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Contents
Introduction
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Examples
“Change Management” – A booklet in The Industrial Society series on Managing
Best Practices including six case studies on the following organisations:
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Defence Aviation Repair Agency
Argos plc
Asda Stores
Rolls-Royce
Trifast plc
Vertex Data Science
Proctor & Gamble (recent article)
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The Ford Motor Company (recent article)
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Other Sources (including books and articles)
“Navigating Change – A Practitioners Guide for Delivering Change Successfully
within the Public Services.”
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“Change Here! Managing Change to Improve Local Services”
Audit Commission guide to managing change in local public services.
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“Fire Starters” - The findings from a survey of innovative companies.
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“Leading Change” - The steps to avoid common errors with transformation.
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“Why Good Companies Go Bad”
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“Best Practices in Managing Change Report”
The findings from a best practices study of more than 254 companies from 22
countries.
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“Creating Followers: Framing Change Initiatives to Maximise Employee
Participation”
A collection of three articles that consider the conditions for major organisational
change to occur.
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Introduction
There is a strong central drive to deliver more customer-focused public services in line
with the four principles for public service reform set out in “Reforming our Public
Services – Principles into Practice”1. Transforming public services means large scale
programmes of change.
Sources of information on examples illustrating successful implementation of strategic
change leading to higher levels of performance are included in this pack plus information
of a more general nature relating to change management. The focus is primarily on the
pre-requisites for successful change rather than on the process of implementing change.
For each element of information, where appropriate, the following details have been
included:
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internet or hard copy references;
summary;
extract/s;
best Practice Points; and
an outline of additional useful information contained in the reference.
A brief summary of the contents is listed overleaf.
Internet Links
We regularly re-fresh the reports in the Knowledge Bank and routinely check that the
Internet links mentioned actually work. However, despite our best efforts, links do
break as documents are moved or even deleted on host websites. In such cases, you
are advised to try to find the document or other reference by using the search facilities
on the Home Page of the host site in question. If you are unable to find what you are
looking for, please contact the PSBS Helpdesk. In any event, it would also be really
helpful if you could notify us when a link has failed so that we can re-instate it or amend
this document accordingly so as to avoid other members having the same problem.
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The Office of Public Services Reform, March 2002, web address: www.pm.gov.uk/opsr
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Source:
“Change Management”, Managing Best Practice No 90, The Industrial Society2,
December 2001, ISSN 1355-1515.
Internet or reference:
The Work Foundation’s best practice guides can be ordered online
(www.theworkfoundation.com) and by contacting 0870 165 6700.
Summary
This issue of Managing Best Practice looks at best practice in the area of change
management. It includes: the findings of a survey of 282 personnel and HR specialists
undertaken in August 2001.
Topics surveyed included:
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Reasons for change;
External factors driving change;
Clarity of accountabilities for change;
Processes used to support change;
Use of external consultants for change;
Techniques used in the change process;
Barriers to implementing change;
Training to support change;
Leadership of major change programmes;
Monitoring success;
Evaluation methods;
‘Bottom-line’ benefits;
Links between corporate change programmes and corporate values.
The document also includes the following case studies following a programme of
interviews:
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Argos
Asda Stores
Defence Aviation Repair Agency (DARA)
Rolls-Royce (Energy Business)
Trifast
Vertex Data Science
Additional Information:
There is a list of useful books and articles at the back of the document on the subject of
the process of implementing organisational change with particular emphasis on
communication and motivation.
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Now the Work Foundation.
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Example:
“Motivating People: Richard Nicolosi at Procter & Gamble”.
Internet/Source:
“Breakthrough Leadership”, The Best of Harvard Business Review on Leadership”,
Special Issue, December 2001, page 94.
Summary
This short article describes the steps Richard Nicolosi took at Procter & Gamble to turn
the paper production area around.
When he arrived, “he found a heavily bureaucratic and centralised organisation that was
overly preoccupied with internal functional goals and projects. Almost all information
about customers came through highly quantitative market research. The technical
people were rewarded for cost savings, the commercial people focused on volume and
share, and the two groups were nearly at war with each other.” He said that he had to
make it very clear that the rules of the game had changed.
