Change Management September 2010


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One day training course for a science-based organisation located in Yorkshire undergoing significant change

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Change Management September 2010

  1. 1. Managing change<br />by Fluid <br />September 2010<br />
  2. 2. Page 2<br />Contents<br />3-4 Introduction to Fluid<br />5-6 Change strategies<br />7-9Communicating change management<br />10-11 Reasons for resistance<br />12-14 A successful change management one-day event<br />15-16Learn to love change<br />17-18Self-esteem and time<br />19-20 Communicate through a crisis<br />21-22 Coaching at a time of change<br />23-26 Culture change<br />27-28 Exercise A<br />29-30 Creating a built-to-change organisation<br />31-32 Successfully organising change<br />33-34 People management aspect of change<br />35-36 Measures to assess success of change<br />37-38 Leading change from within<br />39-47 Real-life examples<br />48-49 Exercise B<br />50-51 Case studies<br />52-53 Conclusion and questions<br />
  3. 3. Page 3<br />Introduction<br />
  4. 4. Page 4<br />Introduction to Fluid<br />Fluid Consulting Limited (Fluid) is a specialist human resources consultancy headed by Tim Holden MCIPD <br />10 years in banking<br />10 years in Human Resources consultancy<br />Fluid trading since 2006<br />The core services provided by Fluid are:<br /><ul><li>Retention
  5. 5. Selection</li></ul>- Attraction<br />- Remuneration & Reward <br />- Outplacement<br />- Training & HR consultancy<br />
  6. 6. Page 5<br />Change strategies<br />
  7. 7. Page 6<br />Change strategies<br /><ul><li>What’s the problem
  8. 8. Prepare for setbacks
  9. 9. Find support
  10. 10. Get started
  11. 11. Find quick wins
  12. 12. Out of their shoes
  13. 13. Create connections
  14. 14. Build on synchronicity
  15. 15. A little help…..</li></li></ul><li>Page 7<br />Communicating change management <br />
  16. 16. Page 8<br />Communicating change management 1 of 2<br /><ul><li>Recognise that a vision can come easily; making it happen is the hard part
  17. 17. Realise that altering behaviours will not happen overnight
  18. 18. Know beforehand what you want to achieve and where you want to get to
  19. 19. Recognise that your workforce is not one homogenous mass-messages need to be tailored to individuals and groups
  20. 20. Encourage two-way dialogue and interaction to promote buy-in and engagement </li></li></ul><li>Page 9<br />Communicating change management 2 of 2<br /><ul><li>Involve your audience right from the start
  21. 21. Remember to communicate ‘why’ as well as ‘how’
  22. 22. Show how the change is going to improve people’s day-to-day lives, try to avoid jargon and management speak whilst keeping it real
  23. 23. Use line managers to promote the message and identify credible ‘change champions’
  24. 24. Senior management must be seen to embrace the change and lead by example</li></li></ul><li>Page 10<br />Reasons for resistance<br />
  25. 25. Page 11<br />Reasons for resistance<br /><ul><li>Parochial self-interest triggered by a fear that something of value that will be lost as a result of the change
  26. 26. Distrust of the change agents, triggered by a fear of half-truths and hidden motives
  27. 27. Different assessments of the need for change, with interested parties accessing different sources if information and/or having different interpretations of the same information
  28. 28. Low tolerance for change triggered by a fear of not being able to cope in new, unfamiliar circumstances</li></li></ul><li>Page 12<br /> A successful change management one-day event<br />
  29. 29. Page 13<br />A successful change management one-day event 1 of 2<br /><ul><li>Involve people in the day-get them to contribute, don’t just talk at them
  30. 30. Have a ‘wow’ factor, but don’t make it too lavish and expensive. Create something that is innovative and interesting in presentational terms
  31. 31. Give people the opportunity to have some informal time together (over lunch or coffee perhaps)-that’s where you get networking and communication</li></li></ul><li>Page 14<br />A successful change management one-day event 2 of 2<br /><ul><li>You’ve got to have the top team delivering it, and make sure that this team can communicate with employees in a really effective way
  32. 32. When talking about where your organisation is going, keep it simple and straightforward
