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Managing Change – Process,
Types and Challenges
Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt)
Professor
Change Management
 Change management is an approach to
shifting or transitioning individuals, teams &
organisations from a current state to a
desired future state.
 Change management is the process, tools
& techniques to manage the people-side of
change to achieve the required business
outcome(s)
Change Management Process
 The change management process is the sequence of
steps or activities that a change management team or
project leader would follow to apply change
management to a project or change.
 Change management processes contain the following
three phases:
 Phase 1 - Preparing for change
 Phase 2 - Managing change
 Phase 3 - Reinforcing change
Change Management Process
Change Management Process
1) Preparing for change (Assessment)
 Identifying the problem: Opportunity that
necessitates change (symptoms)
 Data collection: Gathering structural, technological
and people information and effects of these elements
on the process
 Data analysis: Summarizing the data ( advantages,
dis-advantages, risks, and consequences)
 Strategic determination: Identifying possible
solutions, barriers, strategies
 Decide if the change is necessary.
 Make others aware of the need for the change.
 Swat analysis and basic 4 forces models:
(environmental forces ,organizational forces , task
demand , personal need.)
Change Management Process (Contd.)
2) Managing change (Planning and
Implementation)
 State goal and specific measurable objectives and also
the time allotted.
 Establishing the who, how, what, and when of change.
 Allocating resources, budget and evaluation methods.
 Plan for resistance management.
 Identify areas of support & resistance.
 Include every one in the planning that will be affected.
 Establish target dates for implementation.
 Develop appropriate strategy for alteration.
 Be available to support others through the process.
 Evaluate the change then modify if necessary.
Change Management Process
(Contd.)
3) Reinforcing change (Evaluation)
 Determining effectiveness of change.
 Achieved objectives and benefits - qualitative as
well as financial and the documented evidences of
being achieved.
 Stabilize the change: - taking measures to
reinforce and maintain the change.
Kurt Lewin’s Change Management
Process
 Lewin provides a social-psychological view of the change
process.
 He sees behavior as a dynamic balance of forces working
in opposing directions .
 Driving forces facilitate change because they push
persons in the desired direction .
 Restraining forces impede change because they push
persons in the opposite direction.
 Status quo level is the person balanced state or state of
equilibrium between 2 forces.
Kurt Lewin’s Change Management
Process
Unfreeze
 The existing equilibrium. Motivate persons by getting
them ready for change and increase willing to change .
 Build trust and recognition for the need to change.
 Actively participate in identifying problems and
generate alternative solutions.
 Is the development through problem awareness of a
need for change.
Moving
 Work toward change by identifying the problem or
the need for change.
 Explore the alternatives,
 Defining goals & objectivities
 Plan how to accomplish the goal &
 Implement the plan for change.
 Get persons to agree that the status quo is not
beneficial to them.
Refreezing
 Does the integration of the change happened into
ones personality & consequently stabilization of the
change happened?
 Then reinforce the new patterns of behavior.
(Positive change)
 New level of equilibrium.
 Frequently person tries to return to old behavior
after the change effort ceases.(Negative change)
Steps For Successful Change
management
 Increase urgency : inspire people to move
 Build the guiding team : the right people
 Get the vision right : simple vision and strategy
 Empower action : Remove obstacles
 Create short-term wins : Set aims that are easy to
achieve
 Don't let up : highlight achieved and future
milestones
 Make change stick : Weave change into culture
Types of Change
 There are two types of change in an organization:
- Planned change and
- “Emergent” change
 Planned change - refers to initiatives that are
driven “top-down” in an organization.
 Emergent” change - refers to a situation in which
change can originate from any level in the
organization.
Areas of Change in an
Organisation
Strategic
Structural
Process-oriented and
People-centered
Strategic Change
 Sometimes in the course of normal business operation
it is necessary for management to adjust the firm's
strategy to achieve the goals of the company, or even to
change the mission statement of the organization in
response to demands of the external environments.
