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. • You’ve 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 V’s competitors 62 • source:PriceWaterhouseCoopers

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 • 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

12. .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

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 Before Established systems Solidified culture High level of effectiveness • Organizational transformations can be disruptive 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. 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?

23. “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

24. 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.

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) • Participatesfrequently 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 Change“Negative 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-efficiency 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 I’ve 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 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.”

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 • Doesn’t want to make the change • Threshold for Change • Doesn’t 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 Don’t understand what it will take to be successful in the future state Fear the unknown Don’t want to accept the death of the old ways ( preservation of the past) Have “scars”from prior changes

46. Sources of Resistance: Attitude Lack of Motivation Differing Assessments Don’t 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 Going Through The motions Confusion Just don’t want To Get It 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. Active Deliberate opposition Hostility Agitating others Failing to report problems Problem denial Chronic quarrels “This won’t work” Passive Withholding info Procrastination/ Delays No confrontation, but still no productivity Not attacking solution, but not supporting either Over-complicating the new way “We’ve always don it this way Faces of Resistance

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