Contents :1 Contents Technology of Change: Example Technology of Change : Background Technology of Change : The Process Technology of Change : Behaviour Technology of Change : Balanced Scorecard Technology of Change : Four Stages Technology of Change : The Journey


Slide 2:2 Ice Breaker - Mind Game Please mentally select a card and concentrate on it. Do not tell anybody what it is.


Slide 3:3 Ice Breaker - Mind Game I have selected your card a removed it from the pile – correct? Surprised?


Contents :4 Contents Technology of Change: Example Technology of Change : Background Technology of Change : The Process Technology of Change : Behaviour Technology of Change : Balanced Scorecard Technology of Change : Four Stages Technology of Change : The Journey


Technology of Change :5 Technology of Change Technology of Change evolved as a convergence between Engineering & Psychology


Evolution of Technology of Change :6 Evolution of Technology of Change Psychologists Engineers Technology of Change is a simple solution to a complex problem of changing people


Technology of Change vis-à-vis Business Improvement Techniques :7 Technology of Change vis-à-vis Business Improvement Techniques Technology of Change DRIVES Business Process Improvement An essential competency to overlay and integrate with these methods Six Sigma TPM BPR ERP TBEM


Contents :8 Contents Technology of Change: Example Technology of Change : Background Technology of Change : The Process Technology of Change : Behaviour Technology of Change : Balanced Scorecard Technology of Change : Four Stages Technology of Change : The Journey


Technology of Change Process, Level 1 :9 Phase 3 Roll-Out Phase 2 – Marketing Focus Process Test Market Implementation Phase 1 Preliminary Survey Assess Business Framework Process Design And Development Roll-Outand Improvement Management Reviews Training Process Architecture Process Pilot Implementation Initial Training Define: What works What’s broken What’s missing Identify source of differentiation Identify organisational framework development requirements Prepare detailed implementation plan Set financial targets Ensure achievement of competitive advantage Measure profit improvement against target Scale up new process Establish continuous improvement infrastructure Manage ramp-up Define process based on proven best practices Leverage organisation staff to build acceptance Provide facilitation and training Pilot process to test and gain acceptance Review profit improvement against target Technology of Change Process, Level 1 Auditing Marketing Analysis


Technology of Change Process, Level 2 :10 Technology of Change Process, Level 2 Customer Process Mfg System Process Review Review Phase 0 Screening & Business Analysis Phase 1 System Planning Phase 2 System Design Phase 3 System Implementation Phase 4 System Verification System Program Management Team formed Review Review Review Review Phase 5 System Delivery Handover Roadmap Process Develop Feasibility Study Develop Business Plan n First Customer Shipment n General Availability n Tendering allowed Feature Control Approach Fixed Technology Management Process Other related processes: Phase 0 Team formed System Program Management Team move on P0 P1 P2 P3 P4 P5 1 2 Define Market Requirements 3 Define Product/System Specification 4 Define Program Plan 5 Risk Assessment & Management 6 Develop Site Assembly and Testing Capabilities B Site Planning and Prototyping C Specify and Prepare for System Testing/Verification 16 Develop and Produce Customer Documentation 17 Customer Service Capability Development and Transfer 21 Conduct Customer Trials *) 19 Transfer to Maintenance *) 24 Business view Technical view Sourcing and Subcontracting 13 Prepare and Conduct Launch 18 Define Sales Logistics & Pricing 7 Develop Techno-Economic Model Capability A Deliver to First Customer *) D *) These steps are identified but not yet described for systems Marketing Process n n


Technology of Change Process, Level 3 :11 10. Finalise System Specification Note: This chart show s only the Product Process Steps strongly linked to the System Process Planning & Road mapping Process P-1 P0 P1 P2 P3 P4 Feasibility study start Program Initiation Program Commitment Freeze Delivery Start Customer Process Manage P0.5 Target Confirmation Volume Deliveries & Program Termination 9. Update System Business Plan & Prepare E1 Review 1. Define Business Case Prepare E0 review 11. Prepare E3-Review 19. Prepare E4-Review 24. Prepare E5-Review 2. Describe Features 13. Update System Specification 27. Prepare for Manage phase 21.Deliver & Care Capability. Upgrade SOPs 15. Service Development, Selling and Internal Training Capability 7. Define Reqts to Prod. Programs 3. Define Required Product Programs 4. Draft System Program Plan 16. Create Marketing Capability 22. Marketing Competence Transfer, Launch execution 14. Create System Level Customer Documentation 20. Finalise Documentation 18. System verification test- & upgrade Planning & Build Laboratory 23. System Verification 28. System Pilot Delivery 29. Pilot Customer Acceptance Product Feasibility Study Product Implementation and Testing CE and Type Approval Testing Finalise Pilot Delivery plan Product Specification & Program Planning Product Pilot Delivery Create Product Documentation Product Process E1 E4 Product Feature Integration Functional Testing 25. Service Verification Continuous subcontractor / partner feasibility study 6. Write System Reqts Spec 26. Launch execution 8. Complete System Program Planning: - R&D Plan - Marketing/Piloting Release Mgmt Plan - CS Capability Plan - Partner Plans - Resourcing Plan - Product Operations Plan - Security Plan - Compatibility Plan - Quality Plan - System Program Organisation - System Program Schedule - System Verification plan - System Documentation plan 5. Select Subcontractors/Partners 12. Manage Partners and Subcontractors 17. System Integration Testing Technology of Change Process, Level 3


