Managing Change/ Organizational Development. Annual Planning Workshop January 30, 2012

Transcription

1 Managing Change/ Organizational Development Annual Planning Workshop January 30,

2 Change is no longer a force in the environment..it IS the environment. Max Ways, Fortune Magazine Technology Global Data 2

3 Agenda Introduction Challenges Managing Change Elements Pre Planning for Change PUB Exercise Next Steps 3

4 INITIATIVES FOR NEXT 1-3 YEARS (Incremental to existing work) Rate Increase - no surprises- gradual when needed 10-year pro-forma: ensure financial forecasts are provided Rate design to meet policy goals Update RPS Policy current policy is 40% renewables including large hydro SAFETY Compliance Replace Morgan Stanley contract expires in 2014 and is 15% of existing supply Implement Rate Increase PUB conceptual approval of <5%/year for 2011, 12, 13 and 14 Update cost of service and study new rates RFP for Rate Structures for future and cost of service update Reliability is critical Alameda Point impacts Asset management Get Audit Ready NERC/WECC 2012 Audit Compliance Plan by CY11 Enhance outage restoration effectiveness Enhance technology options and procedures Continue focus on 5-year O&M cycle Asset replacement Technology be cautious while moving ahead Energy Information is broad umbrella Take small steps and be second mover When opportunities arise to replace assets, review new technology Modernize delivery system IT Strategic Plan Roadmap for Advanced Technology Electric Vehicles Get Ready Plan and Implement Business Case for Smart Grid What makes sense for Alameda? Value to City Economic development and business retention Additional value to City Prepare for new block load LBNL possibility Other large customer load PUB-City-Community Initiatives Support PUB communication with Council Cost-saving opportunities and demonstration projects with City Support AUSD EE efforts Workforce take steps now Succession planning Right skills to replace and address future needs Compensation and skills training Energy Efficiency redo Re-do from ground up Organization Development Learning for Board and Employees Employee Recognition Workforce skills and succession plan Change Management communication and preparation EE Strategic Work Plan Implement work plan Increase resources Develop strategic plan Strengthening the Foundation Mapping a Blueprint for the Future Enhance service delivery infrastructure improve warehouse storage lower building carbon footprint Update all reports (internal and external) Improve effectiveness and insight Update policies and procedures 4

5 Influences Smarter Grid: new equipment for better control and communication New clean energy technologies Higher skills to operate a more complex system Aging workforce 1. Technology 2. Workforce New rates reflecting enhanced communication & control Higher quality requirements 4. Customer Experience 3. Regulation Clean energy regulations System reliability & security regulations Pressure on local control 5

6 Change Management Components Individual Understanding how one person makes a change successfully Organizational Understanding the tools to help individuals make changes successfully 6

7 Dimensions of Successful Change Leadership Mission & Strategy Culture People/ Teams Tasks/ Systems Structure, Processes & Systems Better Performance Behavior Measures & Incentives Source: Booz Allen Hamilton Change Management Strategy/Operating Model 7

8 Challenges How to construct an environment in which people in conflict can effectively explore new ideas towards a better future. 8

9 Ladder of Inference Model Take actions based on beliefs Adopt beliefs about the world Draw Conclusions Assumptions based on the meanings added Select data from what observed The Reflective Loop (our beliefs affect what data we select next time) Observable data and experiences Peter Senge, 5 th Discipline 9

10 Four Common Mistakes in Managing Change 10

11 Breaking Down the Emotional Impacts What is originally desired by leadership Reality of what employees are confronted with Outcomes IF human side is not addressed Productivity Increases New service concept Process Redesign New org. structures, cross functional collaboration Cost effectiveness Change Management addresses the emotional impact of these issues Fear of job losses Potential loss of responsibility & independence Change of responsibility & decision authority New expectations Loss of status Requirements for additional skills/expertise New & unknown tasks Source: Booze Allen Hamilton Resistance in teams or line organization toward implementation Slow and/or incomplete implementation Lack of decision taking and/or frequent revisions of decisions Quality problems Reduced productivity Loss of high performers Insecurity and increased risk avoidance Negative word of mouth 11

12 Prosci Adkar Model Best Practice Awareness of the need for change Desire to participate and support the change Knowledge on how to change Ability to implement required skills and behavior Reinforcement to sustain change 12

13 Change Management Elements COMMUNICATION COACHING TRAINING ASSESSMENT 13

14 Strategy for Success Change management is a task in itself and requires leadership Communication, planning, coaching, defined expectations, evaluation Identification of stakeholders and needs Include change management principles in project work plans Ongoing assessment and evaluation 14

15 Change Management Roadmap Leadership Alignment Stakeholder Enrollment Workforce Transition & Organizational Redesign Communication Clear management commitment, from senior leaders to front line supervisors, to the change and clear messaging on change initiatives. Successful change programs know the stakeholder impact level and identify the risks and mitigation plans, to drive communication, training and workforce transition. Moves employees and the organization to the future state with new organizational structures and roles defined. Broadly communicated change imperative what s changing, why, and the what s in it for me by crafting key messages with the appropriate delivery and timing. Education/Training Training the development requirements for employees to gain new knowledge and skills needed to succeed in the changed environment. Benefit Realization The organization must see a measured performance improvement against current state operations. 15

16 Change Management Process New Business Process Leading change Initiating Change Create business relevance Define purpose Create a shared need Assessing Progress Mobilizing Commitment (Manage the human element) Design the future state Build investment Transitioning (Create the conditions within which the change can occur) Sustain the change Build systems and structures Make Change Last Process not an event Monitor results& learning Become a way of doing business. 16

17 Change Management Process Define Change Management Strategy Develop sponsorship Prepare Change Management Team Develop a Change Management plan 17

18 Change Management/ Organizational Development Needs Flexibility Resources (financial and staffing) Time to ensure sustainable change Defined expectations (organizational and individual level) Defined principles/guidelines 18

19 PUB SUPPORT City Budget Workforce Partnership Involvement Resources Training Workforce Development Training 19

20 PUB Input Exercise Define expectations/guidelines/principles at the organization and individual level to assist staff in development of strategy and plan. 20

21 Next Steps Develop a Change Management Plan Incorporate PUB input Involve workforce Communicate, Communicate, Communicate 21