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1 Sourcing IS Change Management April 13, 2016 Anne M. Kohler Founding Partner, EVP & COO 1 © 2016 TheUnauthorized Duplication, Storage or Transmission Strictly Prohibited. Anne is one of the Founding Partners & COO of The Mpower Group and responsible for all client delivery and operations. Anne has been leading consulting and financial management organizations for over 25 years, and has extensive expertise in strategic sourcing, change management, competency based talent management, organizational transformation, supply chain management, ERP, and process reengineering. Before founding TMG, Anne was the SVP of Strategic Sourcing for Bank One. In this role, Anne created this organization from scratch and led a team of over 100 professionals, internal and external staff, in developing and executing supply strategies for all of the bank's externally purchased goods and services. Over four years, this organization managed over $3 billion in annual spend and contributed in excess of $1.3 billion in savings. Before joining Bank One, Anne held CFO and Controller positions for other financial services organizations and started her career at Ernst & Whinney as an audit manager. Anne has been named a “Provider Pro to Know” by Supply & Demand Chain Magazine every year since 2007 and a 2013 Top Female Supply Chain Executive Anne is a CPA, CGMA and has an MBA in Finance from The University of Chicago Anne M. Kohler - Bio About TMG 2 © 2016 TheMpower Group, Inc. All Rights Reserved. Unauthorized Duplication, Storage or Transmission Strictly Prohibited. The Mpower Group is in the business of Mpowering our clients to accelerate Exceptional Business Outcomes by unleashing the full potential of their Supply Chain organizations. We are a global consulting firm dedicated to serving the needs of Fortune 500 Supply Chain organizations. We help our clients by: Accelerating Strategic Transformation: Rapidly move client organizations along The Mpower Group’s Supply Chain Maturity Model to peak performance levels. Competency Based Talent Management: Advance the competencies of our clients’ Supply Chain professionals to World-Class performance levels. Maximizing Deal Value: Help clients realize the full value from large and/or complex deals by focusing on A) “Customer” Value Drivers before and during negotiations, and B) an adoptable, sustainable implementation once the deal has been reached. About The Mpower Group The Mpower Group is a World Class Strategic Sourcing & Supply Chain consultancy that delivers big results with a boutique feel. We are Woman and Minority owned. About TMG 3

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Page 1: Sourcing IS Change Management · 2016-04-25 · expertise in strategic sourcing, change management, competency based talent ... Improves efficiency of sourcing function; leverages

1

© 2016 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited.

Sourcing IS Change ManagementApril 13, 2016

Anne M. KohlerFounding Partner, EVP & COO

1

© 2016 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited.

Anne is one of the Founding Partners & COO of The Mpower Group and responsiblefor all client delivery and operations. Anne has been leading consulting andfinancial management organizations for over 25 years, and has extensiveexpertise in strategic sourcing, change management, competency based talentmanagement, organizational transformation, supply chain management, ERP, andprocess reengineering.

Before founding TMG, Anne was the SVP of Strategic Sourcing for Bank One. In thisrole, Anne created this organization from scratch and led a team of over 100professionals, internal and external staff, in developing and executing supplystrategies for all of the bank's externally purchased goods and services. Overfour years, this organization managed over $3 billion in annual spend andcontributed in excess of $1.3 billion in savings.

Before joining Bank One, Anne held CFO and Controller positions for other financialservices organizations and started her career at Ernst & Whinney as an auditmanager.

Anne has been named a “Provider Pro to Know” by Supply & Demand ChainMagazine every year since 2007 and a 2013 Top Female Supply Chain Executive

Anne is a CPA, CGMA and has an MBA in Finance from The University of Chicago

Anne M. Kohler - Bio

About TMG

2

© 2016 The Mpower Group, Inc. All Rights Reserved.Unauthorized Duplication, Storage or Transmission Strictly Prohibited.

The Mpower Group is in the business of Mpowering our clients to accelerate

Exceptional Business Outcomes by unleashing the full potential of their Supply

Chain organizations. We are a global consulting firm dedicated to serving the

needs of Fortune 500 Supply Chain organizations. We help our clients by:

– Accelerating Strategic Transformation: Rapidly move client organizations along The

Mpower Group’s Supply Chain Maturity Model to peak performance levels.

