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© 2016 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited.
Sourcing IS Change ManagementApril 13, 2016
Anne M. KohlerFounding Partner, EVP & COO
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© 2016 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited.
Anne is one of the Founding Partners & COO of The Mpower Group and responsiblefor all client delivery and operations. Anne has been leading consulting andfinancial management organizations for over 25 years, and has extensiveexpertise in strategic sourcing, change management, competency based talentmanagement, organizational transformation, supply chain management, ERP, andprocess reengineering.
Before founding TMG, Anne was the SVP of Strategic Sourcing for Bank One. In thisrole, Anne created this organization from scratch and led a team of over 100professionals, internal and external staff, in developing and executing supplystrategies for all of the bank's externally purchased goods and services. Overfour years, this organization managed over $3 billion in annual spend andcontributed in excess of $1.3 billion in savings.
Before joining Bank One, Anne held CFO and Controller positions for other financialservices organizations and started her career at Ernst & Whinney as an auditmanager.
Anne has been named a “Provider Pro to Know” by Supply & Demand ChainMagazine every year since 2007 and a 2013 Top Female Supply Chain Executive
Anne is a CPA, CGMA and has an MBA in Finance from The University of Chicago
Anne M. Kohler - Bio
About TMG
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© 2016 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited.
The Mpower Group is in the business of Mpowering our clients to accelerate
Exceptional Business Outcomes by unleashing the full potential of their Supply
Chain organizations. We are a global consulting firm dedicated to serving the
needs of Fortune 500 Supply Chain organizations. We help our clients by:
– Accelerating Strategic Transformation: Rapidly move client organizations along The
Mpower Group’s Supply Chain Maturity Model to peak performance levels.
– Competency Based Talent Management: Advance the competencies of our clients’ Supply
Chain professionals to World-Class performance levels.
– Maximizing Deal Value: Help clients realize the full value from large and/or complex deals
by focusing on A) “Customer” Value Drivers before and during negotiations, and B) an
adoptable, sustainable implementation once the deal has been reached.
About The Mpower Group
The Mpower Group is a World Class Strategic Sourcing & Supply Chain consultancy thatdelivers big results with a boutique feel. We are Woman and Minority owned.
About TMG
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Our Selected Clients
Enhance Med
About TMG
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© 2016 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited.
Introduction
Moving from Tactical to Strategic
Change Management
Stakeholder Analysis
Working in Teams
Wrap-up
Agenda
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© 2016 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited.
Introduction
Use of Materials
TMG grants a limited use license to use training content as
reference materials for course attendees only. All of our
training materials are TMG Confidential Information. Taping
and presentation of classes, duplication or reuse of
materials, conduct of additional classes using the materials,
or any similar activities are strictly prohibited.
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Introduction
DiscussionsStay in the
room
Ground Rules
Stay forthe entiresession
Help keepdiscussion
focused
BePunctual
Remainengaged
Silence Means Agreement
Listento others
Be Open&
HonestNo
Stripes
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Introduction
Learning Objectives
Gain an understanding of why ChangeManagement is so critical to Strategic Sourcing
Learn how Change Management can be integratedinto your Procurement Organization.
Understand why Stakeholder Analysis is soimportant and its value as a process accelerator.
Learn how working in teams helps to increase thelikelihood of success of your Sourcingorganization
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Introduction
Opening Exercise: Five Things in Common
1. Pair up with someone you don’t know
2. In 5 minutes, write down 5 things you
have in common with your partner
3. At the end of 5 minutes, join with
another pair to form a small group of 4
4. Take another 5 minutes to find three
things your new foursome has in
common
5. Present commonalities between the
initial pairs, and within your foursome
Please make sure that thethings you have in common are
NOT obvious ones(e.g. we all have children)
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Agenda
Introduction
Moving from Tactical to Strategic
Change Management
Stakeholder Analysis
Working in Teams
Wrap-up
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© 2016 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited.
