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Strategic change management – processes and methods

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Strategic Change Management: processes, best practice principles and methods

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Strategic change management – processes and methods

  1. 1. STRATEGIC CHANGE MANAGEMENT – PROCESSES, METHODS AND PRINCIPLES CHARLES COTTER 2-4 MARCH 2015
  2. 2.  Introduction to change management principles and practice  Describing the types of change  Diagnosis: Identifying and applying the characteristics of change capable organizations  Explaining change theories and the change transition cycle  Explaining the leadership role and contribution during change  Differentiating between Type O and Type D oriented people and the effective management thereof TRAINING PROGRAMME OVERVIEW
  3. 3.  Identifying the reasons for resistance to change  Describing the managerial techniques to reduce resistance to change  Describing Lewin’s 3-phase Planned approach to change  Describing and applying the 7-step organizational change management process  Managing contemporary change management issues TRAINING PROGRAMME OVERVIEW
  4. 4.  Change  Change Management  Strategic Change Management  The need for strategic change management?  The forces of change  The metaphoric views of change  The areas/types of change DEFINING THE FUNDAMENTALS OF CHANGE
  5. 5.  Strategic change management is the process of managing change in a structured and thoughtful way in order to meet organizational goals, objectives and missions.  Therefore, change management and related processes present many managerial challenges and, consequently, requires a systematic, structured, purposeful and integrated approach. STRATEGIC CHANGE MANAGEMENT
  6. 6. INTEGRATED MANAGEMENT APPROACH
  7. 7. 4-STEP STRATEGIC MANAGEMENT PROCESS
  8. 8. THE NEED FOR CHANGE
  9. 9. THE NATURE OF THE BUSINESS ENVIRONMENT – V-U-C-A
  10. 10. FORCES OF CHANGE
  11. 11. METAPHORIC VIEWS OF CHANGE CALM WATERS WHITE-WATER RAPIDS
  12. 12.  Strategy  People  Organizational culture  Technology  Structure AREAS/TYPES OF CHANGE: S-P-O-T-S
  13. 13.  Refer to pages 15-16 in the Learner Guide  Apply the fundamentals of change to your organization.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 1
  14. 14.  #1: Linking the present and the future  #2: Make learning a way of life  #3: Actively supporting and encouraging day-to-day improvements and changes  #4: Ensuring diverse teams  #5: Encourage out-of-the-box thinking CHARACTERISTICS OF CHANGE- CAPABLE/FRIENDLY ORGANIZATIONS
  15. 15.  #6: Protect and shelter breakthrough ideas  #7: Integrate technology to implement changes  #8: Build and deepen trust (creating an organizational culture of management credibility and integrity)  #9: Streamline and align processes, systems and structures  #10: Leadership have the will and conviction to change CHARACTERISTICS OF CHANGE- CAPABLE/FRIENDLY ORGANIZATIONS
  16. 16.  Refer to pages 41-42 in the Learner Guide  Diagnosis: By referring to each of the characteristics of change capable/friendly organizations, measure the degree of your organization’s readiness to change.  Analysis: Identify those areas which need to be improved and recommend strategies to close these gaps.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 7
  17. 17.  The literature on “change management” is clear: over 70% of change initiatives fail. CHANGE MANAGEMENT SUCCESS TRACK RECORD
  18. 18. CHANGE TRANSITION CURVE
  19. 19. CHANGE TRANSITION CURVE AND APPROPRIATE MANAGERIAL ACTIONS
  20. 20.  Refer to page 19 in the Learner Guide  As a manager, describe how you can accelerate and guide employees through the change transition cycle for the most sophisticated/mature stage, commitment.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 2
  21. 21.  “Leaders should not only administer and managing change, but pioneer, pilot and drive change towards barrier-busting heights of performance improvement.” (Cotter: 2005)  Managerial Roles (refer to page 20 in the Learner Guide)  Change Agents (internal and external)  Building resilience and change-hardiness  Transformational Leadership THE ROLE OF LEADERSHIP IN CHANGE MANAGEMENT
  22. 22. CHARACTERISTICS OF TRANSFORMATIONAL LEADERSHIP
  23. 23.  Refer to pages 23-24 in the Learner Guide  Apply the leadership roles in effectively managing change.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 3
  24. 24.  Refer to pages 26-29 in the Learner Guide  Individually: Complete the Type O vs. D-oriented questionnaire.  Group: As a manager, describe how you will manage your staff with both a Type O and Type D orientation towards change.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 4
  25. 25.  Why people resist change?  Why it is so challenging to reduce resistance to change?  Managerial techniques to reduce resistance to change MANAGING RESISTANCE TO CHANGE
  26. 26.  Uncertainty (i.e. fear of the unknown)  People’s self-interest is threatened  A lack of trust and misunderstanding  Belief that change is incompatible with the goals and the interest of the organization  A low tolerance for change is also a barrier to organizational change  Other general reasons (e.g. include inertia where people do not want to change the status quo, poor timing, and unexpected, extreme or sudden change and peer pressure) WHY PEOPLE RESIST CHANGE?
  27. 27.  People and their behaviour is the most difficult to change because unlike structure and technology, in which managers have absolute control, managers do not have absolute control over peoples’ thinking, attitudes and perceptions.  “Unlike technology, structure, processes and strategy, people talk back when confronted by uncomfortable levels of change.” (Cotter: 2014)  People are the greatest source of resistance to change because people have minds of their own i.e. they have personalized and subjective views regarding change.  Change must involve the people - change must not be imposed upon the people WHY IT IS SO CHALLENGING TO REDUCE RESISTANCE TO CHANGE?
