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									     Organizational Change Management
   Why the need for change

   Consultant’s Approach to OCM

   How OCM fits into the picture

   What is OCM

   Workplan and Deliverables for OCM project

   Looking into the future
Presentation Objectives

     Introduce Concept of Change Management

     Outline key aspects of Consultant’s Organisational
      Change Management (OCM) approach

     Demonstrate how Consultant’s OCM approach will
      add value by supporting the broader Bank MIS
      upgrade

     Confirm the project scope for the OCM project

     Agree on key deliverables for Phase 1 (expected
      completion - March 1998)
Why the need for change?

PRESSURE FROM WTO                            COMPETITION FROM
   TO LIBERALISE                             MORE ESTABLISHED
FINANCIAL MARKETS                            COMMERCIAL BANKS




                                                BANK NEGARA
                                                REQUIREMENTS

CHANGES IN CUSTOMER
NEEDS, DIRECT BANKING   “When the rate of change outside exceeds the rate
AND INTERNET BANKING                 of change inside, the end is in sight”
                                                                John F. Welch, Jr.
                                                                 Chairman / CEO
                                                              General Electric Co.
Consultant’s Approach to OCM

      Centralisation of IT
       infrastructure
      Reduce duplication
      Increase processing
       response times
      Reduce IT
                              Process
       maintenance costs
      Adoption of Best
       Practice banking

                                          PRESSURE FROM WTO     COMPETITION FROM
                                             TO LIBERALISE       MORE ESTABLISED
                                          FINANCIAL MARKETS     COMMERCIAL BANK




                                        CHANGES IN CUSTOMER
                                        NEEDS, DIRECT BANKING    BANK NEGARA’S
                                        AND INTERNET BANKING     REQUIREMENTS
Consultant’s Approach to OCM

      Centralisation of IT                         Direct Banking
       infrastructure
                                                    Y2K Compliance
      Reduce duplication
                                                    RBS, Financial &
      Increase processing                           Treasury (Phase 1)
       response times
                              Process               Remittances, ATMs
      Reduce IT
                                                    Internet Banking
       maintenance costs
      Adoption of Best
       Practice banking
                        Technology        PRESSURE FROM WTO               COMPETITION FROM
                                             TO LIBERALISE                 MORE ESTABLISED
                                          FINANCIAL MARKETS               COMMERCIAL BANK




                                        CHANGES IN CUSTOMER
                                        NEEDS, DIRECT BANKING              BANK NEGARA’S
                                        AND INTERNET BANKING               REQUIREMENTS
Consultant’s Approach to OCM?

          Centralisation of IT                           Direct Banking
           infrastructure                                 Y2K Compliance
          Reduce duplication                             RBS, Financial &
          Increase processing                             Treasury (Phase 1)
           response times                                 Remittances, ATMs
           Reduce IT
                                  Process
                                                         Internet Banking
           maintenance costs
          Adoption of Best
           Practice banking
                            Technology      People
                                                 PRESSURE FROM WTO              COMPETITION FROM
                                                    TO LIBERALISE                MORE ESTABLISED
                                                 FINANCIAL MARKETS              COMMERCIAL BANK



        Resilience to change
        Commitment to change
        Greater skills and competencies       CHANGES IN CUSTOMER
                                               NEEDS, DIRECT BANKING             BANK NEGARA’S
                                               AND INTERNET BANKING              REQUIREMENTS
How does OCM fit into the Picture?


                                PROGRAMME MANAGEMENT OFFICE

                 Analysis, Customisation & Data Conversion

                  RETAIL BANK -
                    Analysis &
                  Customisation                                          EXEC
                                           FINANCIAL
                                                             TREASURY    INFO
                                           SYSTEMS
                                                                        SYSTEM
                  RETAIL BANK -                                                    FUTURE
        IT        Data Conversion                                                     IT
   INFRASTRUCT
                                                                                 ENVIRONMENT

                         TRAINING &                           USER ACCEPTANCE
                       DOCUMENTATION                              TESTING

                                                DEPLOYMENT


                            ORGANISATIONAL CHANGE MANAGEMENT
Benefits of this approach

     Integration with the PMO and all initiatives
      associated with the MIS Upgrade Project

     Greater understanding of dependencies between
      projects

     Greater understanding of the technology and
      process impact

     Structured and objective approach to analysis /
      diagnosis

     Greater co-ordination of resources
What is Organisation Change Management?

