Change Management and the importance of culture

1. Change Management
and the importance of culture
April 20th 2017
André Knüppel

2. 2
REC WAFER IN THE INTEGRATED VALUE CHAIN

3. 3
"I'll go anywhere as long as it's forward.“
David Livingstone

4. 4
BUSINESS CASE
THE REC WAFER CHALLENGE IN 2010
No new products launched
Long lead-time from idea to industrialization
No clear common business case between
Sales, R&D and Operations
Negative trend in LTI/TRI
Several emission breaches
HSE
Unit cost far from budgeted levels
Local organization had no clear
understanding of global competition
Claims > 2.5% of net sales
Solar Efficiency 0.3-0.5% behind
competition
Old plants “disqualified” as wafer suppliers
QualitySpeed
Cost
No customer oriented and people empowered performance culture
No supporting structure

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OVERALL IMPROVEMENTS ACHIEVED
Quality
Cost
Two new products launches
in 6 months (XP & XP+)
MonoCast – technology
demonstrated in 8 Months (vs
3 years for competitors)
Speed
Cost
Quality
HSE
Quality
Cost
Speed
Output
All without CAPEX – only investing in PEOPLE and METHODOLOGY

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>70% PRICE REDUCTION IN ONE YEAR
$ 0,00
$ 0,50
$ 1,00
$ 1,50
$ 2,00
$ 2,50
$ 3,00
$ 3,50
$ 4,00
januari
januari
februari
februari
mars
mars
mars
april
april
maj
maj
juni
juni
juli
juli
augusti
augusti
augusti
september
september
oktober
oktober
november
november
december
december
januari
januari
februari
februari
februari
mars
mars
april
april
2011 - 2012 Wafer prices $/pcs, 156mm wafers
(source: PV Insights taiwan)
Spot Multi Wafer
Cost Multi Wafer
What if we had started earlier?

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STILL ALIVE AND KICKING

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CULTURE VS STRUCTURE

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OUR EXPERIENCE BASED MODEL
Aligning Strategy, Structure and Culture for successful implementation
Misaligned culture and structure disrupt execution of strategy

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WHAT IS CULTURE?
“A learned body of tradition that governs what we think, feel and do”
” The way we do things around here”
“The values and behaviors that contribute to the unique social and psychological
environment of an organization”
Gideon Kunda (2006)
Thomas J. Watson
www.businessdictionary.com/definition/organizational-culture.html

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HOW TO ASSESS A CULTURE
◦ Observations
◦ Interviews
◦ Focus groups
◦ (Survey)
It’s about qualitative research

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MINDSET IS THE FOUNDATION
Behaviour
Artifacts
Personal Values
and Norms
Cultural Values
and Assumptions
Can often be
observed
Can rarely be
observed
Kim S. Camron & Robert E. Quinn

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CURRENT STATE
FORCE FIELD ANALYSIS ORGANISATIONAL CULTURE
Driving forces
(Positive forces for change)
Restraining forces
(Obstacles for change)
o Sense of urgency
o No clear and obvious “burning platform” There wasn’t a
purpose to believe in
o “What if…” was not clearly understood
o Management
o Centralized management far from Gemba
o Unsecure leadership; long lead-time until problems were
resolved
o Reinforcement systems
o Talked about Safety and Quality, but bonus on Volume &
Yield
o Ability & will to change
o No or less experience from other competitive industries
o No performance culture existed
o No supporting structure
o Strong company identity
o Diverse workforce
o New plants
o Wish to change
o Good team spirit
ONE
performance culture,
strong customer
orientation and
people
empowerment
It is critical to understand how the company's cultural and structural systems are empowering or hindering the company to achieve the
goals ahead

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CHANGING CULTURE
Should we change culture – can we change it?
o What to change
o Diagnosing culture
o Reducing the problem: from general culture to specific business driven problem areas
o Specifying behavior that supports the desired culture
o How to change: levers of change
o Management as symbolic action
o Changing artifacts: space, technology, language, ritual etc.
o The reward system: what is it and what behavioral, cognitive and affective rules does it support
o Managing careers and staffing: recruiting, hiring, promotion, creating and socializing managers
Cultural change starts with YOU!

