This document provides an overview of leading corporate change and change management. It discusses key principles of change including viewing change as a process, linking change to business goals, building organizational capacity for change, and understanding that behavioral change occurs at the emotional level. It also outlines five key activities for effective change management: motivating change, creating a vision, developing political support, managing the transition, and sustaining momentum. Additionally, it discusses forces for change, resistance to change, and elements to enable change such as change architecture, communication, performance management, and leadership capacity.

1. Leading Corporate Change
(Change Management)

2. You can download these
excellent slides at :
www.HR-Management-Slides.com

3. Contents
• Forces for Change
• Principles of Change
• Five Activities Contributing to Effective Change Management
• Motivating Change
• Creating Vision of Change
• Developing Political Support
• Managing the Transition
• Sustaining Momentum
• Elements of Change Enablement

4. “When the rate of change outside exceeds the rate of change
inside, the end is in sight”
Rate of Change
Jack Welch

5. Forces for Change...
Electronic
commerce
Virtual organizations
Digital convergence
“Knowledge
economy”
“Information Superhighway”
... are transforming the world of business
Mergers &
acquisitions
Privatizations

6. Not Very
Successful
Very Successful
Moderately Successful
Too soon to tell
Unsure33%
27%
27%
9%
4%
Rate of Success in Change Efforts

7. Technical Side of Change Human Side of Change
Two Sides of Change

8. 1. Change is a process that can be enabled, not managed
2. The change process must be linked to business and
performance goals
3. Building capacity to change is a strategic imperative
4. Building capacity for change is an evolutionary process
Principles of Change

9. 5. Effective change processes require a systemic view of the
organization
6. The change process involves both organizational and
personal transitions
7. Behavioral change is a function of perceived need and
occurs at the emotional, not the intellectual level
Principles of Change

10. 8. Resistance to change is predictable reaction to an
emotional process and depends on a person’s
perception of a change situation
9. A handful of change enablement best practices account
for the success of most change processes
10.Change strategies are situational
Principles of Change

11. Five Activities Contributing to
Effective Change Management

12. Five Activities Contributing to 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

13. 1. Motivating Change
Motivating change
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

14. Force Field Analysis Model
Current
Situation
Restraining Forces for Change
Driving Forces for Change

15. Force Field Analysis Model
Strengthening
or adding
driving forces
Removing or
reducing
restraining
forces
Changing the
direction of
some of the
forces
Change

16. Group Exercise
• Take this 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

17. 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

18. Individual Resistance
Individual
Resistance
Habit
Selective
Information
Processing
Economic
Factors
Job Security
Fear of the
Unknown

19. Organizational Resistance
Organizational
Resistance
Threat to Established
Power Relationship
Group Inertia
Threat to Established
Resource Allocations
Structural Inertia
Limited Focus of Change

20. Denial
Resistance Exploration
Past Future
Four Phases of Transition
Commitment

21. • “How good things 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. Exploration Commitment
• “What’s going 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. Overcoming Resistance to Change
Education and
Communication
Participation and
Involvement
Facilitation and
Support
Negotiation
Manipulation
and Cooptation
Coercion
Overcoming
Resistance
to Change

24. 2. Creating Vision of Change
Constructing the
Envisioned Future
Bold and
Valued
Outcomes
Desired
Future
State

25. 3. Developing Political Support
Assessing Change Agent
Power
Identifying Key Stakeholders
Influencing Stakeholders
Developing
Political
Support

26. Roles in Organizational Change
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. Influencing Key Stakeholders
A set of questions designed to profile an individual stakeholder:
• Reluctant and occasional
• Make response to threats
• Assertive and direct
• Deception and subtlety
What is their
style of using
power?
• What is their source of power ?
• What they can control: money, time,
resources, people, information ?
• Who they can influence: friends, admirers,
those who feel obligation ?
Power

28. Influencing Key Stakeholders
• Changes their power ?
• Affects other needs ?
• Affects goals, objectives and interests ?
• Opposition, uncertainty or support ?
• Action now or ‘wait and see’ ?
• Open action or hidden action ?
• Individual action or acting with others ?
What is their likely
response to the
change?
How does the change
really affect them?
Effect of Change

29. Influencing Key Stakeholders
• Significant or limited ?
• Local or widespread ?
• Recoverable or permanent ?
What would be the
impact of their
response?
Effect of Change

