MixedNutz Productions
Change Plan
Fear of the Unknown
Future
The Ear Technologies Story
Ear TechnologiesThe Value of ListeningA Virtue of Obedience
EAR TECHNOLOGIES PHILIPPINES INCORPORATED
est 2004
Ear Technologies Hearing Aid CenterExclusive distributor of Siemens
Hearing Instruments in Northern Luzon
Five (5) branches: Baguio City (SM City Baguio) 2004Dagupan City 2005San Fernando, La Union 2006Tarlac City 2007 (closed 2009)SM Pampanga 2008Laoag City 2010
• Corporate Officer• Chairman – Edwin M. Cosalan, MD• Pres/COO – Jerry Agerico B. Rosario, MD• Secretary – Sme Juancho Estrella, MD• Treasurer – Louie V. Medenilla, MD• • Board of Director’s• Orlando Del Rosario, MD• Carlos Dumlao, MD• Julio Eming, MD• Edgardo Pormento, MD• Gerardo Mario Tolentino, MD• • Member/Stockholders• Loreto Balanon, MD• Armando Bonifacio, MD• Emily Estaris, MD• Merla Floresca, MD• Jose T. Jose, MD• Florencio Jude, MD• Ronnie Mamaril, MD• Leonardo Mangahas, MD• Bernice Padalla, MD• Pedro Patao, MD• Joecel Joyce Reyes, MD• Mary Jane Tipayno, MD• Frederick Mars Untalan, MD• Zenaides Wi, MD
The birth of Ear Technologies
The FOUR Pillars of ENT North Luzon
Treatable Population
• 5% - 10% can be helped medically or surgically. (This would include cochlear implants.)
• The remaining 90% - 95% can significantly correct their hearing loss with hearing aids. Hearing aids can not totally restore hearing, but they can make a big difference in improving the quality of life for people with hearing loss.
Source: Better Hearing Institute (1999). Number of Persons Using Hearing Devices by Age of Person and Type of Device. (online). Available: http://www.betterheading.org/faq.htm (June 2, 2000).
Ear Technologies LAOAG
Ear Technologies PAMPANGA
Ear Tech is really making
money!
So why the change…?
Organizational Diagnosis
Present situation at Ear Tech…
complacency
Problems• NO MISSION / VISION
– Purely came together for business
• NO FORMAL ORGANIZATIONAL STRUCTURE– No clear delegation of duty– Operations controlled by self appointed COO
• NO GOALS• NO CORE VALUES• NO STRATEGIC PLAN FOR THE FUTURE
– for profit only– short sighted plans -(ex. tarlac branch)
McKinsey 7S FrameworkShared values• Financial success ; • To be the major distributor of hearing aids in Northern Luzon
Strategy• To setup satellite hearing aid centers in key areas in Northern to distribute and sell the product.• For profit orientation only
Structure• Centralized operations managed by one board member
Systems• System is controlled by one board member.• No defined systems of operations.
Staff• Increase turnover rate.• High overhead cost.
Style• Hierarchal, follows “seniority rule.”
Skills• Available skills set of people, but under utilized because operations is managed by one board member.
Misalignment…Environment is changing
The FOUR Pillars of ENT North Luzon
“I paved the way. Kung wala ako, wala
din kayo dito…”
“we are the first
ENT group outside
MM, tayo pa din ang nauna..”
“we are earning, we have enough money. That’s already ok..!”
“what we’re doing now is effective,
maintain..!”
vision for the change effort
RATIONALE
• COMPLACENCY – boards contented with profit– boards leave all operational duties to one; trusts the annual
reports without verification efforts
• URGENCY TO INSTITUTIONALIZE FOR THE FUTURE OF THE CORPORATION
– for long term sustainability of the business– for potential growth and expansion– readiness for competition
INSTITUTIONALIZE
• Need to plan for the future of company’s sustainability
• Need to re-establish and re-orient company to visualize their desired future state
• Need to re-organize and re-engineer company systems (human and non-human)
• Need to ensure succession of management
vision for the change effort• What is your vision for the change effort/Rationale for
the vision – Redefine organizational culture– Competitive business processes– Adaptive to the changing physical environment– Modify job design / responsibilities of staff– Standardized Staff skills / knowledge and policies /
procedures – Maximum company benefits– maximize business potentials– Lead the untapped market– evolve to a different level in Ear tech’s their life cycle
Decentralization & delegation of
responsibilities
vision for the change effort• Redefine organizational culture• Competitive business processes• Adaptive to the changing physical environment• Modify job design / responsibilities of staff• Standardized Staff skills / knowledge and policies /
procedures • Maximum company benefits• maximize business potentials• Lead the untapped market• evolve to a different level in Ear tech’s their life cycle
• Need to plan for the future of company’s sustainability
• Need to re-establish and re-orient company to visualize their desired future state
• Need to re-organize and re-engineer company systems (human and non-human)
• Need to ensure succession of management
If no action is taken, Ear Tech will…
Other ENT doctors incorporated
stakeholder analysis
STAKEHOLDERS description
ENT investors/members Earn from dividends & rebates
Board of Directors Decision making/policy making body
New ENT doctors (non member) Earn from rebates. High possibility of forming another “ENT company”
SIEMENS Exclusivity contract with Ear Technologies
Chief Operations Officer Controls HR, Finances, Operations, Supply Chain (real-time). One Man Team!
