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1 MANAGING CHANGE. 2 Managing Change Basically, change is an alteration or modification. It may also be looked at as the act or an instance of making.

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Presentation on theme: "1 MANAGING CHANGE. 2 Managing Change Basically, change is an alteration or modification. It may also be looked at as the act or an instance of making."— Presentation transcript:

1 1 MANAGING CHANGE

2 2 Managing Change Basically, change is an alteration or modification. It may also be looked at as the act or an instance of making or becoming different.

3 3 Change management is organizational or management discipline focused on: Increasing the organization's ability to adapt, and Adopt new ways of going about business activities. Managing Change

4 4 Eight Errors Common to Organizational Change Efforts and Their Consequences COMMON ERRORS 1.Allowing too much complacency 2.Failing to create a sufficiently powerful guiding coalition. 3.Underestimating the power of vision 4.Under communicating the vision 5.Permitting obstacles to block the new vision 6.Failing to create short-term wins 7.Declaring victory too soon 8.Neglecting to anchor changes firmly in the corporate culture CONSEQUENCES 1.New strategies aren't implemented well 2.Acquisitions don't achieve expected synergies 3.Reengineering takes too long and costs too much 4.Downsizing doesn't get costs under control 5.Quality programs don't deliver hoped-for results

5 5 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. Eight Errors Common to Organizational Change Efforts and Their Consequences

6 6 The Eight-Stage Process of Creating Major Change ESTABLISHING A SENSE OF URGENCY 1.ESTABLISHING A SENSE OF URGENCY Examining the market and competitive realities Identifying and discussing crises, potential crises, or major opportunities CREATING THE GUIDING COALITION 2. CREATING THE GUIDING COALITION Putting together a group with enough power to lead the change Getting the group to work together like a team

7 7 The Eight-Stage Process of Creating Major Change 3.DEVELOPING A VISION AND STRATEGY Creating a vision to help direct the change effort Developing strategies for achieving that vision 4.COMMUNICATING THE CHANGE VISION Using every vehicle possible to constantly communicate the new vision and strategies Having the guiding coalition role model the behaviour expected of employees

8 8 The Eight-Stage Process of Creating Major Change EMPOWERING BROAD-BASED ACTION 5. EMPOWERING BROAD-BASED ACTION Getting rid of obstacles Changing systems or structures that undermine the change vision Encouraging risk taking and nontraditional ideas, activities, and actions GENERATING SHORT-TERM WINS 6. GENERATING SHORT-TERM WINS Planning for visible improvements in performance, or "wins" Creating those wins Visibly recognizing and rewarding people who made the wins possible

9 9 The Eight-Stage Process of Creating Major Change CONSOLIDATING GAINS AND PRODUCING MORE CHANGE 7.CONSOLIDATING GAINS AND PRODUCING MORE CHANGE Using increased credibility to change all systems, structures, and policies that don't fit together and don't fit the transformation vision Hiring, promoting, and developing people who can implement the change vision Reinvigorating the process with new projects, themes, and change agents

10 10 The Eight-Stage Process of Creating Major Change ANCHORING NEW APPROACHES IN THE CULTURE 8.ANCHORING NEW APPROACHES IN THE CULTURE Creating better performance through customer- and productivity-oriented behavior, more and better leadership, and more effective management Articulating the connections between new behaviours and organizational success Developing means to ensure leadership development and succession Adapted from John P. Kotter, "Why Transformation Efforts Fail." Harvard Business Review (March-April 1995): 61.

11 11 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. Definition of Change Management

12 12 Definition: 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, and completed within the targeted time frame and with the desired results. Change Management

13 13 The Process of Change Step 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 14 Forces for Change Factors Influencing Change or Forces of Change

15 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 education Rapid obsolescence Changing nature of the workforce thro globalization & immigration of workers, as well as foreign direct investments

16 16 Factors Influencing Change or Forces of change Contd. Economic changes – e.g. shortage of resources Political changes – e.g. government legislation, or industrial laws Environmental 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 living The Changing nature of business e.g.: internationalisation Competition – thro market forces.

17 17 Internal: e.g –C–C–C–Changes in organizational goals and objectives –O–O–O–Organizational climate change –O–O–O–Organizational structure change –J–J–J–Job technology change –E–E–E–Employee goal change etc. Change Management Forces Of Change

18 18 Forces Of Change External: e.g. – P– P– P– Politics – E– E– E– Economics – C– C– C– Competition – T– T– T– Technology etc Change Management

19 19 WHY DOES CHANGE FAIL? Due to unwillingness by people to alter long-established attitudes & behaviour or habits After 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 20 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.

