GE CHANGE MANAGEMENT(CAP)

CHANGE MANAGEMENT

2. Change Acceleration Process
(CAP)
The Key to Change
Effective
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3. Growth:
IB’s , CECO R, Le a n, Cus to m e r Ce ntric , Ex e c utio n
Work-Out™ / Town Meetings:
Em p o we rm e nt, a c tio n – Ex p e rt-Drive n De c is io n-Ma king , Ac tio n Wo rk-O uts™, Cus to m iz e d Wo rk-O uts™
Productivity / Best Practices:
Be nc hm a rking Exte rna l O rg a niz a tio ns , Sha ring Be s t Pra c tic e s
Process Improvement:
Pro c e s s -m a p p ing , re -e ng ine e ring , Bulle t Tra in Ap p ro a c h
Change Acceleration Process (CAP):
Inc re a s e s uc c e s s a nd a c c e le ra te c ha ng e
Key Strategic Initiatives:
QMI*, NPI*, O TR*, SP*, Pro duc tivity, G lo ba liz a tio n
Make Customers Winners:
G E To o l-Kit
Six Sigma Quality:
Pro duc tivity, Sp a n, Da ta -Drive n De c is io n-Ma king
Digitization:
Se ll, Buy, Ma ke us ing Te c hno lo g ic a l To o ls
ACFC (At the Customer For the Customer):
Fa s te r, Be tte r, Clo s e r to the Cus to m e r
Imagination at Work:
Im a g ine , So lve , Build, Le a d
* New Product Introduction, Quick Market Intelligence,
Order to Remittance, Supplier Partnership
1989
Change Culture:
A Continuing Journey
•Using Change as a Strategic and
Competitive Advantage
•Optimizing Change
Effectiveness
•Building a Culture that
Drives Change
1992
1996
1998
2000
2003
2004
Lean Six Sigma
Sp e e d & Qua lity
2005+

4. Change Research
100% of all changes evaluated as
“Successful” had a good technical solution or
approach
Over 98% of all changes evaluated as
“Unsuccessful” also had a good technical
solution or approach
What is the differentiating factor
between success and failure?

5. …From Your Change Experiences
Elements of Successful Change:
__________________________________________
__________________________________________
__________________________________________
Elements of Unsuccessful Change:
__________________________________________
__________________________________________
__________________________________________

6. Effective Change Equation
Q x A = E
Q= Qualitative/Technical Solution
A= Acceptance/Engagement
E= Overall Effectiveness

7. Facilitative Facilitative
Leadership Leadership
Facilitative Facilitative
Leadership Leadership
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Cultural, Organizational
Cultural, Organizational
Strategy
Strategy
Cultural, Organizational
Cultural, Organizational
Strategy
Strategy
Change initiative
focused on
customer needs
(target)
The Challenge = Do It With Speed!
Lessons Learned:
2 Components to Any Change

8. CAP: The Basics
•Provides a ‘Pilot’s
Checklist’ for change leadership
•A flexible non-linear model
used throughout a change process
•Applies strategic thinking to the
influencing of others
•Contains tools to help change teams
identify ways to achieve behavioral
change

9. The GE CAP Model
CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATE IMPROVED STATEIMPROVED STATE
Leading ChangeLeading Change
Monitoring ProgressMonitoring Progress
Mobilizing CommitmentMobilizing Commitment
Shaping a VisionShaping a Vision
Creating a Shared NeedCreating a Shared Need
Making Change LastMaking Change Last
Systems and StructuresSystems and Structures
Future State

10. CAP: A Model for Change
Leading ChangeHaving a sponsor/champion and team members who demonstrate visible,
active, public commitment and support of the change.
Creating A
Shared Need
The reason to change, whether driven by threat or opportunity, is instilled
within the organization and widely shared through data, demonstration or
demand. The need for change must exceed its resistance.
Shaping A
Vision
The desired outcome of change is clear, legitimate, widely understood and
shared; the vision is shaped in behavioral terms.
Mobilizing
Commitment
There is a strong commitment from constituents to invest in the change,
make it work, and demand and receive management attention; Constituents
agree to change their own actions and behaviors to support the change.
Making Change
Last
Once change is started, it endures, and learnings are transferred
throughout the organization. Change is integrated with other key initiatives;
early wins are encouraged to build momentum for the change.
Monitoring
Progress
Progress is real; benchmarks set and realized; indicators established to
guarantee accountability.
Changing
Systems And
Structures
Making sure that the management practices (Staffing, Development,
Rewards,
Measures, Communication, Organizational Design and Information
Technology Systems) are used to complement and reinforce change

