1 / 48

Building Internal Change Management Capability To Achieve Competitive Advantage

Building Internal Change Management Capability To Achieve Competitive Advantage. Michael Wright Director, Learning, OD and Change Management, Constellation Energy Bill Young Director, Education Alliances, Capella University. Welcome.

alaire
Download Presentation

Building Internal Change Management Capability To Achieve Competitive Advantage

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Building Internal Change Management Capability To Achieve Competitive Advantage Michael Wright Director, Learning, OD and Change Management, Constellation Energy Bill Young Director, Education Alliances, Capella University

  2. Welcome “In the long run, the only sustainable source of competitive advantage is your organization’s ability to learn faster than its competition.” -The Fifth Discipline Field Book

  3. Agenda • Introduction to Constellation Energy 10 minutes • DVD (4 minutes) • Building Change Management Capability 10 minutes • Components of Change Management Capability 10 minutes • Case Study: Application at Constellation 10 minutes • Questions & Closing 10 minutes

  4. Introducing Constellation Energy

  5. The Constellation Energy Family

  6. 17.1 Billion Revenue 3.9 Billion 4.7 Billion 9.7 Billion 12.5 Billion TBD 9700 Employees 9200 8700 8650 9570 TBD 167 Fortune 432 421 352 203 125 500 Rank Powering Our Growth

  7. Energizing Our Future

  8. Our Next Phase of Growth • Florida Power & Light and Constellation Energy to merge, creating the nation’s largest competitive energy supplier • Constellation Energy will be the second largest electric utility • $28 Billion transaction • Will create a Fortune 100 company

  9. Managing our enterprise wide changes is a huge investment of money, assets, time, and resources. Our Challenges In Managing Change Common Challenges In Managing Business Change Lack of (effective) leadership: a.) actions (or inaction) by the leaders of the organization b.) the style and approach used by those leaders 2. Poor (or no) framework/model and tools for change 3. Failure to set metrics and benchmarks 4. No disciplined change process Change Management, The Next Generation Manufacturing Report, 1997

  10. Management behavior not supportive of the change 29% All other obstacles 32% Inadequate resources (time, knowledge, money) 16% Employees fearful and resistant to change 23% Failure Is Not An Option Given the cost and people impacts, we can not leave managing change to chance. Greatest Change Management Obstacles Best Practices in Change Management, ProSci, 2000.

  11. Managing Change Is Important To Our Bottom Line • Time/cost over-runs (delayed results)…………… • Cost of project restarts…………………………..……. • Lost market opportunities……………..…………….... • Market share erosion to competitive forces…... • Reduced features or functionality………..….…….. • Loss of desired efficiencies……………..…………….. • Reduced productivity……………………………..……... • Increased HR expenses for turnover…..………….. • Unanticipated marketing expenses for delays.. • Stock valuation fluctuation…………………….….…... • THE ULTIMATE: Project write off……………….…. $ ? __ $ ? __ $ ? __ $ ? __ $ ? __ $ ? __ $ ? __ $ ? __ $ ? __ $ ? __ $ ? __

  12. Managing Change Vs. Building Change Capability Event-Based Change Transformational Change

  13. “True change takes time; it is not a simple quick fix where you bring in the change agents and straighten out the organization. It is the systematic creation of a change capability through learning how to build and use outsider insider expertise.” J. Klein, True Change: How Outsiders on the Inside Get Things Done in Organizations

  14. Building Change Management Capability: A Source of Competitive Advantage

  15. Insider-Outsider Approach to Building Capability INSIDER SKILL, KNOWLEDGE, RELATIONSHIPS, CULTURE CHANGE MANAGEMENT CAPABILITY OUTSIDER BEST PRACTICE, KNOWLEDGE, COMPETENCY An “insider-outsider” infrastructure accelerates Constellation Energy’s approach to building internal change capability.

