2 Basically, change is an alteration or modification. Managing ChangeBasically, change is an alteration or modification.It may also be looked at as the act or an instance of making or becoming different.
3 Managing ChangeChange management is organizational or management discipline focused on:Increasing the organization's ability to adapt, andAdopt new ways of going about business activities.
4 Eight Errors Common to Organizational Change Efforts and Their Consequences COMMON ERRORSAllowing too much complacencyFailing to create a sufficiently powerful guiding coalition .Underestimating the power of visionUnder communicating the visionPermitting obstacles to block the new visionFailing to create short-term winsDeclaring victory too soonNeglecting to anchor changes firmly in the corporate cultureCONSEQUENCESNew strategies aren't implemented wellAcquisitions don't achieve expected synergiesReengineering takes too long and costs too muchDownsizing doesn't get costs under controlQuality programs don't deliver hoped-for results
5 Eight Errors Common to Organizational Change Efforts and Their Consequences These errors are not inevitable.With awareness and skill, they can be avoided, or at least greatly mitigated.The key lies in understanding:Why organizations resist needed change,What exactly is the multistage process that can overcome destructive inertia, and,Most of all, how the leadership that is required to drive that process in a socially healthy way means more than good management.
6 The Eight-Stage Process of Creating Major Change 1. ESTABLISHING A SENSE OF URGENCYExamining the market and competitive realitiesIdentifying and discussing crises, potential crises, or major opportunities2. CREATING THE GUIDING COALITIONPutting together a group with enough power to lead the changeGetting the group to work together like a team
7 The Eight-Stage Process of Creating Major Change 3. DEVELOPING A VISION AND STRATEGYCreating a vision to help direct the change effortDeveloping strategies for achieving that vision4. COMMUNICATING THE CHANGE VISIONUsing every vehicle possible to constantly communicate the new vision and strategiesHaving the guiding coalition role model the behaviour expected of employees
8 The Eight-Stage Process of Creating Major Change 5. EMPOWERING BROAD-BASED ACTIONGetting rid of obstaclesChanging systems or structures that undermine the change visionEncouraging risk taking and nontraditional ideas, activities, and actions6. GENERATING SHORT-TERM WINSPlanning for visible improvements in performance, or "wins"Creating those winsVisibly recognizing and rewarding people who made the wins possible
9 The Eight-Stage Process of Creating Major Change 7. CONSOLIDATING GAINS AND PRODUCING MORE CHANGEUsing increased credibility to change all systems, structures, and policies that don't fit together and don't fit the transformation visionHiring, promoting, and developing people who can implement the change visionReinvigorating the process with new projects, themes, and change agents
10 The Eight-Stage Process of Creating Major Change 8. ANCHORING NEW APPROACHES IN THE CULTURECreating better performance through customer- and productivity-oriented behavior, more and better leadership, and more effective managementArticulating the connections between new behaviours and organizational successDeveloping means to ensure leadership development and successionAdapted from John P. Kotter, "Why Transformation Efforts Fail." Harvard Business Review (March-April 1995): 61.
11 Definition of Change Management Change Management encompasses all activities aimed at helping an organisation successfully accept and adopt new technologies and new ways. Effective change management enables the transformation of strategy, processes, technology and people to enhance performance and ensure continuous improvement in an ever-changing environment.
12 Change ManagementDefinition:While change management needs to be defined in the context of the specific organization, we define it as follows:“Change Management is:the use of systematic methods to ensure that a planned organizational change can be guided in the planned direction,conducted in a cost-effective and efficient manner, andcompleted within the targeted time frame and with the desired results”.
13 The Process of ChangeStep 1: Unfreezing present behaviour: – i.e. let go of old ways!Step 2: Changing: - discovering & adopting new attitudes, values and behaviours with the help of a change agent (innovators, not laggards)Step 3: Refreezing: - i.e. Putting the new behaviour pattern into place by means of supporting or reinforcing mechanisms to make it the new norm (adopt).
14 Factors Influencing Change or Forces of Change Forces for ChangeFactors Influencing Change or Forces of Change
15 Factors Influencing Change or Forces of Change: There are various forces in organisations which make change inevitable.These include:Technological advancement (Innovations)Knowledge explosion – thro’ educationRapid obsolescenceChanging nature of the workforce thro’ globalization & immigration of workers, as well as foreign direct investments
16 Factors Influencing Change or Forces of change Contd. Economic changes – e.g. shortage of resourcesPolitical changes – e.g. government legislation, or industrial lawsEnvironmental requirements – e.g.: a more stringent measures by organisations in taking care of the environment.Social changes– Organisations being more proactive in their social responsibility.Quality of working life – e.g. higher standards of livingThe Changing nature of business e.g.: internationalisationCompetition – thro’ market forces.
