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  • The factors in a PESTLE analysis are: Political Environmental Social Technological Legal Economic
  • Factors

    1. 1. Factors Influencing Organizational Change Faridah Norhazila Thiva
    2. 2. Last Week <ul><li>Change as an organizational process </li></ul><ul><li>Lewin’s model, Action Research etc. </li></ul>
    3. 3. Factors Influencing Organizational Change <ul><li>2 approaches </li></ul><ul><ul><li>Factors that affect the organization </li></ul></ul><ul><ul><li>Factors that affect the way it changes </li></ul></ul>
    4. 4. Factors that affect the organization <ul><li>First, we need a model of the organization </li></ul><ul><li>We have chosen a long lived model… </li></ul>
    5. 5. McKinsey 7S model From: The Art of Japanese Management, Tom Peters and Robert Waterman, 1981
    6. 6. To Consider <ul><li>What factors can & do affect your team’s facet of the organization? </li></ul>
    7. 7. The factors which affect organizations <ul><li>P – Political </li></ul><ul><ul><li>The current and potential influences from political pressures </li></ul></ul><ul><li>E - Economic </li></ul><ul><ul><li>The local, national and world economic impact </li></ul></ul><ul><li>S - Sociological </li></ul><ul><ul><li>The ways in which changes in society affect the project </li></ul></ul><ul><li>T - Technological </li></ul><ul><ul><li>How new and emerging technology affects our project / organization </li></ul></ul><ul><li>L - Legal </li></ul><ul><ul><li>How local, national and global legislation affects the project </li></ul></ul><ul><li>E - Environmental </li></ul><ul><ul><li>Local, national and global environmental issues </li></ul></ul>
    8. 8. Factors that affect the way organizations change <ul><li>Again we need a model, this time for organizational change </li></ul><ul><li>Last week we saw Lewin’s model </li></ul><ul><li>This week… </li></ul>
    9. 9. Kotter's 8-Step Change Model From: Leading Change, John P Kotter - 1996
    10. 10. To Consider <ul><li>What are the factors that affect the steps in this change model? </li></ul>
    11. 11. Step 1: Create a sense of urgency <ul><li>For the change to happen, it needs the whole organization behind it – believing in it: </li></ul><ul><li>Identify potential threats and develop potential scenarios showing what could happen in the future </li></ul><ul><li>Examine the opportunities that should be exploited </li></ul><ul><li>Start discussions, giving people convincing reasons to start thinking and talking and thinking about the change </li></ul><ul><li>Rally support from your customers and outside investors to reinforce your argument </li></ul>
    12. 12. Step 2: Form a change coalition <ul><li>To help convince people that change needs to happen, find and fuel effective leaders in your organization: </li></ul><ul><li>Identify true leaders in your organization </li></ul><ul><li>Ask for emotional commitment from these people </li></ul><ul><li>Check your team for weaknesses and make sure you have a good mix of people from different areas and levels </li></ul>
    13. 13. Step 3: Create a vision for change <ul><li>You need a clear vision so people can understand the purpose of what you’re asking them to do: </li></ul><ul><li>Determine the values that are central to the change </li></ul><ul><li>Develop a short summary that captures what you see as the future of the organization </li></ul><ul><li>Create a strategy to execute the vision </li></ul><ul><li>Practice your vision speech often </li></ul>
    14. 14. Step 4: Communicate the vision <ul><li>What you do with your vision will determine whether you are successful or not and you’ll find many other run of the day company communications competing against yours: </li></ul><ul><li>At every opportunity, talk about your change vision </li></ul><ul><li>Address people’s concerns – and there will be concerns </li></ul><ul><li>Tie your vision to operations- training, reviews, hiring process … </li></ul><ul><li>Lead by example </li></ul>
    15. 15. Step 5: Remove obstacles <ul><li>You need to remove obstacles to empower people to execute your vision: </li></ul><ul><li>Identify change leaders </li></ul><ul><li>Recognize and reward people for making change happen </li></ul><ul><li>Identify those resisting change and help them see the need </li></ul><ul><li>Remove barriers – human and other </li></ul>
    16. 16. Step 6: Create short-term wins <ul><li>Success motivates – give your team a taste for success: </li></ul><ul><li>Pick a simple project you can implement with help from the die hard critics </li></ul><ul><li>Choose inexpensive projects where you can justify the spend </li></ul><ul><li>Reward the people the help you meet the goals </li></ul>
    17. 17. Step 7: Build on the change <ul><li>Real change runs deep – keep looking for improvements: </li></ul><ul><li>After every win, analyze what went right and what went wrong </li></ul><ul><li>Set goals to continue building on what you’ve achieved </li></ul>
    18. 18. Step 8: Anchor the changes in corporate culture <ul><li>Make the change stick! </li></ul><ul><li>Talk about progress every chance you get </li></ul><ul><li>Tell success stories </li></ul><ul><li>Include values when hiring or training staff </li></ul><ul><li>As key leaders of the change move on, be sure to replace them </li></ul>