1. Information Technology Project Management
By Jack T. Marchewka
Northern Illinois University
Power Point Slides by Gerald DeHondt
Grand Valley State University

2. Managing Organizational Change, Resistance, & Conflict
Chapter 11

3. Reactions to Change
At any given point in our lives, we all go various changes
School
Family
Personal
We have all been through change - but how do we think about and manage it?
Dealing with the people issues, or soft side of technology, is an area that most technical people do not enjoy.
Many technical people and managers naively believe that the users within the organization will gladly embrace a new system if it is built properly.
Open up with marriage example -
How many of you are married?
How many have been married?
How about those of you who know someone who is married?
Write down changes in each area (that you are willing to share)
Okay we have a context - explain my marriage (expectations from friends and parents, experiences different from others)
SO - HOW DO WE REACT TO CHANGE?

4. Managers & Technical People May Have The False Beliefs
People want this change.
Monday morning we’ll turn on the system and they’ll use it.
A good training program will answer all of their questions and then they’ll love it.
Our people have been through a lot of change – what’s one more change going to matter?
We see the need for helping our people adjust, but we had to cut something.
They have two choices. They can change or they can leave.

5. In Reality, …
Some people believe that it is easier to gain compliance than it is to gain acceptance
It assumes that everyone will comply and that compliance is long lasting
Unfortunately,
The change may not occur
People will comply for a time and then do things to get around the change
Users will accept only a portion of the change
And the full benefits of the project (MOV) are never realized or only after a great deal of time and resources are expended

6. Change Management
Acceptance is much more powerful and longer lasting than compliance
This requires that employees be prepared properly before the system is implemented
A company going green requires employees to give up individual printers and share printer servers. Losing entitlements can cause resentment.
Change management helps smooth the transition and implementation of the new IT solution
Defined by the Gartner Group
The transforming of the organization so it is aligned with the execution of a chosen corporate business strategy. It is the management of the human element in a large-scale change project.

7. The Nature of Change
Whether we view change as positive (anticipation) or negative (dread), there is a certain amount of stress that accompanies each change.
Change has an Impact.
Change is a Process.
Change is Emotional.

8. Assimilating Change
Organizations must deal with change as an individual would and manage within the change threshold
Positive (anticipation) or negative (dread) change causes stress and anxiety
Assimilation is the process of adapting to change. How long it takes is a function of the impact of the change
Not assimilating fast enough or too many changes at once can lead to problems. Managing change is critical.
To much change can lead to organizational dysfunction
Inability to take advantage of new opportunities
Inability to solve current problems
Can eventually lead to an inability to make a profit

9. Assimilating Change Change Threshold Assimilation of change required
Assimilation is the process we use to adjust to positive or negative changes.
Problems occur when we have to deal with too many changes or when we can’t assimilate to change fast enough.
Change
Threshold
Assimilation of change required
Time

10. Assimilating Change
Leavitt’s Model of Organizational Change suggest that changes in people, technology, task or organizational structure can influence or impact other areas
The four areas are interdependent – a change in one can result in a change in other areas
Implementing a new IT system (technology) can lead to new roles and responsibilities (people) as well as impact the work they perform (tasks) and the structure of the organization (formal or informal)

11. Impact of Organizational Change (Leavitt’s Model)
People
Structure
Technology
Task

12. Change Is a Process Kurt Lewin – Force Field Analysis / Change Theory
Help to analyze and understand the forces for and against a particular plan or change initiative
FFA – technique for developing a big picture that involves all the forces in favor or against a particular change
Driving forces facilitate change
Resisting forces act as barriers to change
By understanding all these forces, one may enact strategies or decisions that take into account all of the various interests

13. Change Is a Process The present state represents the status quo
To change from the current state, there must be driving forces to initiate and motivate the change
This requires an unfreezing or an altering of the current state’s habits, perceptions and stability (feeling of loss)
The transition state or neutral zone can be a limbo or emotional wilderness for many individuals
Rushing individuals through the transition results in confusion and the resisting forces (emotional/psychological barriers) tend to push the individuals back to their present state or to escape (leave the organization)
Staying too long in the transition state may lead to a compromise and only a portion of the change may be implemented

