Managing people through Service Transition Tutorial

4.1 Managing People Through Service Transition

Learning Unit 4 – is about Managing people through Service Transition. Here we will learn about Managing communications and commitment; Stakeholder Management; and Managing organizational and stakeholder change through service transition.

4.2 Managing People Through Service Transitions

Let us start with the understanding of Managing People through Service Transitions. Communication is central to any Service Transition change process. The greater the change, the greater the need for clear communication about the reasons and rationale behind it, the benefits expected, the plans for its implementation and its proposed effects. Communications need to be targeted at the right audience and clearly communicate the messages and benefits consistently. If total honesty is not possible, admit this and explain why it is not possible, e.g. for security reasons. Understanding people’s commitment is important before planning the Communications. • Managing communications and commitment – One of the major traditional weaknesses in Service Transition has been the inability to deliver sufficient prompt understanding of the implications, benefits and usage of IT services. • Organizational and stakeholder change – Reflecting the holistic nature of change that Service Transition must be based on, organizations do not transform their IT service by only changing the IT services. Modern innovations mean that the organization itself will also inevitably change to make use of the new and changed services available. • Stakeholder Management - Success of a Change, largely, depends on the involvement of stakeholders. It is necessary to identify all stakeholder, as some potentially impacted, are unaware of proposed changes, unable to register their concerns and wishes. The support is lost, if not included. Let us now move to next slide.

4.3 Managing Communications And Commitment (1 of 3)

In our last slide we understood the concept Managing People through Service Transitions process. This slide talks about the Managing Communications and commitment in Service transition in detail. Communications during Service Transition: Typically many people are affected by a service change and consequently sufficient stakeholder buy-in is required to carry the transition forward successfully. It is important to establish an individual’s stage within the ‘emotional cycle’ to understand the method of approach. The important activities are: • Stakeholder Analysis • Staff managing ST understand impact to others • Two way Communications • Establish strategy Communications Planning: After establishing the strategies that will promote positive change enablers, and having understood the level of commitment within the organization, Service Transition must ensure that there is a detailed Communications plan that will target information where it will be most effective. When announcing information during a Service Transition change, the following delivery considerations should be made for each statement you need to communicate: • Tone (Optimistic, cautious) • When (At once, in stages, at the beginning, at the end) • Chain of communication • Feedback Methods • Monitoring We will be learning more about these activities in detail in later slides. Let us now move to next slide to undersand communication stratergy.

4.4 Communication Strategy

Communication Strategy in Service transition is the key to successful communication. This Figure on the slide depicts the key elements that need to be considered when planning for effective communication. To ensure that a communication strategy is effective, surveys and measures should be determined for regular monitoring. This will take the form of feedback from those people that have had any communication. It should also include how people are feeling on their ‘change cycle’ to establish that the target is right. At this point there may be individuals that are identified that should have more personal contact from the Service Transition Team in order for them to achieve an acceptable state. To obtain an appreciation of the sequence of events, a communication path helps the planning of the communication process. In next slide let us look at managing communications and commitments.

4.5 Managing Communications And Commitment(2 of 3)

In continuation to our topic Managing Communications and commitment this slide talks about the Methods of Communications in Service transition. Using multiple communication means will help understanding of the overall message. Common media types include: • Large workshops – to deliver a clear and consistent message to the target audience on the overall Service Transition approach; this will generally be at the start of any communication strategy in order to build understanding, ownership and even excitement across the teams • Organization newsletter – to reinforce any messages already delivered; however, care needs to be taken that this approach is used as reinforcement rather than as the first time that employees may have seen the communication cascade • Training sessions – as part of the Service Transition, roles or processes will be likely to change; this requires targeted training, which should be planned giving sufficient time for employees to get to grips with any new ways of working • Team meetings – giving support to team leaders from the Service Transition team, who will ensure at their own weekly meetings that they can reinforce any messages; it is at this lower level meeting that the questions that employees have may be better understood, as people will feel within their own comfort zone and as they are used to this method of communication with their colleagues with whom they work everyday. • Face to face – key stakeholders make time to visit staff in their work environment (floor walks)in order to set a positive example of the support by senior management, and allow employees to ask questions relevant to them. • Question and Answer feedback postings – boards or mail boxes where employees can raise anonymous questions and receive feedback on any concerns they may have through Corporate intranet • Reinforcement memos – consistent memos from the senior stakeholder reinforcing key information, or giving an update on the implementation activities, will keep the Service Transition alive for those people who are not actually involved at all stages • Posters/roadmaps – good quality colorful Communications at the end of office floors showing implementation activities, progress or general updates; these are a positive way of keeping Communications alive and delivering a consistent message • Pay advice notes – key communication attached to pay slips to ensure a practical 100 percent communication update • ‘Z-cards’ or summarized reference cards – small credit-card-sized documents holding key information and expected to be carried by staff in their wallets or purses. Let us now move to next slide and learn about motivation and importance of communication.

