USAID LIBERIA Governance Economic Management Support GEMS Project

USAID/LIBERIA Governance & Economic Management Support (GEMS) Project 2012 INTEGRATED CHANGE MANAGEMENT Page 0

What is Change Management? Change Management is a systematic process of ensuring that people are prepared for and committed to the changes that the project involves This results in: • Ownership of, and commitment to change; • Sustained and measurable business benefits; and , • Improved capability to manage future change. Deliver Business Benefits Bigger Faster Surer Sustained Page 1

Project Phased Approach - Revisited The performance improvement initiative utilizes an approach encompassing four distinct phases: Assess Design Implement Sustain Fast Track / Quick Hit Opportunities Benefits, Project and Integrated Change Management Communication and Training Page 2

Integrated Change Management Approach WHAT IT IS: Implementation of new processes and systems will place tremendous demands on the organization/ institution and its myriad operating units. Effective Change Management will be critical to the success of the project, as, ultimately, success depends upon the people who will be working in the new environment and their ready adaptation to and full utilization of the capabilities from the new processes and systems. Successfully managing these complex organizational changes requires a comprehensive approach across the project lifecycle. WHY IT IS: A framework of tools and techniques that enable projects, people and organizational change methods to be aligned with the phases of the project lifecycle - ensuring an integrated change program Page 3

Integrated Change Management Program Components 1 2 3 4 5 6 7 Process Change Readiness Stakeholder Management Communications Organizational Alignment Knowledge Sharing & Training Team Building & Effectiveness Benefits Realization & Performance Measurement Page 4

Stakeholder Management The approach drives true stakeholder ownership in the development, implementation, and communication of the solution. Formal steps are incorporated throughout the duration of the project to actively engage people at all levels of the institution to build commitment. The more stakeholders are involved in defining the current and future states of the institution, the higher the quality of the work products and the greater the staffs’ level of buy-in to the program. Some of the key components of the Stakeholder Management approach include: q Identifying and segmenting stakeholders; q Developing stakeholder maps for sponsors, managers, and staff to understand current and desired profiles and to identify their critical opportunities; q Creating intervention and relationship interface protocols; q Developing and implementing Stakeholder involvement plans; q Partnering team members with key stakeholders to manage key stakeholder relationships. Page 5

Communications Management The underlying philosophy of a communication strategy is that people will be less resistant to change if they have a consistent understanding of institution-wide objectives and results. Throughout all phases of the project, the communications plan should address: q q q What is happening; Why it is happening; When it is going to happen; What to expect; How the changes are relevant to the various stakeholders; How stakeholders will be supported during and after the changes. The strategy will identify the key groups to be targeted for communications and determine the best methods that should be used to deliver messages to each targeted audience group. Page 6

Organizational/Institutional Alignment The Change Management approach includes a significant component designed to align the institution with the new processes and systems. Key elements of the organization alignment process include: q Understand “As-is” structure, activities, and skills; q Drive the appropriate “To-be” organizational and functional structures to fit the new process design; q Analyze the gap between the “As-is” and “To-be” structures, roles, and activities; q Restructure roles and responsibilities to ensure alignment to the new standardized processes and systems; q Develop appropriate skills and competency models for the “To-be” roles. Page 7

Knowledge Sharing (KS): 2 Key Activities Develop the Knowledge Sharing Plan. The approach includes elements such as: q Identifying skills to be shared to institution’s team members; q Conducting knowledge assessments; q Setting target levels for skills at the end of the project; q Setting formal knowledge sharing activities that will occur throughout the project and determining how progress will be monitored and tracked; q Reviewing and finalizing the knowledge sharing plan with project sponsors, managers, and team members. Implement the Knowledge Sharing Plan. Throughout the project, knowledge sharing activities should be conducted. This KS typically is carried out through a variety of media, including formal project team training classes, one-on-one coaching, lunch-and-learn sessions, workshops, and phase kick-off sessions. Evaluate the Knowledge Sharing Plan. Track the effectiveness of the KS plan throughout the project by measuring the progress of the institution team members. Team member measurements may include: q % of time spent acquiring knowledge and sharing learning, and, q progress made on attainment of target learning levels. Page 8

Knowledge Sharing (KS) Continued It is critical to note that Knowledge Sharing integrates with Education and Training, as the Knowledge Sharing strategy is built on a stepped approach, starting from the core project team extending toward the eventual institution’s members and staff. The illustration below depicts a system/application implementation, which could be applied to process redesign where training on new process and procedures are warranted: Project Team Train the Trainers • Business process and system expertise • System technical skills • Tools and methodology • Project and Change Management Super Users • Delivery Skills • • Course specific business process and system expertise End-Users Business area processes and system expertise • Job role focused business process, skills and knowledge Support Tools • Self Sufficiency • Operational Effectiveness Page 9

