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GE CHANGE MANAGEMENT(CAP)

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Information about GE CHANGE MANAGEMENT(CAP)
Business & Mgmt

Published on February 15, 2014

Author: HomerZhang

Source: slideshare.net

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CHANGE MANAGEMENT
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< Change Acceleration Process ive (CAP) ect Eff The Key to Change

Change Culture: A Continuing Journey 2005+ Lean Six Sigma Sp e e d & Qua lity Growth: 2004 I , B’s CECO R, Le a n, Cus to m e r Ce ntric , Ex e c utio n Imagination at W ork: I a g ine , So lve , Build , Le a d m • Using Change as a Strategic and ACFC (At the Customer For the Customer): 2000 Fa s te r, Be tte r, Clo s e r to the Cus to m e r Competitive Advantage Digitization: • Optimizing Change 1998 Se ll, Buy , M ke us ing Te c hno lo g ic a l To o ls a Six Sigma Quality: Effectiveness 1996 Pro d uc tivity , Sp a n, Da ta -Drive n De c is io n-M king a • Building a Culture that Make Customers W inners: G E To o l-Kit Drives Change Key Strategic Initiatives: 2003 QM*, N *, O TR*, SP*, Pro d uc tiv ity , G lo ba liz a tio n I PI 1992 Change Acceleration Process (CAP): I re a s e s uc c e s s a nd a c c e le ra te c ha ng e nc Process Improvement: Pro c e s s -m a p p ing , re -e ng ine e ring , Bulle t Tra in A p ro a c h p Productivity /Best Practices: Be nc hm a rking Ex te rna l O rg a niz a tio ns , Sha ring Be s t Pra c tic e s 1989 W ork-Out™ /Town Meetings: Em p o we rm e nt, a c tio n – Ex p e rt-Driv e n De c is io n-M king , A tio n Wo rk-O uts ™, Cus to m iz e d Wo rk-O uts ™ a c * New Product Introduction, Quick Market Intelligence, Order to Remittance, Supplier Partnership

Change Research 100% of all changes evaluated as “Successful” had a good technical solution or approach Over 98% of all changes evaluated as “Unsuccessful” also had a good technical solution or approach What is the differentiating factor between success and failure?

…From Your Change Experiences Elements of Successful Change: __________________________________________ __________________________________________ __________________________________________ Elements of Unsuccessful Change: __________________________________________ __________________________________________ __________________________________________

Effective Change Equation QxA=E Q = Qualitative/Technical Solution A = Acceptance/Engagement E = Overall Effectiveness

Lessons Learned: 2 Components to Any Change Tec Tech hnica nic al St lS trate rateg gy y Facilitative Leadership l o nal iiona zat niizat an Org a gy Org e gy l,, tura lStrat e ura trat Cullt S Cu The Challenge = Do It W S ith peed! Change initiative focused on customer needs (target)

CAP: The Basics • Provides a ‘Pilot’s Checklist’ for change leadership • A flexible non-linear model used throughout a change process • Applies strategic thinking to the influencing of others • Contains tools to help change teams identify ways to achieve behavioral change

The GE CAP Model L eading Change Creating a S hared Need S haping a Vision M obilizing Com itm m ent M aking Change L ast M onitoring P rogress CUR E S R NT TATE TR ANS ITION S TATE F uture S tate IM R P OVE S D TATE S ystem and S s tructures

CAP: A Model for Change Leading Change Having a sponsor/champion and team members who demonstrate visible, active, public commitment and support of the change. Creating A Shared Need The reason to change, whether driven by threat or opportunity, is instilled within the organization and widely shared through data, demonstration or demand. The need for change must exceed its resistance. Shaping A Vision The desired outcome of change is clear, legitimate, widely understood and shared; the vision is shaped in behavioral terms. Mobilizing Commitment There is a strong commitment from constituents to invest in the change, make it work, and demand and receive management attention; Constituents agree to change their own actions and behaviors to support the change. Making Change Last Once change is started, it endures, and learnings are transferred throughout the organization. Change is integrated with other key initiatives; early wins are encouraged to build momentum for the change. Monitoring Progress Progress is real; benchmarks set and realized; indicators established to guarantee accountability. Changing Making sure that the management practices (Staffing, Development,

Setting Up for Success “Off to a Good S tart”

W is this Important? hy SU • A "good start" is essential to long-term success • Even straightforward projects must be "scoped" to ensure attention is focused on essential elements & deliverables • Effective teams are formed through deliberate actions, starting with clarification of roles, responsibilities and expectations Time Invested up-front Pays Rich R ewards ‘Down-Stream’ Go Slow To Go Fast!

