The Star Model™
The Star Model™ framework for organization design is the foundation on which a
company bases its design choices. The framework consists of a series of design policies
that are controllable by management and can influence employee behavior.
The policies are the tools with which management must become skilled in order
to shape the decisions and behaviors of their organizations effectively.
POLICIES STRATEGIES
They are general statements
that guide organizational
decision-making.
They are specific plans made
to achieve specific goals.
They don´t require action plan. They require action plan.
They are standing plans made
for repetitive activities.
They are single use plan made
for non- repetitive activities.
They are guidelines to
managerial action and decision
making.
They guide commitment of
organizational resources in a
specific direction.
They are made for smooth
conduct of the organization as
a whole.
The are made for achieve a
specific objective.
Strategies and Policies:
Both strategies and policies help to make decisions to achieve
organisational goals.
Clear strategies and policies provide right direction and guidance to organizational goals and plans.
The Star Model™
Strategy.
Strategy is the company’s formula for winning. The company’s strategy specifies:
goals and objectives, values, missions, and the basic direction of the company.
The strategy specifically delineates the products or services to be provided, the
markets to be served, and the value to be offered to the customer. It also specifies
sources of competitive advantage.
Area Description
Specialization.
It refers to the type and numbers of job specialties used in
performing the work.
Shape.
It refers to the number of people constituting the
departments (that is, the span of control) at each level of the
structure.
Distribution of power.
In its vertical dimension, refers to the classic issues of
centralization or decentralization. In its lateral dimension, it
refers to the movement of power to the department dealing
directly with the issues critical to its mission.
Departmentalization.
Is the basis for forming departments at each level of the
structure. The standard dimensions include functions,
products, workflow processes, markets, customers, geography.
The Star Model™
Structure.
The structure of the organization determines the placement of power and authority
in the organization. Structure policies fall into four areas:
The Star Model™
Processes.
-Information and decision processes cut across the organization’s structure.
-Management processes are both vertical and horizontal.
Horizontal Processes.Vertical Processes.
VP allocate the scarce resources of
funds and talent. Vertical processes
are usually business planning and
budgeting processes.
HP are designed around the workflow,
such as new product development or the
entry and fulfillment of a customer
order.
The Star Model™
Rewards.
Th.
The Star Model™The Star Model™ framework for organization .docx
1. The Star Model™
The Star Model™ framework for organization design is the
foundation on which a
company bases its design choices. The framework consists of a
series of design policies
that are controllable by management and can influence
employee behavior.
The policies are the tools with which management must become
skilled in order
to shape the decisions and behaviors of their organizations
effectively.
POLICIES STRATEGIES
They are general statements
that guide organizational
decision-making.
They are specific plans made
to achieve specific goals.
They don´t require action plan. They require action plan.
They are standing plans made
for repetitive activities.
They are single use plan made
for non- repetitive activities.
2. They are guidelines to
managerial action and decision
making.
They guide commitment of
organizational resources in a
specific direction.
They are made for smooth
conduct of the organization as
a whole.
The are made for achieve a
specific objective.
Strategies and Policies:
Both strategies and policies help to make decisions to achieve
organisational goals.
Clear strategies and policies provide right direction and
guidance to organizational goals and plans.
The Star Model™
Strategy.
Strategy is the company’s formula for winning. The company’s
strategy specifies:
goals and objectives, values, missions, and the basic direction
of the company.
The strategy specifically delineates the products or services to
be provided, the
markets to be served, and the value to be offered to the
3. customer. It also specifies
sources of competitive advantage.
Area Description
Specialization.
It refers to the type and numbers of job specialties used in
performing the work.
Shape.
It refers to the number of people constituting the
departments (that is, the span of control) at each level of the
structure.
Distribution of power.
In its vertical dimension, refers to the classic issues of
centralization or decentralization. In its lateral dimension, it
refers to the movement of power to the department dealing
directly with the issues critical to its mission.
Departmentalization.
Is the basis for forming departments at each level of the
structure. The standard dimensions include functions,
products, workflow processes, markets, customers, geography.
The Star Model™
Structure.
The structure of the organization determines the placement of
power and authority
in the organization. Structure policies fall into four areas:
4. The Star Model™
Processes.
-Information and decision processes cut across the
organization’s structure.
-Management processes are both vertical and horizontal.
Horizontal Processes.Vertical Processes.
VP allocate the scarce resources of
funds and talent. Vertical processes
are usually business planning and
budgeting processes.
HP are designed around the workflow,
such as new product development or the
entry and fulfillment of a customer
order.
The Star Model™
Rewards.
The purpose of the reward system is to align the goals of the
employee with the
goals of the organization. It provides motivation and incentive
for the completion
of the strategic direction.
The Star Model™ suggests that the reward system must be
congruent with the
5. structure and processes to influence the strategic direction.
Reward systems are
effective only when they form a consistent package in
combination with the other
design choices.
People.
This area governs the human resource policies in the
appropriate combinations ––
produce the talent required by the strategy and structure of the
organization,
generating the skills and mind-sets necessary to implement the
chosen direction.
Diagnosing an Organizational Culture and Behavior
An organization’s culture can most simply be thought of as “the
way things are
done around here” (Deal & Kennedy, 2000). It’s a term that’s
used to describe
what it feels like to be part of an organization and which tries to
condense the
complex and systematic web of human emotions and
interactions within an
organization into a simple summary.
Many researches have demonstrated that culture had strong and
dramatic effect
on organization performance, including economic performance.
Organizational culture can be defined as values, beliefs,
principles that are held by
the members of an organization and which facilitate shared
6. meaning and guide
behavior at varying levels of awareness.
Diagnosing an Organizational Culture and Behavior
The way work makes you feel might be a result of your
organization’s culture.
Unfortunately, some organizations only pretend to improve
their cultures through a process of “culture washing“, as
opposed to really improving.
http://worldofwork.io/2020/01/culture-washing/
Cameron and Quinn Model of Diagnosing
Organizational Culture
Denison Model of Organizational Culture
Organization Culture Assessment
There are many different examples of “cultural assessment”
questionnaires that are
used in different industries and for different purposes.
Ultimately, they all aim to
help teams learn about their organizational cultures. (types)
They all do roughly the same three things:
1. Give people the language to speak effectively about culture,
7. 2. Capture a summary of the current working culture in the
team, and
3. Document what the team (organization) would like their
culture to be like.
http://worldofwork.io/2019/10/organizational-culture/
Reliability and Validity of
Questionnaire tools
The effective selection depends to a large degree on the basic
testing concepts
of validity and reliability.
Reliability:
It is a test’s first major requirement and refers to its
consistency. A test is said
to be reliable only when the result of an outcome is consistent
on an identical
test obtained form same person at two different occasion.
Validity (legal acceptance):
It measures to prove that something is true or correct. In other
words, validity
tells us whether the test is measuring what we think it’s
supposed to be
measuring.
8. Coefficient alpha, sometimes called Cronbach’s alpha, is a
statistical index that is used to evaluate the internal consistency
or
reliability of an assessment. Co
A T-test is a statistical method of comparing the means or
proportions of two samples gathered from either the same group
or
different categories
Here are no right or wrong answers in most culture assessments,
just different ways to do
things. While culture assessments are very useful, they only
explore a current state and a
desired future state. Teams still need to develop the steps
needed to move between the
two.
Organization Culture Assessment
See: Articles:Cultura Digital: hr-Organizatinal culture
Diagnostic. Culture questionaire april 12
Denison model research
Culture-Questionnaire-April-12.pdf
Culture-Questionnaire-April-12.pdf
9. 4
6
Once you’ve defined the initiative purpose and objectives (or
goals), the next step in
the change management process is to assess the change
specifics, which include:
● Assessing leadership support and alignment on the change;
● Conducting a stakeholder analysis and determining the current
level of
engagement;
● Assessing people’s internal context;
● Conducting a Change readiness analysis;
● Conducting a Business Impact Assessment.
Diagnosing the Readyness for Change
Defining Role Of Leadership in Change
4
7
Step 1: Identify
Identify the key leaders you’ll need to support the change
10. Step 2: Set priorities
Not all of these are equal. Determine those leaders who
can derail the project (the key influencers) as opposed to
those who can simply grumble and mumble. The key
influences will pull the latter along.
Step 3: Meet with leaders
Meet with these leaders, or have the key sponsor meet
with them to enrol them into your project
Step 4: Call to action
Clearly request what you’ll need from them. (See the list
above)
Step 5: Visibility
Help them to be visible with little work on their end.
Prepare talking points, keynotes and so on.
Step 6: Feedback
Provide feedback and coaching on how their behaviour is
working to influence stakeholders
11. Organization Change Readiness Checklist (1/2)
4
8
Business Unit / Product Group Actions
Have the business unit contacts been selected &
notified?
Have the business unit contacts been briefed by the
project team?
Has the priority for this project been set by the business
unit management team?
Training
Has the target training audience been identified and
nominated?
Has a training needs analysis been carried out?
Is the training information sheet available?
has the training provider been established?
Has the training coordinator been provided with the
training details and put in place the necessary
arrangements?
Will all field readiness criteria have been practically met
prior to training roll-out?
12. People Readiness Action Required When Completed
Deliverable › Your Text Here
› Your Text Here
Implementation
Team Leader
› Your Text Here
› Your Text Here
Implementation
Sponsor
› Your Text Here
› Your Text Here
Organization Change Readiness Checklist (2/2)
4
9
Information & Communications Technology
(ICT)
Is the auditing & metering tool configured?
Content
Have the approved procedures/policies been published?
13. Do the proposed users have access to appropriate
documentation?
Business application
Is there a software application relevant to this
deliverable?
Is there a support model for this application and are the
details available for distribution?
Has the relevant IT business unit been notified of
Installation and support requirements?
Systems Readiness Action Required When Completed
Evaluating the organization´s ability to compete
effectively
The Marketing Mix
Positioning Description
Product
•Describe the product’s characteristics (design, packaging,
functionalities), and what makes it different.
• its place in the range, as well as the services that are attached
to it
(after-sales service, repair, end-of-life recycling).
14. Price
What´s pricing strategy adopted by the company:
-costs + margins: you add a margin to your production costs;
-value-based: the price is determined according to the
consumer’s
perception of value;
-competitive: you realize using the competition research and fix
your
price according to one of your competitors.
