Managing Change

Joyce Osland

San Jose State University

What do we know about change?

The Challenge

“How are you supposed to change the tires on a car when it’s going 60 miles per hour?”

Epitaph of a change agent

Nature of Organizational Change

Incremental or transformativeMeans reexamining basic assumptionsInvolves a mourning period for old waysNew behavior leads to new attitudesProcess of unfreezing, moving, refreezingToo much change is disturbingProcess not an eventUnpredictableResults in unanticipated consequences

TYPES OF CHANGE

INCREMENTAL

Linear

Continuous

Targeted at fixing or

Modifying problems or procedures

TRANSFORMATIVERadicalDiscontinuousMultidimensionalMultilevelModifies fundamental

structures, systems, orientation, strategies

Requirements for Organizational Change

Top management supportCritical massTrustNew psychological contractsNew behaviorsOrganizational learning Institutionalization of innovations

Change is a process, not an edict.

TechnicalSolution

Process

Determining the Need for Change

Steps in the Change Process

Establishing an Implementation

Plan

Analyzing Potential Resistance and Obtaining

Participation

Creating a Tentative Plan

Developing a Shared Vision

Forming a Guiding Coalition

Evaluating the Change

Implementing the Change

Communicating the Change

Conditions Favorable for Change

C=(D X S X P) > XWhere...C = change

D = dissatisfaction with status quo

S = an identifiable and desired end state

P = practical plan for achieving the desired end

state

X = the cost of change to the organization

Leader’s Role in the Change Process

Envisioning

Energizing

Enabling

The Leader’s Critical Path

1. Mobilize commitment to change through joint diagnosis of business problems.

2. Develop a shared vision of how to organize and manage for competitiveness.

3. Foster consensus for the new vision, competence to enact it, and cohesion to move it along.

The Leader’s Critical Path

4. Spread revitalization to all departments without pushing it from the top.

5. Institutionalize revitalization through formal policies, systems, and structures.

6. Monitor and adjust strategies in response to problems in the revitalization process.

Beer, Eisenstat, Spector

HOW LEADERS CHANGE CULTURE

PRIMARY MECHANISMS

What they attend toHow they react to crisisWhat they role modelHow they allocate rewardsThe criteria they use for personnel decisions

Resistance to Change

A natural reaction to changePart of the process of adaptationEnsures that plans for change and their

ultimate consequences are carefully thought through.

Resistance to Change

Something else to manage:Understand the sourceListen carefully to concernsRefrain from seeing resisters as

adversariesUse the appropriate tactic in response

Sources of Resistance to Change

Inadequate change goalInadequate processPersonal resistancePolitical resistanceSystemic resistance

Yukl’s Sources of ResistanceLack of TrustBelief that change is unnecessaryBelief that change is not feasibleEconomic threatsRelative high costFear of personal failureLoss of status and powerThreat to values and idealsResentment of interference

When Change is Imposed

STAGES IN THE REACTION PATTERNDenial

Anger

Mourning

Adaptation

THE 7S MODEL

SharedValues

SystemsStructure

Style

Skills Staff

Strategy

FIT

Tactics for Dealing with Resistance

EmpathyEducation and communicationParticipation and involvementFacilitation and supportCo-optationNegotiation and agreementManipulation Coercion

Commitment

Compliance

Analyzing Resistance

What kind of resistance would you expect to occur with the change you have in mind?

What people would you need to get involved in order to reduce potential sources of resistance?

Which tactic would work best in your situation and why?

Implementation Guidelines for Political and Organizational Actions

Determine who can oppose or facilitate change

Build a broad coalition to support the change

Fill key positions with competent change agents

Use task forces to guide implementation

…Implementation Guidelines for Political and Organizational Actions

Make dramatic, symbolic changes that affect the work

If necessary, implement change on a small scale initially

Change relevant aspects of the structure

Monitor the progress of change

Implementation Guidelines for People-Oriented Actions

Create a sense of urgency about the need for change

Prepare people to adjust to changeHelp people deal with the pain of changeProvide opportunities for participationProvide opportunities for early successes

…Implementation Guidelines for People-Oriented Actions

Keep people informed on progressDemonstrate continued commitment to

the changeEmpower people to implement the changeDon’t insult the people responsible for

the status quoGive people time to make their peace with

the change

Rules of Thumb for Change Agents

Stay aliveStart where the system isNever work uphillInnovation requires a good idea, initiative and a few friendsLoad experiments for successLight many firesKeep an optimistic biasCapture the moment