Transcript Slide 1

Building Internal Change Management
Capability To Achieve Competitive
Advantage
Michael Wright
Director, Learning, OD and Change Management,
Constellation Energy
Bill Young
Director, Education Alliances, Capella University
Welcome
“In the long run, the only sustainable source of competitive
advantage is your organization’s ability to learn faster
than its competition.”
-The Fifth Discipline Field Book
2
Agenda
• Introduction to Constellation Energy
– DVD
(4 minutes)
10 minutes
• Building Change Management Capability
10 minutes
• Components of Change Management
Capability
10 minutes
• Case Study: Application at Constellation
10 minutes
• Questions & Closing
10 minutes
3
Introducing
Constellation Energy
The Constellation Energy Family
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Powering Our Growth
Revenue
3.9 Billion 4.7 Billion 9.7 Billion 12.5 Billion 17.1 Billion TBD
Employees 9200
8700
8650
9570
9700
TBD
Fortune
500 Rank
421
352
203
167
125
432
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Energizing Our Future
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Our Next Phase of Growth
•
Florida Power & Light and Constellation Energy to
merge, creating the nation’s largest competitive
energy supplier
•
Constellation Energy will be the second largest
electric utility
•
$28 Billion transaction
•
Will create a Fortune 100 company
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Our Challenges In Managing Change
Managing our enterprise wide changes is a huge investment
of money, assets, time, and resources.
Common Challenges In Managing
Business Change
1.
2.
3.
4.
Lack of (effective) leadership:
a.) actions (or inaction) by the leaders of the
organization
b.) the style and approach used by those leaders
Poor (or no) framework/model and tools for change
Failure to set metrics and benchmarks
No disciplined change process
Change Management, The Next Generation Manufacturing Report, 1997
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Failure Is Not An Option
Given the cost and people impacts, we can not leave
managing change to chance.
Greatest Change Management Obstacles
All other obstacles
32%
Inadequate resources
(time, knowledge, money)
16%
Management behavior
not supportive
of the change
29%
Employees fearful
and resistant to change
23%
Best Practices in Change Management, ProSci, 2000.
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Managing Change Is Important To Our Bottom Line
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Time/cost over-runs (delayed results)…………… $
Cost of project restarts…………………………..……. $
Lost market opportunities……………..…………….... $
Market share erosion to competitive forces…... $
Reduced features or functionality………..….……..$
Loss of desired efficiencies……………..…………….. $
Reduced productivity……………………………..……... $
Increased HR expenses for turnover…..………….. $
Unanticipated marketing expenses for delays.. $
Stock valuation fluctuation…………………….….…...$
THE ULTIMATE: Project write off……………….…. $
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Managing Change Vs. Building Change Capability
Managing Change
Change Happening To Us
Building Change
Capability
We Are Making Change Happen
Event-driven, Focused On Specific
Change Execution, Limited Knowledge
Capture For Future Changes
View Managing Change As The Way We Do
Our Business Requiring Ongoing Skill
And Knowledge To Manage Wholescale, Constant Change
Bottom Line Impacts Can Be Significant
Bottom Line Impacts Are Minimal Given
The On-going Nature Of Building
Capability And Focus On Change
Time To Adoption Can Vary Depending
Upon People’s Experiences Of Change
Accelerate Adoption Rate Of Change
When The Pressure Is Off, Go Back To Old
Ways Of Doing Things
Event-Based Change
Future State Focused
Transformational Change
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“True change takes time; it is not a simple quick fix where
you bring in the change agents and straighten out the
organization. It is the systematic creation of a change
capability through learning how to build and use outsider
insider expertise.”
J. Klein, True Change: How Outsiders on the
Inside Get Things Done in Organizations
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Building Change Management Capability:
A Source of Competitive Advantage
Insider-Outsider Approach to Building Capability
INSIDER SKILL, KNOWLEDGE,
RELATIONSHIPS, CULTURE
CHANGE
MANAGEMENT
CAPABILITY
OUTSIDER BEST PRACTICE,
KNOWLEDGE, COMPETENCY
An “insider-outsider” infrastructure accelerates Constellation
Energy’s approach to building internal change capability.
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The Transformation Support Continuum
INDEPENDENCE
INTERDEPENDENCE
DEPENDENCE
Internal skills and
capabilities are believed
adequate.
Internal skills and capabilities can
be developed to support the
change.
Internal skills and
capabilities are
completely lacking.