Benefits Realization & Performance Management Normally, the Change Management approach to Benefits Realization fully incorporates Six Sigma principles and Process Excellence tools, so that project benefits are identified, prioritized, measured, delivered, and sustained. Key elements of the Benefits Realization approach are to: q Develop the Business Case; q Obtain the Voice of the Customer (VOC); q Transform VOC into critical customer requirements (CCR); q Develop a structure to identify and measure benefits and Key Performance Indicators (KPIs)/Intermediate Results (IRs) for each requirement; q Identify benefit owners (at Institution/within Function) to drive the benefits realization plan. Page 10

Integrated Change Management Approach: Key Activities Change Process Stakeholder Management Assess Design Implement Sustain §Assess change §Conduct Change §Document §Structure a plan for history & readiness for each institution §ID & categorize key stakeholders §Start the stakeholder engagement process Readiness workshops with institutions §Ensure management commitment to the vision & change effort transition change readiness issues and risks §Continue to manage stakeholders & coach change leaders stakeholder commitment to continuous improvement §Engage SMPs and §Audit §Execute ongoing Communications §Develop initial communication plan functional/ communication plan communication Management and strategy §Prepare communication tools / templates §Develop communication matrix §Determine all effective vehicles to deploy operational business experts §Communicate the vision of designed state activities and refine plan §Audit communications effectiveness Page 11

Integrated Change Management Approach: Key Activities Change Process Assess Design Implement Sustain Organizational Alignment §Understand §Envision change §Prepare for §Implement new business / §organizational structures §Establish org design baseline using key design principles organization & business impact §Define & design org. structure (To. Be) transition strategy development organization, and performance measures §Assess postimplementation results Knowledge Sharing (KS) §Plan for project §Create project team training §Plan for teambuilding workshops team learning and training plan §Conduct team training §Execute KS plan §Execute transition §Monitor and review monitoring and Benefits Realization (BR) §Determine & §Identify and secure §Define the understand benefits ownership opportunities: §Develop BR action business case plan §Confirm business case benefits based on correct assumptions teams' effectiveness organization performance measurement framework §Update benefits case support §Evaluate KS process effectiveness §Track metrics §Track organization and team performance measures §Recognize and reward benefits achievements Page 12

CHANGE VISIONING Page 13

Creating a good Change Vision q Create a compelling need for change : § Identify the change drivers behind the project/initiative; § Outline the benefits to the organization and the individual(s) implementing the change ; q Define clearly the Current (As-Is) and Desired (Future/To-Be) states; q Clarify the path between the current and desired states; q Describe the behavior change required to achieve the vision. Page 14

Identify the ‘change drivers’ behind the initiative The change is needed because of … Increased Expectations of Customers q. Real-time information q. Technology options (e. g. Internet) q. Reduce cycle time (time to complete activity or set of activities) Funding Pressure on Costs/Expenditures q. Accurate information – no guessing or “massaging” q. Timely information for better decisionmaking Fast Changing Business Context q. Flexibility to realign institutions q. Single source of data for inter and intra-institutional needs equally q. Supports rapid deployment of new/changing services Page 15

Example “What are the benefits of this initiative to the institution/function as a whole as well as internal staff? ” To the institution as a whole To staff members and/or end users 4 Contains/reduces costs, 4 Enables data to be entered increases service levels and speed of response 4 Ensures business continuity 4 Streamlines functional processes in some areas ONCE 4 Ensures data is accurate and New Process/ System current 4 Provides valued new skills 4 Reduces data reconciliation 4 Avoids cost of replacing 4 Improves the range and visibility 4 Removes duplication of 4 Allows faster response to 4 Facilitates Group wide 4 Removes frustrations and adds some existing systems administration functions information integration of analysis internal/external inquiries interest to jobs Page 16

Example: Defining a vision for a change initiative and key differences between the current and desired state Current State Desired State Processes § Non-standardized processes § Fragmented, multiple hand-offs Culture § Silo mentality § Risk averse § Slow decision-making his t s doe t? § Hierarchical structures hat sen Structure § Primarily functionally focused e, W epre c r sen § Fragmented between areas es state n IInformation § Multitude of separate legacy systems t ren § Generally slow and outdated Technology cur Location § Distributed between many locations Customers § Large number of customer groups Staff § Narrowly defined roles § Undefined roles § Low skill levels Processes § Standardized best practice Culture § Customer focus § Sensible risk taking § Responsive Structure § Primarily process focused § One centralized unit § Flat structure Information Technology • One system for whole business • GOL compliant Location § One single location Customers • Key customer groups Staff § Multi-skilled § Clear roles and directives § High skill levels processes Page 17

