Managing change

by Fluid

September 2010

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Contents

3-4 Introduction to Fluid5-6 Change strategies7-9 Communicating change

management10-11 Reasons for resistance12-14 A successful change

management one-day event15-16 Learn to love change17-18 Self-esteem and time19-20 Communicate through a crisis21-22 Coaching at a time of change23-26 Culture change27-28 Exercise A29-30 Creating a built-to-change

organisation31-32 Successfully organising change33-34 People management aspect of

change35-36 Measures to assess success of

change37-38 Leading change from within39-47 Real-life examples48-49 Exercise B50-51 Case studies52-53 Conclusion and questions

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Introduction

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Introduction to Fluid• Fluid Consulting Limited (Fluid) is a specialist

human resources consultancy headed by Tim Holden MCIPD

• 10 years in banking• 10 years in Human Resources consultancy• Fluid trading since 2006• The core services provided by Fluid are:

- Retention- Selection- Attraction- Remuneration & Reward - Outplacement- Training & HR consultancy

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Change strategies

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Change strategies

• What’s the problem• Prepare for setbacks• Find support• Get started• Find quick wins• Out of their shoes• Create connections• Build on synchronicity• A little help…..

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Communicating change management

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Communicating change management 1 of 2

• Recognise that a vision can come easily; making it happen is the hard part

• Realise that altering behaviours will not happen overnight

• Know beforehand what you want to achieve and where you want to get to

• Recognise that your workforce is not one homogenous mass-messages need to be tailored to individuals and groups

• Encourage two-way dialogue and interaction to promote buy-in and engagement

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Communicating change management 2 of 2

• Involve your audience right from the start• Remember to communicate ‘why’ as well as ‘how’• Show how the change is going to improve people’s

day-to-day lives, try to avoid jargon and management speak whilst keeping it real

• Use line managers to promote the message and identify credible ‘change champions’

• Senior management must be seen to embrace the change and lead by example

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Reasons for resistance

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Reasons for resistance

• Parochial self-interest triggered by a fear that something of value that will be lost as a result of the change

• Distrust of the change agents, triggered by a fear of half-truths and hidden motives

• Different assessments of the need for change, with interested parties accessing different sources if information and/or having different interpretations of the same information

• Low tolerance for change triggered by a fear of not being able to cope in new, unfamiliar circumstances

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A successful change management one-day

event

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A successful change management one-day event 1 of 2

• Involve people in the day-get them to contribute, don’t just talk at them

• Have a ‘wow’ factor, but don’t make it too lavish and expensive. Create something that is innovative and interesting in presentational terms

• Give people the opportunity to have some informal time together (over lunch or coffee perhaps)-that’s where you get networking and communication

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A successful change management one-day event 2 of 2

• You’ve got to have the top team delivering it, and make sure that this team can communicate with employees in a really effective way

• When talking about where your organisation is going, keep it simple and straightforward

• To keep costs down, go for maximum utilisation of your venue. Rent equipment, look at innovative ways of running a contract, and always have an open/competitive bid for the delivery. With competition you get innovation, and a good pace

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Learn to love change

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Learn to love change

• Put it into perspective• Keep it at work• See it as an opportunity• Make changes for valid reasons• Avoid unnecessary habits

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Self-esteem and time

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Self-esteem and time

• Relief• Shock, immobilisation and loss• Searching and denial• Anger• Depression, self doubt, inertia• Acceptance• Testing options• Searching for meaning & self awareness• Integration and renewal

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Communicate through a crisis

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Communicate through a crisis

• Throw out the rulebook• Don’t assume control• Say what won’t change…• …and what will• Keep employees focused• Get line managers talking• Educate your employees• Walk the talk

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Coaching at a time of change

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Coaching at a time of change

• Use coaching to support those who are leading the change first

• If you recruit an external coach, make sure they have a business background and understand your environment

• Make sure that HR is operating as a business partner

• Use coaching methodologies thoroughly• Be clear about what success looks like

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Culture change

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Culture change 1 of 3

• Developing a set of values that make a difference to the organisation is a huge amount of work-not only in producing the framework but also in embedding it in the daily operations of the organisation

• Introducing radical change is much easier if you have the total support of your Chief Executive and executive colleagues

• External partners need to engage in understanding and responding to the character and ambitions of the organisation

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Culture change 2 of 3

• Create awareness• Establish role models• Develop relevant skills and knowledge• Reinforce the desired behaviour

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Culture change 3 of 3

• USE CULTURE AS A CATALYST FOR CHANGE• Develop your strategy• Tools of the trade• Quality as well as quantity• The root of the matter• Communicate widely• Involve all employees• Track progress• See the benefits

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Exercise A

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• How ready for change are you?

