Description
TY BMS Project
CHANGE MANAGEMENT
CHANGE
Change, as the name suggest is nothing but shifting from one dimension to another. It is like shifting from one system or situation to another one. Anything can change and change is universally applicable to everything. Whether it is money, nature, environment or business, everything changes. E.g. a business not surviving the market, well it is also a change. Things change, people change, and they have to change or they will not survive the wrath of time.
Change always comes bearing gifts. ~Price Pritchett
Truly said by the strategic management guru and politician, that if there is a change whether for bad or worst, it comes with a gift. All we need to do is accept it seize the opportunity. So we should all be optimistic toward it and pass through it, as change is
Page 1
CHANGE MANAGEMENT
inevitable. As we can say that the change is inevitable or irrevocable we should try our best to adapt to it. And if this adaptation process is not possible then we should worry about our survival. Another reason why people avoid change is that they don‘t want to change. They are very happy in their comfort zone and avoid a lot not to come out of it. This is because they believe that change is bad for them and they should avoid it at all costs. Changes can be in many form, it can be at home or personal changes or professional or official changes. If we consider this change as an endangering factor then we can never find the silver lining behind this dark cloud. By this I mean we should consider it as a new opportunity or a challenge which will make us more adaptable or experienced. Anything taken in a positive ways turns out to be a healthy opportunity.
BUSINESS-CHANGE
Business change relates to the changes taking place in the day to day ongoing activities in business. This change can be at various levels, like operational, managerial or director level. It also includes changes in the business environment like political, regulatory, technological, cultural, social or demographic. Business changes happens due to change in demand-supply ration, customer wants, requirements of share holders or stake holders like employees, suppliers, business consultants and society at large. Financial turmoil‘s like recent recessions had caused a great deal of changes in all of the organizations. A change in the organization brings along change in the marketing strategy, recruitment procedures, financial planning, product change strategies or change in supply chain or logistics. There are various departments in the company and a single change or
Page 2
CHANGE MANAGEMENT
systematic difference creates a great deal of issues for other departments. This is because all the core departments are related to each other and work in a cyclic order.
Types of business changes include: ? ? ? ? ? ? ? Change in work culture Change in the leadership Change in strategies Change in market Change in stakeholders Change in environment Changes in government regulations
These are few types of changes among many that actually takes place in the in the business world. These changes are sometimes controllable or uncontrollable. Due to this any business firm have to take into account the importance of change and the degree of its impact. Underestimating changes in business can lead to huge losses and eventually the company will lose its market standing. A slight change can act as a big issue for the entire organization. E.g. a textile company can suffer huge losses if the choice of the customer or the brand preference changes or in terms of steel companies a slight change in the raw material cost can make the product twice as costly and thus effecting its market value or market standing.
So all we have to do is first accept the change, understand it, study it, and then turn it into an opportunity. This is the only way to tackle the business changes and shift them to our sides making the organization a stronger entity than before.
Page 3
CHANGE MANAGEMENT
CHANGE MANAGEMENT
Introduction:
? Change management is an aspect of management focusing on ensuring that the firm responds to the environment in which it operates. It‘s simply about how well we manage the changed scenario of the organization and make a valuable contribution towards it. ? Change. It‘s inevitable. No matter where our organization stands or what business are we into, change is bound to happen. We all try to avoid change or in more proper terms resist change. But just as the fashion, cars, people change, in the same way the business environment changes. And this change is uncontrollable and thus should be accepted. ? But what really matter is how we manage change. Managed well, it can be healthy for the company, leading to improved profit margins, happier and more productive employees, and a stable and growing company. Managed poorly, it can lead to poor morale, loss in production, and ultimately the possibility of bankruptcy or selling out. Due to such uncertainty, we are afraid of the change. Change is bound to happen, but how we manage it determines our survival in the business market. ? As then business environment is continuously changing, there is a need to develop a concept of change management. This concept is usually carried in the Human Resources department. They make it sure that this change is positively accepted by the employees and their performance and motivation do not reduce. As a change manager we have to consider all these factors before taking any action.
Page 4
CHANGE MANAGEMENT Key features of change management:
? ? ? ? ? ? ? ? ?
Change is the result of dissatisfaction with the present strategies. It is essential to develop a vision for a better alternative. It is necessary to develop strategies to implement change. There is resistance to the proposals at various stages. Developing new product and new strategy. The entry of new competition also causes changes. Changes in consumer tastes & preferences. Changes in the cultural, political, economic, legal and social framework. Changes in technology leading to technological environment or new product opportunities.
Factors affected by change management:
? ? ? ? ? ?
Organizational structure. Team of personnel. Process: Operational, Production or Administrative. Location: Expansion or Downsizing. Job requirements and work load. Roles and Responsibilities.
Page 5
CHANGE MANAGEMENT
Change management Objectives:
1. To minimize the adverse impact of necessary changes on system integrity, security and the service level agreements. 2. To allow the coordination and planning of changes in order to provide a stable production environment. 3. To maximize the productivity of persons involved in the planning, coordinating and implementation of ?quality? changes. 4. To allow changes while, at the same time, maintaining or improving service stability and availability. To increase the probability of change success. 5. To reduce or minimize the ratio of changes that needs to be backed out of due to inadequate preparation. 6. To ensure that all parties affected are informed of planned changes. 7. To provide a record of changes implemented to assist with and shorten problem determination time. 8. To ensure that technical and management accountability for all changes is identified. 9. To assist with the accuracy of predictions of impact, such as response time, utilization, etc. 10. To ensure the motivation level is maintained among the employees and the degree of trust among the stake holders.
Page 6
CHANGE MANAGEMENT
Reasons for change in business:
? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
Internal forces Desire to increase profitability Reorganization to increase efficiency Conflict between departments To change organizational culture External forces Customer demand Competition Cost of inputs Business regulations & Legislature Tax policies New technology Political factors Ethics & Codes of conduct Technological obsolescence
Page 7
CHANGE MANAGEMENT
STEPS TO MANAGE CHANGE
Before going through the steps involved in change management, we must first decide what kind of change do we to bring. What are we exactly doing? Is there any expansion plan or downsizing. Are we facing bankruptcy or we are changing the product. There are various types of change relating to various parts of the organization. At first we have to be clear what change has to be taken place and then formulate various strategies regarding it. Because for bringing the desired change, we would require trained man power, proper accounting, good marketing strategy etc. There are two major steps in managing change in the organization. 1. Staffs introduction to change 2. Organizational re-engineering These two steps are widely important when inducing change in the company. At first we have to communicate with our employees that, there is a change and we have to act accordingly. This is because employees are the only factors which keep the organization going. No matter which department they belong, all should be aware of the change. And then, company‘s strategy and working environment should be altered accordingly or reengineered. This will give an edge to the organization to look forward to its goals and requirements in terms of customers and stake holders.
Page 8
CHANGE MANAGEMENT
1. Staff’s introduction to change management
? You will probably need to teach an introduction to change management, as change does not come naturally to everyone. For this, you should consider hiring an outside consultant. Change is hard. Sometimes it‘s easier to hear the news from someone you don‘t work with every day. ? Change management instructor will be able to tell your management staff what to expect and how to handle questions from employees. Educate your managers on handling your company‘s changes, and test them afterward to ensure they are clear on the processes. ? Next, listen to your management team, and listen carefully. They will see problems with, ramifications of, and improvements on your change management plan that would never occur to you. At the end of your introduction to change management session, have an intense and relaxed brainstorming meeting. Put papers up all around your conference room, and encourage people to list issues. Encourage creative thinking.
2. Organizational re-engineering
? When there is a process in an organization it is not an easy task to make changes to this process immediately. Sometimes a single organization may have varied business entities and changes in an entity may be reflected in another entity. In such organizations changes are not so easy. There are different types of organizations which have many branches across the world with varied cultures. Implementing a change in such organizations is a task by itself.
Page 9
CHANGE MANAGEMENT
?
The change process can be thought of a process which stops the current process, makes the necessary changes to the current process and the run the new process. It is easy said than implemented. Stopping a current process in some industry is fatal for that organization.
?
Managing the changes in an organization requires a broad set of skills like political skills, analytical skills, people skills, system skills, and business skills. Having good analytical skills will make you a good change agent. The workflow has to be changed in such a manner to reflect the financial changes that are taking place. Operations and systems in the organization should be reconfigured in such a manner that you get the desired financial impact.
?
Hence change management plays an important role in an organization. This allows the organization to give a reactive or a proactive response to the changes that happen internally or externally. Knowing the change management and its process would help an organization and it s processes to be stable. And thus following this stability strategy we can rightfully re-engineer our organization as per our goals or the requirement of the firms demand and supply ration.
Page 10
CHANGE MANAGEMENT
Change Management Strategies
Organizazational Strategy Structure
Epirical srategy
Structural srategy
Operational strategy Personnel strategy
The above charts shows the different types of strategies used that are used in an organization while implementing the process of change management. These strategies form the base of the upcoming policies and alterations in corporate working. This shows the level of importance of each strategies and their specifications.
Page 11
CHANGE MANAGEMENT
Selection of Change Strategy
Generally speaking, there is no single change strategy. You can adopt a general or what is called a "grand strategy" but, for any given initiative, you are best served by some mix of strategies. Which of the preceding strategies to use in your mix of strategies is a decision affected by a number of factors. Some of the more important ones follow.
?
Degree of Resistance: Strong resistance argues for a coupling of power-coercive and environmental-adaptive strategies. Weak resistance or concurrence argues for a combination of Empirical-Rational and normative-reductive strategies.
?
Target Population: Large populations argue for a mix of all four strategies, something for everyone so to speak.
?
The Time Frame: Short time frames argue for a power-coercive strategy. Longer time frames argue for a mix of empirical-rational, normative-reductive, and environmental-adaptive strategies.
?
Expertise: Having available adequate expertise at making change argues for some mix of the strategies outlined above. Not having it available argues for reliance on the power-coercive strategy.
?
Dependency: If the organization is dependent on its people, management's ability to command or demand is limited. Conversely, if people are dependent upon the organization, their ability to oppose or resist is limited. Mutual dependency almost always signals a requirement for some level of negotiation.
Page 12
CHANGE MANAGEMENT
Implementing the strategy
The most important part after selecting the strategy is to implement it. This execution is the most difficult and various factors have to be considered while the implementation process. Implementation depends on very basic control in the firm. Control in terms of various operations, personnel, marketing, revenue, financial budget etc. Proper conrol means smooth functioning of the business plans which in turn give high returns in terms of quality, customer satisfaction and revenue. The first thing to do is getting in the situation. Staying outside and watching won‘t help here. So get in and fight. 1. A clear sense of mission or purpose is essential. The simpler the mission statement the better. This will help the employees as a guiding blue print.
2. Developing a new strategy for providing services to the existing and new customers in order to retain their faith. And going for proper market research in order to understand the new market situation and demands.
3. Build a core team. Put best of the members in it on the basis of the intelligence, creativity, team work and leadership qualities.
4. Maintain a flat organizational team structure and rely on minimal and informal reporting requirements.
5. Pick people with relevant skills and high energy levels. As they are the best match for the job we are looking forward to.
6. Shift to an action-feedback model. Plan and act in short intervals. Do your analysis on the fast tract. Slow and steady what is the demand of time.
Page 13
CHANGE MANAGEMENT
7. Work task and priorities should be flexible enough to shit to other side in case of any emergency. Rigid goals act as a distraction and time consuming device.
8. Things should not be finalized immediately. We should wait for the right time, as things can change again and we might have to start all over again. 9. Ask for volunteers. You‘ll be surprised at who shows up. You‘ll be pleasantly surprised by what they can do.
10. Find a good team leader and give him the authority. He should be experienced and capable of handling a team in such situations and should also stay motivated.
11. Give proper resources to the employees in order to complete the work. If we fall short on the resource side then there should be optimum utilization of the resources given.
12. If the change is related due to any kind of merger or acquisition then proper training and development opportunities should be provided to the employees, as they being the greatest assets of the company.
Page 14
CHANGE MANAGEMENT
Trends in change management
Since the inception of Change Management in late 1990s, there has been various trends setup by various management gurus and business leaders. These trends act as various dimensions in the study of this subject. Since 2003, various trends have been developed which have absolute business practicality in the today‘s environment. These trends can also be stated as methodologies or governing symbols on which lies the base of change management. After taking in to consideration of the theories of various management thinkers and school thoughts we come to certain common trends that these personalities shared among them. These trends were introduced since 2003, but their importance came into picture during the times of recession.
Current trends in Change Management
?
Change Recognition Model
Overall, participants saw a greater understanding of and appreciation for the role of change management. Organizations and project-focused employees saw change management as important and as a needed aspect of any change project. Change management was identified as a key contributor to project success. There was a wider appreciation of the role change management played in contributing to return on investment (ROI) and benefit realization of projects; it was viewed as essential. A number of participants also commented on the growing interest and attention by senior leaders. ?
Competency Builder Theory
Viewing change management as an emerging and necessary competency moved up from number five on the trends list in 2007 to number two in the 2009 study. Participants indicated more demand for training and knowledge around change management, as well
Page 15
CHANGE MANAGEMENT
as more widespread competency building programs. Change management competencies were becoming evident in senior leadership levels and front-line management levels. ?
Resource dedication model
Participants identified the use of dedicated resources focused on change management as a key trend in their organization. Project leaders were more likely to appoint change management resources to support their change initiative, and change management specialists were being identified and developed within the organization. ?
Management tools utility
The fourth most-cited trend was a greater adoption of change management tools, processes and methodologies. Participants indicated that change management and its application was becoming more consistent and formalized in their organization. The use of more structured and formal processes was number two in the list of trends in the 2007 study. ?
Application of change management on projects
Participants commented that change management resources were now sought out by project teams, rather than looking for projects to support as they had done in the past. Project teams were bringing change management resources on board earlier in the project, during the planning phase, and were considering people-side issues earlier. Several participants indicated that change management had become a requirement and that no major projects moved forward without change management.
Page 16
CHANGE MANAGEMENT
Change management Planning
?
I don't think that change is difficult to structure or navigate. I think we try to bend the rules; we expect people to embrace the change because we like it or we are paying for it. I have never seen a poorly-structured change succeed or a well-structured one fail. I have seen well-structured changes poorly communicated, with the result being pain on the way to the change; I've also seen badly-structured changes beautifully executed, with the result that no one changes.
?
Human behavior is very complex, but I honestly believe that organization change is often overcomplicated by bad execution and lack of clarity and a plan. Change principles are simple (does not mean easy). In my opinion, 70-90% of the successful change efforts I've been involved in have focused very heavily on the basics... Those that failed usually did so not for poor intent or a bad company strategy, but because of bad change strategy and implementation.
?
Many consultants only see half the picture and rely on historical evidence of successes. The workplace trends we are seeing do not have historical context, thereby this tactic will eliminate many potential "solutions" that previously may have worked.
?
The planning process starts well with proper forecast, and then it goes ahead with proper blueprint of plan and then comes the execution part.
?
This process being the first step, proper environmental synopsis should be made in order to keep this plan in an effective manner.
Page 17
CHANGE MANAGEMENT
Change management Communication
?
You can't communicate enough or talk to enough people. Most employees are quite satisfied with the status quo--20-60-20. Focus on the 60% in the middle--not on the 20% that will never buy-in.
?
You cannot communicate too much. Have measurable goals so you can track and communicate your progress towards the goals.
?
Have meetings at least once a week including all members who will be impacted by or are driving the process together in the same room.
?
Build skills in communication such that the real conversations can be held on a regular basis.
?
Not trying to answer questions to which we had no answers yet...maintaining credibility.
?
Communicating clearly and frequently, especially about measurements, results and consequences.
?
Getting the whole organization together can build momentum, create a memorable event, and build peer pressure for the change.
?
Every change seems to bring new stuff to do; in today's marketplace, folks have to have the option of dropping or reducing other tasks...we cannot go on adding forever.
?
Proper communication can bridge great gaps and thus we find free flow of information causing smooth organizational working.
?
This communication is necessary for entities like employees, stake holders, shareholders, society, government, suppliers etc.
?
Communication should be given top most priority in order to excel in the business workings.
Page 18
CHANGE MANAGEMENT
Change Management Consultancy
A change management consultancy is a firm specializing in services regarding organizational changes. They provide services like studying business environment, training & development, suggesting remedies, providing strategies, implementing them etc. There are many management consulancy that provide services in terms of finance, marketing, human resource, law, audit, financial architecture, import & export etc. But now we can find management consultancies specially for Change Management.
History
Management consulting grew with the rise of management as a unique field of study. The first management consulting firm was Arthur D. Little, founded in 1886 by the MIT professor of the same name.[citation needed] Though Arthur D. Little later became a general management consultancy, it originally specialized in technical research. Booz Allen Hamilton was founded by Edwin G. Booz, a graduate of the Kellogg School of Management at Northwestern University, in 1914 as a management consultancy and the first to serve both industry and government clients. After World War II, a number of new management consulting firms formed, most notably Boston Consulting Group, founded in 1963, which brought a rigorous analytical approach to the study of management and strategy. Work done at Boston Consulting Group, McKinsey, Booz Allen Hamilton, and the Harvard Business School during the 1960s and 70s developed the tools and approaches that would define the new field of strategic management, setting the groundwork for many consulting firms to follow. In 1983, Harvard Business School's influence on the industry continued with the founding of Monitor Group by six professors.
Page 19
CHANGE MANAGEMENT Specializations
Management consulting refers generally to the provision of business consulting services, but there are numerous specializations, such as information technology consulting, human resource consulting, virtual management consulting and others, many of which overlap, and most of which are offered by the large diversified consultancies listed below. So-called "boutique" consultancies, however, are smaller organizations specializing in one or a few of such specializations.