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FUTURE STATE
REC WAFER HERØYA VISION WAS TO BECOME THE CUSTOMERS PREFERRED SUPPLIER
ONE performance culture, characterized by
strong customer orientation and people empowerment

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ALL IMPROVEMENTS WERE BASED ON REC BUSINESS SYSTEM
FOCUS ON LEADING INDICATORS
Man
Method
Materials
Machine
HSE
Quality
Cost
MeasurementSystem
Speed
Management
Output

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A BUSINESS SYSTEM SHOULD NOT BE ABSTRACT
IT IS AN ILLUSTRATION OF HOW WE WORK (OUR CULTURE)

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CHANGE MANAGEMENT

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THE ICEBERG IS MELTING

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JOHN P KOTTER'S EIGHT STEPS TO SUCCESSFUL CHANGE
Creating climate for change
Engaging & enabling the
organization
Implementing &
sustaining the change
'The Heart Of Change' (2002) describe a helpful model for understanding and managing
change. Each stage acknowledges a key principle identified by Kotter relating to people's
response and approach to change, in which people see, feel and then change.
Kotter's eight step change model can be summarised as:
1. Increase urgency - inspire people to move
2. Build the guiding team - get the right people
3. Get the vision right - emotional and creative aspects
4. Communicate for buy-in - Involve as many people as possible
5. Empower action - Remove obstacles, enable constructive feedback
6. Create short-term wins - Set aims that are easy to achieve - in bite-size
chunks.
7. Don't let up - Foster and encourage determination and persistence
8. Make change stick - Weave change into culture.

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PRACTICAL EXAMPLES FROM REC WAFER HERØYA
Kotter steps Herøya 4 factories 25 Improvement Program
1. Increase urgency • Understand business case incl culture & structure • Clear goal for survival
2. Build the guiding team • New organization – emphasis on quality and
improvements
• Recruit from other industries
• Cross functional team including R&D
• One step lower in the organisation
3. Get the vision right • Both short and long term
• Focus on what WE can do
• Leaders to take lead
• Stretch Goal!
4. Communicate for buy-in • Monthly town hall meetings
• Leadership and team program
• Leaders visible at the shop floor
• Monthly meeting
• 25 boards in factory cantina
• Line meetings
5. Empower action • Create ownership lower in the organization – step by
step
• Training of all staff in methodology
• Leaders ask for methodology usage
• Cross functional teams in 6 subprograms with 4-5
projects each
6. Create short-term wins • Weekly price for improvements • Weekly price for improvements
7. Don't let up • Weekly news letter on achievements
• Weekly improvement goals
• Weekly news letter on achievements
• Weekly improvement goals
• Daily program meetings
8. Make change stick • 4M assessment and improvement plans • Control plan for each improvement

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SUMMARY AND KEY TAKE AWAYS
o Do not underestimate the organizational CULTURE
o Systematic approach of how to change elements in the culture
o Leadership is responsible for the cultural change
Cultural change starts with YOU!

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C2U GROUP

24. 24
OUR VISION, MISSION AND VALUES
Mission
Strengthen our clients competitiveness
Values
Dedication – Relations – Innovation – Value - Execution

25. 25
OFFICES IN OSLO AND GOTHENBURG
PEOPLE ORIENTED, PROCESS FOCUSED AND RESULT DRIVEN
In addition - an extensive partnership network
Associates

26. 26
SOME CUSTOMERS

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Man
Method
Machine
Material
HSE
Quality
Cost
Leadtime
Input OutputSystem
Management
Sales
Our experience based model to achieve Operational Excellence
Aligning Strategy, Structure and Culture for successful implementation
Misaligned culture and structure disrupt execution of strategy

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Our people
OUR EXPERIENCE AND NETWORK
More than 300 years of working experience
Average is above 20 years pr consultant
More than 150 years of management experience
Average is above 10 years pr consultant
More than 150 years of experience running various types of
improvement projects
Experience from more than 50 companies within many
industry segments
An extensive partner network

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WE SEE TO YOU WITH A TOTAL SOLUTION
◦ Management consulting services to board, directors
and senior management
◦ Based on C2U systematics, tailored to your company,
we can analyze your business, suggest next steps and
follow up the implementation
◦ Coaching by experienced consultants
◦ Strengthen your team with leaders or specialists in
interim roles
◦ Extensive training in Lean Leadership and
improvement tools
C2U strengthens clients competiveness by… …offering a complete setup of services
Management
Consulting
Strengthen
Culture &
Leadership
C2U Academy
Strengthen
competitiveness

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WE SEE TO YOU WITH A TOTAL SOLUTION
C2U strengthens clients competiveness by… …offering a complete setup of services
Management
Consulting
Strengthen
Culture &
Leadership
C2U Academy
Strengthen
competitiveness
Lean & Six sigma
expertise
Supply Chain
Management
Turnarounds
Lean
Business System
Quality Strategy &
Implementations
Cost Reduction
Supplier
Development
Opex Assessment TPM
Deep Leadership
Coaching
Strategy deployment
Interim Management
Team & Individual
Profiling
Culture
Assessment
Leadership Program
Team Coaching
On the Job coaching
Follow-up analysis
Lean Leadership
Lean Office
Lean Sigma Belt
Training
Production system
(Japan)
Lean Leadership
(Japan)
Pedal car (practical
training)
Building Company
Academy
Focused area training
Learning System

31. THANK YOU
www.c2ugroup.com