Change Management September 2010

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Managing changeby FluidSeptember 2010

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Page 2Contents3-4 Introductionto Fluid5-6 Change strategies7-9Communicating change management10-11 Reasons for resistance12-14 A successful change management one-day event15-16Learn to love change17-18Self-esteem and time19-20 Communicate through a crisis21-22 Coaching at a time of change23-26 Culture change27-28 Exercise A29-30 Creating a built-to-change organisation31-32 Successfully organising change33-34 People management aspect of change35-36 Measures to assess success of change37-38 Leading change from within39-47 Real-life examples48-49 Exercise B50-51 Case studies52-53 Conclusion and questions

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Page 3Introduction

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Page 4Introduction toFluidFluid Consulting Limited (Fluid) is a specialist human resources consultancy headed by Tim Holden MCIPD 10 years in banking10 years in Human Resources consultancyFluid trading since 2006The core services provided by Fluid are:Retention

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Selection- Attraction- Remuneration & Reward - Outplacement- Training & HR consultancy

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Page 5Change strategies

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Page 6Change strategiesWhat’sthe problem

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Prepare for setbacks

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Find support

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Get started

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Find quick wins

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Out of theirshoes

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Create connections

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Build on synchronicity

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A little help…..Page7Communicating change management

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Page 8Communicating changemanagement 1 of 2Recognise that a vision can come easily; making it happen is the hard part

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Realise that alteringbehaviours will not happen overnight

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Know beforehand whatyou want to achieve and where you want to get to

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Recognise that yourworkforce is not one homogenous mass-messages need to be tailored to individuals and groups

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Encourage two-way dialogueand interaction to promote buy-in and engagement Page 9Communicating change management 2 of 2Involve your audience right from the start

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Remember to communicate‘why’ as well as ‘how’

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Show how thechange is going to improve people’s day-to-day lives, try to avoid jargon and management speak whilst keeping it real

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Use line managersto promote the message and identify credible ‘change champions’

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Senior management mustbe seen to embrace the change and lead by examplePage 10Reasons for resistance

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Page 11Reasons forresistanceParochial self-interest triggered by a fear that something of value that will be lost as a result of the change

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Distrust of thechange agents, triggered by a fear of half-truths and hidden motives

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Different assessments ofthe need for change, with interested parties accessing different sources if information and/or having different interpretations of the same information

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Low tolerance forchange triggered by a fear of not being able to cope in new, unfamiliar circumstancesPage 12 A successful change management one-day event

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Page 13A successfulchange management one-day event 1 of 2Involve people in the day-get them to contribute, don’t just talk at them

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Have a ‘wow’factor, but don’t make it too lavish and expensive. Create something that is innovative and interesting in presentational terms

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Give people theopportunity to have some informal time together (over lunch or coffee perhaps)-that’s where you get networking and communicationPage 14A successful change management one-day event 2 of 2You’ve got to have the top team delivering it, and make sure that this team can communicate with employees in a really effective way

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When talking aboutwhere your organisation is going, keep it simple and straightforward

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To keep costsdown, go for maximum utilisation of your venue. Rent equipment, look at innovative ways of running a contract, and always have an open/competitive bid for the delivery. With competition you get innovation, and a good pacePage 15Learn to love change

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Page 16Learn tolove changePut it into perspective

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Keep it atwork

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See it asan opportunity

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Make changes forvalid reasons

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Avoid unnecessary habitsPage17Self-esteem and time

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Page 18Self-esteem andtimeRelief

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Shock, immobilisation andloss

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Searching and denial

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Anger

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Depression, self doubt,inertia

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Acceptance

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Testing options

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Searching for meaning& self awareness

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Integration and renewalPage19Communicate through a crisis

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Page 20Communicate througha crisisThrow out the rulebook

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Don’t assume control

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Say what won’tchange…

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…and what will

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Keep employees focused

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Get line managerstalking

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Educate your employees

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Walk the talkPage21Coaching at a time of change

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Page 22Coaching ata time of changeUse coaching to support those who are leading the change first

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If you recruitan external coach, make sure they have a business background and understand your environment

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Make sure thatHR is operating as a business partner

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Use coaching methodologiesthoroughly

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Be clear aboutwhat success looks likePage 23Culture change

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Page 24Culture change1 of 3Developing a set of values that make a difference to the organisation is a huge amount of work-not only in producing the framework but also in embedding it in the daily operations of the organisation

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Introducing radical changeis much easier if you have the total support of your Chief Executive and executive colleagues

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External partners needto engage in understanding and responding to the character and ambitions of the organisationPage 25Culture change 2 of 3Create awareness

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Establish role models

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Develop relevant skillsand knowledge

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Reinforce the desiredbehaviourPage 26Culture change 3 of 3USE CULTURE AS A CATALYST FOR CHANGE

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Develop your strategy

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Tools of thetrade

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Quality as wellas quantity

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The root ofthe matter

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Communicate widely

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Involve all employees

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Track progress

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See the benefitsPage27Exercise A

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Page 28How readyfor change are you?Exercise A

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Page 29Creating abuilt-to-change organisation

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Page 30Creating abuilt-to-change organisationDon’t assume that the future will be like the present

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Ensure no employeeis more than one or two steps from the external environment

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Share business informationwith employees

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Use frequent goal-settingreviews rather than job descriptions, to manage talent

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Stress that individuals’employment depends on their willingness to accept change and learn new skills

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Encourage managers atall levels to take advantage of leadership opportunitiesPage 31Successfully organising change

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Page 32Successfully organisingchangeSustain top management support

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Avoid piecemeal, uncoordinatedchange initiatives

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Achieve substantive ratherthan tokenistic employee involvement in the change process

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Invest in communicationswith external stakeholders

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Involve HR professionalsclosely, right from the start

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Maintain effective projectmanagement disciplines

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Build skilled change-managementteamsPage 33People management aspect of change

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Page 34People managementaspect of changeHow will we involve people and develop their support?

