Change management


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  • 2 2 No longer a question of WHETHER changes are needed anymore, but whether they can keep pace with the need and leapfrog our competitors they’d better not be in the same business 5-10 years from now that they’re in today. they’d also better be the first, not the last, to know why, and the first to know what to do about it. Present organization is a good predictor of what will PREVENT you from developing the kind of organization you need -- Like all creatures, it has a vested interest in continuing to exist. In approaching change -- the model of unfreeze, transition, then refreeze worked well for many years -- and was okay for singular changes. Today’s and tomorrow’s challenges require a much more dynamic, and constant approach.
  • A typical question clients ask is “What is the profile of a successful change agent?” Although this is a very comprehensive list, it highlights some of the attributes or features of the kind of individuals that can successfully enable change in organizations. Refer participants to “Characteristics of Successful Change Agents” in their PG’s. Refer participants to “Change Agent Assessment” tool in the tool section of their PG’s. This tool helps us assess the difference between “Technical Experts” and “Change Facilitators.” It could be used as a self-assessment tool or as a mechanism to provide client personnel feedback on their skills as “Change Agents.”
  • Change management

    1. 1. Change Management
    2. 2. Contents • Forces for Change • Principles of Change • Five Activities Contributing to Effective Change Management • Motivating Change • Creating Vision of Change • Developing Political Support • Managing the Transition • Sustaining Momentum • Elements of Change 2
    3. 3. Rate of Change “When the rate of change outside exceeds the rate of change inside, the end is in sight” Jack 3
    4. 4. Forces for Change... “Knowledge Mergers & economy” Virtual organizations acquisitions Electronic Digital convergence Privatizations commerce “Information Superhighway” ... are transforming the world of 4 A-2
    5. 5. Rate of Success in Change Efforts Moderately Successful 4% Very Successful 9% Not Very 27% Successful Too soon to tell 27% 33% 5
    6. 6. Two Sides of Change Technical Side of Change Technical Side of Change Human Side of Change Human Side of 6
    7. 7. Principles of Change 1. Change is a process that can be enabled, not managed 2. The change process must be linked to business and performance goals 3. Building capacity to change is a strategic imperative 4. Building capacity for change is an evolutionary 7
    8. 8. Principles of Change 5. Effective change processes require a systemic view of the organization 6. The change process involves both organizational and personal transitions 7. Behavioral change is a function of perceived need and occurs at the emotional, not the intellectual 8
    9. 9. Principles of Change 8. Resistance to change is predictable reaction to an emotional process and depends on a person’s perception of a change situation 9. A handful of change enablement best practices account for the success of most change processes 10.Change strategies are 9
    10. 10. Five Activities Contributing to Effective Change 10
    11. 11. Five Activities Contributing to Effective Change Management 1. Motivating Change 2. Creating Vision of Change Effective 3. Developing Political Change Support Management 4. Managing the Transition of Change 5. Sustaining 11
    12. 12. 1. Motivating Change Sensitize organizations to pressure for change Reveal Motivating change discrepancies and creating between current readiness for and desired states change Convey credible positive expectations for the 12
    13. 13. Force Field Analysis Model Restraining Forces for Change Current Situation Driving Forces for 13
    14. 14. Force Field Analysis Model Strengthening or adding driving forces Removing or reducing restraining Change forces Changing the direction of some of the 14
    15. 15. Group Exercise • Take this opportunity to think of a situation in your organization where Force Field Model could be demonstrated. Begin by identifying a change being instituted in your organization. • List the driving forces • List the restraining 15
    16. 16. Barriers to Change 20% 40% 60% 80% 100% Resistance to Change Limitations of Existing Systems Lack of Executive Commitment Lack of Executive Champion Unrealistic Expectations Lack of Cross-Functional Team Inadequate Team and User Skills Technology Users Not Involved Project Charter Too Narrow Source: Information Week, June 20, 16
    17. 17. Individual Resistance Habit Economic Factors Job Security Individual Resistance Fear of the Unknown Selective Information 17
    18. 18. Organizational Resistance Threat to Established Power Relationship Threat to Established Resource Allocations Structural Inertia Organizational Resistance Limited Focus of Change Group 18
    19. 19. Four Phases of Transition Denial Commitment Past Future Resistance 19
    20. 20. Some of the Signs in Each Phase Denial Resistance • “How good things were in • Anger the past” • Loss and hurt • “It can’t happen here” • Stubbornness • Numbness • Blaming others • Everything-as-usual • Complaining attitude • Getting sick • Refusing to hear new • Doubting your ability 20
    21. 21. Some of the Signs in Each Phase Exploration Commitment • “What’s going to happen to • “Where I am headed” me?” • Focus • Seeing possibilities • Teamwork • Chaos • Indecisiveness • Vision • Unfocused work • Cooperation • Energy • Balance • Clarifying goals • Seeing resources • Exploring 21
    22. 22. Overcoming Resistance to Change Education and Negotiation Communication Overcoming Participation and Manipulation Resistance Involvement and Cooptation to Change Facilitation and Coercion 22
    23. 23. 2. Creating Vision of Change Bold and Valued Outcomes Constructing the Envisioned Future Desired Future 23
    24. 24. 3. Developing Political Support Assessing Change Agent Power Developing Identifying Key Political Stakeholders Support Influencing 24
