Presentation

“ Change
a ge has
as a co
considerable
s de ab e psyc
psychological
o og ca impact
pac
on the human mind. To the fearful it is threatening
because is means that things may get worse. To the
h
hopeful
f l it
i is
i encouraging
i because
b
things
hi
may get
better. To the confident it is inspiring because the
challenge exists to make things better.
better.”
‐ King Whitney Jr
Q Why
Q:
Wh have
h
a Change
Ch
M
Management
t Plan
Pl in
i place?
l ?
A: Because of “CAVE” People.
“Citizens
Citizens Against Virtually Against Virtually
Everything”
Why Change Management?
‐ Manage employee resistance to change
‐ Build change competency into your organization
‐ Minimize productivity losses and adverse affects on your customers
during major changes
during major changes
‐ Avoid unnecessary turnover or loss of valued employees
‐ Increase the probability that your business changes produce the desired
results
Transforming an organization requires clearly articulated aspirations as well as the ability to generate energy and new ideas. Leaders seldom meet greater demands on their skills than they do when they embark on a major change effort. A true transformation is characterized by startlingly high ambitions, the
characterized by startlingly high ambitions, the integration of different types of change, and a prolonged effort often lasting many months and in some cases, even years. Failures: executives launch a plethora of initiatives that lack the necessary resources, scale and ambition, or executive set targets but fail to provide the sustained support needed for any
provide the sustained support needed for any long‐term improvement. Other execs focus narrowly on a single objective to the detriment of important related issues. Things to keep in mind: prerequisites:
‐ a clear understanding, at the outset, of the transformation’s
context (the organization’s capabilities and readiness to change)
‐ well‐articulated aspirations
‐ having leaders who unleash energy and ideas, rigorous process
‐ Outline
Outline clear themes whose objectives will collectively achieve
clear themes whose objectives will collectively achieve
the overall aspiration. ‐ A good transformation story bridges the gap between top
management and the rest of the organization
management and the rest of the organization. ‐ Those initiatives that fail are due to low energy levels where the
plan is not revitalized. ‐ Changes should be highly visible.
h
h ld b h hl
bl
‐ People have a remarkable appetite for difficult change when they
see a transformed version of themselves emerging from the
process.
•Informal Networks: Make use of networks. These are useful tools that flourish spontaneously in any professional setting. Formal Networks:
1.
2.
Change Agent Teams
Design the program
Identify and recruit the best team possible
Identify and recruit the best team possible Diane C. Stegmeier was honored with the Distinguished Author Award of Excellence for a Book for her entry “Innovations in Office Design: The Critical Influence Approach to Effective Work Environments,” the result of a 10‐year research study surrounding the impact of the physical space on workplace b h i Th t d
behavior. The study, which involved more than 140 organizations in 24 countries, hi h i l d
th 140
i ti
i 24
ti
resulted in her discovery of what is now known as the Critical Influence System™ —
15 tangible and intangible factors impacting workplace behavior. ‐ Transformation necessitates embracing change ‐ Architects, designers, facility execs and corporate real estate Architects designers facility execs and corporate real estate
leaders want to be engaged in change at the strategic planning – a higher
level than the norm. They want to be contributors to give input and advice and help drive the transformation.
‐ The workplace solution cannot bear 100% of the burden of transforming the way people work
transforming the way people work. ‐
The stakes at risk for failure:
‐
‐
‐
‐
Loss of productivity
Reduction of innovative outputs Loss if intellectual capital due to employee turnover
Loss if intellectual capital due to employee turnover
Reduction of competitive advantage as members of the current enterprise take jobs at the competition
‐ Decline in customer satisfaction and profitability due to reduction in external focus.
‐ In the design profession, provide: Education to the client’s leadership team on the critical influences on their workforce, Identification of specific barriers that may hinder the success of the
workplace strategy, & consultation on reducing those barriers in preparation for the workplace transformation.
15 Critical Influences:
“Key factors of Critical
Influence System: The
biggest risk is not the
change itself, rather, it is in
doing nothing to protect
the workforce from the
psychological stress that
accompanies such change.”
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Vision & Mission
Image
Rewards and Consequences
Rewards and Consequences
Organizational
Communications – storytelling, corporate myths and legends. Core Values
Leadership Behavior
Leadership Behavior
Technology
Autonomy & Authority
Performance Management
Culture
Compensation
Knowledge Management
Business Processes
Physical Workplace –“If
Physical Workplace If we think of an organization as a fish tank,
we think of an organization as a fish tank,
many efforts to improve enterprises focus on the fish and ignore the
water. The true power for change resides in the water, the
environment in which the fish live. The water is the context.” Chris
Turner
AWARENESS: a person’s understanding of the nature of change, why the change is being made and the risk of not changing. It also includes the information about the internal and external drivers that created the need for change as well as “what’s in it for me?” Lack of awareness is the #1 reason for resistance to change
reason for resistance to change.
