Change Management Conference

Conference Presentation
Steve McGrady, Managing Consultant
Meridian 1- Turning Strategy into Results

Business Process Management for Aerospace and
Defence Manufacturing Conference

Amsterdam

April 28-30 2008
Wednesday, 12 November 2008

Effectively Implementing
Change Management into Your
Business Process Strategy

Business Process Change:
What Really Works?

Learning from Other Industries
Steve McGrady
Managing Consultant Meridian1
www.meridian1.ltd.uk


My Background
Inside (1988-2002) IT-driven change
Aerospace Process-driven change
IT Strategic Transformation
Government Mergers & Acquisitions
Financial Services
UK
Outside (2002-2007)
North America
Oil
Health Middle East
Nuclear EU, S Africa, SE Asia


Agenda

Change management and BPM
Lessons learned from other industries
Data from other industries and research
A blueprint for change - what works in practice
Questions


We trained hard. But it seemed that every time we
were beginning to form into teams, we would be
reorganised. I was to learn later in life that we tend
to meet any new situation by reorganising. And
what a wonderful method it can be for creating the
illusion of progress while producing confusion,
inefﬁciency, and demoralisation.

Gaius Petronius Arbiter
The Satyricon 1st Century AD


Change
Management
and BPM
“The main dangers in this life are
the people who want to change
everything - or nothing.”

Nancy Astor

Where Change Management Fits

Improvement
Strategy
Maps 6∑ Change
Management
TQM

Design Modelling Implementation Measurement

Balanced

Lean Scorecard

Improvement


Where Change Management Fits
Cultural
Barriers
Process
Barriers

Technical
Barriers
“As Is” “To Be”

Change Scope: Personal Group Organization


Changing Change Management
Hard
IQ Manag
ement
Scienc
Processes & e View Change Management
Systems
Theory E Vision
Leadership by Example
Motivation
Duration
Soft Capabilities
o logy View
EQ
ess P sych Top Team Commitment
People B usin Additional Effort
Theory O

Scope of Change Management

Information &
Technology
Environment
Products
Strategy Management Business Processes People Services

Structure

Adapted from Kettinger and Grover 1995


What have I learned about change?
Difficult, messy and painful, inevitable
but
Many expect change programmes will fail
Many fear change but some relish it
Future is unknown but it is also predictable
Managers need leaders to make life difficult
Leaders need managers to make life difficult
Empowerment is potent but dangerous
Conversation breaks silos
Followership is now voluntary

Data from
other
industries
The current reality


Change

What degree of change is your organization facing?
(Very High = dramatic changes measured in months)

© 2008 The Benchmarking Exchange (BenchNet)

Change

How quickly does your organisation respond to change?


Change Financial Measurement
Change Management

To what extent does your organization continuously and
rigorously evaluate the following components of its value chain?

30
60
90
120
150

Organisational Culture

138
Individual Emphasis

65
Change

Incentive System 82

ICT
62

No problem ownership
104

Lack of time
93

Non-standardised processes
72

Organisation Structure
88

Physical workspace layout
37

Staff turnover
48
What are the obstacles to change in your organisation?

Top management commitment
90

A Blueprint for
Change - What
Works In Practice
“They always say time changes
things, but you actually have to
change them yourself.”

Andy Warhol

1 Build a ﬁrm foundation for change


2 Assess the Likelihood of Success

Risk and Readiness Assessment
DICE Framework ©2006 Harvard Business School Publishing Corporation


3 Plan the Change
Choose Your Tools
John Kotter - 8 stage change process
Peter Senge - Fifth Discipline
Commitment to Change Model
Cultural Web
Kubler-Ross Model
Appreciative Enquiry


4 Implement and Manage the Change
Adapt yourself
Be clear about:
Teacher - explain and inform* Balancing Ears and Mouth
Doctor - diagnose and prescribe What you say
How you say it
Architect - design and plan
What you do
General - Inspire and direct
How you do it
Hero - empower & liberate Symbols
Stories

*Amernic, J, Craig, R, Tourish, D.; The transformational leader as pedagogue, physician, architect, commander, and saint: Five root metaphors in Jack Welch's letters to stockholders of General ElectricHuman Relations 2007 60: 1839-1872


5 Measure and Improve
Six Sigma
Balanced Scorecard
Lean
TQM
Goals and Objectives
Performance Appraisal
Financial Performance


In conclusion...
Difficult, messy and painful, but inevitable Just get on with it - in a considered way

Many expect change programmes will fail Change management should be systemic

Many fear change but some relish it Identify influencers & listen to objectors

Future is unknown but it is also predictable Use contingency and scenario plans
Managers need leaders to make life difficult Leaders should ask “Why can’t we...”

Leaders need managers to make life difficult Managers should ask “Why should we...”

Empowerment is potent but dangerous Uncontrolled devolution of power=chaos
Conversation breaks silos Encourage conversation & even conflict
Followership is now voluntary Leaders must persuade, inspire and sell

“The main dangers in this life are the
people who want to change everything
- or nothing.”

Nancy Astor

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