2. PRESENTATION OUTLINE WHY CHANGE WHY CHANGE WHAT TO CHANGE WHAT TO CHANGE REINFORCING REINFORCING TELKOM KENYA LIMITED

3. WHY ARE WE IN BUSINESS b Make Money Have Fun

4. ECONOMIC & SOCIAL FORCES DRIVING THE NEED FOR MAJOR CHANGE IN ORGANISATION TECHNOLOGICAL CHANGE Faster and better Communication Faster and better transportation More information networks connecting people globally MATURATION OF MARKETS IN DEVELOPED COUNTRIES Slower domestic growth More aggressive exporters More deregulation INTERNATIONAL ECONOMIC INTEGRATION Fewer tariffs (GATT) Currencies linked via floating exchange rates More global capital flows FALL OF COMMUNIST AND SOCIALIST REGIMES More countries linked to the capitalist system More privatization MORE HAZARDS More competition Increased speed MORE OPPORTUNITIES Bigger markets Fewer barriers THE GLOBALISATION OF MARKETS AND COMPETITION MORE LARGE-SCALE CHANGE IN ORGANISATIONS To avoid hazards and/or capitalize on opportunities, firms must become stronger competitors. Typical transformation methods include: Reengineering Mergers and acquisitions Restructuring Strategic change Quality Programmes Cultural change

5. FOCUS OF CHANGE PEOPLE & BEHAVIOURS PROCESSES TOOLS

6. WHERE ARE YOU? Stage 1Stage 11Stage 111Stage lV Organization Central PeopleR O B O T SPEOPLE Materials ProcessLong setup Single purpose batch Rapid setup Multi purpose flow MethodsCommand controlProblem solving teamwork TrustHardly anyLittleSomeA great deal

7. BREAKING TRADITIONS FACTORSTRADITIONALIT INVENTORYASSETLIABILITY LOT SIZESFORMULASIMMEDIATE NEEDS SET UPSACCEPTMINIMISE QUEUESINVESTMENTELIMINATE SUPPLIERSADVERSARIESCO-WORKERS QUALITYTOLATE SCRAPZERO DEFFECTS MAINTENANCEREMEDIALPREVENTIVE LEAD TIMESLONGERSHORTER WORKERSFOLLOWERSTHINKERS

8. Holistic Initiatives Profits EOS Soft Hard BPR GO COST Organized Common Sense

9. Management of People Stages 1,11,111Stage IV Traditional and staticBroad potential, and dynamic MANAGEMENTMANAGEMENT PowerIs natural resourcesIs knowledge OrganizationIs built on hierarchyIs built on synergy/matrix ManagementIs by command and controlIs by empower and coach SupervisorsFlourishVanish EmployeesTake ordersMake team decisions LeadershipIs by warriorsIs by facilitators FocusIs on shareholdersIs on customers RelationshipsFocus on the individualFocus on the team StatusIs gained by seniorityIs gained by creativity ProductivityIs measured by productionIs measured by quality EverybodyIs a competitorIs a customer

10. COMMUNICATION Stage 1 Exploitative Stage 11 Benevolent Stage 111 Consultative Stage IV Participative Authoritative Group COMMUNINICATIONCOMMUNINICATION How much communication is aimed at achieving the organization's objectives Very littleLittleQuite a bitA great deal What is the direction information flow? DownwardMostly downward Down and upDown, up and sideways How is downward communication accepted? With suspicion Possibly with suspicion With cautionWith an open mind How accurate is upward communication? Often wrongCensored for the boss Limited accuracy Accurate How well do superiors know problems faced by subordinates? Know littleSome knowledge Quite wellVery well

11. BIG Q b IS THE PROBLEM MANAGING ORLEADING???

12. MANAGEMENT VERSUS LEADERSHIP Produces a degree of predictability and order and has the potential to consistently produce the short-term resuslts expected by various stakeholders (e.g, for customers, always being on time; for stockholders, being on budget) Produces change, often to a dramatic degree, and has the potential to produce extremely useful change (e.g new products that customers want, new approaches to labour relations that help make a firm more competitive) LEADERSHIP Establishing direction: Developing a vision of the future – often the distant future-and strategies for producing the changes needed to achieve that vision Aligning people: Communicating direction in words and deeds to all those whose cooperation may be needed so as to influence the creation of teams and coalitions that understand the vision and strategies that accept their validity Motivating and inspiring: Energizing people to overcome major political, bureaucratic, and resource barriers to change by satisfying basic, but often unfulfilled, human needs. MANAGEMENT Planning and budgeting: Establishing detailed steps and timetables for achieving needed results, then allocating the resources necessary to make it happen Organizing and staffing: Establishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, and creating methods or systems to monitor implementation. Controlling and problem solving: Monitoring results, identifying deviations from plan, then planning and organizing to solve these problems Produces a degree of predictability and order and has the potential to consistently produce the short-term resuslts expected by various stakeholders (e.g, for customers, always being on time; for stockholders, being on budget) Produces change, often to a dramatic degree, and has the potential to produce extremely useful change (e.g new products that customers want, new approaches to labour relations that help make a firm more competitive)

13. THE TRUTH ABOUT SUCCESS b SUCCESSFUL CHANGE IS 70-90 PERCENT LEADERSHIP b MANAGEMENT ACCOUNTS FOR 10-30 PERCENT

14. ESTABLISHING A SENSE OF URGENCY Establishing the market and competitive realities Dealing firmly with sources of complacency Identifying s. w. o. t. s.