14. Change is a Process Present Transition Desired State State State
Driving Forces
Resisting Forces
Desired
State
Transition
State
Present
State
Unfreezing
Changing
Refreezing -
New Status Quo
Force Field Analysis – Lewin, 1951

15. Emotional Response to Change
Change can also bring out emotional responses
An well established equilibrium is upset
Five stages of grieving (Elizabeth Kubler-Ross, On Death and Dying) have been applied to handling change
Management may be way ahead of others in the stages due to knowing about the change early on. They must have patience to let other reach the same stage.
Sense of loss of status quo
Acceptance – accept but not necessarily like the change, “deal with it”

16. Five Stages of Grieving
Denial
Shock and disbelief - Are you serious? This can’t be true!
Anger
Blaming others for the change - feel anger, don’t act on it
Bargaining
Attempts to make deals to avoid the change, “we can work things out”
Looks for ways to extend the status quo
Depression
Admits that change is inevitable and understands the impact
Recognizes loss of the status quo
Acceptance
Coming to grips with the change, “deals with it”
Moving on to the new state

17. Emotional Responses to Change
active
anger
bargaining
acceptance
stability
testing
denial
shock
depression
passive
Time
Elizabeth Kubler- Ross, 1969

18. Reactions to Change Change may Be an ending Mean giving something up
Be stressful
Be easier for those initiating the change
Be the basis for resistance and conflict
Change the “rules for success”

19. Change Management Plan
To succeed with change, the key is to plan and manage the change and the associated transition effectively
Just creating a change management plan sends a message that management cares about its employees and will take seriously their concerns
The project team and sponsor should address and be clear on several important areas

20. Change Management Plan

21. Assess Willingness, Readiness, and Ability to Change
Players involved in change
Sponsor
Initiating vs. sustaining sponsor
A major portion of the organization’s ability and willingness to support the change rests with the sponsor’s commitment to the project and the associated change that will impact the organization
Change Agents
The project manager and team make the change happen
Report directly to the plan sponsor
Must consider how change impacts the rest of the organization (loss of power, control, relationships)

22. Assess Willingness, Readiness, and Ability to Change
Targets of Change
The users, customers, etc.
Must understand
The real impacts of the change
The breadth of change
What’s over and what’s not
Whether the rules for success have changed
New management now promotes based on performance and not seniority

23. Develop or Adopt a Strategy for Change
Rational–Empirical Approach
How will change benefit a particular person or group identified as a target of the change
Message must be consistent, accurate and timely
Saying nothing can send the wrong message
Picture – vision as to how the organization will look or operate in the future
Purpose, - reason for the change, impact on entire organization (current poor service)
Part to Play – involvement in the change, WIIFM (what’s in it for me)

24. Develop or Adopt a Strategy for Change
Normative-Reeducation Approach
Focuses on helping people redefine their existing social norms into a new set that supports the change effort
People are social beings and human behavior can be changed by changing the social norms of a group
Focus on the core values, beliefs, and established relationships that make up the culture of the group rather than the individual
This approach can be very difficult and time consuming because the change agents and sponsor must study the existing values and beliefs of a group
Need to unfreeze the current norms and set new norms to replace them

25. Develop or Adopt a Strategy for Change
Power-Coercive Approach
Compliance through the exercise of power, authority, rewards or threat of punishment for nonconformance
May lead to employees looking for other employment
Others may just wait out the storm and wait for the old ways to return
OTOH, the shock may wake up employees to reality and gain their acceptance. When time is of the essence, this approach can work if employees have no other options
Environmental-Adaptive Approach
Although people may avoid disruption and loss, they can still adapt to change
Cortez burned the boats when he heard grumbling from his men – forced to press on
Switch word processor over weekend so on Monday everyone is forced to use the new version

26. Implement the Change Management Plan and Track Progress
Communication
Watch out for the rumor mill!
Media is important
Face to face communication is generally preferable when delivering important or bad news
Must flow in both directions.
What you don’t say is as important as what you do say!