– Competency Based Talent Management: Advance the competencies of our clients’ Supply

Chain professionals to World-Class performance levels.

– Maximizing Deal Value: Help clients realize the full value from large and/or complex deals

by focusing on A) “Customer” Value Drivers before and during negotiations, and B) an

adoptable, sustainable implementation once the deal has been reached.

About The Mpower Group

The Mpower Group is a World Class Strategic Sourcing & Supply Chain consultancy thatdelivers big results with a boutique feel. We are Woman and Minority owned.

About TMG

3

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Our Selected Clients

Enhance Med

About TMG

4

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Introduction

Moving from Tactical to Strategic

Change Management

Stakeholder Analysis

Working in Teams

Wrap-up

Agenda

5

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Introduction

Use of Materials

TMG grants a limited use license to use training content as

reference materials for course attendees only. All of our

training materials are TMG Confidential Information. Taping

and presentation of classes, duplication or reuse of

materials, conduct of additional classes using the materials,

or any similar activities are strictly prohibited.

6

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Introduction

DiscussionsStay in the

room

Ground Rules

Stay forthe entiresession

Help keepdiscussion

focused

BePunctual

Remainengaged

Silence Means Agreement

Listento others

Be Open&

HonestNo

Stripes

7

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Introduction

Learning Objectives

Gain an understanding of why ChangeManagement is so critical to Strategic Sourcing

Learn how Change Management can be integratedinto your Procurement Organization.

Understand why Stakeholder Analysis is soimportant and its value as a process accelerator.

Learn how working in teams helps to increase thelikelihood of success of your Sourcingorganization

8

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Introduction

Opening Exercise: Five Things in Common

1. Pair up with someone you don’t know

2. In 5 minutes, write down 5 things you

have in common with your partner

3. At the end of 5 minutes, join with

another pair to form a small group of 4

4. Take another 5 minutes to find three

things your new foursome has in

common

5. Present commonalities between the

initial pairs, and within your foursome

Please make sure that thethings you have in common are

NOT obvious ones(e.g. we all have children)

9

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Agenda

Introduction

Moving from Tactical to Strategic

Change Management

Stakeholder Analysis

Working in Teams

Wrap-up

10

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Purchasing is a…

management control point where all significant purchases aremonitored for the right authorization of the right item,

at the right price, quality, and quantity, from the right supplierat the right terms, and at the right time.

(BusinessDictionary.com)

Strategic Sourcing is a…

rigorous, fact-based decision process that improvesTotal Cost of Ownership AND Increases Internal Business Partner

Value by leveraging the Total Spend of the organization, proactivelymanaging supplier relationships, rationalizing demand, streamlining

the procurement process and focuses on their value drivers.

Tactical to Strategic

Strategic Sourcing vs. Purchasing

11

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Purchasing is a Reactive or Tactical

driven activity whereas

Strategic Sourcing is a

Comprehensive Process that involves

Upfront Planning and Strategic Thinking.

The Mpower Group’s Definition

Tactical to Strategic

12

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Trends for Procurement Organizations

Drives toward Adoption of solutions and achieving business results

Competency-Based Talent Management – creates a talent factory

Trusted Advisor – called upon to lead major company initiatives

Orchestrator/Driver of the end-to-end Supply Chain

Continuously looks for ways to capture Value beyond traditional TCO

Sits at the C Level

Procurement leads Risk Management across the enterprise

Tactical to Strategic

13

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Strategic Business PartnerInfluences key enterprise strategies

Process LeaderImproves efficiency of sourcing function;leverages spend, manages demand, etc.

Internal ConsultantGather requirements, analyze data, develop

strategic supplier relationships and reduce totalcost of ownership for the enterprise

Change AgentInfluence company’s capability to embrace &

capitalize on change. Align the enterprisearound the Strategic Sourcing process.

Adding Value as a Strategic Partner

Tactical to Strategic

14

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Sourcing Strategy

Globalization of Sourcing

Demand Management

CM Performance Metrics

Third Party Risk Management

Supply and Supplier Management

Sourcing Process

Information Management and Technology

People

Innovation

Consolidated (Overall)

TMG’s Sourcing Maturity Model

BasicSourcing

TraditionalPurchasing

ValueCreating

StrategicSourcing

IntermediateSourcing

TMG’s Sourcing Maturity Model

Illustrative

Based on Carnegie Mellon’s CMM Model

Tactical to Strategic

15

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SourcingStrategy

Globalizationof Sourcing

DemandManagement

PerformanceMetrics

SupplierRisk Management

• Long-term focus (3-5+ years).

