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Objectives:
• Acquire new information and knowledge about
what Organizational Development and Change
Management
• Explain the importance of anticipating and
managing change
• Describe the necessary actions in preparing
people/organizations for change
• Get the affected employees involved in planning
and executing change
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Objectives:
• Build teamwork at all levels of the organization
as they work together to implement the change
• Establish a foundation for change that will make
future changes easier
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What is Organizational Development?
• According the Richard Beckhard, OD has five stage model.
1. Planned
2. Organization-wide action
3. Managed through its internal hierarchy which
4. Increases organizational efficiency and sustainability through
5. Use of planned interventions into organizational processes that are informed by behavioral-science knowledge
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Use of OD
OD is most useful when an organization needs to
1. Change a managerial strategy;
2. Adjust the organizational climate for
consistency with both individual needs and
shifting environmental demands;
3. Change some aspect of its normative “culture”
or group psychology;
4. Change organizational structure and roles;
5. Improve intergroup (and inter-organizational)
collaboration;
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Use of OD
OD is most useful when an organization needs to
6. Open up its communication systems;
7. Have better plan and strategies;
8. Cope with internal problems from mergers and
acquisitions;
9. Improve employees motivation, and/or;
10. Adapt to a changing environment.
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Examples of Core Competency
Company Core Competencies Customer Value
Federal Express Logistics Management On-time package
delivery
Sony Miniaturization Pocketability
Glaxo Discovery of new drugs Better therapies
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“An organization’s capability to improve existing
skills and learn new ones is the most defensible
competitive advantage of all.”
Gary Hamel
Strategy Professor
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What is Change ?
• To transform or convert
• To pass gradually into
• A variation or deviation
• to make a shift from one to another
• to undergo transformation, transition, or substitution
Sources: Merriam-Webster and Dictionary.com
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What is Change?
• The word "change” can possibly scare even the strongest person. When we consider organizational change, it is often necessary to adapt a few positive changes to keep pace with the developments in the market and constantly evolving world.
• Organizations who fail to recognize the required change may fall behind their competitors and may end up in poor growth. For example, the technology used by an organization say on a daily basis may be outdated and has to be replaced, which means the organization should be responsive towards the required change.
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Organizational Development - HRMG
Why Changes Happen? –
Understanding Change and Development
• Individuals and modern organizations are complex
• Successful organizational change begins with a clear vision of organizational health and effectiveness
• Organizational effectiveness is grounded in respect for the human side of enterprise
• Learning is at the core of effective organizational change
• Effective organization development is a collaborative search for the best forms and approaches to organizing to match a client system’s unique circumstances
14
Factors that result in organizational
change
• Competition – With increase in population and
trend, we see a lot of new entrants in the market.
• Innovation in Technology – Technological
changes are rapid.
• Growth – Businesses wanting to attain huge
growth in the market might have to change their
method of operations.
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Factors that result in organizational
change
• Leadership – Leadership transitions are critical
moments. Transitions in leadership offer an
opportunity to make changes in many areas of
the organization
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Factors that result in organizational
change
• Process Improvement – Businesses needs to
introduce new methods to increase efficiency
and effectiveness.
• Government rules and regulations -
Government sets a roll of rules over different
business types.
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Factors that result in organizational
change
• Rules Change - We live in a world of ever-
increasing change. Instant communication,
email, global web connectivity, smart phones,
and other tools have increased the pace of our
lives dramatically.
• Sometimes the basic rules of the game shifts. No
one announces the shift. Some people or
organizations simply start to work with it and
begin to achieve new levels of success. This
phenomenon is called a “paradigm shift”.
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Top 10 Factors to the Failure of Change
Management
1. An utter lack of a PLAN to guide the change
2. Failure to define a clear rationale for the
change
3. Ignoring culture
4. Weak follow-through by sponsors
5. Not investing resources in the change effort
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Top 10 Factors to the Failure of Change
Management
6. Gaps in Change Agent skills
7. Haphazard communications
8. Fear of feedback
9. Declaring success too early
10.Neglecting to reinforce the change
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PARADIGM SHIFT QUESTION
• What today is impossible to do in your
business, but if it would be done, would
fundamentally change in your business for the
better?
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Change Management
• Change management is the application of a
structured process and set of tools for leading
the people side of change to achieve a desired
outcome.