27. Evaluate Experience and Develop Lessons Learned
Experiences should be documented and made available to other project teams
Overall success of the change management plan should be evaluated
Help to determine the effectiveness of the different players or a particular change management strategy

28. Best Practices
Provide consistent communication and involvement – WIIFM (What’s In It For Me)
Determine support needs - where do people go for help and information?
Measure and communicate progress (Quick Wins)
Build the need for change (“Burning Platform”)
Ensure visible, consistent sponsorship
Allow the disenchanted to vent
Listen, listen, … and listen some more

29. Resistance and Conflict
Resistance should be anticipated from the outset of the project
Resistance can be either overt, in the form of memos, meetings, etc., or covert, in the form of sabotage, foot dragging, politicking, etc.
Resistance can arise for many valid reasons.
E.g., Response time of the system is too slow or lacks requested features and functionality
Resistance due to cultural or behavioral reasons is harder to rationalize, but still can keep a project from reaching its intended goal

30. Why Do People Resist Change?
People may perceive the change as requiring more time and energy than they are willing to invest.
People may feel that a change will mean giving up something that is familiar, comfortable, and predictable.
People may be annoyed with the disruption caused by the change, even if they know that it will be beneficial in the long run.
People may believe that the change is being imposed on them externally, and their egos will not tolerate being told what to do.
People may resist because of the way the decision to change was announced or because it was forced on them.

31. Conflict Management
Focuses on preventing, managing, or resolving conflicts.
It is important to identify potential conflicts as early as possible so that the conflict can be addressed.
Although conflict can be positive and help form new ideas and establish commitment, negative conflict left unresolved can lead to damaged relationships, mistrust, unresolved issues, continued stress, dysfunctional behavior, and low productivity and morale.

32. Although conflict is one of the things most of us dislike intensely, it is inevitable. Most often when we try to avoid conflict, it will nevertheless seek us out. Some people wrongly hope that conflict will go away if it is ignored. In fact, conflict ignored is more likely to get worse, which can significantly reduce project performance. The best way to reduce conflict is to confront it.
(Verma, 1998, p. 367)

33. Types of Conflict Traditional View All conflict should be avoided
“Why can’t we all just get along?”
Contemporary View
Conflict is inevitable and natural
Positive conflict stimulates ideas
“Let’s agree to disagree!”
Negative conflict can be damaging
Interactionist View
Conflict is necessary for performance
“Devil’s advocate”
Stir the pot to encourage positive conflict
Tough to manage properly

34. Types of Conflict
Verma points out that conflict within projects can fit into one, or a combination, of three categories
Conflicts associated with the goals, objectives or specifications of the project
Conflicts associated with the administration, management structures or underlying philosophies of the project
Conflicts associated with the interpersonal relationships among people based on work ethics, styles, egos or personalities

35. Approaches to Conflict
Avoidance
Retreat, withdraw, or ignore conflict
Cooling off period may be a wise move
Accommodation
Appease the parties in conflict, may be only useful in the short-term
Forcing
Dominant authority resolves conflict, useful when time critical decision is needed

36. Approaches to Conflict
Compromise
Involves aspects of forcing and accomodation
Bargaining – important aspect of a project may be compromised (e.g., quality standards compromised to meet project schedule)
Collaboration
Confronting and attempting to solve the problem by incorporating different ideas, viewpoints, and perspectives.
Requires time and sincere desire to work out a mutually acceptable solution

37. Approach to Conflict Situation
Each conflict situation is unique and the choice of an approach to resolve conflict depends on:
Type of conflict and its relative importance to the project.
Time pressure to resolve the conflict.
Position of power or authority of the parties involved.
Whether the emphasis is on maintaining the goals, objectives of the project or maintaining relationships.