Current state of the industry
Management consulting has grown quickly, with growth rates of the industry exceeding 20% in the 1980s and 1990s. As a business service, consulting remains highly cyclical and linked to overall economic conditions. The consulting industry shrank during the 2001-2003 period, but has been experiencing slowly increasing growth since.
Currently, there are four main types of consulting firms:
1. Large, diversified organizations that offer a range of services, including information technology consulting, in addition to a strategy consulting practice (e.g. Accenture, Abeam Consulting, Capgemini, Cognizant, Deloitte, IBM, Logica, PA Consulting). Some very large IT service providers have moved into consultancy as well and are also developing strategy practices (e.g. Wipro, Tata Consultancy Services, Capgemini) 2. Medium-sized information technology consultancies that blend boutique style with some of the same services and technologies bigger players offer their clients. 3. Management and strategic consulting specialists that offer primarily Strategy Consulting and Business Intelligence Models to any industries (e.g. Oliver Wyman, Bain & Company, Booz & Company, McKinsey & Company, Arthur D. Little and The Boston Consulting Group).
Page 20
CHANGE MANAGEMENT
4. Boutique firms, often quite small, which have focused areas of consulting expertise in specific industries, functional areas or technologies. Most of the boutiques were founded by famous business theorists. Small firms with fewer than 50 employees are often referred to as niche consultancies. 5. A fifth type that is emerging is the sourcing advisory firm, that advises buyers on sourcing choices related to in sourcing, outsourcing, vendor selection, and contract negotiations. The top 10 sourcing advisors (as ranked by the Black Book of Outsourcing) were TPI, Gartner, Hackett Group, Everest Group, PwC, Avasant, PA Consulting, and EquaTerra.
Advantages
There are several potential benefits of internal consultants to those who employ them:
?
If properly managed and empowered, internal consulting groups evaluate engagement on projects in light of the corporation's strategic and tactical objectives.
?
Often, the internal consultant requires less ramp up time on a project due to familiarity with the corporation, and is able to guide a project through to implementation—-a step that would be too costly if an external consultant were used.
?
Internal relationship provides opportunities to keep certain corporate information private.
?
It is likely that the time and materials cost of internal consultants is significantly less than external consultants operating in the same capacity.
Page 21
CHANGE MANAGEMENT
?
Internal consulting positions can be used to recruit and develop potential senior managers of the organization. Lead external consulting project teams, or Act as organizational subject matter experts ?embedded‘ with external consulting teams under the direction of organizational management.
Disadvantages
?
The internal consultant may not bring the objectivity to the consulting relationship that an external firm can.
?
An internal consultant also may not bring to the table best practices from other corporations. A way to mitigate this issue is to recruit experience into the group and/or proactively provide diverse training to internal consultants.
?
Where the consulting industry is strong and consulting compensation high, it can be difficult to recruit candidates.
?
It is often difficult to accurately measure the true costs and benefits of an internal consulting group.
?
When financial times get tough, internal consulting groups that have not effectively demonstrated economic value (costs vs. benefits) are likely to face size reductions or reassignment.
Government Consultants
The use of management consulting in governments has increased significantly in recent times. Booz Allen Hamilton (now split from Booz & Company) is particularly well known now as a consultant that primarily serves the US Federal Government. Deloitte Consulting LLP applies its industry expertise and decades of experience to helping government departments and agencies solve their toughest problems. In India agriculture
Page 22
CHANGE MANAGEMENT
finance corporation limited provides consultancy mainly to governments and related institutions.
Management Consulting Companies Rating
The web service "vault.com" prepares a list of the top 50 consulting companies to work for each year. The ranking considers company culture, practice strength, prestige and compensation (6 percent), among a few other options. The top 25 for 2011 are: 1. Bain & Company (8.492) 2. Boston Consulting Group (8.176) 3. McKinsey & Company (8.159) 4. Analysis Group (7.251) 5. The Cambridge Group (7.178) 6. Deloitte Consulting LLP (7.162) 7. Oliver Wyman (7.123) 8. A.T. Kearney (7.089) 9. Triage Consulting Group (7.024) 10. Censeo Consulting Group (6.903)
Page 23
CHANGE MANAGEMENT
10 Principles of Change Management
? Address the “human side” systematically:
Any significant transformation creates ?people issues.? New leaders will be asked to step up, jobs will be changed, new skills and capabilities must be developed, and employees will be uncertain and resistant. Dealing with these issues on a reactive, case-by-case basis puts speed, morale, and results at risk. A formal approach for managing change — beginning with the leadership team and then engaging key stakeholders and leaders — should be developed early, and adapted often as change moves through the organization. This demands as much data collection and analysis, planning, and implementation discipline as does a redesign of strategy, systems, or processes. The changemanagement approach should be fully integrated into program design and decision making, both informing and enabling strategic direction. It should be based on a realistic assessment of the organization‘s history, readiness, and capacity to change.
? Start at the top:
Because change is inherently unsettling for people at all levels of an organization, when it is on the horizon, all eyes will turn to the CEO and the leadership team for strength, support, and direction. The leaders themselves must embrace the new approaches first, both to challenge and to motivate the rest of the institution. They must speak with one voice and model the desired behaviors. The executive team also needs to understand that, although its public face may be one of unity, it, too, is composed of individuals who are going through stressful times and need to be supported.
Page 24
CHANGE MANAGEMENT
Executive teams that work well together are best positioned for success. They are aligned and committed to the direction of change, understand the culture and behaviors the changes intend to introduce, and can model those changes themselves. At one large transportation company, the senior team rolled out an initiative to improve the efficiency and performance of its corporate and field staff before addressing change issues at the officer level. The initiative realized initial cost savings but stalled as employees began to question the leadership team‘s vision and commitment.
? Involve every layer:
As transformation programs progress from defining strategy and setting targets to design and implementation, they affect different levels of the organization. Change efforts must include plans for identifying leaders throughout the company and pushing responsibility for design and implementation down, so that change ?cascades? through the organization. At each layer of the organization, the leaders who are identified and trained must be aligned to the company‘s vision, equipped to execute their specific mission, and motivated to make change happen. A major multiline insurer with consistently flat earnings decided to change performance and behavior in preparation for going public. The company followed this ?cascading leadership? methodology, training and supporting teams at each stage. First, 10 officers set the strategy, vision, and targets. Next, more than 60 senior executives and managers designed the core of the change initiative. Then 500 leaders from the field drove implementation. The structure remained in place throughout the change program, which doubled the company‘s earnings far ahead of schedule. This approach is also a superb way for a company to identify its next generation of leadership.
Page 25
CHANGE MANAGEMENT
? Make the formal case:
Individuals are inherently rational and will question to what extent change is needed, whether the company is headed in the right direction, and whether they want to commit personally to making change happen. They will look to the leadership for answers. The articulation of a formal case for change and the creation of a written vision statement are invaluable opportunities to create or compel leadership-team alignment. Three steps should be followed in developing the case: First, confront reality and articulate a convincing need for change. Second, demonstrate faith that the company has a viable future and the leadership to get there. Finally, provide a road map to guide behavior and decision making. Leaders must then customize this message for various internal audiences, describing the pending change in terms that matter to the individuals.
? Involve re-engineering:
As transformation programs progress from defining strategy and setting targets to design and implementation, they affect different levels of the organization. Change efforts must include plans for identifying leaders throughout the company and pushing responsibility for design and implementation down, so that change ?cascades? through the organization. At each layer of the organization, the leaders who are identified and trained must be aligned to the company‘s vision, equipped to execute their specific mission, and motivated to make change happen. A major multiline insurer with consistently flat earnings decided to change performance and behavior in preparation for going public. The company followed this ?cascading leadership? methodology, training and supporting teams at each stage. First, 10 officers set the strategy, vision, and targets. Next, more than 60 senior executives and managers designed the core of the change initiative. Then
Page 26
CHANGE MANAGEMENT
500 leaders from the field drove implementation. The structure remained in place throughout the change program, which doubled the company‘s earnings far ahead of schedule. This approach is also a superb way for a company to identify its next generation of leadership.
? Create ownership.
Leaders of large change programs must overperform during the transformation and be the zealots who create a critical mass among the work force in favor of change. This requires more than mere buy-in or passive agreement that the direction of change is acceptable. It demands ownership by leaders willing to accept responsibility for making change happen in all of the areas they influence or control. Ownership is often best created by involving people in identifying problems and crafting solutions. It is reinforced by incentives and rewards. These can be tangible (for example, financial compensation) or psychological (for example, camaraderie and a sense of shared destiny). At a large health-care organization that was moving to a shared-services model for administrative support, the first department to create detailed designs for the new organization was human resources. Its personnel worked with advisors in cross-functional teams for more than six months. But as the designs were being finalized, top departmental executives began to resist the move to implementation.
? Communicate the message.
Too often, change leaders make the mistake of believing that others understand the issues, feel the need to change, and see the new direction as clearly as they do. The best change programs reinforce core messages through regular, timely advice that is both inspirational and practicable. Communications flow in from the
Page 27
CHANGE MANAGEMENT
bottom and out from the top, and are targeted to provide employees the right Information at the right time and to solicit their input and feedback. Often this will require over communication through multiple, redundant channels. In the late 1990s, the commissioner of the Internal Revenue Service, Charles O. Rossetti, had a vision: The IRS could treat taxpayers as customers and turn a feared bureaucracy into a world-class service organization. Getting more than 100,000 employees to think and act differently required more than just systems redesign and process change. IRS leadership designed and executed an ambitious communications program including daily voice mails from the commissioner and his top staff, training sessions, videotapes, newsletters, and town hall meetings that continued through the transformation.
? Assess the cultural landscape:
Successful change programs pick up speed and intensity as they cascade down, making it critically important that leaders understand and account for culture and behaviors at each level of the organization. Companies often make the mistake of assessing culture either too late or not at all. Thorough cultural diagnostics can assess organizational readiness to change, bring major problems to the surface, identify conflicts, and define factors that can recognize and influence sources of leadership and resistance. These diagnostics identify the core values, beliefs, behaviors, and perceptions that must be taken into account for successful change to occur.
? Address culture explicitly:
Once the culture is understood, it should be addressed as thoroughly as any other area in a change program. Leaders should be explicit about the culture and
Page 28
CHANGE MANAGEMENT
underlying behaviors that will best support the new way of doing business, and find opportunities to model and reward those behaviors. This requires developing a baseline, defining an explicit end-state or desired culture, and devising detailed plans to make the transition..
? Prepare for the unexpected:
No change program goes completely according to plan. People react in unexpected ways; areas of anticipated resistance fall away; and the external environment shifts. Effectively managing change requires continual reassessment of its impact and the organization‘s willingness and ability to adopt the next wave of transformation. Fed by real data from the field and supported by information and solid decision-making processes, change leaders can then make the adjustments necessary to maintain momentum and drive results.
? Speak to the individual:
Change is both an institutional journey and a very personal one. People spend many hours each week at work; many think of their colleagues as a second family. Individuals (or teams of individuals) need to know how their work will change, what is expected of them during and after the change program, how they will be measured, and what success or failure will mean for them and those around them.Team leaders should be as honest and explicit as possible. People will react to what they see and hear around them, and need to be involved in the change process. Highly visible rewards, such as promotion, recognition, and bonuses, should be provided as dramatic reinforcement for embracing change.
Page 29
CHANGE MANAGEMENT
CHANGE MANAGER
Change managers are professional qualifies individuals providing consultancies regarding change management. They provide various training programs to employees in order to adjust them to the changes occur in the organization. These change managers are mostly from the field of human resource or marketing and helps the firm to cope up to the new change.
Position description:
The Change Management Specialist will play a key role in helping projects (change initiatives) meet business, schedule and budget objectives. This person will focus on the people side of change – including changes to business processes, systems and technology, job roles and organization structures. The primary focus will be creating and implementing change management plans that minimize employee resistance and maximize employee engagement. The Change Management Specialist will work to drive faster adoption, greater ultimate utilization and higher proficiency on the changes impacting employees in the organization such that business results are achieved.
Supervision:
While the Change Management Specialist does not have supervisory responsibility, this person will have to work though many others in the organization to succeed. The Change Management Specialist will act as a coach for senior leaders and executives in helping them fulfill the role of change sponsor. The Change Management Specialist will also support project teams in integrating change management activities into their project plans.
Page 30
CHANGE MANAGEMENT Roles and responsibilities:
?
Apply a structured change management approach and methodology for the people side change caused by projects and change efforts.
?
Develop a change management strategy based on a situational awareness of the details of the change and the groups being impacted by the change.
?
Identify potential people-side risks and anticipated points of resistance, and develop specific plans to mitigate or address the concerns.
?
Conduct readiness assessments, evaluate results and present findings in a logical and easy-to-understand manner.
?
Develop a set of actionable and targeted change management plans – including communication plan, sponsor roadmap, coaching plan, training plan and resistance management plan.
?
Support the execution of plans by employee-facing managers and business leaders.
? ?
Be an active and visible coach to executives leaders who are change sponsors. Create and manage measurement systems to track adoption, utilization and proficiency of individual changes.
?
Identify resistance and performance gaps, and work to develop and implement corrective actions
? ?
Create and enable reinforcement mechanisms and celebrations of success. Work with project teams to integrate change management activities into the overall project plan.
?
Work with communication, training, HR and OD specialists in the formulation of particular plans and activities to support project implementation.
Page 31
CHANGE MANAGEMENT Skills and qualifications:
?
A solid understanding of how people go through a change and the change process; experience with ADKAR is a plus.
?
Experience and knowledge of change management principles and methodologies (example: Prosci certification)
?
Familiarity with project management approaches, tools and phases of the project lifecycle.
? ? ? ? ? ? ? ? ?
Exceptional communication skills – both written and verbal. Able to work effectively at all levels in an organization. Excellent active listening skills. Problem solving and root cause identification skills. Strong analytic and decision making abilities. Must be a team player and able to work with and through others. Ability to influence others and move toward a common vision or goal. Experience with large-scale organizational change effort. Change Management Professional designation is a plus (learn more about the new Association of Change Management Professionals and the Change Management Professional designation at the Prosci Global Conference or by visiting the new ACMP® website)
?
Previous change management experience is an add on advantage.
Page 32
CHANGE MANAGEMENT Professional Skills
? ? ? ? ? ? ? ? ? ? ? ? ? ?
Perform the activities and tasks for which this role is responsible, Apply the techniques necessary to complete the responsibilities of this role, Use the tools required by these activities, tasks and techniques. In the human resource skills assessment, Job classification knowledge. Qualification in human resource management In designing and developing training programs, In facilitating workshops, In organizational re-structuring, In designing and developing communication and publicity material, In implementing and managing communication and publicity programs. Handling domestic and international clients. Handling industrial relation programs and public relations. Should be well equipped with proper inter personal skills and should we tech savy.
Page 33
CHANGE MANAGEMENT
Kotter's 8-Step Change Model
Implementing change powerfully and successfully What was true more than two thousand years ago is just as true today. We live in a world where "business as usual" IS change. New initiatives, project-based working, technology improvements, staying ahead of the competition - these things come together to drive ongoing changes to the way we work. Step One: Create Urgency For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving.
?
Identify potential threats, and develop scenarios showing what could happen in the future.
? ?
Examine opportunities that should be, or could be, exploited. Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking.
?
Request support from customers, outside stakeholders and industry people to strengthen your argument.
Step Two: Form a Powerful Coalition Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough - you have to lead it.
? ? ?
Identify the true leaders in your organization. Ask for an emotional commitment from these key people. Work on team building within your change coalition.
Page 34
CHANGE MANAGEMENT
?
Check your team for weak areas, and ensure that you have a good mix of people from different departments and different levels within your company.
Step Three: Create a Vision for Change When you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember. A clear vision can help everyone understand why you're asking them to do something. When people see for themselves what you're trying to achieve, then the directives they're given tend to make more sense.
? ?
Determine the values that are central to the change. Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization.
? ?
Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five minutes or less.
Step Four: Communicate the Vision What you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do. It's also important to "walk the talk." What you do is far more important - and believable - than what you say. Demonstrate the kind of behavior that you want from others.
? ?
Talk often about your change vision. Openly and honestly address peoples' concerns and anxieties.
Page 35
CHANGE MANAGEMENT
?
Apply your vision to all aspects of operations - from training to performance reviews. Tie everything back to the vision.
?
Lead by example.
Step Five: Remove Obstacles If you follow these steps and reach this point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting.
? ?
Identify, or hire, change leaders whose main roles are to deliver the change. Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they're in line with your vision.
? ? ?
Recognize and reward people for making change happen. Identify people who are resisting the change, and help them see what's needed. Take action to quickly remove barriers (human or otherwise).
Step Six: Create Short-term Wins Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress. Create short-term targets - not just one long-term goal. You want each smaller target to be achievable, with little room for failure.
?
Look for sure-fire projects that you can implement without help from any strong critics of the change.
?
Don't choose early targets that are expensive. You want to be able to justify the investment in each project.
Page 36
CHANGE MANAGEMENT
?
Thoroughly analyze the potential pros and cons of your targets. If you don't succeed with an early goal, it can hurt your entire change initiative.
?
Reward the people who help you meet the targets.
Step Seven: Build on the Change Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Each success provides an opportunity to build on what went right and identify what you can improve.
? ? ? ?
After every win, analyze what went right and what needs improving. Set goals to continue building on the momentum you've achieved. Learn about kaizen, the idea of continuous improvement. Keep ideas fresh by bringing in new change agents and leaders for your change coalition.
Step Eight: Anchor the Changes in Corporate Culture
Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started.
?
Talk about progress every chance you get. Tell success stories about the change process, and repeat other stories that you hear.
