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07 05 Leading Change (70 Slides)


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2007 May Abu Dhabi University Presentation on Leading Change

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07 05 Leading Change (70 Slides)

  1. 1. Challenge of Leading Change OR How to Engage Employees in the Change Process
  2. 2. Presentation Overview <ul><li>Making Changes </li></ul><ul><li>Why Change? </li></ul><ul><li>Managing Change </li></ul><ul><li>The GASCO Case </li></ul><ul><li>Successes & Lessons Learned </li></ul>
  3. 3. Making Changes <ul><li>People’s minds are changed through observation and not through argument… Will Rogers </li></ul><ul><li>To improve is to change; to be perfect is to change often… Winston Churchill </li></ul><ul><li>Only the wisest and the stupidest of men never change… Confucius </li></ul>
  4. 4. Why is Change Necessary? <ul><li>Increasing global competition </li></ul><ul><li>Experienced workers retiring </li></ul><ul><li>Introduction of new technology </li></ul><ul><li>Ageing equipment </li></ul><ul><li>New business opportunities </li></ul><ul><li>Business threats </li></ul><ul><li>Nationalization efforts </li></ul><ul><li>Meeting customer needs </li></ul>
  5. 5. GASCO Vision Managing Change
  6. 6. The Management Focus New Business Reputation Increase Market Share Quality Expand Business Control Costs Income Profits Profits Satisfy Shareholders Customer Satisfaction What Do Managers, Shareholders & Owners Want?
  7. 7. Benefits Security Good Environment Recognition Feedback Development Salary Training Supervisor Approval The Employee Focus What Do Employees Want?
  8. 8. Understanding the Workforce <ul><li>You need to think about their: </li></ul><ul><li>Knowledge </li></ul><ul><li>Skills </li></ul><ul><li>Abilities </li></ul><ul><li>Attitudes </li></ul><ul><li>Concerns </li></ul><ul><li>Education / Training </li></ul><ul><li>What they “need” to know </li></ul><ul><li>What they “want” to know </li></ul>
  9. 9. Understanding Change… <ul><li>Successful change requires clear communications </li></ul><ul><li>Top management support is required </li></ul><ul><li>Mgmt & workers have a different view of change </li></ul><ul><li>Change efforts upset the status quo </li></ul><ul><li>Change increases anxiety & stress levels </li></ul><ul><li>There will always be resistance to change </li></ul><ul><li>Resources & time are required to secure change </li></ul><ul><li>Change efforts always take longer than expected </li></ul>
  10. 10. How Do We Get There? You need a plan for moving from the known to the unknown…
  11. 11. What Must a Leader Do? <ul><li>Understand why change is necessary </li></ul><ul><li>Have a vision worth believing in </li></ul><ul><li>Communicate that vision to the entire workforce </li></ul><ul><li>They must be honorable & ethical </li></ul><ul><li>Support change and provide clear guidance </li></ul><ul><li>Create a change strategy for the organization </li></ul><ul><li>Align the company’s goal with the new vision </li></ul><ul><li>Inspire people to achieve company’s objectives </li></ul>
  12. 12. Prioritizing Change Issues <ul><li>How do you prioritize Change issues in your Company? </li></ul><ul><ul><li>Ask the boss… </li></ul></ul><ul><ul><li>See what everyone else wants… </li></ul></ul><ul><ul><li>Vote on the issues… </li></ul></ul><ul><ul><li>Use a dart board… </li></ul></ul>or do you…
  13. 13. Create a “Plan for Change” <ul><li>Create a sense of urgency </li></ul><ul><li>Build a Team to lead the change effort </li></ul><ul><li>Continually communicate the need for change </li></ul><ul><li>Developing pilot programs </li></ul><ul><li>Develop structures to support the change </li></ul><ul><li>Redesigning systems and/or procedures </li></ul><ul><li>Empower people to carry out the change efforts </li></ul><ul><li>Institutionalize the change efforts </li></ul>
  14. 14. Prioritizing Change Issues High High Low Difficulty to Resolve Impact
  15. 15. Difficulty to Resolve Impact on the Organization Performance High Low Low High PE1 PE2 PE3 PE4 IN1 IN2 OC1 OC2 PR1 PR2 PR3 LA1 LA2 LA3 TW1 TW2 TW3 FC1 FC2 HS1 HS2 HS3 What Comes First? Attribute Code Performance PE Innovation IN Open Communication & Transparency OC Professionalism PR Learning & Adaptability LA Teamwork TW Family and Community FC HSE HS
  16. 16. Tell your staff what’s in it for them! What will the change do to them and for them? The Most Important Rule!
