Change Management: The strategic role that HR plays in designing , promoting , managing and leading organisational change

For companies to survive and thrive in today’s competitive environment, they will need to change quickly and successfully. Managing change is now a core competency that all leaders are expected to have yet many continue to struggle in making this shift.

The presentation will explore:

  • How HR can contribute to the organisation’s change effort in an effective and meaningful way
  • How to get both the emotional and intellectual aspects of employee’s thinking to impact change or shift in behaviour
  • How to overcome talent challenges that cause change initiatives to fail

The Art and Science of Stakeholder Management in NGOs

“Human behaviour is very complex; it is not logic alone that defines our attitudes and impulses. On the contrary, we have a psychological side (often little known even to ourselves) that prevails in many situations. It is only with considerable thought and self-knowledge that we can understand this psychological side.” The Human Change Management Body of Knowledge (HCMBOK®), Third Edition

Business is about relationships and relationships involve ego. It is a delicate balance to achieve the objective while keeping each key stakeholder on board, particularly when stakeholders have conflicting end goals.

Defining stakeholder management

A stakeholder is a person (or entity) who can affect and/or be affected by the organization—who, in other words, have a stake in the work. Stakeholders (such as volunteers, donors, and vendors) influence the NGOs ability to fulfil its mission; they are also the people (such as citizens, partner organizations, and the community) who experience the consequences of the NGOs choices and actions. Stakeholders can be categorized as internal (those who work for or volunteer with the NGO) or external (such as government agencies and the media).

Who are key stakeholders within NGOs?

The communities that NGOs serve form the backbone of stakeholder engagement. Oftentimes low community participation can be a key reason projects to not successfully take off, even with all the funding available. A natural reaction to change is suspicion, even when the change looks good. The history of donor involvement can impact future willingness of participants. Particularly if the experience was not positive.

The development of a network of community partners who serve as change agents is key to bringing the community on board. Where I come from, the villages are run by the “Sabhuku” who is essentially the Mayor of the village. Starting a project in the community without the blessing of the Sabhuku literally guarantees failure as there will be little buy in. In the same vein resistance may come from low consultation with the community, a process led through the community leaders. The importance of identifying the decision-making influential stakeholders is further explained in the Stakeholder Mapping section.

Donors naturally form an integral part of the NGO environment. Ensuring alignment between the donor intent and the NGO objectives is key. Misalignment in this area can lead to projects being dropped before completion or funding being withdrawn. In many projects, funding comes with terms and conditions which may be in conflict with the philosophy of the NGO. Conducting sufficient stakeholder mapping will surface these issues early on, allowing for adequate time for any necessary interventions.

Suppliers form the lifeblood of many NGOs as the supply chain is key to ensuring the goods and services get to the communities, at the right time and price. It is also important to map suppliers and their intentions. Oftentimes NGOs are viewed as cash cows and this can result in pricing that is not competitive or in procurement practices that may not meet scrutiny. For example it may be cheaper to purchase from a Supplier importing from a country that practices child labour but it would be unethical. The integrity of the supply chain can also impact the continued funding of an NGO.

Why do we worry about engaging stakeholders?

Project delivery requires a holistic approach, especially in complex projects that cut across sectors and transcend geographic boundaries. Projects have the potential to stall or fail as a result of what we commonly term “people issues”. This can be avoided by having a strategy for identifying impacted stakeholders and developing a plan to engage with them appropriately. The ultimate aim is to reduce resistance to the change and promote engagement.

Negative anticipation is a common reaction when people interact who do not know each other. The process of managing stakeholder perceptions and moving a stakeholder’s stance from negative to positive is both an art and a science. As the old adage goes, “Perception is reality”.

Stakeholder Mapping

The Stakeholder Map is the main tool for performing stakeholder analysis. Through the mapping process it is possible to develop a clear picture of the level of engagement of the stakeholders. In very large, high-impact projects, monitoring a long list of stakeholders may not be feasible. In this case the 80/20 principle applies. Make the stakeholders with greater influence on the project a priority. This does not necessarily mean only senior stakeholders, at all levels you will find power and influence.

Expectation management is a process that begins early in the process and is managed throughout the project lifecycle. As stakeholders understand the impact of the change, their position may change for either the benefit or the detriment of the project.  These expectations must be understood to ensure alignment with the project outcome.