Project Management Process :12 Project Management Process Development – Tools and Techniques Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Approval Committee CEO VP GM GM Team 1 Facilitator Manufacturing Marketing Quality Sales Customer Service IT Structured development process Phase Review Process Core Team Team 2 Team 3 Team 4 Team 5 Team 7 Concept Plan/spec Develop Test Release Rollout Core Team Leader Core Team Full Project Team Team 6 HR


Application of Technology to Rallis :13 Application of Technology to Rallis Marketing Information System Depot Management System Proactive Selling System Credit Control System Transport Costs -10% Discounts -15% Promotion Costs -15% Credit Days -10% Inventory Levels -10% Sales Volume +5% Sales Mix +2% Risky Debts -15% Balanced Scorecards Regional Steering Committees/Corporate Steering Committees


Project Management Control System :14 Project Management Control System FORECAST PLAN CONTROL REPORT MONTHLY WEEKLY DAILY MAT Daily Reviews Steering Committee The Focus Process Project Schedule Area Schedules Weekly To Do List Daily Planner Action Log Weekly MAT Report Weekly Steering Committee Report Board Reviews Project Reports Action Log Action Log Action Log


Contents :15 Contents Technology of Change: Example Technology of Change : Background Technology of Change : The Process Technology of Change : Behaviour Technology of Change : Balanced Scorecard Technology of Change : Four Stages Technology of Change : The Journey


Organizational Life! :16 Organizational Life! "The mass of men lead lives of quiet desperation and go to the grave with the song still in them." Thoreau


Barriers to Behaviour Change :17 Barriers to Behaviour Change


Slide 18:18 “ Doing what you have always done and thinking somehow magically performance will improve” Behaviour Change What is the definition of madness?


Internal Business Framework :19 Systems (Technical) Education (Tactical) Behavioural Change Processes (Technical & Tactical) Information Activities Training Results Structures (Tactical) People Internal Business Framework


Slide 20:20 Knowledge (what to, why to) Skill (how to) Desire (want to) Habits Habits are patterns of behaviour composed of three overlapping components: knowledge, desire, skill. Behaviour Change


Slide 21:21 Balancing Belief and Commitment Compliance But will it stick? Do it But be aware of other pitfalls Forget it Reformulate what, how and why Lots of action But does it make sense? Intellectual agreement Emotional belief High Low Low High


Managing Resistance to Change :22 Managing Resistance to Change Combat corporate resistance to change Defining areas of responsibility clearly Shift in the approach of the management to change Make change a “ why” problem Define role for top client Combat employee resistance to change Involve client managers from the outset Addressing roadblocks to performance improvement Mapping the employee mindset vis-à-vis change Build change competency into the organization Learning, training and skills development


Behaviour Change Strategies :23 Behaviour Change Strategies A mix and match of four strategies. Rational: People follow self-interest Change based on the communication & incentives. Normative: People adhere to cultural norms and values. Change based on reinterpreting existing norms & values, & developing commitments to new ones. Coercive: People do what they can be made to do. Change based on the exercise of authority and the imposition of sanctions. Adaptive: People adapt readily to new circumstances. Change based on building new organization and transferring people from old to new .


Contents :24 Contents Technology of Change: Example Technology of Change : Background Technology of Change : The Process Technology of Change : Behaviour Technology of Change : Balanced Scorecard Technology of Change : Four Stages Technology of Change : The Journey


Balanced Scorecard :Vision and Strategy ‘To succeed financially, how should we appear to our shareholders?’ KRA’s, KRI’s, Targets Financial Internal Business Process Customer Learning & Growth ‘To satisfy our shareholders and customers, what business processes must we excel at?’ KRA’s, KRI’s, Targets ‘To satisfy our vision, how should we appear to our customers?’ KRA’s, KRI’s, Targets ‘To achieve our vision, how will we sustain our ability to change and improve?’ KRA’s, KRI’s, Targets Balanced Scorecard


Slide 26:ROCE Financial Customer Loyalty On-Time Delivery Customer Process Quality Process Cycle Time Employee Skills Internal/Business Process Learning and Growth Cause-and- Effect Relationships – KPI Roll Down


Contents :27 Contents Technology of Change: Example Technology of Change : Background Technology of Change : The Process Technology of Change : Behaviour Technology of Change : Balanced Scorecard Technology of Change : Four Stages Technology of Change : The Journey


Slide 28:Ensuring Cultural Change …No shortcuts possible... Four Stages of Change


Where Most Things Go Wrong! :29 Where Most Things Go Wrong! The lack of awareness and understanding that a successful change process has to go through ‘four changes in mindset’ is a common reason why many strategic change programmes fail… We also make false assumptions about peoples ability to adhere to new ways of working, and to manage and accept change.


