1. TRANSFORMATIONAL
CHANGE
MANAGEMENT

2. 2 views of transformational
2
change
Organizational Personal
A process of A process of adjustment
implementing changes to changed
across organizations conditions, adoption of
Requires: new behaviors
 Clear strategic Requires:
imperatives  Clarity of why change
 Top leadership support, needs to happen
 Project management  Understanding of
structure, personal attitude to
 Decisions on change
structural, personnel  Commitment to personal
and cultural issues behavioral roadmap
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3. Organizational Transformations
3
The key to
organizational
transformation
is a thorough
and consistent
process, which
recognizes
both the Change Transformation
organizational
and personal
aspects of
change
management
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4. Dependencies and success
4
factors
Top
Manageme
nt support
Resource Understanding
and the current
manage as culture and
a key business
drivers
project
Behavioral Active
Change Communic
Roadmap ations
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5. Phases of Change Process 1 –
Organizational Emphasis
5
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6. Timeline – Phase 1
6
Defining
Transformation Event 1
Master Plan • Day 1 + 90
As Is • Day 1 + 60
Diagnostic
• Days 20 - 50
Planning
• Day 1+20
Realization
• Day1
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7. 1. Change Realization – Day 1
7
 Triggered by an “external” event:
 Reorganization
 Merger or acquisition
 New management
 New product
 Market shift (threat or opportunity)
 Realization by management that a new
direction is needed
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8. 2. Planning
8
 Marshaling of views and opinions
 Seeking internal and external partners
 Brainstorming the situation, visioning of
outcomes
 Setting up a “change team” and structures:
 SteeringCommittee and work groups
 Master Plan high-level adoption
 Starting to discuss the need for change
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9. 3. “As Is” diagnostics
9
Launch
 Surveys Focus Groups Feedback Analysis Final
and Sessions Report
interviews
Analyze capabilities Conduct a Standard and
Conduct focus Validation of results Process and
needed to achieve diagnostic survey customized Reports
groups to test with senior analyze results.
strategic goals. Conduct interviews organizational management with detailed
with Senior culture and Compare to analysis:
Agree Measurement Conduct external Benchmark data.
Executives: capability levels Cross comparison
matrix customer analysis
• Company history (the view form Design a gap against
Customize analysis and
• Strategy outside the measurement Matrix
questionnaires and development needs
workshops to • Operations organization Benchmarks
organizational • Leadership Propose suitable comparisons
measurement matrix • Aspirations organizational
changes Organization design
Make a choice of • Expectations and development
diagnostic method: needs proposals
surveys and/or
interviews
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10. 4. Transformation Master Plan
10
 Control of Culture Change through a Detailed
Master Plan
 Establishment of PMO (Project Management
Office)
 Work streams identified with leaders appointed
 Scoping of work stream workload with
milestones and deliverables identified
 Establishment of content and organization
committees for the Defining Event
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11. 5. Defining Event1
11
 A catalyzing event to indicate the “before and
after” boundary
 Focuses attention of stakeholders on the specifics
of change and engages them in the
transformation process
 Typical topics:
 New vision and values
 New strategy and roadmap for implementation
 New culture and behaviors
 Typically involves top 10% of the
organization, with follow up communication events
for next level of management
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12. Deliverables of the Defining
12
Event
“Defining  Defining Event is a tool to “swing the
Event pendulum” in the direction of desired
establishes a change
clear
boundary  Draws a clear line between the past
between the and the future
past and
future. It is  Communicates the transformation
now clear to roadmap to a wide audience
us that the
management
 Articulates what needs to change and
is committed how it will happen
to make this
happen”
 Commits top management to a time-
bounded program
Participant
feedback
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13. Phases of Change Process Phase
13
2 – Personal Emphasis
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14. Timeline – Phase 2 (Personal
14 Aspects)
Ensuring
continuity
• ongoing
Culture
Change
Workshops
Defining Event 2 • Days 121 - 170
• Day 1+120
Change
Development
• Days 90 - 120
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15. 6. Change Development
15
 Intense decision-making period between defining
events 1 and 2
 Typical tasks:
 New structure confirmation and appointments to new
roles
 Developing a new behavioral model – how the new
culture will look, what stakeholders will stop and start
doing for the transformation to occur
 Preparing for the roll-out of cultural change workshops
to install the new behavior model
 Informative and frequent communications –
maintaining the momentum
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16. 7. Defining Event 2 – the New
16
Culture
 Fulfillment of commitments given at DE1 -
structural changes and new process rollouts
 Launching the new culture and behaviors
 Management driving change through the
organization – empowering the next level of
leaders
 Culture change workshop for the top
management – initiating the rollout across
management and key customer-facing
functions (e.g. sales, logistics)
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17. 8. Culture Change Workshops
17
 Explaining the process of personal change:
 Organizations don’t change –people do
 Chaotic processes have rules (e.g. butterfly effect
– small changes at the start of the journey can
have huge consequences)
 Behavior is habit, and can be changed
 Participants develop a commitment
roadmap, using a common template – clear
public statements on what they will stop and
start doing
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18. 9. Ensuring continuity
18
Transformation process is supported by a number of
interventions, the objectives of which are:
 Support of the new behavioral model and the
“common language” of the organization:
 Publications supporting personal behavioral commitments
(follow-up of culture change forums)
 Monitoring of behavioral commitments as part of employee
development reviews
 Development of change management skills of middle
managers though training and corporate project
assignments
 Communicating success stories
 Symbols and recognition events
 Change monitoring and “course corrections”
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19. TRANSFORMATIONAL
CHANGE
MANAGEMENT
Adam Filler
November 2011