07 05 leading change (70 slides)
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2007 May Abu Dhabi University Presentation on Leading ChangeTRANSCRIPT
Challenge of Leading Change OR
How to Engage Employees in the Change Process
Challenge of Leading Change Abu Dhabi University May 2007
Presentation Overview
Making Changes
Why Change?
Managing Change
The GASCO Case
Successes & Lessons Learned
Challenge of Leading Change Abu Dhabi University May 2007
Making Changes
People’s minds are changed through observation and not through argument… Will Rogers
To improve is to change; to be perfect is to change often… Winston Churchill
Only the wisest and the stupidest of men never change… Confucius
Challenge of Leading Change Abu Dhabi University May 2007
Why is Change Necessary?
Increasing global competition
Experienced workers retiring
Introduction of new technology
Ageing equipment
New business opportunities
Business threats
Nationalization efforts
Meeting customer needs
Challenge of Leading Change Abu Dhabi University May 2007
GASCO Vision
Managing Change
Challenge of Leading Change Abu Dhabi University May 2007
The Management Focus
New Business
ReputationIncrease Market
Share
QualityExpand
Business
Control Costs
IncomeProfits
ProfitsSatisfy Shareholders
Customer Satisfaction
What Do Managers, Shareholders & Owners Want?
Challenge of Leading Change Abu Dhabi University May 2007
Benefits
Security
Good Environment
Recognition
Feedback
Development
Salary
Training
Supervisor Approval
The Employee Focus
What Do Employees Want?
Challenge of Leading Change Abu Dhabi University May 2007
Understanding Change…
Successful change requires clear communications
Top management support is required
Mgmt & workers have a different view of change
Change efforts upset the status quo
Change increases anxiety & stress levels
There will always be resistance to change
Resources & time are required to secure change
Change efforts always take longer than expected
Challenge of Leading Change Abu Dhabi University May 2007
What Must a Leader Do?
Understand why change is necessary
Have a vision worth believing in
Communicate that vision to the entire workforce
They must be honorable & ethical
Support change and provide clear guidance
Create a change strategy for the organization
Align the company’s goal with the new vision
Inspire people to achieve company’s objectives
Challenge of Leading Change Abu Dhabi University May 2007
Create a sense of urgency
Build a Team to lead the change effort
Continually communicate the need for change
Developing pilot programs
Develop structures to support the change
Redesigning systems and/or procedures
Empower people to carry out the change efforts
Institutionalize the change efforts
Create a “Plan for Change”
Challenge of Leading Change Abu Dhabi University May 2007
Prioritizing Change Issues
High
High
Low Difficulty to Resolve
Imp
act
Challenge of Leading Change Abu Dhabi University May 2007Difficulty to Resolve
Imp
ac
t o
n t
he
Org
an
iza
tio
n P
erf
orm
an
ce
High
LowLow High
A B
C D
PE1
Attribute Code
Performance PE Innovation IN Open Communication & Transparency
OC
Professionalism PR Learning & Adaptability
LA
Teamwork TW Family and Community
FC
HSE HS
PE2
PE3
PE4
IN1
IN2
OC1
OC2
PR1
PR2
PR3
LA1
LA2
LA3
TW1
TW2TW3
FC1
FC2
HS1
HS2
HS3
What Comes First?
Challenge of Leading Change Abu Dhabi University May 2007
Tell your staff what’s in it for them! What will the change do to them and for them?
The Most Important Rule!