Clients No choice sila, may-ari ng EarTech mismo ang nagprescribe ng heraing aid nila!
Staff/employees “mga tuliro” at laging napapagalitan!
Specialty Society Regulation of Hearing Aid Centers
Four Pillars We have to obey them!
STAKEHOLDER INTEREST (WIFM) POSITION INTENSITY OF POSITION SOURCE OF POWER DEGREE OF INFLUENCE NETWORK OF INFLUENCE
Four Pillars Lesser influence and lesser authority Resistor High REFERENT; REWARD High Wide
COO Lesser control of the corporation Resistor High INFORMATION/ REFERENT; REWARD High Wide
ENT Investors/ Other Board Members More "power" to decide for the corporation Ally/ Bystander/ Resistor Medium LEGITIMATE; REFERENT Medium to High Medium to Wide
Other ENTs and New ENT doctors (non-members) More opportunities to earn Ally/ Bystander Unknown to Medium INFORMATION; REWARD Medium Narrow to Unknown
Clients Better Service Ally Low INFORMATION; REWARD Medium Low to Medium
Supplier (Siemens) More sales Ally Medium EXPERT & INFORMATION; REWARD Medium Wide
Staff/ Employees Defined job descriptions/ Additional or change of duties and responsibilities Bystander/ Resistor Low INFORMATION; REWARD Low Narrow
ENT SPECIALTY SOCIETY Prestige Bystander Medium INFORMATION; COERCIVE High Wide
4 Pillars
COO
ENT Board Members
Customers
Other ENT/ New ENT (non-members)
Staff
Supplier
ENT Society
Force Field Analysis
Force Field analysis
•Driving forces Hindering
forces
UR
GE
NC
Y F
OR
IN
STIT
UTIO
NA
LIZ
ATIO
N
PRESENTSTATE
RE
-OR
GA
NIZ
ATIO
NR
E-O
RIE
NTA
TIO
NR
E-E
NG
INE
ER
ING
FUTURESTATE
ENT Investors/Other Board MembersENT Investors/
Other Board Members
4 PILLARS
COO
Supplier
New ENT/non-members
+5
+4
+2 +3
+1 STAFF
ENT SOCIETY
+1CUSTOMERS
Total Driving Force: 3 Total Hindering Force: 13
Desired PLAN for Ear tech (if and when)
– Redefine organizational structure– Competitive business processes– Adaptive to the changing physical environment– Modify job design / responsibilities of staff– Standardized Staff skills / knowledge and policies /
procedures – Maximum company benefits– maximize business potentials– Lead the untapped market– evolve to a different level in Ear tech’s their life cycle
Forces driving change
• 1. increasing # of new ENT doctors• 2. increasing demand of customers• 3. tougher competition ahead• 4. Increase # of stores/branches• 5. New ENT doctors who are business oriented• 6. New technology
• are they valid? Can they be changed? Which are the critical ones?
Forces restraining change
• 1. poor communication channels• 2. worn out business processes• 3. increase staff turnover rate• 4. obedience
• are they valid? Can they be changed? Which are the critical ones?
Is the change viable?Can progress occur?
• YES!
Driving forces vs restraining forces• Increasing number of
new ENT doctors• Increasing client
demand • Increase # of
stores/branches• Tougher competition
ahead• New ENT doctors who
are business oriented• New technology
-- encourage more ENT doctors to practice in the North!
-- more ENT doctors – more patients
--- convince the mngmt that there is competition soon!
-- other ENT doctors may set-up a similar business
-- convince them that new technology is easier & it increases sales!
Driving forces vs restraining forces• Poor
communication channels
• High staff turnover rate
• Has not been done before
• Obedience!!
• Encourage more meetings
• HR training• New things are here
to stay• Obedience is good;
teamwork is better!!
