“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

-2

-1.5

-1

-0.5

0

0.5

1

1.51.2 1.2

0.20.1

-0.9

-1.8

-2.1

-1.5

-0.2

0.4 0.40.6

0.70.6

-0.4

0.5

0.1

0.6

-0.1 -0.1

-0.4

0.9

-0.3

0.3

UK GDP GROWTH RATE 2008 -2012 source ONS

External Factors – legal, political, economic…

2007 2008 2010 2012-25

-20

-15

-10

-5

0

5

10

15

1.2 1.20.2 0.1

-0.9 -1.8 -2.1 -1.5-0.2

0.4 0.4 0.6 0.7 0.6

-0.4

0.5 0.1 0.6

-0.1 -0.1 -0.4

0.9

-0.3

0.3

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