17 Change Management Forces Of Change Internal: e.g Changes in organizational goals and objectivesOrganizational climate changeOrganizational structure changeJob technology changeEmployee goal change etc.
18 Change Management Forces Of Change External: e.g. Politics Economics CompetitionTechnology etc
19 WHY DOES CHANGE FAIL?Due to unwillingness by people to alter long-established attitudes & behaviour or habitsAfter a brief period of trying to do things differently, if left on their own, individuals tend to revert to their habitual patterns of behaviour.
20 WHAT TO DO TO SUCCESSFULLY MANAGE CHANGE? There are 2 basic approaches here:Plan the actions required2. Consider the people concerned and involve them.
21 WHAT TO DO TO SUCCESSFULLY MANAGE CHANGE? There are 2 basic approaches here:1. Plan the actions required 2. Consider the people concerned and involve them.Action Planning for Change: Consider the following:What change is proposed? e.g. nature, scope etcHow will it be done? Estimate work required and resources needed.What effects will it have? i.e. identify possible implicationsHow can it be kept on course? – controlling implementation towards meeting stated objectives.
22 WHAT TO DO TO SUCCESSFULLY MANAGE CHANGE? Consider the people concerned & Involve themPeople generally resist change because they feel threatened, that their present position may ‘shift’ for worseThere is also the notion that change requires more physical or mental work (interferes with one’s comfort zone)As such, a change agent or manager needs to address some basic questions:1. How can change benefit people’s jobs? 2. How can change not appear threatening? 3. What do people require from their jobs, and how can change be seen not to be a threat?
23 Planned ChangeMeans a deliberate design & implementation of structural innovation, a new policy, or goal or change in operating philosophy.Planned change brings about an improved way of doing things, for various benefits eg:Reduction in costsIncreased effectiveness & efficiencyBut whenever change is introduced, there are always some opposing forces resisting change in order to maintain the status quo.
24 Managing Planned Change Who in organizations are responsible for managing change activities?The answer is Change Agents.Change AgentsPersons who act as catalysts and assume the responsibility for managing change activities.Change agents can be managers or non-managers, employees of the organization or outside consultants.
25 What Can Change Agents Change? The options essentially fall into four categories:Structure,Technology,Physical setting, andPeople.These are examples of Planned Change
26 What Can Change Agents Change? Changing structure involves making an alteration in authority relations, coordination mechanisms, job redesign, or similar structural variables.e.g.: change of equipment, engineering processes, research techniques or methods of production or delivery of serviceChanging technology encompasses modifications in the way work is processed and in the methods and equipment used.e.g.: adopting new technology, improving tools or equipment, designing new systems to suit new equipment or acquisition of new skills
27 What Can Change Agents Change? Changing the physical setting covers altering the space and layout arrangements in the workplace.Changing people refers to changes in employee attitudes, skills, expectations, perceptions, and/or behaviour.e.g.: employee behaviour by focusing on their skills, attitudes, perceptions and expectations
28 Action Research by Change Agents Diagnose-collect info about the business or people problems and concernsAnalyse-the information, the symptoms or patterns of a problem.Helps define primary problems and areasFeedback-share findings with employees, involve and get participation, develop action plans & potential solutionsAct-to correct problems identifiedEvaluate-the effectiveness of action plans
29 Change ManagementOrganizational Responses To ChangeChange creates pressure in any organization, especially, when the organization has not had much experience dealing with change.
30 Change Management Top Management Middle Management Organizational Responses To ChangeIn many organizations there are different responses to change among the different levels of power, authority, and responsibility as explained below:Top ManagementMiddle ManagementEmployees/Workers/Associates
31 Change ManagementTop ManagementIn a traditional organization, top management has a hard time coming to grips with the direct implications of the change.They usually underestimate the impact that change has on their employees.They tend to isolate themselves.
32 Change Management Top Management They avoid communicating or seeking bad news, because it is difficult for them to admit they don't know.They expect employees to "go along" when a change is announced and blame their middle managers if people resist or complain about the change.They feel betrayed when employees don't respond positively.
33 Change Management Middle Management Managers in the middle feel the pressure to "make the organization change" according to the wishes of the top management.They feel pulled in different directions.They feel deserted, blamed or misunderstood by their superiors.
