Change Management

Session 10

Change Management“People don't resist change. They resist being changed”

Peter Senge

Leading ChangeLeading Change

“The rate of change is not going to slow down anytime soon. If anything, competition In most industries will probably speed up even more in the next few decades.”

Leading the Change ProcessLeading the Change Process

PerformanceConsultants Make

recommend-ations

Translate job requirements into competencies

Apply Science of Learning & Human Performance

Generate solution options and metrics

Conduct effectiveness & cost analysis

(K, S, A, T)

1. Establishing a Sense of Urgency2. Creating a Guiding Coalition3. Developing a Vision & Strategy4. Communicating the Change Vision5. Empowering Broad-Based Action6. Generating Short-Term Wins7. Consolidating Gains & Producing More Change8. Anchoring New Approaches in the Culture

Source: Leading Change, John P. Kotter, 1998

The 8 Stage Process of Creating Major Change

Creating Major ChangeCreating Major Change

Creating Major ChangeCreating Major ChangeEstablishing a Sense of Urgency

1 Examining the market & competitive realities

2 Identifying & discussing crisis, potential crisis, major opportunities

Concepts: Create a crisis: highlight major weaknesses, allow errors to

compound Eliminate obvious examples of excess (company facilities, services,etc Set goals & targets unrealistically high Distribute company-wide performance data highlighting deficiencies to

more employees Force interaction with unsatisfied “customers, suppliers, shareholders.” Use consultants to force more relevant & honest appraisals Bombard people with information on future opportunities, rewards for

capitalize on those opportunities, & potential “lost opportunities.”

Source: Leading Change, John P. Kotter, 1998

Creating a Guiding Coalition1Putting together a group with enough power to lead the change2Getting the group to work together like a team

4 Key Characteristics of Guiding Coalition:• Positional Power: Are enough key players on board, especially the

main line managers, so those left out can not easily block progress?• Expertise: Are the various points of view, relevant to the tasks at hand,

adequately represented so that informed, intelligent decisions can be made?

• Credibility: Does the group have enough people, with good reputations, that its pronouncements will be taken serious by the other employees?

• Leadership: Does the group include enough proven leaders to be able to drive the change process?

Creating Major ChangeCreating Major Change

Source: Leading Change, John P. Kotter, 1998

Developing a Vision & Strategy1Creating a vision to help direct the change effort2 Developing strategies for achieving that vision

Characteristics of an Effective Vision• Imaginable: Conveys a picture of what the future will look like• Desirable: Appeals to the long-term interests of employees,

customers, stakeholders.• Feasible: Comprises realistic, attainable goals• Focused: Is clear enough to provide guidance in decision making• Flexible: Is it general enough to allow individual initiative &

alternative responses in light of changing condition.• Communicable: Is easy to communicate, can be successfully

explained within 5 minutes.

Creating Major ChangeCreating Major Change

Source: Leading Change, John P. Kotter, 1998

Communicating the Change Vision1Using every vehicle possible to constantly communicate the new vision and strategies2Having the guiding coalition role model the behavior expected of employees

Key elements in communicating the vision:

• Simplicity. All jargon & techno-babble must be eliminated.• Metaphor, Analogy & Example. A verbal picture is worth a thousand words.• Multiple Forums. Big meetings & small, memos, newspapers, formal and

informal meetings….• Repetition. Ideas sink in only after they have been heard many times• Leadership by Example. Behavior by important people that is inconsistent

with the vision overwhelms other forms of communication.• Explanation of Seeming Inconsistency. Unaddressed inconsistencies

undermine the credibility of all communications.• Give & Take. Two way communication is always more powerful and one-way

communication.

Creating Major ChangeCreating Major Change

Source: Leading Change, John P. Kotter, 1998

Empowering Broad-Based Action1 Getting rid of obstacles2 Changing systems or structures that undermine the change vision3 Encouraging risk taking & non-traditional ideas, activities & actions

Empowering People to Effect Change• Communicate a sensible vision to employees. • Make sure structures are compatible with the vision.• Provide the training employees need.• Align information and personnel systems to the vision.• Confront supervisors who undercut needed change.

Creating Major ChangeCreating Major Change

Source: Leading Change, John P. Kotter, 1998

Generating Short-Term Wins1Planning for visible improvements in performance, or “wins”2Creating those wins3Visibly recognizing & rewarding people who made the win possible

1. Provides evidence that sacrifices are worth it.2. Reward change agents.3. Helps fine-tune vision & strategies.4. Undermine cynics and self-serving registers.5. Keep bosses on board.6. Build Momentum.

Creating Major ChangeCreating Major Change

Source: Leading Change, John P. Kotter, 1998

Consolidating Gains & Producing More Change1 Using increased credibility to change all systems, structures & policies that 2 don’t fit together and don’t fit the transformation strategy3 Hiring, promoting, & developing people who can implement the change vision4 Reinvigorating the process with new projects, themes & change agents

• More change, not less. The guiding coalition uses the credibility afforded by the short-term wins to tackle additional and bigger change projects

• More Help. Additional people are brought in, promoted and developed to help with all the changes

• Leadership from Senior Management. Senior people focus on maintaining clarity of shared purpose, keeping urgency levels up.

• People management & leadership from below. Lower ranks in the hierarchy provide both leadership & management for specific projects.

• Reduction of unnecessary interdependencies. To make change easier in both short/long-term, managers identify and eliminate unnecessary organizational interdependencies.

Note: Resistance is always waiting to reassert itself!

Creating Major ChangeCreating Major Change

Source: Leading Change, John P. Kotter, 1998

Anchoring New Approaches in the Culture1 Creating better performance through customer- & productivity oriented

behavior, more and better leadership, & more effective management2 Articulating the connections between new behavior & organizational success3 Developing means to ensure leadership development & succession

Concepts:• Culture changes come last, not first. Most alteration in norms & shared

values come at the end of the transformation process• Results matter. New approaches usually sink into a culture only after it is

very clear that they work and are superior to the old methods.• Requires a lot of talk. Without verbal instruction and support, people are

reluctant to admit the validity of new practices.• May involve turnover. Sometime the only way to change a culture is to

change key people.• Makes decision on succession crucial. If promotion processes are not

changed to be compatible with the new practices, the old culture will reassert itself

Creating Major ChangeCreating Major Change

Source: Leading Change, John P. Kotter, 1998

Change Management

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An effective Change Management program maximizes performance at implementation by An effective Change Management program maximizes performance at implementation by minimizing disruption and accelerating the acceptance of change.minimizing disruption and accelerating the acceptance of change.

Typical level of performance and motivation in changing environments

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Transition Transition Design Design Implement Implement Improve Level of Acceptance

Improve Level of Acceptance

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Acceptance