GE CHANGE MANAGEMENT(CAP)

Change Acceleration Process (CAP)

The Key to ChangeEffective

Growth:IB’s, CECOR, Lean, Customer Centric, Execution

Work-Out™ / Town Meetings:Empowerment, action – Expert-Driven Decision-Making, Action Work-Outs™, Customized Work-Outs™

Productivity / Best Practices:Benchmarking External Organizations, Sharing Best Practices

Process Improvement:Process-mapping, re-engineering, Bullet Train Approach

Change Acceleration Process (CAP):Increase success and accelerate change

Key Strategic Initiatives:QMI*, NPI*, OTR*, SP*, Productivity, Globalization

Make Customers Winners:GE Tool-Kit

Six Sigma Quality:Productivity, Span, Data-Driven Decision-Making

Digitization:Sell, Buy, Make using Technological Tools

ACFC (At the Customer For the Customer):Faster, Better, Closer to the Customer

Imagination at Work:Imagine, Solve, Build, Lead

* New Product Introduction, Quick Market Intelligence, Order to Remittance, Supplier Partnership

Change Culture:A Continuing Journey•Using Change as a Strategic and

Competitive Advantage•Optimizing Change

Effectiveness•Building a Culture that

Drives Change

Lean Six SigmaSpeed & Quality

Change Research

100% of all changes evaluated as “Successful” had a good technical

solution or approachOver 98% of all changes evaluated as

“Unsuccessful” also had a good technical solution or approach

What is the differentiating factor between success and failure?

…From Your Change ExperiencesElements of Successful Change:______________________________________________________________________________________________________________________________

Elements of Unsuccessful Change:______________________________________________________________________________________________________________________________

Effective Change Equation

Q x A = EQ = Qualitative/Technical Solution

A = Acceptance/Engagement

E = Overall Effectiveness

Facilitative Facilitative Leadership Leadership Facilitative Facilitative Leadership Leadership

Technical Strategy

Cultural, Organizational

StrategyStrategy

Cultural, Organizational

StrategyStrategy

Change initiativefocused on

customer needs(target)

The Challenge = Do It With Speed!The Challenge = Do It With Speed!

Lessons Learned: 2 Components to Any Change

CAP: The Basics

• Provides a ‘Pilot’s Checklist’ for change leadership

• A flexible non-linear model used throughout a change process

• Applies strategic thinking to the influencing of others

• Contains tools to help change teams identify ways to achieve behavioral change

The GE CAP Model

CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATEIMPROVED STATEIMPROVED STATE

Leading ChangeLeading Change

Monitoring ProgressMonitoring Progress

Mobilizing CommitmentMobilizing Commitment

Shaping a VisionShaping a Vision

Creating a Shared NeedCreating a Shared Need

Making Change LastMaking Change Last

Systems and StructuresSystems and Structures

Future State

CAP: A Model for ChangeLeading Change

Having a sponsor/champion and team members who demonstrate visible, active, public commitment and support of the change.

Creating A Shared Need

The reason to change, whether driven by threat or opportunity, is instilled within the organization and widely shared through data, demonstration or demand. The need for change must exceed its resistance.

Shaping A Vision

The desired outcome of change is clear, legitimate, widely understood and shared; the vision is shaped in behavioral terms.

Mobilizing Commitment

There is a strong commitment from constituents to invest in the change, make it work, and demand and receive management attention; Constituents agree to change their own actions and behaviors to support the change.

Making Change Last

Once change is started, it endures, and learnings are transferred throughout the organization. Change is integrated with other key initiatives; early wins are encouraged to build momentum for the change.

Monitoring Progress

Progress is real; benchmarks set and realized; indicators established to guarantee accountability.

Changing Systems And Structures

Making sure that the management practices (Staffing, Development, Rewards,Measures, Communication, Organizational Design and Information Technology Systems) are used to complement and reinforce change

Setting Up for Success

“Off to a Good Start”

Why is this Important?SU

• A "good start" is essential to long-term success• Even straightforward projects must be "scoped" to

ensure attention is focused on essential elements & deliverables

• Effective teams are formed through deliberate actions, starting with clarification of roles, responsibilities and expectations

Time Invested up-front Pays Rich Rewards ‘Down-Stream’

Go Slow To Go Fast!

