Change Management Intro Ppt

13th Dec. '09 (H. Ajonbadi)

Stakeholder Focus Change Management

Introduction Today’s organisations are operating in a fast-changing

market place, as change is every where.

Global competion, rapid technological advances, andmore demanding consumers are putting pressure onorganisations in every sector to provide high qualityproducts and services.

The contemporary business environment is by natureturbulent, providing the catalyst for organisations toneed to change. Technological changes were noted asone of the most insidious and fast moving ofenvironmental pressures, as well as the changingexpectations and knowledge of consumers.


• There are many different types of change and differentapproaches to managing change.

• It is a topic subject to more than its fair share ofmanagement fads, quick fixes and guaranteed winapproaches.

• Managing change involves being able to balance theseemingly endless stream of conflicting priorities andmaking difficult choices.


Stakeholders and Change Participants Change participants are all those affected by the

change. They will need to know the reasonsbehind the change as well as the intended effect onthem and their working practices.

They come under the umbrella term ofstakeholders but a change may also havestakeholders who are not directly affected.

Stakeholder Analysis is required to help plan thechange.


Identifying the key stakeholders and theirinfluence on the change as well as potentialresistance will assist in devising a programme thatwill address their concerns and fears, as well asidentifying and dealing with potential conflicts.

The key stakeholders are those who can influencethe success of the change project, in many casesthese people will also be change participants.

It is however a feature of our environment thatacademics can often act as 'indirect stakeholders'where they feel that proposed changes are not inkeeping with their culture and values.


Selling Change Managementto Stakeholders• Almost every change of substance requires thecooperation, collaboration, and co-ownership of others.It is only by giving the assessment and scrutiny of thesestakeholders full consideration that the change canexpect full acceptance.

• Everyone in an organization is a salesperson, selling hisor her ideas, proposals, and recommendations. Even aCEO, president, or owner needs to achieve buy-in of keystrategies and tactics from the necessary people if theyare to succeed.


That success, i.e., the implementation ofmeaningful improvement in an organization,requires answering three questions:

What to change,

To what to change to, and

How to make the change happen.


• These questions are not just an issue of

technical solutions and project management.

It also involves dealing with the "people factor" —thedreaded "resistance to change."


Drivers for Change Competitive pressures

Globalization

The impact of global instability

Demand for greater transparency and accountability

The question of global sustainability


• Loss of trust in institutions

• The quest for productivity

• Technology

• The e-economy

• The consumer revolution


• The social context

Demographics

Social fragmentation

Stereotypical social attitudes

• Changing industrial relations climate and

employment legislation

• The rise of the stakeholder

• Human capital accounting


Resistance to Change

Like "beauty and the beholder," resistance to change isin the "eye of the proposer." The proponent of a changemay perceive as resistance what his or her audienceconsiders careful assessment and scrutiny.


Peeling the Onion of Resistance These characteristics — these layers of resistance —

each need to be addressed, and like the layers of anonion, once one is dealt with, another often appears.

The Stakeholder Focus process utilized by the clientsof Focused Performance is based on a set of logical,analytical tools for that are used to both build asolution and to sell it.


The above diagram describes the level of resistance to change


These tools, the Theory of Constraints (TOC),thinking processes, provide a path through the layersof resistance and actually take full advantage of"resistance to change" — of stakeholder scrutiny — tonot only enhance the solution beyond the originalconcept, but also assure effective implementation.


Change usually involves three aspects:people, processes and culture as shown in the following figure:


Types of Change• Entering uncharted change territory without some sort

of route map puts you at an immediate disadvantagefrom the start. One of the first stages in charting theterritory is to understand a little more about the typeof change you wish to make.

• There are a number of ways in which change can becategorised, most are related to the extent of thechange and whether it is seen as organic (oftencharacterised as bottom-up) or driven (top-down).


Ackerman (1997) has distinguished between three types of change:

Types of Change Characteristics

Developmental May be either planned or emergent; it is first order, or

incremental. It is change that enhances or corrects

existing aspects of an organisation, often focusing on

the improvement of a skill or process.

Transitional Seeks to achieve a known desired state that is

different from the existing one. It is episodic,

planned and second order, or radical. Much of

the organisational change literature is based on

this type.

Transformational Is radical or second order in nature. It requires

a shift in assumptions made by the

organisation and its members.

Transformation can result in an organisation

that differs significantly in terms of structure,

processes, culture and strategy. It may,

therefore, result in the creation of an

organisation that operates in developmental

mode - one that continuously learns, adapts

and improves.13th Dec. '09 (H. Ajonbadi)

Planned Versus Emergent Change

Sometimes change is deliberate, a product ofconscious reasoning and actions - planned change. Incontrast, change sometimes unfolds in an apparentlyspontaneous and unplanned way. This type of changeis known as emergent change


Change can be emergent rather than planned in two ways:

1. Managers make a number of decisions apparentlyunrelated to the change that emerges. The change istherefore not planned.

2. External factors or internal features influence thechange in directions outside the control of managers.Even the most carefully planned and executed changeprogramme will have some emergent impacts.


This highlight two important aspects of managing change:

1. The need to identify, explore and if necessarychallenge the assumptions that underliemanagerial decisions.

2. Understanding that organizational change is aprocess that can be facilitated by perceptiveand insightful planning and analysis and wellcrafted, sensitive implementation phases, whileacknowledging that it can never be fullyisolated from the effects of serendipity,uncertainty and chance (Dawson, 1996).