Purchasing is a…
management control point where all significant purchases aremonitored for the right authorization of the right item,
at the right price, quality, and quantity, from the right supplierat the right terms, and at the right time.
(BusinessDictionary.com)
Strategic Sourcing is a…
rigorous, fact-based decision process that improvesTotal Cost of Ownership AND Increases Internal Business Partner
Value by leveraging the Total Spend of the organization, proactivelymanaging supplier relationships, rationalizing demand, streamlining
the procurement process and focuses on their value drivers.
Tactical to Strategic
Strategic Sourcing vs. Purchasing
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Purchasing is a Reactive or Tactical
driven activity whereas
Strategic Sourcing is a
Comprehensive Process that involves
Upfront Planning and Strategic Thinking.
The Mpower Group’s Definition
Tactical to Strategic
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Trends for Procurement Organizations
Drives toward Adoption of solutions and achieving business results
Competency-Based Talent Management – creates a talent factory
Trusted Advisor – called upon to lead major company initiatives
Orchestrator/Driver of the end-to-end Supply Chain
Continuously looks for ways to capture Value beyond traditional TCO
Sits at the C Level
Procurement leads Risk Management across the enterprise
Tactical to Strategic
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Strategic Business PartnerInfluences key enterprise strategies
Process LeaderImproves efficiency of sourcing function;leverages spend, manages demand, etc.
Internal ConsultantGather requirements, analyze data, develop
strategic supplier relationships and reduce totalcost of ownership for the enterprise
Change AgentInfluence company’s capability to embrace &
capitalize on change. Align the enterprisearound the Strategic Sourcing process.
Adding Value as a Strategic Partner
Tactical to Strategic
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Sourcing Strategy
Globalization of Sourcing
Demand Management
CM Performance Metrics
Third Party Risk Management
Supply and Supplier Management
Sourcing Process
Information Management and Technology
People
Innovation
Consolidated (Overall)
TMG’s Sourcing Maturity Model
BasicSourcing
TraditionalPurchasing
ValueCreating
StrategicSourcing
IntermediateSourcing
TMG’s Sourcing Maturity Model
Illustrative
Based on Carnegie Mellon’s CMM Model
Tactical to Strategic
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SourcingStrategy
Globalizationof Sourcing
DemandManagement
PerformanceMetrics
SupplierRisk Management
• Long-term focus (3-5+ years).
• Strategic Sourcing is a vital partof the corporate strategy.
• KPI's for the company areindistinguishable fromProcurement’s KPI’s.
• Scope of Sourcing strategy isthe end-to-end Supply Chainfrom suppliers’ suppliers tocustomers’ customers
• Procurement participation isessential to corporatestrategic initiatives.
• Indispensable for new product,new market, new customer,margin enhancement ,valuedrivers, etc.
• Procurement is called upon todrive strategic planning for the
organization
• Global sourcing approach is oneof dynamic arbitrage. Country oforigin & supply base maychange several times a year.
• Global decisions are made onsophisticated topics such astaxes, tariffs, & manufacturingincentives
• Global sources provide “Blackbox” fulfillment where supplier isresponsible for design,manufacture, & logistics to endcustomers.
• Flexible plug & play sourcingmodel where the global supplychain is aligned arounddistribution not manufacturing
• Pull model where suppliersproduce & ship based ondemand signals. Suppliers self-manage raw/WIP material & use
postponement to provide almostinstantaneous manufacture.
• Managing a global supply baseis a core competence.
• Lead-time is almost all logistics
• Stakeholders haveintegrated demandmanagement into theirday-to-day business
• New business is beinggained based on theinterchange-ability &standardization of parts
• Design reuse leads toaccelerated productdevelopment
• Procurement is driving theS&OP process
• Procurement is involvedwith returns processing /product obsolescence
• Next generation metrics are inplace to capture customer &supplier satisfaction,profitability, quality, & value.
• Metrics are designed around2nd order effects aremeasured such as reductionin working capital, marginenhancement, market shareimprovement.