• Strategic Sourcing is a vital partof the corporate strategy.

• KPI's for the company areindistinguishable fromProcurement’s KPI’s.

• Scope of Sourcing strategy isthe end-to-end Supply Chainfrom suppliers’ suppliers tocustomers’ customers

• Procurement participation isessential to corporatestrategic initiatives.

• Indispensable for new product,new market, new customer,margin enhancement ,valuedrivers, etc.

• Procurement is called upon todrive strategic planning for the

organization

• Global sourcing approach is oneof dynamic arbitrage. Country oforigin & supply base maychange several times a year.

• Global decisions are made onsophisticated topics such astaxes, tariffs, & manufacturingincentives

• Global sources provide “Blackbox” fulfillment where supplier isresponsible for design,manufacture, & logistics to endcustomers.

• Flexible plug & play sourcingmodel where the global supplychain is aligned arounddistribution not manufacturing

• Pull model where suppliersproduce & ship based ondemand signals. Suppliers self-manage raw/WIP material & use

postponement to provide almostinstantaneous manufacture.

• Managing a global supply baseis a core competence.

• Lead-time is almost all logistics

• Stakeholders haveintegrated demandmanagement into theirday-to-day business

• New business is beinggained based on theinterchange-ability &standardization of parts

• Design reuse leads toaccelerated productdevelopment

• Procurement is driving theS&OP process

• Procurement is involvedwith returns processing /product obsolescence

• Next generation metrics are inplace to capture customer &supplier satisfaction,profitability, quality, & value.

• Metrics are designed around2nd order effects aremeasured such as reductionin working capital, marginenhancement, market shareimprovement.

• Sourcing adopts a “value at risk”approach to risk metrics

• Sourcing is benchmarkingagainst best practice processleaders in other unrelatedindustries.

• Sourcing may estimate pro-forma metrics for its competition

• Sourcing is globally renownedfor achieving outsized metric

results

• “Black swan” modeling tolink remote events thatcould severelycompound & affect theorganization

• Frequent modeling ofsecond & third order effectsof marketplace events

• Risk redundancy isregularly tested byswitching suppliers,specifications, & sourcesof supply.

• Company routinelyoutperforms peer groupunder various supply &marketplace shocks

• Surety of supply is part ofthe corporate riskmanagement plan

Maturity Model: Value Creating

Illustrative

Tactical to Strategic

16

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Supplier & SupplyManagement

SourcingProcess

InformationManagement& Technology

People Innovation

• Suppliers segmented &managed as a portfolio

• Suppliers assist withsales calls

• Regular feedbackgiven, continuousimprovementstrategies in place, jointplanning with suppliers

• Scorecards are in place& utilized to ensuremutual profitability

• Partnering, formalrelationship mgmt.process

• Open financials & jointscorecard drive to sharedbenefits

• Suppliers are proactivelyused to help reshapeyour business

• You are considered to bea “customer of choice”with your supply base

• Sourcing process iscontinually enhancedthrough innovation

• The Sourcing process isleading edge acrossindustries

• Deals are complex innature & outsourcing isa core competency.

• Supplier/Buyerprocesses are linked

• Considered to be thoughtleaders & are sustainingexcellence in in-sourcing,outsourcing & expensemgmt.

• Should - cost and targetcosting is a standard

• Value based sourcing isrequired across allcategories

• Viewed as a leader & model foreffective use & implementation

• Approached by technology suppliersfor new product partnershipopportunities

• Technology improves efficiency. ERP,eP, sourcing, supply chain, softwareintegrated

• Fully documented ROI’s- case studydescribing benefits fromintegration./implementation

• A leader in ADOPTION of technologywithin the company

• Data analysis/mining leads tobreakthroughs in quality, delivery, cost& risk management

• Transactional data transparency allowsbooks to be closed ad-hoc to generatereal-time financial performance metrics

• Competitive business advantage liesnot in the purchase of technology(which is able to copied) but ratherin the integration of businessprocesses to eliminate waste &manual intervention.

