Change Management - Concepts And Tools

Hendra KusnotoAdvisor of GCG & Change Management

PT ANTAM Tbk

Presented for Faculty of Psychology UGM4th December 2011, Yogyakarta

““God will not change people’s fate God will not change people’s fate if they do not change it if they do not change it themselves” themselves”

(Al-Qur’an, Ar-Ra’d: 11)(Al-Qur’an, Ar-Ra’d: 11)

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‘R U MAD’? Are You Ready for

“Making A Difference”?

An Initiative of the Education Foundation


‘Learning is an experience, everything else is just information.’

(Albert Einstein)

‘The mind is not a vessel to be filled, but a fire to be ignited.’

(Plutarch)

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What is Change? Two Sides of Change People Oriented Change Organizational Change Managing Resistance to Change Tools for Change The Problems of Change The Best Practice of Change Antam’ Experience

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”Change is inevitable. In a progressive country change is constant.” (Benjamin Disraeli,1804 - 1881)

”We must become the change we want to see” (Mahatma Gandhi, 1869 - 1948)

” Change the way people think, and things will never be the same” (Steve Biko, 1946 - 1977)

”If we don't change our direction we're likely to end up where we're headed” (Chinese Proverb)


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To change is to take different actions than previously. To take different actions than previously means to make different choices. Different choices produce change. The same produce sameness, a reinforcement of the status quo.

Change management is defined as the systematic deployment of change management programs, tools and processes throughout an organization.

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The goal of CM : Create competitive advantage or economic value of an organization Improve the utilization of human capital Ensure vision/projects meet their goals

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Change:•Economic

•Politic•Social

•Technological

CustomersSuppliersBusiness partners

Organization

Indirect impacts

Direct impacts


Discontinuities in the business environment

Old New

Confidence and rigidity Insecurity and opennessPermanence and certainty Turbulence and uncertaintyIncremental change Revolutionary changeFacts and theories ValuesLogic IntuitionBoundaries and disciplines Interest, issues and problemsOrganization AdaptationAttitudes FeelingsPersonalities and vested interest Principles & business philosophyQuantity Quality and post – quality Getting ahead Achieving balance and harmonyDrives NeedsProducer centered Customer centeredFocus on activity Focus on outputConflict and rivalry Cooperation and consensus



Old New

Command and control Two-way communication & sharingBureaucracy hierarchy Horizontal relationshipAbsolutes Solutions relative to contextSimplicity Diversity and relative complexityOne-dimension maximization Multi-dimensional trade – offs Answer QuestionSolutions Temporary accommodationSanction ConsentAuthority EncouragementDepartmentalism and procedures Business processesDiscrete problems Holistic issuesUniformed customers Demanding customersHomogenous customers Diverse customersStandard products and services Tailored products and servicesLocal customers International customers


Discontinuities in the business environment Old New

Established relationship Integration and fragmentationSales Account managementIndividuals TeamsThe self and the organization The group and the environmentThe ‘here and now’ The consequences and the futureUnsupported Facilitating processes & technology‘Hoarding’ by the few Empowerment of the manySingle discipline Multi – disciplinaryDiversification FocusGeneralization SegmentationKnowledge CompetenceTeaching Learning Specialist teaching institution Integration of learning & workingInitial qualification Continual updatingLifetime practice Functional mobility



Old New

Career ladders Succession of projectsStandard employment Various patterns of workCommodity products Search for differentiationLimited competition Open competitionBarriers to entry Diversity of supplyCartels and oligopoly Competition and choiceZero – sum relationship Positive – sum collaborationIndependence and dependence Interdependence & partnership


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Any organization is facing today’s business challenges:

* Severe competition

* Rapid change in technology, communication

and information

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To have competitive supremacy, increasing

profits, and maximum control over organization’s destiny it

is essential to innovate, learn quickly and respond quickly

Being aware of the environment and trends outside

the organization and working with those within the

organization who are keen to make change a strategic

approach to required change

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People Oriented Change

Organizational Change

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People Oriented Change: before changing other people, we have to change our self, first!

Organizational Change: changing the strategy, policy, system and procedures

for achieving an high performing organization

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Changing the mindsets:Creating hope

Building beliefsShifting paradigms

Courage to Take Action

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Creating hopes

Dream..Dream …

Dream …

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Adapted from Ackerman (1997)

Developmental of change• Improvement of existing situation

Time

Perf

orm

ance

• Transitional change Implementation of a known new state Management of the interim transition state over a controlled period of time

Transformational change• Emergence of a new state, unknown until it takes shape, out of the remains of the old state; time period not easily controlled

OLDstate

NEWstate

Transition

Birth

GrowthPlateau

Chaos

Death

Re-emergence

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Creating a New VisionCreating a New Vision

Vision is a reality that has not yet come to be Vision is not a dream Vision reflects a depth and breadth of understanding that enables one to detect patterns or trend, and it guide a leader through the present and into the future A vision of the future is more than just a plan or a goal. It a picture of what we want to be in the future Leader have a responsibility to transform the vision into reality

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Creating a New VisionCreating a New Vision

A true vision must provide a clear image of desirable future – one that represents an achievable, challenging, and worthwile long – range target toward which people can direct their energies

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Yes, I’m sure that I can be happybecause of ….