• Sourcing adopts a “value at risk”approach to risk metrics
• Sourcing is benchmarkingagainst best practice processleaders in other unrelatedindustries.
• Sourcing may estimate pro-forma metrics for its competition
• Sourcing is globally renownedfor achieving outsized metric
results
• “Black swan” modeling tolink remote events thatcould severelycompound & affect theorganization
• Frequent modeling ofsecond & third order effectsof marketplace events
• Risk redundancy isregularly tested byswitching suppliers,specifications, & sourcesof supply.
• Company routinelyoutperforms peer groupunder various supply &marketplace shocks
• Surety of supply is part ofthe corporate riskmanagement plan
Maturity Model: Value Creating
Illustrative
Tactical to Strategic
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Supplier & SupplyManagement
SourcingProcess
InformationManagement& Technology
People Innovation
• Suppliers segmented &managed as a portfolio
• Suppliers assist withsales calls
• Regular feedbackgiven, continuousimprovementstrategies in place, jointplanning with suppliers
• Scorecards are in place& utilized to ensuremutual profitability
• Partnering, formalrelationship mgmt.process
• Open financials & jointscorecard drive to sharedbenefits
• Suppliers are proactivelyused to help reshapeyour business
• You are considered to bea “customer of choice”with your supply base
• Sourcing process iscontinually enhancedthrough innovation
• The Sourcing process isleading edge acrossindustries
• Deals are complex innature & outsourcing isa core competency.
• Supplier/Buyerprocesses are linked
• Considered to be thoughtleaders & are sustainingexcellence in in-sourcing,outsourcing & expensemgmt.
• Should - cost and targetcosting is a standard
• Value based sourcing isrequired across allcategories
• Viewed as a leader & model foreffective use & implementation
• Approached by technology suppliersfor new product partnershipopportunities
• Technology improves efficiency. ERP,eP, sourcing, supply chain, softwareintegrated
• Fully documented ROI’s- case studydescribing benefits fromintegration./implementation
• A leader in ADOPTION of technologywithin the company
• Data analysis/mining leads tobreakthroughs in quality, delivery, cost& risk management
• Transactional data transparency allowsbooks to be closed ad-hoc to generatereal-time financial performance metrics
• Competitive business advantage liesnot in the purchase of technology(which is able to copied) but ratherin the integration of businessprocesses to eliminate waste &manual intervention.
• IT leadership is viewed as a keysupply chain ally & vice versa
• Sourcing leader is a “C”level executive
• Sourcing organization isconsidered to be acompetitive weapon
• External customers viewthe Sourcing / SupplyChain organization as acompetitive advantage
• Resources are viewed asstrong internalconsultants & changeagents - begin beingasked to lead othergroups within theorganization
• Procurement is theorganization that is going tomove your career forward
• C level executives arerequired to have a stint inProcurement
• Competency based talentmanagement is the norm
• Innovation contribution is aProcurement evaluationmetric
• Company acceptssolutions that increasecost but generateoffsetting increments ofvalue
• New patents are issuedjointly to supplier /company partnerships
• Focus on transformationalvs. incrementaldevelopment models
• Sourcing routinelyidentifies, introduces &evaluates newtechnology & businessdelivery conceptsstemming from unrelatedindustries, cultures, &geographies
• Significant companyfocus on obsolescingcurrent equipment withnew & improved models.Sourcing innovation iscrucial to this process
Illustrative
Maturity Model: Value Creating
Tactical to Strategic
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What Are Your Current Challenges?
•
•
•
•
•
•
•
•
•
•
Tactical to Strategic
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The Focus of Most Strategic Sourcing Initiatives IsEXTERNAL
Typical Sourcing Focus
• Reducing Prices
• Supplier Selection
• Negotiations
Tactical to Strategic
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• Complex cultural dynamics
• Political maneuvering
• Inertia favors status quo
• Hesitant to give up perceivedpower
• Narrowly focused decisionmaking
• Process changes
• Organizational changes
• Changing attitudes aboutsuppliers
The Greatest . . . . . . . .
