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Change Management.

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Presentation on theme: "Change Management."— Presentation transcript:

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

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