PRESENTATION OUTLINEPRESENTATION OUTLINE

WHY CHANGEWHY CHANGE

WHAT TO CHANGEWHAT TO CHANGE

REINFORCINGREINFORCING

TELKOM KENYA LIMITED

WHY ARE WE IN WHY ARE WE IN BUSINESSBUSINESS

Make MoneyMake Money

Have Fun

ECONOMIC & SOCIAL FORCES DRIVING THE NEED FOR MAJOR CHANGE IN ECONOMIC & SOCIAL FORCES DRIVING THE NEED FOR MAJOR CHANGE IN

ORGANISATIONORGANISATION TECHNOLOGICAL

CHANGE

Faster and better Communication

Faster and better transportation

More information networks connecting people globally

MATURATION OF MARKETS

IN DEVELOPED COUNTRIES

Slower domestic growth

More aggressive exporters

More deregulation

INTERNATIONAL ECONOMIC

INTEGRATION

Fewer tariffs (GATT)

Currencies linked via floating exchange rates

More global capital flows

FALL OF COMMUNIST

AND SOCIALIST REGIMES

More countries linked to the capitalist system

More privatization

MORE HAZARDSMore competition

Increased speed

MORE OPPORTUNITIES

Bigger markets

Fewer barriers

THE GLOBALISATION OF MARKETS AND COMPETITION

MORE LARGE-SCALE CHANGE IN ORGANISATIONS

To avoid hazards and/or capitalize on opportunities, firms must become stronger competitors. Typical transformation methods include:Reengineering Mergers and acquisitions

Restructuring Strategic change

Quality Programmes Cultural change

FOCUS OF CHANGEFOCUS OF CHANGE

PEOPLE &BEHAVIOURS

PROCESSES

TOOLS

WHERE ARE YOU?WHERE ARE YOU?Stage 1 Stage 11 Stage 111 Stage lV

Organization Central

People R O B O T S PEOPLE

Materials

Process Long setupSingle purpose batch

Rapid setupMulti purpose flow

Methods Command control Problem solving teamwork

Trust Hardly any Little Some A great deal

BREAKING TRADITIONSBREAKING TRADITIONSFACTORS TRADITIONAL IT

INVENTORY ASSET LIABILITY

LOT SIZES FORMULAS IMMEDIATE NEEDS

SET UPS ACCEPT MINIMISE

QUEUES INVESTMENT ELIMINATE

SUPPLIERS ADVERSARIES CO-WORKERS

QUALITY TOLATE SCRAP ZERO DEFFECTS

MAINTENANCE REMEDIAL PREVENTIVE

LEAD TIMES LONGER SHORTER

WORKERS FOLLOWERS THINKERS

Holistic InitiativesHolistic Initiatives

Profits

“ EOS “

Soft Hard

“ BPR ” “ GO COST ”

Organized Common Sense

Management of PeopleManagement of PeopleStages 1,11,111 Stage IV

Traditional and static Broad potential, and dynamic

MANAGEMENT

Power Is natural resources Is knowledge

Organization Is built on hierarchy Is built on synergy/matrix

Management Is by command and control Is by empower and coach

Supervisors Flourish Vanish

Employees Take orders Make team decisions

Leadership Is by warriors Is by facilitators

Focus Is on shareholders Is on customers

Relationships Focus on the individual Focus on the team

Status Is gained by seniority Is gained by creativity

Productivity Is measured by production Is measured by quality

Everybody Is a competitor Is a customer

COMMUNICATIONCOMMUNICATIONStage 1

ExploitativeStage 11

BenevolentStage 111

ConsultativeStage IV

Participative

Authoritative GroupCOMMUNINICATION

How much communication is aimed at achieving the organization's objectives

Very little Little Quite a bit A great deal

What is the direction information flow?

Downward Mostly downward

Down and up Down, up and sideways

How is downward communication accepted?

With suspicion

Possibly with suspicion

With caution With an open mind

How accurate is upward communication?

Often wrong Censored for the boss

Limited accuracy

Accurate

How well do superiors know problems faced by subordinates?

Know little Some knowledge

Quite well Very well

BIG QBIG Q

IS THE PROBLEM MANAGING IS THE PROBLEM MANAGING

OROR

LEADING???LEADING???

