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Managing Change & Transition

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Change Management

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Managing Change & Transition

  1. 1. W I N G A N TA R I K S A J A K A R TA 1 2 D E C E M B E R 2 0 1 8 MANAGING CHANGE & TRANSITION
  2. 2. 01 Reasons for change02 Origin of the field03 Change models and process Change Management is a common buzz word in today’s businesses. With constantly evolving business goals and strategies, change is inevitable and managing change is essential. The case and discussion presented during the session might not appear in these slides due to time constrain and sensitivity of the cases 04 Dealing with change Content
  3. 3. Change Management Concepts Reflection questions § When was the last time there was significant change that impacted the workforce? § Was it successful? § What blocks or obstacles did you encounter? § Has the change become permanent? § What is the next change? What is change management? Getting it right – what will it mean? Why is it important?
  4. 4. The Story • Once upon a time there was a Finnish device manufacturer that revolutionized the world as we know it. • But the Nokia we all knew and loved has lost the tremendous power which propelled it to be one of the top players in the mobile phone industry.
  5. 5. FEAR OF CHANGE Psychologists will tell you whether you are in fight-or-flight mode. After all, the typical human response to change is anxiety. When the human body experiences fear, the brain releases potent chemicals into the bloodstream to help us either defeat the threat or turn tail and run for the bushes.
  6. 6. “Between stimulus and response there is a space. In that space is our power to choose our response. In our response lies our growth and our freedom.” -Victor Frankl REACT VS RESPOND TO CHANGE • When people react, it seems to be defensive. We are uncomfortable with what is being said or done, and we react. • In our reactions, our emotions take a central role. • There is a downside to reacting. We let emotions without reason drive us forward. We lose control. Reacting is sporadic and emotional. • Responding, though, is more thoughtful. Responses contain reasoning, guided less by emotion and more by logic. • Responding may be passive in nature, as we are going second in a series. • The upside of a solid response is an engaging conversation, all positive and all civil. We learn. We grow. We listen. We respond. We act forthrightly and from within.
  7. 7. How prepared are you for the change ahead? § Our emotions influence often blind our view of change and what we need to do about it. § Those emotions will not disappear on their own. The more we understand them, the better the chances of addressing them and progressing beyond them. § Before we understand the five types of change resistance, it’s time to find out how emotionally prepared you feel about the change you’re facing.
  8. 8. Strongly Disagree Strongly Agree 1. I stand to lose very little from the proposed change. 2. I see a bright future for myself if I make the proposed change. 3. I have the skills and/or resources to adapt to the proposed change. 4. I am likely to succeed when it comes to implementing the proposed change. 5. I am ready to publicly communicate my commitment to the proposed change. 6. I see how the proposed change aligns with my past work. 7. I have the time to adapt to the proposed change. 8. I am empowered to adapt to the proposed change. 9. I can easily let go of my old behaviors. 10. I will feel more empowered if I adopt the proposed change. 1 53 42 Rank the following statements on a scale of 1 to 5, where 1 means you strongly disagree and 5 means you strongly agree
  9. 9. Add up the scores for your answers. Now let’s see where you stand?
  10. 10. THE CYNIC THE OBSERVER THE OPTIMIST THE ACCELERATOR (score of 20 to 29) The change is definitely bringing up some fears. You see some hope in the future, but not necessarily in this future. While you may not fight change proactively, you will happily share your negative thoughts with others. (score of 30 to 39) You’re a bit curious, willing to let your guard down in order to consider the possibilities. While you aren’t convinced, you’re willing to learn more. You will form your opinion only once you’re convinced either way. To increase your change resilience, try learning as much as you can about both the risks and rewards of change. (score of 40 to 49) You demonstrate healthy change resilience. You aren’t blind to the possible downsides, but your belief in the promise and possibility of change more than compensates for that. Deep down, you want change to work. You bring a positive attitude to the conversation. There are still some issues to iron out, of course, such as learning new skills and gathering resources. To adapt, direct your attention to the tools and techniques necessary for proficiency in the new ways. (score of 50) You are enthusiastic and unstoppable. You are the change you want to see in the world. You demonstrate an abundance of change resilience and serve as inspiration and encouragement to your peers. You belong in a mentoring position, helping others embrace change faster. E M OT I ONAL E NG AG E M E NT TO C HANG E THE FIGHTER READINESSTOCHANGE (score of 10 to 19) Your change resilience is essentially nonexistent. You fear change with a capital F . Your thinking is deeply rooted in the past. It’s time to challenge the “glory days” narrative in your head. ResistantReluctantNeedHelpReadytoLearnReadytoGo Angry Scared Curious Optimistic Excited
  11. 11. FOMO - the fear of missing out § when it comes to exciting new changes in our world, a little bit of FOMO can actually drive us to overcome our fears and embrace change. § Every change brings with it a new promise, a promise we will most definitely miss if we do not adapt in a timely manner. You could miss out on a life experience or an opportunity to make an impact on the world. Is your fear worth missing out on something so important?
