“The Inconvenient Truth About Change”
description
Transcript of “The Inconvenient Truth About Change”
“The Inconvenient Truth About Change”
Colin CopelandBob Bell
Graham KennettINCoNVENIENT
TRUTH
What Triggers Changes…
Internal Factors – strengths & weaknesses…
External Factors – legal, political, economic…
2007 2008 2010 2012-2.5
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UK GDP GROWTH RATE 2008 -2012 source ONS
External Factors – legal, political, economic…
2007 2008 2010 2012-25
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UK GDP GROWTH RATE 2008 -2012 source ONS
Crisis change - reactive response to some type of external factor or fear of failure
Chosen change - proactive approach taken by employees within an organisation
Developmental
“doing more of, or better than, what currently
exists.”
Transitional
“implementation of a new desired state requiring
dismantling existing methods.”
Transformational
“implementing an new future state, requiring major and on going
shifts in organisational strategy and
vision”
Not all Change is the same…
"The rate of change is not going to slow down anytime soon. If
anything, competition in most industries will probably speed it
up even more in the next few decades.”
John P. Kotter
What Percentage of Change Programmes Work?
70% of change fails to hit target !
INCoNVENIENT
TRUTH
74,624Change Management Books
on Amazon !
INCoNVENIENT
TRUTH
A compelling
need to change
A clear sharedvision
Capacity for change
Actionable first steps
+ + + =
What are the Key Ingredients…
+ + + =
Are all of these in place ?
A compelling
need to change
A clear sharedvision
Capacity for change
Actionable first steps
Achieving Sustainable Change
A compelling
need to change
+ + + =
LOW PRIORITY – LITTLE ACTION
A clear sharedvision
Capacity for change
Actionable first steps
Achieving Sustainable Change
A clear sharedvision
+ + + =
Achieving Sustainable Change
FAST START – FIZZLES OUT
A compelling
need to change
Capacity for change
Actionable first steps
Capacity for change
+ + + =
Achieving Sustainable Change
ANXIETY AND FRUSTRATION
A compelling
need to change
A clear sharedvision
Actionable first steps
Actionable first steps
+ + + =
Achieving Sustainable Change
HAPHAZARD EFFORTS AND PULLING IN ALL DIRECTIONS
A compelling
need to change
A clear sharedvision
Capacity for change
Let’s consider an organisation’s performance…
CHANGE
Identify Opportunities
CUSTOMER VALUE
Business Activities
Quality
Cost
Delivery
People
Process
PERFORMANCE
Typical Management Process for Improving Performance
Themes
1.Old Fashioned Perceptions2. Justifiable criticisms3. Managers’ role with people4. HR vision..enriching role5. Value adding people6. Examples
1. Old fashioned perception of HR
• Recruitment & Welfare• HR is the administrative function for people
records• Occupied by meetings with employee reps• Quotes employment legislation at managers• Provides blockages rather than solutions• Managers send ‘problem people’ to HR
Meeting today’s needs?• Do you need an HR function in your organisation?• Is its existence a factor of business size?• Do you find HR function helps or hinders?• What key competencies/experience do you expect HR to have?• How do you measure the value of HR’s contributions?
2. Justifiable Criticisms of HR
• Too administrative• Repetitive handling of similar issues.applying old
solutions to repetitive problems• Lack of appropriate expertise/ too generalist• Seen as blocker rather than a Value- adder• Too traditional/rule orientated• Remote from the people and understanding the business• Focus on policing/compliance• Dustbin for multitude of functions• Arrogant: perceiving themselves as essential
HR functional levels• Strategic Input: Direction of travel &
milestones:– Staff numbers; competencies; timings…
• Tactical plan: How to get there:– Communication of vision; standards
improvement; employee/industrial relations…• Operational: Implementation:
– Developed managers ; engaged employees; robust processes…….
What Percentage of HR Time is Pro active?
30%INCoNVENIENT
TRUTH
How Should HR Time be Spent ?
Existing ?
AdminPlanningDelivery
Desirable
3. Managers’ Role
• Manage things ..Processes before People • Justify being too busy to invest time• Should:
– Engage with their people– Set achievable goals– Communicate & motivate– Regularly review performance etc
• HR can be a “Blame target”: never seen; don’t understand …..
