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RSankarCountryHead,ManagingTransformationandChangeinOrganizationsThePeopleProgramme-II,May2,2003NewDelhi,Agenda,TheRealityaboutChangeandTransformationStoriesfromthe“Frontlines”TheKeystoSuccess,MercerHumanResourceConsulting,TheRealityaboutChangeandTransformation,Changemakesyoubetter,transformationmakesyoudifferent,Changeis:IncrementalFocusedonimprovingperformanceofexistingbusinessCatchingupAboutbottom-linemanagementExamplesofchangeprocesses:ReengineeringRestructuringBenchmarking,MercerHumanResourceConsulting,Changemakesyoubetter,transformationmakesyoudifferent,Transformationisabout:CreatingauniquefutureChangingtherulesofengagementToplinemanagementExamples:DellCanonMicrosoft,MercerHumanResourceConsulting,Commoncharacteristicsofthechangeandtransformationprocesses,Aclear,compellingandsharedvisionofthefutureFixityofpurposeandconstancyofeffortAroadmapAcquisitionandcreationofnewcompetenciesSensitivitytopeopleissues,MercerHumanResourceConsulting,TheChangemaynotbeplannedbutourreactionstoitcanbe,Anticipatory,Reactive,Incremental,Discontinuous,Tuning,Reorientation,Adaptation,Re-creation,MercerHumanResourceConsulting,Howsuccessfularechangeeffortsinorganizations?,Researchamong200globalorganizationswhichwentthroughsomeformoflargetomediumscalechangeintheleastfewyearsisnotveryencouraging,Source:SaratogaInstitute,2000,MercerHumanResourceConsulting,WhydoTransformationorChangeeffortsfail?,ResistancetoChange,Source:InformationWeek,2001,LimitationsofExistingSystems,LackofExecutiveCommitment,LackofExecutiveChampion,UnrealisticExpectations,LackofCross-FunctionalTeam,InadequateTeamandUserSkills,TechnologyUsersNotInvolved,ProjectCharterTooNarrow,%ageofrespondentscitingtheprimaryfactor,MercerHumanResourceConsulting,Ahardlookathowthechangeprocessworks,DegreeofSupportforChange,OwnershipPhase,Buy-inPhase,Internalization,Institutionalization,Adoption,Try-out,Self-Concern,Understanding,AwarenessPhase,UnawarenessPhase,Time,ittakestimeandaconsidered,deliberateapproach,MercerHumanResourceConsulting,TheRealitycommonerrorsmadebyorganizations,NotestablishingaGreatEnoughSenseofUrgencyNotCreatingaPowerfulEnoughGuidingCoalitionLackingaVisionUndercommunicatingtheVisionNotRemovingObstaclesfortheNewVisionNotPlanningforShort-termWinsDeclaringVictoryTooSoonNotAnchoringChangesintheCorporateCulture,MercerHumanResourceConsulting,Storiesfromthe“FrontLines”,MercerHumanResourceConsulting,“Organizationvitalityandgrowthdependontheleadershipsabilitytocraftsustainablestrategies,effectivelycommunicatetheseandbuildinternalcapacity(andindoingsobalanceincrementalanddiscontinuouschange)”-DrDavidNadlerPartner,Mercer,Thedifferencebetweenwinnersandlosers,ImplementinganewPerformanceManagementFramework,MultinationalPharmacompanywishedtointroduceanewcompetencybasedperformancemanagementsystemManagementfelttherewasaperceivedlackoftechnicalskillsdevelopmentbutwasskepticalofsuccess,Situation,CaseExample#1,“Peoplewillnotacceptthis.Wehavetriedsomanythingsinthepast.Nothingchanged!”-CFO,MercerHumanResourceConsulting,InternalChangeChampionsThebestwaytoreduceresistance,Communicationworkshopswithinternalfunctionalteamof“Experts”DevelopmentofthetechnicalcompetencymodelthroughExpertpanelprocessDetailedandcomprehensivetrainingandbrainstormingsessionsinternalfunctionalteamsontheapplicationsofthecompetenciesandimplementationissuesIntenseInvolvedSomelastedforover10hoursA“dialogue”wascreatedinsidethe“Informal”organizationbythemembersoftheinternalfunctionalteams,CaseExample#1,Newsystemunderimplementation.CFObecamefirsttoacceptrecommendationsashewaspartofthefunctionalteam,MercerHumanResourceConsulting,RestructuringandDownsizing,IndianmediaorganizationhadgonethroughaphaseofrapidexpansionOrganizationstructureandstaffinglevelsneededtobestreamlined,Situation,CaseExample#2,“ThisisanHRinitiative.WhatrolecanIpossiblyplay?Youarethespecialists”-CEO,MercerHumanResourceConsulting,LeadershipSupportBringscredibilitytothechangeprocess,JointprojectteamwithCEOasTeamLeaderDetailedanalysisandresearchbackedbycontinuouscommunicationtoallemployeesVisiblesupportforprojectinunambiguoustermsbytheCEOatpublic/companyforums“BurningPlatform”createdthreatfrommajorcompetitor,CaseExample#2,OwnersandManagementCommitteesacceptedallrecommendations.Phasedimplementationgoingon.Noattritionofhighperformingseniormanagers,MercerHumanResourceConsulting,ConsolidationandAlignment,MobileTelephonyservicesproviderwhichhadexpandedrapidlytomultiplelocationsNewCEObroughtintoconsolidateandbringaboutsynergiesintheoperations,Situation,CaseExample#3,“Thelevelofintegrationhereisdismal.IwenttooneofthelocationstoannounceanemployeeawardforRs.2000andtheRegionalHeadhadalreadypromisedRs.3000.Whatnextifwecannotdosimplethingsright?”