Dallas, Texas, USA 7
Anecdotal Evidence Step 9. Change the culture to Anecdotal evidence creates a personal view Change Management as connection that leaders and employees can a part of project management relate to. These stories make the benefits of change management personable. It answers The last step to establishing a successful CMO the question: “what’s in it for me.” Anecdotes is the hardest. The organizational culture needs can include case studies that share how to change, to view change management as a change management was used on a project key component to project management and what results were achieved. Quotes and success. Transforming an organization’s culture feedback from change leaders and individuals requires time, patience and a conscious effort on the receiving end of the change can also by employees and leaders to embrace and send a meaningful message of how change normalize change management as a natural management was beneficial. part of business operations. To do this, leaders must consistently demonstrate the value of Metrics change management and reinforce its use. Additionally, when celebrating project or Change metrics can include measures of initiative “wins,” leaders should laud not only the adoption of the change and measures of project design and execution of a project but change success. Examples of measures of adoption management’s role in its success. As leaders include the number of individuals using a new reward and recognize change management, its tool, the percentage of employees operating in importance will be reinforced with employees the change state, and the percentage of and within the organization. projects within the organization including change management activities. Examples of Change management should become an measures of project success include the overall expectation within the organization. As projects realization of project value and the time are planned, change management should be required to reach full productivity with a change. included in the plans. As budgets are made, Two metrics that are used most successfully to change management should be included. When demonstrate the value of change management a project’s progress is reviewed, change are the percentage of projects that include management needs to be included in that change management activities that met their review. Employees and leaders need to come adoption goals, and the percentage of projects to expect that change management, like project using change management efforts that realized management, will be used on every intended business objectives. When these project/initiative – every time. Change metrics are compared to the percentage of management becomes ingrained within an projects not including change management organization’s culture when it becomes a activities, it can send a powerful message on standard expectation for any new initiative or the value of change management. This can be project. the most compelling business case for change management.
Ani O’Leary, Hitachi Consulting, 12/14/15 ACMP Change Management 2016 May 15 – 18, 2016 – Dallas, Texas, USA 8
Conclusion
Organizations that have successfully As these steps are thoughtfully and deliberately established a CMO typically follow the following taken, organizations can begin to make change nine major steps: management a part of their business, and thereby, a part of their success. Fully 1. Design and establish a change establishing a CMO takes time – often between management office structure. three and five years. However, once a CMO is successfully established, it provides the ability 2. Create a change management to effectively land changes, thereby building methodology, tools and resources. and maintaining the competitive advantage 3. Integrate the change management needed to survive and thrive in business. methodology with project management. 4. Engage key leaders and stakeholders to support the CMO. 5. Raise awareness of change management and the change management office. 6. Develop change management knowledge skills in employees. 7. Deliver change management on projects to set an example and prove the value. 8. Measure and show change management results and successes. 9. Change the culture to view change management as a part of project management.
Ani O’Leary, Hitachi Consulting, 12/14/15 ACMP Change Management 2016 May 15 – 18, 2016 – Dallas, Texas, USA 9