The Multi-Million Dollar Question: Cracking the Executive ...Question: Cracking the Executive Sponsorship Code Wendy Branche, VP Global Organization Effectiveness, Tyco ... best practices

The Multi-Million Dollar Question:

Cracking the Executive

Sponsorship Code Wendy Branche, VP Global Organization Effectiveness, Tyco Jennifer Herrod, Director, Learning and Performance, Tyco

#ACMP2015 2015 © ACMP All Rights Reserved -‐ 2015 Tyco Confiden>al 1

‘Cracking The Executive Sponsorship Code’


Case Study Review Objectives

What you will learn: 1.  How Tyco is crea>ng an Enterprise Change Capability as a key

enabler for transforma>on and realiza>on of millions of dollars of benefit

2.  The strategies Tyco used to create execu>ve sponsorship and accelerate adop>on throughout the enterprise

3.  How Tyco has posi>oned change as a differen>a>ng leadership competency and standard business process

4.  The impact change management has had on Tyco and lessons learned


Who we are…


Placeholder for SHORT Tyco Video to introduce Tyco – how should we

provide video?

Setting The Context: Tyco’s Aspiration Requires Change

Building Fundamentals, Driving Transformation & Delivering Growth Platforms

Growth & Innovation Company

Transformation as Operating Company

Holding Company

We are here:

Focus

Capabilities

Outputs & Results

§  Individual Operating Plans

§  Setting & meeting expectations

§  Execution acumen

§  Financial & operational stability

§  Functional & operational expertise

§  Resource allocation

§  Commercial & operational best practices

§  Enterprise growth initiatives

§  Solving customer problems §  Lean start-up thinking §  Proactive resource

re-allocation

§  Deep customer relationships §  Accelerated organic growth §  Industry leadership

§  Collaboration §  Growth orientation

§  Customer intimacy §  Disruptive innovation §  Solution provider


Setting The Context: What is Changing? EVERYTHING

Large Disrup@ve Changes •  Func>onal Transforma>ons: IT, Finance,

Procurement, HR •  Business Integra>on (M&A, Fire & Security) •  Business Model Innova>on •  Technology Innova>on (Tyco ON) •  Tyco Talent System •  Back office consolida>on •  Field Technician Technology Upgrades •  Commercial Excellence •  Improving Customer Experience


Large percentage of these changes are dependent on people changing

their behavior

Millions of $$ at stake…

Case Study: The Milestones

7 I

2013

12 Aug

03 Oct

10 Nov

2014 2015

•  Established co-‐sponsorship with business and HR

•  Engaged other transforma>on leaders

•  Cross-‐business team decide s on change methodology

CHANGE PIONEER NETWORK LAUNCHED

05 Mar

13 May

12 Aug

03 Jan

10 March

•  Enterprise Change Capability audit, planning and expanded governance

•  Approach and funding approved

•  5 hours with the top 30 leaders on change

C SUITE AND TOP 30 LEADERS EDUCATED

•  Change applied to top project and tracked

•  Distribu>ng change leadership deeper and broader

•  Change iden>fied as enterprise risk

CHANGE FOR CHANGE CONTINUES


DEMAND and ‘BUZZ’ GROWS

Cracking the Code: Critical success factors

Get Grounded in the Business:

Posi>on change as a business process to achieve FINANCIAL outcomes

Get Collabora@ng with Others:

Business leaders are our co-‐creators and our biggest champions

Get Your Sponsors Working:

Execu>ve sponsors find funding, posi>on change with their peers and provide a credible execu>ve voice for change

Get Change in the Hands of Others:

Our world is changing fast and all employees need to be change leaders

Get Innova@ve & Get Going:

Distribu>ng change leadership means giving up control and seizing opportuni>es to innovate


Get Change Grounded in the Business

Technical Change

People Change

BUDGET

3 31% more likely

to be on or under budget

SCHEDULE

2 55% more likely

to be on schedule

TARGETS

1 79% more likely

to meet or exceed their

objectives

Effective Change = 6X more likely to meet or exceed project objectives – would you invest .1% to Protect >$600M?

