1

CHANGE MANAGEMENT

Prof. Datuk Dr. Halimaton Hamdan

Vice Chancellor

University Malaysia of Computer Science & Engineering

(UniMy)

hali@unimy.edu.my; www.unimy.edu.my

Step 7&8) Even with this success, the Atlanta terminal isn’t content

to let up. As they continue to move through the 8 Step process,

they hope to make the change permanent by anchoring these new

changes into the culture. The Iceberg Group continues to meet,

looking for other ways in which they can help the company improve

its operations, and hopefully, spread the Iceberg philosophy to other

divisions of the company

2

CHANGE

"Change is the essence of life. Be willing to surrender what you are, for what you could become."

3

• A strategy to accomplish some overall goal

• May be provoked by some major outside driving force, e.g., substantial cuts in

funding

• An Organization may wish to evolve to a different level in their life cycle, e.g.

from traditional government to e-government

• Transition to a new leadership can provoke organization-wide change when his

or her new and unique personality pervades the entire organization

What is Organizational Change?

◦ It is generally considered to be an organization-wide change, as opposed to smaller changes such as adding a new person

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

◦ When the change is fundamental and

radical, one might call it organizational

transformation

4

5

Roles: The Change PlayersRoles: The Change PlayersRoles: The Change PlayersRoles: The Change Players

Sponsors: Senior management leaders - the driving force of

change - must walk the walk.

Advocates: Allies of leaders, deploy the vision - communicate -

involve - sell - MOTIVATE

Agents: Influence sponsors’ commitment, target resistance,

measure readiness, assess existing people/structures

Targets: Everyone in organization - develop, train, reinforce,

support

6

Some Definitions

Change Agent:◦ People who act as catalysts for change

◦ Someone who directly or indirectly causes change

Change Leader:◦ Ability to energize groups who will be implementing change

projects that they may or may not have bought into

◦ A leader who creates a vision to guide people, through inspiration and commitment

◦ A leader who initiates and manages the change process, and energizes it on an ongoing basis, removing roadblocks and/or accelerating its pace

LEADERSHIP

Is action, not position

7

Change LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange LeadershipChange Leadership

Energizes and alerts groups to the need for specific changes in the way things are done. It involves taking responsibility to champion the change effort through building and maintaining support and commitment.

What Effective Change Leaders What Effective Change Leaders What Effective Change Leaders What Effective Change Leaders DoDoDoDo

Embrace change when it’s needed

Develop a vision for change

Communicate effectively

Shake things up by challenging status quo and encouraging others to do the

same

Stay Actively Involved by walking the walk and being visible about it.

Direct, Review Implementation of change - continued participation - never

done attitude. Be in position to notice and coach.

8

Types of Change

Type I – That which is done to us◦ Very few people like this type of change!

◦ It violates our sense of independence, freedom and control of our own destiny

◦ Most likely to resist within the context of organizational change

Type II – That which we do to ourselves◦ This type of change is very different

◦ We're in control. We're deciding for ourselves that doing something different is necessary

◦ Because it's our decision, we don't "resist" our decision to change

Type III – That which we do to others◦ Change from the other side of the fence

◦ If we're inflicting Type III Change, then it’s perceived by the receiver as Type I Change

9

Dimensions of Change

20% Rational

• What should the

new policy be ?

• Is the new

approach really

better?

40% Political40% Political40% Political40% Political

• Is there a risk for

my position ?

• What will my

power be

tomorrow?

• Case for change• Structure & Ratios • Roles• Measures• Sizing• Skills & Knowledge

• How does power shift?• How big is my budget?• How will my customers

react?

40% Emotional

• Is the effort worth it ?

• Am I going to be

successful ?

• How will I look in the

future ?

• How will this affect me?• Will I have a job?• How will my career develop?

What to expect from changeWhat to expect from changeWhat to expect from changeWhat to expect from change

� Sense of loss, confusion.

� Mistrust and a “me” focus.

� Fear of letting go of that which led to success in the past.

� People hold onto & value the past.

� High uncertainty, low stability, high emotional stress

� Perceived high levels of inconsistency.

� High energy — often undirected.

� Control becomes a major issue.

� Conflict increases — especially between groups.

10

Individual prerequisites for change to occurIndividual prerequisites for change to occurIndividual prerequisites for change to occurIndividual prerequisites for change to occur

Thinking & understanding

Emotional/ Motivational

Behavioral

Head Heart

Hands

Why should I Why should I

change?change?What’s in it for What’s in it for

me?me?

What do I do differently?What do I do differently?

