The document discusses change management as an essential process for organizations to adapt to external and internal changes, emphasizing that many initiatives fail due to various factors. It outlines common external forces and internal causes of change, alongside famous examples of effective change management, while also detailing employee reactions and hurdles to change. Lastly, it highlights the importance of a strategic approach to managing change to achieve successful outcomes.

1. Presented by:
Dr Arti Jaisinghani
Dr Unnati Kalwani
MBA HA 1st sem
IMS, Indore

2. “Progress is impossible without change, and those
who cannot change their minds, cannot change
anything”
George Bernard Shaw

3. WHAT IS CHANGE MANAGEMENT?
 Change management is a collective term for all
approaches to preparing and supporting individuals,
teams and organizations in making organizational
change
 In a fast changing environment, organizations have to
cope with new challenges every day - from changes in
hiring decisions to changes in economic scenario, from
changing compensation trends to managing mergers
and acquisitions, from changes in leadership to
expanding business in new markets
 Yet according to a 2013 Strategy&/Katzenbach Center
survey of global senior executives on culture and
change management, the success rate of major change
initiatives is only 54 percent

4. WHY CHANGE HAPPENS?
External Forces of Change:
 An external force of change occurs from an outside
influence on the organization. The main external forces of
change:
 Globalization
 Workforce Diversity
 Ethical Behavior
 Technology
 Government regulations and policies
 Economical changes of the country
 Growing competition
 Changing market trends
 Mergers and Acquisitions

5. Internal causes:
 Poor financial perfomance
 Internal crisis(Strike, shut down)
 Change in employee expectations
 Structural changes
 Administrative changes

6. SOME FAMOUS EXAMPLES OF EFFECTIVE CHANGE
MANAGEMENT
 NOKIA:
THE JOURNEY OF NOKIA
Because Apple beat Nokia to market with its iPhone, the latter company missed its
opportunity to lead the smartphone revolution.
Understanding this all too well — Nokia has reinvented itself time and again in its
150-plus-year history — the Finland-based company hired a new CEO to take the
reins.

7. COCA COLA:
 In the 1980s, Coke’s biggest rival, Pepsi, was aggressively
targeting it. This caused Coca-Cola to re evaluate its offerings.
Eventually, the company decided to concoct a new, sweeter soda.
They called it simply New Coke.
 Unfortunately, the public didn’t take too kindly to the new beverage.
But Coke’s executives didn’t let the mishap derail their success.
 Quickly, management decided to pull New Coke and replace it with
the older, established formula. Lo and behold, Coca-Cola Classic
was born, and Coke maintained its market dominance.

8. GE(General Electricals)
 When Jack Welch assumed the top position at General
Electric in 1981, he inherited a company that had a market
value of $12 billion — certainly a modest number, by
today’s standards. By the time he left in 1998, GE was
worth $280 billion.
 While leading GE, Welch was charged with the task of
making the conglomerate better by any means necessary.
 With his gut telling him that his company was due for a
complete overhaul, Welch decided to implement Six Sigma
at GE in 1995

9. Amazon:
 Ever since Amazon went online in 1995, the e-commerce
juggernaut has undergone a slew of changes
 When the Seattle-based company first launched its website, all it
sold was books. Gradually, Jeff Bezos and his team expanded
Amazon’s offerings to include things like CDs and DVDs.
 Bezos said he wanted his store to become the world’s largest, so
he worked hard toward meeting that goal — whether that meant
offering new products, launching Amazon Prime, launching
Amazon Instant Video ... the list goes on and on.
 Today, Amazon sells more than 200 million products to
customers all over the world.

10. WHAT HAPPENS WHEN THINGS CHANGES?
There are three major hurdles to overcome.
1. Change fatigue: the exhaustion that sets in when
people feel pressured to make too many
transitions at once
2. Change initiatives: because companies lack the
skills to ensure that change can be sustained over
time.
3. Transformation efforts: 44 percent of employees
reported not understanding the changes they were
expected to make, and 38 percent said they didn’t
agree with the changes.

