culture based change management - eoq€¦ · culture based change management dgq jahrestagung –...

© WZL/Fraunhofer IPT

Culture Based Change Management

DGQ Jahrestagung – 56th EQG Congress – FQS Forschungstagung

15th June, 2012

Dipl.-Ing. Thomas Zentis

Prof. Dr.-Ing. Robert Schmitt

Fraunhofer Institute for Production Technology IPT


21%

79%

The numerical impact of change management and strategic company focus

Surveys show that the importance of change management increased during the last years

79% of medium-sized companies’ CEOs would give the topic “Strategy” a high ranking

45% of interviewed persons from the top, middle and lower management think that long-term planning has an important influence regarding to business success

25% are even convinced that this is the reason for the great success of the company

Source: Personalwirtschaft 6/2004

2003

200840%

49%

11%

60%

3%

37%

0%10%20%30%40%50%60%70%

Very important Important Less important

High

Rather high

25,3%

45,0%

21,8%

6,4%1,5%

0%

10%

20%

30%

40%

50%

Very large Large Middle Small Very small

Source: Deloitte. Begleitstudie zum Axia-Award

Source: TU Clausthal

Leading a company successfully means to adapt to permanent changing parameters,

not to hold the status quo


Preconditions for change projects

Change does not equal Change

It is not a one-off process, but a continuous one

Change is dynamic. There is no clean line between conception and implementation

According to the prevailing corporate culture, change is influenced by supporting and inhibitive factors

What is the resulting challenge to gain sustainable change?

There is a variety of methods to support change projects

This collection is like a black box from which the optimal supportive method can only be chosen after considering the surrounding conditions and corporate culture


The process of Culture Based Change

Identify the change

QG 1

Preparation

QG 2

Decision Design

QG 3

Implementation

QG 4

Reinforcement

Support change process methodically

Change Project type 2


Cultural Characteristic 3



Analyze the corporate culture


The type of change describes the goal of change and the way to it

Every kind of change includes features and goals classified in standardized types of change:

– Headcount reduction– Program of cost reduction– An increase of productivity– Outsourcing– Reorganization and restructuring– Implementation of new IT

Depending on the kind of targeted change, there are different aspects of corporate culture importance and there are different methods of change management to be used


What is corporate culture anyway?

Stories Architecture

financial orientation

dress style

managers personality pressure to performworking times open doors kitchenette & smokers’ corner

readiness to assume riskattention to detail result-oriented atmosphere

employee turnover company’s foundercolleagueship inventive talent

creative freedomHierarchy Personnel development

rituals mythsnetherworld company history gossip

Feedbackappraisal of criticism idea of man

time oriented Controlling communicationexemplified values Power

team trip leadership


A conducted survey shows a strong connection between Change Project Type and Cultural Characteristics

Projects for increase of productivity benefit from a high identification of the employees with their enterprise. This gives those employees an understanding of their personal additional benefit of the change intended

For outsourcing, the consistency of a leader’s point of view is an essential element for a project’s success. Employees will understand their decisions as elaborate and necessary

A frequent change of leaders has a strongly negative influence on change projects for reorganization and restructuring. Change needs time and continuity to become successful

An intensive and personal contact between leaders and employees facilitates the challenging processes of reorganization such as reduction in staff. An elaborated communication concept helps to keep employees informed

If new IT will be implemented, this should be argued by the advantage for the enterprise and the optimization of products. Commitment fades when projects become ends in themselves

Source: www.cuba-change.com


Three main success factors for sustainable change can be deduced

Change projects must not coincide with the frequent changing of leaders’ positions or executives’ opinions

A stable working environment needs to be developed by promoting aspects of interpersonal workplace relationships

Employees need to believe in the strategy and goals of their executives to identify with their company


Core results of the survey

The influence of corporate culture on different project types has been clearly indicated

Role and behavior of leaders are vital important (significant) for all change types

At the same time consequent implementation of change methods is a good indicator for positive project success

Leaders have already perceived, that employees need to be supported during change projects. Methods for motivating employees are mainly applied during the phase of implementation

Little importance is tributed to preparing and designing change projects. Anyhow, adequate preparation and communication is crucial for the employees’ commitment to change


The process of Culture Based Change

Identify the change

QG 1

Preparation

QG 2

Decision Design

QG 3

Implementation

QG 4

Reinforcement

Support change process methodically






Analyze the corporate culture


Integration of classical and innovative Quality and Project management Instruments

Preparation Design Implementation

Reinforcement

Decision

Cultural manifestation

Secure and communicate first successes

Communicatevision

Form leadershipcoalition

Create feeling for urgency

Plan first successes

QG 2

Motivate, enable, brief and authorise people

Identify constraintsfor implementation

Adjust implementation plan to changed boundary conditions

Control and monitorresults

QG 1

Experienced know-howObserve environment

Prioritize alternatives

Develop a strategy

Analyse environment

QG 3 QG 4

QG 5


Finding the system‘s bottleneck

The central issue [CI] is the shortage of the system

The CI often arises from V-connections between independent branches

The elimination of the CIs leads to a maximum improvement of the system

Defining and managing the Strategy

Positive aims are defined

Specific information about desired target state is given

Break-down to concrete aims for employees

Decision:Core Problems are detected and a Strategy derived

W

W

WW

Control zone

Sphere of influence

V-connection

CI

SE SE

SESE

Strategic aim

Operative aim

Vision

XXX X XX


Preparation: An overview of communication methods provides inspiration for the application within a company

An overview of communication methods provides inspiration for the application within a company The selection of appropriate communication tools and channels helps the change agent to reach the employees

and to be reachable for their concerns Approx. 80 communication-efforts with detailed descriptions (target group, frequency, chances/dangers etc.)

Communications-toolbox

SponsorChange Agent

Concerned

Different roles regarding different people:

„To my sponsors I am a change-agent, but to my

employees I am a sponsor“

: persons concerned: communication channel: direct sponsor: indirect sponsor

: member of process team

Sponsor cascade Communication cascade


Conclusion

Leaders need to form the change strategy, but strategy still can be defined by the prevailing corporate culture

For the success of a change project it might be necessary to break down the existing hierarchical structure as well as grant capacity and room for team work and inter-divisional projects

Once a change process is initiated, leaders need to be aware that they should stick to the process at all times and thereby form the foundation for stability


Thank you for your attention!

Dipl.-Ing. Thomas ZentisGroup Manager

Telephone: +49 (0)241/ 89 04 -704E-Mail: [email protected]

Fraunhofer IPTSteinbachstrasse 17

52074 AachenGermany

culture based change management - eoq€¦ · culture based change management dgq jahrestagung –...

Documents