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Reducing Resistance to Change

Recorded webinar: http://www.slidesha.re/1nFHE51 Subscribe: http://www.ksmartin.com/subscribe Confronting resistance to change is a common lament from improvement professionals, middle managers, and senior leaders alike. But organizations that approach improvement properly experience very little resistance to change. This webinar will unlock the keys to resistance-free improvement: You will learn: • The power behind properly designed & socialized charters. • Technique for aligning all stakeholders around the need for change. • How to assure that a proposed change is truly an improvement. • Techniques for using psychology to reduce resistance. Lean management includes all of the tools and practices you need to experience practically zero resistance to change. This webinar will show you how to fully leverage them.

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Webinar
May 13, 2014
Reducing Resistance to Change
Welcome!
• Great Britain
• Guatemala
• Hong Kong
• India
• Indonesia
• Ireland
• Korea (South)
• Lithuania
• Latvia
• Mexico
• Nicaragua
• Netherlands
• New Zealand
• Philippines
• Portugal
• Russia
• Saudi Arabia
• South Africa
• Spain
• Sweden
• Switzerland
• Tunisia
• Turkey
• United States
www.ksmartin.com/subscribe
• Australia
• Burundi
• Bermuda
• Bolivia
• Brazil
• Canada
• Costa Rica
• Czech Republic
• Denmark
• Germany
• Ecuador
• France
 Coach / Facilitator / Consultant / Trainer:
Lean transformation & business performance
improvement in all industries.
 Teacher: University of California, San Diego
 Author & Speaker:
Karen Martin, President
@KarenMartinOpEx
www.linkedin.com/in/karenmartinopex
3
2013 Shingo
Prize winner!
www.ksmartin.com/subscribe
@karenmartinopex
After the webinar…
• Recordings:
– www.ksmartin.com/webinars
– www.vimeo.com/karenmartingroup
– www.youtube.com/karenmartingroup
– www.slideshare.net/karenmartingroup (+ slides)
Before the webinar…
• Materials available one hour prior:
– www.ksmartin.com/files/webinarmaterials/MM-DD-YYYY_slides.pdf
(or _handout.pdf)
5
More Webinars!
11:00 am-12:15 pm PT
www.ksmartin.com/webinars
Coaching: The Art of
Asking the Right Questions
Respect for People:
The Lean Way
DATE CHANGE
A3 Management:
Effective Problem Solving
Holding Effective
Kaizen Events
You will learn…
• The power behind properly designed and
socialized charters.
• Techniques for aligning all stakeholders
around the need for change.
• How to assure that a proposed change is
truly an improvement.
• Techniques for using psychology to reduce
resistance.

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Reducing Resistance to Change

  • 1. Webinar May 13, 2014 Reducing Resistance to Change
  • 2. Welcome! • Great Britain • Guatemala • Hong Kong • India • Indonesia • Ireland • Korea (South) • Lithuania • Latvia • Mexico • Nicaragua • Netherlands • New Zealand • Philippines • Portugal • Russia • Saudi Arabia • South Africa • Spain • Sweden • Switzerland • Tunisia • Turkey • United States www.ksmartin.com/subscribe • Australia • Burundi • Bermuda • Bolivia • Brazil • Canada • Costa Rica • Czech Republic • Denmark • Germany • Ecuador • France
  • 3.  Coach / Facilitator / Consultant / Trainer: Lean transformation & business performance improvement in all industries.  Teacher: University of California, San Diego  Author & Speaker: Karen Martin, President @KarenMartinOpEx www.linkedin.com/in/karenmartinopex 3 2013 Shingo Prize winner! www.ksmartin.com/subscribe @karenmartinopex
  • 4. After the webinar… • Recordings: – www.ksmartin.com/webinars – www.vimeo.com/karenmartingroup – www.youtube.com/karenmartingroup – www.slideshare.net/karenmartingroup (+ slides) Before the webinar… • Materials available one hour prior: – www.ksmartin.com/files/webinarmaterials/MM-DD-YYYY_slides.pdf (or _handout.pdf)
  • 5. 5 More Webinars! 11:00 am-12:15 pm PT www.ksmartin.com/webinars Coaching: The Art of Asking the Right Questions Respect for People: The Lean Way DATE CHANGE A3 Management: Effective Problem Solving Holding Effective Kaizen Events
  • 6. You will learn… • The power behind properly designed and socialized charters. • Techniques for aligning all stakeholders around the need for change. • How to assure that a proposed change is truly an improvement. • Techniques for using psychology to reduce resistance.
