Change Management • Organizations do not change! • People Change……… • One person at a time Common Experience with Change • What is the biggest experience of change you have experienced at CTS over the last year? • What impact did this change have on you and others? • What was your initial response to this change? Expectations • Identify 1 thing you expect to learn today? Agenda • • • • • • Context for change Change roles and responsibilities Stages of change Managing resistance stakeholder analysis and involvement planning Change management levers – – – – – – sponsorship communication Performance management Organizational structure Capability development Workforce transition • Risk assessment • Its an era of change. • You’ve got to basically accept change as an everyday event and believe that it is a good thing! • “Without the appropriate change implementation support, a company spends $3-$10 for every dollar invested in technology , to retrofit it to the culture” » Gartner Group • “Nearly half of all major technical initatives fail because of fear and anxiety in the organisation, and resistance from key managers” » Computer World Why Change Fails • Top barriers in major change programs – – – – – – – – – competing resources Functional boundaries Lack of change skills Middle management Long IT lead times Communication Employee opposition ( resistance) Initiative fatigue Unrealistic timetables » source: PriceWaterhouseCoopers 48% 44 42 38 35 34 33 32 31 Making Change Succeed • Factors that helped the most successful companies achieve their goals – – – – – – – – – – Good communication Strong mandate by senior management Setting intermediate goals and deadlines Having an adaptive plan Having access to adequate resources Demonstrating urgency of change Setting performance measures Delivering early , tangible results( quick wins) Involving customers and suppliers early Benchmarking V’s competitors » source:PriceWaterhouseCoopers 100% 95 95 91 86 86 81 76 62 62 Communicating about Change ( 5 Communication Points) • 1. Why is the change necessary? – ( rationale) • 2. What are we changing to? – ( Vision) • 3. How and when do we intend to get there? – (plan) • 4. What is the personal impact? – (what's in it for me?) • 5. Is help available to support transitions? – (resources) 1.Why is Change Necessary? • To survive in today's changing market – PCA’s can be seen / treated as a commodity • To keep up with changing customer needs, such as build to order, immediate delivery • To achieve our goal of leading the sector of low to mid-volume / high mix EMS business’s • Increase efficiency and customer satisfaction and therefore profit .CTS’s Key Objectives • Develop strategic relationships with key customers • Provide best in class product and process quality • Create world class manufacturing processes • Develop strategic supplier relationships • Become employer of choice 2.What are we changing to? • • • • Globally unified More efficient More profitable More customer focused 3.How do we intend to get there? • Through Implementation of key strategies such as: – – – – – Supply chain management Core teams Six-Sigma Lean Manufacturing Inter Company Benchmarking 4.What is the personal Impact? • More successful company which can invest in its resources • Increased stock value and profit sharing • Employer of choice talented, challenging co-workers. • Working for a globally recognized industry leader • More enjoyable work enviroment 5. What help do you need to support change? 5.Help is available to Support Change! • • • • • Training classes for you and managers Increased corporate-wide communication Visible senior management support Change infrastructure built around projects New, consistent vocabulary to talk about change. Context for change ( is CTS alone?) • Companies must continually undergo organizational transformations to survive and grow Organizational effectiveness Time Context for change • Organizational transformations can be disruptive Before Established systems Organizational effectiveness Solidified culture High level of effectiveness During and After Transformation Point Disruptions to leader ship & systems Organizational nervousness Reduced effectiveness Time The Transformation Point • • • • • • • Low stability: high chaos High emotional stress Control becomes a major issue High undirected energy Glorifying the past Conflict increases Resistance starts to build Organizational Culture • Culture consists of the norms, values, beliefs, expectations, behaviors and assumptions that exist in an organization Exercise:What do you think? • How do you think CTS’s culture affects its ability to successfully change? • How will it affect your ability to implement your change? • What can you do as a Manager or Project Leader to move CTTS towards an ideal culture? • “Corporate culture is real and powerful. It’s also hard to change, and you won’t find much support for doing so inside or outside your company. If you run up against the culture when trying to redirect strategy, attempt to dodge. If you must meddle with the culture directly, tread carefully and with modest expectations” – Bro Uttal – Corporate