Page 1

Why Change Management?

hange is inevitable. Everyday improvement initiatives and projects are started with the best of intentions for a positive outcome. Yet, less than acceptable results are often achieved with the inability for benefits to make it down to the bottom line.

C

A key factor effecting results is managing change. Change management is often an after-thought or addressed ad hoc. Why? Organizations focus on the physical side of change, the more obvious, process and project management, and neglect the change itself. Change management lives, and can be found, in the soft side of business, specifically in the individual behavior of people and their interactions. It is difficult to define, quantify, and is extremely elusive. Tefen has concluded, through its research, that over 65% of projects undertaken by organizations are less than successful due to this phenomenon. A recent article in Pharmaceutical Technology stated, “It has been reported that 50% of change programs [sic] fail to deliver and/or sustain benefits, attributed directly to problems in implementation.”1 Tefen further clarified that the root causes for these failures are attributed to the following four conditions: Resistance to change (31%) Ineffective communications (21%) Poorly defined goals (8%) People’s current perception (6%) Therefore, 66% of issues manifested during organizational change can be addressed through effective change management intervention.

TEFEN USA, LTD th 3 Park Avenue • 20 Floor • New York, NY 10016 Tel: 212-317-9600 • Fax: 212-317-0604 • www.tefen.com


The key to successful change is addressing people’s behavior to that change. To drastically increase levels of success, organizations must develop a sound adoption strategy, homogenize change management into the organizational infrastructure, and follow a structured change management process. Why an Adoption Process? Adoption deals with the behavior of people. Never underestimate the power of people’s comfort level in the current state. To understand resistance to change, let’s examine the adoption process. Association: Individuals have heard about the change Awareness: Individuals are aware of the basic scope of change Appreciation: Individuals understand the impact to their functional area Acceptance: Individuals understand the impact and benefit to them Adoption: Individuals are willing to work with and implement change Advocate: Individuals make changes on their own and creates innovative ways to improve. The rate at which people move through these steps is a function of their individual willingness to recognize, understand and commit to change. Why Structure Change Management? Once the strategy to adopt change is defined, one must focus on structuring the management of change. Managing change increases the speed of adoption, effectively utilizes the change, and develops proficiency of people to support the future state. Most people perceive change from their formal organizational structure, i.e. the chain of command. However, day-to-day operations occur on the softer side of the organization, the organization’s infrastructure. Infrastructure circulates around people’s current understanding of expectations and the way things are done. This people interaction is typically an informal system, built to fill the gaps of the formal organizational structure. This informal system is characterized by implied ownership, individual interpretations, ad hoc decision making, undefined accountability, variable discipline, and others. Why? The infrastructure lacks appropriate structure, so ad hoc change alters circumstances, sometimes on a daily basis. People move to protect their position because of the unknown. There are five soft-side considerations to manage. Two of which specifically emphasize the people and their behavior: Organizational governance which addresses people’s desire to understand the organization’s need, vision, and means for change, measureable goals, accountability, and discipline (persistence, not punishment). Culture management, the behavior. This plans actionable steps based on the adoption strategy discussed above to overcome resistance to change, down to the individual if necessary, and develops performance incentives to encourage the adoption of change.

TEFEN USA, LTD th 3 Park Avenue • 20 Floor • New York, NY 10016 Tel: 212-317-9600 • Fax: 212-317-0604 • www.tefen.com


The remaining three soft-sided considerations, address the efficacy, conflict, and variability associated with change: First of these is leadership, the committee that manages change effectiveness by keeping the organization’s perception on target through program management, decision making, and effective communications. Second is risk management, the largest potential to cause change failure and most often overlooked. Risk management reigns in conflict that inevitably arises during the course of change, identifies critical change risks, develops mitigation, redirects conflict resolution, and plans decision escalation early in the change cycle. Third is sustainability which directs the transition from current-state to future-state, builds resource proficiency, and monitors change until the change is well grounded and becomes interstitial in the organization this becomes the new “current-state”. Effective change management structures and integrates the softer critical elements of the infrastructure into the physical side of the organization. It ensures that change is more manageable and predictable. A balanced focus on the process, the project, and the change infrastructure ensures effective adoption of change, therefore sustainability. Change Management and Incident Reduction The effectiveness of any change management system is found in the organizations ability to reduce quality failures, FDA warnings, and or product escapes. Many improvement initiatives often leave out how to sustain the change once it is in place. Why? We treat the change as mature even though it’s not. Keep in mind that change is incremental, the management of the change must be timely to effectively step through adoption until the new change is mature. Tefen has developed an integrated model, a methodology that links the soft people-adoption process and organizational change management aspects with the hard process improvement and project management aspects. For each of the model elements described above, Tefen’s change management structure utilizes pre-defined tools, templates, and stake-holder training that is principle based, but specifically modified to fit the needs of the organization. Tefen’s approach anticipates the conditions of transition in the organization and builds each of the change management actions into the project work plan for timely execution. Some of these tools may include for example: Modeling the organization infrastructure Adoption planning Resistance mitigation Communications flow Communications plan Risk failure modes analysis Information-confirming process Conflict resolution and escalation plan

TEFEN USA, LTD th 3 Park Avenue • 20 Floor • New York, NY 10016 Tel: 212-317-9600 • Fax: 212-317-0604 • www.tefen.com


Decision making plan Meeting charters Sustaining audit plan CAPA system

An example of the methodology used to integrate Change Management with a major process change is depicted below.

To Summarize It is critical that an organization achieve at least a change adoption level of “acceptance” to have any chance of success… reach the level of “adoption” to complete implementation; and achieve an “advocate” level to sustain and continuously improve the organization. What is the adoption level in your organization? How effective is your organizational change management approach? Tefen though its expert practitioners, optimized tool set, along with developed techniques and proven methodology can insure that your organization can not only increase the velocity of change but can “hang on” and sustain the gains.

TEFEN USA, LTD th 3 Park Avenue • 20 Floor • New York, NY 10016 Tel: 212-317-9600 • Fax: 212-317-0604 • www.tefen.com


TEFEN USA, LTD th 3 Park Avenue • 20 Floor • New York, NY 10016 Tel: 212-317-9600 • Fax: 212-317-0604 • www.tefen.com


TEFEN USA, LTD th 3 Park Avenue • 20 Floor • New York, NY 10016 Tel: 212-317-9600 • Fax: 212-317-0604 • www.tefen.com

Tefen USA's Change Management White Paper  

Everyday improvement initiatives and projects are started with the best of intentions for a positive outcome. Yet, less than acceptable resu...

Read more
Read more
Similar to
Popular now
Just for you