Change management So what is Change Management? ‘It isn’t the changes that are so difficult, it’s the transitions. Change is not the same as transition. Change is situational: the new site, the new boss, the new team roles, the new policy. Transition is the psychological process people go through to come to terms with the new situation. change is external, transition is internal.’ Source: Managing Transitions, Making the most of change William Bridges

You’ll never get me up on one of those butterfly things!

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The push / pull model of Leadership PushPull I am aware of myselfI am aware of you INTEGRITYINTEGRITY CONFIDENCECONFIDENCE thoughts, wants, feelings LOGICAL ARGUMENT  I make proposals  I state reasons  I state logical consequences ASSERTION  I state my needs or wants  I state my evaluations  I persist BUILDING BRIDGES  I recap what you say  I explore our views or feelings  I self-disclose ATTRACTION  I build on common ground  I create a vision

Change Management VisionSkillsIncentivesResourcesAction Plan Change Confusion Anxiety Gradual Change Frustration Not Implemented Skills Incentives Resources Vision Skills Incentives Action Plan

Change Impact! First Individual Impact Organization Impact Change will start with individual, and will cause a rippling effect in an organization.

Denial Internalisation Defence Discarding Adapting  ‘If it ain’t broke why fix it?’  ‘I’ve got too much to do’  ‘Why can’t I continue doing what I have always done?’  ‘If this is the new way of working then I don’t have to do X anymore.’  ‘Now I understand the actions that I must take to improve performance.’  ‘Actually this new system could be improved even further.’ Source: Carnall (1986) The change cycle Where are we today in the process of change ?

The core message PROCESSES SYSTEMS PEOPLE / TRAINING CHANGE IN ATTITUDES AND BEHAVIOURS Sustainable results How to communicate, manage and make decisions How did we perform today ? Capacity to plan, achieve, analyse and find some opportunities ‘‘do things differently’’ Continuous improvement

The road to change Goal target VISION First key steps Milestones - are we on target ?

“if you do not know where you are going, any road gets you there” What is your VISION Of the Future?

Sourcing-enabled change can be made to work if the conditions for change are positive… Need for change Ability to change Willingness to change Emotional / Personal cost Financial cost ++ + > The conditions for change: Applied to outsourcing and sourcing: Need for ChangeAbility to ChangeWillingness to changeCosts to Change New product or service requires new sourced services Increased focus on core competency Competitors are sourcing offshore Internal team cannot make the change Transition costs Increased management costs Reputation costs of an outsourcing project going wrong Personal costs of individuals impacted Increased politics Ability to re-draw the organizational boundary Access to a robust market for purchased services Knowledge and skills to “manage” rather than “do” Operations leadership Sourcing leadership Financial leadership Risk mgmt. leadership Executive sponsorship Customers Suppliers A framework for managing change…

Kotter’s 8 Stages of Change Management Increase Urgency Build the Guiding Team Get the Vision Right Communicate for Buy-In Empower Action Create Short Term Wins Don’t Let Up Make Changes Stick

Stage 1: Increase Urgency Raise a feeling of urgency so folks say- “let’s go”! What Works: Show others the need for change [use valid information and data] Never underestimate how much complacency, fear and anger may exist

Stage 2: Build the Guiding Team Form a group that has the capability to guide the change process What Works: Showing enthusiasm and commitment Modeling trust and teamwork

Team Functions Task Orientation – Set clear and simple goals. Roles - Assign a unique job to each team member. Share Ideas – Brainstorm methods Feedback – Share positive, frequent feedback on progress High Expectations – Challenge team members to produce the best work possible

Stage 3: Get The Vision Right Create the right vision and strategies to guide action What Works: Trying to see -literally- possible futures Vision so clear- it can be articulated in one minute or written on 1 page

Stage 4: Communicate for Buy-In Communicate change vision and strategies to create understanding and buy-in What Works: Keeping communication simple and heartfelt- not complex and technical Know what your folks are “feeling” Speak to anxieties, fear, confusion, anger

Communicating the Change Identify the what and why of the change. Target specific results. Don’t dump information on people. Welcome questions and feedback. Acknowledge the feelings associated with the change

Communication Tips Give constructive feedback. Be tolerant of mistakes. Praise in public, criticize in private. Once you've delegated, never take it back (except in impending disaster!)

Remember this… TELL ME I will forget SHOW ME I might remember INVOLVE ME I will never forget

Stage 5: Empower Action Deal effectively with obstacles that block action. What Works: Find folks with change experience who can state “we won and you can too”

Stage 6: Create Short-Term Wins Produce short-term wins to energize the change helpers, enlighten pessimists, defuse cynics and build momentum What Works: Early wins that come fast Wins that are visible to as many people as possible Wins that speak to powerful players whose support you need but do not yet have

Stage 7: Don’t Let Up Continue with wave after wave of change, not stopping until the vision is a reality What Works: Looking for ways to keep the urgency up As always- show ‘em, show ‘em, show ‘em

Stage 8: Make Change Stick Be sure the changes are embedded so that the new way of operating will stick What Works: Not stopping at Step 7- it isn’t over until the changes have roots

instead of waiting for someone to bring you flowers. Veronica A Shoffstall Plant your own garden, decorate your own soul,

Tanadi Santoso Chief Catalyst Officer Sam-Design PT. Kompakindo Media Dewata Kombes M Duriyat 39 Surabaya - tel: Plaza Lippo 12th Floor Jend. Sudirman Kav.25 Jakarta - Tel