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Seminar report

On

Change Management
Submitted in partial fulfillment of the requirement for the award of degree
Of MBA

SUBMITTED TO: SUBMITTED BY:

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Acknowledgement
I would like to thank respected Mr…….. and Mr. ……..for giving me such a wonderful
opportunity to expand my knowledge for my own branch and giving me guidelines to present a
seminar report. It helped me a lot to realize of what we study for.

Secondly, I would like to thank my parents who patiently helped me as i went through my work
and helped to modify and eliminate some of the irrelevant or un-necessary stuffs.

Thirdly, I would like to thank my friends who helped me to make my work more organized and
well-stacked till the end.

Next, I would thank Microsoft for developing such a wonderful tool like MS Word. It helped
my work a lot to remain error-free.

Last but clearly not the least, I would thank The Almighty for giving me strength to complete
my report on time.
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Preface

I have made this report file on the topic Change Management; I have tried my best to elucidate
all the relevant detail to the topic to be included in the report. While in the beginning I have tried
to give a general view about this topic.

My efforts and wholehearted co-corporation of each and everyone has ended on a successful
note. I express my sincere gratitude to …………..who assisting me throughout the preparation
of this topic. I thank him for providing me the reinforcement, confidence and most importantly
the track for the topic whenever I needed it.
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Content

 Introduction
 Readiness assessments
 Communication and communication planning
 Change Management trends

 Eight-Step Change Management Process

 Change management theories

 Principles of Change Management

 Benefits of change management

 Overcoming the common change management challenges facing the insurance industry

 Common Factors to Successful Change Management

 Conclusion
 References
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INTRODUCTION

Change management is an IT service management discipline. The objective of change

management in this context is to ensure that standardized methods and procedures are used for
efficient and prompt handling of all changes to control IT infrastructure, in order to minimize the
number and impact of any related incidents upon service.

Changes in the IT infrastructure may arise reactively in response to problems or externally

imposed requirements, e.g. legislative changes, or proactively from seeking improved efficiency
and effectiveness or to enable or reflect business initiatives, or from programs, projects or service
improvement initiatives.

Change Management can ensure standardized methods, processes and procedures which are used
for all changes, facilitate efficient and prompt handling of all changes, and maintain the proper
balance between the need for change and the potential detrimental impact of changes.
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Readiness assessments

Assessments are tools used by a change management team or project leader to assess the
organization's readiness to change. Readiness assessments can include organizational
assessments, culture and history assessments, employee assessments, sponsor assessments and
change assessments. Each tool provides the project team with insights into the challenges and
opportunities they may face during the change process.
• Assess the scope of the change, including: How big is this change? How many people are
affected? Is it a gradual or radical change?
• Assess the readiness of the organization impacted by the change, including: What is the value-
system and background of the impacted groups? How much change is already going on? What
type of resistance can be expected?
• Assess the strengths of your change management team.
• Assess the change sponsors and take the first steps to enable them to effectively lead the change
process.
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Communication and communication planning

Many managers assume that if they communicate clearly with their employees, their job is done.
However, there are many reasons why employees may not hear or understand what their
managers are saying the first time around. In fact, you may have heard that messages need to be
repeated 6 to 7 times before they are cemented into the minds of employees. That is because each
employee’s readiness to hear depends on many factors. Effective communicators carefully
consider three components: the audience, what is said and when it is said.
For example, the first step in managing change is building awareness around the need for change
and creating a desire among employees. Therefore, initial communications are typically designed
to create awareness around the business reasons for change and the risk of not changing.
Likewise, at each step in the process, communications should be designed to share the right
messages at the right time.
Communication planning, therefore, begins with a careful analysis of the audiences, key
messages and the timing for those messages. The change management team or project leaders
must design a communication plan that addresses the needs of front-line employees, supervisors
and executives. Each audience has particular needs for information based on their role in the
implementation of the change.

