How To Manage…

Restructure, Redundancy & Change Mitigate Risks With Critical Employment Law & Effective Employee Management To Ensure Seamless Internal Change.

Heather WhitakerPeople Strategies Ltd

Change ….

• Is constant

• Can be positive – and still difficult

TODAYPeople process - planning and execution – before, during and after - and finish with an opportunity for questions

Every situation is different and you need to be thoughtful and creative

Maintain product quality

Minimise disruptive behaviour

Reduce risk of legal

issues

Retain those you

wish to keep

Maintain your

brand / reputation

Keep productivi

ty up

Retain leavers

until they go

It’s about managing risk, helping the company and employees re-engage and resume productive working asap

The Case

Part of a global acquisition, a small site was to be closed. World renown in their field, non unionised with no employee representative body

Highly qualified employees who could move companies very easily locally.

10 year gap in product pipeline

Note – no issues of selection for redundancy

Leading Change – Kotter’s 8

Steps

Urgency Team of leaders Vision

Communicate Vision

EnableShort term winsBuild on the changes

Anchor/ embed

The Case, Planning –The First 3 steps of Kotter• Team formed – local, later extended to members to receiving

site management

• Know what and why you need to change before you start (and who, where, when..)

• Planned communications VERY carefully– On site– Off site– Immediately post announcement

• Extra resources

• Planned elections for consultation

Change Style ContinuumEducation and Collaboration Participation Direction Coerciondelegation

Involves employees in decisions about both what to change and

how.

Aims to equip employees to initiate

changes.

Involvement ofemployees inhow to deliver

change.

Leaderstake decisions.

and useauthority to

direct change.

Use of powerto imposechange.

Spreads support forchange. Ensures wide base of understanding.

Spreads support and ownership of

change by increasing levels of involvement.

Spreads ownership and support for

change, but within a more controlled

framework. Easier to shape decisions.

Less time consuming.

Provides a clear change direction

and focus.

Allows for prompt Action.

Takes time & fact-based argument may

not be enough to convince others of need for change.

Time consuming.

Little control over decisions made.

May lead toparadigm change.

Can be perceived

as manipulation.

Potentially less support

and commitment.

Proposed changes may be resisted.

Unlikely to achieve buy-in

without a crisis.

A Communications Plan

Stakeholder Management (Internal and external)

Map who will be in which box and adapt comms:

Positive

Neutral

Negative

Low High Level of influence/Power

PRIORITIES

Managers training

Legal and practical considerations

What is Consultation? Employee Representatives – the nomination process and key aspects

of the role Consultative meetings

Possible outcomes after consultation process is over

The role of managers during consultation

• Business as usual Communication

121s – your role in them, the skills needed and scheduling The Transition Curve

3. Support and communication

The Transition Curve

Denial

ShockAnger & Frustration

Depression

Acceptance & Experimentation

Hope

Mor

ale

and

com

pete

nce

Time

Communication Time Lag

Level of adjustment

Communication cascade Inner c

ircle

Senior

manage

ment

Middle

management

Employe

e

audience

BusinessNeeds

Assess andacquire

Identifyand

retain

DevelopDeploy

Engage

Plan for your Identified Talent

• All planning kicked in – career transition, Occupational Health

• Consultations and elections – briefs needed

• Mitigating losses – Kotter’s Short tem wins– EVERYONE offered a new role – vacancies frozen– Attractive offer– Key talent got an extra-enhanced offer– Cross site visits – discussions of options. Complete career changes

provided– Early retirement with full pension

Action!

Project Management

Project Manager

Relocation ,Recruitmentand training

Redundancy/redeploymentand Retention

Operations FinanceConsultation/ communication

Project Sponsor

• Managerial early briefing

• Announcement - Tuesday

• Involve employees early where ever possible or, at least give some control back

• The value of assessment centres in recruitment

Learnings

© Motivational Maps Limited 2014 All rights reserved.

McKinsey 7S Model

Communication Approaches

• People either:

• Relocated getting new roles, generous relocation packages, full induction, career transition for partners, etc. This was “survivor care”

• Or

• Redundancy payment with career transition. Periodically we announced landed figures

• One group asked for something different – funds for a start up

The Case

• … Did OK too!

• Full pipeline

• Became biggest and most successful area of research

• Kept much of the top talent – some in the start up

And the Company …

1) Delayering a large unionised manufacturing facility with loss of jobs. Additional losses (and reduced overtime) through process improvements and shift pattern changes. Early “burning platform” communication, union involvement and voluntary redundancy agreement. Employees working on improvement / shift pattern teams.

2) An internal reorganisation meant that departments in different locations now came under one division. The product pipeline meant one site was quiet and the other busy. New organisation design introduced matrix, cross training and careful project planning. Consultation about changed roles.

Every Situation is Different

And what works for one may not work for another

In summary Legal and project management are absolutely key

Plan long – involve the best people – and get internal sponsorship

Activity spikes when you go live – additional support frees you to communicate and reassure

Involve line managers – train in the process and key stages

Know your people - 121s have to be legally right and supportive of BAU

Do it in an emotionally intelligent way – support, empathise and communicate

Restructure, Redundancy & Change

Any Questions?

A business focused HR Director with over 15 years senior professional experience across sectors and cultures

Core capability in restructuring and transformation • conducted in all the main

functions of a company (R&D, manufacturing and commercial)

• face-to-face, UK and global• Unionised and non

unionised

Heather Whitaker