Workshop Competencies for Competitiveness June 2007 1 ITU/BDT Workshop Competencies for...

Workshop Competencies for Competitiveness June 2007

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ITU/BDT WorkshopCompetencies for Competitiveness

CAIRO (Egypt), 25-28 June 2007

Lecture 2: Understanding and Leading Change in a corporate environment


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• 1 / CHANGE IN ORGANIZATIONS ( lecture 2)

• 2 / Role of HR in Managing and Leading Changes( lecture 3 )

• 3 / Dynamic Management of JOB POSITIONS and COMPETENCIES (lecture 4)

• 4 / Leveraging the HR function into a business partner ( lecture 6)

• 5 / Role of Line Managers in Career Orientation ( lecture 7)

• 6 / Creating and management job mobility ( lecture 9)

Change management and HR strategy


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1- CHANGE IN ORGANIZATIONS

Lecture 2 : understanding and leading change in a corpororate environnement


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Summary : lecture 2 understanding and leading change

in a corporate environment

1. Introduction : a paradoxical example ( 5 to 9)

2. Understanding change in a corporate environment :

- some benchmarks (10&11)

- how to understand a change situation (12to15)

3. Leading change in a corporate environment : (16)

- to have a new look upon change :global approach (17to23)

- how to lead a change in terms of posture : operational management of change (24to39)


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Introduction :a paradoxical example

Before introducing HR role and missions, lets talk about the notion itself of change, the concept of change trough

an exampleespecially if we are confronted to a cultural change;

the following text “the customer and the bureaucrat“

is a good introduction to what it is a change or not

( so please read this text and try to answer the following questions; we will have a discussion about it after )


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“The customer and the bureaucrat”How to not listen

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• “To facilitate our understanding, let us imagine the case of a given customer. This customer is a “professional”, and has been noted as such by the company, which has identified particular needs for that market segment and dedicated specific agencies to it. The customer has been informed by letter of the opening of “his” agency (the possessive pronoun is intended to create a personal link), and he telephones the agency immediately in order to have an extra line installed, for a fax. The manner in which he is greeted makes it clear that the agent on the other end of the line has received full training in “customer relations”. The agent explains that the company takes no orders by telephone. Our customer is somewhat surprised by this lack of trust on the part of the support service which the company has in fact offered him, but nevertheless asks what the best option is for placing his order. He is told that he should send a letter – no doubt, he thinks, to generate traffic for former colleagues in the postal services. Our “professional” sends his letter and about 10 days later receives a letter back – a truly personal letter, allocating him a “correspondent” whose full name and extension number appear at the top of the page. The letter also informs him that the line he requires will be installed that same day, and indicates a two-hour time slot in order to avoid any waiting around.


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“The customer and the bureaucrat”How to not listen - continued -

Our customer has to be out of his office that day, precisely because he is a “professional”, and therefore phones the agency and asks to speak to his new correspondent.The person who answers the phone expresses surprise, and informs our customer that “correspondent” simply refers to the person who entered the customer’s request in the computerized customer management software. Our customer is passed on to another agent, whom he informs that he will not be in his office; the agent expresses regret, while noting that the customer’s absence was unforeseeable. Our customer says he is surprised that he wasn’t simply called to make an appointment, and is informed that he was called, but was not in his office (he is a professional). Hence the letter, as a last resort. At the suggestion that a message should have been left on the answerphone, which is always switched on, the employee ignores the customer’s comment that the answerphone was purchased from the same agency and informs the customer that it is against company policy to leave messages on answer phones. Finally, when the “professional” suggests that he could be called in the evening, the agent answers back that the company is not yet in the position of having to work at night.”


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Question 1

• What are the objectives of the change?

• What relationships exist between the objectives?

– Explicit• ……………………………• ……………………………• ……………………………

– Implicit• ……………………………• ……………………………• ……………………………



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Question 2

• What do you consider to be the risks of implementing the new system?

Question 3

• What accompanying measures do you recommend to go with the implementation?

Assessment


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• CHANGE IN ORGANIZATIONS AND HR FUNCTION

A few points of reference:

- Definition of change implemented (what was changed?)- The objective(s) pursued- Who established the objectives and how?- Description of initial situation and of target situation- Players concerned within the company/organization- Means of implementation: role of senior management, management, unions, HR, communication, accompanying measures (training, various arrangements), etc.

