Driving Change Initiatives

at
Work Place

1
SAIL Managerial Competency

2
Change Management

Definition

Appreciate and Drive Change by

influencing and gaining commitment of
People.
Key Behaviours in Change Management

• Assess the Need for Change

 
• Gains Commitment for Change
 
• Identifies and Creates enablers for successful
Implementation of Change

• Takes Actions to Sustain Change

SAIL Managerial Competency : Change Management
Key Behaviors Beginner Improving Performer Mastery Expert

Assesses the need Identifies changes Recognizes changes Identifies the change Identifies the key Proactively identifies
for change required to address required to capitalize required in people, changes required changes required
  existing problems. on opportunities. structure, after considering from trends in
technology etc. multiple environment.
  perspectives.

Gains commitment Identifies the Communicates the Involves Involves Develops a shared
for change affected benefits to the stakeholders and stakeholders vision and strategy
  stakeholders in a stakeholders provides solutions to proactively and for change in the
change initiative affected by the address their creates organization
and communicates change concerns about opportunities for
the organizational change. contribution to
need for change to change
them
 
Identifies and Identifies the Identifies change Creates coordinating Develops plans to Proactively acts on
creates enablers for critical success agents and their mechanisms to overcome hurdles in potential obstacles in
successful factors for roles for support the change implementation a change initiative.
implementation of implementing implementing initiatives.
change change change initiatives

Takes actions to Identifies new Takes initiative to Effectively monitors Establishes routines Takes initiatives to
sustain change actions and reinforce desired and review to and procedures to build a culture of
behaviours for actions and prevent regression. make the change a change at workplace
Driving Change involves

 Necessity of change in a dynamic business

environment
 Preparing people for change through communication
 Ensuring involvement and commitment of people in
the change process
 Management tools and techniques for implementing
change
 Reorienting mindset for initiating change
 Leading for effective implementation of change
6
Sources of Resistances
( in formulation stage of change)

 Assumption
 Attitude
 Perception
 Communication Barrier
 Cost of Change
 Past Failures
 Different interest among Employees & Management
 Lack of Creative response
 Low Motivation
 Inadequate Strategic Vision7
Sources of Resistances
( in implementation stage of change)

 Departmental Politics
 Deep rooted individual values
 Leadership styles
 Collective action problems
 Capabilities gap
 Love Routines

8
Driving Change Initiatives
at
Work Place

- Example
Change Initiatives involved in Performance Improvement

 Role of Communication
 Importance of Performance analysis
 Importance of developing systems for
sustained performance
 Importance Vision, Empowerment and culture
building in sustaining a high performance
ethic
10
Reorienting of Tasks, Structure, Technology and People RMMP
( Leavitts Harold Diamond Model, 1964 )

People
•Process of engagement through communication exercises and
communication calendar
•Creating a shared vision e.g. “Centres of excellence”
•Use of external consultants to channelize energy and ideas
•Crafting an identity through sports events

Tasks
•Higher production with same level of workforce.
•Multi skilling and redeploy ability anywhere in the department
11
Reorienting of Tasks, Structure, Technology and People RMMP
Technology
• Use of suggestions scheme and small group improvements for
operational innovations
• Use of Russian Experts
• Removal of automation system when infeasible and then
installation of the same when it became feasible

Structure
•Overall Line In charge
•Transfers between sections
•Non-executives as shift in charges
Thank you

13
Change Initiatives of RMMP for Performance Improvement
1. Engagement with People to build trust
•Communication Exercise
•Welfare measures
•Common Prayer

2. Communication of Intent
•Zero Tolerance of indiscipline
•Intensification of Communication
•Modification of incentive structure

3. Engagement with Technological Process

•Suggestions scheme
•Use of Russian Experts
•Hiring of consultants

4. Leveraging the key performance driver

•Housekeeping - Centers of excellence
Change Initiatives of RMMP for Performance Improvement
5. Complementing Shared Vision with Empowerment
•Centers of excellence
•Empowerment of non-executives
•Creative use of reward schemes

6. Breaking internal barriers

•Inter-functional transfers
•Overall line in charges

7. Embedding performance through systems

•Structured systems of meetings
•Communication Calendar
•Regular review of suggestions

8. Embedding winning attitude in culture

•Highlighting the heroes
•Creating a sense of identity even in sports events
The Business System Diamond
Business Process

Jobs & Structures Value & Beliefs

Management and
Measurement System

Change of Business Process (Reengineering)

calls for Changes in other three aspects of Diamond.
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Four Key Words in Reorientation

1. Fundamental
Asking basic question- Why do we do, what do we do?
2. Radical
Getting to the roots of the things, not making superficial changes
3. Dramatic
Quantum leaps in performance
4. Process
Business process is collection of activities that takes one or more
kinds of input and creates an output that is of value to customers