The Four States of Mind! :30 The Four States of Mind! Conscious Unconscious Incompetent Competent Direct Delegate Support Coach


Slide 31:Stage One: Mechanical Compliance People understand that they are “being told” to do something new. God knows why because they don’t see the use of it !! This is normally viewed as extra non-value added responsibility. If you stop checking, they will stop trying.


Slide 32:Stage Two: Understanding People start realising why the data recorded in the system might be of use to them and the business in the future. There is some light at the end of the tunnel. You still need to keep them on close track however.


Slide 33:Stage Three: Usage of the System Recording this new or extra data and working in a new way has now become a fact of life. They now start using (read : analysing) the scorecards. Meetings are held to review the data with the following outcome : Problems get identified and solved. Action points are assigned to persons including time targets. Performance Improves. The wheel starts turning!


Slide 34:Stage Four: Culture Change People don’t think about the newly installed system anymore. It is THEIR system now They fully optimise the usage of data gathered at all levels. They use the Scorecards to drive improvements in business performance. They improve details of the systems as per the requirements.


Slide 35:35 Managing the Chaos! Improvements through new approaches do not happen over night. It take time and there will be confusion and doubt. Eventually as the system usage improves the results will improve. Compliance Installation Implementation And Usage Direct Coach Support Delegate


Slide 36:36 Conscious Unconscious Incompetent Competent Compliance Culture Understanding Usage The Four States of Mind! ‘Minds-Path Matrix’


Slide 37:37 The four mindsets must be measured by auditing. Auditing is a quantitative measure of a qualitative thing! The secret to successful change management is to be able to assess and measure your progress through the ‘minds path’. “ If you can’t measure it, you can’t manage it.” The Key to Success!


Slide 38:38 Audit questionnaires are developed to assess the mindset levels using a structured approach: Closed ended questions for compliance. Open ended questions for understanding. Demonstrative questions for usage. Measuring the Four Mindsets “There are three sides to any argument. Yours, mine and the truth.”


Slide 39:39 The audit questionnaire answers get converted into a scoring scheme… 0 for wrong or not done. 1 for partially right or partly done. 3 for correct or demonstrated. The percentages of each system performance category are plotted and the target is 100%. Measuring the Four Mindsets


Slide 40:40 Usage/Culture The Transition From Compliance To Usage Information Transparency Procedures Accountability Confrontation Positive Confrontation To provide accountability To change behaviour Effective Meetings Structure and set up Action solving root causes Individuals responsible Problem Analysis Root Cause, not symptoms 5 Why analysis Determination, not deferral Systems Compliance


Contents :41 Contents Technology of Change: Example Technology of Change : Background Technology of Change : The Process Technology of Change : Behaviour Technology of Change : Balanced Scorecard Technology of Change : Four Stages Technology of Change : The Journey


Slide 42:42 Success Hope Problem Definition Solution Development Solution Implementation Culture Change Pain The Mind’s Path To Success


Slide 43:43 Managing Expectations Mechanical Compliance Understanding Usage Results! Time System Performance Ensure that everybody involved expects things to get off to a slow start!


Slide 44:44 Managing Expectations: Chaos Theory Process Improvement Fire Fighting Time Consumed Today Future Extent Of Chaos Be prepared for the new systems to initially be perceived as additional work, it takes time for the existing fire-fighting to be replaced by the fire-prevention.


Slide 45:45 Managing Expectations: How Long? A key question is how long does it take to get the results? Provided we have developed the correct systems: “System utilization is directly proportional to business performance.” The speed with which the management requires the systems to be utilized is intimately related to the speed of results arrival. If the results are low, the system utilization will probably be low. Dr Maxwell Maltz book “Psycho Cybernetics” says that it takes 21 days to change a habit. Therefore on daily reviews it is at least one month before we get significant results. On weekly reviews that implies 21 weeks, 5 months. So the more frequently we review, the more frequently we audit, the faster the results.


Slide 46:46 Managing Expectations: How Long? Another model for how long it takes is the retention curve. It is based on the following: After 1 hour we remember 80% of the facts. After 3 hours we remember 40% of the facts. After 3 days we remember 15% of the facts. After 3 months we remember 0.5% of the facts. If you do not review then the learning is lost the habit pattern is broken. Review! Audit! Review!! Audit!! Review!!! Audit!!! Compliance Understanding Usage Culture


Slide 47:47 Implementation Pain and Gain – What People Say GAIN 25% 50% Compliance Understanding Usage Culture 100% 100%+


Soft Indicators of Success :48 Soft Indicators of Success Mr. Hardest Critic has discovered a new role as an Auditor. He is now busy critiquing the new systems/ processes and finding ways of improving compliance. Popular slogan “ In God we trust, everyone else must bring data” Consultants start sleeping through meetings Supervisors are as excited as school kids about their scorecards Change teams know more about scorecards, processes, systems, leadership, savings etc. than the consultants Everybody wonders why did we need a consultant in the first place!!!