„Change to Survive, Change to Win“ Anna Hudáková President of HR Association, Slovakia.
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Transcript of „Change to Survive, Change to Win“ Anna Hudáková President of HR Association, Slovakia.
Introduction
Anna HudákováPresident HR Association, since 2003
Consultant
Career history: Historian: Eastern Slovakia Museum, History of SportAfter 1989:
Sales Manager Coca Cola Amatil HR Director Cocal Cola Amatil HR Director for Czech and Slovak republics, Reemtsma, tobacco Chief HR Officer, Board member, Slovak Telekom
Business Challenges
• global financial and economic crises• efficiency• proactivity• competition• fast changing environment• performance improvement• talent war / talent management• globalisation• creativity and preserving value• leadership
• downsizing• governance• risk• industrial relations• social partners• innovation and
technology• regulation• operation• strategy and growth• sustainability and
climate change
Transition
Management
Relationship
Management
Negotiation and Conflict Resolution
Leadership and
Organizational
Development
Change
CHANGE MANAGEMENT
SATISFACTION/ COMPLACEMENT
„This has nothing to do with me“
DENIAL/ REJECTION
„Why change anyway?“
„I am already doing a good job“
ANGER/ RESISTANCE
„I don´t believe in this“
„No one has explained why this is right“
ANGER
„I disagree with what is happening“
I have another agenda“
COMMITMENT/ EXCITEMENT
„I believe in this“
„I´m living and breathing it“
ENTHUSIASM/ HOPE
„I´m making a difference“
„I want to do this“ ACCEPTANCE/ CURIOSITY
„I´ve had my challenge to contribute“
„I know my role in this“
„I´ve got the right tools to do it“
UNDERSTANDING/ AMBIVALENCE
„I know why it´s happening“
„I´ve seen examples“
AWARENESS
„I have been told what this is“
The change curve
ANGER ENGAGED
8
Set the Change
1. create a sense of urgency
2. pull together the Guiding Team – identification of powerful group
– opinion leaders, change ambassadors
Decide What To Do
3. develop the change vision and strategy, clarify how future will be
different from past, how can you make that future a reality
Eight Step Process of Successful Change (Kotter)
Eight Step Process of Successful Change (Kotter)
02/04/2009
Author / Presentation title
9
Make it happen
4. communicate the understanding and buy-in-vision and strategy
acceptance and understanding
5. empowerment others to act – remove barriers
6. produce short term wins – create visible unambiouguous
success as soon as possible
7. don´t let up – press harder and faster after the first success
Make it stick
8. Create a new culture – hold on to the new ways of behaving and make sure they succeed until they become strong enough to replace old tradition
10
Eight Step Process of Successful Change (Kotter)
Steps After Realisation of Change
02/04/2009
Author / Presentation title
11
• Customers and Shareholders – handling of the reaction to change
• Thinking in Systems
• Big System Changes – Pluses and Minuses
Changes in Slovenské Telekomunikácie/ Slovak Telecom / Slovak Telekom in Years 2000 - 2008Strategic partner Deutsche Telecom – 51% share
Efficiency and productivity increase: Y 2000 – 12,345 employees Y 2002 – 8,075 employees Y 2004 – 5,659 employees Y 2006 – 4,016 employees Y 2008 – 3,704 employees
New strategy, vision, valuesNew products & services Liberalization of the telecommunications market, competitive environment,
fixed to mobile substitutionCustomer orientationNew strategy of marketing & salesNew telecommunications technologiesRebranding - new brand in 2004 and in 2006NGN implementationBroadband and IPTV
Main attribute: CHANGE
Reorganization & restructuring – from branches to centralized management
Transformation eNGine 2004 - 2006
Save for service 2008 - 2010
12
02/04/2009
Ongoing Transformation of ST A balanced mix of activities with impact on the top line and bottom line have to be accomplished in order to secure ST's transformation
Efficiency Improvement
Fault incidence Provisioning times Headcount reduction Automation Streamlining and
simplification
Innovation and growth
Top-line growth
Revenue stabilization Boosting broadband
penetration IT solutions Business solutions Broadband/NGN
implementation Network optimization Triple Play
Key targets of the transformation
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02/04/2009
To change thinkingA challenge of changing our own view from “inside-out” to “outside-in”:- listen to the Voice Of the Customer (VOC) - translate VOC into our internal activities to align products, services, organization, procedures, people, communication … and remove non-value adding activities
To involve peopleA challenge of involving people in situation when they may not see any reason for a change. How to increase awareness of the need? Who to involve at the beginning and how to develop a network of people willing to cooperate? How to make the transformation meaningful for them? How to make it a part of their daily life?
To manage the scope of the programtransformation includes all areas of the business: how to integrate and simplify at the same time? How to ensure thorough execution of the projects and strategies? And, at the same time, to maintain and improve the market position, customers, financial results and the key people.
Three major challenges of ST transformation
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02/04/2009
Culture Change Project Scope:
Communicate Vision, Mission, Strategy and Values
Define, communicate and implement general and specific ST-wide customer behaviour and communication standards, to
support the main strategic objective
Focused management development according to leadership principles
Define, communicate, standardize defined leadership principles
Identify Key Players (experts and managers) crucial for ST current and future performance
Implementation of Code principles through inter-active activities with Management & employees
Start-up the Performance Management system (payment for performance, rewarding for achievements)
Define key competencies and follow-up with focused development and retention plans active activities with
Management & employees
Define, communicate Code of ST employee
eNGine for PeopleMajor subprojects:
1. SUPPORT MANAGERS to perform transformation via enlargement of change management portfolio through training, workshops, consulting, different tools and leadership development
2. Consulting and SUPPORTING EMPLOYEES to become prepared for ST as NGO via introduction and communication of opportunities for new orientation in ST or outplacement, outsourcing and contracting externally and providing them with different targeted options and opportunities to get ready to master this challenges based on eNGine and personal needs.