Culture Vultures Summary • Companies that fail to change may not survive • By changing , CTS stand to gain significantly in many areas, which will benefit everyone • CTS’s organizational culture may not be “ideal” but understanding the current culture will assist in helping make changes that will positively affect it. Change Roles and Responsibilities Change Roles • Executive Sponsorship – Legitimizes the change • Sustaining Sponsor – Represents the executive sponsor • Change Agent – Sees the need for change but can not legitimize it • Stakeholder – Supports the change • ( in beliefs, skills, behaviors, etc) Executive Sponsor • Has ultimate authority over and responsibility for the project • Has a vested interest in project resourcing and project results • Manages organizational expectations • Provides high level direction • May delegate day to day involvement to a sustaining sponsor Sustaining Sponsor • Acts as appointed representative of the Executive Sponsor( ensure formal appointment) • Participates frequently with the project team • Interacts with local Stakeholder groups • Shares duties with the Executive Sponsor • Brings changes to the Executive Sponsor for review and / or approval Characteristics of Successful Sponsors • HEAD – – – – Clear understanding of business case for change Clear understanding of changes impact Aware of own personal power to make change Realistic understanding of organizations true capability to reach desired level of change • Hands – – – – – Initiates objectives, goals, deliverables and scope of the project Maintains validity of business case until change conclusion Displays strong public and private support for change approves work plans and activities Defines roles/ responsibilities for project teams • Heart – – – – Believes in change communicates with others to help them understand how change will impact them Motivates and rewards change supporters Builds and environment to reduce change resistance. Change Agent • Anticipates who will lose what – predicts resistance points • Plans for the resources people will need to successfully change • Effectively communicates the what , when, why and how of the change • Creates a change -monitoring system to check whether plans are being put into action • Prepares to facilitate the change rather than just make the change happen • Looks at how he / she will need to change to work effectively in the new system. Stakeholders • All those who will be affected by the change and / or whose active support , commitment and behavior change are required for successful implementation and sustained change 3.Stages of Change What to Expect from Change • No matter how positive , promising or proactive the change is, expect a sense of loss • No matter how competent and comitted stakeholders are , expect a sense of confusion • No matter how loyal employees are, expect some initial skepticism and an increase in “me” focus “Positive” Response to Change Hopeful Realism Informed Pessimism (Doubt) (Hope) Informed Optimism (Confidence) Uniformed Optimism Completion (Certainty) (Satisfaction) Responses to Change “Negative Responses to change” Active R e s i Stability s Denial t a Immobilization n c e Passive Acceptance Anger Bargaining Testing Depression Time Individual Change Response P r o d u c t i v i t y Denial Resistance Commitment Exploration Adapted from Kubler -Ross Recognizing the Individual Change Response P r o d u c t i v i t y Denial Commitment What you Hear What you see Indifference Disbelief Silence What you See It will never happen Future Orientation It wont affect me Avoidance Initiative What you hear How can I contribute Lets get on with it Self-efficiency Confidence What you see What you see What you Hear Energy What you hear Anger It wont work Optimism Complaining It used to be… Risk taking Tentativeness Glorifying the past The data is flawed.. Skepticism Unwillingness to participate Resistance Impatience Activity without focus I’ve got an idea Lets try… What if …. Exploration Adapted from Kubler -Ross Individual Change Process • By Definition, Individuals will move through the process at different speeds • Your role is to effectively maximize the speed through the change process, reducing the time spent in Denial and Resistance Summary • There are four typical stages of change – – – – Denial resistance Exploration Commitment • all these stages are normal and expected • Be sure to plan for and manage all stages, especially Resistance. Remember….. • “Its not so much that we’re afraid of change, or so in love with the old ways , but it’s a place in between we fear…it’s like being in between trapezes ….there’s nothing to hold on to.” 4. Managing Resistance • Resistance is a Normal Reaction to Disruption and Real or Perceived Loss Question? • What resistance to change have you encountered in the past ? Sources of Resistance • Aptitude – Is unable to make the change • attitude – Doesn’t want to make the change • Threshold for Change – Doesn’t have the “energy” to make the change Sources of Resistance: Aptitude Individual Abilities See change as more work Fear inability to develop the new skills required Don’t understand what