    25. 25. Roles in Organizational Change These are individuals or groups with Change the power to determine that a change Sponsor will occur These are individuals or groups Change responsible for seeing that a previously Agents determined change occurs These are individuals or groups who are Change asked to change something (knowledge, Target skills, or behavior) as a result of the 25
    26. 26. Influencing Key Stakeholders A set of questions designed to profile an individual stakeholder: • What is their source of power ? Power • What they can control: money, time, resources, people, information ? • Who they can influence: friends, admirers, those who feel obligation ? • Reluctant and occasional What is their • Make response to threats style of using • Assertive and direct power? • Deception and 26
    27. 27. Influencing Key Stakeholders Effect of Change How does the • Changes their power ? change really affect • Affects other needs ? them? • Affects goals, objectives and interests ? • Opposition, uncertainty or support ? What is their likely response to the • Action now or ‘wait and see’ ? change? • Open action or hidden action ? • Individual action or acting with others ? 27
    28. 28. Influencing Key Stakeholders Effect of Change What would be the • Significant or limited ? impact of their • Local or widespread ? response? • Recoverable or permanent ? 28
    29. 29. Influencing Key Stakeholders Influencing Key Stakeholders What would make • Information / understanding ? them more • Involvement and ownership ? supportive of the • Changes in planned actions? change? • Direction from more senior managers ? • Evidence of the success of the change ? What would make • Personal threat ? them less • Non-involvement in decisions ? supportive of the • Personal rivalries ? change? • Insufficient evidence in ‘trial period’ (defined by them) ? 29
    30. 30. 4. Managing the Transition Current Desired Future State State Transition State • Activity Planning • Change Management 30
    31. 31. Change Management Team : Roles Example • Corporate Management Head (Executive Sponsor) • Key project accountability and ownership • Report to CEO on project outcomes/success Head • Coordinate overall change program Organizational • Develop clear change strategies for change Development • Responsible and accountable for overall success (Change Leaders) • Develop individual and team change capability • Provide clear communication to all key stakeholders Communication Role on change related issues (Change Agents) • Develop 2-way communication channels to foster ongoing organizational change • Provide expert HR advice on personal transitions and Human Resources Role support (Change Agents) • Provide Change Office & project based HR 31
    32. 32. Change Management Team : Roles Example • Take responsibility for key initiatives • Coordinate project team Project Leaders • Report to business unit GM and Change Office on project progress Leadership Advisory • Develop leadership change management capability Role • Provide ongoing change advice to leaders Process Co-ordination • Coordinate project infrastructure & integration Role • Prioritize and plan overall project timeframes • Establish clear project performance measures and Performance reporting systems Management Role • Manage ongoing project performance • Report to Executive on overall 32 - 5 C
    33. 33. Critical Skills of Change Agents Understands Appreciates Anticipates change diversity and manages dynamics resistance Has high Understands Manages credibility power and multiple tasks 33
    34. 34. 5. Sustaining Momentum Providing Resource for Change Building a Support System for Change Agents Sustaining Developing New Momentum Competencies and Skills Reinforcing New Behaviors Staying the 34
    35. 35. Five Activities Contributing to Effective Change Management 1. Motivating Change 2. Creating Vision of Change Effective 3. Developing Political Change Support Management 4. Managing the Transition of Change 5. Sustaining 35
    36. 36. Elements of Change 36
    37. 37. Elements of Change Enablement n tio Realizing n si ng ra i ign lT Future s na De State tio Change a iz Architecture an Communication rg O g Performance Cultural din Culture Management Capacity g Lea Capacity nin gin Leadership Capacity Individual Be Leadership & Team n Capacity Capacity Individual & o iti Team Capacity ns Current ra g State rin T plo al Ex Ending on rs 37
    38. 38. Elements of Change Enablement Change Leadership Architecture Capacity Team & Individual Communication Change Capacity Process Performance Cultural Management Capacity Organizational Personal Transition 38
    39. 39. Change Enablement – Best Practices There is an explicit strategy and Change structure which define the nature and Architecture sequence of specific activities and resources required to facilitate the change process. An infrastructure and plan is in place to Communicat build awareness of change goals, ion communicate progress toward attainment of these goals, and encourage collective ownership of the change process and 39
    40. 40. Change Enablement – Best Practices Human Resources processes - Performance recruiting, training, measuring and Management rewarding - are aligned to drive new behaviors in support of the business 40
    41. 41. Change Enablement – Best Practices Leaders’ values and behaviors are Leadership aligned with the business vision; leaders Capacity possess the skills to drive the change process to completion, and accept the responsibility for doing so Team & Actions have been taken to increase Individual individuals’ and teams’ ability to enact Capacity the business vision and operate effectively in the new 41
    42. 42. Change Enablement – Best Practices Cultural The organization has assessed the Capacity alignment of the current culture with the change process and built new values and behaviors as appropriate to support 42
    43. 43. Recommended Further Readings: 1. Thomas Cummings and Christopher Worley, Organization Development and Change, South Western College Publishing 2. Lynn Fossum, Understanding Organizational Change, Crisp Learning 43
    44. 44. End of Material If you find this presentation useful, please consider telling others about our site ( 44