?
Include the change ideals and values when hiring and training new staff.
Page 37
CHANGE MANAGEMENT
?
Publicly recognize key members of your original change coalition, and make sure the rest of the staff - new and old - remembers their contributions.
?
Create plans to replace key leaders of change as they move on. This will help ensure that their legacy is not lost or forgotten.
Key Points You have to work hard to change an organization successfully. When you plan carefully and build the proper foundation, implementing change can be much easier, and you'll improve the chances of success. If you're too impatient, and if you expect too many results too soon, your plans for change are more likely to fail. Create a sense of urgency, recruit powerful change leaders, build a vision and effectively communicate it, remove obstacles, create quick wins, and build on your momentum. If you do these things, you can help make the change part of your organizational culture.
Page 38
CHANGE MANAGEMENT
Change management Process
Change management process deals with certain steps which ae used in making the changes or the alterations in the existing strategies of the business. Here, we have some steps which give us an exact procedure for this process. Change Management process is extremely important as it acts as a core application process for the organization.
Step 1: Defining process and policies ? Procedures for handling changes—how changes are requested, how they are processed and scheduled for implementation, how they are applied, and what the criteria are for backing out changes that cause problems ? Roles and responsibilities of the IT support staff—who receives the change request, who tracks all change requests, who schedules change
implementations, and what each entity is supposed to do ? Measurements for change management—what will be tracked to monitor the efficiency of the change management discipline ? ? Tools to be used Type of changes to be handled and how to assign priorities—priority assignment methodology and escalation guidelines ? Back-out procedures—Actions to take if applied changes do not perform as expected or cause problems to other components of the system
Step 2: Plan for implementation of changes ? Change request prioritization
Page 39
CHANGE MANAGEMENT
? ? ? ? Resource requirements for implementing the change Impact to the system Back-out procedures Schedule of implementation
Step ?
3: Implement and monitor the changes Do proper implementation as per the made strategies and see to it that each and every resource is has optimum utilization.
?
When strategies are properly executed we get the results. After the results we have to evaluate it with the set standard. We have to compare it and then we have the correct result.
?
When the results are true it‘s time to go ahead, but if there is any kind of deviation hen we have to amend the strategies, execute it in correct way and then compare it with the set standard.
Step 4: evaluation and modification of changes ? ? ? ? ? ? Change implementation planning was sufficient. Changes to certain resources are more prone to problems. Changes are not being applied on time. Not enough changes are being processed. Too many changes are being backed out. Changes are affecting the system availability.
Page 40
CHANGE MANAGEMENT
? Not all changes are being covered.
Step ?
5: Document all changes. Perhaps the hardest part of change management is documenting all actions performed before, during, and after the change has been applied.
?
Technical people often fail to document changes, and we have seen many problems caused because not everyone knew about earlier changes.
?
And when we have proper documentation we can use it for future reference and it also act as an evidence of our work.
?
It also helps in making project reports or give information to shareholders and stakeholders.
Page 41
CHANGE MANAGEMENT
Leadership and Change Management
Leadership is often considered a mysterious quality, often linked with charisma and other exotic personality traits. It is considered more inspiring than management. However, such assumptions have no place in a study of leadership and management of businesses. Leadership and management are essential, distinctive, and complementary systems of action. If they fail to complement one another in practice, the result is chaos or stagnation. A majority of today's corporations are over-managed and under-led. They are lacking in leadership. Well-led organizations do not wait for leaders to emerge on their own, but actively seek out people with leadership potential and groom them into leaders, while exposing them deliberately to varied work experiences. The leadership process can be institutionalized with careful selection, nurturing, and encouragement. Leaders have to be groomed, and leadership has to be institutionalized. Organizations grow by expanding into new competitive spaces, attaining a complex mix of financial, material and knowledge assets, expanding market scope, and replicating and standardizing their wins in similar market spaces.
Qualities for Effective Leadership
?
Set An Example - As the top person in your business, others look to you for direction, not only in terms of business needs, but also related to behavior, ethics, and standards. If you want others in your business to change, you must set a stellar example for them to follow.
?
Eliminate Perks - It's important to understand that change management is more successful when the barriers between management and frontline worker are minimized. Perks show favoritism and suggest division between ranks. By eliminating or reducing your own perks, you show your desire to level the playing field. Try to make a connection with the employee.
Page 42
CHANGE MANAGEMENT
?
Walk Around and Talk to People - The old school of business management promoted the idea that the top person was off limits, enclosed in his or her own glass tower. Leaders of today interact more with their employees. They manage by walking around and getting to know their employees and learning about the problems they are facing on a day-to-day basis.
?
Be Genuine - As a leader of change management, it is important to be as real and honest as possible in your interactions with others.
?
Have Passion - To be a strong leader, you must have passion around your vision. Without it, you will soon find yourself facing burnout. Leadership is tiring and saps energy at a very high rate so make sure you are passionate about what you do.
Page 43
CHANGE MANAGEMENT
CHANGE MANAGEMENT & BPO INDUSTRY
BPO INDUSTRY in INDIA
Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Few of the motivation factors as to why BPO is gaining ground are:
? ? ? ? ?
Factor Cost Advantage Economy of Scale Business Risk Mitigation Superior Competency Utilization Improvement
Generally outsourcing can be defined as - An organization entering into a contract with another organization to operate and manage one or more of its business processes. Different Types of Services Being Offered By BPO's 1. Customer Support Services Our customer service offerings create a virtual customer service center to manage customer concerns and queries through multiple channels including voice, e-mail and chat on a 24/7 and 365 days basis.
Page 44
CHANGE MANAGEMENT
Service Example: Customers calling to check on their order status, customers calling to check for information on products and services, customers calling to verify their account status, customers calling to check their reservation status etc.
2. Technical Support Services Our technical support offerings include round-the-clock technical support and problem resolution for OEM customers and computer hardware, software, peripherals and Internet infrastructure manufacturing companies. These include installation and product support, up & running support, troubleshooting and Usage support. Service Example: Customers calling to resolve a problem with their home PC, customers calling to understand how to dial up to their ISP, customers calling with a problem with their software or hardware.
3. Telemarketing Services Our telesales and telemarketing outsourcing services target interaction with potential customers for 'prospecting' like either for generating interest in products and services, or to up-sell / promote and cross sell to an existing customer base or to complete the sales process online. Service Example: Outbound calling to sell wireless services for a telecom provider, outbound calling to retail households to sell leisure holidays, outbound calling to existing customers to sell a new rate card for a mobile service provider or outbound calling to sell credit or debit cards etc.
4. Employee IT Help-desk Services Our employee IT help-desk services provide technical problem resolution and support for corporate employees.
Page 45
CHANGE MANAGEMENT
Service Example: of this service include level 1 and 2 multi-channel support across a wide range of shrink wrapped and LOB applications, system problem resolutions related to desktop, notebooks, OS, connectivity etc., office productivity tools support including browsers and mail, new service requests, IT operational issues, product usage queries, routing specific requests to designated contacts and remote diagnostics etc.
5. Insurance Processing Our insurance processing services provide specialized solutions to the insurance sector and support critical business processes applicable to the industry right from new business acquisition to policy maintenance to claims processing. Record Changes like Name, Beneficiary, Nominee, Address; Collateral verification, Surrender Audits Accounts Receivable, Accounting, Claim Overpayment, Customer care service via voice/email etc.
6. Data Entry Services / Data Processing Services Service Example: ? ? ? ? ? ? Data entry from Paper/Books with highest accuracy and fast turnaround time (TAT) Data entry from Image file in any format Business Transaction Data entry like sales / purchase / payroll. Data entry of E-Books / Electronic Books Data Entry : Yellow Pages / White Pages Keying Data Entry and compilation from Web site
Page 46
CHANGE MANAGEMENT
? ? ? ? ? ? ? ? ? ?
Data Capture / Collection Business Card Data Entry into any Format Data Entry from hardcopy/Printed Material into text or required format Data Entry into Software Program and application Receipt and Bill Data Entry Catalog Data Entry. Data Entry for Mailing List/Mailing Label. Manu scripting typing in to word Taped Transcription in to word. Copy, Paste, Editing, Sorting, Indexing Data into required format etc.
7. Data Conversion Services Service Example:
? ? ?
Conversion of data across various databases on different platforms Data Conversion via Input / Output for various media. Data Conversion for databases, word processors, spreadsheets, and many other standard and custom-made software packages as per requirement.
? ? ? ? ? ? ? ?
Conversion from Page maker to PDF format. Conversion from Ms-Word to HTML format Conversion from Text to Word Perfect. Conversion from Text to Word to HTML and Acrobat Convert Raw Data into required MS Office formats. Text to PDF and PDF to Word / Text / Doc Data Compilation in PDF from Several Sources. E-Book Conversion etc.
Page 47
CHANGE MANAGEMENT
8. Scanning, OCR with Editing & Indexing Services Service Example: ? ? ? ? ? ? High speed Image-Scanning and Data capture services High speed large volume scanning OCR Data From Scanned page / image Scan & OCR paper Book in to CD. ADOBE PDF Conversion Services. Conversion from paper or e-file to various formats
9. Book Keeping and Accounting Services Service Example:
? ? ? ? ?
General Ledger Accounts Receivables and Accounts Payable Financial Statements Bank Reconciliation Assets / Equipment Ledgers etc.
.
Page 48
CHANGE MANAGEMENT
Challenges for a HR Professional in BPO
1. Brand equity: People still consider BPO to be "low brow", thus making it difficult to attract the best talent.
2. Standard pre-job training: Again, due to the wide variety of the jobs, lack of general clarity on skill sets, etc, there is no standard curriculum, which could be designed and followed.
3. Benchmarks: There are hardly any benchmarks for compensation and benefits, performance or HR policies. Everyone is charting their own course.
4. Customer-companies tend to demand better results from outsourcing partners than what they could actually expect from their own departments. "When the job is being done 10,000 miles away, demands on parameters such as quality, turn around timeliness, information security, business continuity and disaster recovery, etc, are far higher than at home. So, how to be more efficient than the original?
5. Lack of focused training and certifications Given this background, the recruiting and compensation challenges of HR departments are only understandable.
Page 49
CHANGE MANAGEMENT
Key To success The key to success in ramping up talent in a BPO environment is a rapid training module. The training component has to be seen as an important sub-process, requiring constant reengineering.
Business Process Outsourcing: The Top Rankers
WNS has emerged as the top BPO in India, pushing Wipro Spectra mind to the second position, according to a survey done by NASSCOM. The basis of ranking is the revenues generated by the BPO companies in 2003-04, as per US GAAP. A list of top fifteen BPO companies in India is given below.
1. WNS Group 2. Wipro Spectra mind 3. Daksh e-Services 4. Convergys 5. HCL Technologies 6. Zenta 7. ICICI Onesource 8. MphasiS 9. EXL 10. Tracmail 11. GTL Ltd. 12. vCustomer 13. HTMT 14. 24/7 Customer 15. Sutherland Technologies
Page 50
CHANGE MANAGEMENT Employee Benefits Provided By Majority of the BPO Companies
?
Provident Fund: As per the statutory guidelines, the employee is required to contribute a percentage of his basic salary and DA to a common fund. The employer for this fund contributes as well. The employee can use the amount deposited in this fund for various personal purposes such as purchase of a new house, marriage etc.
?
Gratuity: Gratuity is one of the retrial benefits given to the employee in which the employer every year contributes a particular amount. The fund created can be used by the employee for the purpose of long-term investment in various things such as a house etc.
?
Group Med claim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female employees or spouse of male employees. All employees and their dependent family members are eligible. Dependent family members include spouse, non-earning parents and children above three months
?
Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. It is applicable to all the employees of JFWTC and covers total / partial disablement / death due to accident and due to accidents.
?
Subsidized Food and Transportation: The organizations provides transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized.
?
Company Leased Accommodation: Some of the companies provides shared accommodation for all the out station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills as well as the Society
Page 51
CHANGE MANAGEMENT
charges for the shared accommodation. The purpose is to provide to the employees to lead a more comfortable work life balance.
?
Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities.
?
Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and efficient payment of official expenses which the employees undertake for purposes such as travel related expenses like Hotel bills, Air tickets etc
?
Cellular Phone / Laptop: Cellular phone and / or Laptop is provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding of the asset.
?
Personal Health Care (Regular medical check-ups): Some of the BPO'S provides the facility for extensive health check-up. For employees with above 40 years of age, the medical check-up can be done once a year.
?
Loans: Many BPO companies provides loan facility on three different occasions: Employees are provided with financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the time of their wedding. And, The new recruits are provided with interest free loans to assist them in their initial settlement at the work location.
?
Educational Benefits: Many BPO companies have this policy to develop the personality and knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees, examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification at India's top most Business Schools.
?
Performance based incentives: In many BPO companies they have plans for , performance based incentive scheme. The parameters for calculation are process
Page 52
CHANGE MANAGEMENT
performance i.e. speed, accuracy and productivity of each process. The Pay for Performance can be as much as 22% of the salary.
?
Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs.
?
Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.
? ? ?
Paid Days Off Maternity Leave Employee Stock Option Plan
Why people prefer to join BPO's?
In general a person with any graduation can join any of the BPO. Some BPO's like to take people with MBA but then again the specialization are of an individual hardly makes any difference. Again, this is the industry, where there is no reference checks and very often people don't even specify there exact age. Lets me share with you some of the reasons as why people prefer to join a BPO: 1. Did not get a better job. 2. Find nothing better to do. 3. Education level doesn't matter 4. Good work environment 5. Good Benefits
Page 53
CHANGE MANAGEMENT
6. Flexibility of time 7. Attractive life style 8. Transport facility
Why people leave the BPO's?
When there are so many benefits associated with BPO industry. When there are so many privileges for the BPO employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as well?? Here are some of the reasons for a BPO professional to change his/her job. 1. No growth opportunity/lack of promotion 2. For higher Salary 3. For Higher education 4. Misguidance by the company 5. Policies and procedures are not conducive 6. No personal life 7. Physical strains 8. Uneasy relationship with peers or managers
Page 54
CHANGE MANAGEMENT Employee Opinion
With so much of uncertainty in the market. People are trying their best to stop or to at least have a control on the attrition rate let me share with you the opinion of the real gurus of the industry. Career growth in the industry is robust and there is a long-term opportunity. The great growth momentum that the industry is witnessing is creating both vertical and lateral career opportunities. There also exists enough growth opportunities in the middlemanagement and supervisory level within the industry". - Aadesh Goyal, Executive Vice President & GM, Hughes BPO Services "It will not be possible for the industry to arrive at a blanket agreement on poaching but bilateral agreements between companies are being signed. Basic norms are being put in place and code of ethics is being stressed upon by industry players within the sector with respect to HR practices. We are encouraging companies to adopt responsible behavior in order to ensure that the industry does not become a victim of its own actions. Industry needs to go aggressive but not cannibalistic." - Mr. Suren Singh Rasaily, Senior Vice President, NIIT Ltd. and Head Plantworkz.
Page 55
CHANGE MANAGEMENT
COMPANIES GOING GREEN
ECO CHANGE MANAGEMENT
In the past most companies were resistant to implement technology which would help in reducing pollution, which is a major environmental issue. However, with the growing awareness among people and the pressure from green bodies, not to mention consumers, most companies have changed their strategies and have implemented green technology so as to prevent environmental degradation. Automobile and insurance companies are the major organizations who have implemented strategies of going green. Automobile companies have made vehicles which emit less carbon compounds and sulfur, while insurance companies offer better premiums for people opting for eco-friendly and hybrid cars. The above mentioned example is just one
Page 56
CHANGE MANAGEMENT
way of companies going green, there are several others? New items are being developed which help save energy and reduce pollution, which has become a major global environmental issue. Even though in the past most companies were resistant to implementing technology which would reduce environmental pollution and save energy as it would mean changing the way things are done which have been built over several years. However, contrary to what people believe, there are several benefits of companies going green. One of the main reasons as to why are companies going green is that people are becoming far more conscious and are buying products only from producers who produce environment friendly products. Moreover, people have become conscious of recycling things and there are many who ask how recycling affect environment does. The simple answer to that is when a thing which is already used is used again; it reduces the cost of making a particular thing, thereby reducing the need of power.
The main reason for the initial resistance of companies to go green is that the whole process of change would be time consuming and expensive. This is partially true, but then if these environment friendly products are used, they would help save a lot of money in the long run. Let's say that you have a business, and you employ 1,000 employees. Every day, you need to communicate with all the employees and if you do this on paper, imagine the amount of paper you would need every day.
On the other hand, if you digitize this paperwork and send emails, you can not only save your costs of buying paper and at the same time saving valuable trees from being cut down, thereby saving the environment. Moreover using fluorescent light bulbs costs more when you buy them compared to standard light bulb, but when you compare the life of both the bulbs, the fluorescent light bulbs lasts much longer.
Page 57
CHANGE MANAGEMENT
Major Companies Going Green
Some of the major companies which have implemented green strategies include Bank of America, General Electric, DuPont and Home Depot. There are many more, but these are worth mentioning as they have been most resistant to change. Today, Bank of America uses much less paper than it has traditionally used and the best part is that the customer base of the company has not reduced at all, rather it has increased. Moreover, they recycle paper internally and the best part is they offer employees a cash back offer to a certain limit if they buy hybrid vehicles. You may like to know more on hybrid cars and the environment. On its part General Electric have started developing environmental friendly product, especially, solar panels and has successfully generated billions in revenue. The company was one of the worst polluters, but has today taken steps to clean up the areas in which their plants are located. Environmentalists over the last several years criticized Dupont due to their ways of not caring for the environment. However, due to government regulations and people's sustained pressure, the company has taken steps to drastically lower its emissions of polluting greenhouse gases. Moreover, it has appointed an eminent environmentalist as its advisor on its board and the best part is they have successfully reduced pollution by more than 50%.