Coaching and manager training for change management

Supervisors will play a key role in managing change. Ultimately, the direct supervisor has more
influence over an employee’s motivation to change than any other person at work.
Unfortunately, supervisors as a group can be the most difficult to convince of the need for
change and can be a source of resistance. It is vital for the change management team and
executive sponsors to gain the support of supervisors and to build change leadership. Individual
change management activities should be used to help these supervisors through the change
process.
Once managers and supervisors are on board, the change management team must prepare a
coaching strategy. They will need to provide training for supervisors including how to use
individual change management tools with their employees.
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Change Management trends

1. The awareness of the need and value of Change Management is increasing at all levels of
organizations
2. Organizations continue to devote more resources and positions to Change Management –
36% of the 2012 Best Practices in Change Management respondents indicated that their
organization has created an office or a functional group around the discipline of Change
Management
3. Change Management activities are being introduced earlier and more often into Project
Management programs
4. Demand is growing for building internal Change Management competencies versus
relying on outside consulting
5. There is a greater demand for Change Management training and certification within
organizations
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Eight-Step Change Management Process

Step 1: Urgency Creation

A change is only successful if the whole company really wants it. If you are planning to make a
change, then you need to make others want it. You can create urgency around what you want to
change and create hype.

This will make your idea well received when you start your initiative. Use statistics and visual
presentations to convey why the change should take place and how the company and employees
can be at advantage.

Step 2: Build a Team

If your convincing is strong, you will win a lot of people in favour of change. You can now build
a team to carry out the change from the people, who support you. Since changing is your idea,
make sure you lead the team.

Organize your team structure and assign responsibilities to the team members. Make them feel
that they are important within the team.

Step 3: Create a Vision

When a change takes place, having a vision is a must. The vision makes everything clear to
everyone. When you have a clear vision, your team members know why they are working on the
change initiative and rest of the staff know why your team is doing the change.

If you are facing difficulties coming up with a vision, read chapter one (Mission and Values) of
WINNING, by Jack Welch.

Step 4: Communication of Vision

Deriving the vision is not just enough for you to implement the change. You need to
communicate your vision across the company.

This communication should take place frequently and at important forums. Get the influential
people in the company to endorse your effort. Use every chance to communicate your vision; this
could be a board meeting or just talking over the lunch.

Step 5: Removing Obstacles

No change takes place without obstacles. Once you communicate your vision, you will only be
able to get the support of a fraction of the staff. Always, there are people, who resist the change.
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Sometimes, there are processes and procedures that resist the change too! Always watch out for
obstacles and remove them as soon as they appear. This will increase the morale of your team as
well the rest of the staff.

Step 6: Go for Quick Wins

Quick wins are the best way to keep the momentum going. By quick wins, your team will have a
great satisfaction and the company will immediately see the advantages of your change initiative.

Every now and then, produce a quick win for different stakeholders, who get affected by the
change process. But always remember to keep the eye on the long-term goals as well.

Step 7: Let the Change Mature

Many change initiatives fail due to early declaration of victory. If you haven't implemented the
change 100% by the time you declare the victory, people will be dissatisfied when they see the
gaps.

Therefore, complete the change process 100% and let it be there for sometime. Let it have its
own time to get integrated to the people's lives and organizational processes before you say it
'over.'

Step 8: Integrate the Change

Use mechanisms to integrate the change into people's daily life and corporate culture. Have a
continuous monitoring mechanism in place in order to monitor whether every aspect of the
change taking place in the organization. When you see noncompliance, act immediately.
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Change management theories

 Effective communication
Communication is a key component in the success of any change initiative
 Change management plan
A change management plan that defines the vision and scope of the change must be
developed and followed. In its simplest form, a change plan answers three questions:
1. Where are we now?
2. Where are we going?
3. How do we get there?
 Acknowledgment of those affected
The experience and emotions of the people who will implement and live with the change
must be addressed. Being uncomfortable with change can influence people to resist and
oppose it. When you are about to launch any new practice or system it is important to
understand how people are feeling about the change and provide support to help them
accept and support it.
 Strong leadership
Change should be led by a person or team who are passionate, visible and committed to
the effort. Good leaders are skilled at managing the activities and mechanisms for
planning and monitoring change and are able to create and sustain a sense of purpose.
 Resources
Resources are clearly identified and made available
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Principles of Change Management

1. Address the “human side” systematically. “Transformation causes “people issues”……A
formal approach for managing change — beginning with the leadership team and then engaging
key stakeholders and leaders — should be developed early, and adapted often as change moves
through the organization. This demands as much data collection and analysis, planning, and
implementation discipline as does a redesign of strategy, systems, or processes.”

