Change management: Why new and improved matters in an HRO partnership
March 31, 2008
 By Jodi Hayes-Roth, VP of Ceridian HRO Service and Relationship Management |
| As consumers, we are constantly bombarded with marketing messages such as "new and improved" or "new look, same great product." From dish soap to toothpaste or the latest buttery spread, some products sometimes do change for the better. But often, it is only the outside package that has changed.
Not so with Human Resources Outsourcing (HRO) change management. If your organization is considering an outsourced HR solution, today's approach to change management is a far cry from the "old package," when a customer's past experiences and preferences drove what was -- or was not -- included in their change management support from the Business Process Outsouring provider. In the early days of outsourcing, HR leaders and project managers focused on things such as communicating a different employee service center phone number, a new URL and another set of login credentials. Communication beyond the obvious, however, was often reactive. Employees needed help entering time card information, changing an address or viewing a W-2 form. Managers found themselves with new kinds of data and needed instruction on how and when to use it. Requirements for user training quickly became apparent, and HR leaders realized that their existing staffs needed to redefine the processes formerly used to handle HR transactions. However, they gave little thought to what should change, how it should change and exactly when new processes should begin and former ones should end. A change of mindset After more than a decade of unprecedented growth in business process outsourcing, business leaders are more likely to acknowledge change management is important to any large-scale initiative. For the most part, experts agree on the dynamics of change and how to leverage them as an advantage in your business. The challenge is in converting theory into a practice that works. Take a closer look at what HRO provider change management programs include. Most likely, you will still see an intense focus on communication and training. Streamlining the approach to change can sometimes be good for business. However, a view of change management that is too narrow (or at the other extreme, too broad) can undermine the business case and compromise the overall success of the project. Now that the HRO industry has matured, is there an effective way to structure change management service? To answer that question, you must first understand the importance of considering the "people side" of any organizational change. Too often, managers perceive change management as a technical process, rather than a human one. This makes sense, since change management is described as the study of "approaches" or "processes" an organization follows when moving from its current state to a desired state. We have heard the buzzwords used to describe this type of organizational change: organizational reorganization, corporate restructuring, process re-engineering, resource reallocation, etc. However, for any of these change processes to work, the impact they will have on people cannot be overlooked or discounted. If this is ignored, the change initiative will likely fail. The Corporate Leadership Council's March 2007 Process and Tactics for Effective Change Management indicates that up to two-thirds of change initiatives fail. Employee resistance to change is the single greatest barrier to the success of change initiatives. Organizations that successfully manage employee resistance are rewarded by better employee morale, higher productivity and lower unwanted turnover than organizations that do not effectively plan for change management. New look, better approach Obviously, change can be uncertain and difficult. But it is not impossible, especially if you have a strategic plan such as the model developed by John Kotter. Harvard Business School Professor Kotter is one of the most recognized authorities on leadership and change. The following eight steps from Kotter's model can be applied in any organization at any level:
It is important for leaders to connect new behavior with corporate success, showing that the new ways are here to stay. New leaders in the organization also must espouse the new approaches. All that was accomplished can be undone by a change in leadership that bends to the old ways. Change management to fit your needs Even in the best circumstances, change management can be a mammoth -- and sometimes less than productive -- undertaking for a large-scale project, unless you are very specific about the outcomes you expect. We're proud that we've grounded our change management service in some of the best thought-leadership in the world, and equally excited about the proprietary approach we've taken to tailor our service to fit our implementation model and best practices. At Ceridian, we know it's not about slapping a new label on an old method. Our consultants help you bring laser focus to your change management plan through a proprietary approach and proven tools. Our consultative model enables us to see inside your culture and operations and advise you on the best practice for your situation. Our goal is simple: to help your stakeholders become knowledgeable about and effective in using your solution on day one. A key advantage with our model is that it is backed by consultants with years of experience in HR and line businesses -- so we can help you identify other change management requirements that will be critical for you to manage. Best of all, Ceridian's HRO change management service can be a plug-and-play component with organizations that already have established change management practices. Using our baseline as the starting point, we work with you to configure the service to fit your organization's specific needs. We give you a place to start, helping you prioritize what's most important so that you have fewer transition surprises. It's not just a new look in HRO change management. It's a proven approach that will lead your organization and empower your employees to navigate the challenges of change -- and find the new opportunities that lie ahead. Contact your Ceridian representative to learn more about Ceridian's HRO solutions. Jodi Hayes-Roth is vice president of HRO Service and Relationship Management. She leads Ceridian's HRO service delivery, including implementation, operations and relationship management teams. She has more than 19 years of experience in management, 10 of them with focused expertise in planning, designing, and transitioning HR outsourced solutions for large companies. Source: Kotter, John P. Leading Change. Boston, MA: Harvard Business School Press, 1996. Kotter, John. P. "Leading Change: Why Transformation Efforts Fail." Boston, MA: Harvard Business Review. March-April, 1995. By Kenneth H. Rose, PMP |
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