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What will bethe effect on reward systems and how can we use them to promote rather than obstruct change?

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What job andskill changes will be required and how will we deliver them?

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What are theimplications for the careers of those affected by and managing the change?

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How will wecontinually learn and improve as we implement the change? Page 35Measures to assess success of change

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Page 36Employee satisfaction

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Changes made inprocesses

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Employee understanding

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Time taken againstplan

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Revenue/profit improvements

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Spending against budget

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Avoidance of identifiedrisk

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Senior management satisfactionMeasuresto assess success of change

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Page 37Leading changefrom within

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Page 38Know theorganisation and the key influencers

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Start with thesmall things that make a difference such as making it easy for people to get their expenses back

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Get out thereand really listen

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Don’t take arebuff as a personal insult

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Don’t wait forpermissionLeading change from within

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Page 39Real-life examples

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Page 40BOOTS-THE CHALLENGEAND WHAT THEY DID

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A change projectwas announced that involved a restructure of the supply chain to deliver a £50M annual cost saving. It involved closing 18 distribution centres and merging three warehouses, with new terms & conditions for 12000 employees as well as 2100 redundancies announced for three years in advance

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Boots developed aclear people vision, culture, leadership development plan, support/severance scheme for affected people whilst opening a learning suite in every distribution centre, providing a sum of £300 for each colleague as a vocational training allowance and undertaking change management programmes for all managersReal-life examples 1 of 8

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Page 41Real-life examples2 of 8BOOTS-BENEFITS AND ACHIEVEMENTS

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Programme delivered ontime and within budget

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Employee engagement scoresincreased by 13%

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54% of leaversfound new work immediately

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Retention of amore engaged and productive workforce

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Absence reduced from7% to 4%Page 42Real-life examples 3 of 8ROYAL COLLEGE OF NURSING-THE CHALLENGE AND WHAT THEY DID

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The staff surveyrevealed a 54% level of employee engagement, so HR were tasked with improving this by 10% whilst tackling sickness absence, staff turnover and number of grievances filed-at a time when the organisation was seeking to achieve a 1% increase in membership

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Staff advocates wereintroduced to tackle bullying and harassment at work, in addition to a staff awards scheme, mentoring to support career development, a monthly two-way briefing process and change management workshops Page 43Real-life examples 4 of 8ROYAL COLLEGE OF NURSING-BENEFITS AND ACHIEVEMENTS

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A repeat ofthe staff survey two years later showed a 20% increase in employee engagement, taking the score to 74%

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Sickness absence wasreduced by 0.6%, the number of grievances filed reduced by 45%, and staff turnover cut from 20% to 12%

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In a 12-monthperiod the Royal College of Nursing doubled its membership target and saw a 2% increase-a significant boost to incomePage 44Real-life examples 3 of 8TUI UK & IRELAND-THE CHALLENGE AND WHAT THEY DID

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A merger oftwo competitors led to sites being closed, a new Head Office being established, teams being relocated and integrated and the harmonisation of terms, policies and remuneration packages

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HR led themerger planning, secured people investment and oversaw the appointment of an integration team

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Key communications includedan employee booklet, a ‘Be Special’ engagement programme, face to face visits with Directors and an online forum

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HR coached leadersthrough managing uncertainty and ‘making a success of the merger’ sessions, whilst completing organisational redesign within three monthsPage 45Real-life examples 6 of 8TUI UK & IRELAND-BENEFITS AND ACHIEVEMENTS

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Record profits postedin year one

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HR policies andsystems were harmonised with a clear timetable for completion on first anniversary

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A successful partnershipapproach, achieving a landmark deal with the pilots’ union Balpa

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All key talentidentified stayed with the organisationPage 46VODAFONE-THE CHALLENGE AND WHAT THEY DID

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The outsourcing ofthe regional operations team (350 people) took place against a backdrop of employee uncertainty, with the staff survey revealing a low score for employee engagement. The challenge was to retain a highly skilled workforce, recognising that 81 of the team were eligible for early retirement

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Potential outsourcing partnerswere invited in to deliver a ‘beauty parade’ pitch in front of employee representatives, and all communication was designed to be open, honest & transparent

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Pension rights wereplaced at the top of the agenda as consultation had confirmed employees’ fears about financial loss as they moved from a defined benefit to a defined contribution schemeReal-life examples 7 of 8

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Page 47Real-life examples8 of 8VODAFONE-BENEFITS AND ACHIEVEMENTS

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HR made surethe outsourcing deal put the people agenda on an equal footing with commercial interests

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Positive feedback fromemployees ensured a low attrition rate

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Only one ofthe 81 potential employees took early retirement, meaning key skills were retainedPage 48Case studies

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Page 49Case studies

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Page 50Exercise B

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Page 51Exercise B

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Page 52Conclusion &Questions

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Page 53ConclusionSummaryQuestions

Change Management September 2010

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