 A structured approach that helps manage the people components during
   a business transformation initiative to realise the desired outcomes

                 Focus                                   Outcome
    •   Change Readiness Acceleration        •   Clear and Compelling Business Case
    •   Change Leadership Development            for the Change
    •   Performance Lever Gap Analysis       •   Engaged, Skilled Change Leaders
    •   Stakeholder Involvement Strategies       and Sponsors

    •   Culture and Values Alignment         •   Accelerated Change Readiness

    •   Transition Planning and Management   •   Flexible and Adaptive Workforce

    •   Team Development                     •   Leverage Learning Capability

    •   Organisational Learning
Why the need for Change Management?

                                                                SOLUTION IDENTIFICATION

                                                                  WRONG         RIGHT




                                                  INEFFECTIVE
           Impact on Desired




                                 IMPLEMENTATION
    Cell
           Business Objectives                                       II          III




                                    SOLUTION
     I          Failure                                             10% of        70% of
                                                                  occurrences   occurrences
     II         Failure




                                                    EFFECTIVE
    III         Failure
                                                                      I           IV
                                                                    10% of        10% of
                                                                  occurrences   occurrences
    IV        Success


   The value of MIS Upgrade Project is realised only through
                  successful implementation
Why efforts fail


PERCEPTION




     TECHNOLOGY    INFRASTRUCTURE   MANAGEMENT
                                     OF CHANGE
Why efforts fail

        PERCEPTION




REALITY                          MANAGEMENT
                                  OF CHANGE
                INFRASTRUCTURE
TECHNOLOGY
Commitment versus Compliance


Pay now...



                                             or pay later?

      Commitment building costs are significantly less
       than the cost of:
          managing post-implementation resistance
          compromised implementation efforts
          project failure
Commitment versus Compliance




     Commitment is a powerful phenomenon in transition
      management

     Commitment generates productive behaviour
      without the need for monitoring

     Compliance may result in similar behaviour, but
      rarely generates initiative. Compliance strategies
      rely on external enforcement
  Detailed Workplan

      Proposed Approach to
Organisational Change Management
              Phase 1
Change Readiness Assessment
  What      Identifies key factors which may help or hinder the change process and
            is used to determine BIMB’s readiness to change. Action plans can then
            be developed to leverage strengths and minimise potential risks.

   How      A series of one day workshops delivered to a select number of staff
            representing identified stakeholder groups. Surveys and other tools
            will be used to identify potential risks to MIS implementation.

  Benefit   Action plans to address implementation issues
            Greater ownership and awareness of MIS Upgrade Project

            Structured approach to identify potential implementation risks
 Value of   Consistent application of E&Y world-wide OCM tools
 Approach   Objective methods to determine potential implementation risks
            Involvement of stakeholder groups throughout Bank
            Comparison of perceived risks across management levels and locations
            Comparison of perceived risks over time
Change Readiness Assessment

Implementation Factors for Success...

                              Aligned   Powerful
                         Performance    Business
                            & Culture   Case
                 Integrated
                  Planning                         Vision
                  & Teams                          Clarity


                 Increased                         Change
                   Change                          Leadership &
                  Capability                       Accountability
                         Stakeholder    Change
                         Commitment     Specific
                                        Communication
Communications Strategy and Plan
  What      Determines the strategies, goals, themes, messages and vehicles used to
            communicate with key stakeholders (internal and external) throughout
            the duration of the MIS Upgrade Project.

   How      Working directly with Project Teams and Task Force staff, drawing
            on the results of the Change Readiness Assessment and using Consultant’s
            methods to identify most appropriate communications methods.