Challenges
areINTERNAL!!
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Tactical to Strategic
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• They can THROW OFF the entire process
• Consultants do not stress their importance
• There are real issues with departmentsprotecting their own way of doing things
• Culture / values must be attended to
Internal Issues are critical because:
In other words . . . Change is HARD!!!!
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Barriers to Forming Effective Supplier Partnerships(North America)
28
32
32
36
40
48
56Too Many Other
Competing Initiatives
Comfortable Relationships WithExisting Suppliers
Lack Of Cross-BusinessUnit Cooperation
Lack of Cross-FunctionalCooperation
Lack of Adequate Data ToSupport Analysis
Inadequate Monitoring AndControl Systems
Inadequate Experience At ManagingMajor Improvement Program
Source: A.T. Kearney CEO Global Business Study
%
%
%
%
%
%
%
Tactical to Strategic
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Exercise
Win as Much as You Can
Tactical to Strategic
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Agenda
Introduction
Moving from Tactical to Strategic
Change Management
Stakeholder Analysis
Working in Teams
Wrap-up
24
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Video
Change is Good . . . You Go First21 Ways to Inspire Change
Change Management
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Do Any of these Sound Familiar?
• Don’t go beyond “low hanging fruit”Results
• At cost of long-term value creationFocus on short-term results
• Conflict with internal functions and suppliersSourcing process
• Stifles innovation and value creationCost focus
• Reinforce “the old way”Metrics
• Has been delivered; is NOT being usedTraining
• Not being utilized as plannedNew technologies
• Still have limited span of controlSourcing and Supply Chain
Change Management
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More Effective Supply Base
• Strategic Approach
• Total Cost Focus
• Procurement BestPractices
Companies Have Made Huge Investments in Best Practicesto Elevate the Role of Procurement
….With Promises of Competitive AdvantageAnd Exceptional Business Results
Technology
People
Process StrategyTools andTemplates
Processes
Organization Talent
Technology
ExceptionalBusinessResults
Gap
Intensive Training
• Process
• Tools & Templates
• Technology
Improved Talent & Skills
• Best Resources
• Improved Processes
• Superior “Functional”skills
Foundation
Change Management
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Clearly, the Foundation (Consonants) is not enough….wemust also have the Vowels (AEIOU)
Technology
People
Process StrategyTools andTemplates
Processes
Organization Talent
Technology
ExceptionalBusinessResultsFoundation
Adoption / Implementation
Learning
Alignment
Information
LearningEnvironment
Coaching &Mentoring
DecisionProcess
BusinessAlignment
ChangeManagement
VisibilityMetrics/
ReportingKnowledge
Management
Alignment Execution Implementation Optimization Utilization
Change Management
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Sourcing Process
Tools & Templates
Talent Management
Technology
ExecutiveSupport
HigherExpectations
LearningEnvironment
Metricsaligned withthe Business
NewRole
StrategicCompetencies
AdoptionFocused
Context Always Trumps Content
Change Management
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Definition
Change management is an organized, systematic application of
the knowledge, tools and resources of change that provides
organizations with a key process to achieve their business results.
Effective change management must bring the organizational and people
sides of change together in order to increase the speed of
implementation and thereby insure the realization of business benefits.
Change Management
30
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10 Reasons Why Change Efforts Fail
Lack of a clear vision
Decision processes not clearly defined
Failure to deliver early, tangible results
Everything is high priority
Old performance measures block change
The voice of the customer is absent
“What’s in it for me” is unclear
Sr. management wants to help - doesn’t know how
Same old horses, same old glue
Lack of a clear requirement to change
Change Management
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What is the best kept secretabout Strategic Sourcing?
The Best Kept Secret
It’s all aboutChange
Management!