DESIRE: represents the willingness to support and engage in a change. Desire is ultimately about personal choice, influenced by the nature of change, by an individual’s personal situation, as well as intrinsic motivators that are unique to each person. h
i
h
KNOWLEDGE: represents the information, training and education necessary to know how to change. Knowledge includes information about behaviors, processes, tools, systems, skills, job roles, and techniques that are needed to implement a change.
ABILITY: represents the realization or execution of the change. Ability is turning knowledge into action. Ability is achieved when a person or group has a demonstrated capability to implement the change at the required performance levels. REINFORCEMENT: Represents those internal and external factors that sustain a change. These could include recognition, rewards and celebrations g
p
that are tied to the realization of change. This could include a person’s satisfaction with his or her achievement or other benefits.
HOW to implement the change:
1. Training and education on skills and behaviors needed to change
2. Detailed info on how to use new processes, systems and tools
3. Understanding of the new roles and responsibilities associated with the change
the change.
Each day we use millions of gallons of water and tons of Example:
The change hotels used for “Green” Hotels Association: detergent in hotels to wash guest towels that have been g
g
used only once.(awareness)
Decide for yourself. (desire)
A towel on the rack means: “I will use it again.”A towel on A
l
h
k
“I ill
i
i ”A
l
the floor or tub means “Please exchange.” (knowledge)
By 2005, 150,000 of these appeared in hotel rooms. corporate headquarters
A Re-invent
the story
Along with their latest acquisition of
the May
y Company,
p y, Macy’s,
y , a
Fortune 50 company, found the need
to transform their headquarters into a
workplace reflective of a successful
retail company. Macy’s, (formerly
Federated Department Stores),
Stores) had
been adding new staff from other
acquisitions for awhile, and their
headquarters in downtown Cincinnati
was in need of a change. The
headquarters building had been built
in 1978, and while re-invents had
been at the forefront for their stores,
the interior of the building was tired,
departments were scattered,
scattered and it
was time for a new face.
What was really going on at Macy’s:
What was really going on at Macy
s:
1994 ‐ Federated & R H Macy & Co merged. Following the merger the reorganized Macy’s moved its headquarters to Cincinnati under the name Federated Dept Stores
2001 – Federated dissolved Stern’s in New York, absorbing them F d t d di l d St ’ i N Y k b bi th
into Macy’s East. Also acquired the Liberty House chain w/ specialty stores in Hawaii and Guam
2003 – Closed the majority of historic Davison’s franchise in Atlanta, rebranded Rich’ss in Atlanta. Rebranded Burdines in Fla, Atlanta, rebranded Rich
in Atlanta. Rebranded Burdines in Fla,
Goldsmith’s in Memphis, Lazarus in the Midwest, and Bon Marche in the Pacific Northwest.
3/6/2005 – all of the above were renamed “Macy’s”
2/28/2005 –Federated acquired May Dept Stores for $11 billion in stock, creating the nation’s second largest dept store chain with $30 billion in annual sales and more than 1,000 stores, and adding 200 people to the Cincinnati Headquarters
7/2005 – Converted 330 regional dept stores owned by May Co to Macy’ss nameplate. This included May
to Macy
nameplate This included May’ss Marshall Field
Marshall Field’ss, Famous‐Barr, Filene’s, Foley’s Hecht’s, The Jones Store, Kaufmann’s, LS Ayres, Meier & Frank, Robinsons’May & Strawbridge’s chains. This was met with negative reaction in many of the local areas because they were considered local institutions in those regions. CHANGES ‐ CHANGES ‐ CHANGES ‐ CHANGES
1/2006 – Federated divested May Co’s Lord & Taylor division 9/2006 – Macy’s operated approximately 850 stores in the US. To promote the expansion – they set off an advertising campaign of “Dancing in the Street”
2/2007, Federated announced plans to change its corporate name from Federated Dept Stores Inc to Macy’s Group, Inc. by March the company announced plans to convert its stock ticker symbol from “FD” to “M”, and adopted the name Macy’s Inc. b lf
“FD” t “M” d d t d th
M ’ I
Stores were now operated under both Macy’s and Bloomingdale’s nameplates. 2/2008 – Macy’s Inc announced consolidation of Macy’s store locations into 4 primary geographic divisions –
locations
into 4 primary geographic divisions – Macy
Macy’ss East, East
Macy’s Central, Macy’s West, & Macy’s Florida
All store divisions nationwide are also served by two administrative divisions: Macy’s Corporate Mktg & Macy’s Merchandising Group –
g
p all headquartered in New York .
q
CHANGES ‐ CHANGES ‐ CHANGES ‐ CHANGES
•
The red
Th
d Macy’s
M ’ star
t has
h been
b
around since the 1850’s when
Rowland Macy opened his
first store in New York.