•Price Tactics: It describes how, in concrete terms, the pricing
strategy is applied in the field.
The other aspects of the marketing mix that depend on price:
the pricing policy towards your intermediaries;
the discount policy towards your customers;
the payment policy and possible facilities offered to your
customers
to acquire your products.
https://www.intotheminds.com/blog/en/market-research-white-
paper/competitor-analysis/
The Marketing Mix
Positioning Description
Promotion
It covers the aspects related to the company’s communication
and
the strategies used to make itself known on the market.
What is the company’s position on advertising.
Are specific media used (sponsoring, influencers).
Which channels are favored (digital, radio, TV, press, Out-Of-
Home).
15. Place
The fourth “P” concerns the distribution policy . There are three
main
distribution strategies:
direct distribution;
distribution via a third-party network;
hybrid (a mix of the 2 previous ones). Franchise, Outsource.
In particular, request what logistical processes need to be
implemented to meet customer expectations regarding product
availability and delivery times.
The Marketing Mix
Positioning Description
People
The relational policy . This is the human part in the success of
the
company, and the satisfaction of the customer, as well as the
role,
played by the employees to transmit the values of the brand.
In the digital era, the relational policy is no longer only in B2C.
It also
materializes through C2C.
Customers become ambassadors for the company and sometimes
even play essential roles.
Process
This part of the marketing mix is about describing and
analyzing the
processes surrounding the service.
16. You should focus on the most distinctive elements of the
processes.
Physical
Environment
The physical evidence.” In the spirit of the marketing mix, it is
the
tangible elements with which the customer is in contact when he
buys the product.
These elements can be linked to the sales outlet itself (its
design, its
layout, the sound/smell / visual atmosphere), the objects found
there, or the employees themselves (specific clothes, for
example).
Cause and Effect Diagram
The Cause-and-effect diagram – also known as an Ishikawa,
fishbone or Fishikawa
diagram, is used to identify the potential causes of a specific
event, known as ‘the
effect’.
Based on brainstorming, the technique provides a way of
rationally determining and
organizing the factors that are suspected of contributing to the
effect (problem).
These must then be tested and verified.
Corrective and preventive actions can then be applied to
mitigate or eliminate
relevant factors.
During World War Two, there was a rumour circulating in Japan
that Ichiro Ishikawa
17. originated the Fishbone Diagram in 1943. However, many
reports published after this
date claim it was his son Professor Kaoru Ishikawa who created
it in the 1960s.
https://www.skymark.com/resources/leaders/ishikawa.asp
The analysis is best conducted between groups of individuals
with a shared
understanding of the nature of the issue under examination.
Each group should then be able to add their own perspective to
the analysis.
Cause and Effect Diagram
Cause and Effect Diagram
Cause and Effect Diagram
Tree Diagram
Tree
Diagram
Visual tools that aid in
calculating probabilities.
Data is represented in the
form of a tree which
18. branches out into more
Data
The components of the
diagram include Root
Nodes, Nodes and leaf
Nodes.
It helps in arriving at
conclusions thus aids the
decision making process.
One major advantage of
the model is that it
enumerates all potential
outcomes of profit or
loss associated with
projects. This helps
organizations use the
information available to
make many informed
decisions such as
finalizing investments,
cost and management
decisions, business
valuations, and
probability calculations.
19. https://www.wallstreetmojo.com/investment/
Tree Diagram
Typically, the diagram begins with a single vertex or node that
branches into two
or more branches. Then, each subsequent node will branch into
two or more
until the desired outcome arrives. The finished structure then
resembles a tree
with a trunk and several branches.
If gold is taken, the chance of taking the gold itself is (3/11).
For silver and copper, it is (4/11) each.
(Note that the number of events has been reduced from 12 to 11
because one has already occurred).
The point is that if the first coin had been gold, the second
picking would be done from the remaining
number of gold coins, hence 3.
(2) Silver coin: If the first coin was silver, the chances of the
second coin being
gold are 4/11, silver is 3/11, and copper is 4/11.
(3) A copper coin is:
If the first coin had been copper, then the chance of the second
coin being gold is 4/11, silver is 4/11,
and copper is 3/11.
The chances of them being different colors can be achieved only
when the outcomes end in (gold,
silver), (Gold, copper), (silver, gold), (silver, copper), (copper,
gold), (copper, silver). Therefore, for all
coins, the chance of appearance will be 1/3.
Therefore, 1/3*4/11=4/33.
The outcomes will have 4/33 chances of being picked as the
20. second coin. Therefore it has to be added
as (4+4+4+4+4+4), which will give a probability of 24/33
overall.
Dave wants to give away coins to
neighboring kids at random. The bag
contains four gold, silver, and copper
coins and thus a total of 12 coins. He
will take two coins without replacement,
and we need to find the probability of
him getting different coins.
Fishbone Diagram Tree Diagrams=/
Fishbones Don’t Have Roots, Trees Do
The fishbone diagram is more of a map of possible sources of
variation in the
process. Fishbone diagrams point the way for further
investigation.
Decision Trees and Fishbone Model by Jessica Smith
(prezi.com)
Choosing Which Root Cause Analysis Technique to Use:
Consider the Basic Requirements & Common Uses - BrightHub
21. Project Management (brighthubpm.com)
https://www.brighthubpm.com/risk-management/114834-
comparing-root-cause-analysis-techniques/
(The 80/20 rule)
The Pareto Analysis
•The 80/20 rule can be used to strategically select the problems
in a company to
fix that will result in the most impact.
•It can help stimulate creative thought and organized thinking
around business
innovation or problem-solving.
•One important note is that the 80/20 rule is purely a convenient
rule of thumb,
not an exact ratio or law.
For example:
80% of bus delay system from 20% of the possible causes of
delay.
80% of service complaints arise from 20% of the services you
offer.
80% of software crashes come from 20% of the potential
computer virus types.
20% of your products amount to 80% of your revenues.
Vilfredo Pareto.
The Pareto Analysis
22. Steps to Create a Pareto Diagram (80/20 Rule Diagram).
1. Identify a list of problems: Ideally, the list is gathered
through feedback from employees, clients, or
customers. Common examples include anonymous
complaint/feedback forms,
customer surveys, or employee organizational recommendations.
2. Identify the cause of each
problem:
Why did the problem occur? Make sure to think about the root
cause, which
might be hidden under the surface.
3. Score each problem:
Assign a number to each problem based on the negative impact
associated
with it. The scoring system will depend on the type of problem
trying to be
solved. For example, for a cellular company, did a customer
complaint make
them leave the carrier, change their plan (negatively), or not
change
anything?
4. Group the problems
together:
Group all of the similar problems together and calculate the
collective scores.
The problem with the highest score will most likely be the one
you should try
to resolve first and provide the highest return.
23. The Pareto Analysis
Identify the top impacting keywords in your digital marketing
strategies.
How to Build a Pareto Chart
•Group the causes or factors into specific categories.
•Choose the appropriate measurement, i.e., frequency, quantity,
or cost.
•Define the time period for the chart, such as hour, day, or
week.
•Use the data collected and compute the subtotals for each
category.
•Adjust the scale of your left vertical axis to accommodate the
largest subtotal from
the different categories.
•Construct your bars progressively from tallest at the left to
shortest on the right.
•Compute the percentage of each subtotal category, dividing
them by the total of
all categories that represent 100% (as indicated by the right
vertical axis).
•Compute the cumulative sums from left to right, and draw the
line chart
representing the sums against the percentage of the right
vertical axis.
Pareto chart analysis can be applied to any efforts for
optimization.
What questions to ask for writing a Mision Statement?
24. 1. Who,
2. What,
3. How,
4. What for.
A mission statement is used by a company
to explain, in simple and concise terms, its
purpose(s) for being.
The National Geographic Society uses the power of science,
exploration,
education and storytelling to illuminate and protect the wonder
of our
world.
Oracle, a global provider of enterprise cloud computing, is
empowering
businesses of all sizes on their journey of digital
transformation.
What questions to ask for writing a Vision Statement?
1. Who,
2. Promise,
25. 3. When.
To create the most compelling car company of the 21st century
by
driving the world’s transition to electric vehicles.
To give customers a wide assortment of their favorite products,
Every
Day Low Prices, guaranteed satisfaction, friendly service,
convenient
hours (24 hours, 7 days a week) and a great online shopping
experience.
CHANGE MANAGEMENT
BBA313
Assessing Internal Conditions.
U4
1. The diagnosis models: The change cube, the six-box
organizational model, the 7-s framework and the star model.
2. Diagnosing an organization culture and behavior.
3. Diagnosing readiness for change.
4. Evaluating an organization´s ability to compete effectively
using
26. an extended Marketing Mix analysis. Using Problem Trees and
Fishbone diagrams to analyze the most important issues that
impact the organization's capabilities.
5. The diagnosis tools:
1. Using Problem Trees.
2. Using Fishbone (Ishikawa) diagrams.
6. The Pareto Effect.
Assessing Internal Conditions
The Weisbord Six Box Model is a framework developed by the
American analyst Marvin
Weisbord used to evaluate the performance of organizations and
create competitive
advantage.
The model is meant for use ‘across the board’, so you should
find it helpful regardless
of your field.
Weisbord’s Six-Box Model
Business frequently takes unexpected turns, so stay on top of
your
organization by understanding exactly where you are competing
and what it
takes to win in those areas.
27. Weisbord suggested a variety of questions to help people use
the model.
Here you assess the business that you’re in, and decide what
you’re trying
to accomplish. Ask questions like:
1. Do we have a clear mission and vision?
2. How well do we use these to establish goals?
3. How clearly do people understand the goals?
4. To what extent do we agree on our goals?
5. How much have workers participated in goal setting?
6. How can we frame our goals to increase commitment and
buy-in?
7. How well do our goals fit our capabilities and core
competencies?
8. How much difference is there between what we say we do and
what
we really do?
Purposes
Weisbord’s Six-Box Model
The details of how your business operates and how it works on a
daily basis.
Structuring your business in a logical way based on the desired
outputs you
have in mind is one of the most important things you can do
going forward.
28. Weisbord suggested a variety of questions to help people use
the model.
Here you assess how work and people are organized. Questions
include:
1. How well does our organizational design fit our purpose?
2. What organizational configurations are best for our purpose?
3. How well does our structure support effective
communication?
