“if you run you stand a chanceof losing, but if you don’t runyou’ve already lost.”–Barack Obama
CHANGE MANAGEMENT-For Change Is The Only Constant-
outline• Defining Change Management• Organizational Change & Entrepreneurship• Introducing Change In An Organization• Leading Strategic Change• Possible Dimensions Of Change• Employees‟ Perception Of Change• Hurdles & Demerits Of Change• Overcoming The Hurdles• Merits Of Change• Conclusion
Change Management:The Process, Tools and Techniques tomanage the People-side of Change toachieve a Required Business Outcome.Tim CreaseyDirector of Research and DevelopmentProsci Research
Change Management:„The Coordination of a Structured Period ofTransition from situation A to situation B inorder to achieve lasting change within anorganization.-(BNET Business Dictionary)
Entrepreneurship & Organizational ChangeRecognizing Entrepreneurship:Not confined to the context of new venture creation or themanagement of small businesses.Organizations of all sizes, and in all sectors, are requiring peopleto respond in ways that could be characterized as „entrepreneurial‟.
Corporate Entrepreneurship and Strategic ManagementFirms need both Diversity and Order in their strategic activitiesto maintain their viability.-Robert A. Burgelman
DIVERSITY• Strategic initiatives of participants at the operational level.ORDER• Imposing the concept of strategy on the organization.
Middle level managers play a crucial role in this through combining theirsupport for autonomous strategic initiatives with various capabilities of thefirm, and by conceptualizing strategies for new areas of business.Top managements contribution exists in strategic recognition ratherthan planning.Top management should control the level and the rate of change rather thanthe specific content of entrepreneurial activity.
Conclusively, new Managerial Approaches and InnovativeAdministrative Arrangements are required to facilitate the collaborationbetween Entrepreneurial Participants and the Organizations in whichthey are active.
Introducing ChangeBusiness Process Redesign.Management of Change: A narrative perspective ofManagement Development.
Business Process RedesignA research on the models of change tactics that an organization uses whiledesigning and implementing change.Accomplished through studying the approaches to change (evolutionary& revolutionary) at their different levels, that is, early and implementationphase of the initiatives.
Revolutionary And Evolutionary Models Of ChangeEvolutionary Change models assume that change is adapted to the pace andcapabilities of people and widespread, frequent, and open communication are akey tactic to enable incremental change.These models also assume that change cannot be fully planned at the outset andthose who will be affected by the change must lead and participate in thechange process.
While according to the radical change theorists, a fundamental organizationalchange cannot be accomplished piecemeal, gradually, or comfortably.Rather, the change must unfold rapidly. The creation of new forms andprocesses requires difficult compact revolutions resulting in a RevolutionaryChange.
BPR may be a revolutionary approach to design while the realization ofthe design might take a long time and involve an evolutionary approach.
COMPARISONBoth evolutionary and revolutionary models advocate having senior executivesupport or sponsorship of any large-scale change initiative.Both argue for clear objectives and vision.The revolutionary models call for leadership from outside the organization,while the evolutionary models for leadership from the existing seniormanagement.The evolutionary tactics call for broad participation of the current processowners and contributors in the design and implementation whereas therevolutionary tactics call for the exclusion of the current process owners andusers.
The pace of change is dependent on the process - that is, tactics, or techniquesused to encourage an organizations members to accept and to enact a proposedchange.Evolutionary Change Process: Complies with current organizational valuesand norms, skills, structures, and incentive systems.Revolutionary Change Process: Change that challenges or undermines thestatus quo, creates a new vision, and accomplishes fundamental change invalues and norms, work practices, and structures.
Scope of ChangeThe scope of change denotes the organizational reach of change - whether theimpact of change will be contained within one function, one organization, orwill cut across organizational boundaries.
Technology & Organizational ChangeThe revolutionary and evolutionary perspectives also require differentsequencing of technological changes.Under Evolutionary change, a gradually staged socio-technical change occurs.While the Revolutionary change assumes simultaneous change of bothtechnical and social systems .
Change TacticsThe categories of change tactics observed in BPR initiatives are as follows:Leadership;Employee Involvement;Communication;Motivation for BPR;Change of Current Structure and Culture;IT Change;Status of Initiatives.
The affects of BPR are so widespread that a manager explained, "BPR isabout changing the engines of a flying airplane.“A revolutionary change process might not be feasible given the risk and costof revolutionary tactics.Sustainable incremental improvement via an evolutionary change processmight be what companies should sometimes expect as success from BPR.
