Managing change during reorganization

2015 Nakisa Inc. All rights reserved.

Managing change during reorganization

#NakisaHCM

2015 Nakisa Inc. All rights reserved. 2

Providing solutions since 2001

Headquartered in Canada

Leader in HCM and Financial Solutions

700+ enterprise customers

subscribers 4M+

Available in

languages 18

Utilized in

125 countries

Caters to

24+ industries

@NakisaInc

#NakisaHCM

#NakisaHCM

3 2015 Nakisa Inc. All rights reserved.

HCM Technology & Transformation Solutions

We help you design for integrated human capital management Strategic services for iHCM program, process and change planning

We implement with excellence Implementation services using our proven 4LENSES APPROACH

We help clients optimize and take it to the next level Support services to drive adoption, optimization and business value

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Key business trends

Leading the change

Nakisa solutions

Key takeaways and recommendations

Agenda

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Why change management?


Key Business Trends

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Current business challenges

Human Capital

Operational Excellence

Innovation

Customer Relationships

Global Political/Economic Risk

Government Regulation

Global Expansion

Corporate Brand and Reputation

Sustainability

Trust in Business

2015 Nakisa Inc. All rights reserved. #NakisaHCM


01

02

03

04 05

Which strategic initiatives are HR executives most focused on?



Why change management?

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Process

When is change management needed?

Process

People

Structure Culture

Systems

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Organizational models Culture

Client and field driven Variation: have it your way mindset

IT Customer database linking internal & external information Knowledge bases built around experience

Core Processes Client Acquisition Solution driven flexible procedures

Mgmt systems Revenue and share of wallet driven Rewards based on client feedback Lifetime value of client analysis

Organization Entrepreneurial client teams High skills in the field

Customer Intimacy Product Leadership

Culture Concept, future driven Variation: out of the box Mindset Attack, go for it win

IT Person to person communication systems Technologies enabling cooperation and knowledge management

Core Processes Invention, commercial. Market exploitation Disjoint work procedures

Mgmt systems Decisive, risk oriented Reward individuals innovation capacity Product life cycle profitability

Organization Ad hoc, organic and cellular High skills abound in loose knit structures

Culture Disciplined teamwork Process focused Conformance, one size fits all mindset

IT Customer database linking internal & external information Knowledge bases built around experience

Core Processes Product delivery and basic service cycle Built on standard, no frills fixed assets

Mgmt systems Command and control Compensation fixed to cost and quality Transaction profitability tracking

Organization Centralized functions High skills at he core of the organization

Operations Excellence

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What is change management?

Definition: The process, tools and techniques to manage the people side of change to achieve the required business results

A process used by project teams to manage the people side of the change process

A management competency

A strategic capability



Change management process and tools

#NakisaHCM


Solution is designed, developed and delivered effectively

(Technical side)

Solution is embraced, adopted and utilized effectively

(People side)

+

Project management and change management have a joint

value proposition oriented toward business results

= Success

Current

state

Transition

state

Future

state

Project management

Change management

Integrating change management & project management

#NakisaHCM


The Goal of change management Address and manage the natural human dynamics of change to achieve better stakeholder buy-in and facilitate a smoother and more effective transition.

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Why change management fails

Lack of clarity in purpose

Lack of transparency

Lack of focus

Misalignment with strategic goals

Ineffective communications

Insufficient employee involvement


16 2015 Nakisa Inc. All rights reserved. 16

Leading the change

It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change. - Charles Darwin

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Establishing a sense of urgency Forming a

powerful guiding

coalition

Creating a vision

Communicating the vision

Empowering others to act on the vision

Planning for and creating short-wins

Consolidating improvements and producing

still more change

Institutionali-zing new

approaches

Transforming organization

process

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Leading change From minor to major transformation

Department alignment

New management Consolidations

New retail stores Consolidation of

development offices Opening new

markets

Consolidation of supply chains

Realign to new culture

Moving to new operating model

Right sizing of major levels

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Leading change Change impacts the entire business

Process

People

Structure Culture

What do you need to

accelerate this process?

What do you need to ensure the result is

accurate?

Systems

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Assessing current state

Whats working What isnt working Potential barriers

Structure

Process

People

Culture impact

Systems

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Analyzing the gap between present & future business reality

Current Business Model

New Business Model

Strategic Human Resource Plan

Change

Gap Analysis

{

{ Ex

tern

al

Fact

ors

Internal Factors

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Risk Management Curve

Continuous Improvement

Transformational

High Risk

Risk of failure: 5 10%


Risk of failure: 35 50%+

Incremental


Ch

ange

Mgm

t. In

vest

me

nt*

Implementation Risk 0

5 - 10%

10 17.5%

17.5 - 25%+

0 5%

* % Project Budget to Add for CM/C

Common Implementation Risks Complexity of Change Readiness to Manage Change Change Impact on Users Compressed Schedule Competing Initiatives History of Failed Implementations Resource Gaps (Team, Budget) Insufficient Motivation for Change

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Leadership across all levels is key

The character of an organizations leadership determines a companys destiny. Forbes

Men make history and not the other way around. In periods where there is no leadership, society stands still.

Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.