 Adjusting a company's strategy may involve changing
its fundamental approach to doing business: the
markets it will target, the kinds of products it will sell,
how they will be sold, its overall strategic orientation,
the level of global activity, and its various partnerships
and other joint‐business arrangements.
Structural Change
 Organizations often find it necessary to redesign the
structure of the company due to influences from the
external environment.
 Structural changes involve the hierarchy of authority,
goals, structural characteristics, administrative
procedures, and management systems.
 Almost all change in how an organization is managed
falls under the category of structural change.
 A structural change may be as simple as implementing a
no‐smoking policy, or as involved as restructuring the
company to meet the customer needs more effectively.
Process‐oriented Change
 Organizations may need to reengineer processes to
achieve optimum workflow and productivity.
 Process‐oriented change is often related to an
organization's production process or how the
organization assembles products or delivers services.
 The adoption of robotics in a manufacturing plant or
of laser‐scanning checkout systems at supermarkets
are examples of process‐oriented changes.
People‐centered Change
 This type of change alters the attitudes, behaviors,
skills, or performance of employees in the company.
 Changing people‐centered processes involves
communicating, motivating, leading, and interacting
within groups.
 This focus may entail changing how problems are
solved, the way employees learn new skills, and even
the very nature of how employees perceive themselves,
their jobs, and the organization.
 Some people‐centered changes may involve only
incremental changes or small improvements in the
process.
Reasons for Change
 Facing increased competition
 Smarter and more demanding customers
 Less brand loyal
 Improvements in operations can simultaneously lower
costs and improve customer satisfaction.
 Improving operations often dependent on advances in
technology
Challenges in Change Management
Planning
 Without step-by-step planning, change in an organization
is likely to fall apart or cause more problems than benefits.
 One need to understand exactly what changes will take
place and how those changes will occur.
 One need to know if the new system is compatible with the
old system.
 One also need to assign roles to individuals who are
responsible for the change so all duties are covered.
 The time line for the change is also a key component.
 One need to plan for downtime or difficulties in
completing regular work tasks while the change occurs.
Challenges in Change
Management (Contd.)
Lack of Consensus
 If one fails to get everyone on board with the corporate
changes, one is likely to face barriers during the process.
 The decision to implement changes should come from the
top level of the organization.
 All management level staff needs to be on board and able to
deal with the changes or one may face dissension within the
staff.
 One may not have everyone on board right from the
beginning.
 Showing managers how the changes will affect the company
and the steps for implementing the changes helps get them
on board if they initially have reservations.
Challenges in Change
Management (Contd.)
Communication
 Failing to communicate with all employees invites rumours
and fear into the workplace.
 Employees want to know what's going on, whether it is positive
or negative news.
 The feeling of uncertainty, when management doesn't
communicate, disrupts work and makes employees feel as if
they aren't a part of the decision.
 Management should keep employees updated regularly about
the plans & progress toward the change implementation.
 Management should involve all employees as much as possible
through meetings or brainstorming sessions to help during the
planning phase.
Challenges in Change
Management (Contd.)
Employee Resistance
 In some cases, employees resist change.
 They become comfortable with the way the business is
run.
 They know the expectations and their role within the
company.
 When a major change disrupts their familiarity, some
employees become upset.
 They don't want to relearn their jobs or change the way
they do things.
