Change Management

Ashutosh Pande

Overview of Presentation
Significance of Change management Managing Change.Concepts,approaches & critical success factors Building positive Attitudes & Culture Learning from Best practices Facilitating Change Role plays & Exercise

Significance of Distribution
Electricity is the key driver for targeted 810 % economic growth. The role of powers sector/ distribution sector being the touch point with other sectors of economy is crucial. A healthy & Vibrant power sector is the need of the hour Financially viability of SEBs will help in attracting private investment in power sector at internationally competitive tariffs.

Challenge of Reform
Structural reform: SEBs have to work as corporate entities Independent regulator to determine tariffs, monitor performance of the utilities and protect consumer interest Tariff to be de-politicized and reflect cost of supply Private participation in the sector Separate entities for generation, transmission & distribution and their corporatisation for transparency & accountability.

Why is Change so painful

Organization tend to internalize certain culture reflected in common
Belief,values,attitude and norms of behavior

These become the implicit mindset of employees and way of working of the organization

Change so painful because..

We need to give up several habits,thoughts,practices that we found comfortable and which dictated and influenced our actions in the past. We have to unlearn what we have always known as correct We have to learn new skills,behavior practices to adapt to change.

Response to change

No impact Wait & see Changes in Environ ment Anxiety

Followers

Reactive

Blockers

Proactive

Leaders /Innovators

Key Concepts Of Change

Unfreezing
( Creating the motivation to change )

Refreezing
( Stabilizing/integrating changes )

Present State

Transition State

Future State

Three Perspectives on Change

Developmental Change
Improvement of What is

Transitional Change

Old State

New State

Implementation of a known new state.Transition over a controlled period of time Emergence of a new state unknown until it takes shape Time period not easily controlled

Transformational Change Growth Birth Death

Building a sense of purpose

Mission- The basic purpose of the organization Vision- A sense of direction for transition to Future Core Values- Beliefs about responsibility /commitment to customers,employees etc. Policies-The basic framework of guidelines for achieving organizational objectives

Linking people to Strategy

Connect Employee to Customers Develop sense of belongingness

Empower with information & training

Multiskilling & redeployment Develop a sense of entrepreneurship, risk taking & responsibility.

Managing Complex Change

Vision Skills Incentives Resources Action plan

Change Confusion Anxiety

Skills

Incentives

Resources

Action plan

Vision

Incentives

Resources

Action plan

Vision

Skills

Resources

Action plan

Gradual Change

Vision

Skills

Incentives

Action plan

Frustration False Starts

Vision

Skills

Incentives

Resources

Customer is like Lighthouse

Don't expect Customer to change his expectations and preferences. You have to change yourself, your products, and your offerings according to the customer's requirement.

Service Business
A Service is any act or performance that one party can offer to another that is essentially INTANGIBLE and does not

result in ownership of anything.

Characteristics:Intangible, Inseparable,

Variable, Perishable

Determinants of Service Quality

Easy Access Simple/ Clear Communication Competence (Skill & Knowledge) Credibility (trustworthiness) Courtesy Consistency Responsiveness Reliability Assurance/Empathy Tangibles

Who is Your Customer?

The next person (individual or department) in the work place; the receiver of the output and next to act on it.

Payments Convenience

Redressal Management

Consumer Relationshi p

Billing

Meters Reading Fault Management New Connection

Power Reliability Quality

In the Customer Focused Organization All employees Looks at all their activities and output from the point of view of the recipient. Aligns all their activities to maximize customer satisfaction. Applies this philosophy in practice, externally and internally. Focus on both external as well as Internal customer

Customer Interface

In most of the organizations, less than 23% of employees deal with external customers directly. About 75% of employees contribute to the customers experience, but do not meet the customer personally.

Expectation & Experience

Is an attitude that a customer has that form the frame work for judging performance.
An interaction of the customer with any aspect of supplier either face to face or over phone or through letter/memo is A moment of truth

Satisfaction
The measure of the extent to which a Customers experience matches expectation. * 24 hrs call center facility in CPDC,Hyderabad

Quality
What the customer says it is. The whole of tangibles and intangibles that a customer takes into account when evaluating an experience. * For eg.Customer care survey by CPDC,hyderabad has revealed customer are happy to take 4 hrs of planned shutdown rather than 1 hr of unplanned shutdown

Value

The quality of an experience as perceived by the customer, related to its cost.

Delight

A condition in which experience exceeds expectation. e.g setting a standard such as picking up phone after first ring High Value customer meet by NDPL

Customers Top Ten Service Characteristics

Employee attitude.
Receiving an explanations of a problem happened.

Being called back when promised.

Being contacted promptly when a problem is resolved. Being allowed to talk to someone in authority.

Customers Top Ten Service Characteristics - 2

Being told how long it will take to solve a problem. Being given useful alternatives if a problem cant be solved. Providing sufficient information to act on alternatives. Being told about ways to prevent future problems.

Being given a progress report if a problem cant be solved

How to Deal With Customer Complaints

Listen without interrupting the customer.

Show empathy and be willing to help.

Guide the conversation with open question Who /What /Where /When /Why/ How?

Write down the information.

How to Deal With Customer Complaints - 2 Stay With The Customer.

Discuss a resolution and agree a course of action which is acceptable to you and the customer
Act to resolve the customer now, if possible ( if not, set a time by which the problem will be solved.) Make sure the action is carried out.

Keep the customer what all is happening.

When you have to say no!

Listen to the customer. Dont say it is company policy. Empathise with the customer. Acknowledge the content of the complaint and the feeling of the customer. Decline with reason. Suggest an alternative. Ask open ended questions. Repeatedly keep to your point.

Proactive Culture in the organization

Sense of belongingness
Being attentive to minor deviation

Japanese art of Warasukagen

Solving the problem at seed stage

Process & Result criteria

Continuous Improvement

Performance

Support & stimulate

P Criteria

Control with Carrot/Stic

R Criteria

Improving Processes & Results

Variation Closure Gap Closure Dual Role of Individual-disciplined doers and creative thinkers Competencies- Communication, emotional intelligence,knowledge of best practices etc

Kotters approach to Successful Change

Establish a sense of urgency Positive vision of being a premier company Develop a vision and strategy Creating Customer focus at my company Communicate the change vision Empower employees for broad based action Aggressive results oriented training at all levels Generate short-term wins Consolidate gains and produce more change Using annual operating plan and communications program Anchor new approaches in the culture - Champions, Reward & recognition

Change Formula

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Thank you