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Change Management Models And Best Practices

RASHMI RANJAN BEHERA U109082

Contents
Contents.................................................................................................................................. 2 1.0 Introduction....................................................................................................................... 3 2.0 Roles And Responsibilities................................................................................................. 3 3.0 Change Process Models..................................................................................................... 5 3.1 Kurt Lewin Model............................................................................................................ 5 3.2 Bullock And Batten's Phases Of Planned Change............................................................6 3.3 Kotlers Eight Step Change Model................................................................................... 6 3.4 Burke-Litwin Change Model............................................................................................ 7 3.5 ADKAR Model.................................................................................................................. 8 3.6 McKinsey 7 S Model........................................................................................................ 9 4.0 Change Management Tools............................................................................................... 9 5.0 Continuous Process Improvement................................................................................... 10 6.0 Conclusion....................................................................................................................... 12 7.0 Critical Analysis................................................................................................................ 12 References............................................................................................................................. 13

1.0 Introduction
Change management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment. Organizational change provides the opportunity for organizations to build more focused, disciplined, and mature businesses. This opportunity comes with significant financial risk if changes are not planned and managed proactively. Change management is primarily concerned with how to understand, engage, respond, and communicate with people. A solid vision, senior management sponsorship, and having the right people in the right roles, are the key success factors for implementing a successful change management campaign. There are four key types of organizational change: 1. Process Change: These focus on how workflows are managed with an effort to streamline business processes to increase efficiencies, reduce costs, and improve quality. 2. Structural Change: these focus on changing organizational structures such as reporting relationships, mergers & acquisitions, and centralization initiatives. Normally, these changes are top-down and geared to improve the overall financial performance of a business. 3. Cost Containment: these changes are focused on eliminating any costs that are not essential for operation. Typically, cost containment initiatives are the result of a tight economy for a particular industry or poor sales results. 4. Cultural Change: as organizations move from a product-centric business to a customer-centric enterprise, changes to organizational norms and attitudes must be made.

2.0 Roles And Responsibilities


There are four major roles involved with the change management process, each with separate and distinct responsibilities. In the order of their involvement in a normal change, the roles are: Change initiator Change manager Change advisory board Change implementation team (operations)

2.1.1 Change Initiator The change initiator is the person who initially perceives the need for the change and develops, plans, and executes the steps necessary to meet the initial requirements for a Request for Change (RFC). Some examples of change initiators are: A product manager in a line of business desiring a new or changed feature on an application

A network architect replacing obsolete network hardware with newer-generation hardware with improved functionality A network engineer upgrading the capacity of a device or link to handle increased traffic 2.1.2 Change Manager Larger organizations require a dedicated change manager who is responsible for the following: Updating and communicating change procedures Leading a team to review and accept completed change requests with a focus on higher risk changes Managing and conducting periodic change review meetings Compiling and archiving change requests Change communication and notification Managing change post mortems Creating and compiling change management metrics 2.1.3 Change Advisory Board The change advisory board (CAB) is a body that exists to support the authorization of changes and to assist change management in the assessment and prioritization of changes. When a CAB is convened, members should be chosen who are capable of ensuring that all changes within the scope of the CAB are adequately assessed from both a business and a technical viewpoint. The CAB needs to include people with a clear understanding across the whole range of stakeholder needs. The change manager will normally chair the CAB. Typically, there are standing members on the CAB, and the change manager will recruit others as needed in order to ensure stakeholder representation. Potential members include: Customers, User managers, User group representatives, Applications developers/maintainers, Specialists/technical consultants, Services and operations staff, such as service desk, tests management, continuity management, security, and capacity, Facilities/office services staff (where changes may affect moves/accommodation and vice versa), Contractors or third parties representatives. It is important to emphasize that the CAB includes representation from all stakeholder groups and: Will be composed according to the changes being considered May vary considerably in makeup even across the range of a single meeting Is likely to include the problem manager and service-level manager and customer relations staff for at least part of the time When the need for emergency change arises, such as when there may not be time to convene the full CAB, it is necessary to identify a smaller organization with authority to make emergency decisions. This body is the emergency change advisory board (ECAB).

