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Organizational Change: Tapping into the Human Factor

International Conference Los Angeles 6-9 June 2004. Organizational Change: Tapping into the Human Factor. Presented by: Barbara Palframan Smith, BPS Communications David Carter, Consulting Consortium. Change has always been Challenging.

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Organizational Change: Tapping into the Human Factor

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  1. International Conference Los Angeles 6-9 June 2004 Organizational Change: Tapping into the Human Factor Presented by: Barbara Palframan Smith, BPS Communications David Carter, Consulting Consortium

  2. Change has always been Challenging “There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things”. - Niccolo Machiavelli (1469-1527)

  3. Overview An organization undergoing change stands or falls on how “The Human Factor” is understood, tapped into and energized. Successful change depends on integrated solutions that address the needs of all stakeholders throughout the change process. This presentation focuses on a “journey of organizational change” which will address the following: • Drivers of change • Principles of managing change – models and processes • Solutions for implementing successful change • A typical Change Roadmap • Lessons learned - practical case studies

  4. Change Journey Milestones • How to load for success • Prepare your survival kitbag • How to minimise pitfalls • Create viable alternative routes • Clear roadblocks • Create trailblazers and, • Ultimately reach your destination

  5. “Communication lights the path of successful change” - David Carter

  6. Drivers of Change • Visionary leadership • Financial • Social • Political • Globalization • Technological • Ego-driven leadership • Quest for power and influence • Survival • Competitive pressure

  7. Quote from Harold MacMillan “The wind of change is blowing through this continent and, whether we like it or not… it is a fact. We must all accept it as a fact, and our policies must take account of it”. - Speech given to South African Parliament, Cape Town, 1960

  8. Change and Transition Management Process Map Assess need for and level of commitment to change Describe the current state Describe the desired future state Assess stakeholder needs Analyse capability gaps Prepare a transition plan, and appoint a leader Build commitment through communication and involvement Monitor progress and modify process as necessary Manage transition implementation Celebrate success and capitalise on benefits generated

  9. Change Imperative Factors Influencing Organizational Change Forces External Regulators Globalization VISION Labor Customers MISSION ADAPTION Internal Forces REWARDS LEADERSHIP Costs Society ASSESSMENT PLANS DEVELOPMENT COMMUNICATION Threats Shareholders RESOURCING Competitors Technology Opportunity

  10. Stakeholders • Shareholders • The Board • Employees • Management • Alliances • Customers • Suppliers • Unions • Governments • Community Groups

  11. 4C Transition Management Model Commitment Communication Consultation Closure Source: Charles Van Heerden, HR Director, Feltex Australia

  12. Commitment & Communication Commitment • Executive involvement • Behaviours support change • Clarity about end state • Establish change team Communication • Consistent, persistent and timely • Explain necessity for new direction • “Push and pull” process • Synergies between internal and external factors

  13. Consultation & Closure Consultation • Discuss effects of changes • Acknowledge contraction and retention • Address the “me” issues • Use logic and empathy Closure • Review change process • Recognize and support survivors • Celebrate successful transition • Communicate new era

  14. Managing the Transition ProcessUsing the 4C Model Unrealistic Expectations Closure PRODUCTIVITY Communication Consultation Commitment Light at the end of the Tunnel Valley of Despair Standard Change Process Effective Change Process

  15. The TELE Model“What’s in it for Me?”  BPS Communications

  16. “Communication is a potent influencer and the mark of leadership”- Barbara Palframan Smith

  17. Employee “Four Quadrants” HIGH UNDERSTANDING LOW HIGH COMMITMENT Source: Market & Opinion Research Int. Survey for MCA Group

  18. Case Studies • A review of change management lessons learned: • Major Food Company – IT Outsourcing • Financial Services Company – M&A • National Media Organization – Structural change • Engineering Company - IPO • Energy Company – Industry deregulation • Manufacturing Company – M&A • IT Corporation – Refocus from mainframes to service • National Telco – Transition from public to private sector

  19. Communicate for Success • Communication – a key driver of successful business change • Communication is essential to meet change goals • Increased communication = decreased conflict = successful outcomes

  20. “Change is the law of life and those who look only to the past or present are certain to miss the future”. - John F. Kennedy

  21. Organizational Change: Tapping into the Human Factor Presented by Barbara Palframan Smith Director BPS Communications Telephone: +61-2-9362 5688 Fax: +61-2-9362 5686 Mobile (Cell): +61-(0)-402 206 932 Email: palsmith@optusnet.com.au David Carter Managing Director Consulting Consortium Pty Ltd Telephone: +61-2-9966 4762 Fax: +61-2-9966 4312 Mobile (Cell): +61-(0)-419 225 232 Email: david@consultingconsortium.com.au

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