15. WHY A TEAM? NO INDIVIDUAL IS EVER ABLE TO DEVELOP THE RIGHT VISION COMMUNICATE IT TO A LARGE NUMBER OF PEOPLE ELIMINATE ALL THE KEY OBSTACLES LEAD AND MANAGE DOZENS OF CHANGE PROJECTS WEAK COMMITTEES ARE EVEN WORSE!!

16. PEOPLE TO AVOID THOSE WITH EGOS THAT FILL UP THE ROOM, LEAVING NO SPACE FOR ANYBODY ELSE SNAKES – PEOPLE WHO CREATE ENOUGH MISTRUST TO KILL TEAM WORK RELUCTANT PLAYER

17. THE RIGHT PEOPLE STRONG POSITION POWER, BROAD EXPERTISE, AND HIGH CREDIBILITY GOOD LEADERSHIP AND MANAGEMENT SKILLS CREATE TRUST -OFF-SITE EVENTS -LOTS OF TALK AND JOINT ACTIVITIES

18. DEVELOP A COMMON GOAL SENSIBLE TO THE HEAD APPEALING TO THE HEART

19. DEVELOPING A VISION AND STRATEGY CREATING A VISION TO DIRECT THE CHANGE EFFORT DEVELOPING STRATEGIES FOR ACHIEVING THAT VISION

20. COMMUNICATING THE CHANGE VISION USING EVERY VEHICLE POSSIBLE TO CONSTANTLY COMMUNICATE THE NEW VISION AND STRATEGIES HAVING THE GUIDING COALITION ROLE MODEL THE BEHAVIOUR EXPECTED OF EMPLOYEES

21. EMPOWERING BROAD BASED ACTION GETTING RID OF OBSTACLES CHANGING SYSTEMS OR STRUCTURES THAT UNDERMINE THE CHANGE VISION IDENTIFYING AND DISCUSSING CRISES OR MAJOR OPPORTUNITIES

22. EMPOWERING PEOPLE TO EFFECT CHANGE COMMUNICATE A SENSIBLE VISION TO THE EMPLOYEES MAKE STRUCTURES COMPATIBLE WITH THE VISION PROVIDE THE TRAINING EMPLOYEES NEED ALIGN INFORMATION AND PERSONNEL SYSTEMS TO THE VISION CONFRONT SUPERVISORS WHO UNDERCUT NEEDED CHANGE

23. GENERATING SHORT-TERM WINS PLANNING FOR VISIBLE IMPROVEMENTS IN PERFORMANCE, OR IMPROVEMENTS IN PERFORMANCE, OR WINS CREATING THOSE WINS VISIBLY RECOGNISING AND REWARDING PEOPLE/TEAMS WHO MADE THE WINS POSSIBLE

24. FORMS OF WASTE WATING REWORK MOTION (PEOPLE) TRANSPORTATION (MATERIALS) STORAGE OVER-PRODUCTION OVER-PROCESSING

25. CONSOLIDATING GAINS AND PRODUCING MORE CHANGE USING INCREASED CREDIBILITY TO CHANGE ALL SYSTEMS, STRUCTURES, AND POLICIES THAT DONT FIT TOGETHER AND THAT DONT FIT THE TRANSFORMATION VISION HIRING, PROMOTING, AND DEVELOPING PEOPLE WHO CAN IMPLEMENT THE CHANGE VISION REINVIGORATING THE PROCESS WITH NEW PROJECTS, THEMES, AND CHANGE AGENTS

26. WHY MORE RESISTANCE IS ALWAYS AWATING TO REASSERT ITSELF PROBLEM OF INTERDEPENDENCE - WHAT HAPPENS IN SALES HAS IMPLICATIONS TO SUPPLIES ELIMINATION OF FALSE CUSTOMERS INCREASE VELOCITIES

27. ANCHORING NEW APPROACHES IN THE CHANGE CREATING BETTER PERFORMANCE THROUGH CUSTOMER AND PRODUCTIVITITY – ORIENTED BEHAVIOUR, BETTER LEADERSHIP AND EFFECTIVE MANAGEMENT ARTICULATING THE CONNECTIONS BETWEEN NEW BEHAVIOUR AND ORGANISATIONAL SUCCESS DEVELOPING MEANS TO ENSURE LEADERSHIP DEVELOPMENT AND SUCCESSION

28. WHAT IS CULTURE CULTURE REFERS TO THE NORMS OF BEHAVIOUR AND SHARED VALUES AMONG A GROUP OF PEOPLE IT POWERFULLY INFLUENCES HUMAN BEHAVIOUR ITS DIFFICULT TO CHANGE AND BEING INVISIBLE MAKES IT HARD TO ADDRESS DIRECTLY YOU CANNOT EASILY MANIPULATE

29. ANCHORING CHANGE IN A CULTURE REQUIRES A LOT OF TALK -WITHOUT VERBAL INSTRUCTION AND SUPPORT, PEOPLE ARE OFTEN RELUCTANT TO ADMIT THE VALIDITY OF NEW PRACTICES MAY INVOLVE TURNOVER -SOMETIMES THE ONLY WAY TO CHANGE A CULTURE IS TO CHANGE KEY PEOPLE

30. ANCHORING CHANGE IN A CULTURE MAKES DECISION ON SUCCESSION CRUCIAL - IF PROMOTION PROCESSES ARE NOT CHANGED TO BE COMPATIBLE WITH THE NEW PRACTICES, THE OLD CULTURE WILL REASSERT ITSELF TELKOM KENYA LIMITED