Thursday, November 03, 2016

ChemCoChange Management

THE TEAM

AGENDA ChemCo: Company Breakdown

Problems

ChemCo’s Vision

Kotter’s Model

Business Outcomes

Conclusion

Appendix

Agenda

ChemCo: Company Breakdown

Project ALIGN

CHALLENGESLack of Engagement & MotivationLack of Standardization & EfficiencyLack of Communication & Buy-In3

CASE STUDY OF SUCCESS

CHEMCO’S VISION

EMPOWERINNOVATEALIGNSUCCEED

KOTTER’S MODEL The Big

Opportunity

1

CREATESense of Urgency 2

BUILDGuiding Coalition

7

SUSTAINAcceleration

6

GENERATEShort Term Wins 5

ENABLEAction by Removing

Barriers

4

ENLISTVolunteer Army

3

FORMStrategic Vision &

Initiatives

8

INSTITUTEChange

CREATE A SENSE OFURGENCY

Less absenteeism and turnover

Fewer safety incidents

Fewer product defects

Higher productivity

Higher profitability

37%

48%

41%21%

22%

Gallup Q12 SurveyCompanies on the top quartile on engagement

UIDING COALITION

Psychological Safety

Dependability

Structure & Clarity

Meaning

Impact

Empower champions of change within:Steering CommitteeColor Leadership TeamCentral TeamLocal Project Teams

CREATE VISION

“Where there is no vision,

the people perish…”

-Proverbs 29:18

“Vision and direction are 3-4x more important than other leading factors in change management.”

Accenture, Debunking the Myths of Organizational Change Management

Critical Buy-In:

Executive Leadership

Partner Committees

Employees across all levels

1

3

4

2

STEERING COMMITTEE

COLOR LEADERSHIP

CENTRAL TEAM

LOCAL PROJECT

TEAM

● Funds development initiatives

● Organizes ChemCo conference

● Regional conferences● Local Realignment

Sessions

● Regional cost-saving Goals ($5.75 million ea.)

● Celebrate short term wins & reestablish goals

Brand as employee support:● Manage accountability

among employees● IT systems● Standardize innovations

COMMUNICATE VISION

Project ALIGN

Empower. Innovate. Align. Succeed.

EXPERIENCE VISION

...it’s another thing to experience a sunrise.

Corporate BannersNewslettersEmail Tags

CatchphraseCompany “Chatter”

REMOVE BARRIERS

Clear the runway and tune the engine so that employees can literally take off and soar,

elevating Chemco to greater levels of success and efficiency.

HIERARCHICAL WALLSCONTRIVED ACCOUNTABILITYGLOBAL DISPARITYIT SYSTEMS

REMOVE BARRIERSHIERARCHICAL WALLS

Steering Committee

Central Team Local Project Team

Local Innovation

REMOVE BARRIERSIT SYSTEMS

“Granular data analysis is critical for seeding out and identifying operational shortcomings.”

USC Consulting Group

What? I So what? I Now what?

REMOVE BARRIERSCONTRIVED ACCOUNTABILITY

“It’s been a tremendous success, because it turns out that they care one to another more

than they care for the people above them.”- Clayton Christensen, Harvard Business School & Innovator’s Dilemma

REMOVE BARRIERSGLOBAL DISPARITY

Go GlocalCollaborate with Unions

SHORT-TERM WINS1. Celebrate all innovations2. Create STRETCH goals 3. Utilize accountability

“Cost-management and effectiveness continuously rise from a change initiative.”- Accenture

SUSTAIN ACCELERATION Leverage motivation from further short-term wins

Position individuals according to strengths and disposition

Eliminate individual inhibitors to growth and transformation

Continued attention from leaders and change champions will override holdouts and drive permanency.

INSTITUTE CHANGE

“Engaging employees can be a long and tedious process, but do we understand the

difference that it can make to have employees that are a part of the 25% of HIGHLY ENGAGED employees and 40% moderately engaged employees in the workforce?” - Aon Hewitt, Outsourcing Consulting Services

You have your vision, your goals, and steps to action. What’s next?

Making this change concrete. Don’t let this be a once in a lifetime gadget

or foreign idea you put up with. Institutionalize this change as a part

of who ChemCo is.

BUSINESS OUTCOMES

Rises in employee engagement lead to

147% higher earnings per share than your

competition

$30 million of early cost-savings leading to a total savings of over $120 million by October 2017

Successful onboarding for newly acquired sites

Standardized, long-term, global procedures and values

Safety, job security, and personal development leading to lifestyle benefits

CONCLUSIONCost Savings of 1.15% at each worksite can save $120 million in a year.

Enabling employees with data and autonomy to innovate will save hundreds of millions to come.

REMEMBER And HIRE

Context:Over 25+ manufacturing sites globally$13 billion annual revenuePhase I: 9 sites, Phase II: 5 sites will close$120 million goal of cost savings

Calculations:Revenue per Worksite

● $13 billion / 26 worksites● = $500 million per worksite

Required Savings per Worksite● $120 million / 26 worksites● = $4.61 million per worksite

Savings as a Percentage of Worksite Revenue● $4.615 million / $500 million● = .00923● = 0.92% Savings per Worksite

Savings as a Percentage of Total Annual Revenue● $120 million / $13 billion● = .0923 = 0.92% needed cost savings

Higher Savings Percentage per Worksite Needed● 21 x $500 million x 0.92%● = $96,915,000

Required Savings per 21 Worksites● $120 million / (21 x $500 million)● = .0114 ● = 1.14% Required Savings per Worksite● 1.14% x $500 million● = $5,714,285.71

Thus, $5.75 million needed in Annual Savings per Worksite by October 2017 (also $480,000 per month on a 12-month schedule).

Appendix I

Appendix IIData Sources on Manufacturing:

http://www.mckinsey.com/business-functions/operations/our-insights/how-big-data-can-improve-manufacturing

http://www.ingrammicroadvisor.com/data-center/4-big-data-use-cases-in-the-manufacturing-industry

Unionshttp://www.reuters.com/article/germany-wages-idUSL8N15H22R

Under Communicating Vision by Kotterhttp://www.forbes.com/sites/johnkotter/2011/06/14/think-youre-communicating-enough-think-again/#4c5aa3aa2855

Kotter’s Modelhttp://www.kotterinternational.com/the-8-step-process-for-leading-change/

Guiding Coalitionhttps://rework.withgoogle.com/blog/five-keys-to-a-successful-google-team/

Urgencyhttps://www.linkedin.com/pulse/gallup-q12-employee-engagement-elements-richard-riche

USC Consulting Group - Data Management in Chemical Manufacturinghttp://www.usccg.com/operational-efficiency-chemical-manufacturing-supply-chain/