W is the Outcome? hat SU • Clear roles, responsibilities and expectations for all parties (Sponsor, Team Leader, Team Members, CAP Coach, Others) • A well-defined scope of work for the project that all parties understand and are committed to achieving • An effective project execution structure and process

Setting Up for Success: Tools SU Project Definition SCOPE: • • • • Timing Organizations Involved Processes Involved Levels Involved GOALS: • Results / Target for Project • Measurements of Success R OLES: • What is Their Role? • Who Should be on Project Team? Project Definition Tools Bounding Tools: • • • • GRPI Includes / Excludes Process Focus (SIPOC / COPIS) In the Frame / Out of the Frame Alignment Test: • 15 words • Critical Success Factors Significance Test: • On the Screen

Project Scoping Tools SU In & Out of the Frame Used For: Creating a visual picture of the elements in “Scope” (frame) and out of “Scope” for the project 15-W ord Flip Chart Used For: – Developing a Project – Definition Statement 15-W F Chart ord lip In the F e /Out of the F e F Charts ram ram lip Draw a large square "picture frame" on a flip chart (or use tape on a wall) and use this metaphor to help the team identify what falls inside the picture of their project and what falls out. This may be in terms of type and extent of end results, people impacted, time frame, product lines, sites, etc. Each team member is given a flip chart page and marker. They must write, in 15 words or less, the project definition. Post all and check for agreement. Double check all fuzzy words by circling them and asking "What does it look like?" or "How will we know it when we have it?". P OJ CT R E DE INITION F P OJ CT R E DE INITION F P OJ CT R E DE INITION F

Leading Change L eading Change Creating a S hared Need S haping a Vision M obilizing Com itm m ent M aking Change L ast M onitoring P rogress CUR E S R NT TATE TR ANS ITION S TATE IM R P OVE S D TATE S ystem and S s tructures

W is this important? hy LC • Strong, committed leadership is critical to accelerating change at all levels. • Leadership impacts all other change elements. • Change Leadership is not a part-time activity.

W is the outcome? hat LC • Visible, active and public commitment/support. • Willingness to take personal initiative and challenge the status quo. • High levels of attention to the project through the time, passion and focus given to the project by leaders at all levels. • Leaders actively modeling CAP concepts, language and tools. Successful change initiatives require strong, committed Leadership throughout the entire project life-cycle

Leading Change Model LC FOCUS /AGENDA • Enroll Others • Facilitative Leadership Skills •W W in/ in Change TIME • Planning • Behavior: “W the talk” alk Skills ENERGY /PASSION • Personal involvement • Is "known for . . . " Tim e x Fo c us / A e nd a x Ene rg y / Pa s s io n = A ntio n g tte

Leadership Assessment Tools: LC Calendar Test (Time Audit) Used For: Stimulating thinking and team discussion about the degree of attention & commitment change leaders are modeling. 1. Identify 4-5 things you feel very strongly about (at home or work). 2. Check your calendar for the last 2-3 months to see what % of your time is spent on those things you say are important to you CAP Self-Assessment Used For: Assessing current capacity to show specific competencies in each of the seven core CAP processes. Change Acceleration Process Self-Assessment Leads change Creates a shared need Shapes a vision Mobilizes commitment Makes change last Monitors progress Changes systems & structures 1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

Creating a Shared Need L eading Change Creating a S hared Need S haping a Vision M obilizing Com itm m ent M aking Change L ast M onitoring P rogress CUR E S R NT TATE TR ANS ITION S TATE IM R P OVE S D TATE S ystem and S s tructures

W is this Important? hy CSN • Forces any resistance or apathy to be addressed head-on. • Validates why the project is important and critical to do. • Builds the momentum needed to get the change initiative communicated and launched.

W is the Outcome? hat CSN • Awareness of the dissatisfaction with the current state. • A shared recognition, by both the team and key stakeholders, of the need and logic for change. • The ability to frame and communicate the need for change as a combination of threats and opportunities. Creating a Shared Need produces the ‘urgency’ to build momentum for acceptance of the change initiative