2. Start at the top. “Leaders themselves must embrace the new approaches first, both to
challenge and to motivate the rest of the institution. They must speak with one voice and model
the desired behaviors. The executive team also needs to understand that, although its public face
may be one of unity, it, too, is composed of individuals who are going through stressful times
and need to be supported.”

3. Involve every layer. “As transformation programs progress from defining strategy and setting
targets to design and implementation, they affect different levels of the organization.”

4. Make the case. “confront reality and articulate a convincing need for change…. demonstrate
faith that the company has a viable future and the leadership to get there. Finally, provide a road
map to guide behavior and decision making”

5. Create ownership. “Ownership is often best created by involving people in identifying

problems and crafting solutions. It is reinforced by incentives and rewards.”

6. Communicate the message. “The best change programs reinforce core messages through
regular, timely advice that is both inspirational and practicable. Communications flow in from
the bottom and out from the top, and are targeted to provide employees the right information at
the right time and to solicit their input and feedback. Often this will require overcommunication
through multiple, redundant channels.”

7. Assess the cultural landscape. “Thorough cultural diagnostics can assess organizational
readiness to change, bring major problems to the surface, identify conflicts, and define factors
that can recognize and influence sources of leadership and resistance. These diagnostics identify
the core values, beliefs, behaviors, and perceptions that must be taken into account for successful
change to occur. They serve as the common baseline for designing essential change elements,
such as the new corporate vision, and building the infrastructure and programs needed to drive
change.”

8. Address culture explicitly. “Company culture is an amalgam of shared history, explicit

values and beliefs, and common attitudes and behaviors. Change programs can involve creating a
culture (in new companies or those built through multiple acquisitions), combining cultures (in
mergers or acquisitions of large companies), or reinforcing cultures (in, say, long-established
consumer goods or manufacturing companies)”
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9. Prepare for the unexpected. “Effectively managing change requires continual reassessment
of its impact and the organization’s willingness and ability to adopt the next wave of
transformation.”

10. Speak to the individual. “Individuals (or teams of individuals) need to know how their
work will change, what is expected of them during and after the change program, how they will
be measured, and what success or failure will mean for them and those around them. ”
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Benefits of change management

These three articles form the basis of our assumptions on the best way to manage change. Click
on the links above to read more but, here in summary are main benefits of change management.

Managing change:

1. Puts you in a better position to be ready for change.

2. Develops better understanding of the kind of change required – understanding that
different characteristics of change need different approaches.
3. Helps you implement a process to navigate the required change.
4. Brings clarity to why change is necessary and what it will achieve.
5. Builds commitment to work together, to bring people with you.
6. Can help with appreciating what is currently done well, so that the future is built on
strengths which currently exist within the organisation.
7. Shapes change through principles which establish how you manage change – the
principles upon which change is shaped.
8. Delivers change that results in real improvements – all improvement involves change, but
not all change brings improvement.
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Overcoming the common change management challenges facing the

insurance industry
Change is becoming a way of life across the industry. Even very traditional sectors can no longer
afford to stay still. The stimuli are both internal and external. Regulatory changes such as
Solvency II, industry wide initiatives such as the London Market Reforms, competitive pressures
and individual organisation's own strategic agendas means almost every firm has a long list of
changes to implement.

Clearly these changes have a significant effect on your organisation's structures and ways of
doing things. However, and importantly, this in turn also impacts your people on a personal
level. Often, this impact is underestimated and history is littered with examples where 'managed'
change fails to deliver the promised benefits because people at the coal face have not been
sufficiently engaged with the future vision.

Getting the people element right is critical to successfully delivering effective change, but how is
this done in practice? We explore this tricky topic by looking at answers to four common change
management questions.

1. The change is imposed from outside so how do we ensure that people still feel part of the
decision and solution?

Just because the change is imposed does not mean people shouldn't be engaged with it. The more
impacted stakeholders are involved and buy-in to the change the easier it will be to implement
and achieve benefits.