• Become a crutch rather than a support
4. HR Vision as value added only if it can…
• Apply additional expertise which complements that of manager
• Can unravel contentious problems and deliver solutions
• Act as expert sounding board • Support the development of good management
practice• Propose sustainable solutions• Be an enabler rather than the doer• Avoid becoming a management crutch
Aspirational HR:Measure the value
–“HR should not be defined by what it does but by what it delivers-results that enrich the organisation’s value to customers, investors and employees”: Ulrich
5. Value Adding People
3 .Training4. Tools for People Management5. Tools for employee engagement6. Industrial/Employee Relations
2.Manpower
Plan &Competence Management
1. PeopleStrategy
7. Employee Career management
Employee Career Cycle
Recruitment/Assessment
Induction/Familiarisationof position
Continuation in Role
Promotion
Redundancy
Termination
Retirement
Outplacement/Termination
Career Progression/Development
Identify Opportunities
CUSTOMER VALUE
Business Activities
Quality
Cost
Delivery
People
PERFORMANCE
Typical Management Process for Improving Performance
Example 1: Handling Recruitment • Risk • Responsiveness• Reliability• Repeatability• Retention
Recruitment: Titanic Disaster?
The Real Cost of Selection
Business Cost
• Poor Performance• Turnover• Instability• Confidence• Reputation• Cost of managing
poor performance
Evidence of competencies
Lack of structured questions
Face Value Interview….
“likeable person”
Identify Opportunities
CUSTOMER VALUE
Business Activities
Quality
Cost
Delivery
People
PERFORMANCE
Typical Management Process for Improving Performance
Example 2: Reducing People/Structures• Volunteers..loose skills• Economic need..short term? Medium? • Choosing redundancy for performance failings• People asset today..gone tomorrow!• Compulsory redundancies.. How to select?
Numbers Slicing
BOTTOMSLICING
Numbers Slicing
TOPSLICING
Numbers Slicing
HIERARCHICALSLICING
Further Opportunities for Change• Time recording• Employee Numbers• Employee absence• Supervising employees• Managing performance• Succession planning• Employee development
Key Challenges
• Empowering employees• Focusing contributions • Reducing management interventions..then structures• Enhancing HR information systems• Managers taking responsibility for people performance• HR in background working on Strategic, tactical and
support mechanisms• Employees operating self-supervision principles• HR in-house or outsourced
Critical Balances• Competent People Managers• Employee engagement• Supportive people/performance processes• Employee self evaluation• HR enabler
Identify Opportunities
CUSTOMER VALUE
Business Activities
Quality
Cost
Delivery
People
Process
PERFORMANCE
Typical Management Process for Improving Performance
What is a Process ?
A process is a collection of related , structured activities or tasks that produce a specific service or product for a particular customer.
Money, Time, Materials Labour
Where will you find a “process” ?
Does the product meet specification ?
Do we have rework or scrap ?
Do we have customer complaints ?
How do I recognise problems with a process ?
Quality
Cost
Delivery
Raw material & inventory costs
Direct & indirect labour costs
Overheads, heat, light, rent…
Inefficiency, unplanned machine downtime
On time to customer requirement
Delivered to company plan
Delivered to correct location & in correct quantity
Identify Opportunities
PERFORMANCE
Activity
Quality
Cost
Delivery
People
Process
Case Study 1 – Large Precision Machining
25% ON TIMEIN FULL
PERFORMANCE
ActivityDelivery
People
Process
Case Study 1 – Large Precision Machining
People
Process
Case Study 1 – Large Precision Machining
• Facilitation of a cross-functional team to tease out the current processes
• Prioritise the issues
• Establish project teams to tackle the issues
• Provide regular mentoring and support
Oh, what a tangled web we weave, When first we practice to deceive! Walter Scott 1808
