EndingEnding Neutral ZoneNeutral Zone New BeginningNew Beginning

Change Model : Bridges Change Model : Bridges

W Bridges (1980)

Beckhard’s Transition ModelBeckhard’s Transition Model

Current State

Transition State

Future State

•Familiar

•Comfortable•Can becontrolled

•Roles areunderstood

•Letting go of the old

•Taking on the new

•Changeseverywhere

•Feelings of -- loss, depression, gain, exhilaration

•Unfamiliar, risky

•Unknown• Controls notunderstood

•New roles

Beckhard 1977, 1987

Lewin’s Change Process

Unfreeze(createthe rightenvironment)

Change(supportchangeto desiredstate)

Refreeze(reinforceto anchorthe change)

Kurt Lewin, 1943

Terminal Terminal DiagnosisDiagnosis

1. Denial1. Denial

2. Anger2. Anger

3. Bargaining3. Bargaining

4. Preparatory 4. Preparatory DepressionDepression

5. Acceptance5. Acceptance

Increased Increased selfself--reliancereliance

Health & Health & StabilityStability

Time

Change Model : Change Model : KublerKubler-- Ross Ross

Kubler-Ross, 1975

Time

Stage 4Acceptance of New Beginning

Stage 3Shock

Denial

Stage 1

AngerResistance

Stage 2

Change Curve- Stages people move through during transition

Ending

Acceptance of Ending

Kubler-Ross (1975)

1. Shock & Disbelief1. Shock & Disbelief

2. Resistance2. Resistance

4. Peaceful acceptance of 4. Peaceful acceptance of New RealityNew Reality

3. Acceptance of 3. Acceptance of Ending (grieving)Ending (grieving)

Change Model Three:Change Model Three:LongakerLongaker

C Longaker (1993)

�Ready & willing

�Encouragement, reinforcement.

�Confused

� Facts & information, planning.

�Withdrawn

�Personal contact and involvement in vision/strategy.

�Angry

�Needs to be heard/understood, then involved in vision/strategy.

Common change Reaction: Common change Reaction: What do they need?What do they need?

Managing Change Managing Change P

essi

mis

m

Time

UninformedOptimism

InformedPessimism

HopefulRealism

InformedPessimism

ChangeCompletion

Conner, 1992

EmotionalEmotional--Behavioral Response toBehavioral Response toRestructuringRestructuring--Merger or Change Efforts Merger or Change Efforts

Pes

sim

ism

Pre-Announcement Announcement Discovery Transition-Action Plan New Order

UninformedOptimism

InformedPessimism

HopefulRealism

InformedPessimism

ChangeCompletion

Stable-Secure Comfortable

Denial-Anger Sense of

Loss

Bargaining Negotiating

Resignation Stay or Leave

Acceptance Re-engage

Blind-Side Impact

InformedImpact

Conner, 1992

Patterns of Behavior and EmotionalPatterns of Behavior and EmotionalResponse to Downsizing and Transitions Response to Downsizing and Transitions

The Entrenched

The Learner

The Overwhelmed

The“BS er”

Center for Creative Leadership, 1994

HIGH

HIGHLOW

Environment for Change

Continuous LearningRisk Taking & Experimentation

Two highly-developed capabilities:

The ability to make the right decisions at theright time about what changes need to be initiated or responded to.

The ability to understand and orchestrate thehuman variables necessary to gain support & commitmentfrom those affected by change decisions

“Create an environment where trust and learning can occur”

Fit Model to Focus Change Effort

Information Sharing/Decision Making

Rewardand Recognition

Work

OrganizationalStructure

People Development

“ Change is about doing the right things, right”

Galbraith, 1982

The Fifth Discipline

Mental Models[key assumptions]

Team Learning[capacity to create results]

System Thinking[framework]

Shared Vision[destination/commitment]

Personal Mastery[knowledge, skills, abilities]

Senge, 1990

Six Steps to Leading Change....Six Steps to Leading Change....

�Mobalize Commitment to Change Through Joint Diagnosis of Business Problems

�Develop a Shared Vision of How to Organize &Manage for Competitiveness

�Foster Consensus for the New Vision, Competence to Enact it, and Cohesion to Move It Along

Six Steps to Leading Change....Six Steps to Leading Change....

