Change Management Prof. Steve Phelan Lecture 11

Today LMZ Chs  Centers of excellence (1996)  Building a learning organization (1993)  Fast cycle OD (2000) Merger Plan Simulation

Centers of Excellence Basic concept  The COE is a place to share and build knowledge for time-based competition and customer satisfaction  Total redesign of organization to give all employees two managers A COE manager responsible for training, disseminating knowledge and experience, and administering base salary in your area of expertise A project manager responsible for performance, variable compensation, and identifying training needs Is this all necessary? Will it work?

Garvin – Learning Organizations In most discussions of organizational learning, 3 critical issues are left out  a plausible definition of learning organizations  clear guidelines for practice  tools for assessing the rate and level of learning Definition  an organization skilled at creating, acquiring and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights

Garvin ctd Distinctive Policies  an environment conducive to learning  open boundaries that stimulate flow of information  learning forums  systematic problem solving  experimentation with new approaches  learning from your own experiences and history  learning from the experiences and best practices of others  transferring knowledge quickly and efficiently throughout the organization

Garvin ctd Distinctive practices  insisting on data rather than assumptions (PDCA)  an incentive system that favors risk-taking  demonstration projects that start with a clean slate  widely disseminated case studies and post-project reviews of successes and failures - concept of learning from mistakes  training in best practice  transferring and rotating staff - learning by doing

Fast Cycle OD ZZZZzzzzzzzzzzzzz  Become business savvy Understand finance and strategy  Understand the business Content rather than process  Add bottom line value in your interventions  Become faster Very little tangible advice on how to do this

The Merger Plan Simulation Task  Develop a formal integration plan (with decisions on branch closures, systems conversion, product alignment, layoffs, and communication strategy) that will maximize shareholder value while keeping as much support as possible from the stakeholders at the two banks and external organizations.  5 minutes = 1 news cycle = 1 day

Roles Integration manager 2 HR directors 2 Heads of Retail Banking Rest to choose from:  Largest customers, newspaper editors, funds managers, regulators, banking unions, CIOs, CFOs