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TYPES OF CHANGE

With same market,

Linear Change production or business

Takes part in an industry

Geometric Change or market change

Company makes a move

Quantum Change to extend its core business

A company completely
Metamorphosis remakes itself
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FORD
(Bills Payable System)

VENDOR
Purchase Order
PURCHASE

Copy of
Purchase
Order
Goods Received

Reconcile/ Invoice
Correspond
Payment

500 people taking19 6 weeks to do it

FORD
(Reengineered System)

Purchase Order VENDOR

PURCHASE

Goods Received
Intimation

Integrated
Database Payment Order
“No need for a bill, Pay on receipt of goods”
150 people doing
20 it in one week
Reorienting Management Process

 We pay when we receive the invoice

 We pay when we receive the goods
 We pay when we use the goods
 Every time a truck comes off the line with a set
of your brakes on it, we’ll mail you a cheque
 Cheque will be sent when we do not receive any
complaint within six month from our customer
OTHER APPROACHES
•Reengineering Automation
(Efficient Way of Doing)

•Reengineering Software Engineering

(Computerised System for Processes)

•Reengineering Restructuring or Downsizing

(Doing More with Less)
•Reengineering Reorganising, Delayering or
Flattening an organisation

Reengineering is the search for new models of organising work

22
To increase Normalising Capability of Plate Mill, RSP from
Existing Level of 1,000T to 10,000T PM
Issue: High Demand – 10,000T PM
Existing Furnace – Low output, Frequent Breakdown, inherent design
deficiency
Changes thought
Revamping of old Normalising Fce. Or a new Normalising Fce.
Changes Implemented - A new normalising furnace
Need - Sense of urgency
- To bring as fast as possible
Action Taken
- Feasibility and in-principle sanction
- Design through in house
- Shop fabrication etc
- Procurement of bought out items
- Civil foundations, Control room, Piping, Eqpt. erections, Refractories,
Instrumentation, Electricals by respective deptt.
- Trial run & commissioning
- SOP, SMP & Manuals
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To increase Normalising Capability of Plate Mill/ RSP from
Existing Level of 1,000T to 10,000T PM

Process
Most effective control and coordination of Project
Zero accident
Benefits
 Increase in Special Steel Production
 Increase in NSR
 Project commissioned in shortest possible time from
conception to commissioning – February 2005 to March
2006 – 13 months
 Best utilisation of inhouse resources
 Low cost project
Reduction of Payment Lead Time
Problem
 Cash crunch up to 2003
 Pay thro’ steel credit mostly
 Payment lead time 40 – 60 days
 Co’s image at stake
Issues Involved
 No. of bills
2000 Nos/ Month – SB
1200 Nos/ Month – OB&A, Handled manually
 Bill pending report not available
 Inadequate computerisation
 Procedure not up-dated & adequate
 GARN & A/T not received in time
 Manpower constraint
 Big crowd everyday
 Many documents required for bill passing
 High return of bills
 Suppliers & contractors unhappy
Reduction of Payment Lead Time
Steps Taken
 Formation of cross-functional team
 Discussion with HOF & HOMM & HODs
 Discussion with employees involved
 Discussion with SSI Association, Contractor Association &
Chambers of Commerce
 Identification of process bottlenecks, reasons for delay
 Analysis of suggestions given by cross functional team,
employees & Association
 Analysis of bill passing system
 Top to bottom & bottom to top approach
Changes Implemented
 Remove unnecessary checking of Documents
 A/T to specify Documents required for payment
 Online bill regn. & issue of receipt to suppliers
 Asstt. Wise/ officer-wise list of26pending bill
Reduction of Payment Lead Time
 Physical copy of GARN dispensed with
 Bill payment procedure modified
 Check list given to deptt.
 Interaction with deptt in identification of reasons of delay
 Weekly meeting with MM in settling issues in payment
 Adequate PCs made available
 Computer training To employees
Result
 Bill payment lead time reduced from 60 days to –
15 days for SSIs, 21 days for others
Return of bills reduced from 15% to 8%
Further Steps Taken
 Selective e-Payment started
 Cheque preparation on same day
 Bill passing section managed mostly by Executives
Going to achieve payment lead time to 7 days.
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Process Audit for Future Growth
Five Process Enablers
* Design: Comprehensiveness of specification
* Performance: Skills and knowledge of people who execute the process
* Owner: A senior executive responsible for process and its result
* Infrastructure: Information and management systems that support process
*Metrics: Measures to track the process’s performance

Four Enterprise Capabilities

* Leadership- Senior executive who support the creation of the processes
* Culture – The values of customer focus, teamwork, personal accountability, and
willingness to change
* Expertise – Skills in, and methodology for, process redesign
* Governance – Mechanisms for managing complex projects and change initiatives

The Process Audit- Michael Hammer,

28 HBR, April 2007, pp.111-123