Underlying belief: Little
support is needed to
successfully execute the
change.
Underlying belief: A combination
of external guidance and the
development of internal capability
is the best means to ensure that
there is adequate, well-trained
support through the formation of a
transformation.
Underlying belief:
High levels of external
expert support are
needed to successfully
implement the change
because internal
capability is so lacking.
“We develop the capability for
success over the long haul.”
“We need to let them
do it to us.”
“We need just do it.”
At Constellation Energy, we have a significant need to develop
internal change capability that will build and improve over time.
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Competitive Advantage: Our Future State
Structure: A well positioned, functional and visible
infrastructure with roles and responsibilities, tools and
technology
Process: A robust, disciplined, easy-to-use work flow. A
CHANGE
MANAGEMENT
CAPABILITY
set of action steps and tasks that are flexible and
adaptable. Integration into SIRIUS, integration framework
& processes. Aligned to High Performance Teams,
Leadership Development, Performance Management,
corporate culture, business & organizational needs
People: Internal coaches, consultants, trainers. Skilled
and capable change leaders as sponsors of change.
Experienced change agents. Knowledgeable partners in
change capable of dealing with the ambiguity of a
constant changing organization
Culture: Belief in risk-taking, disciplined approach and
cross department orientation. Behaviors that show
tolerance of change
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Building Our Future State
SIRIUS
FRAMEWORK
EFFECTIVELY
MANAGING
CHANGE
INTERNAL CM
CONSULTANTS
CHANGE
MANAGEMENT
CAPABILITY
SIRIUS
TOOLKIT
FAST START
TOOLKIT
ENTERPRISE
PMO
LEADING
CHANGE
PERSONAL
STRATEGIES
IN COPING WITH
CHANGE
ONLINE
TRAINING
COMMUNITY
OF
PRACTICE
CHANGE AGENT CM KNOWLEDGE
NETWORKS
SUITE
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Cementing Future State Capability Through
Learning
SIRIUS GP Course
CHANGE
MANAGEMENT
CAPABILITY
Depth of Understanding
Co-Delivered by BPI/L&OD
Basic Principles of:
Breadth of Understanding
Project Prioritization Workshop
PROJECT MANAGEMENT Curriculum
Project Management
Change Management
Problem Solving and
Process Improvement
Integration of Constellation
Leadership Competencies
Supported by:
SIRIUS Executive Coaching
ePMO
Business and financial simulation
Consulting skills development
PM
Principles
Integrated
Cost &
Scheduling
Risk
Mgmt
Managing
Project Mgrs
Leadership &
Communication
Skills
MS Project
Managed
by L&OD
CHANGE MANAGEMENT Curriculum
Effectively
Managing Change
Leading Change
Personal
Strategies Course
Delivered
by L&OD
SIRIUS Curriculum
SIRIUS-I
SIRIUS-C
Delivered
by BPI
All aligned with SIRIUS Framework and are designed to
build internal capability in all areas
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Supporting Just-In-Time Change Consulting
CHANGE
MANAGEMENT
CAPABILITY
• Executive understanding and commitment to our change management
approach (SIRIUS)
• Enough capable in house expertise (change agent networks and internal
change management consultancy)
• Sufficient resources and time to support continued development of change
agents and internal change consultancy
• Visibly positioning and sponsoring internal resources as dedicated and
competent to assist with major change efforts
• Ensuring external consultants understand our change management
methodology, as the change framework, partnering with internal resources
to create and execute change plans
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Future State Impact
CHANGE
MANAGEMENT
CAPABILITY
SIRIUS Training Participants 1/06-8/06
250
193
204
199
180
200
150
150
100
62
66
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CEPS
CCG
CNE Gas
BGE Home
BGE
CGG
CNE
Corporate
Training
• 1079 staff trained from 1/06-7/06
• Increase in SIRIUS training
• Course feedback is very positive (~6.5 out
of 7 satisfaction rating )
• Seeing higher enrollment: SIRIUS-GP &
Community of Practice for continuing
education
Methods & Support
• Community of Practice is actively sharing
examples, best practices, updated tools
and providing ad-hoc mentoring via Share
Point
• Internal CM consultants are partnering with
engagement directors to better leverage
internal capability
• Toolkit v3.0 Design Review feedback from
Focus Group participants, ”Love it … when
can we use it”
We are leveraging our COP to hone our methods & provide a wider-reaching support model.
