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Four Perspectives
on Change Management
July 2014
Emer O’Kelly, Regional Director
Europe, Chazey Partners
Ann-Marie Massenberg, Chief of
Staff, Program Support Center, U.S.
Department of Health & Human
Services
Kayzad Hiramanek, COO, Avantha
ERGO Life Insurance
Richard J. Rowan, Jr., Director,
Global Shared Services, TRW
Automotive
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  
INTRODUCTION	
  
Why	
  do	
  projects	
  fail?	
  A	
  simple	
  enough	
  question.	
  If	
  you	
  analysed	
  a	
  hundred	
  answers,	
  you’d	
  find	
  
the	
  common	
  denominator	
  to	
  be	
  “ill-­‐planned	
  and	
  ill-­‐implemented	
  change.”	
  
But	
  despite	
  the	
  lip	
  service	
  given	
  to	
  change	
  management	
  as	
  a	
  “core	
  enabler”	
  of	
  project	
  
implementations	
  like	
  Shared	
  Services,	
  the	
  evidence	
  supporting	
  its	
  deployment	
  is	
  still	
  weak.	
  
We’ve	
  asked	
  some	
  of	
  Chazey’s	
  clients	
  and	
  fellow	
  practitioners,	
  all	
  of	
  whom	
  have	
  led,	
  and	
  
continue	
  to	
  lead,	
  Shared	
  Services	
  implementations	
  or	
  transformations	
  and	
  who	
  have	
  first-­‐hand	
  
experience	
  of	
  operating	
  at	
  the	
  frontline,	
  to	
  comment	
  on	
  key	
  mistakes	
  made	
  in	
  planning,	
  tips	
  on	
  
managing	
  customer	
  resistance,	
  and	
  advice	
  on	
  how	
  to	
  get	
  it	
  right,	
  first	
  time.	
  
THE	
  PITFALLS	
  OF	
  “CHANGE”	
  
o Change	
  Management	
  is	
  all	
  too	
  frequently	
  underestimated	
  or	
  insufficiently	
  accounted
for	
  in	
  corporate	
  transitions.	
  Why	
  is	
  this	
  important?
o Failings	
  in	
  Change	
  Management	
  boil	
  down,	
  time	
  and	
  again,	
  to	
  overlooking	
  a	
  few	
  key
stepping	
  stones.	
  What	
  are	
  the	
  most	
  common	
  mistakes?
o Customer	
  resistance	
  is	
  one	
  of	
  the	
  biggest	
  obstacles	
  to	
  change.	
  How	
  can	
  you	
  work
around	
  this	
  constructively?
o What	
  are	
  3	
  core	
  factors	
  to	
  consider	
  that	
  ensure	
  Change	
  Management	
  supports	
  your
objectives?
1	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  
Change	
   Management	
   is	
   all	
   too	
   frequently	
   underestimated	
   or	
   insufficiently	
  
accounted	
  for	
  in	
  corporate	
  transitions.	
  Why	
  is	
  this	
  important?	
  	
  
Emer	
  O’Kelly	
  
Regional	
  Director	
  Europe	
  
Chazey	
  Partners	
  
Any	
  significant	
  change	
  to	
  a	
  business’s	
  operations,	
  including	
  a	
  transformation	
  of	
  
its	
  support	
  services,	
  requires	
  a	
  clear	
  vision	
  and	
  strategy	
  in	
  order	
  to	
  have	
  a	
  
fighting	
  chance	
  of	
  succeeding.	
  This	
  vision	
  needs	
  to	
  be	
  clearly	
  linked	
  to	
  the	
  
challenges	
  facing	
  the	
  business,	
  make	
  realistic	
  allowance	
  for	
  the	
  circumstances	
  
but,	
  above	
  all,	
  be	
  demonstrably	
  supported	
  by	
  the	
  key	
  leaders	
  in	
  the	
  business.	
  
Actions	
  must	
  mirror	
  words	
  and	
  many	
  an	
  initiatives	
  has	
  been	
  “damned	
  by	
  faint	
  
praise”	
  by	
  those	
  senior	
  people	
  in	
  the	
  company,	
  who	
  others	
  look	
  to	
  for	
  
leadership,	
  and	
  have	
  faded	
  away	
  as	
  a	
  result.	
  
Major	
  organisational	
  changes	
  require	
  business	
  leaders	
  to	
  show	
  their	
  mettle	
  and	
  
this	
  includes	
  giving	
  true	
  commitment	
  and	
  guidance	
  which	
  others	
  can	
  focus	
  on,	
  
follow	
  and	
  build	
  on	
  themselves.	
  This	
  applies	
  especially	
  to	
  a	
  transformation	
  or	
  
migration	
  to	
  a	
  shared	
  services	
  structure,	
  where	
  there	
  is	
  a	
  natural	
  fall-­‐back	
  
position	
  of	
  continuing	
  to	
  do	
  what	
  was	
  done	
  before,	
  regardless	
  of	
  what	
  is	
  
happening	
  at	
  the	
  front-­‐end	
  of	
  the	
  business	
  in	
  terms	
  of	
  market	
  changes,	
  product	
  
development	
  and	
  customer	
  expectations.	
  
Transmitting	
  the	
  vision,	
  internally	
  and	
  externally,	
  is	
  critical	
  to	
  successful	
  change	
  
and	
  under-­‐committing	
  to	
  communicating	
  this	
  can	
  slow	
  down,	
  or	
  even	
  de-­‐rail	
  
success	
  of	
  an	
  otherwise	
  well	
  planned	
  initiatives.	
  The	
  ideal	
  is	
  to	
  build	
  a	
  guiding	
  
coalition	
  of	
  people	
  who	
  are	
  evangelical	
  about	
  the	
  project	
  and	
  who	
  will	
  foster	
  
emotional	
  engagement	
  and	
  ownership	
  of	
  the	
  solutions.	
  	
  
Ann-­‐Marie	
  Massenberg,	
  Chief	
  of	
  Staff,	
  Program	
  Support	
  Center	
  
U.S.	
  Department	
  of	
  Health	
  &	
  Human	
  Services	
  	
  
SSO	
  implementations	
  by	
  their	
  nature	
  involve	
  a	
  certain	
  amount	
  of	
  angst	
  on	
  the	
  
part	
  of	
  the	
  organization	
  that	
  is	
  transitioning	
  from	
  a	
  self-­‐serve	
  model	
  to	
  an	
  
outsourced	
  model.	
  Typically,	
  there	
  tends	
  to	
  be	
  a	
  feeling	
  of	
  loss	
  of	
  control,	
  
concern	
  about	
  responsiveness	
  and	
  quality,	
  and	
  a	
  general	
  sense	
  of	
  uncertainty.	
  
Couple	
  that	
  with	
  the	
  mechanics	
  and	
  coordination	
  involved	
  in	
  shutting	
  down	
  
one’s	
  own	
  operation	
  and	
  transitioning	
  that	
  to	
  a	
  shared	
  service	
  provider	
  (e.g.	
  
transitioning	
  data,	
  performing	
  business	
  process	
  improvements,	
  and	
  
configuration)	
  and	
  it	
  can	
  be	
  incredibly	
  overwhelming.	
  In	
  this	
  situation,	
  when	
  
change	
  management	
  is	
  lacking,	
  the	
  impact	
  to	
  the	
  implementation	
  can	
  be	
  costly.	
  
Without	
  change	
  management,	
  SSO	
  implementations	
  stand	
  the	
  risk	
  of	
  poor	
  
2	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  
adoption	
  by	
  the	
  receiving	
  organization.	
  Stakeholders	
  who	
  are	
  confronted	
  with	
  
change,	
  and	
  not	
  supported	
  with	
  a	
  comprehensive	
  change	
  management	
  strategy	
  
that	
  includes	
  a	
  clear	
  vision	
  of	
  the	
  end	
  state,	
  informative	
  and	
  consistent	
  
communications,	
  and	
  inclusive	
  involvement	
  in	
  the	
  change	
  activities,	
  are	
  more	
  
likely	
  to	
  produce	
  undesired	
  results.	
  These	
  include,	
  delays,	
  errors	
  that	
  require	
  
extensive	
  re-­‐work,	
  and	
  poor	
  morale.	
  
Kayzad	
  Hiramanek,	
  COO	
  
Avantha	
  ERGO	
  Life	
  Insurance	
  
The	
  basic	
  human	
  nature	
  is	
  resistance	
  to	
  change.	
  Therefore	
  to	
  say	
  that	
  any	
  form	
  
of	
  transition	
  or	
  change	
  will	
  cause	
  upheaval	
  within	
  and	
  outside	
  an	
  organization	
  is	
  
stating	
  the	
  obvious.	
  	