What is the Outcome?SU

• Clear roles, responsibilities and expectations for all parties (Sponsor, Team Leader, Team Members, CAP Coach, Others)

• A well-defined scope of work for the project that all parties understand and are committed to achieving

• An effective project execution structure and process

Setting Up for Success: ToolsSU

Project DefinitionSCOPE:• Timing• Organizations Involved• Processes Involved• Levels Involved

GOALS:• Results / Target for Project• Measurements of Success

ROLES:• What is Their Role?• Who Should be on Project

Project Definition ToolsBounding Tools:• GRPI• Includes / Excludes• Process Focus (SIPOC / COPIS)• In the Frame / Out of the

Alignment Test:• 15 words• Critical Success Factors

Significance Test:• On the Screen

In the Frame / Out of the Frame Flip Charts

Draw a large square "picture frame" on a flip chart (or use tape on a wall) and use this metaphor to help the team identify what falls inside the picture of their project and what falls out. This may be in terms of type and extent of end results, people impacted, time frame, product lines, sites, etc.

15-Word Flip Chart

Each team member is given a flip chart page and marker. They must write, in 15 words or less, the project definition. Post all and check for agreement. Double check all fuzzy words by circling them and asking "What does it look like?" or "How will we know it when we have it?".

PROJECT DEFINITION

Project Scoping ToolsSU

In & Out of the Frame Used For:Creating a visual picture of the elements in “Scope” (frame) and out of “Scope” for the project

15-Word Flip ChartUsed For:– Developing a Project – Definition Statement

Leading Change

CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATE IMPROVED STATEIMPROVED STATE

Why is this important?LC

• Strong, committed leadership is critical to accelerating change at all levels.

• Leadership impacts all other change elements.

• Change Leadership is not a part-time activity.

What is the outcome? LC

• Visible, active and public commitment/support.• Willingness to take personal initiative and challenge

the status quo.• High levels of attention to the project through the

time, passion and focus given to the project by leaders at all levels.

• Leaders actively modeling CAP concepts, language and tools.

Successful change initiatives require strong,

committed Leadership throughout the entire project life-cycle

ChangeChange

SkillsSkills

FOCUS / AGENDA•Enroll Others•Facilitative Leadership Skills•Win/Win

Time x Focus/ Agenda x Energy/ Passion = Attention

Leading Change ModelLC

ENERGY / PASSION•Personal involvement•Is "known for . . . "

TIME•Planning•Behavior: “Walk the talk”

1.Identify 4-5 things you feelvery strongly about (at home or work).

2.Check your calendar for the last 2-3 months to see what % of your time is spent on those things you say are important to you

1.Identify 4-5 things you feelvery strongly about (at home or work).

2.Check your calendar for the last 2-3 months to see what % of your time is spent on those things you say are important to you

Change Acceleration Process Self-Assessment

1 2 3 4

1 2 3 4 5

Leads change

Creates a shared need

Shapes a vision

Mobilizes commitment

Makes change last

Monitors progress

Changes systems & structures

Leadership Assessment Tools:

LCCalendar Test (Time Audit) Used For: Stimulating thinking and team discussion about the degree of attention & commitment change leaders are modeling.

CAP Self-AssessmentUsed For:Assessing current capacity to show specific competencies in each of the seven core CAP processes.

Creating a Shared Need

• Forces any resistance or apathy to be addressed head-on.

• Validates why the project is important and critical to do.

• Builds the momentum needed to get the change initiative communicated and launched.

Why is this Important?CSN

What is the Outcome?CSN

• Awareness of the dissatisfaction with the current state.

• A shared recognition, by both the team and key stakeholders, of the need and logic for change.

• The ability to frame and communicate the need for change as a combination of threats and opportunities.

Creating a Shared Need produces the ‘urgency’ to build momentum

for acceptance of the change initiative

Short Term

LongTerm

Threat If we don’t make this change

Opportunity if we do make this change

Types of Proof Examples

Data/ Facts: Numbers / trends / statistics Graphs / Financials Benchmark / competitive data

Demonstrate: Finding Examples Best Practices Visiting other Organizations /

Panels/ Pilots/ Testimonials

Demand: Dynamic Leadership (Setting

High Standards/ Accountability) Customers / Suppliers /

Competition (Int. / Ext.)

