8. KOTTER’S
MODEL
The Big
Opportunity
1
CREATE
Sense of Urgency 2
BUILD
Guiding Coalition
7
SUSTAIN
Acceleration
6
GENERATE
Short Term Wins 5
ENABLE
Action by Removing
Barriers
4
ENLIST
Volunteer Army
3
FORM
Strategic Vision &
Initiatives
8
INSTITUTE
Change
9. CREATE A
SENSE OF
URGENCY
Less absenteeism and turnover
Fewer safety incidents
Fewer product defects
Higher productivity
Higher profitability
37%
48%
41%
21%
22%
Gallup Q12 Survey
Companies on the top quartile on engagement
11. CREATE VISION
“Where there is no vision,
the people perish…”
-Proverbs 29:18
“Vision and direction are 3-4x more important
than other leading factors in change management.”
Accenture, Debunking the Myths of Organizational Change Management
Critical Buy-In:
Executive Leadership
Partner Committees
Employees across all
levels
13. Project
ALIGN
Empower. Innovate. Align. Succeed.
EXPERIENCE VISION
...it’s another thing to experience a sunrise.
Corporate Banners
Newsletters
Email Tags
Catchphrase
Company “Chatter”
14. REMOVE BARRIERS
Clear the runway and tune the engine so that
employees can literally take off and soar,
elevating Chemco to greater levels of success and
efficiency.
HIERARCHICAL WALLS
CONTRIVED ACCOUNTABILITY
GLOBAL DISPARITY
IT SYSTEMS
17. What? I So what? I Now what?
REMOVE BARRIERS
CONTRIVED ACCOUNTABILITY
“It’s been a tremendous success, because it
turns out that they care one to another more
than they care for the people above them.”
- Clayton Christensen, Harvard Business School & Innovator’s Dilemma
19. SHORT-TERM WINS
1. Celebrate all innovations
2. Create STRETCH goals
3. Utilize accountability
“Cost-management and effectiveness continuously rise from a change initiative.”
- Accenture
20. SUSTAIN ACCELERATION
Leverage motivation from further short-term wins
Position individuals according to strengths and disposition
Eliminate individual inhibitors to growth and transformation
Continued attention from leaders and change champions will
override holdouts and drive permanency.
21. INSTITUTE CHANGE
“Engaging employees can be a long and tedious process, but do we understand the
difference that it can make to have employees that are a part of the 25% of HIGHLY
ENGAGED employees and 40% moderately engaged employees in the workforce?”
- Aon Hewitt, Outsourcing Consulting Services
You have your vision, your goals, and steps to action. What’s next?
Making this change concrete. Don’t let this be a once in a lifetime gadget
or foreign idea you put up with. Institutionalize this change as a part
of who ChemCo is.
22. BUSINESS
OUTCOMES
Rises in employee
engagement lead to
147% higher earnings
per share than your
competition
$30 million of early cost-savings
leading to a total savings of over
$120 million by October 2017
Successful onboarding for newly
acquired sites
Standardized, long-term, global
procedures and values
Safety, job security, and personal
development leading to lifestyle
benefits
23. CONCLUSION
Cost Savings of 1.15% at each worksite can save $120
million in a year.
Enabling employees with data and autonomy
to innovate will save hundreds of millions to come.
REMEMBER And HIRE
24. Context:
Over 25+ manufacturing sites globally
$13 billion annual revenue
Phase I: 9 sites, Phase II: 5 sites will close
$120 million goal of cost savings
Calculations:
Revenue per Worksite
● $13 billion / 26 worksites
● = $500 million per worksite
Required Savings per Worksite
● $120 million / 26 worksites
● = $4.61 million per worksite
Savings as a Percentage of Worksite Revenue
● $4.615 million / $500 million
● = .00923
● = 0.92% Savings per Worksite
Savings as a Percentage of Total Annual Revenue
● $120 million / $13 billion
● = .0923 = 0.92% needed cost savings
Higher Savings Percentage per Worksite Needed
● 21 x $500 million x 0.92%
● = $96,915,000
Required Savings per 21 Worksites
● $120 million / (21 x $500 million)
● = .0114
● = 1.14% Required Savings per Worksite
● 1.14% x $500 million
● = $5,714,285.71
Thus, $5.75 million needed in Annual Savings per
Worksite by October 2017 (also $480,000 per
month on a 12-month schedule).
Appendix I
25. Appendix II
Data Sources on Manufacturing:
http://www.mckinsey.com/business-functions/operations/o
ur-insights/how-big-data-can-improve-manufacturing
http://www.ingrammicroadvisor.com/data-center/4-big-data
-use-cases-in-the-manufacturing-industry
Unions
http://www.reuters.com/article/germany-wages-idUSL8N1
5H22R
Under Communicating Vision by Kotter
http://www.forbes.com/sites/johnkotter/2011/06/14/think-yo
ure-communicating-enough-think-again/#4c5aa3aa2855
Kotter’s Model
http://www.kotterinternational.com/the-8-step-process-for-leading-change
/
Guiding Coalition
https://rework.withgoogle.com/blog/five-keys-to-a-successful-google-tea
m/
Urgency
https://www.linkedin.com/pulse/gallup-q12-employee-engagement-eleme
nts-richard-riche
USC Consulting Group - Data Management in Chemical Manufacturing
http://www.usccg.com/operational-efficiency-chemical-manufacturing-sup
ply-chain/