Exercise A

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Creating a built-to-change organisation

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Creating a built-to-change organisation

• Don’t assume that the future will be like the present

• Ensure no employee is more than one or two steps from the external environment

• Share business information with employees• Use frequent goal-setting reviews rather than job

descriptions, to manage talent• Stress that individuals’ employment depends on

their willingness to accept change and learn new skills

• Encourage managers at all levels to take advantage of leadership opportunities

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Successfully organising change

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Successfully organising change

• Sustain top management support• Avoid piecemeal, uncoordinated change

initiatives• Achieve substantive rather than tokenistic

employee involvement in the change process• Invest in communications with external

stakeholders• Involve HR professionals closely, right from

the start• Maintain effective project management

disciplines• Build skilled change-management teams

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People management aspect of change

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People management aspect of change

• How will we involve people and develop their support?

• What will be the effect on reward systems and how can we use them to promote rather than obstruct change?

• What job and skill changes will be required and how will we deliver them?

• What are the implications for the careers of those affected by and managing the change?

• How will we continually learn and improve as we implement the change?

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Measures to assess success of change

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Measures to assess success of change

• Employee satisfaction• Changes made in processes• Employee understanding• Time taken against plan• Revenue/profit improvements• Spending against budget• Avoidance of identified risk• Senior management satisfaction

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Leading change from within

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Leading change from within

• Know the organisation and the key influencers• Start with the small things that make a

difference such as making it easy for people to get their expenses back

• Get out there and really listen• Don’t take a rebuff as a personal insult• Don’t wait for permission

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Real-life examples

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Real-life examples 1 of 8

• BOOTS-THE CHALLENGE AND WHAT THEY DID• A change project was announced that involved a

restructure of the supply chain to deliver a £50M annual cost saving. It involved closing 18 distribution centres and merging three warehouses, with new terms & conditions for 12000 employees as well as 2100 redundancies announced for three years in advance

• Boots developed a clear people vision, culture, leadership development plan, support/severance scheme for affected people whilst opening a learning suite in every distribution centre, providing a sum of £300 for each colleague as a vocational training allowance and undertaking change management programmes for all managers

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Real-life examples 2 of 8

• BOOTS-BENEFITS AND ACHIEVEMENTS• Programme delivered on time and within

budget• Employee engagement scores increased

by 13%• 54% of leavers found new work

immediately• Retention of a more engaged and

productive workforce• Absence reduced from 7% to 4%

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Real-life examples 3 of 8

• ROYAL COLLEGE OF NURSING-THE CHALLENGE AND WHAT THEY DID

• The staff survey revealed a 54% level of employee engagement, so HR were tasked with improving this by 10% whilst tackling sickness absence, staff turnover and number of grievances filed-at a time when the organisation was seeking to achieve a 1% increase in membership

• Staff advocates were introduced to tackle bullying and harassment at work, in addition to a staff awards scheme, mentoring to support career development, a monthly two-way briefing process and change management workshops

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Real-life examples 4 of 8

• ROYAL COLLEGE OF NURSING-BENEFITS AND ACHIEVEMENTS

• A repeat of the staff survey two years later showed a 20% increase in employee engagement, taking the score to 74%

• Sickness absence was reduced by 0.6%, the number of grievances filed reduced by 45%, and staff turnover cut from 20% to 12%

• In a 12-month period the Royal College of Nursing doubled its membership target and saw a 2% increase-a significant boost to income

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Real-life examples 3 of 8

• TUI UK & IRELAND-THE CHALLENGE AND WHAT THEY DID• A merger of two competitors led to sites being closed, a

new Head Office being established, teams being relocated and integrated and the harmonisation of terms, policies and remuneration packages

• HR led the merger planning, secured people investment and oversaw the appointment of an integration team

• Key communications included an employee booklet, a ‘Be Special’ engagement programme, face to face visits with Directors and an online forum

• HR coached leaders through managing uncertainty and ‘making a success of the merger’ sessions, whilst completing organisational redesign within three months

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Real-life examples 6 of 8

• TUI UK & IRELAND-BENEFITS AND ACHIEVEMENTS

• Record profits posted in year one• HR policies and systems were harmonised

with a clear timetable for completion on first anniversary

• A successful partnership approach, achieving a landmark deal with the pilots’ union Balpa

• All key talent identified stayed with the organisation

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Real-life examples 7 of 8• VODAFONE-THE CHALLENGE AND WHAT THEY DID• The outsourcing of the regional operations team (350

people) took place against a backdrop of employee uncertainty, with the staff survey revealing a low score for employee engagement. The challenge was to retain a highly skilled workforce, recognising that 81 of the team were eligible for early retirement

• Potential outsourcing partners were invited in to deliver a ‘beauty parade’ pitch in front of employee representatives, and all communication was designed to be open, honest & transparent

• Pension rights were placed at the top of the agenda as consultation had confirmed employees’ fears about financial loss as they moved from a defined benefit to a defined contribution scheme

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Real-life examples 8 of 8

• VODAFONE-BENEFITS AND ACHIEVEMENTS• HR made sure the outsourcing deal put the

people agenda on an equal footing with commercial interests

• Positive feedback from employees ensured a low attrition rate

• Only one of the 81 potential employees took early retirement, meaning key skills were retained

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Case studies

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Case studies

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Exercise B

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Exercise B

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Conclusion & Questions

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Conclusion

• Summary• Questions