why the need for change consultant’s approach to ocm how ocm fits into the picture what is ocm ...
TRANSCRIPT
Why the need for change
Consultant’s Approach to OCM
How OCM fits into the picture
What is OCM
Workplan and Deliverables for the OCM project
Looking into the future
Organizational Change Management
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 MIS upgrade
Confirm the project scope for the OCM project
Agree on key deliverables for Phase 1 (expected completion - March)
Why the need for change?
“When the rate of change outside exceeds the rate of change inside, the end is in sight”
John F. Welch, Jr.Chairman / CEO
General Electric Co.
PRESSURE FROM WTOTO LIBERALISE
FINANCIAL MARKETS
COMPETITION FROMMORE ESTABLISHEDCOMMERCIAL BANKS
BANK NEGARAREQUIREMENTS
CHANGES IN CUSTOMERNEEDS, DIRECT BANKINGAND INTERNET BANKING
Consultant’s Approach to OCM
Centralisation of IT infrastructure
Reduce duplication Increase processing
response times Reduce IT
maintenance costs Adoption of Best
Practice banking
ProcessProcess
PRESSURE FROM WTOTO LIBERALISE
FINANCIAL MARKETS
COMPETITION FROMMORE ESTABLISEDCOMMERCIAL BANK
BANK NEGARA’SREQUIREMENTS
CHANGES IN CUSTOMERNEEDS, DIRECT BANKINGAND INTERNET BANKING
Consultant’s Approach to OCM
TechnologyTechnology
ProcessProcess
PRESSURE FROM WTOTO LIBERALISE
FINANCIAL MARKETS
COMPETITION FROMMORE ESTABLISEDCOMMERCIAL BANK
BANK NEGARA’SREQUIREMENTS
CHANGES IN CUSTOMERNEEDS, DIRECT BANKINGAND INTERNET BANKING
Centralisation of IT infrastructure
Reduce duplication Increase processing
response times Reduce IT
maintenance costs Adoption of Best
Practice banking
Direct Banking RBS, Financial &
Treasury (Phase 1) Remittances, ATMs Internet Banking
Consultant’s Approach to OCM?
PeoplePeopleTechnologyTechnology
ProcessProcess
PRESSURE FROM WTOTO LIBERALISE
FINANCIAL MARKETS
COMPETITION FROMMORE ESTABLISEDCOMMERCIAL BANK
BANK NEGARA’SREQUIREMENTS
CHANGES IN CUSTOMERNEEDS, DIRECT BANKINGAND INTERNET BANKING
Centralisation of IT infrastructure
Reduce duplication Increase processing
response times Reduce IT
maintenance costs Adoption of Best
Practice banking
Direct Banking RBS, Financial &
Treasury (Phase 1) Remittances, ATMs Internet Banking
Resilience to change Commitment to change Greater skills and competencies
How does OCM fit into the Picture?
TRAINING &DOCUMENTATION
TRAINING &DOCUMENTATION
DEPLOYMENTDEPLOYMENT
USER ACCEPTANCEUSER ACCEPTANCETESTINGTESTING
USER ACCEPTANCEUSER ACCEPTANCETESTINGTESTING
ITINFRASTRUCT
ITINFRASTRUCT
FUTUREFUTUREITIT
ENVIRONMENTENVIRONMENT
FUTUREFUTUREITIT
ENVIRONMENTENVIRONMENT
PROGRAMME MANAGEMENT OFFICEPROGRAMME MANAGEMENT OFFICEPROGRAMME MANAGEMENT OFFICEPROGRAMME MANAGEMENT OFFICE
RETAIL BANK -Analysis &
Customisation
RETAIL BANK -Analysis &
Customisation
RETAIL BANK -Data ConversionRETAIL BANK -Data Conversion
FINANCIALSYSTEMS
FINANCIALSYSTEMS TREASURYTREASURY
EXECINFO
SYSTEM
EXECINFO
SYSTEM
Analysis, Customisation & Data Conversion
ORGANISATIONAL CHANGE MANAGEMENTORGANISATIONAL CHANGE MANAGEMENTORGANISATIONAL CHANGE MANAGEMENTORGANISATIONAL 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?
• Change Readiness Acceleration
• Change Leadership Development
• Performance Lever Gap Analysis
• Stakeholder Involvement Strategies
• Culture and Values Alignment
• Transition Planning and Management
• Team Development
• Organisational Learning
• Clear and Compelling Business Casefor the Change
• Engaged, Skilled Change Leaders and Sponsors
• Accelerated Change Readiness
• Flexible and Adaptive Workforce
• Leverage Learning Capability
FocusFocus OutcomeOutcome
A structured approach that helps manage the people components duringA structured approach that helps manage the people components duringa business transformation initiative to realise the desired outcomesa business transformation initiative to realise the desired outcomes
A structured approach that helps manage the people components duringA structured approach that helps manage the people components duringa business transformation initiative to realise the desired outcomesa business transformation initiative to realise the desired outcomes
Why the need for Change Management?
