Change management


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Importance of successful change management ; Change management principles ; Change management process ; Resistance to change ; ; Building culture for change ; ADKAR Model ; Change management strategies; John P Kotter's change management strategies

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Change management

  1. 1. Change Management By Dr. Vijay Kr Khurana
  2. 2. What is Change Management?• Change management refers to the task of managing change.• Managing change refers to the making of changes in a planned and managed or systematic fashion.
  3. 3. Change Management PrinciplesFollowing principles:• At all times involve and seek support from people within system (system = environment, processes, culture, relationships, behaviours, etc., whether personal or organisational).• Understand where you are / the organisation is at the moment.• Understand where you want to be, when, why, and what the measures will be required for reaching / getting there.• Plan development towards above No.3 in appropriate achievable measurable stages.• Communicate, involve, enable and facilitate involvement of people, as early and openly and as fully as possible .
  4. 4. Advantages of Proper Organizational Change ManagementSuccessful / proper change management may provide following advantages to business firms :• Lower or neglible staff dissatisfaction• Lower or negligible resistance to change process• Lesser time and efforts are required for implementing change• Lower costs associated with change• Participation of majority in change, thus leading to increased motivation• Successful implementation of change• Sustainable change with very less probability of rollback
  5. 5. Advantages of Proper Organizational Change ManagementContd …• May help the organization to adapt to changes at a faster rate and thus help the organization to survive in the ever-changing environment• Easy integration in the case of merger or amalgamation with lesser time, efforts and costs• May lead to increased efficiency, increased productivity• May lead to lower cost of operations i.e. cost reduction• May lead to improvement in quality• May help in gaining technological leadership• May lead to more profitability
  6. 6. Change Management ProcessChange management comprises process six main activities as under:• Identify potential change• Assess• Plan change• Implement change• Review and• Close change.
  7. 7. Resistance to Change• The biggest challange to any change comes through resistance to change. Change disturbs existing equilibrium, existing procedures, power structures etc within the system or organization, which may not be liked by many persons, thus leading to resistance to change.• 1. The resistance to change could be• (a) Overt or Immediate resistances to change• (b) Implicit or Deferred resistances to change• 2. Resistance to change can come from employees as well as employers or management.• 3. Resistance to change can occur at any level i.e. individual level, group level and organization level.
  8. 8. Resistance to Change
  9. 9. Resistance to Change
  10. 10. Building Culture for Change• Building culture for change is a time consuming exercise and involves lot of efforts.• ????
  11. 11. Building Culture for ChangeIn general terms, the change program should:• Describe the change process to all people involved and explain the reasons why the changes are occurring. The information should be complete, unbiased, reliable, transparent, and timely.• Be designed to effectively implement the change while being aligned with organizational objectives, macro environmental trends, and employee perceptions and feelings.• Provide support to employees as they deal with the change, and wherever possible involve the employees directly in the change process itself• Be consistently monitored and reviewed for effectiveness. A successful change management program is typically also a flexible project
  12. 12. Building Culture for Change The ADKAR model developed by Jeff Hiatt (1998, 2006) can be highly helpful for individual change management. The model presents five building blocks which must be obtained / implemented to realize change successfully. It is managements job to create an environment in which people can go through these five stages as quickly as possible, which include:• Building AWARENESS as to why the change is needed• Creating DESIRE to support and participate in the change• Developing KNOWLEDGE as to how to change• Fostering ABILITY to implement new skills and behaviours• Providing REINFORCEMENTS to sustain the change
  13. 13. Building Culture for Change ADKAR MODEL
  14. 14. Building Culture for Change
  15. 15. Change Management StrategiesStrategies based on 4 basic approaches on the perception about human beings• Empirical-Rational• Normative-Reductive• Power-Coercive• Environmental-Adaptive
  16. 16. Change Management StrategiesOrganizations do not pursue a single strategy. They adopt a suitable mix of strategies depending upon following factors:• Degree of Resistance• Target Population• The Stakes Involved• The Time Frame• Degree of Expertise Involved• Dependency
  17. 17. Change Management StrategiesSome of the strategies are discussed as below :• Proper timing / tact• Education & communication• Seeking participation• Facilitation & support• Negotiation• Manipulation & Co-optation• Coercion• Introducing incentives / rewards
  18. 18. Change Management StrategiesAlternatively John P Kotters eight step change model may be used for effective change management.1. Increase urgency2. Build the guiding team3. Get the vision right4. Communicate for buy-in5. Empower action6. Create short-term wins7. Dont let up8. Make change stick
