07 05 Leading Change (70 Slides)

Challenge of Leading Change OR

How to Engage Employees in the Change Process

Challenge of Leading Change Abu Dhabi University May 2007

Presentation Overview

Making Changes

Why Change?

Managing Change

The GASCO Case

Successes & Lessons Learned


Making Changes

People’s minds are changed through observation and not through argument… Will Rogers

To improve is to change; to be perfect is to change often… Winston Churchill

Only the wisest and the stupidest of men never change… Confucius


Why is Change Necessary?

Increasing global competition

Experienced workers retiring

Introduction of new technology

Ageing equipment

New business opportunities

Business threats

Nationalization efforts

Meeting customer needs


GASCO Vision

Managing Change


The Management Focus

New Business

ReputationIncrease Market

Share

QualityExpand

Business

Control Costs

IncomeProfits

ProfitsSatisfy Shareholders

Customer Satisfaction

What Do Managers, Shareholders & Owners Want?


Benefits

Security

Good Environment

Recognition

Feedback

Development

Salary

Training

Supervisor Approval

The Employee Focus

What Do Employees Want?


Understanding Change…

Successful change requires clear communications

Top management support is required

Mgmt & workers have a different view of change

Change efforts upset the status quo

Change increases anxiety & stress levels

There will always be resistance to change

Resources & time are required to secure change

Change efforts always take longer than expected


What Must a Leader Do?

Understand why change is necessary

Have a vision worth believing in

Communicate that vision to the entire workforce

They must be honorable & ethical

Support change and provide clear guidance

Create a change strategy for the organization

Align the company’s goal with the new vision

Inspire people to achieve company’s objectives


Create a sense of urgency

Build a Team to lead the change effort

Continually communicate the need for change

Developing pilot programs

Develop structures to support the change

Redesigning systems and/or procedures

Empower people to carry out the change efforts

Institutionalize the change efforts

Create a “Plan for Change”


Prioritizing Change Issues

High

High

Low Difficulty to Resolve

Imp

act

Challenge of Leading Change Abu Dhabi University May 2007Difficulty to Resolve

Imp

ac

t o

n t

he

Org

an

iza

tio

n P

erf

orm

an

ce

High

LowLow High

A B

C D

PE1

Attribute Code

Performance PE Innovation IN Open Communication & Transparency

OC

Professionalism PR Learning & Adaptability

LA

Teamwork TW Family and Community

FC

HSE HS

PE2

PE3

PE4

IN1

IN2

OC1

OC2

PR1

PR2

PR3

LA1

LA2

LA3

TW1

TW2TW3

FC1

FC2

HS1

HS2

HS3

What Comes First?


Tell your staff what’s in it for them! What will the change do to them and for them?

The Most Important Rule!


GASCO Vision

GASCO’s Case for Change


Integration mid 2001

The Case for Change in GASCO

GASCO Established in 1978

Joint Venture Company ADNOC, Shell, Total & Partex

1000 employees

Mainly produced NGL for export

ATHEER Formerly ADNOC Gas

Processing

ADNOC Company

1000 employees

Produced consumer gas for use within UAE

Created one of the largest gas processing companies in the world

Diversified the customer base (local & international)


Strengths• Vital role in hydrocarbons value chain of Abu

Dhabi• Exciting new organization with scale and

ambition to do things differently• Recognize need to change, led by the Chairman

and GM• Desire to build competencies from within• Increased focus on performance• Active positioning for future expansions• Drive to work collaboratively

Weaknesses or Areas for Improvement!• Culture & morale• Perceived working environment• Leadership and human capability• Leverage of information systems• Gaps in key management processes• Ineffective business processes• Lack of performance requirements

Opportunities• Capitalize on merger • Increased geographic and value chain spread• Broad shareholder support• Established growth and change agenda• Leverage new technology• Leverage brand

Threats/Challenges• Constraining Shareholder response mechanism• Emerging competitive activity• Increasing regulatory, quality and HSE

requirements• Increasing end user demand for more

services/outputs• Losing talent to other companies• Emiratization targets

SWOT Analysis


Force Field Analysis

Current Performance

TargetPerformance

Culture Driving ForcesCulture Restraining Forces

Using latest technologyClear job descriptions are available for allLearning opportunities increasingLinking reward to performanceOpen door policyVisible management commitmentExtensions granted for experienced staffPositive company reputationOpportunities for project developmentCompetency assurance systemClearly defined targets & objectives (KPIs)Succession plans availableDefined targets for traineesEmiratization efforts

Aging ProfileNo database for capturing experienceNo sharing of knowledgeToo many activities with limited resourcesLack of specialized trainingLow motivationHigh turnover of experienced staffNo sharing of responsibility in team environmentJob Descriptions / Culture / Business Processes do not encourage teamworkNo delegation of authorityLack of incentives / recognition / rewardLack of accountabilityLow commitment levelLack of discussionRotation system & impact on continuityConservative decision making / taking responsibilities



GASCO Vision

Moving Forward

With GASCO 21


GASCO 21 is a journey NOT a project

Involves continual improvements NOT just a one-time fix

Involves all GASCO staff NOT just direct employees

Requires the support of all personnel NOT just managers

Improves the working environment

Supports change within the Company

Creates awareness, interest and openness in the Company

Renews peoples’ faith in GASCO and it’s Leaders

It is about solving Company problems AND NOT focusing

on issues that should be handled through other means

What is GASCO 21?