4.6 Managing Communications And Commitment(3 of 3)

People need to be kept up to date with the progress of change, good or bad, if they are to be motivated to make it happen. Hackman and Oldham (1980) described the state of affairs when people try to do well, because they find the work satisfying, as internal motivation. There are Other Theories shown here: •First is Taylor theory: which emphasizes on Monetary control of communication •Second is the Mayo theory: which include Monetary plus social needs(communication, teamwork, manager involvement) •Maslow theory: says that not all are same: thus relevance of communication needs to be established. •Herzberg theory: refers to Motivators and Hygiene factors This theory relates with Job enlargement, Job enrichment, Empowerment People will be mobilized and engaged if they can see progress. Short term wins should be communicated and progress celebrated. So far we understood the concepts of Managing communication and its importance in Service transition. In coming slides we will look at Managing organization and stakeholder change in Service transition.

4.7 Managing Organization And Stakeholder Change(1 of 10)

In our last few slides we understood the concept of Managing Communications and commitment. This slide talks about Managing organization and stakeholder change in Service transition. Under this topic the slide explains the first pointer that is: The emotional cycle of change The research on Change Management strongly suggests that without the support of people, change will not happen. Business managers and change agents must understand the emotional impact that change has on people and how to manage it accordingly. Much research has been done on the emotional impact of change. What this means is that failure to consider Organizational Change and how it affects people is a significant factor in causing transitions to fail. In order to facilitate the acceptance of change, it is important to understand the ‘emotional stages’ that a person needs to get through before acceptance. This is illustrated in the Figure shown here. For all significant changes, individuals will go through this process. At first they enter into a degree of shock, before going into avoidance. This will often manifest itself in increased efficiency while the situation is denied. This is usually a rapid stage, at which point performance drops as people choose to ‘shoot the messenger’ and blame the change initiators and Service Transition team, followed by self-blame as insecurity and the threat of the situation is felt. Performance is now at its lowest. It follows that the quicker the Service Transition team can get individuals through the cycle, the shorter the timescales before acceptance and optimum performance. One can use the experience of those within the affected area to understand concerns, and the nature of resistance in order to communicate at the appropriate stages. This may often take considerable personal time of the Service Transition team, to listen to people’s concerns, but ultimately will get individuals engaged and performing in as short a time as possible. Appropriate communication through these stages of transition will drive the energy of individuals from low to high, obtaining involvement and generating a more positive attitude as the change takes place. As emphasized, this is a pattern followed by individuals, and different people will pass through these typical phases at different speeds, so understanding where individuals are on this curve and supporting and progressing them can be a significant resource commitment for Service Transition. Let us now move to next slide to learn about Service transition role in organizational change.

4.8 Managing Organization And Stakeholder Change(2 of 10)

In continuation to our topic Managing organization and stakeholder change this slide talks about the second pointer Organizational Roles and responsibilities in Service transition and ST’s role in organizational change. Organizational Roles and responsibilities: Managing change and transition is the responsibility of the managers and Executives involved in that change. •They must have an awareness that change has to be managed, that people have to be communicated with openly and honestly and that resistance has to be sought out, listened to and responded to appropriately. This is especially the case if a change is on a scale that is significant enough to affect the organization as a whole. •The Management Board and Executive must ensure that there are adequate connections and controls throughout the organization to alert them to any barriers and to facilitate the transition to its goal. •A clear, strategic vision coming from the Management Board andor Executive is imperative to drive and maintain the change. ST’s role in Organizational Change: •Although Service Transition is not accountable for the overall management of Business and technical change the Service Transition process owner or manager is a key stakeholder and needs to be proactive in reporting issues and risks to the change leaders, e.g. when the volume of changes may impact Service Operation’s ability to keep the services running. •Organizational change is always a challenge. Factors that drive successful change initiatives at the organization level include: Leadership for the change, Organization adoption, Governance process, Organization capabilities, Business and service performance measures and a strong communication process with regular opportunity for staff feedback In the next slide we learn about designing and implementing organizational change.

