Change Leadership Overview Discussion Document 2011 vF

This document is confidential and is intended solely for the use and information of the client to whom it is addressed.

The Organization ImperativeChange Leadership for the Post-crisis Enterprise

February, 2011

FOR DISCUSSION

Newport Consulting Group, LLC

Newpor t Consul t ing Gr oup, LLC Service Offering for Change Leadership 1

1. About Our Firm

2. Leadership in the Post-crisis Enterprise

3. Institutionalizing Change

4. Summary and Next Steps

Agenda

Service Offering for Change Leadership 2Newpor t Consul t ing Gr oup, LLC

About Our Firm

Newport Consulting Group is an independent consulting firm founded in 2005 and managed by several leading directors from DMR Consulting Group and strategy firm Booz & Company

Our clients enjoy working with our experienced professionals who deliver large firm capabilitiesin the context of a boutique firm culture

We function as top-end, high-touch advisorsto our clients, unencumbered by large overhead cost models or downstream deployment agendas


Our ClientsNewport Consulting has worked over the years with many leading and progressive commercial, public sector, and not for profit and charity organizations, in partnership and direct engagement formats.

Commercial Public Sector Not for Profit and Charity

Services and Software

http://www.ucc.org/aboutus/ucclogo.htm�

http://www.rim.com/index.shtml�


Our Practice Areas

Strategy

Operations

Risk &Program Management

Technology

Our “SORT” practice model allows our clients to benefit from a broad, holistic perspective on key business challenges, while focusing deep experience in one or more critical areas.

What KPIs govern my initiatives, how do I know when they are “out of bounds”? What governance model do I need?

How do I create a culture of sustainability? How do I leverage disruptive innovations for marketplace

gains, creating an investment portfolio of new ideas?

How do I fit my organization to improve existing or introduce new operating models?

How do I structure the functions, people, and resources in my organization to drive strategic initiatives?

How do I enable change in the organization?

What approaches do I use to structure and prioritize initiatives inside my organization?

How do I manage and mitigate risk across my business operations?

How do I drive maximum value from my portfolio of initiatives?

Based on my operations and existing technology investments to date, how do I select and implement the best technology solutions to support my business?

How do I manage that process from planning to go live?


Our ServicesWe maintain expertise in strategy formulation and execution with several key focused service areas where our experience can be leveraged to create high-value, low impact outcomes in the organization

Strategy Formulation and Execution

CorporateSustainability

EnterprisePerformanceManagement

PathwayInnovation

GovernanceRisk and

Compliance

ProgramDesign andOversight


1. About Our Firm




Agenda


The Post-crisis OrganizationThe past few years of unprecedented turbulence and uncertainty in the global economy have taken their toll on companies, creating stress to maintain service levels, talent, and growth potential.

EXTERNALITIES HAVE STRESSED MANY ORGANIZATIONS…‒ Companies have taken on too many initiatives resulting in competing priorities

‒ Strategic initiatives are under-resourced but still expected to achieve objectives

‒ Enterprise talent has been stretched thin and leaders have had to do more with less

‒ Tight budgets and competing priorities have resulted in the lack of a clear strategy forward

…AND CEOS KNOW THE ABILITY TO CHANGE IS A KEY TO FUTURE SUCCESS

More than 80% of CEOs say change management is a priority1

80% of CEOs cite the ability to adapt to change as a source of competitive advantage1

Almost all CEOs expect that, over the next three years, their organizations’ need for change management

will increase1

25% of CEOs expect that their organization will launch a change management function in the next three

years1

1) BearingPoint (2009) Building your internal change capability. Insight White Paper.


The Need to LeadSuccessful change programs requires the proactive engagement of stakeholders at all levels of the organization, beginning with highly visible leaders.