Developing your Stakeholder Map

Stakeholder mapping involves stepping  into the shoes of the stakeholder and seeing the project from their point of view. The “What’s In It For Me (WIIFM) principle helps to understand how to position the idea in a manner that is likely to elicit a better reception. Stakeholders often resist when they sense tokenistic approaches or rubber-stamping. It is critical to genuinely understand what the stakeholders needs, and aspirations are and blend that with our own goals and aspirations

It is important to evaluate the stakeholder’s capacity to influence project decisions and direction. It is important to differentiate between a stakeholder as an institution vs as an individual stakeholder. For example, you may think a Ministry department head is powerful when in reality they are not because of internal politics. Stakeholder mapping allows you to split hairs and really understand POWER and capacity to INFLUENCE and shift decisions

There are 4 main categories to consider:

Decision Makers: They are the main players in the project’s decision-making process. They have an impact on budgets and project direction

Direct influencing agents: They do not have the power to decide but influence project direction and mood directly;

Indirect influencing agents or opinion makers: They do not have the power to decide but can influence the project by acting behind the scenes.

Spectators: They will feel the change, may boycott it but, alone, they cannot change the project result

Categorising stakeholders into Probable change supporters and non-supporters, sometimes known as Antagonists.

Sellers: They support and sell the project naturally, are proud to participate;

Supporters: They will support changes provided they clearly understand their purpose;

Unstable Stakeholders: This classification is common in the beginning of the project when a Stakeholder’s position is not yet clear.  Lack of positioning is the typical behaviour of this type of stakeholder.

Probable Resistant Stakeholders: These are Stakeholders who cannot yet be classified.  Their signals are not clear like those of the Stakeholders classified as Unstable.  However, their background, personal style or the impact of the change on their activities allow us to infer that they will probably resist to the change;

Open Boycotters: Stakeholders who do not hide their dissatisfaction openly resist the change;

Veiled Boycotters: These Stakeholders seem to be onboard but they resist behind the scenes.  This Stakeholders requires special attention because they can use tactics that undermine the project without the manager noticing what is happening.

The classification of stakeholders helps to narrow the list of who the key stakeholders are.

CONCUSION

“You might have been trained to be a good speaker, but you probably were never trained to be a good listener”

In order to develop a trusting relationship, it is important to be able to talk frankly and openly with the stakeholders to really understand the sources of their distress. Speak less and listen more, the ability to be a good listener actually is not an easy task. You have to develop an empathic attitude and keep your mind open with a non-judgmental approach. At times it is important to listen for what is not said.

Stakeholder mapping is not a once off exercise and must be continued through the lifecycle of the project.

As the old adage goes, “People do business with those they know, like and trust.”

To learn more about effective stakeholder management and hone your change management skills, visit us at www.hucmi.com

Key Human Change Management Principles for Leading NGOs

“Managing change means humanizing it. It means to design the project from the standpoint of the people involved in order to avoid the fact that natural resistance has an impact on planned objectives.”
The Human Change Management Body of Knowledge (HCMBOK®), Third Edition by Vicente Goncalves & Carla Campos

Defining Change Management?

My preferred definition of Change Management is proactively navigating the human change journey in order to successfully reach the new state.

How is managing change in NGOs different from any other organisation?

The foundational principles are universal across all organisations as they are principles for managing human behaviour. The variations come in in relation to where the focus lies in the required activities and focus. Stakeholder Mapping and Management looms large within NGOs due to the delicate balance NGOs must play between delivering to the Community in the right way while keeping Donors and Funders appraised and satisfied. The role of Supplier Engagement and Management is vital in delivering on time and in budget.

Strong, Visible Sponsorship

A Sponsor is someone with credibility and power to drive the change, monitor it, and intervene whenever necessary.

The time required from them needs to be factored into their diary as it is active time and not passive time. Many a project has stumbled due to the absence of the Sponsor. Sponsorship is a doing word!

Key Responsibilities of the Sponsor

  • Practice strong, visible, empathetic leadership.
  • Establish vision and direction.
  • Align people and teams, build team spirit and cooperation.
  • Motivate and inspire people.
  • Planning and Budgeting
  • Manage people by following processes, methods, policies, etc.
  • Controlling and problem solving

Source: Leading Change by John Kotter)

Establish Change Vision and Direction

A critical success factor in guiding change is the formulation, establishment and communication of a clear Change Vision. The Change Vision clearly spells out the WHY of the change, the over riding purpose. Purpose is what the stakeholders identify with at a personal level. It is the heart of change.

A comprehensive Change Management Strategy and Plan

The strategic change management plan should be perceived as an integrated part of the project management plan and not as a separate plan. To facilitate the understanding and later approval by the project manager and sponsor, the process of developing the plan should be cooperative.

Key components of the Change Management Plan include:

Vision |Purpose and objective | Goals and metrics |  Elements of the organizational culture | Maturity to deal with losses | Factors of resistance | Engagement factors | Stakeholder Map | Map of risk inherent in the human factor   | Change management approach | Roles and responsibilities | Project management structure | Project team assignment and development plan | Identity such as logo, slogan, branding | Ordinary communication plan | Physical environment | Action plan | Change sustaining strategy | Project kick-off | Quick wins |Budget       

Effective Stakeholder Management

A stakeholder is an entity, an individual or a group of individuals that will be directly or indirectly affected by the change. A stakeholder can be a company employee, a supplier, a donor, a union, customers, governmental bodies, etc.