4.9 Managing Organization And Stakeholder Change(3 of 10)

Let us first look at strategy and design for organizational change. Cultural and organization assessment and change design are the responsibility of strategy and design. However, most significant Service Transitions will have an effect on working practices and so require a change in the behavior and attitudes of many teams and stakeholder groups. Understanding the Organizational Change elements of a transition is therefore vital. The assessment of the likely risks and success is an important element of the transition as a whole. Service Transition will be involved early in the lifecycle to ensure that these aspects are assessed and incorporated into the design and build of the Organizational Change. During a Service Transition, changes in roles, processes and relationships must be made or problems will arise. Understanding the different phases of development of the stakeholder organizations helps Service Transition manage the stakeholders and users better. Moving on, let us look at Planning and Implementing Organizational Change: Although Service Transition is not accountable for the overall management of Business and technical change the Service Transition process owner or manager is a key stakeholder and needs to be proactive in reporting issues and risks to the change leaders, e.g. when the volume of changes may impact Service Operation’s ability to keep the services running. Organizational change is always a challenge. Factors that drive successful change initiatives at the organization level include: Leadership for the change, Organization adoption, Governance process, Organization capabilities, Business and service performance measures and a strong communication process with regular opportunity for staff feedback Let’s continue this discussion in the next slide.

4.10 Managing Organization And Stakeholder Change(4 of 10)

Let us now look at another important aspect of Managing organization and stakeholder change -which is ‘Planning and Implementing Organizational Change’. Generally a lot of focus is given on the technical and functional aspects of designing and developing service solution alone. This might lead to unforeseen issues and risks to the organization. It is therefore essential that the organization and people side of change is also given due importance. It should be ensured that project plans include organizational change activities as well. While managing organization change, stakeholders and teams should have clear understanding of the desired outcome and this is possible by seeking answers to the following questions: What are the business and organizational strategic drivers, personalities and policy changes? What issues does the proposed change solve? What will the new or changed service deliver? How do current objectives need to be modified? What are the objectives of the change as defined by management? What are the processes, templates, decision points and systems to be used? Who will be involved and who will no longer be involved? Who will be affected within and outside the organization? What is the planned timescale? How will ‘normal’ life be affected? and What will the consequential changes be, for example, to business methods?

4.11 Managing Organization And Stakeholder Change(5 of 10)

In continuation to our topic Managing organization and stakeholder change this slide talks about the Organizational Change Products pointer in Service transition. The change in the organization from the current state to a new state can require a combination of elements to be changed in order to fully realize the organization transformation. The required service is defined in the Service Design Package. The following work-products are typical outputs from Service Strategy and Service Design that assist with managing Organizational Change during Service Transition: • Stakeholder map • Current organization and capability assessment • Current and required competency model and competency assessments • Constraints (including organization, capability, resources) • Service Management process model • Policies, processes and procedures • Roles and responsibility definitions, e.g. a RACI (Responsible, Accountable, Consulted, Informed) matrix • Relationship management • Communication Plan • Supplier framework, especially where multiple suppliers are involved. Let us now move to next slide to know about assessing organizational readiness and stakeholder change.

4.12 Managing Organization And Stakeholder Change(6 of 10)

In the previous slide we looked at some examples of organizational change products.The current slide talks about the Assessing Organizational readiness for Change Products.. A checklist approach to ensure readiness and understand the minor, major or potential risks (and means to manage them), is recommended. The documents reviewed for answering specific questions are: Plan Assessment Report Vision or Strategy Requirement(S-O-W, SLA, statements, B.Case) R and R interaction metrics Risk Assessment Report Performance measures by role Baseline reports As we have understating of organization change products and assessing them, let us proceed to learn about monitoring the progress of organizational change..