Episodic versus Continuous Change• Episodic change, is 'infrequent, discontinuous and

intentional'. Sometimes termed 'radical' or 'secondorder' change. Episodic change often involvesreplacement of one strategy or programme withanother.

• Continuous change, in contrast, is 'ongoing, evolvingand cumulative'. Also referred to as 'first order' or'incremental' change. Continuous change ischaracterized by people constantly adapting andediting ideas they acquire from different sources.


Using these characteristics proposed changescan be placed along two scales:

Radical - incremental and core - peripheral.

Radical changes to an institution's or department'score business will normally generate high levels ofdisturbance; incremental changes to peripheralactivities are often considered to be unexceptionaland can be accommodated as a matter of course,especially if the group involved has a successful pastrecord of continuous improvement.



Change StrategiesFive different broad approaches to effecting change were identified by Thurleyand Wirdenius (1973) and summarised by Lockitt (2004).

1. Directive strategy.

• This strategy highlights the manager's right to managechange and the use of authority to impose change withlittle or no involvement of other people.

• This approach may lead to valuable information andideas being missed and there is usually strongresentment from staff when changes are imposedrather than discussed and agreed.


http://nt6139.vs.netbenefit.co.uk/pdf/CHANGEMANAGEMENT3t.pdf





2. Expert strategy.

This approach sees the management of change as aproblem solving process that needs to be resolved byan 'expert'.

This approach is mainly applied to more technicalproblems, such as the introduction of a new learnermanagement system, and will normally be led by aspecialist project team or senior manager.


3. Negotiating strategy.

• This approach highlights the willingness on the part ofsenior managers to negotiate and bargain in order toeffect change. Senior managers must also accept thatadjustments and concessions may need to be made inorder to implement change.

• This approach acknowledges that those affected bychange have the right to have a say in what changes aremade, how they are implemented and the expectedoutcomes.


4. Educative strategy.

• This approach involves changing people's values andbeliefs, 'winning hearts and minds', in order for themto fully support the changes being made and movetoward the development of a shared set oforganizational values that individuals are willing, andable to support .

• A mixture of activities will be used; persuasion;education; training and selection, led by consultants,specialists and in-house experts.


5. Participative strategy.

• This strategy stresses the full involvement of all ofthose involved, and affected by, the anticipatedchanges. Although driven by senior managers theprocess will be less management dominated anddriven more by groups or individuals within theorganisation.

• The views of all will be taken into account beforechanges are made.


The five change strategies are not mutually exclusiveand a range of strategies can be employed to effectchange.

Part of the skill of effective change management is torecognize what strategy/ies to employ, when, whereand how to use them.


The change management strategies and their main advantages and disadvantages are summarised above


The Transition Curve The three stages of transition are shown in a

Transition Curve and whilst this curve is oversimplified, it is a useful tool for understanding thesorts of issues people might be facing during achange.

When managing change it's important torecognize that transition is an individual reaction.The role of managers is to help others through tonew beginnings whilst maintaining the level ofactivity or service.



Here are some points to bear in mind when assessing where people are on the transition curve. Some people repeat sections of the curve to best handle transition

People will exhibit different emotions depending upon the nature andnumber of changes occurring to them at the same time and their'emotional intelligence'. This is normal.

Realising where you and the people around you are on the curve willhelp you initiate appropriate actions and respond effectively.

Teams may travel the curve together but individuals will arrive at'beginnings' at their own personal rate.

It's OK to be slow so long as you're moving and not stuck somewhere.

It's OK to be slow so long as you're planning on arriving sometime.

It's OK to be fast so long as you're tolerant and supportive of slowertravellers.

It's OK to be fast so long as you honestly acknowledge your own'endings'


Understanding Endings In the 'Endings' stage, staff may want to deny the existence of the

initiative and other related change events. Their denial can movethem to fear and uncertainty about the future.

Staff may acutely feel the loss of the familiarity and security theyfelt in the organization before this and other changes occurred.They are likely to be trying to reconcile or accept the fact thatthings will now be different from the way they have been. Theywill be trying to accept that they will have to let go of theircurrent sense of identity in the organisation.

Follow this link for a checklist of actions to consider in theEnding Zone.


Understanding the Neutral Zone

• The Neutral Zone or exploration stage is the timebetween the current and the desired state. Staff will beattempting to orient themselves to the newrequirements and behaviours.

• This can have a negative impact on activities. Becausethings can be chaotic at this stage, staff may questionthe status quo or the accepted way of doing things.


Understanding New Beginnings• The New Beginnings stage of the Transition Curve is

that time when people are ready to commit to the newdirection and the change.

• They feel secure in the new organisation and are readyto function as a significant contributor. This typicallyoccurs as the initiative starts to achieve some of itsdesired goals.


Change! Change!! Change!!! Given the macro drivers for change, organisational

change is not an option but a necessity.

Drivers for change are affecting not only the way wework, but the way we live.

Work place innovation has a direct impact onproductivity. Structured change can adversely affectwork place innovation.


The pace of change in an economy, in society in general, inorganisation and institutions, and in individual attitudesand behaviour flows at different speeds.

Given that change is likely to be ongoing, knowing how tochange (and learn) will become a key survival skill,marketing out the ‘strong’ from the ‘weak’ at a societal,organisational and individual level.

Success is no longer determined by the company alone, butalso by its stakeholders - internal and external.

Short-term success needs to be achieved in the contest oflonger-term sustainability.


Documents

Change Management Intro Ppt