11. Setting Up for Success
“Off to a Good Start”

12. Why is this Important?
SU
•A "good start" is essential to long-term success
•Even straightforward projects must be "scoped" to ensure
attention is focused on essential elements & deliverables
•Effective teams are formed through deliberate actions,
starting with clarification of roles, responsibilities and
expectations
Time Invested up-front
Pays Rich Rewards ‘Down-Stream’
Go Slow To Go Fast!

13. What is the Outcome?
SU
•Clear roles, responsibilities and expectations for all
parties (Sponsor, Team Leader, Team Members,
CAP Coach, Others)
•A well-defined scope of work for the project that all
parties understand and are committed to achieving
•An effective project execution structure and
process

14. Setting Up for Success: Tools
SU
Project Definition
SCOPE:
•Timing
•Organizations Involved
•Processes Involved
•Levels Involved
GOALS:
•Results / Target for Project
•Measurements of Success
ROLES:
•What is Their Role?
•Who Should be on Project
Team?
Project Definition Tools
Bounding Tools:
•GRPI
•Includes / Excludes
•Process Focus (SIPOC / COPIS)
•In the Frame / Out of the Frame
Alignment Test:
•15 words
•Critical Success Factors
Significance Test:
•On the Screen

15. In the Frame / Out of the Frame Flip Charts
Draw a large square "picture frame" on a flip chart (or use tape on a wall) and
use this metaphor to help the team identify what falls inside the picture of their
project and what falls out. This may be in terms of type and extent of end results,
people impacted, time frame, product lines, sites, etc.
15-Word Flip Chart
Each team member is given a flip chart page and marker. They must write,
in 15 words or less, the project definition. Post all and check for agreement.
Double check all fuzzy words by circling them and asking "What does it
look like?" or "How will we know it when we have it?".
PROJECT
DEFINITION
PROJECT
DEFINITION
PROJECT
DEFINITION
Project Scoping Tools
SU
In & Out of the Frame
Used For:
Creating a visual picture of the
elements in “Scope” (frame) and
out of “Scope” for the project
15-Word Flip Chart
Used For:
–Developing a Project
–Definition Statement

16. Leading Change
CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATE IMPROVED STATEIMPROVED STATE
Leading ChangeLeading Change
Systems and StructuresSystems and Structures
Monitoring ProgressMonitoring Progress
Mobilizing CommitmentMobilizing Commitment
Shaping a VisionShaping a Vision
Creating a Shared NeedCreating a Shared Need
Making Change LastMaking Change Last

17. Why is this important?
LC
•Strong, committed leadership is critical to
accelerating change at all levels.
•Leadership impacts all other change elements.
•Change Leadership is not a part-time activity.

18. What is the outcome?
LC
•Visible, active and public commitment/support.
•Willingness to take personal initiative and challenge the
status quo.
•High levels of attention to the project through the time,
passion and focus given to the project by leaders at all
levels.
•Leaders actively modeling CAP concepts, language and
tools.
Successful change initiatives require strong,
committed Leadership throughout the entire project
life-cycle

19. ChangeChange
SkillsSkills
FOCUS / AGENDA
•Enroll Others
•Facilitative Leadership Skills
•Win/Win
Time x Focus/ Agenda x Energy/ Passion = Attention
Leading Change Model
LC
ENERGY / PASSION
•Personal involvement
•Is "known for . . . "
TIME
•Planning
•Behavior: “Walk the talk”

20. 1.Identify 4-5 things you feel
very strongly about (at home
or work).
2.Check your calendar for the
last 2-3 months to see what %
of your time is spent on those
things you say are important
to you
1.Identify 4-5 things you feel
very strongly about (at home
or work).
2.Check your calendar for the
last 2-3 months to see what %
of your time is spent on those
things you say are important
to you
Change Acceleration Process
Self-Assessment
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Leads change
Creates a shared need
Shapes a vision
Mobilizes commitment
Makes change last
Monitors progress
Changes systems & structures
Leadership Assessment Tools:
LC
Calendar Test (Time Audit)
Used For:
Stimulating thinking and team
discussion about the degree of
attention & commitment change
leaders are modeling.
CAP Self-Assessment
Used For:
Assessing current capacity to show
specific competencies in each of the
seven core CAP processes.