Change Management
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What is needed:
• Support from senior management• Strong leadership to sell the process throughout the organization
Purpose:
• Establish a positive and constructive climate that will lead to themost successful outcome
• Develop support for Sourcing within the Procurement organization• Develop support from outside the Procurement organization to pull
individual projects along to completion• Communicate strategic sourcing success and status
Purpose
Change Management
33
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Success Requires a Change in Context as well as Content
The Enterprise
Organization
StrategicSourcing
Organization
Context ALWAYS Trumps Content
The ProcurementOrganizationwill need to“push” the
sourcing processout into theEnterprise.
Sourcingalso needs to
adopt techniquesto ensurethere is a
“pull” created.
Change Management
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TIME
EF
FO
RT
Change Management
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• Do we havereporting andreward systemsin place?
• Can we holdleadersaccountableto lead?
• Are wemonitoring,recognizing andrewardingalignment?
• Do we have atraining /development planin place for theorganization?
• Have we providedthem a toolkit?
• Can we ensurenew tools andskills are applied?
• Have we identifiedthe right people?
• Do they knowwhat is expectedof them?
• Do they know“how” to play theirroles?
• Have youestablished cleargoals / linkages tobusiness results?
• Do we have achange strategy?
• How will we getthere?
• What are the risksand mitigationStrategies?
• What is goingto change?
• Why do weneed change?
• What is theurgency tochange?
• Who are the keystakeholders andwhat is theirmotivation?
• Do we have seniorexecutive support?
• What will be thecritical successfactors?
Mobilizethe
Change
Positionthe
Change
Operationalizethe Change
WhoCauses the
Change
Enable theOrganization
Reinforcethe Change
CreateBurning
Platform -Selling the
Change
Work inTeams
ProjectLaunch
StakeholderAnalysis
Communication
Plan
LeadingChange
Sponsorship /Governance
ManagingResistance to
Change
Principles
RiskManagement
RACI Charts
Collaboration
DecisionMaking
Training /Adoption
ManagingConflict
PerformanceMetrics
Change Management Framework
Change Management
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Agenda
Introduction
Moving from Tactical to Strategic
Change Management
Stakeholder Analysis
Working in Teams
Wrap-up
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• Do we havereporting andreward systemsin place?
• Can we holdleadersaccountableto lead?
• Are wemonitoring,recognizing andrewardingalignment?
• Do we have atraining /development planin place for theorganization?
• Have we providedthem a toolkit?
• Can we ensurenew tools andskills are applied?
• Have we identifiedthe right people?
• Do they knowwhat is expectedof them?
• Do they know“how” to play theirroles?
• Have youestablished cleargoals / linkages tobusiness results?
• Do we have achange strategy?
• How will we getthere?
• What are the risksand mitigationStrategies?
• What is goingto change?
• Why do weneed change?
• What is theurgency tochange?
• Who are the keystakeholders andwhat is theirmotivation?
• Do we have seniorexecutive support?
• What will be thecritical successfactors?
Mobilizethe
Change
Positionthe
Change
Operationalizethe Change
WhoCauses the
Change
Enable theOrganization
Reinforcethe Change
CreateBurning
Platform -Selling the
Change
Work inTeams
ProjectLaunch
StakeholderAnalysis
Communication
Plan
LeadingChange
Sponsorship /Governance
ManagingResistance to
Change
Principles
RiskManagement
RACI Charts
Collaboration
DecisionMaking
Training /Adoption
ManagingConflict
PerformanceMetrics
Change Management Framework
Stakeholder Analysis
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Stakeholder Analysis – Why Important?
• Understanding of which individuals have a personal
interest
• Allows you to categorize stakeholders and involve them
early
• Helps you understand level of
commitment/support/resistance by individual
• Helps you begin to address resistance before it hardens
• Allows you to build the appropriate level of commitment by
individual
• Will be the foundation for your selling/communication plan
• Can be used to develop your decision models
Stakeholder Analysis
39
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Definition of a Stakeholder
Any group or individual who can affect or
be affected by the change or
the initiative and/or has a personal interest.