Key recommendations

 Make a compelling case for change. This is about communicating why the change needs
to happen and making it 'real' for individuals. In this case it is vital to explain the
consequences of not changing. Don't assume that everyone fully understands the
implications.
 Look for additional direct and indirect benefits of making a change. For example, it may
be possible to link a regulatory change with other changes in the organisation. Bundling
can introduce new synergies.
 Make the communications personal. For example if one stakeholder group just needs to
be aware of the change then explain it at a high level and link to more information if the
audience wants it. Alternatively, if another group require more detailed information make
sure they receive it.

2. The stakeholders are at different level of acceptance so how do we craft common

communications?
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Stakeholder management does not necessarily mean that every stakeholder should be fully
engaged and positive towards the programme. 'Stakeholder mapping' is a great tool for helping to
design your communications to best effect according to the needs of each group.

Key recommendations

 Develop a common vision at a sufficient level for all stakeholders. The vision helps set
priorities and describes what the organisation will look like once the change has been
implemented. Crafting the vision should include representatives from all groups that have
an investment in the outcome, increasing the chances of universal buy-in.
 Understand where each stakeholder group currently is and where they need to be. In this
situation, knowledge is definitely power. Once you gain a good understanding of your
stakeholders (Are they an advocate, ambivalent or a detractor? Are they predictable or
unpredictable) this will help to inform what you need to do and who you need to focus
on. There are many tools to help you understand stakeholder groups, one of the most
common being an 'impact/influence' matrix.

3. There is already a lot of change going on in the organisation so how do we prevent this
becoming the 'straw that broke the camel's back'?

In almost all cases change is a must, but for those impacted, it can feel like one change too many.
Be realistic about how much change parts of your organisation can cope with. The more positive
benefits associated with the change, the more people will be willing to deal with.

Key recommendations

 Look at all the changes happening within the organisation and prioritise against benefit
and strategic importance. The two key limiting factors will be the capability of the
organisation to manage change and the capacity of the organisation to make change.
 Break down the changes required and integrate them into existing programmes. Altering
the scope of existing programmes to get a mutually exclusive set of initiatives can help
reduce the perceived volume of change.
 Demonstrating immediate benefits of changes will encourage people to support more
change. Rapid delivery of small but meaningful 'quick wins' early in the programme will
send out powerful messages to the organisation.

4. I recognise change management is important but how do I build this into my existing
programme structure?

Change management should be a key part of any programme structure. To help co-ordinate the
change and communication effort, dedicated resources can be useful. However, the real value
comes from when change management considerations are in-built in all programme management
roles.

Key recommendations
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 Include all change and communication activities within the programme implementation
plan. For example, when an implementation milestone is put in the programme plan, it
should also include communication activities prior to the roll-out and change
interventions during the roll-out to encourage uptake.
 Use specialists in change and communications. This may not need to be external
resources, utilise the expertise in HR and Internal Communications teams.
 Your programme leadership team should have specific roles and responsibilities relating
to change management which they are wholly committed to. For example, providing
content for key messages and role modelling the desired behaviours.
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Common Factors to Successful Change Management

 Planning

Develop and document the objectives that need to be achieved with the change and the means to
achieve it.

 Defined Governance

Establish appropriate organizational structures, roles and responsibilities for the change that
engage stakeholders and support the change effort.

 Committed Leadership

Ongoing commitment at the top and across the organization to guide organizational behavior.

 Informed Stakeholders

Encourage stakeholder participation and commitment to the change by employ open and
consultative communication approaches that will create awareness and understanding of the
change throughout the organization.

 Aligned Workforce

Identify the human impacts of the change and develop plans to align the workforce in order to
support the changing organization. The extent to which each of these five factors is exhibited in
successful change projects will vary depending on the nature of the change involved.
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Conclusion
In the constantly changing corporate world, the one who welcomes the changes stays ahead of
the competition.

If you are not much comfortable with changes happening around you, reserve some of your time
to read 'Who Moved My Cheese?' by Dr. Spencer Johnson.

This will tell you the whole story about why the change is required and how you can make use of
the change to excel in what you do.
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References
 www.google.com
 www.wikipedia.com
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