HRM 6033 Leading Organization Change

Improving Collaboration through Connectivity

Authors: Debbie Hall, Randy Nasir, & Tonita Orr

Introduction
          

Work Trends Current Telecommunication Strategy Problems with this Strategy Loss Examples Case Studies Vision/Mission Statement Proposal Push backs Enablers Change Model Conclusion
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Automotive Industry Current Trends

More Work - Fewer People

Outsourcing more reliance on business partners.

Global and Mobile: People are spread out over greater distances.
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Trends (cont)


Collaboration between employees and business partners is more critical as:

Number of employees is reduced. Employees are spread over wider distances.

To improve collaboration and productivity, the quality and speed of information needs to increase. Mobile phone technology is a basic first step to increase collaboration in the workplace.
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Current Telecommunication Strategy at Chrysler LLC



Most
Basic workstation phone w/voice mail Pager


Text or numeric

Some
Basic workstation phone w/voice mail Mobile phone
 

Different number & voicemail Some with push-to-talk (PPT)

Few
Basic workstation phone w/voice mail Blackberry / Smart phone
  

Different number & voice mail Mobile e-mail Mobile Data

Current Telecommunication Strategy (cont)



This strategy is inefficient.

Many employees are away from their workstations throughout the day. The primary method to request information from employees that are away from their workstation is to send a page. Leaving requests for information on voice mail systems or calling pagers create breaks or lags in information flow.

Pagers are not the Answer !

 

Problem You must wait to communicate. Initial contact may not be able to provide information & may need to contact another person.
Intermediate Contact


Chris Information Provider 30 min

20 min Jamie


Pat 10 min

Wait time for initial & each subsequent requestor increases each time another layer needs to be paged. Result lost time, lost momentum & lost productivity increase with each layer.

Taylor Intermediate Contact Assume 10 min per page callback Information Requestor

Pager Problems (cont)



Situation worsens for mobile worker.

Mobile worker must locate a phone. If the information provider is unavailable, then the mobile worker must send a page or leave voice mail. Sender is trapped at that phone waiting for callback or give up. It is unlikely the worker can perform other tasks while waiting as they are away from their normal work environment. Result lost time, momentum & productivity, increasing frustration.
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Loss Examples


Climatic Drive Cell.

24hr / day operation. $1200 / hour. 10 min delay in testing = $200 cost in lost time. Lost time grows with the number of support engineers waiting for answers. Delays in testing impact the schedule causing even more need for communication. Whole shifts have been lost due contact issues.
 

8 hr lost time = $9600 Can critically impact vehicle program schedules.

Loss Examples


Aero Acoustic Wind Tunnel.

$2000 / hour. 10 min delay in testing = $333 cost in lost time. This number grows with the number of support engineers waiting for answers. Delays in testing impact schedule causing more need for communication.
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Annual Lost Time In Environmental Test Facilities due to 10 min Average in Returning Page

Drive Cells

$72,905

Windtunnels

$119,572

$0

$20,000

$40,000

$60,000

$80,000

$100,000 $120,000 $140,000

Annual Lost Time due to 10 min Average in Returning Page

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Case Studies


Logica
Agile Working: Unlocking productivity improvements for physical asset management in Europe

Aberdeen Group
Driving Workforce Productivity with Unified Communications

Sprint Nextel
A Single Device Is Extending the Workplace for Ford Motor Company Engineers
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Logica: Agile Working: Unlocking productivity

improvements for physical asset management in Europe
 

Survey of 292 interviews in six industry sectors. Utilizing real time information tools.
9.1 % average productivity improvement. 9.4 % average improvement in customer satisfaction.

Source: Logica, March 2008 13

Aberdeen Group:


Driving Workforce Productivity with Unified Communications (UC) solutions.

Productivity: the ability to do more with equal or less staff or time. Productivity revolves around being able to:
Initially address a matter more quickly. Completing the task as quickly as possible. Delivering the final work product in an expedited fashion.

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Aberdeen Group:


Driving Workforce Productivity with Unified Communications (UC) solutions.

Its also generally accepted that a team of qualified staff can deliver on a project more quickly than can one lone individual. A key factor to the success of team-based processes is collaboration. Best-in-Class organizations stated they were 15% more likely than all other organizations to consider increased collaboration as a strategic initiative.
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Aberdeen Group:


Driving Workforce Productivity with Unified Communications (UC) solutions. August 2007 survey of over 360 organizations that implemented UC solutions. UC solutions include:
Wireless e-mail (Blackberry / smart phone). Call redirection capabilities (find me / follow me). Interactive voice response systems. Application/document sharing systems. Web conferencing. Instant messaging. Unified messaging.

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Aberdeen Group:


Driving Workforce Productivity with Unified Communications (UC) solutions.

Best-in-Class Performers (Top 20%)

55% increase in employee responsiveness to others. 52% increase in an employee's ability to gain knowledge / data from others. 60% increase in the flexibility of the workforce

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Aberdeen Group:


Driving Workforce Productivity with Unified Communications (UC) solutions.

Average Performers (Middle 50%)

21% increase in employee responsiveness to others. 19% increase in an employee's ability to gain knowledge / data from others. 27% increase in the flexibility of the workforce.

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Aberdeen Group:


Driving Workforce Productivity with Unified Communications (UC) solutions.

Low Performers (Lower 30%)

19% increase in employee responsiveness to others. 14% increase in an employee's ability to gain knowledge / data from others. 7% increase in the flexibility of the workforce.