Understanding change in a corporate environment : some benchmarks


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• CHANGE IN ORGANIZATIONS AND HR FUNCTION

A few points of reference (continued):

- Difficulties encountered: resistance, lack of understanding- Negotiations: content, results- Were the objectives achieved: Fully? Partially?- Actions under way: ongoing project, project stopped, etc.- A little benchmarking on the HR practices: what should they have done? Why? How?

Conclusion: What improvements could be made?

Understanding change in a corporate environment : some benchmarks


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Understanding change in a corporate environment

Part 1: UNDERSTANDING A SITUATION OF CHANGE

• A major change affects the distribution of authority within a group, the definition and distribution of roles or the values of individuals

• A major change implies a paradigm shift (all opinions, recognized values and methods common to the members of a given group)

• A major change is multidimensional and affects the organization, staff, communication, corporate strategy and technology


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Part 1: UNDERSTANDING A SITUATION OF CHANGE (continued)

• Major change calls into question established practices, ways of thinking and internal know-how, and thus any established paradigm

• Cultural aspects of change of formalized procedures, the introduction of broader competition and a new chain of command

• Examples of change: - shift from user (captive) to customer (has choice) - shift from market-based structure (residential, professionals, businesses) to product-based organization- service- and department-based organization to horizontal project- based management (matrix organization)- centralization/decentralization of responsibilities and decisions with greater autonomy


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• Definition of a change

Major change=

multidimensional change

method staff

organization strategy

Calling into question of paradigm


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• Change and negotiation

- the decisive factor of behaviour = the game of power and autonomy played by people in order to exist in the organization- everyone will legitimately resist any imbalance that does not maintain the same scope for autonomy- people do not resist the change, but negotiate their scope for negotiation within the organization

Change and individual or group negotiation become synonymous


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Leading change in a corporate environment: global approach

Managing change = adopting a new attitude• Managing change means:

- abandoning the theory that the future can be grasped and foreseen- adopting a new approach to structure and human beings (*HR mission)- seeing how individuals seize opportunities to realize their projects

(*HR mission)- identifying the organization’s resources and capacities for controlling its inconsistencies and power relationships (*HR mission)


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Managing the change = adopting a new attitude

1. Analysis of stakes and risks2. Identification or clarification of the objectives of the change3. Identification of partners in the change process4. Understanding of the environment in which the change will take place in order to establish the possibilities for negotiation5. Preparation of the dynamics for adaptation6. Organizing the steering of the operation


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Managing the change = adopting a new attitude 1. Analysis of stakes and risks

Why change?- analysis of events, facts or situations that gave rise to the idea to undertake change- analysis of common reasons for change and their relationships- actual scope of project- risk that will be run or caused to be run- aces to be played


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2. Defining or clarifying the objectives of the change

- the real objectives are collective “constructs”- they are rarely operational from the outset

- analysis of objectives during each sequence - recasting of objectives (explicit and implicit) - list of most common characteristics of goals pursued in the change operation


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3. Defining the partners in the change process

Who is concerned by the change?Analysis of players involved, introducing them to the objectivesDetection of prevailing forces

and thereby determining

the means to identify the individuals, groups and units affected by the operation;

the roles expected or fears experienced by those concerned


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4. Understanding the environment in which the change will take place in order to establish the possibilities for negotiation

- need for genuine negotiating spaces in order to ensure acceptance- prepare these spaces at the time of and within the project - negotiation = a component of the project (not a residue)

Therefore- draw up a chart of the sociological currents within the

environments concerned- assess the changes that can be negotiated with the

environments concerned (+ identification of that which is “non- negotiable”)


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Managing the change = adopting a new attitude5. Preparing the dynamics for adaptation

- informing those involved = absolutely essential to the dynamism of the change process- study the problems that will or may be posed by the change: analysis of forces, resistances and negotiation capacities- ascertain from the preparatory work who should be informed and in what terms


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6. Organizing the leadership of the operation

Emergence of a social and collective learning process in regard to negotiation

“Change is not natural, but has above all to do with creation, invention, discovery and human accomplishment”Michel CROZIER

• Challenge the vision of those who bring rationality to bear and those who resist changeAvoid any dichotomy between the project and its secondary or human aspects


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ANALYSING A SITUATION OF CHANGE Analyse the 12 key variables

Analyse the 12 key variables

1 Promotion of the idea and how to go about it?2 Objectives3 Approach4 Matching objectives/means5 Investment6 Players7 Steering Committee8 Time

9 Analysis of possible consequences10 Piloting tools11 Potential or secondary effects12 Resistance


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ABILITY TO ANALYSE A SITUATION OF CHANGE

1 - Promotion of the idea or how to go about it?