4.13 Managing Organization And Stakeholder Change(7 of 10)

The next activity is monitoring the progress of Organizational Change. We are all aware that monitoring and measuring are key to success as these help in taking corrective and preventive actions to bring the project back on track or realign the project to stated objectives. This activity involves : Performing regular checks and surveys including customer and stakeholder feedback; Performing response/feedback analysis and addressing issues; and Ensuring that improvements identified during Post Implementation Reviews are fed into Continual Service Improvement.

4.14 Managing Organization And Stakeholder Change(8 of 10)

A change in sourcing of IT services is one of the most significant, and often most traumatic, kinds of Organizational Change. Several different impacts and effects on staff will need to be considered, planned and prepared for. Let us see what are they? Employee shock: One of the biggest changes that will be caused by sourcing is ‘employee shock’. As described in the retained organization section, many staff functions will evolve into more generic concerns such as project management and negotiation management. There will also be a morale issue caused by transition of staff replaced by the sourcing function. These perceptions need to be addressed early on, at the beginning of the initiative, so that the employees are completely aware of what is about to happen. Lack of communication and secretive behavior only promotes suspicion and can lead to negative and disruptive attitudes. Sourcing is best done in an open atmosphere where all the options are clear and identified. Business change: Another major change is the way Business is conducted. Sharing ‘everything’ with a sourcing vendor may lead to distrust if it is not presented in the correct terms. Care must be taken to ensure that information is passed to the sourcing vendor on a ‘need to know’ basis. This will keep the relationship professional. Location change: The location of the sourcing can also present issues and risks during Service Transition. Typical sourcing locations are presented below and each represents a difference from where the service was provided before sourcing: • Local sourcing exists in the same geographical area. • Global (multi-shore) sourcing chooses the best solution non-dependent on geographical location. • Near-shore sourcing borders the client location offering same language, time zones and culture. • Combinations are becoming common with different functions, or aspects of functions, delivered in different fashions, e.g. 9 to 5 service desk delivered locally but out-of-hours service supported from off-shore. The cultural and organizational issues relating to the change in location need to be addressed for a successful Service Transition. Linking of sourcing activities throughout the organization- In planning a Service Transition to another organization, the sourcing strategy is mapped across the organization. This is where the budget is tied to the financial group, services are tied to the service delivery group, security considerations are tied to the security group etc. Each group that is linked to the sourcing initiative must make provisions for interaction with the sourcing vendor so that the sourcing operation will continue to run smoothly. It is important to obtain commitment from key people, and commitment planning techniques can be used (see previous section). The links should be tested during each phase of the transition process to verify that the link is working and providing the correct transaction between the Business and the sourcing vendor. Let us now look in to the methods, techniques and pactices of managing organization and stakeholder change.