  The	
  most	
  common	
  issues	
  reported	
  in	
  poor	
  change	
  
management	
  and	
  the	
  resultant	
  consequences	
  include	
  an	
  atmosphere	
  of	
  
uncertainty,	
  talent	
  attrition,	
  staff	
  de-­‐	
  motivation,	
  inter	
  department	
  politicking	
  
and	
  one-­‐upmanship.	
  All	
  new	
  initiatives	
  will	
  be	
  still	
  born	
  and	
  the	
  overall	
  
organization	
  agenda	
  will	
  be	
  derailed	
  owing	
  to	
  poor	
  communication	
  from	
  the	
  
management	
  on	
  the	
  intent	
  regarding	
  the	
  changes	
  to	
  follow.	
  	
  	
  
Eventually,	
  people	
  like	
  working	
  in	
  a	
  stable	
  environment	
  where	
  changes,	
  if	
  any,	
  
are	
  introduced	
  in	
  small	
  doses	
  and	
  keeping	
  all	
  affected	
  parties	
  informed	
  on	
  the	
  
timelines	
  and	
  long	
  term	
  organization	
  goal	
  around	
  the	
  same.	
  The	
  moment	
  people	
  
perceive	
  a	
  threat	
  to	
  their	
  jobs,	
  the	
  resultant	
  push	
  back	
  through	
  the	
  grape	
  vine	
  
and	
  corridor	
  conversations	
  will	
  swiftly	
  obscure	
  the	
  real	
  motive	
  of	
  the	
  change.	
  
Richard	
  J.	
  Rowan	
  Jr.,	
  Director,	
  Global	
  Shared	
  Services	
  
TRW	
  Automotive	
  	
  
While	
  there	
  is	
  a	
  broad	
  and	
  growing	
  shared	
  services	
  and	
  business	
  services	
  
presence	
  in	
  the	
  board	
  rooms	
  and	
  operations	
  of	
  companies	
  worldwide,	
  there	
  
remains	
  -­‐	
  even	
  among	
  practitioners	
  -­‐	
  variation	
  in	
  the	
  definition,	
  scope	
  and	
  
structure	
  of	
  shared	
  services.	
  	
  In	
  light	
  of	
  that,	
  to	
  expect	
  a	
  targeted	
  area	
  of	
  a	
  
business	
  to	
  understand	
  what	
  shared	
  services	
  or	
  business	
  services	
  is	
  with	
  little	
  to	
  
no	
  introduction	
  and	
  no	
  listing	
  of	
  expected	
  benefits	
  to	
  both	
  the	
  target	
  
area/function	
  and	
  the	
  broader	
  company	
  is	
  a	
  recipe	
  for:	
  	
  at	
  best,	
  a	
  difficult	
  
implementation	
  and	
  at	
  worst,	
  a	
  failed	
  shared	
  services	
  implementation.	
  
Commitment/support	
  from	
  the	
  top	
  is	
  critical	
  but	
  paying	
  attention	
  to	
  all	
  levels	
  is	
  
vital.	
  
3	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  
Failings	
  in	
  Change	
  Management	
  boil	
  down,	
  time	
  and	
  again,	
  to	
  overlooking	
  a	
  
few	
  key	
  stepping	
  stones.	
  What	
  are	
  the	
  most	
  common	
  mistakes?	
  
Emer	
  O’Kelly,	
  Regional	
  Director	
  Europe	
  
Chazey	
  Partners	
  
“Too	
  little,	
  too	
  late	
  and	
  not	
  often	
  enough”	
  could	
  sum	
  up	
  the	
  challenges	
  to	
  avoid	
  
in	
  achieving	
  effective	
  change	
  management	
  through	
  communication.	
  
It	
  is	
  too	
  often	
  perceived	
  as	
  something	
  to	
  do	
  later,	
  or	
  to	
  be	
  done	
  by	
  someone	
  
else.	
  To	
  be	
  effective,	
  there	
  needs	
  to	
  be	
  consistent,	
  regular,	
  clear	
  flow	
  of	
  
communication	
  with	
  working	
  structure	
  to	
  allow	
  for	
  this	
  communication	
  to	
  be	
  
genuinely	
  two-­‐way,	
  and	
  this	
  needs	
  to	
  commence	
  at	
  the	
  earliest	
  reasonable	
  time.	
  
For	
  a	
  transformation,	
  this	
  is	
  likely	
  to	
  be	
  after	
  a	
  business	
  case	
  has	
  been	
  
established	
  and	
  the	
  commitment	
  is	
  made	
  to	
  performing	
  a	
  transformation.	
  (There	
  
is,	
  of	
  course,	
  communication	
  required	
  during	
  a	
  business	
  case	
  phase	
  but	
  this	
  does	
  
tend	
  to	
  be	
  a	
  more	
  limited	
  audience).	
  	
  
The	
  communication	
  network	
  also	
  needs	
  to	
  cover	
  all	
  levels	
  which	
  need	
  to	
  be	
  
aware	
  of	
  the	
  proposed	
  changes	
  and	
  their	
  impacts,	
  some	
  of	
  which	
  are	
  obvious	
  
(e.g.	
  “what’s	
  in	
  it	
  for	
  me?”)	
  to	
  others	
  which	
  are	
  less	
  so	
  (e.g.	
  the	
  company’s	
  ability	
  
to	
  attract	
  suitable	
  talent	
  through	
  its	
  reputation	
  in	
  the	
  market-­‐place).	
  This	
  calls	
  
for	
  the	
  use	
  of	
  many	
  different	
  channels	
  of	
  communication	
  –	
  e.g.	
  town-­‐hall	
  
meetings,	
  smaller	
  groups,	
  1-­‐to-­‐1’s,	
  breakfast	
  briefings,	
  walk-­‐abouts,	
  confirmed	
  
be	
  email	
  as	
  appropriate	
  and	
  backed	
  up	
  by	
  project	
  web-­‐site	
  	
  /	
  blog	
  /	
  FAQ’s.	
  
Whatever	
  channel	
  or	
  timing	
  is	
  followed,	
  the	
  message	
  needs	
  to	
  be	
  consistent	
  and	
  
regularly	
  reinforced,	
  and	
  presented	
  in	
  a	
  positive	
  light.	
  
Ann-­‐Marie	
  Massenberg,	
  Chief	
  of	
  Staff,	
  Program	
  Support	
  Center	
  
U.S.	
  Department	
  of	
  Health	
  &	
  Human	
  Services	
  	
  
I	
  think	
  that	
  change	
  management	
  is	
  frequently	
  confused	
  with	
  a	
  communication	
  
plan.	
  Some	
  leaders	
  focus	
  on	
  providing	
  training,	
  and	
  executing	
  a	
  communication	
  
plan.	
  Many	
  fail	
  to	
  see	
  that	
  the	
  most	
  important	
  element	
  of	
  change	
  management	
  
is	
  that	
  those	
  affected	
  must	
  be	
  involved	
  in	
  the	
  change	
  rather	
  than	
  having	
  change	
  
imposed	
  upon	
  them.	
  They	
  need	
  to	
  buy	
  in	
  to,	
  or	
  at	
  the	
  very	
  least	
  understand,	
  the	
  
vision	
  and	
  the	
  end	
  state.	
  And	
  they	
  must	
  be	
  involved	
  in	
  all	
  aspects	
  of	
  the	
  change	
  
in	
  order	
  to	
  enable	
  and	
  facilitate	
  the	
  change.	
  	
  All	
  parties	
  involved	
  need	
  to	
  
understand	
  the	
  reason(s)	
  for	
  the	
  change	
  and	
  have	
  a	
  chance	
  to	
  be	
  involved	
  in	
  the	
  
decisions	
  of	
  how	
  the	
  change	
  will	
  be	
  managed,	
  planned,	
  and	
  implemented.	
  
4	
  
	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  	
  
	
  	
  
	
  
Kayzad	
  Hiramanek,	
  COO	
  
Avantha	
  ERGO	
  Life	
  Insurance	
  	
  
	
  
There	
  are	
  several	
  mistakes	
  leadership	
  can	
  make	
  in	
  this	
  area.	
  There	
  is	
  no	
  magic	
  
formula	
  to	
  predict	
  whether	
  the	
  prescribed	
  change	
  will	
  actually	
  result	
  in	
  
betterment	
  of	
  the	
  organization.	
  World	
  over,	
  we	
  have	
  seen	
  innumerable	
  take-­‐
overs,	
  mergers	
  and	
  transitions	
  fail	
  owing	
  to	
  the	
  lack	
  of	
  anticipation	
  of	
  forces	
  that	
  
are	
  playing	
  in	
  the	
  background.	
  	
