The Technology of Change

Contents
1. Technology of Change: Example
2. Technology of Change : Background
3. Technology of Change : The Process
4. Technology of Change : Behaviour
5. Technology of Change : Balanced Scorecard
6. Technology of Change : Four Stages
7. Technology of Change : The Journey
1
Ice Breaker - Mind Game
Please mentally select a card and concentrate on it.

Do not tell anybody what it is.
2
Ice Breaker - Mind Game
I have selected your card a removed it from the pile –

correct?
Surprised?
3
Contents
4
Technology of Change
Technology of Change
evolved as a convergence between Engineering & Psychology
5
Evolution of Technology of Change
Engineers Psychologists
Focus Processes, systems, People
structure
Business Practices BPR, TQM, ISO 9000, Human resources, OD
Quality
Starting Point Business issues or Personal change, employee
opportunities resistance (or potential for
resistance)
Measure of Success Business performance, Job satisfaction, turnover,
financial and statistical productivity loss
metrics
Perspective on Change “Shoot the stragglers, “Help each individual
carry the wounded.” make sense of what the
change means to him.”
Technology of Change is a simple solution

to a complex problem of changing people
6
Technology of Change vis-à-vis
Business Improvement Techniques
Six Sigm
a
TPM
BPR
R P E M
E T B
Technology of Change DRIVES Business Process Improvement

An essential competency to overlay and integrate with these methods
7
Contents
8
Technology of Change Process, Level 1
Management Reviews
Phase 1 Phase 2 – Marketing Focus Process Phase 3

Preliminary Survey Test Market Implementation Roll-Out
Marketing Analysis
Process Process Design
Assess Business Framework Architecture And Development Training Auditing
Define:
Process Pilot
 What works Implementation Roll-Out
and Improvement
 What’s broken Initial Training
Ensure achievement of
 What’s missing Define process based on proven competitive advantage
best practices
Identify source of Measure profit improvement
differentiation Leverage organisation staff to against target
build acceptance
Identify organisational Scale up new process
framework development Provide facilitation and training
requirements Establish continuous
Pilot process to test and gain improvement
Prepare detailed acceptance infrastructure
implementation plan
Manage ramp-up
Review profit improvement
Set financial targets against target
9
Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Screening & System Planning System Design System System System Delivery
Other related
Business Analysis Implementation Verification Handover
processes: ■ Feature ■ Approach ■ Tendering ■ First Customer ■ General
Control Fixed allowed Shipment Availability
1Develop Feasibility Study 2 Develop Business Plan Update Bus Plan Update Bus Plan Update Bus Plan

Roadmap
Process
3 Define Market 7 Define Sales 18 Customer
Requirements Logistics & Pricing Prepare and Conduct Launch
Process
Technology A Develop Techno-Economic Model

Management Capability
Process
4 Define Product/System Specification 19 Conduct Customer Trials *)
Mfg
System 5 Define
Program Plan
Process
6 Risk Assessment &13 Sourcing and 24 Transfer to Maintenance *)

Management Subcontracting
Marketing
Process Develop Site Assembly
B and Testing Capabilities
C Site Planning and Prototyping D *) Deliver to First