Challenge of Leading Change Abu Dhabi University May 2007
GASCO Vision
GASCO’s Case for Change
Challenge of Leading Change Abu Dhabi University May 2007
Integration mid 2001
The Case for Change in GASCO
GASCO Established in 1978
Joint Venture Company ADNOC, Shell, Total & Partex
1000 employees
Mainly produced NGL for export
ATHEER Formerly ADNOC Gas
Processing
ADNOC Company
1000 employees
Produced consumer gas for use within UAE
Created one of the largest gas processing companies in the world
Diversified the customer base (local & international)
Challenge of Leading Change Abu Dhabi University May 2007
Strengths• Vital role in hydrocarbons value chain of Abu
Dhabi• Exciting new organization with scale and
ambition to do things differently• Recognize need to change, led by the Chairman
and GM• Desire to build competencies from within• Increased focus on performance• Active positioning for future expansions• Drive to work collaboratively
Weaknesses or Areas for Improvement!• Culture & morale• Perceived working environment• Leadership and human capability• Leverage of information systems• Gaps in key management processes• Ineffective business processes• Lack of performance requirements
Opportunities• Capitalize on merger • Increased geographic and value chain spread• Broad shareholder support• Established growth and change agenda• Leverage new technology• Leverage brand
Threats/Challenges• Constraining Shareholder response mechanism• Emerging competitive activity• Increasing regulatory, quality and HSE
requirements• Increasing end user demand for more
services/outputs• Losing talent to other companies• Emiratization targets
SWOT Analysis
Challenge of Leading Change Abu Dhabi University May 2007
Force Field Analysis
Current Performance
TargetPerformance
Culture Driving ForcesCulture Restraining Forces
Using latest technologyClear job descriptions are available for allLearning opportunities increasingLinking reward to performanceOpen door policyVisible management commitmentExtensions granted for experienced staffPositive company reputationOpportunities for project developmentCompetency assurance systemClearly defined targets & objectives (KPIs)Succession plans availableDefined targets for traineesEmiratization efforts
Aging ProfileNo database for capturing experienceNo sharing of knowledgeToo many activities with limited resourcesLack of specialized trainingLow motivationHigh turnover of experienced staffNo sharing of responsibility in team environmentJob Descriptions / Culture / Business Processes do not encourage teamworkNo delegation of authorityLack of incentives / recognition / rewardLack of accountabilityLow commitment levelLack of discussionRotation system & impact on continuityConservative decision making / taking responsibilities
Challenge of Leading Change Abu Dhabi University May 2007
Challenge of Leading Change Abu Dhabi University May 2007
GASCO Vision
Moving Forward
With GASCO 21
Challenge of Leading Change Abu Dhabi University May 2007
GASCO 21 is a journey NOT a project
Involves continual improvements NOT just a one-time fix
Involves all GASCO staff NOT just direct employees
Requires the support of all personnel NOT just managers
Improves the working environment
Supports change within the Company
Creates awareness, interest and openness in the Company
Renews peoples’ faith in GASCO and it’s Leaders
It is about solving Company problems AND NOT focusing
on issues that should be handled through other means
What is GASCO 21?
Challenge of Leading Change Abu Dhabi University May 2007
GASCO 21 Foundations
Culture & Leadership
Openness & Transparency
Teamwork & Communications
Learning, Adaptability & Innovation
Leadership Assessment & Development
Family & Community
Management Systems
Performance Management
Business Process Design
Interfaces Between The Divisions
Common Processes & Procedures
Improving Work Processes
ADNOC Key Performance Indicators
Cascade the KPIs downward
Measurable Performance Contracts
Performance & Professionalism
Culture & Leadership
“I Agree To Overcome Problems For Perfect Harmony”
I - Innovation
A - Adaptability & Learning
T - Teamwork
O - Open Communications & Transparency
P - Performance
F - Family & Community
P - Professionalism
H - Health, Safety & Environment
GASCO Cultural Attributes
Challenge of Leading Change Abu Dhabi University May 2007
GASCO’s Cultural Attributes
Challenge of Leading Change Abu Dhabi University May 2007
GASCO 21 Core Team
Challenge of Leading Change Abu Dhabi University May 2007
The Bigger Team
Challenge of Leading Change Abu Dhabi University May 2007
The Team At Work & Play
Challenge of Leading Change Abu Dhabi University May 2007
GM
GASCO GASCO 21
GM / AGMs
AGMO AGMA
DM
DepartmentHead
SectionHead
Change Agent’sCompany Position
DM
DepartmentHead
SectionHead
DM
ChangeAgent
G21 CoreTeam
Company Change Agents
Challenge of Leading Change Abu Dhabi University May 2007
Toolkit for Division Managers
1. Demonstrate G21 Ownership Sponsor & direct the overall focus of
G21 initiatives
Lead the implementation of new initiatives & monitor their progress
Include G21 activities as agenda points in all regular meetings
Provide adequate money, time & resources for G21 activities
Recognize staff who demonstrate extra efforts in applying GASCO’s cultural attributes
Explore ways to bring resistors on board
2. G21 Communication Plan During meetings & get-togethers
introduce Change Agents
Provide employees feedback on their concerns & suggestions
Ensure communications takes place between Core Team & Change Agents
Publicize G21 feedback from Core Team HQ regularly
Inform staff when their suggestions or ideas will not be implemented
3. Getting The Most From the Division Change Agents
Review and discuss the Change Agent’s role description with them
Hold regular (at least monthly) meetings with them & focus area custodians to review and update Division G21 Plan
Accompany Change Agents on regular visits to division employees
Provide status & authority to Change Agents so they can fulfill their duties
Eliminate & replace inactive Agents
Challenge of Leading Change Abu Dhabi University May 2007
Assist the DM introduce changes in the workplace & provide feedback on concerns of division personnel
Brief employees on the latest news, achievements and progress of the G21 Journey
Propose, introduce, support & facilitate changes within the Division
Assist in the development of Division G21 Plan, and then monitor plan progress to Core Team
Coordinate Division’s G21 activities
Conduct Q&A sessions, opinion polls and brief division personnel on the results
Support line managers whose work is affected by changes to help them overcome resistance
Promote & brief division personnel on GASCO’s 8 cultural attributes
Involve employees in brainstorming sessions
Present employee’s suggestions to management
Participate & provide input at G21 Workshops
Conduct regular meetings with the G21 Core Team
Establish and maintain good working relationships with other G21 Team members
Change Agents Responsibilities
Challenge of Leading Change Abu Dhabi University May 2007
Involvement Awareness Impact Exposure Training Dynamic & exciting activities Networking Performance appraisal credit Recognition Resume experience Fulfillment Fun!