34 Change Management Employees/Workers/Associates Workers often feel attacked and betrayed by changes announced by management.They are usually caught off guard, not really believing that "my company could do this to me."
35 Change Management Employees/Workers/Associates Many respond with resistance, anger, frustration and confusion.Their response can solidify into a wall of "retirement on the job."They become afraid to take risks, be innovative or try new things.
36 Change Management The Role Of The Leader During Change In times of change each manager, supervisor and team leader will be called upon to lead change in his/her group.Top management should not be expected to manage the transition of individual work groups.
37 Change Management The Role Of The Leader During Change Many middle managers wait for their leaders to tell them what to do.In many cases communication between top executives and middle managers is poor and there is no strategy to effectively announce and implement change.
39 Managing Change At Work Basic Guidelines During ChangeThe following are some basic guidelines for changing a corporate or team culture.Whenever possible, you should:Have a good reason for making the change
40 Managing Change At Work Basic Guidelines During ChangeCulture changes are usually not fun.Take them seriously.Make sure you understand why you are making the change and that it is necessary.
41 Managing Change At Work Basic Guidelines During ChangeInvolve people in the changePeople who are involved are less likely to resist.Being a part of the planning and transition process gives people a sense of control.
42 Managing Change At Work Basic Guidelines During ChangeAsk for opinions about how they would do it.Consider conducting surveys, focus groups and polls.
43 Managing Change At Work Basic Guidelines During ChangePut a respected person in charge of the processEach change needs a leader.Select someone who is seen in a positive light by the group.
44 Managing Change At Work Basic Guidelines During ChangeCreate transition management teamsYou need a cross-section of your group to plan, anticipate, troubleshoot, co-ordinate and focus the change efforts.You can't do it alone.
45 Managing Change At Work Basic Guidelines During ChangeProvide training in new values, skills and behavioursPeople need guidance in understanding what the new way consists of and why it is more desirable.Training brings groups together; it allows them to express their concerns and reinforce newly learned skills.
46 Managing Change At Work Basic Guidelines During ChangeBring in outside helpFor some reason, there is often more power in what an outsider says than the same suggestion coming from inside.Use this power to reinforce the direction in which you want to go.Outsiders bring important information and a fresh perspective.
47 Managing Change At Work Basic Guidelines During ChangeEstablish symbols of changeEncourage the development of newsletters, new logos or slogans and/or recognition events to help celebrate and reflect the change.
48 Managing Change At Work Basic Guidelines During ChangeAcknowledge and reward peopleAs change begins to work, take time to recognize and recall the achievements of the people who made it happen.Acknowledge the struggle and sacrifices people have made.
49 Managing Change At Work You cannot escape or hide from organizational change.Problems come when people are not allowed to manage the change, and are not taught the skills to learn how to learn.In order for an organization to adapt to change, it needs to help its people move through change.
50 Managing Change At Work Planning For ChangeThe following steps will help you successfully introduce and implement a change in your group.You and your team will need to do your homework to complete each stage.
51 Managing Change At Work Planning For ChangeDepending on circumstances, you may not go through each stage in perfect order, but at least you should be aware of them.Otherwise you risk being inadequately prepared for implementing the change successfully.
52 Managing Change At Work PreparationBefore the change, whenever possible,follow these steps:Prepare your employeesDescribe the change as completely as you canResearch what happened during the last change
53 Managing Change At Work PreparationAssess the organizational readiness of your teamDon't make additional changes that are not critical
54 Managing Change At Work PlanningThink it through.During this stage:Make contingency plansAllow for the impact of change on personal performance and productivityEncourage employee input
55 Managing Change At Work PlanningAnticipate the skills and knowledge that will be needed to master the changeSet a time table and objectives so you can measure you progress
56 Managing Change At Work Transition StructureSpecial activities for a special time.After step II planning:Create a transition management group to oversee the changeDevelop temporary policies and procedures during the changeCreate new communication channelsMeet frequently to monitor the unforeseen, to give feedback or to check on what is happening
57 Managing Change At Work ImplementationTake clear, flexible action to accomplish these goals:Provide appropriate training in new skills and coaching in new values and behavioursEncourage self-managementGive more feedback than usual to ensure that people always know where they standAllow for resistance
58 Managing Change At Work ImplementationGive people a chance to step back and take a look at what is going onEncourage people to think and act creativelyLook for an opportunity created by the change
59 Managing Change At Work ImplementationAllow for withdrawal and return of people who are temporarily resistantCollaborateMonitor the change process
60 Managing Change At Work RewardShare the gains:Create incentives for special effortCelebrate by creating public displays that acknowledge groups and individuals who have helped make things happen
61 Managing Change At Work MOVING FROM DANGER TO OPPORTUNITY
62 Applying the Change Model Applying the Change Model OccursDenialAngerSelf-PityAcceptance
63 Managing Change At Work Moving From Danger To OpportunityChange usually involves elements of both danger and opportunity.When people approach a change, their first response might be to see it as a threat or a danger.When this happens, they fear and resist the change.