  • 7. People are Highly Predictable Creatures
  • 8. © 2014 The Karen Martin Group, Inc. 8 Resistance is a Sign that You’ve Done Something Wrong * * With a few exceptions.
  • 9. © 2014 The Karen Martin Group, Inc. 9 Why People Resist Change 1. They don’t understand why it’s needed. 2. They weren’t involved. 3. It’s a “change” vs. true improvement.
  • 10. © 2014 The Karen Martin Group, Inc. 10 Why People Resist Change 1. They don’t understand why it’s needed. 2. They weren’t involved. 3. It’s a “change” vs. true improvement.
  • 11. 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 4 Date: Date: Specific Conditions Land-based Value Stream Champion Janice Mitchell Demand Rate 300 units (40 projects; 20 POs) per year Facilitator Karen Martin Value Stream Mapping Charter Scope Accountable Parties Logistics Value Stream Equipment type A Executive Sponsor Joe Abrams Event Dates & Times Mon, Tue, Wed Feb 3, 4 & 5, 2014 8:00 am - 5:00 pm Last Step Product shipped Boundaries & Limitations Must use existing resources (people, IT, etc.) Briefing Attendees ** required *optional ** Frank L, Rick M, Cory C, Glen S, Sinan, Ben, Jane, Sal, Malaika, Andrew, AE's, Sales Mgr's, Rachel, Adam, Dustan Base-camp Location Bldg B, Conf Room A Trigger Customer submits RFQ First Step Sales receives RFQ Logistics Coordinator Georgette Winters Meals Provided Continental breakfast, lunch, snacks Projects are not scoped accurately (voice of the customer). Function Name Lack of consistent processes and execution. Operations John Morgan Briefing Dates &Times Feb 3, 4 & 5, 2014 4:00 - 5:00 pmImprovement Timeframe Future state realized by December 31, 2014 Current State Problems & Business Needs Mapping Team Contact Information On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson Consistently late delivery. CEO Mark Simpson Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince No KPIs. Sales Ed Borge Goals & Measurable Targets Engineering Joakim Gutan Sales Kellie McMahon Benefits to Customers & Business On-Call Support Create variance tracking methodology. Program Mgmt Leia Chang Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman Finance Lori P Capable processes that are repeatable (process focused). Design Manager Andrew M Projects completed on time (customer) & under budget (business). Function Name Reduced lead times & increased sales opportunities. IT Mars L Contact Information Budget-to-actual expenses per PO/project. Signature: Signature: Signature: Date: 2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator Annualized quantity of change orders. Profitably grow our business and open new markets. Prod Development Charlie F Relevant Data Agreement Reduce customer's warranty & LD exposure. 3 Purposes of Charters: Plan, Communicate, Build Consensus Download: www.ksmartin.com/charter
  • 12. © 2014 The Karen Martin Group, Inc. 12 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 4 Date: Date: Specific Conditions Land-based Value Stream Champion Janice Mitchell Demand Rate 300 units (40 projects; 20 POs) per year Facilitator Karen Martin Value Stream Mapping Charter Scope Accountable Parties Logistics Value Stream Equipment type A Executive Sponsor Joe Abrams Event Dates & Times Mon, Tue, Wed Feb 3, 4 & 5, 2014 8:00 am - 5:00 pm Last Step Product shipped Boundaries & Limitations Must use existing resources (people, IT, etc.) Briefing Attendees ** required *optional ** Frank L, Rick M, Cory C, Glen S, Sinan, Ben, Jane, Sal, Malaika, Andrew, AE's, Sales Mgr's, Rachel, Adam, Dustan Base-camp Location Bldg B, Conf Room A Trigger Customer submits RFQ First Step Sales receives RFQ Logistics Coordinator Georgette Winters Meals Provided Continental breakfast, lunch, snacks Projects are not scoped accurately (voice of the customer). Function Name Lack of consistent processes and execution. Operations John Morgan Briefing Dates &Times Feb 3, 4 & 5, 2014 4:00 - 5:00 pmImprovement Timeframe Future state realized by December 31, 2014 Current State Problems & Business Needs Mapping Team Contact Information On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson Consistently late delivery. CEO Mark Simpson Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince No KPIs. Sales Ed Borge Goals & Measurable Targets Engineering Joakim Gutan Sales Kellie McMahon Benefits to Customers & Business On-Call Support Create variance tracking methodology. Program Mgmt Leia Chang Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman Finance Lori P Capable processes that are repeatable (process focused). Design Manager Andrew M Projects completed on time (customer) & under budget (business). Function Name Reduced lead times & increased sales opportunities. IT Mars L Contact Information Budget-to-actual expenses per PO/project. Signature: Signature: Signature: Date: 2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator Annualized quantity of change orders. Profitably grow our business and open new markets. Prod Development Charlie F Relevant Data Agreement Reduce customer's warranty & LD exposure.
