This document discusses organizational change management and the factors that impact change. It defines organizational change management as addressing the human side of managing new business processes, structural changes, or cultural changes within a company. Successful change management strategies include having a common vision, strong leadership, educating employees on changes, and measuring and rewarding success. Change can be impacted by internal and external factors. External factors include political, economic, social, technological, legal, and environmental influences, as analyzed using PEST/PESTLE frameworks. Effective change management involves motivating change, creating a vision, gaining political support, managing the transition, and sustaining momentum. Key roles and skills of change agents are also important.

1. Strategic Change Management – 1

2. Broad Concept of Change
“Change is a permanent part of life.
No matter who we are, where we live, how old or
young, we all make changes in our lives. Most of
us struggle with change…
The ways we change inside, the ways we grow
and learn, and become transformed are because
of the changes in our lives.”

3. Basic Fundamentals of
CHANGE MANAGEMENT

4. Two sides of change

5. Organizational change management
(OCM)
Organizational change management (OCM) is a framework
for managing the effect of new business processes,
changes in organizational structure or cultural changes
within an enterprise.
Simply put, OCM addresses the people side of change management.

6. Organizational change management
Change management requires both an individual and an
organizational perspective

7. Organizational change management

8. Principles of change

9. Successful SCM strategies include
• Agreement on a common vision for change -- no competing initiatives.
• Strong executive leadership to communicate the vision and sell the business case
for change.
• A strategy for educating employees about how their day-to-day work will change.
• A concrete plan for how to measure whether or not the change is a success -- and
follow-up plans for both successful and unsuccessful results.
• Rewards, both monetary and social, that encourage individuals and groups to
take ownership for their new roles and responsibilities.

10. Factors impacting change
INTERNAL Factors
Changes inside the organisation that are generally under
the control of the company
VS
EXTERNAL Factors
Factors that occur outside of the company, that causes
change inside organisations.

11. Forces for change

12. External Factors – PEST/EL analysis

13. External Factors - PEST analysis
The basic PEST analysis includes four factors:
1. Political factors are basically to what degree the government intervenes in the
economy.
• Specifically, political factors include areas such as tax policy, labor law, environmental
law, trade restrictions, tariffs, and political stability.
• Also include goods and services which the government wants to provide or be provided
(merit goods) and those that the government does not want to be provided (demerit
goods or merit bads).
• Furthermore, governments have great influence on the health, education, and
infrastructure of a nation.
2. Economic factors include economic growth, interest rates, exchange rates and the inflation
rate.
• These factors have major impacts on how businesses operate and make decisions.
• For example, interest rates affect a firm's cost of capital and therefore to what extent a
business grows and expands.
• Exchange rates affect the costs of exporting goods and the supply and price of imported
goods in an economy.

14. External Factors - PEST analysis
3. Social factors include the cultural aspects
• Include health consciousness, population growth rate, age distribution, career attitudes and emphasis on
safety.
• Trends in social factors affect the demand for a company's products and how that company operates. For
example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor).
• Furthermore, companies may change various management strategies to adapt to these social trends (such as
recruiting older workers).
4. Technological factors include technological aspects
• such as R&D activity, automation, technology incentives and the rate of technological change.
• They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions.
• Furthermore, technological shifts can affect costs, quality, and lead to innovation.

15. External Factors – PESTLE / PESTEL
Expanding the analysis to PESTLE or PESTEL adds:
5. Legal factors include
 discrimination law, consumer law, antitrust law, employment law, and health and safety
law.
 These factors can affect how a company operates, its costs, and the demand for its
products.
6. Environmental factors include
 Ecological and environmental aspects such as weather, climate, and climate change, which
may especially affect industries such as tourism, farming, and insurance.
 Furthermore, growing awareness of the potential impacts of climate change is affecting
how companies operate and the products they offer, both creating new markets and
diminishing or destroying existing ones.

16. Other External Factors
7. Demographic factors include
• Gender, age, ethnicity, knowledge of languages, disabilities, mobility, home
ownership, employment status, religious belief or practice, culture and tradition,
living standards and income level.
8. Regulatory factors include
• Acts of parliament and associated regulations, international and national standards,
local government by-laws, and mechanisms to monitor and ensure compliance with
these.

17. Effective Change
Management

18. 5 Activities contributing to effective
change management

19. 1. Motivating change

20. 2. Creating vision of change

21. 3. Developing political support

22. 4. Managing the transition of change

23. Sustaining momentum

24. Roles in organisational change

25. Critical skills of change agents

26. Q & A