4. What differences are there between formal structure and
informal
structure?
5. What are the differences between what’s supposed to be done
and
what’s really done?
6. Do we have appropriate accountability in both the formal and
informal
structures?
Structure
Weisbord’s Six-Box Model
There are the obvious relationships between people both within
your organization
and outside of it that need to be managed.
Healthy relationships are required for business growth.
29. Clear and concise plan
for how those conflicts
are going to be
resolved.
Weisbord suggested a variety of questions to help people use
the model.
Here you assess how people relate to one another throughout the
organization.
1. How important is the team development process?
2. How well do people relate and communicate with one
another?
3. How well do people relate and communicate between
departments
and units?
4. How much do people collaborate?
5. How well are people matched to the roles they perform?
6. Does the level of interdependence support the purpose and
structure
of the organization?
7. How much conflict is there?
8. How effective are conflict resolution processes within the
organization?
Relationships
Weisbord’s Six-Box Model
30. Creating a structure of worthy rewards is one of the most
important things
managers can do to develop a positive culture that runs from top
to bottom in the
business.
Here you ensure that people are properly incentivized for doing
what
needs to be done.
1. How well do formal rewards reflect what the organization
wants to
accomplish?
2. Are informal rewards working effectively?
3. What actions and results really get rewarded?
4. To what extent do people consider rewards to be valuable?
5. How timely are rewards?
6. Are rewards distributed equitably?
7. What causes a worker to be punished?
8. Do rewards support the organization’s vision and goals?
Weisbord suggested a variety of questions to help people use
the model.
Rewards
Weisbord’s Six-Box Model
Leadership refers mainly to the managers within an
organizations, although
non-managers can also have a leadership role within their own
31. team.
Leaders have to optimize collaboration between employees, in
order to
jointly work towards their goal or on the production of a single
product.
The intensive leadership style they will employ for this is aimed
at tasks and
relationships, managing and monitoring goals, identifying
problems, and be
highly adaptive to their environment, both internal and external.
Leadership
Differences between Leaders and Managers
Leaders
Innovates.
Motivates.
Inspires.
Empowers.
Focuses on people.
Creates a vision for the
future.
Sets the tone for a great
group culture.
Long-range vision.
Embraces change.
Managers
Administers.
32. Sets specific goals.
Provides structure for the
team.
Plans.
Organizes.
Delegates.
Implements strategies.
Solves problems.
Detail-oriented.
Shared characteristics.
Open communication.
Honesty.
Integrity.
Decisiveness.
Respect.
Empathy.
Creativity.
Confidence.
Optimism.
Commitment
Weisbord suggested a variety of questions to help people use
the model.
Here, you’re looking at how well the boxes fit together and
support one
another. The leader is expected to maintain the right balance
between
all six key organizational elements.
Do leaders understand the mission and vision?
Do we routinely monitor that our stated purpose is still valid?
Do leaders reflect the organization’s purpose in departmental
33. goals?
How well do leaders represent organizational values and
practice ethical
leadership?
How much do leaders lead, as opposed to managing?
How are leaders chosen?
How effective are leaders at dealing with internal conflict?
Does the primary leadership style support the appropriate
direction of the
other five boxes?
Leadership
Weisbord’s Six-Box Model
These mechanisms are certain to change over time as
technology improves and
markets advance accordingly, so you will want to stay on top of
the things that you
are using to be efficient and competitive.
Helpful Mechanisms
Assess the adequacy of coordinating technologies.
Do we have planning, budgeting, and controlling systems in
place, and do
we actively monitor them?
How well do policies and procedures support our purpose?
Is the communication process sufficient and effective?
Is there a mechanism for measuring and evaluating
performance?
Do we use a training and development process to align worker
34. skill and
performance with expectations?
Supporting mechanisms
Weisbord suggested a variety of questions to help people use
the model.
Applying the Weisbord model as a diagnostic framework for
organizational
analysis
file:///F:/CHM/0350-03731202145K.pdf
The McKinsey 7-S Model Framework
The McKinsey 7-S Model is a change framework based on a
company’s organizational
design.
Developed by McKinsey and Company in the 1980’s.
Specifically, it was developed
by Robert H. Waterman and Tom Peters.
https://expertprogrammanagement.com/wp-
content/uploads/2018/11/McKinsey7S.pdf
The McKinsey 7-S Model Framework
The model highlights that there exists a domino effect when any
one element is
35. transformed to restore effective balance. The central placement
of shared values
emphasizes that a strong change culture impacts all the other
elements to drive
change.
Hard elements that are easily identifiable and
influenced by leadership and management.
Soft elements are those that are intangible and
culture-driven.
Hard Elements
Strategy.
The strategy element is a detailed plan that organizations create
for
successful change implementation, and to gain a competitive
edge. A well-crafted
strategy is aligned with the other six elements of the 7-S model
and is reinforced by
a strong vision, mission, and values.
What is our strategy?
How do we intend to achieve our objectives?
How do we deal with competitive pressure?
How are changes in customer demands dealt with?
How is strategy adjusted for environmental issues?
1. Identify the gaps.
2. Assess your strategy.
3. Approve strategy.
https://whatfix.com/blog/change-implementation/
36. Strategic Plans
• Made to achieve the overall organizational goals.
• They achieve strategic goals through effective allocation of
resources.
• They are comprehensive and
general in nature.
• They are made by the top-level managers
in consultation with board members and
middle- level manager.
Structure.
Structure or organizational structure refers to a clear chain of
command to avoid
chaos & confusion. Structure is a simple yet crucial element as
it creates a sense
of employee accountability within the organization.
How is the company/team divided?
What is the hierarchy?
How do the various departments coordinate activities?
How do the team members organize and align
themselves?
Is decision-making centralized or decentralized? Is this as
it should be, given what we're doing?
Where are the lines of communication? Explicit or
37. implicit?
Hard Elements
1. Identify the gaps.
2. Assess your structure.
3. Approve your structure.
https://whatfix.com/blog/hold-your-employees-accountable/
Systems refer to the business processes and operational
procedures employed to
complete a business’s routine activities. An organization’s
SOPs consist of such
practices and workflows that directly impact productivity and
decision-making.
Systems.
Hard Elements
What are the main systems that run the
organization? Consider financial and HR systems, as
well as communications and document storage.
Where are the controls and how are they
monitored and evaluated?
What internal rules and processes does the team
use to keep on track?
1. Identify the gaps.
2. Document your business
processes.
3. Assess your system.
4. Approve your system.
38. https://whatfix.com/blog/sop/
Soft Elements
Shared Values.
These are the core values governing an organization’s health.
While
implementing a change, organizations expect a behavioral
modification from
their employees, which is only possible in a strong change
culture and
organizational values.
What are your organization's core values?
What is its corporate/team culture like?
How strong are the values?
What are the fundamental values that the
company/team was built on?
1. Identify the gaps.
2. Assess your share values.
3. Approve your structure.
https://whatfix.com/blog/organizational-health/
Soft Elements
Style.
This element refers to the management style prevalent in a
company that
decides the level of employee productivity and satisfaction.
How participative is the management/leadership
39. style?
How effective is that leadership?
Do employees/team members tend to be
competitive or cooperative?
Are there real teams functioning within the
organization or are they just nominal groups?
1. Identify the gaps.
2. Assess your style.
3. Approve your structure.
Staff.
This element represents the talent pool required, the size of the
existing
workforce, and their motivations. It also considers how they are
trained
and rewarded within the organization.
Soft Elements
What positions or specializations are
represented within the team?
What positions need to be filled?
Are there gaps in required competencies?
1. Identify the gaps.
2. Assess your staff.
3. Approve your structure.
Skills.
Skills refer to the abilities of employees to complete tasks. A
study suggests
40. that 45% of respondents reported that a skill gap caused a loss
in
productivity. Skills gaps overburden experienced employees
who have to pick
up the slack for their coworkers’ inexperience. It’s essential to
identify
the skill gaps and create relevant employee training programs to
bridge these
gaps.
Soft Elements
What are the strongest skills represented within
the company/team?
Are there any skills gaps?
What is the company/team known for doing
well?
Do the current employees/team members have
the ability to do the job?
How are skills monitored and assessed?
1. Identify the gaps.
2. Assess your share values.
3. Approve your structure.
https://press.careerbuilder.com/2017-04-13-The-Skills-Gap-is-
Costing-Companies-Nearly-1-Million-Annually-According-to-
New-CareerBuilder-Survey
https://whatfix.com/blog/skills-gap-analysis/
https://whatfix.com/blog/types-employee-training-programs/
How to Implement McKinsey’s 7-S Model
Change agents can effectively implement the McKinsey 7-S
model using a top-
41. bottom approach.
You must identify which elements of the 7-S framework you
need to realign to
improve organizational performance or to maintain alignment
and performance
during other changes such as restructuring, process
improvement, a corporate
merger, new software implementation, or a leadership change.
https://whatfix.com/blog/change-agent/
https://whatfix.com/blog/process-improvement-methodologies/
https://whatfix.com/blog/software-implementation/
How to Implement McKinsey’s 7-S Model
Identify the Gaps and Unaligned Processes.
Identify the gaps and inconsistencies in your organization’s
existing business processes
and list out the unaligned areas, as well as what needs to change
to restore the
effective balance.
Determine the Ideal Organizational Design
This step is research-intensive and requires change leaders to
find the sweet spot
where management’s vision of an optimal organizational design
aligns well with the
sentiments across the rest of the team members.
Create an Effective Action Plan
After identifying the outliers, change agents must create a
detailed implementation
plan. The action plan should include required changes to the
organization’s hierarchy,
the communication flow, and reporting relationships, which will
42. allow the company to
achieve the desired organizational design.
https://whatfix.com/blog/implementation-plan/
How to Implement McKinsey’s 7-S Model
Implement the Change.
The change implementation stage is the most critical stage of
any change
initiative, and only well-implemented changes will avoid
resistance to change and
prevent overall change failures. You should identify internal
change agents or
hire change consultants best suited to implement your changes.
Maintain the Momentum with Continuous Review Processes.
