Royal Mail, Nokia, and Starbucks all faced challenges that required strategic changes. Royal Mail struggled with profitability and modernization. Nokia's market share declined with the rise of smartphones. Starbucks saw its share price drop, so it brought back its founder to refocus on quality. Successful change management requires analyzing the situation, building a vision, planning implementation while overcoming resistance through communication and involvement. Leadership is key to driving strategic change and navigating an organization to a successful turnaround when needed.

1. Change
Management

2. Examples of change – Royal Mail
In its Victorian heyday, Royal Mail was
envied for its speed and reliability
Recent decades: suffered management
crises, industrial disputes and lost
profits
Struggling to modernise fast enough to
keep pace with loss of letters volume
Moya Greene to electronic media
Strategy now to improve efficiency and
profitability to enable privatisation
http://www.bbc.co.uk/news/10175621

3. Examples of change – Nokia
Nokia has seen its market share in the
mobile phone market plummet as
competitors like Apple, Samsung and HTC
have taken market share through
smartphone innovation.
Elop joined Nokia in 2010 and began a
strategic review. He famously likened
Nokia's position as being like standing on a
Stephen Elop burning platform.
Feb 2011: Elop announced a new strategy
for Nokia - to partner with Microsoft and
abandon Nokia's Symbian operating
http://www.bbc.co.uk/news/business-16953411
system.

4. Examples of change – Starbucks
When Starbucks share price fell by 40% in
2007, Starbucks turned to its founder Howard
Schultz to turn the business around.
Schultz was brutal about what had gone
wrong and what needed to be done to fix the
business.
"When you succeed at this level for so long...
you get a little soft," said Schultz.
Howard Schultz
"We have to get back to what made this
company great, and that is to have the
courage and curiosity, and commitment, to
http://news.bbc.co.uk/1/hi/business/7219458.stm have not been done before."
do things that

5. Management is about
coping with complexity.
Leadership, by contrast
is about coping with
change
Professor John Kotter

6. What is change management?
Change management
involves the process that
ensures a business responds
to the environment in which
it operates

7. Four elements to change

8. Two types of change
Step change Incremental change
Occurs rapidly Change occurs over a
period of time in
incremental stages

9. Step v incremental change
• Step change
– Dramatic or radical change in one fell swoop
– Radical alteration in the business
– Gets it over with quickly
– May require some coercion
• Incremental change
– Ongoing piecemeal change which takes place
as part of an organisation’s evolution and
development
– Tends to more inclusive

10. Lewin’s Force Field Analysis
Forcefield analysis provides
an overview of the change
problems that need to be
tackled by a business,
splitting factors into forces
Kurt Lewin
for and against change

11. Lewin’s Forcefield Analysis
Forces for change Forces resisting change
Driving forces Restraining forces

12. Forcefield analysis
• There are forces driving change and forces
restraining it
• Where there is an equilibrium between the two
sets of forces there will be no change
• In order for change to occur the driving force
must exceed the restraining force
• The analysis can be used to:
– Investigate the balance of power involved in an issue
– Identify the key stakeholders on the issue
– Identify opponents and allies
– Identify how to influence the target groups

13. Forces for change
Internal forces External forces
• Desire to increase • Customer demand
profitability • Competition
• Reorganisation to • Cost of inputs
increase efficiency • Legislation & taxes
• Conflict between • Political
departments
• Ethics & social values
• To change organisational
• Technological change
culture

14. Resistance to change
• A degree of resistance is normal since
change is:
– Disruptive
– Stressful
• A degree of scepticism can be healthy
especially where there are weaknesses in
the proposed changes
• However resistance will also impede the
achievement of organisational objectives

15. Four reasons why change is resisted
• Parochial self interest
– Individuals are concerned with the implications for
themselves
• Misunderstanding
– Communications problems
– Inadequate information
• Low tolerance of change
– Sense of insecurity
• Different assessment of the situation
– Disagreement over the need for change
– Disagreement over the advantages and disadvantages
Source: Kotter and Schlesinger

16. Typical responses to change
• “My needs are already being met”
• “We don’t need to do this”
• “This sounds like bad news”
• “The risks outweigh the benefits”
• “What does this mean for me?”