64 Managing Change At Work Moving From Danger To OpportunityOnce the change occurs, it is common for those affected to begin getting used to it, and begin to see that the change may lead to new opportunities –the change is well on the way to successful implementation.
65 Managing Change At Work Moving From Danger To OpportunityDanger and opportunity can further be subdivided into the four (4) phases people commonly go through when facing change.Danger:Denial andResistanceOpportunity:Exploration andCommitment
66 Managing Change At Work Moving From Danger To OpportunityThe Phases Of TransitionEffective leadership can help a group, and each of its members, move through the four phases from denial to commitment.
67 Managing Change At Work Moving From Danger To OpportunityDenial: (first phase)When a big change is announced, the first response is often numbness.The stage of denial can be prolonged if employees should just move directly into the new ways.
68 Managing Change At Work Moving From Danger To OpportunityResistance: (second phase)Resistance occurs when people have moved through the numbness of denial and begin to experience self-doubt, anger, depression, anxiety, frustration, fear or uncertainty because of the change.
69 Managing Change At Work Moving From Danger To OpportunityExploration: (third phase)During this stage, energy is released as people focus their attention on the future and toward the external environment once again.Another word for this phase is chaos.Again, it is at this phase that people tend to draw on their internal creative energy to figure out ways to capitalize on the future.
70 Managing Change At Work Moving From Danger To OpportunityCommitment: (the final phase)After searching, testing, experimenting and exploring a new form begins to emerge.When this happens, the individual or group is ready for commitment.During this phase employees are ready to focus on a plan, willing to re-create their mission and build action plans to make it work.
71 Managing Change At Work Moving From Danger To OpportunityActions For Each PhaseDuring denial confront individuals with information.Explain what to expect and suggest actions they can take to adjust to the change.
72 Managing Change At Work Moving From Danger To OpportunityActions For Each PhaseDuring resistance listen, acknowledge feelings, respond empathically and encourage support.Don't try to talk people out of their feelings or tell them to change or pull together.
73 Managing Change At Work Moving From Danger To OpportunityActions For Each PhaseDuring exploration focus on priorities and provide any needed training.Follow up on projects underway.Set short-term goals.Conduct brainstorming, visioning and planning sessions.
74 Managing Change At Work Moving From Danger To OpportunityActions For Each PhaseDuring commitment set long-term goals.Concentrate on team building.Create a mission statement.Validate and reward those responsible to the change.Look ahead.
75 Managing Change At Work Traps:During change, a manager may fall into one of the following traps:Ignoring or resisting resistanceJumping to team buildingThe "Drano" approach - pushing productivity too soon
76 Managing Change At Work Communicating clearly about changeFollowing are some tips for informing your group about change:Explain the reasons for the changeTalk to people in personTell people the truthExpress your feelingsTake first steps
77 Managing Change At Work Because communication is a key element to change management, it is important for you to make your communication complete and clear.A four-part formula, which will help you communicate, clearly is as follows:behaviour + Feelings + Effects + Needs = Clear Communication.
78 Managing Change At Work Change Announcement Worksheet:When preparing to announce a change, and before the change meeting consider filling out a comprehensive worksheet as follows:What is the change? (Be specific)What is the reason?Likely impact?Benefits?Drawbacks?Details known?Details not known?
79 Managing Change At Work Dealing With Resistance(what to do when they won't)“The past is gone; the present is full of confusion; and the future scares the hell out of me”by David L. Stein
80 The inability to shift to a new mindset Reactions to ChangeInstead of adapting, we declare ourselves victims of malicious external forces.The inability to shift to a new mindset
81 Managing Change At Work Spotting Signs Of ResistanceResistance is not only a predictable part of change, but also perhaps the most difficult phase to deal with.
82 Managing Change At Work Spotting Signs Of ResistancePeople resist for good reasons. These include:Their security is threatenedThe change threatens their sense of competenceThey fear they will fail at new tasksThey are comfortable with the status quo.