11. THE EMPLOYEE PERSPECTIVE
“Change is the new permanent, but no change is permanent”
Kurt Lewin, a German-American psychologist, explained the
process of change in three steps:
 Unfreeze – When the existing ways need to be let go of
 Transition – Adopting the change or the new way of doing
things
 Refreeze – Making the new way ‘business-as usual’ and a
part of routine
 The basis of these stages is the behaviour of an individual in
different situations and how he reacts to changes happening
around.
 How this behaviour is channeled in a positive way depends
on the way it is managed as changes which have a direct
impact on employees require the maximum coping with and
might even prove tough to handle.

12. REACTIONS TO CHANGE
 Denial: When a change is announced there may be some employees
who feel that the change is not necessary. They may be reluctant to
listen or deny any facts or information presented to support the change.
 Resistance: With any level of change, there may be employees who will
resist the change. Resistance is very common and stems from a fear of
the unknown. Not knowing how an event is going to turn out can be a
frightening event for those who go through the change.
 Anger: When change occurs and the norm is uprooted, people can
sometimes experience anger. Employees may then lash out and
become uncooperative during this time.
 Indifference: Some employees just may not care, or the change may
not have an impact on their routines or work. Be wary of this, as the
change may be intended to have an impact, if the individual is indifferent
about it the change then they may not understand or accept it.
 Acceptance: We hope that changes generally occur for the better and
have a positive influence on those involved. Even with positive change,
acceptance may not happen right away, however is should occur
quicker as opposed to when the change is perceived to be negative.

14. SO WHAT DO WE DO TO MANAGE CHANGE???

15. WHY IS MANAGING CHANGE IMPORTANT?
Mckinsey research indicates a high failure rate of Change
Programs as being around 70% (McKinsey, 2015).
Contributing factors include:
 an unclear ‘future state vision’
 lack of leadership alignment
 passive or active resistance
 poor culture or behavioural norms
 ineffective engagement and communication
 underestimation of change impacts
 lack of coordination across functions
 a lack of change capability and maturity within organization

16. TYPES OF CHANGES
Incremental:
Process or system improvement or upgrades
Change support is focused on human centred design, user experience and adoption
Episodic:
Infrequent and short-term
Often comprising strategic or scheduled programs or projects of change
Examples include new enterprise systems or new organisational design
Usually confined to one business unit/ department
Transformational:
Multiple types of change impacts occur at once: culture, leadership, operating model, technology, process,
customer, location, business model
Multiple parts of the organisation impacted such as finance, HR, operations, retail, supply chain, sales and
marketing, customer support, technology
Requires a holistic and strategic view of change management carefully to avoid risk

18. ELEMENTS OF CHANGE MANAGEMENT STRATEGY
•What is the scope of the change?
•How many people will be impacted?
•Who is being impacted?
•Are people being impacted the same or are they experiencing the
change differently?
•What is being changed (processes, systems, job roles, etc.)?
•What is the timeframe for the change?
Situational Awareness
of the change
•What is the perceived need for this change among employees and managers?
•How have past changes been managed?
•Is there a shared vision for the organization?
•How much change is going on right now?
Organizational
Attributes
•Are particular regions or divisions impacted differently than others?
•Were certain groups advocating a different solution to the same problem?
•Are some groups heavily invested with how things are done today?
Change management
strategy analysis

19. HOW TO SET UP A CHANGE FRAMEWORK
Step 1: Understand change early
Step 2: Set the change strategy
Step 3: Engagement approach and actions
Step 4: Execution

20. CHANGE MANAGEMENT TEAM
 Project or Change Manager(external or internal)
 Financial Analyst
 Business unit liasion
 Team members
(HR executive, executive operations, logistics manager,
marketing and sales executive)
 Reviewing officer
(Director, Chairman, COO)

21. CONCLUSION
 Develop a change management team and create
supportive alliances
 Communicate your plans, take your vision from idea to
action, and overcome challenges along the way
 Measure your success, review lessons learned, and
build a culture of constant improvement.

22. THANKYOU