Change Management Lecture 1

8/7/2019 Change Management Lecture 1

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Organisational Change

Youll neverget me up onone of thosebutterfly

things!


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CORPORATE LESSON 1A crow was sitting on a tree, doing nothing all day.

A small rabbit saw the crow, and asked him,

"Can I also sit like you and do nothing all day

long?The crow answered: "Sure, why not.

So, the rabbit sat on the ground below the

crow, and rested.

All of a sudden, a fox appeared,

Jumped on the rabbit... and ate it.


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Moral of the story is.

To be sitting and doing nothing

you must be sitting very, very high up.


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"I would love to be able to get to the top of that tree," sighed the

turkey, "but I haven't got the energy.

CORPORATE LESSON 2A turkey was chatting with a bull.

"Well, why don't you nibble on some of my droppings?"replied

the bull. They're packed with nutrients."The turkey pecked at a lump of dung and found that it actually

gave him enough strength to reach the first branch of the tree.

The next day, after eating more dung, he reached the second branch.

Finally after a fortnight, there he was proudly perched at the top of the

treeSoon he was spotted by a farmer

Who promptly shot the turkey out of the tree.


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CORPORATE LESSON 2

Moral of the story:

Bullshit might get you to the top,

but it won't keep you there.


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CORPORATE LESSON 3

A little bird was flying south for the winter.

It was so cold, the bird froze and fell to the ground in a large field.

While it was lying there, acow came by

and dropped some dung

on it.

As the frozen bird lay there in the pile of cow dung, it began torealise how warm it was. The dung was actually thawing him out!

He lay there all warm and happy, and soon began to sing for joy.

A passing cat heard the bird singing and came to investigate.

Following the sound, the cat discovered the bird under the pile of cow

dung, and promptly dug him out and ate him!

PURR....


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CORPORATE LESSON 3

The morals of this story are:

1) Not everyone who drops shit on

you is your enemy.

2) Not everyone who gets you out of

shit is your friend.3) And when you're in deep shit,

keep your mouth shut


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Introduction

Change is the singly most important element

of successful management

To remain effective, organizations (andindividuals in them) have to adopt a

positive attitude to change

Ignoring or trivialising change can be costly


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No organization is

immune to change

To cope with new

external andinternal forces,

leaders have

sought to

fundamentally alter

the way their

organizations work

Change


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An alteration of an organizationsenvironment, structure, culture,technology, or people

A constant force

An organizational reality

An opportunity or a threat

Change agent A person who initiates and assumes the

responsibility for managing a change in anorganization

What is Organizational

Change?


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Organizational Change ManagementOrganizational Change Management

What is Organizational Change?

It is generally considered to be an organization-widechange, as opposed to smaller changes such as

adding a new person.

It includes the management of changes to theorganizational culture, business processes,physical environment, job design / responsibilities,staff skills / knowledge and policies / procedures.

When the change is fundamental and radical, onemight call it organizational transformation


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ChangeTo Make Different in Some Particular: ALTER

To Make Radically Different: TRANSFORM

To Give a Different Position, Course or Direction

-- Websters Collegiate Dictionary


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It can be very difficult to introduce change to an

organization. Failure to recognize and deal

with this fact has been the cause of many

project failures.

Folger & Skarlicki (1999) - "organizational change

can generate skepticism and resistance in

employees, making it sometimes difficult orimpossible to implement organizational

improvements" (p. 25).


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Using Change Agents:

Qualities of change agentsRealistic

Effective

Communication

Attentivelistener

Ideas

person

Good

collaborator

Restless

Eager for

improvement


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UpperManagement undertakes these projects because

they believe that there is sufficient gain to the

organization to warrant the expense.

And UpperManagement usually moves forward on the

basis that since it is in everyones best interest, those

individuals affected will of course endorse the project

and work to make it a success.

And all too often UpperManagement receives a rude

shock.


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As the Management Team, you must be aware

of the extent to which your projects may

introduce organizational change, and then

you must deal with this issue.

Coetsee (1999) states "management's ability to

achieve maximum benefits from change depends

in part on how effectively they create and maintaina climate that minimizes resistant behavior and

encourages acceptance and support" (p. 205).


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What provokes Organizational Change?Examples:

Management adopts a strategy to accomplish someoverall goal

May be provoked by some major outside drivingforce, e.g., substantial cuts in funding

An Organization may wish to evolve to a differentlevel in their life cycle, e.g. from traditional banking

to e-bankingTransition to a new chief executive can provoke

organization-wide change when his or her newand unique personality pervades the entireorganization


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Forms of Organisational Change

Mergers

Acquisitions

TakeoversOrganisational redesign and restructuring

Organisational transformation

Change of organisational cultureChange of organisational processes


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Change Readiness Assessment

WhatWhatWhatWhat

HowHowHowHow

BenefitBenefitBenefitBenefit

Value ofValue of

ApproachApproach

Value ofValue of

ApproachApproach

Identifies key factors which may help or hinder the change process an

is used to determine readiness to change. Action plans can thenbe developed to leverage strengths and minimise potential risks.