Tips for Companies Going Green
The following are few ways in which companies can go green.
? ?
See to it that all mechanical equipments are well maintained. Recycle or donate old equipment or computers.
Page 58
CHANGE MANAGEMENT
? ?
Buy energy-efficient printers, PCs, etc. Cleaning products which are eco-friendly should only be bought as these are nontoxic and biodegradable.
? ?
Instead of using general batteries, rechargeable batteries can be used. Amount of paper should be reduced by trying to go for online bill payment, online banking and emails.
? ? ? ? ?
Wherever possible double-sided printing should be used. Recycle ink cartridges, aluminum, plastic and paper. Use less amount of paper and focus on emails or electronic documents. Companies should try to provide bus services to all the employees. Employees should be motivated to attend green conferences in order to understand the value of eco friendly concept.
Page 59
CHANGE MANAGEMENT
CASE STUDY- SONY
Sony takes up the Eco Challenge to reduce CO2 emissions
The earth's climate is in deep trouble, and there are many signs we've overlooked for many centuries. But the ugly truth people must know and accept is that climate change is a situation that will not go away at any time. Most of the warming in the past years is attributed to human activities. Thanks to our industrialized pursuits and ambitions, the presence of anthropogenic greenhouse gas in the atmosphere has now become as available as the oxygen you are breathing right at this very moment. It took the scientific community so many years to arrive at a consensus that climate change is happening and that strong international political action must take place in order to effectively prepare of adaptation measures. And that latter scenario has yet to happen. The opportunity to conjure a strong political force that would've been a better and effective way to address climate issues on an international level have come to a halt stopping the global initiative from going full scale. You need to make the necessary preparations, and as a result more and more companies have decided to go green.
Eco Friendly tips for Employees:
1. Engage in climate awareness campaigns so everybody increases their knowledge of saving the climate. By doing so, they can influence others to help as well. 2. Save energy at home and at work. Be more conscious of what you use and how much you use. Simply switch off any unused electric-consuming device and buy the most energy-efficient products, especially for lighting. And most importantly, switch off computers when everybody gets out of the office. 3. Start a cool and smart way of handling work-related tasks. Offices consume more energy for air-conditioning. You can adapt sustainable and living designs. You can
Page 60
CHANGE MANAGEMENT
achieve this by putting more plants and opening some windows on areas that aren't as frequently used. 4. Adopt a climate-friendly travelling means for work. Give allowance to encourage people to take public transports or arrange carpools for people who live in the same area. 5. Less is more. At this time of economic hardship, less consumption is beneficial to everyone. Wise management of time and resources spares the environment from accumulating garbage contribution. Recycle papers when able and route emails for memos. 6. Be a part of the green revolution. Support environment-saving activities, programs, and technologies. You can help raise public awareness by encouraging people to be active in green events. Sponsor a few one of your own and show people just what they can benefit from it.
Interview with SONY‘s Business Development Manager for Corporate Strategies Mr. Adhiraj Shah.
1. How important are green issues to Sony? We see ?green issues‘ and sustainability as a critical part of our company ethos and activities. The main aim of our sustainability activities is to both minimize our impact on the environment (which includes tough targets to reduce waste and energy) as well as to demonstrate that technology can be an important part of the solution to climate change issues and how we as a technology company can help with finding solutions – thus having an overall net positive impact as a company.
Page 61
CHANGE MANAGEMENT
Eco conscious thinking also influences our product cycles – from the materials we source, recycle and reuse in manufacture, to the development of smaller packaging that takes less space for more energy efficient transportation. . 2. What have Sony done in the last 12 months to improve their carbon
footprint?
March 2009 saw the announcement that CO2 emissions from Sony‘s European sites have reduced by 90% (equivalent to 113.000 tones) over the period FY2000 to FY2008. The achievement of this reduction is part of the overall Sony commitment to reducing its impact on the environment, as mentioned above. In addition to the reduction of CO2 emissions, Sony Europe was proud to announce last summer that all of its main 32 sites in the region were powered by electricity from renewable sources. Energy saving measures have the biggest priority, with those that have been implemented by European manufacturing sites accumulating to an energy consumption reduction of 20.000.000 kWh in FY08. 3. How big an impact do you think our increasing reliance on technology has
on the environment?
As a whole, our use and reliance of technology has grown over time. Some innovations in technology have a very positive role to play – such as better communication technology in video conferencing and telepresence solutions, to name one example, so people don‘t have to travel huge distances. At Sony we recognize that our products can have a negative impact on the environment, especially in terms of energy consumption, so we‘re looking at many different ways to try to minimize power consumption in our products.
Page 62
CHANGE MANAGEMENT
This was an initiative that Sony wanted to be a part of as we could add our technology and engineering skills to the project and help this young team‘s idea become a reality. To apply technology to help solve the problems of climate change is at the heart of Sony‘s philosophy and we will continue with these types of initiatives into 2010 and beyond. 4. Has Sony released any products that will help customers reduce their
carbon emissions? If so, how will these products help the environment?
Our 2010 BRAVIA range of TVs continues to have a strong focus on eco-aware credentials, which have been one of the cornerstones of our LCD TV development for a long time now, including the continuing push to reduce power consumption. The 2010 BRAVIA range of TVs incorporates LED backlighting technology, which provides superior performance with lower energy consumption. This reduced energy consumption means the majority of Sony‘s 2010 range of TVs have been awarded the ?EU Flower‘ eco symbol, the official EU mark for greener products. This model is also supplied in an environmentally friendly, 100% recycled material carry bag. The bags replace individual cardboard cartons, reducing packaging material from factory to store and from store to home. This means reduced CO2 emissions when the models are transported, as well as less waste, as there is no outer packaging.
5. Does Sony offer an exchange or recycling program for old Sony
merchandise?
Sony Europe is a member of several schemes financing the European Waste Electronic and Electronic Equipment (WEEE) regulations, which include batteries and packaging take-back and recycling schemes.
Page 63
CHANGE MANAGEMENT
6. What are your top tips for becoming greener at home? Here are three of the best tips from SONY: 1. Turn off your screen: switch the picture off if you‘re listening to music through your laptop, and in a year you will save enough energy to charge your MP3 player more than 10,000 times 2. Switch off connected equipment: we know we should switch the TV off when not watching. But did you know that by switching off connected equipment like games consoles and home cinema systems for just one night could save enough energy to run the tumble dryer for 2 hours? 3. Turn down the brightness: most TVs and laptops allow you to change the brightness of the picture. Turn the brightness down, and in a year you could save enough energy to run sixty loads of laundry.
Page 64
CHANGE MANAGEMENT
VISIT REPORT- CAPGEMINI
How Capgemini Leads the Way in Leadership
Capgemini Technologies Ltd. Was started in 1963 by four people with US$ 25000. Today, they are a global leader in the "next generation" of IT and consulting with revenues of over US$ 25 billion. Capgemini defines designs and delivers technologyenabled business solutions that help Global 2000 companies win in a Flat World. Capgemini also provides a complete range of services by leveraging our domain and business expertise and strategic alliances with leading technology providers. India's boom helped create a shortage of talented leaders. IT giant Capgemini took bold actions other Indian companies would be wise to follow. Three years ago, leaders at IT giant Capgemini realized that the company faced a leadership crisis. In the midst of unprecedented growth, people were being rushed into jobs for which they were unprepared. According to Nandita Gurjar, senior vice-president and group head of human resources at Capgemini, many Indian organizations today face a similar talent problem. "In part because of the phenomenal growth this country has seen over the past 5 to 10 years, people started to get promoted before their time," Gurjar says. All too often, the result is the perception on the part of the jobholder that they are not empowered. While they may have authority, they lack the experience and confidence to be true leaders. "Retaining those people is very hard. Attrition is high," she says. And why wouldn't it be in a growing economy with plenty of employment opportunities elsewhere? The Capgemini reaction was bold and swift. In 2007 it created an 18-month initiative that reorganized the business into new roles and new structures. Job requirements were revised and human resources created new job descriptions to reflect the new requirements. For the first time this included years of experience, role maturity
Page 65
CHANGE MANAGEMENT
That's why the initiative's communications component was so important. During the reorganization, up to 15% of the employees were transferred to positions with less authority. "We told them, 'you are just not ready. We are setting you up for failure by keeping you in the role,'" says Gurjar. "It took us months to communicate that and convince the communication champions at all levels that this was a good idea." Line managers, she says, had to communicate the message and get buy-in from the line. That had to be handled carefully.
Sustainability Is Key
Capgemini handles leadership development better than most other Indian companies, according to Jacob Peter, a consultant in Hay Group's New Delhi office. "A leader's greatest value is in providing clarity, setting the standards, and giving constructive feedback," he says. Leaders in India need to understand that this—and not merely barking out orders—is their prime role. That's the difference between management and leadership. But a lot of leaders still don't get it, says Peter. "They look for the quickest way to get the project out. But they're not thinking about the process of communicating context and clarification to subordinates. That's the hard work of leadership."
This reluctance might come from an economy that began liberalizing only recently. According to Peter: "Until the early '90s if you got a license to manufacture a product, you were set." Supply was constrained and demand wasn't an issue, he says. So the lack of leadership didn't affect companies' balance sheets in a significant way. Another factor that might be contributing to a leadership crisis: Until very recently, Indian organizations were mostly hierarchical. Now they're getting flatter. According to Peter, many traditional leaders are simply resistant to change. Perhaps it's because of this
Page 66
CHANGE MANAGEMENT
top-down approach that leaders demand control and de-motivate their people, he says. Now that these organizations are competing in the global market, Peter believes that their leaders must adopt varying styles of leadership—or possibly face dire consequences.
Confronting a de-motivating climate
The data seems to back up Jacksons and Peter's perceptions about Indian leadership. In a 2009 Hay Group review of 1,249 leaders from high-profile organizations operating in the Indian market, Hay Group found that more than 60% create a de-motivating climate and do not engage those they lead. According to the research, only 18% create an engaging climate that encourages high performance. If enough of today's leaders fail to motivate the people who work for them, how will their organizations sustain even conservative growth estimates? How will they keep employees around long enough to develop them into effective leaders? Capgemini, he says, is doing a lot. "It is walking the talk when it comes to investing in developing its leaders." The company has set up what is arguably the world's largest corporate training facility at its 270-acre campus in Mysore. Money, effort, and time are invested in developing leaders. "That's one reason why Capgemini can compete globally," says Peter. "They have a talent pipeline that can feed this growth." What puts Capgemini ahead of the curve is more than just the good-news story behind it. With Capgemini leading the way for Indian organizations committed to world-class leadership,
Page 67
CHANGE MANAGEMENT Change management strategy for CAPGEMINI:
• Understand the organizational context. "Be clear on how the organization's current and future business strategy will impact the organizational structure and its talent needs," he says. • Think about demand. "Ask what the business-critical roles for my organization are— what kind of roles is the future going to bring?" suggests Peter. For example, if your organization is planning an aggressive international expansion, what kind of new skills or competencies would the company demand from its people? • Think about supply. Take a long, hard look at the current state of talent in your organization. Where are the critical gaps? Who are the people in line to take over the critical roles in the future? How far are they from being ready? Where is your talent pipeline most likely to leak? Keep reviewing the supply situation consistently. • Aggressively create and implement a "talent risk management" strategy. This should mitigate any demand-supply imbalances in your talent pipeline. • Provide incentives to leaders in your organization who not only perform, but create committed and energized teams, too. .
Key Elements of Capgemini Project Management
Traceability
Traceability ensures all Requirements are implemented in design, code, testing, and helps to identify impacted programs/documents in case of any change. It keep maintain reference between Requirement Number, Description, HLD Reference, DD Reference, Unit Test Plan Reference, Integration Test Plan Reference, System Test Plan Reference. Both forward and backward traceability exists. Forward traceability ensures all
Page 68
CHANGE MANAGEMENT
requirements are incorporated into product. Backward traceability ensures no unnecessary functionality is included unless specifically called for by a requirement.
Defect Detection, Prevention, Tracking Defect Detection includes Reviews and Testing, which are common technique in project management. For Defect Prevention, Capgemini suggests Learning from past projects, doing defect prevention regularly, and measuring the improvement. In Defect Tracking, it is ensured that all defects are closed.
Measures & Metrics Measures are rooted in scientific principles and give numeric meaning to physical attributes. And metrics are derived or proposed measures that cannot be directly observed, which provides insight into process or product quality characteristics.
At Capgemini, Measures are also called Basic Metrics, which include effort, defects, size, and schedule. Metrics are referred to as Derived Metrics, which include Process Metrics, Product Metrics, and Service Metrics are used for setting quantifiable goals, measuring and tracking progress, taking decisions, and planning improvements.
Estimation
Estimation is based on history data. Using RFP and requirement SPEC can estimate Size. Basing size, using Productivity, Skill Requirements, Execution Complexity,
Risks/Uncertainties can estimate Effort. Basing Effort, using Resource availability, Dependencies/Constraints can estimate Time and Schedule. With Time and Schedule, Unit Costs, Costs can be estimated.
Page 69
CHANGE MANAGEMENT
Quality Assurance & Quality Control Quality Assurance focuses on process. It ensures that Project Management Plan is followed. It also defines the project process through the project plan. Besides, it does Technology and Business domain training, and does audits.
Risk Mitigation At Capgemini, a detailed plan for risk identification, monitoring and mitigation is a part of project planning. It covers risk identification, prioritization and mitigation options. Our business continuity plans are focused on Infrastructure, Security, Confidentiality and
Influx: Influx is Capgemini‘ methodology for defining effective IT solutions for enterprise initiatives. It provides a business-process view for any IT initiative to understand the impact of IT on specific processes. Its framework is based on the digital concept of an extended organization that includes suppliers, customers, and partners - to study the roles of different entities, various systems and their working.
PRISM:
Project Reviews by Capgemini Senior Management (PRISM) is a web-based Intranet tool to automate the workflow for reviews, in line with engagement schedules and plans. This review mechanism with the help of the PRISM tool offers better visibility into engagement risks for the client as well as for Capgemini, and drives process improvement and sharing of best practices.
Page 70
CHANGE MANAGEMENT
CONCLUSION
Now we have come to the end of the project. We have seen what is change management, its types, strategies, importance, objectives etc. with this we realize that how immensely important is this change management. This study states the actual implementation of strategies when we face certain changes. Change can be found in any of the department or at any level. What we have to do is accept it.
It is truly said that, there is always room for improvement. And we can improve if we keep a check on our work, plans and employees. In today‘s competitive world we can never know, what lies ahead of us. Is it good or bad? Is there an opportunity or it‘s a threat. But we have to trust our intelligence and instinct and go ahead.
This entire study states a simple statement, that one who does not accept change vanishes and one how learns to accept it prevails. And now it‘s up to the companies, do they what to survive in this ever changing market or just vanish without a trace.
Change is what we believe in; Change is what bound to happen. - Barrac Obama. US President
Page 71
CHANGE MANAGEMENT
BIBLIOGRAPHY
Books referred:
? ? ? Change Management Strategies: Paul Falcon Vol. 1(2003, 1st Edition) Corporate Strategies: Arnold McGill (Millennium Edition July 1999 ) Business & Globe: Kyohino Mariachis ()
Webliography:
? ? ? ? ? ?http://wnsindia/startpage-operationshttp://capgemeni/infocom-brosure025474http://sonyasia-bizworld/companyprofile7164http://wikiworld-changemanagement/strategies/processHttp://HRM/organizationalbehavior-reconsruction27.145http://OCM-changetrainer/kotter-124.45
Page 72
CHANGE MANAGEMENT
ANNEXURE 1
Rangara Infrastructure Ltd.
Q. Give details of impact of recession on construction firms? Q. What were the strategies used to tackle the recessional change? Q. What is the first step to be taken while handling personnel at such time? Q. What did the company do in order to get business orders? Q. Where there any major changes in the operational part of business?
The above questions were asked to Vice President J K Sayed of Rangara Industries and useful insights were taken regarding efficiency management. And they were kind enough to send the certificate of this visit report duly signed by the chairman.
Page 73
CHANGE MANAGEMENT
ANNEXURE 2
SONY - INDIA
Interview with SONY‘s Business Development Manager for Corporate Strategies Mr. Adhiraj Shah. 1. How important are green issues to Sony? 2. What have Sony done in the last 12 months to improve their carbon footprint? 3. How big an impact do you think our increasing reliance on technology has on the environment? 4. Has Sony released any products that will help customers reduce their carbon emissions? If so, how will these products help the environment? 5. Does Sony offer an exchange or recycling program for old Sony merchandise? 6. What are your top tips for becoming greener at home?
These questions were the base of the visit report on Sony India, laying emphasis on the eco friendly change management in the organization. The visit report also states the importance of eco friendly business operations and also eco friendly tips to everyone in order to reduce carbon emissions in the atmosphere and control global warming.
Page 74
CHANGE MANAGEMENT
ANNEXURE 3
CAPGEMENI Ltd.
Q. What is the importance of leadership in Capgemini? Q. What is the key element which survives the IT giant Capgemini in India? Q. What are the techniques to handle a unfavorable climate? Q. What are the Change Management strategies in Capgemini? Q. What are the key elements of Capgemini Project Management?
The above questions were asked to Mr. Imran Khan Senior Project Manager at Capgemini. Mr. Khan to great efforts explaining the various management theories and rules that they follow and how they are practically applied in today‘s business scenario.