Change Agents Benefits
Challenge of Leading Change Abu Dhabi University May 2007
GASCO Vision
Developing Leaders
Challenge of Leading Change Abu Dhabi University May 2007
Site & HQ Feedback
CultureAttributes
LeadershipResearch
ManagementProcesses
Structural Levels
Roles and Responsibilities
Competencies
Proficiency
Vision & StrategicObjectives
Leadership Program Foundation
Challenge of Leading Change Abu Dhabi University May 2007
Leadership Curriculum
• Leadership • Building Effective
Teams• Coaching &
Counselling• Time Management• Conducting
Performance Feedback
• Communication Skills• HSE Work
Instructions and Corrective Actions
Supervisors
Section Heads
Superintendents/ Department Heads
Plant/DivisionManagers
ExecutivesGM/ AGM
• Basic Supervision• Planning & Organizing
Work• Delegation• Managing Diversity• Competency Mgmt• HSE Performance
Monitoring
• Building Stakeholder Relationship
• Emotional Intelligence• Leading Change• Financial Mgmt for Non-Financial staff• Motivation and
Management• Running Effective
Meetings• HSE Risk Evaluation &
Management
• Driving Performance Management
• Budgeting and Cost Control
• Effective Presentation
• Management Decision Making
• Designing Company Change Efforts
• HSE Mgmt System Implementation
• External Leadership Forums
• General Management Training
• Industry Analysis• Strategic Leadership• Governance• HSE Leadership and
Commitment
Building Current & Future Leaders within GASCO
Challenge of Leading Change Abu Dhabi University May 2007
Leadership Delivery Method
This series of workshops are designed to introduce current and future leaders to three fundamental skills that will make their jobs easier! The sessions focus on becoming more effective by managing your time, running effective meetings and finally making effective presentations.
Management Decision Making - Tuesday, 12 April: 0800-0930 This program helps improve the delegate’s decision making by exposing them to problems solving techniques and approaches which they can use effectively in the work place. The program includes an examination of a “right first time” total quality culture and what additional benefits it can deliver for GASCO. Learning themes: Using and understanding Ishikawa’a Fish-bone root cause approach, what is it and how it works Pareto’s 80/20 rule and how this can be used to improve problem analysis Critical path analysis and effective problem solving A total quality approach to problem solving Inculcating a “right first time” culture in your department
Motivation & Management - Tuesday, 12 April: 1000-1200 Understanding new approaches to motivation and management of people vs. using more traditional methods. What are the advantages & disadvantages and what are the implications for my management style? Learning Themes: The theories of motivation and what they mean for my management style How the motivation of people in the new business environment is changing What people want v what you think they want, some survey results Motivating people and GASCO, the implications
Effective Communications - Tuesday, 12 April: 1315-1500 This program deals with the whole issue of effective communication, how to ensure you are understood and how to ensure you understand others. One to one vs. group discussions, how to understand and then be understood? Learning issues: What is effective communication? Debate v dialogue, open v closed How to ensure you are understood? The concept of active listening and what it means in practice Getting people to want to listen to you Dealing with the sensitive issues
Monthly occurrence
Multi-day site event
3 Programs per day
1 ½ to 2 hours
Agenda distributed
prior to the program
All staff encouraged
to attend
Challenge of Leading Change Abu Dhabi University May 2007
Leadership Participation
3333 people attended Leadership Curriculum in 2004
& 2005
Challenge of Leading Change Abu Dhabi University May 2007
Participants by Location
LOCATION 2004 2005 TOTAL
HQ 511 475 986
ASAB 110 282 392
BUHASA 113 242 355
HABSHAN & BAB
335 642 977
PIPELINES 72 299 371
RUWAIS 74 178 252
TOTAL 1215 2118 3333
Challenge of Leading Change Abu Dhabi University May 2007
GASCO Vision
Workforce Developmen
t
Challenge of Leading Change Abu Dhabi University May 2007