  16. The Transformation Support Continuum INDEPENDENCE INTERDEPENDENCE DEPENDENCE Internal skills and capabilities are believed adequate. Underlying belief: Little support is needed to successfully execute the change. “We need just do it.” Internal skills and capabilities can be developed to support the change. Underlying belief: A combination of external guidance and the development of internal capability is the best means to ensure that there is adequate, well-trained support through the formation of a transformation. “We develop the capability for success over the long haul.” Internal skills and capabilities are completely lacking. Underlying belief: High levels of external expert support are needed to successfully implement the change because internal capability is so lacking. “We need to let them do it to us.” At Constellation Energy, we have a significant need to develop internal change capability that will build and improve over time.

  17. CHANGE MANAGEMENT CAPABILITY Competitive Advantage: Our Future State Structure:A well positioned, functional and visible infrastructure with roles and responsibilities, tools and technology Process:A robust, disciplined, easy-to-use work flow. A set of action steps and tasks that are flexible and adaptable. Integration into SIRIUS, integration framework & processes. Aligned to High Performance Teams, Leadership Development, Performance Management, corporate culture, business & organizational needs People:Internal coaches, consultants, trainers. Skilled and capable change leaders as sponsors of change. Experienced change agents. Knowledgeable partners in change capable of dealing with the ambiguity of a constant changing organization Culture:Belief in risk-taking, disciplined approach and cross department orientation. Behaviors that show tolerance of change

  18. SIRIUS FRAMEWORK SIRIUS TOOLKIT FAST START TOOLKIT ENTERPRISE PMO CHANGE MANAGEMENT CAPABILITY EFFECTIVELY MANAGING CHANGE LEADING CHANGE PERSONAL STRATEGIES IN COPING WITH CHANGE ONLINE TRAINING INTERNAL CM CONSULTANTS COMMUNITY OF PRACTICE CHANGE AGENT NETWORKS CM KNOWLEDGE SUITE Building Our Future State

  19. SIRIUS GP Course Depth of Understanding Co-Delivered by BPI/L&OD PROJECT MANAGEMENT Curriculum Managed by L&OD Basic Principles of: PM Principles Integrated Cost & Scheduling Risk Mgmt Managing Project Mgrs Leadership & Communication Skills MS Project CHANGE MANAGEMENT CAPABILITY • Project Management • Change Management • Problem Solving and • Process Improvement • Integration of Constellation • Leadership Competencies CHANGE MANAGEMENT Curriculum Delivered by L&OD Project Prioritization Workshop Breadth of Understanding Effectively Managing Change Leading Change Personal Strategies Course SIRIUS Curriculum Delivered by BPI SIRIUS-I SIRIUS-C All aligned with SIRIUS Framework and are designed to build internal capability in all areas • Supported by: • SIRIUS Executive Coaching • ePMO • Business and financial simulation • Consulting skills development Cementing Future State Capability Through Learning

  20. CHANGE MANAGEMENT CAPABILITY Supporting Just-In-Time Change Consulting • Executive understanding and commitment to our change management approach (SIRIUS) • Enough capable in house expertise (change agent networks and internal change management consultancy) • Sufficient resources and time to support continued development of change agents and internal change consultancy • Visibly positioning and sponsoring internal resources as dedicated and competent to assist with major change efforts • Ensuring external consultants understand our change management methodology, as the change framework, partnering with internal resources to create and execute change plans

  21. CHANGE MANAGEMENT CAPABILITY Future State Impact Training • 1079 staff trained from 1/06-7/06 • Increase in SIRIUS training • Course feedback is very positive (~6.5 out of 7 satisfaction rating ) • Seeing higher enrollment: SIRIUS-GP & Community of Practice for continuing education Methods & Support • Community of Practice is actively sharing examples, best practices, updated tools and providing ad-hoc mentoring via Share Point • Internal CM consultants are partnering with engagement directors to better leverage internal capability • Toolkit v3.0 Design Review feedback from Focus Group participants, ”Love it … when can we use it” We are leveraging our COP to hone our methods & provide a wider-reaching support model.