3.0 Change Process Models


Organizations will find it helpful to predefine change process models and apply them to appropriate changes when they occur. Such a model provides the framework for defining the steps needed to handle changes consistently and effectively. The change process model includes: The steps that should be taken to handle the change, including handling issues The chronological order in which these steps should be taken Responsibilities; who should do what Timescales and thresholds for completion of the actions Escalation procedures; who should be contacted and when Approval authority Quality or performance measures and objectives

These models are usually input to the change management support tools in use and the tools then automate the handling, management, reporting, and escalation of the process. Change models may include: Normal change, significant (high-risk) change, Major change, Minor change, Standard (pre-approved) change, Expedited (short-interval) change and Emergency change 3.1 Kurt Lewin Model Lewin proposed a three stage theory of change commonly referred to as Unfreeze, Change, and Freeze. Stage 1: Unfreezing The Unfreezing is about getting ready to change. It involves getting to a point of understanding that change is necessary. This first stage is about preparing ourselves, or others, before the change (and ideally creating a situation in which we want the change). The more we feel that change is necessary, the more urgent it is, the more motivated we are to make the change. .Stage 2: Change - or Transition Kurt Lewin was aware that change is not an event, but rather a process. He called that process a transition. Transition is the inner movement or journey we make in reaction to a change. This second stage occurs as we make the changes that are needed. This is not an easy time as people are learning about the changes and need to be given time to understand and work with them. Support is really important here and can be in the form of training, coaching, and expecting mistakes as part of the process. Using role models and allowing people to develop their own solutions also help to make the changes. It's also really useful to keep communicating a clear picture of the desired change and the benefits to people so they don't lose sight of where they are heading. Stage 3: Freezing (or Refreezing)

This stage is about establishing stability once the changes have been made. The changes are accepted and become the new norm. People form new relationships and become comfortable with their routines. This can take time. Advantages: It is a simple and easily understood model for change; the model is done through steps. 3.2 Bullock And Batten's Phases Of Planned Change R.J. Bullock and D. Batten derived their ideas from project management and they recommend using exploration, planning, action, and integration for planned change. Exploration occurs when managers confirm the need for change and secure resources needed for it. These resources may be physical or they may be mental, such as managers' expertise. The next step, planning, occurs when key decision makers and experts create a change plan that they then review and approve. Next, action occurs with enactment of the plan. There should be opportunities for feedback during the action phase. Finally, integration begins when all actions in the change plan have taken place. Integration occurs when the changes have been aligned with the organization and there is some degree of formalization, such as through policies and procedures in the organization. 3.3 Kotlers Eight Step Change Model Step One: Create Urgency Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. Identify potential threats, and develop scenarios showing what could happen in the future. Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking. Also, request support from customers, outside stakeholders and industry people to strengthen your argument. Step Two: Form a Powerful Coalition Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough - you have to lead it. Identify the true leaders in your organization and ask for an emotional commitment from these key people. Check your team for weak areas, and ensure that you have a good mix of people from different departments and different levels within your company. Step Three: Create a Vision for Change Determine the values that are central to the change. Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization. Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five minutes or less. Practice your "vision speech" often. Step Four: Communicate the Vision What you do with your vision after you create it will determine your success. Talk often about your change vision. Openly and honestly address peoples' concerns and anxieties. Apply your vision to all aspects of operations - from training to performance reviews. Tie everything back to the vision. Lead by example. Step Five: Remove Obstacles

Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. Step Six: Create Short-term Wins Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress. Step Seven: Build on the Change Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change. Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Each success provides an opportunity to build on what went right and identify what you can improve. Step Eight: Anchor the Changes in Corporate Culture Finally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started. Advantages: It is that this is a step by step model, which is easy to follow. Another is that it does not focus on the change itself, but rather the acceptance and preparedness for this change, which makes it an easier transition. 3.4 Burke-Litwin Change Model This change model is based on assessing the organizational as well as environmental factors which can be tweaked so as to ensure a successful change. The Burke-Litwin change model begins with outlining a framework, comprising the affecting factors which can be manipulated to guarantee a smoother transition from one phase of the change process to another. The most critical aspect here is establishing the links between the twelve dimensions (external environment, mission and strategy, leadership, organisational culture, structure, systems, management practices, work climate, tasks and skills, individual skills, motivational level, individual and overall performance) of this change framework. The Basic Philosophy of Burke and Litwin Change Model Here are some of the key points of this change model: 1. The most dominant factor that triggers organizational change is the external environment which that makes an organization to change its mission, culture, leadership and its operating strategies. 2. The changes in the 12 key dimensions bring about a series of changes in the structure, practices and the system of the organization. 3. All the affecting factors put together affect the motivation level of the individuals in an organization, which in turn impacts the overall performance.

4. The 12 key dimensions of the change model interact with and affect each other. And understanding the linkage between these supportive pillars is the key to effective and smoother change. Advantages: External environment is major factor. It is based on hierarchy and casualty between elements. It distinguishes variables that influence organisational climate and organisational culture. 3.5 ADKAR Model The ADKAR model consists of five sequential steps or actions: 1. Awareness of the need for change. Understanding why change is necessary is the first key aspect of successful change. This step explains the reasoning and thought that underlies a required change. Planned communication is essential. 2. Desire to participate in and support the change. In this step the individual is able to reach a point where they make a personal decision to support the change and participate in the change. 3. Knowledge on how to change. Providing knowledge about the change can be achieved through normal training and education methods. Other methods of transferring knowledge, such as coaching, forums and mentoring, are equally useful. Two types of knowledge need to be addressed: knowledge on how to change (what to do during the transition) and knowledge on how to perform once the change is implemented. 4. Ability to implement required skills and behaviours. In the ADKAR model Ability is the difference between theory and practice. Once knowledge on how to change is in place (theory) the practice, or actual performance of the individual, needs to be supported. This can take some time and can be achieved through practice, coaching and feedback. 5. Reinforcement to sustain the change. This final stage of the model is an essential component in which efforts to sustain the change are emphasised. Ensuring that changes stay in place and that individuals do not revert to old ways can be achieved through positive feedback, rewards, recognition, measuring performance and taking corrective actions. Advantages: It directs change management activities. It's focused on outcomes, not tasks to be performed. Communication strategies can be focused. The ADKAR model helps to measure the effectiveness of the change process. Progress can be measured down to the individual level, gaps diagnosed, and corrective action is directed. Managers have a tool they can use. Each part of the model gives managers a specific role This change management model can be used for both project and non-project change, and is effective as a model of individual change outside of the organisational setting as well.

3.6 McKinsey 7 S Model The 7-S Framework considers organisations to be made up of several inter-connecting systems and that all these should be considered and planned for during a change. Attention must be paid to all systems or factors but the relative importance of each can vary, depending on the circumstances and the phases of the change. 1. The Decision Making Phase This is when the organisation is deciding whether the change is necessary and right one? Some factors take on more special importance in this phase: Staff, Style, Shared values, Strategy. Staff: Wherever possible and feasible, opinions should be gathered from all levels of staff. Whether this is done formally (through staff surveys etc) or informally will depend on many factors. Style: Does the proposed change match with the management style and culture of the organisation? If the answer is yes, then while this aspect should be monitored, it should not present much of a problem. Sometimes a change is necessary for organisational survival even if this is contrary to the management style and culture. 2. The Planning Phase During the planning phase, all 7 factors should be analysed and the eventual plan should address each one. All projects should, at the very least, have a formal stakeholder analysis and a communications plan. Both must consider internal and external stakeholders. If the decision phase revealed significant Change Management challenges, then the plan should include real and concrete deliverables to address these issues. Some examples would be: Creation of materials to explain the new model, culture or vision. Opportunities for senior management to visibly sponsor the change and demonstrate it through role modelling. Time and opportunity for staff at all levels to learn about and work through the proposed changes. The use of pilot groups. 3. The Implementation or Execution Phase This is the easiest to explain and the hardest to do: Follow the plan Monitor progress Deal with the issues Be prepared to change the plan If the change is complex, it will not be possible to plan it in every detail. This is especially true when the change affects the more emotional factors (such as Shared Values). While change is often a continuous process, at some stage senior management will require a formal review. This will not be a trivial exercise, although regular temperature readings throughout the implementation phase will benefit here. Advantages: It is an effective way to diagnose and understand the organization; it is a guide for organizational change; it is a combination of both rational and emotional constituents; and all parts are interrelated, so all portions must be addressed and focused on. 4.0 Change Management Tools A change ticketing tool will help ensure that:

