Change Management

Organizational Change Management & Business Process Improvement by Joe Rothman

The world doesn't fear a new idea, what it fears is a new experience. - Anonymous

Numerous studies have shown that many strategic changes fail to be implemented on time and within budget. For example, 50 – 75% of all implementations of integrative technologies or methodologies, e.g., CRM, Business Process Improvement, Lean Manufacturing, etc., fail to achieve the financial results which justified their investment.

Many organizations now believe that the ability to react quickly to change is critical to their survival. Yet, the inability to implement these changes, whether through cancelled projects, or projects that are late, over budget, or miss critical business requirements hinder the organization’s ability to keep pace with its competitors. The implications of these issues go beyond the obvious short-term, direct results of wasting resources and not achieving stated goals. As a result of these implementation problems, the organization may miss key financial or market targets which reduce its ability to invest further. Additionally, internal confidence and morale can weaken. Both of these lead to future difficulties in implementation.

At the same time, the pace of change is increasing. The technology landscape is evolving at an ever-increasing rate, with security, compliance, CRM and accommodation of mobile devices all being in the forefront in 2006. In addition to pure technology advances, organizations continue to reorganize and focus on improved or new business processes for greater efficiencies and effectiveness in a changing marketplace.

All of these projects share a common underpinning as involving changes in process, technology and people. A large number of research projects that have studied project success and failure come to the conclusion that the issue is usually not with the technology, methodology, etc. Rather, the direct cause for “failure” in many cases is the lack of planning for the human and organizational response to change.

The probability of successful implementation can be accomplished by utilizing a structured approach to the human and organizational aspects of change coordinated with the standard project plan. These structured approaches to change incorporate the same degree of attention and discipline which is currently employed with the technical aspects of these projects.

In many cases, the change management strategy that accompanies a business process improvement project is focused almost entirely on development of new documentation of procedures and training of personnel on the new process(es). While these components are of considerable importance, there are other key factors that should be addressed, including the following:


Sponsorship – Sponsorship is management’s visible and consistent commitment to the project. Many projects have encountered difficulty when management has not been aware that their role is central to convincing the organization that the project is key to the organization’s achievement of critical business objectives. Because sponsors are typically involved with many simultaneous initiatives, as well as their day-to-day operational responsibilities, it is common for sponsors to help kick-off a project, and then expect it to proceed smoothly without additional effort on their part. Good sponsorship, however, is exemplified by constant appropriate communication throughout the organization on the criticality of the project. Additionally, good sponsors ensure that their management team is all committed to the project, and that all required resources (people, time, money) are made available when the project requires them.

Change Agent / Project Manager – The past few years have seen an increasing appreciation of the role of the project manager, as evidenced by the creation of the Project Management Book of Knowledge and the certification of the Project Management Professional. One of the many roles that a Project Manager must handle is that of the Change Agent, the person responsible for ensuring that the people component of the project is identified and managed as part of the project plan.

Culture – For organizations with strong cultures, any change that runs counter to that culture will have additional barriers to success. A key component of any change program is an assessment of cultural barriers to success; if these are significant, it may be worthwhile to determine how to reduce the conflicts. If this is not possible, it may be necessary to address the cultural issues prior to undertaking the project.

Resistance – It is often difficult to accept that resistance to change is natural and inevitable. The most effective strategies attempt to understand the potential sources of resistance, create opportunities for people to voice their concerns, and effectively (and honestly) address these issues.

Perhaps the most critical lesson, however, is that change management is not an “add-on” or separate activity from the rest of the Business Process Improvement initiative. For greatest effectiveness, Change Management should be an integrated part of the project team, and the change management activities must be incorporated into the main project plan for execution and monitoring.

Knowledge Era Enterprises

Knowledge Era Enterprises by Daniel Burrus ©2004 - 2006 All Rights Reserved

Over the next 15 years, organizations worldwide will create new economic value by converting information into knowledge, sharing that knowledge internally to increase its value, and then selling it in non-competing industries to a global client base. Organizations will want their intellectual property (IP) formalized, captured, and leveraged to produce assets of a higher value. This shift in focus is already spawning a fast growing new industry that helps organizations do just that. Businesses of all sizes and from all industry segments will use Internet-based technology to leverage the talents, knowledge and wisdom of employees in new and exciting ways to create high margin products and services in this decade and beyond.

Three components are necessary to begin the process leveraging and profiting from IP:

Everyone in the organization must see the tremendous opportunity and added value in going beyond the current activity of converting data into information, to higher levels of value by creating and delivering knowledge and wisdom, which clients can quickly act upon.

Everyone in the organization must see that its technology infrastructure and organization are the keys to unlock the vast wealth the Knowledge Era has to offer, both for the organization and its clients.

Everyone in the organization must see the importance of his or her own participation as essential to building a strong foundation for the enhancement, sharing and delivery of knowledge.

