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Leading Through Organizational Change

  1. 1 Leading through Organisational Change Gunnar Jaschik
  2. 2 Introduction Gunnar Jaschik People & Change Expert, KPMG Singapore
  3. 3 SECTION 1 Setting the Stage
  4. 4 Warm-Up: Group Exercise Please discuss the following questions at your table: • What are some of the most challenging changes your organization is facing today? • What does good change management look like for you? • What are some of the key obstacles to successfully implementing change in your organization? Why does change initiatives fail?
  5. 5 Regulatory/Risk change Change is Situational Different types of changes require different approaches. There is no one-size-fits-all approach! 8 Most common change triggers: Technology Enabled Change M&A Industry or Market Shift Shared Services / Outsourcing Digital Revolution/Marketing Organisation Re-Design Lean
  6. 6 Risk of Poor Change Management 1. Desired change results are not met 2. Waste of time, money and resources 3. Diminishing morale and engagement 4. Change fatigue
  7. 7 Key Ingredients for Successful Change We can increase the chances for successfully managing change if we … 1. … get clarity on strategic objectives and priorities 2. … choose change battles purposefully & carefully 3. … aim to implement the best solution and be able to explain why 4. … pick a change approach which reflects our situation and change context
  8. 8 SECTION 2 Get Clarity on Strategic Objectives and Priorities
  9. 9 Examples of Strategic Change Objectives Financial Strategic Objectives Financial Growth: Increase revenue by 10% annually. Financial Efficiency: Decrease expenses by 5%. Customer/Constituent Strategic Objectives Current Customer: Achieve and maintain outstanding customer service. New Customer: Introduce existing products into a new market. Customer Service: Improve our service approach for all customers. Internal/Operational Strategic Objectives Operations Mngt: Increase community outreach. Technology Mngt: Increase efficiencies through use of wireless or virtual technology. Communication Mngt: Improve internal communications. Customer Mngt: To execute and maintain a CRM process that is producing results. People/Learning Strategic Objectives Training: To develop the leadership abilities and potential of our team. Culture: To align incentives and staff rewards with performance. Knowledge: To continually learn and adopt current best practices.
  10. 10 SECTION 3 Choose Change Battles Purposefully & Carefully
  11. 11 People Resist Change – Don’t They? What is often perceived as resistance to change is often a case of: • lack of clarity – what’s expected and why? • too many choices – decision paralysis • “Change Fatigue” – too many changes in too little time
  12. 12 The DICE Assessment* Score each of those elements on a scale from one to four and combine the weighted scores: Duration. The overall project time of the change initiative, or the time between learning milestones. The shorter, the better. Integrity of team performance (Score x2). The team’s ability to complete the initiative on time. Commitment (Score x2). The support for, and belief in, the initiative at the senior management level, and among the directly affected employees. Effort. The additional workload that affected employees must bear because of the change initiative. Every project will fall in one of three zones, indicating its likely outcome. 1. Score < 14: High likelihood of success; welcome to the Win Zone. 2. Score > 14: Concern over outcome’s likelihood; the initiative is in the Worry Zone. 3. Score > 17: Initiative unlikely to be successful; that’s the Woe Zone. 4. Score > 21: Companies must accept that the change project will most likely fail. * Developed by Boston Consulting Group
  13. 13 SECTION 4 Aim To Design The Best Solution and be Able to Explain Why!
  14. 14 Identify Bright Spots And Clone Them 1. Gather data on the issue. 2. Study the data to find the bright spots (the unusually positive performers). 3. Understand the “normal way” things are done. 4. Study the bright spots to see what they’re doing differently. 5. Make sure none of those practices are “exceptional” in some way. 6. Find a way to reproduce the practices of the bright spots among other people or parts of the organisation. Gather data on branch performance, staff etc. Which branches are performing well? What’s the “normal” setup of a branch? Layout, staff, customers etc. The most successful branches had a significantly higher percentage of part-timers who turned out to be mostly more senior. For instance, if one of the branches is located in an exceptionally wealthy area or has some other “unfair” advantage. Review recruitment, staffing and training for lower-performing branches. Based on: Switch (Heath Brothers)
  15. 15 The Lean Change Management Cycle Insights: Understand the current state of the organization. Options: Options have a cost, value and impact. Options usually include one or more hypotheses and expected benefits. Experiments: Now it’s time to introduce a change and see if it works out the way you thought it would. Prepare: This is the planning stage of your Experiment. Introduce: This is the step where you start working with the people affected by the change. Review: Here you review the outcomes of the Experiment. Typically you do this after the amount of time you thought would be needed for the change to stick. From: Lean Change Management (Jason Little)
  16. 16 SECTION 5 Pick a Change Approach which Reflects Our Situation and Change Context
  17. 17 The Stacey Model* *Based on: Stacey Ralph D. Strategic management and organisational dynamics: the challenge of complexity. Change strategies should be driven by what the organisation is trying to achieve Z ‘Co-creating’: methods and approaches that maximize the management of knowledge, resources, and the utilisation of passion and responsibility, ‘Selling’: buy-in strategies, change agents, persuasion negotiation, Real Time Strategic Change ‘Driving benefits realisation’: Rational decision making, classical project management, organisational development ‘Consulting’: Scenarios, leadership, intuition, learning organisations, systems thinking Close to certainty High uncertainty ClosetoagreementDisagreement 1 2 3 4 What is the level of alignment on the end state and commitment towards that end state? Stakeholder Analysis Vision for Change Change Risk Assessment Fit for purpose Change Approach & Plan Is the end state clear and road to achieve that end state predictable?
