Operational Change Management

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1 Operational Change Management Gina Langel Manager Continuous Improvement Cindy Sketch Change Management Manager

2 What is Change Management? The process that guides how we prepare, equip, and support individuals to understand, engage in, and successfully adopt any changes needed to consistently deliver on OPPD s mission, vision, and core values.

3 Data Supports the Connection

4 If you talk to a man in a language he understands, that goes to his head. If you talk to him in his language, that goes to his heart. Nelson Mandela 4

5 The States of Organizational Change Current State Transition State Future State How things are done today How to move from current to future How things will be done tomorrow

6 The Reality of Change Each impacted employee has his or her own journey to the future state Individuals Organization C T F C T F C T F Future State C T C T F C T F Documented and Managed Processes New Operating Model Specialists in the Call Center Supplier Website Integrated into Supply Chain Merged Organization

7 The Stages of Transition The New Beginning Productively executing the new Commitment Drive accountability Neutral Zone Figuring out the unknown Confusion Navigating through obstacles How I do my job today An Ending Letting go of the known Sense of Loss(es) Need for positive closure How I m supposed to do my job when the change is launched 7

8 Avoiding the Marathon Effect 8

9 Consequences of Not Managing People Side of Change

10 Comparing Change Mgmt. & Project Mgmt.

11 Continuous Improvement

12 Major Operational Changes from Current State SPP started the Integrated Marketplace on March 1, 2014 Addition of 413 MW of wind from This caused a major change in the way OPPD ran its base load plants Units that were normally not cycled much began to cycle up and down The market even called for them to go into reserve shutdown

13 Transitional State Project Management Anticipated changes on how the units would run Completed capability tests on the units such as: Minimum Load Maximum Load Ramp Rates Adherence to SPP rules and guidelines Employees were technically ready for the changes

14 Transitional State Missing Link Change Management Although employees were ready from a technical aspect, something was missing. Surveys were completed during Lean Fossil and it became clear that change management needed to be addressed. Here is what we found.

15 Survey Results What we heard Mindset today in interviews Future mindset Proposed intervention Input oriented A good job is putting in a lot of effort Good work is completing any task well We come to work every day to put in our best effort. I do my best at whatever I m told. There are no specific targets, how should they know what good is? I don t have a direction on what I m supposed to work for, so I just try hard. Results oriented A good job is achieving the target Good work is completing the most important tasks well Lean leadership and coaching skills Define what success looks like for each level Incorporate metrics into feedback Publicly track key metrics Risk averse Short term stability over long term solutions Micromanagement We know how to fix it for good, but it would mean some risk, so they tell us do it the usual way. A cost-benefit analysis they show the money s worth it. People do not trust us to solve it ourselves. Someone tells me what to do scheduling is frustrating because I get one order at a time. A lot of wasted time I want to be involved and have a say in what I do. Continuous improvement Take reasonable risks to improve plant performance Cost-benefit analysis for expensive projects Trusted autonomy in employees to execute independently Create no-blame culture Work with managers to set up boundaries for independent problemsolving. Create step-up opportunities for frontline to take the lead. Source: Interviews, team analysis

16 Influence model provides framework for mindset interventions

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18 Who is Involved in Managing Change Senior Leaders Managers and Supervisors Change Management Resource / Team Effective change management requires involvement and action by many in the organization Project Team Employees

19 Conclusion Change management focuses on the people side of organizational change Change management involves both an individual and an organizational perspective Change management requires action and involvement by leaders and managers throughout the organization Change management and project management are both tools that support project benefit realization project management is the technical side and change management is the people side Change management is most effective when it is launched at the beginning of a project and integrated into the project activities