Managing change during reorganization
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Transcript of Managing change during reorganization
© 2015 Nakisa Inc. All rights reserved.
Managing change during reorganization
#NakisaHCM
© 2015 Nakisa Inc. All rights reserved. 2
Providing solutions since 2001
Headquartered in Canada
Leader in HCM and Financial Solutions
700+ enterprise customers
subscribers 4M+
Available in
languages
18
Utilized in
125 countries
Caters to
24+ industries
@NakisaInc
#NakisaHCM
#NakisaHCM
3 © 2015 Nakisa Inc. All rights reserved.
HCM Technology & Transformation Solutions
We help you design for integrated human capital management Strategic services for iHCM program, process and change planning
We implement with excellence Implementation services using our proven 4LENSES APPROACH®
We help clients optimize and take it to the next level Support services to drive adoption, optimization and business value
Implementing the best in HCM technologies since 2006 Certified implementation partner for best-of-breed HCM Suites
We help clients build and maintain job content for an integrated world Today’s integrated HCMS platforms require scalable job content that transcends the HR functions. JDMS® combines best practice competency and job design methods with our own SaaS-based content development engine (integrates with all HCM platforms)
With 45+ healthcare clients and counting we know healthcare! Helping healthcare achieve regulatory compliance, patient satisfaction and efficiency through process, content and technology accelerators
© 2015 Nakisa Inc. All rights reserved. 4
Key business trends
Leading the change
Nakisa solutions
Key takeaways and recommendations
Agenda
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Why change management?
6 © 2015 Nakisa Inc. All rights reserved.
Current business challenges
• Human Capital
• Operational Excellence
• Innovation
• Customer Relationships
• Global Political/Economic Risk
• Government Regulation
• Global Expansion
• Corporate Brand and Reputation
• Sustainability
• Trust in Business
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01
02
03
04 05
Which strategic initiatives are HR executives most focused on?
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Process
When is change management needed?
Process
People
Structure Culture
Systems
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Organizational models Culture
• Client and field driven • Variation: “have it your way” mindset
IT • Customer database linking internal & external information • Knowledge bases built around experience
Core Processes • Client Acquisition • Solution driven • flexible procedures
Mgmt systems • Revenue and share of wallet driven • Rewards based on client feedback • Lifetime value of client analysis
Organization • Entrepreneurial client teams • High skills in the field
Customer Intimacy Product Leadership
Culture • Concept, future driven • Variation: “out of the box” Mindset • Attack, go for it win
IT • Person to person communication systems • Technologies enabling cooperation and knowledge management
Core Processes • Invention, commercial. • Market exploitation • Disjoint work procedures
Mgmt systems • Decisive, risk oriented • Reward individuals’ innovation capacity • Product life cycle profitability
Organization • Ad hoc, organic and cellular • High skills abound in loose knit structures
Culture • Disciplined teamwork • Process focused • Conformance, “one size fits all” mindset
IT • Customer database linking internal & external information • Knowledge bases built around experience
Core Processes • Product delivery and basic service cycle • Built on standard, no frills fixed assets
Mgmt systems • Command and control • Compensation fixed to cost and quality • Transaction profitability tracking
Organization • Centralized functions • High skills at he core of the organization
Operations Excellence
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What is change management?
Definition: The process, tools and techniques to manage the people side of change to achieve the required business results
• A process used by project teams to manage the people side of the change process
• A management competency
• A strategic capability
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Change management process and tools
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Solution is designed, developed and delivered effectively
(Technical side)
Solution is embraced, adopted and utilized effectively
(People side)
+
Project management and change management have a joint
value proposition oriented toward business results
= Success
Current
state
Transition
state
Future
state
Project management
Change management
Integrating change management & project management
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The Goal of change management Address and manage the natural human dynamics of change to achieve better stakeholder buy-in and facilitate a smoother and more effective transition.
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Why change management fails
• Lack of clarity in purpose
• Lack of transparency
• Lack of focus
• Misalignment with strategic goals
• Ineffective communications
• Insufficient employee involvement
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Leading the change
“It is not the strongest of the species that survives, nor the most intelligent
that survives. It is the one that is the most adaptable to change.” - Charles Darwin
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Establishing a sense of urgency Forming a
powerful guiding
coalition
Creating a vision
Communicating the vision
Empowering others to act on the vision
Planning for and creating short-wins
Consolidating improvements and producing
still more change
Institutionali-zing new
approaches
Transforming organization
process
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Leading change From minor to major transformation
Department alignment
New management Consolidations
New retail stores Consolidation of
development offices Opening new
markets
Consolidation of supply chains
Realign to new culture
Moving to new operating model
Right sizing of major levels
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Leading change Change impacts the entire business
Process
People
Structure Culture
What do you need to
accelerate this process?
What do you need to ensure the result is
accurate?
Systems
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Assessing current state
What’s working What isn’t working Potential barriers
Structure
Process
People
Culture impact
Systems
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Analyzing the gap between present & future business reality
Current Business Model
New Business Model
Strategic Human Resource Plan
Change
Gap Analysis
{
{ Ex
tern
al
Fact
ors
Internal Factors
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Risk Management Curve
Continuous Improvement
Transformational
High Risk
• Risk of failure: 5 – 10%
• Risk of failure: 20 – 35%
• Risk of failure: 35 – 50%+
Incremental
• Risk of failure: 10 – 20%
Ch
ange
Mgm
t. In
vest
me
nt*
Implementation Risk 0
5 - 10%
10 – 17.5%
17.5 - 25%+
0 – 5%
* % Project Budget to Add for CM/C
Common Implementation Risks Complexity of Change Readiness to Manage Change Change Impact on Users Compressed Schedule Competing Initiatives History of Failed Implementations Resource Gaps (Team, Budget) Insufficient Motivation for Change
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© 2015 Nakisa Inc. All rights reserved.
