The document discusses key principles and activities for leading corporate transformation and managing change effectively. It identifies five key activities for change management: 1) motivating change, 2) creating a vision, 3) developing political support, 4) managing the transition, and 5) sustaining momentum. It also discusses principles of change, types of resistance to change, and elements needed to enable change like change architecture, communication, and developing leadership, team, cultural and individual capacities.

1. Leading Corporate Transformation

2. 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

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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” ... are transforming the world of business Mergers & acquisitions Privatizations A-2 “ Information Superhighway”

6. Rate of Success in Change Efforts Not Very Successful Very Successful Moderately Successful Too soon to tell Unsure 33% 27% 27% 9% 4%

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

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

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

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

11. Five Activities Contributing to Effective Change Management

12. Five Activities Contributing to Effective Change Management Motivating Change 2. Creating Vision of Change 3. Developing Political Support 4. Managing the Transition of Change 5. Sustaining Momentum Effective Change Management

13. 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 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 20% 40% 60% 80% 100%

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. C - 6 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 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 Leading Designing Realizing Ending Exploring Beginning Leadership Capacity Individual & Team Capacity Change Architecture Communication Performance Management Cultural Capacity Organizational Transition Personal Transition 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. Recommended Further Readings: Thomas Cummings and Christopher Worley, Organization Development and Change, South Western College Publishing Lynn Fossum, Understanding Organizational Change , Crisp Learning Publication

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