  	
  
	
  
Some	
  of	
  the	
  common	
  reasons	
  for	
  such	
  failures	
  begin	
  at	
  the	
  thought	
  level:	
  is	
  this	
  
change	
  really	
  required?	
  Is	
  the	
  organization	
  in	
  the	
  long	
  term	
  going	
  to	
  be	
  solely	
  
focussed	
  on	
  its	
  core	
  competencies?	
  Is	
  the	
  leadership	
  team	
  sufficiently	
  convinced	
  
that	
  this	
  decision	
  is	
  for	
  the	
  betterment	
  of	
  the	
  organization?	
  Can	
  our	
  customers	
  
stand	
  by	
  us	
  through	
  this	
  journey	
  of	
  transition?	
  Do	
  the	
  laws	
  of	
  the	
  land	
  permit	
  me	
  
to	
  make	
  such	
  a	
  transition?	
  	
  	
  
	
  
Many	
  a	
  time,	
  if	
  the	
  key	
  leadership	
  is	
  not	
  convinced	
  of	
  the	
  decision,	
  they	
  play	
  a	
  
vital	
  role	
  in	
  derailing	
  the	
  overall	
  change	
  and	
  its	
  implementation	
  schedule.	
  Even	
  if	
  
key	
  leadership	
  is	
  convinced,	
  sometimes	
  a	
  synchronized	
  communication	
  strategy	
  
is	
  essential	
  to	
  ensure	
  that	
  all	
  parts	
  of	
  the	
  organization	
  are	
  talking	
  the	
  same	
  
language	
  to	
  the	
  affected	
  parties.	
  Not	
  speaking	
  in	
  one	
  voice	
  is	
  also	
  detrimental	
  to	
  
the	
  overall	
  change	
  agenda.	
  	
  	
  
	
  
In	
  addition,	
  not	
  identifying	
  key	
  resources	
  that	
  manage	
  large	
  customer	
  
relationships	
  and	
  ensuring	
  their	
  retention	
  is	
  vital	
  to	
  ensure	
  that	
  the	
  internal	
  
challenges	
  do	
  not	
  manifest	
  themselves	
  to	
  the	
  external	
  eco	
  system.	
  
	
  
	
  
	
  
Richard	
  J.	
  Rowan,	
  Jr.,	
  	
  
Director,	
  Global	
  Shared	
  Services	
  
TRW	
  Automotive	
  	
  
	
  
Change	
  management	
  is	
  often	
  perceived	
  as	
  a	
  nice	
  to	
  have	
  instead	
  of	
  the	
  critical	
  
to	
  success	
  item.	
  	
  As	
  such,	
  many	
  shared	
  services	
  implementations	
  spend	
  too	
  little	
  
time	
  -­‐	
  at	
  all	
  levels,	
  especially	
  the	
  grass	
  roots	
  level	
  -­‐	
  working	
  to	
  understand	
  the	
  
vantage	
  point	
  of	
  those	
  closest	
  to	
  the	
  targeted	
  work.	
  	
  The	
  late	
  Stephen	
  R.	
  Covey	
  
in	
  his	
  book	
  The	
  7	
  Habits	
  for	
  Highly	
  Effective	
  People	
  wrote	
  about	
  seeking	
  first	
  to	
  
understand,	
  then	
  to	
  be	
  understood.	
  	
  Taking	
  the	
  time	
  to	
  do	
  this	
  helps	
  build	
  the	
  
relationship	
  and	
  ensure	
  that	
  you	
  understand	
  the	
  concerns	
  held	
  by	
  those	
  
impacted	
  by	
  shared	
  services.	
  	
  As	
  Covey	
  would	
  say,	
  being	
  efficient	
  with	
  people	
  is	
  
not	
  effective.	
  	
  Spend	
  the	
  time.	
  
	
  
	
  
	
  
	
  
5	
  
	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  	
  
	
  	
  
	
  
	
  
Customer	
  resistance	
  is	
  one	
  of	
  the	
  biggest	
  obstacles	
  to	
  change.	
  How	
  can	
  you	
  
work	
  around	
  this	
  constructively?
	
  
Emer	
  O’Kelly,	
  Regional	
  Director	
  Europe	
  
Chazey	
  Partners	
  
	
  
Maintaining	
  the	
  level	
  of	
  customer	
  service,	
  performance	
  and	
  accessibility	
  is	
  a	
  
prerequisite	
  to	
  protect	
  the	
  business’	
  activity	
  as	
  it	
  goes	
  through	
  a	
  major	
  change	
  
process.	
  This	
  extends	
  to	
  presenting	
  why	
  the	
  change	
  is	
  required	
  i.e.	
  to	
  further	
  
strengthen	
  the	
  business	
  and	
  its	
  ability	
  to	
  continue	
  to	
  deliver	
  good	
  quality	
  
products	
  and	
  services.	
  
	
  
Customers	
  must	
  be	
  reassured	
  there	
  is	
  no	
  significant	
  risk	
  to	
  their	
  supply	
  and	
  that	
  
the	
  elements	
  which	
  cause	
  them	
  to	
  trade	
  with	
  the	
  company	
  in	
  the	
  first	
  place	
  are	
  
recognised	
  and	
  valued	
  by	
  the	
  business,	
  and	
  will	
  be	
  maintained	
  or	
  enhance	
  by	
  the	
  
transformation.	
  Thus,	
  there	
  needs	
  to	
  be	
  a	
  flow	
  of	
  communication	
  to	
  customers	
  
which	
  makes	
  them	
  aware	
  there	
  is	
  a	
  change,	
  why	
  and	
  what	
  impacts	
  are	
  
envisaged.	
  This	
  may	
  extend	
  to	
  specific	
  briefings	
  with	
  key	
  customers,	
  depending	
  
on	
  the	
  nature	
  of	
  the	
  business.	
  
	
  
This	
  need	
  to	
  disseminate	
  information	
  also	
  extends	
  to	
  other	
  stakeholders	
  such	
  as	
  
suppliers	
  and	
  others	
  who	
  may	
  potentially	
  be	
  affected,	
  including	
  banks	
  and	
  
regulatory	
  bodies.	
  This	
  whole	
  process	
  can	
  be	
  categorised	
  as	
  listening	
  to	
  the	
  
“voice	
  of	
  the	
  customer”,	
  finding	
  out	
  what’s	
  important	
  to	
  them	
  and	
  ensure	
  they	
  
are	
  given	
  the	
  appropriate	
  degree	
  of	
  attention.	
  
	
  
	
  
	
  
Ann-­‐Marie	
  Massenberg,	
  Chief	
  of	
  Staff,	
  Program	
  Support	
  Center	
  
U.S.	
  Department	
  of	
  Health	
  &	
  Human	
  Services	
  	
  
	
  
Managing	
  a	
  customer’s	
  resistance	
  to	
  change	
  requires	
  understanding	
  the	
  reason	
  
for	
  the	
  resistance.	
  In	
  some	
  cases,	
  it’s	
  fear	
  of	
  the	
  unknown.	
  In	
  others,	
  it’s	
  a	
  lack	
  of	
  
confidence	
  that	
  a	
  provider	
  can	
  provide	
  the	
  level	
  of	
  service	
  that	
  the	
  organization	
  
is	
  used	
  to.	
  We	
  engage	
  our	
  customers	
  right	
  away	
  and	
  involve	
  them	
  in	
  the	
  
planning	
  and	
  implementation	
  at	
  all	
  stages	
  of	
  the	
  process.	
  We	
  establish	
  quick	
  
wins	
  to	
  show	
  progress	
  and	
  gain	
  customer’s	
  confidence	
  in	
  our	
  abilities.	
  This	
  sets	
  
the	
  tone	
  for	
  what	
  they	
  can	
  expect	
  as	
  we	
  progress	
  with	
  the	
  transition.	
  We	
  ensure	
  
that	
  the	
  vision	
  and	
  end	
  state	
  is	
  clearly	
  and	
  thoroughly	
  communicated	
  to	
  all	
  
affected	
  people	
  and	
  provide	
  multiple	
  opportunities	
  for	
  clarification	
  and	
  
explanation	
  along	
  the	
  way.	
  
6	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  
Kayzad	
  Hiramanek,	
  COO	
  
Avantha	
  ERGO	
  Life	
  Insurance	
  
While	
  the	
  real	
  challenge	
  in	
  the	
  management	
  of	
  change	
  is	
  internal,	
  it	
  eventually	
  
manifests	
  itself	
  to	
  the	
  external	
  customer	
  if	
  key	
  stakeholders	
  decide	
  to	
  leave	
  the	
  
organization	
  and	
  the	
  relationship	
  with	
  external	
  customers	
  thus	
  weakens.	
  
Therefore,	
  identification	
  of	
  key	
  accounts	
  and	
  their	
  respective	
  relationship	
  
managers	
  is	
  a	
  vital	
  activity	
  to	
  be	
  undertaken.	
  In	
  addition,	
  senior	
  leadership	
  
should	
  take	
  charge	
  of	
  the	
  overall	
  organization	
  portfolio	
  and	
  build	
  one-­‐to-­‐one	
  
relationships	
  with	
  the	
  decision	
  makers	
  in	
  these	
  key	
  accounts	
  to	
  mitigate	
  the	
  
attrition	
  risk.	
  	