Leadership across all levels is key
“The character of an organization’s leadership determines a company’s destiny.” Forbes
“Men make history and not the other way around. In periods where there is no leadership, society stands still.
Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.”
Harry S. Truman
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Importance of executive sponsors
36% 40%
73%
85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Sponsor was veryineffective (average
score < 2)
Sponsor wasineffective (average
score between 2 and3)
Sponsor was effective(average score
between 3 and 4)
Sponsor was veryeffective (average
score between 4 and5)
Correlation of sponsor effectiveness to
meeting project objectives
Sponsor effective rating average
Perc
ent of re
spondents
that m
et
or
exce
ede
d p
roje
ct o
bje
ctive
s
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
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Key executive sponsor responsibilities
The Prosci® Project Change Triangle (PCT) is a trademark of Prosci, Inc. All rights reserved.
Resources Strategy and scope
Timing and dates
Executive decisions
Executive actions
Active and visible participation
Direct communication
Coalition building
Leadership/ Sponsorship
Project Management
Change Management
Projects meet objectives
Projects finish on time and on budget
Return on investment (ROI) realized
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Communicate directly and often Participants identified senior business leaders as the preferred senders of messages about the business reasons for the change
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other
Change management team leader
Change management team member
Project team leader
Project team member
Human Resources representative
The employee's supervisor
Department head
Senior manager
Executive manager
CEO/President
Percent of respondents
Business messages
Personal messages
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
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Are you ready for change?
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It’s all about Human Capital
HR asked to provide business value
Effective management of change
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To do list for successful change management
Model differential scenarios
Define clear business outcomes
Know your talent
Collaborate and manage change throughout the company
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What does this mean for HCM?
Aggregated macro views of organization
Strategic planning, design capabilities
Collaboration, transparency and objective-based
Cascading views, functionality, objectives from macro to micro
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Nakisa’s Strategic Organizational Design Accelerator
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Strategic Organizational Design Accelerator Enabling strategic change
• High level reorganization and strategic planning tool
• Macro views and analytics
• Macro planning functionality
• Model and compare
• Objectives planning
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Strategic Organizational Design Key features
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• Collaborative “scratch pad” for design
• Assessment and comparison functions
• Complex analytics (e.g. SOC, depth, fully loaded costs)
• Merge/Split, Grown/Shrink
• Copy/clone or import by template
• Set and monitor cascading targets
• Integrated cascading workflow
• Export models and distribute
• Gain employee buy-in
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Strategic Organizational Design Accelerator Cascading responsibility, more granular functionality
• Re-Organization Cascading Responsibility Assignment
• More granular re-org functionality base on level
• Granular analytics, Objectives inherited from top level
• Changes roll-up to strategic level
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ABCCompany has embarked on a global imitative to transform from a Product style organization to a Consulting style organization. Pursuant to this goal a complete shake-up of company structure is required. A design team has been assembled to model proposed high-level structures, and based on selection to design and assign cascading targets for business unit senior VP’s.
Solution demonstration Story Flow
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VP/ LOB Mangers
HRAdm/Manager HR Compliance
Central re-org team
Executive
SVP/ VP
HR Professional Executive
SVP/ VP
Central re-org team
1 2 3 4 5
Large-scale re-org plan with cascading assignments
• Multi-step process with many actors
• Top level assessment and BU planning
• Set the objectives and KPIs
• Cascading objectives to LOB managers/HR
• Approval review and sign-off
• HR compliance and write-back #NakisaHCM
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Strategic Organizational Design Accelerator Business Scenario: organizational design, assess & benchmark
Define, assess and benchmark Organizational Design principles across the organization
Establish OD standards for your organization
View/Assess organizations based on these standards
Use these standard in all org change processes
Track critical OD metrics such as:
Span of Control
Layers, Depth
Pay Ratio Reporting
Use industry benchmarks in your analysis
Set targets and monitor
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People
Strategic Organizational Design Accelerator
Benefits
• Create & compare org structures • Gain deep analytical insight • Merge, cleanse & align • Rearrange structures and
objectives • Set cascading designs and
objectives • Share & collaborate
ROI Value-accelerated HR
Realize value of ReOrg
Improve clarity of talent strength & quality
Reduce uncertainty & flux, enhance retention
Reduce time & resources
Improve stakeholder buy-in
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© 2015 Nakisa Inc. All rights reserved. 39 #NakisaHCM
Key takeaways and recommendations
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Key takeaways
Model differential scenarios
Define clear business outcomes
Design the communication and training strategy to empower people to embrace the change
Know your talent
Collaborate and manage change throughout the company
Nakisa has all the tools to assist!
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© 2015 Nakisa Inc. All rights reserved.
Thank you! Questions?
#NakisaHCM
Please contact us at [email protected]
Book a demo now!
http://www.nakisa.com/demo-request-form
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Useful resources
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LinkedIn, Facebook, YouTube, and Google+ for the latest news & events.
WATCH The organizational and
talent management demo sneak peeks videos youtube.com/user/nakisa
BOOK a personalized product
demonstration: [email protected]
VISIT the Nakisa Resource center
for on-demand webinars, solution briefs, case studies, whitepapers & more. nakisa.com/resources
VISIT the Nakisa Accelerators
web page:
nakisa.com/accelerators
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43 © 2015 Nakisa Inc. All rights reserved. 43
Providing solutions since 2001
Headquartered in Canada
Leader in HCM and Financial Solutions
700+ enterprise customers
subscribers 4M+
Available in
languages
18
Utilized in
125 countries
Caters to
24+ industries
@NakisaInc
#NakisaHCM
#NakisaHCM