21 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 etc How will it be done? Estimate work required and resources needed. What effects will it have? i.e. identify possible implications How can it be kept on course? – controlling implementation towards meeting stated objectives.

22 22 WHAT TO DO TO SUCCESSFULLY MANAGE CHANGE? Consider the people concerned & Involve them People generally resist change because they feel threatened, that their present position may shift for worse There is also the notion that change requires more physical or mental work (interferes with ones comfort zone) As such, a change agent or manager needs to address some basic questions: 1. How can change benefit peoples 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 23 Planned Change Means 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 costs Increased effectiveness & efficiency But whenever change is introduced, there are always some opposing forces resisting change in order to maintain the status quo.

24 24 Who in organizations are responsible for managing change activities? The answer is Change Agents. Change Agents Persons 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. Managing Planned Change

25 25 What Can Change Agents Change? The options essentially fall into four categories: 1. Structure, 2. Technology, 3. Physical setting, and 4. People. These are examples of Planned Change

26 26 1. 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 service 2. Changing 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 What Can Change Agents Change?

27 27 3. Changing the physical setting covers altering the space and layout arrangements in the workplace. 4. 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 What Can Change Agents Change?

28 28 Action Research by Change Agents Diagnose-collect info about the business or people problems and concerns Analyse-the information, the symptoms or patterns of a problem. Helps define primary problems and areas Feedback-share findings with employees, involve and get participation, develop action plans & potential solutions Act-to correct problems identified Evaluate-the effectiveness of action plans

29 29 Organizational Responses To Change Change creates pressure in any organization, especially, when the organization has not had much experience dealing with change. Change Management

30 30 Organizational Responses To Change In many organizations there are different responses to change among the different levels of power, authority, and responsibility as explained below: Top Management Middle Management Employees/Workers/Associates Change Management

31 31 Top Management In 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. Change Management

32 32 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. Change Management

33 33 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. Change Management

34 34 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." Change Management

35 35 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. Change Management

36 36 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. Change Management

37 37 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. Change Management

38 MANAGING CHANGE AT WORK

39 39 Managing Change At Work Basic Guidelines During Change The 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 40 Managing Change At Work Basic Guidelines During Change Culture changes are usually not fun. Take them seriously. Make sure you understand why you are making the change and that it is necessary.

41 41 Managing Change At Work Basic Guidelines During Change Involve people in the change People who are involved are less likely to resist. Being a part of the planning and transition process gives people a sense of control.

42 42 Managing Change At Work Basic Guidelines During Change Ask for opinions about how they would do it. Consider conducting surveys, focus groups and polls.

43 43 Managing Change At Work Basic Guidelines During Change Put a respected person in charge of the process Each change needs a leader. Select someone who is seen in a positive light by the group.

44 44 Managing Change At Work Basic Guidelines During Change Create transition management teams You 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 45 Managing Change At Work Basic Guidelines During Change Provide training in new values, skills and behaviours People 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 46 Managing Change At Work Basic Guidelines During Change Bring in outside help For 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 47 Managing Change At Work Basic Guidelines During Change Establish symbols of change Encourage the development of newsletters, new logos or slogans and/or recognition events to help celebrate and reflect the change.

48 48 Managing Change At Work Basic Guidelines During Change Acknowledge and reward people As 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 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 50 Managing Change At Work Planning For Change –The 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 51 Managing Change At Work Planning For Change –D–Depending on circumstances, you may not go through each stage in perfect order, but at least you should be aware of them. –O–Otherwise you risk being inadequately prepared for implementing the change successfully.

