ASIL DCC Methodology

1
Driving Complex Change
Presented by Michael Vigil Exec VP, Operations
2
Winds Of Change
Outsourcing
Downsizing
Management Change
Merger
Attrition
Audit Findings
System Implementation
New Support Structure
New Product Release
New Processes
Reorganization
Cost Reductions
Acquisition
There are many reasons why change occurs in the
business world.
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Change Must Be Transparent To Customers
Customer A
Customer C
Customers should only see the benefits of change,
not any turmoil associated with change. Customer
Satisfaction and future revenue opportunities
depend on smooth transitions during major change
initiatives.
Customer B
Reorganization
Downsizing
Outsourcing
New Support Structure
Merger
Attrition
Audit Findings
Management Change
System Implementation
New Product Release
Cost Reductions
4
Challenges of Change
Slow Change
Chaos
Anxiety
False Starts
Confusion
Missed Expectations
Frustration
Resentment
Finger Pointing
Missed Opportunity
Inability to Implement Change
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The Consultant Factor
Call in a Consultant The Pros

• Brings knowledge, process and tools with them
• Instantly adds manpower where needed
• Can scale as needed to address your specific
  needs

Call in a Consultant The Cons

• - Expensive Expensive Expensive
• Usually requires time for your team to bring the
  consultants up to speed
• Gained knowledge and skills leave when the
  consultant leaves

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Its Not Magic
Successful change requires

• Focus
• Clarity
• Participation
• Commitment
• Execution

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Life Cycle of Change
Vision
Mission
Strategies To support the Mission to achieve The
vision

• Goals
• Customer Sat.
• Cost Performance
• Delivery (on time)
• Quality
• Asset Performance

• Measures
• Key Performance
• Indicators
• Defining the critical
• few

• Score Carding
• (For People/Process/Provider)
• Integrated goals and measures
• Weighted distribution
• Confidence limits
• Dashboard Oriented
• Trended Performance

• Corrective Action
• Assessments
• Planning
• Budgets
• Auto Alerts (red)
• CAR Database
• Closed Loop Process
• Scorecard Interacttm
• Trended Performance
• Dashboard Oriented

• Reporting
• Presentation
• Frequency
• Exception Based
• Dashboard Oriented
• Trended Performance

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Driving Complex Change tm
tm
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Driving Complex Change tm
10
Elements Aligned
Potential for Effective Change
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Direction

• Do you have an agreed upon Vision and strategies
  defined to support change?
• Do you have Executive Stakeholder alignment and
  support?
• Do your strategies map to your Customer Value
  Proposition?
• Do you have a cross-functional team to lead this
  effort?
• Will this decision increase shareholder value?

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Direction
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Ability

• Do you have a process to understand and identify
  your core competencies?
• Do your core competencies support your Customer
  Value Proposition?
• Are your non-core competent areas well defined
  and measured for results?
• Do your core competencies tie to your capital
  investment strategies?
• Do you have a change plan for your non core
  competency areas?

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Ability
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Incentive

• Have you defined the goals and objectives for
  this effort?
• Are these goals and objective measurable and
  achievable?
• Do you have an internal reward system in place to
  support desired outcomes?
• Do you have a predictable and sustainable
  measurement and reporting process?
• Do you have an external reward system in place to
  support desired outcomes?

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Incentive
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Resources

• Have you established a plan detailing all
  required resources? (Headcount, Capital, etc.)
• Has your resource plan been approved by the
  Executive Stakeholders and is it being funded in
  the current budget?
• Do you have the tools and skills to manage the
  resources for this effort?
• Do you have a mechanism in place for
  communication and status reporting activities?
• Are the resources available for the timeframe
  that you require?

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Resources
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Structure

• Do you have a documented Quality Management
  System in place for all key processes and
  procedures?
• Do you have a Service Level Agreement (SLA) with
  your internal service providers? (ex. IT)
• Do you have a thorough understanding of the
  processes that you are considering for change?
• Is todays process measured, goaled and rewarded
  based on performance?
• Do you have a documented information flow for
  systems capture?

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Structure
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Action

• Is your project approved, funded, and resourced?
• Do you have a communication strategy to manage
  stakeholder expectations?
• Do you have a process to manage shortfalls,
  issues, and escalations?
• Do you have the program management skills
  resources to deliver this effort?
• Do you thoroughly understand the enabler
  processes required to obtain and utilize the
  project resources? (Capital Equipment, H/C, IT
  development, funding, etc.)

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Action
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Driving Complex Change tm
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Direction Question
Do you have Executive Stakeholder alignment and
support?
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Direction Question
Do you have Executive Stakeholder alignment and
support?
Observations
Confirmation that you are on track with this
item Definition of what alignment and support
means - Defined and agreed upon Vision,
Strategies, Plan, and Budget - Clear
communication and reporting channels -
Understanding measurement for success
Recommendations
Update Executive Stakeholders on progress versus
plan, goals, etc Monitor sign off process Track
costs against planned spend Validate
communication plan
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Direction Question
Actions
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Direction Question
Do you have Executive Stakeholder alignment and
support?
Observations
Alert that you may have a business exposure
related to this item Description of why you may
have a business exposure Definition of what
alignment and support means
Recommendations
Meet with Executive Stakeholders to gain
perspective Assess current state and determine
where gaps exist Resolve gaps and drive for Exec
Stakeholder alignment Keep Exec Stakeholder
updated Closely follow signoff process Track
costs against planned spend Validate
communication plan
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Actions
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tm
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Summary

• Change is ever present
• Effective change management is not magic
• Six key elements must be assessed
• Observations, Recommendations, Actions
• Self Assessment, knowledge is reusable
• Driving Complex Change tm measures change
  readiness

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Questions and Wrap Up

• ASIL, Inc.
• 2901 Tasman Drive, Suite 117
• Santa Clara, CA 95054
• [phone]
• Michael Vigil
• Exec VP, Operations, mvigil_at_asil-inc.com
• Pete Pazmany
• CEO, ppazmany_at_asil-inc.com