Business Excellence: Making Change Management "Value-Add"

GDS_81854_PPT_Template_Green03_v3 1

Making Change Management “Value-Add”

John Sauers

Program Manager, Business Learning Solutions

GPO Business Excellence

June 11, 2012

Company Confidential

© 2012 Abbott

GDS_81854_PPT_Template_Orange02_v1 2

Global Pharma Manufacturing Summit

June, 2012

Objectives

• Overcoming resistance to the changes which inevitably come with BEx initiatives

• Incorporating change management tools into BEx programs

• Helping staff understand their roles and responsibilities to ensure the success of a project

• The importance of timing around change management training

All of this will lead to…

• Developing an appreciation for the “people” side of projects

© 2012 Abbott

Abbott at a Glance

Presentation Title

Date


© 2007 Abbott

GDS_70000_Title_v1 4 © 2012 Abbott

Abbott at a Glance

Market-leading

pharmaceuticals

Advanced

medical products

nutritional products

Biaxin (clarithromycin) XIENCE V

See Important Product Use and Safety Information for Biaxin, HUMIRA, and

XIENCE V within this presentation. Full prescribing information is available by

visiting rxabbott.com and abbottvascular.com. All illustrations included in this

presentation are artist’s renditions.

Trusted

Presentation Title

Date


© 2007 Abbott


Abbott at a Glance

OUR AREAS OF EXPERTISE

Advanced

• medical products

Trusted

• nutritional products

Market-leading

• pharmaceuticals

Anesthesia

Animal Health

Anti-Infectives

Cardiovascular

Diabetes Care

Diagnostics

Hematology

Immunology

Medical Optics

Metabolics

Molecular

Neuroscience

Nutrition

Oncology

Pain Care

Point of Care

Renal Care

Vascular

Virology

Presentation Title

Date


© 2007 Abbott


Abbott at a Glance

Serving Global Needs

Corporate Headquarters

– North suburban Chicago, Illinois, U.S.A.

Global reach

– 100+ facilities

– 130+ countries

~ 90,000 employees

Presentation Title

Date


© 2007 Abbott


Abbott at a Glance

Company to split into 2 companies later this year

Abbott

– Diversified Medical Products

Established pharmaceuticals

Diagnostics

Devices

Nutritional products

Animal health

AbbVie

– Research-based Pharmaceuticals

Presentation Title

Date


© 2007 Abbott


Our Promise for Life

We are here for the people we serve in their pursuit of healthy lives. This has been the way of Abbott for more than a century – passionately and thoughtfully translating science into lasting contributions to health.

Our products encircle life, from newborns to aging adults, from nutrition and diagnostics through medical care and pharmaceutical therapy…

…The promise of our company is in the promise our work holds for health and life.

Abbott at a Glance

Presentation Title

Date


© 2007 Abbott


Change Management


© 2012 Abbott



June, 2012

A Little CM Humor…


© 2012 Abbott



June, 2012

GPO’s Primary BEx Programs

• Class A

• Lean Diagnostics

• Lean Six Sigma

• End-to-End

• Tools

– Kaizen

– Innovation

– Change Management

– Training


© 2012 Abbott



June, 2012

Abbott’s Change Model


© 2012 Abbott



June, 2012

Resistance


© 2012 Abbott



June, 2012

Change Curve

Illustration

Adoption

Commitment

“ Oh yeah, I ’ I've heard of that program ”

“ Well, sounds as if the program is supposed to

change the way I do my day - to - day work ”

“ I believe the program is

integral to carry out my tasks ”

“ I know the value delivered by

the program and it is a regular

part of how I do my work ”

Understanding

Awareness

Organizational

Leadership

Division

Management End users

Ad

ap

tati

on

an

d S

up

po

rt f

or

Ch

an

ge

Time

Preparation Preparation Build Design Final Prep & Go - Live

Support & Sustain Support & Sustain

Acceptance Adoption

Commitment

“ Oh yeah, I ’ I've heard of that program ”

“ Well, sounds as if the program is supposed to

change the way I do my day - to - day work ”

“ I believe the program is

integral to carry out my tasks ”

“ I know the value delivered by

the program and it is a regular

part of how I do my work ”

Understanding

Awareness

Organizational

Leadership

Division

Management End users

Ad

ap

tati

on

an

d S

up

po

rt f

or

Ch

an

ge

Time

Preparation Preparation Build Design Final Prep & Go - Live

Support & Sustain Support & Sustain

Acceptance

Managers/Sponsors BEx Team


© 2012 Abbott



June, 2012

Overcoming Resistance

• Sponsorship

– Involve the RIGHT people at the RIGHT time

– If your Sponsors aren’t committed…

• Communication

– Targeted messages

– What happens in the absence of communication?

• Education

– Awareness

– Role-specific training

• Involvement

– Especially for the nay-sayers!