3. Establishing PROJECT MANAGEMENT Education & Communication as a tool for new organization and management of ST – to support integrative management approach in ST and support the company by transition from line oriented business to more and more cross-functional, project-oriented business
4. Set up COMMUNICATION ACTIVITIES via internal communication channels in order to support the understanding of the changes, to increase cooperation and commitment of the managers and employees and to get a proper and objective feedback of the all activities and ensure the right action in the right moment
Changes in HR Management
VISION, STRATEGY AND VALUES OF ST, .
Remuneration
Trainings anddevelopment
Performancemanagement
Employee satisfaction
Recruiting
Retention
Communication
Organization
Exit Management / Outplacement
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02/04/2009
Vision, strategy and values:Huge ongoing effort in communication of new vision,
strategy and values, using all channels of internal communication, meetings, workshops, road-shows. Now new wave – Story Box – managers are communicating Strategy / Brand / Customer service/ Company Values.
Remuneration:
Unified system of remuneration based on individual and company performance with the aim to be externally competitive and internally fair.
Training and Development:
New centralized system of T&D – technical, managerial, personal, sales training , INGN competence centre. eLearning, etc
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02/04/2009
Organization:
Centralization, restructuring, reorganization, redesign of processes, organization effectiveness and efficiency improvement, Quality Management. Communication:
Critical success factor in time of changes – workshops, meetings, road-shows, offlines, company magazine, intranet, company TV, blog etc.
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02/04/2009
Performance Management:
Performance Management system based on individual and company performance – all employees , Performance-Potential Review – all managers.Employee Satisfaction:
Corporate Culture Change project, regular monitoring of employee satisfaction and feedback from employees – Pulse check (2-3 months) Employee satisfaction survey (2 years)
Retention:
Key players project – HiPo, (High potentials), HiPro (High Professionals)
Recruiting:
New system for recruiting, more than 2500 new employees hired from external market, building of attractive employer brand, cooperation with secondary schools and universities, Telekom Day, Conference for technical schools teachers, etc.Exit management:
Support leaving employees, counseling information support (booklet), arctive job searching, requalification, etc.
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02/04/2009
External customers
ST Units Headcount Development 2000-2010
12 345
10 405
8 075
6 750
5 6595 058
4 016 3 770 3 701 3 592 3 311
0
2000
4000
6000
8000
10000
12000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
S4S Prognosis
21
02
Based on the statistics of Slovak Job Centres – less than 10% of dismissed employees of ST were officaly registered as unemployed
External customers
2,7%
28,1%
54,5%
14,7%
1,8%
19,2%
54,8%
24,3%
0,6%
14,9%
54,0%
30,5%
0,5%
11,9%
53,8%
33,8%
0,5%
10,4%
53,6%
35,6%
0,2%6,4%
51,8%
41,7%
0,2%6,5%
50,8%
42,6%
0,2%6,5%
49,6%
43,8%
2001 2002 2003 2004 2005 2006 2007 2008,31.3
University graduated
Secondary school withleaving exam
Secondary school w/oleaving exam
Primary school
Employees Structure excl. RK by Education(Development 2001-2008, 31.March)
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02/04/2009
Responsibility Towards Employees
ST employee
WORKWORK – LIFE
BALANCE PROGRAM
LEISURE TIME
• Performance management
(remuneration system)
• Flexible Benefits System
• Employee development
• Safety, Health and Protection at Work
• Health Care, Benefits
• Puls Check, Satisfaction Surveys
• Cooperation with schools
• Code of Conduct
• T-Spirit Values
• Social aid:
Collective Labour Agreement
Help in need
• Program for mothers/fathers
• Exit management
• Children camp
• Call Centres (Children`s Day,
St. Nicholas Day)
• Benefits (Section - recuperation)
• Regular Offline parties
• Christmas party
• T-Com Beach Olympic Games
• Education
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02/04/2009
Employees Reaction: Motivation and engagement
Measured by : Employee Satisfaction Survey (every 2nd year)
spirit@telekom – pulse check (4 x a year)
- participation around 70 % and more
82 % of ST employee would recommend our products to their friends and
relatives
loyalty index 4 (1 – 5 scale)
89 % of employees like the job in ST
56 % are motivated to work in ST even with more effort as required
63 % are motivated to improve their performance
89 % consider the working tasks in ST as the challenge
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02/04/2009
Customers ReactionTRI*M Index – Customer Retention Intensity Measured By One KPI
TRI*MINDEX40-70
TRI*MINDEX40-70
TRI*MINDEX40-70
TRI*MINDEX40-70
VIRTUALLY
LOST
VULNERABLE
POSSIBLY
VULNERABLE
RETAINED
European benchmark - average for fixed line operators:
54
10 - 40 70-100
TRI * MINDEX<10
INDEX INDEXINDEX>100
TRI * MTRI * MTRI * M
HIGHLY RETAINED
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02/04/2009
Positive TRI*M Development 2001-2007All Customers
European average 54
2002 2003 2004 2005 2006 2007
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02/04/2009