21. Creating a Shared Need
CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATE IMPROVED STATEIMPROVED STATE
Leading ChangeLeading Change
Systems and StructuresSystems and Structures
Monitoring ProgressMonitoring Progress
Mobilizing CommitmentMobilizing Commitment
Shaping a VisionShaping a Vision
Creating a Shared NeedCreating a Shared Need
Making Change LastMaking Change Last

22. •Forces any resistance or apathy to be addressed
head-on.
•Validates why the project is important and critical
to do.
•Builds the momentum needed to get the change
initiative communicated and launched.
Why is this Important?
CSN

23. What is the Outcome?
CSN
•Awareness of the dissatisfaction with the current state.
•A shared recognition, by both the team and key
stakeholders, of the need and logic for change.
•The ability to frame and communicate the need for change
as a combination of threats and opportunities.
Creating a Shared Need produces
the ‘urgency’ to build momentum
for acceptance of the change initiative

24. Short
Term
Long
Term
Threat
If we don’t make this change
Opportunity
if we do make this change
Types of Proof Examples
Data/ Facts:
 Numbers / trends / statistics
 Graphs / Financials
 Benchmark / competitive data
Demonstrate:
 Finding Examples
 Best Practices
 Visiting other Organizations / Panels/
Pilots/ Testimonials
Demand:
 Dynamic Leadership (Setting High
Standards/ Accountability)
 Customers / Suppliers / Competition
(Int. / Ext.)
Creating a Shared Need Tools:
CSN
Threat / Opportunity Matrix
Used For:
Framing the need for change as a
combination of threat &
opportunity over the short and
long term
Three D’s Matrix
Used For:
–Building your case for change
with evidence using data,
demonstration & demand
–Answers the question:
“Can I prove it?”

25. Shaping a Vision
CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATE IMPROVED STATEIMPROVED STATE
Leading ChangeLeading Change
Systems and StructuresSystems and Structures
Monitoring ProgressMonitoring Progress
Mobilizing CommitmentMobilizing Commitment
Shaping a VisionShaping a Vision
Creating a Shared NeedCreating a Shared Need
Making Change LastMaking Change Last

26. Why is this important?
SV
•Visions paint a picture that appeals to the “head
and heart” and answers the question, “Where are
we heading?”
•A clear statement about the future situation helps
gain genuine commitment
•An understandable vision helps establish the
milestones to monitor progress and change
systems & structures

27. What is the outcome?
SV
•A clear statement about the outcomes of the change
•A view of the future state that is:
–Customer focused
–Not just one person’s dream
–Challenging
–Evolving, not static
–Behavioral and actionable
–Easy to understand
Visions provide Direction and Motivation
for Change

28. 1.Individually jot down key phrases that
capture the essence of why the team
exists.
2.Collect and collate into vision
statement.
3."Test" on customers, vendors,
employees.
4.Modify as necessary.
1.Individually jot down key phrases that
capture the essence of why the team
exists.
2.Collect and collate into vision
statement.
3."Test" on customers, vendors,
employees.
4.Modify as necessary.
1.Imagine a point in the future when the
project has been very successful.
2.Find words to describe what you would
see, hear, feel as you observe key
stakeholders functioning in the new,
changed state.
3.Collate, debate, reach consensus on
your vision statement, "test" on others
& modify
1.Imagine a point in the future when the
project has been very successful.
2.Find words to describe what you would
see, hear, feel as you observe key
stakeholders functioning in the new,
changed state.
3.Collate, debate, reach consensus on
your vision statement, "test" on others
& modify
Shared Visions come from collective efforts
that reflect individual perspectives
Shaping a Vision Tools:
SV
Key Phrases Exercise
Used For:
Involving all team members and
capturing individual perspectives
Backward Imaging Exercise
Used For:
Helping team members think
about the future they are working
to create