  12. 12. The World Is Always Changing. Are You?
  13. 13. Change Yourself Before Changing The World
  14. 14. Change Management is a term for all approaches to preparing and supporting individuals, teams, and organizations in making organizational change
  15. 15. Change is an alteration of a company’s strategy, organization or culture as a result of changes in its environment, structure, technology or people. The way businesses manage change and how successful they are at it, depends largely on the nature of business, the change and the people involved.
  16. 16. Dealing with Change § Change management generally is difficult but no undoable. With a world closing in every day, not only international blue-chip companies are forced to critically reassess and, if necessary, change their business model, but also their organizational structure or their corporate culture. § As humans we are not very good at changing. We see changes as a negative thing that something creates instability and insecurity.
  17. 17. Reasons for Change External Forces • There are a number of external forces that create the explicit need for change. The external environment are those factors that occur outside of the company that cause change inside organizations and are, for the most part, beyond the control of the company. • External forces of change are often classified under three broad categories: Market & Technology Law & Regulation Economics
  18. 18. Reasons for Change Internal Forces • The internal environment of an organization refers to events, factors, people, systems, structures, and conditions inside the organization that are generally under the control of the company • Parallel to the external reasons there are three different internal forces for change: Corporate Strategy Technology & Equipment Workforce & Attitudes
  19. 19. Lewin: Three-Stage Model Kurt Lewin’s three-stage model is the most famous model of change. His model has come to be known as the Unfreeze-Change-Refreeze Model. He noted that the majority of people tend to prefer and operate within certain zones of safety. Lewin recognized three stages of change: 1. Unfreeze: Most people make an active effort to resist change. In order to overcome this tendency, a period of thawing or unfreezing must be initiated through motivation. 2. Change (also titled Transition or Move): Once change is initiated, the company moves into a transition period, which may last for some time. Adequate leadership and reassurance is necessary for the process to be successful. 3. Refreeze: After change has been accepted and successfully implemented, the company becomes stable again, and staff refreezes as they operate under the new guidelines.
  20. 20. 02BUILD A GUIDING COALITION 06GENERATE SHORT-TERM WINS 03 FORM A STRATEGIC VISION AND INITIATIVES 07SUSTAIN ACCELERATION 01CREATE SENSE OF URGENCY 04 ENLIST A VOLUNTEER ARMY 05 ENABLE ACTION BY REMOVING BARRIERS 08INSTITUTE CHANGE The 8-step Process for Leading Change Nearly 40 years of research by leadership and change guru dr. John Kotter have shown that more than 70% of all major transformation efforts fail. Why? Because organizations do not take a consistent, holistic approach to changing themselves, nor do they engage their workforces effectively.
  21. 21. GLEICHER: Change Formula Change Formula: (D × V × F) > R If any of these factors D, V and F are missing then the others are cancelled out and you will not be able to overcome resistance (R). And if the multiplication of these three factors is greater than R – the resistance to change – then change becomes possible. Dissatis- faction X XVision First Steps Resistance to Change( ) >
  22. 22. Change vs. Transition One of the most important concepts to understand about the change process is that change and transition are not synonymous. Change is situational whereas transition is psychological. What this means is that change is a physical manipulation that occurs on the organizational level. On the other hand, transition is a psychological process that occurs on the personal level. Change occurs externally, while transition is internal. Failing to understand the difference between change and transition is a major contributor to change management failure.