30. Influencing Key Stakeholders
What would make
them more
supportive of the
change?
• Information / understanding ?
• Involvement and ownership ?
• Changes in planned actions?
• Direction from more senior managers ?
• Evidence of the success of the change ?
What would make
them less supportive
of the change?
• Personal threat ?
• Non-involvement in decisions ?
• Personal rivalries ?
• Insufficient evidence in ‘trial period’
(defined by them) ?
Influencing Key Stakeholders

31. 4. Managing the Transition
Current
State
Desired Future
State
Transition
State
• Activity Planning
• Change Management Team

32. Head
(Executive Sponsor)
Head
Organizational
Development
(Change Leaders)
Communication Role
(Change Agents)
Human Resources Role
(Change Agents)
• Corporate Management
• Key project accountability and ownership
• Report to CEO on project outcomes/success
• Coordinate overall change program
• Develop clear change strategies for change
• Responsible and accountable for overall success
• Develop individual and team change capability
• Provide clear communication to all key stakeholders
on change related issues
• Develop 2-way communication channels to foster
ongoing organizational change
• Provide expert HR advice on personal transitions and
support
• Provide Change Office & project based HR
infrastructure
Change Management Team : Roles Example

33. Project Leaders
• Take responsibility for key initiatives
• Coordinate project team
• Report to business unit GM and Change Office on
project progress
• Develop leadership change management capability
• Provide ongoing change advice to leaders
• Coordinate project infrastructure & integration
• Prioritize and plan overall project timeframes
• Establish clear project performance measures and
reporting systems
• Manage ongoing project performance
• Report to Executive on overall progress
Leadership Advisory
Role
Process Co-ordination
Role
Performance
Management Role
C - 5
Change Management Team : Roles Example

34. Critical Skills of Change Agents
Understands
change dynamics
Appreciates
diversity
Anticipates and
manages
resistance
Understands
power and
influence
Has high
credibility
Manages
multiple tasks

35. 5. Sustaining Momentum
Sustaining
Momentum
Providing Resource for
Change
Building a Support System
for Change Agents
Developing New
Competencies and Skills
Reinforcing New Behaviors
Staying the Course

36. Five Activities Contributing to 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

37. Elements of Change
Enablement

38. Culture
Capacity
Leadership
Capacity
Individual
& Team Capacity
Future
State
Current
State
Realizing
Leadership Capacity
Individual &
Team Capacity
Change
Architecture
Communication
Performance
Management
Cultural
Capacity
Elements of Change Enablement

39. Change
Architecture
Communication
Performance
Management
Organizational
Transition
Leadership
Capacity
Team & Individual Capacity
Cultural Capacity
Personal Transition
Change
Process
Elements of Change Enablement

40. There is an explicit strategy and
structure which define the nature and
sequence of specific activities and
resources required to facilitate the
change process.
Change
Architecture
Communication
An infrastructure and plan is in place to
build awareness of change goals,
communicate progress toward
attainment of these goals, and
encourage collective ownership of the
change process and outcomes.
Change Enablement – Best Practices

41. Human Resources processes -
recruiting, training, measuring and
rewarding - are aligned to drive new
behaviors in support of the business
vision.
Performance
Management
Change Enablement – Best Practices

42. Leaders’ values and behaviors are
aligned with the business vision; leaders
possess the skills to drive the change
process to completion, and accept the
responsibility for doing so
Leadership
Capacity
Team &
Individual
Capacity
Actions have been taken to increase
individuals’ and teams’ ability to enact
the business vision and operate
effectively in the new environment.
Change Enablement – Best Practices

43. The organization has assessed the
alignment of the current culture with the
change process and built new values
and behaviors as appropriate to support
it.
Cultural
Capacity
Change Enablement – Best Practices

44. References / Recommended Further Readings:
1. Thomas Cummings and Christopher Worley, Organization Development
and Change, South Western College Publishing
You can obtain this excellent book at this link: http://www.amazon.com/Organization-Development-InfoTrac-
College-Printed/dp/0324421389/ref=sr_1_1?ie=UTF8&s=books&qid=1219798794&sr=1-1
2. Lynn Fossum, Understanding Organizational Change, Crisp Learning
Publication
You can obtain this excellent book at this link: http://www.amazon.com/Understanding-Organizational-Change-
Converting-Fifty-Minute/dp/0931961718/ref=sr_1_6?ie=UTF8&s=books&qid=1219798960&sr=1-6

45. End of Material