Who are some potential stakeholders?
Stakeholder Analysis
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Key Questions
How do we identify key stakeholders?
How do we involve them?
How do we assess their position and impacton the change / initiative?
What are their motivations?
How do we influence and manage them?
How, what and when do we communicate tothem?
Stakeholder Analysis
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Stakeholder Mapping Process
Identify stakeholders, including title/positionand business unit
Assign decision making roles to stakeholders
Determine current level of commitment(from Strongly Against to Strongly Supportive)
Identify desired level of commitment you needfrom them
Create action plan to move the stakeholder tothe desired position
Stakeholder Analysis
42
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Stakeholder Analysis Template
Stakeholder Analysis
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Decision Making Roles
Role Definition
Sponsor
• Individual designated as the overall leader of the project / change
• Legitimize a project / change through their active, “visible” support
• Allocate resources to ensure success
Champion
• Strong supporter who will help sell the project / change
• Wants the change and attempts to obtain commitment from others
• Requires sponsorship
ChangeAgent
• Plays a key role in preparing for and bringing about change in theorganization
• Drives the project / change through their visible ownership
Target
• Stakeholder whose support has yet to be obtained or confirmed
• Affected by the project / change and may be the focus of the effort
• Plays a key role in achieving and sustaining the goals of the project
• Initial response tends to be more negative than positive
Stakeholder Analysis
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Stakeholder Analysis - Commitment Levels
Strongly Against• Vocal/visible opposition to all aspects (nature, content, desired outcome, etc.) of the project / change
effort
• Actively blocks or resists efforts to initiate or make progress with project / change effort
• Engages others in trying to block the change
Moderately Against• Voices concern over certain aspects of the project / change effort
• Offers alternatives that would make the project / change effort acceptable
• Can be passively working “behind the scenes” to stall the change
Neutral• Does not take a stand in support or opposition of the project / change effort
• May not have enough information to take a stand one way or another
Moderately Supportive• Displays commitment to the goals of the project / change effort
• Actively seeks to move the project / change effort forward through testing new ideas, concepts, andimplications
Strongly Supportive• Embraces the project / change effort and positions it as an accepted means of operating
• Personally takes ownership of the project / change effort and actively displays that ownership andsupport
Stakeholder Analysis
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Moving Stakeholder to More Favorable Position
• Commission strong supporters to champion effort
• Use Executives to create alignment and buy-in
• Continuous communications regarding successes
StronglyAgainst
• Discuss alternatives to mitigate concerns
• Use team members to create alignment and buy-in
• Periodic communications regarding successes
ModeratelyAgainst
• Show how their support will enhance success
• Use other supporters to create alignment and buy-in
• Ad hoc communications regarding successes
Neutral
ModeratelySupportive
ORStrongly
Supportive
Use Advocates to “Sell” the Change!
Stakeholder Analysis
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When is a Hamburger NOT just a Hamburger . . .