GASCO 21 Foundations

Culture & Leadership

Openness & Transparency

Teamwork & Communications

Learning, Adaptability & Innovation

Leadership Assessment & Development

Family & Community

Management Systems

Performance Management

Business Process Design

Interfaces Between The Divisions

Common Processes & Procedures

Improving Work Processes

ADNOC Key Performance Indicators

Cascade the KPIs downward

Measurable Performance Contracts

Performance & Professionalism

Culture & Leadership

“I Agree To Overcome Problems For Perfect Harmony”

I - Innovation

A - Adaptability & Learning

T - Teamwork

O - Open Communications & Transparency

P - Performance

F - Family & Community

P - Professionalism

H - Health, Safety & Environment

GASCO Cultural Attributes


GASCO’s Cultural Attributes


GASCO 21 Core Team


The Bigger Team


The Team At Work & Play


GM

GASCO GASCO 21

GM / AGMs

AGMO AGMA

DM

DepartmentHead

SectionHead

Change Agent’sCompany Position

DM

DepartmentHead

SectionHead

DM

ChangeAgent

G21 CoreTeam

Company Change Agents


Toolkit for Division Managers

1. Demonstrate G21 Ownership Sponsor & direct the overall focus of

G21 initiatives

Lead the implementation of new initiatives & monitor their progress

Include G21 activities as agenda points in all regular meetings

Provide adequate money, time & resources for G21 activities

Recognize staff who demonstrate extra efforts in applying GASCO’s cultural attributes

Explore ways to bring resistors on board

2. G21 Communication Plan During meetings & get-togethers

introduce Change Agents

Provide employees feedback on their concerns & suggestions

Ensure communications takes place between Core Team & Change Agents

Publicize G21 feedback from Core Team HQ regularly

Inform staff when their suggestions or ideas will not be implemented

3. Getting The Most From the Division Change Agents

Review and discuss the Change Agent’s role description with them

Hold regular (at least monthly) meetings with them & focus area custodians to review and update Division G21 Plan

Accompany Change Agents on regular visits to division employees

Provide status & authority to Change Agents so they can fulfill their duties

Eliminate & replace inactive Agents


Assist the DM introduce changes in the workplace & provide feedback on concerns of division personnel

Brief employees on the latest news, achievements and progress of the G21 Journey

Propose, introduce, support & facilitate changes within the Division

Assist in the development of Division G21 Plan, and then monitor plan progress to Core Team

Coordinate Division’s G21 activities

Conduct Q&A sessions, opinion polls and brief division personnel on the results

Support line managers whose work is affected by changes to help them overcome resistance

Promote & brief division personnel on GASCO’s 8 cultural attributes

Involve employees in brainstorming sessions

Present employee’s suggestions to management

Participate & provide input at G21 Workshops

Conduct regular meetings with the G21 Core Team

Establish and maintain good working relationships with other G21 Team members

Change Agents Responsibilities


Involvement Awareness Impact Exposure Training Dynamic & exciting activities Networking Performance appraisal credit Recognition Resume experience Fulfillment Fun!

Change Agents Benefits


GASCO Vision

Developing Leaders


Site & HQ Feedback

CultureAttributes

LeadershipResearch

ManagementProcesses

Structural Levels

Roles and Responsibilities

Competencies

Proficiency

Vision & StrategicObjectives

Leadership Program Foundation


Leadership Curriculum

• Leadership • Building Effective

Teams• Coaching &

Counselling• Time Management• Conducting

Performance Feedback

• Communication Skills• HSE Work

Instructions and Corrective Actions

Supervisors

Section Heads

Superintendents/ Department Heads

Plant/DivisionManagers

ExecutivesGM/ AGM

• Basic Supervision• Planning & Organizing

Work• Delegation• Managing Diversity• Competency Mgmt• HSE Performance

Monitoring

• Building Stakeholder Relationship

• Emotional Intelligence• Leading Change• Financial Mgmt for Non-Financial staff• Motivation and

Management• Running Effective

Meetings• HSE Risk Evaluation &

Management

• Driving Performance Management

• Budgeting and Cost Control

• Effective Presentation

• Management Decision Making

• Designing Company Change Efforts

• HSE Mgmt System Implementation

• External Leadership Forums

• General Management Training

• Industry Analysis• Strategic Leadership• Governance• HSE Leadership and

Commitment

Building Current & Future Leaders within GASCO


Leadership Delivery Method

This series of workshops are designed to introduce current and future leaders to three fundamental skills that will make their jobs easier! The sessions focus on becoming more effective by managing your time, running effective meetings and finally making effective presentations.