Change ManagementChange ManagementChange ManagementChange Management

Effective Change

Equals

Altering

Mind-set

Harnessing

Motivation

Shaping

Behavior

The Effective Management of Change Involves An

Integrated Approach In Each Of These Three Arenas

11

1. Learn it thoroughly yourself.

2. Build relationships.

3. Explain the purpose of change. Help them understand & teach concept.

4. Articulate the benefits.

5. Link daily activities to their higher purpose & benefits.

6. Repetition: Provide frequent & consistent communication about change & what’s needed.

7. Paint a picture of the successful future using best practices.

Working with MindWorking with Mind--SetSet

� Model desired behaviors & attitudes.

� Clearly define desired behaviors & behaviors that need to change.

� Give feedback frequently to reinforce changed behavior & correct wrong behavior.

� Coach & teach desired behavior.

� Identify training needs & communicate upwards.

� Create goals to work toward: a vision of success.

� Help people create specific, concrete behavior-change plans as needed.

� Communicate in multiple forms.

Working with BehaviorsWorking with Behaviors

12

Strategy/change implementationStrategy/change implementationStrategy/change implementationStrategy/change implementation

“Coming to Grips with the Problem”

1.

Arenas of Change

Stages of Change Management

2. “Workingthrough theChange”

3. “Attaining andSustainingImprovement”

Changing

Behavior and

Developing

Competency

and Capability

Behavior

(Capability)

Mind-set

(Thinking/

Understanding)

Breaking the

Conventional

Mind-set and

Generating a

Picture of the

Future

Dealing with

Reactions to

Loss and

Creating the

Will to

Succeed

Motivation

(Emotional/

Intuitive Dynamics)

The technology of leading sustainable changeThe technology of leading sustainable changeThe technology of leading sustainable changeThe technology of leading sustainable change

Mind-set

(Thinking/

Understanding)

Stage One:

Arenas of Change

Stages of Change Management

Motivation

(Emotional/

Intuitive Dynamics)

Behavior

(Capability)

� Gather data to convince

you/others that old way

no longer works.

� Confront myths,

assumptions, & beliefs

that prevent seeing

problem & changing.

� Increase dissatisfaction

with old ways.

� Increase confidence that

change is achievable.

� Outline costs of old way

& benefits of new way.

� Form team to gather

data.

� Have management talk

about data & need for

change.

� Assess individual

readiness to change.

� Identify specific

behaviors to change.

“Coming to Grips with the Problem”

13

Mind-set

(Thinking/

Understanding)

Stage Two:

Arenas of Change

Stages of Change Management

Motivation

(Emotional/

Intuitive Dynamics)

Behavior

(Capability)

“Workingthrough theChange”

� Create a vision of the

future & articulate the

new mind-set.

� Help people understand

both the big picture &

the details.

� Communicate the

purpose & benefits

broadly.

� Help people make the

link between solving

today’s issues & the new

plan.

� Hold “reality check”

meetings to work

through the threats,

losses, and resistance.

� Work through the

leaders’ emotion/

resistance first.

� Use individual gain/loss

analysis as as tool.

� Discuss how to manage

stress. Be supportive of

one another.

� Develop a new profile

of leadership success.

� Evaluate the top levels

of management in

stores.

� Involve employees in

building change plans.

� Reward successes;

expect & learn from

mistakes.

� Drive individual

behavior change.

The technology of leading sustainable changeThe technology of leading sustainable changeThe technology of leading sustainable changeThe technology of leading sustainable change

Mind-set

(Thinking/

Understanding)

Arenas of Change

Stages of Change Management

Motivation

(Emotional/

Intuitive Dynamics)

Behavior

(Capability)

“Attaining & Sustaining Improvement”

� Continually update

vision of desired future

& teamwork.

� Create forum for

feedback & continuous

learning.

� Continue to articulate

why’s & benefits.

� Celebrate & reward

successes.

� Deal with people who

will not change.

� Establish two-way

communication.

� Involve people for buy-

in.

� Continue to support

each other in managing

stress & change.

� Make sure systems &

rewards reinforce

desired behaviors.

� Train incoming people

in the new behaviors.

� Coach, give feedback,

& reinforce new

behavior.

� Deal with people who

cannot change.

Stage Three:

The technology of leading sustainable changeThe technology of leading sustainable changeThe technology of leading sustainable changeThe technology of leading sustainable change

14

Resistance

� Leaving comfortable policies, systems, processes, etc.

� Impact to credibility or reputation

� Concern about career or financial advancement

� Heightened / expanded performance requirements

� The need to “prove yourself” again in a new context

� Impact to job role

◦ NOTE: 20/60/20 rule

◦ 20% will get on board immediately

◦ 60% will be on the fence and look to the leaders for when and whether to follow –they will get on board eventually

◦ 20% will never get on board

AMBIGUITY ANXIETY RESISTANCE

15

Common resistance

� We tried that before.

� It costs too much.

� It’s too radical a change.

� There’s not enough help.

� We’ve never done it before.

� There’s not enough time.

� Let’s get back to reality.

� That’s not our problem.

� Why change it? It’s still working OK.