These seven elements are highly dynamic and change
constantly. Therefore,
practitioners must track these elements and their impact on one
another to
maintain the momentum of change.
https://whatfix.com/blog/causes-of-resistance-to-change/
https://whatfix.com/blog/what-a-change-management-
consultant-does-and-how-to-become-one/
A cross-functional team is simply a team made up of individuals
from different
functions or departments within an organization.
The 7-S model is a good framework to help you ask the right
questions, but it
won't give you all the answers. For that, you'll need to bring
43. together the right
people with the right knowledge, skills and experience.
How to Implement McKinsey’s 7-S Model
https://brandminds.co
m/mckinsey-7s-
model-of-nokia-
where-the-company-
went-wrong/
CHANGE MANAGEMENT
BBA313
Assessing External Conditions.
U3
Unit 3.
1. Review of the PESTLE and 5- Forces affecting an
organization.
Identifying key risks and opportunities that requires changes to
be implemented within an organization. Using Cause – Effect
Diagrams to analyze the impact of external factors.
2. The microeconomics opportunities and threats for changing.
3. Core concepts:
44. Review PESTLE factors.
Porters´ 5 forces technique.
External Factors of Organizational Change?
Factor Description
Grow Opportunities.
*New technology; *Access to new marketplaces;
*New products and services; etc.
Competitive Pressure.
When competitors use technology to grow, evolve, and
gain an edge, organizations must adapt in order to keep
up.
Technological Innovation.
With new technology comes innovation.
*Digital adoption; *Business process changes;
*The development of new products and services;
*Customer experience transformation, etc.
New Paradigms.
Consider all of the technological developments in recent
years – the internet, mobile technology, AI, and the
blockchain.
All of these are causing a massive paradigm shift in the way
we live and work.
Changing Customer
Demands.
45. *Customers may begin performing product research online
rather than in the store; *Clothing may go in or out of
fashion; * Food preferences may change over time.
https://www.forbes.com/sites/forbescoachescouncil/2017/05/08/
why-innovation-is-crucial-to-your-organizations-long-term-
success/
https://www.digital-adoption.com/digital-adoption-vs-
innovation/?t=21&camp=change-blog
External Factors of Organizational Change?
Factor Description
The Economy.
*Downsizing, budget cuts, business process changes; or
*increase investment in any number of areas; *tariffs,
trade wars, trade agreements, regulations, etc.
Natural Events.
*Natural Disasters; *International Conflict; *Commodity ;
*Shortages or Surpluses; *Famines or Crop Surpluses.
Mergers and Acquisitions.
*Restructuring; *Cultural changes; *Changes to business
processes; *Recruitment or layoffs; *Rebranding.
Social Change.
*Norms; *change in level of education, * urbanization;
*migration etc.
6 ways organizations will reinvent in 2022-2023
46. Platform and
Marketplace
•New jobs.
•New ways.
•New models.
Organizations
respond
creatively
• Change in
consumer
demand.
• Industry
mush-ups.
Organizations
get +fluid
• Project based.
• Flat.
Production
become
+personalized
•Tech. reshape
47. The making,
marketing, and
selling.
Increase
human
productivity
w/machines
• Focus on the
capability
people and
technology
can offer.
Organizations
reinvent how
the job gets
done
Formalize
hybrid models
of working.
6 ways organizations will reinvent in 2022-2023
Organization Dimensions
Managers strive in their company policy, to at least minimally
satisfy the interests
of all stakeholders.
48. What is a PESTEL Analysis?
PESTEL Analysis | Overview, Factors, Examples,
and Financial Analysis - YouTube
A PESTEL analysis is a strategic framework commonly used to
evaluate the
business environment in which a firm operates.
The framework is used by management teams and boards in
their strategic
planning processes and enterprise risk management planning,
innovative
product and market initiatives, as well as within the financial
analyst
community.
Key points from a PESTEL analysis can be incorporated into
other industry
and firm-level frameworks, such as Ansoff’s Matrix, Porter’s 5
Forces,
and SWOT Analysis.
https://corporatefinanceinstitute.com/resources/knowledge/strat
egy/ansoff-matrix/
https://corporatefinanceinstitute.com/resources/knowledge/strat
egy/competitive-forces-model/
https://corporatefinanceinstitute.com/resources/knowledge/strat
egy/swot-analysis/
Contexts that a business should assess
49. https://blog.fhyzics.net/hs-
fs/hubfs/pestel.png?width=657&name=pestel.png
Factor Description
Political.
Those driven by government actions and policies.
*Corporate taxation; *Other fiscal policy initiatives; *Free trade
disputes; *Antitrust and other anti-competition issues.
Economic.
Economic factors relate to the broader economy and tend to be
expressly financial in nature.
*Interest rates; *Employment rates; *Inflation; *Exchange rates.
Social .
Tend to be more difficult to quantify than economic ones. They
refer to shifts or evolutions in the ways that stakeholders
approach
life and leisure, which in turn can impact commercial activity.
*Demographic considerations; *Lifestyle trends, *Consumer;
*Beliefs; *Attitudes around working conditions.
Technological.
How technological factors may impact an organization or an
industry.
*Automation; *How research and development (R&D) may
impact
both costs and competitive advantage; *Technology
infrastructure
50. (like 5G, IoT, etc.); *Cyber security.
PESTEL Analysis
PESTEL Analysis
Factor Description
Environmental.
PESTEL analysis will overlap
considerably with those typically
identified in an ESG (Environmental,
Social, and Governance) analysis.
Recognize that changes to our physical
environment can present material risks and
opportunities for organizations.
*Carbon footprint; *Climate change ;
impacts, including physical and transition
risks; *Increased incidences of extreme
weather events; *Stewardship of natural
resources (like fresh water).
Legal .
Emerge from changes to the regulatory
environment, which may affect the broader
economy, certain industries, or even
individual businesses within a specific
sector.
*Industry regulation; *Licenses and permits
required to operate; *Employment and
consumer protection laws; *Protection of IP
52. https://www.youtube.com/watch?v=OLtobPnEQN0
https://www.youtube.com/watch?v=OLtobPnEQN0
Advantages:
business environment.
and strategic thinking.
future business threats and take action to
avoid or minimize their impact.
business opportunities and exploit them fully.
Advantages and disadvantages of a PESTLE analysis
Disadvantages:
amount of data used for decisions – it’s easy to
use insufficient data.
to ‘paralysis by analysis’.
that later prove to be unfounded.
difficult to anticipate developments that may
affect an organization in the future.
repeated on a regular basis.
https://www.cipd.co.uk/knowledge/strategy/organisational-
development/pestle-analysis-factsheet?pdf=true
53. PESTEL Analysis
PESTEL Analysis Template. pdf
PESTEL Analysis Case Study
https://www.bing.com/videos/search?q=pestle+analysis&&view
=detail&mid=DA3ECF9C0B6F36C424E1DA3ECF
9C0B6F36C424E1&&FORM=VRDGAR&ru=%2Fvideos%2Fsea
rch%3Fq%3Dpestle%2Banalysis%26FORM%3D
HDRSC3
https://www.greatassignmenthelp.com/blog/pestle-analysis-
examples/
Template
https://www.bing.com/videos/search?q=pestle+analysis&&view
=detail&mid=DA3ECF9C0B6F36C424E1DA3ECF9C0B6F36C4
24E1&&FORM=VRDGAR&ru=%2Fvideos%2Fsearch%3Fq%3D
pestle%2Banalysis%26FORM%3DHDRSC3
https://www.greatassignmenthelp.com/blog/pestle-analysis-
examples/
How to do a PESTLE analysis
Follow these steps:
1. Identify the scope of the research. It should cover present and
possible future
scenarios, and apply to the industry and areas of the world in
which the business
54. operates.
2. Decide how the information will be collected and by whom.
Identify more than
one person to gather data to bring diverse evidence and
perspectives.
3. Identify appropriate sources of information. You may find
areas of PESTLE are a
bigger focus to your industry than others but exploring
information for all of them
will give you a bigger view of the external environment.
4. Gather the information – you can use the template below.
5. Analyze the findings.
6. Mark each item in terms of importance in relation to potential
risk to the
organization.
7. Identify the business options to address the issues.
8. Write a discussion document for all stakeholders.
9. Disseminate and discuss the findings with stakeholders and
decision makers.
10. Decide what actions need to be taken, and trends to be
monitored.
https://www.cipd.co.uk/knowledge/strategy/organisational-
development/pestle-analysis-factsheet?pdf=true
PESTLE analysis tips
Some useful tips for carrying out a PESTLE analysis:
1. Collaborate - multiple perspectives can identify more risk.
2. Use expertise and resources within the organization.
3. Use PESTLE analysis alongside other techniques, such as
55. SWOT analysis, Porter's
Five Forces, competitor analysis, or scenario planning.
4. Incorporate a PESTLE analysis into an ongoing process for
monitoring changes in
the business environment.
5. Avoid collecting vast amounts of detailed information
without analyzing and
understanding your findings appropriately.
6. Don’t jump to conclusions about the future based on the past
or present.
https://www.cipd.co.uk/knowledge/strategy/organisational-
development/pestle-analysis-factsheet?pdf=true
https://www.cipd.co.uk/knowledge/strategy/organisational-
development/pestle-analysis-factsheet?pdf=true
https://www.cipd.co.uk/knowledge/strategy/organisational-
development/swot-analysis-factsheet/
https://hbr.org/1979/03/how-competitive-forces-shape-strategy
Porter’s Five Forces Model
Refers to a framework based on the competitive analysis,
introduced by Harvard
Business School Prof. Michael E. Porter.
The model determines the intensity of competition in any
industry is a mix of
five competitive factors operating in different areas of the
whole market.
The framework is an outside-in strategy tool for the business
56. unit that
evaluates the attractiveness (profitability) of an industry. Thus,
helps the
business-persons to identify existing and potential lines of
business.
Porter’s Five Forces Model
The model is all about taking offensive and defensive actions,
to create and maintain a
competitive position in the market and to cope with the
challenges (five forces)
successfully.
Porter’s Five Forces Model
Force Description
Threat of new entrants. Potential entrant is the major source of
competition
in the industry. The product range, quality, capacity,
etc. , increases competition.
*The bigger the entrant, the more intense is the
competition.
*If the entry is easy, then the level of competition in
the industry is severe.
Bargaining power of
suppliers.
Suppliers, also exert substantial bargaining power
over the firms, by threatening to increase prices or
57. degrade quality.