– Class A example


© 2012 Abbott



June, 2012

CM Tools


© 2012 Abbott



June, 2012

Process & Tools Evaluate and Sustain Integrate Assess/Diagnose/Plan

Define

the Change

Develop

Sponsorship

Assess

Readiness

Implement

Change

Evaluate

Sustain

Create Change

Plan

Actions

• Define the change

• Create elevator/lift speech

Tools

• Define Change Template

• Elevator/lift Speech

Template

Actions

• Manage stakeholders

Tools

• Stakeholder

management template

Actions

• Analyze impact

• Assess change

readiness

Tools

• Issue Analysis

• Impact Analysis

• Abbott Change

Readiness

Assessment

• Resistance Analysis

Actions

• Create change

plan

• Create

communication

matrix

• Integrate into

overall integration

plan

Tools

• Change

Management plan

• Communication

Plan

• Learning Plan

• Support Plan

• Change Evaluation

Matrix

Actions

• Implement change plan

Actions

• Monitor

• Evaluate the

change

•Sustain

Tools

• Change

Evaluation

Matrix

• Sustainment

Matrix

Tools

• Change Management

plan

• Communication Plan

• Learning Plan

• Support Plan

• Change Evaluation

Matrix

Stakeholder Management and Communications

Process Tools: Leading Change Dashboard, Leader’s Communication Checklist


© 2012 Abbott



June, 2012

Helping BEx Help Themselves

• Education for BEx staff

– “Basics” of CM

– Elevator Speech

– Stakeholder Analysis

– Change Readiness Survey

• Special support from BLS staff

– Advanced CM Practitioners

– Facilitate Sponsor and Change Agent training

– Facilitate “special” CM workshops

– Establishment of CM Community of Practice


© 2012 Abbott



June, 2012

CM Roles and Responsibilities


© 2012 Abbott



June, 2012

Roles & Responsibilities In BEx Projects

• BLS – Advanced CM Practitioners/Facilitators

• BEx – Basic CM Guides

• Project Teams – Change Agents

• Class A Example

– Education/Communication team “owns” CM, but is supported by BEx

– Training is critical!

– Involving others throughout project


© 2012 Abbott



June, 2012

Timing of CM Training


© 2012 Abbott



June, 2012

The Importance of Timing

• Educate/engage Sponsors EARLY to build commitment

• Involve CAs once project and teams have launched

• Too early is NOT GOOD! Too late is even worse!

• Don’t forget to engage the target audience whenever possible


© 2012 Abbott



June, 2012

Training Timing


© 2012 Abbott



June, 2012

People


© 2012 Abbott



June, 2012

Success Stories - Campoverde

“Implementing a change to the ‘way of doing things’ is always a stress for the organization and Management has to realize that resistance is part of the game.

Change Management is actively smoothing the process.

It is the first time that we add value to the project by proactively identifying and understanding gaps and by setting a powerful communication plan.”

Leonardo DePaolis, Director of Operations

Campoverde Abbott Italy

Executive Sponsor of CM within the Lean Diagnostic Project Teams


© 2012 Abbott



June, 2012

Success Stories - Ludwigshafen

"Of course you can realize small or superficial improvements and changes without a systematic Change Management process.

But as soon as you want to implement major, step changing improvements successfully, you have to anticipate the emotions, thoughts, and behaviors of your most important resource: your employees. This is where Change Management comes into play. The Change Management process offers a systematic way of assessing, analyzing and overcoming the resistance against the desired state.

In this fast changing world, we have to accelerate our pace towards operational excellence, or we will fail to satisfy the needs of our customers - therefore we consider Change Management as a key process to become best in class.”

Thomas Scheidmeir, Director Operations, Ludwigshafen Site

Executive Sponsor of CM for the LU Five Year Plan

Axel Schaaf, Head of CI and Six Sigma

Lead Change Agent


© 2012 Abbott



June, 2012

Success Stories – Neustadt

“At the very beginning of our Class A journey our team completed the sponsor and change agent readiness surveys. The results gave us very good indications to potential stumbling blocks and helped us to make the right decisions with regard to actions and communications as well.

During our first Change Management Training, we developed with the help of John, Joe and Gary our first elevator speech. We have improved our speech several times and always tried to incorporate our employees’ feedback as well. With that speech we were then able to communicate this important message consistently throughout the organization.

Within our plant we had individuals and groups as well who were affected by project activities and had something to gain or lose if conditions would change or stay the same for them. Knowing about that, we used the stakeholder analysis to define the right actions for the right stakeholder. That tool was one of our major tools besides our communication plan which strongly helped us to plan our overall communication during our Class A launch and beyond.”

Philipp Spahn, Business Excellence Manager, Neustadt Site

Project Leader for Class A implementation at site


© 2012 Abbott



June, 2012

A Parting Thought…

Skills Action Plan Support Resources Change

Skills Action Plan Support Resources Confusion

Action Plan Support Resources Anxiety

Skills Action Plan Resources Sporadic

Change

Skills Action Plan Support Frustration

Skills Support Resources False Starts

Chart from Linkage, Inc

Vision

Vision

Vision

Vision

Vision


© 2012 Abbott



June, 2012

Questions?