Management Decision Making - Tuesday, 12 April: 0800-0930 This program helps improve the delegate’s decision making by exposing them to problems solving techniques and approaches which they can use effectively in the work place. The program includes an examination of a “right first time” total quality culture and what additional benefits it can deliver for GASCO. Learning themes: Using and understanding Ishikawa’a Fish-bone root cause approach, what is it and how it works Pareto’s 80/20 rule and how this can be used to improve problem analysis Critical path analysis and effective problem solving A total quality approach to problem solving Inculcating a “right first time” culture in your department

Motivation & Management - Tuesday, 12 April: 1000-1200 Understanding new approaches to motivation and management of people vs. using more traditional methods. What are the advantages & disadvantages and what are the implications for my management style? Learning Themes: The theories of motivation and what they mean for my management style How the motivation of people in the new business environment is changing What people want v what you think they want, some survey results Motivating people and GASCO, the implications

Effective Communications - Tuesday, 12 April: 1315-1500 This program deals with the whole issue of effective communication, how to ensure you are understood and how to ensure you understand others. One to one vs. group discussions, how to understand and then be understood? Learning issues: What is effective communication? Debate v dialogue, open v closed How to ensure you are understood? The concept of active listening and what it means in practice Getting people to want to listen to you Dealing with the sensitive issues

Monthly occurrence

Multi-day site event

3 Programs per day

1 ½ to 2 hours

Agenda distributed

prior to the program

All staff encouraged

to attend


Leadership Participation

3333 people attended Leadership Curriculum in 2004

& 2005


Participants by Location

LOCATION 2004 2005 TOTAL

HQ 511 475 986

ASAB 110 282 392

BUHASA 113 242 355

HABSHAN & BAB

335 642 977

PIPELINES 72 299 371

RUWAIS 74 178 252

TOTAL 1215 2118 3333


GASCO Vision

Workforce Developmen

t


Jebal Ali

Customer Service Journey

Ruwais

Asab

Buhasa

Abu Dhabi

Habshan/Bab

1) MIND LEAP

We cross over to better performance through a change in

thinking

April & May314 people

2) UNDERSTAND OTHERS

We solve many problems by understanding other

people

July & August367 people

3) LISTEN UP

We improve communication when we

develop our listening skills

November & December391 people

4) PRO-ACT

We take action to help our

colleaguesFebruary & March329 people


Interactive Workshops

1401 people attended Customer Service Training

in 2004


Commercial Awareness


Participants by Location

1st Round

2nd Round

3rd Round

4th Round

HQ 82 91 55 29

ASAB 38 44 30 16

BUHASA 36 49 24 25

HABSHAN & BAB 118 102 103 54

PIPELINES 26 12 - -

RUWAIS 18 25 15 20

TOTAL 318 323 227 144


Do You Know GASCO?

1012 people attended Commercial Awareness in

2005 & 2006


GASCO Vision

Annual Survey

Program


Annual Survey conducted for 3 years

Participation has increased

Positive responses show steady increase

Survey hosted on Company Intranet

Response period allowed 1 month

Demographic data collected for last 2 years

Survey Program


2003 Survey Details

1. Survey consisted of 70 questions

2. Responses were anonymous to increase participation

3. Employee demographic data initially required but became optional after receiving employee enquiries

4. Survey was distributed on 8 Jan 2003

5. Completed surveys were due by 21 Jan 2003

6. Completion date extended to 22 Jan 2003

7. 1112 completed surveys were returned in time

8. Surveys that arrived after the cut-off date were not included in the analysis

9. 421 comments & suggestions were collected


1. 1523 surveys, 411 more than 2003 (37% increase)

2. Three (36 question) survey instruments used

3. Demographic data was collected

4. 341 comments & suggestions gathered

5. Overall ratings: HSE: 76% (down 3% but last year only had 3

questions) Teamwork: 67% (up 5%) Innovation: 66% (up 3%) Professionalism: 65% (up 4%) Open Communications: 65% (up 4%) Family & Community: 63% (up 10%) Adaptability & Learning: 58% (up 9%) Performance: 57% (up 7%)

2004 Survey Details


1. 1466 surveys, 57 less than 2004 (4% decrease)