-CEO,MercerHumanResourceConsulting,RemovingobstaclestochangeprocessEnsurescommunicationofseriousintent,Createaunifiedorganizationthrough:AunifyingthemeCommonprocessesCrossgeography/entityteamtoaddresskeyissuesTransferofkeymanagersacrossgeographies/entitiesFormalknowledgetransfermechanism,CaseExample#3,Newstructureacceptedandimplementationbeingundertakeninaphasedmanner,MercerHumanResourceConsulting,OrganizationalRenewal,Publicsectorenterprisefacingcompetition,squeezedprofitsandproblemoflargesurplusmanpowerImperativetobringinproductivityfocus,customerorientationandinnovationinarelativelyshorttimeframe,Situation,CaseExample#4,“Ihateconsultants.Howcanyoutelluswhattodowithourbusiness?Iamnotforthisproject!”-ProjectManagerontheClientTeam,MercerHumanResourceConsulting,ComprehensivechangeinterventionsUsingOrganizationalLearningprinciples,Demonstration(ActionLearning)IncentivisationProcessandOrganizationalChangeInstitutionalizingKnowledgeManagementSystemsLeadershipDevelopmentProblemsolvingthroughSystemsThinking,CaseExample#4,ProjectManagerchampionedthechangeeffortafterseeing“quickwin”resultsandimplementationwasextendedforaperiodoftwoyears,MercerHumanResourceConsulting,SpecificInterventions,Demonstration(ActionLearning)Presentationof“warstories”andsuccessstoriesfromwithinIncentivisationRewardandrecognitionforproactiveknowledgesharingandlearningProcessChangeChangesinplantevaluationprocessandparametersChangesinperformanceevaluationsprocessforplantheadsandmanagersMorefrequentrotationofmanagerialstaffacrossplantsLeadershipDevelopmentRewardandrecognitionforproactiveknowledgesharingandlearning,InstitutionalizingKnowledgeManagementSystemsKnowledgesharingamongststaff(structuredplantvisits/shareexperienceonspecificproblems)CommunicationStrongandvisibleCEOsupportCreatingasenseofa“BurningPlatform”(aSharedVision)SystemsThinkingProcessviewoftheorganizationratherthanacompmentalisedviewCreationofaMentalOperatingModel:“GoodforPlantbutBadforCompanyisnotacceptable”,CaseExample#4,MercerHumanResourceConsulting,OrganizationalEffectivenessthroughtechnologyenhancement,Large,successfuldiversifiedprivatesectorconglomerateSeniormanagementfelttheneedforradicalprocessandorganizationalchangetomeettheemergingchallengesandtotakeadvantageofITto(a)reducecotsandimproveefficiencies(b)improvecustomerservice,Situation,CaseExample#5,“WehaveverylowITskilllevel.MostmanagersandstaffarenotevenfamiliarwithMS-WordandExcel.Andyouwillfaceacomplacentattitudeasweareasuccessfulorganization!”-ManagingDirector,MercerHumanResourceConsulting,ComprehensivechangeinterventionsUsingOrganizationalLearningprinciples,Aniterativeapproachtoimplementationfocusingonbuildingself-learningcapabilitieswasdevelopedLargenumbersofstaffwereinvolved.ThisalsoremovedtheresistancetochangeduetoITphobiaintheirminds.Aseriesofawarenesscampaignswerelaunched.InternalChangeChampionsassistedinthiseffort.Prototypingwasconductedininteractivesessionsovertwoiterations.,CaseExample#5,Successfulimplementationwithintimeandbudget.Clearbusinessgainsachievedinfirstyearitself,MercerHumanResourceConsulting,TheKeystoSuccess,CriticalSuccessCriteriainlargescaleorganizationaltransformations,VisiblesponsorshipbytheleadershipteamCreatinga“BurningPlatform”Stableleadershipteam“QuickWins”InternalChangeAgentsEffectivecommunication,MercerHumanResourceConsulting,TypicaltraitsofInternalChangeChampions,SomecharacteristicsofanInternalChangeChampion:In-depthorganizationalknowledgeStakeinprojectsuccessIntegrityandcredibilityPasttrackrecordofinitiatingandexecutingchangeProvenrecordofhighperformanceRespectedbypeergroupandtrustedbysuperiors,MercerHumanResourceConsulting,APlannedApproach:MercersViewpoint,MercerHumanResourceConsulting,MercerHumanResourceConsulting,Youmaynotneedtouseallthecomponentsatatime,Enabledevelopmentoflearningcapabilities,MercerHumanResourceConsulting,Criticalexecutivechallenges,MercerGroup,“Howcanweensurethatourbusinesscreatessustainedvalue?”,“Howshouldweleadandorganizetoexecuteourstrategywhilemaintainingflexibility?”,“Howcanweattract,retain,develop,focus,andmotivatethepeopleweneedtobringourstrategytolife?”,Generalmanagementconsultingfirms,Humanresourcesconsultingfirms,HowdoesMercerHelp:Uniqueproposition,MercerManagement,MercerDelta,MercerHR,MercerHumanResourceConsulting,MercersConsultingTeamPartofa$10billionenterprise,Casestudiesandillustrationofwhatdrivessuccessfulchangeinorganizati
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