SOLUTION IDENTIFICATION
WRONG RIGHT
SO
LU
TIO
N
IMP
LE
ME
NT
AT
ION
EF
FE
CT
IVE
INE
FF
EC
TIV
E
I
III
IV
II70% of
occurrences
10% of occurrences
10% of occurrences
10% of occurrences
The value of MIS Upgrade Project is realised only through successful implementation
CellCell Impact on DesiredBusiness Objectives
Impact on DesiredBusiness Objectives
II FailureFailure
IIII FailureFailure
IIIIII FailureFailure
IVIV SuccessSuccess
Commitment versus Compliance
Commitment building costs are significantly less than the cost of: managing post-implementation resistance compromised implementation efforts project failure
Pay now...
or pay later?
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
Change Readiness Assessment
WhatWhatWhatWhat
HowHowHowHow
BenefitBenefitBenefitBenefit
Value ofValue ofApproachApproachValue ofValue ofApproachApproach
Identifies key factors which may help or hinder the change process andis used to determine BIMB’s readiness to change. Action plans can thenbe developed to leverage strengths and minimise potential risks.
Identifies key factors which may help or hinder the change process andis used to determine BIMB’s readiness to change. Action plans can thenbe developed to leverage strengths and minimise potential risks.
A series of one day workshops delivered to a select number of staffrepresenting identified stakeholder groups. Surveys and other toolswill be used to identify potential risks to MIS implementation.
A series of one day workshops delivered to a select number of staffrepresenting identified stakeholder groups. Surveys and other toolswill be used to identify potential risks to MIS implementation.
Action plans to address implementation issuesGreater ownership and awareness of MIS Upgrade Project
Action plans to address implementation issuesGreater ownership and awareness of MIS Upgrade Project
Structured approach to identify potential implementation risksConsistent application of E&Y world-wide OCM toolsObjective methods to determine potential implementation risksInvolvement of stakeholder groups throughout BankComparison of perceived risks across management levels and locationsComparison of perceived risks over time
Structured approach to identify potential implementation risksConsistent application of E&Y world-wide OCM toolsObjective methods to determine potential implementation risksInvolvement of stakeholder groups throughout BankComparison of perceived risks across management levels and locationsComparison of perceived risks over time
Change Readiness Assessment
Powerful Powerful Business Business CaseCase
VisionVisionClarityClarity
ChangeChange Leadership & Leadership & AccountabilityAccountability
Change Change Specific Specific CommunicationCommunication
Integrated Integrated Planning Planning & Teams& Teams
Increased Increased Change Change
CapabilityCapability
AlignedAlignedPerformancePerformance
& Culture& Culture
Stakeholder Stakeholder CommitmentCommitment
Implementation Factors for Success...
Communications Strategy and Plan
Value ofValue ofApproachApproachValue ofValue ofApproachApproach
Determines the strategies, goals, themes, messages and vehicles used tocommunicate with key stakeholders (internal and external) throughoutthe duration of the MIS Upgrade Project.
Determines the strategies, goals, themes, messages and vehicles used tocommunicate with key stakeholders (internal and external) throughoutthe duration of the MIS Upgrade Project.
Working directly with Project Teams and Task Force staff, drawingon the results of the Change Readiness Assessment and using Consultant’smethods to identify most appropriate communications methods.
Working directly with Project Teams and Task Force staff, drawingon the results of the Change Readiness Assessment and using Consultant’smethods to identify most appropriate communications methods.
Accelerates contact, awareness, understanding and acceptance of the intended changesReduces stakeholder resistance resulting in positive action (thinking and behaviour)Greater ownership and awareness of MIS Upgrade Project
Accelerates contact, awareness, understanding and acceptance of the intended changesReduces stakeholder resistance resulting in positive action (thinking and behaviour)Greater ownership and awareness of MIS Upgrade Project
Structured approach to develop communication plansConsistent application of Consultant’s world-wide OCM toolsGreater re-use of data collected during Change Readiness Assessment
Structured approach to develop communication plansConsistent application of Consultant’s world-wide OCM toolsGreater re-use of data collected during Change Readiness Assessment
WhatWhatWhatWhat
HowHowHowHow
BenefitBenefitBenefitBenefit
Communications
Building Commitment Through Communications is a process...
