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International Society for Performance Improvement

Conference

Wednesday, April 12 2000

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The real challenge of change is not just to come up with a

brilliant idea - i
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Organizations worldwide are confronting more

turbulent markets, more  i  shareholders,
and more „
  customers.

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Your level of success is determined by your ability to deliberately
alter business practices in a timely and cost effective manner.

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All Organizations now say routinely,

µpeople are our greatest asset.¶
Yet few practice what they preach,
let alone truly believe it.´
- Peter Drucker
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Change is hard, personally

We all go through it
Change is never sequential
Some of us manage our transitions better than others
Change impacts different people differently

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Who will I What

report to? decisions do I
They are of a very personal,
ow will my job have to individual nature.
change? make?

What¶s During times of change, employees focus:

in it for ow will my
1st, personal implications of the change
me?
6 performance
be
2nd, organizational implications
measured?
Who
will I
work What
with? new skills
Employees may or may not ask these
do I
need? questions out loud, but more often than
When will
not they are thinking them.
the
Why
change The process for answering the questions
should I
impact
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me?
ow will my
6 Will this change be
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effected? last change? 
 


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Desired changes are not realized

Change occurs only after great
expense, both financial and human

uture change efforts are compromised
Destroyed shareholder value
Uncontrolled loss of knowledgeable and
valuable employees
Prolonged, reduced productivity
ost opportunity in the marketplace
Poor customer perceptions or worse
It is a terrible thing to look over your shoulder when you are
trying to lead. . . And find no one there.´ Customer Attrition
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   bridges the gap´
between the technical and the human
sides of change. It prepares the
organization to accept and embrace
change.

   i  can lead to:

 igher morale
 Increased productivity
© Christof Spieler
 Ownership´ of new processes and
systems
The most daunting problems with technology (changes)  Accepted roles and responsibilities
have nothing to do with technology. . . The biggest problem
is the lack of widespread readiness to adopt solutions. The  Increased employee knowledge
number one error made is failure to invest adequately in
 Reduced re-training
change management.´
-- Michael ammer  Reduced post change´ support
 Realized efficiencies and objectives
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Integration of front and back office

± market --> place orders --> order fulfillment -->
manufacturing --> logistics of delivery
Phenomenal growth of CRM market
± $1.9B (1998) to $11B (200-) source: International Data Corp
Mergers/Acquisitions
± Baun -- Aurum
± PeopleSoft -- Vantive
± J.D. Edwards -- Siebel
eed for  but also to get it right

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Baan -- Aurum
1st ERP vendor to make a strong move into front-office arena (199r)
Ran into financial difficulties & suffered management upheaval
source: InformationWeek

PeopleSoft -- Vantive
 1Month after PeopleSoft bought Vantive, delivered! (2000)
source: CET

Business Practices
Vision/Strategy Innovation Management
Partner Relationship Management
Process Innovation Management
nowledge Capture
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Consider: Ability to partner with strategic ally to offer diverse products and services
Example: Bann &Aurum vs PeopleSoft & Vantive

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More than any other time in history, mankind faces a

crossroads. One path leads to despair and utter
hopeless. The other, to total extinction. et us pray we
have the wisdom to choose correctly.´
-- Woody Allen

Techniques from today

± Use a variety of tools to get varied perspectives

You must make an explicit connection between action and outcome!

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90 Second
The
our Questions Exercise
What¶s changing or what needs to change in your organization?
What factors external to your organization are causing you to make
these changes (e.g., lost market share, reduced product life, increased
competition)?
What difficulties have you encountered in making changes?
What are your organization¶s strengths and weaknesses (highly flexible,
dedicated employees/legacy accounting system)?

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± Being a pioneer, not following others, but doing the impossible.
± Experiencing the sheer joy of innovation and the application of
technology for the benefit and pleasure of the general public.
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± Become the company most known for changing the worldwide
image of Japanese products as being of poor quality. 

   will mean something fine and not shoddy.
± Create products that become pervasive around the world.
± Be the first Japanese company to go into an American market and
distribute directly.
±
ifty years from now, our brand name will be as well known as any
on Earth.

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The absence
of a major and
visible crisis
Too much happy talk Too many visible
from senior management resources

uman nature, with its ow overall

capacity for denial, performance
especially if people are standards
already busy or stressed
Complacency
Organizational
A kill-the-messenger-of- structures that focus
bad-news, low-candor, employees on narrow
low-confrontation culture functional goals

A lack of sufficient Internal measurement

performance feedback systems that focus on the O




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To what extent have you been given compelling reasons for why significant change was
necessary?
To what extent did you feel a sense of urgency about the transition and that the status quo
was unacceptable?
To what extent did your fellow workers feel a sense of urgency about the transition and that
the status quo was unacceptable?
To what extent do your fellow employees understand the potential benefits of change?
To what extent can you remember the vision coming up in casual conversation, issue
discussion, or decision making in the last week?

To what extent do managers discuss the linkage between daily activity and the new
vision?
To what extent does your manager generate energy and urgency in others to get things
done?
To what extent does your manager create a sense of pride and trust in working with him
or her?
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To what extent have you been trained to understand your organizations financial
statement?
To what extent are you provided with information about problems (e.g., profits up but
market share down?
To what extent are you provided with information about potential problems (e.g., a new
competitor is showing signs of becoming more aggressive)?
To what extent are you provided with information about potential opportunities (e.g.,
through technology or new markets)?

90 Second
Exercise
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Ju=;9'
Absolutely Top-otch...........Score 90-100
Does the Job.........................Score m0- 90
eeds Work..........................Score 0- m0

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Research based not-for-profit transitioning to for-

profit consulting organization.

lat organizational structure.
Cross-functional teamed environment.
ess than 100 employees.
Many diverse strategic partner collaborations.
ess than 10 years in operation.

