OLD PARADIGMS NEW PARADIGMS

THE BUSINESS Ore-Mining Exploitation Mining-Based Processing

Up-stream industry Down-stream industry
THE Local and Domestic Global and International
OPERATIONS organization (Mind-set) Operations (Mind-set)
Local standards World-class standards
THE QUALITY Good organization Great Institution
THE PEOPLE People = Costs People = Human Capital,
Strategic Assets and
Strategic Partners
LEADERSHIP Managers are promoted Leadership is earned. You
do not need a title to be a
leader.
Transactional Leaders Transformational Leaders
So I have to change all the Effective Managers Effective Leaders deliver
ways that I have done….. should be nice and kind. results.
LEADERSHIP Survival of the fittest (By Development of the fittest
DEVELOPMENT Nature) (By Nature + Nurture)

OLD PARADIGMS NEW PARADIGMS

THE CULTURE Strategy and Culture are Culture can drive or drag OLD PARADIGMS NEW PARADIGMS
independent and Strategy EMPLOYMENT Attracting mediocre Employee of Choice – Ability
standing alone people to attract the best talent
Build Any Culture Build High Performance The dullest = the Employer of Choice – Ability
Business Culture brightest to retain the best people
DEVELOPMENT Training Learning Life-time employment Life-time employability
Class Training – Learning can be any where and KNOWLEDGE Knowledge = Knowledge is the ability to
Training is one way & by any means. The role of Certification act
knowledge transfer. Interventions are key. BUSINESS Business is dirty, the Business with ethics.
Training = Costs (Key Development = Investment ends justify the means. Business is noble. To
word: REDUCE!) (Key word: MEASURE THE improve the quality of life of
RETURNS!) mankind.
COST Efficiency Effectiveness (Cost Conscious- Business is complex. Business is simple. The
ness is still important) You need sophisticated business principle uses
solutions to play. common sense.
Bureaucratic Operations Speedy + Agile Operations
H.C Staffs Administrators Performance Consultant

Change Management 1
 Turning Point
• Leader must possess the discipline, determination, and “The road stop here, what got you here, won’t get you
courage necessary to get the job done. “A unique feature of there”
the human brain is its ability to form mental images of the
future and to translate these images into reality though
leadership and action”. Good

• Leaders must possess more than vision and values. They Second
must discipline, energy, determination, zeal, and courage to Curve
carry them through the difficult periods and more
important, to keep them moving forward during thee good
times as well. First Curve

Strategic Scenario - A Transformation Approach

STRATEGIC
* Theory E
Long-Term Strategic TARGETS
Theory E has as its purpose the creation of economic value, often
Plan Scenario expressed as shareholder value. Its focus on formal structure and
History
Old Paradigms
Extrapolation Interpolation systems. It is driven from the top down with extensive help from
Projection
Industrial Economy GAP consultants and financial incentives. Change is planned and
Continuous Improvement
STRATEGIC
BAU
programmatic
INITIATIVES

* Theory O
Future Vision Theory O has as its purpose the development of the organization’s
New Paradigms human capability to implement strategy and to learn from actions
Knowledge Economy
Innovation and Breakthrough taken about the effectiveness of a changes made. Its focus is on
the development of a high – commitment culture. Its means
consist of high involvement, and consultants and incentives are
2003 2008 (2012) 2003 2011 (20XX) relied on far less to drive change. Change is emergent, less
planned and programmatic

THE ROAD STOPS HERE

Change Management 2
 Dimensions Theory E Theory O Theory E and O Combined
Of Change

Goals Maximize shareholder Develop organizational Explicitly embrace the paradox

Theories E and O of Change value capabilities between economic value and
organizational capabilities

Purpose & Means Theory E Theory O Manage change Encourage participation Set direction from the top
Leadership from the top down from the bottom up and engage the people below

Purpose Maximize economic value Develop organizational

capabilities Focus Emphasize structure Build up corporate Focus simultaneously on the
and systems culture, employees’ hard (structures and systems)
behavior and attitudes and the soft (corporate culture)
Leadership Top – down Participative
Process Plan and establish Experiment and evolve Plan for spontaneity
programs
Focus Structure & systems Culture

Planning Programmatic Emergent Reward System Motivate through Motivate through Use incentives to reinforce
financial incentives commitment – use pay change but not to drive it
as fair exchange
Motivation Incentives lead Incentive lag
Use of Consultants analyze Consultants support Consultants are expert
Consultants Large/knowledge – Small/process driven Consultants problems and shape management in shaping resources who empower
driven solutions their own solutions employees

Fundamental Change
Generate energy, allocate resources, shift paradigms,
MANAGEMENT develop transformation team, develop
CHANGE transformational leaders at all levels

Product portofolios, market repositioning, value

• Incremental Change Strategy – taking STRATEGY proposition, competitive advantages, the winning
necessary changes in sequential order CHANGE formula, business success model (KPI, strategic
initiative)

• Fundamental Change Strategy – the whole STRUCTURAL Realignment and rebuilding of policies, management
organization and its relationship will systems, organization structures, business processes,
CHANGE enabling technology
simultaneously change

Cultural assessment, value definition, a set of

CULTURAL
behaviors, socialization, internalization,
CHANGE externalization (Moments of Truth), reassessment

Change Management 3
 The Strategy Model for Fundamental Change The Business Transformation Implementation of
CULTURE Change Model (Simplified Framework)

Business Acumen

A Culture of Excellence
1. Anticipate Change
2. Generate
PEOPLE TECHNOLOGY CHANGE Confidence
3. Initiate action
4. Liberate thinking
STRATEGY 5. Evaluate results
KPI & Goals BUSINESS
PROCESS CHANGE 1. Phase One: Results
Strategic Initiatives TRANSFORMATION
LEADERSHIP STRUCTURE & SYSTEMS FOCUSED
Communicate



Results-Based EXECUTION
Accountability Vision, Strategy

Transformational Management Disciplines Relationship

Relationship and
commitment
Reward/Incentives PEOPLECHANGE 2. Phase two:
Fast Target
RESULTS 3. Phase three :
Build on going
HUMAN capability
CAPITAL CHANGE THE SOCIAL

Fundamental, Strategic and Comprehensive CAPITAL

First WHO then WHAT

How a
Phases of a change

Post- person
implementation Successful perceives
problems
Change
Implementation
A person’s
Credibility of
view of the
the sender
current state
Awareness
project

Concept and of
Design the need for
Change

Business
Need Context Circulation
stability of
of the misinformati
Awareness Desire Knowledge Ability Reinforcement reasons on
for change or rumors
Phases of a change for employees
Awareness

Change Management 4
 Nature of A person’s
the current
change and knowledge
WIIFM base

Desire to
Access to
support Organizatio
or Knowledge Capability of
Intrinsic and nal
existence of how to the person
motivator participate context to learn
of required change
in the and history
knowledge
change

Resources
available to
Personal
provide
situation education
and training

Desire Knowledge

Degree to
which
Psychological reinforcement
blocks is
meaningful

Availability of
resources to Physical
support skill abilities
Ability to Accountability Association of
development Reinforcements
implement systems reinforcement
new to sustain
to reinforce with
skills and the change
the change accomplishment
behaviors

Time
available
Intelectual
to develop Absence of
capability
needed negative
skills consequences

Ability
Reinforcement

Change Management 5