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Change management
This document provides an overview of key principles and activities for effective change management in corporate transformations. It discusses (1) principles of change including that change is a process enabled not managed and behavioral change occurs at the emotional level, (2) five key activities for change management - motivating change, creating a vision, developing political support, managing the transition, and sustaining momentum, and (3) additional concepts like overcoming resistance to change, roles in organizational change, and skills needed by change agents.
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Change management
- 1. Change Management: Leading CorporateTransformation
- 2. 2 Contents • Principles ofChange • Five Activities Contributing to Effective Change Management • Motivating Change • Creating Vision of Change • Developing Political Support • Managing the Transition • Sustaining Momentum
- 3. 3 “When the rateof change outside exceeds the rate of change inside, the end is in sight” Rate of Change Jack Welch
- 4. 4 Activity – ChangeYour Seat
- 5. 5 1. Change isa process that can be enabled, not managed 2. The belief that you can change is the key to change 3. It is not the duration of the treatment that allows people to change but rather its ability to inspire continued efforts in that direction 4. Repeated efforts are critical to changing Principles of Change
- 6. 6 5. Behavioral changeis a function of perceived need and occurs at the emotional, not the intellectual level 6. Resistance to change is predictable reaction to an emotional process and depends on a person’s perception of a change situation 7. People do not usually succeed all at once. But they can show significant improvements; and all improvement should be accepted and rewarded Principles of Change
- 7. 7 Activity – GoodiesAuction
- 8. 8 Five Activities Contributingto Effective Change Management
- 9. 9 Five Activities Contributingto Effective Change Management 1. Motivating Change 2. Creating Vision of Change 3. Developing Political Support 4. Managing the Transition of Change 5. Sustaining Momentum Effective Change Management
- 10. 10 1. Motivating Change Motivatingchange and creating readiness for change Sensitize organizations to pressure for change Reveal discrepancies between current and desired states Convey credible positive expectations for the change
- 11. 11 Force Field AnalysisModel Current Situation Restraining Forces for Change Driving Forces for Change
- 12. 12 Force Field AnalysisModel Strengthening or adding driving forces Removing or reducing restraining forces Changing the direction of some of the forces Change
- 13. 13 Activity – Maythe Forces be With You!
- 14. 14 Group Exercise • Takethis opportunity to think of a situation in your organization where Force Field Model could be demonstrated. Begin by identifying a change being instituted in your organization • List the driving forces • List the restraining forces
- 15. 15 Activity – PerceptualBarriers To Change
- 16. 16 Resistance to Change 20%40% 60% 80% 100% Source: Information Week, June 20, 1994 Limitations of Existing Systems Lack of Executive Commitment Lack of Executive Champion Unrealistic Expectations Lack of Cross-Functional Team Inadequate Team and User Skills Technology Users Not Involved Project Charter Too Narrow Barriers to Change
- 17.
- 18. 18 Organizational Resistance Organizational Resistance Threat toEstablished Power Relationship Group Inertia Threat to Established Resource Allocations Structural Inertia Limited Focus of Change
- 19. 19 Activity – WeddingGuests
- 20. 20 Denial Resistance Exploration Past Future FourPhases of Transition Commitment
- 21. 21 • “How goodthings were in the past” • “It can’t happen here” • Numbness • Everything-as-usual attitude • Refusing to hear new information • Anger • Loss and hurt • Stubbornness • Blaming others • Complaining • Getting sick • Doubting your ability Some of the Signs in Each Phase Denial Resistance
- 22. 22 Exploration Commitment • “What’sgoing to happen to me?” • Seeing possibilities • Chaos • Indecisiveness • Unfocused work • Energy • Clarifying goals • Seeing resources • Exploring alternatives • “Where I am headed” • Focus • Teamwork • Vision • Cooperation • Balance Some of the Signs in Each Phase
- 23. 23 Overcoming Resistance toChange Education and Communication Participation and Involvement Facilitation and Support Negotiation Manipulation and Cooptation Coercion Overcoming Resistance to Change
- 24. 24 2. Creating Visionof Change Constructing the Envisioned Future Bold and Valued Outcomes Desired Future State
- 25. 25 3. Developing PoliticalSupport Assessing Change Agent Power Identifying Key Stakeholders Influencing Stakeholders Developing Political Support
- 26. 26 Roles in OrganizationalChange Change Sponsor Change Agents Change Target These are individuals or groups with the power to determine that a change will occur These are individuals or groups responsible for seeing that a previously determined change occurs These are individuals or groups who are asked to change something (knowledge, skills, or behavior) as a result of the change
- 27. 27 4. Managing theTransition Current State Desired Future State Transition State • Activity Planning • Change Management Team
- 28. 28 Critical Skills ofChange Agents Understands change dynamics Appreciates diversity Anticipates and manages resistance Understands power and influence Has high credibility Manages multiple tasks
- 29. 29 5. Sustaining Momentum Sustaining Momentum ProvidingResource for Change Building a Support System for Change Agents Developing New Competencies and Skills Reinforcing New Behaviors Staying the Course
- 30. 30 Activity – Changeis the Name of the Game