Leading Change @ Vestas Leading @ Vestas VAME Business Academy You’ll need: 4-5 100-piece puzzles 4-5 sets cloth gloves flipcharts markers Change Communication Planner (1 for each attendee)

Leading Change @ Vestas When you reflect on change at Vestas, which image best represents your thoughts and why? • A gentle breeze • A severe and violent thunderstorm • An tree-cracking ice storm • A ray of sunshine • A pea soup fog Leading Change @ Vestas VAME Business Academy 2

Global Leadership Role Model - the three “gettings” as a balanced approach How does LEADING CHANGE fit into the LRM? Getting ahead Driving the future Making change essential Understanding the business Leading performance and projects Building the organisation, team, function and knowledge Getting along Creating successful and long term relations inside and outside Vestas Leading change by living change Acting consistently and taking responsibility Motivating people Breaking down silos Getting things done Putting the right people in the right roles at the right time Making change happen and stick Striving for continuous improvements Driving performance and projects Developing capabilities Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas “Homework” review Our Iceberg is Melting by John Kotter How Obama is Using the Science of Change by Michael Grunwald What are your thoughts on the readings? Do we have major change initiatives happening right now? Have they been rolled out effectively? Did Vestas follow any discernable plan in rolling out the change? What did you learn from the book and/or the article? Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Course Objectives In this course, you will learn to: Understand natural reactions to change Recognize the effects of change on an organization Maximize your organization success factors for dealing with change Recognize and overcome resistance to change Develop a plan for introducing, leading, and sustaining change Leading Change @ Vestas VAME Business Academy

Change in your Organization “CHANGE is the only constant at Vestas” How many times have you heard this? Vestas is a growing company. As we grow, we change to make things better, more efficient. But change can be difficult. What is a change you are experiencing right now? Discuss with a partner. It’s YOUR job to make change easier, more popular. HOW?? Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Activity Each team represents a work unit Each puzzle represents a project in process Your team’s goal is to put its puzzle together in time for delivery to a customer Your team will have 10 minutes to put the puzzle together Each team member has a specific role in the process. Separate class into teams of 4. Have each team work around 1 table. Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Activity Framer – looks for border pieces and gives them to puzzle maker to put together Sorter- organizes the remaining puzzle pieces by color and gives them to the puzzle maker to put together Puzzle maker- Puts together the puzzle pieces- NOT allowed to look for border pieces or sort pieces by color Team leader- offer support and guidance, but cannot provide hands-on help in assembling the puzzle Don’t allow team members to mix roles! I will be the Production Manager Explain roles and assign or let them self-select for each team. Give 2ish minutes before first stop, then 1-2 minutes thereafter. Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Activity STOP!! Safety regulation update Need to talk to the Leaders New safety equipment for team puzzle makers No time to explain why new regulations are happening! Pull leaders up to front of room, hand out one pair of cloth gloves to each. Explain that the Puzzle Makers are to wear the PPE from now on. Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Activity STOP!! Need to increase efficiency- rush order!!!! Reassignment Framer and sorter from each team move to the team on the right (when facing table) Don’t add any reasoning, just reassign. Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Activity STOP!! Need to improve productivity Cross-training Sorter becomes puzzle maker Puzzle maker becomes framer Framer becomes sorter Don’t add any reasoning, just re-assign. Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Activity STOP!! Customer demand is critical Deadline is moved up! Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Activity De-brief How did you feel going through this process? How did you feel when the leader told you about the changes? Think of the changes you identified earlier. Why are those changes occurring? How do people feel about the change? The way in which change is viewed and how it is communicated can make a big difference in how readily people may accept and commit to it. Flipchart responses to first 2 questions these are the effects of change on teams Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Responses to Change People typically respond to change in a natural pattern. Each person will move through the pattern at his/her own pace: Disorientation: confusion & anxiety Why is this happening? What does it mean? What do I do? Reorientation: acceptance & control What can I do to make this happen? What are the issues and priorities? What support do I need? Integration: routine & habit What else can I do to make this work? What other improvements can be made? Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Responses to Change How can we help our teams move through these steps? Disorientation: confusion & anxiety Why is this happening? What does it mean? What do I do? Reorientation: acceptance & control What can I do to make this happen? What are the issues and priorities? What support do I need? Integration: routine & habit What else can I do to make this work? What other improvements can be made? Divide class into 3 groups, assigning each group a step. Ask each group to flipchart: 1. what each step looks like and 2. the ways that they can help their employees with the step. Give 10-15 minutes, depending on discussion level. Then share as a class, gathering other ideas from other teams as well. Leading Change @ Vestas VAME Business Academy