Identifies key factors which may help or hinder the change process an

is used to determine readiness to change. Action plans can thenbe developed to leverage strengths and minimise potential risks.

A series of one day workshops delivered to a select number of staff

representing identified stakeholder groups. Surveys and other tools

will be used to identify potential risks to implementation.

A series of one day workshops delivered to a select number of staff

representing identified stakeholder groups. Surveys and other tools

will be used to identify potential risks to implementation.

Action plans to address implementation issues

Greater ownership and awareness of Upgrade Project

Action plans to address implementation issues


Structured approach to identify potential implementation risks

Objective methods to determine potential implementation risksInvolvement of stakeholder groups throughout

Comparison of perceived risks across management levels and locati

Comparison of perceived risks over time

Structured approach to identify potential implementation risks

Objective methods to determine potential implementation risksInvolvement of stakeholder groups throughout

Comparison of perceived risks across management levels and locati

Comparison of perceived risks over time


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Communications Strategy and Plan

Value ofValue of

ApproachApproach

Value ofValue of

ApproachApproach

Determines the strategies, goals, themes, messages and vehicles used

communicate with key stakeholders (internal and external) throughou

the duration of the Upgrade Project.

Determines the strategies, goals, themes, messages and vehicles used

communicate with key stakeholders (internal and external) throughou

the duration of the Upgrade Project.

Working directly with Project Teams and Task Force staff, drawing

on the results of the Change Readiness Assessment and using Consult

methods to identify most appropriate communications methods.

Working directly with Project Teams and Task Force staff, drawing

on the results of the Change Readiness Assessment and using Consult

methods to identify most appropriate communications methods.

Accelerates contact, awareness, understanding and acceptance of the

intended changes

Reduces stakeholder resistance resulting in positive action

(thinking and behaviour)


Accelerates contact, awareness, understanding and acceptance of the

intended changes

Reduces stakeholder resistance resulting in positive action

(thinking and behaviour)


Structured approach to develop communication plans

Greater re-use of data collected during Change Readiness Assessme

Structured approach to develop communication plans

Greater re-use of data collected during Change Readiness Assessme

WhatWhatWhatWhat

HowHowHowHow



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Change Facilitator Network

Value ofValue ofApproachApproachValue ofValue of

ApproachApproach

Establishing an internal network of change champions to build aware

and understanding of change management principles.

Establishing an internal network of change champions to build aware

and understanding of change management principles.

Network is established initially by involving client staff in a one day

workshop to explore business change principles and concepts within

the context of the Upgrade Project.

Network is established initially by involving client staff in a one day

workshop to explore business change principles and concepts within

the context of the Upgrade Project.

Establishing a change infrastructure of staff who will promote theUpgrade Project

Generating greater communication across the network

Involvement of those most affected by the changes

Greater understanding of change and their important role in the proc

Establishing a change infrastructure of staff who will promote theUpgrade Project

Generating greater communication across the network

Involvement of those most affected by the changes

Greater understanding of change and their important role in the proc

Structured approach to managing changeOpportunities for testing management potential

Build on Change Readiness Assessment results

Develop a link to customer facing staff in the branches

Opportunities for breaking down barriers between branches

Structured approach to managing changeOpportunities for testing management potential

Build on Change Readiness Assessment results

Develop a link to customer facing staff in the branches

Opportunities for breaking down barriers between branches

WhatWhatWhatWhat

HowHowHowHow



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Transition Management Plan

Value ofValue ofApproachApproachValue ofValue of

ApproachApproach

Incorporates data gathered during the Change Readiness Assessment,

Change Facilitator workshops and communication planning stages to

produce a comprehensive roadmap addressing the human aspects of

change for the duration of the project. It will also provide other peopl

related issues which are beyond the scope of Phase 1.

Incorporates data gathered during the Change Readiness Assessment,

Change Facilitator workshops and communication planning stages to

produce a comprehensive roadmap addressing the human aspects of

change for the duration of the project. It will also provide other peopl

related issues which are beyond the scope of Phase 1.

Working with project managers and the Task Force to thread together

relevant information.

Working with project managers and the Task Force to thread together

relevant information.

Provide further issues to consider to help align business needs with

desired behaviour

Provide further issues to consider to help align business needs with

desired behaviour

Structured approach to managing changeAssistance with the identification of HR issues using Consultants

Organisational Alignment methodology

Structured approach to managing changeAssistance with the identification of HR issues using Consultants

Organisational Alignment methodology

WhatWhatWhatWhat

HowHowHowHow



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The Drivers for Change

Customer expectations

Technology

Competition

Legislation

Economy

Organisational Realignment

Performance ManagementWhere are you now?Where do you want to be?


