Building a Change Management Office 9 Steps to Make Your Change Efforts Stick

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Does this scenario sound familiar? A new program, designed to take advantage of a new market opportunity, is expected to substantially improve business performance. It takes months to develop the perfect implementation strategy. Introduction 1. Design and establish a change enable change management strategies, management office structure. processes and goals. Each organization Employees receive program details and has different needs and limitations for guidelines. Initial interest in the program 2. Create change management a CMO. Changes vary by volume, type fades quickly. After a few months, the methodology, tools and templates. and complexity of typical change efforts. new program is abandoned and marked a 3. Align the change management Additionally, organizations may face failure, disappearing into obscurity. methodology with project limitations due to processes, culture, management. Similar stories play out year after year geographic locations or budget. Major in companies everywhere. The fast- 4. Engage key leaders and stakeholders to decisions to be made when designing the paced nature of our global economy support the CMO. CMO include to scope, strategy, goals, means promising new changes are 5. Raise awareness of change structure, roles and responsibilities. designed on a regular basis. A deliberate management and the CMO. change management strategy is crucial 6. Develop change management Strategy and scope for companies looking to be agile in knowledge and skills in employees. Determining the strategy and scope of the their adaptability, but structured in their 7. Deliver change management on CMO is a key first step when designing approach to change. projects to set an example and prove and establishing its structure. Establishing change management the value. Key considerations: offices (CMOs) or change management 8. Measure and show change centers of excellence (COEs) can add management results and successes. nn What will the CMO need to accomplish? structure to how a company approaches 9. Change the culture to view change inevitable changes. This can increase the management as a key part of project nn Will it drive efforts to increase the likelihood of successful implementation implementation. use of change management, set and adoption of new programs, requirements for which projects must processes and ideas. CMO/COEs are While CMOs/COEs can vary dramatically use change management or simply be also tasked with enabling or improving in structure, processes, staffing or goals, a center where employees can access change management capabilities within they can all utilize these nine steps for templates and guidance? their development. These steps walk a company. Their specific role may nn Will the CMO lead change organizations through building the vary from organization to organization. management or will change foundation for a successful CMO by For some, the CMO delivers change management be led by project engaging employees to embrace change management work, while others provide managers with CMO support and management and create lasting change. project managers and employees with the resources? tools and training needed to deliver the The goal is to continue providing the nn What specific divisions, functions or change management work themselves. change management support required to successfully meet business needs. project types will it support? Will it only While the role may vary by company, support projects above certain impact, the purpose is the same – to enable Step 1. Design and establish a revenue or budget levels? a company to effectively manage the CMO structure These decisions will form the foundation people side of change and implement the The first step is to design and establish a for designing the CMO and will influence needed changes for success. CMO that will lead change management how the CMO is implemented. Steps to Set Up a CMO efforts. This demonstrates a commitment to embrace and improve change Setting up a CMO can be a daunting management, and also provides task. In most cases, companies will need accountability for change management to build the CMO from the ground up. within the organization. Organizations with successful CMOs typically undertake nine major steps to A CMO provides a place for the establish them including: organization to go for change management support. This will also better Structure Step 2. Create change into the organization’s current project A well-designed structure can provide management methodology, management processes. This approach can save time and resources, but the foundation for success and remove tools and templates barriers. The design should be informed should be done with care to ensure by the strategy and scope, as well as Once a CMO is established, a change that the intent of change management limitations due to budget, culture or the management methodology supported is not lost. with resources and tools needs to be existing organizational structure. nn Whichever option an organization created. This will enable individuals to prefers, it is important to consider that Key considerations: view change management in a consistent the methodology does not need to be and common way, and will serve as a Where is the CMO located within the intensive or complex. Often, a simple guide to efficient and effective change organizational structure? methodology consistently applied management delivery. provides the structural foundation for Should it have a centralized, decentralized change management. or matrixed design structure? Methodology Different organizational structures Tools and templates Roles and responsibilities necessitate varied approaches to the Tools and templates should also be The final major decision when designing way business is conducted, and change developed to support the methodology. the CMO structure is defining roles management methodology is no Many existing change management and responsibilities. Responsibilities exception. In every case, organizations methodologies include associated tools are varied and may include building should focus on obtaining and solidifying and templates, but organizations may change management awareness, leadership and stakeholder commitment also create those more suited to their training employees, developing and throughout the phases of change organization. maintaining a change management management. However, whereas a methodology and resources, delivering top-down organization may emphasize Step 3. Align the change change management on projects or formal leadership engagement, a flatter management methodology advising leaders on how to structure organization’s methodology may focus project implementations to best support on engaging influencers and those who with project management employee adoption. lead indirectly. Organizational structures Once a change management can differ greatly from company to methodology has been developed, After determining roles, responsibilities company, so change management it should be aligned with project and staffing, take into account the methodology should be tailored. management activities to allow for an following: Organizations have several choices for easier integration of change management nn Specialization of team members (for establishing a change management principles and activities when applicable. example, generalists versus specialized methodology. Organizations with formal project workers). They can: management methodologies should nn Employment status (for example, FTE nn Leverage an existing methodology used consider where change management or part-time workers versus contingent by other organizations, customizing it activities can and should exist within their staff). to closely align to their organization’s existing frameworks. For organizations nn Once the CMO has been staffed, it culture. The advantage here is existing with an informal approach to project continues to drive the next steps. methodologies have oftentimes been management, change management tested and/or refined.