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Values and BeliefsValues and Beliefs

Values and beliefs are the critical dimensions in leadership effectiveness because they serve as the basis for direction and action

A person with vision who cannot articulate beliefs and values and inspire others is a dreamer, not a leader

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Tom Peters and Waterman describe the seven basic beliefs shared by the excellent organizations they studies:

Belief in being the best Beliefs in the importance of the details of execution Beliefs in the importance of people as individuals Beliefs in superior quality and service Beliefs that most members of the organization should be innovators Beliefs in the importance of informality to enhance communication Beliefs and recognition of the importance of economic growth and profits

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Ray Kroc, founder of Mc Donald’s, provide a good example of the leader’s role in promoting and protecting values. The stated values of McD are quality, service, value and cleanliness.

Motorola, the first winner of MBQNA is a organization with a strong belief system. Its stated “seven attributes of a quality system”. The attributes are follows:• Extend leadership and quality commitment form top to bottom• Communicate to every employee so that each knows that his or her individual contribution helps• Train every employee and teach them the corporate language

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• Establish challenging goals and very high standards• Recognize success in achieving quality through incentives and other rewards• Create a participative and cooperative culture throughout the organization and between divisions• Develop a high quality, creative, receptive, and adaptive work force by developing employees to their fullest potential hendra kusnoto 29

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So I have to change all the ways that I have done…..

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OLD PARADIGMS NEW PARADIGMSTHE BUSINESS Ore-Mining

ExploitationUp-stream industry

Mining-Based ProcessingDown-stream industry

THE OPERATIONS

Local and Domestic organization (Mind-set) Local standards

Global and International Operations (Mind-set) World-class standards

THE QUALITY Good organization Great InstitutionTHE PEOPLE People = Costs

People = Human Capital, Strategic Assets and Strategic Partners

LEADERSHIP Managers are promoted

Leadership is earned. You do not need a title to be a leader.

Transactional Leaders Transformational Leaders

Effective Managers should be nice and kind.

Effective Leaders deliver results.

LEADERSHIP DEVELOPMENT

Survival of the fittest (By Nature)

Development of the fittest (By Nature + Nurture)


OLD PARADIGMS NEW PARADIGMSTHE CULTURE Strategy and Culture

are independent and standing alone

Culture can drive or drag Strategy

Build Any Culture Build High Performance Business Culture

DEVELOPMENT Training LearningClass Training – Training is one way & knowledge transfer.

Learning can be any where and by any means. The role of Interventions are key.

Training = Costs (Key word: REDUCE!)

Development = Investment (Key word: MEASURE THE RETURNS!)

COST Efficiency Effectiveness (Cost Conscious-ness is still important)

Bureaucratic Operations

Speedy + Agile Operations


OLD PARADIGMS NEW PARADIGMSEMPLOYMENT

Attracting mediocre people

Employee of Choice – Ability to attract the best talent

The dullest = the brightest

Employer of Choice – Ability to retain the best people

Life-time employment

Life-time employability

KNOWLEDGE Knowledge = Certification

Knowledge is the ability to act

BUSINESS Business is dirty, the ends justify the means.

Business with ethics. Business is noble. To improve the quality of life of mankind.

Business is complex. You need sophisticated solutions to play.

Business is simple. The business principle uses common sense.

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• Leader must possess the discipline, determination, and courage necessary to get the job done. “A unique feature of the human brain is its ability to form mental images of the future and to translate these images into reality though leadership and action”.

• Leaders must possess more than vision and values. They must discipline, energy, determination, zeal, and courage to carry them through the difficult periods and more important, to keep them moving forward during thee good times as well.


Turning Point“The road stop here, what got you here, won’t get

you there”

GoodGood GreatGreat

First Curve

Second Curve


2003 2008 (20XX)(2012) 20112003

Long-Term Long-Term PlanPlan

Strategic Strategic ScenarioScenario

HistoryOld ParadigmsIndustrial EconomyContinuous Improvement

Future VisionNew ParadigmsKnowledge EconomyInnovation and Breakthrough

ExtrapolationProjection

Interpolation

Strategic Scenario - A Transformation Strategic Scenario - A Transformation ApproachApproach

GAP

BAUBAU

THE ROAD STOPS HERETHE ROAD STOPS HERE

STRATEGIC STRATEGIC INITIATIVESINITIATIVES

STRATEGIC STRATEGIC TARGETSTARGETS


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Capacity for change Capacity for change (resources)

