The presentation is based upon Change management in business and covers the theory, models, examples and a case study on BHEL.

1. CHANGE
MANAGEMENT

3. Our Iceberg Is Melting
1. Created a sense of urgency
2. Put together the guiding team
3. Develop the change vision and strategy
4. Communicated that vision
5. Empower others to act
6. Create short term win
7. Never let up
8. Create a new culture

4. What are the icebergs in your organization?
What are some of the challenges for initiating change?
Melting icebergs come in dozens of forms:
 product lines that are aging
 services that are decreasing in quality
 a business strategy that makes increasingly little sense
 a new strategy whose implementation is sinking into the ocean.
Our Iceberg Is Melting

5. BASIC ASPECTS
 Sponsorship: Ensuring there is active sponsorship for the
change at a senior executive level within the organization, and
engaging this sponsorship to achieve the desired results
 Involvement: Involving the right people in the design and
implementation of changes, to make sure the right changes are
made
 Impact: Assessing and addressing how the changes will affect
people
 Communication: Telling everyone who's affected about the
changes
 Readiness: Getting people ready to adapt to the changes, by
ensuring they have the right information, training and help

6. CHANGE MANAGEMENT TOOLKIT
• Understanding Change (Change Curve , Lewin’s
Change Management Model)

7. Contd…
 Planning Change (Impact Analysis , McKinsey 7S Framework)

8. Contd…
 Implementing Change (Kotter’s 8-Step Change Model)

9.  Communicating Change (Stakeholder Analysis, Mission & Vision)
Contd…

10. 5 Rules for building a world class change team
1. Dream team
2. Change must trump
3. A fine balancing act
4. Keep engagement alive
5. Keeping it simple

11. Examples
 Shell: transforming structure & process by adapting central
standardized processing units
 Nokia : reconstruction & building a new image by selling the
company to Microsoft
 Coca cola: by diversifying product line & expand into new
markets
 Toyota: by adopting just in time approach
 Amazon: changing constantly by adding services like amazon
prime, etc.

12. Hint:

13. Case Study : BHEL (Bharat Heavy Electricals Ltd.)
 Objective : To study the change management strategies during 1971 merger.

14. Introduction:
 Initially set up in 1956 at Bhopal managed by the then Heavy Electricals (India)
Limited (HEIL).
 3 more plants were set up at Haridwar, Hyderabad, and Tiruchirapalli
 Merger of 2 companies (HEIL AND BHEL)
 Many thought it wasn’t a wise move
Case Study : BHEL (Bharat Heavy Electricals Ltd.)
Company No. of employees
HEIL 20,000
BHEL 25,000

15. What is the best way of exploiting the resources available in the
four plants to contribute the maximum to the country's power
development programme?
There are 3 alternatives:
1. Integrated management of the four plants
2. 4 plants could work, each with a higher degree of autonomy,
under a broad framework to be provided by a holding company
3. To carry on as before
Can you guess the alternative selected???
Case Study : BHEL (Bharat Heavy Electricals Ltd.)

16. Implementation of Change : Need for Acceptance:
 to explain to all employees the benefits of integration through meetings
 BHEL Corporate Plan
 Changed Objectives
 Fulfilling the Changed Objectives
a. Engineering B Development Centres
b. Marketing and Sales Division
c. Project Engineering Division
d. Power Projects Division
 Problems of Organizational Change
Success gives Confidence
Case Study : BHEL (Bharat Heavy Electricals Ltd.)

17.  The principl of “organization actualization’’
 Respect the demands made on an organization and respond with optimism
A process of continuous change and development is bound to create problems; but
successful management of change implies the will and ability to anticipate problems,
prepare for them, and deal with them realistically as they emerge.
Case Study : BHEL (Bharat Heavy Electricals Ltd.) – Conclusion

18. Conclusion
Change management
1. Focuses on the ‘people side’ of organizational change
2. Involves both an individual and an organizational perspective
3. Requires action and involvement by leaders and managers
throughout the organization
4. Change management and project management are both tools
that support project benefit realization – project management is
the ‘technical’ side and change management is the ‘people’ side
5. Most effective when it is launched at the beginning of a project
and integrated into the project activities
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