Creating a Shared Need Tools: CSN Threat /Opportunity Matrix Used For: Framing the need for change as a combination of thre a t & o p p o rtunity over the short and long term Threat If we don’t m ake this change Opportunity if we do m ake this change Three D’s Matrix Used For: – Building your case for change with evidence using data, demonstration & demand – Answers the question: “Can I prove it?” Types of Proof Data/Facts:    S hort Term Numbers / trends / statistics Graphs / Financials Benchmark / competitive data Demonstrate:    L ong Term Finding Examples Best Practices Visiting other Organizations / Panels/ Pilots/ Testimonials D emand:   Dynamic Leadership (Setting High Standards/ Accountability) Customers / Suppliers / Competition (Int. / Ext.) Examples

Shaping a Vision L eading Change Creating a S hared Need S haping a Vision M obilizing Com itm m ent M aking Change L ast M onitoring P rogress CUR E S R NT TATE TR ANS ITION S TATE IM R P OVE S D TATE S ystem and S s tructures

W is this important? hy SV • Visions paint a picture that appeals to the “head and heart” and answers the question, “Where are we heading?” • A clear statement about the future situation helps gain genuine commitment • An understandable vision helps establish the milestones to monitor progress and change systems & structures

W is the outcome? hat SV • A clear statement about the outcomes of the change • A view of the future state that is: – Customer focused – Not just one person’s dream – Challenging – Evolving, not static – Behavioral and actionable – Easy to understand Visions provide Direction and Motivation for Change

Shaping a Vision Tools: SV Key Phrases Exercise Used For: Involving all team members and capturing individual perspectives 1. Individually jot down key phrases that capture the essence of why the team exists. 2. Collect and collate into vision statement. 3. "Test" on customers, vendors, employees. 4. Modify as necessary. Backward Imaging Exercise Used For: Helping team members think about the future they are working to create 1. Imagine a point in the future when the project has been very successful. 2. Find words to describe what you would see, hear, feel as you observe key stakeholders functioning in the new, changed state. 3. Collate, debate, reach consensus on your vision statement, "test" on others & modify Sha re d Vis io ns c o m e fro m c o lle c tiv e e ffo rts tha t re fle c t ind iv id ua l p e rs p e c tiv e s

Focusing Vision on Behaviors: SV Bull's Eye Chart Exercise Used For: Developing a Vision that is stated in actionable, behavioral terms M aking a Vision Actionable Vision Mindset Behavior More of/ Less of Exercise Used For: Clarifying what the team expects from the new state in behavioral terms Vision _________________________ Be ha vio rs More of Less of • • • • • • • • • • Sta ting the Vis io n in a c tio na ble , be ha v io ra l te rm s he lp s the te a m g a in c o m m itm e nt a nd id e ntify s o urc e s o f re s is ta nc e

Elevator Speech W orksheet: SV 1. A “reality check” to ensure that team members see the project the same way. 2. To ensure that the team members spread a unified consistent message. " He re 's wha t o ur p ro je c t is a bo ut… ” " He re 's why it's im p o rta nt to d o … ” " He re 's wha t s uc c e s s will lo o k like … ” (Charter, Project Definition Tools) (Shared Need Tools) (Shaping a Vision Tools +Milestones) " He re 's wha t we ne e d fro m y o u… ” (Responsibilities, Commitments, Project Plans) " He re 's wha t y o u c a n c o unt o n fro m m e … ” (Commitments, Action, Follow-up) (Output may change by stakeholder – one size does not fit all)

Mobilizing Commitment L eading Change Creating a S hared Need S haping a Vision M obilizing Com itm m ent M aking Change L ast M onitoring P rogress CUR E S R NT TATE TR ANS ITION S TATE IM R P OVE S D TATE S ystem and S s tructures

W is this Important? hy MC • Understanding the key stakeholders whose support and commitment will “make or break” the change effort. • Key difference between success and failure.

W is the Outcome? hat MC • Coalition of committed stakeholders. • Identification of potential resistance and a strategy to overcome it. Mobilizing the Commitment of Key Stakeholders is Essential to the Success of the Change

Mobilizing Commitment Tools: MC Stakeholder Analysis For Change Used For: Identifying stakeholders and their current level of commitment to the change initiative Stakeholder Analysis for Change Names Strongly Against Moderately Against Neutral Moderately Strongly Supportive Supportive Technical-Political-Cultural Analysis Used For: Identifying, labeling and understanding sources of resistance Sources of Resistance Definition Causes of Resistance Examples Technical Political Cultural Pe o p le re s is t o r s up p o rt c ha ng e fo r a v a rie ty o f re a s o ns . Rating

CAP Toolkit: MC Threat vs. Opp. Threat vs. Opp. More of Less of More of Less of 3D Matrix 3D Matrix D D D Stakeholder Stakeholder Analysis Analysis -- - +/- + ++ Influencin Influencin g Strategy g Strategy Visioning Visioning Vision Mindset Behavior Elevator Speech Elevator Speech TPC Analysis TPC Analysis T P C