  17. 17. GASCO Vision GASCO’s Case for Change
  18. 18. The Case for Change in GASCO <ul><li>GASCO </li></ul><ul><li>Established in 1978 </li></ul><ul><li>Joint Venture Company </li></ul><ul><ul><li>ADNOC, Shell, Total & Partex </li></ul></ul><ul><li>1000 employees </li></ul><ul><li>Mainly produced NGL for export </li></ul>Integration mid 2001 <ul><li>ATHEER </li></ul><ul><li>Formerly ADNOC Gas Processing </li></ul><ul><li>ADNOC Company </li></ul><ul><li>1000 employees </li></ul><ul><li>Produced consumer gas for use within UAE </li></ul><ul><li>Created one of the largest gas processing companies in the world </li></ul><ul><li>Diversified the customer base (local & international) </li></ul>
  19. 20. SWOT Analysis <ul><li>Strengths </li></ul><ul><li>Vital role in hydrocarbons value chain of Abu Dhabi </li></ul><ul><li>Exciting new organization with scale and ambition to do things differently </li></ul><ul><li>Recognize need to change, led by the Chairman and GM </li></ul><ul><li>Desire to build competencies from within </li></ul><ul><li>Increased focus on performance </li></ul><ul><li>Active positioning for future expansions </li></ul><ul><li>Drive to work collaboratively </li></ul><ul><li>Weaknesses or Areas for Improvement! </li></ul><ul><li>Culture & morale </li></ul><ul><li>Perceived working environment </li></ul><ul><li>Leadership and human capability </li></ul><ul><li>Leverage of information systems </li></ul><ul><li>Gaps in key management processes </li></ul><ul><li>Ineffective business processes </li></ul><ul><li>Lack of performance requirements </li></ul><ul><li>Opportunities </li></ul><ul><li>Capitalize on merger </li></ul><ul><li>Increased geographic and value chain spread </li></ul><ul><li>Broad shareholder support </li></ul><ul><li>Established growth and change agenda </li></ul><ul><li>Leverage new technology </li></ul><ul><li>Leverage brand </li></ul><ul><li>Threats/Challenges </li></ul><ul><li>Constraining Shareholder response mechanism </li></ul><ul><li>Emerging competitive activity </li></ul><ul><li>Increasing regulatory, quality and HSE requirements </li></ul><ul><li>Increasing end user demand for more services/outputs </li></ul><ul><li>Losing talent to other companies </li></ul><ul><li>Emiratization targets </li></ul>
  20. 21. Force Field Analysis Current Performance Target Performance <ul><li>Using latest technology </li></ul><ul><li>Clear job descriptions are available for all </li></ul><ul><li>Learning opportunities increasing </li></ul><ul><li>Linking reward to performance </li></ul><ul><li>Open door policy </li></ul><ul><li>Visible management commitment </li></ul><ul><li>Extensions granted for experienced staff </li></ul><ul><li>Positive company reputation </li></ul><ul><li>Opportunities for project development </li></ul><ul><li>Competency assurance system </li></ul><ul><li>Clearly defined targets & objectives (KPIs) </li></ul><ul><li>Succession plans available </li></ul><ul><li>Defined targets for trainees </li></ul><ul><li>Emiratization efforts </li></ul><ul><li>Aging Profile </li></ul><ul><li>No database for capturing experience </li></ul><ul><li>No sharing of knowledge </li></ul><ul><li>Too many activities with limited resources </li></ul><ul><li>Lack of specialized training </li></ul><ul><li>Low motivation </li></ul><ul><li>High turnover of experienced staff </li></ul><ul><li>No sharing of responsibility in team environment </li></ul><ul><li>Job Descriptions / Culture / Business Processes do not encourage teamwork </li></ul><ul><li>No delegation of authority </li></ul><ul><li>Lack of incentives / recognition / reward </li></ul><ul><li>Lack of accountability </li></ul><ul><li>Low commitment level </li></ul><ul><li>Lack of discussion </li></ul><ul><li>Rotation system & impact on continuity </li></ul><ul><li>Conservative decision making / taking responsibilities </li></ul>Culture Driving Forces Culture Restraining Forces