Hamburger
TCO Value
• Best PriceEvaluation
• Recruiting
• Product Quality• QOWL(Quality ofWork Life)
• AggressiveNegotiation
• EmployeeRetention
• RationalizeSupply Base
• Value > Cost
Business owners place more importance on “Value” than Cost
Client Example
Stakeholder Analysis
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CostManagement
StakeholderIdentification &Communications
Return onInvestment
CompetitiveAnalysis
StrategicPlanning
RelationshipManagement
LeadGeneration
Differentiation
IndustryAwareness
BrandManagement
SalesSupport
CustomerLife Cycle
Management
Examples of Business Intent – CRM Example
CIO, CPO, CFO, ETC…
Others
Key
a
a
a
b
C
b
bb
C
C
b
C
C
C
b
CMO
Traditional IT Focus
Stakeholder Focus (Sales)
Next Practice Focus (CMO)
Stakeholder Analysis
48
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Fundamentals of Value (Business Intent)
• Non-NegotiableCustomer Defined
• Non-QuantifiableOpaque
• Functional, Economic, PsychologicalMulti Dimensional
• Cost - ValueTrade Off
Contextual
Relative
Mind Set
Defined by How it is Used
Compared to Alternatives
Based on a Belief
By: Professor Mohanbir Sawhney)
Stakeholder Analysis
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Client Example: Real Business Intent
Faculty• Real time student KPI
& predictors• Shorter courseware
development times
Academics• Strategic options• Real time curriculum
analysis
Technology• Lower support cost• Focus on innovation
instead of break/fix
Finance• More granular view of
value drivers• More accurate costing
Students• Adaptive experience• Immersive experience• Failure proof
Partners• Single platform to
service• One set of ABC
standards
Employers• Track skill set acquisition
via custom report cards• Partner on course and
curriculum items
Enrollment Growth and Marketing• Better market positions• Better testimonials
Course of theFuture
Buy BooksCheaper
Don’t BuyBooksat All
Stakeholder Analysis
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• What you ask (outside / in perspective)
• Who you talk to (define “customer” differently)
• How you engage your “customer” / supplier
• The metrics that drive/measure success
Value Influence Power
• When you realize benefits (define “success” differently)
Focusing on Business Intent dramatically changes:
Stakeholder Analysis
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Exercise – Identifying Stakeholders & Their Business Intent
1. Break out into work teams
2. Select a category from the list provided by
the instructor
3. Using flip chart please identify a total of
five (5) non-traditional stakeholders
4. Then determine each stakeholders
business intent – please flip chart this as
well
5. Be prepared to present your results to the
entire group.
Stakeholder Analysis
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Agenda
Introduction
Moving from Tactical to Strategic
Change Management
Stakeholder Analysis
Working in Teams
Wrap-up
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• Do we havereporting andreward systemsin place?
• Can we holdleadersaccountableto lead?
• Are wemonitoring,recognizing andrewardingalignment?
• Do we have atraining /development planin place for theorganization?
• Have we providedthem a toolkit?
• Can we ensurenew tools andskills are applied?
• Have we identifiedthe right people?
• Do they knowwhat is expectedof them?
• Do they know“how” to play theirroles?
• Have youestablished cleargoals / linkages tobusiness results?
• Do we have achange strategy?
• How will we getthere?
• What are the risksand mitigationStrategies?
• What is goingto change?
• Why do weneed change?
• What is theurgency tochange?
• Who are the keystakeholders andwhat is theirmotivation?
• Do we have seniorexecutive support?
• What will be thecritical successfactors?
Mobilizethe
Change
Positionthe
Change
Operationalizethe Change
WhoCauses the
Change
Enable theOrganization
Reinforcethe Change
CreateBurning
Platform -Selling the
Change
Work inTeams
ProjectLaunch
StakeholderAnalysis
Communication
Plan
LeadingChange
Sponsorship /Governance
ManagingResistance to
Change
Principles
RiskManagement
RACI Charts
Collaboration
DecisionMaking
Training /Adoption
ManagingConflict
PerformanceMetrics
Change Management Framework
Working in Teams
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A cross functional/cross organizational team is formed becauseinput is required and “valued” from various sources
Strategic Sourcing is most successfulthrough working in teams
Teaming can be one of the mostpowerful ways of getting work done
The best teams are those thathave members with different skills
Valuing and exploring the differences ofthe team members is critical to success
Teaming Supports Strategic Sourcing
55
Working in Teams
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Groups vs. Teams
Belief thatworking together
leads to betterresults
Dependent onone another
Accountable as asingle unit
Unique skillsblended withshared skills
Working in Teams
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Stages of Team Formation
Adjourning
Forming
Norming
Performing
Storming
Time
Matu
rity
Working in Teams
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Attributes of Successful Teams
Successful TeamsVision
Clear Roles andResponsibilities
EffectiveLeadership
EffectiveCommunication
CelebratingDifferences
Integrity
JointGoals
Shared Values
Working in Teams
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MutualRespect
Sharing Power
Cooperation vs.Competition
ConstructiveConflict
Synergy/Combined
Effort
ContinuousImprovement
Depending onOne Another
CreativeThinking
Successful Teams
Attributes of Successful Teams
Working in Teams
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Common Themes from the Models (Kotter: Organizational Dynamics Model,
McKinsey: 7-S Model, Galbraith: Star Model, Blake / Mouton Grid)
Vision, culture and climate are the background for all organizational components
External Stakeholders are Key Success Factors
Ignore Financial Management at your own peril!