Things to consider when creating a Change Vision for your project q What is the compelling need for change? (link it to the organization's past and present; tell the story) q What is the exciting idea for change? q What skills, behaviors, and values will be important? Which must change? q What will it mean to people? How will the lives of those I must convince change? Do: § Ensure the integration of project changes with other related changes and the rest of the business; § Build interim stages on the road to the vision. Don’t : § Underestimate complexity of the vision; § Focus on total solution rather than parts. Page 18

CHANGE VISIONING EXERCISE Page 19

Exercise: Create a compelling change vision for your component of the GEMS initiative. A. Consider what will change as a result of the initiative and by when (final Change Vision)? B. Define: What is the compelling reason for pursuing the initiative and its objectives and what is its link to the various GOL policies and development strategies. C. Identify which current skills, behaviors, and values must change to achieve the benefits. D. Identify what it will mean to the people involved ? Ask, “How will their lives change? ” E. Identify what it will mean to you? What do you stand to lose and to gain professionally from this initiative? Personally? Take 15 Minutes; Work in Teams; Present Page 20

CHANGE READINESS Page 21

Change Readiness Background Given the organizational complexity of the scope of this project (multiple institutions, many organizational models and reporting structures, more than one location, internal cultures, etc. ) it is clear that change cannot be driven in a top-down fashion. While a change readiness assessment will pinpoint and analyze the particular concerns of each entity, at a macro level, concerns going into this effort are likely to be: 1. Authority and responsibility to achieve this change is not clear 2. Change is not readily accepted and/or has not been successful in the past in some of the impacted institutions and areas 3. How to counteract perceptions that the institutional or functional vision being articulated may clash with the cultures, values, and/or “the way we’ve always done things. ” Page 22

Change Readiness This approach can be used to drive the strategy of each element of the Change Management plan, so that we: q Identify Change Readiness baseline and factors to be measured & monitored; q Determine the appropriate influence and intervention strategies for each institution; q Determine the strategies and approaches that will drive a successful implementation at each institution; q Understand what “success” looks like (and measure it) for each institution. IMPORTANT: Ask the question, “What will success look like? ” Page 23

CHANGE READINESS ASSESSMENT Purpose The Tool is designed to help clarify the change issues associated with a particular change project. It takes a forward look at issues as distinct from the Change History Assessment which examines past change projects. How do I use it? You can use the assessment at the beginning of a project /initiative and later to gather data from those leading and managing the change project and from those impacted by change, which may be useful: § At the start of a major change effort; § At the start of a significant phase in a major change effort; and, § At any time when the change effort or a change team seems "stuck. ” The tool has also been used successfully as part of the change management training for a project to build an understanding of the change issues faced by a particular team, possibly together with a Change History Assessment. Page 24

Change Readiness Assessment Tool Question Number Vision 1 2 Leadership 3 4 5 6 Commitment 7 8 9 10 11 12 13 Sustain 14 15 16 Configure 17 18 Manage 19 20 21 22 23 Topic Compelling Need Clear Operational vision clear Share vision Demonstrate commitment Create sense of urgency Trust each other People expect change to succeed People will learn new ways People can be constructively critical Managers have change skills Little attitude / behavior shift needed No change losers Middle manangers commitment built Processes don't block change Processes being changed as needed Sufficient cross-functional cooperation Chosen approach will work Interest sustained Authority / responsibility clear Managers disciplined Change kept on track Decision making not slowing change Problems solved quickly Score Survey Example Qs: 1. Is there is a clear and compelling need for this change? Untrue True 1 2 3 4 5 6 7 8 9 10 2. It is clear what this change will mean in practice? Untrue True 1 2 3 4 5 6 7 8 9 10 3. Is there a shared/common vision of this change? Untrue True 1 2 3 4 5 6 7 8 9 10 4. Are members demonstrating their personal resolve for change through their actions? Untrue True 1 2 3 4 5 6 7 8 9 10 5. Are they creating a sense of urgency to change in the organization? Untrue True 1 2 3 4 5 6 7 8 9 10 6. Does the team understand, trust, and respect each other? Untrue True 1 2 3 4 5 6 7 8 9 10 Page 25

Change Risk Management Plan Using the results and key findings from a Change Readiness Workshop, in conjunction with lessons learned from past projects, the following is a high level plan to address and mitigate the risks associated with potentially major obstacles to progress. Following the initiation of a project, recommended actions should be developed in further detail and appropriately scheduled within project methodology stage/phase: Risk Factor Recommended Action Responsible Party Timeframe Page 26

USAID/LIBERIA Governance & Economic Management Support (GEMS) Project 2012 INTEGRATED CHANGE MANAGEMENT Page 27