  	
  
In	
  addition,	
  subtly	
  sounding	
  off	
  customers	
  of	
  the	
  impending	
  changes	
  within	
  the	
  
organization	
  also	
  goes	
  a	
  long	
  way	
  in	
  building	
  a	
  relationship	
  of	
  trust	
  and	
  giving	
  
the	
  customer	
  the	
  comfort	
  that	
  the	
  provider	
  is	
  taking	
  this	
  decision	
  for	
  the	
  
betterment	
  of	
  all	
  parties	
  involved.	
  Nothing	
  could	
  be	
  worse	
  than	
  customers	
  
finding	
  out	
  about	
  big	
  bang	
  changes	
  in	
  the	
  media	
  and	
  then	
  seeking	
  clarity	
  on	
  
whether	
  the	
  existing	
  relationship	
  will	
  still	
  enjoy	
  the	
  same	
  level	
  of	
  priority	
  it	
  did.	
  	
  
Richard	
  J.	
  Rowan,	
  Jr.,	
  	
  Director,	
  Global	
  Shared	
  Services	
  
TRW	
  Automotive	
  	
  
Some	
  effort	
  should	
  be	
  extended	
  to	
  map	
  the	
  current	
  process.	
  Carefully	
  listen	
  to	
  
issues	
  raised	
  as	
  well	
  as	
  spend	
  some	
  time	
  explaining	
  how	
  things	
  will	
  change.	
  	
  
Highlight	
  the	
  benefits	
  and	
  any	
  offsetting	
  detriments	
  from	
  the	
  new	
  process.	
  	
  
Stephen	
  R.	
  Covey’s	
  seek	
  first	
  to	
  understand,	
  then	
  to	
  be	
  understood	
  habit	
  is	
  
extremely	
  beneficial.	
  This	
  is	
  truly	
  an	
  art.	
  	
  If	
  too	
  much	
  time	
  or	
  attention	
  is	
  allotted	
  
to	
  discussing	
  the	
  angst	
  of	
  change,	
  the	
  project	
  risks	
  being	
  thrown	
  off	
  schedule.	
  	
  
Alternatively,	
  if	
  not	
  enough	
  time	
  is	
  spent,	
  progress	
  on	
  the	
  project	
  will	
  likely	
  be	
  
more	
  slow	
  and	
  painful.	
  
7	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  
What	
  are	
  3	
  core	
  factors	
  to	
  consider	
  that	
  ensure	
  Change	
  Management	
  supports	
  
your	
  objectives?	
  
Emer	
  O’Kelly,	
  Regional	
  Director	
  Europe	
  
Chazey	
  Partners	
  
Identify	
  why	
  the	
  change	
  is	
  required	
  and	
  why	
  it	
  is	
  worth	
  doing,	
  then	
  create	
  a	
  
coalition	
  of	
  people	
  to	
  guide	
  the	
  initiative,	
  and	
  promote	
  and	
  drive	
  the	
  change	
  
message	
  consistently.	
  Positive	
  changes	
  must	
  be	
  led	
  and	
  sponsored	
  –	
  they	
  do	
  not	
  
happen	
  themselves;	
  they	
  require	
  energy,	
  enthusiasm	
  and	
  passion.	
  
(1)	
   Clear	
  vision	
  /	
  consistent	
  message	
  	
  
Identify	
  why	
  the	
  change	
  is	
  required	
  and	
  why	
  it	
  is	
  worth	
  doing,	
  then	
  create	
  a	
  
coalition	
  of	
  people	
  to	
  guide	
  the	
  initiative,	
  and	
  promote	
  and	
  drive	
  the	
  change	
  
message	
  consistently.	
  Positive	
  changes	
  must	
  be	
  led	
  and	
  sponsored	
  –	
  they	
  do	
  not	
  
happen	
  themselves;	
  they	
  require	
  energy,	
  enthusiasm	
  and	
  passion.	
  
(2)	
   Communication	
  
Create	
  a	
  communication	
  plan	
  which	
  addresses	
  the	
  major	
  issues,	
  concerns	
  and	
  
audiences,	
  which	
  also	
  allows	
  for	
  feed-­‐back,	
  queries	
  and	
  challenges.	
  	
  
Then	
  double	
  it.	
  J	
  
(3)	
   Managing	
  Stakeholder	
  relationships	
  
Ensure	
  that	
  all	
  significant	
  stakeholders,	
  internal	
  and	
  external,	
  are	
  addressed	
  
regularly	
  in	
  such	
  a	
  way	
  as	
  to	
  minimize	
  the	
  number	
  of	
  surprises	
  experienced	
  by	
  
anyone	
  with	
  an	
  interest	
  in	
  the	
  progress	
  of	
  the	
  initiative.	
  	
  
For	
  example,	
  there	
  should	
  be	
  no	
  cases	
  of	
  “I	
  didn’t	
  realize	
  that’s	
  what	
  it	
  meant”	
  
or	
  “that	
  timescale	
  is	
  unrealistic”,	
  encountered	
  at	
  crucial	
  points,	
  often	
  later	
  in	
  the	
  
project.	
  It	
  is	
  important	
  to	
  maintain	
  consistency	
  within	
  the	
  new	
  processes	
  as	
  far	
  
as	
  possible	
  and	
  to	
  avoid	
  unnecessary	
  workarounds	
  arising	
  from	
  such	
  potential	
  
misunderstandings.	
  
Kayzad	
  Hiramanek,	
  COO	
  
Avantha	
  ERGO	
  Life	
  Insurance	
  
While	
  there	
  are	
  so	
  many	
  factors	
  that	
  influence	
  the	
  course	
  of	
  successful	
  change,	
  
in	
  my	
  opinion	
  the	
  top	
  three	
  success	
  factors	
  would	
  be:	
  	
  
a) Clarity	
  in	
  leadership	
  thought	
  process	
  on	
  why	
  the	
  change	
  is	
  essential	
  and
beneficial	
  for	
  the	
  future	
  course	
  of	
  the	
  company.	
  In	
  conjunction,	
  buy	
  in	
  of	
  all	
  
senior	
  leadership	
  to	
  this	
  course	
  of	
  action	
  is	
  a	
  must.	
  	
  
b) Two	
  way	
  communication	
  with	
  the	
  employee	
  base	
  on	
  why	
  the	
  change/
transition	
  will	
  not	
  affect	
  people’s	
  jobs	
  at	
  least	
  for	
  the	
  initial	
  period.	
  
Eventually,	
  every	
  transition	
  is	
  accompanied	
  by	
  some	
  amount	
  of	
  attrition.	
  
The	
  key	
  is	
  to	
  keep	
  it	
  within	
  a	
  reasonable	
  limit	
  (globally	
  recorded	
  standards	
  
8	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  
are	
  around	
  10-­‐15%).	
  Ability	
  to	
  accept	
  employee	
  feedback/	
  suggestions	
  and	
  
a	
  visible	
  implementation	
  of	
  the	
  same	
  will	
  go	
  a	
  long	
  way	
  in	
  ensuring	
  that	
  
people	
  to	
  not	
  sand	
  bag	
  the	
  initiative.	
  	
  	
  
c) Management	
  of	
  the	
  eco	
  system	
  is	
  the	
  third	
  critical	
  element	
  in	
  this	
  piece.	
  No
organization	
  wants	
  a	
  trial	
  by	
  the	
  media	
  or	
  its	
  retail	
  shareholders	
  regarding	
  
its	
  motives.	
  	
  In	
  addition,	
  foresight	
  in	
  managing	
  regulators	
  and	
  vendors	
  is	
  key	
  
to	
  ensure	
  that	
  all	
  change	
  follows	
  legal	
  standards	
  with	
  regards	
  to	
  pending	
  
payments	
  and	
  tax	
  laws.	
  Finally,	
  management	
  of	
  key	
  customer	
  relationships	
  
should	
  be	
  thought	
  through	
  well	
  in	
  advance	
  to	
  ensure	
  survival	
  of	
  the	
  
business	
  through-­‐out	
  the	
  critical	
  path	
  of	
  the	
  project	
  
Ann-­‐Marie	
  Massenberg,	
  Chief	
  of	
  Staff,	
  Program	
  Support	
  Center	
  
U.S.	
  Department	
  of	
  Health	
  &	
  Human	
  Services	
  	
  
1) Clear	
  Vision	
  –	
  there	
  must	
  be	
  a	
  clear	
  end	
  state	
  that	
  must	
  be	
  explained
2) Involvement	
  –	
  of	
  all	
  the	
  people	
  affected	
  by	
  the	
  changes	
  in	
  the	
  	
  planning
and	
  execution	
  of	
  the	
  changes
3) Communication	
  –	
  consistent,	
  accurate,	
  and	
  thorough	
  communications	
  to
all	
  affected	
  people
Richard	
  J.	
  Rowan,	
  Jr.,	
  Director,	
  Global	
  Shared	
  Services	
  
TRW	
  Automotive	
  	
  
(1)	
   Change	
  leader,	
  change	
  thyself	
  -­‐	
  I	
  recently	
  read	
  a	
  McKinsey	
  &	
  Company	
  
article	
  entitled,	
  Change	
  Leader,	
  change	
  thyself.	
  	