nn Create a brand new methodology, tying it specifically to the needs and operating model of the organization.

nn Create a hybrid methodology by leverage an existing methodology methodology and incorporating it methodology should be aligned to nn Stakeholder analysis: As part of employees, including the use of change general project management activities. efforts to engage leaders and other management. Since HR is often a channel This effort may be as basic as identifying stakeholders, a key first step involves for feedback on general employee key project milestones (for example, conducting a stakeholder analysis. The concerns and attitudes, it is critical to leadership approval/go-lives) and aligning analysis will help identify stakeholders engage HR in change management them to key change management (including key leaders), and document efforts to inform the CMO’s approach to activities. their influence and impact within the managing change. If an organization does organization. not have a department directly dedicated Step 4. Engage key leaders nn Business case for CMO: Additionally, to organizational development or and stakeholders to support as a critical component of leadership transformation, the CMO can be housed CMO and stakeholder engagement, a clear with the HR department. Sponsorship for change management business case for the establishment of Program management office (PMO): a CMO must be created. The business The PMO is often engaged with key Over 50% of large-scale institutional case should accomplish the following: projects and can advocate/monitor changes fail because the project fails –– Articulate the future vision of the change management activities. In some to generate a sense of urgency and organization. organizations, the CMO is a part of the importance around the change. For the –– Articulate why the organization PMO. CMO to be established successfully, a requires a CMO, and the benefits of sense of urgency and importance needs Strategy or planning divisions: Strategy a CMO. to be generated. and planning divisions are often intimately –– Articulate the risks and opportunity involved in leading major changes and A critical component to the successful cost of not conducting a CMO (for may have insight into an organization’s establishment of a CMO – and to the example, productivity declining as most critical projects. implementation of any changes – is the resources resist change or missed involvement of a senior-level leader as the business opportunities because a Information Technology (IT): IT often CMO business sponsor. The sponsorship change could not be implemented). drives organization-wide changes. New role should engage and gain buy-in from systems, tools and technologies often other senior leaders – as well as key Key functions to engage require changes to the ways employees approach and understand their work. employees in informal roles of influence In addition to leaders of key business IT changes often have a much broader – to generate a sense of urgency and divisions such as operations and finance, impact on employees than just the tools importance around the creation of the CMOs should consider engaging and systems they use. CMO. stakeholders within the following departments: Introduction to leadership and stakeholder engagement Organization development: If a company As mentioned, leadership and stakeholder has an organizational development or engagement is critical to the successful effectiveness department, engagement establishment of a CMO. Leaders and is critical, because of its focus on people. other stakeholders build support for Often, organization development change management throughout departments are responsible for change the organization, drive changes and management activities, so in the generally set the tone for the rest of the establishment and execution of a CMO, organization. they ought to be strong partners and deeply involved in key efforts.

Human resources (HR): Because of their role dealing expressly with employees and talent management, HR often naturally advocate for issues that impact its Step 5. Raise awareness of championing the change, but in other materials. The depth of training change management and the cases, they are informal advocates with may vary, depending on the role strong influence. employees will have in leading change CMO nn Change management community: A management activities. In-depth Awareness is a key step in change change management community, or training is required if employees are adoption. The implementation of a CMO a group of employees interested in responsible for planning and facilitating is in itself a change to the organization change management, can also build change management on their own and will require its own change awareness for change management projects. More high-level training may management. Employees need to be and the CMO. Change advocates be used if dedicated change managers informed on what change management are influential individuals who have are available. While formal training is, why it is needed, the role of the CMO successfully used change management. can be useful due to its structure, is and how they will interact with it. Employees involved in the community it may be costly and met with met Employees will also need to understand can then be leveraged to build with initial resistance to learning new “what’s in it for them,” and how the awareness of change management skills. However, if presented in a way CMO will impact and improve their work throughout the organization as consistent with steps 1-6, resistance to lives. Because of the nature of change informal change champions. training can be mitigated. management, many employees will nn Coaching: Another method to develop require multiple communications to Step 6. Develop change change management knowledge and facilitate their understanding. management knowledge and skills is coaching. On a smaller scale, employees working on a projects or Ways to build awareness skills in employees teams requiring change management Once employees are aware of change nn Formal communication and events: are coached through the process by management and the CMO, they must One of the most common ways someone from the CMO. This provides develop foundational knowledge and to build awareness of change a hands-on opportunity to learn skills in change management. Whether management and the CMO is through how to deliver change management, change management will be planned and formal communications and events. while the recipient of the coaching facilitated by dedicated CMO individuals Formal communication channels can integrate their learning in real- or if employees will be responsible for can include company meetings, time. After they have learned through planning and facilitating it themselves, newsletters, staff meetings and email experience, employees can continue employees must understand when and communications. Typically multiple to deliver change management on why it