*The number of suppliers in the industry is limited
in number.
*They offer the specialized product.
*The supplier’s product is an important input, to
the buyer’s product.
*The product has a few substitutes.
Porter’s Five Forces Model
Force Description
Bargaining power of
customers.
Buyer groups are likely to exercise power if, they are
concentrated, products are homogeneous, the
switching cost is low, and full information is available.
This force not only affects the prices but also
influences the producer’s cost and investments in
certain circumstances
Threat from substitutes. Substitute products are offered at
reasonable prices
along with high quality, to the customers can radically
change the competitive scenario of industry,
especially, when the introduction is sudden
Rivalry among current
players.
Its the rivalry among current players,
Price competition
Advertising battles
58. New introductions
Improving quality
Increasing consumer warranties.
To conduct a Five Forces analysis:
1. Start by reflecting on how each force affects your business.
2. Then, identify the strength and direction of each force —
which also
assesses your competitive position.
3. Now, ask yourself these questions:
A. Are there a lot of suppliers in my industry?
B. Is my buying power high or low?
C. Is there a substitute for my product or service?
D. Is it easy or difficult for new competitors to enter my
market?
E. Is competition high or low in my industry?
1. Next, write down each of the five forces, and note the size
and scale of
each, using your answers to guide you.
How to Use Porter’s Five Forces Analysis
https://blog.hubspot.com/marketing/porters-five-forces
59. Porter’s Five Forces Model template
Case study
Microeconomic opportunities and threats
Microeconomics is the study of how individuals and companies
make choices
regarding the allocation and utilization of resources.
It also studies how individuals and businesses coordinate and
cooperate, and
the subsequent effect on the price, demand, and supply.
Industry analysis, for an entrepreneur or a company, is a method
that helps to
understand a company’s position relative to other participants in
the industry. It
helps them to identify both the opportunities and threats coming
their way and
gives them a strong idea of the present and future scenario of
the industry. The
key to surviving in this ever-changing business environment is
to understand the
differences between yourself and your competitors in the
industry and use it to
your full advantage.
Microeconomic opportunities and threats
60. Theories in Microeconomics
Theory of Consumer Demand:
goods and services consumption preference to consumption
expenditure.
Theory of Production Input Value:
the price of any item or product is determined by the number of
resources
spent to create it.
Production Theory:
how businesses decide on the quantity of raw material to be
used and the
quantity of items to be produced and sold.
Theory of Opportunity Cost:
the value of the next best alternative available.
To correctly identify opportunities and threats to their product,
marketing managers
need to understand the marketing environment in which their
products operate.
Choose a product or service and determine how to make it
available to the end user.
61. •Develop a distribution system for the product or service that
you have chosen.
• Give an overview of the following distribution channels: a)
Channel levels: Direct
versus indirect distribution, b)Channel organizations:
Conventional, vertical,
horizontal, and multichannel marketing systems, c) Analyze
your target market’s
needs, and explain what you know about your target market and
what it wants from a
channel of distribution.
•Determine which of the following channel members you will
use, and explain why:
Indirect: Retailer, wholesaler, dealer, manufacturer’s rep, and
so forth Direct: Catalog,
telephone, sales force, and so forth. Discuss how many channel
members you will use
(intensive distribution, exclusive distribution, or selective
distribution), and explain
why.
Microeconomic opportunities and threats
Opportunity Analysis
• Current global business environment: a changing landscape;
•Current local service sector environment in Barcelona;
• Opportunity: Trainings to create wow experiences.
Industry Analysis:
•PESTEL;
•PORTER´S 5 FORCES.
Competitor analysis and differentiation.
62. Microeconomic opportunities and threats
Business Impacts Analysis
3
0
Line of
business/Role
Impact Type Rating Notes
Customer and External
Stakeholders
Operating Model/Organizational
Structure
Processes & Procedures
People/Roles
Tech
Deliverable › Your Text Here
› Your Text Here
Implementation
Team Leader
› Your Text Here
63. › Your Text Here
Implementation
Sponsor
› Your Text Here
› Your Text Here
Risk Assessment
3
1
Identify the risk and assess the significance
and likelihood of it occurring and plan the
contingency.
› What risks may occur upfront?
› Identify the key concepts that may arise
along the way
Identify the risk and assess the significance
and likelihood of it occurring and plan the
contingency.
› What risks may occur upfront?
64. › Identify the key concepts that may arise
along the way
Identify the risk and assess the significance
and likelihood of it occurring and plan the
contingency.
› What risks may occur upfront?
› Identify the key concepts that may arise
along the way
Date of Risk
Occurring
Brief Description of Risk Low Medium High
Mitigation
Action
Approval of
Commencement
Date of
Commencement
Risk
No.
65. Cause - Effect Diagram .
A cause and effect diagram examines why something happened
or might happen
by organizing potential causes into smaller categories.
It can also be useful for showing relationships between
contributing factors. I
t is often referred to as a fishbone diagram or Ishikawa diagram
•In the manufacturing industry, these are referred to as the 6Ms:
1-Methods, 2-Machines, 3-Materials, 4-Measurements, 5-.
Mother
Nature/Environment, 6-Manpower/People.
Cause - Effect Diagram .
•In the service industry, these are described as the 4S:
1-Surroundings, 2-Suppliers, 3-Systems, 4-Skill.
•In the marketing industry, cause and effect diagrams will often
consist of 7Ps:
1-Product, 2-People, 3-Process/Procedure., 4-Promotion, 5-
Price, 6-Physical
evidence/Packaging, 7-Place/Plant.
Cause - Effect Diagram .
66. These are the best and most common practices when creating
cause and effect
diagrams.
1. Identify the problem. Define the process or issue to be
examined.
2. Brainstorm. Discuss all possible causes and group them into
categories.
3. Draw the backbone. Once the topic is identified, draw a
straight, horizontal
line (this is called the spine or backbone) on the page, and on
the right side,
draw a rectangle at the end. Write a brief description of the
problem in the
rectangle.
4. Add causes and effects. Causes are added with lines
branching off from the
main backbone at an angle. Write the description of the cause at
the end of
the branch. These are usually one of the main categories
discussed above.
Details related to the cause or effect may be added as sub-
categories
branching off further from the main branch. Continue to add
branches and a
cause or effect until all factors have been documented. The end
result should
resemble a fish skeleton.
5. Analyze. Once the diagram has been completed, analyze the
information as it
has been organized in order to come to a solution and create
action items.
Best Practices in Cause and Effect Analysis
67. Cause - Effect Diagram to analyze the impact of external
factors.
Problem -
Effect
Grow
Opportunities.
Competitive
Pressure.
Technological
Innovation.New Paradigms.
Changing Customer
Demands.
The EconomyNatural Events
Mergers and
Acquisitions.
References:
https://www.cipd.co.uk/knowledge/strategy/organisational-
development/pestle-
analysis-factsheet
https://strategiesforinfluence.com/negotiation-frequently-asked-
questions-faqs/
https://www.casequiz.com/ib-economics-commentary-1-
microeconomics-32128/
69. •Communications. •Leadership.
As means to improve motivation, productivity, employee job
satisfaction
and commitment.
1. What are the components of resistance to organizational
change?
2. What are the critical motivational factors in implementing
change?
3. Is communication the most critical factor in implementing
change?
Q: The impact of change can be prevented because most
factors associated with change are within the control of
employees.
A. False B. True
Before implementing change in an organization, it is very
important for the
leader to understand the difference between the change and the
transition
70. process
People perception about change.
Consider the following topics:
• Economic insecurity;
• Fear to Unknown;
• Threats to social relationship;
• Habits;
• Failure to recognize need for change;
• Structural inertia;
• Work group inertia;
• Threat to existing balance of power;
• Previously unsuccessful change efforts.
• Job satisfaction;
• Status;
• Independence;
• Sense of control;
• Sense of purpose;
• Sense of making a contribution;
71. • Sense of being appreciated;
• Reputation;
• Social life at work;
• Place in society;
• Dignity.
Managing Transitions. Keystone AAHAM December 8, 2012
Managing Transitions. Keystone AAHAM December 8, 2012
20 Reasons for Organizational Change and
Change Management
1. A more fulfilling and attractive workplace. 11. A track record
of successful change.
2. A better employee experience. 12. A more desirable
workplace culture.
3. Better project outcomes.
13. Technology that is more digital and
modern.
4. Lower project costs. 14. More effective training solutions.
72. 5. Decreased employee resistance. 15. The ability to adapt to
change.
6. Greater employee satisfaction. 16. More relevant
organizational strategy.
7. More efficient business processes.
17. A greater alignment between organizational
strategy and change projects.
8. Higher profit margins. 18. Speed.
9. A competitive edge.
19. More advanced enterprise change
management.
10. Better customer experiences.
20. More modern change management
practices and strategies.
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
https://change.walkme.com/reasons-for-organizational-change/
74. Managing Transitions. Keystone AAHAM December 8, 2012
Stages of change
The change process is a journey. As people progress through
this
journey they move from endings, through transitions to new
beginnings.
Bridges/Lewin/Kluber-Ross
Stages of change
Endings:
When a change occurs, some things come to an end or things are
done differently. These endings can be painful and confusing.
People
must come to terms with these feelings before they can move
on.
If people are not able to let go of the past, they will take
unnecessary
points of resistance into the new situation.
75. Stages of change
Transitions (call this the ambiguous zone):
These are the periods when people separate themselves from the
old
on their way towards the new. It’s a time of keen awareness of
what is
ending and what is beginning.
People are vulnerable and need support networks to help them
move
forward. This is the time for sorting out and getting the right
emotional
and attitudinal responses for success in the new situation.
Stages of change
Beginnings:
People are now feeling good about the change and positive
about the
future.
True acceptance of the change can take place because
uncertainty
76. should have ended, people are now comfortable with new
surroundings.
Q: There always tends to be a decline in productivity as people
adapt to change being introduced.
A. False B. True
Stages of change
Stages of change
Motivating others to change
Points to remember….
People don't have to go through the stages in sequence.
The path isn't necessarily linear - your people will bounce
around the phases until
everyone has reached a state of peace and equilibrium
with the "new thing".
People can go through phases over different time periods – a
few minutes to
77. months.