Page 75
doc_752038406.docx
TY BMS Project
CHANGE MANAGEMENT
CHANGE
Change, as the name suggest is nothing but shifting from one dimension to another. It is like shifting from one system or situation to another one. Anything can change and change is universally applicable to everything. Whether it is money, nature, environment or business, everything changes. E.g. a business not surviving the market, well it is also a change. Things change, people change, and they have to change or they will not survive the wrath of time.
Change always comes bearing gifts. ~Price Pritchett
Truly said by the strategic management guru and politician, that if there is a change whether for bad or worst, it comes with a gift. All we need to do is accept it seize the opportunity. So we should all be optimistic toward it and pass through it, as change is
Page 1
CHANGE MANAGEMENT
inevitable. As we can say that the change is inevitable or irrevocable we should try our best to adapt to it. And if this adaptation process is not possible then we should worry about our survival. Another reason why people avoid change is that they don‘t want to change. They are very happy in their comfort zone and avoid a lot not to come out of it. This is because they believe that change is bad for them and they should avoid it at all costs. Changes can be in many form, it can be at home or personal changes or professional or official changes. If we consider this change as an endangering factor then we can never find the silver lining behind this dark cloud. By this I mean we should consider it as a new opportunity or a challenge which will make us more adaptable or experienced. Anything taken in a positive ways turns out to be a healthy opportunity.
BUSINESS-CHANGE
Business change relates to the changes taking place in the day to day ongoing activities in business. This change can be at various levels, like operational, managerial or director level. It also includes changes in the business environment like political, regulatory, technological, cultural, social or demographic. Business changes happens due to change in demand-supply ration, customer wants, requirements of share holders or stake holders like employees, suppliers, business consultants and society at large. Financial turmoil‘s like recent recessions had caused a great deal of changes in all of the organizations. A change in the organization brings along change in the marketing strategy, recruitment procedures, financial planning, product change strategies or change in supply chain or logistics. There are various departments in the company and a single change or
Page 2
CHANGE MANAGEMENT
systematic difference creates a great deal of issues for other departments. This is because all the core departments are related to each other and work in a cyclic order.
Types of business changes include: ? ? ? ? ? ? ? Change in work culture Change in the leadership Change in strategies Change in market Change in stakeholders Change in environment Changes in government regulations
These are few types of changes among many that actually takes place in the in the business world. These changes are sometimes controllable or uncontrollable. Due to this any business firm have to take into account the importance of change and the degree of its impact. Underestimating changes in business can lead to huge losses and eventually the company will lose its market standing. A slight change can act as a big issue for the entire organization. E.g. a textile company can suffer huge losses if the choice of the customer or the brand preference changes or in terms of steel companies a slight change in the raw material cost can make the product twice as costly and thus effecting its market value or market standing.
So all we have to do is first accept the change, understand it, study it, and then turn it into an opportunity. This is the only way to tackle the business changes and shift them to our sides making the organization a stronger entity than before.
Page 3
CHANGE MANAGEMENT
CHANGE MANAGEMENT
Introduction:
? Change management is an aspect of management focusing on ensuring that the firm responds to the environment in which it operates. It‘s simply about how well we manage the changed scenario of the organization and make a valuable contribution towards it. ? Change. It‘s inevitable. No matter where our organization stands or what business are we into, change is bound to happen. We all try to avoid change or in more proper terms resist change. But just as the fashion, cars, people change, in the same way the business environment changes. And this change is uncontrollable and thus should be accepted. ? But what really matter is how we manage change. Managed well, it can be healthy for the company, leading to improved profit margins, happier and more productive employees, and a stable and growing company. Managed poorly, it can lead to poor morale, loss in production, and ultimately the possibility of bankruptcy or selling out. Due to such uncertainty, we are afraid of the change. Change is bound to happen, but how we manage it determines our survival in the business market. ? As then business environment is continuously changing, there is a need to develop a concept of change management. This concept is usually carried in the Human Resources department. They make it sure that this change is positively accepted by the employees and their performance and motivation do not reduce. As a change manager we have to consider all these factors before taking any action.
Page 4
CHANGE MANAGEMENT Key features of change management:
? ? ? ? ? ? ? ? ?
Change is the result of dissatisfaction with the present strategies. It is essential to develop a vision for a better alternative. It is necessary to develop strategies to implement change. There is resistance to the proposals at various stages. Developing new product and new strategy. The entry of new competition also causes changes. Changes in consumer tastes & preferences. Changes in the cultural, political, economic, legal and social framework. Changes in technology leading to technological environment or new product opportunities.
Factors affected by change management:
? ? ? ? ? ?
Organizational structure. Team of personnel. Process: Operational, Production or Administrative. Location: Expansion or Downsizing. Job requirements and work load. Roles and Responsibilities.
Page 5
CHANGE MANAGEMENT
Change management Objectives:
1. To minimize the adverse impact of necessary changes on system integrity, security and the service level agreements. 2. To allow the coordination and planning of changes in order to provide a stable production environment. 3. To maximize the productivity of persons involved in the planning, coordinating and implementation of ?quality? changes. 4. To allow changes while, at the same time, maintaining or improving service stability and availability. To increase the probability of change success. 5. To reduce or minimize the ratio of changes that needs to be backed out of due to inadequate preparation. 6. To ensure that all parties affected are informed of planned changes. 7. To provide a record of changes implemented to assist with and shorten problem determination time. 8. To ensure that technical and management accountability for all changes is identified. 9. To assist with the accuracy of predictions of impact, such as response time, utilization, etc. 10. To ensure the motivation level is maintained among the employees and the degree of trust among the stake holders.
Page 6
CHANGE MANAGEMENT
Reasons for change in business:
? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
Internal forces Desire to increase profitability Reorganization to increase efficiency Conflict between departments To change organizational culture External forces Customer demand Competition Cost of inputs Business regulations & Legislature Tax policies New technology Political factors Ethics & Codes of conduct Technological obsolescence
Page 7
CHANGE MANAGEMENT
STEPS TO MANAGE CHANGE
Before going through the steps involved in change management, we must first decide what kind of change do we to bring. What are we exactly doing? Is there any expansion plan or downsizing. Are we facing bankruptcy or we are changing the product. There are various types of change relating to various parts of the organization. At first we have to be clear what change has to be taken place and then formulate various strategies regarding it. Because for bringing the desired change, we would require trained man power, proper accounting, good marketing strategy etc. There are two major steps in managing change in the organization. 1. Staffs introduction to change 2. Organizational re-engineering These two steps are widely important when inducing change in the company. At first we have to communicate with our employees that, there is a change and we have to act accordingly. This is because employees are the only factors which keep the organization going. No matter which department they belong, all should be aware of the change. And then, company‘s strategy and working environment should be altered accordingly or reengineered. This will give an edge to the organization to look forward to its goals and requirements in terms of customers and stake holders.
Page 8
CHANGE MANAGEMENT
1. Staff’s introduction to change management
? You will probably need to teach an introduction to change management, as change does not come naturally to everyone. For this, you should consider hiring an outside consultant. Change is hard. Sometimes it‘s easier to hear the news from someone you don‘t work with every day. ? Change management instructor will be able to tell your management staff what to expect and how to handle questions from employees. Educate your managers on handling your company‘s changes, and test them afterward to ensure they are clear on the processes. ? Next, listen to your management team, and listen carefully. They will see problems with, ramifications of, and improvements on your change management plan that would never occur to you. At the end of your introduction to change management session, have an intense and relaxed brainstorming meeting. Put papers up all around your conference room, and encourage people to list issues. Encourage creative thinking.
2. Organizational re-engineering
? When there is a process in an organization it is not an easy task to make changes to this process immediately. Sometimes a single organization may have varied business entities and changes in an entity may be reflected in another entity. In such organizations changes are not so easy. There are different types of organizations which have many branches across the world with varied cultures. Implementing a change in such organizations is a task by itself.
Page 9
CHANGE MANAGEMENT
?
The change process can be thought of a process which stops the current process, makes the necessary changes to the current process and the run the new process. It is easy said than implemented. Stopping a current process in some industry is fatal for that organization.
?
Managing the changes in an organization requires a broad set of skills like political skills, analytical skills, people skills, system skills, and business skills. Having good analytical skills will make you a good change agent. The workflow has to be changed in such a manner to reflect the financial changes that are taking place. Operations and systems in the organization should be reconfigured in such a manner that you get the desired financial impact.
?
Hence change management plays an important role in an organization. This allows the organization to give a reactive or a proactive response to the changes that happen internally or externally. Knowing the change management and its process would help an organization and it s processes to be stable. And thus following this stability strategy we can rightfully re-engineer our organization as per our goals or the requirement of the firms demand and supply ration.
Page 10
CHANGE MANAGEMENT
Change Management Strategies
Organizazational Strategy Structure
Epirical srategy
Structural srategy
Operational strategy Personnel strategy
The above charts shows the different types of strategies used that are used in an organization while implementing the process of change management. These strategies form the base of the upcoming policies and alterations in corporate working. This shows the level of importance of each strategies and their specifications.
Page 11
CHANGE MANAGEMENT
Selection of Change Strategy
Generally speaking, there is no single change strategy. You can adopt a general or what is called a "grand strategy" but, for any given initiative, you are best served by some mix of strategies. Which of the preceding strategies to use in your mix of strategies is a decision affected by a number of factors. Some of the more important ones follow.
?
Degree of Resistance: Strong resistance argues for a coupling of power-coercive and environmental-adaptive strategies. Weak resistance or concurrence argues for a combination of Empirical-Rational and normative-reductive strategies.
?
Target Population: Large populations argue for a mix of all four strategies, something for everyone so to speak.
?
The Time Frame: Short time frames argue for a power-coercive strategy. Longer time frames argue for a mix of empirical-rational, normative-reductive, and environmental-adaptive strategies.
?
Expertise: Having available adequate expertise at making change argues for some mix of the strategies outlined above. Not having it available argues for reliance on the power-coercive strategy.
?
Dependency: If the organization is dependent on its people, management's ability to command or demand is limited. Conversely, if people are dependent upon the organization, their ability to oppose or resist is limited. Mutual dependency almost always signals a requirement for some level of negotiation.
Page 12
CHANGE MANAGEMENT
Implementing the strategy
The most important part after selecting the strategy is to implement it. This execution is the most difficult and various factors have to be considered while the implementation process. Implementation depends on very basic control in the firm. Control in terms of various operations, personnel, marketing, revenue, financial budget etc. Proper conrol means smooth functioning of the business plans which in turn give high returns in terms of quality, customer satisfaction and revenue. The first thing to do is getting in the situation. Staying outside and watching won‘t help here. So get in and fight. 1. A clear sense of mission or purpose is essential. The simpler the mission statement the better. This will help the employees as a guiding blue print.
2. Developing a new strategy for providing services to the existing and new customers in order to retain their faith. And going for proper market research in order to understand the new market situation and demands.
3. Build a core team. Put best of the members in it on the basis of the intelligence, creativity, team work and leadership qualities.
4. Maintain a flat organizational team structure and rely on minimal and informal reporting requirements.
5. Pick people with relevant skills and high energy levels. As they are the best match for the job we are looking forward to.
6. Shift to an action-feedback model. Plan and act in short intervals. Do your analysis on the fast tract. Slow and steady what is the demand of time.
Page 13
CHANGE MANAGEMENT
7. Work task and priorities should be flexible enough to shit to other side in case of any emergency. Rigid goals act as a distraction and time consuming device.
8. Things should not be finalized immediately. We should wait for the right time, as things can change again and we might have to start all over again. 9. Ask for volunteers. You‘ll be surprised at who shows up. You‘ll be pleasantly surprised by what they can do.
10. Find a good team leader and give him the authority. He should be experienced and capable of handling a team in such situations and should also stay motivated.
11. Give proper resources to the employees in order to complete the work. If we fall short on the resource side then there should be optimum utilization of the resources given.
12. If the change is related due to any kind of merger or acquisition then proper training and development opportunities should be provided to the employees, as they being the greatest assets of the company.
Page 14
CHANGE MANAGEMENT
Trends in change management
Since the inception of Change Management in late 1990s, there has been various trends setup by various management gurus and business leaders. These trends act as various dimensions in the study of this subject. Since 2003, various trends have been developed which have absolute business practicality in the today‘s environment. These trends can also be stated as methodologies or governing symbols on which lies the base of change management. After taking in to consideration of the theories of various management thinkers and school thoughts we come to certain common trends that these personalities shared among them. These trends were introduced since 2003, but their importance came into picture during the times of recession.
Current trends in Change Management
?
Change Recognition Model
Overall, participants saw a greater understanding of and appreciation for the role of change management. Organizations and project-focused employees saw change management as important and as a needed aspect of any change project. Change management was identified as a key contributor to project success. There was a wider appreciation of the role change management played in contributing to return on investment (ROI) and benefit realization of projects; it was viewed as essential. A number of participants also commented on the growing interest and attention by senior leaders. ?
Competency Builder Theory
Viewing change management as an emerging and necessary competency moved up from number five on the trends list in 2007 to number two in the 2009 study. Participants indicated more demand for training and knowledge around change management, as well
Page 15
CHANGE MANAGEMENT
as more widespread competency building programs. Change management competencies were becoming evident in senior leadership levels and front-line management levels. ?
Resource dedication model
Participants identified the use of dedicated resources focused on change management as a key trend in their organization. Project leaders were more likely to appoint change management resources to support their change initiative, and change management specialists were being identified and developed within the organization. ?
Management tools utility
The fourth most-cited trend was a greater adoption of change management tools, processes and methodologies. Participants indicated that change management and its application was becoming more consistent and formalized in their organization. The use of more structured and formal processes was number two in the list of trends in the 2007 study. ?
Application of change management on projects
Participants commented that change management resources were now sought out by project teams, rather than looking for projects to support as they had done in the past. Project teams were bringing change management resources on board earlier in the project, during the planning phase, and were considering people-side issues earlier. Several participants indicated that change management had become a requirement and that no major projects moved forward without change management.
Page 16
CHANGE MANAGEMENT
Change management Planning
?
I don't think that change is difficult to structure or navigate. I think we try to bend the rules; we expect people to embrace the change because we like it or we are paying for it. I have never seen a poorly-structured change succeed or a well-structured one fail. I have seen well-structured changes poorly communicated, with the result being pain on the way to the change; I've also seen badly-structured changes beautifully executed, with the result that no one changes.
?
Human behavior is very complex, but I honestly believe that organization change is often overcomplicated by bad execution and lack of clarity and a plan. Change principles are simple (does not mean easy). In my opinion, 70-90% of the successful change efforts I've been involved in have focused very heavily on the basics... Those that failed usually did so not for poor intent or a bad company strategy, but because of bad change strategy and implementation.
?
Many consultants only see half the picture and rely on historical evidence of successes. The workplace trends we are seeing do not have historical context, thereby this tactic will eliminate many potential "solutions" that previously may have worked.
?
The planning process starts well with proper forecast, and then it goes ahead with proper blueprint of plan and then comes the execution part.
?
This process being the first step, proper environmental synopsis should be made in order to keep this plan in an effective manner.
Page 17
CHANGE MANAGEMENT
Change management Communication
?
You can't communicate enough or talk to enough people. Most employees are quite satisfied with the status quo--20-60-20. Focus on the 60% in the middle--not on the 20% that will never buy-in.
?
You cannot communicate too much. Have measurable goals so you can track and communicate your progress towards the goals.
?
Have meetings at least once a week including all members who will be impacted by or are driving the process together in the same room.
?
Build skills in communication such that the real conversations can be held on a regular basis.
?
Not trying to answer questions to which we had no answers yet...maintaining credibility.
?
Communicating clearly and frequently, especially about measurements, results and consequences.
?
Getting the whole organization together can build momentum, create a memorable event, and build peer pressure for the change.
?
Every change seems to bring new stuff to do; in today's marketplace, folks have to have the option of dropping or reducing other tasks...we cannot go on adding forever.
?
Proper communication can bridge great gaps and thus we find free flow of information causing smooth organizational working.
?
This communication is necessary for entities like employees, stake holders, shareholders, society, government, suppliers etc.
?
Communication should be given top most priority in order to excel in the business workings.
Page 18
CHANGE MANAGEMENT
Change Management Consultancy
A change management consultancy is a firm specializing in services regarding organizational changes. They provide services like studying business environment, training & development, suggesting remedies, providing strategies, implementing them etc. There are many management consulancy that provide services in terms of finance, marketing, human resource, law, audit, financial architecture, import & export etc. But now we can find management consultancies specially for Change Management.
History
Management consulting grew with the rise of management as a unique field of study. The first management consulting firm was Arthur D. Little, founded in 1886 by the MIT professor of the same name.[citation needed] Though Arthur D. Little later became a general management consultancy, it originally specialized in technical research. Booz Allen Hamilton was founded by Edwin G. Booz, a graduate of the Kellogg School of Management at Northwestern University, in 1914 as a management consultancy and the first to serve both industry and government clients. After World War II, a number of new management consulting firms formed, most notably Boston Consulting Group, founded in 1963, which brought a rigorous analytical approach to the study of management and strategy. Work done at Boston Consulting Group, McKinsey, Booz Allen Hamilton, and the Harvard Business School during the 1960s and 70s developed the tools and approaches that would define the new field of strategic management, setting the groundwork for many consulting firms to follow. In 1983, Harvard Business School's influence on the industry continued with the founding of Monitor Group by six professors.
Page 19
CHANGE MANAGEMENT Specializations
Management consulting refers generally to the provision of business consulting services, but there are numerous specializations, such as information technology consulting, human resource consulting, virtual management consulting and others, many of which overlap, and most of which are offered by the large diversified consultancies listed below. So-called "boutique" consultancies, however, are smaller organizations specializing in one or a few of such specializations.