MANAGEMENT VERSUS MANAGEMENT VERSUS LEADERSHIPLEADERSHIP

Produces a degree of predictability and order and has the potential to consistently produce the short-term resuslts expected by various stakeholders (e.g, for customers, always being on time; for stockholders, being on budget)

Produces change, often to a dramatic degree, and has the potential to produce extremely useful change (e.g new products that customers want, new approaches to labour relations that help make a firm more competitive)

LEADERSHIPEstablishing direction: Developing a vision of the future – often the distant future-and strategies for producing the changes needed to achieve that vision

Aligning people: Communicating direction in words and deeds to all those whose cooperation may be needed so as to influence the creation of teams and coalitions that understand the vision and strategies that accept their validity

Motivating and inspiring: Energizing people to overcome major political, bureaucratic, and resource barriers to change by satisfying basic, but often unfulfilled, human needs.

MANAGEMENTPlanning and budgeting: Establishing detailed steps and timetables for achieving needed results, then allocating the resources necessary to make it happen

Organizing and staffing: Establishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, and creating methods or systems to monitor implementation.

Controlling and problem solving: Monitoring results, identifying deviations from plan, then planning and organizing to solve these problems

Produces a degree of predictability and order and has the potential to consistently produce the short-term resuslts expected by various stakeholders (e.g, for customers, always being on time; for stockholders, being on budget)

Produces change, often to a dramatic degree, and has the potential to produce extremely useful change (e.g new products that customers want, new approaches to labour relations that help make a firm more competitive)

THE TRUTH ABOUT THE TRUTH ABOUT SUCCESSSUCCESS

SUCCESSFUL CHANGE IS 70-90 SUCCESSFUL CHANGE IS 70-90 PERCENT LEADERSHIPPERCENT LEADERSHIP

MANAGEMENT ACCOUNTS FOR 10-MANAGEMENT ACCOUNTS FOR 10-30 PERCENT30 PERCENT

ESTABLISHING A SENSE ESTABLISHING A SENSE OF URGENCYOF URGENCY

Establishing the market and Establishing the market and competitive realitiescompetitive realities

Dealing firmly with sources of Dealing firmly with sources of complacency complacency

Identifying s. w. o. t. s.Identifying s. w. o. t. s.

WHY A TEAM?WHY A TEAM?

NO INDIVIDUAL IS EVER ABLE TO DEVELOP THE RIGHT VISION

COMMUNICATE IT TO A LARGE NUMBER OF PEOPLE

ELIMINATE ALL THE KEY OBSTACLES LEAD AND MANAGE DOZENS OF CHANGE PROJECTS

WEAK COMMITTEES ARE EVEN WORSE!!