Creating a Shared Need Tools:

CSNThreat / Opportunity MatrixUsed For:Framing the need for change as a combination of threat & opportunity over the short and long term

Three D’s Matrix Used For:– Building your case for

change with evidence using data, demonstration & demand

– Answers the question: “Can I prove it?”

Shaping a Vision

Why is this important?SV

•Visions paint a picture that appeals to the “head and heart” and answers the question, “Where are we heading?”

•A clear statement about the future situation helps gain genuine commitment

•An understandable vision helps establish the milestones to monitor progress and change systems & structures

What is the outcome?SV

• A clear statement about the outcomes of the change

• A view of the future state that is:– Customer focused– Not just one person’s dream– Challenging– Evolving, not static– Behavioral and actionable– Easy to understand

Visions provide Direction and Motivation for Change

1. Individually jot down key phrases that capture the essence of why the team exists.

2. Collect and collate into vision statement.

3. "Test" on customers, vendors, employees.

4. Modify as necessary.

1. Individually jot down key phrases that capture the essence of why the team exists.

2. Collect and collate into vision statement.

3. "Test" on customers, vendors, employees.

4. Modify as necessary.

1. Imagine a point in the future when the project has been very successful.

2. Find words to describe what you would see, hear, feel as you observe key stakeholders functioning in the new, changed state.

3. Collate, debate, reach consensus on your vision statement, "test" on others & modify

1. Imagine a point in the future when the project has been very successful.

2. Find words to describe what you would see, hear, feel as you observe key stakeholders functioning in the new, changed state.

3. Collate, debate, reach consensus on your vision statement, "test" on others & modifyShared Visions come from collective efforts

that reflect individual perspectives

Shaping a Vision Tools:SV

Key Phrases ExerciseUsed For:Involving all team members and capturing individual perspectives

Backward Imaging ExerciseUsed For:Helping team members think about the future they are working to create

Vision _________________________Behaviors

More of Less of• •• •• •• •• •

Vision _________________________Behaviors

More of Less of• •• •• •• •• •

Focusing Vision on Behaviors:

SVBull's Eye Chart ExerciseUsed For:Developing a Vision that is stated in actionable, behavioral terms

More of/Less of ExerciseUsed For:Clarifying what the team expects from the new state in behavioral terms

VisionVision

MindsetMindset

BehaviorBehavior

Making a VisionActionable

Stating the Vision in actionable, behavioral terms helps the team gain commitment and identify sources of resistance

Elevator Speech Worksheet:SV

1. A “reality check” to ensure that team members see the project the same way.

2. To ensure that the team members spread a unified consistent message. "Here's what our project is about…” (Charter, Project Definition Tools)"Here's why it's important to do…” (Shared Need Tools)

"Here's what success will look like …”(Shaping a Vision Tools +Milestones)

"Here's what we need from you…”(Responsibilities, Commitments, Project Plans)

"Here's what you can count on from me …”(Commitments, Action, Follow-up)

(Output may change by stakeholder – one size does not fit all)

Mobilizing Commitment

Why is this Important?MC

• Understanding the key stakeholders whose support and commitment will “make or break” the change effort.

• Key difference between success and failure.

What is the Outcome?MC

• Coalition of committed stakeholders.• Identification of potential resistance and a

strategy to overcome it.

Mobilizing the Commitment of Key Stakeholders is Essential

to the Success of the Change

Sources ofResistance

Definition Causesof Resistance

Examples Rating

Technical

Political

Cultural

Names StronglyAgainst

ModeratelyAgainst

Neutral ModeratelySupportive

StronglySupportive

Stakeholder Analysis for Change

People resist or support change for a variety of reasons.

Mobilizing Commitment Tools:

MCStakeholder Analysis For ChangeUsed For:Identifying stakeholders and their current level of commitment to the change initiative

Technical-Political-Cultural AnalysisUsed For:Identifying, labeling and understanding sources of resistance

More of Less ofMore of Less of

Influencing

Strategy

Influencing

Strategy

Threat vs. Opp.Threat vs. Opp.