Current state of the industry
Management consulting has grown quickly, with growth rates of the industry exceeding 20% in the 1980s and 1990s. As a business service, consulting remains highly cyclical and linked to overall economic conditions. The consulting industry shrank during the 2001-2003 period, but has been experiencing slowly increasing growth since.
Currently, there are four main types of consulting firms:
1. Large, diversified organizations that offer a range of services, including information technology consulting, in addition to a strategy consulting practice (e.g. Accenture, Abeam Consulting, Capgemini, Cognizant, Deloitte, IBM, Logica, PA Consulting). Some very large IT service providers have moved into consultancy as well and are also developing strategy practices (e.g. Wipro, Tata Consultancy Services, Capgemini) 2. Medium-sized information technology consultancies that blend boutique style with some of the same services and technologies bigger players offer their clients. 3. Management and strategic consulting specialists that offer primarily Strategy Consulting and Business Intelligence Models to any industries (e.g. Oliver Wyman, Bain & Company, Booz & Company, McKinsey & Company, Arthur D. Little and The Boston Consulting Group).
Page 20
CHANGE MANAGEMENT
4. Boutique firms, often quite small, which have focused areas of consulting expertise in specific industries, functional areas or technologies. Most of the boutiques were founded by famous business theorists. Small firms with fewer than 50 employees are often referred to as niche consultancies. 5. A fifth type that is emerging is the sourcing advisory firm, that advises buyers on sourcing choices related to in sourcing, outsourcing, vendor selection, and contract negotiations. The top 10 sourcing advisors (as ranked by the Black Book of Outsourcing) were TPI, Gartner, Hackett Group, Everest Group, PwC, Avasant, PA Consulting, and EquaTerra.
Advantages
There are several potential benefits of internal consultants to those who employ them:
?
If properly managed and empowered, internal consulting groups evaluate engagement on projects in light of the corporation's strategic and tactical objectives.
?
Often, the internal consultant requires less ramp up time on a project due to familiarity with the corporation, and is able to guide a project through to implementation—-a step that would be too costly if an external consultant were used.
?
Internal relationship provides opportunities to keep certain corporate information private.
?
It is likely that the time and materials cost of internal consultants is significantly less than external consultants operating in the same capacity.
Page 21
CHANGE MANAGEMENT
?
Internal consulting positions can be used to recruit and develop potential senior managers of the organization. Lead external consulting project teams, or Act as organizational subject matter experts ?embedded‘ with external consulting teams under the direction of organizational management.
Disadvantages
?
The internal consultant may not bring the objectivity to the consulting relationship that an external firm can.
?
An internal consultant also may not bring to the table best practices from other corporations. A way to mitigate this issue is to recruit experience into the group and/or proactively provide diverse training to internal consultants.
?
Where the consulting industry is strong and consulting compensation high, it can be difficult to recruit candidates.
?
It is often difficult to accurately measure the true costs and benefits of an internal consulting group.
?
When financial times get tough, internal consulting groups that have not effectively demonstrated economic value (costs vs. benefits) are likely to face size reductions or reassignment.
Government Consultants
The use of management consulting in governments has increased significantly in recent times. Booz Allen Hamilton (now split from Booz & Company) is particularly well known now as a consultant that primarily serves the US Federal Government. Deloitte Consulting LLP applies its industry expertise and decades of experience to helping government departments and agencies solve their toughest problems. In India agriculture
Page 22
CHANGE MANAGEMENT
finance corporation limited provides consultancy mainly to governments and related institutions.
Management Consulting Companies Rating
The web service "vault.com" prepares a list of the top 50 consulting companies to work for each year. The ranking considers company culture, practice strength, prestige and compensation (6 percent), among a few other options. The top 25 for 2011 are: 1. Bain & Company (8.492) 2. Boston Consulting Group (8.176) 3. McKinsey & Company (8.159) 4. Analysis Group (7.251) 5. The Cambridge Group (7.178) 6. Deloitte Consulting LLP (7.162) 7. Oliver Wyman (7.123) 8. A.T. Kearney (7.089) 9. Triage Consulting Group (7.024) 10. Censeo Consulting Group (6.903)
Page 23
CHANGE MANAGEMENT
10 Principles of Change Management
? Address the “human side” systematically:
Any significant transformation creates ?people issues.? New leaders will be asked to step up, jobs will be changed, new skills and capabilities must be developed, and employees will be uncertain and resistant. Dealing with these issues on a reactive, case-by-case basis puts speed, morale, and results at risk. A formal approach for managing change — beginning with the leadership team and then engaging key stakeholders and leaders — should be developed early, and adapted often as change moves through the organization. This demands as much data collection and analysis, planning, and implementation discipline as does a redesign of strategy, systems, or processes. The changemanagement approach should be fully integrated into program design and decision making, both informing and enabling strategic direction. It should be based on a realistic assessment of the organization‘s history, readiness, and capacity to change.
? Start at the top:
Because change is inherently unsettling for people at all levels of an organization, when it is on the horizon, all eyes will turn to the CEO and the leadership team for strength, support, and direction. The leaders themselves must embrace the new approaches first, both to challenge and to motivate the rest of the institution. They must speak with one voice and model the desired behaviors. The executive team also needs to understand that, although its public face may be one of unity, it, too, is composed of individuals who are going through stressful times and need to be supported.
Page 24
CHANGE MANAGEMENT
Executive teams that work well together are best positioned for success. They are aligned and committed to the direction of change, understand the culture and behaviors the changes intend to introduce, and can model those changes themselves. At one large transportation company, the senior team rolled out an initiative to improve the efficiency and performance of its corporate and field staff before addressing change issues at the officer level. The initiative realized initial cost savings but stalled as employees began to question the leadership team‘s vision and commitment.
? Involve every layer:
As transformation programs progress from defining strategy and setting targets to design and implementation, they affect different levels of the organization. Change efforts must include plans for identifying leaders throughout the company and pushing responsibility for design and implementation down, so that change ?cascades? through the organization. At each layer of the organization, the leaders who are identified and trained must be aligned to the company‘s vision, equipped to execute their specific mission, and motivated to make change happen. A major multiline insurer with consistently flat earnings decided to change performance and behavior in preparation for going public. The company followed this ?cascading leadership? methodology, training and supporting teams at each stage. First, 10 officers set the strategy, vision, and targets. Next, more than 60 senior executives and managers designed the core of the change initiative. Then 500 leaders from the field drove implementation. The structure remained in place throughout the change program, which doubled the company‘s earnings far ahead of schedule. This approach is also a superb way for a company to identify its next generation of leadership.
Page 25
CHANGE MANAGEMENT
? Make the formal case:
Individuals are inherently rational and will question to what extent change is needed, whether the company is headed in the right direction, and whether they want to commit personally to making change happen. They will look to the leadership for answers. The articulation of a formal case for change and the creation of a written vision statement are invaluable opportunities to create or compel leadership-team alignment. Three steps should be followed in developing the case: First, confront reality and articulate a convincing need for change. Second, demonstrate faith that the company has a viable future and the leadership to get there. Finally, provide a road map to guide behavior and decision making. Leaders must then customize this message for various internal audiences, describing the pending change in terms that matter to the individuals.
? Involve re-engineering:
As transformation programs progress from defining strategy and setting targets to design and implementation, they affect different levels of the organization. Change efforts must include plans for identifying leaders throughout the company and pushing responsibility for design and implementation down, so that change ?cascades? through the organization. At each layer of the organization, the leaders who are identified and trained must be aligned to the company‘s vision, equipped to execute their specific mission, and motivated to make change happen. A major multiline insurer with consistently flat earnings decided to change performance and behavior in preparation for going public. The company followed this ?cascading leadership? methodology, training and supporting teams at each stage. First, 10 officers set the strategy, vision, and targets. Next, more than 60 senior executives and managers designed the core of the change initiative. Then
Page 26
CHANGE MANAGEMENT
500 leaders from the field drove implementation. The structure remained in place throughout the change program, which doubled the company‘s earnings far ahead of schedule. This approach is also a superb way for a company to identify its next generation of leadership.
? Create ownership.
Leaders of large change programs must overperform during the transformation and be the zealots who create a critical mass among the work force in favor of change. This requires more than mere buy-in or passive agreement that the direction of change is acceptable. It demands ownership by leaders willing to accept responsibility for making change happen in all of the areas they influence or control. Ownership is often best created by involving people in identifying problems and crafting solutions. It is reinforced by incentives and rewards. These can be tangible (for example, financial compensation) or psychological (for example, camaraderie and a sense of shared destiny). At a large health-care organization that was moving to a shared-services model for administrative support, the first department to create detailed designs for the new organization was human resources. Its personnel worked with advisors in cross-functional teams for more than six months. But as the designs were being finalized, top departmental executives began to resist the move to implementation.
? Communicate the message.
Too often, change leaders make the mistake of believing that others understand the issues, feel the need to change, and see the new direction as clearly as they do. The best change programs reinforce core messages through regular, timely advice that is both inspirational and practicable. Communications flow in from the
Page 27
CHANGE MANAGEMENT
bottom and out from the top, and are targeted to provide employees the right Information at the right time and to solicit their input and feedback. Often this will require over communication through multiple, redundant channels. In the late 1990s, the commissioner of the Internal Revenue Service, Charles O. Rossetti, had a vision: The IRS could treat taxpayers as customers and turn a feared bureaucracy into a world-class service organization. Getting more than 100,000 employees to think and act differently required more than just systems redesign and process change. IRS leadership designed and executed an ambitious communications program including daily voice mails from the commissioner and his top staff, training sessions, videotapes, newsletters, and town hall meetings that continued through the transformation.
? Assess the cultural landscape:
Successful change programs pick up speed and intensity as they cascade down, making it critically important that leaders understand and account for culture and behaviors at each level of the organization. Companies often make the mistake of assessing culture either too late or not at all. Thorough cultural diagnostics can assess organizational readiness to change, bring major problems to the surface, identify conflicts, and define factors that can recognize and influence sources of leadership and resistance. These diagnostics identify the core values, beliefs, behaviors, and perceptions that must be taken into account for successful change to occur.
? Address culture explicitly:
Once the culture is understood, it should be addressed as thoroughly as any other area in a change program. Leaders should be explicit about the culture and
Page 28
CHANGE MANAGEMENT
underlying behaviors that will best support the new way of doing business, and find opportunities to model and reward those behaviors. This requires developing a baseline, defining an explicit end-state or desired culture, and devising detailed plans to make the transition..
? Prepare for the unexpected:
No change program goes completely according to plan. People react in unexpected ways; areas of anticipated resistance fall away; and the external environment shifts. Effectively managing change requires continual reassessment of its impact and the organization‘s willingness and ability to adopt the next wave of transformation. Fed by real data from the field and supported by information and solid decision-making processes, change leaders can then make the adjustments necessary to maintain momentum and drive results.
? Speak to the individual:
Change is both an institutional journey and a very personal one. People spend many hours each week at work; many think of their colleagues as a second family. Individuals (or teams of individuals) need to know how their work will change, what is expected of them during and after the change program, how they will be measured, and what success or failure will mean for them and those around them.Team leaders should be as honest and explicit as possible. People will react to what they see and hear around them, and need to be involved in the change process. Highly visible rewards, such as promotion, recognition, and bonuses, should be provided as dramatic reinforcement for embracing change.
Page 29
CHANGE MANAGEMENT
CHANGE MANAGER
Change managers are professional qualifies individuals providing consultancies regarding change management. They provide various training programs to employees in order to adjust them to the changes occur in the organization. These change managers are mostly from the field of human resource or marketing and helps the firm to cope up to the new change.
Position description:
The Change Management Specialist will play a key role in helping projects (change initiatives) meet business, schedule and budget objectives. This person will focus on the people side of change – including changes to business processes, systems and technology, job roles and organization structures. The primary focus will be creating and implementing change management plans that minimize employee resistance and maximize employee engagement. The Change Management Specialist will work to drive faster adoption, greater ultimate utilization and higher proficiency on the changes impacting employees in the organization such that business results are achieved.
Supervision:
While the Change Management Specialist does not have supervisory responsibility, this person will have to work though many others in the organization to succeed. The Change Management Specialist will act as a coach for senior leaders and executives in helping them fulfill the role of change sponsor. The Change Management Specialist will also support project teams in integrating change management activities into their project plans.
Page 30
CHANGE MANAGEMENT Roles and responsibilities:
?
Apply a structured change management approach and methodology for the people side change caused by projects and change efforts.
?
Develop a change management strategy based on a situational awareness of the details of the change and the groups being impacted by the change.
?
Identify potential people-side risks and anticipated points of resistance, and develop specific plans to mitigate or address the concerns.
?
Conduct readiness assessments, evaluate results and present findings in a logical and easy-to-understand manner.
?
Develop a set of actionable and targeted change management plans – including communication plan, sponsor roadmap, coaching plan, training plan and resistance management plan.
?
Support the execution of plans by employee-facing managers and business leaders.
? ?
Be an active and visible coach to executives leaders who are change sponsors. Create and manage measurement systems to track adoption, utilization and proficiency of individual changes.
?
Identify resistance and performance gaps, and work to develop and implement corrective actions
? ?
Create and enable reinforcement mechanisms and celebrations of success. Work with project teams to integrate change management activities into the overall project plan.
?
Work with communication, training, HR and OD specialists in the formulation of particular plans and activities to support project implementation.
Page 31
CHANGE MANAGEMENT Skills and qualifications:
?
A solid understanding of how people go through a change and the change process; experience with ADKAR is a plus.
?
Experience and knowledge of change management principles and methodologies (example: Prosci certification)
?
Familiarity with project management approaches, tools and phases of the project lifecycle.
? ? ? ? ? ? ? ? ?
Exceptional communication skills – both written and verbal. Able to work effectively at all levels in an organization. Excellent active listening skills. Problem solving and root cause identification skills. Strong analytic and decision making abilities. Must be a team player and able to work with and through others. Ability to influence others and move toward a common vision or goal. Experience with large-scale organizational change effort. Change Management Professional designation is a plus (learn more about the new Association of Change Management Professionals and the Change Management Professional designation at the Prosci Global Conference or by visiting the new ACMP® website)
?
Previous change management experience is an add on advantage.
Page 32
CHANGE MANAGEMENT Professional Skills
? ? ? ? ? ? ? ? ? ? ? ? ? ?
Perform the activities and tasks for which this role is responsible, Apply the techniques necessary to complete the responsibilities of this role, Use the tools required by these activities, tasks and techniques. In the human resource skills assessment, Job classification knowledge. Qualification in human resource management In designing and developing training programs, In facilitating workshops, In organizational re-structuring, In designing and developing communication and publicity material, In implementing and managing communication and publicity programs. Handling domestic and international clients. Handling industrial relation programs and public relations. Should be well equipped with proper inter personal skills and should we tech savy.
Page 33
CHANGE MANAGEMENT
Kotter's 8-Step Change Model
Implementing change powerfully and successfully What was true more than two thousand years ago is just as true today. We live in a world where "business as usual" IS change. New initiatives, project-based working, technology improvements, staying ahead of the competition - these things come together to drive ongoing changes to the way we work. Step One: Create Urgency For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving.
?
Identify potential threats, and develop scenarios showing what could happen in the future.
? ?
Examine opportunities that should be, or could be, exploited. Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking.
?
Request support from customers, outside stakeholders and industry people to strengthen your argument.
Step Two: Form a Powerful Coalition Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough - you have to lead it.
? ? ?
Identify the true leaders in your organization. Ask for an emotional commitment from these key people. Work on team building within your change coalition.
Page 34
CHANGE MANAGEMENT
?
Check your team for weak areas, and ensure that you have a good mix of people from different departments and different levels within your company.
Step Three: Create a Vision for Change When you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember. A clear vision can help everyone understand why you're asking them to do something. When people see for themselves what you're trying to achieve, then the directives they're given tend to make more sense.
? ?
Determine the values that are central to the change. Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization.
? ?
Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five minutes or less.
Step Four: Communicate the Vision What you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do. It's also important to "walk the talk." What you do is far more important - and believable - than what you say. Demonstrate the kind of behavior that you want from others.
? ?
Talk often about your change vision. Openly and honestly address peoples' concerns and anxieties.
Page 35
CHANGE MANAGEMENT
?
Apply your vision to all aspects of operations - from training to performance reviews. Tie everything back to the vision.
?
Lead by example.
Step Five: Remove Obstacles If you follow these steps and reach this point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting.
? ?
Identify, or hire, change leaders whose main roles are to deliver the change. Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they're in line with your vision.
? ? ?
Recognize and reward people for making change happen. Identify people who are resisting the change, and help them see what's needed. Take action to quickly remove barriers (human or otherwise).
Step Six: Create Short-term Wins Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress. Create short-term targets - not just one long-term goal. You want each smaller target to be achievable, with little room for failure.
?
Look for sure-fire projects that you can implement without help from any strong critics of the change.
?
Don't choose early targets that are expensive. You want to be able to justify the investment in each project.
Page 36
CHANGE MANAGEMENT
?
Thoroughly analyze the potential pros and cons of your targets. If you don't succeed with an early goal, it can hurt your entire change initiative.
?
Reward the people who help you meet the targets.
Step Seven: Build on the Change Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Each success provides an opportunity to build on what went right and identify what you can improve.
? ? ? ?
After every win, analyze what went right and what needs improving. Set goals to continue building on the momentum you've achieved. Learn about kaizen, the idea of continuous improvement. Keep ideas fresh by bringing in new change agents and leaders for your change coalition.
Step Eight: Anchor the Changes in Corporate Culture
Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started.
?
Talk about progress every chance you get. Tell success stories about the change process, and repeat other stories that you hear.
?