Technology is no longer a barrier to creating a Knowledge Era enterprise. The key is to see the tremendous opportunity that exists right now, and take action.

written by Daniel Burrus
http://www.burrus.com/blog.html

From the Impossible to the Possible

From the Impossible to the Possible by Daniel Burrus ©2004 - 2006 All Rights Reserved

A reporter was writing a story on my career as a technology forecaster and business strategist, and asked me why I have been so excited about technology all of these years. I explained to her that technology allows us to turn the impossible into the possible. Most of the things you and I do on a daily basis were, at one time, impossible. For early man, sitting in a chair was impossible; they would have to find a rock or a stump if they wanted to sit.

How have humans been able to redefine what is possible since they first set foot on the planet? The answer is, technology. Technology enables us to turn the impossible into the possible. History reveals that when a new tool is combined with a compelling vision, the world can be changed.

Imagine what it might have been like when some long-ago inventor showed off the first wheel. He or she might have said, "I'll change the world with this." As you might guess, word spread very slowly.

The telephone was another great invention, but just as inventions before it, word still spread slowly. Let's face it, who would you call?

Today Is Not Like Yesterday

When there is a tectonic shift out at sea that triggers an earthquake, tidal waves are created. Because of the great depths of the ocean, the waves are very small, yet the energy from the earthquake can cause the small waves to reach speeds of up to 500 mph. As the waves get closer to shore and the water becomes shallow, they slow down and build, often to great heights.

A few professional lookouts, in this case technology forecasters and futurists whose job it is to look out at the horizon, saw the approaching waves of technological change. Most of us, however, spend little time looking at the horizon. Instead we concentrate on avoiding the obstacles in our current path. Using this tidal wave metaphor, the dot com wave caught by many businesses and individuals by surprise and as the wave subsided, it washed many of the bad business models out to sea.

When a tidal wave strikes, it is usually followed by a few more waves. The next e-business wave of technology-driven change is fast approaching, and once again, few are ready. I would call this wave a "smart" wave because venture capitalists and stock market investors learned a great lesson from the first wave: a plan for profitability and an understanding of sales, marketing, fulfillment and customer service, among others are important.

The Quiet Revolution

Today, word spreads quickly! Customized news comes to us via many avenues, including television, PDAs and cell phones. Microsoft has recently introduced smart object technology that uses radio waves to broadcast news, sports, stock quotes and other information to everyday objects like a watch, bracelet or key chain pendant that have a smart object receiver.

When AOL introduced instant messaging many years ago, it allowed users to detect the online presence of buddies - people we may want to communicate with whenever they are online - and instantly communicate with them by typing a message. Instant messaging is no longer limited to typing short messages. The latest application of instant messaging allows you to talk with and even see the people with whom you are communicating. Even cell phones will allow you to detect when your buddies have their cell phones on so you will know that if you call, they will be there to answer.

When a technology satisfies a social need, a revolution is created. One of mankind's social needs is to communicate. Every time a technology like smoke signals, the telegraph, the telephone and the Web, to name a few, has allowed us to lift the bar on our ability to communicate, a revolution in how we live, work and play followed.

Real-Time Events

Thanks to the Web and other telecommunication technologies, new ideas and events spread almost instantly around the world. We have been watching events from around the world in real-time for over a decade. Remember the first Gulf War and seeing the live video on CNN of the bombs being dropped? Years later, I'll never forget walking into the lobby of a hotel in Brussels, Belgium and seeing a crowd gathered around a television with live video of the World Trade Center just as it collapsed. Now, that's instant messaging.

As our laptops, cell phones and PDAs become multimedia Communication Age devices, we will experience yet another shift in how we live our lives and conduct our business.

Should Is More Important Than Could

When I look beyond communication technology and look at nanotechnology, biotechnology and many others fields, I see that technology will continue to allow mankind to redefine what is possible on the planet, turning the impossible into the possible. We will discover many new things we can do. The key to shaping a positive future is to separate what we could do from what we should do. By focusing on what we should do, we can shape a better tomorrow for all.

About The Author
Daniel Burrus is considered one of the world's leading technology forecasters and strategists, and is the founder and CEO of Burrus Research Associates, Inc., a research and consulting firm that specializes in global innovations in science and technology, their creative application, and future impact. Over the past two decades, he has established a worldwide reputation for his exceptional record of accurately predicting the future of technological change and its direct impact on the business world. He is a strategic advisor to executives from many Fortune 500 companies, helping them to develop successful competitive strategies based on the creative application of leading-edge technologies. He publishes the popular monthly Technotrends Newsletter®, now in its twenty-second year of publication, and is the author of six books, including the highly acclaimed Technotrends, which has been translated into over a dozen languages. He has been the featured subject of a PBS television special and has appeared on programs such as Larry King, CNN, CNBC, and Bloomberg, and is quoted in a variety of publications, including USA Today, Fortune, and Forbes. The New York Times has referred to him as one of the top three business gurus in the highest demand as a speaker. He is a highly successful entrepreneur who has founded and managed five businesses, two of which were national leaders in the United States in the first year.


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