• Capacity here means resources and these are staff time and, where appropriate, money. To implement change you need to identify the resources that will be required before you proceed and make sure these are provided. Often, the cost benefits from implementing energy efficiency measures and waste minimisation programmes can provide the financial resources for an ongoing programme of improvement

• It is usually the organisation’s own employees that have the information, intuition, ideas and instincts necessary for implementing change effectively. When given the capability and the opportunity to participate in improvement programmes, it is employees who often can find the greatest cost savings and efficiency improvements

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“We are what we repeatedly do. Excellence then, is not an act, but a habit” – Aristotle

“Energy is equal to desire and purpose” - Sheryl Adams

Having got the other three factors in place (pressure, a clear shared vision and capacity) you now have to implement the planned change.

Keeping up momentum is what matters here and implementing the PLAN – DO - CHECK – ACT management methodology is essential to maintaining the effectiveness and appropriateness of the change. Good monitoring and analysis of the resulting data is essential. > Make sure you continue to keep employees informed of progress

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* Theory E Theory E has as its purpose the creation of economic value, often expressed as shareholder value. Its focus on formal structure and systems. It is driven from the top down with extensive help from consultants and financial incentives. Change is planned and programmatic

* Theory O Theory O has as its purpose the development of the organization’s human capability to implement strategy and to learn from actions taken about the effectiveness of a changes made. Its focus is on the development of a high – commitment culture. Its means consist of high involvement, and consultants and incentives are relied on far less to drive change. Change is emergent, less planned and programmatic


Theories E and O of ChangeTheories E and O of Change

Purpose & MeansPurpose & Means Theory E Theory E Theory O Theory O

Purpose Purpose Maximize economic value Develop organizational Maximize economic value Develop organizationalcapabilities capabilities

Leadership Leadership Top – down Top – down ParticipativeParticipative

FocusFocus Structure & systems Structure & systems CultureCulture

PlanningPlanning Programmatic Programmatic EmergentEmergent

MotivationMotivation Incentives lead Incentives lead Incentive lagIncentive lag

ConsultantsConsultants Large/knowledge – Large/knowledge – Small/process drivenSmall/process driven drivendriven


DimensionsOf Change

Theory E Theory O Theory E and O Combined

Goals Maximize shareholdervalue

Develop organizationalcapabilities

Explicitly embrace the paradoxbetween economic value andorganizational capabilities

LeadershipManage change from the top down

Encourage participationfrom the bottom up

Set direction from the topand engage the people below

Focus Emphasize structureand systems

Build up corporate culture, employees’ behavior and attitudes

Focus simultaneously on the hard (structures and systems) and the soft (corporate culture)

Process Plan and establish programs

Experiment and evolve Plan for spontaneity

Reward System Motivate through financial incentives

Motivate through commitment – use payas fair exchange

Use incentives to reinforcechange but not to drive it

Use ofConsultants

Consultants analyzeproblems and shape solutions

Consultants support management in shapingtheir own solutions

Consultants are expert resources who empoweremployees


• Incremental Change Strategy – taking necessary changes in sequential order

• Fundamental Change Strategy – the whole organization and its relationship will simultaneously change


MANAGEMENTCHANGE

Generate energy, allocate resources, shift paradigms, develop transformation team, develop transformational leaders at all levels

STRATEGYCHANGE

Product portofolios, market repositioning, value proposition, competitive advantages, the winning formula, business success model (KPI, strategic initiative)

STRUCTURALCHANGE

Realignment and rebuilding of policies, management systems, organization structures, business processes, enabling technology

CULTURALCHANGE

Cultural assessment, value definition, a set of behaviors, socialization, internalization, externalization (Moments of Truth), reassessment

Fundamental ChangeFundamental Change


CULTUREBusiness Acumen

A Culture of Excellence

THE STRATEGY MODELThe Strategy Model for Fundamental The Strategy Model for Fundamental ChangeChange

LEADERSHIPResults-Based

Transformational

CHANGEFundamental, Strategic and Comprehensive

First WHO then WHAT

STRUCTURE & SYSTEMSAccountabilityRelationship

THE SOCIAL CAPITAL


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BUSINESSTRANSFORMATION

TECHNOLOGY CHANGE

PROCESS CHANGE

PEOPLECHANGE

Source : AGILE Change

Results

1. Anticipate Change2. Generate Confidence3. Initiate action4. Liberate thinking5. Evaluate results

1. Phase One: FOCUSED Communicate

Vision, Strategy and

commitment2. Phase two: Fast Target3. Phase three : Build on going capability

The Business Transformation Implementation The Business Transformation Implementation of Change Model (Simplified Framework)of Change Model (Simplified Framework)