Customer
16 Specify and Prepare for 23 Perform System

System Testing/Verification
Technical Business
view view 17 Develop and Produce Customer Documentation
System Program
Phase 0 Team System Program Management
formed Management Team
Team 21 Customer Service Capability Development and Transfer move on
formed
P0 P1 P2 P3 P4 P5
Review Review Review Review Review Review
*) These steps are identified but not yet
described for systems
10
P-1 P0 P0.5 P1 P2 P3 P4
Feasibility Program Target Program Freeze Delivery Start Volume Deliveries &
study start Initiation Confirmation Commitment Program Termination
1. Define 9. Update System Business 11. Prepare 19. Prepare 24. Prepare
Business Case Plan & Prepare E1 Review E3-Review E4-Review E5-Review
Prepare E0 review
Continuous subcontractor / 5. Select Subcontractors/Partners 12. Manage Partners and Subcontractors
partner feasibility study
2. Describe
6. Write System 10. Finalise
Planning Features System 13. Update System Specification
& Road Reqts Spec Specification
mapping3. Define Required 14. Create System Level Customer 20. Finalise Documentation Customer
Process Product Programs 7. Define Documentation Process
Reqts to
Prod. Programs 15. Service Development, Selling 21.Deliver & Care 25. Service
8. Complete System Program and Internal Training Capability Capability. Upgrade SOPs Verification Maintena-
4. Draft System Planning: nce
Program Plan - R&D Plan 16. Create Marketing Capability 22. Marketing Competence 26. Launch process
- Marketing/Piloting Release Transfer, Launch execution execution
Mgmt Plan
- CS Capability Plan 17. System Integration 27. Prepare for Manage Manage
- Partner Plans Testing phase
- Resourcing Plan
- Product Operations Plan 18. System verification test- & upgrade 23. System Verification 28. System
- Security Plan Planning & Build Laboratory Pilot Delivery
- Compatibility Plan
- Quality Plan
- System Program Organisation
System Process - System Program Schedule 29. Pilot Customer
- System Verification plan Acceptance
- System Documentation plan
Create Product Documentation
Product Feasibility Study
Product Implementation and Testing
Product Specification & Program Planning CE and Type Approval Testing
Product FeatureFunctional
Product Process Integration Testing
Note: This chart show s only the Product
Process Steps strongly linked to the System Finalise Pilot Delivery plan Product Pilot Delivery
Process E1 E4 E5
11
Project Management Process
Full Project Team Approval Committee
Core Team CEO VP GM GM
Phase Review Process

Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Concept Plan/spec Develop Test Release Rollout
Team 2
Team 1
Manufacturing Marketing
Core Team Leader

Customer Quality Team 3
Team
Service Facilitator
7
HR Sales
IT
Team Team 4
6
Team 5
Core Team Structured development process
Development – Tools and Techniques
12
Application of Technology to Rallis
Discounts Promotion Inventory Transport Sales Mix Sales Credit Risky

Costs Levels Costs Volume Days Debts
-15% -15% -10% -10% +2% +5% -10% -15%
Marketing Depot Proactive Credit

Information Management Selling Control
System System System System
Regional Steering Committees/Corporate Steering Committees
Balanced Scorecards
13
Project Management Control System
FORECAST PLAN CONTROL REPORT

MONTHLY
The Focus Board Project

Process Reviews Reports
Action
Log
Project Steering Weekly Steering

Schedule Committe Committee Report
e Action
WEEKLY
Log
Area
Schedules Weekly MAT
MAT Report
Weekly Action
To Do Log
List
DAILY
Daily Daily Action

Planner Reviews Log
14
Contents
15
Organizational Life!
"The mass of men lead lives of quiet desperation and go

to the grave with the song still in them."
Thoreau
16
Barriers to Behaviour Change
A
bird
in the
the hand
17
Behaviour Change
What is the definition of madness?
“ Doing what you have always done and

thinking somehow magically performance
will improve”
18
Internal Business Framework
Processes
Activities (Technical
& Tactical)
Systems
Information
(Technical)
Behavioural Results
Change
Structures
People (Tactical)
Education
Training (Tactical)
19
Behaviour Change
Knowledge
(what to, why to)
Habits
Skill Desire
(how to) (want to)
Habits are patterns of behaviour composed of three

overlapping components:
knowledge, desire, skill.
20
Balancing Belief and Commitment
Compliance Do it
High But be aware of other
But will it stick?
pitfalls
Intellectual
agreement
Forget it Lots of action

Reformulate what, how But does it make
Low and why sense?
Low Emotional High

belief
21
Managing Resistance to Change
Combat corporate resistance to change

1. Defining areas of responsibility clearly
2. Shift in the approach of the management to change
– Make change a “ why” problem
3. Define role for top client
Combat employee resistance to change
1. Involve client managers from the outset
2. Addressing roadblocks to performance improvement
3. Mapping the employee mindset vis-à-vis change
Build change competency into the organization
1. Learning, training and skills development
22
Behaviour Change Strategies
A mix and match of four strategies.

Rational: People follow self-interest
– Change based on the communication & incentives.
Normative: People adhere to cultural norms and values.
– Change based on reinterpreting existing norms &
values, & developing commitments to new ones.
Coercive: People do what they can be made to do.
– Change based on the exercise of authority and the
imposition of sanctions.
Adaptive: People adapt readily to new circumstances.
– Change based on building new organization and
transferring people from old to new .
23
Contents
24
Balanced Scorecard
Financial
‘To succeed financially,
how should we appear
to our shareholders?’
KRA’s, KRI’s, Targets
Customer Internal Business Process
‘To satisfy our vision, ‘To satisfy our shareholders
Vision
how should we appear to and customers, what business
and
our customers?’ processes must we excel at?’
Strategy
KRA’s, KRI’s, Targets KRA’s, KRI’s, Targets
‘To achieve our vision, how

will we sustain our ability
to change and improve?’
KRA’s, KRI’s, Targets Learning & Growth
Cause-and- Effect Relationships – KPI Roll Down
Financial ROCE
Customer
Customer
Loyalty
On-Time
Delivery
Internal/Business Process Process Process

Quality Cycle Time
Learning and Growth Employee Skills

Contents
27
Ensuring Cultural Change
…No shortcuts possible...