  I	
  think	
  it	
  is	
  very	
  
important	
  that	
  as	
  we	
  ask	
  people	
  to	
  look	
  at	
  a	
  process	
  and	
  change,	
  we	
  at	
  
the	
  same	
  time	
  look	
  at	
  our	
  proposed	
  processes	
  and	
  remain	
  open	
  to	
  
finding	
  an	
  even	
  better	
  way	
  to	
  forward	
  –	
  change	
  leader,	
  change	
  thyself.	
  	
  
Being	
  candid	
  about	
  this	
  item	
  with	
  your	
  customers/impacted	
  parties	
  will	
  
build	
  credibility.	
  
(2)	
   Follow	
  The	
  7	
  Habits	
  of	
  Highly	
  Effective	
  People,	
  especially	
  habit	
  four	
  
through	
  six:	
  
• Seek	
  first	
  to	
  understand,	
  then	
  to	
  be	
  understood.
• Think	
  win-­‐win.
• Synergize
(3)	
   Communicate,	
  communicate,	
  communicate	
  –	
  remembering	
  all	
  aspects	
  of
the	
  communication	
  process:	
  sender,	
  receiver,	
  feedback	
  and	
  “noise”.
And,	
  don’t	
  forget	
  that	
  listening	
  is	
  a	
  part	
  of	
  communication.
9	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  
CONCLUSION	
  
Change	
  Management	
  is	
  crucial	
  to	
  leading	
  a	
  project	
  to	
  success	
  –	
  whether	
  this	
  is	
  a	
  Shared	
  Services	
  
implementation,	
  a	
  subsequent	
  process	
  improvement	
  or	
  transformation	
  initiative,	
  or	
  an	
  
expansion	
  of	
  scope	
  of	
  service.	
  Every	
  shift	
  from	
  “business	
  as	
  usual”	
  should	
  be	
  preceded	
  by	
  a	
  
change	
  management	
  plan.	
  
If	
  you	
  would	
  like	
  to	
  discuss	
  your	
  existing	
  change	
  management	
  framework,	
  or	
  take	
  a	
  first	
  step	
  
towards	
  embedding	
  solid	
  change	
  management	
  processes	
  in	
  your	
  operations,	
  our	
  practitioners	
  
would	
  be	
  pleased	
  to	
  guide	
  you	
  through	
  this.	
  	
  
Email	
  us	
  at	
  enquiries@chazeypartners.com	
  or	
  visit	
  our	
  website	
  at	
  www.chazeypartners.com	
  
More	
  Change	
  Management	
  Articles:	
  
TOOLKIT:	
  3	
  Key	
  Factors	
  to	
  Effective	
  Change	
  Management	
  in	
  Shared	
  Services
Change	
  is	
  a	
  constant	
  –	
  in	
  fact,	
  it's	
  often	
  a	
  simple	
  matter	
  of	
  survival.	
  But	
  the	
  best-­‐laid	
  
transition	
  plans	
  can	
  and	
  will	
  fail	
  if	
  you	
  overlook	
  the	
  "how"	
  and	
  the	
  "when".	
  Our	
  six-­‐step	
  
methodology	
  will	
  keep	
  you	
  on	
  track,	
  as	
  long	
  as	
  you	
  remember	
  three	
  key	
  factors.	
  
BLOG:	
  What	
  Business	
  Services	
  Leaders	
  Can	
  Learn	
  About	
  "Change"	
  from	
  Parenting	
  Guides	
  
Business	
  Services	
  is	
  a	
  bit	
  like	
  parenting	
  –	
  just	
  when	
  you	
  think	
  you	
  might	
  have	
  cracked	
  it,	
  a	
  
spanner	
  is	
  thrown	
  in	
  the	
  works.	
  David	
  tells	
  it	
  as	
  it	
  is.	
  
VIDEO:	
  7	
  Minutes	
  with	
  Chazey's	
  Change	
  Management	
  Expert	
  
Robert	
  Towle,	
  Managing	
  Director	
  of	
  Chazey	
  Partners	
  North	
  America	
  (East)	
  tells	
  us	
  why	
  
the	
  most	
  common	
  mistake	
  he	
  encounters	
  is	
  the	
  assumption	
  that	
  one	
  piece	
  of	
  
communication	
  will	
  get	
  "buy-­‐in";	
  and	
  reminds	
  us	
  that	
  "change	
  management"	
  is	
  not	
  the	
  
same	
  as	
  "eliminating	
  change".
10	
  
Chazey	
  Partners	
  Practitioners’	
  Corner	
  │	
  Change	
  Management	
  
For	
  more	
  articles	
  about	
  Shared	
  Services	
  &	
  Business	
  Transformation	
  
Please	
  visit	
  our	
  website	
  at	
  www.ChazeyPartners.com/Resources	
  or	
  subscribe	
  to	
  our	
  monthly	
  e-­‐
newsletters	
  for	
  the	
  latest	
  updates	
  
Meet	
  Our	
  Practitioners	
  
Phil	
  Searle	
  CEO	
  &	
  Founder	
  
Chazey	
  Partners	
  
+1	
  408	
  402	
  3008	
  
philsearle@chazeypartners.com	
  
Esteban	
  Carril	
  Managing	
  Director,	
  Latin	
  America	
  
Chazey	
  Partners	
  
+54	
  (911)	
  3085	
  5140	
  
estebancarril@chazeypartners.com	
  
Chas	
  Moore	
  Managing	
  Director,	
  North	
  America	
  (East)	
  
Chazey	
  Partners	
  
+1	
  855	
  692	
  6229	
  Ext	
  201	
  
chasmoore@chazeypartners.com	
  	
  
Robert	
  Towle	
  Managing	
  Director	
  North	
  America	
  (West)	
  
Chazey	
  Partners	
  
+1	
  862	
  812	
  7851	
  
roberttowle@chazeypartners.com	
  
David	
  O’Sullivan	
  Co-­‐Founder	
  &	
  Partner	
  
Chazey	
  Partners	
  
+353	
  (0)	
  86	
  384	
  8573	
  
davidosullivan@chazeypartners.com	
  
Emer	
  O’Kelly	
  Regional	
  Director	
  Europe	
  
Chazey	
  Partners	
  
+44	
  (0)	
  7703	
  647	
  360	
  
emerokelly@chazeypartners.com	
  
Christina	
  Exarchou	
  Head	
  of	
  HR	
  Practice	
  EMEA	
  
Chazey	
  Partners	
  
+30	
  6944	
  525622	
  
christinaexarchou@chazeypartners.com	
  
Anirvan	
  Sen	
  Managing	
  Director,	
  Asia,	
  Middle	
  East	
  and	
  Africa	
  
Chazey	
  Partners	
  
+31	
  649133170	
  /	
  +65	
  85143766	
  
anirvansen@chazeypartners.com	
  
Janey	
  Jux	
  Head	
  of	
  Public	
  Sector	
  Practice	
  EMEA	
  
Chazey	
  Partners	
  
+	
  44	
  (0)	
  800	
  6440649	
  
janeyjux@chazeypartners.com	
  
North America | Latin America | Europe | Middle East | Africa | Asia
Email: enquiries@chazeypartners.com | Web: www.chazeypartners.com
About Chazey Partners
Chazey Partners is a practitioners-led global management advisory business. We bring together a
unique wealth of experience empowering our clients to strive for world class excellence through
Business Transformation, Shared Services & Outsourcing, Technology Enablement, Process
Enhancement and Corporate Strategy Optimization. We pride ourselves in having built, operated
and turned around some of the world's most highly commended and ground breaking Shared
Services Organizations, and for implementing many highly successful multi-sourced (shared
services and outsourced) delivery solutions. Over the last 20 years, we have delivered numerous
programs globally, in the US, Canada, UK, Continental Europe, Ireland, India, Eastern Europe, South
America, Singapore, Australia, China, Middle-East and Africa. Our experience covers both Private
and Public Sectors, providing expertise in a wide spectrum of business functions, including
Finance, HR, IT and Procurement.
Learn more about, please visit our website www.chazeypartners.com
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Four Perspectives on Change Management