Jebal Ali
Customer Service Journey
Ruwais
Asab
Buhasa
Abu Dhabi
Habshan/Bab
1) MIND LEAP
We cross over to better performance through a change in
thinking
April & May314 people
2) UNDERSTAND OTHERS
We solve many problems by understanding other
people
July & August367 people
3) LISTEN UP
We improve communication when we
develop our listening skills
November & December391 people
4) PRO-ACT
We take action to help our
colleaguesFebruary & March329 people
Challenge of Leading Change Abu Dhabi University May 2007
Interactive Workshops
1401 people attended Customer Service Training
in 2004
Challenge of Leading Change Abu Dhabi University May 2007
Commercial Awareness
Challenge of Leading Change Abu Dhabi University May 2007
Participants by Location
1st Round
2nd Round
3rd Round
4th Round
HQ 82 91 55 29
ASAB 38 44 30 16
BUHASA 36 49 24 25
HABSHAN & BAB 118 102 103 54
PIPELINES 26 12 - -
RUWAIS 18 25 15 20
TOTAL 318 323 227 144
Challenge of Leading Change Abu Dhabi University May 2007
Do You Know GASCO?
1012 people attended Commercial Awareness in
2005 & 2006
Challenge of Leading Change Abu Dhabi University May 2007
GASCO Vision
Annual Survey
Program
Challenge of Leading Change Abu Dhabi University May 2007
Annual Survey conducted for 3 years
Participation has increased
Positive responses show steady increase
Survey hosted on Company Intranet
Response period allowed 1 month
Demographic data collected for last 2 years
Survey Program
Challenge of Leading Change Abu Dhabi University May 2007
2003 Survey Details
1. Survey consisted of 70 questions
2. Responses were anonymous to increase participation
3. Employee demographic data initially required but became optional after receiving employee enquiries
4. Survey was distributed on 8 Jan 2003
5. Completed surveys were due by 21 Jan 2003
6. Completion date extended to 22 Jan 2003
7. 1112 completed surveys were returned in time
8. Surveys that arrived after the cut-off date were not included in the analysis
9. 421 comments & suggestions were collected
Challenge of Leading Change Abu Dhabi University May 2007
1. 1523 surveys, 411 more than 2003 (37% increase)
2. Three (36 question) survey instruments used
3. Demographic data was collected
4. 341 comments & suggestions gathered
5. Overall ratings: HSE: 76% (down 3% but last year only had 3
questions) Teamwork: 67% (up 5%) Innovation: 66% (up 3%) Professionalism: 65% (up 4%) Open Communications: 65% (up 4%) Family & Community: 63% (up 10%) Adaptability & Learning: 58% (up 9%) Performance: 57% (up 7%)
2004 Survey Details
Challenge of Leading Change Abu Dhabi University May 2007
1. 1466 surveys, 57 less than 2004 (4% decrease)
2. Three (36 question) survey instruments used
3. Demographic data was collected 2nd year in a row
4. 98% of the responses collected on-line
5. 255 comments & suggestions gathered
6. Overall ratings: HSE: 80% (up 3%) Teamwork: 70% (up 3%) Innovation: 67% (up 1%) Professionalism: 69% (up 4%) Open Communications: 70% (up 5%) Family & Community: 65% (up 2%) Adaptability & Learning: 57% (down 1%) Performance: 57% (no change)
2005 Survey Details
Challenge of Leading Change Abu Dhabi University May 2007
2004 to 2005 Comparison
2003 2004 2005 Change Since Last Year
Innovation 63% 66% 67% +1%
Adaptability & Learning 49% 58% 57% -1%
Teamwork 62% 67% 70% +3%
Open Communications 61% 65% 70% +5%
Performance 50% 57% 57% No change
Family & Community 53% 63% 65% +2%
Professionalism 61% 65% 69% +4%
HSE 76% 77% 80% +3%
Challenge of Leading Change Abu Dhabi University May 2007
KPI Achievement
85%
109%
118%
0%
20%
40%
60%
80%
100%
120%
2002
2003
2004
Three Year Survey History
Challenge of Leading Change Abu Dhabi University May 2007
Demographics - Participants
Challenge of Leading Change Abu Dhabi University May 2007
2006 General Category Ratings
Challenge of Leading Change Abu Dhabi University May 2007
GASCO Vision
Tools for Supporting
Change
Challenge of Leading Change Abu Dhabi University May 2007
Continual Communications
Challenge of Leading Change Abu Dhabi University May 2007
Monitoring the ChangeID Task Name
1 GASCO 21 Team2 Prepare & Distribute G21 Promotional Items
6 Introduce Posters
15 Team Training - 3 Day Workshop
19 Annual Survey
