Organizational Change Management (OCM) is a strategic framework on how to manage change. Discover the challenges companies experience during business transformations and get tips and advice for how to successfully execute an initiative. Learn how to effectively drive change within your organization and how changes in technologies, structure, processes and culture should be managed and prepared for ahead of a major transformation initiative. Presented during a GTRI webinar on October 13, 2016.

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Organizational Change
Management Overview
Steve Mollen - smollen@gtri.com - (908) 331-1833

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Defining Organizational Change Management (OCM)
* Searchcio.techtarget.com/definition/organizational-change-management-OCM + https://en.wikipedia.org/wiki/Change_control
CHANGE MANAGEMENT NOT CHANGE MANAGEMENT
Change management is a framework
for managing the effect of changes in
structure, new business processes or
cultural changes within an enterprise.
Simply put, OCM addresses the people
side of change management.*
Change control, in the context of IT
systems, is a process used to ensure
that changes to a product or system are
introduced in a controlled and coordinated
manner.
Change Management ≠ Change Control
✓

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Driving Change that Sticks is Not a New Problem
“There is nothing more difficult to
take in hand, more perilous to
conduct, or more uncertain in its
success, than to take the lead in the
introduction of a new order of things.”
-Niccolo Machiavelli | 1469-1527

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Business Transformation Is Difficult
Wipro researched how companies are identifying the right projects
and what they are doing to drive results. Here’s what they learned.
Transformation is a
continuous process
not one-time action.
Companies must
pick a flexible, agile
business model that
enables continuous
change.
60% of CEOs failed
to achieve their
transformation
goals.
Too focused on
implementing
systems not overall
business impact.
40% of CEOs were
successful in
achieving their
goals.
• Executive sponsor
• Set clear goals
• Benchmarking
• Invested in OCM
Surprisingly -
technical challenges
and IT systems
changes were not
considered the most
important variables
affecting successful
transformation.
In the end, it’s
about changing
people’s mindsets
to the view that we
now live and work in
a world of constant
change. Either get
on board or be left
behind!
Source: Wipro Consulting, 2010

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Top Reasons Transformations Fail
31%
31%
19%
15%
4%
People
Project Management
Communication
Integration
Other
• Change management is critical
for driving successful adoption
of a company’s vision
• The most effective change
teams are comprised of both
clients and consultants
• Visibly committed leaders are
vital to success
Implications
50% Are Addressed by OCM!
✓
Journal of Information Technology – Prosci’s 2009 Benchmarking report

8. Common Change Challenges
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Barriers to Change Involve People
“Leaders are unrealistic about how
change is going to happen. They move
ahead anyway and get into problems.”
— Change Manager, Energy and Utilities company
*Source: IBM Global Making Change Work Study, 2008, (n = 1,532)
Changing mindsets and attitudes
Corporate culture
Complexity is underestimated
Shortage of resources
Lack of executive commitment
Lack of change know how
Lack of transparency
Lack of employee motivation
Change of process
Change of IT systems
58%
49%
35%
33%
32%
20%
18%
16%
15%
12% Soft Factors Hard Factors
What is generally considered the “soft stuff” is hard and critical to success
• Key barriers are changing
mindsets, attitudes, culture and
complexity
• These “soft factors” are rated more
important than resource
constraints illustrating they are
hard to manage

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OCM: Faster Business Results, Minimized Impact
Greater
Realization of
anticipated
benefitsHigh
Expectations
Managed
Expectations
Realization of Effort &
Complexity
Anticipated
Service Dip
Disillusionment
100%
90%
80%
70%
60%
Faster realization of
anticipated benefits
Time
Without Change
Management
With Effective and
Proactive Change
Management
Performance
Reduced dip in
performance

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Double Your Success by Investing in OCM
67%-75%
25%-33%
Getting the “people” part right is the most important
factor affecting successful change
Sources: *McKinsey, Global Survey Results, July 2008 - **SAP, Critical Role of Org Change Teams in Transformation Projects, 2009
90% of those who
included OCM in
their project
estimate reported
success as “high”
or “very high”**

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What Is Organizational Change Management?
OCM is a structured process to help people adopt and adapt to a new reality.
Change Announcement
Unclear Expectations
Misaligned Hopes
Rampant Fears
Successful Execution
Clear Vision
Aligned Expectations
Engaged Stakeholders
OCM
Human Factor: for desired business results, capture the hearts and minds of impacted groups.