Leadership must take responsibility for managing boundaries
Feedback is critical and must include performance at the boundaries
The external environment is the foundation on which success is built
Operational plans must account for INTENDED CONSEQUENCES(or business result) not just the work to be done
Working in Teams
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Change in any one area impacts all other areas REGARDLESS
Information, communication, and decision making are Key Success Factors
The “soft” areas (Learning Environment, Alignment, etc.) are as importantas the “hard” areas (Technology, Processes, etc.)
Key organizational processes must be aligned, mutually supportive, andmanaged consistently
Success requires a ‘Burning Platform’ to rally behind
Employees are the most important asset
Across all the models, Boundary Management is THE critical issue
Common Themes from the Models (continued)
Working in Teams
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Team Members Roles – Leader
• “Owns” team meetings – sets theobjective
• Assures the team contains the right teammembers / meeting participants
• Provides support , information andresources
• Sets the tone - is the role model
• Encourages creativity
• Facilitates decision process
• May sometimes assume the role offacilitator
This role can be rotational by meeting or duringdifferent parts of the process
Working in Teams
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Team Members Roles – Facilitator
• Guides the meeting process
• Make it “safe” for everyone toparticipate
• Harness group activity
• Record group ideas and decisions
• Acts as timekeeper
• Brings team back on-track whenneeded
This role should be assumed by a team member butcan be a third party
Working in Teams
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Team Members Roles – Keeper of the Team
• Keeps the team functioning at anoptimal level
• Focuses on how the team isinteracting
• Ensures the team is following it’smeeting ground rules
• Ensures the team is adhering to it’sprinciples
• Procures appropriate intervention /training where necessary
Working in Teams
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Team Members Roles
Keeping of the Linkages
• Manages external linkages for the team
• Acts as a liaison – relaying information in& out
• Manages stakeholder relationships
Keeper of the Boundary
• Manages issues outside the boundary ofthe team
• Negotiates external fiefdom issues
• Resolves external conflicts
• Very often played by the team Sponsorexternal
Working in Teams
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Develop Team “Rules of the Road”
• Similar to ground rules
• Establishes working norms for the team
• Obtain agreement from all team
members
• Violation of rules should have
consequences
• Seek out issues/concerns/risks
Working in Teams
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“Real” work is done by all members of the sourcingteam
The whole team is responsible for the “whole”deliverable
Team Principles
Client Example
How we work together is as important as what we do
“Team process” is part of the work of the team
Respect each others differences
There will be recognition and consequences forboth outstanding and inadequate behavior
Team “Rules of the Road”
Working in Teams
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High Performance Work Teams in Action
Normally 20% of Fortune 1,000 companies are profitable growingcompanies but about 50% of the Fortune 1,000 companies thatemploy best team practices are profitable growing companies
– Cut development time for critical products from two years to one
– Cut service glitches (incorrect bills and lost packages) by 13% in one year
– “At P&G there are well over two decades of comparisons of results -- side by
side -- between enlightened work systems and those I call traditional. It is
absolutely clear that the new work systems work better -- a lot better.”
Charles Eberle, a former Vice President of Procter & Gamble
– 75% less worker hours lost to scrap, 42% fewer defects per worker and 17%
higher productivity
Working in Teams
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Exercise
Lost at Sea
Working in Teams
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Agenda
Introduction
Moving from Tactical to Strategic
Change Management
Stakeholder Analysis
Working in Teams
Wrap-up
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