This is lecture 2 about the change management principles of sourcing. Mostly the sourcing approach is used as a five of seven step approach. This lecture will make clear that sourcing is a fundamental change an should be managed with the principles of change management.

1. ITSM specialization 2009-2009 The change approach for Sourcing

3. Outcome of the Digital Selftest Test should be made on http://www.twynstragudde.nl/tg.htm?id=8635 White Green Red Blue Yellow Name

4. Vision on Change management

10. Five ways of thinking about change

17. The five colors at a glance open space meetings self-steering teams someone who uses his being as instrument patterns and meanings training and coaching, open systems planning facilitator who supports people the setting and communication assessment & reward, social gatherings HRM expert procedures and working climate project management strategic analysis expert in the field knowledge and results forming coalitions, changing topstructures facilitator who uses his own power base positions and context The result is... by a/an... aimed at... unpredictable self-management superficial under-standing and laissez faire envisaged but not guaranteed a learning organisation excluding no-one and lack of action outlined but not guaranteed HRM systems ignoring power and smothering brilliance described and guaranteed benchmarking and iso systems ignoring external and irrational aspects partly unknown and shifting decision documents and power balances dreaming and lose-lose Result is… Safeguarded by… The pit-falls lie in… create space for spontaneous evolution dynamic process a solution that releases energy create settings for collective learning learning process a solution that people develop themselves stimulate people in the right way exchange exercise a motivating solution, the best ´fit´ think first and then act according to a plan rational process the best solution, a brave new world bring common interests together power game a feasible solution, a win-win situation Something changes when you in a/an and create White-print Green-print Red-print Blue-print Yellow-print

18. Diagnosis

19. Diagnosis Change agent focuses diagnosis on change aspects Change agent focus diagnosis on organizational aspects Static Dynamic System oriented People oriented Developmental approach: sense-making ‘ everything flows’ learning diverse definitions of reality. Actor’s approach: field of influence distribution of power power is limited individual orientation. Entrepreneur’s approach: open system opportunities/threats fit solution oriented all pulling in the same direction growth. Design approach: systemic aspects and tighness registration deviations from the norm internally oriented people are funcionaries.

21. Change strategy

23. Second order change: add a colour To make complex, to boost (dynamic), add conflicts, hybridize, to give meaning, innovate White print Explicit, awareness, reason, learn, customize, experiment, reflect Green print Humanisation, motivate, seduce, appreciate, to give attention, connecting people Red print Rationalize, (over) simplify, schematize, design, (re)solve, control, stabilize Blue print Politicize, destabilize, arrange the support, decide, democratize Yellow print Typical verbs

24. Intervention plan & interventions

29. Change agent

30. Every colour has it’s own change agent A pattern indicator who puts himself (or herself) on the line White print Process supervisor who supports people Green print Coaching manager, HR- or communications-expert who suggests solutions Red print Expert projectmanager who takes care of formulating and implementation, but mandated. Blue print Director of the process who encloses his power Yellow print

31. The Change approach for Sourcing

33. An Change approach for Sourcing … . Change idea Intervention-oriented communication about plan and implementation Support by Change help desk Assessment by Change board Consultation with Sounding board group CIO Client … Characteristics of interaction Characteristics of employees Characteristics of products, pro- cesses & structure Clients, Governance & suppliers Histor y Reason Environment View on change Kick off Change analysis + Culture scan DD MM YYYY Change goals Aligning structure and processes Organizing control and and prepairing sourcing Contracting and realizing sourcing Culture change and competence development Learning to collaborate Inter- ventions And (re) planning Reconsider- Ing goals Measuring progress Plateau 2 Inter- ventions and (re) planning Reconsider- ing goals Measuring progress Plateau 1

34. Mix organizing and change Veranderen en ontwikkelen Design and organizing Governance and culture Structure and processes Systems and technology Mobility and training of staff members, showing results and achieving goals Organizing structure, securing processes, starting sourcing and appointing staff Stable services portfolio Knowledge guarantee Developing collaboration/ managers and building cases Aligning strategy plan, control and supplier selection Architecture and process implementation Functions/competences Culture scan/ change analysis and organizing control Culture scan and specifying functions, governance, and competences Rationalisation, systems, harmonizing management processes Change components

35. Milestones of the Sourcing change approach Yellowprint phase Blueprint phase Redprint phase Greenprint phase Change components In enneahedron Governance model Organization plans Agreements Declaration of collaboration Current situation Desired situation Chosen final situation Possible forms of collaboration Service report User board Change board Migration plan User board Account mgt. Collaboration letter Newsletter Employee participation Closing document Protocol Study group Social plan Change plan Steering committee Sounding board Communication Strategy paper Migratie Overdracht Assets Services ingericht Securing knowledge Game simulation Mgt., control and supply, collaboration team Transition and collaboration Continuous orientation towards change and grip on costs Contract Deal sheet Standards SLA, DAP Employment agreement Program of requirements, Organization plan Formation plan Governance model Game simulation Sourcing choice Sourcing design Governance choice Decision Results Change strategy Sourcing strategy Approach and planning Supply, mgt., control Sponsors, mgt., supply, control and advisors Mgt., control and advisors Sponsors, advisors and mgt. Actors Sponsors, advisors and mgt. Optimization Contracting Making plans Design and decision making Strategy Context Reason View

36. Sample game simulation

38. Sample game simulation about innovation Step 1 Idea to Opprtunity Step 2 Decision to Justify Mngr service Portf Bus Mngr IT Conslt Enterp Arch IO Preferred Solution Planner IT Conslt Sol Analist Impact + Risk analysis IT Bus Mngr Mngr IT Portf DJ Planner Business IT Programmes Enterp Arch PAC PAC Preferred solutions Impact analyse Conclusion (choice) & OK by DJ Idea to Opportunity = document is a physical part of the game = document is NOT a physical part of the game High Level Specs Preferred Solution Supplier Shortlist Impact & Risk Analysis Global Design & Supplier Choice Decision to Justify Document flow Innovation

39. All rights reserved. No part of this presentation may be reproduced or published in any form or by any means without the prior written permission of Twynstra Gudde. Frank Willems [email_address] www.twynstragudde.nl