it will take to be successful in the future state Low Tolerance for Change Fear the unknown Don’t want to accept the death of the old ways ( preservation of the past) Have “scars”from prior changes Sources of Resistance: Attitude Lack of Motivation Don’t see the need for change A compelling vision has not been presented No positive consequences for changing Perceive costs greater than benefit Differing Assessments Change initiators usually have more information than stakeholders Those affected may not see the “Big Picture” therefore the change does not make sense The Faces of Resistance Not Enough Time Anger Attack Silence Withdrawal Endless Questions Details Details Details Intellectualizing Going Through The motions Ignore IT Deny It Glorify the Past Confusion Just don’t want To Get It Faces Of Resistance Active Passive Because it is out in the open, active resistance is more constructive and easier to manage than its underground counterpart When resistance is Hidden, it can go unnoticed and undermine efforts to transform an organisation Faces of Resistance • Active – – – – Deliberate opposition Hostility Agitating others Failing to report problems – Problem denial – Chronic quarrels – “This won’t work” • Passive – Withholding info – Procrastination/ Delays – No confrontation, but still no productivity – Not attacking solution, but not supporting either – Over-complicating the new way – “We’ve always don it this way Managing Resistance Apply the appropriate level of involvement given the degree of change Involve Chaos Include Degree of Involvement Best case Consult Major road blocks Inform Fine tuning Degree of Change Major Transformation Managing Resistance: Aptitude • Identify needed Knowledge and skills • Provide a training / development program • Create opportunities to practice without consequences • Reward demonstrations of new abilities • Mentor and model desired behaviors and skills • Monitor workloads to ensure they remain realistic Managing Resistance: Attitude • Ensure people understand why change is needed- the business case for change • Put the change into the context of the “ Big Picture” link it to other changes • Convey a compelling vision for the future • If possible, personalize benefits of the change • Establish rewards, recognition, incentives and performance objectives that support change objectives Managing Resistance: Raising Thresholds for Change • Communication – Preview, view and review – Ensure regular, timely information distribution – Communicate with the audiences “needs” in mind – Clarify what is not changing along with what is • Participate – Involve people in decision making – Seek out and use ideas and opinions Raising Thresholds for Change • Facilitate ( Change) – Understand People • Find out how people are doing along the way, not just at the end • Provide opportunities for two way communication and “Venting” • Don’t just hear Listen! – Find supporting people • Leverage the help of those who commit early • Create a change infrastructure. Stakeholder: A Definition One who will be affected by the change and / or whose active support, commitment and behavioral change are required for successful implementation and sustained change Stakeholders Involvement Strategies Level of Change and Commitment Required Inform Provide the stakeholder with information on a need to know basis only Consult Include Occasionall y obtain the stakeholders input, advice and expertise Include the stakeholder in the project by giving him / her a support role and / or making him / her project champion Involve Actively involve the stakeholder in the project, role in decision making Facilitating The Individual Change Response Denial P r o d u c t i v i t y Commitment Provide frequent consistent messages Provide guidance, support and recognition Confront without threatening Provide frequent feedback on progress Demonstrate visible signs of change Clarify what is and what is not changing Address rumors and misinformation Probe for underlying feelings/ concerns Acknowledge and legitimize feelings Clarify case for change( vision, plan) Enroll those here as advocates to assist others Be careful not to overload or burn out Acknowledge efforts and the struggle Celebrate success Provide opportunities for visible advocacy Provide opportunities for participation and contribution Listen Relate expectations and consequences for non compliance Resistance Exploration Adapted from Kubler -Ross Facilitative Techniques P r o d u c t i v i t y Denial Communicate & Clarify Educate & Re-emphasize Resistance Commitment Acknowledge & Advocate Facilitate & Encourage Exploration Adapted from Kubler -Ross Summary • Resistance is a normal response to change • There are many different displays of resistance • Encourage expression of resistance; get it out in the open • Help move people toward exploration and commitment in order to minimize resistance and productivity loss • Choose suitable strategies to deal with group and individual responses: customize plans What is Change Communication • Introduces, educates and informs target audiences, both internally and externally, about change efforts. • Creates