Strategic Delivery of Change Management


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introduction to change management, what is change,categories of change, why change,organizational change,reaction of change,lewins theory, philosphy of change.

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  • Islamic change model
  • CAUTION: WHITE WATER AHEAD!In his groundbreaking book Future Shock, Alvin Toffler suggested that thepace of change was accelerating. Reality has confirmed his assertion. Intoday’s truly global economy, to use Peter Vaill’sanalogy, the organizational world is one of “permanentwhite water.” The way to stay afloat nowis to go into a “heads-up, sensing, searching, sorting,anticipating, adjusting, survival mode.” Payattention! Scan the environment. Gather informationquickly and process it even faster. Yourlife depends on it. As external changes accelerate and competitive advantagesshift, successfully leading change becomes an organizational imperative.3g. Toy industry of china,
  • Figure I.1(above) depicts a small group of people, the team of change agents, beginninga trek from the lower left corner. They are in a storm. Visions of a sunnyparadise (upper right corner) feel like fantasy but still capture their imaginationas something they want to achieve, something much better than their current reality.Not quite revealed to them yet is the complex journey they face. Each stepalong the twisted path is a chapter in this book.Since the mission is to implement a project office as a vehicle for organizationalchange, the first step on the journey is to discover the processes necessaryto lead an organization to change. Following the process outlined in Chapter One,the team identifies many clear dangers. Some of these dangers may lead to sidetracksor discontinuing the journey. To go onward the change agents need to createor identify a sense of urgency for the change among other members of theorganization as well as determine how their efforts will add value to the organization.Once they figure this out, the team realizes it has little chance of successwithout developing some clout to deal with powerful political forces. The change agents understand that few people will listen to them just because they have a goodidea. So the next step on the journey is to develop political acumen, a powerfulsponsor, and a coalition of organization members that help guide them on theirjourney. With backing from that group, they proceed to focus on what functionsthe project office will perform, how those functions will add value to the organization,and how they expect those functions to expand and grow. This vision andstrategy is put into a succinct plan and a language that others in the organizationunderstand so that the team of change agents can tell their tale—harness internalsupport—to enlist the help of the entire organization.This period spent creating the conditions that will enable change is critical tothe success of the entire endeavor. Project managers recognize this time as akinto the preparation of a project plan, which indeed it is. It is also the honeymoonperiod for the project team, for during this time—while the project office is beingdiscussed—it will not yet affect people’s lives. That being the case, the project teamcan expect that serious opposition will not yet be formed. This is analogous to the“hundred days” that new U.S. presidents typically have before serious oppositionmounts to their policies and programs. The change agent team can expect seriousopposition to arise after this part of the journey is completed. Not known yetis what awaits them in the middle section of Figure I.1. Implementation usuallyrequires invading new territories or jungles—other functional areas or businesses.Sensing invaders, the lions, tigers, and bears emerge from hiding places in the forest,ready to attack. For the change agent team to be ready for this opposition,they need to develop political acumen while time is available.Since the first part of the journey is a planning period, the team can expectthe usual problems associated with project planning. Some will say the planningis a waste of time. Some may press for quick results and eschew the entire idea ofplanning. Others may agitate to quicken the process and get into action sooner.But project and program managers know better. They know that planning is essentialfor success and can easily take 40 percent of the entire time allotted to aproject. For those who insist on skipping this first phase and taking a shortcut, weoffer two cautionary tales.Cautionary TalesLands beyond the bounds of the known world tantalized the imaginations of ancientscholars, inspiring visions of a lush empire far to the south. Maps, drawnfrom supposition and mysticism, identified this area as Terra Incognita, the unknownland, newly discovered but not yet fully known. Only centuries later when bravesailors traveled south did they discover the world was much different. As we now know, the maps were incorrect, and their assumptions were false. However, whatlies beyond boundaries is always mysterious and awaits discovery. The emptinesstantalizes us to explore and conquer this space.Organizational change agents exploring the future of project managementface similar challenges as the earlier explorers. Misconceptions abound about whatis possible. Newly discovered fads drive managers to launch ill-conceived projectsor initiatives. Modern explorers also face unknowns, resistance, and chaos.More