All of the requirements for a proposed change are collected and available for evaluating risk The change is scheduled for implementation Status updates are communicated to stakeholders Users can generate change reports that can be used to govern the change process itself and provide change management with actionable feedback on change activity.

5.0 Continuous Process Improvement 5.1 Process Improvement Program In order to continuously assess and improve the change management process, a process improvement program (PIP) must be implemented. This program must be formal, Documented, Continuous and periodic (various activities may have different intervals) and Used by management for key business decisions The goal of the PIP is to achieve the following critical success factors (CSFs): A repeatable process for making changes Make changes quickly and accurately (driven by business needs) Protect services when making changes Deliver process efficiency and effectiveness benefits

The main activities of the PIP are: (a) Process measurement (b) Process reporting (c) Process assessment (d) Process improvement 5.2 Key Performance Indicators and Measurements Change management must ensure that measures have specific meaning. Measures taken should be linked to business goals wherever practicaland also to cost, service availability, and reliability. Any predictions should be compared with actual measurements. Meaningful measurements provide management with actionable feedback those results in timely and accurate decision-making. 5.2.1 Examples of Measures Some examples of the types of measures used within organizations are listed here. Most of the listed measures can be usefully broken down by category, organizational division, geography, supplier, etc. 5.2.2 Operational Metrics Number of disruptions, incidents, problems/errors caused by unsuccessful changes and releases Incomplete impact assessment Percentage reduction in time, effort, cost to make changes and releases (for example, by service, change type, asset type) Service or application rework caused by inadequate change specification

Percentage improvement in predictions for time, quality, cost, risk, resource, and commercial impact Percentage improvement in impact analysis and scheduling of changes safely, efficiently, and effectively reduces the risk of changes affecting the live environment

5.2.3 Process Measures Peoples satisfaction with the speed, clarity, and ease of use Number and percentage of changes that follow formal change management procedures Ratio of planned versus unplanned changes (urgent, emergency) Ratio of accepted to rejected change requests Number of changes recorded and tracked using automated tools Cost against budget

5.2.4 Example KPIs The following KPIs can be used to measure the performance of the change management process. Change efficiency rate Change success rate Emergency change rate Change reschedule rate Average process time per change (days) Unauthorized change rate Change incident rate Change labor workforce utilization Change management tooling support level Change management process maturity

5.2.5 Summarizing Measures The metrics above can be rolled up in key performance indicators (KPIs) and critical success factors (CSFs). The KPIs and CSFs can then be reported to management via the dashboard or balanced scorecard. For instance the KPI change success rate can be computed as: Number of failed changes / Total changes implemented.