A recent McKinsey survey titled What Successful Transformations

Share (2010) identified eight successful approaches to change,

and five of them relate to ensuring that employees are

engaged through change management:

1. Ensure leaders “walk the talk” by role-modeling the desired changes

2. Instill a sense of ownership for the change among frontline staff

3. Use ongoing communications to involve and energize the organization

4. Deploy top talent to carry out critical parts of the transformation

5. Clearly define roles and responsibilities to promote accountability for results


Change leadership covers the three components of the system

Change Leadership Diagnostic

Leadership Do leaders role model and drive the change? Are leaders aligned behind the case for change? Are leaders accountable and incentivized to deliver

the change? Do we have the right leaders for the change?

People Which groups of employees are most critical? Do people understand what the change means for

them in concrete terms? Do they feel ownership of the change? Are the right people in the right roles? Do people have the skills and behaviors they need?

Organization How are cultural enablers and barriers being

utilized or addressed? How do we transition the structure, processes and

decision rights? How are people motivated and incentivized to

support the change? Are HR processes aligned to sustain the change?

Successful change leadership needs to leverage the system which is made up of leadership, people and organization. Diagnostic investigations into each of these components reveals needs.

Three Components of Change Leadership

People Organization

Leadership


A Key Element of Program Design

Typical OCM needs during program design:

Define the scope of the change effort

Establish the case for change and future vision

Lead the change effort and engage stakeholders

Align systems and structures to support the change

Embed the change into the culture and sustain the change.

We view Change Leadership as a unique approach to OCM - we don’t just look at training and employee enablement. We consider the talent and mechanics of leadership needed to move the organization from “now” to “then.”

Understanding the context of an initiative – or where the organization is on its development or maturity process – is just as important as the content – or what talent and skills are needed – to execute a vision and achieve a set of expected results. This can manifest in a number of OCM needs.


1. About Our Firm




Agenda


Participative Programmatic

Emotional Analytical

Informal Formal

Our Approach Combines Different Perspectives

Individual Group

Differentiators

We tailor each change program to the client’s objectives and unique operating context, combining programmatic and participative change elements

We operate at organization, team and individual levels in order to build engagement with the change

We combine analytical rigor with a sensitivity to the emotional component of change

We emphasize the development of formal and informal change leadership capability

We look at organizations in terms of both informal and formal mechanisms and networks

We utilize an outcomes based approach to planning to ensure the most effective mix of change activities and interventions

Our multi-disciplinary approach is characterized by a synthesis of different perspectives, and this differentiates us from our competitors.

Our Approach


Organizational change leadership approach

Organization & People Dynamics

Analyze the system, identify enablers and barriers

Organization & People Outcomes

Define the case for change required from an organization

and people perspective

Organization & People TransitionDesign a tailored, participative change program

based on key change outcomes

LeadershipBuild alignment, accountability and change

leadership capability

PeoplePromote understanding and ownership of the

change; develop new skills and behaviors

OrganizationEnsure that processes, structures and motivators

are in place to sustain the change

Change Outcomes

Managementlead the change

People adoptthe change

Organizational enablers

sustain the change

First we analyze the dynamics of the system and the outcomes required, then create a tailored change program

Bus

ines

s O

bjec

tives

1

2

3


Organization and People Dynamics

Uses of the Organization &People Dynamics Analysis

Understand enablers and barriers to the change within the organizational system

– Enablers will be leveraged to support the transition and should be protected through change

– Some barriers may need to be recognized as ongoing constraints; others are challenges to be addressed through specific interventions

Provide data to support development of the case for change

Support planning of change interventions and activities, e.g. by using informal leadership and communications channels to build support for the change

Key Questions

What motivates people in this organization?

What behavioral norms are there? (“the way we do things around here”)

What values are most important in this organization?

What is the leadership style? (e.g. command and

control vs. consensus)

How does information flow through the

organization? (e.g. top-down vs. informal)

How are decisions made? What are critical

decisions?

Who are the informal leaders and why?

How is performance managed and driven in

this organization?

What made previous change programs

successful? What made them unsuccessful?