  23. 23. Transition Although transition may be hard for the individual, often the hardest part is to make a start. Even when a person is unfrozen and ready for change, that first step can be very scary. People become comfortable in temporary situations where they are not accountable for the hazards of normal work and where talking about change may be substituted for real action. • Challenge: Inspire them to achieve remarkable things • First steps: Make it easy to get going • Involvement: Give them an important role • Open space: People talking about what concerns them • Shit-and-sync: Change a bit – then pause
  24. 24. Reactions to Proposed Change Initiatives Source: Rogers, 2003 FREQUENCYOFINDIVIDUALS Early Adopters Fast Followers Late Majority Reluctant Resister T I M E T O A D O P T A P R O P O S E D C H A N G E
  25. 25. Change Management Value Proposition • A successful change management will leads the organization towards the goal. • Importantly, your people are at the heart of this change, making it long-lasting and leaving your organization profitable and secure
  26. 26. Risks to a Successful Change Language is jargon Leaders do not learn how to lead change Compromising staff personal values Change plan not integrated into decision-making Change fatigue Leaders not committed New ways of working not understood Declare victory too soon Slow decision- making damages momentum Poor governance Change skills not identified Trade union issues Talent not managed; under- capacity causes delays Political fighting Poor measures. Cannot tell what is working Leaders fail to engage; line- managers are involved too late Unrealized benefits Vision Plan Implement Sustain Define the future Failing to address people issues causes programs to “leak” benefits Project delay/overrun/ cancellation Reduced staff productivity Staff attrition/ reduced capacity Failure to learn and improve Lost brand credibility in market There are several impact that could happen when the change management fail to address issue:
  27. 27. Business Engagement — The Importance Of Engagement And Communications Research suggests commonly repeated failings when organizations try to implement change Engagement management and communications failings commonly featured in the research on failed implementation of change Not establishing a great enough sense of urgency Lack of a vision Not creating a powerful enough guiding coalition Under-communicating the vision by a factor of 10 Not removing obstacles to the vision Declaring victory too soon Not systematically planning for and creating short-term wins Not anchoring changes in company culture 1 2 3 4 5 6 7 8
  28. 28. 1 2 3 “Engage the top and lead the change” “Cascade down and break barriers” “Mobilize the base and create ownership” Make the case for change Provide leadership Develop plan and ensure consequence management Create cross-functional teams Ensure performance-driven approach Cascade down and motivate Roll out change program at the base Measure change Embrace learning and knowledge sharing Source: Strategy& Change Approach
  29. 29. Newsletter Large & External Reinforcing Disseminate general, non-sensitive messages Poster Large & External Reinforcing Advertise to build awareness Correspondence Small & External Specific Use formal mechanism Press Release Large & External General Advertise, build awareness and promote questioning Web-Based Presentation Large and external or internal Educational requiring a demonstration Coordinate people from several locations and/or time zones Conference Call Large & External Educational Demonstrate initiatives and promote questioning Hot Line Large & External Informative Provide specific information and an opportunity for questions Brown Bag Lunch Small & Internal/External Educational requiring a demonstration Allow for Q&A and face-to-face communications Your Audience Size Is… The Message You Want to Deliver Is… And You Need to … Methods To Deliver Change Messages
  30. 30. Question to be Considered § what if the business that your organization doing is no longer relevant in the next two years? § what if the company that you are working will no longer exist next year? § what if the job that you are doing is no longer needed this year? § what would you do....... Relevance is the only job security that exists in today's uncertain business world.
  31. 31. A key currency in a commercial world of rapid change is the CREATIVE IDEA that can be TRANSLATED INTO NEW PRODUCTS AND INTO NEW WAYS OF WORKING with the emergence and development of new forms and types of business organization.