Time
PreparationPhase
AcceptancePhase
CommunicationPhase
GrudgingCompliance
FormalCompliance
GenuineCompliance
Installation InstallationInstallationCommitment/Compliance
Threshold
DispositionThreshold
Adoption
Institutionalization
Internalization
Understandthe Change
Positive Perception
Understandthe Change
Awareness
Awareness
Awareness
I ContactNoncommitment Noncommitment Noncommitment
OC160
Change Facilitator Network
Value ofValue ofApproachApproachValue ofValue ofApproachApproach
Establishing an internal network of change champions to build awarenessand understanding of change management principles.Establishing an internal network of change champions to build awarenessand understanding of change management principles.
Network is established initially by involving client staff in a one dayworkshop to explore business change principles and concepts withinthe context of the MIS Upgrade Project.
Network is established initially by involving client staff in a one dayworkshop to explore business change principles and concepts withinthe context of the MIS Upgrade Project.
Establishing a change infrastructure of staff who will promote the Bank MIS Upgrade ProjectGenerating greater communication across the branch networkInvolvement of those most affected by the changes Greater understanding of change and their important role in the process
Establishing a change infrastructure of staff who will promote the Bank MIS Upgrade ProjectGenerating greater communication across the branch networkInvolvement of those most affected by the changes Greater understanding of change and their important role in the process
Structured approach to managing changeOpportunities for testing management potentialBuild on Change Readiness Assessment resultsDevelop a link to customer facing staff in the branchesOpportunities for breaking down barriers between branches
Structured approach to managing changeOpportunities for testing management potentialBuild on Change Readiness Assessment resultsDevelop a link to customer facing staff in the branchesOpportunities for breaking down barriers between branches
WhatWhatWhatWhat
HowHowHowHow
BenefitBenefitBenefitBenefit
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
Value ofValue ofApproachApproachValue ofValue ofApproachApproach
Incorporates data gathered during the Change Readiness Assessment,Change Facilitator workshops and communication planning stages toproduce a comprehensive roadmap addressing the human aspects ofchange for the duration of the project. It will also provide other peoplerelated issues which are beyond the scope of Phase 1.
Incorporates data gathered during the Change Readiness Assessment,Change Facilitator workshops and communication planning stages toproduce a comprehensive roadmap addressing the human aspects ofchange for the duration of the project. It will also provide other peoplerelated issues which are beyond the scope of Phase 1.
Working with project managers and the Task Force to thread together allrelevant information.Working with project managers and the Task Force to thread together allrelevant information.
Provide a Blue Print for Bank to manage change beyond March 1998Provide further issues to consider to help align business needs with desired behaviour
Provide a Blue Print for Bank to manage change beyond March 1998Provide further issues to consider to help align business needs with desired behaviour
Structured approach to managing changeBenefit of E&Y experience across similar IT enabled change projectsAssistance with the identification of HR issues using Consultant’s Organisational Alignment methodology
Structured approach to managing changeBenefit of E&Y experience across similar IT enabled change projectsAssistance with the identification of HR issues using Consultant’s Organisational Alignment methodology
WhatWhatWhatWhat
HowHowHowHow
BenefitBenefitBenefitBenefit
Looking into the future
STAFFING & DEPLOYMENT
ALIGNED CULTURE
ORGANISATIONAL STRUCTURE
COMMUNICATION EDUCATION & DEVELOPMENT
LEADERSHIP EFFECTIVENESS
MEASUREMENT & REWARD
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
OrganisationalPerformance
Levers
OrganisationalPerformance
Levers
Communication
Education & Development
Leadership Effectiveness
Organisational Structure
Measurement & Reward
Staffing and Deployment
Communication
Education & Development
Leadership Effectiveness
Organisational Structure
Measurement & Reward
Staffing and Deployment
Current StateBehaviour
Current StateBehaviour
Future StateBehaviour
Future StateBehaviour
Act without consideration of other units and their purpose Withhold information from others Elevate issues / problems upwards for resolution Discount all ideas “not invented here” Focus on own needs rather than those of the organisation
Act without consideration of other units and their purpose Withhold information from others Elevate issues / problems upwards for resolution Discount all ideas “not invented here” Focus on own needs rather than those of the organisation
Work with other units to address problems and opportunities Share information with others Take initiative to solve problems Search out and welcome new ideas Focus on the needs of the company, the customers and other employees
Work with other units to address problems and opportunities Share information with others Take initiative to solve problems Search out and welcome new ideas Focus on the needs of the company, the customers and other employees