Final Group Assignment Billy Evon Mark Clement Paul

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Information about Final Group Assignment Billy Evon Mark Clement Paul

Published on July 5, 2009

Author: paulmcleay



MBA Managing Change second assignment


What "At Hawker Britton, we understand government - its figures, policies and priorities. We work with businesses to get government to work with them. Experience is our calling card. Getting results for business is our business." -- Bruce Hawker



Who Justin Di Lollo BA (Hons), MBA Director General Manager

Why Our people We are always seeking the best and the brightest. Up and coming talent, future stars, inspired leaders, great innovators, team motivators, highly disciplined producers and multi-skilled project managers. We place a premium on diversity. We seek out original thinkers. We reward innovation. We recognise potential. We value a commitment to excellence, no matter how challenging the brief.

The Change • Integrating HB’s business processes with STW • Formalising process

Change Agent “They made it clear they wanted changes, but they wanted us to do it ourselves.”

Roles Played

Change Process – Fishbone Assessing Readiness Roles of Competencies for change Change Agent Build readiness Trigger for changes Roles played attributes - internal/employee event-sale Consultation - change strategist mechanisms Belief in need for - change implementor shadow change Planning The change Rotem framework Change agent Integration of HB with STW Manager v. leader Scoping Leadership style Diagnosis Resistance to change Prescription -Kanter Implementation Change Process

Scoping and Diagnosis “Don’t get me wrong, our people around the country were great lobbyists, but had no idea whether they were adding value to the company or not, they did not even know if their office was profitable or not.” Justin Di Lollo, Interview

The light and shadow in organisations Organisation charts Organisation mission statements Spans of control Job definitions and descriptions Production efficiency Policies and and effectiveness procedures THE LIGHT measures Emotional feelings, Personal needs and desires animosities and friendships Effective THE SHADOW relationships Grapevines ORGANISATION between managers and subordinates Group norms and sentiments Personal and group goals and perceptions Informal leaders Prestige and power structure

Prescription • “First, we established an alignment of their personal remuneration with work outputs. • • Second, the visibility between offices was very important to be able to motivate staff to achieve greater outputs, cut costs, chase bad debtors, and get the income through the door. • • We also had to bring in new systems to capture the billing process and let all of our people be able to see it, and understand it. • • We instigated monthly billing meetings to see how much work was coming in, and how much of that work was being paid. • Resistance: • This was also a challenge because some of the advisers would say , “ That is my client – not yours. Non of your business how I manage my client” However, because everyone got the same treatment, they got over that.”

Assessing Readiness for Change  Informal process adopted by Change Agent  How receptive was the organization to change?  Rotem’s ‘Readiness for change’: Current position Desire Outcome Change / Discrerancy

Assessing readiness (cont’d)  People’s belief in importance of change?  Necessary evil  moderate  People’s belief that realistic opportunities available? Acquisition – commitment of owners  high  Capacity to implement?  Financial resources  yes  Resources (Change agent well placed)  yes  Influence? Change drivers = owner  yes

Assessing readiness (cont’d)  Assessing readiness of different groups Beckhevel and Pritchard’s commitment chart Key players No Let it happen Help it Make it commitment happen happen STW (buyers) XO Owners (Sellers) O X Revenue (earners) X O Admit support X O Clients XO Change Agent XO

Building readiness for Change  Existing high readiness for change  Limited building required  Informal processes adopted to build support amongst ‘laggards’  Consultation with revenue earners & administration support to build support

Building readiness (cont’d)  Analyse using Kim & Mauborqne Factor Method Engagement Meetings with all revenue earners and admin staff to hear issues Explanation After deciding action with STW & Owners, broad objectives explained to laggards Expectation clarity Change Agent clarified key goals and objectives for each group – but no time frames established!  Ongoing Process

Implementation  Leadership role  Management v leadership (Kotter)  Mostly ‘management’ (broad direction set by STW & Owners)  Some ‘leadership’ - set agenda, identify issues  ‘Commander’ with revenue earners & admin staff  How much participation?  STW, Owners: Frequent collaboration  Revenue earner and admin staff (Dunphy): ‘Collaborative’ & ‘Incremental’ => ‘Participative Evolution’ (Moderate ‘fit’, minor adjustments, time available)

Competencies developed by change agent?  Scoping and diagnosis skills:  Operation of executive committee comprising Owners, STW and Change Agent – regular meetings for feedback and approval  Assessing and building resistance  Small size & informality of business => strong data collection, high quality data, consultation & feedback on-going – Change Agent is focal point  Starbucks = the missing link in data collection & consultation!

The Verdict  Was the change agent effective?  Apply a contingency analysis (Huy): Key Contingencies: -High readiness for change -Clear theory ‘E’ type goals -Low resistance to change -Stable operating environment -Broad discretion & authority for change agent Dramatic change Systematic change Organic change X Yes N/A

The Verdict (cont’d) => Change Agent used correct approach  So what went wrong?  Change was slow & implementation sagged  No established time-frames! No prioritisation!  The result?  Easy, low hanging fruit picked first  Hard (unpopular) changes left until last  2 years later? key stakeholders tired of change  resistance building up

2 years later - an unfinished canvas - the good, the bad and the ugly Change objective/issue Assessment Formalise the revenue earner Good incentive structure Client retainer & billing Moderate processes Establish internal accounting Good processes Formal reporting to STW Bad Reorganise strategic resources Ugly (eg move consultants to Canberra) & change culture (more inclusive, less ‘blokey’)

 Interview: Did you have a plan?  JDL: No, we probably should have. We didn’t think we needed it because it was so obvious. But, now, as we move on, it is hard to maintain the enthusiasm.

Key take away – Right Timing  Accountants  focus  own area of work  Financial crisis  became  Cost saving is Crucial  JNJ 2009 goal  do things  “fewer, better and sharper”  Current finance department structure  3 teams for financial accounting and management accounting  Organization change  work more efficiently and effectively

Key take away – Right Timing Desired outcome (2 teams) Financial Accounting Management Accounting Discrepancy Actual Position (3 teams)

Take away key – Right Timing Key players No Let it happen Help it Make it commitment happen happen Finance Director XO Finance Manager X O Assistant Finance Manager 1 O X Assistant Finance Manager 2 X O Senior Accountant 1 O X Senior Accountant 2 X O Accountant 1 X O Accountant 2 X O Assistant Accountant X O Secretar X O

Key take away – Right Timing Driving Forces Restraining Forces  Qualified  Workload increase Accountants  Long working hour  High level of  Fear of rate of corporate within change work group  Clear goals & performance indicators  Encouragement from finance director

Key take away – Planning  Nadler and Nadler  Build the support of key power groups Use leader behaviour to generate support   Armenakis et Chan Kim and Mauborgne al.   Use symbols and language deliberately Define points of stabilityThe message Engagement     Create dissatisfaction Persuasive communication with the current state  Explanation  Build participation in planning and implementation change Managing participation clarity  Reward behaviour in support of change  Expectation  Provide people with the time and opportunity to disengage from the old  Develop and communicate a clear image of the future state  Use multiple leverage points  Develop transitional management structures  Collect and analyse feedback

Thank You

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