17. Organisational barriers to change
• Structural inertia
• Existing power structures
• Resistance from work groups
• Failure of previous change initiatives

18. Individual barriers to change
Tradition and set ways: Fear of:
• Loyalty to existing • Loss of power
relationships • Loss of skills
• Failure to accept the need • Loss of income
for change • The unknown
• Insecurity • Redundancy.
• Preference for the existing • Inability to perform as well
arrangements in the new situation
• Break up of work groups
• Different person ambitions

19. Inappropriate change management
• Change is often resisted because of
failures in the way it is introduced – i.e.
failure to:
– Explain the need for change
– Provide information
– Consult, negotiate and offer support and
training
– Involve people in the process
– Build trust and sense of security
– Build employee relations

20. Why staff might welcome change

21. The role of leadership in change
Strategic leadership is vital if a business is to
achieve strategic change

22. How newcomers can help drive change

23. Stages in preparing for change
• Environmental analysis (PEST analysis)
• SWOT analysis
• Identify the changes required
• Determine the major issues
• Identify and assess the key stakeholders
• Win the support of key individuals
• Identify the obstacles
• Determine the degree of risk and the cost of change
• Understand why change is resisted

24. Building the vision
• Develop a clear vision
• Make it people clear about what a
change involves and how they are
involved in it
– What is involved
– What is the proposed change
– Why should we do it
– What will the major effects be
– How can we manage the change

25. Plan the change (1)
• Devise appropriate strategies to introduce
change
• Design the change
• Identify the significant steps in the change
process
• Discuss the need for change and the full details
of what is involved
• Allow people to participate in planning change
• Communicate the plan to all concerned
• Produce a policy statement

26. Plan the change (2)
• Devise a sensible time scale
• Produce action plans for monitoring the change
• Allow people to participate in planning change
• Get all parties involved in and committed to the change
• Inspire confidence by forestalling problems and
communicating regularly
• Devise a sensible time scale for implementation of
change
• Anticipate the problems of implementation
• Understand why change is resisted

27. Implementing the change
• Check on and record progress
• Make sure that change is permanent
• Evaluate the change
• Improve on any weak areas
• Overcome resistance
• Involve all personnel affected
• Keep everyone informed
• Devise an appropriate reward system
• Be willing to compromise on detail
• Ensure that strategies are adaptable
• Select people to champion change
• Provide support and training
• Monitor and review

28. Change management and HRM
• Organisational structure
• Personnel of teams Change
• Operational processes projects
• Location affect
• Workloads every
• Work roles aspect of
• Working practices HR
• Supervision

29. Agile businesses & change (1)
The CIPD asked HRM
professionals what
capabilities organisations
need to be changeable…here
are the results

30. Agile businesses & change (2)

31. Techniques to help implement change
• Cross-functional teams
• Stronger internal communication
• Negotiation
• Action planning
• Change agents or champions of change
• And a certain amount of compulsion
manipulation and coercion

32. Helping people to accept change
• Act decisively – demonstrate
momentum
• Consider how they will be affected
• Involve them in the change
• Consult and inform frequently
• Be firm but flexible
• Monitor the change

33. Reasons why resistance to change increases
• Failing to specific about a change
• Failing to explain why change is needed
• Not consulting
• Keeping people “in the dark”
• Creating excess work pressure
• Expecting immediate results
• Not dealing with fears and anxieties
• Ignoring resistance

34. Reasons why change can fail
• Employees do not understand the purpose
or even the need for change
• Lack of planning and preparation
• Poor communication
• Employees lack the necessary skills and/ or
there is insufficient training and
development offered
• Lack of necessary resources
• Inadequate/inappropriate rewards

35. Turnarounds and change
Where a business
needs to achieve a
rapid improvement
in performance in
order to survive

36. Key requirements of a turnaround

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