Wk 10a-OCM Proposal

7/30/2019 Wk 10a-OCM Proposal

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Why the need for changeConsultants Approach to OCM

How OCM fits into the picture

What is OCM

Workplan and Deliverables for the OCM project

Looking into the future

Organizational Change Management


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Presentation Objectives

Introduce Concept of Change ManagementOutline key aspects of Consultants OrganisationalChange Management (OCM) approach

Demonstrate how Consultants OCM approach will addvalue by supporting the broader MIS upgrade

Confirm the project scope for the OCM project

Agree on key deliverables for Phase 1 (expectedcompletion - March)


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Why the need for change?

When the rate of change outside exceeds the rate

of change inside, the end is in sight John F. Welch, Jr.

Chairman / CEOGeneral Electric Co.

PRESSURE FROM WTO

TO LIBERALISEFINANCIAL MARKETS

COMPETITION FROM

MORE ESTABLISHEDCOMMERCIAL BANKS

BANK NEGARAREQUIREMENTS

CHANGES IN CUSTOMERNEEDS, DIRECT BANKING

AND INTERNET BANKING


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Consultants Approach to OCM

Centralisation of ITinfrastructureReduce duplicationIncrease processingresponse timesReduce IT maintenance

costs Adoption of BestPractice banking

Process

PRESSURE FROM WTOTO LIBERALISE

FINANCIAL MARKETS

COMPETITION FROMMORE ESTABLISEDCOMMERCIAL BANK

BANK NEGARAS REQUIREMENTS

CHANGES IN CUSTOMERNEEDS, DIRECT BANKINGAND INTERNET BANKING


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Consultants Approach to OCM

Technology

Process


FINANCIAL MARKETS




Centralisation of ITinfrastructureReduce duplicationIncrease processingresponse timesReduce IT maintenance

costs Adoption of BestPractice banking

Direct BankingRBS, Financial & Treasury(Phase 1)Remittances, ATMsInternet Banking


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Consultants Approach to OCM?

PeopleTechnology

Process


FINANCIAL MARKETS




Centralisation of ITinfrastructureReduce duplicationIncrease processingresponse timesReduce IT maintenancecosts

Adoption of BestPractice banking

Direct BankingRBS, Financial &Treasury (Phase 1)Remittances, ATMsInternet Banking

Resilience to changeCommitment to changeGreater skills and competencies


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How does OCM fit into the Picture?

TRAINING &DOCUMENTATION

DEPLOYMENT

USER ACCEPTANCETESTING

ITINFRASTRUCT

FUTUREIT

ENVIRONMENT

PROGRAMME MANAGEMENT OFFICE

RETAIL BANK - Analysis &

Customisation

RETAIL BANK -Data Conversion

FINANCIALSYSTEMS TREASURYEXECINFO

SYSTEM

Analysis, Customisation & Data Conversion

ORGANISATIONAL CHANGE MANAGEMENT


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Benefits of this approach

Integration with the PMO and all initiatives associated withthe MIS Upgrade Project

Greater understanding of dependencies between projects

Greater understanding of the technology and processimpact

Structured and objective approach to analysis / diagnosis

Greater co-ordination of resources


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What is Organisation Change Management?

Change Readiness Acceleration

Change Leadership Development Performance Lever Gap Analysis

Stakeholder Involvement Strategies

Culture and Values Alignment

Transition Planning and Management

Team Development

Organisational Learning

Clear and Compelling Business Casefor the Change

Engaged, Skilled Change Leadersand Sponsors

Accelerated Change Readiness

Flexible and Adaptive Workforce

Leverage Learning Capability

Focus Outcome

A structured approach that helps manage the people components duringa business transformation initiative to realise the desired outcomes


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Why the need for Change Management?

SOLUTION IDENTIFICATIONWRONG RIGHT

S O L U T I O N

I M P L E M E N T A T I O N

E F F E C T I V E

I N E F F E C T I V E

I

III

IV

II70% of

occurrences

10% of occurrences

10% of occurrences

10% of occurrences

The value of MIS Upgrade Project i s realised on ly thr oug h succ ess fu l imp lementa t ion

CellImpact on Desired

Business Objectives

I Failure

II Failure

III Failure

IV Success


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Why efforts fail

PERCEPTI ON

TECHNOLOGY INFRASTRUCTURE MANAGEMENTOF CHANGE


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Why efforts fail

PERCEPTION

TECHNOLOGY

REALITY

INFRASTRUCTURE

MANAGEMENTOF CHANGE


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Commitment versus Compliance

Commitment building costs are significantly less than thecost of:

managing post-implementation resistancecompromised implementation efforts

project failure

Pay n ow ...

or p ay la ter?


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Commitment versus Compliance

Commitment is a powerful phenomenon in transitionmanagement

Commitment generates productive behaviour without theneed for monitoring

Compliance may result in similar behaviour, but rarelygenerates initiative. Compliance strategies rely onexternal enforcement


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Detailed Workplan

Proposed Approach toOrganisational Change Management

Phase 1


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Change Readiness Assessment

What

How

Benefit

Value of Approach

Identifies key factors which may help or hinder the change process andis used to determine BIMBs readiness to change. Action plans can then

be developed to leverage strengths and minimise potential risks.