Where Most Things Go Wrong!
The lack of awareness and understanding that a

successful change process has to go through ‘four
changes in mindset’ is a common reason why many
strategic change programmes fail…
We also make false assumptions about peoples ability

to adhere to new ways of working, and to manage and
accept change.
29
The Four States of Mind!
Incompetent Competent
Conscious
Support Coach
Unconscious Direct Delegate
30
Stage One: Mechanical Compliance
• People understand that

they are “being told” to do
something new.
• God knows why because
they don’t see the use of
it !!
• This is normally viewed
as extra non-value added
responsibility.
• If you stop checking, they
will stop trying.
Stage Two: Understanding
• People start realising why the

data recorded in the system
might be of use to them and
the business in the future.
• There is some light at the

? end of the tunnel.
• You still need to keep them
on close track however.
Stage Three: Usage of the System
Recording this new or extra data and

working in a new way has now become
a fact of life. They now start using
(read : analysing) the scorecards.
Meetings are held to review the data
with the following outcome :
• Problems get identified and
solved.
• Action points are assigned to
persons including time targets.
• Performance Improves.
• The wheel starts turning!
Stage Four: Culture Change
People don’t think about the

newly installed system
anymore.
It is THEIR system now
They fully optimise the
usage of data gathered at all
levels. They use the
Scorecards to drive
improvements in business
performance. They improve
details of the systems as per
the requirements.
Managing the Chaos!
• Improvements through new approaches do not happen over night.

• It take time and there will be confusion and doubt.
• Eventually as the system usage improves the results will improve.
Implementation
Compliance
And Usage
Installation
Direct Coach Support Delegate
35
The Four States of Mind!
‘Minds-Path Matrix’
Incompetent Competent
Conscious Understanding Usage
Unconscious Compliance Culture
36
The Key to Success!
The secret to successful change management is to be

able to assess and measure your progress through the
‘minds path’.
“ If you can’t measure it, you can’t manage it.”
The four mindsets must

be measured by
auditing. Auditing is a
quantitative measure of
a qualitative thing!
37
Measuring the Four Mindsets
“There are three sides to any argument.

Yours, mine and the truth.”
Audit questionnaires are developed to assess the
mindset levels using a structured approach:
2. Closed ended questions for compliance.
3. Open ended questions for understanding.
4. Demonstrative questions for usage.
38
Measuring the Four Mindsets
The audit questionnaire answers get converted into a

scoring scheme…
• 0 for wrong or not done.
• 1 for partially right or partly done.
• 3 for correct or demonstrated.
The percentages of each system performance category
are plotted and the target is 100%.
39
The Transition From Compliance To Usage
Effective Meetings
Structure and set up
Information Action solving root causes
Individuals responsible
Transparency Confrontation
Systems Positive Confrontation
To provide accountability
To change behaviour
Procedures
Problem Analysis
Accountability Root Cause, not symptoms
5 Why analysis
Determination, not deferral
Compliance Usage/Culture
40
Contents
41
The Mind’s Path To Success
Success
Hope
Pain
Problem Solution Solution Culture

Definition Development Implementation Change
42
Managing Expectations
Ensure that everybody involved expects things to get off

to a slow start!
Results!
Usage
System
Performance Understanding
Mechanical
Compliance
Time
43
Managing Expectations: Chaos Theory
Be prepared for the new systems to initially be perceived as

additional work, it takes time for the existing fire-fighting to
be replaced by the fire-prevention.
Process Improvement
Time
Consumed
Fire Fighting
Extent Of Chaos
Today Future
44
Managing Expectations: How Long?
• A key question is how long does it take to get the results?

