International Roundtable on Civil Service Reforms

1. International RoundtableonCivil Service Reforms 17 – 18 March 2009 “ How to make Reforms Successful & Sustainable ” GORDON GULLAN Change Management Specialist – New Single Window Project, MoF [B.Sc. Eng. C.Eng. - Sloan Fellow, London Business School]

2. Reform is a journey .......... “A voyage of a thousand kilometres begins with a single step. It is important that that step is in the right direction” ( from an Old Chinese saying)

3. BUREAUCRACY “as we know it” Continue as we are = Stability REFORM – How do we define it ? MODERNISATION Re-engineering and Automation of processes - (ICT) REFORM ( INCREMENTAL ) Changing our Organisation in all aspects to be effective & efficient INCREASING IMPACT ON PEOPLE IN ORGANISATION(S) + CHANGE IN WORK PRACTICES + INCREASING RESISTANCE TO CHANGE TRANSFORMATION ( MONUMENTAL ) Potentially Radical Change of whole Organisation under external crisis, threat OR opportunity

4. What do you want the vision to be..? “ We need to have a realistic vision ……? ”

5. What has to be done to achieve the changes needed ? Restraining Forces Change – Analysis to achieve Goals Future Position Where does the business WANT to be ? Driving Forces Present Position Where is the business now ? Past Where have we come from ? How do we get there?

6. Successful Change: An 8-stage Process After Prof. John Cotter, (Harvard Business School) Phase 1 – Design + Preparation : ( 1 ) Establishing a sense of Urgency ( 2 ) Creating the guiding Coalition ( 3 ) Developing a Vision & Strategy ( 4 ) Communicating the Change Vision Phase 2 – Action + Impact for Reform : ( 5 ) Empowering broad-based Action ( 6 ) Generating Short-Term Wins ( 7 ) Consolidating Gains & producing more Change ( 8 ) Anchoring New Approaches in the Culture

7. Successful support to Reform : EGYPT CUSTOMS MDP Timetable & Content - Senior Managers

8. Successful support to Reform : EGYPT CUSTOMS Senior Managers’ Expectations for the MDP • In general the key areas of concern covered: • Making more use of delegation– with some emphasis on time management • Dealing with problems & techniques for identifying solutions – better decision-making • Use of teamworking – notably this was not used in ECA to any great effect • Need for better communications skills • Improving motivation of employees – to obtain better performance • How to set objectives and manage the results • Some focus on planning and controlling • Some areas, beyond the scope of this type of programme, highlighted: • How to train subordinatesin the techniques introduced – raised the issue of an organisational lack of any regular management training function • How to deal with legal issues – much concern was raised on how legislation blocks managers for managing the organisation. • How to deal with managerial & administrative corruption – raised in many discussions during programme & closely related to developing a transparent management culture.

9. Successful support to Reform : EGYPT CUSTOMS Senior Manager’s Evaluations: Summary for MDP

10. Sustainability for Change: EGYPT CUSTOMS Overall Impact of MDP on Senior Managers • The conclusion drawn from the summary of 46 Interviews with participating Executive & Senior Managers (of total 50) was: the MDP has had a very significant impact on ECA, in the following important areas and ways: •  Almost 30% stated that it had caused a marked change in both thinking style and management style – 20% agreed that the thinking style of senior management was now changed and more open to ideas and the sharing of them. The common managerial language shared now across the whole organisation is a notable change from the past culture • About 27% stated that planning skills were much improved including understanding the link between strategy and operational planning • Also about 27% had seen great improvements in problem-solving approaches and seeking alternative solutions • 20% noted much clearer understanding of delegation and a less centralised focus; with more trust being given for decision-making. • BUT - About 8-10% saw very little value in the Programme, even though they had participated. In their units there was little or no impact at middle management level.

11. Sustainability for Change: EGYPT CUSTOMS MDP - Value for Developing Future Managers • MDP Evaluation feedback included specific comments on need to develop a second line of effective managers. • On additional training needs & expansion on topics covered in MDP highlighted following: •  Monitoring and control techniques • Performance indicators and measures and methods • Leadership skills with particular reference to team leadership • Handling and managing conflict (a topic introduced with success for the Middle Managers) •  Other comments included perceived value of the MDP for developing future managers - the overall theme of our management training under TEP-C project, including: • “MDP when applied will be like a revolution in our management and • will create change in management thinking to support the ECA Reform.” • The hope is that sufficient Senior Managers will have the Vision • to believe this and ensure the impact continues.