recently, in the spring of 1846, a group of immigrants set out from Illinoisto make the two-thousand-mile journey to California. They planned to usethe well-known Oregon Trail. One part of this group, the Donner party, was determinedto reach California quickly and so decided to take a shortcut. They traveledwith a larger group until reaching the Little Sandy River. At this point thelarger party turned north, taking the longer route up through Oregon and thento California. The Donner party headed south, taking an untried route known asHasting’s Cutoff. Since no one, including Hastings himself, had ever tried this cutoff,they had little idea of what to expect. Their first barrier was the Great SaltLake Desert, where they encountered conditions that they never imagined—searingheat by day and frigid winds at night. A more formidable barrier was encounteredin the Sierras. After a severe snowstorm on October 31 blocked thetrail, the party was forced to camp in makeshift cabins or tents just to the east ofthe pass that today bears their name. The majority of these unfortunates spent astarving, frozen winter—the worst ever recorded in the Sierras—trapped in themountains. The few survivors of that camp, who wound up resorting to cannibalismto make it through the winter, reached California long after the other membersof the original Illinois group—and in far worse spirits.The first conclusion that can be drawn for the project office team is that manyhave gone before you with a journey of organizational change. Their collectiveexperience forms the equivalent of the Oregon Trail, a process showing a knownway to reach the desired goal. Although this path may seem long, ignore it at yourown peril. Second, although the Oregon Trail was well known and well traveled,it was not necessarily easy. There were many difficulties along that trail and nodoubt some people died even though they were on the known route. So taking theOregon Trail is no guarantee of success—but it seems to greatly increase thechances. Finally, taking a shortcut leads into unknown territory like the Great SaltLake Desert or Terra Incognita—the unknown land—as illustrated in Figure I.1.The route may look good on the map, but the map is not the territory. The bestadvice we give those considering a shortcut is from Virginia Reed, a Donnerparty survivor, who said, “Remember, never take no cutoffs and hurry along asfast as you can.”
  • Strategic Delivery of Change Management

    1. 1. Strategic Delivery of Change PM-654 Ilyas Mahmood Ahmad October’ 13 School of Professional Advancement, UMT
    4. 4. Pain of Change “I am all for progress; it’s change I don’t like” »Mark Twain • Neatly sums up dilemma facing organizations. How they handle these changes and move forward will determine either their continued success or their likely demise 4
    5. 5. 5
    6. 6. • Select one word that symbolizes the world we live in – CHANGE • Change was always there but it used to be incremental • Today we are faced with change that is exponential – change heaped upon change • Change flows and endures 6
    7. 7. SOME NOTABLE CHANGES • Globalization of Markets – Companies competing in International Markets – Local Companies exposed to foreign competition • Technological Changes – Computer and size – CAD / CAM – Optical fibers – Transportation – Internet
    8. 8. SOME NOTABLE CHANGES Cont’d • Political Realignment – Free Trade Cooperation (WTO) – Emergence of China – War on terror • Changing Demographics – Decline in work ethics – More women joining workforce
    9. 9. SOME NOTABLE CHANGES Cont’d • Organizational Restructuring – Downsized , Resized and Flattened – Alliance are formed and Mergers are on the rise • Changing Customer Preferences – More choosy, more demanding and better informed – Media explosion
    10. 10. CATEGORIES OF CHANGE • HR Magazine suggests change can fall into the following broad categories: – Strategic change – Comes about when ..alterations are made to an organization's functional parts, for example, through mergers, acquisitions or consolidations; – Leadership change – Relates to ..reconfiguring the organization's leadership. This can be through any number of reasons including retirement, ill-health or death, sacking, a leadership coup, or plain old natural transition; – Cultural change – Relating to the human ..aspects such as the relationship between managers and employees, or staff and customers. This can be the trickiest and most unpredictable area of all; – Cost-cutting – When certain activities ..and operations are eliminated; and – Process change – Which focuses things get done and how they can be improved. • Others break it down to the four change categories of process, system, structural and organizational
    11. 11. A change - on time - on budget on target • Completing a change on time, on budget, and on target actually begins with an educated, constructive perspective regarding the concept of organizational change. • To begin to understand this concept, you need only take a look at some of its more or less recent history – Production history • Post WW-II, US- the only manufacturers, era of mass production, emergence of Japanese quality products-“Who are these guys?”, globalization-technology explosion, communication-e-mail, faxes, videoconferencing, media • Welcome to the new economy, where firms you never heard of, from places you aren’t familiar with, can suddenly appear on your radar screens one day and steal your competitive advantage the next.