“Never too old, never too bad, never too late, never too sick to start from scratchonce again.” -Bikram Choudhury.“Even if you stumble, you‟re still moving forward.”“Lay a firm foundation with the bricks that others throw at you.” -David Brinkley“If you do what you‟ve always done, you‟ll get what you‟ve always gotten.” -TonyRobbins“If you run you stand a chance of losing, but if you don‟t run you‟ve already lost.” –Barack Obama
Why Change Fails?!1. Underestimate the system‟s complexity.2. Management change knowledge/ skills missing.3. Lack of accountability.4. Management resistance/time pressure.5. Participative management skills lacking.6. Fatal assumption made—that it is easy/normal.
The Three Steps to Leading and Mastering ChangeStep 1: Plan-to-Implement Day.Step 2: Strategy Implementation And Change.Step 3: “Re-Plan Annually.”
Step 1: Plan-to-Implement DayIceberg theory: Reflects the natural reality of everyday life.The three elements:1. Content2. Process3. Structures
Step 2: Strategy Implementation And ChangeThere are three agenda items:1. Continually scanning the changing environment for implications.2. Tracking, reporting, and problem-solving “Key Success Measures” (or success measures/goals).3. Reviewing the status of core strategies and top priority actions.
Step 3: “Re-Plan Annually” Reviewing the environmental changes, vision/values, and updating. Updating the success of the yearly Strategic Management Change System/Cycle itself and the Change Leadership Team effectiveness. Reviewing and problem-solving the status of the alignment and attunement leverage points.
Levels of Learning and Effectiveness1. Individually (self change).2. Interpersonally (one-to-one).3. Team-wise (within departments).4. Cross-functionally (projects between departments).5. Organization-wide (and cultural change).6. Organization-environment (the supply chain) and strategy.
ROLES OF STAFF SUPPORT AND EXTERNAL CONSULTANTSAs a strategist, facilitator, the external consultant helps the executives, the Strategic Project Teams, and the Strategic Change Leadership Team achieve their objectives.
HOW TO GET STARTED WITH STRATEGIC CHANGE? Three main options to get started with creating your customer- focused organization: OPTION A—Plan-to-Implement Day OPTION B —Plan-to-Plan Day OPTION C—Tailored to Your Needs
Using Real Time Strategic Change for Strategy ImplementationIntroductionExplanation:1. The challenges of strategic planning2. Large group interventions3. Large group theory4. Real Time Strategic Change5. The two examples6. Conclusion
The Challenges Of Strategic PlanningStrategic planning: Planing for the long term, that is, three to five years into the future. Several challenges: Creating a plan that is breakthrough in its orientation rather than “more of the same.” Must create breakthrough strategies. Must align all internal and external resources around the plan.
Large group interventions are one set of methods for addressing these challenges.These approaches involve anywhere from 30 to hundreds individuals.In the process of working collaboratively, the organization can more quickly achieve “one heart and one mind”—a key factor in organizational alignment.
Large Group TheoryThere are four dynamics of large group interventions:1. The dilemma of voice (amount of individual airtime and the feeling of being heard),2. The dilemma of structure (amount needed to manage anxiety in the room and active individual participation),3. The egocentric dilemma (each person acting as though his or her reality is the only true reality), and4. Affect contagion (experiencing and expressing feelings because one feels them vicariously in others).
Change And CultureChange is highly culture sensitive. The effect of the cultural differences on change management.The Hofstede 5 dimension model :1. Power distance2. Individualism vs. collectivism3. Masculinity vs. femininity
4. Uncertainty avoidance5. Long term vs. short term orientation.
Six Clusters Of Countries1. Contest cluster (Anglo-Saxon countries) they work for their self-interest they will resist change to its maximum.2. Network cluster (Netherland and Scandinavian countries) they believe in their leader and adopt the change suggested by him.3. Pyramid countries have the interest defined by the top management.
4. Family clusters look for the common interest of all.5. Solar cluster is same as pyramid and family cluster.6. Well-oiled machine cluster (Germany and Austria) to define new directions creditability must be increased from a person to another.
Managing The Process Of Organizational ChangeThree important process-oriented perspectives:Change is typified by certain patterns that affect organizations similarly.Organizations are challenged to maintain their entities and identities throughout a transition.Change affects the individuals within an organization more fundamentally than it does the organization as a whole.
