Change EY Managing people and journeys
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1 Change EY Managing people and journeys
2 The role of Change Management The main role of Change Management is to lead and support a change process and to define a structured approach to transitioning individuals, teams and organizations from a current (stable) state to a desired future (stable) state. It is an organizational process which aims to help employees to understand and accept changes in their current business environment.
3 Who we are Our ambition Looking at client issues from different angles is crucial in order to understand change processes in depth and to manage change effectively. With the large array of disciplinary backgrounds that we bring to our clients tables from certified Change Managers to cultural and diversity experts we are well-equipped to provide high quality services to our customers, and ensure that transformation processes become a success story. Planning & Leading Change Communicating Change Our experience With our proven and flexible Change Management methodology and our broad expertise in comparable projects we are able to support our clients in solving the challenges in strategic, organizational, cultural and IT Change projects. Our Change Management experts are experienced in Finance, HR, Supply Chain, Customer or IT transformation projects within different industries. Enabling Change
4 What we do EY Change Management Framework Sustain Learning Change Approach and Vision Identify Organizational Impact and Alignment Sustained and Embedded Change Stakeholder Engagement and Change Leadership Deliver Change Network and Change Readiness Communications Diagnose Design
5 Why you need Change Management Do you know who your project stakeholders are? Do you know the impact of the changes on the organization? How do you kick-off your project? How will you cascade the information in the project organization? Are all your project activities integrated in an overall communications framework? How will you enable the organization to adapt to new ways of working? Global megatrends are driving business complexity and competitiveness across all sectors. Some sectors are globalizing faster than others, but all are feeling the effects of change. Mark Weinberger, Global Chairman & CEO
6 When you need Change Management Current state Desired future state Macro environmental pressures What needs to change? Strategy Structure Technology Culture How does it change? Realign Restructure Rebrand Reengineer Macro environmental pressures P&OC offers an approach for all change areas: Source: Change Management & Consulting Market, Kennedy Information, LLC, 2012 Strategic Change Key initiatives related to strategic change are business strategy implementation, new products or services, new market entry, process efficiencies or leadership changes. The challenges of these kinds of projects are often a poor match between strategic plan and core competencies of the organization, lack of accountability, lack of leadership support or unrealistic goals. Structural Change Structural change can take many forms like mergers, acquisitions, IPO, LBO, spin-off, strategic alliances, joint ventures, horizontal/ vertical integration, shared services, downsizing, rationalization, outsourcing and offshoring, but people-related challenges are common to all. Change Management is a success factor to secure employee retention, leverage synergies, support the leadership and enhance the integration. Intangible assets can create problems when social and HR issues are overlooked. Failure to integrate cultures is one of the most common reasons when deals fail to return on their potential.
7 Who can you contact Technology Change Large-scale IT projects are among the most difficult change ini tiatives to implement successfully. Research shows that one in six projects have an average cost overrun of 200%. Rigorous project management combined with Change Management is essential to realizing the benefits of technology transformation projects. Change Management will, for example, ensure that the project is aligned with business goals, it will make sure that the objectives are clear for all, that the whole impact of the project is taken into consideration and that critical skill gaps are identified and closed. Cultural Change A company s culture can be one of its greatest strengths or weaknesses. Key initiatives for Cultural Change include organizational restructuring, post-merger integration or a new operating model. In addition, more and more companies realize that they have to change their culture to stay competitive in the future. Change Management will help to align culture with strategy, secure support from Senior Management, identify hidden conflicts working against change (resistance, cynicism, fear), anchor a supportive leadership style and make sure that existing cultural strengths that work are not overseen. In addition, it will monitor and measure the cultural evolution. Nelson Taapken Partner, Advisory Services Phone nelson.taapken@de.ey.com Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Mergenthalerallee Eschborn Sabine Rachor Senior Manager, Advisory Services Phone sabine.rachor@de.ey.com Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Arnulfstrasse Munich
8 EY Assurance Tax Transactions Advisory About the global EY organization The global EY organization is a leader in assurance, tax, transaction and advisory services. We leverage our experience, knowledge and services to help build trust and confidence in the capital markets and in economies the world over. We are ideally equipped for this task with well trained employees, strong teams, excellent services and outstanding client relations. Our global purpose is to drive progress and make a difference by building a better working world for our people, for our clients and for our communities. The global EY organization refers to all member firms of Ernst & Young Global Limited (EYG). Each EYG member firm is a separate legal entity and has no liability for another such entity s acts or omissions. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information, please visit In Germany, EY has 22 locations. In this publication, EY and we refer to all German member firms of Ernst & Young Global Limited. In line with EY s commitment to minimize its impact on the environment, this document has been printed on FSC -certified paper that consists of 60 % recycled fibers. This publication contains information in summary form and is therefore intended for general guidance only. Although prepared with utmost care this publication is not intended to be a substitute for detailed research or the exercise of professional judgment. Therefore no liability for correctness, completeness and/or currentness will be assumed. It is solely the responsibility of the readers to decide whether and in what form the information made available is relevant for their purposes. Neither Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft nor any other member of the global EY organization can accept any responsibility. On any specific matter, reference should be made to the appropriate advisor Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft All Rights Reserved. SRE ED None
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