#ACMP2015

Adapted from Prosci Inc. Used under license.

2015 © ACMP All Rights Reserved -‐ 2015 Tyco Confiden>al

9

Framing Enterprise Change As A Business Imperative

Change = ‘The Way We Work’

Customer, Employee and Shareholder Value Crea@on

What It Does ü  Enables transi>on to opera>ng company ü  Drives efficient cost structure ü  Accelerates value extrac>on

ü  Priori>zes & allocates ü  Accelerates Change

Tyco Business System A system of processes, procedures and controls that standardize and op@mize the way all of our businesses and func>ons operate

Assess Stabilize Improve Refine / Optimize World Class


Framing Change As A Leadership Imperative


Tyco’s Leadership Model

Cracking the Code: A TBS Process AANNDD Leadership Essential

Change Leadership is a structured process for managing the people side of projects and a competency at all levels of the organiza>on

to embrace and drive change to achieve business results.


Get Grounded in the Business: Assess Change Maturity

13 #ACMP2015

CL Competence is Evident at All

Levels

Consistent CL Process Applied to Priority Projects

Change is Applied Ad

Hoc or Not At All

FY 16

FY17 CL Competence Becomes Part of

our DNA and a Compe@@ve Advantage for

Tyco!

WE ARE MOVING FROM HERE…

FY15

Enterprise Standard as part of TBS Applied

Broadly

**Scores from Prosci® Change Management Maturity Model Audit, Scale of 1-‐5

Assess Stabilize Improve Refine/ Optimize World Class

TBS Maturity Model

March 2014 CMMMA Score

= 1.67**

Aspiring CMMMA

Score = 5.0

…TO HERE

2015 © ACMP All Rights Reserved -‐ 2015 Tyco Confiden>al

Business Ops

Six Sigma

IT PMO

TBS

HR

Get Grounded & Get Collaborating


Get Collaborating to Drive ‘Change for Change’

CURRENT STATE

Either ad hoc or no change management is applied crea>ng project and people risk

TBS Process

Ins>tu>onalize a consistent approach to managing organiza>on and individual level change

Structure

Establish Change Champion Network and Program Office to Scale

Skill

Develop and deploy Change Leadership Curriculum as part of Tyco U

Project

Target highest priority change efforts and rapidly apply ADKAR model and integrate with other TBS processes

Change Leadership process becomes an organiza>on standard and competence exists at all levels resul>ng in achievement of revenue and savings expecta>ons

FUTURE STATE


VP Tyco Business System Funding, Business Grounding, Access, Reinforcement, Integra>on w/ Core Business Process

CHRO Funding, access and reinforcement

Business Opera@ons Transformaiton Lead Credibility, Grounded in business

CIO & IT Transforma@on Lead Access, applica>on, use cases

Tyco University Curriculum & delivery support

Process Leaders Six Sigma, Project Management, M&A

Get Your Sponsors Working


Get Your Sponsors Working: Make Change Relevant


Sprinkler Contrac>ng Business

Third Party Compliance

Centralized Business Services

ERP Then & Now

Execu@ve Council Mee@ng May 2014

Asked for 4 hours…got 1… …asked back for more!

Execu@ve Council Mee@ng August 2014

4 hour Exec Sponsor Workshop + Stories

13 May

12 Aug

Let’s Hear from Our Leaders

We plan to insert a few videos of statements from our C-‐suite and those are in the planning / produc>on phase. Let us know how best to

insert these and we may not get them un>l a few days before the conference. Hope that doesn’t create a problem.