    12. 12. THE CHANGING ORGANIZATIONAL LANDSCAPE • What is a better metaphor for today’s organizations—machines or living organisms? – Not long ago, we tended to depict organizations in engineering terms such as fine-tuned machines. – Lately, we have begun to study and portray organizations as living, breathing organisms. – The physical state is constrained, even static. The biological state is one of continuous movement and change.
    13. 13. The Changing World & We • Changes in Pakistan – were we prepared? – are we prepared? – Creation of Pak-no infrastructure to handle the changed scenario • As a result-corrupt politicians, no land reforms, martial law, no rules & regulations, same old colonial systems, …… • After creation - talbanization, law & order situation, 18th amendment -autonomy to provinces-revenue generation & collection, education system, law & order, population planning, flood & crises control, more provinces-smaller manageable units, urbanization, – Reactionary rather than pro-active behavior • Bi-polar world to uni-polar world, new world order, geo-political changes, post 9/11 scenario – World environment changed, global warming, global village, IT revolutionized, ICT-mobile, electronic media, WTO • & …….
    14. 14. • In a progressive country, change is constant; . . . change . . . is inevitable. — Benjamin Disraeli • In his Origin of Species, it is not necessarily the biggest or most powerful that survive, but those who are able to adapt. Adapt or die! — Darwin
    15. 15. WHY CHANGE ? • • • • • • • • Change for Better ! Change for Breakthrough! Change for continual improvement ! Change to eliminate further errors! Change to reenergize! Change is a Journey of Excellence ! Change because YOU want to CHANGE ! CHANGE TO SURVIVE !
    16. 16. Change management is:  The process, tools and techniques to manage the people-side of change to achieve the required business outcome(s)
    17. 17. Barriers to Change Why do people resist change? • The status quo provides a certain comfort zone – Need for stability – Need for predictability – Fear of the unknown – Others???
    18. 18. “FUTURE SHOCK” • Pace of change is accelerating • Type of changes and the speed of their introduction over powers the individual’s ability to adapt to them with the result that one can no longer absorb change without displaying dysfunctional behavior • Society is in state of flux • Change is so frequent that there is no long term stability Alvin Toffler (1984)
    19. 19. • Scores of definition of Organizational Change • Simplistic – purpose is to address the following questions: – Why do we need to change? – Who is or should be involved? – What needs to change, and what does it need to change to? – How are we going to change? 20
    20. 20. What is Organizational Change? • Organizational change: the process by which organizations move from their present state to some desired future state to increase their effectiveness 21
    21. 21. Targets of Change in Organizations • Four different levels – – – – Human resources Functional resources Technological capabilities Organizational capabilities 22
    22. 22. The Change Process 1. Change is both toxic and tonic. You are: • • • • • thrilled by possibilities excited by newness stimulated by prospects fearful and uncertain anxious and worried 23
    23. 23. 2. Change requires exchange/expanded thinking You must: • give up something to get something • unlearn and relearn • exchange a secondary role for increased power and leadership • exchange old values for new values • give up your cushion of comfort for greater personal visibility and accountability 24
    24. 24. 3. Change is stressful You realize: • • • • the unknown is part of the change there exists uncertainty and ambiguity about results the demands have increased there are different pressures • you must learn to cope 25
    25. 25. The Change Cycle Three discrete stages: • ENDINGS stage: letting go of something stable, known and dependable • NEUTRAL ZONE: forced to hang in mid-air, without orientation to the past or the future • BEGINNINGS: stage, where we plunge headlong into something unknown and unknowable--our own future The Chinese word for change is two characters: 26 Danger And Opportunity
    26. 26. Reactions to Change People react differently to change. These types are: • The Innovators • The Early Adopters • The Early Majority • The Late Majority • The Late Adopters • The Diehards 27
    27. 27. Movement In organizational change three things must occur: Unfreezing requires that there be a change in the status quo before there can be a change to a new condition • This is the second step in the process and is called transformation. It is the movement that must occur for the organism to change • Finally, the change is made permanent through the process of refreezing. This becomes the new equilibrium point 28
    29. 29. Adaptation to Change • Successful adaptation to change is as crucial within an organization as it is in the natural world • Just like plants and animals, organizations and the individuals in them inevitably encounter changing conditions that they are powerless to control • The more effectively you deal with change, the more likely you are to thrive 30
    30. 30. Forces for and Resistance to Change 31