  33. 33. To keep costs down, go for maximum utilisation of your venue. Rent equipment, look at innovative ways of running a contract, and always have an open/competitive bid for the delivery. With competition you get innovation, and a good pace</li></li></ul><li>Page 15<br />Learn to love change<br />
  34. 34. Page 16<br />Learn to love change<br /><ul><li>Put it into perspective
  35. 35. Keep it at work
  36. 36. See it as an opportunity
  37. 37. Make changes for valid reasons
  38. 38. Avoid unnecessary habits</li></li></ul><li>Page 17<br />Self-esteem and time<br />
  39. 39. Page 18<br />Self-esteem and time<br /><ul><li>Relief
  40. 40. Shock, immobilisation and loss
  41. 41. Searching and denial
  42. 42. Anger
  43. 43. Depression, self doubt, inertia
  44. 44. Acceptance
  45. 45. Testing options
  46. 46. Searching for meaning & self awareness
  47. 47. Integration and renewal</li></li></ul><li>Page 19<br />Communicate through a crisis<br />
  48. 48. Page 20<br />Communicate through a crisis<br /><ul><li>Throw out the rulebook
  49. 49. Don’t assume control
  50. 50. Say what won’t change…
  51. 51. …and what will
  52. 52. Keep employees focused
  53. 53. Get line managers talking
  54. 54. Educate your employees
  55. 55. Walk the talk</li></li></ul><li>Page 21<br />Coaching at a time of change<br />
  56. 56. Page 22<br />Coaching at a time of change<br /><ul><li>Use coaching to support those who are leading the change first
  57. 57. If you recruit an external coach, make sure they have a business background and understand your environment
  58. 58. Make sure that HR is operating as a business partner
  59. 59. Use coaching methodologies thoroughly
  60. 60. Be clear about what success looks like</li></li></ul><li>Page 23<br />Culture change<br />
  61. 61. Page 24<br />Culture change 1 of 3<br /><ul><li>Developing a set of values that make a difference to the organisation is a huge amount of work-not only in producing the framework but also in embedding it in the daily operations of the organisation
  62. 62. Introducing radical change is much easier if you have the total support of your Chief Executive and executive colleagues
  63. 63. External partners need to engage in understanding and responding to the character and ambitions of the organisation</li></li></ul><li>Page 25<br />Culture change 2 of 3<br /><ul><li>Create awareness
  64. 64. Establish role models
  65. 65. Develop relevant skills and knowledge
  66. 66. Reinforce the desired behaviour</li></li></ul><li>Page 26<br />Culture change 3 of 3<br /><ul><li>USE CULTURE AS A CATALYST FOR CHANGE
  67. 67. Develop your strategy
  68. 68. Tools of the trade
  69. 69. Quality as well as quantity
  70. 70. The root of the matter
  71. 71. Communicate widely
  72. 72. Involve all employees
  73. 73. Track progress
  74. 74. See the benefits</li></li></ul><li>Page 27<br />Exercise A<br />
  75. 75. Page 28<br />How ready for change are you?<br />Exercise A<br />
  76. 76. Page 29<br />Creating a built-to-change organisation<br />
  77. 77. Page 30<br />Creating a built-to-change organisation<br /><ul><li>Don’t assume that the future will be like the present
  78. 78. Ensure no employee is more than one or two steps from the external environment
  79. 79. Share business information with employees
  80. 80. Use frequent goal-setting reviews rather than job descriptions, to manage talent
  81. 81. Stress that individuals’ employment depends on their willingness to accept change and learn new skills
  82. 82. Encourage managers at all levels to take advantage of leadership opportunities</li></li></ul><li>Page 31<br />Successfully organising change<br />
  83. 83. Page 32<br />Successfully organising change<br /><ul><li>Sustain top management support
  84. 84. Avoid piecemeal, uncoordinated change initiatives
  85. 85. Achieve substantive rather than tokenistic employee involvement in the change process
  86. 86. Invest in communications with external stakeholders
  87. 87. Involve HR professionals closely, right from the start
  88. 88. Maintain effective project management disciplines
  89. 89. Build skilled change-management teams</li></li></ul><li>Page 33<br />People management aspect of change<br />
  90. 90. Page 34<br />People management aspect of change<br /><ul><li>How will we involve people and develop their support?
  91. 91. What will be the effect on reward systems and how can we use them to promote rather than obstruct change?
  92. 92. What job and skill changes will be required and how will we deliver them?
  93. 93. What are the implications for the careers of those affected by and managing the change?
