Managing Change: The Role of HR

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The architecture of organisational change and multilayered coordination of its implementation in sync with properly developed strategic change report.

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Managing Change: The Role of HR

  1. 1. Managing Change: The Role of HR Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
  2. 2. Learning Objectives At the end of the course, participants should be able to do the following:  Identify role of HR in Change Management  Identify the appropriate relationship between HR and internal customers during a change project  Explain the importance of change initiative  Develop and implement strategies for managing change  Conduct evaluation of change using appropriate analytical tools  Develop strategic change report
  3. 3. “A method of problem solving…..moving from one state to another – from the problem state to the solved state.” – Ramesh Mehay “the coordination of a structured period of transition from situation A to situation B in order to achieve lasting change within an organization”. - BNET Business Dictionary
  4. 4. “Change Management is preparation for major changes in the present and the future, as a means of strengthening the agility, the internal resilience, and the peripheral vision of the organisation.” - Peter Gumpert
  5. 5. Reactions of Human Beings to Change • Denial • Anger • Antagonism • Battle • Bargaining • Depression • Acceptance
  6. 6. Why People Resist Change i. Fear of the unknown ii. Fear of becoming somewhat irrelevant iii. Fear of redundancy iv. Fear of aspiration negation v. Fear of disconcerting work environment vi. Fear of structural displacement vii. Fear of failure in new path viii. Clasping old habits ix. Lack of trust and support x. Lack of competence xi. Lack of effective communication xii. Learning Aversion xiii. Peer Pressure xiv. Obstinate Paradigm xv. Short-termism xvi. Wrong Timing xvii. Organisational politics xviii. Perception of poor benefits and reward xix. Inhumaneness of top management xx. Belief that the change is a fad xxi. Belief in supposed superior alternative xxii. Inability to identify the need xxiii. Previous experience xxiv. Inflexible and punitive implementation strategies xxv. Non-participatory planning process
  7. 7. Three Human Disposition to Change
  8. 8. Exploratory Engagement • List the tactics HR Leaders should deploy in handling human resistance to change? ………………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………
  9. 9. Dave Ulrich Model of HR Roles
  10. 10. IPMA Model of HR Roles Leader Business Partner Change Agent HR Expert
  11. 11. “Of course change management isn’t restricted exclusively to HR. Line managers are the owners of change while HR can be seen as its architect, facilitator and designer. Nobody ever said that only HR manages change.” - Dave Ulrich
  12. 12. Change management is a core HR Professional Skill, leveraging on people dynamics and organisational systems for planning, executing and coordinating change-direction and human capital control at the pre-change, active change and post change phases.
  13. 13. HR as Change Agent 1. Provide impetus for conducting change at every organisational stratum 2. Provide structured framework for change 3. Align top management with other employees 4. Develop requirements for appropriate organisational agility 5. Identify and establish workable change management processes 6. Reinforce change management communication as a driver for attainment of effective change 7. Act as overwhelming influence for successful change
  14. 14. Operational Spheres of Change Agent D A F G E B C Change Agent Elijah Ezendu, Change Management
  15. 15. Requisite Abilities for Change Agents • Diagnose Problems • Build Relationships with Clients • Ensure Vision is Properly Articulated • Set Leadership Agenda • Solve Problems • Implement Plans to Achieve Change Goals • Tolerate Ambiguity • Manage Conflict • Manage Projects • Mitigate Resistance • Manage Risk • Coordinate Effective Communication • Apply knowledge of business, products and work processes Adapted from Dave Ulrich and Other Commentators
  16. 16. “Successful organizational change is about coordinating the four different leadership roles in an organization to produce employees that are Ready, Willing, & Able to Change.” - Randal Breaux, Managing Organisational Change
  17. 17. Change Agent in a Nutshell • A Change Agent is a person tasked with creating needed employee behavior change • Successful organizational change is about coordinating the four different leadership roles in an organization to produce employees that are Ready, Willing, & Able to change • Good Change Agents know how to manage upwards effectively. • Only successful change projects can fuel long-term improvement in an organization’s change environment. Adapted from Holland & Davis
  18. 18. Multiple Roles of HR as Change Architect
  19. 19. Two Phases of HR Role in Change Management • Planning • Implementation
  20. 20. Planning Phase • Evaluation of Viewpoint • Strategic forecasting of Initiatives and directions • Development of business strategy for initiatives and directions • Determination of action points and elements of execution • Identification of performance targets for action points. • Establishment of communication plan
  21. 21. Evaluation of Viewpoint The management should identify the need for change in a specific area, and resolve its attributes with the aim of protecting strategic interest of the firm.
  22. 22. Strategic Forecasting of Initiatives and Direction This involves the use of analysis, synthesis and review for determination of appropriate initiative and direction. Probable initiatives should be evaluated using STEEPLED analysis, Issue analysis, SWOT analysis, and Stakeholder analysis. Industry direction should be identified by using four trajectories of industry change analysis. The specific forces of change in the industry and their impact can be ascertained to a reasonable level by using driving forces analysis. Thereafter, several permutation levels of industry direction and feasible action points of the organisation shall be appraised by using Thirteen Forces analysis.