  32. 32. Creativity and Innovation to Change “Change is ongoing in organizations as new ways of working replace, reshape and overlap traditional structures. Change, creativity and innovation represent key processes to organizations operating in the 21st. Century.” (Andriopoulos and Dawson. “Managing Change, Creativity and Innovation”) CRITICAL THINKING CREATIVITY INNOVATION DESIRED CHANGE+ + = Inventiveness New Ideas New Concepts Generating and Selecting Ideas Turn Creativity Into Products, Process, and Services
  33. 33. SUMMARY § UNDERSTAND YOURSELF prior to facilitating change initiatives & STAY RELEVANT § The most important points in managing change is PEOPLE, because they form the organization. § CREATIVITY AND INNOVATION are the key drivers to organizational success. Change is inevitable result of this creative and innovative process
  34. 34. C O N N E C T W I T H S O C I A L M E D I A WingAntariksaflywithwingWingAntariksa
  35. 35. T H E E N D
  36. 36. Appendix
  37. 37. Change Management Process During each decision period, the change agent must select one of EIGHTEEN CHANGE LEVERS. Specifically, there are three change levers for each of the six categories of change levers discussed earlier; these levers are listed in below. The effectiveness of the change levers depends on three factors: (1) the overall urgency of the change situation, (2) the perceived credibility of the change agent, and (3) the stage of change in which the organization is operating. In general, the higher the perceived urgency of the change situation, the easier it is to bring about change and, therefore, more change levers are effective. Similarly, the higher the perceived credibility of the change agent, the more change levers are at his or her disposal. And finally, the more advanced the organization is in adopting the change, the more change levers that can be effective.
  38. 38. The Change Champion's Field Guide, Strategies and Tools for Leading Change in Your Organization Louis Carter, Roland L. Sullivan, Marshall Goldsmith, Dave Ulrich, Norm Smallwood L E V E R A N D C A T E G O R Y L E V E R D E S C R I P T I O N A N D C O S T 01. Walk the talk (Credibility) When the change agent’s actions are aligned with the change initiative, effective change is much more likely. If properly executed, pulling this lever can increase the change agent’s credibility as well as positively influence co-workers of the change agent. Cost: 2 weeks. 02. Gain CEO’s public support (Credibility) When the change agent lacks formal authority, obtaining public support from the CEO can be essential. If properly executed, pulling this lever can increase change agent credibility as well as positively influence change targets in the awareness state. Cost: 2 weeks. 03. Gain consultant’s support (Credibility) Bringing in outside experts can enhance the change initiative. If properly executed, pulling this lever can increase change agent credibility as well as positively influence change targets in the awareness and interest states to adopt the sustainability initiative. Cost: 2 weeks. 04. Conduct private interviews (Communication) By conducting private interviews, important information is learned about the change targets’ views about the change, their personal network and the relative merits of the change vision can be discussed. If properly executed, pulling this lever can positively influence four individuals to adopt the sustainability initiative. Cost: 1 week. 05. Issue e-mail notice (Communication) E-mail messages to the entire organization helps convey the change vision and progress toward it. If properly executed, pulling this lever can positively influence employees in the awareness state to adopt the sustainability initiative. Cost: 1 week. 06. Hold town hall meetings (Communication) Town hall meetings can communicate the change vision and provide two-way dialogue on its relative merits. Attendance at these meetings is usually voluntary. If properly executed, pulling this lever can positively influence employees in the awareness and interest states. Cost: 2 weeks.