Get Change In The Hands of Others: Change Champion Network

Tyco Change Champion Network •  Volunteer posi>on with representa>on for each business/func>on

•  Champions applica>on of CL process •  Validates, monitors & reports on change leadership prac>ces & projects

•  Advocate, coach & educate leaders on CL process

•  Share best prac>ces & success stories •  Lead change agent networks in their area


Get Collaborating – Integrate With Other Process Owners

• TBS Project Tracking – Change Status Page Added • M&A Playbook Integra@on • Program Management Process Integra@on • Six Sigma Integra@on


Get Change in the Hands of Others – Role Based Curriculum

Change Enabler -‐ Employees Leading self through change Change Coach -‐ Managers

Leading others through change

Change Agent -‐ Project Team Members Accountable for carrying out change plans

Change Prac@@oner – Program and Project Leads Accountable for planning, managing and reinforcing

change resul>ng in adop>on and achievement of business results

Change Sponsor – Senior Leaders Accountable for driving change and

achievement of business results


ppaarrttiicciippaannttss (who attended change practitioner course) ssttaatteedd tthheeyy

ddrraassttiiccaallllyy iimmpprroovveedd ppllaannnniinngg ttiimmeess,, aapppprroovvaall pprroocceesssseess,, tthhee ssppeeeedd ooff ddeecciissiioonn--mmaakkiinngg,, aanndd

eexxeeccuuttiioonn ttiimmeess ffoorr ccoommmmuunniiccaattiioonn ppllaannss aass aa rreessuulltt ooff iimmmmeeddiiaatteellyy iimmpplleemmeennttiinngg nneeww

lleessssoonnss lleeaarrnneedd


Reinforcing Change Webinars

Get Innovative and Get Going


Gamifica@on

Global Community of Prac@ce

Posters

TBS Report Outs

Pilot Custom Tools

Case Studies

Get Innovative and Get Going

First Half 2015 62 Prac@@oners 260 Managers

2014 93 Sponsors

87 Prac@@oners 71 Managers

2013 10 Prac@@oners


Activity – How can you apply our lessons learned?

IDENTIFY: • How can you get your sponsors to work harder for you? • Which cri@cal success factors do you have in place and which could be strengthened?

DISCUSS: •  Break into groups of 2-‐3 and discuss:

1)  What cri@cal success factors you’ve done well, so others can learn from YOU!

2)  What cri@cal success factor could you improve upon? PLAN:

•  Commit to one new insight or tac@c to ‘fuel’ your efforts


Impact We Have Had


þ Demand and adop>on has been well beyond our expecta>ons

þ Step change enterprise capability maturity

þ Evidence of adop>on -‐ change process and resources being applied to most cri>cal projects

þ Change iden>fied as an Enterprise Risk (Board level aien>on)

þ Change budgets being discussed at beginning of projects

þ 70% of prac>>oners believe it is having a financial impact

Consistent CL Process Applied to Priority Projects

““II ttrruullyy bbeelliieevvee tthhaatt tthhee cchhaannggee LLeeaaddeerrsshhiipp pprroocceessss wwee aarree

iimmpplleemmeennttiinngg wwiillll bbee aa ccoommppeettiittiivvee aaddvvaannttaaggee ffoorr uuss,, aanndd wwiillll eennaabbllee uuss ttoo ttrraannssffoorrmm iinnttoo aa ggrroowwtthh aanndd iinnnnoovvaattiioonn ccoommppaannyy!! TThhaannkkss aaggaaiinn ffoorr yyoouurr ssttrroonngg lleeaaddeerrsshhiipp oonn tthhiiss

ccrriittiiccaall iinniittiiaattiivvee!!””

GGeeoorrggee OOlliivveerr,, TTyyccoo CCEEOO,, 22001144


What’s next for us


•  Mature CL process to the next step •  Create broader access to tools and con>nue to tailor

•  Con>nue process integra>on work •  Con>nue to track change for top projects •  Create enterprise awareness and desire for CL deeper into the enterprise

•  Increase capability by scaling CL curriculum and other reinforcing mechanisms

•  Measure real impact of change

Our Journey: Questions and answers


Documents

The Multi-Million Dollar Question: Cracking the Executive ...Question: Cracking the Executive Sponsorship Code Wendy Branche, VP Global Organization Effectiveness, Tyco ... best practices