52 52 Managing Change At Work PreparationPreparation Before the change, whenever possible, Before the change, whenever possible, follow these steps: follow these steps: Prepare your employeesPrepare your employees Describe the change as completely as you canDescribe the change as completely as you can Research what happened during the last changeResearch what happened during the last change

53 53 Managing Change At Work Preparation Assess the organizational readiness of your team Don't make additional changes that are not critical

54 54 Managing Change At Work Planning Think it through. During this stage: Make contingency plans Allow for the impact of change on personal performance and productivity Encourage employee input

55 55 Managing Change At Work Planning Anticipate the skills and knowledge that will be needed to master the change Set a time table and objectives so you can measure you progress

56 56 Managing Change At Work Transition Structure Transition Structure Special activities for a special time. After step II planning: Create a transition management group to oversee the change Develop temporary policies and procedures during the change Create new communication channels Meet frequently to monitor the unforeseen, to give feedback or to check on what is happening

57 57 Managing Change At Work Implementation Implementation Take clear, flexible action to accomplish these goals: Provide appropriate training in new skills and coaching in new values and behaviours Provide appropriate training in new skills and coaching in new values and behaviours Encourage self-management Encourage self-management Give more feedback than usual to ensure that people always know where they stand Give more feedback than usual to ensure that people always know where they stand Allow for resistance Allow for resistance

58 58 Managing Change At Work Implementation Give people a chance to step back and take a look at what is going on Encourage people to think and act creatively Look for an opportunity created by the change

59 59 Managing Change At Work Implementation Implementation Allow for withdrawal and return of people who are temporarily resistant Allow for withdrawal and return of people who are temporarily resistant Collaborate Collaborate Monitor the change process Monitor the change process

60 60 Managing Change At Work Reward Share the gains: Create incentives for special effort Celebrate by creating public displays that acknowledge groups and individuals who have helped make things happen

61 61 Managing Change At Work MOVING FROM DANGER TO OPPORTUNITY

62 62 Applying the Change Model Change Occurs Denial Anger Self-Pity Acceptance

63 63 Managing Change At Work Moving From Danger To Opportunity Moving From Danger To Opportunity Change 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 64 Managing Change At Work Moving From Danger To Opportunity Moving From Danger To Opportunity Once 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 65 Managing Change At Work Moving From Danger To Opportunity Moving From Danger To Opportunity Danger and opportunity can further be subdivided into the four (4) phases people commonly go through when facing change. Danger: 1. Denial and 2. Resistance Opportunity: 3. Exploration and 4. Commitment

66 66 Managing Change At Work Moving From Danger To Opportunity The Phases Of Transition Effective leadership can help a group, and each of its members, move through the four phases from denial to commitment.

67 67 Managing Change At Work Moving From Danger To Opportunity Denial: (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 68 Managing Change At Work Moving From Danger To Opportunity Moving From Danger To Opportunity Resistance: (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 69 Managing Change At Work Moving From Danger To Opportunity Moving From Danger To Opportunity Exploration Exploration: (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 70 Managing Change At Work Moving From Danger To Opportunity Moving From Danger To Opportunity Commitment Commitment: (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 71 Managing Change At Work Moving From Danger To Opportunity Moving From Danger To Opportunity Actions For Each Phase Actions For Each Phase During denial confront individuals with information. Explain what to expect and suggest actions they can take to adjust to the change.

72 72 Managing Change At Work Moving From Danger To Opportunity Moving From Danger To Opportunity Actions For Each Phase During 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 73 Managing Change At Work Moving From Danger To Opportunity Actions For Each Phase During 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 74 Managing Change At Work Moving From Danger To Opportunity Moving From Danger To Opportunity Actions For Each Phase During commitment set long-term goals. Concentrate on team building. Create a mission statement. Validate and reward those responsible to the change. Look ahead.

75 75 Managing Change At Work Traps: Traps: During change, a manager may fall into one of the following traps: Ignoring or resisting resistance Jumping to team building The "Drano" approach - pushing productivity too soon

76 76 Managing Change At Work Communicating clearly about change Communicating clearly about change Following are some tips for informing your group about change: Explain the reasons for the change Talk to people in person Tell people the truth Express your feelings Take first steps

77 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 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: 1. What is the change? (Be specific) What is the reason? Likely impact? Benefits? Drawbacks? Details known? Details not known?

79 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 80 Reactions to Change Instead of adapting, we declare ourselves victims of malicious external forces. The inability to shift to a new mindset

81 81 Managing Change At Work Spotting Signs Of Resistance Spotting Signs Of Resistance –Resistance is not only a predictable part of change, but also perhaps the most difficult phase to deal with.

82 82 Managing Change At Work Spotting Signs Of Resistance Spotting Signs Of Resistance –People resist for good reasons. These include: 1.Their security is threatened 2.The change threatens their sense of competence 3.They fear they will fail at new tasks 4.They are comfortable with the status quo.