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Contributors To Our Success
CHANGE
MANAGEMENT
CAPABILITY
INTEGRATION OF
CHANGES
LINKAGE TO ALL
KEY DRIVERS
QUANTIFIABLE
MEASURES AND
RESULTS
ANALYSIS OF
CHANGE IMPACTS
PROACTIVE
PLANNING
ALIGNED TO
PM METHODOLOGY
COMMITTED LEADERSHIP
ENGAGED EMPLOYEES
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Case Study:
Lessons Learned
Questions
Meeting Close
Thank You
Contact Information:
[email protected]
410-783-3234
Appendix
Change Framework, Tools & Training
Change Management and Project
Management
Constellation Energy’s Change Management
Framework
Scope
Define the opportunity and potential benefit to our customers and to
Constellation Energy.
Investigate
Determine baseline of the current performance and define customer
requirements for improved performance.
Reason
Explore the root causes and identify gaps.
Innovate
Evaluate quick hits and potential solutions, prioritize them and develop
a strategy for implementation.
Undertake
Implement the quick hits, pilot the more complex solution, and validate
the improvement.
Sustain
Transition the solution to the owner, confirm the results, and share the
knowledge
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Index
Scope
•Change
•Project
Management Management
•Tools
•Tools
•Problem
Solving
Tools
•Objectives
Glossary
Investigate
Reason
Define the Project
•
•
•
•
•
Understand business problem
Collect any existing data
Understand impact areas
Identify & assess stakeholders
Define boundaries & constraints
Project
Definition
Voice of
Customer
Innovate
Develop the Charter
•
•
•
•
Identify key metrics
Estimate the effort and resources
Define team & mobilize resources
Develop draft project charter
Undertake
Sustain
Identify Risks & Issues
• Identify & manage the risks & issues
• Review project with sponsor and key
stakeholders
• Implement project tracking
High Level
Process
Map
Lessons
Learned
Engage
Sponsor
Stakeholder
Planning
Core tools … help meet objectives
Estimate
Resources
Estimate
Schedule
Draft
Charter
Managing
Big Scope
Engage
Team
Facilitation
Techniques
Estimate
Cost
Manage
Risks
Project
Comms
Change
Tracking
Project
Tracking
Project
Review
Additional tools provide added depth for understanding, analysis and/or engagement
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Internal Change Management Curriculum
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Supporting Change Management Resources
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Communication Vehicles
Transformation Communications
Revenue
3.9 Billion 4.7 Billion 9.7 Billion 12.5 Billion 17.1 Billion TBD
Employees 9200
8700
8650
9570
9700
TBD
Fortune
500 Rank
421
352
203
167
125
432
34
Change Management Community of Practice
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Change Management Knowledge Suite
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Internal Change Management
Consultancy
Internal Change Management Consultancy
Process
Enablers
Output/
Results
People
Our approach to change management focuses on transitions –
helping people bridge the gap from current to future state
in the quickest and most efficient way
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Our Change Management Practice
• Internal – we have change management resources on staff
who understand the organizational culture and are ready to
help you when needed
• Experts – from our Business Process Improvement Group
who’s distinctive competence is change management; we
have years of hands on experience across a broad range of
initiatives
• Flexible - our level of engagement can be adapted to suit
your needs; we can offer full time or part time support
• Lower costs – our fees are lower than those of external
resources
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Change Agent Networks
Change Network Overview
A Change Network is a structured group of employees who work with the projects to support the
implementation of change.
Why do we need a Change Network?
•
Creates ownership among impacted employees by giving them an
opportunity to be involved, voice their opinions, and shape the approach
being used to implement the change
•
Increases effectiveness and trustworthiness of communications
through respected peer delivery
•
Reduces change resistance by encouraging associates/”end users” to
understand the need for change and its potential advantages
•
Supplements communications coming directly from Business Unit
Management / Supervisors
•
Coaches and enables associates to take action and make the change
effort successful
•
Provides feedback of the change effort back to the project team
•
Builds change leadership for the future
•
Input into design of change
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Change Network Roles
The design of the Change Network focuses on cascading commitment from Executive Sponsors to Change Targets
that are being asked to adopt the change in a consistent and rigorous way.