83 Sources of Resistance To Change: Fear of the unknownEconomic implications – e.g. huge resources to invest on changePast contracts or agreements ( e.g. lease of equipment)Organisational Culture Individual self-interests or threats to powerIndividual perception of Organisational goals
84 Sources of Resistance To Change: Inconvenience – desire to maintain stabilityFeeling of being attacked, threatened or betrayed by changes announced by managementFear of taking risks, being innovative or trying new things.Loss of traditional relationships or predictable career patterns.
85 Managing Change At Work Signs Of Individual ResistanceHow many have you observed?ComplaintsErrorsAngerStubbornnessApathyAbsence due to illnessWithdrawal
86 Managing Change At Work Signs Of Organizational ResistanceJust as individuals signal resistance, so dowork groups and organizations.AccidentsIncrease in workers' compensation claimsIncreased absenteeismSabotageIncreased in health care claimsLowered productivity
87 Managing Change At Work Before people accept a change, they must deal with their feelings about loss of their old ways.People need time, acceptance and support to let go of the old and move into the new.The work team can create rituals to say good-bye.Some employees need special help to move on.
88 Minimising Resistance to Change Fear of the unknown – encourage and informNeed for security – clarify intentions and methodsDon’t need change – demonstrate the problem or opportunityVested interests threatened – enlist key people in change planningContrasting interpretations – disseminate valid information and group sharePoor timing – delay change and wait better for timeLack of resources – provide resources or reduce expectations
89 TACTICS TO OVERCOME RESISTANCE Education & communication - inform and sell the need to changeParticipation - involve to reduce resistanceFacilitation & support - offer job related benefits, not moneyNegotiation - to reduce resistanceManipulation & Cooptation - covert influence especially aimed at resistance leadersCoercion - direct threats and dire consequences
90 Conditions Favourable to Change When the need for change is clearly identified and acceptedWhen the change is focussed and participation has occurred.When there is the necessary support and management of the changeWhen the new arrangements/working practices are clear.When the change is supported in every facet of the organisation
91 Conditions Favourable to Change Where incremental change occurs rather than whole scale change.Where the change agent is trustedWhere honesty, integrity and relationship skills are present.When it is accepted that post evaluation may signify further/additional change
92 Managing Change At Work Increasing Team InvolvementIncrease interaction with employees so as to open and/or increase the chance of a better decision.A good leader will offer opportunities for team members to be part of making change work.This involves asking people for their ideas on how to do it best.
93 Managing Change At Work Setting Goals TogetherYou can help your employees through change by ensuring you involve them in the setting of goals for their work.A manager who thinks it is his/her sole responsibility to plan, organize, schedule and evaluate work will not be as successful as the one who involves employees in goal setting.
94 Managing Change At Work Steps For Active Goal setting During ChangeAssess current situation - what is happening now?Listen and rephrase - to establish trust.Clarify objectives - what is it that you want and need to achieve?
95 Managing Change At Work Identify problems - define and analyze the problemsBrainstorm solutions - to generate ideasProvide feedback - to promote motivation
96 Seven Traits of Effective Change Masters 1. They make others feel important. Emphasize their strengths and contributions.2. They promote a vision. Give a clear idea of where you are headed and why that goal is of value to the people and the organization.
97 Seven Traits, continued 3. They follow the golden rule(s) “Do Unto Others...” Keep your promises, follow-through on your commitments.They admit mistakes. If you cover up your errors, they will cover up theirs.Result: distrust, disfunction, disgust!
98 Seven Traits, continued 5. They praise in public and criticize in privacy. Be a source of enthusiasm and positive thinking. Beware of gloom and doom.6. They stay close to the action. Be approachable and available.7. They make a game of competition. Set goals and awards, celebrate successes. Use measurement and metrics.
99 Barriers To Change Uncertainty/unknown in doing business a new way. Lack of senior management commitmentLack of effective planningExpectation gapPoor training
100 Evaluation - After Change Reaction - assess employeesLearning - knowledge and learning actually acquiredBehaviour - what was actually changed compared to what was desiredResults - the extent to which the organisation goals were actually achieved
101 “Changing people is much harder than changing dogma.” Barry Campbell CEO, VITRO, Inc.
102 Final Thoughts for Change Agents Be patient!Be flexible!Be tenacious!Start with the end in mind! (Covey)
103 “You will never get full consensus. Accept that “You will never get full consensus. Accept that... But work hard to get as much as you can. Convince the critical mass.”Tom Peters
104 “As a manager your mental health is dependent on your willingness to accept change and make productive choices based on change”.Peter Senge, Fifth Discipline