Patterns In The Change ProcessThe First Step : Unfreezing the present level of behavior i.e creating motivation and readiness for change. Three ways for this:1. Disconfirmation, when members of the organization experience a need for change which, in turn, motivates them to embrace change.2. Induction of guilt or anxiety; causes perceived gap between what is not currently working well and a desired future state3. Creation of psychological safety, providing an environment in which people feel safe enough to experience disconfirmation and induction.
outlineThe Second Step: Movement i.e. taking action to change the organization‟s social system from its original level of behavior or operation to a new level.Integration Of Change Process ModelsDimensions of the model: • Individual response to change • The general nature of change • Planning change • Managing the people side of change • Managing the organizational side of change • Evaluating the change effort
CONCLUSIONNeed for a “Strategic Change Management System” as a new way to run business to develop a high- performing, customer-focused organization.The method of large group intervention to meet challenges. Also, active support and involvement of senior management.
While changing plan, see the 5 dimensions; applying a change plan, different rules must be followed for the different countries.HR professionals show most agreement with the integrated process model of the change process.
Dimensions of change• Continuous improvement and stability.• Change programs can take following forms:1. Structural change- reconfiguring the organization .2. Cost-cutting change- elimination of non essential activities or reducing costs out of operations.3. Strategic purpose change- changing strategic intent, core purpose, or mission.
• These programs concentrate on altering how things get done.• Examples include re-engineering a process or introducing a new technology.• IT enabled change processes are different from general change processes.• They create unique issues for managers and managers must know how to integrate these processes, technology and organization in order to achieve organizational goals and objectives.
• This change reaches every department.• It reduces cycle time for processes.• It includes knowledge and power shift .• Work methods for negotiation decision process, inventory control and customer delivery service have been changed and improved.
Principles for IT enabled change• Systematic process.• Managing equilibrium.• Enough energy for change.• Analyzing size of change effort.• Hiring it champions.• Stakeholder commitment.• Organizational prototyping• Reviewing whole change process.
5. Cultural change• These programs focus on a companys operating values, norms of behavior, and the relationships.• Examples of cultural change include Command-and-control to participative management. Inwardly focused ‘product push’ mentality to an outward-looking customer focus.• What people need to change is their belief and psychology. .
Prevailing conditions of the organization• The prevailing thinking about the psychology of organizations differs.• The „„feel of an organization‟‟ reflects both its climate and culture• One firm „„feels‟‟ like a dynamic and interesting place to work, while another „„feels‟‟ dull, uninspired and unproductive.
Organizational Climate• Climate is based on the policies, practices, procedures and routines inferred by its people about organization and the goals it pursue.• Four climate dimensions:1. The nature of interpersonal relationships2. The nature of the hierarchy3. The nature of work4. The focus of support and rewards
Organizational Culture• Firmly implanted beliefs and values of organizational members .• Changing the climate is important to changing what an organization‟s believes and values.• When practices are changed, employees‟ values and beliefs are also changed.
MODELS AND METHODS OF TOTAL ORGANIZATIONAL CHANGE (TOC)• Designed to affect multiple policies, practices, procedures, rewards.• It can be sustained and can enhance organizational health over time.• It change that affects the psychology of everyone in an organization.• Different approaches lead towards TOC.
Change Based on the Human Potential Philosophy• Related to relationships, sensitivity and self actualization of employees in organization.• This perspective rests on a number of assumptions : People desire growth and development. People value interpersonal interaction. People need trust, support, and cooperation to function effectively.
Change Based on the Sociotechnical Philosophy• Effective change is a product of integrating the social and technical aspects of work.• It does not emphasize What employees believe the organization‟s goals to be? What kinds of behaviors are rewarded and supported?
Change Based on the TQM Philosophy• TQM focuses on the customer and requires every facet of the organization to be involved.• It emphasizes the broadest range of issues:o Preplanning during the product designo Training employeeso Encouraging employeeso Working with supplierso continuous improvement
How to implement TOC?• Ensure that the organization is prepared to handle a major organizational change.• Be aware that proposed TOCs require tremendous amounts of time and effort.• Plan the TOC in as much detail as possible.• Pay particularly close attention to the organization‟s reward system.
Attributes of weak management that inhibit change:• Strict rules and regulations from the top management.• Not being able to update operating systems and technology.• Dealings with lower-level employees are less than completely honest and open, sometimes harsh.• In past, management has failed to articulate its objectives.• Avoids making tough decisions.