• IT leadership is viewed as a keysupply chain ally & vice versa

• Sourcing leader is a “C”level executive

• Sourcing organization isconsidered to be acompetitive weapon

• External customers viewthe Sourcing / SupplyChain organization as acompetitive advantage

• Resources are viewed asstrong internalconsultants & changeagents - begin beingasked to lead othergroups within theorganization

• Procurement is theorganization that is going tomove your career forward

• C level executives arerequired to have a stint inProcurement

• Competency based talentmanagement is the norm

• Innovation contribution is aProcurement evaluationmetric

• Company acceptssolutions that increasecost but generateoffsetting increments ofvalue

• New patents are issuedjointly to supplier /company partnerships

• Focus on transformationalvs. incrementaldevelopment models

• Sourcing routinelyidentifies, introduces &evaluates newtechnology & businessdelivery conceptsstemming from unrelatedindustries, cultures, &geographies

• Significant companyfocus on obsolescingcurrent equipment withnew & improved models.Sourcing innovation iscrucial to this process

Illustrative

Maturity Model: Value Creating

Tactical to Strategic

17

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What Are Your Current Challenges?

Tactical to Strategic

18

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The Focus of Most Strategic Sourcing Initiatives IsEXTERNAL

Typical Sourcing Focus

• Reducing Prices

• Supplier Selection

• Negotiations

Tactical to Strategic

19

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• Complex cultural dynamics

• Political maneuvering

• Inertia favors status quo

• Hesitant to give up perceivedpower

• Narrowly focused decisionmaking

• Process changes

• Organizational changes

• Changing attitudes aboutsuppliers

The Greatest . . . . . . . .

Challenges

areINTERNAL!!

20

Tactical to Strategic

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• They can THROW OFF the entire process

• Consultants do not stress their importance

• There are real issues with departmentsprotecting their own way of doing things

• Culture / values must be attended to

Internal Issues are critical because:

In other words . . . Change is HARD!!!!

21

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Barriers to Forming Effective Supplier Partnerships(North America)

28

32

32

36

40

48

56Too Many Other

Competing Initiatives

Comfortable Relationships WithExisting Suppliers

Lack Of Cross-BusinessUnit Cooperation

Lack of Cross-FunctionalCooperation

Lack of Adequate Data ToSupport Analysis

Inadequate Monitoring AndControl Systems

Inadequate Experience At ManagingMajor Improvement Program

Source: A.T. Kearney CEO Global Business Study

%

%

%

%

%

%

%

Tactical to Strategic

22

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Exercise

Win as Much as You Can

Tactical to Strategic

23

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Agenda

Introduction

Moving from Tactical to Strategic

Change Management

Stakeholder Analysis

Working in Teams

Wrap-up

24

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Video

Change is Good . . . You Go First21 Ways to Inspire Change

Change Management

25

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Do Any of these Sound Familiar?

• Don’t go beyond “low hanging fruit”Results

• At cost of long-term value creationFocus on short-term results

• Conflict with internal functions and suppliersSourcing process

• Stifles innovation and value creationCost focus

• Reinforce “the old way”Metrics

• Has been delivered; is NOT being usedTraining

• Not being utilized as plannedNew technologies

• Still have limited span of controlSourcing and Supply Chain

Change Management

26

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More Effective Supply Base

• Strategic Approach

• Total Cost Focus

• Procurement BestPractices

Companies Have Made Huge Investments in Best Practicesto Elevate the Role of Procurement

….With Promises of Competitive AdvantageAnd Exceptional Business Results

Technology

People

Process StrategyTools andTemplates

Processes

Organization Talent

Technology

ExceptionalBusinessResults

Gap

Intensive Training

• Process

• Tools & Templates

• Technology

Improved Talent & Skills

• Best Resources

• Improved Processes

• Superior “Functional”skills

Foundation

Change Management

27

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Clearly, the Foundation (Consonants) is not enough….wemust also have the Vowels (AEIOU)

Technology

People

Process StrategyTools andTemplates

Processes

Organization Talent

Technology

ExceptionalBusinessResultsFoundation

Adoption / Implementation

Learning

Alignment

Information

LearningEnvironment

Coaching &Mentoring

DecisionProcess

BusinessAlignment

ChangeManagement

VisibilityMetrics/

ReportingKnowledge

Management

Alignment Execution Implementation Optimization Utilization

Change Management

28

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Sourcing Process

Tools & Templates

Talent Management

Technology

ExecutiveSupport

HigherExpectations

LearningEnvironment

Metricsaligned withthe Business

NewRole

StrategicCompetencies

AdoptionFocused

Context Always Trumps Content

Change Management

29

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Definition

Change management is an organized, systematic application of

the knowledge, tools and resources of change that provides

organizations with a key process to achieve their business results.