He introduced initiatives that included:
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Greater emphasis on teamwork and multiple leadership roles;
Pushing responsibility down to teams that were encouraged to innovate;
Introducing a new organisational structure; and
Encouraging an entrepreneurial environment.
The change programme brought benefits such as a 40% increase in revenues over a
four-year period and an increase of 68% in profits.
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Example:
“Leadership DNA: The Ford Motor Story”. (Ford Motor Company’s leadership training
programme).
Internet/Source:
Training and Development, March 2001 published by the American Society for Training &
Development.
The article can be downloaded at http://www.findarticles.com
Summary
This article outlines the programme introduced in the Ford Motor Company to create
transformational leaders to accelerate transformation through extensive culture change.
The Leadership Development Centre at Ford provides four core and five strategic change
initiatives. Significant benefits have been delivered including:
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Increased motivation and commitment;
Greater efficiencies in work processes;
Reduced cycle times;
Lower costs;
Enhanced customer focus;
More active engagement by business leaders in home and community life.
They have also contributed to financial and organisational benefits as each team project
has to contribute to customer satisfaction, reduced costs or increased revenue.
Extracts:
“The lessons emerging from this program are accelerating transformation as participants
teach others throughout the company about how they’ve changed the way work is
done.”
“People who graduate from the Leadership Development Center gain improved customer
focus, renewed commitment to business results, and a greater understanding of their
role in generating shareholder value. They become transformational leaders – read,
willing and able to lead Ford Motor Company to meet future challenges”.
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Source:
“Navigating Change – A Practitioners Guide for Delivering Change Successfully within the
Public Services”, CMPS, March 2002.
Internet/reference:
Civil Service College Directorate
Sunningdale Park,
Larch Avenue,
SL5 0QE
Tel: 0134 463 4000
http://www.cmps.gov.uk
Summary
This is a guide to help those in the public services who takes on responsibility for
delivering a programme of change. It has been developed by change agents themselves
and provides guidance on designing, planning and delivering change.
It includes the chapters on the following aspects:
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A framework for managing significant change;
Themes critical for success – leadership, culture, strategy integration, and
communication;
Establishing a case for change through gap analysis and other techniques;
Developing change plans; and
Evaluating Progress.
Each chapter includes information on the experiences of the following organisations:
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The
The
The
The
Court Service Change Programme;
Department for Education and Skills;
Home Office; and
Civil Service College Directorate.
Best Practice
A summary of key learning points is at Chapter 7.
Additional Information:
The guide also includes additional sources of useful information as well as contact details
for the Change Management Division in the Cabinet Office which runs the Change Agents
Network:
Change Management Division,
Cabinet Office,
Room 2.6,
Admiralty Arch,
The Mall,
London,
SW1A 2WH
csreform@cabinet-office.x.gsi.gov.uk
020 7276 or 020 7276 1548
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Source:
“Change Here! Managing Change to Improve Local Services”, Audit Commission, July
2001.
Internet/reference:
http://www.audit-commission.gov.uk/reports/MANAGEMENTPAPER.asp?CategoryID=&ProdID=98088E3C-BC44-4dd8-8DEF-1416C99FE430
Management paper can be downloaded in PDF or purchased in hard copy (£25.00) from
the Audit Commission.
It is also possible to access a read only version of the document via a ‘web-based tool’
at:
www.audit-commission.gov.uk/changehere
This version provides hyperlinks between the text and relevant case studies.
Summary
This guide produced by the Audit Commission aims to help those introducing change in
public services by drawing on insights of successful leaders of change in a range of
public sector organisations.
It covers aspects such as:
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leadership;
local ownership;
focusing on users;
managing change programmes; and
building capacity for continuous improvement.
Best Practice
The guide includes 21 case studies of organisations exemplifying the successful
introduction of particular aspects of change management.
Additional Information:
The guide also includes:
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additional sources of useful information on aspects associated with change
management; and
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information on topics relevant to public sector reform such as project
management, balanced scorecard, developing people, incentive schemes,
modernising infrastructure (including partnerships).
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Source:
Book: “Fire Starters”, Stuart Crainer and Des Dearlove, 2002.