6.0 Conclusion Change management is one of the most important service management processes. Any organizationno matter its sizewill experience a large volume of changes in order to accommodate new business requirements, to correct faults in the infrastructure or the services, or for other reasons (such as legal requirements). All changes have a disruptive potential for the business, hence controlling the release of changes is critical. Change management is even more effective in reducing service disruptions in concert with other service management processes, in particular configuration management, release management, problem management, and incident management. 7.0 Critical Analysis Change can be a time of exciting opportunity for some and a time of loss, disruption or threat for others. How such responses to change are managed can be the difference between surviving and thriving in a work or business environment. Change is an inherent characteristic of any organisation and like it or not, all organisations whether in the public or private sector must change to remain relevant. Change can originate from external sources through technological advances, social, political or economic pressures, or it can come from inside the organisation as a management response to a range of issues such as changing client needs, costs or a human resource or a performance issue. It can affect one small area or the entire organisation. Nevertheless, all change whether from internal or external sources, large or small, involves adopting new mindsets, processes, policies, practices and behaviour. Irrespective of the way the change originates, change management is the process of taking a planned and structured approach to help align an organisation with the change. In its most simple and effective form, change management involves working with an organisations stakeholder groups to help them understand what the change means for them, helping them make and sustain the transition and working to overcome any challenges involved. From a management perspective it involves the organisational and behavioural adjustments that need to be made to accommodate and sustain change. There are numerous models and theories about change management, and it is a topic subject to more than its fair share of management fads and fashions. Popular approaches include the linear, step by step methods exemplified by Kurt Lewins1 classic threephase model of change -- unfreeze, move or change, and refreeze, John Kotters 8 step change model, the McKinseys 7-S model, and the ADKAR model. Other approaches such as Rosabeth Moss Kanters theories and change theories based on derivatives of the Kbler-Ross model focus on the cultural and people aspects of change. Each approach has its pros and cons; however no one framework is "best" in all situations. Indeed it is not so much the actual model or theory that is important, but more that the approach that is taken is relevant to the circumstances. In fact the best change approaches appear to use and adapt aspects of various models to suit the culture of the organisation and the context of the change. Fundamentally, the basic goal of all change management is to secure buy-in to the change, and to align individual behaviour and skills with the change. Best practices in Change Management include: 1. Establish the Need for Change build momentum and urgency for the change by examining market conditions and competitive forces. Identify risks, potential crises, and opportunities for adapting the organization to the situation

2. Work from a Steering Committee create a cross-functional steering committee that has the power to invoke the changes that need to be made. This inter-departmental team must quickly gel and check their egos at the door. 3. Develop a Vision & Strategy use a project plan to articulate how the change will be managed. Communicate the vision of the goal-state, and devise strategies to accomplish the desired outcomes and objectives. 4. Reinforce the Change Vision use all channels to communicate the vision. Create signs, slogans, and team charters. Communicate updates on your intranet, via email, and during staff meetings on a regular basis. 5. Empower your Employees clear any obstacles to achieving the vision; change structures or systems that obstruct the required change; encourage risk-taking and non-traditional ideas, activities, and actions. 6. Generate Short-Term Wins plan and monitor visible improvements in performance (.wins.). When small achievements are made, recognize your employees in front of their colleagues and peers. 7. Consolidate Gains & Produce More Change use increased credibility from short-term wins to change all systems, policies, and structures that dont fit with the transformational vision. Hire, promote, and develop people who are agents of positive change. 8. Anchor New Approaches in the Culture improve performance by adopting a more customer-centric, and productivity-oriented behaviour. Articulate connections between new behaviours and organizational success. Develop effective leadership and succession processes.

References 1. Websites http://ezinearticles.com/?ADKAR-Change-Model---An-Evaluation-of-Its-Strengths-andWeaknesses&id=3164961 http://www.12manage.com/methods_burke_litwin_model.html http://www.evancarmichael.com/Marketing/5604/Change-Management-Best-Practices.html

http://www.businessballs.com/sevenhabitsstevencovey.htm http://www.12manage.com/methods_7S.html http://www.dcsf.gov.uk/everychildmatters/strategy/deliveringservices/servicedirectories/models/ch angemanagementmodels/ http://www.referenceforbusiness.com/management/Pr-Sa/Reactive-vs-Proactive-Change.html www.change-management.com

2. Reports / White papers

Lick, Reopoldi, ITSM Change Management Best Practices, 2002 Baekdal Thomas et al, Change Management Handbook,2006 Randy A. Steinberg: Measuring ITIL, Trafford Publishing, Jan. 2001, ISBN 978-1412093927 http://www.cisco.com/en/US/technologies/collateral/tk869/tk769/white_paper_c11-458050.html