  21. 23. GASCO Vision Moving Forward With GASCO 21
  22. 24. <ul><li>GASCO 21 is a journey NOT a project </li></ul><ul><li>Involves continual improvements NOT just a one-time fix </li></ul><ul><li>Involves all GASCO staff NOT just direct employees </li></ul><ul><li>Requires the support of all personnel NOT just managers </li></ul><ul><li>Improves the working environment </li></ul><ul><li>Supports change within the Company </li></ul><ul><li>Creates awareness, interest and openness in the Company </li></ul><ul><li>Renews peoples’ faith in GASCO and it’s Leaders </li></ul><ul><li>It is about solving Company problems AND NOT focusing on issues that should be handled through other means </li></ul>What is GASCO 21?
  23. 25. GASCO 21 Foundations <ul><li>Openness & Transparency </li></ul><ul><li>Teamwork & Communications </li></ul><ul><li>Learning, Adaptability & Innovation </li></ul><ul><li>Leadership Assessment & Development </li></ul><ul><li>Family & Community </li></ul><ul><li>Interfaces Between The Divisions </li></ul><ul><li>Common Processes & Procedures </li></ul><ul><li>Improving Work Processes </li></ul><ul><li>ADNOC Key Performance Indicators </li></ul><ul><li>Cascade the KPIs downward </li></ul><ul><li>Measurable Performance Contracts </li></ul><ul><li>Performance & Professionalism </li></ul>
  24. 26. “ I A gree T o O vercome P roblems F or P erfect H armony” I - Innovation A - Adaptability & Learning T - Teamwork O - Open Communications & Transparency P - Performance F - Family & Community P - Professionalism H - Health, Safety & Environment GASCO Cultural Attributes
  25. 27. GASCO’s Cultural Attributes
  26. 28. GASCO 21 Core Team
  27. 29. The Bigger Team
  28. 30. The Team At Work & Play
  29. 31. Company Change Agents
  30. 32. Toolkit for Division Managers <ul><li>1. Demonstrate G21 Ownership </li></ul><ul><li>Sponsor & direct the overall focus of G21 initiatives </li></ul><ul><li>Lead the implementation of new initiatives & monitor their progress </li></ul><ul><li>Include G21 activities as agenda points in all regular meetings </li></ul><ul><li>Provide adequate money, time & resources for G21 activities </li></ul><ul><li>Recognize staff who demonstrate extra efforts in applying GASCO’s cultural attributes </li></ul><ul><li>Explore ways to bring resistors on board </li></ul><ul><li>2. G21 Communication Plan </li></ul><ul><li>During meetings & get-togethers introduce Change Agents </li></ul><ul><li>Provide employees feedback on their concerns & suggestions </li></ul><ul><li>Ensure communications takes place between Core Team & Change Agents </li></ul><ul><li>Publicize G21 feedback from Core Team HQ regularly </li></ul><ul><li>Inform staff when their suggestions or ideas will not be implemented </li></ul><ul><li>3. Getting The Most From the Division Change Agents </li></ul><ul><li>Review and discuss the Change Agent’s role description with them </li></ul><ul><li>Hold regular (at least monthly) meetings with them & focus area custodians to review and update Division G21 Plan </li></ul><ul><li>Accompany Change Agents on regular visits to division employees </li></ul><ul><li>Provide status & authority to Change Agents so they can fulfill their duties </li></ul><ul><li>Eliminate & replace inactive Agents </li></ul>
