1. TRANSFORMATIONALCHANGEMANAGEMENT

2. 2 views of transformational2 change Organizational Personal A process of A process of adjustment implementing changes to changed across organizations conditions, adoption of Requires: new behaviors Clear strategic Requires: imperatives Clarity of why change Top leadership support, needs to happen Project management Understanding of structure, personal attitude to Decisions on change structural, personnel Commitment to personal and cultural issues behavioral roadmap com-towers GmbH confidential

3. Organizational Transformations3 The key to organizational transformation is a thorough and consistent process, which recognizes both the Change Transformation organizational and personal aspects of change management com-towers GmbH confidential

4. Dependencies and success4 factors Top Manageme nt support Resource Understanding and the current manage as culture and a key business drivers project Behavioral Active Change Communic Roadmap ations com-towers GmbH confidential

5. Phases of Change Process 1 Organizational Emphasis5 com-towers GmbH confidential

6. Timeline Phase 16 Defining Transformation Event 1 Master Plan Day 1 + 90 As Is Day 1 + 60 Diagnostic Days 20 - 50 Planning Day 1+20 Realization Day1 com-towers GmbH confidential

7. 1. Change Realization Day 17 Triggered by an external event: Reorganization Merger or acquisition New management New product Market shift (threat or opportunity) Realization by management that a new direction is needed com-towers GmbH confidential

8. 2. Planning8 Marshaling of views and opinions Seeking internal and external partners Brainstorming the situation, visioning of outcomes Setting up a change team and structures: SteeringCommittee and work groups Master Plan high-level adoption Starting to discuss the need for change com-towers GmbH confidential

9. 3. As Is diagnostics 9 Launch Surveys Focus Groups Feedback Analysis Final and Sessions Report interviewsAnalyze capabilities Conduct a Standard and Conduct focus Validation of results Process andneeded to achieve diagnostic survey customized Reports groups to test with senior analyze results.strategic goals. Conduct interviews organizational management with detailed with Senior culture and Compare to analysis:Agree Measurement Conduct external Benchmark data. Executives: capability levels Cross comparisonmatrix customer analysis Company history (the view form Design a gap againstCustomize analysis and Strategy outside the measurement Matrixquestionnaires and development needsworkshops to Operations organization Benchmarksorganizational Leadership Propose suitable comparisonsmeasurement matrix Aspirations organizational changes Organization designMake a choice of Expectations and developmentdiagnostic method: needs proposalssurveys and/orinterviews com-towers GmbH confidential

10. 4. Transformation Master Plan10 Control of Culture Change through a Detailed Master Plan Establishment of PMO (Project Management Office) Work streams identified with leaders appointed Scoping of work stream workload with milestones and deliverables identified Establishment of content and organization committees for the Defining Event com-towers GmbH confidential

11. 5. Defining Event111 A catalyzing event to indicate the before and after boundary Focuses attention of stakeholders on the specifics of change and engages them in the transformation process Typical topics: New vision and values New strategy and roadmap for implementation New culture and behaviors Typically involves top 10% of the organization, with follow up communication events for next level of management com-towers GmbH confidential

12. Deliverables of the Defining12 Event Defining Defining Event is a tool to swing the Event pendulum in the direction of desired establishes a change clear boundary Draws a clear line between the past between the and the future past and future. It is Communicates the transformation now clear to roadmap to a wide audience us that the management Articulates what needs to change and is committed how it will happen to make this happen Commits top management to a time- bounded program Participant feedback com-towers GmbH confidential

13. Phases of Change Process Phase13 2 Personal Emphasis com-towers GmbH confidential

14. Timeline Phase 2 (Personal14 Aspects) Ensuring continuity ongoing Culture Change Workshops Defining Event 2 Days 121 - 170 Day 1+120 Change Development Days 90 - 120 com-towers GmbH confidential

15. 6. Change Development15 Intense decision-making period between defining events 1 and 2 Typical tasks: New structure confirmation and appointments to new roles Developing a new behavioral model how the new culture will look, what stakeholders will stop and start doing for the transformation to occur Preparing for the roll-out of cultural change workshops to install the new behavior model Informative and frequent communications maintaining the momentum com-towers GmbH confidential

16. 7. Defining Event 2 the New16 Culture Fulfillment of commitments given at DE1 - structural changes and new process rollouts Launching the new culture and behaviors Management driving change through the organization empowering the next level of leaders Culture change workshop for the top management initiating the rollout across management and key customer-facing functions (e.g. sales, logistics) com-towers GmbH confidential

17. 8. Culture Change Workshops17 Explaining the process of personal change: Organizations dont change people do Chaotic processes have rules (e.g. butterfly effect small changes at the start of the journey can have huge consequences) Behavior is habit, and can be changed Participants develop a commitment roadmap, using a common template clear public statements on what they will stop and start doing com-towers GmbH confidential

18. 9. Ensuring continuity18 Transformation process is supported by a number of interventions, the objectives of which are: Support of the new behavioral model and the common language of the organization: Publications supporting personal behavioral commitments (follow-up of culture change forums) Monitoring of behavioral commitments as part of employee development reviews Development of change management skills of middle managers though training and corporate project assignments Communicating success stories Symbols and recognition events Change monitoring and course corrections com-towers GmbH confidential

19. TRANSFORMATIONALCHANGEMANAGEMENTAdam FillerNovember 2011