The intensity and duration of the reaction depends on how
significant the loss is
perceived as a result of the change.
If you are a leader, manager, director or coach…
1. Understand how motivation affects creativity;
2. Get better work out of creative workers;
3. Avoid (inadvertently) crushing people’s motivation;
4. Use rewards effectively;
5. Understand and influence many different types of
personality;
6. Facilitate collaboration.
Once people are on your team, ask yourself two basic questions:
1. How do I tap into their core motivations and amplify them?
2. How do I avoid blocking these motivations?
Motivating others to change
Four Kinds of Motivation
78. 1. Intrinsic motivation – the attraction of the work itself;
2. Extrinsic motivation – rewards for doing the work;
3. Personal motivation – individual values;
4. Interpersonal motivation – social influences.
To answer the two questions above:
The basic levers of influence available to you as a leader or
manager.
Motivating others to change
Types of Intrinsic Motivation
Challenge.
Interest.
Learning.
Meaning.
Purpose.
Creative flow.
Managing Intrinsic Motivation
Do something inspiring.
79. Set them a challenge.
Define the goal clearly.
Eliminate distractions and interruptions.
Match the work to the worker.
Let them get on with it.
Reward behaviours, not results.
Coach creative flow.
Motivating others to change
Types of Extrinsic Motivation Managing Extrinsic Motivation
Money.
Fame and recognition.
Awards.
Praise and appreciation.
Status and privilege.
Opportunities.
Obligations and deadlines.
Threats.
80. Don’t rely on extrinsic motivations.
Get the balance right.
Calibrate
Notice what has the biggest impact
Motivating others to change
Q: Successful implementation of change only requires full
knowledge and ownership by the leadership of the organization.
A. False B. True
Personality Motivators
1-The Achiever.
Ones value achievement, hard work and discipline. They
are perfectionists.
2-The Helper.
Twos value generosity, and appreciation. They are happy to
provide help and support.
3-The Performer.
Threes value success, competition, with winners and
losers. They are very focused on achieving their goals.
4-The Romantic.
Fours value authenticity, to be true to yourself. They have a
81. highly original style and don’t mind being perceived as
outsiders.
5-The Observer.
Fives value knowledge. They believe knowledge is power.
They are avid readers and lifelong learners.
6-The Guardian.
Sixes value security. They believe there is safety in
numbers. They are excellent team players and fiercely loyal
to the group.
Motivating others to change
Identifyng personalities
Personality Motivators
7-The Optimist.
Sevens value pleasure and possibilities. They believe life is
for living to the full, enjoying every moment. They can be
relied on to look on the bright side, suggest new options
and jolly everyone along.
8-The Leader.
Eights value power. They believe you have to fight for what
you want in life. They make excellent leaders or formidable
opponents, depending on how they perceive you.
9-The Peacemake.
Nines value peace and harmony. They believe life would be
much easier if we could all learn to get on better together.
82. They are self-effacing, but skilful diplomats, intervening
where needed to restore harmony within a group.
https://personalitypath.com/free-enneagram-personality-test/
Motivating others to change
Identifyng personalities
Peer Pressures - Interpersonal Motivation
Most of our behaviour is … the result of the influence of other
people because we
are a super social species. A herd animal, if you like.
Mark Earls.
Types of Interpersonal Motivation
Copying Rebellion Competition Collaboration Identity
Commitment Encouragement Support Contribution Recognition
Facilitating Interpersonal Motivation
Two things that turn a group of people into a tribe are:
• A shared interest;
• A way to communicate.
Motivating others to change
83. Sources of Motivation
The most important two things a leader can do are:
• Transforming the shared interests into a passionate goal and
desire for change;
• Providing tools to allow members to tighten their
communications.
Facilitating Interpersonal Motivation
A few ideas for doing this.
1. Turn common interests into common goals.
2. Tell a story.
3. Environment.
4. Promote diversity.
5. Think about the team beyond the team.
6. Provide communication tools.
7. Use feedback loops.
8. Mediate.
Motivating others to change
84. Analytical Skills
Proactive
Listening Skills
Emotional Intelligence
Detail Oriented
Process Orientation
Baptized in the Real World
OD (Organizational Development)
Background
Communications (Engaging)
Adaptability
Low Ego
Curiosity
1. Strategic thinking: The ability to keep the ‘big picture’ in
mind
and focus on the end-game.
2. Analytical thinking: The ability to make sense of huge
amounts of financial, employee and performance data.
85. 3. Commercial thinking: The ability to understand the wider
context within which your organisation is operating and the
opportunities the change presents.
4. Planning and organising: The ability to ensure you and
whoever else you’re working with on the change get the right
things done at the right time.
5. Handling complexity: The ability to negotiate your way
through various organisational systems, particularly where other
organisations are affected by the change.
6. Communication: The ability to speak and write in ways that
are easy-to-understand and compelling.
7. Influence, persuasion and negotiation: The ability to get the
majority of people on board, adopting a ‘win-win’ approach.
8. Resilience: The ability to handle whatever is thrown at you
(but not be a pushover), bounce back and not take things
personally.
9. Managing relationships: The ability to build and maintain
relationships with a wide range of people from all levels and all
86. parts of the organisation and its partners.
10. Handling ambiguity: The ability to make sense of (and help
others make sense of) what is going on when there is little or no
information.
Change Management Competency Profile
73
Organizacional Level
Estrategical vs Táctica
Dimension
Behavioral Focus
Leadership and
Management Processes
Leadership and
Management Competencies
Whole Organization
Estrategic
Person Creating a compeling
vision for change
Vision & Alignment
Developing a competitive
87. strategy
Strategic Thinking
Task
Person Generating an integrated
network
Networking
Operations Movilizing and
Leveranging resources
Resources Management
Task
Person Building motivated teams Teamwork
Groups Defining and
implementing core
processes
Process Excellence
Task
Person Maximizing individual
performance
Performance Development
Individual
Reaching critical goals Goal setting
Tactic
88. Task
Competency Profile
The Tanennbaum & Schmidt Continuum
Management Strategies
The Tannenbaum and Schmidt Continuum of Leadership depicts
seven
different styles of management differentiated by the degree of
control exerted
by the manager over their team.
It can also be read as a continuum of team autonomy, with more
collaborative
approaches on the right-hand side, and individual role-based
work, with tasks
set by managers, on the left.
The Tanennbaum & Schmidt Continuum
Robert K. Tannenbaum was Professor
at the UCLA Anderson School of
Management, and an organisational
89. psychologist.
Warren H. Schmidt, a Doctor of
Psychology, who also taught at UCLA
A Theoretical Model
It’s important to note that the continuum is designed to
incorporate the whole
theoretical spectrum of decision-making behaviour, from total
top-down control to
complete abdication of responsibility. In reality, of course, very
few effective
leaders inhabit the extremes to the left and right of this mode.
https://www.mtdtraining.com/inhouse-leadership-programmes
https://en.wikipedia.org/wiki/Robert_K._Tanenbaum
https://second.wiki/wiki/warren_h_schmidt
Leadership theories and models
http://www.free-management-ebooks.com/
Leadership theories and models
http://www.free-management-ebooks.com/
90. THE 11 PARADOXES OF LEADERSHIP THAT HANG ON
THE WALL OF
EVERY LEGO MANAGER
• To be able to build a close relationship with one’s staff, and to
keep a
suitable distance.
• To be able to lead, and to hold oneself in the background.
• To trust one’s staff, and to keep an eye on what is happening.
• To be tolerant, and to know how you want things to function.
• To keep the goals of one’s department in mind, and at the
same time to be
loyal to the whole firm.
• To do a good job of planning your own time, and to be flexible
with your
schedule.
• To freely express your view, and to be diplomatic.
• To be a visionary, and to keep one’s feet on the ground.
• To try to win consensus, and to be able to cut through.
• To be dynamic, and to be reflective.
• To be sure of yourself, and to be humble.
91. Source: Evans (2000)
The End
CHANGE MANAGEMENT
BBA313.
Unit 2.
You as a Change Agent
1. Definition of Change Agent.
2. Recognizing a need or opportunity for change.
3. Starting and leading the change.
4. Communicating change.
5. Motivating others to change.
6. Developing a change plan. Planning and preparing for
change.
7. Discussion on the competencies required of a Change
Agent. Use of different leadership styles depending on the
circunstances. Influece and negotiation strategies.
92. 8. Core concepts: tannenbaun & Schmidt Continuum.
Unit 2.
YOU AS A CHANGE AGENT
Who Is a Change Agent?
• A change agent, also known as an advocate of change, is a
person
who acts as a catalyst for the change management process.
• They help an organization, or part of an organization,
transform how it operates by inspiring and influencing others.
• A change agent will promote, champion, enable, and support
an
organization’s change implementation.
Responsibilities of Change Agents
Key activities that a change agent performs include:
• Communicating how change is beneficial for both the
organization
93. and employees;
• Listening to the involved team members and employees to
gain
feedback and incorporate it in the implementation process;
• Understanding employees’ reactions to change and
reducing
resistance to change;
• Actively engaging with employees by conducting
change
management exercises;
• Encouraging and supporting employees to become
change
champions and promote it;
• Identifying and leading other change agents and
change
consultants to success;
• Providing feedback on challenges facing the change
management
lead.
Q: With sufficient information any employee can be an effective
94. agent for change.
A. False B. True
Roles in Change Management
A whole system of people in the organization support
employees in making
this transition. From the highest level of leadership to frontline
supervisors,
making changes well relies on a coordination of actors all
moving in unison in
an unique and fulfilling roles.
Change
Management
resource/Team
Executives
And
Senior
Managers
Managers
and
Supervisors
Project
95. Support
Project
Team
Role Descriptions
Role Description
Change Management Resource
Team.
I develope the change management plans
and strategy. Integral part of enablig project
success.
Executives & Senior Managers. I launch (authorize and fund)
changes and I
actively sponsor chenge with our people.
People Managers.
I coach my direct reports through the
changes that impact their day to day work.
Project Team.
I manage the technical side of the change. I
integrate change management into my
96. project plans.
Project Support.
I use my expertise to enhance activities
that drive change in collaboration with the
change team.
The Change Management Office.
We own the change management
methodology and support its
implementation in the organization.