Harry S. Truman

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Importance of executive sponsors

36% 40%

73%

85%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Sponsor was veryineffective (average

score < 2)

Sponsor wasineffective (average

score between 2 and3)

Sponsor was effective(average score

between 3 and 4)

Sponsor was veryeffective (average

score between 4 and5)

Correlation of sponsor effectiveness to

meeting project objectives

Sponsor effective rating average

Perc

ent of re

spondents

that m

et

or

exceeded p

roje

ct obje

ctives

Prosci. From Proscis 2012 Best Practices in Change Management benchmarking report

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Key executive sponsor responsibilities

The Prosci Project Change Triangle (PCT) is a trademark of Prosci, Inc. All rights reserved.

Resources Strategy and scope

Timing and dates

Executive decisions

Executive actions

Active and visible participation

Direct communication

Coalition building

Leadership/ Sponsorship

Project Management

Change Management

Projects meet objectives

Projects finish on time and on budget

Return on investment (ROI) realized

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Communicate directly and often Participants identified senior business leaders as the preferred senders of messages about the business reasons for the change

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Change management team leader

Change management team member

Project team leader

Project team member

Human Resources representative

The employee's supervisor

Department head

Senior manager

Executive manager

CEO/President

Percent of respondents

Business messages

Personal messages

Prosci. From Proscis 2012 Best Practices in Change Management benchmarking report

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Are you ready for change?

27 2015 Nakisa Inc. All rights reserved. #NakisaHCM

Its all about Human Capital

HR asked to provide business value

Effective management of change



To do list for successful change management

Model differential scenarios

Define clear business outcomes

Know your talent

Collaborate and manage change throughout the company

#NakisaHCM


What does this mean for HCM?

Aggregated macro views of organization

Strategic planning, design capabilities

Collaboration, transparency and objective-based

Cascading views, functionality, objectives from macro to micro

#NakisaHCM


Nakisas Strategic Organizational Design Accelerator

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Strategic Organizational Design Accelerator Enabling strategic change

High level reorganization and strategic planning tool

Macro views and analytics

Macro planning functionality

Model and compare

Objectives planning

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Strategic Organizational Design Key features

#NakisaHCM

Collaborative scratch pad for design

Assessment and comparison functions

Complex analytics (e.g. SOC, depth, fully loaded costs)

Merge/Split, Grown/Shrink

Copy/clone or import by template

Set and monitor cascading targets

Integrated cascading workflow

Export models and distribute

Gain employee buy-in


Strategic Organizational Design Accelerator Cascading responsibility, more granular functionality

Re-Organization Cascading Responsibility Assignment

More granular re-org functionality base on level

Granular analytics, Objectives inherited from top level

Changes roll-up to strategic level

#NakisaHCM


ABCCompany has embarked on a global imitative to transform from a Product style organization to a Consulting style organization. Pursuant to this goal a complete shake-up of company structure is required. A design team has been assembled to model proposed high-level structures, and based on selection to design and assign cascading targets for business unit senior VPs.

Solution demonstration Story Flow

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VP/ LOB Mangers

HRAdm/Manager HR Compliance

Central re-org team

Executive

SVP/ VP

HR Professional Executive

SVP/ VP

Central re-org team

1 2 3 4 5

Large-scale re-org plan with cascading assignments

Multi-step process with many actors

Top level assessment and BU planning

Set the objectives and KPIs

Cascading objectives to LOB managers/HR

Approval review and sign-off

HR compliance and write-back #NakisaHCM


Strategic Organizational Design Accelerator Business Scenario: organizational design, assess & benchmark

Define, assess and benchmark Organizational Design principles across the organization

Establish OD standards for your organization

View/Assess organizations based on these standards

Use these standard in all org change processes

Track critical OD metrics such as:

Span of Control

Layers, Depth

Pay Ratio Reporting

Use industry benchmarks in your analysis

Set targets and monitor


People

Strategic Organizational Design Accelerator

Benefits

Create & compare org structures Gain deep analytical insight Merge, cleanse & align Rearrange structures and

objectives Set cascading designs and

objectives Share & collaborate

ROI Value-accelerated HR

Realize value of ReOrg

Improve clarity of talent strength & quality

Reduce uncertainty & flux, enhance retention

Reduce time & resources

Improve stakeholder buy-in

#NakisaHCM


Key takeaways

Model differential scenarios

Define clear business outcomes

Design the communication and training strategy to empower people to embrace the change

Know your talent

Collaborate and manage change throughout the company

Nakisa has all the tools to assist!

#NakisaHCM


Thank you! Questions?

#NakisaHCM

Please contact us at [email protected]

Book a demo now!

http://www.nakisa.com/demo-request-form


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VISIT the Nakisa Resource center for on-demand webinars, solution briefs, case studies, whitepapers & more. nakisa.com/resources

VISIT the Nakisa Accelerators web page:

nakisa.com/accelerators

#NakisaHCM


Providing solutions since 2001

Headquartered in Canada

Leader in HCM and Financial Solutions

700+ enterprise customers

subscribers 4M+

Available in

languages 18

Utilized in

125 countries

Caters to

24+ industries

@NakisaInc

#NakisaHCM

#NakisaHCM

Managing change during reorganization

Recruiting & HR

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