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Before change After change

DesiredCondition

CurrentCondition

Restraining

forces

Drivingforces

RF

DF

RF

DF

Lewin’s Force Field Analysis Model

Restraining and Driving Restraining and Driving ForcesForces


Level of AcceptanceLevel of Acceptance

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Awareness Desire KnowledgeAbilityReinforcement

Business Need

Concept and Design

Implementation

Post-implementatio

n

Phas

es o

f a

chan

ge p

roje

ct

Phases of a change for employees

SuccessfulChange


Awareness Awareness 04/22/23hendra kusnoto 51

Desire Desire 04/22/23hendra kusnoto 52

Knowledge Knowledge 04/22/23hendra kusnoto 53

Ability Ability 04/22/23hendra kusnoto 54

Reinforcement Reinforcement 04/22/23hendra kusnoto 55



Analysis “Force Field” Planning and Strategy ”Strategic

Triangle” Implementation ”8 Steps” Supporting implementation ”Cycle of

Change” ”Storytelling”


Desired state

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DRIVINGFORCES

RESTRAININGFORCES

CURRENT STATE

Kurt Lewin

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OperationalCapacity:Ability to

deliver results

Legitimacy and Support:

Comes fromauthorizing

environment

Creating Public Value, Mark H. Moore

• Mission

• Goals

• Objectives

• Value

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In developing a change strategy, a leader must bring three elements into coherent alignment: •The change strategy must be substantively valuable in the sense that the organization or the program produces things of value to overseers, clients, and beneficiaries at low cost in terms of money and authority.


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•It must be legitimate and politically sustainable. The organization or program must be able to continually attract both authority and money from the political authorizing environment to which it is ultimately accountable


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•It must be operationally and administratively feasible in that the authorized, valuable activities can actually be accomplished by the existing organization with help from others who can be induced to contribute to the organization’s or program’s goal.


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“People will not make sacrifices, even if they are unhappy with the status quo, unless they think the potential benefits of change are attractive and unless they really believe that a transformation is possible.”

The Heart of Change (John P. Kotter and Dan S. Cohen)

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Increase urgency Build the guiding team Get the vision right Communicate for buy-in* Empower action Create short – term wins Don’t let up Make change stick

* “70% of people’s problems need no other solution than understanding” “Resolving conflict”, McConnon

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If A + B + D > Z, then C

C = Change

A = Dissatisfaction with the status quo

B = Knowledge about first practical steps

D = Shared vision of the future

Z = Costs of change (economic, psychological)

Adapted from Richard Beckhard’s Change Equation C= f (A+ B + D) > Z

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Daryl R. Conner

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Explain complex idea to spark action

Image

Transmit values

Further team work

Tame the grapevine Share

information and

knowledge

Lead people into the future

“Squirrel Inc.” Stephen Denning

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Important to factor in the change process

Techniques to work with change: - Force Field Analysis, - Strategic Triangle, - 8 Steps model, Change Equation - Cycle of Change, Storytelling




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If change without direction business as

usual Change for better and the

importance of change is adapting to new era

and survival

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For most organizations, the problems with managing change derive from two key areas:

Too many unnecessary changes caused by cross - functional misunderstandings; And too many well-intentioned changes made in later stages without adequate consideration of their negative impact

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These four factors for failure then lead to the “treadmilleffect”:

• No time for reflection, planning and learning• No improvement in design and implementation • Increasing need to do something• Increasing failure and unplanned consequences• Go back to 1. and repeat

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“The main dangers in this life are the people who want to change everything or nothing” - Lady Nancy Astor

Before looking at the four factors for success, recognising the four factors for failure in managing change can help identify problems more rapidly, and can show where initial action should be concentrated:

• Lack of consistent leadership• De-motivated staff kept in the dark• Lack of capacity: budget cuts, no spend-to-save policy, short-term approach to investment, stressed out staff working hard just to stand still • Lack of initiative to “do something different”

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Change process goes through a series of phases that, in total require a considerable length of time

Skipping steps creates only an illusion of speed and never produces a satisfying result

Critical mistakes in any of the phases can have a devastating impact, slowing momentum and negating hard won gains

Even very capable people often make at least one big error

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Not Establishing a Great Enough Sense of Urgency Not Creating a Powerful Enough Guiding Coalition Lacking a Vision Undercommunicating the Vision by a Factor of Ten Not removing obstacles to the New Vision Not Systematically planning for and Creating Short-

Term Wins Declaring Victory Too Soon Not Anchoring Changes in the Corporation’s Culture

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Transformation requires the aggressive cooperation of many individuals

Change by definition always demand leadership The message that the status quo is more

dangerous than launching into the unknown must be given

Successful transformation requires a minimum “critical” mass

Guiding coalition members must include those that operate outside of the normal hierarchy

Teamwork is essential

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In failed transformations, you often find plenty of plans and programmes, but no vision

A vision says something that clarifies the direction in which an organization needs to move

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In more successful transformation efforts, executives use all existing communication channels to broadcast the vision

Communication comes in both words and deeds Nothing undermines change more than behaviour by

important individuals that is inconsistent with their words

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Too often,an employee understands the new vision and wants to make it happen. But something appears to be blocking the path,

Organization structures, systems and procedures can seriously undermine transformation efforts.