Change Management Board
9
Change
Manager
(Chair)
Release ManagerBusiness Case
Representative
Project Manager
Application
97. Manager
Executive
assistants
Finance Manager
Service Level
Manager
Q. ____ views organizations passing
through well- defined stages from
birth to growth, maturity, then
decline or death .
Click on the
radio button
to select the
correct
answer!
Life-cycle theory
Chaos theory
Institucional theory
Market share theory
98. Change Management Resource Team
Role Expectations.
• Apply a structured change management methodology.
• Formulate a strategy.
• Develop plans.
• Support other roles.
Role Expectation.
Executives & Senior Managers.
• Participate actively, and visibly throughout the project.
• Build a coalition of sponsorship and manage resistance.
• Communicate directly with employees.
Role Expectation.
Managers & Supervisors.
• Communicator.
• Advocate.
• Coach.
99. • Liaison.
• Resistance Manager.
Q: Depending on leaders style, All employees are able to adapt
to change at the same pace.
A. False B. True
Role Expectation.
Project Team.
• Design the actual change.
• Manage te technical side.
• Engage with the Change Management Resource Team.
• Integrate change management plan into project plans.
Role Expectation.
Project Support Functions.
Internal Comunication Specialist……..HRBP………Org.
Development Staff...
Training Specialist……..Business Analyst……Subject Matters
Experts.
100. • Incorporate their experience and expertise.
• Contribute knowledge.
• Offer tools.
Defining Role Of Leadership
in Change
1
7
Step 1: Identify
Identify the key leaders you’ll need to
support the change.
Step 2: Set priorities
Determine those leaders who can derail
the project (the key influencers) as
opposed to those who can simply
grumble and mumble. The key
influences will pull the latter along.
Step 3: Meet with leaders
101. Meet with these leaders, or have the key
sponsor meet with them to enroll them into
your project.
Step 4: Call to action
Clearly request what you’ll need from
them. (See the list above).
Step 5: Visibility
Help them to be visible with little work on
their end. Prepare talking points, keynotes
and so on.
Step 6: Feedback
Provide feedback and coaching on how
their behavior is working to influence
stakeholders.
Q: Power-coercive strategies rely on achieving the intended
outcomes through the compliant behavior of those who have
less power.
102. A. False B. True
Strategic Planning
Situation
Analysis
• Swot/Weak
Signal
•Clients
meetings
•Competitor
analysis
Other Data
•Internal reports
•Business plans
•Market
intelligence
Strategic Options
•Business model
•Focus on most
feasible options
over 12 months
period
Budgets
KPI´s & Metrics
Critical Success
Factors
12 months action
103. plan
Plans classified on the basis of levels in the organization
STRATEGIC PLANS TACTICAL PLANS OPERATIONAL
PLANS
Focus of attention. Strategic goals. Tactical goals. Operational
goals.
Levels of
managers.
They are framed by
top level managers.
They are framed by
middle- level
managers.
They are framed by
lower-level managers.
Time frame.
They are prepared
for a long period of
time.
They are prepared
for an intermediate
period ranging
from 1 to XX years.
104. They are prepared for
period of less than 1
year.
Scope.
They relate to
overall
organizational goals.
They relate to
departmental
goals.
They relate to goals of
sub-units of each
department.
Environment.
They relate
organization with
the external
environment.
They focus on both
the internal and
external
environment.
They focus on effective
use of resources,
focusing the internal
environment.
105. The Change Management Model
Starting and Leading the Change.
Eight steps to effective change management.
What works What does not work Common Pitfalls
story.
how much complacency, fear,
and anger exists.
a “rational” business case, getting
top management approval, and
racing ahead while mostly ignoring
all the feelings that are blocking
change.
106. jumping immediately to creating a
vision and strategy.
you’re not the leader.
e
difficulty of driving
people from their
comfort zones.
by risks.
Step one: Increase Urgency Raising a feeling of urgency is the
first and most
critical step in a successful change effort. With low urgency and
complacency,
the change effort cannot get off the ground.
Tip: “Begin with the end in mind” - Steven Covey’s Seven
Habits of Highly Effective People.
Q: What are the components of an organization vision ?
1. What,
107. 2. Who,
3. How,
4. What for,
5. When,
6. Promise of service.
Starting and Leading the Change.
What works What does not work Common Pitfalls
and commitment to help
draw the right people into
the group.
teamwork needed in the
group.
ding change with weak
task forces, single individuals,
complex governance structures,
108. or fragmented top teams.
when power centres undermine
the selection of the right team.
around the head of the unit to
be changed.
the difficulty of driving
people from their
comfort zones.
paralyzed by risks.
Eight steps to effective change management.
Step two: Build the Guiding Team. It is important to get the
right people in
place who are fully committed to the change initiative, well-
respected within
the organization, and have power and influence to drive the
109. change effort at
their levels.
Tip: Draft a large, diverse team made up of individuals at all
levels and with
different skills.
Starting and Leading the Change.
Eight steps to effective change management.
What works What does not work Common Pitfalls
– literally –
possible futures.
that they can be articulated
in five minutes or written
up on one page.
– such as a commitment to
serving people.
110. plans and budgets alone
adequately guide behavior when
you are trying to leap into the
future.
based vision exercises.
that’s too complicated
or vague to be
communicated in five
minutes.
Step three: Get the Vision Right .While creating a shared need
and
urgency for change may push people into action, it is the vision
that will
steer them into the new direction.
Tip: Position the change around a compelling picture of the
desired future
111. state
Starting and Leading the Change.
Eight steps to effective change management.
Step four: Communicate for Buy-In. Communicate your vision
and strategy to
the organization in order to gain understanding and buy-in.
Sending clear,
credible, and heartfelt messages about the direction of change
establishes
genuine gut-level buy-in, which sets the stage for the following
step: getting
people to act.
What works What does not work Common Pitfalls
communications strategy.
simple and heartfelt.
s,
confusion, anger, and
112. distrust.
can easily happen.
cynicism by not “walking the
talk”.
contrary to the vision.
Tip: Create tools that help people tailor information to their
specific
needs – rather than forcing more generic memos and reports into
over-
stuffed email and in-boxes.
Starting and Leading the Change.
Eight steps to effective change management.
Step five: Empower Action. It should be seen as removing
barriers to those
whom we want to assist in pushing the change effort. Removing
obstacles
113. should inspire, promote optimism and build confidence around
the change
effort.
What works What does not work Common Pitfalls
nge
experience who can bolster
people’s self-confidence with “we-
won you-can-too” anecdotes.
systems that inspire, promote
optimism, and build self-
confidence.
make better decisions.
the barriers at once.
pessimisms and fears.
114. powerful individuals
who resist the change
effort.
Tip: Recognize and reward excellence.
Starting and Leading the Change.
Eight steps to effective change management.
What works What does not work Common Pitfalls
possible to as many people as
possible.
others.
ny
projects all at once.
115. too slowly.
-term
successes up to
chance.
successes early
enough into the
change effort.
Step six: Create Short –Term Wins. Short-term wins nourish
faith in the
change effort, emotionally reward the hard workers, keep the
critics at bay,
and build momentum. By creating short-term wins, and being
honest with
feedback, progress is achieved and people are inspired.
Tip: Focus on one or two goals instead of all, and make sure no
new initiatives
are added until one of those goals is achieved and celebrated.
Starting and Leading the Change.
116. Eight steps to effective change management.
What works What does not work Common Pitfalls
ing yourself of
work that wears you down-tasks that
were relevant in the past but not
now, tasks that can be delegated.
keep urgency up.
opportunistically to launch the next
wave of change.
that you’re done when
you aren’t.
too soon – with the
first performance
improvement.
Step seven: Don’t Let Up. In successful efforts, people build on
this
momentum to make the vision a reality by keeping urgency up,
eliminating
117. unnecessary, exhausting work and not declaring victory
prematurely.
Tip: Replace a time-consuming and painstakingly detailed
monthly activity
report with a one page summary that highlights only major
milestones and key
information.
Starting and Leading the Change.
Eight steps to effective change management.
Step eight: Make Change Stick. By creating a new, supportive,
and
sufficiently strong organizational culture, the change should
remain. A
supportive culture provides roots for the new ways of operating.
What works What does not work Common Pitfalls
new organization, what it does,
and why it succeeds.
118. have the continuity of behaviour
and results that help a new
culture grow.
culture as the first step in
the transformation
process.
social norms and
shared values
consistent with
changes.
Tip: When introducing new hires to the organization, use videos
that contain
heartfelt messages from clients whose lives the department has
impacted.
https://tinyurl.com/yc7d5w47
Change Management Questionnaire Checklist
119. L. Beitsch and J. Moran.
April 2017.
Communication Strategy
Effective communication during a change effort will serve to
provide
employees with timely and accurate information, which can
positively
influence whether the organization can maintain employee
productivity
and morale and overcome resistance to change.
Q: During the change process the benefits of maintaining the
status quo is usually perceived to be greater than the benefits
of change.
A. False B. True
The following five areas outline questions and key information
for you
to consider when building and delivering a communications
strategy
120. designed to inform and guide employees through a change
event:
1. Building a Strategy;
2. Involving Key Stakeholders in Communications Efforts;
3. Determining Message Content;
4. Identifying Most Effective Communications Channels;
5. Ensuring Follow Up.
Communication Strategy
Topic Questions
What do we need to accomplish?
What is the current state?
What is the desired state?
What do we need to communicate?
Who relays which messages?
With whom do we need to communicate?
In what order do we communicate with
our audiences?
When are messages communicated?
121. With what frequency?
What tools/channels do we use?
How can communications accomplish
the desired state?
Drive behavior change?
Educate and engage?
Generate awareness?
Mobilize commitment?
Do we understand the following about
our audience?
Who are they?
What do they know/understand already?
What drives/motivates them?
How will we measure whether the
communications strategy achieves its
objectives?
Building a Strategy
122. Q: Understanding the needs and expectations of stakeholders
is important during any change process but it is too time
consuming to conduct a stakeholder analysis as this will delay
the implementation of change.
A. False B. True
Involving Key Stakeholders in Communications
Efforts
Have you considered all key stakeholders impacted by the
change effort?
Do all areas (executives, HR, and managers) collaborate to
communicate a
consistent message?
Has HR provided managers with tools and training to
adequately prepare
them to support all communications?