Who is a Change Agent?• The change agent is one who manages organizational roles, responsibilities, structure, output, resources, systems, technology and processes. – According to this definition managers in a organization are the biggest change agent as they control and manage all the factors mentioned in the above definition
The Linear-Rational view of Change• Change in organisations is perceived by internal change agents in this study as being “triggered by change in environmental conditions” such as competitive pressures, legislation, environmental and safety regulations, world-wide economic threats, key stakeholders and leadership preferences and technological advancements.
• Common problem that mangers deal with is that managers have limited resources and they also have to keep in mind the organizational priorities.• Managers feel frustrated when organizations don‟t respond to their proposed plans, which leads to disappointment and they don‟t make any new plans.
• To bring a good change that is favourable for the organization we need a good change agent. – It means we need a good management that is capable of bringing a sustainable change in organization.
• Change is difficult to implement in organization when subordinates or front line employees don‟t trust management. – Research results indicate that Engineers in the organization see administrators as ones who are deeply engaged in politics and detached from actual change and top management is seen as someone who is wasting resources and who are detached from actual problems at production levels.
Reaching andReaching and Changing Frontline Changing Frontline EmployeesBY T.J. Larkin and Sandar Larki (Harvard Business Review)
• Your actions will demonstrate your values much more clearly than words.• Communicate face to face. – Don‟t use videos or Booklets. – Videos are ranked 11th among 14 communication methods in U.S
• Immediate supervisors are best change agents. – Because they interact more with front line employees than management. – Employees have more trust on supervisors than on senior management.
Articles consulted..How To Deal With Resistance To ChangeBy Paul R. LawrenceDriving A Radical ChangeBy Joseph Isern And Caroline PungThe Inconvenient Truth About ChangeBy Scott Keller And Carolyn AikenThe Hard Side Of Change ManagementBy Harold L. Serkin, Perry Keenan, And Alan Jackson Harold
Fact about change in organization• 17 years ago the percentage of successful change adoption in organization was only 30%.• Today its still 30%.
Reasons for failure of change• Reluctance to change.• Use of un appropriate approaches.• Management failure.• Focus on soft side or issues of change only..• Failure to communicate the importance of the elements of change.• Failure in sustaining the change.• Irrationality of people.
• Unpredictability about the nature of the people.• Emphasize on the employees attitude and management behavior.
Articles• How To Deal With Resistance To Change By Paul R. Lawrence• Driving A Radical Change By Joseph Isern And Caroline Pung• The Inconvenient Truth About Change By Scott Keller And Carolyn Aiken• The Hard Side Of Change Management By Harold L. Serkin, Perry Keenan, And Alan Jackson Harold
Formation of a DICE network• Duration• Integrity• Commitment• Effort
Meeting The Transformational Needs Of The OrganizationFactors to be focused• Process• Engine• Leadership• Aspirations• Design• Delivery• Energy
Strategies to mold the behavior of employees towards change• Creating a compelling story• Role modeling• Reinforcing mechanisms• Capability building
Benefits of Change Management to the organization
• Quick and faster response to customer needs.• Better alignment of existing resources.• Assessment of the over all impact of change.• Reduced time.• Reduced possibility of unsuccessful events.• Increased employee performance.• Increased and effective customer service.• Anticipation of challenges and effective response.
Benefits for employees• Management and staff support .• Organizational effectiveness and efficiency is maintained and improved.• Correct perception of the change for staff and public.• Efficient communication strategies.• Minimizes resistance to change• Improved morale, productivity and quality of work.
• Improves cooperation, collaboration and communication.• Reduced stress and anxiety.• Encouragement to stay loyal to the organization.• Increased employee acceptance of the change• reduced disruptive aspects
Successful change management example Apple Introduce new features slowly• Constant Improvement.• Comparison of the new product with the previous one.• They release features when they are ready.• e.g.• Introduction of App store after fully testing the environment by releasing first Iphone.
Not being Caught up in fads• Working on features slowly regardless of how many new products competitors introduce.• Mainly making products for general population than Niche Market.• e.g. Apple doesn‟t claim to use 8 mega pixels cameras.
Making design and user experience a priority• Growth of iOS from 1.0 to 6• Subtle and minute changes.• Common system that works across all its devices: iPods, iPhones, Apple TV, and soon Macs• No extensive user manuals• Well designed operating system and applications.
Change Management in Apple• Acceptance of change throughout the organization.• Implementation of change with more efficient results.• Reduced incidents affecting the efficiency and maintained productivity.• Successfully managing the employees through change process.• Instilling confidence about next project.• Controlling the cost of change significantly.• Evaluation of strong and weak areas.