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Resistance to Change:The relevance of Conflict, Power and Politics

Conflict, Power and Politics indisputable affectssocial and organisational life

Challenge is to ensure that each is used in positive

ways to enhance change an reduce resistance Resistance to change found at three levels:

Individual (Uncertainty and insecurity, selectiveperception and retention, Habit)

Group (Group norms, Group Cohesiveness, Groupthink)

Organisational (Power, Politics and Conflict, Functionaldifferentiation, Structure and Culture)


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Dealing with Change


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1. Create a Sense ofUrgency

2. Decide What toChange

3. Create a GuidingCoalition and MobilizeCommitment

4. Develop and

Communicate a SharedVision

5. Empower Employeesto Make the Change

6. Generate Short-Term

Wins

7. Consolidate Gainsand Produce More

Change

8. Anchor the New Ways

of Doing Things in the

Company Culture

9. Monitor Progress and

Adjust the Vision as

Required

A Nine-step Process For

Leading Organizational Change


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Resistance To Change

Organizations and individuals resistchange

In one sense this is positive since itprovides a degree of stability andpredictability to bahaviour

Without resistance organizational

behaviour will lead to chaotic randomness


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Resistance To Change

Is a source of functional conflict

Can stimulate healthy debate

Hinders adaptation and progress


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Resistance to Change : Individuals

Sources of resistance Habit; Security;

Economic Factors, Fear of the Unknown

Habit, i.e., programmed responses helpsus cope with complexities of life; when

confronted with change this tendency to

respond in our accustomed ways becomes

a source of resistance


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Resistance to Change:

Individuals

Security People with a high need for security

are likely to resist change because it threatens

their sense of insecurity

Economic Factors Concern that changes willresult in lower income; Fear that they cannot

perform new tasks or routines especially when

pay is closely tied to productivity


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Organizations

Organizations are conservative

actively resist change change through

structural and group inertia and threats to

member expertise, power relationships

and established resource allocations


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Organizations

Organizations have built-in mechanisms to

produce stability systematically select certain

people and certain people out, people are hired

into an organization are chosen for for and thenshaped and directed to behave in certain ways

When the organization is confronted with change

this structural inertia acts as a counter balance

to sustain stability


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Organizations

Even if individuals want to change theirbehaviour, group norms act as a constraint

Any redistribution of decision-making as the

result of change threatens the long-establishedpower relationships

Groups in the organization that control sizeableresources often see change as a threat, those

that benefit from current al.location of resourcesfeel threatened by changes that may effectfuture allocations


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Resistance to Change

No matter how noble the cause, most

organisational change efforts are resisted

by employees, managers, clients, and

other stakeholders. Resistance to change

may take the form of passive,

noncompliance, complaints, absenteeism,

turnover, or collective action e.g. strickeaction.


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Resistance to Change

R

E

S

I

S

T

A

N

C

EIncongruent systems

Incongruent team dynamics

Fear of the unknown

Saving face

Direct cost

Breaking routines

Restraining Forces

Customer expectations

Technology

Competition

Legislation

Organisational Realignment

Driving Forces


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Managing organisation change

Force Field Analysis

Driving

Force

Restraining

Force

RestrainingForce

Driving

Force

Restraining

Force

Driving

Force


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Unfreezing

Shaking up

Disconfirmation of old ways of doing things

Change agents need to unfreeze the statusquo by creating a disequilibrium between

the driving and restraining forces.


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Moving

Making the actual changes to move to the newstate of existence.

Includes the development of new strategies,structures, systems & responsibilities and theshedding of old ones.

Change agents needs to increase the driving forceand focus on reducing the restraining forces.Create an urgency for change and stakeholders

must be motivated to accept change. Stakeholders must accept that the status quo is lessacceptable to transform the organisation intounknown future state.


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Refreezing

Stabilizing, institutionalising the changes.

Making sure the organisation doesn't gobackwards to the old state.

Reinforcement of the changes throughsymbols, such as changed logos, dress,building design, structures.

It occurs when organisations systems andteams dynamics are reconfigured so thatthey support the desired change.


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How to undermine resistance

Provide rewards for accepting change

Communicating reasons for why change

is necessary Including people who will be effected by

the change to participate in change

decisions

M i Ch R i


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Managing Change Requires

Looking at All the Dimensions

Past History in Putting Change in Place

Degree of Sponsorship

Authenticity of SponsorshipOrganizational and Individual Current Stress

Who Will Be Impacted by the Change

Cultural Fit of the ChangeAddressing Whats in It forMe

Communication of the Change and Its Progress

Skill Sets of the Change Agents


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Change = Motivation X Vision X

Next StepsMotivation Some Good Reason to Give

up the Status Quo

Vision A Clear and Practical Vision of theDesired Future State

Next Steps an Understanding of the Next

Steps Required to Progress Toward theVision

If One Is Missing, Little Change Will Take

Place


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YOU must be the change you wish to see

in the world

Mahatma Gandhi

Documents

Change Management Lecture 1