3D Matrix3D Matrix

TPC AnalysisTPC Analysis

StakeholderAnalysis

StakeholderAnalysis-- - +/- + ++ VisioningVisioning

VisionVision

MindsetMindset

BehaviorBehavior

Elevator SpeechElevator Speech

CAP Toolkit:MC

Systems and Structures

Why is this Important?CSS

• Successful change often involves significant realignment and leveraging of the way we organize, communicate, measure, train, develop, reward, compensate, promote and other systems within the organization.

• Desired new behaviors (More of …Less of …) are reinforced through consistent attention to organizational Systems & Structures.

What is the Outcome? CSS

• Identification and utilization of key Systems & Structures that must be addressed to sustain project success.

• Utilization of Systems & Structures Best Practices.

• Alignment of Systems & Structures with desired behaviors.

Identifying and re-aligning key Systems & Structures are

necessary for successful, long-lasting change

Factors to Consider:CSS

Staffing (Acquiring/placing talent)

Development (Building competence/capability)

Measures (Tracking performance)

Rewards (Recognizing/rewarding desired behavior)

Communication

(Using information to build and sustain momentum)

Organization Design

(Organizing to support the change initiative)

IT Systems (Utilizing IT technology to enable changes to be successful and sustained)

Resource Allocation

(Adjusting or planning for financial and other resources to support the change project)

ifficu

• Which Systems & Structures Most Impact the New Behaviors?

• Identify the Key Stakeholder(s) of that S&S.

• What’s Missing?

• Identify Characteristics of New Systems & Structures.

• Determine Systems & Structures to Remove or Build.

• Identify Who to Engage and Develop Influence Strategy.

2. Current Systems & Structures Assessment2. Current Systems &

Structures Assessment

3. Creating futureSystems & Structures

• What about the current S&S is Helping or Hindering us from achieving the desired state behaviors?

• Develop Influence Strategy/ Action plan.

1. Identify Key Systems & Structures

Helping Hindering Actions

VisionVision

MindsetMindset

BehaviorBehavior

Three Step Alignment Process

Channel Announce theCAP

Project

Clarifythe

Vision

Begin toMobilize

Commitment

Begin toMonitorProgres

Changing Systems

& Structur

Written:• Newsletter• Bulletin Board• V.P. Memo• etc.

Spoken: One-on-many

• All employees meeting

• Weekly staff meeting

• Operating managers

meeting• Etc.

Spoken: One -on-one

Symbolic:• Offsite conference• Press conference• etc.

Communication Planning Matrix:

Used For:– Communication Strategy

(various Channels)

Indicate those that are suitable for:– Providing Information– Persuading– Empowering

Include:– Audience– Who – When – Where

Used For:– Communication Strategy

(various Channels)

Indicate those that are suitable for:– Providing Information– Persuading– Empowering

Include:– Audience– Who – When – Where

Making Change Last

Why is this Important?MCL

• We often spend most available time on the launch of an initiative rather than its institutionalization

• Every change initiative competes for time, resources and attention

• To ensure that the new behaviors will not revert back to the old habits

What is the Outcome?MCL

• Consistent, visible, tangible reinforcement of the change initiative

• Integration of new initiative becomes the way we work

• Changes to Systems and Structures enable the new behavior that supports the Vision

Launching a Change is just the beginning.

It must become the Way of Life

Monitoring Progress

Why is this Important ?MP

• An accurate measure of the CAP project provides focus, direction & momentum throughout the change process.

• Corrective action can only occur if you know you're off track.

• Monitoring Progress enhances your ability to reward key events and milestones.

What is the Outcome ? MP

• Clarity and agreement on what the “acceptance” strategy looks like in measurable & observable terms.

• Baseline data & milestone results of the change process tracked and widely communicated.

• Increasing momentum as people see progress and results being realized.

Measuring & tracking progress along the CAP elements

demands ongoing attention by the team

Effective Change Equation

GE CHANGE MANAGEMENT(CAP)

good technical

eading change

current systems

qualitativetechnical

team members

ha ng

systems amp

change leadership

Business

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