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„Change to S urvive , C hange to W in“

„Change to S urvive , C hange to W in“. Anna Hudáková President of HR Association , Slovakia. Anna Hudáková President HR Association , since 2003 Consultant Career history : Historian : Eastern Slovakia Museum , History of Sport After 1989: Sales Manager Coca Cola Amatil

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„Change to S urvive , C hange to W in“

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  1. „Change to Survive, Change to Win“ Anna HudákováPresidentof HR Association, Slovakia

  2. Anna Hudáková President HR Association, since 2003 Consultant Careerhistory: Historian: Eastern Slovakia Museum, HistoryofSport After 1989: SalesManagerCocaColaAmatil HR DirectorCocalColaAmatil HR DirectorforCzech and Slovak republics, Reemtsma, tobacco Chief HR Officer, Boardmember, Slovak Telekom Introduction

  3. downsizing • governance • risk • industrial relations • social partners • innovation and technology • regulation • operation • strategy and growth • sustainability and climate change BusinessChallenges global financial and economic crises efficiency proactivity competition fast changing environment performance improvement talent war / talent management globalisation creativity and preserving value leadership

  4. There is only one thing constant in business...

  5. CHANGE

  6. CHANGE MANAGEMENT Transition Management Relationship Management Change Leadership and Organizational Development Negotiation and Conflict Resolution

  7. The change curve COMMITMENT/ EXCITEMENT „I believe in this“ „I´m living and breathing it“ SATISFACTION/ COMPLACEMENT „This has nothing to do with me“ ENTHUSIASM/ HOPE „I´m making a difference“ „I want to do this“ DENIAL/ REJECTION „Why change anyway?“ „I am already doing a good job“ ACCEPTANCE/ CURIOSITY „I´ve had my challenge to contribute“ „I know my role in this“ „I´ve got the right tools to do it“ ANGER/ RESISTANCE „I don´t believe in this“ „No one has explained why this is right“ UNDERSTANDING/ AMBIVALENCE „I know why it´s happening“ „I´ve seen examples“ ANGER „I disagree with what is happening“ I have another agenda“ AWARENESS „I have been told what this is“ ANGER ENGAGED

  8. Eight Step Process of Successful Change (Kotter) Set the Change 1. create a sense of urgency 2. pull together the Guiding Team – identification of powerful group – opinion leaders, change ambassadors Decide What To Do 3. develop the change vision and strategy, clarify how future will be different from past, how can you make that future a reality

  9. Eight Step Process of Successful Change (Kotter) • Make it happen • 4. communicate the understanding and buy-in-vision and strategy • acceptance and understanding • 5. empowerment others to act – remove barriers • 6. produce short term wins – create visible unambiouguous • success as soon as possible • 7. don´t let up – press harder and faster after the first success Author / Presentation title

  10. Eight Step Process of Successful Change (Kotter) Make it stick 8. Create a new culture – hold on to the new ways of behaving and make sure they succeed until they become strong enough to replace old tradition

  11. Steps After Realisation of Change • Customers and Shareholders – handling of the reaction to change • Thinking in Systems • Big System Changes – Pluses and Minuses Author / Presentation title

  12. Strategic partner Deutsche Telecom – 51% share Efficiency and productivity increase: Y 2000 – 12,345 employees Y 2002 – 8,075 employees Y 2004 – 5,659 employees Y 2006 – 4,016 employees Y 2008 – 3,704 employees New strategy, vision, values New products & services Liberalization of the telecommunications market, competitive environment, fixed to mobile substitution Customer orientation New strategy of marketing & sales New telecommunications technologies Rebranding - new brand in 2004 and in 2006 NGN implementation Broadband and IPTV Main attribute: CHANGE Changes in Slovenské Telekomunikácie/ Slovak Telecom / Slovak Telekom in Years 2000 - 2008 Reorganization & restructuring – from branches to centralized management TransformationeNGine 2004 - 2006 Saveforservice 2008 - 2010

  13. Revenue stabilization • Boosting broadband penetration • IT solutions • Business solutions Top-line growth Ongoing Transformation of ST A balanced mix of activities with impact on the top line and bottom line have to be accomplished in order to secure ST's transformation Key targets of the transformation • Broadband/NGN implementation • Network optimization • Triple Play Innovation and growth • Fault incidence • Provisioning times • Headcount reduction • Automation • Streamlining and simplification Efficiency Improvement

  14. To change thinkingA challenge of changing our own view from “inside-out” to “outside-in”:- listen to the Voice Of the Customer (VOC)- translate VOC intoour internal activities to align products, services, organization, procedures, people, communication … and remove non-value adding activities To involve peopleA challenge of involving people in situation when they may not see any reason for a change. How to increase awareness of the need? Who to involve at the beginning and how to develop a network of people willing to cooperate? How to make the transformation meaningful for them? How to make it a part of their daily life? To manage the scope of the programtransformation includes all areas of the business: how to integrate and simplify at the same time? How to ensure thorough execution of the projects and strategies? And, at the same time, to maintain and improve the market position, customers, financial results and the key people. Three major challenges of ST transformation