A series of one day workshops delivered to a select number of staff representing identified stakeholder groups. Surveys and other toolswill be used to identify potential risks to MIS implementation.

Action plans to address implementation issuesGreater ownership and awareness of MIS Upgrade Project

Structured approach to identify potential implementation risksConsistent application of E&Y world-wide OCM toolsObjective methods to determine potential implementation risks

Involvement of stakeholder groups throughout Bank Comparison of perceived risks across management levels and locationsComparison of perceived risks over time


17/25

Change Readiness Assessment

PowerfulBusinessCase

VisionClarity

ChangeLeadership &

Accountability

Change

SpecificCommunication

IntegratedPlanning& Teams

IncreasedChange

Capability

AlignedPerformance

& Culture

Stakeholder

Commitment

Im plementat ion Factors fo r Succ ess ...


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Communications Strategy and Plan

Value of Approach

Determines the strategies, goals, themes, messages and vehicles used tocommunicate with key stakeholders (internal and external) throughoutthe duration of the MIS Upgrade Project.

Working directly with Project Teams and Task Force staff, drawingon the results of the Change Readiness Assessment and using Consultantsmethods to identify most appropriate communications methods.

Accelerates contact, awareness, understanding and acceptance of theintended changesReduces stakeholder resistance resulting in positive action(thinking and behaviour)Greater ownership and awareness of MIS Upgrade Project

Structured approach to develop communication plans

Consistent application of Consultants world -wide OCM toolsGreater re-use of data collected during Change Readiness Assessment

What

How

Benefit


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Communications

Bui ld ing Com mitm ent Through Com mu nica t ions i s a p rocess ...

Time

PreparationPhase

AcceptancePhase

CommunicationPhase

GrudgingCompliance

FormalCompliance

GenuineCompliance

Installation InstallationInstallationCommitment/

ComplianceThreshold

DispositionThreshold

Adoption

Institutionalization

Internalization

Understandthe Change

Positive Perception

Understandthe Change

Awareness

Awareness

Awareness

I ContactNoncommitment Noncommitment Noncommitment

OC160


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Change Facilitator Network

Value of

Approach

Establishing an internal network of change champions to build awarenessand understanding of change management principles.

Network is established initially by involving client staff in a one dayworkshop to explore business change principles and concepts withinthe context of the MIS Upgrade Project.

Establishing a change infrastructure of staff who will promote the

Bank MIS Upgrade ProjectGenerating greater communication across the branch network Involvement of those most affected by the changesGreater understanding of change and their important role in the process

Structured approach to managing changeOpportunities for testing management potentialBuild on Change Readiness Assessment resultsDevelop a link to customer facing staff in the branchesOpportunities for breaking down barriers between branches

What

How

Benefit

h l


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Change Facilitator - Tips

Involve those most impacted by the changesDevelop objective method for selecting candidatesSelect staff of equivalent senioritySelect staff who are:

well regarded by their peerscrediblereliableeager to learn and be involvedopinion leaders

Do not select staff:who are perceived to be management mouthpieces

T i i M Pl


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Transition Management Plan

Value of

Approach

Incorporates data gathered during the Change Readiness Assessment,Change Facilitator workshops and communication planning stages to

produce a comprehensive roadmap addressing the human aspects of change for the duration of the project. It will also provide other peoplerelated issues which are beyond the scope of Phase 1.

Working with project managers and the Task Force to thread together allrelevant information.

Provide a Blue Print for Bank to manage change beyond March 1998Provide further issues to consider to help align business needs withdesired behaviour

Structured approach to managing changeBenefit of E&Y experience across similar IT enabled change projects

Assistance with the identification of HR issues using Consultants Organisational Alignment methodology

What

How

Benefit

L ki i h f


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STAFFING &DEPLOYMENTALIGNEDCULTURE

ORGANISATIONALSTRUCTURE

COMMUNICATION EDUCATION &DEVELOPMENT

LEADERSHIPEFFECTIVENESS

MEASUREMENT &REWARD

L ki i t th f t


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The value of Organisat ional Al ignm ent

Drives organisational behaviour needed for process,technology and culture changesCreates the environment where desired behaviours are

communicated, modelled, measured and rewardedReinforces and sustains desired behaviours over timethrough alignment of human and organisational systems

L ki g i t th f t


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Organisational

PerformanceLevers

Communication

Education & Development

Leadership Effectiveness

Organisational Structure

Measurement & Reward

Staffing and Deployment

Current State

Behaviour

Future State

Behaviour

Act without considerationof other units and their purposeWithhold information from

othersElevate issues / problemsupwards for resolution Discount all ideas not invented here Focus on own needs rather

than those of theorganisation

Work with other units toaddress problems andopportunitiesShare information with

othersTake initiative to solveproblemsSearch out and welcomenew ideasFocus on the needs of the

company, the customers andother employees

Documents

Wk 10a-OCM Proposal