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Change Management
• Change management emphasizes the “people
side” of change and targets leadership within all
levels of an organization including executives,
senior leaders, middle managers and line
supervisors. When change management is done
well, people feel engaged in the change process
and work collectively towards a common
objective, realizing benefits and delivering
results.
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Change Process Framework
Organizational Development - HRMG
Desired
State Interventions
Actual
State
Analysis/
Diagnosis
Action Research
Appreciative Inquiry
Total Quality Management Business Process Reengineering
Pro-active
Intervention
Planning
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8 Steps To Transforming Organizations
1. Establish a sense of Urgency – Leaders
convince employees with the urgency of the
change to get buy in
2. Forming a Powerful Guiding Coalition – Build a
team dedicated to change by identifying
effective leaders in the organization
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8 Steps To Transforming Organizations
3. Create a Vision – Identify the values that are
central to change and create a strategy for
execution and direction
4. Communicate the Vision - Creating a
communication strategy and accommodate
different communication styles
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8 Steps To Transforming Organizations
5. Empowering Others to Act on the Vision –
Empowering staff with the ability to change by
removing obstacles to execute the change
6. Planning for and Create Short-Term Wins –
Reward the people who help the organization
meet the goals
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8 Steps To Transforming Organizations
7. Consolidating Improvements and Producing Still
More Change – Keep looking for improvements
8. Institutionalizing New Approaches – Anchor the
changes in corporate culture. Make the change
permanent
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Think about it for one minute. Why do most
overhyped change programs ultimately fail?
Because they lack accountability, they fail to
achieve credibility, and they have no authenticity.
- Jim Collins
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Organizational Development - HRMG
Evolution Revolution
The Process
Continuous Discontinuous
Linear, orderly Nonlinear, chaotic
Sequenced, incremental Reciprocal, simultaneous
The Results
Renewal, fine tuning Death, rebirth
Quantitative change Qualitative change
New content New context
Path to known state Odyssey to unknown state
Evolution VS Revolution in OD
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Activity – NASA Exercise
• Group of 5
• Assign a Leader
• Assign a Secretary
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Change Cycle, Reactions and
Approaches to Change
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People are often quite uncomfortable with
change, for all sorts of reasons. This can lead
them to resist it and oppose it.
That is why it is important to understand how
people are feeling as change proceeds, so that
you can guide them through it and so that, in the
end, they can accept it and support it.
• There are stages of Transition that people
through when they experience change.
1. Ending, Losing and Letting Go
2. The Neutral Zone
3. The New Beginning
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Change Cycle, Reactions and
Approaches to Change
1. Ending, Losing and Letting Go
Employees are forced to let go of something that
they are comfortable with & they have to deal with
losses and mentally prepare to move
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Change Cycle, Reactions and
Approaches to Change
1. Ending, Losing and Letting Go
They may feel the following emotions:
- Fear
- Denial
- Anger
- Sadness
- Uncertain
- Frustration
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Change Cycle, Reactions and
Approaches to Change
• Guiding People Through Stage One
- Accept people’s resistance, listen to them
emphatically
- Allow them time to accept the change and let go
- Communicate openly. Use team huddles or morning
meetings
- Emphasize how people will be able to apply their
skills, experience, and knowledge once you have
implement the change
- Continuous education about a positive future
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Change Cycle, Reactions and
Approaches to Change
2. The Neutral Zone
This is the bridge between the old and the new.
Employees will still be attached to the old system,
while trying to adapt to the new.
They might be confused and impatient.
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Change Cycle, Reactions and
Approaches to Change
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2. The Neutral Zone
They may feel the following emotions:
- Resentment towards the change initiative
- Low morale and low productivity
- Anxiety about their role, status or identity
- Skepticism about the change initiative
Despite the above, this stage can also be one of great creativity, innovation, and renewal.
Change Cycle, Reactions and
Approaches to Change
• Guiding People Through Stage Two
- Guidance, though it may seem unproductive
- Frequent feedback (performance, team goals,
how they feel)
- Set short-term goals and set rewards
- Boost their morale and continue reminding them
how they can contribute to the success of the
change
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Change Cycle, Reactions and
Approaches to Change
3. The New Beginning
This is the time of acceptance and when change
begins to work. Employees have embraced the
change initiative & might be seeing small wins
from their efforts.