To assist in ensuring that the change effort is
communicated to the employees in a timely
and effective manner, a communications
strategy is critical.
123. Strategy.
Determining Message Content
Do communications detail the rationale behind the change? Do
the
messages achieve the following:
change).
Does the communications strategy effectively relay how the
change will affect employees and the business in the short and
long term?
Does the strategy meet the following?
124. th the positives and negatives of
the
change;
range of emotions associated with the change.
Identifying Most Effective Communication Channels
Have you and your change team determined how to clearly
communicate what is expected of employees and resources
available to them?
Have you considered the most effective channels of
communication following questions outlined below:
Identifying Most Effective Communication Channels
anization determined the appropriate
communication
channel mix to reach diverse, dispersed employee groups?
messages are repeated through a variety of communication
125. vehicles to ensure that employees receive the message?
to
provide timely, honest communication with employees?
messages should go out?
Ensuring Follow-Up
Once you have implemented your communication strategy, it is
critical that
you monitor its impact on an on-going basis. Questions you
might consider
asking to gauge the effectiveness of the strategy might include:
Is the department prepared to engage employees by doing the
following:
advantages and
disadvantages of various suggestions?
Does the department consider the following:
126. lan to assess employees’ reactions to change (via surveys,
focus groups, etc.)
objectives and make
necessary adjustments as employees react to different messages.
djust the communications strategy
based on
employee responses.
cooperation in
implementing the change.
When people are confronted with the need or opportunity to
change, especially
when its ‘enforced’ by the organization, they can become
emotional, so can the
managers who try to manage the change.
The workers need to constantly adapt themselves to such
changes.
This often cause stress on their mindset and affect their work
quality.
Now its important to enabling sensible and constructive
127. dialogue.
In order to achieve success, it is vital for the organization to
develop communication
processes, motivation processes and a working environment that
will help to ensure
that individuals will deliver results in accordance with
expectations of management.
1. To study the components of resistance to organizational
change viewed from the
workforce.
2. To study the motivational factors to implement change
successfully.
3. What are the critical motivational factors in implementing
change?
CHANGE MANAGEMENT
BBA313
Introduction and Overview
Unit 1
128. Introduction and Overview
•Definition of change management.
•The Change House Model.
•4 types of organizational changes.
•The 10 principles of change management.
•The change process and its stages.
•Introduction to the overall change management model ( The
eight
”C”s) core concepts: 1- The Change Agent, 2- External
conditions, 3-
Internal conditions, 4- Four change strategies, 5- Costs and
Resistances,
6- Communications in change contexts, 7- Change targets, 8-
Consequences of change.
Change Management is a structured approach to transitioning
individuals, teams,
and organizations from a current state to a desired future state,
to fulfill or implement
a vision and strategy.
It is an organizational process aimed at empowering employees
to accept and
embrace changes in their current environment.
129. It is the set of activities that helps people transition from their
present way of
working to the desired way of working.
-Lambeth Change Management Team, Change Management
Toolkit.
As a Means of Transitioning People: Change
management is a critical part of any project that
leads, manages, and enables people to accept new
processes, technologies, systems, structures, and
values.
What is Change Management
What is Change Management
As a Systematic Process Change management is the formal
process for
organizational change, including a systematic approach and
application of
knowledge. -
Change management means defining and adopting
corporate strategies, structures, procedures, and
technologies to deal with change stemming from
internal and external conditions.
Society for Human Resources Management, 2007 Change
Management Survey Report
As a Competitive Tactic, Change management is the continuous
130. process of
aligning an organization with its marketplace—and doing so
more responsively
and effectively than competitors.
What is Change Management
Organizational change is introduced into corporate settings
through
projects, programmes and portfolios in order to deliver business
value
however, it is only the beginning of the process of embedding
change and
making it the new normal state for the organization.
-Lisa M. Kudray and Brian H. Kleiner, “Global Trends in
Managing Change,” Industrial Management, May 1997
https://www.apm.org.uk/resources/what-is-project-management/
https://www.apm.org.uk/resources/what-is-project-
management/what-is-programme-management/
Understanding Change Management Terminology.
As a discipline, change management has evolved to include
change management models,
processes, and plans that help reduce the negative impact of
change on organizations.
Change Management Models have been developed based on
research and experience
on how to best manage change within an organization or in your
personal life. Most
Change Management Models provide a supporting process that
can apply to your
131. organization or personal growth.
Change Management Processes include a sequence of steps or
activities that move a
change from inception to delivery.
Change Management Plans are developed to support a project to
deliver a change. It is
typically created during the planning stage of a Change
Management Process.
Core concepts of a change managament model
Change Agent:
Also known as an advocate of change, is a person who acts as a
catalyst for the change
management process. They help an organization, or part of an
organization, transform how it
operates by inspiring and influencing others. A change agent
will promote, champion, enable,
and support an organization’s change implementation.
https://whatfix.com/blog/change-implementation/
Core concepts of a Change Managament Model
Change Maturity refers to the sophistication of enterprise
change management.
In short, how developed is an organization’s change
management function.
Change Readiness refers to how ready an organization is to
132. change.
This is a state – some organizations are more ready, some are
less ready.
Change Model is a framework used to describe organizational
change processes.
Change Management Strategy is the high-level strategy that
defines a change project’s aims,
goals, and tactics.
Change management capability refers to how developed change
management is within a
company. How capable an organization is when it comes to
managing, leading, and executing
change projects
Change Management Processes include a sequence of steps or
activities that move a
change from inception to delivery.
Core concepts of a Change Managament Model
Change Management Plans are developed to support a project to
deliver a change. It is
typically created during the planning stage of a Change
Management Process.
Company culture is like a living being formed from the sum of
all the people who
constitute it. Therefore, it has its own personality, its own
internal culture, and is
formed by the employees' attitudes, values, behavioral norms
and the illusion and hope
133. for the future that they all have.
ROI (Return On Investment). it refers to how much of a result is
being drawn
from the effort and capital that is being invested initially.
Stakeholder analysis means to analyze all the people in the
company who can be
affected by a change initiative, whether they are the ones who
have to implement it or
who are the beneficiaries or recipients of this change.
Risk Mitigation. It refers to an unified analysis of the risks that
can appear and the
attitudes that must be taken to avoid them or at least to diminish
the impact they have
on the project as a whole.
Core concepts of a Change Managament Model
Q. _____ is critical in a changing
environment
Click on the
radio button to
select the
correct answer!
Human Resources
134. Operations
Marketing
Finance
Forces For Change (Internal & External)
1
3
People & roles
Profits and cash flows
Mergers & Acquisitions
Political-Legal Reasons
Electronic Commerce Social-culture Reasons
Privatizations
New Technology
Digital Convergence
Knowledge Economy
The House of Change is a great tool for understanding and
135. dealing with the
emotions we all experience in response to change, then getting
to where
you want to go!
The theory
The Four Rooms theory is about change. It identifies and
describes
polarizing and potentially detrimental conceptions of reality.
Psychologist
Claes Janssen called this phenomenon “The Conflict Between
NO and YES”.
At the heart of this psychological phenomenon are two
exceedingly
different perspectives that drive each individual in every
situation and in
every decision.
The House of Change
Basic Principles of Human Behavior
Thoughts
Feelings
Attitudes
Behaviors
Habits
Character
136. Feelings
Attitudes
Behaviors
Habits
Character
Destiny
Basic Principles of Human Behavior
The House of Change
Room of Contentment
In this room, there is a mindset in which the
individual is happy enough with their lot and
there is little desire to change. Everything feels
good, there is no desire to learn new skills or
try new ways of working. There is a sense of
being relaxed. This is a positive feeling of not
needing to change, such as “If it’s not broken –
don’t fix it”. The dark side (for employers) .
The House of Change
137. What They say How They act
Let ´s postpone it Ignore the outside work
We know what we are doing Arrogant
We achieve our targets Justify bad results
If it isn't broke don't fix it Don't listen to customers
I will get better next month Don't listen to own staff
Management have decided No sense of urgency
We don't have any major problems Unaware of new threat s
Room of Contentment
The House of Change
Room of Denial
In this room, people are aware of the change
around them but decided that none of it applies
to them. There is a focus of defending the status
quo and blaming others. This is a negative
experience of not seeking change, for example,
“I’ve tried it and it doesn’t work.” Or the best
excuse by many is I just do not have the time to
even consider anything else. The dark side.
No urgency to change
Blames on others
Don´t want to improve
138. https://www.fatrank.com/road-to-failure-lame-excuse-too-busy/
What The say How They act
It is a General Industry trend Defend the past
it's not our fault Defend the present
The budget was too ambitious Aggressive
It's a short time issue Miss the message but Kill the
messenger
It's the recession Blame everything else
Corporate doesn't understand Blame everybody else
It will be okay and next month Minimize or trivialize the
change
It can't happen here Not listening to own staff
We ´ve always done it this way Not listening to customers
Our business is different Try to find competitors who are doing
worse
If is not broken don´t fix it
Room of Denial
Room of Confusion
139. Something feels wrong, but there is not a clear sense
of what is causing this. However, change is
required as people recognize a need to develop new
skills and knowledge. This room can be characterized
by people saying things like, “I wish I knew where I
was going”. However, this room (for employers) is
good because is known on the bright side because
although may seem confused they have the
character in wanting to develop and improve
personally be become a better individual.
The House of Change
Aware of change need Something is wrong People want to
improve
https://www.fatrank.com/deal-with-it/
What They say How They act
What are we doing? Frustration
What should we do? Anger
How did we get into this mess? Insecurity, self-doubt
Let´s hire some consultants No sense of direction
What are our competitors doing? Dependency on others
What have I done wrong Slogan of the mouth
We must do something now Set up numerous committees and
task
forces
140. I had been saying that for years Hire people from outside
We are trying to do too many things at
once
Never complete anything
Room of Confusion
Room of Renewal
This is a room for creative change. There is positive
energy and radical ideas emerge. People support
and are committed to new approaches. Thoughts
and feelings are expressed openly without
inhibition and ideas of change flow. This is positive
energy towards change, characterized by
expressions such as, “I am going to try this”.
The House of Change
New ideas Open mind Let´s try
What They say How They act
Let's make it happen. Learning
Let's do it together Trust and delegation
This is a good place to work Independence
Let's tell everybody about this Accepting risk