  22. INTEGRATION OF CHANGES LINKAGE TO ALL KEY DRIVERS CHANGE MANAGEMENT CAPABILITY QUANTIFIABLE MEASURES AND RESULTS ANALYSIS OF CHANGE IMPACTS PROACTIVE PLANNING ALIGNED TO PM METHODOLOGY COMMITTED LEADERSHIP ENGAGED EMPLOYEES Contributors To Our Success

  23. Case Study:

  24. Lessons Learned

  25. QuestionsMeeting Close

  26. Thank You • Contact Information: • michael.wright@constellation.com • 410-783-3234

  27. Appendix

  28. Change Framework, Tools & Training

  29. Define the opportunity and potential benefit to our customers and to Constellation Energy. Scope Investigate Reason Innovate Undertake Sustain Determine baseline of the current performance and define customer requirements for improved performance. Explore the root causes and identify gaps. Change Management and Project Management Evaluate quick hits and potential solutions, prioritize them and develop a strategy for implementation. Implement the quick hits, pilot the more complex solution, and validate the improvement. Transition the solution to the owner, confirm the results, and share the knowledge Constellation Energy’s Change Management Framework

  30. Index Investigate Glossary • Define the Project • Understand business problem • Collect any existing data • Understand impact areas • Identify & assess stakeholders • Define boundaries & constraints • Develop the Charter • Identify key metrics • Estimate the effort and resources • Define team & mobilize resources • Develop draft project charter • Identify Risks & Issues • Identify & manage the risks & issues • Review project with sponsor and key stakeholders • Implement project tracking • Objectives Reason Innovate Undertake Sustain Scope Project Definition Voice of Customer High Level Process Map • Problem Solving Tools Lessons Learned Manage Risks Project Tracking Project Review Estimate Resources Estimate Schedule Estimate Cost • Project Management • Tools Draft Charter Managing Big Scope Change Tracking Engage Team Facilitation Techniques Project Comms Engage Sponsor Stakeholder Planning • Change Management • Tools Core tools … help meet objectives Additional tools provide added depth for understanding, analysis and/or engagement

  31. Internal Change Management Curriculum

  32. Supporting Change Management Resources

  33. Communication Vehicles

  34. 17.1 Billion Revenue 3.9 Billion 4.7 Billion 9.7 Billion 12.5 Billion TBD 9700 Employees 9200 8700 8650 9570 TBD 167 Fortune 432 421 352 203 125 500 Rank Transformation Communications

  35. Change Management Community of Practice

  36. Change Management Knowledge Suite

  37. Internal Change Management Consultancy

  38. Enablers Internal Change Management Consultancy Our approach to change management focuses on transitions – helping people bridge the gap from current to future state in the quickest and most efficient way Process Output/ Results People

  39. Our Change Management Practice • Internal – we have change management resources on staff who understand the organizational culture and are ready to help you when needed • Experts – from our Business Process Improvement Group who’s distinctive competence is change management; we have years of hands on experience across a broad range of initiatives • Flexible - our level of engagement can be adapted to suit your needs; we can offer full time or part time support • Lower costs – our fees are lower than those of external resources

  40. Change Agent Networks

  41. Change Network Overview • Creates ownership among impacted employees by giving them an opportunity to be involved, voice their opinions, and shape the approach being used to implement the change • Increases effectiveness and trustworthiness of communications through respected peer delivery • Reduces change resistance by encouraging associates/”end users” to understand the need for change and its potential advantages • Supplementscommunications coming directly from Business Unit Management / Supervisors • Coaches and enables associates to take action and make the change effort successful • Providesfeedback of the change effort back to the project team • Builds change leadership for the future • Input into design of change A Change Network is a structured group of employees who work with the projects to support the implementation of change. Why do we need a Change Network?

