Change Management Conference

Conference Presentation Steve McGrady, Managing Consultant Meridian 1- Turning Strategy into Results Business Process Management for Aerospace and Defence Manufacturing Conference Amsterdam April 28-30 2008 Wednesday, 12 November 2008

Effectively Implementing Change Management into Your Business Process Strategy Wednesday, 12 November 2008

Business Process Change: What Really Works? Learning from Other Industries Steve McGrady Managing Consultant Meridian1 www.meridian1.ltd.uk Wednesday, 12 November 2008

My Background Inside (1988-2002) IT-driven change Aerospace Process-driven change IT Strategic Transformation Government Mergers & Acquisitions Financial Services UK Outside (2002-2007) North America Oil Health Middle East Nuclear EU, S Africa, SE Asia Wednesday, 12 November 2008

Agenda Change management and BPM Lessons learned from other industries Data from other industries and research A blueprint for change - what works in practice Questions Wednesday, 12 November 2008

We trained hard. But it seemed that every time we were beginning to form into teams, we would be reorganised. I was to learn later in life that we tend to meet any new situation by reorganising. And what a wonderful method it can be for creating the illusion of progress while producing confusion, inefﬁciency, and demoralisation. Gaius Petronius Arbiter The Satyricon 1st Century AD Wednesday, 12 November 2008

Change Management and BPM “The main dangers in this life are the people who want to change everything - or nothing.” Nancy Astor Wednesday, 12 November 2008

Where Change Management Fits Improvement Strategy Maps 6∑ Change Management TQM Design Modelling Implementation Measurement Balanced Lean Scorecard Improvement Wednesday, 12 November 2008

Where Change Management Fits Cultural Barriers Process Barriers Technical Barriers “As Is” “To Be” Change Scope: Personal Group Organization Wednesday, 12 November 2008

Changing Change Management Hard IQ Manag ement Scienc Processes & e View Change Management Systems Theory E Vision Leadership by Example Motivation Duration Soft Capabilities o logy View EQ ess P sych Top Team Commitment People B usin Additional Effort Theory O Wednesday, 12 November 2008

Scope of Change Management Information & Technology Environment Products Strategy Management Business Processes People Services Structure Adapted from Kettinger and Grover 1995 Wednesday, 12 November 2008

What have I learned about change? Difficult, messy and painful, inevitable but Many expect change programmes will fail Many fear change but some relish it Future is unknown but it is also predictable Managers need leaders to make life difficult Leaders need managers to make life difficult Empowerment is potent but dangerous Conversation breaks silos Followership is now voluntary Wednesday, 12 November 2008

Data from other industries The current reality Wednesday, 12 November 2008

Change Financial Measurement Change Management To what extent does your organization continuously and rigorously evaluate the following components of its value chain? © 2008 The Benchmarking Exchange (BenchNet) Wednesday, 12 November 2008

30 60 90 120 150 Wednesday, 12 November 2008 Organisational Culture 138 Individual Emphasis 65 Change Incentive System 82 ICT 62 © 2008 The Benchmarking Exchange (BenchNet) No problem ownership 104 Lack of time 93 Non-standardised processes 72 Organisation Structure 88 Physical workspace layout 37 Staff turnover 48 What are the obstacles to change in your organisation? Top management commitment 90

A Blueprint for Change - What Works In Practice “They always say time changes things, but you actually have to change them yourself.” Andy Warhol Wednesday, 12 November 2008

1 Build a ﬁrm foundation for change Wednesday, 12 November 2008

3 Plan the Change Choose Your Tools John Kotter - 8 stage change process Peter Senge - Fifth Discipline Commitment to Change Model Cultural Web Kubler-Ross Model Appreciative Enquiry Wednesday, 12 November 2008

4 Implement and Manage the Change Adapt yourself Be clear about: Teacher - explain and inform* Balancing Ears and Mouth Doctor - diagnose and prescribe What you say How you say it Architect - design and plan What you do General - Inspire and direct How you do it Hero - empower & liberate Symbols Stories *Amernic, J, Craig, R, Tourish, D.; The transformational leader as pedagogue, physician, architect, commander, and saint: Five root metaphors in Jack Welch's letters to stockholders of General ElectricHuman Relations 2007 60: 1839-1872 Wednesday, 12 November 2008

5 Measure and Improve Six Sigma Balanced Scorecard Lean TQM Goals and Objectives Performance Appraisal Financial Performance Wednesday, 12 November 2008

In conclusion... Difficult, messy and painful, but inevitable Just get on with it - in a considered way Many expect change programmes will fail Change management should be systemic Many fear change but some relish it Identify influencers & listen to objectors Future is unknown but it is also predictable Use contingency and scenario plans Managers need leaders to make life difficult Leaders should ask “Why can’t we...” Leaders need managers to make life difficult Managers should ask “Why should we...” Empowerment is potent but dangerous Uncontrolled devolution of power=chaos Conversation breaks silos Encourage conversation & even conflict Followership is now voluntary Leaders must persuade, inspire and sell Wednesday, 12 November 2008

“The main dangers in this life are the people who want to change everything - or nothing.” Nancy Astor Comments Questions Wednesday, 12 November 2008

Change Management Conference

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