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 ExpectationsIdentify 1 thing you expect to learn today?
5 Agenda Context for change Change roles and responsibilities Stages of changeManaging resistancestakeholder analysis and involvement planningChange management leverssponsorshipcommunicationPerformance managementOrganizational structureCapability developmentWorkforce transitionRisk 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 44Lack of change skills 42Middle management 38Long IT lead times 35Communication 34Employee opposition ( resistance) 33Initiative fatigue 32Unrealistic timetables 31source: PriceWaterhouseCoopers
9 Making Change SucceedFactors that helped the most successful companies achieve their goalsGood communication %Strong mandate by senior management 95Setting intermediate goals and deadlines 95Having an adaptive plan 91Having access to adequate resources 86Demonstrating urgency of change 86Setting performance measures 81Delivering early , tangible results( quick wins) 76Involving customers and suppliers early 62Benchmarking V’s competitors 62source: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 marketPCA’s can be seen / treated as a commodityTo keep up with changing customer needs, such as build to order, immediate deliveryTo achieve our goal of leading the sector of low to mid-volume / high mix EMS business’sIncrease efficiency and customer satisfaction and therefore profit
12 .CTS’s Key ObjectivesDevelop strategic relationships with key customersProvide best in class product and process qualityCreate world class manufacturing processesDevelop strategic supplier relationshipsBecome employer of choice
13 2.What are we changing to? Globally unified More efficient More profitableMore customer focused
14 3.How do we intend to get there? Through Implementation of key strategies such as:Supply chain managementCore teamsSix-SigmaLean ManufacturingInter Company Benchmarking
15 4.What is the personal Impact? More successful company which can invest in its resourcesIncreased stock value and profit sharingEmployer of choice talented, challenging co-workers.Working for a globally recognized industry leaderMore enjoyable work enviroment
17 5.Help is available to Support Change! Training classes for you and managersIncreased corporate-wide communicationVisible senior management supportChange infrastructure built around projectsNew, consistent vocabulary to talk about change.
18 Context for change ( is CTS alone?) Companies must continually undergo organizational transformations to survive and growOrganizational effectivenessTime
19 Context for change Organizational transformations can be disruptive BeforeEstablished systemsSolidified cultureHigh level of effectivenessOrganizational effectivenessDuring and AfterDisruptions to leader ship & systemsOrganizational nervousnessReduced effectivenessTransformation PointTime
20 The Transformation Point Low stability: high chaosHigh emotional stressControl becomes a major issueHigh undirected energyGlorifying the pastConflict increasesResistance 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 UttalCorporate 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 everyoneCTS’s organizational culture may not be “ideal” but understanding the current culture will assist in helping make changes that will positively affect it.
26 Change Roles Executive Sponsorship Sustaining Sponsor Change Agent Legitimizes the changeSustaining SponsorRepresents the executive sponsorChange AgentSees the need for change but can not legitimize itStakeholderSupports the change( in beliefs, skills, behaviors, etc)
27 Executive SponsorHas ultimate authority over and responsibility for the projectHas a vested interest in project resourcing and project resultsManages organizational expectationsProvides high level directionMay delegate day to day involvement to a sustaining sponsor
28 Sustaining SponsorActs as appointed representative of the Executive Sponsor( ensure formal appointment)Participates frequently with the project teamInteracts with local Stakeholder groupsShares duties with the Executive SponsorBrings changes to the Executive Sponsor for review and / or approval
29 Characteristics of Successful Sponsors HEADClear understanding of business case for changeClear understanding of changes impactAware of own personal power to make changeRealistic understanding of organizations true capability to reach desired level of changeHandsInitiates objectives, goals, deliverables and scope of the projectMaintains validity of business case until change conclusionDisplays strong public and private support for changeapproves work plans and activitiesDefines roles/ responsibilities for project teamsHeartBelieves in changecommunicates with others to help them understand how change will impact themMotivates and rewards change supportersBuilds and environment to reduce change resistance.
30 Change Agent Anticipates who will lose what predicts resistance pointsPlans for the resources people will need to successfully changeEffectively communicates the what , when, why and how of the changeCreates a change -monitoring system to check whether plans are being put into actionPrepares to facilitate the change rather than just make the change happenLooks at how he / she will need to change to work effectively in the new system.
31 StakeholdersAll 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
33 What to Expect from Change No matter how positive , promising or proactive the change is, expect a sense of lossNo matter how competent and comitted stakeholders are , expect a sense of confusionNo 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” AcceptanceActiveAngerResistanceBargainingStabilityDenialTestingImmobilizationDepressionPassiveTime
36 Individual Change Response DenialProductivityCommitmentResistanceExplorationAdapted from Kubler -Ross
37 Recognizing the Individual Change Response DenialProductivityCommitmentWhat you HearSilenceIt will never happenIt wont affect meWhat you seeIndifferenceDisbeliefAvoidanceWhat you SeeFuture OrientationInitiativeSelf-efficiencyConfidenceWhat you hearHow can I contributeLets get on with itWhat you seeEnergyRisk taking TentativenessImpatienceActivity without focusWhat you seeAngerComplainingGlorifying the pastSkepticismUnwillingness to participateWhat you HearIt wont workIt used to be…The data is flawed..What you hearOptimismI’ve got an ideaLets try…What if ….ResistanceExplorationAdapted from Kubler -Ross
38 Individual Change Process By Definition, Individuals will move through the process at different speedsYour 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 DenialresistanceExplorationCommitmentall these stages are normal and expectedBe 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.”