  19. 19. Role of Leader in Change • Who is a leader ?• As per James Mcgregor Burn –“ A leader is one who instills purposes , not one who controls by brute force”.• Few other definitions of a leader or leadership are as under:• “ A leader is one who can take a group of people to a place they don’t think they can go”.• “ Leadership is --- we, not me; mission, not my show; vision, not division; community, not domicile”.• Many other definitions of the word leader or leadership are also available, but there is no single exhaustive or all- inculsive definition.• A leader can play both positive as well as negative role in change management.
  20. 20. Role of Leader in Change• A leader can play the following positive roles by helping the mangement during the process of change: • Encouraging collaboration rather than comeptition • Encouraging customer-orientation • Encouraging training and coaching • Encouraging quality consciousness • Improving communication • Encouraging team work • Improving participation of work force • Can reduce conflicts by problem-solving • Helping and encouraging for better productivity • Can encourage creativity in an organization • Helping in creating proper culture for improvement, problem solving, prevention etc.
  21. 21. Role of Leader in Change• A good leader as a head of a team (consisting of representatives or members from either same or different functions / departments of an organization) can help in : o Proper & successful management of new product development & its commercialization (innovation) o Reduction of lead time from research & development to markets. o Speeding up volume / quantum of successful new product launch o Attainment of quality leadership o Attainment of new product / technological leadership• A leader can follow steps in ADKAR model for building culture for change
  22. 22. INVOLVING PEOPLE IN CHANGE MANAGEMENT / PEOPLE LEVER IN ORGANIZATIONS• If people lever is not managed properly, people in organizations can resist the change at following levels : • Individual level, group level, organizational level • As an employee, as managers• This in turn can adversely affect team work, productivity, quality, drive towards modernization etc.• If people lever is managed properly, people lever can be used to create multifold increase in : • Creativity i.e. generation of new and useful ideas • New product development & its commercialization ( innovation) • Productivity • Improvement in quality • Overall technological advancement / development
  23. 23. INVOLVING PEOPLE IN CHANGE MANAGEMENT / PEOPLE LEVER IN ORGANIZATIONS• People lever in organizations can be utilized / harnessed by: • Ensuring proper communication • Promoting education & training • Creating right organizational culture • Seeking participation of employees • Introducing rewards / incentives • Encouraging creativity by respecting individual initiatives, group initiatves like brain-storming, delphi etc. • Creating teams by involving members from same or different functions / departments of the organization.
  24. 24. INVOLVING PEOPLE IN CHANGE MANAGEMENT / PEOPLE LEVER IN ORGANIZATIONS• Teams both multi-functional as well as of same function can be used to harness people lever for change management in organizations.• Multi functional teams are usually used in case of New product development, new projects etc• Committees like purchase committee, budget committee are frequently used in organization to gain advantage of pooling of ideas. Special Task Forces, Project Monitoring Groups may also be made.• Japanese organizations have gained global competitiveness by using people lever. Japanese organizations have frequently used people lever through Kaizen, Ringi etc. for gaining quality improvement and problem solving.
  25. 25. INVOLVING PEOPLE IN CHANGE MANAGEMENT / PEOPLE LEVER IN ORGANIZATIONSKaizen - is the Japanese concept of continuous improvement. Motto of Kaizen is – “Today better than yesterday and Tomorrow better than today.” Kaizen practice means deep, systematic and continuous involvement of people (everybody) and by using certain techniques, but mainly by their brain, to cause a process of improvement to start, develop and never-end.• Under this concept, plant is treated as a living institution. It is continuously learning and changing.• Work-teams focus on how to improve what they are doing.• Job rotation & cross –training are frequently employed / used to give workers a complete prespective of production processes.
  26. 26. INVOLVING PEOPLE IN CHANGE MANAGEMENT / PEOPLE LEVER IN ORGANIZATIONSContd .. -The five main elements of kaizen• Teamwork• Personal discipline• Improved morale• Quality circles• Suggestions for improvement
  27. 27. INVOLVING PEOPLE IN CHANGE MANAGEMENT / PEOPLE LEVER IN ORGANIZATIONSContd ..A quality circle is a volunteer group composed of workers (or even students), usually under the leadership of their supervisor (they may elect a team leader), who are trained to identify, analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees. When matured, true quality circles become self-managing, having gained the confidence of management.
  28. 28. INVOLVING PEOPLE IN CHANGE MANAGEMENT / PEOPLE LEVER IN ORGANIZATIONS• The Ringi System is a unique way of coming to consensus about new ideas within Japanese companies.• It is based on widely held consultations among different level managers on new ideas or projects.• The ideas are usually proposed by the lower rank managers who have operational responsibilities. The concept would then be discussed among the same rank personnel and once having reached the consensus it would be passed to the next level of managers, where it would undergo the same procedure.• After such broad consultations the proposal will reach the top management, where it would or would not get the final approval.
  29. 29. Change Management By Dr. Vijay Kr Khurana