The main focus of stakeholder engagement management is to reduce resistance and promote engagement in the change so that the strategic objectives that motivated the investment are achieved. There is no successful project without a suitable level of engagement in the change.

Ordinary and Extraordinary Communication Planning

(Adapted from The Human Change Management Body of Knowledge (HCMBOK®)

The primary objective of communication planning and management is to see that the stakeholders are mobilized, aligned, and connected with the challenges and goals throughout the journey of change.

Key Communication Elements to be included in the Plan.

Sender: The initial communication of the vision, purpose, objective, and goals of a project must be made by the Sponsor.

Writer: The writer of the comms needs to be clarified to avoid confusion over who holds this responsibility.

Message: The communication plan must consider the messages that can be planned, for example, the vision of the state to be achieved after the change, the purpose of the project, progress of each phase, goals achieved, etc.

Audience:    The recipient of the message. Typically, a project has different audiences, so messages must be customized accordingly.

Medium:      The channel that will transmit the message. The project or change manager needs to carefully evaluate the best medium for each audience and message.

Two Way Feedback: Communication is a two-way street. Feedback channels must be clear and, whenever possible, part of the message itself.

Creating and Maintaining Team Spirit

If you want to go fast, go alone. If you want to go far, go together.

— African Proverb

A Team comprises of people who share a common goal and who have built a relationship of trust. Teams take time to build and focus must be put on clearly agreeing responsibilities and outcomes. This enhances the teams ability to work together and perform well.

Within many NGOs projects are usually formed by multidisciplinary teams, often with individuals or teams who have never worked together.  Some techniques to create synergy and build relationships are:

Leveraging technology to keep teams in touch.

  • Internet connectivity is a reality and efforts must be made to ensure employees have the ability to participate in activities. Bandwidth is generally an issue in many parts of Africa and if a video call is the norm this creates exclusion of team members.
  • Video recording of meetings are great to enable ease of internal sharing.

Create working groups on appropriate platforms.

  • These include MS Teams, Google Meet, WhatsApp, Skype, Zoom where selected individuals can meet and communicate with colleagues.

Knowledge Management

A key pain point in many organisations, particularly NGOs is how knowledge is gathered, managed and stored for future use. Projects are excellent learning opportunities for individuals and organizations. The learning and accumulated knowledge must be stored, including:

  • Project management
  • In-depth knowledge of business processes and rules
  • New technologies
  • Critical factors for the success of a project
  • Relationships with stakeholders
  • Change management techniques

All tacit knowledge, the internal knowledge of each person that is not shared, is lost over time and weakens the organization

Essential Competencies of a Change Leader

“The change leader’s creativity and sensitivity are the primary components that cannot be replaced by any methodology, framework, or body of knowledge.” Adapted from The Human Change Management Body of Knowledge (HCMBOK®)

Key competencies can be summed up as:

  • Sensitivity to human factors and Empathy
  • Capacity to Facilitate, Inspire, and Encourage Team Effort
  • A Focus on Results, Goals, and Productivity
  • Ability to Manage Conflicts, Crises, and Opportunities
  • Creativity, Inquisitiveness, Boldness, and Willingness to Break Paradigms
  • Effectiveness as a Communicator; a Good Listener
  • Transparency, Credibility, and Integrity

CONCLUSION

Implementing a change resilient culture takes intentionality and leadership. A focus on embedding the Organisational values is always a great place to start. Values are about behaviour, which drives culture. The customer promise becomes the employee promise which serves to drive the right behaviours.

The Puzzle Master

One of my favourite team building activities is the jigsaw puzzle game. Team A holds the picture of the puzzle. Team B has the pieces of the puzzle (usually about 50 pieces so it’s not overwhelming) and need to put it together within a timed session. Team B is allowed to send one representative to look at the picture and return to explain what they saw, without saying what the picture is. Team A are allowed to provide guidance without saying what the picture is. The results are always hilarious with various leadership styles emerging. There is always one person who decides explaining it is too hard and it is easier for them to just do the puzzle themselves. Leaving a number of disengaged observers.

Being a Change Leader/Sponsor is much like being the holder of the Jigsaw picture and the rest of the project have a few pieces each. Your job is to ensure the teams understand what they are building and why. Sometimes they need closer guidance so they don’t become despondent if the jigsaw is very large and complex. It will require active participation of the Change Leader.

Are you frequently sharing the big picture on your projects?
#changeleadership, #sponsorship