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Organizational Concern
Site champion motivated to distribute survey based upon concern for
morale. ot sure what underlying issues are.

Desired State
oted that the organization is


   
 from a publicly
funded research organization to a commercially funded consulting
group. Would like to focus direction [for people] and rally resources
with minimal loss of productivity due to possible poor morale.

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Benefits of conflict &'"()

Generate motivation and energy to deal with underlying problems.
Make underlying issues explicit.
Sharpen people¶s understanding of real goals and interests.
Enhance mutual understanding between different groups.
Stimulate a sense of urgency.
Discouragement people to engage in avoidance behavior.
Prevent premature (and therefore dangerous) resolution of problems.
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To what extent are your department¶s monthly results evaluated in light of the new vision?
To what extent are the workforce¶s ideas and knowledge being tapped to question and test
the validity of the proposed methods of operation?
To what extent do you feel you have a real stake in improving your organization¶s
performance as opposed to just your narrow job responsibilities?
To what extent do business unit leaders act on criticisms and suggestions for
improvement?

To what extent have you been involved in redesigning your new job?
To what extent is your input valued for improving your job responsibilities during the
transition?

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To what extent was provided training adequate preparation for the new realities of how you
must now do your job?
To what extent were you adequately trained on change management concepts and
techniques?
To what extent was information about the transition easily understood by every member of
the workforce?

To what extent does your manager act as if they believed the organization needed major
change?
To what extent does your manager constantly demand new ideas and perspectives?
To what extent does your manager sustain pressure so that people achieve more than
expected?

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To what extent do you feel the organization communicates honestly and openly about the
changes going on?
To what extent does information about the status of the business flows freely throughout
the organization with minimal filtering?
To what extent does information (business, industry, production, etc.) flow to the right
people, at the right time, in the most appropriate/effective medium throughout the
organization, without barriers?
To what extent do you have access to the information you needed (daily? in the long run?)

To what extent does useful knowledge and good ideas travel across the organization?
To what extent do business units learn from one another (i.e., reinventing the wheel
almost never happened)?

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To what extent is the design of your job based on the tasks that need to be performed
rather than on position descriptions, reporting relationships, and title changes?
To what extent does your organization encourage individuals, regardless of job description,
to search for innovation?

To what extent where you briefed on how your job impacts the goals and targets of other
department?
To what extent are there lots of planned opportunities for talk with other departments and
joint activities?
To what extent do you feel you receive a sufficient amount of feedback from internal and
external sources to help you improve what you do?

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To what extent is your performance evaluation tied to the change initiative?

To what extent does your current performance appraisal system support/promote the new
way for doing work?
To what extent does your current compensation system support/promote the new way for
doing work?
To what extent does your current promotion system support/promote the new way for doing
work?

To what extent do you understand what you must do to satisfy the customer¶s needs?
To what extent can you link your day-to-day work to satisfaction of the client¶s needs?

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Getting rid of obstacles

± Skills (Technical, Management, eadership)
Changing systems or structures that undermine the
change vision
Encouraging risk taking and nontraditional ideas,
activities, and actions

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To what extent do you understand how your department¶s performance is measured?

To what extent is it the norm´ for you to look for problems and opportunities that might
impact the success of the transition?
To what extent is there sufficient motivation and rewards (policies, procedures, and
methods) for encouraging people to contribute in ways that exceed their job/work
descriptions?
To what extent is the requirement for ongoing improvement built into each job and team
assignment?
To what extent does your organization provide µidea¶ resources for innovation and
improvement (industry journal, internet , competitors analysis)?

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To what extent is decision making driven down to the lowest level possible?

To what extent is R a key element in the success of the transformation?

To what extent were there specific individuals named as change agents for your business
unit?
To what extent does the organization focus on the deliberate selection (hire or promotion)
and development of people who can embrace and thrive in fast changing environments?

90 Second
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Generating short-term wins

± Planning for visible improvements, or wins´
± Create those wins
± Visibly recognize and reward people who made the wins
possible
Consolidate gains and producing more change
± Using increased credibility to change all systems, structures,
and policies that don¶t fit together and don¶t fit the
transformation vision
± ire, promote, and develop people who can implement the
change vision

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To what extent are you kept abreast of day to day progress during the transition?
To what extent are you able to use the vision to guide the decisions you make on a daily
basis?
To what extent are the workforce¶s ideas and knowledge used to question and test the
validity of how your department¶s performance would be measured?

To what extent are mechanisms in place to assure that new learning was rapidly captured

and disseminated throughout the organization?

To what extent do you share innovative ideas with other departments?

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To what extent are the short-term goals achievable?

To what extent is progress tracked against plans/goals and necessary adjustments made
on a real-time basis?
To what extent is organizational action based on real-time knowledge of the transition?
To what extent does your department adapt to unexpected problems and identify workable
solutions?
To what extent does your organization acknowledge mistakes fast and attempt to fix them?

To what extent are training and development activities custom fit to your specific needs
vs. out of the can´?

90 Second O




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To what extent is the right data tracked so that gains or improvements could be clearly
shown?
To what extent does your organization have a culture that seeks our µdifference¶ and
embraces challenge and self-critique?
To what extent will lessons learned from this implementation be able to be shared
throughout the organization?
To what extent did your organization clearly define how your performance would be
measured throughout the transition? (What were those measures?)

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To what extent are training and development activities keeping pace with the changes that
took place?

To what extent have new work habits replaced the old way for doing work for you?
To what extent are  #   confronted, coached, and monitored to ensure that new
work habits were the only way for doing business?
To what extent is  

 confronted, coached, and monitored to instill
appropriate behavior?

90 Second O




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