Effective change management must bring the organizational and people

sides of change together in order to increase the speed of

implementation and thereby insure the realization of business benefits.

Change Management

30

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10 Reasons Why Change Efforts Fail

Lack of a clear vision

Decision processes not clearly defined

Failure to deliver early, tangible results

Everything is high priority

Old performance measures block change

The voice of the customer is absent

“What’s in it for me” is unclear

Sr. management wants to help - doesn’t know how

Same old horses, same old glue

Lack of a clear requirement to change

Change Management

31

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What is the best kept secretabout Strategic Sourcing?

The Best Kept Secret

It’s all aboutChange

Management!

Change Management

32

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What is needed:

• Support from senior management• Strong leadership to sell the process throughout the organization

Purpose:

• Establish a positive and constructive climate that will lead to themost successful outcome

• Develop support for Sourcing within the Procurement organization• Develop support from outside the Procurement organization to pull

individual projects along to completion• Communicate strategic sourcing success and status

Purpose

Change Management

33

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Success Requires a Change in Context as well as Content

The Enterprise

Organization

StrategicSourcing

Organization

Context ALWAYS Trumps Content

The ProcurementOrganizationwill need to“push” the

sourcing processout into theEnterprise.

Sourcingalso needs to

adopt techniquesto ensurethere is a

“pull” created.

Change Management

34

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TIME

EF

FO

RT

Change Management

35

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• Do we havereporting andreward systemsin place?

• Can we holdleadersaccountableto lead?

• Are wemonitoring,recognizing andrewardingalignment?

• Do we have atraining /development planin place for theorganization?

• Have we providedthem a toolkit?

• Can we ensurenew tools andskills are applied?

• Have we identifiedthe right people?

• Do they knowwhat is expectedof them?

• Do they know“how” to play theirroles?

• Have youestablished cleargoals / linkages tobusiness results?

• Do we have achange strategy?

• How will we getthere?

• What are the risksand mitigationStrategies?

• What is goingto change?

• Why do weneed change?

• What is theurgency tochange?

• Who are the keystakeholders andwhat is theirmotivation?

• Do we have seniorexecutive support?

• What will be thecritical successfactors?

Mobilizethe

Change

Positionthe

Change

Operationalizethe Change

WhoCauses the

Change

Enable theOrganization

Reinforcethe Change

CreateBurning

Platform -Selling the

Change

Work inTeams

ProjectLaunch

StakeholderAnalysis

Communication

Plan

LeadingChange

Sponsorship /Governance

ManagingResistance to

Change

Principles

RiskManagement

RACI Charts

Collaboration

DecisionMaking

Training /Adoption

ManagingConflict

PerformanceMetrics

Change Management Framework

Change Management

36

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Agenda

Introduction

Moving from Tactical to Strategic

Change Management

Stakeholder Analysis

Working in Teams

Wrap-up

37

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• Do we havereporting andreward systemsin place?

• Can we holdleadersaccountableto lead?

• Are wemonitoring,recognizing andrewardingalignment?

• Do we have atraining /development planin place for theorganization?

• Have we providedthem a toolkit?

• Can we ensurenew tools andskills are applied?

• Have we identifiedthe right people?

• Do they knowwhat is expectedof them?

• Do they know“how” to play theirroles?

• Have youestablished cleargoals / linkages tobusiness results?

• Do we have achange strategy?

• How will we getthere?

• What are the risksand mitigationStrategies?

• What is goingto change?

• Why do weneed change?

• What is theurgency tochange?

• Who are the keystakeholders andwhat is theirmotivation?

• Do we have seniorexecutive support?

• What will be thecritical successfactors?