�Spread Revitalization to All OrganizationsWithout Pushing It From the Top

�Institutionalize Revitalization Through Formal Policies, Systems, and Structures

�Monitor and Adjust Strategies in Response to Problems in the Revitalization Process

Changing a Culture

Recruitmento Attractiono Challenge

Membershipo Retiremento Removal

Selectiono Leadershipo Risk-Taking

Socializationo Communicateo Cooperate

The NewVision

Hero’s & HeroinesNew Myths & LegendsHope & Motivation

GoodStanding

AttitudeBehaviors

Competencies

Successful Stewardship

��StrategyStrategy

�Define the Strategic Intent of the Business� What business are you in?� What business do you want to be in?

�Help People See Themselves in the Future� Our Vision is…...� In the Winner’s Circle of Excellence

� Define the Mission and Commission Peopleto accept the Challenge of Change

Successful Stewardship

��StructureStructure��Establish a guiding coalition to provide Establish a guiding coalition to provide

continuity of leadershipcontinuity of leadership

��Establish Transformation Team[s] that turnEstablish Transformation Team[s] that turnthe organization vision into realitythe organization vision into reality

��Establish organizational anchors Establish organizational anchors

Change FormulaChange Formula

Change f (A + B + D)> $Change f (A + B + D)> $

•A = Dissatisfaction with the status quo

•B = Vision of an ideal future state

•D = Process for change, first steps

•$ = Perceived cost of changing

Alexander & Scott (1994)

Speed of ChangeSpeed of ChangePeople Adapt to Change at Three Speeds

Fastest

Slowest

1. Physical

2. Intellectual

3. Emotional

The time it takes for a person to COMPLY with the behavior requirements of the change

The time it takes for a person to COMPREHEND why a change has taken place or is necessary

The time it takes for a person to FEEL COMFORTABLE with the new desired state

Alexander & Scott (1994)

Most Change Efforts Have Failed to Achieve their Goals for Several Reasons, Including:

Resistanceto Change

Limitations ofExisting Systems

Lack of Executive Consensus

UnrealisticExpectations

Lack of SeniorExecutive Champion

Project CharterToo Narrow

IS Staff InvolvedToo Late

InadequateTeam Skills

Lack of Cross-Functional Project Team

% of respondents10 20 30 40 50 60

Note: Total exceeds 100% due to multiple answers

DATA: Deloitte & Touche 1993 Survey of 400 U.S. and Canadian CIO’s

Source: Information Week, June 20, 1994

Obstacles to Organizational Change Success

Axiom• There will always be resistance• to change

• Resistance is a natural and inevitable reaction to the disruptionof expectations

8 Major Risk Factors in Change Projects

• Low Relative Cost of the Status Quo• Vision Clarity• Sponsor Commitment• Change Agent Skills• Target Response• Culture/Organizational Alignment• Communications• Internal/External Events• Transition Management Plan (Overall Process)

Generic Types of Change

Fine Tuning• Incremental change• Individual behavior based

on conforming to rules• Decision making and control

of change is decentralized

Building• Large scale extensions• Organization focused within• boundaries/functions• Decision making and control of• change is within building • function

Transforming• Fundamental, planned change

to existing way of operating• Large scale, broad impact of

change• Individual behavior based on

personal change• Decision making and control of

change is centralized

Crisis• Rapid, sometimes unplanned,

large scale change• Rules are suspended• Decision making and control is

haphazard

In essence, Change Management is based on 2 main concepts:

That human performance is at the core of business performance; Therefore, change management looks at building the organizational and human performance in the organizations

That it’s possible to optimize an organization’s revenue and profit delivery during change. Therefore change management determine ways to manage the change process effectively

to ensure this occurs

— Stages of Large Scale Change —

New Level

Old Level

Change Over Time

Productivity

Downturn

Upturn

Effective ChangeManagement

Is Change Management Important?

Consider what Michael Hammer, co-author of Reengineering the Corporation,

said about people issues:

“I don’t regret saying anything (in the first book); it’s more what I left out.

In particular, the human side is much harder than the technology side

and harder than the process side.It’s the overwhelming issue.”

Impact AnalysisChange is Multi-Dimensional

u Organization Culture

u Organizational Structure

u Business Processes

u Job Design/Responsibilities

u Skill/Knowledge Requirements

u Decision Processes

u Measurements/Incentives

u Communication Processes

u Operating Policies

u Human Resource Management

u Technology Interfaces

u Training ProgramsPeople Strategy Technology Processes Systems