12. Change – An Organisational Perspective The 7-S Model of Organisation: Strategy Structure Systems Shared Values Staff Style Skills

13. Strategy Structure Systems Shared Values Staff Style Skills Change - Refocus the Organisational Perspective

14. What is Change Management(1) • Change Management addresses the human side of implementing planned change: • leadership,culture, and behaviour • The concept of “planned change” implies that change management is driven top-down, with the goal of instilling ownership of the change in the entire organisation • The change happens on many dimensions but most often around major strategy changes & associated culture change

15. What is Change Management(2) • Change Management is notabout the development of “content” • This includes: Strategy, New Operating Model ( structure, processes, systems ) or Measurements / Incentives (except as a part of reinforcing culture change ) • Similarly, with “content” or “analysis” of customer types & interactions, cost reductions or business process changes • Change management works in parallel with the strategy content and Programme management

16. Alignment of People & Tasks in Change Successful Change requires alignment of BOTH People and Tasks within an organisation Dimensions of Successful Change Mission & Strategy Leadership & Vision Structure, Processes, & Systems Tasks / Systems Culture / Shared Values People / Teams Better Performance Measures & Incentives Behaviour Strategy / Operating Model Change Management

17. Transformation Programmes & Change Many“ride the roller coaster” and risk failure due to lack of “Change Management” “Something is wrong”, “we are not getting there” Second wave of enthusiasm, as some implementation succeeds “We succeeded” High More frustration, change did not reach everybody Setbacks in Implementation, - anxiety Enthusiasm/ Confidence First state of enthusiasm/ quick wins Transformation programme initiated Critical Stage “We failed” Low Scope the Problem and Plan the Transformation Execute the Transformation Plan Stagnation / Crisis Insecurity / Loss of Momentum Success or Failure Time Failure is often due to inadequately addressing the “Human Issues”

18. SUMMARY REFORM : Successful & Sustainable ?

19. Process for Change Success – Phase 1 Phase 1 – Design + Preparation : ( 1 ) Establishing a sense of Urgency ( 2 ) Creating the guiding Coalition ( 3 ) Developing a Vision & Strategy ( 4 ) Communicating the Change Vision • Examining the environment & competitive realities (for Indonesia) • Indentifying & discussing crises, potential crises or major opportunities • Putting together a Group with enough power to lead the Change • Getting the Group to work together like a team • Creating a vision to help direct the change effort • Developing strategies for achieving the change • Using all methods possible to constantly communicate the new vision and strategies • Having the guiding coalition role model the behaviours expected of staff

20. Process for Change Success – Phase 2 Phase 2 – Action + Impact for Reform : ( 5 ) Empowering broad-based Action ( 6 ) Generating Short-Term Wins ( 7 ) Consolidating Gains & producing more Change ( 8 ) Anchoring New Approaches in the Culture • Getting rid of obstacles • Changing systems or structures that undermine the change vision • Encouraging risk taking & non-traditional ideas, activities & actions • Planning for visible improvements in performance or “wins” • Creating those “wins” • Visibly recognising & rewarding people who made the wins possible • Using increased capability to change all systems, structures, & policies that don not fit together & do not fit transformation vision • Hiring, promoting & developing people who can implement the change vision • Re-invigorating the process with new projects, themes & change events • Creating better performance though customer & productivity orientated behaviours, better leadership & more effective management • Articulating the connections to ensure leadership development & succession

21. People need a clear sense of the future “ Where there is a genuine vision…......., people excel and learn Not because they are told to, ......but because they want to ”. ( Peter M Senge, MIT - The Fifth Discipline )

22. Review following Questions for Feedback on aspects of Reform & Change Management

23. A Culture Alignment Model Values Published and communicated; describing principles, ethics & vision Intentions Visible structures and processes by which values are made operational Promises Messages to all stakeholders about what to expect Behaviours Actual day-to-day actions and interactions between people

24. “ I’ve got it too, Staffan ….. A strange feeling like we’ve just been going in circles.” A reflection on Reform.......?

25. ...future vision and its opportunities “ The future is hidden even from those who make it ” - Anatole France 1844 – 1924, (French poet, novelist & critic ) • To attain knowledge, add things every day • To attain wisdom, remove things every day” - Lao-Tzu Chinese Philosopher

26. Principles of Successful Change (1) Change to a new organisation needs support of a comprehensive set of principles: Principle Rationale 1. Change is a journey • Driving enduring change is an evolutionary process • The journey is as important as the endgame 2. Customize the approach • The approach must inherently be custom - no two situations are the same • The challenge is to prioritize among the use of the various management levers to have the most impact 3. Focus on behaviour • Achieving lasting change requires transforming the behaviours of a large number of people • The key to changing behaviour is changing what motivates people to make the choices they do -- which means changing the systems, structures and processes that influence decisions and behavior

27. Principles of Successful Change (2) Change to a new organisation needs support of a comprehensive set of principles: Principle Rationale 4. Take a systems view • There are no simple solutions - critical to avoid tendency to oversimplify • It is inherently difficult to get various systems aligned / mutually reinforcing: • Many interacting systems and lots of design details • New processes and systems often overlaid on old ones 5. Anticipate barriers • Barriers to change can be identified, anticipated & managed proactively 6. Listen to resistance • Resistance is rational – people can foresee implications of change & they don’t like it – it is essential to understand the reasons behind resistance 7. Embrace early adapters • Change usually means winners and losers – identify them early on and tailor the approach accordingly