1.8 change and Management of Change

Chapter 8

Change

Change is the continuous adoption of business strategies and structures in response to internal pressures or external forces.

How has MPHS changed since your freshman year and why?

External Causes

Globalization: interdependence between countries economies (new opportunities and new markets)

Technological advances (computers, iphones, robotics)

Fiscal policy, interest rates, business cycle (boom or recessions, disposable income)

Legal changes (changes in laws) Competitors’ actions (new products, lower prices) Environmental factors (going green, concern for

climate change)

Internal Causes

Organizational Changes(Delayering-flattening the org chart)

Relocation (moving operations) Cost-Cutting to improve

competitiveness (investment in equipment rather than labor, closing ineffective operations, consolidations)

Strategies to Reduce Impact of Change

4 Questions to help you manage change Is the change anticipated or unexpected? Is the change likely to be dramatic or have a

less significant impact on business Have managers planned for change? To what extent can change be controlled by

management?

Stages of Change Checklist

Things to consider before and as your organization embarks on change

1. Where are we now and why is change necessary?

Stages of Change Checklist

2. New vision and objectives

Have they been developed and communicated?

Stages of Change Checklist

3. Are resources in place to enable change?

If change cannot be completed, poor results are likely.

Stages of Change Checklist

4. Give maximum warning

Staff should not be surprised by change.

Stages of Change Checklist

5. Involve staff in the change plan and its implementation.

Change will more likely be accepted if staff is involved.

Stages of Change Checklist

6. Communicate

Communicate with staff at all stages.

Stages of Change Checklist

7. Introduce initial changes that bring quick results.

Positive experience fosters more change with less ill effects.

Stages of Change Checklist

8. Focus on Training

Helps staff feel involved in the change process.

Stages of Change Checklist

9. Sell the benefits of change.

When positive changes benefits employees and stakeholders – that is a good thing and needs to be explained.

Stages of Change Checklist

10. Always remember the individual.

“Soft” approach will make employees feel supported and will create loyalty.

Stages of Change Checklist

11. Check on people through the change process

How are people coping? A sink or swim philosophy could be damaging.

Lewin’s Force Field

2 opposing forces:

Driving Forces Helps push organizations towards change

Restraining ForcesMight prevent organizations from reaching their “change” goal

Lewin’s Force FieldNew IT SystemDriving Forces

Increased administrative efficiency 3

Improved customer service 3

Improved internal communications 2

Improved supplier communication 2

Restraining Forces

Cost of IT System 4

Staff losses 3

Staff concern about new technology 2

Environmental impact 2

Total 10 Total 11

Rating system of 1-5 (1 being low; 5 being) creates a numerical system to evaluate the forces.

Project Champion

A person assigned to support and drive the project forward.

Project Group

Small groups that are used to recommend solutions on the path to change.