4.15 Managing Organization And Stakeholder Change(9 of 10)

Let us discuss the ninth point of Managing organization and stakeholder change. This slide talks about the Methods, Practices and Techniques. There is a tendency for senior Executives to skip the need for Organizational Change by dictating what behaviors should be done and sacking people to get the message across. Typically it works in the short term, but then falls apart after the key Executive leaves or moves on to something else. Thus it is important to consider long term: Eg.: Sacking people to send the message may work only short term, but destabilize morale - Guidance for John P. Kotter: “Eight steps to transforming your Organization” a well-proven approach to managing transformation. This is a useful method to use to identify gaps in plans for managing Organizational Change. - Organizational Strategies: Service Transition will be interested in the proposed strategies to manage Organizational Change. These can be used to assess the approach from Service Design and to manage change during Service Transition and identify issues and risks relating to Organizational Change. Kotter and Schlesinger (1979) suggested the following strategies that work well in practice: let us understand the first strategy, Education and Commitment: Education and commitment begin in the early planning activities. The discussions generated around the pros and cons of the plan will help to dismiss any uncertainties about the need for change and forge strong alliances that can be used as a change agent. The Second strategy is Participation and Involvement. Allowing people to participate in the change normally overcomes resistance. On its own it is not enough; it must be used in combination with a policy of education and commitment, so that people understand the need for change, and effective monitoring and review for managers to be able to assess the impact of change on the Service Transition programme. The Third strategy is Facilitation and Support. The manager should constantly promote the benefits of the change, reminding people of the objectives, and communicating a clear vision of what the organization will look like in the future and how employees’ contribution is valuable in making that happen. Some expressed resistance can be positive because it shows that the employees are involved and can likely be moved through the cycle to a point of acceptance. Employees who show no visible emotion are the ones who need extra attention to identify the hidden issues and deal with them, otherwise secretive and subversive activities may result. The Fourth strategy is Negotiation and Agreement. Change is easier to implement if you have agreement; gaining agreement suggests negotiation, so managers should be prepared to negotiate, formally if necessary. The relative cost of gaining agreement should be set against the importance of the change. . Let us understand the fifth strategy, Manipulation and Co-option. It is sometimes necessary to strike deals with those who oppose change, either by making them informed to restricted information or by ‘buying-off’, i.e.(pronounced as that is) giving them extra rewards (financial or otherwise) to gain their participation. This approach should be used with caution that it is likely to cause problems later on. It is often used when the service provider changes and there is a risk to the operational services if key staff with irreplaceable knowledge and experience leave. The sixth strategy is Explicit and Implicit Coercion. There are occasions when coercion is the appropriate tactic. It will come with associated costs, similar to the directive approach of ‘act now explain later’. Coercion may well run counter to the values and beliefs of your organization and, by inference, to individuals working in it. Strong leadership is needed if using this strategy, together with a full knowledge of the situation and the possible problems that will be caused. Carrot and Stick approach is the seventh strategy. This works in many organizations for providing Empowerment to find solutions. In the next slide let us look at the techniques of Managing organization and stakeholder change.

4.16 Managing Organization And Stakeholder Change(10 of 10)

Let us discuss the tenth pointer of Managing organization and stakeholder change This slide explains the techniques to overcome individuals’ resistance to change Rosabeth Moss Kanter identified ten reasons why people would resist change, and optional strategies that will promote positive change enablers. These can be useful for Service Transition staff to understand when involved in managing stakeholder change to overcome issues from individuals during transition. The ten reasons are: • Loss of control – When you move people from a process with which they are familiar to one they know little about, they will experience a feeling of losing control. This can be overcome by involving them in the decision making, even allowing them to make decisions for themselves. It is essential to inform people of what choices they have – even if they are extremely limited. Managers should anticipate who is likely to oppose the changes and decide how to win them over. A detailed explanation of the Business benefit and the return on investment (ROI) will strike a sense of urgency and awareness to how the new Service Transition will support the Business needs. • Excessive personal uncertainty – The first question most people will ask is ‘What is this going to mean for my job?’ This can be answered effectively by explaining the need for, and implication of, the change at both a Business and a personal level, including the often difficult issue of estimating how long the period of uncertainty will last. Honesty is the best policy. • Avoid surprises – People like to be given the opportunity to think through the implications of change to or for them; springing new ideas on them will create uncertainty. • The difference effect – People build identities around many facets of their work – their role, the job, the building, the corporate name – it gives them a sense of tradition. Managers should only change what they must, keeping familiar symbols wherever possible. • Loss of face – People dislike moving from a position of competence to one of incompetence, which can often happen when new processes, systems and ways of working are introduced. Managers can overcome this problem by acknowledging the person’s competence under the old system and letting them participate in deciding the change process. This can also be done by allowing a joint responsibility for personal objective setting. This will generate early engagement as the change transitions. • Fear around competence – Some people will believe that they cannot adopt the new ways of working – ‘You can’t teach an old dog new tricks!’ The solution is to give them the trainingor coaching they need before the new system is implemented, allowing them to have practice runs before the system goes live so that they prove their competence to themselves, thereby creating enhanced levels of confidence. This can have the added bonus of increasing their desire for change, and personal responsibility to their own career development. • Ripples – The unexpected effect of an action taken in one area on another. Managers would be naïve to think that planned change is trouble free; sometimes it is impossible to predict accurately the effect one change will have on another part of the organization. During the planning phase people should be encouraged to think widely anddifferently, considering unlikely as well as likely possibilities when attempting to predict outcomes; this kind of planning can help to minimize the ripple effect. • Increase in workload – Change frequently results in more work. If this is the reality, it should be acknowledged and rewarded if possible. • Past resentments – If the proposed change is associated with an individual or organization about which the person has a grievance they will resist the change. Allowing them to air their resentments, managers will have the opportunity to remove or repair them. • Real threats – There are times when change is going to have a negative impact on the individual, and they are justified in resisting. Pretending it is going to be all right does not help; managers need to act first and act fast by talking with them as soon as possible, and involving them in the solution. So far we looked at various methods, practices and techniques used to overcome change or Service tranition. Let us know proceed to learn about Stakeholder Management in Service transition.