Include the change ideals and values when hiring and training new staff.
Page 37
CHANGE MANAGEMENT
?
Publicly recognize key members of your original change coalition, and make sure the rest of the staff - new and old - remembers their contributions.
?
Create plans to replace key leaders of change as they move on. This will help ensure that their legacy is not lost or forgotten.
Key Points You have to work hard to change an organization successfully. When you plan carefully and build the proper foundation, implementing change can be much easier, and you'll improve the chances of success. If you're too impatient, and if you expect too many results too soon, your plans for change are more likely to fail. Create a sense of urgency, recruit powerful change leaders, build a vision and effectively communicate it, remove obstacles, create quick wins, and build on your momentum. If you do these things, you can help make the change part of your organizational culture.
Page 38
CHANGE MANAGEMENT
Change management Process
Change management process deals with certain steps which ae used in making the changes or the alterations in the existing strategies of the business. Here, we have some steps which give us an exact procedure for this process. Change Management process is extremely important as it acts as a core application process for the organization.
Step 1: Defining process and policies ? Procedures for handling changes—how changes are requested, how they are processed and scheduled for implementation, how they are applied, and what the criteria are for backing out changes that cause problems ? Roles and responsibilities of the IT support staff—who receives the change request, who tracks all change requests, who schedules change
implementations, and what each entity is supposed to do ? Measurements for change management—what will be tracked to monitor the efficiency of the change management discipline ? ? Tools to be used Type of changes to be handled and how to assign priorities—priority assignment methodology and escalation guidelines ? Back-out procedures—Actions to take if applied changes do not perform as expected or cause problems to other components of the system
Step 2: Plan for implementation of changes ? Change request prioritization
Page 39
CHANGE MANAGEMENT
? ? ? ? Resource requirements for implementing the change Impact to the system Back-out procedures Schedule of implementation
Step ?
3: Implement and monitor the changes Do proper implementation as per the made strategies and see to it that each and every resource is has optimum utilization.
?
When strategies are properly executed we get the results. After the results we have to evaluate it with the set standard. We have to compare it and then we have the correct result.
?
When the results are true it‘s time to go ahead, but if there is any kind of deviation hen we have to amend the strategies, execute it in correct way and then compare it with the set standard.
Step 4: evaluation and modification of changes ? ? ? ? ? ? Change implementation planning was sufficient. Changes to certain resources are more prone to problems. Changes are not being applied on time. Not enough changes are being processed. Too many changes are being backed out. Changes are affecting the system availability.
Page 40
CHANGE MANAGEMENT
? Not all changes are being covered.
Step ?
5: Document all changes. Perhaps the hardest part of change management is documenting all actions performed before, during, and after the change has been applied.
?
Technical people often fail to document changes, and we have seen many problems caused because not everyone knew about earlier changes.
?
And when we have proper documentation we can use it for future reference and it also act as an evidence of our work.
?
It also helps in making project reports or give information to shareholders and stakeholders.
Page 41
CHANGE MANAGEMENT
Leadership and Change Management
Leadership is often considered a mysterious quality, often linked with charisma and other exotic personality traits. It is considered more inspiring than management. However, such assumptions have no place in a study of leadership and management of businesses. Leadership and management are essential, distinctive, and complementary systems of action. If they fail to complement one another in practice, the result is chaos or stagnation. A majority of today's corporations are over-managed and under-led. They are lacking in leadership. Well-led organizations do not wait for leaders to emerge on their own, but actively seek out people with leadership potential and groom them into leaders, while exposing them deliberately to varied work experiences. The leadership process can be institutionalized with careful selection, nurturing, and encouragement. Leaders have to be groomed, and leadership has to be institutionalized. Organizations grow by expanding into new competitive spaces, attaining a complex mix of financial, material and knowledge assets, expanding market scope, and replicating and standardizing their wins in similar market spaces.
Qualities for Effective Leadership
?
Set An Example - As the top person in your business, others look to you for direction, not only in terms of business needs, but also related to behavior, ethics, and standards. If you want others in your business to change, you must set a stellar example for them to follow.
?
Eliminate Perks - It's important to understand that change management is more successful when the barriers between management and frontline worker are minimized. Perks show favoritism and suggest division between ranks. By eliminating or reducing your own perks, you show your desire to level the playing field. Try to make a connection with the employee.
Page 42
CHANGE MANAGEMENT
?
Walk Around and Talk to People - The old school of business management promoted the idea that the top person was off limits, enclosed in his or her own glass tower. Leaders of today interact more with their employees. They manage by walking around and getting to know their employees and learning about the problems they are facing on a day-to-day basis.
?
Be Genuine - As a leader of change management, it is important to be as real and honest as possible in your interactions with others.
?
Have Passion - To be a strong leader, you must have passion around your vision. Without it, you will soon find yourself facing burnout. Leadership is tiring and saps energy at a very high rate so make sure you are passionate about what you do.
Page 43
CHANGE MANAGEMENT
CHANGE MANAGEMENT & BPO INDUSTRY
BPO INDUSTRY in INDIA
Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Few of the motivation factors as to why BPO is gaining ground are:
? ? ? ? ?
Factor Cost Advantage Economy of Scale Business Risk Mitigation Superior Competency Utilization Improvement
Generally outsourcing can be defined as - An organization entering into a contract with another organization to operate and manage one or more of its business processes. Different Types of Services Being Offered By BPO's 1. Customer Support Services Our customer service offerings create a virtual customer service center to manage customer concerns and queries through multiple channels including voice, e-mail and chat on a 24/7 and 365 days basis.
Page 44
CHANGE MANAGEMENT
Service Example: Customers calling to check on their order status, customers calling to check for information on products and services, customers calling to verify their account status, customers calling to check their reservation status etc.
2. Technical Support Services Our technical support offerings include round-the-clock technical support and problem resolution for OEM customers and computer hardware, software, peripherals and Internet infrastructure manufacturing companies. These include installation and product support, up & running support, troubleshooting and Usage support. Service Example: Customers calling to resolve a problem with their home PC, customers calling to understand how to dial up to their ISP, customers calling with a problem with their software or hardware.
3. Telemarketing Services Our telesales and telemarketing outsourcing services target interaction with potential customers for 'prospecting' like either for generating interest in products and services, or to up-sell / promote and cross sell to an existing customer base or to complete the sales process online. Service Example: Outbound calling to sell wireless services for a telecom provider, outbound calling to retail households to sell leisure holidays, outbound calling to existing customers to sell a new rate card for a mobile service provider or outbound calling to sell credit or debit cards etc.
4. Employee IT Help-desk Services Our employee IT help-desk services provide technical problem resolution and support for corporate employees.
Page 45
CHANGE MANAGEMENT
Service Example: of this service include level 1 and 2 multi-channel support across a wide range of shrink wrapped and LOB applications, system problem resolutions related to desktop, notebooks, OS, connectivity etc., office productivity tools support including browsers and mail, new service requests, IT operational issues, product usage queries, routing specific requests to designated contacts and remote diagnostics etc.
5. Insurance Processing Our insurance processing services provide specialized solutions to the insurance sector and support critical business processes applicable to the industry right from new business acquisition to policy maintenance to claims processing. Record Changes like Name, Beneficiary, Nominee, Address; Collateral verification, Surrender Audits Accounts Receivable, Accounting, Claim Overpayment, Customer care service via voice/email etc.
6. Data Entry Services / Data Processing Services Service Example: ? ? ? ? ? ? Data entry from Paper/Books with highest accuracy and fast turnaround time (TAT) Data entry from Image file in any format Business Transaction Data entry like sales / purchase / payroll. Data entry of E-Books / Electronic Books Data Entry : Yellow Pages / White Pages Keying Data Entry and compilation from Web site
Page 46
CHANGE MANAGEMENT
? ? ? ? ? ? ? ? ? ?
Data Capture / Collection Business Card Data Entry into any Format Data Entry from hardcopy/Printed Material into text or required format Data Entry into Software Program and application Receipt and Bill Data Entry Catalog Data Entry. Data Entry for Mailing List/Mailing Label. Manu scripting typing in to word Taped Transcription in to word. Copy, Paste, Editing, Sorting, Indexing Data into required format etc.
7. Data Conversion Services Service Example:
? ? ?
Conversion of data across various databases on different platforms Data Conversion via Input / Output for various media. Data Conversion for databases, word processors, spreadsheets, and many other standard and custom-made software packages as per requirement.
? ? ? ? ? ? ? ?
Conversion from Page maker to PDF format. Conversion from Ms-Word to HTML format Conversion from Text to Word Perfect. Conversion from Text to Word to HTML and Acrobat Convert Raw Data into required MS Office formats. Text to PDF and PDF to Word / Text / Doc Data Compilation in PDF from Several Sources. E-Book Conversion etc.
Page 47
CHANGE MANAGEMENT
8. Scanning, OCR with Editing & Indexing Services Service Example: ? ? ? ? ? ? High speed Image-Scanning and Data capture services High speed large volume scanning OCR Data From Scanned page / image Scan & OCR paper Book in to CD. ADOBE PDF Conversion Services. Conversion from paper or e-file to various formats
9. Book Keeping and Accounting Services Service Example:
? ? ? ? ?
General Ledger Accounts Receivables and Accounts Payable Financial Statements Bank Reconciliation Assets / Equipment Ledgers etc.
.
Page 48
CHANGE MANAGEMENT
Challenges for a HR Professional in BPO
1. Brand equity: People still consider BPO to be "low brow", thus making it difficult to attract the best talent.
2. Standard pre-job training: Again, due to the wide variety of the jobs, lack of general clarity on skill sets, etc, there is no standard curriculum, which could be designed and followed.
3. Benchmarks: There are hardly any benchmarks for compensation and benefits, performance or HR policies. Everyone is charting their own course.
4. Customer-companies tend to demand better results from outsourcing partners than what they could actually expect from their own departments. "When the job is being done 10,000 miles away, demands on parameters such as quality, turn around timeliness, information security, business continuity and disaster recovery, etc, are far higher than at home. So, how to be more efficient than the original?
5. Lack of focused training and certifications Given this background, the recruiting and compensation challenges of HR departments are only understandable.
Page 49
CHANGE MANAGEMENT
Key To success The key to success in ramping up talent in a BPO environment is a rapid training module. The training component has to be seen as an important sub-process, requiring constant reengineering.
Business Process Outsourcing: The Top Rankers
WNS has emerged as the top BPO in India, pushing Wipro Spectra mind to the second position, according to a survey done by NASSCOM. The basis of ranking is the revenues generated by the BPO companies in 2003-04, as per US GAAP. A list of top fifteen BPO companies in India is given below.
1. WNS Group 2. Wipro Spectra mind 3. Daksh e-Services 4. Convergys 5. HCL Technologies 6. Zenta 7. ICICI Onesource 8. MphasiS 9. EXL 10. Tracmail 11. GTL Ltd. 12. vCustomer 13. HTMT 14. 24/7 Customer 15. Sutherland Technologies
Page 50
CHANGE MANAGEMENT Employee Benefits Provided By Majority of the BPO Companies
?
Provident Fund: As per the statutory guidelines, the employee is required to contribute a percentage of his basic salary and DA to a common fund. The employer for this fund contributes as well. The employee can use the amount deposited in this fund for various personal purposes such as purchase of a new house, marriage etc.
?
Gratuity: Gratuity is one of the retrial benefits given to the employee in which the employer every year contributes a particular amount. The fund created can be used by the employee for the purpose of long-term investment in various things such as a house etc.
?
Group Med claim Insurance Scheme: This insurance scheme is to provide adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy in case of female employees or spouse of male employees. All employees and their dependent family members are eligible. Dependent family members include spouse, non-earning parents and children above three months
?
Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. It is applicable to all the employees of JFWTC and covers total / partial disablement / death due to accident and due to accidents.
?
Subsidized Food and Transportation: The organizations provides transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized.
?
Company Leased Accommodation: Some of the companies provides shared accommodation for all the out station employees, in fact some of the BPO companies also undertakes to pay electricity/water bills as well as the Society
Page 51
CHANGE MANAGEMENT
charges for the shared accommodation. The purpose is to provide to the employees to lead a more comfortable work life balance.
?
Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities.
?
Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and efficient payment of official expenses which the employees undertake for purposes such as travel related expenses like Hotel bills, Air tickets etc
?
Cellular Phone / Laptop: Cellular phone and / or Laptop is provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding of the asset.
?
Personal Health Care (Regular medical check-ups): Some of the BPO'S provides the facility for extensive health check-up. For employees with above 40 years of age, the medical check-up can be done once a year.
?
Loans: Many BPO companies provides loan facility on three different occasions: Employees are provided with financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the time of their wedding. And, The new recruits are provided with interest free loans to assist them in their initial settlement at the work location.
?
Educational Benefits: Many BPO companies have this policy to develop the personality and knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees, examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification at India's top most Business Schools.
?
Performance based incentives: In many BPO companies they have plans for , performance based incentive scheme. The parameters for calculation are process
Page 52
CHANGE MANAGEMENT
performance i.e. speed, accuracy and productivity of each process. The Pay for Performance can be as much as 22% of the salary.
?
Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs.
?
Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.
? ? ?
Paid Days Off Maternity Leave Employee Stock Option Plan
Why people prefer to join BPO's?
In general a person with any graduation can join any of the BPO. Some BPO's like to take people with MBA but then again the specialization are of an individual hardly makes any difference. Again, this is the industry, where there is no reference checks and very often people don't even specify there exact age. Lets me share with you some of the reasons as why people prefer to join a BPO: 1. Did not get a better job. 2. Find nothing better to do. 3. Education level doesn't matter 4. Good work environment 5. Good Benefits
Page 53
CHANGE MANAGEMENT
6. Flexibility of time 7. Attractive life style 8. Transport facility
Why people leave the BPO's?
When there are so many benefits associated with BPO industry. When there are so many privileges for the BPO employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as well?? Here are some of the reasons for a BPO professional to change his/her job. 1. No growth opportunity/lack of promotion 2. For higher Salary 3. For Higher education 4. Misguidance by the company 5. Policies and procedures are not conducive 6. No personal life 7. Physical strains 8. Uneasy relationship with peers or managers
Page 54
CHANGE MANAGEMENT Employee Opinion
With so much of uncertainty in the market. People are trying their best to stop or to at least have a control on the attrition rate let me share with you the opinion of the real gurus of the industry. Career growth in the industry is robust and there is a long-term opportunity. The great growth momentum that the industry is witnessing is creating both vertical and lateral career opportunities. There also exists enough growth opportunities in the middlemanagement and supervisory level within the industry". - Aadesh Goyal, Executive Vice President & GM, Hughes BPO Services "It will not be possible for the industry to arrive at a blanket agreement on poaching but bilateral agreements between companies are being signed. Basic norms are being put in place and code of ethics is being stressed upon by industry players within the sector with respect to HR practices. We are encouraging companies to adopt responsible behavior in order to ensure that the industry does not become a victim of its own actions. Industry needs to go aggressive but not cannibalistic." - Mr. Suren Singh Rasaily, Senior Vice President, NIIT Ltd. and Head Plantworkz.
Page 55
CHANGE MANAGEMENT
COMPANIES GOING GREEN
ECO CHANGE MANAGEMENT
In the past most companies were resistant to implement technology which would help in reducing pollution, which is a major environmental issue. However, with the growing awareness among people and the pressure from green bodies, not to mention consumers, most companies have changed their strategies and have implemented green technology so as to prevent environmental degradation. Automobile and insurance companies are the major organizations who have implemented strategies of going green. Automobile companies have made vehicles which emit less carbon compounds and sulfur, while insurance companies offer better premiums for people opting for eco-friendly and hybrid cars. The above mentioned example is just one
Page 56
CHANGE MANAGEMENT
way of companies going green, there are several others? New items are being developed which help save energy and reduce pollution, which has become a major global environmental issue. Even though in the past most companies were resistant to implementing technology which would reduce environmental pollution and save energy as it would mean changing the way things are done which have been built over several years. However, contrary to what people believe, there are several benefits of companies going green. One of the main reasons as to why are companies going green is that people are becoming far more conscious and are buying products only from producers who produce environment friendly products. Moreover, people have become conscious of recycling things and there are many who ask how recycling affect environment does. The simple answer to that is when a thing which is already used is used again; it reduces the cost of making a particular thing, thereby reducing the need of power.
The main reason for the initial resistance of companies to go green is that the whole process of change would be time consuming and expensive. This is partially true, but then if these environment friendly products are used, they would help save a lot of money in the long run. Let's say that you have a business, and you employ 1,000 employees. Every day, you need to communicate with all the employees and if you do this on paper, imagine the amount of paper you would need every day.
On the other hand, if you digitize this paperwork and send emails, you can not only save your costs of buying paper and at the same time saving valuable trees from being cut down, thereby saving the environment. Moreover using fluorescent light bulbs costs more when you buy them compared to standard light bulb, but when you compare the life of both the bulbs, the fluorescent light bulbs lasts much longer.
Page 57
CHANGE MANAGEMENT
Major Companies Going Green
Some of the major companies which have implemented green strategies include Bank of America, General Electric, DuPont and Home Depot. There are many more, but these are worth mentioning as they have been most resistant to change. Today, Bank of America uses much less paper than it has traditionally used and the best part is that the customer base of the company has not reduced at all, rather it has increased. Moreover, they recycle paper internally and the best part is they offer employees a cash back offer to a certain limit if they buy hybrid vehicles. You may like to know more on hybrid cars and the environment. On its part General Electric have started developing environmental friendly product, especially, solar panels and has successfully generated billions in revenue. The company was one of the worst polluters, but has today taken steps to clean up the areas in which their plants are located. Environmentalists over the last several years criticized Dupont due to their ways of not caring for the environment. However, due to government regulations and people's sustained pressure, the company has taken steps to drastically lower its emissions of polluting greenhouse gases. Moreover, it has appointed an eminent environmentalist as its advisor on its board and the best part is they have successfully reduced pollution by more than 50%.