Internet/reference:
Reviewed in Knowledge Management Review, Volume 4 Issue 6, Jan/Feb 2002.
Summary
This gives the findings from a survey of innovative companies and concludes what
determines competitive advantage is less to do with process and more to do with
“attitude towards innovation and change”. Innovation is associated with factors such as:
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Having staff who are comfortable with change;
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Having the ability to generate a constant flow of ideas; and
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Being able to recruit new talent.
In contrast, “many companies unwittingly have a culture that discourages innovation and
snuffs out new thinking”.
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Source:
Book: “Leading Change” by John P. Kotter, Harvard Business School Press, 1996.
Internet/reference:
Reviewed in “Breakthrough Leadership”, Harvard Business School, The Best of HBR,
Page 97.
Summary
This describes change initiatives and identifies eight common errors associated with
transformation and provides a methodology for overcoming them.
The eight steps in the process include:
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Establishing a greater sense of urgency;
Creating the guiding coalition;
Developing a vision and strategy;
Communicating the change vision;
Empowering others to act;
Creating short-term wins;
Consolidating gains and producing more change; and
Institutionalising new approaches for the future.
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Source:
“Why Good Companies Go Bad”, Donald Sull.
Internet/Reference:
Harvard Business Review Article, January 1999
Review of the article is at:
http://www.hbsp.harvard.edu/hbsp/prod_detail.asp?99410
Summary
This article considers why when successful companies face big changes they often fail to
respond effectively.
The formula that led to success can lead to failure when changes occur in companies’
markets. This is because they can get stuck in past modes of thinking. In particular,
four things can happen:
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Strategic frames become binders;
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Processes harden into routines;
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Relationships become shackles; and
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Values become dogmas.
Managers need to ask themselves what hinders them in the light of strategic frames;
processes; relationships and values.
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Source:
“Best Practices in Managing Change Report” undertaken by ProSci
Internet/Reference:
Executive Summary, contents and the list of participants is at:
http://www.prosci.com/chg9.htm
Summary
The report outlines the findings of ProSci’s Change Management Best Practices study of
more than 254 organisations from 22 countries. More than 50% of participants
implemented significant change; more than 90% implemented changes across
departmental boundaries; and almost 50% expected that the change would impact their
entire businesses.
Participants were asked questions on the following aspects:
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Success factors;
Role of top management;
Team structure;
Methodology;
Communications;
Training Plans;
Recognition and rewards; and
Use of consultants.
The report includes outlines of:
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Activities that good executive sponsors do to support major changes;
Responsibilities of top managers for each project phase;
Biggest management mistakes;
Successful change methodologies;
The most successful methods for managing employee resistance and rewarding
employee behaviour.
Additional information:
The report also provides guidance on communication tools that work best and developing
effective training plans.
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Source:
“Creating Followers: Framing Change Initiatives to Maximise Employee Participation”,
Harvard Business Review Collection of three articles:
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“Changing the Way We Change by Richard Pascale, Mark Millemann, and Linda
Gioja;
“Why Do Employees Resist Change?” by Paul Strebel;
“Reaching and Changing Frontline Employees” by T.J. Larkin and Sandar Larkin.
Internet/Reference:
Harvard Business Review OnPoint collection, 2nd January 2000.
Reviewed at:
http://www.hbsp.harvard.edu/hbsp/prod_detail.asp?4029
Summary
The OnPoint collection examines the conditions that are needed for major organisational
change to occur and describes how to motivate staff to mobilize for change.
The collection was developed to help managers cope with the challenges posed by major
change initiatives.
It acknowledges that:
“when transformational change efforts fail, typically, the problem isn’t with the change
programs themselves. Rather, it’s that they’re not envisioned or communicated in a way
that builds followership among middle managers and frontline employees.”
Note:
To help users locate specific documents, the PSBS may have included actual pages in the
internet reference. However, over time, the host website may move their documents and
break the link. In such cases, users are advised to try to find the document for themselves
by using the search facility on the host site in questions. This will usually be accessible via
the Home Page. It would also be helpful if users notify the PSBS when such links fail so that
we can try to re-instate them.
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