Causes for Resistance to Change
 Lack of trust
 Perception that change is not necessary
 Perception that change is not possible
 Relatively high cost
 Fear of personal failure
 Loss of status or power
 Threats to values and ideas
 Social, cultural or organizational disagreements
 Resentment of interference
Handling Resistance to Change
 Supporting employees and providing training for any
new responsibilities
 Leadership Commitment
 Knowledge of Change
 Effective Communication
 Active Participation
 Building the Requisite Technical Capacity
 Coercion
 Negotiation
Benefits of Successful Change
Management
Enhances institutional best practices
Projects the organization as progressive, forward
looking and proactive
 Ensures quality service delivery
 Earns the institution public goodwill and support
 Creates an enabling work environment
 Increases employee morale, attitudes and effectiveness

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Managing change, change process, change types and challenges in change managementrocess

  • 1. Managing Change – Process, Types and Challenges Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt) Professor
  • 2. Change Management  Change management is an approach to shifting or transitioning individuals, teams & organisations from a current state to a desired future state.  Change management is the process, tools & techniques to manage the people-side of change to achieve the required business outcome(s)
  • 3. Change Management Process  The change management process is the sequence of steps or activities that a change management team or project leader would follow to apply change management to a project or change.  Change management processes contain the following three phases:  Phase 1 - Preparing for change  Phase 2 - Managing change  Phase 3 - Reinforcing change
  • 5. Change Management Process 1) Preparing for change (Assessment)  Identifying the problem: Opportunity that necessitates change (symptoms)  Data collection: Gathering structural, technological and people information and effects of these elements on the process  Data analysis: Summarizing the data ( advantages, dis-advantages, risks, and consequences)  Strategic determination: Identifying possible solutions, barriers, strategies  Decide if the change is necessary.  Make others aware of the need for the change.  Swat analysis and basic 4 forces models: (environmental forces ,organizational forces , task demand , personal need.)
  • 6. Change Management Process (Contd.) 2) Managing change (Planning and Implementation)  State goal and specific measurable objectives and also the time allotted.  Establishing the who, how, what, and when of change.  Allocating resources, budget and evaluation methods.  Plan for resistance management.  Identify areas of support & resistance.  Include every one in the planning that will be affected.  Establish target dates for implementation.  Develop appropriate strategy for alteration.  Be available to support others through the process.  Evaluate the change then modify if necessary.
  • 7. Change Management Process (Contd.) 3) Reinforcing change (Evaluation)  Determining effectiveness of change.  Achieved objectives and benefits - qualitative as well as financial and the documented evidences of being achieved.  Stabilize the change: - taking measures to reinforce and maintain the change.
  • 8. Kurt Lewin’s Change Management Process  Lewin provides a social-psychological view of the change process.  He sees behavior as a dynamic balance of forces working in opposing directions .  Driving forces facilitate change because they push persons in the desired direction .  Restraining forces impede change because they push persons in the opposite direction.  Status quo level is the person balanced state or state of equilibrium between 2 forces.
  • 9. Kurt Lewin’s Change Management Process
  • 10. Unfreeze  The existing equilibrium. Motivate persons by getting them ready for change and increase willing to change .  Build trust and recognition for the need to change.  Actively participate in identifying problems and generate alternative solutions.  Is the development through problem awareness of a need for change.
  • 11. Moving  Work toward change by identifying the problem or the need for change.  Explore the alternatives,  Defining goals & objectivities  Plan how to accomplish the goal &  Implement the plan for change.  Get persons to agree that the status quo is not beneficial to them.
  • 12. Refreezing  Does the integration of the change happened into ones personality & consequently stabilization of the change happened?  Then reinforce the new patterns of behavior. (Positive change)  New level of equilibrium.  Frequently person tries to return to old behavior after the change effort ceases.(Negative change)
  • 13. Steps For Successful Change management  Increase urgency : inspire people to move  Build the guiding team : the right people  Get the vision right : simple vision and strategy  Empower action : Remove obstacles  Create short-term wins : Set aims that are easy to achieve  Don't let up : highlight achieved and future milestones  Make change stick : Weave change into culture
  • 14. Types of Change  There are two types of change in an organization: - Planned change and - “Emergent” change  Planned change - refers to initiatives that are driven “top-down” in an organization.  Emergent” change - refers to a situation in which change can originate from any level in the organization.
