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Change Management

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Change Management Organizations do not change! People Change One person at a time Common Experience with Change What is the biggest experience of change you ... – PowerPoint PPT presentation

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Title: Change Management


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.
  • Youve 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 100
  • 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 Vs competitors 62
  • sourcePriceWaterhouseCoopers

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
  • PCAs 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 businesss
  • Increase efficiency and customer satisfaction and
    therefore profit

12
.CTSs 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?
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
ExerciseWhat do you think?
  • How do you think CTSs 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. Its
    also hard to change, and you wont 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
  • CTSs 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
  • 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 ChangeNegative 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-ef
ficiency 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 Ive 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 were afraid of change, or
    so in love with the old ways , but its a place
    in between we fearits like being in between
    trapezes .theres 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
  • Is unable to make the change
  • attitude
  • Doesnt want to make the change
  • Threshold for Change
  • Doesnt 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 Dont understand what it
will take to be successful in the future state
Fear the unknown Dont want to accept the death
of the old ways ( preservation of the past) Have
scarsfrom prior changes
46
Sources of Resistance Attitude
Lack of Motivation
Differing Assessments
Dont 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
Confusion Just dont want To Get It
Going Through The motions
Details Details 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
  • Withholding info
  • Procrastination/ Delays
  • No confrontation, but still no productivity
  • Not attacking solution, but not supporting either
  • Over-complicating the new way
  • Weve always don it this way
  • Active
  • Deliberate opposition
  • Hostility
  • Agitating others
  • Failing to report problems
  • Problem denial
  • Chronic quarrels
  • This wont work

50
Managing Resistance
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
  • Dont 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 Acknowledg
e 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 ones 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 ChannelsA communication channel is
a means by which information goes from one party
to another
  • E-mail
  • 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 dont know cant hurt you-the rumor
    mill will fill in what you dont 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
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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