Change management (CM) PPU41320.05.2019

Viktorija BadasjaneStaffan Andersson

● Theory● Presenting a case

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Agenda

● External factors ● Technical innovation● Market opportunity● Suppliers

● Internal factors● Global network synchronisation

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Reasons for change

● Ad-hoc rather than systematic ● Components of change: ● Readiness for change● Implementing change

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Challenges with facing change

1. Creating a sense of urgency2. Guiding coalition 3. Creating a vision 4. Communicating the vision 5. Combating the obstacles 6. Creating short-time goals 7. Premature declaration of success 8. Creating the corporate culture

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Transforming an organisation – Kotter (1995)

● Soft factors focus ● Attitude ● Culture ● Understanding complexity

● Managerial support (on all levels)

● Successful cases seen in theory ● Lessons learned ● Current state● Planning

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Success factors

Most difficult

● The driver ● Represents the strategy & goals ● Understand by everyone affected

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Importance of vision

● New culture and attitudes must be rooted

● Problems in this phase: ● Vision● Intensity level● Collaboration

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Is implementation the end of change?

Discussion 5 min

Declare change finished too early

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Presenting a CM case

● Description of case company ● Problem ● New Organisational structure ● Advanced Technology● Highly digital environment● Lack of:

● Training ● Process understanding ● System thinking

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Case – Changing for Industry 4.0A global manufacturing perspective

“About 10 years ago we developed a machine with no set up, we managed to get it working without any set up. […] It was the first fully automated operation with robots and everything.

I was on a meeting with another line, which is close by, and told them about this. They said that I lied. They could not accept the possibility, they could not comprehend this.

Then, the readiness level is very low. And you have to lift them, when they don’t even believe in this. Imagine if one would implement the same technology there, it would have been a long way to go.”

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Readiness for change

“Everyone else had an uphill to climb, knowledge of the technical parts was not gained when the project started. Then the other questions are difficult to ask as they become tiny in comparison to the fantastic technical topics.”

“If management does not understand and prioritise to do differently, then people will work in exactly the same manner with something entirely new. So here I saw a major gap.”

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Alignment and a holistic view

“[…] almost like there was just going to be a button to press and go ahead with the new system once it was in place”

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Motivation to change

“They regard it as a necessary evil to appoint an operator to a project, but it is an investment. The operators must feel that they are special to be selected and can be part of something new.”

“Competence, motivation and responsibility in the production management is something which was underestimated. Therefore, a situation occurred last summer. Technology became a scapegoat but when we investigated this closer the actual problem was staff shortage.”

“We need to learn not to go around and await that the project delivers a solution, rather decide to be more active in the beginning with the preparations”

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Responsibility distribution

● Pre● During ● After

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Change effects on the organisation

● Lack of standardisation ● Up to the person initiating the change● No definition for human or organisational parts

● Transfer is not a natural part of a project ● Sustain motivation during long projects

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Structured way of assessing readiness

“What I think it is important is that we get that competence in the early stages of an investment project because it makes the ramp-up phase easier […] It is the receiving organisations responsibility to make sure that operators have the right competence.”

“The list was pretty good. The problem was that it was not implemented fully, because production did not receive it, they did not understand why they needed to work with that. So, there was a gap there. They created education plans and what training was needed but it was never implemented”

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Human factors and competence

● Lack of ● Managerial commitment ● Ownership of the project ● Understanding of CM responsibility ● Incorporation of soft factors● Evaluation if the organisation itself is ready

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Root causes of failed change efforts

A framework for change