29. Vision _________________________
Be havio rs
More of Less of
• •
• •
• •
• •
• •
Vision _________________________
Be havio rs
More of Less of
• •
• •
• •
• •
• •
Focusing Vision on Behaviors:
SV
Bull's Eye Chart Exercise
Used For:
Developing a Vision that is stated
in actionable, behavioral terms
More of/Less of Exercise
Used For:
Clarifying what the team expects
from the new state in behavioral
terms
VisionVision
MindsetMindset
BehaviorBehavior
Making a Vision
Actionable
Stating the Vision in actionable, behavioral terms helps the team
gain commitment and identify sources of resistance

30. Elevator Speech Worksheet:
SV
1.A “reality check” to ensure that team members see the
project the same way.
2.To ensure that the team members spread a unified
consistent message.
"Here's what our project is about… ”(Charter, Project Definition Tools)
"Here's why it's important to do… ” (Shared Need Tools)
"Here's what success will look like … ”
(Shaping a Vision Tools +Milestones)
"Here's what we need from you… ”
(Responsibilities, Commitments, Project Plans)
"Here's what you can count on from me … ”
(Commitments, Action, Follow-up)
(Output may change by stakeholder – one size does not fit all)

31. CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATE IMPROVED STATEIMPROVED STATE
Leading ChangeLeading Change
Systems and StructuresSystems and Structures
Monitoring ProgressMonitoring Progress
Mobilizing CommitmentMobilizing Commitment
Shaping a VisionShaping a Vision
Creating a Shared NeedCreating a Shared Need
Making Change LastMaking Change Last
Mobilizing Commitment

32. Why is this Important?
MC
•Understanding the key stakeholders whose
support and commitment will “make or break” the
change effort.
•Key difference between success and failure.

33. What is the Outcome?
MC
•Coalition of committed stakeholders.
•Identification of potential resistance and a strategy
to overcome it.
Mobilizing the Commitment of Key
Stakeholders is Essential
to the Success of the Change

34. Sources of
Resistance
Definition Causes
of Resistance
Examples Rating
Technical
Political
Cultural
Names Strongly
Against
Moderately
Against
NeutralModerately
Supportive
Strongly
Supportive
Stakeholder Analysis for Change
People resist or support change for a variety of reasons.
Mobilizing Commitment Tools:
MC
Stakeholder Analysis For
Change
Used For:
Identifying stakeholders and their
current level of commitment to the
change initiative
Technical-Political-Cultural
Analysis
Used For:
Identifying, labeling and
understanding sources of
resistance

35. More of Less of
More of Less of
Influencin
g Strategy
Influencin
g Strategy
Threat vs. Opp.
Threat vs. Opp.
3D Matrix
3D Matrix
D
D
D
TPC Analysis
TPC Analysis
T
P
C
Stakeholder
Analysis
Stakeholder
Analysis
-- - +/- + ++
Visioning
Visioning
VisionVision
MindsetMindset
BehaviorBehavior
Elevator Speech
Elevator Speech
CAP Toolkit:
MC

36. Systems and Structures
CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATE IMPROVED STATEIMPROVED STATE
Leading ChangeLeading Change
Systems and Structures
Monitoring ProgressMonitoring Progress
Mobilizing CommitmentMobilizing Commitment
Shaping a VisionShaping a Vision
Creating a Shared NeedCreating a Shared Need
Making Change LastMaking Change Last

37. Why is this Important?
CSS
•Successful change often involves significant
realignment and leveraging of the way we
organize, communicate, measure, train, develop,
reward, compensate, promote and other systems
within the organization.
•Desired new behaviors (More of …Less of …) are
reinforced through consistent attention to
organizational Systems & Structures.