is needed. As employees better formal communication channels future projects. Coaching is an effective understand change management, they are required to reach all targeted way for employees to learn, but it can effectively leverage the CMO and employees. too can require significant resource integrate change management activities nn Change champions: Another way to investments, including time. into their everyday roles. build awareness and support for the CMO and for change management is Methods for developing to leverage change champions and changemanagement knowledge and advocates. The purpose of a change skills champion is to build awareness of Two key methods for developing change change management and the CMO, management knowledge are formal and to encourage employees to training and coaching: implement change management activities at all levels. Change advocates nn Formal training: The most common are influential individuals who have way to develop change management bought into the change and who knowledge is formal training. can advocate for it. Sometimes, Organizations may use a number advocates have formal responsibility for of methods including instructor-led trainings, online training and written Step 7. Deliver change Anecdotal evidence Step 9. Change the culture to management on projects to As projects are planned, change view change management as a set an example and to prove management should be included in the part of project management plans. It answers the question: “what’s the value in it for me.” Anecdotes can include The last step to establishing a successful Teams often need to see the first hand case studies that share how change CMO is the most challenging. The benefits of change management management was used on a project organizational culture needs to first-hand in order to buy into it. To set the and what results were achieved. Quotes view change management as a key bar for change management effectiveness and feedback from change leaders and component to project management and prove its value, the CMO should individuals on the receiving end of the success. Transforming an organization’s model change management delivery on change can also send a meaningful culture requires time, patience and a individual projects early on. message of how change management conscious effort by employees and was beneficial. leaders to embrace and normalize Select a high-profile, high-visibility change management as a natural part of project so employees can experience Metrics business operations. To do this, leaders the benefits of change management must consistently demonstrate the value Change metrics can include measures of directly. Ensure project sponsors of change management and reinforce its adoption of the change and measures of and leaders already support change use. Additionally, when celebrating project project success. Examples of measures management to increase the chances of or initiative “wins,” leaders should laud not of adoption include the number a positive experience. Finally – and most only the design and execution of a project of individuals using a new tool, the importantly – select a project where but change management’s role in its percentage of employees operating in change management efforts have a high success. As leaders reward and recognize the change state, and the percentage of probability of succeeding. Understand change management, its importance will projects within the organization including that if the project fails, employees will be reinforced with employees and within change management activities. Examples have difficulty distinguishing between the organization. well-executed change management on a of measures of project success include poor project and poorly executed change the overall realization of project value and Change management should become management. The right project with the time required to reach full productivity an expectation within the organization. well-delivered change management with a change. Two metrics that are As projects are planned, change sends a powerful message demonstrating used most successfully to demonstrate management should be included in the its value. the value of change management are plans. As projects are planned, budgeted the percentage of projects that include and reviewed, change management Step 8. Measure and show change management activities that met should always be included in each step change management results their adoption goals, and the percentage of the process. Employees and leaders of projects using change management and successes should expect change management to efforts that realized intended business become ingrained within an organization’s Demonstrating positive results over objectives. When these metrics are culture as a standard expectation for any multiple projects builds continued compared to the percentage of projects new initiative or project. support for change management. These not including change management results and successes may include both activities, it can send a powerful message anecdotal evidence and metrics. As on the value of change management. leaders and employees see over time the benefits of change management, they will continue to support it as it becomes a part of normal operations. Conclusion With deliberate and thoughtful planning, About Hitachi Consulting organizations can begin to make change Organizations that have successfully Hitachi Consulting is the global solutions management a part of their business established a CMO typically follow the and professional services organization and future success. Fully establishing a following nine major steps: within Hitachi Ltd., a global innovation CMO takes time – often between three leader in industrial and information 1. Design and establish a change and five years. However, once a CMO technology solutions and an early management office structure. is successfully established, it provides pioneer of the Internet of Things. Hitachi the ability to effectively create changes, 2. Create change management Consulting is a business integrator for thereby building and maintaining the methodology, tools and resources. the IoT era and a catalyst for digital competitive advantage needed to survive transformation. Using our deep domain 3. Align the change management and thrive in business. methodology with project knowledge, we collaborate with clients management. to help them innovate faster, maximize operational efficiency and realize 4. Engage key leaders and stakeholders measurable, sustainable business and to support the CMO. societal value. As a consulting-led 5. Raise awareness of change solutions company, we can help you management and the CMO. leverage data as a strategic asset to drive competitive differentiation, customer 6. Develop change management loyalty and growth. To learn more, visit knowledge and skills in employees. www.hitachiconsulting.com. 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 key part of project implementation.