Mobilizethe

Change

Positionthe

Change

Operationalizethe Change

WhoCauses the

Change

Enable theOrganization

Reinforcethe Change

CreateBurning

Platform -Selling the

Change

Work inTeams

ProjectLaunch

StakeholderAnalysis

Communication

Plan

LeadingChange

Sponsorship /Governance

ManagingResistance to

Change

Principles

RiskManagement

RACI Charts

Collaboration

DecisionMaking

Training /Adoption

ManagingConflict

PerformanceMetrics

Change Management Framework

Stakeholder Analysis

38

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Stakeholder Analysis – Why Important?

• Understanding of which individuals have a personal

interest

• Allows you to categorize stakeholders and involve them

early

• Helps you understand level of

commitment/support/resistance by individual

• Helps you begin to address resistance before it hardens

• Allows you to build the appropriate level of commitment by

individual

• Will be the foundation for your selling/communication plan

• Can be used to develop your decision models

Stakeholder Analysis

39

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Definition of a Stakeholder

Any group or individual who can affect or

be affected by the change or

the initiative and/or has a personal interest.

Who are some potential stakeholders?

Stakeholder Analysis

40

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Key Questions

How do we identify key stakeholders?

How do we involve them?

How do we assess their position and impacton the change / initiative?

What are their motivations?

How do we influence and manage them?

How, what and when do we communicate tothem?

Stakeholder Analysis

41

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Stakeholder Mapping Process

Identify stakeholders, including title/positionand business unit

Assign decision making roles to stakeholders

Determine current level of commitment(from Strongly Against to Strongly Supportive)

Identify desired level of commitment you needfrom them

Create action plan to move the stakeholder tothe desired position

Stakeholder Analysis

42

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Stakeholder Analysis Template

Stakeholder Analysis

43

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Decision Making Roles

Role Definition

Sponsor

• Individual designated as the overall leader of the project / change

• Legitimize a project / change through their active, “visible” support

• Allocate resources to ensure success

Champion

• Strong supporter who will help sell the project / change

• Wants the change and attempts to obtain commitment from others

• Requires sponsorship

ChangeAgent

• Plays a key role in preparing for and bringing about change in theorganization

• Drives the project / change through their visible ownership

Target

• Stakeholder whose support has yet to be obtained or confirmed

• Affected by the project / change and may be the focus of the effort

• Plays a key role in achieving and sustaining the goals of the project

• Initial response tends to be more negative than positive

Stakeholder Analysis

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Stakeholder Analysis - Commitment Levels

Strongly Against• Vocal/visible opposition to all aspects (nature, content, desired outcome, etc.) of the project / change

effort

• Actively blocks or resists efforts to initiate or make progress with project / change effort

• Engages others in trying to block the change

Moderately Against• Voices concern over certain aspects of the project / change effort

• Offers alternatives that would make the project / change effort acceptable

• Can be passively working “behind the scenes” to stall the change

Neutral• Does not take a stand in support or opposition of the project / change effort

• May not have enough information to take a stand one way or another

Moderately Supportive• Displays commitment to the goals of the project / change effort

• Actively seeks to move the project / change effort forward through testing new ideas, concepts, andimplications

Strongly Supportive• Embraces the project / change effort and positions it as an accepted means of operating

• Personally takes ownership of the project / change effort and actively displays that ownership andsupport

Stakeholder Analysis

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Moving Stakeholder to More Favorable Position

• Commission strong supporters to champion effort

• Use Executives to create alignment and buy-in

• Continuous communications regarding successes

StronglyAgainst

• Discuss alternatives to mitigate concerns

• Use team members to create alignment and buy-in

• Periodic communications regarding successes

ModeratelyAgainst

• Show how their support will enhance success

• Use other supporters to create alignment and buy-in

• Ad hoc communications regarding successes

Neutral

ModeratelySupportive

ORStrongly

Supportive

Use Advocates to “Sell” the Change!

Stakeholder Analysis

46

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When is a Hamburger NOT just a Hamburger . . .