PEOPLE TO AVOIDPEOPLE TO AVOID

THOSE WITH EGOS THAT FILL UP THE ROOM, LEAVING NO SPACE FOR ANYBODY ELSE

“SNAKES” – PEOPLE WHO CREATE ENOUGH MISTRUST TO KILL TEAM WORK

RELUCTANT PLAYER

THE RIGHT PEOPLETHE RIGHT PEOPLE

STRONG POSITION POWER, BROAD EXPERTISE, AND HIGH CREDIBILITY

GOOD LEADERSHIP AND

MANAGEMENT SKILLS

CREATE TRUST

-OFF-SITE EVENTS

-LOTS OF TALK AND JOINT ACTIVITIES

DEVELOP A COMMON DEVELOP A COMMON GOALGOAL

SENSIBLE TO THE HEAD

APPEALING TO THE HEART

DEVELOPING A VISION DEVELOPING A VISION AND STRATEGYAND STRATEGY

CREATING A VISION TO DIRECT THE CHANGE EFFORT

DEVELOPING STRATEGIES FOR ACHIEVING THAT VISION

COMMUNICATING THE COMMUNICATING THE CHANGE VISIONCHANGE VISION

USING EVERY VEHICLE POSSIBLE TO CONSTANTLY COMMUNICATE THE NEW VISION AND STRATEGIES

HAVING THE GUIDING COALITION ROLE MODEL THE BEHAVIOUR EXPECTED OF EMPLOYEES

EMPOWERING BROAD EMPOWERING BROAD BASED ACTIONBASED ACTION

GETTING RID OF OBSTACLES

CHANGING SYSTEMS OR STRUCTURES THAT UNDERMINE THE CHANGE VISION

IDENTIFYING AND DISCUSSING CRISES OR MAJOR OPPORTUNITIES

EMPOWERING PEOPLE TO EMPOWERING PEOPLE TO EFFECT CHANGEEFFECT CHANGE

COMMUNICATE A SENSIBLE VISION TO THE

EMPLOYEES

MAKE STRUCTURES COMPATIBLE WITH THE

VISION

PROVIDE THE TRAINING EMPLOYEES NEED

ALIGN INFORMATION AND PERSONNEL SYSTEMS TO THE VISION

CONFRONT SUPERVISORS WHO UNDERCUT NEEDED CHANGE

GENERATING SHORT-GENERATING SHORT-TERM WINSTERM WINS

PLANNING FOR VISIBLE IMPROVEMENTS IN PERFORMANCE, OR IMPROVEMENTS IN PERFORMANCE, OR WINS

CREATING THOSE WINS

VISIBLY RECOGNISING AND REWARDING PEOPLE/TEAMS WHO MADE THE WINS POSSIBLE

FORMS OF WASTEFORMS OF WASTEWATING

REWORK

MOTION (PEOPLE)

TRANSPORTATION (MATERIALS)

STORAGE

OVER-PRODUCTION

OVER-PROCESSING

CONSOLIDATING GAINS CONSOLIDATING GAINS AND PRODUCING MORE AND PRODUCING MORE

CHANGECHANGE

USING INCREASED CREDIBILITY TO CHANGE ALL SYSTEMS, STRUCTURES, AND POLICIES THAT DON’T FIT TOGETHER AND THAT DON’T FIT THE TRANSFORMATION VISION

HIRING, PROMOTING, AND DEVELOPING PEOPLE WHO CAN IMPLEMENT THE CHANGE VISION

REINVIGORATING THE PROCESS WITH NEW PROJECTS, THEMES, AND CHANGE AGENTS

WHY MOREWHY MORE

RESISTANCE IS ALWAYS AWATING TO REASSERT ITSELF

PROBLEM OF INTERDEPENDENCE

- WHAT HAPPENS IN SALES HAS

IMPLICATIONS TO SUPPLIES

ELIMINATION OF FALSE CUSTOMERS INCREASE VELOCITIES

ANCHORING NEW ANCHORING NEW APPROACHES IN THE APPROACHES IN THE

CHANGECHANGE

CREATING BETTER PERFORMANCE THROUGH CUSTOMER AND PRODUCTIVITITY – ORIENTED BEHAVIOUR, BETTER LEADERSHIP AND EFFECTIVE MANAGEMENT

ARTICULATING THE CONNECTIONS BETWEEN NEW BEHAVIOUR AND ORGANISATIONAL SUCCESS DEVELOPING MEANS TO ENSURE LEADERSHIP DEVELOPMENT AND SUCCESSION

WHAT IS CULTUREWHAT IS CULTURE

CULTURE REFERS TO THE NORMS OF BEHAVIOUR AND SHARED VALUES AMONG A GROUP OF PEOPLE

IT POWERFULLY INFLUENCES HUMAN BEHAVIOUR

ITS DIFFICULT TO CHANGE AND BEING INVISIBLE MAKES IT HARD TO ADDRESS DIRECTLY

YOU CANNOT EASILY MANIPULATE

ANCHORING CHANGE IN A ANCHORING CHANGE IN A CULTURECULTURE

REQUIRES A LOT OF TALK

-WITHOUT VERBAL INSTRUCTION AND

SUPPORT, PEOPLE ARE OFTEN

RELUCTANT TO ADMIT THE VALIDITY

OF NEW PRACTICES

MAY INVOLVE TURNOVER

-SOMETIMES THE ONLY WAY TO

CHANGE A CULTURE IS TO CHANGE

KEY PEOPLE

ANCHORING CHANGE IN A ANCHORING CHANGE IN A CULTURECULTURE

MAKES DECISION ON SUCCESSION

CRUCIAL

- IF PROMOTION PROCESSES ARE NOT CHANGED TO BE COMPATIBLE WITH THE NEW PRACTICES, THE OLD CULTURE WILL REASSERT ITSELF

TELKOM KENYA LIMITED