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 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?
 Expectations
• Identify 1 thing you
expect to learn today?
 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
• Its an era of change.
• You’ve got to basically
accept change as an
everyday event and
believe that it is a good
thing!
• “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
 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
 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 V’s competitors 62
» source:PriceWaterhouseCoopers
 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)
 1.Why is Change Necessary?
• To survive in today's changing market
– PCA’s 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
business’s
• Increase efficiency and customer
satisfaction and therefore profit
.CTS’s 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
 2.What are we changing to?
• Globally unified
• More efficient
• More profitable
• More customer focused
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
 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
5. What help do you need to support
change?
 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.
 Context for change ( is CTS alone?)
• Companies must continually undergo organizational transformations to
survive and grow

Organizational
effectiveness

Time
 Context for change
• Organizational transformations can be disruptive
Before
Established systems

Organizational Solidified culture

effectiveness High level of effectiveness

During and After

Disruptions to leader ship & systems
Transformation
Point Organizational nervousness
Reduced effectiveness

Time
 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
 Organizational Culture
• Culture consists of the norms, values,
beliefs, expectations, behaviors and
assumptions that exist in an organization
 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?
• “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 Uttal
– Corporate Culture Vultures
 Summary
• Companies that fail to change may not
survive
• By changing , CTS stand to gain
significantly in many areas, which will
benefit everyone
• CTS’s organizational culture may not be
“ideal” but understanding the current
culture will assist in helping make changes
that will positively affect it.
Change Roles and
Responsibilities
 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)
 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
 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
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.
 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.
 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
3.Stages of Change
 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
“Positive” Response to Change

Hopeful Realism
Informed (Hope)
Pessimism Informed Optimism
(Doubt) (Confidence)

Uniformed
Optimism Completion
(Certainty) (Satisfaction)
 Responses to Change
“Negative Responses to change”

Active Acceptance
Anger

R
e Bargaining
s
i Stability
s
t Denial
Testing
a Immobilization
n
c
e
Depression

Passive Time
 Individual Change Response
Denial
P Commitment
r
o
d
u
c
t
i
v
i
t
y

Resistance Exploration
Adapted from Kubler -Ross
 Recognizing the Individual Change Response

Denial
P Commitment
r What you see
What you Hear
What you See
o Indifference
Silence
What you hear
Future
d Disbelief
It will never happen
Orientation How can I contribute
u Avoidance
It wont affect me
Initiative Lets get on with it
c Self-efficiency
t Confidence
i What you see
v What you see What you Hear Energy What you hear
i Anger It wont work Risk taking Optimism
t Complaining It used to be… Tentativeness
I’ve got an idea
y Glorifying the The data is Impatience
Lets try…
past flawed.. Activity without
focus What if ….
Skepticism
Unwillingness
to participate Resistance Exploration
Adapted from Kubler -Ross
 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
 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.
 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.”
4. Managing Resistance
• Resistance is a Normal
Reaction to Disruption and
Real or Perceived Loss
 Question?
• What resistance to change have you
encountered in the past ?
 Sources of Resistance
• Aptitude
– Is unable to make the change
• attitude
– Doesn’t want to make the change
• Threshold for Change
– Doesn’t have the “energy” to make the change
Sources of Resistance: Aptitude

Individual Abilities Low Tolerance for Change

See change as more

Fear the unknown
work
Don’t want to accept the death of
Fear inability to
the old ways ( preservation of the
develop the new
past)
skills required
Have “scars”from prior changes
Don’t understand
what it will take to
be successful in the
future state
Sources of Resistance: Attitude
Lack of Motivation Differing Assessments

Don’t see the need for Change initiators usually

change have more information than
A compelling vision has stakeholders
not been presented Those affected may not see
No positive consequences the “Big Picture” therefore
for changing the change does not make
sense
Perceive costs greater
than benefit
 The Faces of Resistance

Not Enough Time

Anger Attack

Silence
Withdrawal Intellectualizing
Endless
Questions
Going Through Confusion Just
The motions don’t want To Get
Details It
Ignore IT
Details
Deny It
Details
Glorify the Past
 Faces Of Resistance

Active Passive

Because it is out in When resistance is

the open, active Hidden, it can go
resistance is more unnoticed and
constructive and undermine efforts to
easier to manage transform an
than its organisation
underground
counterpart
 Faces of Resistance
• Active • Passive
– Deliberate opposition – Withholding info
– Hostility – Procrastination/ Delays
– Agitating others – No confrontation, but
– Failing to report still no productivity
problems – Not attacking solution,
– Problem denial but not supporting
either
– Chronic quarrels
– Over-complicating the
– “This won’t work” new way
– “We’ve always don it
this way
 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
 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
 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
 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
 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”
• Don’t just hear Listen!
– Find supporting people
• Leverage the help of those who commit early
• Create a change infrastructure.
 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
Stakeholders Involvement Strategies
Level of Change and Commitment Required

Inform Consult Include Involve

Provide the Occasionall Include the Actively

stakeholder y obtain the stakeholder in involve the
with stakeholders the project by stakeholder in
information input, giving him / her the project,
on a need to advice and a support role role in
know basis expertise and / or making decision
only him / her project making
champion
Facilitating The Individual Change Response
Denial Commitment
Provide frequent consistent
P Provide guidance, support and
messages recognition
r Confront without threatening Provide frequent feedback on
o Demonstrate visible signs of progress
d change Enroll those here as advocates to
u Clarify what is and what is not assist others
changing
c Be careful not to overload or burn
Address rumors and out
t misinformation
i Probe for underlying feelings/
concerns Acknowledge efforts and the struggle
v
Acknowledge and legitimize Celebrate success
i feelings
t Provide opportunities for visible advocacy
Clarify case for change( vision,
y plan) Provide opportunities for participation and
contribution
Listen
Relate expectations and
consequences for non compliance
Resistance Exploration
Adapted from Kubler -Ross
 Facilitative Techniques
Denial Commitment
P
r
o Communicate Acknowledge &
d
u & Clarify Advocate
c
t
i
v
i
Facilitate &
Educate &
t Encourage
y Re-emphasize

Resistance Exploration
Adapted from Kubler -Ross
 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
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
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
 5 Key Communication Points
Rationale Why the change is occurring

Vision What the organization will look like in the future

Plan How and when the organisation plans to make

these changes

WIIFM Why they should support the change

Resources Who is supporting the change, sponsors, change

agents
 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
“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
 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
 Communication Channels
A communication channel is a means by which information
goes from one party to another
• E-mail • Voice mails
• Business Monday • Focus groups
• Company magazines • Bulletin boards
• News letters • Home mailings
• Press release • Network broadcasts
• All employees meetings • Video/DVD
• Posters • Letters from CEO
• Hotlines • Internet
• Staff meetings • Paycheck stuffers
Communicating to Build Commitment

D
e
g
r
e
e
o
f
s
u
p
p
o
r
Awareness of
t
change
Contact
Memo
Video
meeting Time
Developing a Communication
Plan
Myths about Change Communication
• What others don’t know can’t hurt you-the rumor
mill will fill in what you don’t 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
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
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
 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
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?
 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.
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
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.
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.
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
Factors in Effective Team Building
• Competencies:
– Teamwork
– Decisiveness
– Problem solving; conflict resolution
– Communication
– Project management
– Leadership