2. Three (36 question) survey instruments used

3. Demographic data was collected 2nd year in a row

4. 98% of the responses collected on-line

5. 255 comments & suggestions gathered

6. Overall ratings: HSE: 80% (up 3%) Teamwork: 70% (up 3%) Innovation: 67% (up 1%) Professionalism: 69% (up 4%) Open Communications: 70% (up 5%) Family & Community: 65% (up 2%) Adaptability & Learning: 57% (down 1%) Performance: 57% (no change)

2005 Survey Details


2004 to 2005 Comparison

2003 2004 2005 Change Since Last Year

Innovation 63% 66% 67% +1%

Adaptability & Learning 49% 58% 57% -1%

Teamwork 62% 67% 70% +3%

Open Communications 61% 65% 70% +5%

Performance 50% 57% 57% No change

Family & Community 53% 63% 65% +2%

Professionalism 61% 65% 69% +4%

HSE 76% 77% 80% +3%


KPI Achievement

85%

109%

118%

0%

20%

40%

60%

80%

100%

120%

2002

2003

2004

Three Year Survey History


Demographics - Participants


2006 General Category Ratings


GASCO Vision

Tools for Supporting

Change


Continual Communications


Monitoring the ChangeID Task Name

1 GASCO 21 Team2 Prepare & Distribute G21 Promotional Items

6 Introduce Posters

15 Team Training - 3 Day Workshop

19 Annual Survey

27 Enhance GASCO 21 Intranet Site

28 Email introduction

29 Initial layout meetings

30 Setup appropriate links

31 Launch new site

32 Produce Monthly Status Report

43

44 Business Process Reviews45 Conduct Interviews with each BPR Division

46 Verify the BPRs with Concerned Parties

47 Support BPR Coordination

48

49 G21 Change Agent Coordination50 Gather Monthly Division Achievements

60

61 Ideas, Suggestions & Quick-Wins62 Identify Initial Quick-Win Opportunities

63 Prioritize Initial Proposals

64 Present Ideas & Suggestions to MGMT Team

65 Prioritize top 15

66 Send to GM for review / approval

67 Monitor Implementation of Prioritized Quick-Wins

68 Publicize Quick-Wins

Tom

Team

Team,IT Dept

Team

Tom,Ahmed

Ahmed

Ahmed

GASCO 21 Team

Tom, Abdullah

Abdullah

GM / Tom / Abdullah

G21 Team / Abdullah

Team

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter


G21 Poster Competition


Align Work Efforts with Strategic Objectives & KPIs

Improve Business Processes & Procedures

Improve Efficiency Between Divisions & Departments

Manage, Monitor & Measure Performance

Improve Leadership & Teamwork Capabilities

Enhance Corporate Culture

Encourage Innovation

Promote Teamwork

Increase Transparency / Openness

Transform from “Reactive” to “Proactive” Company

Pride in Working for a “Great Company”

Benefits of GASCO 21


Finally -- Lessons Learned

1. Underestimated Scope & Magnitude of the Change

2. Determining Manpower Needs is Critical

3. Change Efforts Require Dedicated Resources

4. Overcoming Resistance-to-Change Takes Time

5. Management Support Must Be Visible at all Times

6. Support of Both Managers & Employees is Required

7. Everyone Must “Walk-the-Talk”


“The crucial lesson is that management is the message. Everything managers say – or don’t say – delivers a message. Too many managers assume that communications is a staff function, something that human resources or public relations is to take care of. In fact, communications must be priority of every manager at every level in the company. If there is one single rule of communications for leaders, it is this: when you are so sick of talking about something that you can hardly stand it, your message is finally starting to get through!”

From “Managing Change” by J. D. DuckHarvard Business Review on Change

One Last Thought


AdditionalInformation


The Society for Human Resource Management (SHRM) is the world's largest association devoted to human resource management. Representing more than 200,000 individual members, the Society's mission is to serve the needs of HR professionals by providing the most essential and comprehensive resources available.

http://www.shrm.org

What is SHRM


ASTD (American Society for Training & Development) is the world's largest association dedicated to workplace learning and performance professionals. ASTD's 70,000 members and associates come from more than 100 countries and thousands of organizations--multinational corporations, medium-sized and small businesses, government, academia, consulting firms, and product and service suppliers.

What is ASTD?

http://www.astd.org


The Human Capital Institute (HCI) is a professional organization dedicated to leadership in the business science of Talent Management. Members are Human Capital professionals & executive leaders who share the conviction that TALENT is the most powerful competitive lever in a knowledge economy.

What is HCI?

http://www.humancapitalinstitute.org


Education is not the filling of a pail, but the lighting of a fire…

William Butler Yeats

William Butler Yeats (1865 –1939) was an Irish poet, dramatist and public figure. Yeats was awarded the Nobel Prize for literature in 1923

for poetry.


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07 05 Leading Change (70 Slides)