A Typical example of Leading Organisational Change

ISSUES /TRENDS

• Low operations efficiency



• Low productivity



• Lack of creativity / ideas from shopfloor/frontlines



• Lack of competencies

TYPES OF CHANGE

• Development Change

CHANGE DRIVERS

• Acquisition of new capabilities



• Retention of Intellectual Capital

STRATEGIC PRESSURE POINTS (SPP)

a. Organisational Capabilities:

- To roll out a Small Group Activities (SGA) to complement Six Sigma initiatives

- Train executives and supervisors who are assigned as SGA Team Leaders on the subject of Continuous Improvement Tools. e.g. 7 QC Tool, QCC projects.

b. Coordinating System

- Introduce and implement competency based recruitment and selection tool for new talent.

c. Culture

- Launch creativity and innovation month in year XXXX . And, to reward to those who give new/good ideas.

CHANGE EQUATION = A+B+C > Z(R)

A = Individual/company/group level of dissatisfaction of the status quo

• 360 degree involvement of staff on the idea generation



• Company wide 10% OPEX reduction exercise

B = Shared Picture (Vision)

"To be the leader in healthcare in the market we shoose to serve"

Strategy

1. Roll out SGA programs



2. Launch creativity and innovation program



3. Introcude and implement competency based recruitment & selection of new talent

C = Acceptable / Doable (1st action steps)

1. Industry benchmarking on productivity



2. Training on SGA for leaders and members



3. Formulate creativity and innovation reward/incentive for excellent and doable ideas from employees



4. Establish core and leadership competency framework

Z = The Cost (Finance, time, Stress)

1. Formation of SGA Team at shopfloor - matrix reporting



2. Innovation month (cost of executing the program)



3. Cost of SGA training



4. Cost of establishing Core and Leadership Competencies framework

8 Steps to Transforming your Organisation

1. Establish sense of urgency


2. Forming an powerful guiding coalition


3. Creating a vision


4. Communicating the vision


5. Empowering others to act on the vision


6. Planning for and Creating a Short-Term Wins


7. Don't Let Up - Consolidate improvement & producing still more change...


8. Make it stick - Institutuionalizing New Approaches

The Process of Change

Unfreeze;

Analyze current situation

• Remove resistance



• Motivate change

Change;

Introduce new bahavior

• Manage control



• Manage transition

Refreeze;

Stabilize new practice

• Manage power



• Institutionalize change

Dealing with Resistance to Change

• Working with stakeholders



• Conduct stakeholders analysis



• Dealing with response to change (Intelectual and emotional)

Individual Resistance

1. Denial



2. Resistance



3. Exploration



4. Commitment

Steps in Intellectual & Emotional Response to Change

1. Listen



2. Explore & Evaluate



3. Make a Decision



4. Take Action

Building stakeholders support through communication

1. Share the change vision



2. Build understanding



3. Clarify personal meaning



4. Build commitment

Note:

We need to establish COMMON GROUND RULES or FRAMEWORK for your team

Change Management Skills:

• Adaptability



• Strategic focus



• Results Focus



• Foster Collaborative Approach



• Facilitate Openness & understanding



• Encourage learning

Note:

Facilitating Openness & Understanding requires an ability to;

1. Be prepared and focused



2. Hear in all



3. Clarify the message



4. Confirm the message



5. Move forward

Leading Organisational Change -1

Types of change

• Evolutionary adaptation




• Development change




• Transitional change




• Drastic change




• Transformational change

Change drivers

• Environmental factors




• Marketplace factors




• Technology




• Customer needs




• Business diversification




• Expansion




• Need for increase profitability




• Acquisition of new capability




• Retention or acquisition of intelectual capital

Strategic pressure points (SPP)

• Business Strategy




• Organisation Structure




• Organisational Capabilities




• Culture




• Coordinating System

Note: A SPP is a change that impacts in a significant way at least 2 of the above characteristics.

Change Equation is A+B+C > Z(R)

A = Individual/organisation/group level of dissatisfaction with the status quo

B = A clear and shared picture of better future

C = Acceptable and doable 'First Action Steps'

Z = The cost (Financial, Time, Stress) of making change

R = Resistance level

What characterises effective leadership in the middle to senior levels in Organisation

Based on research findings by Joan Bragar

The 3 primary qualities of leadership needed for steering organisations through periods of turbulence and uncertainty:
1. Taking personal responsibility for initiating change
2. Creating a vision and strategy for the organisation
3. Trusting and empowering others

Important conclusions from the research findings:

• Without leadership, organisations falter in times of change


• Leadership is critical from the boardroom to the shop floor


• Positions and title bear no relationship to leadership performance


• Leadership involve interdependence more than individualism


• Leaders inspire others to take on leadership tasks


• Outstanding management skills are an essential component of leadership


• Leadership is contextual. Effective leadership is grounded in an extensive knowledge of business environment, and intimate understanding of the industry, company, and work group, and strong sense of organisation's strategy, culture and values.


• Practical experience in conducting leadership training


• Leadership is not a style, it is action

The study pinpointed the 20 practices in 4 distinct areas which correlated most highly with leadership performance and that could be taught most effectively, and they were tested for relevance and impact with individuals in over 100 large companies

INTERPRETING

The first set of actions helps leaders interpret the conditions, internal and external, to their organisation, that affect them and their workgroup. These practice include:

1. Seeking information from as many sources as possible


2. Knowing how your own work supports the organisation's overall strategy


3. Analysing how well the members of the group work together


4. Knowing the capabilities and motivations of the individuals in the workgroup


5. Knowing your own capabilities and motivations

SHAPING

The next group of practices enables leaders to shape a vision and strategy to give meaning to the group work:

1. Involving the right people in developing the workgroup's strategy


2. Standing up for what is important


3. Adjusting plans and actions as necessary in turbulent situations


4. Communicating the strategy of the organisation as a whole


5. Creating a positive picture of the future of the workgroup

MOBILISING

Leaders use these practices to mobilise individuals with ideas, skills and values around a common mission by:

1. Communicating clearly the results expected from others


2. Appealing to people's hearts and minds to lead them in a new direction


3. Demonstrating care for the members of the workgroup


4. Demonstrating confidence in the abilities of others


5. Letting people know how they are progressing towards the group goals

INSPIRING

1. Promoting the development of people's talent


2. Recognising the contributions of others


3. Enabling others to feel and act like leaders


4. Stimulating the thinking of others


5. Building enthusiasm about projects and assignments

Note:

Joan Bragar is the Founder and Principal of Boston-based workplace consulting and leadership coaching practice.