Reducing Resistance to Change
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Transcript of Reducing Resistance to Change
Webinar
May 13, 2014
Reducing Resistance to Change
Welcome!
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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
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2013 Shingo Prize winner!
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(or _handout.pdf)
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More Webinars! 11:00 am-12:15 pm PT
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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.
People are Highly Predictable Creatures
© 2014 The Karen Martin Group, Inc. 8
Resistance is a Sign that You’ve Done
Something Wrong *
* With a few exceptions.
© 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.
© 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.
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Specific
Conditions Land-based
Value Stream
ChampionJanice Mitchell
Demand Rate 300 units (40 projects; 20 POs) per yearFacilitator Karen Martin
Value Stream Mapping CharterScope Accountable Parties Logistics
Value Stream Equipment type AExecutive
SponsorJoe Abrams
Event Dates
& Times
Mon, Tue, Wed
Feb 3, 4 & 5, 2014
8:00 am - 5:00 pm
Last Step Product shipped
Boundaries &
LimitationsMust 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
LocationBldg B, Conf Room A
Trigger Customer submits RFQ
First Step Sales receives RFQ Logistics
CoordinatorGeorgette 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
TimeframeFuture 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
© 2014 The Karen Martin Group, Inc. 12
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2 7
3 8
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5 10
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2 1
3 2
4 3
5 4
1
2
3
4 Date: Date:
Specific
Conditions Land-based
Value Stream
ChampionJanice Mitchell
Demand Rate 300 units (40 projects; 20 POs) per yearFacilitator Karen Martin
Value Stream Mapping CharterScope Accountable Parties Logistics
Value Stream Equipment type AExecutive
SponsorJoe Abrams
Event Dates
& Times
Mon, Tue, Wed
Feb 3, 4 & 5, 2014
8:00 am - 5:00 pm
Last Step Product shipped
Boundaries &
LimitationsMust 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
LocationBldg B, Conf Room A
Trigger Customer submits RFQ
First Step Sales receives RFQ Logistics
CoordinatorGeorgette 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
TimeframeFuture 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.
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?
© 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.
© 2014 The Karen Martin Group, Inc. 15
It’s Uplifting to Kaizen…
It’s traumatizing
to be kaizen’d.
© 2014 The Karen Martin Group, Inc. 16
The People Who Do the Work are the
Experts
© 2014 The Karen Martin Group, Inc. 17
Leaders determine strategy (what needs to happen)
Workers determine tactics (how it will happen)
© 2014 The Karen Martin Group, Inc. 18
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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
ChampionJanice Mitchell
Demand Rate 300 units (40 projects; 20 POs) per yearFacilitator Karen Martin
Value Stream Mapping CharterScope Accountable Parties Logistics
Value Stream Equipment type AExecutive
SponsorJoe Abrams
Event Dates
& Times
Mon, Tue, Wed
Feb 3, 4 & 5, 2014
8:00 am - 5:00 pm
Last Step Product shipped
Boundaries &
LimitationsMust 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
LocationBldg B, Conf Room A
Trigger Customer submits RFQ
First Step Sales receives RFQ Logistics
CoordinatorGeorgette 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
TimeframeFuture 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.
© 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
Available on the CD that Accompanies The Kaizen Event Planner (www.bitly.com/TKEP)
The Power of Periodic Briefings
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Purpose: Deepen understanding, gain commitment, help people “grow” with change, surface hidden issues.
© 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.
© 2014 The Karen Martin Group, Inc. 23
Beware of Process
Tampering!
© 2014 The Karen Martin Group, Inc. 24
Develop hypothesis
Conduct experiment
Measure results
Refine Standardize
Stabilize
© 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?
© 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.”
© 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.
© 2014 The Karen Martin Group, Inc. 28
Change Doesn’t Have to Be As Hard as We Make It
© 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?
© 2014 The Karen Martin Group, Inc. 31
Karen Martin, President 858.677.6799
@karenmartinopex
Blog & newsletter: www.ksmartin.com/subscribe