Managing Change in a Positive Environment Coming to

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Managing Change in a Positive Environment “Coming to work is like winning the lottery

Managing Change in a Positive Environment “Coming to work is like winning the lottery every day” Gifford Tanser

Boehringer Ingelheim • • • Family owned Successful and profitable • chronic diseases •

Boehringer Ingelheim • • • Family owned Successful and profitable • chronic diseases • blockbusters • good product pipeline Excellent workplace • 100 Best companies • Pharma. Field survey – No. 1 for last 3 years No significant mergers or acquisitions UK & Ireland headcount • 2009 – 930 • 2011 – 650? 2

Corporate Organisation Christian Boehringer Chairman of the Shareholders’ Committee Dr Andreas Barner Chairman of

Corporate Organisation Christian Boehringer Chairman of the Shareholders’ Committee Dr Andreas Barner Chairman of the Board of Managing Directors Dr Andreas Barner Dr Engelbert Tjeenk-Willink Hubertus von Baumbach Dr Wolfram Carius 3

ROPU UK and Ireland Country Managing Director UK and Ireland "Double Hat" Role Communications

ROPU UK and Ireland Country Managing Director UK and Ireland "Double Hat" Role Communications HR F&A Medical PM CHC AH 4 MP

Business Context • • Pharma is complicated and competitive Huge R&D costs - £

Business Context • • Pharma is complicated and competitive Huge R&D costs - £ 1. 5 bn per discovery of a new product Long time horizons – 11 years from patent to launch Changing NHS 5

Business Challenge Perfect storm • 5 potential blockbusters in 2 years • Cost of

Business Challenge Perfect storm • 5 potential blockbusters in 2 years • Cost of launch is huge, where does it come from? • Double the size of our organisation (sales) - how get ready for this? How do we release cash? • • Benign ‘family’ atmosphere No immediate need for change – no preparation 6

What Have we Done to Release Cash? • November – December 2009 • Full

What Have we Done to Release Cash? • November – December 2009 • Full restructuring of Prescription Medicine - 48 (out of 350) redundancies - 27 changes of role • Restructuring of HR - 8 people out of 31 redundant - Year 1 of 3 programme • April 2010 • Announcement of European Finance Shared Services • March 2011 redundancies • IS changes? 7

What are we Doing/Have we Done? • • • UK & Ireland Country Managing

What are we Doing/Have we Done? • • • UK & Ireland Country Managing Director BI Change Approach – Principles & Model – Mee-Yan Cheung Judge Emotional dimensions of change – Susan David William Bridges – Managing Transitions Values – Senge/Schein/Mee-Yan/CAPP – Alex Linley 8

BI Change Principles Adopt a ‘total system’ approach to change … … based on

BI Change Principles Adopt a ‘total system’ approach to change … … based on data gathering and diagnosis … Review Gather data Implement Plan intervention … that places solution identification and implementation with those that need to own it. Analyse & diagnose Feedb ack 9

Emotional Dimensions of Change (Susan David) Announcements/Presentations • Early communication of events – no

Emotional Dimensions of Change (Susan David) Announcements/Presentations • Early communication of events – no surprises & ‘warm up’ • Sound business case • Negative consequences of not taking action • Go to emotions – acknowledge range of emotions • Demonstrate senior management confidence in the future Speed • Fast restructuring – using line managers 10

The Human Transition Process Phases of Transition Management New Beginnings Neutral Zone Endings William

The Human Transition Process Phases of Transition Management New Beginnings Neutral Zone Endings William Bridges © Quality & Equality Ltd 11

Phases of Transition Endings Loss • Letting go • Getting closure • Saying good-bye

Phases of Transition Endings Loss • Letting go • Getting closure • Saying good-bye Neutral Zone In-between time • Chaos • The wilderness Beginnings Being “with it” • The new chapter • Renewal © Quality & Equality Ltd 12

Managing Transition • Celebrating the past – time lines • Ask ‘Fred’ sessions •

Managing Transition • Celebrating the past – time lines • Ask ‘Fred’ sessions • Acknowledging chaos – planning activities out of it 13

 “What people pressuring for management to “drive” culture change don’t understand is: A

“What people pressuring for management to “drive” culture change don’t understand is: A value is only a value when it is voluntarily chosen. ” (Senge 1999) 14

Managing Transition – Exploring the Magic • • Graffiti Wall 300 – 350 pre-

Managing Transition – Exploring the Magic • • Graffiti Wall 300 – 350 pre- interviews Interviews with customers 140 people in a room • Principles and Characteristics • Wishes into actions • Change approach in action 15

Recent Business Results • • • Spiriva performance Mirapexin performance Pharma. Field survey 16

Recent Business Results • • • Spiriva performance Mirapexin performance Pharma. Field survey 16