Managing Change for Enterprise Development

1. Managing Change for Enterprise Development RIAPHuman Resource and Change Management Policies for Enterprise Development Indonesia-APEC Effective Governance for Enterprise Development Program Course Dr Shirley Randell AM

2. External Forces for Change • Political • Economic • Sociological • Technical

3. External forces for change

4. Internal pressures for change • New management policy • Introduction of new technology • Members' attitudes and behaviour

5. Internal pressures for change

6. Dealing with change • Ignore change • React to change • Plan for change

7. Effects of change • Physical • Psychological • Social

8. Psychological effects • “How will this affect me? • “Am I too old to change?" • "Am I too young to do this?" • "Will I be able to cope with the change?"

9. Social Effects • Attitude to change in general - not just work related • Insecurity • Trust • Past experience of change • Inertia - unwillingness to change or move in any direction

10. Checklist for change 1. Objectives for the change • Are the objectives desirable? • Are the objectives achievable? • Are the objectives acceptable? 2. Proposed method for accomplishing the change • How will the change be implemented? • What other methods could be used?

11. Checklist for change 3. Justification for the change • What are the benefits? • What are the costs? 4. Originator of the change • What is the originator's reason for the change? • How much support does the originator have from others for the change?

12. Checklist for change 5. Completion date for the change • Is there enough time to prepare for the change (lead time)? • Is there enough time to pilot-test the change?

13. Checklist for change 6. Parts of the enterprise affected • Who will be affected by the change? • Who will implement the change? • Which parts of the enterprise will be affected by the change? • 7. Accountability for the change • Who will determine evaluation criteria for the change? • Who will evaluate the effectiveness of the change?

15. Steps to manage change • 1. Analyse and plan the change. • 2. Communicate the change to those involved. • 3. Get acceptance of the required changes in behaviour. • 4. Maintain control during the change period. • 5. Follow-up on all aspects of the change to ensure continuing success

17. Values underlying a customer-focused enterprise? • Customer focus • Transparency of policies and processes • Accountability for actions • Confidentiality of customer information • Equity in all policies and processes • Ethical in outlook and work methods • Professionalism • Honesty • Empowerment • Organisational learning

18. Balanced Score Card (BSC) A good way to understand the Balanced Score Card is to imagine yourself as the captain of a Jumbo jet. Imagine all the instruments, dials and gauges on the panel in front of you. These instruments tell you about the various parts of the plane and how it is flying. Reliance on the altimeter only would be foolish – you might know your altitude, but you would not have any warning about storms ahead. If you only looked at the radar, you would not know when you were low on fuel. The Balanced Score Card is like an instrument panel for your enterprise.

19. Operations (How are operational processes?) ·        Critical vehicle failure rate ·        Employee turnover ·        Ambulance downtime ·        Equipment costs Business Practices (How is our financial health?) ·        Profit (if applicable) ·        New business development ·        Costs vs revenues ·        Subsidies Community and Customer Service (How do customers see us?) ·        Market share ·        Customer satisfaction rates ·        Number of service contracts ·        Mutual aid relationships Learning and Innovation (How are we growing for the future?) ·        Training courses attended ·        Prevention activities ·        Quality Improvement efforts ·        Published research Balanced Scorecard

20. Vision Mission Values Objectives and Strategies Competency Fields for Organisational Capability and Leadership for Customer Service Unit and Individual Work Plans Performance Measures People Management Professional and Technical Upgrading Environmental Management Communication Capability Change Management Planning and Monitoring Capability Information Technology Management Cultural Capability Asset and Financial Management Technology Capability

21. Balanced Scorecard

22. Customer Satisfaction • This perspective captures the ability of the organisation to provide quality goods and services, effective delivery and overall customer satisfaction. For the purposes of this model both the recipient of the goods and services (the internal customer) and the sponsor/overseer (e.g. Ministry) are regarded as customers of the business processes. In a governmental model the principal driver of performance is different than in the strictly commercial environment: namely, customers and stakeholders take preeminence over financial results. Recognising that budgets are limiting factors, public organisations have a greater stewardship responsibility and focus than do private sector entities.

23. Financial Perspective • In government the financial perspective differs from that of the traditional private sector. Private sector financial objectives generally represent clear long-range targets for profit-seeking organisations, operating in a purely commercial environment. Financial considerations for public organisations have an enabling or a constraining role but will rarely be the primary objective for business systems. Success for such organisations should be measured by how effectively and efficiently these organisations meet the needs of their constituencies. In government this perspective captures cost efficiency, delivering maximum value to the customer for each dollar spent

24. Internal Business • This perspective provides data regarding the internal business results against measures that lead to financial success and satisfied customers. To meet the organisational objectives and customers expectations, enterprises must identify the key business processes at which they must excel. Key processes are monitored to ensure that outcomes are satisfactory. Internal business processes are the mechanisms through which performance expectations are achieved.

25. Learning and Growth • This perspective captures the ability of employees, information systems and organisational alignment to manage the business and adapt to change. Processes will only succeed if adequately skilled and motivated employees, supplied with accurate and timely information, are driving them. This perspective takes on increased importance in organisations that are undergoing radical change. In order to meet changing requirements and customer expectations, employees may be asked to take on dramatically new responsibilities, and may require skills, capabilities, technologies, and organisational designs that were not available before

26. BSC Monitors: • Current performance (finances, customer satisfaction, and business process results) • Efforts to improve processes, motivate and educate employees, and enhance information systems – its ability to learn and improve. • Offers a holistic view of the enterprise’s health. It brings together on a single management report many of the disparate elements of the organisation’s competitive agenda. • Allows managers to consider all the important operational measures at the same time, letting you see whether improvement in one area may have been achieved at the expense of another.

27. Capabilities to manage change •  Linkage from the corporate vision to strategic objectives to key performance measures •  Easy identification of "cause-and-effect" relationships across operations • Support for themes and initiative management

28. Capabilities to manage change • · Creation and linkage of organisation and personal scorecards • Support for individual assessments of objectives (although it can be complemented with data-driven assessments) • Integration of both quantitative (ERP) and qualitative information

29. Capabilities to manage change • Dynamic communication and feedback • Easy set-up and maintenance • Enterprise -wide deployment • Seamless integration with other software systems

30. CURRENT STATE OF PLAY Objectives • To identify the ‘hot’ issues that are affecting teams • To clarify what we can influence and what we can’t •  To clarify an agenda for later problem solving

31. CURRENT STATE OF PLAY In small groups ask people to discuss: • What is the current state of play in their teams, regarding change? • What are the hot issues? • What problems are they and their team members experiencing? • Ask them to discuss these and prepare a list of these problems and “hot” issues. (20 minutes)

32. CURRENT STATE OF PLAY • After 20 minutes interrupt groups working at tables and show them the overhead with the two circles. • Ask each group to draw two concentric circles on a sheet of chart paper. • Place the issues which they can control in the inner circle and issues which are non negotiable unknown or outside their area of control in the outer circle. (15 minutes)

33. HOW WILL I BE AFFECTED • What might I lose? • What are the potential risks for me? • What might I gain? • What might be opportunities for me?

34. LOOKING AFTER OURSELVES Objective • To share ways of keeping ourselves feeling resilient during the period of transition.

35. LOOKING AFTER OURSELVES • Share ideas about how you take care of yourselves during stressful times. • Make a list of all these strategies so that you can provide other people with ideas