� I don’t like that idea.

� You’re right, but …

� You’re two years ahead of your time

� We’re not ready for that.

� Sounds OK but impractical.

� It might not work.

� Not that again!

� We did all right without it.

� It’s never been tried before.

� Let’s shelve it for the time being.

� What you are really saying is …

� Maybe that would work in your area but not in mine.

� It’s impossible.

� You’re not here to think.

� Can’t teach an old dog new tricks.

� Let’s wait until the next generation.

� It’s too early to think about it.

� It’s too late to start.

� We’ve always done it this way.

16

How To Deal With Resistance

Acknowledge:

◦ Tell the person your perception of resistance

◦ Be clear, specific, and honest

◦ Be empathetic

Investigate:

◦ Identify main source of resistance

◦ Encourage person to talk about feelings

◦ Listen

◦ Isolate and work individual issues

Reinforce:◦ Reinforce the positive aspects of change◦ Explain reasons for change◦ Use clear arguments◦ Gain acceptance

Don’t take resistance personally…!

Communication – Useful Tools

� Listen actively� Listen attentively� Listen with empathy

Listen

� Notice and comment on behavior� De-emphasize comments about the individual

Behavior vs. person

� Express the effect and the personal impact� Avoid phrases beginning with ““““You…””””““““I”””” Messages

� Ask ““““What is their contribution?””””� Ask ““““How they contribute to the situation?””””Contribution

Feelings and Thoughts � Ask ““““What do you think?””””� Ask ““““What do you feel?””””

Magic of Pretending � Use the concept ““““Let’s Suppose…””””� Help them imagine ideal outcomes

Options � Emphasize multiple options� Always consider three options

� Avoid and eliminate asking ““““Why?””””� Ask instead ““““What, Where, How, Who, Which, When?””””Open-Ended Questions

REMEMBER REMEMBER –– itit’’’’’’’’s better to over communicate…!s better to over communicate…!

17

Moving People Forward

EmotionEmotion

(Appeal)(Appeal)• Create passion for

the change

• Make it meaningful

DirectionDirection

(Achievable)(Achievable)• Provide the Path

• Describe the big

picture

• Describe the steps

InformationInformation

(Analysis)(Analysis)• Provide information

• Provide rationale

• Make it logical

ENGAGEMENT

18

Emotion

� Engage users early and often at all levels

� Motivation is key

� Make change manageable…� Take small steps so that the change is not overwhelming

� Make the change seem smaller than it is

� Generate hope

� Make change a matter of identity, not consequence…

� Who am I?

� What kind of situation is this?

� What would someone like me do in this situation?

Change has to be meaningful….and yet this is still not enough…!

Individuals and Temperament

Idealists Rationalists

Eat Sleep and Breathe• PersonalizationMotto• I’m here to helpAchilles Heel• Guilt

Eat Sleep and Breathe• ComplexityMotto• Why?Achilles Heel• Incompetence

Guardians Artisans

Eat Sleep and Breathe• ProceduresMotto• Don’t change what isn’t brokenAchilles Heel• Disorder/Disorganization

Eat Sleep and Breathe• NowMotto• If all else fails, read the directions!Achilles Heel• Routine/inactivity

NOTE: Introduction to Temperament, Hile Rutledge

19

Temperament and Change

Idealists – To whom? Rationalists – Why?

• Need to know who will be affected and how and why it’s meaningful

• Change must support their value systems• Must be for the good of the organization and

the people• Manage impact to organizational

atmosphere• Give them the big picture first

• Resist if it seems illogical, unreasonable or unfair

• Logical reasons for the change and a clear strategy and path forward

• Need to know their analytical abilities will be valued in the new order

• Sense of competence and task mastery• Need to see big picture, starting with

goal and why it’s important

Guardians – How? Artisans – What?

• Need to know rationale and benefits• Need to know what the plan is• Need the opportunity to preserve what

works well• Incremental change anchored by current

realities• Need a sense of belonging throughout the

change• Need to know step by step instructions of

how to do new things

• Resist if not been involved upfront• Desire to be where the action is• Need something to do right away• Flexibility and options designed into the

change• Hands on approach to training – on the

job

• “Let’s get on with it!”Impact of Working Environment on Efficiency and Effectiveness

Clarifier IdeatorDeveloper

Implementer

Diagnostic Thinking

Visionary Thinking

Evaluative Thinking

Tactical Thinking

What you CAN do: TalentWhat you WILL do: MotivationHOW you will do it : Intrinsic motivation

20

Information

� Provide information as early and regularly as possible

� Provide the logic behind the change

� Provide the business case

� Describe the bright spots…� Not just what problem the change will solve

� Also what the future will look like and why it will be better

� Provide detailed guidance…� Need a compelling vision, and yet the devil is in the details

� Provide clarity to manage ambiguity

Change has to make sense….and the fact that change is logical is not enough….!

