“The Inconvenient Truth About Change”

1. INCoNVENIENT TRUTH “The Inconvenient Truth About Change” Colin Copeland Bob Bell Graham Kennett

2. What Triggers Changes… Internal Factors – strengths & weaknesses…

3. External Factors – legal, political, economic… UK GDP GROWTH RATE 2008 -2012 source ONS

4. External Factors – legal, political, economic… UK GDP GROWTH RATE 2008 -2012 source ONS

8. Not all Change is the same… Crisis change - reactive response to some type of external factor or fear of failureChosen change - proactive approach taken by employees within an organisation

9. "The rate of change is not going to slow down anytime soon. If anything, competition in most industries will probably speed it up even more in the next few decades.”John P. Kotter

10. What Percentage of Change Programmes Work?

11. INCoNVENIENT TRUTH 70%of change fails to hit target !

12. 74,624Change Management Bookson Amazon !

13. INCoNVENIENT TRUTH

14. What are the Key Ingredients… A compelling need to change A clear shared vision Capacity for change Actionable first steps + + + =

15. Achieving Sustainable Change A compelling need to change A clear shared vision Capacity for change Actionable first steps + + + = Are all of these in place ?

16. Achieving Sustainable Change A compelling need to change A clear shared vision Actionable first steps Capacity for change + + + = LOW PRIORITY – LITTLE ACTION

17. Achieving Sustainable Change A clear shared vision A compelling need to change Capacity for change Actionable first steps + + + = FAST START – FIZZLES OUT

18. Achieving Sustainable Change A compelling need to change A clear shared vision Actionable first steps Capacity for change + + + = ANXIETY AND FRUSTRATION

19. Achieving Sustainable Change Actionable first steps A clear shared vision Capacity for change A compelling need to change + + + = HAPHAZARD EFFORTS AND PULLING IN ALL DIRECTIONS

20. Let’s consider an organisation’s performance… CHANGE

21. Typical Management Process for Improving Performance PERFORMANCE Quality People Business Activities Cost Process Delivery CUSTOMER VALUE Identify Opportunities

22. 1.Old Fashioned Perceptions 2. Justifiable criticisms 3. Managers’ role with people 4. HR vision..enriching role 5. Value adding people 6. Examples Themes

23. Recruitment & Welfare HR is the administrative function for people records Occupied by meetings with employee reps Quotes employment legislation at managers Provides blockages rather than solutions Managers send ‘problem people’ to HR 1. Old fashioned perception of HR

24. Do you need an HR function in your organisation? Is its existence a factor of business size? Do you find HR function helps or hinders? What key competencies/experience do you expect HR to have? How do you measure the value of HR’s contributions? Meeting today’s needs?

25. Too administrative Repetitive handling of similar issues.applying old solutions to repetitive problems Lack of appropriate expertise/ too generalist Seen as blocker rather than a Value- adder Too traditional/rule orientated Remote from the people and understanding the business Focus on policing/compliance Dustbin for multitude of functions Arrogant: perceiving themselves as essential 2. Justifiable Criticisms of HR

26. Strategic Input: Direction of travel & milestones: Staff numbers; competencies; timings… Tactical plan: How to get there: Communication of vision; standards improvement; employee/industrial relations… Operational:Implementation: Developed managers ; engaged employees; robust processes……. HR functional levels

27. What Percentage of HR Time is Pro active? INCoNVENIENT TRUTH 30%

28. How Should HR Time be Spent ?

29. Manage things ..Processesbefore People Justify being too busy to invest time Should: Engage with their people Set achievable goals Communicate & motivate Regularly review performance etc HR can be a “Blame target”: never seen; don’t understand ….. Become a crutch rather than a support 3. Managers’ Role

30. Apply additional expertise which complements that of manager Can unravel contentious problems and deliver solutions Act as expert sounding board Support the development of good management practice Propose sustainable solutions Be an enabler rather than the doer Avoid becoming a management crutch 4. HR Vision as value added only if it can…

31. “HR should not be defined by what it does but by what it delivers-results that enrich the organisation’s value to customers, investors and employees”: Ulrich Aspirational HR:Measure the value

32. 5. Value Adding People 3 .Training 4. Tools for People Management 5. Tools for employee engagement 6. Industrial/Employee Relations 1. People Strategy 2. Manpower Plan & Competence Management 7. Employee Career management

33. Employee Career Cycle Continuation in Role Recruitment/Assessment Termination Induction/Familiarisation of position Promotion Retirement Career Progression/ Development Outplacement /Termination Redundancy

34. Typical Management Process for Improving Performance PERFORMANCE Quality People Business Activities Cost Delivery CUSTOMER VALUE Identify Opportunities

35. Risk Responsiveness Reliability Repeatability Retention Example 1: Handling Recruitment

36. Recruitment: Titanic Disaster?

37. The Real Cost of Selection Face Value Interview…. “likeable person” Lack of structured questions • Business Cost • Poor Performance • Turnover • Instability • Confidence • Reputation • Cost of managing poor performance Evidence of competencies

38. Typical Management Process for Improving Performance PERFORMANCE Quality People Business Activities Cost Delivery CUSTOMER VALUE Identify Opportunities

39. Volunteers..loose skills Economic need..short term? Medium? Choosing redundancy for performance failings People asset today..gone tomorrow! Compulsory redundancies.. How to select? Example 2: Reducing People/Structures

40. Numbers Slicing BOTTOMSLICING

41. Numbers Slicing TOPSLICING

42. Numbers Slicing HIERARCHICALSLICING

43. Time recording Employee Numbers Employee absence Supervising employees Managing performance Succession planning Employee development Further Opportunities for Change

44. Empowering employees Focusing contributions Reducing management interventions..then structures Enhancing HR information systems Managers taking responsibility for people performance HR in background working on Strategic, tactical and support mechanisms Employees operating self-supervision principles HR in-house or outsourced Key Challenges

45. Competent People Managers Employee engagement Supportive people/performance processes Employee self evaluation HR enabler Critical Balances

46. Typical Management Process for Improving Performance PERFORMANCE Quality People Business Activities Cost Process Delivery CUSTOMER VALUE Identify Opportunities

47. What is a Process ? A process is a collection of related , structured activities or tasks that produce a specific service or product for a particular customer. Money, Time, Materials Labour

48. Where will you find a “process” ?

49. How do I recognise problems with a process ? Does the product meet specification ? Do we have rework or scrap ? Do we have customer complaints ? Quality Raw material & inventory costs Direct & indirect labour costs Overheads, heat, light, rent… Inefficiency, unplanned machine downtime Cost On time to customer requirement Delivered to company plan Delivered to correct location & in correct quantity Delivery

50. Case Study 1 – Large Precision Machining PERFORMANCE People Quality Activity Cost Process Delivery Identify Opportunities