  • 1. Four Perspectives on Change Management July 2014 Emer O’Kelly, Regional Director Europe, Chazey Partners Ann-Marie Massenberg, Chief of Staff, Program Support Center, U.S. Department of Health & Human Services Kayzad Hiramanek, COO, Avantha ERGO Life Insurance Richard J. Rowan, Jr., Director, Global Shared Services, TRW Automotive
  • 2. Chazey  Partners  Practitioners’  Corner  │  Change  Management   INTRODUCTION   Why  do  projects  fail?  A  simple  enough  question.  If  you  analysed  a  hundred  answers,  you’d  find   the  common  denominator  to  be  “ill-­‐planned  and  ill-­‐implemented  change.”   But  despite  the  lip  service  given  to  change  management  as  a  “core  enabler”  of  project   implementations  like  Shared  Services,  the  evidence  supporting  its  deployment  is  still  weak.   We’ve  asked  some  of  Chazey’s  clients  and  fellow  practitioners,  all  of  whom  have  led,  and   continue  to  lead,  Shared  Services  implementations  or  transformations  and  who  have  first-­‐hand   experience  of  operating  at  the  frontline,  to  comment  on  key  mistakes  made  in  planning,  tips  on   managing  customer  resistance,  and  advice  on  how  to  get  it  right,  first  time.   THE  PITFALLS  OF  “CHANGE”   o Change  Management  is  all  too  frequently  underestimated  or  insufficiently  accounted for  in  corporate  transitions.  Why  is  this  important? o Failings  in  Change  Management  boil  down,  time  and  again,  to  overlooking  a  few  key stepping  stones.  What  are  the  most  common  mistakes? o Customer  resistance  is  one  of  the  biggest  obstacles  to  change.  How  can  you  work around  this  constructively? o What  are  3  core  factors  to  consider  that  ensure  Change  Management  supports  your objectives?
  • 3. 1   Chazey  Partners  Practitioners’  Corner  │  Change  Management   Change   Management   is   all   too   frequently   underestimated   or   insufficiently   accounted  for  in  corporate  transitions.  Why  is  this  important?     Emer  O’Kelly   Regional  Director  Europe   Chazey  Partners   Any  significant  change  to  a  business’s  operations,  including  a  transformation  of   its  support  services,  requires  a  clear  vision  and  strategy  in  order  to  have  a   fighting  chance  of  succeeding.  This  vision  needs  to  be  clearly  linked  to  the   challenges  facing  the  business,  make  realistic  allowance  for  the  circumstances   but,  above  all,  be  demonstrably  supported  by  the  key  leaders  in  the  business.   Actions  must  mirror  words  and  many  an  initiatives  has  been  “damned  by  faint   praise”  by  those  senior  people  in  the  company,  who  others  look  to  for   leadership,  and  have  faded  away  as  a  result.   Major  organisational  changes  require  business  leaders  to  show  their  mettle  and   this  includes  giving  true  commitment  and  guidance  which  others  can  focus  on,   follow  and  build  on  themselves.  This  applies  especially  to  a  transformation  or   migration  to  a  shared  services  structure,  where  there  is  a  natural  fall-­‐back   position  of  continuing  to  do  what  was  done  before,  regardless  of  what  is   happening  at  the  front-­‐end  of  the  business  in  terms  of  market  changes,  product   development  and  customer  expectations.   Transmitting  the  vision,  internally  and  externally,  is  critical  to  successful  change   and  under-­‐committing  to  communicating  this  can  slow  down,  or  even  de-­‐rail   success  of  an  otherwise  well  planned  initiatives.  The  ideal  is  to  build  a  guiding   coalition  of  people  who  are  evangelical  about  the  project  and  who  will  foster   emotional  engagement  and  ownership  of  the  solutions.     Ann-­‐Marie  Massenberg,  Chief  of  Staff,  Program  Support  Center   U.S.  Department  of  Health  &  Human  Services     SSO  implementations  by  their  nature  involve  a  certain  amount  of  angst  on  the   part  of  the  organization  that  is  transitioning  from  a  self-­‐serve  model  to  an   outsourced  model.  Typically,  there  tends  to  be  a  feeling  of  loss  of  control,   concern  about  responsiveness  and  quality,  and  a  general  sense  of  uncertainty.   Couple  that  with  the  mechanics  and  coordination  involved  in  shutting  down   one’s  own  operation  and  transitioning  that  to  a  shared  service  provider  (e.g.   transitioning  data,  performing  business  process  improvements,  and   configuration)  and  it  can  be  incredibly  overwhelming.  In  this  situation,  when   change  management  is  lacking,  the  impact  to  the  implementation  can  be  costly.   Without  change  management,  SSO  implementations  stand  the  risk  of  poor  
  • 4. 2   Chazey  Partners  Practitioners’  Corner  │  Change  Management   adoption  by  the  receiving  organization.  Stakeholders  who  are  confronted  with   change,  and  not  supported  with  a  comprehensive  change  management  strategy   that  includes  a  clear  vision  of  the  end  state,  informative  and  consistent   communications,  and  inclusive  involvement  in  the  change  activities,  are  more   likely  to  produce  undesired  results.  These  include,  delays,  errors  that  require   extensive  re-­‐work,  and  poor  morale.   Kayzad  Hiramanek,  COO   Avantha  ERGO  Life  Insurance   The  basic  human  nature  is  resistance  to  change.  Therefore  to  say  that  any  form   of  transition  or  change  will  cause  upheaval  within  and  outside  an  organization  is   stating  the  obvious.    The  most  common  issues  reported  in  poor  change   management  and  the  resultant  consequences  include  an  atmosphere  of   uncertainty,  talent  attrition,  staff  de-­‐  motivation,  inter  department  politicking   and  one-­‐upmanship.  All  new  initiatives  will  be  still  born  and  the  overall   organization  agenda  will  be  derailed  owing  to  poor  communication  from  the   management  on  the  intent  regarding  the  changes  to  follow.       Eventually,  people  like  working  in  a  stable  environment  where  changes,  if  any,   are  introduced  in  small  doses  and  keeping  all  affected  parties  informed  on  the   timelines  and  long  term  organization  goal  around  the  same.  The  moment  people   perceive  a  threat  to  their  jobs,  the  resultant  push  back  through  the  grape  vine   and  corridor  conversations  will  swiftly  obscure  the  real  motive  of  the  change.   Richard  J.  Rowan  Jr.,  Director,  Global  Shared  Services   TRW  Automotive     While  there  is  a  broad  and  growing  shared  services  and  business  services   presence  in  the  board  rooms  and  operations  of  companies  worldwide,  there   remains  -­‐  even  among  practitioners  -­‐  variation  in  the  definition,  scope  and   structure  of  shared  services.    In  light  of  that,  to  expect  a  targeted  area  of  a   business  to  understand  what  shared  services  or  business  services  is  with  little  to   no  introduction  and  no  listing  of  expected  benefits  to  both  the  target   area/function  and  the  broader  company  is  a  recipe  for:    at  best,  a  difficult   implementation  and  at  worst,  a  failed  shared  services  implementation.   Commitment/support  from  the  top  is  critical  but  paying  attention  to  all  levels  is   vital.  
  • 5. 3   Chazey  Partners  Practitioners’  Corner  │  Change  Management   Failings  in  Change  Management  boil  down,  time  and  again,  to  overlooking  a   few  key  stepping  stones.  What  are  the  most  common  mistakes?   Emer  O’Kelly,  Regional  Director  Europe   Chazey  Partners   “Too  little,  too  late  and  not  often  enough”  could  sum  up  the  challenges  to  avoid   in  achieving  effective  change  management  through  communication.   It  is  too  often  perceived  as  something  to  do  later,  or  to  be  done  by  someone   else.  To  be  effective,  there  needs  to  be  consistent,  regular,  clear  flow  of   communication  with  working  structure  to  allow  for  this  communication  to  be   genuinely  two-­‐way,  and  this  needs  to  commence  at  the  earliest  reasonable  time.   For  a  transformation,  this  is  likely  to  be  after  a  business  case  has  been   established  and  the  commitment  is  made  to  performing  a  transformation.  (There   is,  of  course,  communication  required  during  a  business  case  phase  but  this  does   tend  to  be  a  more  limited  audience).     The  communication  network  also  needs  to  cover  all  levels  which  need  to  be   aware  of  the  proposed  changes  and  their  impacts,  some  of  which  are  obvious   (e.g.  “what’s  in  it  for  me?”)  to  others  which  are  less  so  (e.g.  the  company’s  ability   to  attract  suitable  talent  through  its  reputation  in  the  market-­‐place).  This  calls   for  the  use  of  many  different  channels  of  communication  –  e.g.  town-­‐hall   meetings,  smaller  groups,  1-­‐to-­‐1’s,  breakfast  briefings,  walk-­‐abouts,  confirmed   be  email  as  appropriate  and  backed  up  by  project  web-­‐site    /  blog  /  FAQ’s.   Whatever  channel  or  timing  is  followed,  the  message  needs  to  be  consistent  and   regularly  reinforced,  and  presented  in  a  positive  light.   Ann-­‐Marie  Massenberg,  Chief  of  Staff,  Program  Support  Center   U.S.  Department  of  Health  &  Human  Services     I  think  that  change  management  is  frequently  confused  with  a  communication   plan.  Some  leaders  focus  on  providing  training,  and  executing  a  communication   plan.  Many  fail  to  see  that  the  most  important  element  of  change  management   is  that  those  affected  must  be  involved  in  the  change  rather  than  having  change   imposed  upon  them.  They  need  to  buy  in  to,  or  at  the  very  least  understand,  the   vision  and  the  end  state.  And  they  must  be  involved  in  all  aspects  of  the  change   in  order  to  enable  and  facilitate  the  change.    All  parties  involved  need  to   understand  the  reason(s)  for  the  change  and  have  a  chance  to  be  involved  in  the   decisions  of  how  the  change  will  be  managed,  planned,  and  implemented.  