The worst of all are bosses who refuse to change and make demands that are inconsistent with the overall effort.

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Without Short-Term wins, too many people give up or actively join the ranks of those who have been resisting change

Short-Term wins help keep the urgency level up and force detailed analytical thinking that can clarify or revise visions

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While celebrating a win is fine, declaring the war won can be catastrophic.

Changes must sink deeply into an organizational culture.

New approaches are fragile and subject to regression.

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Change sticks when it becomes “the way we do things around here.”

There must be a conscious attempt to show people how the new approaches, behaviours, and attitudes have helped improve performance.

Take sufficient time to make sure that the next generation of top management really does personify the new approach.




Pressure for change

Clear shared vision

Capacity (resources)

Action (and performance)

3Policy and action plan in

place Regular reviews

Active commitment from top management

3High level of awareness and

support at all levelsStaff highly motivated

3Resources (staff and

funding) routinely committedCost savings re-invested for

further improvements

3Action being taken and

embedded throughout the organisation

Monitoring and reporting of progress

2Policy agreed and

communicated to all staff

2Representatives from all

levels of management chain involved in planning process

and drawing up action plan(s)

All staff given opportunity to make an input

2Key staff working on plans

and projects.Staffing and funding needs

identified and resources becoming available

2Wider engagement across

the organisation‘Low-cost’ and more ‘no-

cost’ measures implemented

1Board level “champion”

appointedDrafting of policy

1Key and supportive staff identified for assisting in

drafting policy, taking action, and driving the process

1“Champion” appointed at

middle management level (to support the Board’s

“Champion”).Training & development

needs assessment

1Commencement of action at

some levels of the organisation.

Some ‘no-cost’ measures implemented

0No explicit policy

‘Business as usual’, no forward planning

Lack of consistent leadership & responsibility (buck-

passing)

0De-motivated staff kept in

the dark

No communication.General mistrust

0No investment. High stress levels in over-worked and

under-valued staffNo training & development

0Zero action

(or limited to crisis management)

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Vision

Vision

Vision

Vision

Vision

Skills

Skills

Skills

Skills

Skills

Incentives

Incentives

Incentives

Incentives

Incentives

Resources

Resources

Resources

Resources

Resources

Action Plan

Action Plan

Action Plan

Action Plan

Action Plan

Change

Confusion

Nervousness

Gradual Change

Frustration

False Starts


How Things Will Be Better With the Change More Than Sloganeering Leaders and Change Agents Need Their Own

Individual Visions and Need to Know How That Fits Into the Organization’s Vision

People Need to See How They Fit Into That Vision


Develop Detailed, Multi-dimensional Plans Change Description Business Objectives Human Objectives Key Role Map Vision Detailed Activities, Resources, Timelines Measurements

Recognize That This Is a Journey Will Need to Adapt Plan As Needs Change


There Is a Need to Develop a Comprehensive Plan for the Change

There Is a Need to Get the Organization Ready for the Change

But If It Takes Too Long, People Lose Interest and Motivation

So, Plan for Short Projects That Will Engage the People


The Past Bounds Future Success Identify Critical Success Factors From

Previous Successful Changes in the Organization Surveys Interviews Lessons Learned Sessions

Acknowledge Past Failures Explicitly Plan on Countermeasures


At All Levels Within the Organization Teach Them Their Job

Establish a Clear Vision Articulate That Vision Communicate With the Affected Groups Focus Energies on Their Direct Reports Monitor Progress Eliminate Obstacles Recognize and Reward Short-term Wins Stick With It for the Long Haul


Create a Key Role Map of the Formal Organization Sponsors (at All Levels) Change Agents Targets

Augment With Identification of Informal Organization Key People (Understand Why They Have This Influence) Opinion Shapers Gate Keepers Idea Champions

Develop an Understanding of Their Level of Influence Level of Commitment to the Change


Assess the Organization on Their Readiness for This Particular Change Surveys One-on-One Discussions

Understand Where People Are Early Adopters Late Adopters Laggards

Are There Outside Organizations That Are Influencers?