• Provided we have developed the correct systems:
“System utilization is directly proportional to business performance.”
• The speed with which the management requires the systems to be
utilized is intimately related to the speed of results arrival.
• If the results are low, the system utilization will probably be low.
• Dr Maxwell Maltz book “Psycho Cybernetics” says that it takes 21
days to change a habit.
• Therefore on daily reviews it is at least one month before we get
significant results.
• On weekly reviews that implies 21 weeks, 5 months.
• So the more frequently we review, the more frequently we audit, the
faster the results.
45
Managing Expectations: How Long?
Another model for how long it takes is the retention curve. It is

based on the following:
• After 1 hour we remember 80% of the facts.
• After 3 hours we remember 40% of the facts.
• After 3 days we remember 15% of the facts.
• After 3 months we remember 0.5% of the facts.
If you do not review then the learning is lost the habit pattern is
broken.
Review! Audit! Review!! Audit!! Review!!! Audit!!!
Culture
Usage
Understanding
Compliance
46
Implementation Pain and Gain – What People Say
We’ve only
just scratched
the surface,
100%+ Things are a
there’s loads
lot clearer
than before more to be
The salesman done
100% won’t We’ve got a
good team
co-operate
here
GAIN We haven’t
We’re lucky,
we seem to be Company didn’t
The problem This is very do much, we
got time to having fewer
is with the interesting did all the
do our jobs problems
management work really
50% There’s too We never There’s
much used to be nothing new
paperwork I’ll do it if I that bad The project was a
here really
get time waste of time,
everything they
25% You can’t There are did should have been
treat people more problems done ages ago
like robots than before
Compliance Understanding Usage Culture
47
Soft Indicators of Success
• Mr. Hardest Critic has discovered a new role as an

Auditor. He is now busy critiquing the new
systems/ processes and finding ways of improving
compliance.
• Popular slogan “ In God we trust, everyone else
must bring data”
• Consultants start sleeping through meetings
• Supervisors are as excited as school kids about
their scorecards
• Change teams know more about scorecards,
processes, systems, leadership, savings etc. than
the consultants
• Everybody wonders why did we need a consultant
in the first place!!!
48

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Contents

1. Technology of Change: Example

2. Technology of Change : Background

3. Technology of Change : The Process

4. Technology of Change : Behaviour

5. Technology of Change : Balanced Scorecard

6. Technology of Change : Four Stages

7. Technology of Change : The Journey

Please mentally select a card and concentrate on it.

I have selected your card a removed it from the pile –

1. Technology of Change: Example

2. Technology of Change : Background

3. Technology of Change : The Process

4. Technology of Change : Behaviour

5. Technology of Change : Balanced Scorecard

6. Technology of Change : Four Stages

7. Technology of Change : The Journey

Technology of Change is a simple solution

Technology of Change DRIVES Business Process Improvement

1. Technology of Change: Example

2. Technology of Change : Background

3. Technology of Change : The Process

4. Technology of Change : Behaviour

5. Technology of Change : Balanced Scorecard

6. Technology of Change : Four Stages

7. Technology of Change : The Journey

Phase 1 Phase 2 – Marketing Focus Process Phase 3

1Develop Feasibility Study 2 Develop Business Plan Update Bus Plan Update Bus Plan Update Bus Plan

Technology A Develop Techno-Economic Model

6 Risk Assessment &13 Sourcing and 24 Transfer to Maintenance *)

C Site Planning and Prototyping D *) Deliver to First

16 Specify and Prepare for 23 Perform System

Full Project Team Approval Committee

Core Team CEO VP GM GM

Phase Review Process

Core Team Leader

Core Team Structured development process

Development – Tools and Techniques

Discounts Promotion Inventory Transport Sales Mix Sales Credit Risky

Marketing Depot Proactive Credit

Regional Steering Committees/Corporate Steering Committees

FORECAST PLAN CONTROL REPORT

The Focus Board Project

Project Steering Weekly Steering

Daily Daily Action

1. Technology of Change: Example

2. Technology of Change : Background

3. Technology of Change : The Process

4. Technology of Change : Behaviour

5. Technology of Change : Balanced Scorecard

6. Technology of Change : Four Stages

7. Technology of Change : The Journey

"The mass of men lead lives of quiet desperation and go

What is the definition of madness?

“ Doing what you have always done and

Habits are patterns of behaviour composed of three

Forget it Lots of action

Low Emotional High

Combat corporate resistance to change

A mix and match of four strategies.

1. Technology of Change: Example

2. Technology of Change : Background

3. Technology of Change : The Process

4. Technology of Change : Behaviour