  31. 33. <ul><li>Assist the DM introduce changes in the workplace & provide feedback on concerns of division personnel </li></ul><ul><li>Brief employees on the latest news, achievements and progress of the G21 Journey </li></ul><ul><li>Propose, introduce, support & facilitate changes within the Division </li></ul><ul><li>Assist in the development of Division G21 Plan, and then monitor plan progress to Core Team </li></ul><ul><li>Coordinate Division’s G21 activities </li></ul><ul><li>Conduct Q&A sessions, opinion polls and brief division personnel on the results </li></ul><ul><li>Support line managers whose work is affected by changes to help them overcome resistance </li></ul><ul><li>Promote & brief division personnel on GASCO’s 8 cultural attributes </li></ul><ul><li>Involve employees in brainstorming sessions </li></ul><ul><li>Present employee’s suggestions to management </li></ul><ul><li>Participate & provide input at G21 Workshops </li></ul><ul><li>Conduct regular meetings with the G21 Core Team </li></ul><ul><li>Establish and maintain good working relationships with other G21 Team members </li></ul>Change Agents Responsibilities
  32. 34. <ul><li>Involvement </li></ul><ul><li>Awareness </li></ul><ul><li>Impact </li></ul><ul><li>Exposure </li></ul><ul><li>Training </li></ul><ul><li>Dynamic & exciting activities </li></ul><ul><li>Networking </li></ul><ul><li>Performance appraisal credit </li></ul><ul><li>Recognition </li></ul><ul><li>Resume experience </li></ul><ul><li>Fulfillment </li></ul><ul><li>Fun! </li></ul>Change Agents Benefits
  33. 35. Support Assessment Review
  34. 36. Support Assessment Review
  35. 37. GASCO Vision Developing Leaders
  36. 38. Site & HQ Feedback Culture Attributes Leadership Research Management Processes <ul><li>Structural Levels </li></ul><ul><li>Roles and </li></ul><ul><li>Responsibilities </li></ul><ul><li>Competencies </li></ul><ul><li>Proficiency </li></ul>Vision & Strategic Objectives Leadership Program Foundation
  37. 39. Leadership Curriculum <ul><li>Leadership </li></ul><ul><li>Building Effective Teams </li></ul><ul><li>Coaching & Counselling </li></ul><ul><li>Time Management </li></ul><ul><li>Conducting Performance Feedback </li></ul><ul><li>Communication Skills </li></ul><ul><li>HSE Work Instructions and Corrective Actions </li></ul>Supervisors Section Heads Superintendents/ Department Heads Plant/Division Managers Executives GM/ AGM <ul><li>Basic Supervision </li></ul><ul><li>Planning & Organizing Work </li></ul><ul><li>Delegation </li></ul><ul><li>Managing Diversity </li></ul><ul><li>Competency Mgmt </li></ul><ul><li>HSE Performance Monitoring </li></ul><ul><li>Building Stakeholder Relationship </li></ul><ul><li>Emotional Intelligence </li></ul><ul><li>Leading Change </li></ul><ul><li>Financial Mgmt for </li></ul><ul><li>Non-Financial staff </li></ul><ul><li>Motivation and Management </li></ul><ul><li>Running Effective Meetings </li></ul><ul><li>HSE Risk Evaluation & Management </li></ul><ul><li>Driving Performance Management </li></ul><ul><li>Budgeting and Cost Control </li></ul><ul><li>Effective Presentation </li></ul><ul><li>Management Decision Making </li></ul><ul><li>Designing Company Change Efforts </li></ul><ul><li>HSE Mgmt System Implementation </li></ul><ul><li>External Leadership Forums </li></ul><ul><li>General Management Training </li></ul><ul><li>Industry Analysis </li></ul><ul><li>Strategic Leadership </li></ul><ul><li>Governance </li></ul><ul><li>HSE Leadership and Commitment </li></ul>Building Current & Future Leaders within GASCO
  38. 40. Leadership Delivery Method <ul><ul><li>Monthly occurrence </li></ul></ul><ul><ul><li>Multi-day site event </li></ul></ul><ul><ul><li>3 Programs per day </li></ul></ul><ul><ul><li>1 ½ to 2 hours </li></ul></ul><ul><ul><li>Agenda distributed prior to the program </li></ul></ul><ul><ul><li>All staff encouraged to attend </li></ul></ul>