People
Case Study 1 – Large Precision MachiningINCoNVENIENTTRUTH
• Skills, behaviours, relationships• Conflicting targets• Workload• Commitment
People
Case Study 1 – Large Precision Machining
• Senior management team behavioural profiling
• Team building• Restructuring of senior team• Clear roles and responsibilities• Focus on projects – management• Mentoring
85% ON TIMEIN FULL
PERFORMANCE
ActivityDelivery
People
Process
Case Study 1 – Large Precision Machining
PLAN
DOCHECK
ACT
Identify Opportunities
PERFORMANCE
Activity
Quality
Cost
Delivery
People
Process
Case Study 2 – A West Midlands Paper Mill
9 - 10% Downtime
PERFORMANCE
Activity Cost
People
Process
Case Study 2 – A West Midlands Paper Mill
Engage the People
PERFORMANCE
Activity
People
Process
Case Study 2 – A West Midlands Paper Mill
Cost
PLAN
DOCHECK
ACT
9 - 10% Downtime
INCoNVENIENT TRUTH
Site Director
Production Manager
Shift A Team Leader
Paper Maker 1
Paper Maker 2
Wet End 1
Wet End 2
Take off 1
Take off 2
Shift B Team Leader
Paper Maker 1
Paper Maker 2
Wet End 1
Wet End 2
Take off 1
Take off 2
Shift C Team Leader
Paper Maker 1
Paper Maker 2
Wet End 1
Wet End 2
Take off 1
Take off 2
Shift D Team Leader
Paper Maker 1
Paper Maker 2
Wet End 1
Wet End 2
Take off 1
Take off 2
Engineering Manager
Shift A Team Leader
Mech 1
Mech 2
Elec 1
Elec 2
Shift B Team Leader
Mech 1
Mech 2
Elec 1
Elec 2
Shift C Team Leader
Mech 1
Mech 2
Elec 1
Elec 2
Shift d Team Leader
Mech 1
Mech 2
Elec 1
Elec 2
Site Services Manager HR Manager
Health and Safety
manager
PA
So what went wrong ?
FAST START – FIZZLES OUT
A Clear Shared Vision
PERFORMANCE
Activity
Quality
Cost
Delivery
People
Process
Case Study 1 – A West Midlands Paper Mill
CUSTOMER VALUE
Site Director
Production Manager
Shift A Team Leader
Paper Maker 1
Paper Maker 2
Wet End 1
Wet End 2
Take off 1
Take off 2
Shift B Team Leader
Paper Maker 1
Paper Maker 2
Wet End 1
Wet End 2
Take off 1
Take off 2
Shift C Team Leader
Paper Maker 1
Paper Maker 2
Wet End 1
Wet End 2
Take off 1
Take off 2
Shift D Team Leader
Paper Maker 1
Paper Maker 2
Wet End 1
Wet End 2
Take off 1
Take off 2
Engineering Manager
Shift A Team Leader
Mech 1
Mech 2
Elec 1
Elec 2
Shift B Team Leader
Mech 1
Mech 2
Elec 1
Elec 2
Shift C Team Leader
Mech 1
Mech 2
Elec 1
Elec 2
Shift d Team Leader
Mech 1
Mech 2
Elec 1
Elec 2
Site Services Manager HR Manager
Health and Safety
manager
PA
Communication Breakdown !
Identify Opportunities
PERFORMANCE
Activity
Quality
Cost
Delivery
People
Process
Case Study 2 – Air Gun Manufacturer
Extended Lead Times
PERFORMANCE
ActivityDelivery
People
Process
Case Study 2 – Air Gun Manufacturer
People
Process
Case Study 2 – Air Gun Manufacturer
• Provide training to support new working practices
• Invest in the premises and equipment
• Introduce Lean tools and techniques driving WIP down and quality levels up
Benefits • Lead time reduced from 5 days to 45 minutes• Build costs reduced• Customer returns reduced
Identify Opportunities
PERFORMANCE
Activity
Quality
Cost
Delivery
People
Process
Case Study 2 – Air Gun Manufacturer
PLAN
DOCHECK
ACT
• Significant impact of recession
• After a period of two years, batch production creeps back in
• Lead times have extended to 8 hours
• Supplier quality performance remains a serious issue
Case Study 2 – Air Gun Manufacturer 2 years on INCoNVENIENT TRUTH
People
Process
Case Study 2 – Air Gun Manufacturer• Recruit Operations Manager to run the Factory• Create Team Leader roles• Clarify roles and responsibilities of the Quality
team• Re-visit operator training
• Relentless drive to eliminate line side quality issues
…..THERE IS NO SILVER
BULLET!
INCoNVENIENT TRUTH
In Summary…• Managing organisational change is possible and it
should be an on going process rather than an event.
• Successful change strategies are those customised according to the unique qualities and competitive environment of your organisation….
• PEOPLE + PROCESS = PERFORMANCE