38. What is the Outcome?
CSS
•Identification and utilization of key Systems &
Structures that must be addressed to sustain
project success.
•Utilization of Systems & Structures Best Practices.
•Alignment of Systems & Structures with desired
behaviors.
Identifying and re-aligning
key Systems & Structures are necessary for
successful, long-lasting change

39. Factors to Consider:
CSS
Staffing (Acquiring/placing talent)
Development (Building competence/capability)
Measures (Tracking performance)
Rewards (Recognizing/rewarding desired behavior)
Communication (Using information to build and sustain momentum)
Organization
Design
(Organizing to support the change initiative)
IT Systems (Utilizing IT technology to enable changes to be
successful and sustained)
Resource
Allocation
(Adjusting or planning for financial and other resources
to support the change project)

40. Time
D
e
g
r
e
e

o
f

D
i
f
f
i
c
u
l
t
y
•Which Systems & Structures
Most Impact the New
Behaviors?
•Identify the Key Stakeholder(s)
of that S&S.
•What’s Missing?
•Identify Characteristics of
New Systems & Structures.
•Determine Systems &
Structures to Remove or
Build.
•Identify Who to Engage and
Develop Influence Strategy.
2. Current Systems &
Structures Assessment
2. Current Systems &
Structures Assessment
3. Creating future
Systems & Structures
3. Creating future
Systems & Structures
•What about the current S&S
is He lping or Hinde ring us
from achieving the desired
state behaviors?
•Develop Influence Strategy/
Action plan.
1. Identify Key Systems &
Structures
1. Identify Key Systems &
Structures
HelpingHindering Actions
VisionVision
MindsetMindset
BehaviorBehavior
Three Step Alignment Process
CSS

41. Channel Announce
the
CAP Project
Clarify
the Vision
Begin to
Mobilize
Commitment
Begin to
Monitor
Progress
Changing
Systems &
Structures
Written:
•Newsletter
•Bulletin Board
•V.P. Memo
•etc.
Spoken:
One-on-many
•All employees meeting
•Weekly staff meeting
•Operating managers
meeting
•Etc.
Spoken:
One -on-one
Symbolic:
•Offsite conference
•Press conference
•etc.
Communication Planning Matrix:
CSS
Used For:
–Communication Strategy
(various Channels)
Indicate those that are suitable
for:
–Providing Information
–Persuading
–Empowering
Include:
–Audience
–Who
–When
–Where
Used For:
–Communication Strategy
(various Channels)
Indicate those that are suitable
for:
–Providing Information
–Persuading
–Empowering
Include:
–Audience
–Who
–When
–Where

42. Making Change Last
CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATE IMPROVED STATEIMPROVED STATE
Leading ChangeLeading Change
Systems and StructuresSystems and Structures
Monitoring ProgressMonitoring Progress
Mobilizing CommitmentMobilizing Commitment
Shaping a VisionShaping a Vision
Creating a Shared NeedCreating a Shared Need
Making Change LastMaking Change Last

43. Why is this Important?
MCL
•We often spend most available time on the launch
of an initiative rather than its institutionalization
•Every change initiative competes for time,
resources and attention
•To ensure that the new behaviors will not revert
back to the old habits

44. What is the Outcome?
MCL
•Consistent, visible, tangible reinforcement of the
change initiative
•Integration of new initiative becomes the way we
work
•Changes to Systems and Structures enable the
new behavior that supports the Vision
Launching a Change is just the beginning.
It must become the Way of Life

45. Monitoring Progress
CURRENTCURRENT STATESTATE TRANSITION STATETRANSITION STATE IMPROVED STATEIMPROVED STATE
Leading ChangeLeading Change
Systems and StructuresSystems and Structures
Monitoring ProgressMonitoring Progress
Mobilizing CommitmentMobilizing Commitment
Shaping a VisionShaping a Vision
Creating a Shared NeedCreating a Shared Need
Making Change LastMaking Change Last

46. Why is this Important ?
MP
•An accurate measure of the CAP project provides
focus, direction & momentum throughout the
change process.
•Corrective action can only occur if you know you're
off track.
•Monitoring Progress enhances your ability to
reward key events and milestones.

47. What is the Outcome ?
MP
•Clarity and agreement on what the “acceptance”
strategy looks like in measurable & observable
terms.
•Baseline data & milestone results of the change
process tracked and widely communicated.
•Increasing momentum as people see progress and
results being realized.
Measuring & tracking progress
along the CAP elements
demands ongoing attention by the team

48. Effective Change Equation
Q x A = E
Q= Qualitative/Technical Solution
A= Acceptance/Engagement
E= Overall Effectiveness