Change Implementation Techniques for Forming Transitional Team, Creating Alignment, Maximizing Connectedness and Creativity
Case Study 2 - Answers to Case Study 2
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Ingredient 1 ‐ Laying The Foundations Of New Ways (New Behaviours)
(New behaviours to demonstrate that old ways changing)
A new CEO appointed to bring 3 distinct, independent divisions together so that they work as one
Identified core competencies that should not be outsourced
Developed a time schedule for outsourcing activities
CEO redesigned his office, which included removing the displays of awards to another room
Eliminated some unnecessary traditions, especially those not adding value to the organisation
Employed a consultant to help them
Developed a video of the organisation which showed the successes of the past and endeavours to build on them for the future direction
Conducted an attitudinal survey to gauge the staff's thoughts
Ingredient 2 ‐ Establishing A Sense Of Urgency
Threats of downsizing, commercialisation and outsourcing to the private sector
CEOs future in doubt as he has a 2 year contract to change the organisation and already 12 months has expired with little progress
Budget cuts plus threat to further reduce resources
Exchange rate fluctuations
A high turnover of staff
An attitudinal survey that demonstrated a disorientated workforce with low morale
Unsuccessfully used a Business Process Review format as the basis for change with his senior management. Some of the techniques he used included Porter's 5 force analysis, gap analysis, etc
Ingredient 3 ‐ Forming A Transitional Team
The 3 divisional heads regarded themselves as operating separate organisations.
For 12 months the CEO had been trying unsuccessfully to use his executive group as the transitional team to push the changes through the organisation.. This team included the 3 divisional heads and an administrative officer The 3 divisional heads deliberately "filtered" information upwards and downwards to suit their individual whims/vested interests
CEO agreed to expand the transitional team to include around 25 representing both formal and informal leaders. This included unions and people from the shop floor plus staff from Head Office
This transitional team had a 2 day retreat to determine how the changes would be pushed throughout the organisation and how to get ownership of the change process. This was a new concept for the organisation, as traditionally only the 3 divisional heads with the administrative officer and the CEO would decide how to handle strategic issues within the organisation
Ingredient 4 ‐ Creating Alignment
The retreat was the catalyst for getting the informal leaders onside so that they could leverage the change through the organisation
This was the first time that the CEO had the opportunity to communicate directly to the informal leaders what was required. They responded enthusiastically and put pressure on the 3 divisional heads who initially tried to block the process involved in the retreat
The reaction of the union leader was interesting: ie initially he adopted a wait-and-see attitude, on the second day they enthusiastically supported the process and declared ownership of it
The CEO thought that he as leader should have the appropriate vision for the organisation. During the retreat, he wrote his proposed vision on a white board and allowed written comments. Based on this feedback, he learnt that his vision was not shared and needed to be modified so that it would be shared by the organisation
Soon after the retreat, 1 of the divisional managers decided to join the new direction while 2 left; their replacements were supporters of the change process
Ingredient 5 ‐ Maximizing Connectedness
Introduced training about how to work as teams and acquire multi-skills
The retreat was an opportunity to develop a management plan for the change which included action plans (how, what, when & who)
Techniques such as mind mapping and creative thinking skills were introduced and developed for staff to use
Ingredient 6 ‐ Creating Short-Term Wins
The organisation started to control its destiny, ie instead of reacting to requests from head office, it became proactive and got ahead of Head Office
As different milestones were reached, successful staff were rewarded with recognition in newsletters and being able to attend training courses of their choice
The organisation was allowed to bid for activities that were going to be outsourced
Ingredient 7 ‐ Consolidating Performance Improvements
The lower ranks became actively involved in the change process, eg corridor meeting with an informal leader
The process was published as the basis for transformation in the organisation throughout Australia
The CEO was promoted
The new CEO was of the 'old school' and was not interested what had happened over the last 2 years. He wanted to turn the 'clock back'. Both the consultant and the staff, who support the change, especially those in the transitional team, tried to convince him otherwise; this was partly successful.
Downsizing continued, ie 50% within 2 years
Soon afterwards, a global corporation won the tender to take over the division and the 3 units; it employed most of the staff.
The consultant was invited to continue working with management and staff plus to help in other parts of the global organisation.