  • 13. Common Components of the A3 Report Theme: “What is our area of focus?” Owner: Person accountable for results. Plan Do, Study, Adjust Background Current Condition Countermeasures / Implementation Plan Effect Confirmation Follow-up Actions • What? • Who? • When? • Where? (if relevant) Target Condition / Measurable Objectives • Diagram of desired state • Measurable targets – how will we know that the improvement has been successful? • Diagram of current situation or process • What about it is not ideal? • Extent of the problem (metrics) • Problem statement • Context - Why is this a problem? How large is the problem? Root Cause & Gap Analysis • Graphical depiction of the most likely direct (root) causes • What measurable results did the solution achieve (or will be measured to verify effectiveness)? • Who’s responsible for ongoing measurement? • Where else in the organization can this solution be applied? • How will the improved state be standardized and communicated?
  • 14. © 2014 The Karen Martin Group, Inc. 14 Why People Resist Change 1. They don’t understand why it’s needed. 2. They weren’t involved. 3. It’s a “change” vs. true improvement.
  • 15. © 2014 The Karen Martin Group, Inc. 15 It’s Uplifting to Kaizen… It’s traumatizing to be kaizen’d.
  • 16. © 2014 The Karen Martin Group, Inc. 16 The People Who Do the Work are the Experts
  • 17. © 2014 The Karen Martin Group, Inc. 17 Leaders determine strategy (what needs to happen) Workers determine tactics (how it will happen)
  • 18. © 2014 The Karen Martin Group, Inc. 18 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 4 Date: Date: Specific Conditions Land-based Value Stream Champion Janice Mitchell Demand Rate 300 units (40 projects; 20 POs) per year Facilitator Karen Martin Value Stream Mapping Charter Scope Accountable Parties Logistics Value Stream Equipment type A Executive Sponsor Joe Abrams Event Dates & Times Mon, Tue, Wed Feb 3, 4 & 5, 2014 8:00 am - 5:00 pm Last Step Product shipped Boundaries & Limitations Must use existing resources (people, IT, etc.) Briefing Attendees ** required *optional ** Frank L, Rick M, Cory C, Glen S, Sinan, Ben, Jane, Sal, Malaika, Andrew, AE's, Sales Mgr's, Rachel, Adam, Dustan Base-camp Location Bldg B, Conf Room A Trigger Customer submits RFQ First Step Sales receives RFQ Logistics Coordinator Georgette Winters Meals Provided Continental breakfast, lunch, snacks Projects are not scoped accurately (voice of the customer). Function Name Lack of consistent processes and execution. Operations John Morgan Briefing Dates &Times Feb 3, 4 & 5, 2014 4:00 - 5:00 pmImprovement Timeframe Future state realized by December 31, 2014 Current State Problems & Business Needs Mapping Team Contact Information On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson Consistently late delivery. CEO Mark Simpson Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince No KPIs. Sales Ed Borge Goals & Measurable Targets Engineering Joakim Gutan Sales Kellie McMahon Benefits to Customers & Business On-Call Support Create variance tracking methodology. Program Mgmt Leia Chang Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman Finance Lori P Capable processes that are repeatable (process focused). Design Manager Andrew M Projects completed on time (customer) & under budget (business). Function Name Reduced lead times & increased sales opportunities. IT Mars L Contact Information Budget-to-actual expenses per PO/project. Signature: Signature: Signature: Date: 2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator Annualized quantity of change orders. Profitably grow our business and open new markets. Prod Development Charlie F Relevant Data Agreement Reduce customer's warranty & LD exposure.
