Building a Culture of Continuous Improvement

08 May 2015

CONTINUOUS IMPROVEMENT = CHANGE

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LEARNING OBJECTIVES

1. To understand that change is a necessity in driving a successful, profitable organization

2. To gain practical understanding of the change management life cycle with actionable steps for immediate use at each stage

3. To create actionable steps to advance your change goals.

4. Keys for kick-starting a change ready organization

Big Nugget: You need to know yourself before you can change yourself.

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AGENDA

WHY CONTINUOUSLY IMPROVE?

THE CHANGE MANAGEMENT LIFECYCLE

YOUR UNIQUE WAY OF REACTING TO CHANGE

HOW TO MAKE CHANGE WORK FOR YOU

Q&A

WHAT HAPPENS WHEN ORGANIZATIONS DON’T CHANGE?

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THE DESIGN FIRM BUSINESS: CHANGE OR DIE

1. Our industry’s recent changes1. BIM & Revit2. Millenial talent not excited to be a part of a traditional practice

1. If you don’t have a strategy here, where will you be in 5 years or 10 years?

2. History has shown that the paranoid organizations who are obsessed with “being better” have the most success.

1. Many big company examples: GE, Apple, Walmart, Toyota, etc.2. Also small company examples: Exceptional growth stories are always lead by having urgency

towards constant change

3. If you are not improving, you are dying

CHANGE TO LOOK FORWARD TO:

10 Earthquakes predicted to come to our profession in 2011:

1. No More Employees

2. No More Drawings

3. Licensing Irrelevance

4. Geographic Irrelevance

5. Explosion in Training

6. Acceleration at the Speed of Delivery

7. Global Brands, Local Delivery

8. Text as the Business Tool

9. Death of the Medium Sized Firm

10. Death of the “Old” Business Model of Professional Practice

SOURCE: FRANK A. STASIOWSKI, CEO PSMJ RESOURCES, IMPACT 2020: PREDICTIONS FOR THE NEXT 10 YEARS OF THE DESIGN INDUSTRY... 2011

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WHAT DOES SUCCESSFUL BUSINESS CHANGE LOOK LIKE?

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THE LOGIC

THE CHANGE MANAGEMENT LIFECYCLE1

1. Many change methods exist, many variations in the approach.

2. General approach is:1. Identify2. Engage3. Implement

SOURCE: ESI ORGANIZATIONAL CHANGE MANAGEMENT LIFECYCLE

IDENTIFY

1. Identify need to change from current state to a future state vision

2. Effective when:1. All stakeholders identify with a

need to change2. The most affected people are

heavily involved in developing the vision

ENGAGE

1. Engage people in planning

2. Painful, time consuming, but essential

3. Objective: Develop an endorsed plan

IMPLEMENT

1. Constant communication/reminding of why we are doing change

2. Project Management

3. Monitoring of people’s reactions to role changes and identification of compensation changes needed (i.e. the change was more than what people expected)

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THE REALITY OF EMOTIONS

THE BAD NEWS

There is no magic formula or magic pill to take

You can’t read a book, learn how to improve your organization and then do it (The books are out there, but remember logic is the enemy)

THE GOOD NEWS

There is always somebody who has it worse than you

All organizations have a natural frequency for change Tacoma Narrows Bridge – 64km/h winds

Your natural frequency is your culture.

Leverage your natural frequency to understand how to change.

STEP 1: IDENTIFY YOUR STRENGTHS:CHANGE STYLE ANALYSIS

1. Rank your company/team from 1 to 10 (10 being outstanding and 1 being the weakest) on the following 6 skills relating to organizational change:

1. ACCOUNTABILITY: How committed are you to new initiatives? 2. LEADERSHIP: How does the company embrace opportunities for improvement? 3. KNOWLEDGE: Does your team have anyone with experience making company improvements? (1 –

no one, 10 – at least 1 person in every single area of the business (finance, sales, etc.))4. FEEDBACK: Do you regularly provide status updates on new initiatives and seek positive/negative

feedback on progress?5. STRATEGY & TACTICS: Do you work out detailed plans for new initiatives?6. COMMUNICATION: Is your ENTIRE team involved in identifying a vision and path for your

organization ? (1 – never 10 – everyone is involved from front line to President)

CHANGE STYLE

1. Bottom Up

2. Perfectionists

3. Scoretakers

4. Entrepreneurs

Entrepreneurs Perfectionists

ScoretakersBottom Up

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STEP 2: LEVERAGE WHAT YOU DO WELL AND FOCUS ON A FEW CRITICAL BEHAVIORS

1. Bottom Up1. Focus on keeping change initiatives at the top of priority lists (i.e. exaggerate it’s importance)

2. Perfectionists1. Invest in developing a detailed plan

3. Scoretakers1. Make sure milestones and checkpoints are part of the process

4. Entrepreneurs1. Recognize the pathmakers. Feed off the energy to fuel progress. Mistakes are part of the process.

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STEP 3: OVERCOMING YOUR BARRIERS TO CHANGE

1. Bottom Up1. Drive urgency towards a plan. Emphasize the costs and risks of not using diligence.

2. Perfectionists1. Don’t hire any Engineers 2. If it’s inefficient to build a perfect plan, build out perfect phases in order to “get started”

3. Scoretakers1. Reward/recognize momentum over results

4. Entrepreneurs1. “If it’s not new, we shouldn’t do it” mentality2. Build transparency on initiatives to show balance between innovation and continuous improvement.

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FEAR, HABITS & OTHER BARRIERS

TIME & RESOURCES

1. Large organizations hire or appoint a full time PMO for change initiatives1. This alone is not enough

2. Smaller organizations ask people to take on change while they still have jobs to do

3. What happens if we don’t have the time or resources?1. Don’t do it

4. But what about change or die?1. Find the time and/or resources. 2. Make change a priority

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PUTTING IT ALL TOGETHER

1. We are naturally resistant to change, but

2. If we don’t change, we die

3. In order not to die, we need to tap into our emotions 1st, logic 2nd and learn our natural frequency (culture) for change, then

4. Leverage the strengths of our change style and manage our weaknesses,

5. Finally, implement a PMO to make it all a reality

What’s your change culture?

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ABOUT ME Tony Cancelliere

Tony Cancelliere is the Canada Country Lead of the Change Management Institute, a global, not-for-profit organization that is developing the change management profession internationally.Tony is also the Managing Director of Syntropy Group, a consulting firm that helps businesses streamline sales and operations. His clients combined have had a 300% increase in profits from his transformation initiatives. His entrepreneurial skills are strengthened by his education where he was among the first group of graduates of the Rotman School of Management's Jeffrey Skoll Engineering-MBA Joint Program designed to unite science, technology and business. Tony also holds his P.Eng. and is licensed to practice engineering in Ontario.