The document discusses the components and goals of organizational change management, emphasizing the need for an organization to prepare for, implement, and sustain significant changes. It outlines the phases of change, challenges faced during transitions, and the cultural transformations required for successful lean implementation. Key strategies for managing resistance to change and achieving organizational-wide acceptance are also highlighted.

1. Change Management
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2. Components of Lean

3. Change Management
Organizational Change Management is “all of the actions
required for an organization to understand, prepare for,
implement and take full advantage of significant change”.
The goals of Change Management are:
The successful design, implementation, measurement and
maintenance of an organization’s change initiative
Enhancement of their on-going capacity for managing
change.
Enterprise Transformation is driven by an underlying
strategy that organizes and energizes People to
understand, embrace and make full use of new Process
and Technology

4. Phases of Change
Current Transition Future
State State State
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5. Current State
Employees (including management and executives!)
generally prefer the current state, because that is where
they live
Current Transition Future
State State State
The devil you know is better than the devil you don’t”
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6. Future State
The future state is unknown to the employee; will it be better,
or worse?
This is where Project teams “live”
Current Transition Future
State State State
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7. Transition State
The transition state creates stress and anxiety
Current Transition Future
State State State
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8. Lean Transformation
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9. Lean Transformation
1. Stretch targets on key indicators
2. Creating and maintaining Just-in-time conditions
3. Developing employees by teaching them to solve problems all
the time and improve their own processes
4. Improve operations, improve processes, improve product
quality
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10. VSM Transformation
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11. Stretch Targets
In two year s:
- 0 accidents
- 50% reduction in quality complaints
- 100% customer service
- 30% direct labor productivity
- 50% inventory reduction
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12. People
- Transition to Lean is difficult
since a company must build a
culture where learning and
continuous improvement are
the norm.
- Success of lean requires the
full commitment and
involvement of all employees
and of the company’s
suppliers.
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13. Culture Change Cycle
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14. Organization Infrastructure
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15. Lean Enterprise Implementation
Change Culture Change System
Fir st Fir st
(Conventional way) (Lean Way)
Where Do You Start - From Top or Bottom?
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16. Becoming a Lean Culture
- The concept of becoming lean requires a change in the culture
and mindset of its employees to encourage them to constantly
look for and submit ideas for improvement
- In a lean culture, Lean tools can be used to leverage the
collective power of teams to solve persistent issues
- Make sure that the material or information moves smoothly
within your company to meet the customer demand without
getting stuck anywhere in the process

17. Becoming a Lean Culture
- Continuous flow and pull require a perfect system that has the
capacity to meet the necessary demand
- Continuous flow requires lines to be balanced so that all
portions of the process are effectively utilized
- Achieving continuous flow implies that the company has stable
standardized operations and can meet customer demand in the
least amount of time

18. Becoming a Lean Culture
- Lean organizations are learning organizations, a culture,
not a technique
- Lean culture needs to be implemented as a “whole
system” and sub systems of the work flow also include:
Motivation and incentive systems
Training systems
Organization and management levels
Improvement processes
- Lean is a culture and all cultures are complex

19. Organizational Change
It is common for an organization to choose to conduct a
project that will have impact on the organization itself.
Examples:
- New Time and Attendance System
- New email system
- Transition from paper to electronic Requisitions
- Introduction of a new technology
- Distribution of workers in new office space

20. Organizational Change
- Upper Management undertakes these projects because they
believe that there is sufficient gain to the organization to
warrant the expense.
- And Upper Management usually moves forward on the
basis that since it is in everyone’s best interest, those
individuals affected will of course endorse the project and
work to make it a success.
- And all too often Upper Management receives a rude shock.

21. Organizational Change
- It can be very difficult to introduce change to an
organization. Failure to recognize and deal with this fact
has been the cause of many project failures.
- As the Management Team, you must be aware of the extent
to which your projects may introduce organizational
change, and then you must deal with this issue.
- Nonetheless, Organizational Change Management can be of
serious concern to any organization whose projects will
require change either in its customers or within the
organization itself.

22. Organizational Change
What is Or ganizational Change?
- It is generally considered to be an organization-wide
change, as opposed to smaller changes such as adding a
new person.
- It includes the management of changes to the:
organizational culture, business processes, physical
environment, job design / responsibilities, staff skills /
knowledge and policies / procedures.
- When the change is fundamental and radical, one might
call it organizational transformation

23. Organizational Change
Take a moment to think of an example of organizational
change that you have experienced.
Was it successful? Did it go smoothly?
What wer e your feelings ear ly on? Later ?
What did the people ar ound you say about it?

24. Change stages
Organizations go through four stages on the way to
achieving their strategic objective:
- Denial
- Resistance
- Exploration
- Renewal
As the Organization works its way through these stages,
there can be a negative impact on Productivity. This is
referred to as the Productivity Dip and is portrayed on the
next slide.

25. Productivity Dip

26. Productivity Dip
- Minimizing the size and duration of this Productivity
Dip is dependent upon quickly creating acceptance to
the strategic plan and all that it entails.
- But gaining that acceptance is often a difficult process,
as some employees will, for various reasons, seek to
block the change

27. Org. Change factors
- Efforts by employees to block the intended change is
referred to as Resistance to Change.
- Resistance is a natural and inevitable reaction in an
organization. You can expect it
- Resistance is sometimes hidden, so it may be necessary
to take active steps to find it
- There are many reasons for resistance; it is important to
understand it
- We manage resistance by working with people, and
helping them deal with their concerns
- There are many ways to build acceptance. It is
important to be flexible. But persist!

28. Change factors
The key to successful management of organizational
change lies in the people:
1- They are the agents for successful transformation of
the organization.
2- They determine the Return on Investment from this
process
So let’s have a look at where Resistance to Change comes
from and how to best manage it

29. Resistance to Change
Self-Interest
Cultures that Lack of Trust and
Value Tradition Understanding
Different
Perspectives and Uncertainty
Goals

30. Rates of Change
It is generally acknowledged that in an average
organization, when the intention for change is
announced:
15% of the wor kfor ce is eager to accept it
15% of the wor kfor ce is dead set against it
70% is sitting on the fence, waiting to see what
happens

31. Steps to Change
How can I best accomplish Organization-wide Change?
Since our interest here is in Management of
Organizational-wide Change, it can be helpful to re-
define Resistance to Change as “employees are not
wholeheartedly embracing a change that management
wants to implement" (Dent & Goldberg, 1999)
This allows us to focus on gaining acceptance (a positive)
rather than on breaking down resistance (a negative).

32. Steps to Change
- Get senior management agreement (i.e. conflicting goals
can kill the project!)
- Identify a champion who can articulate the reasons for
and advantages of the change
- Translate the vision for change into a realistic plan and
then carry out the plan
- Involve people from every area of the organization
- Communicate. Communicate. Educate. Educate.
- Get organizational support to the change
- Modify organizational structures so that they will sustain
the change

33. Questions ?
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