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OCM Mitigates People Related Risks
• Vision, alignment and inspiration
• Leadership that models desired behavioral change
• Balancing control with letting go
• Recognizing the need for organizational
interdependence and collaboration
What Does Change Management involve?
True transformation requires a change to the core DNA. It involves
adjusting the belief and attitude of the people.

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Change Is Difficult and Personal
• People are comfortable with what they know
• Forced initiatives make them question things
o Jobs, Roles and Tasks, Teams, Skills
• People change for their own personal reasons
o Understand and believe in the new direction
o Follow orders from leaders
o Trust peers who are on board
o Excited to learn something new
o Problems they’re aware of are being addressed
o Changing enables them to keep their jobs
o Rewarded (e.g., financially) for changing
Change is a Journey,
not a program or a
workshop, etc.
Change occurs over a
period of time, often
longer than we expect
Change Is a Journey

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Governance
• Change initiatives are often driven by one
function in the organization
• Success depends on adoption from other
employees
• Creates friction as the owner may not have
“authority” over the impacted functions
• Successful change initiatives are led by active,
visible, cross-functional leaders
“If leaders did what
they were supposed
to with driving
change, we wouldn’t
need OCM”
HR Manager, Beverage
Company
“

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Debunking Common OCM Myths
OCM > (TRAINING + COMMUNICATIONS)1
NEW TECHNOLOGY ≠ TRANSFORMATION2
CONSULTANTS MANAGE THE ACTUAL CHANGE3

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OCM Guiding Principles
1) Involve all personnel to create organizational ownership
2) Drive change from top down and bottom up
3) Develop and execute a customized change plan
4) Measure effectiveness throughout for real-time adjustments
5) Accentuate change-related data specific to the affected
6) Drive buy-in through proper documentation of need, benefits
7) New environments change how things get done, require new skills
8) Always keep people in the loop with what is happening and why

17. Business led
Simple vision,
strategy
Creative and
emotional
Establish a
sense of
urgency
Develop a
Vision &
Strategy
Communicate
the Change
Vision
Inclusive
decision
making
Generate
short-
term wins
Create the
Guiding
Coalition
Reinforce
the change
Inspire action
Real, relevant
objectives
Ownership for
outcomes
Right people,
commitment
Right skills,
Levels
Involve as many
people as possible
Simple
communications
Appeal, respond
to people’s needs
Remove
obstacles
Constructive
feedback
Voice for
stakeholders
Set Bite-sized
goals
Constructive
feedback
Manage pace
in stages
Determination,
persistence
Progress
Reporting
Highlight
milestones
Inclusive Governance Leads to Strong Project Execution
The Result of Inclusive Governance and Strong Execution Is Successful Change! This Is Why OCM Is an Art AND a Science.
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Critical Success Factors
Use Inclusive Governance: Build Alignment with Effective Decision Making1
2
3

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Selected OCM Tools
Change readiness
assessment
Leadership action plan Benefits, realization
methodology
Vision for change Culture action plan Role definitions
Change strategy, plan Comm strategy, plan Organizational design
Change champion
network
Stakeholder analysis Performance mgmt
framework
Leadership
engagement plan
Training strategy, plan
and materials
Effectiveness surveys
Every Successful Project Needs “Go-To” Tools and “Creative” Tools
“Go-To”
Expect to use new
tools along the way,
even getting creative
to “invent” resources
that can help drive
success.
“Creative”

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Thank You!
Steve Mollen - smollen@gtri.com - (908) 331-1833