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Change Cycle, Reactions and
Approaches to Change
3. The New Beginning
They may feel the following emotions:
- High energy
- Openness to learning
- Renewed commitment to the group
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Change Cycle, Reactions and
Approaches to Change
• Guiding People Through Stage Three
- Use MBO or Management By Objectives, link
people’s personal goals to the long-term
objectives of the organization
- Regularly highlight stories of success brought
about by the change
- Celebrate! Reward your team
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Change Cycle, Reactions and
Approaches to Change
Unfreezing Stage Establishing a Sense of Urgency
- Examining market and competitive realities
- Identifying and discussing crises, potential crises or major opportunities
Forming a Powerful Guiding Coalition
- Assembling a group with enough power to lead the change effort.
- Encouraging the group to work together as a Team
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Unfreezing Stage Change Agents – Their DNA
• No specific function
• Does not need to be a “Big” person
• Passionate
• Takes the lead
• Willing to take the risks
• Resilient
• Well-grounded
• Fair
• Recognizes that “Change” is inevitable
• Humble
• Accountable
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Managing the Change
Top 10 Skills Needed in Leading Change
1. A creative dissatisfaction with the present, so
that a better way can be seen.
2. The ability to explore different options &
scenarios.
3. Visionary decision-making: choosing a change
path which will lead to both short-term and
long-term advantage.
4. A capacity to present strong and persuasive
arguments to support the case for change.
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Managing the Change
Top 10 Skills Needed in Leading Change
5. Administrative skills to establish management mechanisms to control the change process.
6. Fluent and capable communication skills to explain, persuade, encourage, align and facilitate.
7. Project management disciplines: to provide a methodology for managing a temporary organization.
8. Teambuilding effectiveness: to weld people into cooperative groups.
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Managing the Change
Top 10 Skills Needed in Leading Change
9. Listening: no change leader can get it right all
the time.
10. Learning: so that mistakes & errors are not
repeated and good practices are enforced
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Managing Change Communication Strategies
- Use every vehicle possible to communicate vision, change efforts, feedback.
- Talk to your internal and external customers directly through targeted communications.
- Involve everyone in making decisions through effective and timely consultation:
• Improve your employees understanding of the need for change and gain their commitment
• Identify and address employees’ concerns
• Tap into the knowledge and creativity of our staff
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Managing Change
Removing Obstacles and Empowering Others
- Identify change leaders whose main role is to display change
- Look at your organizational structure, job descriptions, performance and compensation systems to ensure they are in line with the vision
- Identify people who are resisting the change, and help them see what’s needed
- Recognize and reward people for making the change happen
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Managing Change
• Change Agent Credo
- Reflect on your personal and professional
experiences
- Create a detailed personal statement and
“artistic portrait” that reflect your beliefs, values,
skills, passions, commitments, and strengths as
a leader and facilitator of change
- Submit and present on ______________
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Refreezing Stage
Building Momentum of Change
- After every win/project, analyze what went right
and what needs improvement
- Set goals to continue building on the momentum
- Learn about Kaizen, the idea of continuous
improvement and its application
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Refreezing Stage
Institutionalizing the Change
- Change sticks when it becomes “the way we do
things here”, when it seeps into the bloodstream
of the corporate body
- Talk about the progress every chance you get.
Tell success stories about the change process
- Include the change ideals and values when
hiring and training new staff
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Refreezing Stage
Institutionalizing the Change
- Publicly recognizes key members of your
change coalition and make sure the rest of the
staff – new and old – remembers their
contributions
- Conscious attempt to show people how the new
approaches, behaviors, and attitudes have
helped improve performance
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“It will not be the Strongest nor the
Intelligent species will survive, but
the most Responsive to Change”
Charles Darwin
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References:
• Richard Beckhard. “What is Organizational
Development?”
• W. Warner Burke. “Where did OD come from?”
• Lecture notes from Angelito Cruz’s Managing OD class
at DLS-CSB SPACE, 2014
• Lecture notes from Reynaldo Villegas’ Systematizing
Excellence in OD class at DLS-CSB SPACE, 2014
• ACAS.ORG.UK. Managing Change
• William Bridges. “Managing Transitions”
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