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Key Pressures Driving the Need to Deploy Unified Communication Systems

Responsiveness to customer needs Managing a decentralized workforce Maintaining a strong / continuous work pace 54% 70%

49%

Lower costs Leverage specialized talent globally 0% 10% 20%

39%

27%

30%

40%

50%

60%

70%

80%

Source: Aberdeen Group, September 2007

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Best-in-Class Actions to Improve Workforce Productivity

Increase workforce collaboration Streamline business processes \ 62%

57%

Provide more timely service to customers Provide more personalized service to customers Create a borderless office 0% 10% 20%

47%

30%

30%

30%

40%

50%

60%

70%

% of Best-in-Class Organizations

Source: Aberdeen Group, September 2007 21

Ford Motor Company



8000 Ford employees replaced their desktop phones with Sprint mobile phones. Ford's product-development group sought a mobile solution that would let its employees communicate using one device instead of maintaining messages on a desktop phone, pager and a mobile phone.

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Mobile Phone Requests at Chrysler, LLC

2000 1800 1600 1400 1200 1000 800 600 400 200 0 2004 2005 2006 Requests 2007 2008

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The 3 Is of Change Model

Innovate Influence Implement Brainstorm with Key Players on ways improve the current state of business

Innovate
Review Metrics for Continuous Improvements

Influence

Not just changing minds - changing mind-sets. Use key motivational strategies to enlist support for innovative ideas Change Proposal: Collaboration Improvements
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Implement

Vision / Mission Statement



Vision:
To increase productivity through improved collaboration using mobile communication tools in the workplace.

Mission:
Utilize basic mobile phone technology.

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Project Leaders / Participants



Project Leader Representatives from:

Engineering Finance Telecommunications

Participants are Chrysler LLC engineering community.

Engineers that require real time information as they process their work assignments.

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Project Scope / Time Frame



Beta Phase (6 months):

Small scale implementation to determine challenges & pitfalls of change proposal. Review measured results from beta phase.

Phase I:
Implement basic mobile phone for engineering. Review measured results from phase 1.

Phase II:
Study cost / benefit of unified communication strategy.

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Enablers


Groundwork for infrastructure is already in place for mobile phones. Implementation of the new mobile phones would have a minimum learning curve for the users due to todays society already infused with this technology. Offering training classes for phone operations. Communication protocol/guidelines established (limiter of phone use and appropriateness).

 

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Addressing Push Backs



Facility coverage is not 100%.

Groundwork for infrastructure is already in place for mobile phones. Minor upgrades required for some locations.

Some may feel they are required to answer work phone during non-work hours.
Publish communication protocol/guidelines.

Calls and text messages open to monitoring.

Corporate standards still applies.

Cost of mobile devices in service plans.

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Annual Cost of Communication Devices

Assumption: 450 minute Rate Plan
2000 1800 1600 1400 1200 ($) 1000 800 600 400 200 0 Desk LAN Numerical Pagers Alpha Numerical Pagers Cell Phone Smart Phone Smart Phone Voice/Text Data Only Voice and Data Annual Cost

Proposed Device & Plan

One Time Fee/Installation ($)

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Recommended Change Method



Change Management approach applies for the following reasons:

Re-creates how communications should operate and correct an internal problem:


Improving employees accessibility of information & increasing productivity.

Director Image of managing change can direct/control how the organization can respond to the need of mobile connectivity. Provides multi-step models to achieve a transformational change.

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Recommended Change Model



Chosen model is Paul Taffinders Transformation Trajectory 5-step change management model.
1. 2. 3. 4. 5.

Awaken. Conceive the future. Build the agenda of change. Deliver big change. Master the change.

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Application of Change Model



Applying Taffinders model:

1. 2.

3.

4.

5.

Initiate buy-in by stating deficiencies of current communication strategy. State our vision/mission to improve communication connectivity. Inform how deficiencies are decreasing productivity by the lack of information, data updates, & down-time of work force. Show how new strategy will increase data quality, prompt responses, productivity & advance technology. Utilize metrics to measure & maintain the effectiveness of the new communication system.

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How to Measure Results

  

Survey community. Phone usage metrics. Scoreboard metrics.

Productivity. Operational efficiency.

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Sustainability of Project


Mobile phones are already established as a sustainable technology. Trends in industry are to utilize integrated telecommunication system to increase collaboration over an increasing mobile workforce.

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Conclusion
 

Current telecommunication strategy at Chrysler LLC is inadequate. Research supports that improved communication increases worker collaboration/productivity and ultimately profits. Expense of phones is offset by cost savings.

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Conclusion
  

Push backs are accounted for in the implementation plan. Measured success will lead to further enhancements to collaboration strategy. Mobile phones a single device to extend the workplace.

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Reference List


Palmer,I., Dunford, R., & Akin, G. (2005). Managing organizational change: A multiple perspectives approach. Boston: McGraw-Hill / Irwin.

Jackson, Donny. (2005, Feb.). Ford turns to mobile phones with P2T. Mobile Radio Technology. Vol. 23 Issue 2, p16, 1p. Retrieved July 16, 2008 from EBSCO Research Databases at http://www.ebscohost.com.

Sprint Business Solutions. (2009). A Single Device Is Extending the Workplace for Ford Motor Company Engineers. Retrieved July 21, 2008 from www.sprint.com.

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Reference List (cont)



Aberdeen Group. (2007, Sept.). Driving Workforce Productivity with Unified Communication. The Path to Fixed / Mobile Convergence. P1 p17, 17. Retrieved July 16, 2008 from www.aberdeen.com.

Logica. (2007). Agile working: Unlocking productivity improvements for physical asset management in Europe. P1-p17, 17. Retrieved July 16, 2008 from www.logica.com.

Vernon, Mark. (2007, June). PERKS AND PERILS OF MOBILE WORKING. Management Today. Retrieved July 21, 2008 from EBSCO Research Databases at http://www.ebscohost.com.
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