Masterclass Managing Change - Day 2 Case Medupi and Case DHL

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IMPROVED STRATEGIC MANAGEMENT
CAPACITY PROJECT
Management of Change:
Learning from International Best
Practices
8.10.2013 - Ankara

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The Long Conversation :
Aligning the Key Organizational Elements

Workshop Day 1

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Agenda
Morning

Afternoon

•

Introducing Case 1: Constructing the
Medupi Power Station.

•

Introducing Case 2: DHL Ensuring people
Involvement

•

Refreshing the Org. Engineer Role &
Leader Characteristics.

•

Team working:

•

 All teams prepare both questions

Team working :

 Q1: Causes of the lack of
commitment. What do you
recommend to Bill?

 All teams prepare both questions.
 Q1: Map org. elements. Is there any
misalignment?
 Q2: Assess leadership style.

 3 teams --) Q1 presentation


•

 Q2: How can you raise the level of
importance?

Timeline:

•

Timeline:

 Reading: 20 min

 Reading: 20 min

 Team discussion: 45 min

 Team discussion: 45 min

 Presentation preparation: 15 min

 Presentation preparation: 15 min

 Each team presentation: 5 min

 Each team presentation: 5 min

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The Long Conversation:

0. Take a comprehensive
approach

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Strategy represents the purpose of the organization, in particular the
value it intends to create for key stakeholders
Structure describes how people & assets are clustered in
responsibility centers according to the nature of work, customers,
etc.
People and culture describe the skills and behaviors of people
(including leaders), as well as their values and beliefs.
Business processes refers to the activities to be performed and
coordinated in order to deliver value to stakeholders.
Technology comprises both tangible (systems and equipments) aas
well as intangible (knowledge) assets that support processes.

Management processes consist of the systems put in place to steer
the organization in the direction of its purpose.

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The Instituto de Astrofísica de
Canarias (IAC) is an internationalized
Spanish research centre. It has two
headquarters and two observatories
set in an environment of excellent
astronomical quality, both constituting
the European Northern Observatory
(ENO) .
The Instituto de Astrofísica is the main
headquarters and normal workplace of
the greater part of its staff. Here,
astrophysical research and technical
projects are developed. There is also a
postgraduate school. The IAC also
considers scientific outreach as one of
its principal aims.

Change Program:
Implementating
Management Systems
and IT to improve
process integration and
coordination within the
organization and with
external partners (other
European institutions in
Italy, Germany, France
and the UK.

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• Increase in information and
material processing capacity.
• Standardisation of work.
• Higher level of
interdependence and
integration among tasks.
• Knowledge sharing practices

MANAGEMENT
SYSTEMS &
TECHNOLOGY
• Project-oriented
approach
• Use of virtual platforms
• Use of ERP software.

• Team work culture
• Modification of
communication models
• Changes in recruiting and
training procedures or
needs
• Gains and losses in
status

PROCESSES

Mutual adjustment

STRUCTURE

PEOPLE

• Greater decentralization
and autonomy
• Greater inter-functional
integration
• Role definition and
incentives based on
horizontal models

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One of the goals early in the
transition should be to identify
potential misalignments:
•

Structure and strategy misalignment.

•

Skills and strategy misalignment.

•

Process and strategy misalignment.

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Leaders in government should
be prepared to take on the
role of organizational
engineers

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1. Improve performance
against Agency Mission

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Lack of Commitment
Complementary Information

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DPDHL Figures
• DPDHL (Deutsche Post DHL)
• World’s leading mail and logistics group.
• Euros 46 billion in revenues in 2009
• Headquarters in Bonn, Germany.
• 220 countries

• 500,000 employees worldwide
• Top 10 largest employers in the World
• More than 1 million customer contacts per hour

• Move more than 1 billion shipments per year (5% global trade
volume)

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The logistics companies will have to face some challenges in order to keep the
competitiveness in the industry:
1.

Keep the processes and cost structures lean and flexible.

2.

The economy will not be able to grow again in an environment where government is
hostile or indifferent to international trade. The threat of domestic protectionism will hit
the economy recovery by reducing the volumes traded in the world.

3.

The Asia’s role in global logistics will increase significantly to account for almost half of
the worldwide market by 2008, with 46% of volumes traded. Logistics providers have
to build capacity in order to catch up with the increasing importance of Asia.

4.

More and more customers are demanding that their transportation and logistics needs
be met in an environmentally responsible manner.

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Has First Choice been a
successful initiative for
process improvement?

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Critical Success Factors
• CEO Support
• Corporate alignment
• Long-term perspective

• Employee engagement
• Methodology
• Clear roles and supporting organization
• …..

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Lean-Six Sigma Roles
Sponsor - Business Director
 Agrees country improvement

program & areas
 Reviews country progress

Process Owner- Site Manager

Senior Advisor

Senior Management - Sponsor

 Supports Management in

 Selects and supports the program

definition of improvement areas
and definition of program

 Aligns initiative objectives with

Management team

 Coaches PI Advisor, Process

 Conducts Gate reviews
 Ensures sustainability of results

Process Owner

Senior Advisor
(black belt)

 Project management of the

 Works with Senior Advisor on
 Works with the team through the

DMAIC phases and tools

 Ensures adherence to

methodology

PI Advisor / Initiative Champion
selection and application of tools

Owner, Project Leader and team
on application of methodology

program
PI Advisor
Initiative Champion

 Supports the implementation of

improvements
Team
 Works during the complete
program to generate, test and
implement solutions for
improvement

Operations Team members

Experts

Experts
 Provides expert knowledge to
initiative team if required

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Building Organizational Capabilities

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Process Improvement Journey

IMPROVEMENT

PERFORMANCE CONTROL:
Variability Reduction

FORMALIZATION

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PI Capability
INNOVATION

MAINTENANCE

(Strategic Alignment & Monitoring)

IMPROVEMENT
PERFORMANCE CONTROL:
Variability Reduction

FORMALIZATION

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Tools and
techniques for
project
management

+
Team working
and change
management
skills

+
Project office as
the support
infrastructure for
strategic
management

Enablers for
strategy
success

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Change Formula

Change X Acceptance = E

E = Effectiveness

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Final Thoughts

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Oswaldo Lorenzo
Professor of Management
Deusto Business School, Spain
Blog: www.longconversation.com
@Lorenzooswaldo

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