ORGANIZATIONAL CHANGE: STRATEGIES AND METHODS Craig W. Fontaine, Ph.D. Overview of Organizational Change

ORGANIZATIONAL CHANGE: STRATEGIES AND METHODS

Craig W. Fontaine, Ph.D.

Overview of Organizational

Change

The Nature of Change

Change in business is not new — it’s just accelerating due to… New technology. Global competition. Growth & increased complexity.

The result: Change or die

What to expect from change

Sense of loss, confusion. Mistrust and a “me” focus. Fear of letting of what 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.

Thinking & understanding

Emotional/ Motivational

Behavioral

Head

Heart

Hands

Why should I change?Why should I change?What’s in it for me?What’s in it for me?

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

Individual prerequisites for change to occur

Effective Change

Equals

AlteringMind-set

HarnessingMotivation

ShapingBehavior

The Effective Management of Change Involves AnIntegrated Approach In Each Of These Three Arenas

Stages 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”

Strategy/change implementation

“Coming to Grips with the Problem”

1.

Arenas of ChangeStages

of Change Management

2.“Working through the Change”

3.“Attaining and Sustaining Improvement”

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)

1. Identify (roughly) the stage person/group is in.2. Determine obstacles/arenas:

a. Headb. Heartc. Handsd. All of the above

3. Use tools to move through obstacles. May need several simultaneously.

4. Recognize and acknowledge steps forward.5. Cycle back to Step 1.

Leading Others Through Change

The technology of leading sustainable change


Stage One:





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”



Stage Two:





“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.







“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:

Addressing mind-set Build relationships. Explain the purpose of change. Help them

understand & teach concept. Articulate the benefits. Link daily activities to their higher purpose &

benefits. Repetition: Provide frequent & consistent

communication about change & what’s needed.

Paint a picture of the successful future using best practices.

Addressing behaviors

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.

Addressing behaviors

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.

Summary

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.

What, why, how, WIIFM. You can’t intervene until you understand the situation. Resistance is part of the change process.

Work with it. Address change at all levels to be successful. Sustainable change occurs in steps.

Define your priorities. Don’t take on too much at once.

Models of Change Management

The Big 3 Models

1. Lewin’s Change Management Model

2. McKinsey 7-S Model 3. Kotter’s 8 Step Change

There are Other Models

Ten commandements (Kanter, Stein and Jick 1992)

Ten Keys (Pendlebury, Grouard, and Meston 1998)

12 Action Steps (Nadler 1998) Transformation Trajectory (Taffinfer 1998) Nine-Phase Change Process Model (Anderson &

Anderson 2001) Step-by-Step Change Model (Kirkpatrick 2001) 12 Step Framework (Mento, Jones and

Dirndorfer 2002) RAND’s Six Steps (Light 2005) Integrated Model (Leppitt 2006)

Kurt Lewin’s Model

1. Unfreeze – Most people make an active effort to resist change. In order to overcome this tendency, a period of thawing or unfreezing must be initiated through motivation.

2. Transition – Once change is initiated, the company moves into a transition period, which may last for some time. Adequate leadership and reassurance is necessary for the process to be successful.

3. Refreeze – After change has been accepted and successfully implemented, the company becomes stable again, and staff refreezes as they operate under the new guidelines.

McKinsey 7-S Model

1. Shared Values2. Strategy3. Structure4. Systems5. Style6. Staff7. Skills

Kotter’s 8 Step Change Model

1. Establish the need for urgency2. Ensure there is a powerful

change group to guide the change

3. Develop a vision4. Communicate the vision5. Empower the staff6. Ensure there are short-term wins7. Consolidate gains8. Embed the change in the culture

Your Textbook embraces some of all Three Models……

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ORGANIZATIONAL CHANGE: STRATEGIES AND METHODS Craig W. Fontaine, Ph.D. Overview of Organizational Change