Tips for Companies Going Green
The following are few ways in which companies can go green.
? ?
See to it that all mechanical equipments are well maintained. Recycle or donate old equipment or computers.
Page 58
CHANGE MANAGEMENT
? ?
Buy energy-efficient printers, PCs, etc. Cleaning products which are eco-friendly should only be bought as these are nontoxic and biodegradable.
? ?
Instead of using general batteries, rechargeable batteries can be used. Amount of paper should be reduced by trying to go for online bill payment, online banking and emails.
? ? ? ? ?
Wherever possible double-sided printing should be used. Recycle ink cartridges, aluminum, plastic and paper. Use less amount of paper and focus on emails or electronic documents. Companies should try to provide bus services to all the employees. Employees should be motivated to attend green conferences in order to understand the value of eco friendly concept.
Page 59
CHANGE MANAGEMENT
CASE STUDY- SONY
Sony takes up the Eco Challenge to reduce CO2 emissions
The earth's climate is in deep trouble, and there are many signs we've overlooked for many centuries. But the ugly truth people must know and accept is that climate change is a situation that will not go away at any time. Most of the warming in the past years is attributed to human activities. Thanks to our industrialized pursuits and ambitions, the presence of anthropogenic greenhouse gas in the atmosphere has now become as available as the oxygen you are breathing right at this very moment. It took the scientific community so many years to arrive at a consensus that climate change is happening and that strong international political action must take place in order to effectively prepare of adaptation measures. And that latter scenario has yet to happen. The opportunity to conjure a strong political force that would've been a better and effective way to address climate issues on an international level have come to a halt stopping the global initiative from going full scale. You need to make the necessary preparations, and as a result more and more companies have decided to go green.
Eco Friendly tips for Employees:
1. Engage in climate awareness campaigns so everybody increases their knowledge of saving the climate. By doing so, they can influence others to help as well. 2. Save energy at home and at work. Be more conscious of what you use and how much you use. Simply switch off any unused electric-consuming device and buy the most energy-efficient products, especially for lighting. And most importantly, switch off computers when everybody gets out of the office. 3. Start a cool and smart way of handling work-related tasks. Offices consume more energy for air-conditioning. You can adapt sustainable and living designs. You can
Page 60
CHANGE MANAGEMENT
achieve this by putting more plants and opening some windows on areas that aren't as frequently used. 4. Adopt a climate-friendly travelling means for work. Give allowance to encourage people to take public transports or arrange carpools for people who live in the same area. 5. Less is more. At this time of economic hardship, less consumption is beneficial to everyone. Wise management of time and resources spares the environment from accumulating garbage contribution. Recycle papers when able and route emails for memos. 6. Be a part of the green revolution. Support environment-saving activities, programs, and technologies. You can help raise public awareness by encouraging people to be active in green events. Sponsor a few one of your own and show people just what they can benefit from it.
Interview with SONY‘s Business Development Manager for Corporate Strategies Mr. Adhiraj Shah.
1. How important are green issues to Sony? We see ?green issues‘ and sustainability as a critical part of our company ethos and activities. The main aim of our sustainability activities is to both minimize our impact on the environment (which includes tough targets to reduce waste and energy) as well as to demonstrate that technology can be an important part of the solution to climate change issues and how we as a technology company can help with finding solutions – thus having an overall net positive impact as a company.
Page 61
CHANGE MANAGEMENT
Eco conscious thinking also influences our product cycles – from the materials we source, recycle and reuse in manufacture, to the development of smaller packaging that takes less space for more energy efficient transportation. . 2. What have Sony done in the last 12 months to improve their carbon
footprint?
March 2009 saw the announcement that CO2 emissions from Sony‘s European sites have reduced by 90% (equivalent to 113.000 tones) over the period FY2000 to FY2008. The achievement of this reduction is part of the overall Sony commitment to reducing its impact on the environment, as mentioned above. In addition to the reduction of CO2 emissions, Sony Europe was proud to announce last summer that all of its main 32 sites in the region were powered by electricity from renewable sources. Energy saving measures have the biggest priority, with those that have been implemented by European manufacturing sites accumulating to an energy consumption reduction of 20.000.000 kWh in FY08. 3. How big an impact do you think our increasing reliance on technology has
on the environment?
As a whole, our use and reliance of technology has grown over time. Some innovations in technology have a very positive role to play – such as better communication technology in video conferencing and telepresence solutions, to name one example, so people don‘t have to travel huge distances. At Sony we recognize that our products can have a negative impact on the environment, especially in terms of energy consumption, so we‘re looking at many different ways to try to minimize power consumption in our products.
Page 62
CHANGE MANAGEMENT
This was an initiative that Sony wanted to be a part of as we could add our technology and engineering skills to the project and help this young team‘s idea become a reality. To apply technology to help solve the problems of climate change is at the heart of Sony‘s philosophy and we will continue with these types of initiatives into 2010 and beyond. 4. Has Sony released any products that will help customers reduce their
carbon emissions? If so, how will these products help the environment?
Our 2010 BRAVIA range of TVs continues to have a strong focus on eco-aware credentials, which have been one of the cornerstones of our LCD TV development for a long time now, including the continuing push to reduce power consumption. The 2010 BRAVIA range of TVs incorporates LED backlighting technology, which provides superior performance with lower energy consumption. This reduced energy consumption means the majority of Sony‘s 2010 range of TVs have been awarded the ?EU Flower‘ eco symbol, the official EU mark for greener products. This model is also supplied in an environmentally friendly, 100% recycled material carry bag. The bags replace individual cardboard cartons, reducing packaging material from factory to store and from store to home. This means reduced CO2 emissions when the models are transported, as well as less waste, as there is no outer packaging.
5. Does Sony offer an exchange or recycling program for old Sony
merchandise?
Sony Europe is a member of several schemes financing the European Waste Electronic and Electronic Equipment (WEEE) regulations, which include batteries and packaging take-back and recycling schemes.
Page 63
CHANGE MANAGEMENT
6. What are your top tips for becoming greener at home? Here are three of the best tips from SONY: 1. Turn off your screen: switch the picture off if you‘re listening to music through your laptop, and in a year you will save enough energy to charge your MP3 player more than 10,000 times 2. Switch off connected equipment: we know we should switch the TV off when not watching. But did you know that by switching off connected equipment like games consoles and home cinema systems for just one night could save enough energy to run the tumble dryer for 2 hours? 3. Turn down the brightness: most TVs and laptops allow you to change the brightness of the picture. Turn the brightness down, and in a year you could save enough energy to run sixty loads of laundry.
Page 64
CHANGE MANAGEMENT
VISIT REPORT- CAPGEMINI
How Capgemini Leads the Way in Leadership
Capgemini Technologies Ltd. Was started in 1963 by four people with US$ 25000. Today, they are a global leader in the "next generation" of IT and consulting with revenues of over US$ 25 billion. Capgemini defines designs and delivers technologyenabled business solutions that help Global 2000 companies win in a Flat World. Capgemini also provides a complete range of services by leveraging our domain and business expertise and strategic alliances with leading technology providers. India's boom helped create a shortage of talented leaders. IT giant Capgemini took bold actions other Indian companies would be wise to follow. Three years ago, leaders at IT giant Capgemini realized that the company faced a leadership crisis. In the midst of unprecedented growth, people were being rushed into jobs for which they were unprepared. According to Nandita Gurjar, senior vice-president and group head of human resources at Capgemini, many Indian organizations today face a similar talent problem. "In part because of the phenomenal growth this country has seen over the past 5 to 10 years, people started to get promoted before their time," Gurjar says. All too often, the result is the perception on the part of the jobholder that they are not empowered. While they may have authority, they lack the experience and confidence to be true leaders. "Retaining those people is very hard. Attrition is high," she says. And why wouldn't it be in a growing economy with plenty of employment opportunities elsewhere? The Capgemini reaction was bold and swift. In 2007 it created an 18-month initiative that reorganized the business into new roles and new structures. Job requirements were revised and human resources created new job descriptions to reflect the new requirements. For the first time this included years of experience, role maturity
Page 65
CHANGE MANAGEMENT
That's why the initiative's communications component was so important. During the reorganization, up to 15% of the employees were transferred to positions with less authority. "We told them, 'you are just not ready. We are setting you up for failure by keeping you in the role,'" says Gurjar. "It took us months to communicate that and convince the communication champions at all levels that this was a good idea." Line managers, she says, had to communicate the message and get buy-in from the line. That had to be handled carefully.
Sustainability Is Key
Capgemini handles leadership development better than most other Indian companies, according to Jacob Peter, a consultant in Hay Group's New Delhi office. "A leader's greatest value is in providing clarity, setting the standards, and giving constructive feedback," he says. Leaders in India need to understand that this—and not merely barking out orders—is their prime role. That's the difference between management and leadership. But a lot of leaders still don't get it, says Peter. "They look for the quickest way to get the project out. But they're not thinking about the process of communicating context and clarification to subordinates. That's the hard work of leadership."
This reluctance might come from an economy that began liberalizing only recently. According to Peter: "Until the early '90s if you got a license to manufacture a product, you were set." Supply was constrained and demand wasn't an issue, he says. So the lack of leadership didn't affect companies' balance sheets in a significant way. Another factor that might be contributing to a leadership crisis: Until very recently, Indian organizations were mostly hierarchical. Now they're getting flatter. According to Peter, many traditional leaders are simply resistant to change. Perhaps it's because of this
Page 66
CHANGE MANAGEMENT
top-down approach that leaders demand control and de-motivate their people, he says. Now that these organizations are competing in the global market, Peter believes that their leaders must adopt varying styles of leadership—or possibly face dire consequences.
Confronting a de-motivating climate
The data seems to back up Jacksons and Peter's perceptions about Indian leadership. In a 2009 Hay Group review of 1,249 leaders from high-profile organizations operating in the Indian market, Hay Group found that more than 60% create a de-motivating climate and do not engage those they lead. According to the research, only 18% create an engaging climate that encourages high performance. If enough of today's leaders fail to motivate the people who work for them, how will their organizations sustain even conservative growth estimates? How will they keep employees around long enough to develop them into effective leaders? Capgemini, he says, is doing a lot. "It is walking the talk when it comes to investing in developing its leaders." The company has set up what is arguably the world's largest corporate training facility at its 270-acre campus in Mysore. Money, effort, and time are invested in developing leaders. "That's one reason why Capgemini can compete globally," says Peter. "They have a talent pipeline that can feed this growth." What puts Capgemini ahead of the curve is more than just the good-news story behind it. With Capgemini leading the way for Indian organizations committed to world-class leadership,
Page 67
CHANGE MANAGEMENT Change management strategy for CAPGEMINI:
• Understand the organizational context. "Be clear on how the organization's current and future business strategy will impact the organizational structure and its talent needs," he says. • Think about demand. "Ask what the business-critical roles for my organization are— what kind of roles is the future going to bring?" suggests Peter. For example, if your organization is planning an aggressive international expansion, what kind of new skills or competencies would the company demand from its people? • Think about supply. Take a long, hard look at the current state of talent in your organization. Where are the critical gaps? Who are the people in line to take over the critical roles in the future? How far are they from being ready? Where is your talent pipeline most likely to leak? Keep reviewing the supply situation consistently. • Aggressively create and implement a "talent risk management" strategy. This should mitigate any demand-supply imbalances in your talent pipeline. • Provide incentives to leaders in your organization who not only perform, but create committed and energized teams, too. .
Key Elements of Capgemini Project Management
Traceability
Traceability ensures all Requirements are implemented in design, code, testing, and helps to identify impacted programs/documents in case of any change. It keep maintain reference between Requirement Number, Description, HLD Reference, DD Reference, Unit Test Plan Reference, Integration Test Plan Reference, System Test Plan Reference. Both forward and backward traceability exists. Forward traceability ensures all
Page 68
CHANGE MANAGEMENT
requirements are incorporated into product. Backward traceability ensures no unnecessary functionality is included unless specifically called for by a requirement.
Defect Detection, Prevention, Tracking Defect Detection includes Reviews and Testing, which are common technique in project management. For Defect Prevention, Capgemini suggests Learning from past projects, doing defect prevention regularly, and measuring the improvement. In Defect Tracking, it is ensured that all defects are closed.
Measures & Metrics Measures are rooted in scientific principles and give numeric meaning to physical attributes. And metrics are derived or proposed measures that cannot be directly observed, which provides insight into process or product quality characteristics.
At Capgemini, Measures are also called Basic Metrics, which include effort, defects, size, and schedule. Metrics are referred to as Derived Metrics, which include Process Metrics, Product Metrics, and Service Metrics are used for setting quantifiable goals, measuring and tracking progress, taking decisions, and planning improvements.
Estimation
Estimation is based on history data. Using RFP and requirement SPEC can estimate Size. Basing size, using Productivity, Skill Requirements, Execution Complexity,
Risks/Uncertainties can estimate Effort. Basing Effort, using Resource availability, Dependencies/Constraints can estimate Time and Schedule. With Time and Schedule, Unit Costs, Costs can be estimated.
Page 69
CHANGE MANAGEMENT
Quality Assurance & Quality Control Quality Assurance focuses on process. It ensures that Project Management Plan is followed. It also defines the project process through the project plan. Besides, it does Technology and Business domain training, and does audits.
Risk Mitigation At Capgemini, a detailed plan for risk identification, monitoring and mitigation is a part of project planning. It covers risk identification, prioritization and mitigation options. Our business continuity plans are focused on Infrastructure, Security, Confidentiality and
Influx: Influx is Capgemini‘ methodology for defining effective IT solutions for enterprise initiatives. It provides a business-process view for any IT initiative to understand the impact of IT on specific processes. Its framework is based on the digital concept of an extended organization that includes suppliers, customers, and partners - to study the roles of different entities, various systems and their working.
PRISM:
Project Reviews by Capgemini Senior Management (PRISM) is a web-based Intranet tool to automate the workflow for reviews, in line with engagement schedules and plans. This review mechanism with the help of the PRISM tool offers better visibility into engagement risks for the client as well as for Capgemini, and drives process improvement and sharing of best practices.
Page 70
CHANGE MANAGEMENT
CONCLUSION
Now we have come to the end of the project. We have seen what is change management, its types, strategies, importance, objectives etc. with this we realize that how immensely important is this change management. This study states the actual implementation of strategies when we face certain changes. Change can be found in any of the department or at any level. What we have to do is accept it.
It is truly said that, there is always room for improvement. And we can improve if we keep a check on our work, plans and employees. In today‘s competitive world we can never know, what lies ahead of us. Is it good or bad? Is there an opportunity or it‘s a threat. But we have to trust our intelligence and instinct and go ahead.
This entire study states a simple statement, that one who does not accept change vanishes and one how learns to accept it prevails. And now it‘s up to the companies, do they what to survive in this ever changing market or just vanish without a trace.
Change is what we believe in; Change is what bound to happen. - Barrac Obama. US President
Page 71
CHANGE MANAGEMENT
BIBLIOGRAPHY
Books referred:
? ? ? Change Management Strategies: Paul Falcon Vol. 1(2003, 1st Edition) Corporate Strategies: Arnold McGill (Millennium Edition July 1999 ) Business & Globe: Kyohino Mariachis ()
Webliography:
? ? ? ? ? ?http://wnsindia/startpage-operationshttp://capgemeni/infocom-brosure025474http://sonyasia-bizworld/companyprofile7164http://wikiworld-changemanagement/strategies/processHttp://HRM/organizationalbehavior-reconsruction27.145http://OCM-changetrainer/kotter-124.45
Page 72
CHANGE MANAGEMENT
ANNEXURE 1
Rangara Infrastructure Ltd.
Q. Give details of impact of recession on construction firms? Q. What were the strategies used to tackle the recessional change? Q. What is the first step to be taken while handling personnel at such time? Q. What did the company do in order to get business orders? Q. Where there any major changes in the operational part of business?
The above questions were asked to Vice President J K Sayed of Rangara Industries and useful insights were taken regarding efficiency management. And they were kind enough to send the certificate of this visit report duly signed by the chairman.
Page 73
CHANGE MANAGEMENT
ANNEXURE 2
SONY - INDIA
Interview with SONY‘s Business Development Manager for Corporate Strategies Mr. Adhiraj Shah. 1. How important are green issues to Sony? 2. What have Sony done in the last 12 months to improve their carbon footprint? 3. How big an impact do you think our increasing reliance on technology has on the environment? 4. Has Sony released any products that will help customers reduce their carbon emissions? If so, how will these products help the environment? 5. Does Sony offer an exchange or recycling program for old Sony merchandise? 6. What are your top tips for becoming greener at home?
These questions were the base of the visit report on Sony India, laying emphasis on the eco friendly change management in the organization. The visit report also states the importance of eco friendly business operations and also eco friendly tips to everyone in order to reduce carbon emissions in the atmosphere and control global warming.
Page 74
CHANGE MANAGEMENT
ANNEXURE 3
CAPGEMENI Ltd.
Q. What is the importance of leadership in Capgemini? Q. What is the key element which survives the IT giant Capgemini in India? Q. What are the techniques to handle a unfavorable climate? Q. What are the Change Management strategies in Capgemini? Q. What are the key elements of Capgemini Project Management?
The above questions were asked to Mr. Imran Khan Senior Project Manager at Capgemini. Mr. Khan to great efforts explaining the various management theories and rules that they follow and how they are practically applied in today‘s business scenario.
Page 75
doc_752038406.docx