  • 6. 4     Chazey  Partners  Practitioners’  Corner  │  Change  Management           Kayzad  Hiramanek,  COO   Avantha  ERGO  Life  Insurance       There  are  several  mistakes  leadership  can  make  in  this  area.  There  is  no  magic   formula  to  predict  whether  the  prescribed  change  will  actually  result  in   betterment  of  the  organization.  World  over,  we  have  seen  innumerable  take-­‐ overs,  mergers  and  transitions  fail  owing  to  the  lack  of  anticipation  of  forces  that   are  playing  in  the  background.         Some  of  the  common  reasons  for  such  failures  begin  at  the  thought  level:  is  this   change  really  required?  Is  the  organization  in  the  long  term  going  to  be  solely   focussed  on  its  core  competencies?  Is  the  leadership  team  sufficiently  convinced   that  this  decision  is  for  the  betterment  of  the  organization?  Can  our  customers   stand  by  us  through  this  journey  of  transition?  Do  the  laws  of  the  land  permit  me   to  make  such  a  transition?         Many  a  time,  if  the  key  leadership  is  not  convinced  of  the  decision,  they  play  a   vital  role  in  derailing  the  overall  change  and  its  implementation  schedule.  Even  if   key  leadership  is  convinced,  sometimes  a  synchronized  communication  strategy   is  essential  to  ensure  that  all  parts  of  the  organization  are  talking  the  same   language  to  the  affected  parties.  Not  speaking  in  one  voice  is  also  detrimental  to   the  overall  change  agenda.         In  addition,  not  identifying  key  resources  that  manage  large  customer   relationships  and  ensuring  their  retention  is  vital  to  ensure  that  the  internal   challenges  do  not  manifest  themselves  to  the  external  eco  system.         Richard  J.  Rowan,  Jr.,     Director,  Global  Shared  Services   TRW  Automotive       Change  management  is  often  perceived  as  a  nice  to  have  instead  of  the  critical   to  success  item.    As  such,  many  shared  services  implementations  spend  too  little   time  -­‐  at  all  levels,  especially  the  grass  roots  level  -­‐  working  to  understand  the   vantage  point  of  those  closest  to  the  targeted  work.    The  late  Stephen  R.  Covey   in  his  book  The  7  Habits  for  Highly  Effective  People  wrote  about  seeking  first  to   understand,  then  to  be  understood.    Taking  the  time  to  do  this  helps  build  the   relationship  and  ensure  that  you  understand  the  concerns  held  by  those   impacted  by  shared  services.    As  Covey  would  say,  being  efficient  with  people  is   not  effective.    Spend  the  time.          
  • 7. 5     Chazey  Partners  Practitioners’  Corner  │  Change  Management             Customer  resistance  is  one  of  the  biggest  obstacles  to  change.  How  can  you   work  around  this  constructively?   Emer  O’Kelly,  Regional  Director  Europe   Chazey  Partners     Maintaining  the  level  of  customer  service,  performance  and  accessibility  is  a   prerequisite  to  protect  the  business’  activity  as  it  goes  through  a  major  change   process.  This  extends  to  presenting  why  the  change  is  required  i.e.  to  further   strengthen  the  business  and  its  ability  to  continue  to  deliver  good  quality   products  and  services.     Customers  must  be  reassured  there  is  no  significant  risk  to  their  supply  and  that   the  elements  which  cause  them  to  trade  with  the  company  in  the  first  place  are   recognised  and  valued  by  the  business,  and  will  be  maintained  or  enhance  by  the   transformation.  Thus,  there  needs  to  be  a  flow  of  communication  to  customers   which  makes  them  aware  there  is  a  change,  why  and  what  impacts  are   envisaged.  This  may  extend  to  specific  briefings  with  key  customers,  depending   on  the  nature  of  the  business.     This  need  to  disseminate  information  also  extends  to  other  stakeholders  such  as   suppliers  and  others  who  may  potentially  be  affected,  including  banks  and   regulatory  bodies.  This  whole  process  can  be  categorised  as  listening  to  the   “voice  of  the  customer”,  finding  out  what’s  important  to  them  and  ensure  they   are  given  the  appropriate  degree  of  attention.         Ann-­‐Marie  Massenberg,  Chief  of  Staff,  Program  Support  Center   U.S.  Department  of  Health  &  Human  Services       Managing  a  customer’s  resistance  to  change  requires  understanding  the  reason   for  the  resistance.  In  some  cases,  it’s  fear  of  the  unknown.  In  others,  it’s  a  lack  of   confidence  that  a  provider  can  provide  the  level  of  service  that  the  organization   is  used  to.  We  engage  our  customers  right  away  and  involve  them  in  the   planning  and  implementation  at  all  stages  of  the  process.  We  establish  quick   wins  to  show  progress  and  gain  customer’s  confidence  in  our  abilities.  This  sets   the  tone  for  what  they  can  expect  as  we  progress  with  the  transition.  We  ensure   that  the  vision  and  end  state  is  clearly  and  thoroughly  communicated  to  all   affected  people  and  provide  multiple  opportunities  for  clarification  and   explanation  along  the  way.  
  • 8. 6   Chazey  Partners  Practitioners’  Corner  │  Change  Management   Kayzad  Hiramanek,  COO   Avantha  ERGO  Life  Insurance   While  the  real  challenge  in  the  management  of  change  is  internal,  it  eventually   manifests  itself  to  the  external  customer  if  key  stakeholders  decide  to  leave  the   organization  and  the  relationship  with  external  customers  thus  weakens.   Therefore,  identification  of  key  accounts  and  their  respective  relationship   managers  is  a  vital  activity  to  be  undertaken.  In  addition,  senior  leadership   should  take  charge  of  the  overall  organization  portfolio  and  build  one-­‐to-­‐one   relationships  with  the  decision  makers  in  these  key  accounts  to  mitigate  the   attrition  risk.       In  addition,  subtly  sounding  off  customers  of  the  impending  changes  within  the   organization  also  goes  a  long  way  in  building  a  relationship  of  trust  and  giving   the  customer  the  comfort  that  the  provider  is  taking  this  decision  for  the   betterment  of  all  parties  involved.  Nothing  could  be  worse  than  customers   finding  out  about  big  bang  changes  in  the  media  and  then  seeking  clarity  on   whether  the  existing  relationship  will  still  enjoy  the  same  level  of  priority  it  did.     Richard  J.  Rowan,  Jr.,    Director,  Global  Shared  Services   TRW  Automotive     Some  effort  should  be  extended  to  map  the  current  process.  Carefully  listen  to   issues  raised  as  well  as  spend  some  time  explaining  how  things  will  change.     Highlight  the  benefits  and  any  offsetting  detriments  from  the  new  process.     Stephen  R.  Covey’s  seek  first  to  understand,  then  to  be  understood  habit  is   extremely  beneficial.  This  is  truly  an  art.    If  too  much  time  or  attention  is  allotted   to  discussing  the  angst  of  change,  the  project  risks  being  thrown  off  schedule.     Alternatively,  if  not  enough  time  is  spent,  progress  on  the  project  will  likely  be   more  slow  and  painful.  