  39. 41. Leadership Participation 3333 people attended Leadership Curriculum in 2004 & 2005
  40. 42. Participants by Location LOCATION 2004 2005 TOTAL HQ 511 475 986 ASAB 110 282 392 BUHASA 113 242 355 HABSHAN & BAB 335 642 977 PIPELINES 72 299 371 RUWAIS 74 178 252 TOTAL 1215 2118 3333
  41. 43. GASCO Vision Workforce Development
  42. 44. Jebal Ali Customer Service Journey Ruwais Asab Buhasa Abu Dhabi Habshan/ Bab 1) MIND LEAP We cross over to better performance through a change in thinking April & May 314 people 2) UNDERSTAND OTHERS We solve many problems by understanding other people July & August 367 people 3) LISTEN UP We improve communication when we develop our listening skills November & December 391 people 4) PRO-ACT We take action to help our colleagues February & March 329 people
  43. 45. Interactive Workshops 1401 people attended Customer Service Training in 2004
  44. 46. Commercial Awareness
  45. 47. Participants by Location 1 st Round 2nd Round 3rd Round 4th Round HQ 82 91 55 29 ASAB 38 44 30 16 BUHASA 36 49 24 25 HABSHAN & BAB 118 102 103 54 PIPELINES 26 12 - - RUWAIS 18 25 15 20 TOTAL 318 323 227 144
  46. 48. Do You Know GASCO? 1012 people attended Commercial Awareness in 2005 & 2006
  47. 49. GASCO Vision Annual Survey Program
  48. 50. Survey Program <ul><li>Annual Survey conducted for 3 years </li></ul><ul><li>Participation has increased </li></ul><ul><li>Positive responses show steady increase </li></ul><ul><li>Survey hosted on Company Intranet </li></ul><ul><li>Response period allowed 1 month </li></ul><ul><li>Demographic data collected for last 2 years </li></ul>
  49. 51. 2003 Survey Details <ul><li>Survey consisted of 70 questions </li></ul><ul><li>Responses were anonymous to increase participation </li></ul><ul><li>Employee demographic data initially required but became optional after receiving employee enquiries </li></ul><ul><li>Survey was distributed on 8 Jan 2003 </li></ul><ul><li>Completed surveys were due by 21 Jan 2003 </li></ul><ul><li>Completion date extended to 22 Jan 2003 </li></ul><ul><li>1112 completed surveys were returned in time </li></ul><ul><li>Surveys that arrived after the cut-off date were not included in the analysis </li></ul><ul><li>421 comments & suggestions were collected </li></ul>
  50. 52. <ul><li>1523 surveys, 411 more than 2003 (37% increase) </li></ul><ul><li>Three (36 question) survey instruments used </li></ul><ul><li>Demographic data was collected </li></ul><ul><li>341 comments & suggestions gathered </li></ul><ul><li>Overall ratings: </li></ul><ul><ul><li>HSE: 76% (down 3% but last year only had 3 questions ) </li></ul></ul><ul><ul><li>Teamwork: 67% (up 5%) </li></ul></ul><ul><ul><li>Innovation: 66% (up 3%) </li></ul></ul><ul><ul><li>Professionalism: 65% (up 4%) </li></ul></ul><ul><ul><li>Open Communications: 65% (up 4%) </li></ul></ul><ul><ul><li>Family & Community: 63% (up 10%) </li></ul></ul><ul><ul><li>Adaptability & Learning: 58% (up 9%) </li></ul></ul><ul><ul><li>Performance: 57% (up 7%) </li></ul></ul>2004 Survey Details
  51. 53. <ul><li>1466 surveys, 57 less than 2004 (4% decrease) </li></ul><ul><li>Three (36 question) survey instruments used </li></ul><ul><li>Demographic data was collected 2 nd year in a row </li></ul><ul><li>98% of the responses collected on-line </li></ul><ul><li>255 comments & suggestions gathered </li></ul><ul><li>Overall ratings: </li></ul><ul><ul><li>HSE: 80% (up 3%) </li></ul></ul><ul><ul><li>Teamwork: 70% (up 3%) </li></ul></ul><ul><ul><li>Innovation: 67% (up 1%) </li></ul></ul><ul><ul><li>Professionalism: 69% (up 4%) </li></ul></ul><ul><ul><li>Open Communications: 70% (up 5%) </li></ul></ul><ul><ul><li>Family & Community: 65% (up 2%) </li></ul></ul><ul><ul><li>Adaptability & Learning: 57% (down 1%) </li></ul></ul><ul><ul><li>Performance: 57% (no change) </li></ul></ul>2005 Survey Details