  23. 23. Change Initiatives • Leadership Change • Cost Change • Quality Change • Process Change • Cultural Change • Strategic Change
  24. 24. Four Trajectories of Industry Change Analysis This tool was developed by Anita McGahan in 2004. It’s used for identifying and understanding change in an industry, so as to know whether to move out of it.
  25. 25. How to Conduct Four Trajectories of Industry Change Analysis • Identify all the core assets and core activities of an industry. • Check-up threats to the core assets and core activities. • Identify the trajectory of industry change occurring in the industry using the format below: (Radically: Core assets and core activities are threatened to become obsolete Progressive: Core assets and core activities are not affected. Creative: Core assets are threatened but core activities are stable. Intermediating: Core activities are threatened but core assets still have capacity to create value. • Establish appropriate course of action.
  26. 26. Driving Forces Analysis This tool is used for identifying the driving forces of change and uncertainties in an industry, in addition to assessing their impact, in order to proffer solution.
  27. 27. How to Conduct Driving Forces Analysis • Identify all the main driving forces in a particular industry. • Assess and rank the impact of each driving force. • Consider impact and proffer solution.
  28. 28. Identifying Driving Forces Every set of stakeholders within a particular industry and the ensuing macroenvironmental factors would be examined in order to find out associated driving forces.
  29. 29. Assessing and Ranking Driving Forces A rating system of 1 to 10 (signifying weak to strong) can be used to mark the strength of each driving force as well as the ease of influencing it. Thereafter, the sum of strength and influence would be used to determine rank of each driving force.
  30. 30. The Thirteen Forces Suppliers Potential Entrants Industry Competitors Buyers Substitutes Social Shifts Technological Shifts Demographic Shifts Ethical Shifts Economic Shifts Environmental Shifts Political Shifts Legal Shifts
  31. 31. Implementation Phase 1. Lewin’s model 2. Kotter’s model 3. Lippitt, Watson and Westley model 4. Prochaska and DiClemente model
  32. 32. Lewin’s Model • Unfreeze the status quo • Movement from current level to a new equilibrium • Refreeze the new values to achieve stability in new equilibrium
  33. 33. Kotter’s Model • Unfreeze to overcome resistance, while coordinating the employees towards the new vision • Movement by establishing lines of action for every employee to participate and celebration of short term success • Refreeze by institutionalizing the new act
  34. 34. Lippit, Watson and Westley Model 1. Diagnose the problem. 2. Assess the motivation and capacity for change. 3. Assess the resources and motivation of the change agent. This includes the change agent’s commitment to change, power, and stamina. 4. Choose progressive change objects. In this step, action plans are developed and strategies are established. 5. The role of the change agents should be selected and clearly understood by all parties so that expectations are clear. Examples of roles are: cheerleader, facilitator, and expert. 6. Maintain the change. Communication, feedback, and group coordination are essential elements in this step of the change process. 7. Gradually terminate from the helping relationship. The change agent should gradually withdraw from their role over time. This will occur when the change becomes part of the organizational culture
  35. 35. Prochaska and DiClemente Model • Pre-contemplation • Contemplation • Preparation • Action • Maintenance
  36. 36. Change impacts activities, processes, systems, techniques, work-flow streams and talents thereby stimulating a particular level of performance.
  37. 37. Causal Mode of Organisational Performance & Change External Environment Management Practices Work Unit Climate Individual and Organisational Performance Mission & Strategy Motivation Organisational Culture Leadership Structure Task and Ind. Skills Systems (Policies & Procedures) Individual Needs and Values Adapted from Burke and Litwin
  38. 38. Performance in Change In accordance with Burke-Litwin Model, change occurs in response to external environment and affects transformational factors that in turn impact transactional factors thereby influencing motivation and finally determines performance.
  39. 39. The Human Resource Leader should carry out responsibility of Change Architect by crafting Strategic Change Report that shall act as transparent and feasible prodder.
  40. 40. Strategic Change Report This is a standard blueprint showing current situation of an entity, required change, issues in execution of change, and expected result within specific timespan.
  41. 41. Contents of Strategic Change Report • Current Corporate Condition • Statement of Problem • Statement of Solution • Change Analysis • Structure of Change Progression • Performance of Change • Expected Corporate Condition Source: Elijah Ezendu, Change Management
  42. 42. Exploratory Engagement What are Characteristics of Effective Strategic Change Report? ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ……………………………………………………......................
  43. 43. Change Management Case The management of Angular Corporation had realised the need for enterprise-wide exploration of Social Media. The decision was based on effects of social media literacy and applicability of social media as competitive advantage through boosting of collaboration, innovation, competitive intelligence, inductive learning, interactive engagement, esprit de corps, business development, intrapreneurship, corporate brand and techno-human driven performance. You are required to develop a Strategic Change Report.
  44. 44. Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief & Chairman of Editorial Board, Cost Management Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nigeria) and Jones International University (USA). He holds Interim Management Assignments on Boards of Companies as Non-Executive Director.
  45. 45. Thank You

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