4.17 Stakeholder Management(1 of 3)

In the next few slides we will be discussing about Stakeholder management in detail. Stakeholder management is a crucial success factor in Service Transition. The new or changed service must support and deliver stakeholder requirements to be considered successful and their active involvement will increase the likelihood of delivering as required. Failure to properly identify all stakeholder groups makes it almost inevitable that many of those affected will be unaware of proposed changes and unable to register their concerns and wishes, nor will they be able to be supportive if they are not included. The stakeholder management strategy from Service Design sets out: • Who the stakeholders are • What their interests and influences are likely to be • How the project or programme will engage with them • What information will be communicated • How feedback will be processed. It is helpful for Service Transition if stakeholders are listed under categories such as ‘users/beneficiaries’ or ‘providers’. Each category can then be broken down further if necessary. Categories should be recognizable groups rather than abstract ones; for example, ‘employees based in one geographical location’ are a readily identifiable group, whereas ‘members of the public who support human rights’ are not. Some categories may identify the same individuals, but it is often useful to differentiate between stakeholders ‘wearing different hats’, such as those shown in graphic.

4.18 Stakeholder Management(2 of 3)

In continuation to our last slide to understand the concept of Stakeholder Management in Service transition, this slide talks about the concept of Stakeholder map and analysis in detail. Stakeholders inevitably have different interest areas in the overall change; for example, some will be concerned with how the change will affect their working environment; others will want to influence changes in the way Customers are handled. A stakeholder matrix (see the Figure) is a useful way of mapping the various stakeholders against their interests in the Service Transition, its activities and outcomes. Service Transition should work with Service Design to ensure that there is an accurate and relevant stakeholder map or equivalent. Examples of those who may be affected are: • Sponsors of the service change, e.g. technology refresh • Those affected by the service change or Service Transition • Suppliers of goods or services into the service bundle or service package • Service Management teams involved in the new or changed service A stakeholder analysis helps to ensure that there is sufficient understanding of the stakeholder requirements and the stakeholder’s interest in, and impact on, the change. Stakeholders’ positions (in terms of influence and impact) may be rational and justifiable, or emotional and unfounded. However, they must all be taken into account since, by definition, stakeholders can affect the change process and hence the Service Transition. Next, let us study changes in stakeholder commitment, planning chart.

4.19 Stakeholder Management(3 of 3)

The Figure on the slide is an example of the commitment plan. The plan chart shows the current commitment level of individuals and groups, and how that commitment must change if the transition is to be successful. Each individual is rated with an ‘O’ to indicate their current position and an ‘X’ to indicate the degree of commitment needed from them. Sometimes they need to step back, e.g. the departing director of customer in this table would need to hand over the leadership role.

4.20 Learning Unit 4 Summary

In this learning unit we discussed about: • Managing people through Service Transitions involves – Managing communications and commitment, Managing organizational and stakeholder change and Stakeholder Management. • The key activities with respect to managing communications and commitment are : • Establishing communications strategy • Communications Planning • Identifying the right methods of communications • Motivating people through proper and timely communications. • Managing organization and stakeholder change is one of the critical aspects which cannot be missed out during Service Transitions. This includes: • Understanding the emotional cycle of change • Establishing organizational roles and responsibilities • Determining Service Transition’s role in organizational change • Developing a strategy and design for organizational change • Planning and implementing organizational change • Determining and developing organizational change products • Assessing organizational readiness for change products • Monitoring the progress of organizational change • Dealing with organization and people in sourcing changes. • Stakeholder Management involves : • Developing stakeholder management strategy and identifying all potential stakeholders • Developing stakeholder map and performing an analysis • Identifying changes in stakeholder commitment and developing a planning chart. Next, is the quiz section! Complete all the questions before proceeding to the next learning unit on Organizing for Service Transition.

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  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

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