  39. 39. The Change Champion's Field Guide, Strategies and Tools for Leading Change in Your Organization Louis Carter, Roland L. Sullivan, Marshall Goldsmith, Dave Ulrich, Norm Smallwood 07. Provide in-house skill-building (Training) Some associates want to adopt a change, but they just do not know how. By providing in-house training, you expand trainees’ capacity to adopt the change. If properly executed, pulling this lever can positively influence three individuals to adopt the sustainability initiative. Cost: 4 weeks. 08. Provide external skill-building (Training) Sometimes associates want to adopt a change, but they just do not know how. By providing external training, you expand trainees’ capacity to adopt the change. If properly executed, pulling this lever can positively influence three individuals to adopt the sustainability initiative. Cost: 6 weeks. 09. Conduct pilot project (Training) Pilot projects are quick and relatively inexpensive ways of learning by doing. If properly executed, pulling this lever can positively influence an entire department to adopt the sustainability initiative. Cost: 6 weeks. 10. Post progress reports (Cultural) Posting of progress reports is a common means of using visible cultural artifacts and symbols to redirect invisible cultural norms. If properly executed, pulling this lever can positively influence adoption of the initiative for those in the interest state. Cost: 1 week. 11. Tell a success story (Cultural) Organizational storytelling is a relatively slow but effective way to challenge and redirect the norms and values of the organizational culture. If properly executed, pulling this lever can positively influence two listeners as well as their friends to adopt the initiative. Cost: 1 week. 12. Clarify organizational values (Cultural) Organizational values are often unconscious guides to organizational behavior. By making these values more explicit, better alignment can be created. If properly executed, pulling this lever can directly influence task force members and indirectly influence everyone else. Cost: 8 weeks. 13. Build coalition of support (Political) Negotiations to create political alliances can be crucial for obtaining commitment to a change initiative. If properly executed, pulling this lever can positively influence adoption of the sustainability initiative for the three coalition members as well as their friends. Cost: 4 weeks. 14. Recognize an adopter (Political) Political power accrues to those who are recognized within organizations, and this sends a signal to others as to where the power is flowing. If properly executed, pulling this lever can positively influence adoption of the initiative for the advocates’ friends and co-workers. Cost: 3 weeks.
  40. 40. The Change Champion's Field Guide, Strategies and Tools for Leading Change in Your Organization Louis Carter, Roland L. Sullivan, Marshall Goldsmith, Dave Ulrich, Norm Smallwood 14. Recognize an adopter (Political) Political power accrues to those who are recognized within organizations, and this sends a signal to others as to where the power is flowing. If properly executed, pulling this lever can positively influence adoption of the initiative for the advocates’ friends and co-workers. Cost: 3 weeks. 15. Privately confront resister (Political) Organizational goals and deadlines provide targets to aim for by its members. Organizational attention and focus are precious resources. If properly executed, pulling this lever can positively influence adoption of the sustainability initiative for the entire organization. Cost: 4 weeks. 16. Announce goals and deadlines (Technical) Organizational goals and deadlines provide targets to aim for by its members. Organizational attention and focus are precious resources. If properly executed, pulling this lever can positively influence adoption of the sustainability initiative for the entire organization. Cost: 4 weeks. 17. Revise reward systems (Technical) The reward system refers to the formal control system for recognizing and incentivizing desired behaviors, while discouraging unwanted behaviors. If properly executed, pulling this lever can positively influence adoption of the initiative for the entire organization. Cost: 12 weeks. 18. Restructure organization (Technical) Organizational structure refers to the formal lines of communication and authority within an organization. If properly executed, pulling this lever can improve information flow such that support is built for the sustainability initiative by the entire organization. Cost: 16 weeks.
  41. 41. REFERENCES Books § Lior Arussy, 2018, Next Is Now: 5 Steps for Embracing Change—Building a Business that Thrives Into the Future. Simon & Schuster § Patrick Dawson Constantine Andriopoulos, 2017, Managing Change, Creativity & Innovation 3rd Edition. SAGE Publication § Louis L Carter, 2013, The Change Champion's Field Guide: Strategies and Tools for Leading Change in Your Organization. Wiley § John Kotter, 1998, Leading Change: An Action Plan from the World's Foremost Expert on Business Leadership. Harvard Business Review Press Articles § http://inc-asean.com/the-inc-life/the-3-main-types-of-procrastinators-according-to- psychology/?utm_source=inc&utm_medium=redir&utm_campaign=incredirhttps://peterstark.com/l eading-change-you-disagree-with/ § https://www.forbes.com/sites/jacquelynsmith/2013/09/05/17-ways-to-be-indispensable-at- work/#2b8f8d94274d § https://www.linkedin.com/pulse/10-tips-dealing-change-positively-your-workplace-ban-weston § https://www.skillsyouneed.com/ps/personal-change-management.html § https://www.forbes.com/sites/dedehenley/2018/01/04/to-lead-change-you-need-to-be-the- change/#d21732439814
  42. 42. IMAGES • https://www.istockphoto.com/photo/ • https://graphicriver.net/

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