Change Management for business

1. CHANGEMANAGEMENT
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2. Agenda
• Need for Change
• Resistanceto Change
• Typesof organizational Change
• What is ChangeManagement?
• Importance of ChangeManagement
• Barriersto ChangeManagement
• Three levels of ChangeManagement
• ADKARChangeManagement model
• Kotter’s Change Management model
• Factors of successfulChangeManagement
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3. Need for Change
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4. Need for Change
What isChange?
• Changeis ageneral transition of something.
• Organizational change can come in avariety of shapesand sizes.Forexample – Achange in a
company's structure, strategy, rules, processes,technology, or culture.
• Thechange could be planned for yearsor imposed on an organization due to achange in the
environment.
Current
Position
Desired
Position
Change
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5. Need for Change
External forces
• Social
• Demographic
• Political
• Cultural
• Economic
• Technological
• Industry
• Customer demands
• Competition
Internal forces
• Low performance
• Low satisfaction
• Introduction to new mission
• Introduction to new leadership
• Conflict
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6. Resistanceto Change
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7. Resistanceto Change
• Changeis the only constant. But the problem is, no one likes change.
• According to asurvey done by SHRM,employee resistance to change is one of the main reasonsfor
its failure.
Reactionsto Change
Active
Resistance
Passive
Resistance
Compliance
Enthusiastic
Support
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8. Resistanceto Change
Whydopeople resistChange?
• Changedisrupts our habits.
• Based upon the personalities, some people are risk-averse.
• Changebrings feelings of uncertainty.
• Changecan affect performance negatively under the new system. So,there’s a fear of failure.
• Changemay affect power and influence within the organization.
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9. Resistanceto Change
Isall resistance bad?
• In some cases,resistance to change can be agood force.
• Opposition to change is an important form of feedback that should not be overlooked. Why are so
many individuals opposed to the planned changes?Are they convinced that the new systemwill fail?
If that's the case, why?
• It is feasible to achieve amore successful change by taking input from people and implementing
their suggestions into the change effort.
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10. Typesof Organizational Change
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11. Typesof Organizational Change
Organization
Changes
Reactive Changes Proactive Changes
• Reactivechanges– When external forces drive an organization to make
changes quickly.
• Proactive changes– When a number of variables cause an organization to
consider and ultimately conclude that certain changes are required.
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12. What isChangeManagement?
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13. What isChangeManagement?
• Asystematic strategy to coping with the transformation of an organization's goals, processes,or
technologies is known as ChangeManagement.
• Thegoal of change management is to put in place techniques for bringing about change, controlling
it, and assisting people in adapting to it.
• Individuals, teams, and organizations must have a systematic plan in place to move from their current
position to adesired future position.
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14. What isChangeManagement?
The7 R’sof ChangeManagement
1. Who raisedthe change?
2. What is the reason for the change?
3. What return is required from the change?
4. What are the risksinvolved in the change?
5. What resourcesare required to deliver the change?
6. Who is responsiblefor the “build, test and implement” part of the change?
7. What is the relation between this change and other changes?
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15. What isChangeManagement?
Unfreeze Change Refreeze
Organizational change management can be divided into three manageable stages–
• Unfreeze:When preparing for forthcoming changes,a team or organization
must unfreeze the existing processes and views.
• Change:This is the implementation phase. Effective change necessitates
clear and consistent communication across all relevant channels.
• Refreeze:The refreeze stage securesthe new process, assuming accurate
input and continued communication happened during the “change” step.
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16. Importance of ChangeManagement
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17. Importance of ChangeManagement
• Reducesoperational costs and improves revenue.
• Helps in remaining relevant and profitable.
• Increasesthe probability of project success.
• Ensuresamatch between demandsand results.
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18. Barriersto ChangeManagement
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19. Barriersto ChangeManagement
• Lackof executive support
• Inadequate resourcing
• Resistance to change
• Change-resistant structure or culture of the organization
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20. Three levels of ChangeManagement
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21. Three levels of ChangeManagement
Changemanagement canbe viewed at three different levels –
Individual Change
Management
Organizational Change
Management
Enterprise Change
Management
Individual change management is an understanding of how one
personmakesa change successfully.
Organizational change management is a framework for addressing
the impact of new businessprocesses, structural changesin the
organizationor cultural shifts.
Onceembraced on an individual and organizational
level, change should be embedded in your core
values.
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22. ADKARChangeManagement Model
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23. ADKARChangeManagement Model
A
D
K
A
R
• Changeis hard. But using ADKARcan increasethe chancesof making the process of bringing change
successful.
• This model focuses on individuals. Driving individual change will, in turn, drive organizational change.
Awareness – of the need of change
Desire – to support and take part in the change
Knowledge – of how to change
Ability – to implement the change
Reinforcement – to sustain the change
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24. Kotter’s ChangeManagement Model
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25. Kotter’s ChangeManagement Model
This model is divided into three phasesand it haseight steps.
1. Create urgency
2. Build a coalition
3. Create avision
4. Communicate the vision
5. Empower others
6. Create quick wins
7. Build on the change
8. Embed the change
Create a climate for change
Engageand enable the organization
Implement and sustain
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26. Factorsof successfulChangeManagement
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27. Factorsof successfulChangeManagement
• Plan– Start with the end goal in mind and establish plans that are aligned with
your overall objectives.
• Communicate – Communicate the change, and its numerous components, to
key internal and external stakeholders.
• Integrate – Staff and stakeholders should not feel excluded from the change
process.
• Motivate – Motivate the staff for their contribution in the business.
• Manage the work load – Changecan be along process,soexpect delays and
flaws asemployees learn.
• Evaluate– Measure KPIs,take input from employees, and make any necessary
changes to the original goals.
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28. Summary
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