    31. 31. Create Quantum Change Incrementally • Many organizations are looking for ways of restructuring and reshaping their activities to deliver quantum change in a quantum way • The reality - most quantum change occurs incrementally • Experiment with frogs …. 32
    32. 32. Create Quantum Change Incrementally • If the temperature of the water is suddenly increased, the frog realizes it and jumps out of the water • If the temperature is very slowly increased, one degree at a time, the frog does not realize it till it boils to death 33
    33. 33. Introducing Change Systematically 1. Assessment – Critical analysis of magnitude and difficulty of change plus the risks involved – Consider these two factors: • The number of stakeholders involved – Smaller is easier • The complexity of the Process/Task/Operation to be altered – Simple is easier 34
    34. 34. Introducing Change Systematically 2. Description – Describe the future you want to see as a result of the change – List the stakeholder groups likely to be impacted 35
    35. 35. Introducing Change Systematically 3. Current factors influencing the possible change Your change effort will succeed or fail depending on these elements: – Dissatisfaction with the current state • • • – – Benefits from the “New Order” - Stakeholders Individualized benefits • – Perception of stakeholders about their risks and benefits Sound strategies/Action steps • – – Successful change requires enough “pain” by the stakeholders in status quo Greater the “pain” greater the “gain” Clarify the pain to stakeholders Stakeholders should perceive the strategies/actions to be viable Gathering resources – Money, human, equipment Time frame – Change takes time – Not automatic • 36 Remember it takes time to work with stakeholders
    36. 36. Introducing Change Systematically 4. Actions to improve conditions to inaugurate change Accepting change may not be easy for stakeholders What should you do? Elevating dissatisfaction – Collect data and prove – – – – – Enhancing the future – Demo stakeholders Publicizing potential gains Pursue the correct steps – Consider alternatives Evaluate required resources – Justify new costs Appraise time involved – Educate stakeholders 37
    37. 37. Introducing Change Systematically 5. Appraising your readiness – – – – – – Dissatisfaction with the status quo Perception of the future state Benefits from the change Perceptions regarding actions steps Available resources Available time 38
    38. 38. Introducing Change Systematically 6. Act – Work closely with the stakeholders with the possible new future – “Liberate” them from the less-than-satisfactory status quo – Dissatisfaction with the status quo – Allow them to participate fully in the change effort 39
    39. 39. Communicate Change • Share information with employees as soon as possible – public sector dilemma • Keep in mind that quantity is fine, but quality and consistency are crucial. You can communicate too much insignificant or insensitive information 40
    40. 40. Resistance to Change Organizational Arthritis • Resistance to change may be traced to individual, group, or organizational characteristics • The organizational culture and power structure help to maintain stable behavior patterns in organizations – They are self-reinforcing and potentially significant barriers to change – The very nature of change may put them in jeopardy – It is therefore likely that the change efforts will not work unless they are compatible with the organizational culture and the power structure – This is a very well-documented reason why many change efforts fail 41
    41. 41. Resistance to Change Individual • The key to managing resistance is sincere selling. This approach addresses all the issues we have raised about resistance: – It recognizes the inevitability of resistance, so it addresses resistance honestly and consistently – It acknowledges that resistance will be experienced differently based on positive or negative reactions to change 42
    42. 42. Resistance to Change Individual – It reflects how resistance can be expressed overtly or covertly and advocates that overt resistance be encouraged, to get problems out in the open – It warns that people may not be comfortable expressing their true reasons for resistance and encourages creating an atmosphere that allows honest communication 43
    43. 43. Lewin’s Theory 44
    44. 44. “It is not that people resist change. It is the fear of the transition that space between the old and the new” 45
    45. 45. Philosophy of Change • Change Happens • Anticipate Change – Noticing small changes early help you adapt to the bigger changes that are to come • Monitor Change • Adapt to Change Quickly 46
    46. 46. Philosophy of Change • • • • Enjoy Change ! Be Ready to Change Quickly If You Do Not Change, You Can Become Extinct Develop Change Philosophy in Everything You Do 47
    47. 47. Brain Teasers “Don’t change with the times – change before the times” “It is not the strongest of the species that survives, nor the most intelligent, but rather the one most responsive to change” - Charles Darwin “Every organization must prepare for the abandonment of everything it does” -Peter Drucker 48
    48. 48. Brain Teasers • • • • Framework: an essential supporting structure; Model: a simplified description of a system; Tool: a thing used in an occupation or pursuit; Technique: a means of achieving one’s purpose. Concise Oxford Dictionary • When a subject becomes obsolete, we make it a required course! —peter drucker
    49. 49. Concludes… 50