Change Network
Initiating Sponsors
•
•
•
Set vision, defines changes, and
communicates priorities
Provide resources and support
Publicly demonstrate commitment
Aligning change to business strategy
Sustaining
Sponsors
•
•
•
•
Demonstrate commitment to outcomes
Allocate resources / support and provide
project guidance
Publicly support and validate change effort
Support and coach change agents
•
•
•
•
Builds change network
Coordinates and coaches members
Provides consistent, coordinated
information and materials
•
CM Team
Change Agents
•
•
Support change and communication efforts within
respective organization; partner with supervisors
to deliver key messages
Provide a designated communication point
Surface issues/concerns; work with project to
resolve / address
Change Targets
•
•
•
Listen to / read communications
Ask questions and identify issues
Understand / adopt change
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Change Network Structure
Representatives from all impacted business units create a “spider web” of change
agents across the organization. Depending on the impact of the change, the
appropriate change agents would be called into action
Initiating Sponsors
Steering Committee
Sustaining Sponsors
Sustaining Sponsors
Advisory Committee
Controllers Committee
BU 1
Change Agents
BU 2
Change Agents
BU 3
Change Agents
BU 4
Change Agents
Other Non-Reg
Change Agents
- Finance*
- Procurement**
- Operations
- Finance*
- Procurement**
- Operations
- Finance*
- Procurement**
- Operations
- Finance*
- Procurement**
- Operations
- Finance*
- Procurement**
- Operations
BU 1
End Users
BU 2
End Users
BU 3
End Users
BU 4
End Users
OTHER
End Users
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Change Network Structure
Business Transformation Office
Project PYXIS
HR Transformation
Initiating Sponsor
Steer Committee
Initiating Sponsor
Steer Committee
Sustaining Sponsor
Sustaining Sponsor
BU Change Agents
BU Change Agents
Sustaining Sponsor
Sustaining Sponsor
BU Change Agents
BU Change Agents
Building
Change Targets
Change Targets
Internal Change
Capability
To Support
E-Time Project
Rapid
Initiating Sponsor
Steer Committee
Change Targets
Change Targets
Merger & Integration
Initiating Sponsor
Steer Committee
Deployment
Sustaining Sponsor
Sustaining Sponsor
Sustaining Sponsor
Sustaining Sponsor
BU Change Agents
BU Change Agents
BU Change Agents
BU Change Agents
Change Targets
Change Targets
Change Targets
Change Targets
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Change Networks Accelerate Change Deployment
Change networks support rapid deployment of business change
• Acting as a ‘sensing network’ identifying business specific issues, escalates
change barriers and assisting in identifying current skill and knowledge levels
of target groups
• Being involved in deployment of communications, design, delivery and
evaluation of learning solutions locally
• Having credibility with target groups and ensure overall alignment of change
to business culture—they bring business perspective and language to the
change implementation and know what works for sustainability of change
• Building local acceptance and commitment of the change—accelerating
targets through the change curve, managing transition issues associated with
change
• Maximizing speed to competency and overall time to productivity and
performance
45
Change Agent Time Requirements
The estimated time commitments required of a successful Change Agent are identified
below, and may increase with later stages
Specific Activities
Time Commitment
One-time / Periodic
• Change Agent Kickoff Workshop
• Half day workshop
• Confirm training needs analysis
and training curriculum for
organization
• TBD (Project Projectspecific)
• Support training effort
• TBD (Project Projectspecific, close to rollout
date)
• 2 hours
Monthly
• Monthly Change Agent Briefing
• Pre-reads / review of
communication materials
• 1 hour
• Periodic informal communication
with associates
• 1-2 hours
• Periodic formal communication
delivery with associates
• 2-3 hours prep and delivery time ~
every other month
• Sharing feedback / communicating
questions & concerns with the
PMO
• 2 hour
8-12 hours / month
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Motivating Change Agents
Participation in the Change Network requires hard work, so Change Agents must
believe their contribution and input is valued and respected
Recommendation
•
Develop extended network of support
•
Expand sphere of influence
•
Expand view of potential career opportunities
•
Increase skills and leadership competencies
•
Experience documented
•
Letter of commendation from Senior Executive
•
Spotlights in Business Communication Channels
•
Promotional / thank you “awards” based upon contribution
and participation
•
Team One Awards
Increase Visibility
Development
Opportunity
Recognition
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Monitoring the Network
To provide on-going coaching and continuously improve, implementing mechanisms to
measure overall effectiveness of the network
Measures
Reviewer
• Activity completion
Change Management Team
• Meeting attendance
Controllers Committee
Metric Tool
Activity Tracker
Advisory Committee
• Approachability
• Interpersonal skills
• Informative
Peers
Supervisors and Managers
Change Network
Member Effectiveness
Survey
• Reliability
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