  • 9. 7   Chazey  Partners  Practitioners’  Corner  │  Change  Management   What  are  3  core  factors  to  consider  that  ensure  Change  Management  supports   your  objectives?   Emer  O’Kelly,  Regional  Director  Europe   Chazey  Partners   Identify  why  the  change  is  required  and  why  it  is  worth  doing,  then  create  a   coalition  of  people  to  guide  the  initiative,  and  promote  and  drive  the  change   message  consistently.  Positive  changes  must  be  led  and  sponsored  –  they  do  not   happen  themselves;  they  require  energy,  enthusiasm  and  passion.   (1)   Clear  vision  /  consistent  message     Identify  why  the  change  is  required  and  why  it  is  worth  doing,  then  create  a   coalition  of  people  to  guide  the  initiative,  and  promote  and  drive  the  change   message  consistently.  Positive  changes  must  be  led  and  sponsored  –  they  do  not   happen  themselves;  they  require  energy,  enthusiasm  and  passion.   (2)   Communication   Create  a  communication  plan  which  addresses  the  major  issues,  concerns  and   audiences,  which  also  allows  for  feed-­‐back,  queries  and  challenges.     Then  double  it.  J   (3)   Managing  Stakeholder  relationships   Ensure  that  all  significant  stakeholders,  internal  and  external,  are  addressed   regularly  in  such  a  way  as  to  minimize  the  number  of  surprises  experienced  by   anyone  with  an  interest  in  the  progress  of  the  initiative.     For  example,  there  should  be  no  cases  of  “I  didn’t  realize  that’s  what  it  meant”   or  “that  timescale  is  unrealistic”,  encountered  at  crucial  points,  often  later  in  the   project.  It  is  important  to  maintain  consistency  within  the  new  processes  as  far   as  possible  and  to  avoid  unnecessary  workarounds  arising  from  such  potential   misunderstandings.   Kayzad  Hiramanek,  COO   Avantha  ERGO  Life  Insurance   While  there  are  so  many  factors  that  influence  the  course  of  successful  change,   in  my  opinion  the  top  three  success  factors  would  be:     a) Clarity  in  leadership  thought  process  on  why  the  change  is  essential  and beneficial  for  the  future  course  of  the  company.  In  conjunction,  buy  in  of  all   senior  leadership  to  this  course  of  action  is  a  must.     b) Two  way  communication  with  the  employee  base  on  why  the  change/ transition  will  not  affect  people’s  jobs  at  least  for  the  initial  period.   Eventually,  every  transition  is  accompanied  by  some  amount  of  attrition.   The  key  is  to  keep  it  within  a  reasonable  limit  (globally  recorded  standards  
  • 10. 8   Chazey  Partners  Practitioners’  Corner  │  Change  Management   are  around  10-­‐15%).  Ability  to  accept  employee  feedback/  suggestions  and   a  visible  implementation  of  the  same  will  go  a  long  way  in  ensuring  that   people  to  not  sand  bag  the  initiative.       c) Management  of  the  eco  system  is  the  third  critical  element  in  this  piece.  No organization  wants  a  trial  by  the  media  or  its  retail  shareholders  regarding   its  motives.    In  addition,  foresight  in  managing  regulators  and  vendors  is  key   to  ensure  that  all  change  follows  legal  standards  with  regards  to  pending   payments  and  tax  laws.  Finally,  management  of  key  customer  relationships   should  be  thought  through  well  in  advance  to  ensure  survival  of  the   business  through-­‐out  the  critical  path  of  the  project   Ann-­‐Marie  Massenberg,  Chief  of  Staff,  Program  Support  Center   U.S.  Department  of  Health  &  Human  Services     1) Clear  Vision  –  there  must  be  a  clear  end  state  that  must  be  explained 2) Involvement  –  of  all  the  people  affected  by  the  changes  in  the    planning and  execution  of  the  changes 3) Communication  –  consistent,  accurate,  and  thorough  communications  to all  affected  people Richard  J.  Rowan,  Jr.,  Director,  Global  Shared  Services   TRW  Automotive     (1)   Change  leader,  change  thyself  -­‐  I  recently  read  a  McKinsey  &  Company   article  entitled,  Change  Leader,  change  thyself.    I  think  it  is  very   important  that  as  we  ask  people  to  look  at  a  process  and  change,  we  at   the  same  time  look  at  our  proposed  processes  and  remain  open  to   finding  an  even  better  way  to  forward  –  change  leader,  change  thyself.     Being  candid  about  this  item  with  your  customers/impacted  parties  will   build  credibility.   (2)   Follow  The  7  Habits  of  Highly  Effective  People,  especially  habit  four   through  six:   • Seek  first  to  understand,  then  to  be  understood. • Think  win-­‐win. • Synergize (3)   Communicate,  communicate,  communicate  –  remembering  all  aspects  of the  communication  process:  sender,  receiver,  feedback  and  “noise”. And,  don’t  forget  that  listening  is  a  part  of  communication.
  • 11. 9   Chazey  Partners  Practitioners’  Corner  │  Change  Management   CONCLUSION   Change  Management  is  crucial  to  leading  a  project  to  success  –  whether  this  is  a  Shared  Services   implementation,  a  subsequent  process  improvement  or  transformation  initiative,  or  an   expansion  of  scope  of  service.  Every  shift  from  “business  as  usual”  should  be  preceded  by  a   change  management  plan.   If  you  would  like  to  discuss  your  existing  change  management  framework,  or  take  a  first  step   towards  embedding  solid  change  management  processes  in  your  operations,  our  practitioners   would  be  pleased  to  guide  you  through  this.     Email  us  at  enquiries@chazeypartners.com  or  visit  our  website  at  www.chazeypartners.com   More  Change  Management  Articles:   TOOLKIT:  3  Key  Factors  to  Effective  Change  Management  in  Shared  Services Change  is  a  constant  –  in  fact,  it's  often  a  simple  matter  of  survival.  But  the  best-­‐laid   transition  plans  can  and  will  fail  if  you  overlook  the  "how"  and  the  "when".  Our  six-­‐step   methodology  will  keep  you  on  track,  as  long  as  you  remember  three  key  factors.   BLOG:  What  Business  Services  Leaders  Can  Learn  About  "Change"  from  Parenting  Guides   Business  Services  is  a  bit  like  parenting  –  just  when  you  think  you  might  have  cracked  it,  a   spanner  is  thrown  in  the  works.  David  tells  it  as  it  is.   VIDEO:  7  Minutes  with  Chazey's  Change  Management  Expert   Robert  Towle,  Managing  Director  of  Chazey  Partners  North  America  (East)  tells  us  why   the  most  common  mistake  he  encounters  is  the  assumption  that  one  piece  of   communication  will  get  "buy-­‐in";  and  reminds  us  that  "change  management"  is  not  the   same  as  "eliminating  change".
  • 12. 10   Chazey  Partners  Practitioners’  Corner  │  Change  Management   For  more  articles  about  Shared  Services  &  Business  Transformation   Please  visit  our  website  at  www.ChazeyPartners.com/Resources  or  subscribe  to  our  monthly  e-­‐ newsletters  for  the  latest  updates   Meet  Our  Practitioners   Phil  Searle  CEO  &  Founder   Chazey  Partners   +1  408  402  3008   philsearle@chazeypartners.com   Esteban  Carril  Managing  Director,  Latin  America   Chazey  Partners   +54  (911)  3085  5140   estebancarril@chazeypartners.com   Chas  Moore  Managing  Director,  North  America  (East)   Chazey  Partners   +1  855  692  6229  Ext  201   chasmoore@chazeypartners.com     Robert  Towle  Managing  Director  North  America  (West)   Chazey  Partners   +1  862  812  7851   roberttowle@chazeypartners.com   David  O’Sullivan  Co-­‐Founder  &  Partner   Chazey  Partners   +353  (0)  86  384  8573   davidosullivan@chazeypartners.com   Emer  O’Kelly  Regional  Director  Europe   Chazey  Partners   +44  (0)  7703  647  360   emerokelly@chazeypartners.com   Christina  Exarchou  Head  of  HR  Practice  EMEA   Chazey  Partners   +30  6944  525622   christinaexarchou@chazeypartners.com   Anirvan  Sen  Managing  Director,  Asia,  Middle  East  and  Africa   Chazey  Partners   +31  649133170  /  +65  85143766   anirvansen@chazeypartners.com   Janey  Jux  Head  of  Public  Sector  Practice  EMEA   Chazey  Partners   +  44  (0)  800  6440649   janeyjux@chazeypartners.com  
  • 13. North America | Latin America | Europe | Middle East | Africa | Asia Email: enquiries@chazeypartners.com | Web: www.chazeypartners.com About Chazey Partners Chazey Partners is a practitioners-led global management advisory business. We bring together a unique wealth of experience empowering our clients to strive for world class excellence through Business Transformation, Shared Services & Outsourcing, Technology Enablement, Process Enhancement and Corporate Strategy Optimization. We pride ourselves in having built, operated and turned around some of the world's most highly commended and ground breaking Shared Services Organizations, and for implementing many highly successful multi-sourced (shared services and outsourced) delivery solutions. Over the last 20 years, we have delivered numerous programs globally, in the US, Canada, UK, Continental Europe, Ireland, India, Eastern Europe, South America, Singapore, Australia, China, Middle-East and Africa. Our experience covers both Private and Public Sectors, providing expertise in a wide spectrum of business functions, including Finance, HR, IT and Procurement. Learn more about, please visit our website www.chazeypartners.com Follow us on LinkedIn, Twitter and Facebook