awareness, understanding and dialogue among stakeholders • Establishes the message, channels and ongoing feedback processes between management, employees, customers and suppliers Goals of Change Communication • • • • • • Move people toward commitment Help people make informed choices Build trust through honesty and openness Demonstrate empathy Seek to understand Report progress-or lack of-so people can be responsible contributors to success 5 Key Communication Points Rationale Why the change is occurring Vision What the organization will look like in the future Plan How and when the organisation plans to make these changes WIIFM Resources Why they should support the change Who is supporting the change, sponsors, change agents Frame of Reference A personal frame is made up of assumptions about self, others, tasks, and the organization that lead a person to behave in a particular way “A common trap managers and executives get caught in comes from attributing one’s own perceptions, values, feelings and needs to other people. In other words, we often assume people are made like ourselves” From “making mergers work” By Price Pritchett Two Way Communication • Ensures that both parties have the same understanding of a situation • Reduces misunderstandings • Provides a vehicle to build trust and demonstrate empathy Communication Channels A communication channel is a means by which information goes from one party to another • • • • • • • • • E-mail Business Monday Company magazines News letters Press release All employees meetings Posters Hotlines Staff meetings • • • • • • • • • Voice mails Focus groups Bulletin boards Home mailings Network broadcasts Video/DVD Letters from CEO Internet Paycheck stuffers Communicating to Build Commitment D e g r e e o f s u p p o r t Awareness of change Contact Memo Video meeting Time Developing a Communication Plan Myths about Change Communication • What others don’t know can’t hurt you-the rumor mill will fill in what you don’t explain • You can control what people will perceive • Understanding can be developed simply by broadcasting information • Giving people information will lessen the impact of the change • Communication stays the same over the life of the project-same messages same media • One size fits all Principles of Change Communication • Communicate, communicate, communicate • Align communication to the business case and vision for change • Communication must be: – Consistent – Frequent – Tailored to the stackholder group • Use varied, but existing channels to communicate to stackholders What is Performance Management A method to link employees actions and behaviours to company strategies and goals using systems that define, monitor, measure, report on, improve and reward desired employee performance What is Performance Management • A method to Link employee actions and behaviors to company strategies and goals using systems that define, monitor, measure, report on, improve and reward desired employee performance Why is Performance Management Important in successful Change Implementation • “ That which gets measured and rewarded gets done” • What are the new behaviours and performance standards? • How will we measure them? • How will we reward them? Principles of Performance Management • Performance standards are aligned with company strategies and goals • Metrics exist to monitor performance • Employees are provided with specific goals and actions to improve performance, on an on-going basis. Team based Structures Work Best When • People share common, clearly defined goals • Everyone on the team will benefit from achieving the goal • Different types of expertise and skill are needed to accomplish the goal • Tasks require interdependence and interaction • The organizations culture supports and values employee involvement • Managers are willing to use team output Team based structures are less effective when: • One person can be equally or more effective at the task • The task requires individual accountability and / or fast paced decision making • Work output required in a short time • Team members accountabilities and reward systems are different(especially when in conflict) • Not having the requisite interpersonal skills, or the energy or commitment to acquire them • Managers do not understand or support team process • Organization does not have value collaboration and will not reward people who share information, expertise or success. Factors in Effective Team Building • Coaching: – The team management philosophy requires that workers be trained to “ manage” themselves. Managers need to be coaches rather than “bosses” • Decision Making: – It must be made clear who has the responsibility and authority for which decisions, both inside and outside the team. Factors in Effective Team Building • Communicating: – Everyone needs to know what's happening, and clear mechanisms for communications must be in place • Chartering – Mission, Vision, Values – Ground rules – Roles and responsibilities Factors in Effective Team Building • Competencies: – – – – – – Teamwork Decisiveness Problem solving; conflict resolution Communication Project management Leadership