Understand Their Frames of Reference and Develop Communication Strategies


Avoid the Dedicated Resistors, Focus on Early Adopters (About 20% of the Population)

Helps to Get Some Early Wins


Get People Involved Early in the Planning Even If They Can’t Plan “What”, They Can Plan

“How” They Are Changed by the Act of Participating in

Planning the Change Surfaces Resistance Early and Can

Potentially Manage It



Substitute One Fear for Another Make the Anxiety Associated With Not

Changing Greater Than the Anxiety of Changing

Intentionally Create Disorder Remove the Mechanisms That Allow People

to Stay the Same


Keep It Simple – No Jargon Use Language of the People Use Storytelling Use Different Mediums

Memos Group Meetings Stories in Newsletters One-on-one Meetings (Have Different Levels of Impact)

Change Style of Communication Depending Upon Where You Are in the Change Who You Are Communicating With

Walk the Talk, Be Honest


Sample

Memo From Director General to Manager:Today at 11 O'clock There Will Be a Total Eclipse of the Sun. This Is When the Sun Disappears Behind the Moon for Two Minutes. As This Is Something That Cannot Be Seen Every Day, Time Will Be Allowed for Employees to View the Eclipse in the Car Park. People Should Meet in the Car Parking Area at Ten to Eleven, When I Will Deliver a Short Speech Introducing the Eclipse, and Giving Some Background Information. Safety Goggles Will Be Made Available at a Small Cost.

Memo From Manager to Department Head: Today at Ten to Eleven, All Staff Should Meet in the Car Parking Area. This Will Be Followed by a Total Eclipse of the Sun, Which Will Disappear for Two Minutes. For a Moderate Cost, This Will Be Made Safe With Goggles. The Director General Will Deliver a Short Speech Beforehand to Give Us All Some Background Information. This Is Not Something That Can Be Seen Every Day.


In Terms That Have Meaning to Individuals and Teams Ask Them What a Reward Would Look Like to

Them Highly Visible Reward Throughout the Change, Not Just at the

End


Plan for Goals (Long and Near Term) That Are Measurable, Tangible and Clear Explicitly Tied to Vision

Not a Count of Activities # Of People Trained in CM Projects/programs # Of Procedures Written

Performance Results That Matter to Customers, Employees or Shareholders Reduction in Delivered Defects Reduction in Cycle Time Reduced Escaped Defects Resulting in

Reduced Rework


Things Often Get Worse Before They Get Better Increase the Communication

Change the Medium and Words Focus on What Is Ahead Provide As Much Information As Possible

Allow Resistance to Surface and Manage It


Resistance Can Be at Systemic or Behavioral Level Systemic – Lack of Appropriate Knowledge,

Information, Skills and Managerial Capacity (Cognitive)

Behavioral – Reactions, Perceptions and Assumptions (Emotional)

Acknowledge the Pain of Changing


Letting Go of Familiar Past (Perhaps a Romanticized View)

Confronting Feelings About an Uncertain Future

Dealing With Loss of Face Redesigning a Focus on New Realities Working on These in Public, Facilitated

Forums Allows People to Constructively Express Their Anxiety and Anger and Helps to Reduce Passive-Aggressive Inertia and Sabotage


Resistance Is Inevitable A Natural Function of Change Manageable

Resistance Is Not Necessarily Logical A Sign of Disloyalty To Be Taken Personally A Sign That the Change Project Is Out of

Control


Train Managers As Facilitators for the Change Helps Them to Demonstrate Active

Commitment to the Change Can Immediately Reinforce the Training on

the Job Trainers Are Generally Not Held Accountable

for Achieving Results Development and Delivery Are Much Less

Important Than Group Dynamics and the Perception That Leadership Is Interested


Study Groups “On-the-Dash” Coaching Web-based Classroom Training


Educate Leaders of the Change As Well As the Targets of Their Roles in the Change To Be Open to Change To Anticipate Change, Not Just React to It To Accept That Change Causes Stress and to

Developing Coping Mechanisms


Simultaneously Pushing for Change While Allowing Self-learning to Unfold

Being Prepared for a Journey of Uncertainty Seeing Problems As Sources of Creative Resolution Having a Vision, but Not Being Blinded by It Valuing the Individual and the Group Incorporating Centralizing and Decentralizing

Forces Being Internally Cohesive, but Externally Oriented Valuing Personal Change Agency As the Route to

System Change


“The Ultimate Measure of a Man Is Not Where He Stands in Moments of Comfort,

but Where He Stands at Times of Challenge and Controversy”

(Martin Luther King, Jr.)