- Choice and source of subject- Mobilizing aspect of subject- Test of idea- Training unit and/or Executive Board = who is the instigator?- Tradition of practising participatory management- Composition of strategic core- Steering committee = ? Executive Board - How the idea is to be spreadRisks: - Failure to promote the idea- Ad hoc steering, generating fear reactions - Low commitment, headlong flight


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ABILITY TO ANALYSE A SITUATION OF CHANGE Analyse the 12 key variables

1 - Promotion of the idea or how to go about it? (continued)

Context and history- The kind of stakes involved in the change: survival, development - What happens if it fails?- Sensitivity to customer/provider relationship- Company focused on itself or open to the outside- Experience of company in managing a major change- Labour relations climate- Company’s ability to disseminate information- Feasibility study- Situation of the company within its market and future possibilities

Risk: Failure to analyse the context: Overconfidence in own strengths, attitude that the change will take care of itself


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2 - Objectives

- Explanation of objectives - Level of objective: vision, goal, means- Legitimacy vis-à-vis the company’s general policy- Realism vis-à-vis the company’s mobilization capabilities

Risk: Failure to adequately clarify the objectives

- Laisser-faire and strategic submission- Executive Board and training unit not working on the same subjects- Over-hasty entry into action- Existence of two camps: those truly involved and those waiting to see what happens


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3 - Approach

- External assistance or in-company- Prior analysis already conducted- Project management mode: collective approach, idea for solution- Approach conceived as programme or process- Clarification of roles of the main protagonists- Specific role of line management- Method or frame of mind- Existence of moral guarantor

Risk: The approach proves lacking

- Insufficient flexibility- Roles not clarified- Inappropriate approach/culture


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4 - Matching of objectives/resources

- Matching resources/objectives/context/stakes- Existence of simultaneous projects or priorities- Human Resources: level of qualification and training- Material resources- Financial resources

Risk: Unrealistic objectives

- Progressive discouragement- Identification of scapegoat- Details blocking the project


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5 - Investment

• Geographical, hierarchical, technical and human scope of project

• Social, legal, technical, cultural and organizational implications of project

• Prerequisites of project• Cultural changes brought about by the change. Degree of

commitment of players concerned/internal lobby• Identification of milestones and points of no return

Risk: Underestimation of investment

Abandonment of projectDo more for the same amount


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6 - Players

• Involvement of key individuals• Choice of project bearers• Association of individuals or groups opposed to the project• Prior information for players on the objectives and approach• Respective interests of the different players• Resistance to the change: from groups or individuals• Contradictory values/project• Support for the objective by players concerned• Compensation to be provided vis-à-vis the change• Capacity to effectively implement the resources required to achieve

the objectives


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6 - Players (continued)

Risk: No or poor analysis regarding the playersthe project progressively runs out of steamemergence of by-products

irony and frustration


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7 - Executive Board- degree of unity of Executive Board/conflicts of power and areas of

authority- existence and position of leader- dominant management styles of the Executive Board/potential risks- strong cultural differences with the middle management

- management focused on the results or the procedures

Risk: Lack of unity in Executive Board

- lack of strong political will, the project runs out of steam

- everyone plays his/her own game and makes that clear to the other players


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8 - Time

Realistic evaluation of overall time and intermediate stages

Existence of indicators and scorecard for the different stagesPace of change

Availability of training unit and Executive Board

Negotiations and arbitration

Risk: Underestimation of time

Discouragement of playersReinforcement of existing beliefsNegotiations transformed into power relations


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9 - Analysis of possible consequences- intra- and inter-service cooperation- matching of jobs/equipment/competencies- weight of the change mechanism- information and communication on the project- evaluation of contribution made by players- cultural implications: loss of prestige, of conviviality- comfort zones lost

Risk: Failure to analyse possible repercussions

- management of events as they come up- rationalization and rejection of unexpected behaviour


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10 - Steering tools

Existence of rules of the game known to the playersExistence of assessment tools: indicators, scoreboardSpecific rewards: bonuses, change of contractPartial and final assessmentMethod for involving the players in the assessment processes

Risk: Lack of steering tools

Impressions replace factual dataImpossibility of analysing situations and making corrections in time


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11 - Potential or secondary effects

Unforeseen costs: economic, social and humanLoss of credibility and loss of prestigeNew distribution of authorityNew areas of uncertainty

Risk: Failure to grasp the secondary effects

Scapegoat targetDefinitive withdrawal or killing off the project


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12 - Resistance

• Understanding the different forms of resistance to change • The sources of resistance

Risk:

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