  52. 54. 2004 to 2005 Comparison
  53. 55. Three Year Survey History
  54. 56. Demographics - Participants
  55. 57. 2006 General Category Ratings
  56. 58. GASCO Vision Tools for Supporting Change
  57. 59. Continual Communications
  58. 60. Monitoring the Change
  59. 61. G21 Poster Competition
  60. 62. <ul><li>Align Work Efforts with Strategic Objectives & KPIs </li></ul><ul><li>Improve Business Processes & Procedures </li></ul><ul><li>Improve Efficiency Between Divisions & Departments </li></ul><ul><li>Manage, Monitor & Measure Performance </li></ul><ul><li>Improve Leadership & Teamwork Capabilities </li></ul><ul><li>Enhance Corporate Culture </li></ul><ul><li>Encourage Innovation </li></ul><ul><li>Promote Teamwork </li></ul><ul><li>Increase Transparency / Openness </li></ul><ul><li>Transform from “Reactive” to “Proactive” Company </li></ul><ul><li>Pride in Working for a “Great Company” </li></ul>Benefits of GASCO 21
  61. 63. Finally -- Lessons Learned <ul><li>Underestimated Scope & Magnitude of the Change </li></ul><ul><li>Determining Manpower Needs is Critical </li></ul><ul><li>Change Efforts Require Dedicated Resources </li></ul><ul><li>Overcoming Resistance-to-Change Takes Time </li></ul><ul><li>Management Support Must Be Visible at all Times </li></ul><ul><li>Support of Both Managers & Employees is Required </li></ul><ul><li>Everyone Must “Walk-the-Talk” </li></ul>
  62. 64. “ The crucial lesson is that management is the message. Everything managers say – or don’t say – delivers a message. Too many managers assume that communications is a staff function, something that human resources or public relations is to take care of. In fact, communications must be priority of every manager at every level in the company. If there is one single rule of communications for leaders, it is this: when you are so sick of talking about something that you can hardly stand it, your message is finally starting to get through!” From “Managing Change” by J. D. Duck Harvard Business Review on Change One Last Thought
  63. 65. Additional Information
  64. 66. The Society for Human Resource Management (SHRM) is the world's largest association devoted to human resource management. Representing more than 200,000 individual members, the Society's mission is to serve the needs of HR professionals by providing the most essential and comprehensive resources available. What is SHRM
  65. 67. ASTD (American Society for Training & Development) is the world's largest association dedicated to workplace learning and performance professionals. ASTD's 70,000 members and associates come from more than 100 countries and thousands of organizations--multinational corporations, medium-sized and small businesses, government, academia, consulting firms, and product and service suppliers. What is ASTD?
  66. 68. The Human Capital Institute (HCI) is a professional organization dedicated to leadership in the business science of Talent Management. Members are Human Capital professionals & executive leaders who share the conviction that TALENT is the most powerful competitive lever in a knowledge economy. What is HCI?
  67. 69. <ul><ul><li>Education is not the filling of a pail, but the lighting of a fire… </li></ul></ul>William Butler Yeats William Butler Yeats (1865 –1939) was an Irish poet, dramatist and public figure. Yeats was awarded the Nobel Prize for literature in 1923 for poetry.
  68. 70. Questions ?