What is Change? Two Sides of Change People Oriented Change Organizational Change Managing Resistance to Change Tools for Change The Best Practice of Change Antam’ Experience


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Draft


Agenda

Arah dan Model Transformasi

Strategi Transformasi

Langkah-langkah Transformasi

Daftar Isi


Arah Transformasi

Visi 2020Visi 2020 Antam adalah: ““To be a global mining based

corporation, with healthy growth and world-class standards”. Pengertian:

Global diartikan sebagai meningkatkan ukuran dan praktek, dan mengembangkan operasi di luar negeri

Mining based diartikan sebagai berbasis sumber daya mineral, diversifikasi bisnis, dan integrasi;

Healthy growth diartikan sebagai pertumbuhan diatas rata-rata perusahaan sejenis, dan

World class standards diartikan sebagai kemampuan organisasi untuk menerapkan prinsip-prinsip operational excellence menuju high performing organization berdasarkan kaidah-kaidah best in class performance


Arah Transformasi (samb)

Visi 2020 Visi 2020 di atas menunjukkan bahwa di masa depan

akan Antam memposisikan dirinya menjadi perusahaan global yang bergerak dalam bisnis berbasis komoditas tambang dan beroperasi di manca negara

Untuk merealisasikan Visi Antam tersebut dibutuhkan konsep manajemen transformasi yang mampu dijadikan pedoman bagi segenap pimpinan Antam

Konsep manajemen transformasi dimaksud diwujudkan dalam bentuk model transformasi Antam sebagai berikut:


Model Manajemen Transformasi

• GCG

• Arahan Strategik • Nilai-nilai Perusahaan

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Sistem Manajemen Kinerja

Kepemimpinan Korporat

Persyaratan Bisnis KSF Hasil


Model Manajemen Transformasi (samb)

Untuk melakukan transformasi, Antam telah mempersiapkan serangkaian persyaratan bisnis seperti GCG, arahan strategis dan nilai-nilai perusahaan yang berfungsi sebagai landasan untuk mencapai visi

Untuk mengimplementasikan visi, Antam telah mempersiapkan Rencana Jangka Panjang Perusahaan (RJPP) yang berfungsi sebagai pedoman manajemen di dalam menjalankan strategi korporat

Antam telah mempersiapkan stuktur organisasi, kebijakan bisnis, sistem manajemen kinerja serta sistem dan prosedur


Model Manajemen Transformasi (samb)

Antam telah mempersiapkan serangkaian persyaratan bisnis dengan baik sebagaimana perusahaan pada umumnya. Untuk mencapai keberhasilan transformasi, Antam perlu mengembangkan kapabilitas organisasi (organization capability) yang merupakan faktor kunci keberhasilan di dalam proses transformasi

Antam perlu mengembangkan strategi transformasi yang tepat berdasarkan strategi korporat sebagai berikut:


Agenda




Daftar Isi



Strategi Korporat:Optimize core commodity

business or Continuously to increase cost efficiency, effectiveness and competitiveness

Selectively diversify mining-based businesses or Smartly optimize high potential value business integrations

Strive for operations excellence and technology development

Strategi Transformasi:Fokus pada peningkatan

efisiensi

Pengembangan kemampuan kewirausahaan dan inovasi bisnis

Mengembangkan kemampuan operations and performance excellence di seluruh organisasi



Strategi Korporat:Balance leverage on asset

performance, profitability, shareholders value, community welfare and environment conservation

Effectively develop people capability and capacity

Strategi Transformasi:Mengembangkan high purpose

organization

Mengembangkan high purpose people and culture


Agenda




Daftar Isi



1. Meningkatkan sense of urgency2. Membentuk tim pemandu (guiding team)3. Merumuskan arahan strategis (visi, misi dan

strategi korporat)4. Mengkomunikasikan arahan strategis5. Memberdayakan pimpinan dan pegawai6. Menjalankan proyek manajemen transformasi7. Mengkonsolidasikan transformasi8. Membangun budaya perusahaan baru


Langkah 1:Meningkatkan Sense of Urgency

Saat ini kita semua mengetahui bahwa Direktur Utama telah menyampaikan pesan kepada segenap pimpinan dan pegawai untuk meningkatkan kesadaran bahwa kita harus berubah seiring dengan transformasi lingkungan bisnis yang ditandai dengan krisis finansial global

Dirut menekankan bahwa dampak krisis terhadap Antam cukup signifikan, yaitu turunnya harga komoditi dan pendapatan perusahaan


Meningkatkan Sense of Urgency (samb)

Untuk mengatasi dampak tersebut, Dirut menekankan perlunya upaya-upaya perbaikan, efisiensi dan inovasi di segala bidang sehingga kita bisa mengatasi persoalan

Selanjutnya ditegaskan bahwa setiap pemimpin berkewajiban untuk meneruskan pesan ini kepada para pegawai di lingkungannya dan menjalankan program-program yang berkaitan dengan peningkatan efisiensi dan inovasi


Langkah 2:Membentuk Tim Pemandu (Guiding Team)

Unsur Pimpinan Transformasi: Promotor Transformasi: Direktur Utama Sponsor Transformasi: Seluruh anggota

Direksi Koordinator Manajemen Proyek

Transformasi: Direktur Sumber Daya Manusia


Membentuk Tim Pemandu (Guiding Team)

