1. Change Management

2. Organizations do not change!
People Change………
One person at a time

3. 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?

4. Expectations
Identify 1 thing you expect to learn today?

5. 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

6. Its an era of change.
You’ve got to basically accept change as an everyday event and believe that it is a good thing!

7. “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

8. Why Change Fails Top barriers in major change programs
competing resources 48%
Functional boundaries 44
Lack of change skills 42
Middle management 38
Long IT lead times 35
Communication 34
Employee opposition ( resistance) 33
Initiative fatigue 32
Unrealistic timetables 31
source: PriceWaterhouseCoopers

9. Making Change Succeed
Factors that helped the most successful companies achieve their goals
Good communication %
Strong mandate by senior management 95
Setting intermediate goals and deadlines 95
Having an adaptive plan 91
Having access to adequate resources 86
Demonstrating urgency of change 86
Setting performance measures 81
Delivering early , tangible results( quick wins) 76
Involving customers and suppliers early 62
Benchmarking V’s competitors 62
source:PriceWaterhouseCoopers

10. 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)

11. 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

12. .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

13. 2.What are we changing to? Globally unified More efficient
More profitable
More customer focused

14. 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

15. 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

16. 5. What help do you need to support change?

17. 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.

18. Context for change ( is CTS alone?)
Companies must continually undergo organizational transformations to survive and grow
Organizational effectiveness
Time

19. Context for change Organizational transformations can be disruptive
Before
Established systems
Solidified culture
High level of effectiveness
Organizational effectiveness
During and After
Disruptions to leader ship & systems
Organizational nervousness
Reduced effectiveness
Transformation Point
Time

20. 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

21. Organizational Culture
Culture consists of the norms, values, beliefs, expectations, behaviors and assumptions that exist in an organization

22. 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?

23. “Corporate culture is real and powerful
“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

24. 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.

25. Change Roles and Responsibilities

26. Change Roles Executive Sponsorship Sustaining Sponsor Change Agent
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)

27. 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

28. 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

29. 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.

30. 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.

31. 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

32. 3.Stages of Change

33. 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

34. “Positive” Response to Change
Hopeful Realism
(Hope)
Informed Pessimism
(Doubt)
Informed Optimism
(Confidence)
Uniformed Optimism
(Certainty)
Completion
(Satisfaction)

35. Responses to Change “Negative Responses to change”
Acceptance
Active
Anger
Resistance
Bargaining
Stability
Denial
Testing
Immobilization
Depression
Passive
Time

36. Individual Change Response
Denial
Productivity
Commitment
Resistance
Exploration
Adapted from Kubler -Ross

37. Recognizing the Individual Change Response
Denial
Productivity
Commitment
What you Hear
Silence
It will never happen
It wont affect me
What you see
Indifference
Disbelief
Avoidance
What you See
Future Orientation
Initiative
Self-efficiency
Confidence
What you hear
How can I contribute
Lets get on with it
What you see
Energy
Risk taking Tentativeness
Impatience
Activity without focus
What you see
Anger
Complaining
Glorifying the past
Skepticism
Unwillingness to participate
What you Hear
It wont work
It used to be…
The data is flawed..
What you hear
Optimism
I’ve got an idea
Lets try…
What if ….
Resistance
Exploration
Adapted from Kubler -Ross

38. 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

39. 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.

40. 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.”

41. 4. Managing Resistance

42. Resistance is a Normal Reaction to Disruption and Real or Perceived Loss

43. Question?
What resistance to change have you encountered in the past ?

44. Sources of Resistance Aptitude attitude Threshold for Change
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

45. Sources of Resistance: Aptitude
Individual Abilities
Low Tolerance for Change
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
Fear the unknown
Don’t want to accept the death of the old ways ( preservation of the past)
Have “scars”from prior changes

46. Sources of Resistance: Attitude
Lack of Motivation
Differing Assessments
Don’t see the need for change
A compelling vision has not been presented
No positive consequences for changing
Perceive costs greater than benefit
Change initiators usually have more information than stakeholders
Those affected may not see the “Big Picture” therefore the change does not make sense

47. The Faces of Resistance
Not Enough Time
Anger Attack
Silence Withdrawal
Intellectualizing
Endless Questions
Going Through The motions
Confusion Just don’t want To Get It
Details
Ignore IT
Deny It
Glorify the Past

48. 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

49. Faces of Resistance Passive Active 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
Active
Deliberate opposition
Hostility
Agitating others
Failing to report problems
Problem denial
Chronic quarrels
“This won’t work”

50. Managing Resistance Chaos Degree of Involvement Best case
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
Major Transformation
Degree of Change

51. 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

52. 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

53. 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

54. 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.

55. 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

56. Stakeholders Involvement Strategies
Level of Change and Commitment Required
Include
Involve
Inform
Consult
Provide the stakeholder with information on a need to know basis only
Actively involve the stakeholder in the project, role in decision making
Occasionally 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

57. Facilitating The Individual Change Response
Denial
Commitment
Provide frequent consistent messages
Confront without threatening
Demonstrate visible signs of change
Clarify what is and what is not changing
Address rumors and misinformation
Productivity
Provide guidance, support and recognition
Provide frequent feedback on progress
Enroll those here as advocates to assist others
Be careful not to overload or burn out
Probe for underlying feelings/ concerns
Acknowledge and legitimize feelings
Clarify case for change( vision, plan)
Listen
Relate expectations and consequences for non compliance
Acknowledge efforts and the struggle
Celebrate success
Provide opportunities for visible advocacy
Provide opportunities for participation and contribution
Resistance
Exploration
Adapted from Kubler -Ross

58. Facilitative Techniques
Denial
Commitment
Productivity
Communicate & Clarify
Acknowledge & Advocate
Facilitate & Encourage
Educate & Re-emphasize
Resistance
Exploration
Adapted from Kubler -Ross

59. 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

60. 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

61. 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

62. 5 Key Communication Points
Why the change is occurring
Rationale
Vision
What the organization will look like in the future
How and when the organisation plans to make these changes
Plan
Why they should support the change
WIIFM
Who is supporting the change, sponsors, change agents
Resources

63. 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

64. “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

65. 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

66. Communication Channels A communication channel is a means by which information goes from one party to another
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

67. Communicating to Build Commitment
Degree of support
Awareness of change
Contact
Memo
Video
meeting
Time

68. Developing a Communication Plan

69. 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

70. 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

71. 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

72. 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

73. “ That which gets measured and rewarded gets done”
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?

74. 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.

75. 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

76. 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.

77. 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.

78. 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

79. Factors in Effective Team Building
Competencies:
Teamwork
Decisiveness
Problem solving; conflict resolution
Communication
Project management
Leadership