York Mr.
Mr
Macy was a sea captain who
became lost at sea and
thought he was lost until a
star appeared in the skies
above him. He used that star
to steer, and it guided him
back to land. Once there, he
had a star tattooed on his arm
to keep the memory alive. He
adopted the red star as a
symbol for Macy’s and it has
been around ever since.
Working with the Leadership of Macy’s, the
opportunity for radical change began with Change
Management. Champions were initiated from each
department with a presentation of the intent for
change. Communication paths began, and Goals
were set:
Goals:
• Add +/- 200 New Associates into Macy’s Building
• Improve work communications and collaboration
• Create an environment that supports work
processes
• Reinforce Macy’s identity, branding, culture and
values.
• Bring more outside light to the interior of the
building.
• Increase the number of conference rooms and
areas for casual meetings.
• Maximize use of real estate.
• Improve flexibility to support teamwork
Project Team: Dept Heads & Champions Role ‐Work w/ Architects in Development of Dept. Plans
W k / A hit t i D l
t f D t Pl .
‐Receive & Disseminate Info. Concerning the Remodel w/in Respective
Depts. (be a cheerleader for the project).
(b
h l d f th
j t)
‐Work w/ Remodel Team to Review & Test Furniture & Furniture
Systems.
Systems
‐ Help Plan Temp. & Permanent Moves
“The Wicked Problems”
Reorganize
Departments were scattered over the 11 floors causing productivity issues There were 200
Departments were scattered over the 11 floors, causing productivity issues. There were 200 new associates from The May Company coming in from St. Louis, with no place to sit, and their integration was important to the culture. A total restack took place, defining tenants that would be phased out, and internal departments that had urgent relationships of day‐
to‐day
to
day communication and co
communication and co‐locating
locating them within the building. The message to them within the building The message to “bring
bring down the silos” rang clear.
Reinvent Over time the employees had migrated into whatever open space was available The floors
Over time, the employees had migrated into whatever open space was available. The floors were a maze of offices, and even administrative assistants had taken private offices. There were no sightlines to daylight and the fantastic views from windows. There were no workplace standards; new ones needed to be set before moving forward. Furniture product was established and mockups set on site for private offices and open plan There was a
was established and mockups set on site for private offices and open plan. There was a radical change from private office to open plan, determining that the Directors and above would have the private offices. Many were coming from the private offices into open. Change management what we did in all phases:
Change management –
what we did in all phases:
1.
Presentation/review/buy‐in with senior management.
‐Provided regular updates to senior management
P id d
l
d t t
i
t
2. Designated Change Agents – from the Management to Department Heads to the Champions.
‐Established “Champions” within all departments to send the word on the project to the masses ‐Champions were to quell the Rumor Mill.
3
3. Presentation/review of the project w/design solutions to the Department Heads and Champions
Presentation/review of the project w/design solutions to the Department Heads and Champions
‐First floor lobby information board on progress of the project
4. Furniture Systems and Private Office Mockups & Evaluations ‐Open to all ‐ designated days for viewing a. Management
g
b. Champions
p
c. All Users
5. Created a Communication Trail – Updates were posted on Insight:
•Schedule
•Move Dates
•Progress Reports by Phase
•Where the temporary locations were for each Department
• Provided regular e‐mails to associates with status of project and upcoming events.
6. Provided move training for all departments.
7. Scheduled purge dates for all departments
8 Celebrate!!!!!!
8 . Celebrate!!!!!!
elevator lobby
south
elevator lobby
south
elevator lobby
north
kitchen / pantry
department
entry
conference room
The Change Management Survival Guidelines
Make sure that Change Management is results‐oriented and easy to apply..
1. Set the Strategy
Set the Strategy
• Agree on the message. Answer “Why” & WIIFM?
• Identify Leaders and Champions
• Reach for Positive Change
2 Communicate Effectively. 2.
C
i
Eff i l
• Educate the masses. Identify and segment audience groups, determine the appropriate messages for ea audience, develop the most effective p
packaging, timing and channel for these communications, identify the g g,
g
,
y
preferred senders for ea audience. Reach the individual. • Remember the Culture. Use face‐to‐face meetings, group meetings, e‐
mail, newsletters, magazines, intranet, executive presentations, training and workshops project team presentations phone posters and
and workshops, project team presentations, phone , posters and banners, memos and letters, updated bulletins, special social events, flyers and circulars, video conf, videotapes, plasma screen display boards, tv, radio, demonstrations. Offer feedback loops to hear the Voice of the Customer.
3. Reinforce, Reward & Celebrate