Interventions
•
– What this is fundamentally & why?– How would you go about implementing your
intervention•
Communication Plan• Key messages – materials that you might use & how you will be communicating your messages• when do you communicate?, • what do you communicate?,• how do you communicate?• will they still have a job after the change• will they maintain their rank, • will they have an interesting role, what will their future be?
• People will have new questions to be answered, and new ideas and understandings of the intermediate and final states will be developed. In response, people have to be kept up-to-date with actual and future states, and answers given to their questions.
• Use of flowcharts• Provide feedback• Face to face communication• No emails, no memos
– Do all your position or role descriptions have 'communication' as a key responsibility?– Do your managerial performance agreements or contracts include 'communication' as a key result area?– Are managers recognised for communicating well and counselled or penalised for not communicating?– Are staff at all levels encouraged and supported to give critical upward feedback?– Does your organisation see training as one of your key communication channels?
Interventions
• Communicate need or urgency for change to four pillars, other board members, and those who need to be informed of the planned change.
• Find allies that will help in the change movement.• Lay a ground work of strategies for the change that the group
can build on.• Team building of members, management, and staff.• Peer and management evaluations.• Staff reorientation of policies and staff training for better
performance and customer service.• Do strategic planning.
Communication Plan
• SEND A CLEAR MESSAGE: Need to institutionalize for company sustainability. Why? Threat from competitors who can capture or overtake the company in the future due to its continued complacency.
• Face to Face/ One-on-One Discussions• Board meetings• Focus Group Discussions
FACE-TO-FACE/ONE-ON-ONE DISCUSSION
• WHO: Four Pillars, Board Members who are considered MOVERS or SHAKERS
• WHERE: Over dinner, over a round of drinks, over a camaraderie and bonding moment event
• WHY: Can be powerful allies for the change• Strategic Approach: Empirical Rationale
BOARD MEETINGS
• WHO: All Board Members and Involved Management Members.
• WHERE: Function Room/Board Room• WHY: To propose FORMALLY of the planned
change• Strategic Approach: Empirical Rationale/
Normative Reeducative
FOCUS GROUP DISCUSSION
• WHO: Management staff and employees and other non-board member ENT doctors
• WHERE: Clinics/Satellite clinics/Conventions/ Round Table Discussions
• WHY: For feedback and evaluation of current practices, Eliciting suggestion for future improvement of company and its services
MONITORING THE CHANGE• Public relations
– % of press releases that are picked-up by media
– Average number of media that pickup story per press release
• Sales & Marketing– % of recected patents
• Human Resources Training– % of training courses that match
organizational requirements – % of training courses that match
organizational requirements – % of HR budget spent on training – % of attendees at training sessions – % of employees who are willing to
recommend company as employer
• Documents– Average frequency of updates of documents– % of duplications/document variations
• Corporate– % of directors that own shares in the company – Percentage of directors that own shares in the
company.– Level of industry expertise of new board members– Frequency of senior manager branch tours
• Demonstrates high priority to safety.
• Key Performance Indicators (KPI of KPI’s)– % of KPIs that are automatically measured – % of KPIs that do not reflect business goals – % of KPIs within set objectives % of measured KPIs
• Improvement & Innovation– Percentage of goals accomplished from most recent
strategic plan.– Delay in production of financial reporting– Frequency of compliance reviews– Average number of quality checks vs. target– Percentage of strategic objectives achieved
• Percentage of strategic objectives achieved within a given period. Depends on annual or pluri-annual management plan high-level objectives.
MONITORING plan
• Passing of Board Resolutions (for final decision) and implementation of resolutions.
• Regular Board Meetings with specific goals stated in the agenda.
• Key performance indicators for management staff and employees
MONITORING plan
Succession plan Closure
MONITORING plan
• INSTITUTIONALIZED CHANGE– Mission - Vision in place– Strategic Plans for Short and Long-term Goals– Formalized Organizational Chart– Defined Job Descriptions for Employees
MONITORING plan
MONITORING PLAN
• FEEDBACK• ITERATION AND UPDATING OF COMMUNICATION
STRATEGY• EVALUATION MECHANISMS IN COMMUNICATION
STRATEGY• PURPOSE OF COMMUNICATION VIS A VIS PHASE OF
THE PROGRAM: obtaining buy-in, commitment to change, lessen resistance, reduce anxiety, ensure clarity of objectives, share information/vision, challenge the status quo
SUMMARY
• For ETI to be ready for the future, and to be a competitive institution, it should recognize the URGENCY for CHANGE through OPEN COMMUNICATION among board members and initiate the desired plan for change.