QUESTION
You have written about something called “change management.” When I first read it, I thought it was some kind of a joke. I know we’re highly regulated, but how can you make us change our management? Then I read on, and I guess it’s no joke.
Apparently, change management is a thing. It has to do with managing change, not changing management. That was the extent of my interest until an examiner asked for our change management policy. Say what?
Anyway, we scrambled and put one together. The examiner accepted it. Problem solved. But maybe not. It is missing something I would dearly like to have: a checklist! I want a basic checklist for change management.
Can you provide a checklist for change management?
ANSWER
As Lao Tzu said, ‘if you do not change direction, you may end up where you are heading.’
Yes, change management is about managing change.
But would you know change if you encountered it?
Would you recognize change after the change has already happened?
Can you anticipate how to manage change if you realize its necessity?
As the title of this article says, quoting Heraclitus, “there’s nothing permanent except change.” Are you ready for it?
Change management is a method for providing an infrastructure to support and sustain change throughout multiple phases. Broadly speaking, it is based on achieving desired business results. If you are a financial institution, you will experience pressure from regulators, borrowers, shareholders, and investors to improve your business continuously.
Although you don’t need pressure to manage change, it does tend to focus the mind! These pressures tend to lead toward initiating a wide range of company projects, including minor targeted updates, process enhancements, large complex system implementations, and significant business process adjustments and strategic initiatives.
To the extent that a company standardizes its process and project management practices – the two prongs of change management – there should be improved optimization of organizational processes and mitigation of project failure risks.
So, I will provide checklists for the two components: process management and project management. I will finish with a high-level, self-assessment checklist, which should be required for senior management and governance objectives. If you want a free copy of these checklists, request it HERE.
Process Management – Checklist
• A centralized repository for all policies and procedures.
• A dedicated group oversees processes, systems, and policy changes.
• Key processes (i.e., policies, procedures, and support documents) are evaluated for completeness and accuracy.
• Key processes (i.e., policies, procedures, and support documents) are evaluated for current revisions.
• Regular quality assurance reviews are conducted to ensure the actual performance of employee work processes is consistent with process flows and descriptions.
• A change management tool to manage and track process updates. For instance, a standard policy/procedure template across the organization.
• Staff responsible for the change management process is well trained or has the necessary skills to perform these functions.
• Change management methodology that includes:
• Business ownership and governance responsibilities.
• An impact analysis before process changes are implemented.
• Communication of new or revised processes to impacted business units or areas.
• A process that ensures policies, procedures, and processes are updated to reflect remediated control deficiencies.
• A procedure for approving new or revised processes.
• A procedure for managing and introducing process revisions.
• Identification of training based on creating or updating policies and procedures.
• Validation of new or revised policies and procedures prior to implementation.
• Established controls are in place to ensure the change management methodology is applied consistently between individuals and work groups.
Project Management – Checklist
• Project management tool to track and manage projects.
• Project management tracking reports.
• Regular project tracking/inventory reports that are communicated to stakeholders.
• Project management methodology that includes:
• Communication of project goals and status.
• Milestone reviews and approvals.
• Identification and mitigation of project risk.
• Identification of stakeholders.
• Change control documentation.
• Escalation process for projects/steps determined to be off track.
• Documentation of lessons learned.
• Projects across the organization are managed under a central group.
• Staff responsible for managing projects is trained and qualified to perform the function.
Finally, here’s a checklist that senior management should review.
Self Assessment Checklist
• Description of the prospective change.
• Input from stakeholders.
• Formal change plan.
• Identification of resources and data to be used.
• Communication strategy.
• Review of budget risks associated with the change.
If you want a free copy of these checklists, request it HERE.
Jonathan Foxx, Ph.D., MBA
Chairman & Managing DirectorLenders Compliance Group