  • 19. © 2014 The Karen Martin Group, Inc. 19 Who Needs to be Involved? Function Activity Marketing 1. Generates sales leads Sales 2. Calls on and qualifies customers Customer 3. Submits RFQ to sales Sales 4. Reviews RFQ Estimating 5. Generates quote Sales 6. Approve quote Customer 7. Accepts quote; submits a PO Sales 8. Approves PO Customer service 9. Creates SO; compiles spec package EE/ME design 10. Designs product; generates BOM Customer 11. Approves design EE/ME design 12. Forwards design to SW dev Software Dev 13. Writes code Purchasing/Planning 14. Releases WO; schedules production Supplier (external) 15. Delivers materials Production 16. Manufactures & ships product Customer 17. Installs equipment Field service 18. Conducts 90-day follow-up Problem: Product Quality
  • 20. Available on the CD that Accompanies The Kaizen Event Planner (www.bitly.com/TKEP)
  • 21. The Power of Periodic Briefings 21 Purpose: Deepen understanding, gain commitment, help people “grow” with change, surface hidden issues.
  • 22. © 2014 The Karen Martin Group, Inc. 22 Why People Resist Change 1. They don’t understand why it’s needed. 2. They weren’t involved. 3. It’s a “change” vs. true improvement.
  • 23. © 2014 The Karen Martin Group, Inc. 23 Beware of Process Tampering!
  • 24. © 2014 The Karen Martin Group, Inc. 24 Develop hypothesis Conduct experiment Measure results Refine Standardize Stabilize
  • 25. © 2014 The Karen Martin Group, Inc. 25 Begin at the Beginning, Not the End! 1. What’s the problem? 2. How big is the problem? 3. Why is it a problem? 4. What’s the root cause?
  • 26. © 2014 The Karen Martin Group, Inc. 26 What About the One Resister That You Can’t Turn? 1. Determine root cause via candid conversation. 2. They may need to find a new “home.” 
  • 27. © 2014 The Karen Martin Group, Inc. 27 In Summary… • Use well-designed charters. • Socialize the charters. • Use robust problem solving (PDSA) to make true improvement. • Involve the people who do the work being improved (or who work in the environment being improved). – Include upstream suppliers and downstream customers. • Hold periodic briefings.
  • 28. © 2014 The Karen Martin Group, Inc. 28
  • 29. Change Doesn’t Have to Be As Hard as We Make It
  • 30. © 2014 The Karen Martin Group, Inc. 30 Your Questions • What are some examples of the hardest resistance to change you’ve encountered & how did you overcome them? • When does one decide that a company has a totally hopeless culture to change? Examples? • How do you deal with people who are close to retirement?
  • 31. © 2014 The Karen Martin Group, Inc. 31 Karen Martin, President 858.677.6799 @karenmartinopex Blog & newsletter: www.ksmartin.com/subscribe