  94. 94. How will we continually learn and improve as we implement the change? </li></li></ul><li>Page 35<br />Measures to assess success of change<br />
  95. 95. Page 36<br /><ul><li>Employee satisfaction
  96. 96. Changes made in processes
  97. 97. Employee understanding
  98. 98. Time taken against plan
  99. 99. Revenue/profit improvements
  100. 100. Spending against budget
  101. 101. Avoidance of identified risk
  102. 102. Senior management satisfaction</li></ul>Measures to assess success of change<br />
  103. 103. Page 37<br />Leading change from within<br />
  104. 104. Page 38<br /><ul><li>Know the organisation and the key influencers
  105. 105. Start with the small things that make a difference such as making it easy for people to get their expenses back
  106. 106. Get out there and really listen
  107. 107. Don’t take a rebuff as a personal insult
  108. 108. Don’t wait for permission</li></ul>Leading change from within<br />
  109. 109. Page 39<br />Real-life examples<br />
  110. 110. Page 40<br /><ul><li>BOOTS-THE CHALLENGE AND WHAT THEY DID
  111. 111. A change project was announced that involved a restructure of the supply chain to deliver a £50M annual cost saving. It involved closing 18 distribution centres and merging three warehouses, with new terms & conditions for 12000 employees as well as 2100 redundancies announced for three years in advance
  112. 112. Boots developed a clear people vision, culture, leadership development plan, support/severance scheme for affected people whilst opening a learning suite in every distribution centre, providing a sum of £300 for each colleague as a vocational training allowance and undertaking change management programmes for all managers</li></ul>Real-life examples 1 of 8<br />
  113. 113. Page 41<br />Real-life examples 2 of 8<br /><ul><li>BOOTS-BENEFITS AND ACHIEVEMENTS
  114. 114. Programme delivered on time and within budget
  115. 115. Employee engagement scores increased by 13%
  116. 116. 54% of leavers found new work immediately
  117. 117. Retention of a more engaged and productive workforce
  118. 118. Absence reduced from 7% to 4%</li></li></ul><li>Page 42<br />Real-life examples 3 of 8<br /><ul><li>ROYAL COLLEGE OF NURSING-THE CHALLENGE AND WHAT THEY DID
  119. 119. The staff survey revealed a 54% level of employee engagement, so HR were tasked with improving this by 10% whilst tackling sickness absence, staff turnover and number of grievances filed-at a time when the organisation was seeking to achieve a 1% increase in membership
  120. 120. Staff advocates were introduced to tackle bullying and harassment at work, in addition to a staff awards scheme, mentoring to support career development, a monthly two-way briefing process and change management workshops </li></li></ul><li>Page 43<br />Real-life examples 4 of 8<br /><ul><li>ROYAL COLLEGE OF NURSING-BENEFITS AND ACHIEVEMENTS
  121. 121. A repeat of the staff survey two years later showed a 20% increase in employee engagement, taking the score to 74%
  122. 122. Sickness absence was reduced by 0.6%, the number of grievances filed reduced by 45%, and staff turnover cut from 20% to 12%
  123. 123. In a 12-month period the Royal College of Nursing doubled its membership target and saw a 2% increase-a significant boost to income</li></li></ul><li>Page 44<br />Real-life examples 3 of 8<br /><ul><li>TUI UK & IRELAND-THE CHALLENGE AND WHAT THEY DID
  124. 124. A merger of two competitors led to sites being closed, a new Head Office being established, teams being relocated and integrated and the harmonisation of terms, policies and remuneration packages
  125. 125. HR led the merger planning, secured people investment and oversaw the appointment of an integration team
  126. 126. Key communications included an employee booklet, a ‘Be Special’ engagement programme, face to face visits with Directors and an online forum
  127. 127. HR coached leaders through managing uncertainty and ‘making a success of the merger’ sessions, whilst completing organisational redesign within three months</li></li></ul><li>Page 45<br />Real-life examples 6 of 8<br /><ul><li>TUI UK & IRELAND-BENEFITS AND ACHIEVEMENTS
  128. 128. Record profits posted in year one
  129. 129. HR policies and systems were harmonised with a clear timetable for completion on first anniversary
  130. 130. A successful partnership approach, achieving a landmark deal with the pilots’ union Balpa
  131. 131. All key talent identified stayed with the organisation</li></li></ul><li>Page 46<br /><ul><li>VODAFONE-THE CHALLENGE AND WHAT THEY DID
  132. 132. The outsourcing of the regional operations team (350 people) took place against a backdrop of employee uncertainty, with the staff survey revealing a low score for employee engagement. The challenge was to retain a highly skilled workforce, recognising that 81 of the team were eligible for early retirement
  133. 133. Potential outsourcing partners were invited in to deliver a ‘beauty parade’ pitch in front of employee representatives, and all communication was designed to be open, honest & transparent
  134. 134. Pension rights were placed at the top of the agenda as consultation had confirmed employees’ fears about financial loss as they moved from a defined benefit to a defined contribution scheme</li></ul>Real-life examples 7 of 8<br />
  135. 135. Page 47<br />Real-life examples 8 of 8<br /><ul><li>VODAFONE-BENEFITS AND ACHIEVEMENTS
  136. 136. HR made sure the outsourcing deal put the people agenda on an equal footing with commercial interests
  137. 137. Positive feedback from employees ensured a low attrition rate
  138. 138. Only one of the 81 potential employees took early retirement, meaning key skills were retained</li></li></ul><li>Page 48<br />Case studies<br />
  139. 139. Page 49<br />Case studies <br />
  140. 140. Page 50<br />Exercise B<br />
  141. 141. Page 51<br />Exercise B<br />
  142. 142. Page 52<br />Conclusion & Questions<br />
  143. 143. Page 53<br />Conclusion<br />Summary<br />Questions<br />