Systems and Structures L eading Change Creating a S hared Need S haping a Vision M obilizing Com itm m ent M aking Change L ast M onitoring P rogress CUR E S R NT TATE TR ANS ITION S TATE IM R P OVE S D TATE S ystem and S s tructures

W is this Important? hy CSS • Successful change often involves significant realignment and leveraging of the way we organize, communicate, measure, train, develop, reward, compensate, promote and other systems within the organization. • Desired new behaviors (More of …Less of …) are reinforced through consistent attention to organizational Systems & Structures.

W is the Outcome? hat CSS • Identification and utilization of key Systems & Structures that must be addressed to sustain project success. • Utilization of Systems & Structures Best Practices. • Alignment of Systems & Structures with desired behaviors. Identifying and re-aligning key Systems & Structures are necessary for successful, long-lasting change

Factors to Consider: CSS Staffing (Acquiring/placing talent) Development (Building competence/capability) Measures (Tracking performance) Rewards (Recognizing/rewarding desired behavior) Communication (Using information to build and sustain momentum) Organization Design (Organizing to support the change initiative) IT Systems (Utilizing IT technology to enable changes to be successful and sustained) Resource Allocation (Adjusting or planning for financial and other resources to support the change project)

Three Step Alignment Process CSS Vision Mindset 3. Creating future 3. Creating future Systems & Structures Systems & Structures Degree of Difficulty Behavior 2. Current Systems & 2. Current Systems & Structures Assessment Structures Assessment • 1. Identify Key Systems & 1. Identify Key Systems & Structures Structures • Identify the Key Stakeholder(s) of that S&S. Helping Which Systems & Structures Most Impact the New Behaviors? • What about the current S&S is He lp ing or Hind e ring us from achieving the desired state behaviors? • Hindering Actions Develop Influence Strategy/ Action plan. Time • What’s Missing? • Identify Characteristics of New Systems & Structures. • Determine Systems & Structures to Remove or Build. • Identify Who to Engage and Develop Influence Strategy.

Communication Planning Matrix: CSS Channel Announce the CAP Project Clarify the Vision Begin to Mobilize Commitment Begin to Monitor Progress Changing Systems & Structures W ritten: • • • • Newsletter Bulletin Board V.P. Memo etc. Spoken: One-on-many • All employees meeting • Weekly staff meeting • Operating managers meeting • Etc. Spoken: One -on-one Symbolic: • Offsite conference • Press conference • etc. Used For: Used For: –– Communication Strategy Communication Strategy (various Channels) (various Channels) Indicate those that are suitable Indicate those that are suitable for: for: –– Providing Information Providing Information –– Persuading Persuading –– Empowering Empowering Include: Include: –– Audience Audience –– Who Who –– When When –– Where Where

Making Change Last L eading Change Creating a S hared Need S haping a Vision M obilizing Com itm m ent M aking Change L ast M onitoring P rogress CUR E S R NT TATE TR ANS ITION S TATE IM R P OVE S D TATE S ystem and S s tructures

W is this Important? hy MCL • We often spend most available time on the launch of an initiative rather than its institutionalization • Every change initiative competes for time, resources and attention • To ensure that the new behaviors will not revert back to the old habits

W is the Outcome? hat MCL • Consistent, visible, tangible reinforcement of the change initiative • Integration of new initiative becomes the way we work • Changes to Systems and Structures enable the new behavior that supports the Vision Launching a Change is just the beginning. It must become the W of Life ay

Monitoring Progress L eading Change Creating a S hared Need S haping a Vision M obilizing Com itm m ent M aking Change L ast M onitoring P rogress CUR E S R NT TATE TR ANS ITION S TATE IM R P OVE S D TATE S ystem and S s tructures

W is this Important ? hy MP • An accurate measure of the CAP project provides focus, direction & momentum throughout the change process. • Corrective action can only occur if you know you're off track. • Monitoring Progress enhances your ability to reward key events and milestones.

W is the Outcome ? hat MP • Clarity and agreement on what the “acceptance” strategy looks like in measurable & observable terms. • Baseline data & milestone results of the change process tracked and widely communicated. • Increasing momentum as people see progress and results being realized. Measuring & tracking progress along the CAP elements demands ongoing attention by the team

Effective Change Equation QxA=E Q = Qualitative/Technical Solution A = Acceptance/Engagement E = Overall Effectiveness

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