What is the level of change capability in the

organization?

To plan an effective change program, we need to understand organizational dynamics and identify enablers and barriers

1


Organization and People Outcomes

Key Questions

Quantify the scale and complexity of the change (gap from current to future) from a people perspective

Identify key employee segments who have complex change requirements

Outline people-related change requirements, including:– New capabilities required to deliver business

objectives / implications for workforce planning– New ways of working and interactions between

groups of employees, customers, stakeholders– Culture and behavioral changes required to

deliver against business objectives– Changes in the employee value proposition with

potential effects on employee motivation

Highlight areas of high risk for the change program from a people perspective

Build a case for change (overall and for each employee segment): a clear statement of the purpose of the change, the benefits, what’s changing, what’s not changing, and what will happen if we don’t change

Organization

What new skills and knowledge are required?

What new behaviors are required?

How will roles and responsibilities be

changing?

What needs to stop?

How is the Employee Value Proposition

changing?

What changes in organizational culture are

required?

How will structures, accountabilities and

decision rights change?

How do HR processes need to change?(e.g. performance

management)

People (for each stakeholder segment)

What is the purpose of the change?

To build the case for change, we define the people and organization outcomes required by the business objectives

2

Uses of the Organization &People Outcomes Analysis


Organization and People Transition

Management lead the change

Leaders are aligned around the case for change and accountable for its delivery

Leaders have the skills to lead the change

Leaders role model behavioral changes

People adopt the change People understand the change and what it means for them; people feel engaged

and bought into the change

People at all levels in the organization play an active role in delivering the change

People are in new roles and have the skills and behaviours to operate effectively

Organizational enablers sustain the change New organizational structures and processes are embedded, including decision

rights and information flows

Organizational incentives and motivators are aligned with the outcomes required

HR policies and processes support and reinforce new skills and behaviors

Change OutcomesChange Program Activities

Organization

Leadership

People

Leadership Alignment & Accountability

Change Leadership Capability

Behavior Change

Communications & Engagement

Change Capability

Transition & Learning Support

Motivators & Incentives

Structures & Decision Rights

HR Policies & Processes

Measurement Progress against change outcomes is tracked

We create a tailored, participative change program to ensure that people lead, adopt and sustain the change

3


How we Work with Clients

Ways of Working with Clients

We develop partnerships with our

clients and work in integrated teams

We work with clients to develop the

change program architecture

We aim to initiate change leadership

activities early in the program

We work best as an integrated part of a

cross-functional program

Our facilitative and open style of

working enables skills and knowledge

sharing to build change capability in the

client team

Tools and SkillsLevel of Engagement

Organization

Team

Individual

Stakeholder Management

Surveys & Focus Groups

Workshops & Facilitation

Coaching

Team Building

Skills & Knowledge Transfer

Communications

Influencing Skills

We work in partnership with our clients drawing on core skills and tools


Our Change Leadership ProcessWe begin with a process framework and then tailor it to the client’s specific program phases and milestones

Communicate the Vision and the Path Forward

Equip Leaders for Actionand Engage Stakeholders

Generate Winsand Build Momentum

Embed New Approaches and Behaviors into the Culture

Execute Against the Change Roadmap

Align Stakeholders withthe Vision and Strategy

Develop the Change Roadmap

Establish the Visionand Case for Change

SUSTAIN the Change

IMPLEMENT the Business Solutionand Transition to the New Model

DESIGN the Business Solution

ANALYZE the Requirements

= Program Phases

= Organizational Change Activities

Illustrative Only -- this model should be used as a baseline / starting point for the change strategy.