  Benefit   Accelerates contact, awareness, understanding and acceptance of the
             intended changes
            Reduces stakeholder resistance resulting in positive action
             (thinking and behaviour)
            Greater ownership and awareness of MIS Upgrade Project

            Structured approach to develop communication plans
 Value of
            Consistent application of Consultant’s world-wide OCM tools
 Approach   Greater re-use of data collected during Change Readiness Assessment
Communications
  Building Commitment Through Communications is a process...

        Communication                                                                   Internalization
        Phase
                                                                                  Institutionalization

                                                                                                    Adoption
                                                                                   Genuine
                         Grudging                     Formal                     Compliance
                        Compliance
                                     Installation
                                                    Compliance
                                                                 Installation             Installation Commitment/
                                                                                                        Compliance
         Acceptance                                                                                      Threshold
         Phase
                                                                                    Positive Perception

                                                         Understand             Understand
                                                                                the Change                   Disposition
                                                         the Change
         Preparation                                                                                         Threshold
         Phase

                        Awareness
                                     Awareness

                                       Awareness
         I Contact
                            Noncommitment               Noncommitment                        Noncommitment

                                               Time
                                                                                                     OC160
Change Facilitator Network
  What      Establishing an internal network of change champions to build awareness
            and understanding of change management principles.

   How      Network is established initially by involving client staff in a one day
            workshop to explore business change principles and concepts within
            the context of the MIS Upgrade Project.

  Benefit   Establishing a change infrastructure of staff who will promote the
             Bank MIS Upgrade Project
            Generating greater communication across the branch network
            Involvement of those most affected by the changes
            Greater understanding of change and their important role in the process

            Structured approach to managing change
 Value of   Opportunities for testing management potential
 Approach   Build on Change Readiness Assessment results
            Develop a link to customer facing staff in the branches
            Opportunities for breaking down barriers between branches
Change Facilitator - Tips

     Involve those most impacted by the changes
     Develop objective method for selecting candidates
     Select staff of equivalent seniority
     Select staff who are:
         well regarded by their peers
         credible
         reliable
         eager to learn and be involved
         “opinion leaders”
     Do not select staff:
         who are perceived to be management mouthpieces
Transition Management Plan
  What      Incorporates data gathered during the Change Readiness Assessment,
            Change Facilitator workshops and communication planning stages to
            produce a comprehensive roadmap addressing the human aspects of
            change for the duration of the project. It will also provide other people
            related issues which are beyond the scope of Phase 1.

   How      Working with project managers and the Task Force to thread together all
            relevant information.

  Benefit   Provide a Blue Print for Bank to manage change beyond March 1998
            Provide further issues to consider to help align business needs with
             desired behaviour

 Value of   Structured approach to managing change
            Benefit of E&Y experience across similar IT enabled change projects
 Approach   Assistance with the identification of HR issues using Consultant’s
             Organisational Alignment methodology
Looking into the future
               ORGANISATIONAL    LEADERSHIP
                 STRUCTURE      EFFECTIVENESS




      MEASUREMENT &     ALIGNED            STAFFING &
         REWARD         CULTURE           DEPLOYMENT




                                EDUCATION &
                COMMUNICATION
                                DEVELOPMENT
Looking into the future

  The value of Organisational Alignment


     Drives organisational behaviour needed for process,
      technology and culture changes
     Creates the environment where desired behaviours
      are communicated, modelled, measured and
      rewarded
     Reinforces and sustains desired behaviours over
      time through alignment of human and organisational
      systems
Looking into the future

     Current State              Organisational                      Future State
      Behaviour                 Performance                          Behaviour
                                   Levers
  Act without consideration                               Work with other units to
  of other units and their                                 address problems and
  purpose                          Communication           opportunities
  Withhold information from                               Share information with
                               Education & Development
  others                                                   others
  Elevate issues / problems   Leadership Effectiveness    Take initiative to solve

  upwards for resolution                                   problems
                               Organisational Structure
  Discount all ideas “not                                 Search out and welcome

  invented here”               Measurement & Reward        new ideas
  Focus on own needs rather                               Focus on the needs of the
                               Staffing and Deployment
  than those of the                                        company, the customers and
  organisation                                             other employees

								
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