Hamburger

TCO Value

• Best PriceEvaluation

• Recruiting

• Product Quality• QOWL(Quality ofWork Life)

• AggressiveNegotiation

• EmployeeRetention

• RationalizeSupply Base

• Value > Cost

Business owners place more importance on “Value” than Cost

Client Example

Stakeholder Analysis

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CostManagement

StakeholderIdentification &Communications

Return onInvestment

CompetitiveAnalysis

StrategicPlanning

RelationshipManagement

LeadGeneration

Differentiation

IndustryAwareness

BrandManagement

SalesSupport

CustomerLife Cycle

Management

Examples of Business Intent – CRM Example

CIO, CPO, CFO, ETC…

Others

Key

a

a

a

b

C

b

bb

C

C

b

C

C

C

b

CMO

Traditional IT Focus

Stakeholder Focus (Sales)

Next Practice Focus (CMO)

Stakeholder Analysis

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Fundamentals of Value (Business Intent)

• Non-NegotiableCustomer Defined

• Non-QuantifiableOpaque

• Functional, Economic, PsychologicalMulti Dimensional

• Cost - ValueTrade Off

Contextual

Relative

Mind Set

Defined by How it is Used

Compared to Alternatives

Based on a Belief

By: Professor Mohanbir Sawhney)

Stakeholder Analysis

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Client Example: Real Business Intent

Faculty• Real time student KPI

& predictors• Shorter courseware

development times

Academics• Strategic options• Real time curriculum

analysis

Technology• Lower support cost• Focus on innovation

instead of break/fix

Finance• More granular view of

value drivers• More accurate costing

Students• Adaptive experience• Immersive experience• Failure proof

Partners• Single platform to

service• One set of ABC

standards

Employers• Track skill set acquisition

via custom report cards• Partner on course and

curriculum items

Enrollment Growth and Marketing• Better market positions• Better testimonials

Course of theFuture

Buy BooksCheaper

Don’t BuyBooksat All

Stakeholder Analysis

50

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• What you ask (outside / in perspective)

• Who you talk to (define “customer” differently)

• How you engage your “customer” / supplier

• The metrics that drive/measure success

Value Influence Power

• When you realize benefits (define “success” differently)

Focusing on Business Intent dramatically changes:

Stakeholder Analysis

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Exercise – Identifying Stakeholders & Their Business Intent

1. Break out into work teams

2. Select a category from the list provided by

the instructor

3. Using flip chart please identify a total of

five (5) non-traditional stakeholders

4. Then determine each stakeholders

business intent – please flip chart this as

well

5. Be prepared to present your results to the

entire group.

Stakeholder Analysis

52

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Agenda

Introduction

Moving from Tactical to Strategic

Change Management

Stakeholder Analysis

Working in Teams

Wrap-up

53

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• Do we havereporting andreward systemsin place?

• Can we holdleadersaccountableto lead?

• Are wemonitoring,recognizing andrewardingalignment?

• Do we have atraining /development planin place for theorganization?

• Have we providedthem a toolkit?

• Can we ensurenew tools andskills are applied?

• Have we identifiedthe right people?

• Do they knowwhat is expectedof them?

• Do they know“how” to play theirroles?

• Have youestablished cleargoals / linkages tobusiness results?

• Do we have achange strategy?

• How will we getthere?

• What are the risksand mitigationStrategies?

• What is goingto change?

• Why do weneed change?

• What is theurgency tochange?

• Who are the keystakeholders andwhat is theirmotivation?

• Do we have seniorexecutive support?

• What will be thecritical successfactors?

Mobilizethe

Change

Positionthe

Change

Operationalizethe Change

WhoCauses the

Change

Enable theOrganization

Reinforcethe Change

CreateBurning

Platform -Selling the

Change

Work inTeams

ProjectLaunch

StakeholderAnalysis

Communication

Plan

LeadingChange

Sponsorship /Governance

ManagingResistance to

Change

Principles

RiskManagement

RACI Charts

Collaboration

DecisionMaking

Training /Adoption

ManagingConflict

PerformanceMetrics

Change Management Framework

Working in Teams

54

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A cross functional/cross organizational team is formed becauseinput is required and “valued” from various sources

Strategic Sourcing is most successfulthrough working in teams

Teaming can be one of the mostpowerful ways of getting work done

The best teams are those thathave members with different skills

Valuing and exploring the differences ofthe team members is critical to success

Teaming Supports Strategic Sourcing

55

Working in Teams

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Groups vs. Teams

Belief thatworking together

leads to betterresults

Dependent onone another

Accountable as asingle unit

Unique skillsblended withshared skills

Working in Teams

56

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Stages of Team Formation

Adjourning

Forming

Norming

Performing

Storming

Time

Matu

rity

Working in Teams

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Attributes of Successful Teams