21

Direction

• People need to see the vision, the goal, the big picture

• They will also default to taking the easiest path…• Tweak the environment to make changing easier, and the status quo

harder

• Re-shape the path to fit the needs of the change

• Rally people in support of the change

• Be specific…• Show people the right way to do the new thing – create new habits

• Give them details

• Reduce complexity and provide simplicity and clarity

Need all three for change to be successful!

Personal and Corporate Effectiveness: Morale

� The spirits of a person or group as exhibited by confidence, cheerfulness, discipline, and willingness to perform assigned tasks.

� Morale is more influenced from the top down than from the bottom up and a group phenomenon but an individual matter.

� There is no single factor that consistently explains good or poor morale.

� High morale in a group means that most of the people in a group have a good sense of “esprit” - liveliness of mind or spirit; sprightliness.

22

Causes of Low Morale

Poor communication, lack of empowerment, lack of

energizing staff, distrust of management, poor

interpersonal relations, inflexible working conditions,

less meaningful, productive, fulfilling relationship

between staff and management.

(Dye & Garman, 2006)

Low Morale Situations

� Closures, labor negotiations and contract disputes, high employee turnover

� Rates, changes in leadership, and unclear expectations and corporate direction

� Communication that lacks clarity, focus, important details, is too infrequent

� Lacks meaning, and does not allow staff to respond and discuss their concerns can contribute to morale problems in the workplace

44

23

- High morale drives an organization forward

- Low morale feeds the fires of employee

discontent, poor performance and absenteeism

- With low morale comes a high price tag

The Consequences of Not Addressing Morale Issues in the Workplace

Decreased productivity, increased rates of absenteeism and associated costs,

increased conflicts in the work environment, increased patient complaints and

dissatisfied consumers of care, and increased employee turnover rates and

costs associated with hiring and training replacement staff

The High Cost of Low Morale

Prerequisites for ChangePrerequisites for ChangePrerequisites for ChangePrerequisites for Change

Vision: Develop, articulate and communicate a shared vision of the

desired change

Need: A compelling need has been developed and is shared

Means: The practical means to achieve vision: planned, developed and

implemented

Rewards: Aligned to encourage appropriate behavior compatible with

vision and change

Feedback: Given Frequently

24

An Effective Change Sponsor Must HaveAn Effective Change Sponsor Must HaveAn Effective Change Sponsor Must HaveAn Effective Change Sponsor Must Have

Power: to legitimize change

Pain: Personal Stake

Vision: Total in-depth view

Public/Private Role: Commitment and ability to support change publicly/

meet privately with agents

Performance Management: Ability to reward/confront

Sacrifice: Pursue change despite personal price

25

26

27

28

ATTITUDE

"It is in the ability to open our eyes and minds where limitless wonders are discovered."

29

Change Management ApproachChange Management ApproachChange Management ApproachChange Management Approach

8-58

Kotter’s eight-step model is one of the best known:

1. Establish the need for urgency

2. Ensure there is a powerful change group to guide the change

3. Develop a vision

4. Communicate the vision

5. Empower the staff

6. Ensure there are short-term wins

7. Consolidate gains

8. Embed the change in the culture

30

Other NOther NOther NOther N----Step ModelsStep ModelsStep ModelsStep Models1. Ten commandements (Kanter, Stein and Jick 1992)

2. Ten Keys (Pendlebury, Grouard, and Meston 1998)

3. 12 Action Steps (Nadler 1998)

4. Transformation Trajectory (Taffinfer 1998)

5. Nine-Phase Change Process Model (Anderson & Anderson 2001)

6. Step-by-Step Change Model (Kirkpatrick 2001)

7. 12 Step Framework (Mento, Jones and Dirndorfer 2002)

8. RAND’s Six Steps (Light 2005)

9. Integrated Model (Leppitt 2006)

8-60

31

Stages of change managementStages of change managementStages of change managementStages of change management

“Coming to Grips with the Problem”“Coming to Grips with the Problem”

“Working through the Change”“Working through the Change”

“Attaining and Sustaining Improvement”“Attaining and Sustaining Improvement”

32

Make Change IncrementalMake Change Incremental

33

34

35

SummarySummarySummarySummary

� You have to be comfortable with the change before you can get others to change.

� People can’t (or don’t want to) change when they don’t understand.

� You can’t intervene until you understand the situation.

� Resistance is part of the change process.

� Address change at all three levels to be successful.

� Sustainable change occurs in steps.

Success

StartX

A journey of a thousand miles

occurs one step at a time.

In Conclusion…

Changes have impacts in many areas◦ For Individuals

◦ For the Customer

◦ For the Organization

Change causes ambiguity, uncertainty, anxiety and resistance

Communicate, Communicate, Communicate

Excellent Managers are also Change Leaders!!