83 83 Sources of Resistance To Change: 5. Fear of the unknown 6. Economic implications – e.g. huge resources to invest on change 7. Past contracts or agreements ( e.g. lease of equipment) 8. Organisational Culture Individual self-interests or threats to power 9. Individual perception of Organisational goals

84 84 Sources of Resistance To Change: 10. Inconvenience – desire to maintain stability 11. Feeling of being attacked, threatened or betrayed by changes announced by management 12. Fear of taking risks, being innovative or trying new things. 13. Loss of traditional relationships or predictable career patterns.

85 85 Managing Change At Work Signs Of Individual Resistance How many have you observed? 1.Complaints 2.Errors 3.Anger 4.Stubbornness 5.Apathy 6.Absence due to illness 7.Withdrawal

86 86 Managing Change At Work Signs Of Organizational Resistance Just as individuals signal resistance, so do work groups and organizations. 1.Accidents 2.Increase in workers' compensation claims 3.Increased absenteeism 4.Sabotage 5.Increased in health care claims 6.Lowered productivity

87 87 Managing Change At Work 1.Before people accept a change, they must deal with their feelings about loss of their old ways. 2.People need time, acceptance and support to let go of the old and move into the new. 3.The work team can create rituals to say good-bye. 4.Some employees need special help to move on.

88 88 Minimising Resistance to Change Fear of the unknown – encourage and inform Need for security – clarify intentions and methods Dont need change – demonstrate the problem or opportunity Vested interests threatened – enlist key people in change planning Contrasting interpretations – disseminate valid information and group share Poor timing – delay change and wait better for time Lack of resources – provide resources or reduce expectations

89 89 TACTICS TO OVERCOME RESISTANCE Education & communication - inform and sell the need to change Participation - involve to reduce resistance Facilitation & support - offer job related benefits, not money Negotiation - to reduce resistance Manipulation & Cooptation - covert influence especially aimed at resistance leaders Coercion - direct threats and dire consequences

90 90 Conditions Favourable to Change Conditions Favourable to Change 1.When the need for change is clearly identified and accepted 2.When the change is focussed and participation has occurred. 3.When there is the necessary support and management of the change 4.When the new arrangements/working practices are clear. 5.When the change is supported in every facet of the organisation

91 91 Conditions Favourable to Change Conditions Favourable to Change 6.Where incremental change occurs rather than whole scale change. 7.Where the change agent is trusted 8.Where honesty, integrity and relationship skills are present. 9.When it is accepted that post evaluation may signify further/additional change

92 92 Managing Change At Work Increasing Team Involvement Increasing Team Involvement Increase interaction with employees so as to open and/or increase the chance of a better decision. Increase 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. 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. This involves asking people for their ideas on how to do it best.

93 93 Managing Change At Work Setting Goals Together You 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 94 Managing Change At Work Steps For Active Goal setting During Change Steps For Active Goal setting During Change 1.Assess current situation - what is happening now? 2.Listen and rephrase - to establish trust. 3.Clarify objectives - what is it that you want and need to achieve?

95 95 Managing Change At Work Identify problems - define and analyze the problems Identify problems - define and analyze the problems Brainstorm solutions - to generate ideas Brainstorm solutions - to generate ideas Provide feedback - to promote motivation Provide feedback - to promote motivation

96 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 97 3.They follow the golden rule(s) Do Unto Others... Keep your promises, follow-through on your commitments. 4. They admit mistakes. If you cover up your errors, they will cover up theirs. Result: distrust, disfunction, disgust! Seven Traits, continued

98 98 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. Seven Traits, continued

99 99 1. Uncertainty/unknown in doing business a new way. 2. Lack of senior management commitment 3. Lack of effective planning 4. Expectation gap 5. Poor training Barriers To Change

100 100 Evaluation - After Change Evaluation - After Change Reaction - assess employees Learning - knowledge and learning actually acquired Behaviour - what was actually changed compared to what was desired Results - the extent to which the organisation goals were actually achieved

101 101 Changing people is much harder than changing dogma. Barry Campbell CEO, VITRO, Inc.

102 102 Final Thoughts for Change Agents Be patient! Be flexible! Be tenacious! Start with the end in mind! (Covey)

103 103 You will never get full consensus. Accept that... But work hard to get as much as you can. Convince the critical mass. Tom Peters

104 104 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

105 105 The End Thank You

106 106 Video: 1. The New Supervisor – Skills for Success 2. The Power to Change – Les Brown MANAGING CHANGE


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