  15. Communicate Vision, Mission, Strategy and Values Define, communicate and implement general and specific ST-wide customer behaviour and communication standards, to support the main strategic objective Define, communicate, standardize defined leadership principles Focused management development according to leadership principles Define, communicate Code of ST employee Implementation of Code principles through inter-active activities with Management & employees Identify Key Players (experts and managers) crucial for ST current and future performance Define key competencies and follow-up with focused development and retention plans active activities with Management & employees Start-up the Performance Management system (payment for performance, rewarding for achievements) CultureChange Project Scope:

  16. SUPPORTMANAGERSto perform transformation via enlargement of change management portfolio through training, workshops, consulting, different tools and leadership development Consulting and SUPPORTING EMPLOYEES to become prepared for ST as NGO via introduction and communication of opportunities for new orientation in ST or outplacement, outsourcing and contracting externally and providing them with different targeted options and opportunities to get ready to master this challenges based on eNGine and personal needs. Establishing PROJECT MANAGEMENT Education & Communication as a tool for new organization and management of ST – to support integrative management approach in ST and support the company by transition from line oriented business to more and more cross-functional, project-oriented business Set upCOMMUNICATION ACTIVITIESvia internal communication channels in order to support the understanding of the changes, to increase cooperation and commitment of the managers and employees and to get a proper and objective feedback of the all activities and ensure the right action in the right moment eNGine for PeopleMajor subprojects:

  17. Changes in HR Management VISION, STRATEGY AND VALUES OF ST,. Remuneration Trainings and development Recruiting Performance Retention management Communication Employeesatisfaction Exit Management / Outplacement Organization

  18. Vision, strategy and values: Huge ongoing effort in communication of new vision, strategy and values, using all channels of internal communication, meetings, workshops, road-shows. Now new wave – Story Box – managers are communicating Strategy / Brand / Customer service/ Company Values. Remuneration: Unified system of remuneration based on individual and company performance with the aim to be externally competitive and internally fair. Training and Development: New centralized system of T&D – technical, managerial, personal, sales training , INGN competence centre.eLearning, etc

  19. Performance Management: Performance Management system based on individual and company performance – allemployees, Performance-Potential Review – all managers. Employee Satisfaction: Corporate Culture Change project, regular monitoring of employee satisfaction andfeedback from employees – Pulse check (2-3 months) Employee satisfaction survey (2 years) Organization: Centralization, restructuring, reorganization, redesign of processes, organization effectiveness and efficiency improvement, QualityManagement. Communication: Critical success factor in time of changes – workshops, meetings, road-shows, offlines, company magazine, intranet, company TV, blog etc.

  20. Retention: Key players project – HiPo, (High potentials), HiPro (High Professionals) Recruiting: New system for recruiting, more than 2500 new employees hired from external market, building of attractive employer brand, cooperation with secondary schools and universities, Telekom Day, Conference for technical schools teachers, etc. Exit management: Support leaving employees, counseling information support (booklet), arctive job searching, requalification, etc.

  21. ST Units HeadcountDevelopment 2000-2010 S4S Prognosis External customers Based on the statistics of Slovak Job Centres – less than 10% of dismissed employees of ST were officaly registered as unemployed

  22. Employees Structure excl. RK by Education(Development 2001-2008, 31.March) External customers

  23. Responsibility Towards Employees ST employee LEISURE TIME WORK WORK – LIFE BALANCE PROGRAM • Children camp • Call Centres (Children`s Day, • St. Nicholas Day) • Benefits (Section - recuperation) • Regular Offline parties • Christmas party • T-Com Beach Olympic Games • Performance management • (remuneration system) • Flexible Benefits System • Employee development • Safety, Health and Protection at Work • Health Care, Benefits • Puls Check, Satisfaction Surveys • Cooperation with schools • Code of Conduct • T-Spirit Values • Education • Social aid: • Collective Labour Agreement • Help in need • Program for mothers/fathers • Exit management

  24. Employees Reaction: Motivation and engagement • Measured by : Employee Satisfaction Survey (every 2nd year) • spirit@telekom – pulse check (4 x a year) • - participation around 70 % and more • 82 % of ST employee would recommend our products to their friends and • relatives • loyalty index 4 (1 – 5 scale) • 89 % of employees like the job in ST • 56 % are motivated to work in ST even with more effort as required • 63 % are motivated to improve their performance • 89 % consider the working tasks in ST as the challenge

  25. TRI TRI TRI TRI * * * * M M M M INDEX INDEX INDEX INDEX >100 - 10 40 70 100 - <10 Customers ReactionTRI*M Index – Customer Retention Intensity Measured By One KPI TRI TRI * * M M TRI TRI * * M M INDEX INDEX INDEX INDEX 40 40 - - 70 70 40 40 - - 70 70 HIGHLY RETAINED POSSIBLY VULNERABLE RETAINED VIRTUALLY LOST VULNERABLE European benchmark - average for fixed line operators: 54

  26. Positive TRI*M Development 2001-2007All Customers European average 54 2002 2003 2004 2005 2006 2007

  27. It is not necessary to change. Survival is not mandatory. W. Edwards Deming Thankyouforyourtime and attention

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