Successful TeamsVision

Clear Roles andResponsibilities

EffectiveLeadership

EffectiveCommunication

CelebratingDifferences

Integrity

JointGoals

Shared Values

Working in Teams

58

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MutualRespect

Sharing Power

Cooperation vs.Competition

ConstructiveConflict

Synergy/Combined

Effort

ContinuousImprovement

Depending onOne Another

CreativeThinking

Successful Teams

Attributes of Successful Teams

Working in Teams

59

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Common Themes from the Models (Kotter: Organizational Dynamics Model,

McKinsey: 7-S Model, Galbraith: Star Model, Blake / Mouton Grid)

Vision, culture and climate are the background for all organizational components

External Stakeholders are Key Success Factors

Ignore Financial Management at your own peril!

Leadership must take responsibility for managing boundaries

Feedback is critical and must include performance at the boundaries

The external environment is the foundation on which success is built

Operational plans must account for INTENDED CONSEQUENCES(or business result) not just the work to be done

Working in Teams

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Change in any one area impacts all other areas REGARDLESS

Information, communication, and decision making are Key Success Factors

The “soft” areas (Learning Environment, Alignment, etc.) are as importantas the “hard” areas (Technology, Processes, etc.)

Key organizational processes must be aligned, mutually supportive, andmanaged consistently

Success requires a ‘Burning Platform’ to rally behind

Employees are the most important asset

Across all the models, Boundary Management is THE critical issue

Common Themes from the Models (continued)

Working in Teams

61

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Team Members Roles – Leader

• “Owns” team meetings – sets theobjective

• Assures the team contains the right teammembers / meeting participants

• Provides support , information andresources

• Sets the tone - is the role model

• Encourages creativity

• Facilitates decision process

• May sometimes assume the role offacilitator

This role can be rotational by meeting or duringdifferent parts of the process

Working in Teams

62

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Team Members Roles – Facilitator

• Guides the meeting process

• Make it “safe” for everyone toparticipate

• Harness group activity

• Record group ideas and decisions

• Acts as timekeeper

• Brings team back on-track whenneeded

This role should be assumed by a team member butcan be a third party

Working in Teams

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Team Members Roles – Keeper of the Team

• Keeps the team functioning at anoptimal level

• Focuses on how the team isinteracting

• Ensures the team is following it’smeeting ground rules

• Ensures the team is adhering to it’sprinciples

• Procures appropriate intervention /training where necessary

Working in Teams

64

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Team Members Roles

Keeping of the Linkages

• Manages external linkages for the team

• Acts as a liaison – relaying information in& out

• Manages stakeholder relationships

Keeper of the Boundary

• Manages issues outside the boundary ofthe team

• Negotiates external fiefdom issues

• Resolves external conflicts

• Very often played by the team Sponsorexternal

Working in Teams

65

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Develop Team “Rules of the Road”

• Similar to ground rules

• Establishes working norms for the team

• Obtain agreement from all team

members

• Violation of rules should have

consequences

• Seek out issues/concerns/risks

Working in Teams

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“Real” work is done by all members of the sourcingteam

The whole team is responsible for the “whole”deliverable

Team Principles

Client Example

How we work together is as important as what we do

“Team process” is part of the work of the team

Respect each others differences

There will be recognition and consequences forboth outstanding and inadequate behavior

Team “Rules of the Road”

Working in Teams

67

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High Performance Work Teams in Action

Normally 20% of Fortune 1,000 companies are profitable growingcompanies but about 50% of the Fortune 1,000 companies thatemploy best team practices are profitable growing companies

– Cut development time for critical products from two years to one

– Cut service glitches (incorrect bills and lost packages) by 13% in one year

– “At P&G there are well over two decades of comparisons of results -- side by

side -- between enlightened work systems and those I call traditional. It is

absolutely clear that the new work systems work better -- a lot better.”

Charles Eberle, a former Vice President of Procter & Gamble

– 75% less worker hours lost to scrap, 42% fewer defects per worker and 17%

higher productivity

Working in Teams

68

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Exercise

Lost at Sea

Working in Teams

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Agenda

Introduction

Moving from Tactical to Strategic

Change Management

Stakeholder Analysis

Working in Teams

Wrap-up

70