  42. Change Network Roles The design of the Change Network focuses on cascading commitment from Executive Sponsors to Change Targets that are being asked to adopt the change in a consistent and rigorous way. Change Network Initiating Sponsors • Set vision, defines changes, and communicates priorities • Provide resources and support • Publicly demonstrate commitment • Aligning change to business strategy • Builds change network • Coordinates and coaches members • Provides consistent, coordinated information and materials SustainingSponsors • Demonstrate commitment to outcomes • Allocate resources / support and provide project guidance • Publicly support and validate change effort • Support and coach change agents • Support change and communication efforts within respective organization; partner with supervisors to deliver key messages • Provide a designated communication point • Surface issues/concerns; work with project to resolve / address Change Agents CM Team Change Targets • Listen to / read communications • Ask questions and identify issues • Understand / adopt change

  43. Initiating Sponsors Steering Committee Sustaining Sponsors Advisory Committee Sustaining Sponsors Controllers Committee Change Network Structure Representatives from all impacted business units create a “spider web” of change agents across the organization. Depending on the impact of the change, the appropriate change agents would be called into action BU 1 Change Agents - Finance* - Procurement** - Operations BU 2 Change Agents - Finance* - Procurement** - Operations BU 3 Change Agents - Finance* - Procurement** - Operations BU 4 Change Agents - Finance* - Procurement** - Operations Other Non-Reg Change Agents - Finance* - Procurement** - Operations BU 1 End Users BU 2 End Users BU 3 End Users BU 4 End Users OTHER End Users

  44. Change Network Structure Business Transformation Office Project PYXIS HR Transformation Building Internal Change Capability To Support Rapid Deployment Merger & Integration E-Time Project

  45. Change Networks Accelerate Change Deployment • Acting as a ‘sensing network’ identifying business specific issues, escalates change barriers and assisting in identifying current skill and knowledge levels of target groups • Being involved in deployment of communications, design, delivery and evaluation of learning solutions locally • Having credibility with target groups and ensure overall alignment of change to business culture—they bring business perspective and language to the change implementation and know what works for sustainability of change • Building local acceptance and commitment of the change—accelerating targets through the change curve, managing transition issues associated with change • Maximizing speed to competency and overall time to productivity and performance Change networks support rapid deployment of business change

  46. Specific Activities Time Commitment One-time / Periodic • Change Agent Kickoff Workshop • Confirm training needs analysis and training curriculum for organization • Support training effort • Half day workshop • TBD (Project Project-specific) • TBD (Project Project-specific, close to rollout date) Monthly • Monthly Change Agent Briefing • Pre-reads / review of communication materials • Periodic informal communication with associates • Periodic formal communication delivery with associates • Sharing feedback / communicating questions & concerns with the PMO • 2 hours • 1 hour • 1-2 hours • 2-3 hours prep and delivery time ~ every other month • 2 hour 8-12 hours / month Change Agent Time Requirements The estimated time commitments required of a successful Change Agent are identified below, and may increase with later stages

  47. Recommendation • Develop extended network of support • Expand sphere of influence • Expand view of potential career opportunities Increase Visibility • Increase skills and leadership competencies • Experience documented • Letter of commendation from Senior Executive Development Opportunity • Spotlights in Business Communication Channels • Promotional / thank you “awards” based upon contribution and participation • Team One Awards Recognition Motivating Change Agents Participation in the Change Network requires hard work, so Change Agents must believe their contribution and input is valued and respected

  48. Monitoring the Network To provide on-going coaching and continuously improve, implementing mechanisms to measure overall effectiveness of the network Measures Reviewer Metric Tool Change Management Team Controllers Committee Advisory Committee • Activity completion • Meeting attendance Activity Tracker • Approachability • Interpersonal skills • Informative • Reliability Peers Supervisors and Managers Change Network Member Effectiveness Survey

More Related