  28. 28.  Refer to page 32 in the Learner Guide  In your work environment, identify the five (5) foremost reasons why employees resist change. For each of these 5 reasons, describe the ways and means that you as a manager can use to break down these “walls of resistance”. Provide practical examples.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 5
  29. 29. MANAGERIAL TECHNIQUES TO REDUCE RESISTANCE TO CHANGE
  30. 30.  Refer to pages 36-37 in the Learner Guide  By referring to each of the 6 techniques to manage employee resistance to change, describe how you as a manager can apply these techniques in your working environment. Provide practical examples. Also indicate at which stage of the change process, each of these techniques is most appropriate.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 6
  31. 31.  At all times involve and agree support from people within system (e.g. the environment, processes, culture, relationships, behaviours - whether personal or organizational)  Understand where you/the organization is at the moment (status quo)  Understand where you want to be, when, why, and what the measures will be for having got there  Plan development towards above in appropriate achievable measurable stages  Communicate, involve, enable and facilitate involvement from people, as early and openly and as fully as is possible. BEST PRACTICE CHANGE MANAGEMENT PRINCIPLES
  32. 32. LEWIN’S 3-PHASE MODEL OF CHANGE
  33. 33. KOTTER’S CHANGE MANAGEMENT PROCESS
  34. 34.  STEP 1: Forces for change (internal and environmental forces) which affect:  STEP 2: Performance outcomes (individual, group and organizational) which encourages  STEP 3: Diagnosis of the problem (information, participation and change agent) which leads to  STEP 4: Selection of appropriate intervention (structural, behavioural and technological) as constrained by S-P-O-T-S  STEP 5: Limiting conditions (leadership climate, formal organization structure and organization culture)  STEP 6: Selection and Implementation of the method (timing, scope and experimentation) provision for  STEP 7: Evaluation of the method (feedback, adjustment, revision, reinforcement) APPLYING THE 7-STEP, ORGANIZATIONAL STRATEGIC CHANGE MANAGEMENT PROCESS
  35. 35.  Step one of the strategic change management process starts with an assessment of the organization’s Mission and Vision, challenges (pains), enablers and values.  The following strategically-relevant items form the scope to be scrutinized by business managers:  The company's mission statement  The company's strategic plan/vision  The financial status of the organization  How the organization is currently structured and operating  The level of expertise of their employees  Customer satisfaction level  Tools:  SWOT Analysis  PESTEL Analysis STEP 1: FORCES FOR CHANGE - INTERNAL AND EXTERNAL STRATEGIC ASSESSMENT
  36. 36. STEP 5: LIMITING CONDITIONS - FORCE FIELD ANALYSIS
  37. 37.  Refer to pages 45-47 in the Learner Guide  By referring to the 7-step organizational change management process, apply each of the steps in your working environment.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 8
  38. 38.  Innovation and Creativity  Knowledge Management and Learning Organization  Organizational Development (OD) CONTEMPORARY CHANGE MANAGEMENT ISSUES
  39. 39.  Defining innovation  The characteristics of an innovative working environment  Processes, actions and approaches to create innovation  Creativity/innovative techniques STIMULATING INNOVATION AND CREATIVITY
  40. 40. COMPONENTS OF LEARNING, INNOVATION AND GROWTH
  41. 41.  Refer to page 51 in Learner Guide  By referring to the characteristics of an innovative working environment, evaluate the degree to which your organization is an innovative organization. Identify areas of improvement and recommend change strategies.  Also indicate which creativity/innovation techniques are most appropriate in your working environment.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 9
  42. 42.  Forging linkages between its structured and unstructured information in a way to use it for a specific problem situation  Organizations need to understand who has knowledge and develop support systems for its creation and application.  Organizations need to create knowledge maps  Reflect on existing knowledge  This also makes it possible to identify the gaps in the existing knowledge, and to focus future knowledge-gathering efforts.  Build rewards for knowledge creators and brokers  Organizations need to harness knowledge to become innovative  Redistribute and share the knowledge  Apply the knowledge THE FEATURES AND CHARACTERISTICS OF KM
  43. 43.  Creating a conducive working environment for knowledge management  Act as a role model and leading by example  Developing, implementing, communicating and revising plans for KM systems  Creating processes and structures for KM systems  Stimulating knowledge creation and transfer of learning  Rewarding and recognizing knowledge creation  Liaising with other important role players and stakeholders  Building a culture of learning and a learning organization THE ROLE OF THE MANAGER IN IMPLEMENTING KNOWLEDGE MANAGEMENT AND LEARNING
  44. 44.  Refer to page 55 in Learner Guide  By referring to the features and characteristics of a Knowledge Management working environment, evaluate the degree to which your organization is promoting KM and a learning organization. Identify areas of improvement and recommend change strategies.  Also indicate the role of the manager in stimulating and creating knowledge and learning in your working environment.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 10
  45. 45.  Summary of the key learning points  Questions  Conclusion  Good luck with the implementation of change management processes, systems and methods CONCLUSION
  46. 46.  CHARLES COTTER  084 562 9446  charlescot@polka.co.za  LINKED IN  TWITTER: Charles_Cotter CONTACT DETAILS

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