27 Enhance GASCO 21 Intranet Site
28 Email introduction
29 Initial layout meetings
30 Setup appropriate links
31 Launch new site
32 Produce Monthly Status Report
43
44 Business Process Reviews45 Conduct Interviews with each BPR Division
46 Verify the BPRs with Concerned Parties
47 Support BPR Coordination
48
49 G21 Change Agent Coordination50 Gather Monthly Division Achievements
60
61 Ideas, Suggestions & Quick-Wins62 Identify Initial Quick-Win Opportunities
63 Prioritize Initial Proposals
64 Present Ideas & Suggestions to MGMT Team
65 Prioritize top 15
66 Send to GM for review / approval
67 Monitor Implementation of Prioritized Quick-Wins
68 Publicize Quick-Wins
Tom
Team
Team,IT Dept
Team
Tom,Ahmed
Ahmed
Ahmed
GASCO 21 Team
Tom, Abdullah
Abdullah
GM / Tom / Abdullah
G21 Team / Abdullah
Team
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter
Challenge of Leading Change Abu Dhabi University May 2007
G21 Poster Competition
Challenge of Leading Change Abu Dhabi University May 2007
Align Work Efforts with Strategic Objectives & KPIs
Improve Business Processes & Procedures
Improve Efficiency Between Divisions & Departments
Manage, Monitor & Measure Performance
Improve Leadership & Teamwork Capabilities
Enhance Corporate Culture
Encourage Innovation
Promote Teamwork
Increase Transparency / Openness
Transform from “Reactive” to “Proactive” Company
Pride in Working for a “Great Company”
Benefits of GASCO 21
Challenge of Leading Change Abu Dhabi University May 2007
Finally -- Lessons Learned
1. Underestimated Scope & Magnitude of the Change
2. Determining Manpower Needs is Critical
3. Change Efforts Require Dedicated Resources
4. Overcoming Resistance-to-Change Takes Time
5. Management Support Must Be Visible at all Times
6. Support of Both Managers & Employees is Required
7. Everyone Must “Walk-the-Talk”
Challenge of Leading Change Abu Dhabi University May 2007
“The crucial lesson is that management is the message. Everything managers say – or don’t say – delivers a message. Too many managers assume that communications is a staff function, something that human resources or public relations is to take care of. In fact, communications must be priority of every manager at every level in the company. If there is one single rule of communications for leaders, it is this: when you are so sick of talking about something that you can hardly stand it, your message is finally starting to get through!”
From “Managing Change” by J. D. DuckHarvard Business Review on Change
One Last Thought
Challenge of Leading Change Abu Dhabi University May 2007
AdditionalInformation
Challenge of Leading Change Abu Dhabi University May 2007
The Society for Human Resource Management (SHRM) is the world's largest association devoted to human resource management. Representing more than 200,000 individual members, the Society's mission is to serve the needs of HR professionals by providing the most essential and comprehensive resources available.
http://www.shrm.org
What is SHRM
Challenge of Leading Change Abu Dhabi University May 2007
ASTD (American Society for Training & Development) is the world's largest association dedicated to workplace learning and performance professionals. ASTD's 70,000 members and associates come from more than 100 countries and thousands of organizations--multinational corporations, medium-sized and small businesses, government, academia, consulting firms, and product and service suppliers.
What is ASTD?
http://www.astd.org
Challenge of Leading Change Abu Dhabi University May 2007
The Human Capital Institute (HCI) is a professional organization dedicated to leadership in the business science of Talent Management. Members are Human Capital professionals & executive leaders who share the conviction that TALENT is the most powerful competitive lever in a knowledge economy.
What is HCI?
http://www.humancapitalinstitute.org
Challenge of Leading Change Abu Dhabi University May 2007
Education is not the filling of a pail, but the lighting of a fire…
William Butler Yeats
William Butler Yeats (1865 –1939) was an Irish poet, dramatist and public figure. Yeats was awarded the Nobel Prize for literature in 1923
for poetry.
Challenge of Leading Change Abu Dhabi University May 2007
Questions ?