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 changeattitudeDoesn’t want to make the changeThreshold for ChangeDoesn’t have the “energy” to make the change
45 Sources of Resistance: Aptitude Individual AbilitiesLow Tolerance for ChangeSee change as more workFear inability to develop the new skills requiredDon’t understand what it will take to be successful in the future stateFear the unknownDon’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 MotivationDiffering AssessmentsDon’t see the need for changeA compelling vision has not been presentedNo positive consequences for changingPerceive costs greater than benefitChange initiators usually have more information than stakeholdersThose affected may not see the “Big Picture” therefore the change does not make sense
47 The Faces of Resistance Not Enough TimeAnger AttackSilence WithdrawalIntellectualizingEndless QuestionsGoing Through The motionsConfusion Just don’t want To Get ItDetailsIgnore ITDeny ItGlorify 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 counterpartWhen resistance is Hidden, it can go unnoticed and undermine efforts to transform an organisation
49 Faces of Resistance Passive Active Withholding info Procrastination/ DelaysNo confrontation, but still no productivityNot attacking solution, but not supporting eitherOver-complicating the new way“We’ve always don it this wayActiveDeliberate oppositionHostilityAgitating othersFailing to report problemsProblem denialChronic quarrels“This won’t work”
50 Managing Resistance Chaos Degree of Involvement Best case Apply the appropriate level of involvement given the degree of changeInvolveChaosIncludeDegree of InvolvementBest caseConsultMajor road blocksInformFine tuningMajor TransformationDegree of Change
51 Managing Resistance: Aptitude Identify needed Knowledge and skillsProvide a training / development programCreate opportunities to practice without consequencesReward demonstrations of new abilitiesMentor and model desired behaviors and skillsMonitor workloads to ensure they remain realistic
52 Managing Resistance: Attitude Ensure people understand why change is needed- the business case for changePut the change into the context of the “ Big Picture” link it to other changesConvey a compelling vision for the futureIf possible, personalize benefits of the changeEstablish rewards, recognition, incentives and performance objectives that support change objectives
53 Managing Resistance: Raising Thresholds for Change CommunicationPreview, view and reviewEnsure regular, timely information distributionCommunicate with the audiences “needs” in mindClarify what is not changing along with what isParticipateInvolve people in decision makingSeek out and use ideas and opinions
54 Raising Thresholds for Change Facilitate ( Change)Understand PeopleFind out how people are doing along the way, not just at the endProvide opportunities for two way communication and “Venting”Don’t just hear Listen!Find supporting peopleLeverage the help of those who commit earlyCreate 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 RequiredIncludeInvolveInformConsultProvide the stakeholder with information on a need to know basis onlyActively involve the stakeholder in the project, role in decision makingOccasionally obtain the stakeholders input, advice and expertiseInclude 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 DenialCommitmentProvide frequent consistent messagesConfront without threateningDemonstrate visible signs of changeClarify what is and what is not changingAddress rumors and misinformationProductivityProvide guidance, support and recognitionProvide frequent feedback on progressEnroll those here as advocates to assist othersBe careful not to overload or burn outProbe for underlying feelings/ concernsAcknowledge and legitimize feelingsClarify case for change( vision, plan)ListenRelate expectations and consequences for non complianceAcknowledge efforts and the struggleCelebrate successProvide opportunities for visible advocacyProvide opportunities for participation and contributionResistanceExplorationAdapted from Kubler -Ross
59 Summary Resistance is a normal response to change There are many different displays of resistanceEncourage expression of resistance; get it out in the openHelp move people toward exploration and commitment in order to minimize resistance and productivity lossChoose 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 stakeholdersEstablishes the message, channels and ongoing feedback processes between management, employees, customers and suppliers
61 Goals of Change Communication Move people toward commitmentHelp people make informed choicesBuild trust through honesty and opennessDemonstrate empathySeek to understandReport progress-or lack of-so people can be responsible contributors to success
62 5 Key Communication Points Why the change is occurringRationaleVisionWhat the organization will look like in the futureHow and when the organisation plans to make these changesPlanWhy they should support the changeWIIFMWho is supporting the change, sponsors, change agentsResources
63 Frame of ReferenceA 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 CommunicationEnsures that both parties have the same understanding of a situationReduces misunderstandingsProvides 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 anotherBusiness MondayCompany magazinesNews lettersPress releaseAll employees meetingsPostersHotlinesStaff meetingsVoice mailsFocus groupsBulletin boardsHome mailingsNetwork broadcastsVideo/DVDLetters from CEOInternetPaycheck stuffers
67 Communicating to Build Commitment Degree of supportAwareness of changeContactMemoVideomeetingTime
69 Myths about Change Communication What others don’t know can’t hurt you-the rumor mill will fill in what you don’t explainYou can control what people will perceiveUnderstanding can be developed simply by broadcasting informationGiving people information will lessen the impact of the changeCommunication stays the same over the life of the project-same messages same mediaOne size fits all
70 Principles of Change Communication Communicate, communicate, communicateAlign communication to the business case and vision for changeCommunication must be:ConsistentFrequentTailored to the stackholder groupUse 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 goalsMetrics exist to monitor performanceEmployees 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 goalsEveryone on the team will benefit from achieving the goalDifferent types of expertise and skill are needed to accomplish the goalTasks require interdependence and interactionThe organizations culture supports and values employee involvementManagers are willing to use team output
76 Team based structures are less effective when: One person can be equally or more effective at the taskThe task requires individual accountability and / or fast paced decision makingWork output required in a short timeTeam members accountabilities and reward systems are different(especially when in conflict)Not having the requisite interpersonal skills, or the energy or commitment to acquire themManagers do not understand or support team processOrganization 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 placeCharteringMission, Vision, ValuesGround rulesRoles and responsibilities
79 Factors in Effective Team Building Competencies:TeamworkDecisivenessProblem solving; conflict resolutionCommunicationProject managementLeadership