2

3

4

5

6

7

8

Support Redesignof Org. & Roles

Assess Org. andPeople Impacts1


1. About Our Firm




Agenda


Summary and Next Steps

Address any follow-up questions from executive stakeholders by e-mail or phone

Obtain stakeholder acceptance of Newport as your chosen partner for sustainability planning

Work with your internal contracting organizationto develop and establish a master servicesagreement and / or Statement of Work

Confirm Newport Consulting engagement staffing

Commence pre-engagement planning activities


Author, professional speaker, writer and consultant - William (“Bill”) Newman serves as Managing Principal of Newport Consulting Group, an independent management consulting firm focused on strategy, operations, risk management, and technology. Mr. Newman has 25 years experience in a wide range of operations including manufacturing, R&D, sales, marketing, planning, human capital, and finance. His expertise spans service, manufacturing (automotive,

aerospace, life sciences, high tech, furniture, CPG), government, utilities, transportation, and healthcare industries.

Mr. Newman’s service area focus is innovation, strategy, program design and oversight, and corporate sustainability. He is a former executive of Volkswagen’s technology division, and a member of the SAP Sustainability Executive Advisory Committee (EAC). He is a member of the adjunct faculty at Northwood University and participant of the University of Oregon Sustainability Leadership Program.

Bill was granted the Certified Management Consultant designation by the Institute of Management Consultants in 1995. Mr. Newman is a qualified Trainer / Coach granted by the American Society for Quality (ASQ) since 2000, and a qualified consultant in SA 8000 for social accountability since 1998. Mr. Newman is a professional member of the American Marketing Association and a registered expert witness with the Technical Advisory Services for Attorneys.

Bill holds a Bachelor’s Degree in Aerospace Engineering with a minor in Economics from the Henry Samueli School of Engineering at UCLA, and an MBA in Management and minor in International Business from the Conrad Hilton School of Business at Loyola Marymount University (Los Angeles). Bill and his wife Teresa makes their home in southeast Michigan.

Select Project

Highlights:Strategy and program design

for commercial, public sector,

and not for profit organizations.

Global trade adoption and

integration with SAP O2C

Strategic KPI alignment for

multinational management

association

Marketing strategy and plan

for $30M mental health

service provider

Business integration and

technical alignment for

aerospace joint venture

Statewide enterprise content

management strategy

Sustainability advisory for

major software manufacturer

William Newman


Jesse Jacoby, a management consultant with extensive experience executing strategic initiatives and achieving business transformation goals. He provides thought leadership and expertise in the areas of organizational change, strategic communications, and stakeholder engagement. Jesse has helped dozens of clients, including Fortune 500 companies, deliver successful people and change strategies across a range of initiatives such as technology deployments, merger-

acquisitions, corporate restructuring, and outsourcing.

Jesse spent more than a decade leading consulting engagements for Booz & Company, Accenture, and Right Management. He has worked across multiple industries, including transportation, automotive, energy, retail, and financial services. Jesse is adept at all organizational levels, and frequently engages with c-suite executives, vice presidents, and directors, as well as middle managers and frontline employees.

Prior to his consulting career, Jesse served as the Director of Marketing for start-up technology company COS, Inc., which provides information services to the scientific research community. His online product marketing strategies supported the company's growth through two rounds of venture funding, a five-fold organizational expansion, and positioning of the company for its eventual acquisition.

Jesse holds an MBA from The Johns Hopkins University, as well as a Masters in Communications. He retains close ties with Johns Hopkins where he serves as Treasurer for the University's Alumni Council and sits on the Steering Committee of the Carey Business School Dean's Alumni Advisory Board. Originally from the East coast, Jesse and his wife Allyson now call the city of Denver home.

Select Project

Highlights:Led organizational change and

transformation efforts for:

Largest ever deployment of

PeopleSoft to the DoD

Top airline’s passenger

system deployment

Fortune 10 retailer’s

acquisition strategy

Largest single-country

outsourcing initiative

Fortune 10 manufacturer’s

CRM rollout

Big 3 auto’s IT outsourcing

/ shared services transition

Fortune 100 talent

acquisition strategy

Jesse Jacoby


Contact

Documents

Change Leadership Overview Discussion Document 2011 vF