Unsur Pengelola Proyek ManajemenTransformasi: Project Manager Transformasi adalah pimpinan

Proyek Managemen Transformasi Eksekutif Transformasi adalah semua pimpinan

satuan kerja di Kantor Pusat dan unit-unit Agen Transformasi adalah pegawai yang

ditugaskan menjalankan proyek transformasi


Langkah 3:Merumuskan Arahan Strategis

Tim Perumus dan Sosialisasi Arahan Strategis telah dibentuk

Hasil kerja tim adalah rumusan arahan strategis yang memuat rumusan visi, misi, strategi dan arahan yang akan dipergunakan oleh Tim RJPP dan tim-tim lainnya

Saat ini perumusan arahan strategis sedang dalam tahap penyelesaian


Merumuskan Arahan Strategis (samb)

Apabila rumusan arahan strategis telah disetujui oleh Komisaris, maka tahap selanjutnya adalah mensosialisasikannya kepada seluruh pegawai

Pihak yang paling tepat untuk mensosialisasikan arahan strategis adalah Unsur Pimpinan transformasi dibantu oleh Tim Sosialisasi Arahan Strategis


Langkah 4:Memberdayakan Pimpinan dan Pegawai

Untuk mensukseskan manajemen transformasi, maka manajemen Antam perlu memberdayakan pimpinan dan pegawai di semua level organisasi

Proses pemberdayaan dapat dilakukan dengan cara:

memberikan kesempatan untuk mengajukan ide-ide baru mengenai transformasi

memberikan kepercayaan untuk menjalankan proyek manajemen

mendelegasikan tugas-tugas kepemimpinan


Langkah 5:Menjalankan Proyek Manajemen

Transformasi

Untuk menjalankan strategi transformasi dengan baik, Unsur Pimpinan Transformasi Antam perlu menjalankan serangkaian proyek manajemen transformasi sbb:


Proyek Manajemen Transformasi

Tujuan: Membangun kapabilitas organisasi Antam untuk mensukseskan proses transformasi

Proyek Manajemen Tujuan• Peningkatan Efisiensi dan Inovasi - meningkatkan efisiensi, dan inovasi proses,

sistem dan produk

• Pengembangan Budaya Perusahaan - mengembangkan budaya perusahaan PIONEER, team

building dan budaya pembelajaran

• Pengembangan Kapabilitas Operasi - meningkatkan kualitas (Manajemen Mutu) berbasis berbasis operations and performance Malcom Baldrige danTQM excellence




Proyek Manajemen Tujuan• Pengembangan Kepemimpinandan - meningkatkan kompetensi Pegawai berbasis high purpose kewirausahaan pemimpin organization dan pegawai yang concern

pada masyarakat dan lingkungan

• Alignment Kebijakan dan Sistem - mengembangkan dan Manajemen Strategis menyelaraskan kebijakan

dengan sistem – sistem manajemen strategis (GCG, Arahan Strategis, SMK, SMUK, dll)




Proyek Manajemen Tujuan• Pengembangan Organisasi dan Proses - menyediakan organisasi Bisnis dan proses bisnis yang

memiliki nilai tambah tinggi

• Pengembangan Teknologi - meningkatkan daya saing perusahaan berbasis teknologi yang sesuai dengan strategi korporat


Langkah 7:Mengkonsolidasikan Transformasi

Koordinator Manajemen Proyek Transformasi melakukan konsolidasi semua proyek manajemen perubahan agar tercipta sinergi yang efektif dibantu oleh PMO dan ICT

Koordinator tersebut juga berkewajiban menjaga stamina setiap pihak yang terlibat di dalam manajemen transformasi Antam melalui pemberian motivasi, fasilitas dan imbalan


Langkah 8:Membangun Budaya Perusahaan Baru

Koordinator Manajemen Proyek Transformasi bertugas mengkoordinasikan semua kegiatan yang berkaitan dengan implementasi proyek manajemen transformasi dengan pengembangan budaya perusahaan baru

Pada saat ini Tim Perumus sedang mengkaji nilai-nilai budaya perusahaan yang perlu dikembangkan di lingkungan Antam. Hasil kerja tim ini akan dipergunakan oleh Pengelola Proyek Pengembangan Budaya Perusahaan


Langkah 8:Membangun Budaya Perusahaan Baru

Pengelola Proyek Pengembangan Budaya Perusahaan berkewajiban melakukan survey budaya perusahaan dan mengembangkan budaya perusahaan baru berdasarkan nilai-nilai PIONEER

Di dalam melakukan sosialisasi nilai-nilai PIONEER, Pengelola Proyek Pengembangan Budaya Perusahaan melakukan kerjasama dengan Tim Sosialisasi Arahan Strategis



Questions and comments, please…

Thank You, and Good Luck…..

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Documents

Change Management - Concepts And Tools