  18. 18 1. Driving benefits realisation For example: Workday or ERP implementation Change Approach and Plan The focus is normally on driving benefits realisation and full adoption by: • Articulating a very clear case for change • Being specific on what the different stakeholders in the organisation need to do differently • Providing the necessary training to ensure people are able to operate in the new world • Define the key measures of success and ensure that the changes are implemented in a sustainable way Close to certainty High uncertainty ClosetoagreementDisagreement ‘Driving benefits realisation’: Rational decision making, classical project management, organisational development 1 are the stakeholders aligned?
  19. 19 Z 2. Selling For example: the Board have decided they will create Global Business Services Change Approach and Plan The key to this situation is to engage with stakeholders as early as possible to ensure that their concerns are listened to and addressed. The focus is normally on: • Creating a change agents network • Stakeholder engagement • Running scenarios through the new solutions to demonstrate how it will work and test it against reality • Having clear and visible direction from the top. Show that ‘’We are behind this.’’ Close to certainty High uncertainty ClosetoagreementDisagreement are the stakeholders aligned? is the end-state solution clear? ‘Selling’: buy-in strategies, change agents, persuasion negotiation, Real Time Strategic Change 2
  20. 20 3. Consulting For example: ‘We need to innovate our products’ Change Approach and Plan The focus here is to facilitate an outside-in approach so that all angles are considered before a final solution is defined. Evidence-based approaches to articulate the vision are critical in these scenarios. The change management approach in these Situations is normally focussed on: • Building the right capabilities in the organisation • To define the future end-state • Bringing in external perspectives Close to certainty High uncertainty ClosetoagreementDisagreement are the stakeholders aligned? is the end-state solution clear? ‘Consulting’: Scenarios, leadership, intuition, learning organisations, systems thinking 3
  21. 21 4. Co-creating For example: a new strategic direction Change Approach and Plan The focus of change interventions in these situations is on engaging critical stakeholders early on, to achieve true co-creation of the end- state and alignment of intent. Bigger change collaboration events could be critical enablers for this. What normally doesn’t work in these scenarios is when a small taskforce develops the ‘perfect’ solution in a project room and expects it to be accepted by the organisation. The approach should be based on the principle of early engagement and agility. Close to certainty High uncertainty ClosetoagreementDisagreement are the stakeholders aligned? ‘Co-creating’: methods and approaches that maximize the management of knowledge, resources, and the utilisation of passion and responsibility, 4 is the end-state solution clear?
  22. 22 Some Key Principles of Most Change Strategies We have to… • … Communicate the threat of not changing. • … Involve people in decision making or solution design. • … Minimise uncertainty. • … Measure impact and celebrate successes while moving towards the goals. • … Keep communicating the reasons. • … Be as transparent as possible to avoid people assuming.
  23. 23 About Lee Hecht Harrison Lee Hecht Harrison helps companies simplify the complexity associated with transforming their leadership and workforce so they can accelerate results, with less risk. We do this by helping their employees navigate change, become better leaders, develop better careers, and transition into new jobs. As the world’s leading integrated Talent Development and Transition company, we have the local expertise, global infrastructure, and industry leading technology required to simplify the complexity associated with executing critical talent and workforce initiatives, reducing brand and operational risk. Teams in more than 60 countries around the world leverage our proven programs and global experience to deliver tailored solutions to clients that align talent with the needs of their business.
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