Organizational Success Factors for Change View change as an opportunity Accept that people approach change differently Gather and share information openly Anticipate barriers Prepare people Lead by example The more we can maximize the success factors, the easier change can be. Leading Change @ Vestas VAME Business Academy

Change Communication Planner The Change Communication Planner can help you prepare for changes, and increase your organizational success factors. - go through guide, explaining each part Leading Change @ Vestas VAME Business Academy

Change Communication Planner Think about a change your team is experiencing now or will experience in the near future. Complete page 1 of your Change Communication Planner on your own. Then share with a partner. Give 5-10 minutes to work on their own, then 5-10 minutes to discuss. Ask anyone if they’re willing to share with the class. Discuss how being prepared for introducing change and implementing change can make change easier for your team. Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Resistance to Change People naturally resist change Resistance often occurs when people feel they can’t control circumstances or predict the impacts on them Even positive changes can lead to resistance Discussing their resistance openly and honestly will help you achieve more acceptance of the change What are some of the things you wrote on your Change Communication Planners about the barriers to change? Discuss as a class the barriers to change they came up with. Leading Change @ Vestas VAME Business Academy

Overcoming Resistance to Change Recognize and talk about the changes and challenges Ask and listen Involve people in identifying new ways and solutions Take actions to help people contribute to the new, and support and reinforce those actions Talk at the tables about the barriers to change written on the planners. Have them come up with potential solutions as a group. Allow 10ish minutes. Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Implementing Change Make it CLEAR. Studies show that better information helps us make better choices. Make it EASY. Research also shows that people do what’s easiest. Make it hassle-free. Make it POPULAR. Appeal to conformity - we’re in this together – be consistent – measure, report, reward. Make it MANDATORY. It must be required for it to happen. It is not optional. Flipchart ideas for how to do these 4 things. Split into 4 teams. Give 10ish minutes then report out. Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Preparing for Change Do you have a team of people around you to help you implement changes? Obama has his advisors Louis the Penguin has Alice, Buddy, the Professor, and Fred Is it important to remind your team who the team really is? How can you make the change popular? How many people on your team think that the change is a good idea? How many are against it? What old rules are in the way of making the change happen that need to be bent or thrown away? How can you keep up momentum on the new way of doing things? Leading Change @ Vestas VAME Business Academy

Change Communication Planner Thinking about the steps we just discussed and the questions we went over, complete page 2 of your change Communication Planner. Then share with a partner. Make change CLEAR. Give 5-10 minutes to complete planner, then 5-10 minutes to discuss. Ask someone to share with the class. Make change EASY. Make change POPULAR. Make change MANDATORY. Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas We’ve talked about… Natural reactions to change The effects of change on an organization Organization success factors for dealing with change Recognizing and overcoming resistance to change How to introduce, lead, and sustain change (the 4 steps) Review the 3 reactions to change: disorientation, reorientation, integration. Have them name some organization success factors: view change as an opportunity accept that people approach change differently gather and share information openly anticipate barriers prepare people lead by example Review how to overcome change: recognize & talk about changes & challenges ask & listen involve people help people contribute to the new, & support & reinforce their actions when they do Implementing change: Make it Clear Easy Popular Mandatory Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas How will you implement change going forward? Leading Change @ Vestas VAME Business Academy

Leading Change @ Vestas Thank you Leading Change @ Vestas