  • 15. Areas of Change in an Organisation Strategic Structural Process-oriented and People-centered
  • 16. Strategic Change  Sometimes in the course of normal business operation it is necessary for management to adjust the firm's strategy to achieve the goals of the company, or even to change the mission statement of the organization in response to demands of the external environments.  Adjusting a company's strategy may involve changing its fundamental approach to doing business: the markets it will target, the kinds of products it will sell, how they will be sold, its overall strategic orientation, the level of global activity, and its various partnerships and other joint‐business arrangements.
  • 17. Structural Change  Organizations often find it necessary to redesign the structure of the company due to influences from the external environment.  Structural changes involve the hierarchy of authority, goals, structural characteristics, administrative procedures, and management systems.  Almost all change in how an organization is managed falls under the category of structural change.  A structural change may be as simple as implementing a no‐smoking policy, or as involved as restructuring the company to meet the customer needs more effectively.
  • 18. Process‐oriented Change  Organizations may need to reengineer processes to achieve optimum workflow and productivity.  Process‐oriented change is often related to an organization's production process or how the organization assembles products or delivers services.  The adoption of robotics in a manufacturing plant or of laser‐scanning checkout systems at supermarkets are examples of process‐oriented changes.
  • 19. People‐centered Change  This type of change alters the attitudes, behaviors, skills, or performance of employees in the company.  Changing people‐centered processes involves communicating, motivating, leading, and interacting within groups.  This focus may entail changing how problems are solved, the way employees learn new skills, and even the very nature of how employees perceive themselves, their jobs, and the organization.  Some people‐centered changes may involve only incremental changes or small improvements in the process.
  • 20. Reasons for Change  Facing increased competition  Smarter and more demanding customers  Less brand loyal  Improvements in operations can simultaneously lower costs and improve customer satisfaction.  Improving operations often dependent on advances in technology
  • 21. Challenges in Change Management Planning  Without step-by-step planning, change in an organization is likely to fall apart or cause more problems than benefits.  One need to understand exactly what changes will take place and how those changes will occur.  One need to know if the new system is compatible with the old system.  One also need to assign roles to individuals who are responsible for the change so all duties are covered.  The time line for the change is also a key component.  One need to plan for downtime or difficulties in completing regular work tasks while the change occurs.
  • 22. Challenges in Change Management (Contd.) Lack of Consensus  If one fails to get everyone on board with the corporate changes, one is likely to face barriers during the process.  The decision to implement changes should come from the top level of the organization.  All management level staff needs to be on board and able to deal with the changes or one may face dissension within the staff.  One may not have everyone on board right from the beginning.  Showing managers how the changes will affect the company and the steps for implementing the changes helps get them on board if they initially have reservations.
  • 23. Challenges in Change Management (Contd.) Communication  Failing to communicate with all employees invites rumours and fear into the workplace.  Employees want to know what's going on, whether it is positive or negative news.  The feeling of uncertainty, when management doesn't communicate, disrupts work and makes employees feel as if they aren't a part of the decision.  Management should keep employees updated regularly about the plans & progress toward the change implementation.  Management should involve all employees as much as possible through meetings or brainstorming sessions to help during the planning phase.
  • 24. Challenges in Change Management (Contd.) Employee Resistance  In some cases, employees resist change.  They become comfortable with the way the business is run.  They know the expectations and their role within the company.  When a major change disrupts their familiarity, some employees become upset.  They don't want to relearn their jobs or change the way they do things.
  • 25. Causes for Resistance to Change  Lack of trust  Perception that change is not necessary  Perception that change is not possible  Relatively high cost  Fear of personal failure  Loss of status or power  Threats to values and ideas  Social, cultural or organizational disagreements  Resentment of interference
  • 26. Handling Resistance to Change  Supporting employees and providing training for any new responsibilities  Leadership Commitment  Knowledge of Change  Effective Communication  Active Participation  Building the Requisite Technical Capacity  Coercion  Negotiation
  • 27. Benefits of Successful Change Management Enhances institutional best practices Projects the organization as progressive, forward looking and proactive  Ensures quality service delivery  Earns the institution public goodwill and support  Creates an enabling work environment  Increases employee morale, attitudes and effectiveness