1. PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved. Module 8 Managing Change in Organizations

2. Copyright © 2005 South-Western. All rights reserved.8–2 Organizational Change Over past two decades, most organizations have undergone change initiatives Success rate of change initiatives has been startlingly low; according to European execs:  20% of change initiatives were successful  63% produced some change that was not sustained  17% had no result at all Class Note: Organizational Change

3. Copyright © 2005 South-Western. All rights reserved.8–3 Why Is Organizational Change Difficult? Human nature’s resistance to change Organizational inertia Unanticipated consequences of organizational change initiatives Class Note: Organizational Change

4. Copyright © 2005 South-Western. All rights reserved.8–4 Why Is Change Difficult? (cont’d) Meanings of organizational change:  Change in organization design  Organization chart, integration mechanisms, systems for motivating people  Change in power structure  Changes in who makes decisions, which individuals and groups influence decisions, what interests are served  Change in culture  Change in norms, values, mental models, shared assumptions about the organization and its environment Class Note: Organizational Change

5. Copyright © 2005 South-Western. All rights reserved.8–5 Stage Models of Change Processes Kurt Lewin’s model of organizational change:  Three-stage sequence: unfreezing–change–refreezing Lewin saw organizations as social systems highly resistant to change because of:  Human nature  Organizational inertia Lewin’s work laid foundations of field of organizational development (OD) and other stage models Class Note: Organizational Change

6. Copyright © 2005 South-Western. All rights reserved.8–6 Figure 8.1 Stage Models of Organizational Change Class Note: Organizational Change

7. Copyright © 2005 South-Western. All rights reserved.8–7 Dimensions of Change Scope of change—radical or incremental Pacing of change—punctuated or continuous Source of change—top-down or bottom-up Process of change—planned or emergent Class Note: Organizational Change

8. Copyright © 2005 South-Western. All rights reserved.8–8 Dimensions of Organizational Change Radical Incremental Top-down Bottom-up Punctuated Continuous Planned Emergent Figure 8.2 Class Note: Organizational Change

9. Copyright © 2005 South-Western. All rights reserved.8–9 Being a More Effective Change Agent Expand your repertoire of actions Avoid mistakes Work with temporal sequencing Become a sophisticated consumer of advice on change Class Note: Organizational Change

10. Copyright © 2005 South-Western. All rights reserved.8–10 The Life Cycle of a Typical Change Initiative Readings: The Life Cycle of Typical Change Initiatives Source: From The Dance of Change by Peter M. Senge, Kleiner, Roberts and Ross, copyright © 1999 by Peter Senge, Art Kleiner, Charlotte Roberts and Richard Ross. Used by permission of Doubleday, a division of Random House, Inc.

11. Copyright © 2005 South-Western. All rights reserved.8–11 The Five “Learning Disciplines” of The Fifth Discipline Personal mastery Shared vision (aspiration) Mental models Team learning (reflection and inquiry) Systems thinking Readings: The Life Cycle of Typical Change Initiatives

12. Copyright © 2005 South-Western. All rights reserved.8–12 The Myth of the Hero-CEO “Significant change only occurs when it is driven from the top” “There is no point in going forward unless the CEO is on board” “Nothing will happen without top management buy-in” Readings: The Leadership of Profound Change

13. Copyright © 2005 South-Western. All rights reserved.8–13 A Different View of Executive Leadership “Little significant change can occur if it is driven only from the top” “CEO proclamations and programs rolled out from corporate headquarters are a great way to foster cynicism and distract everyone from real efforts to change” “Top management buy-in is a poor substitute for genuine commitment and learning capabilities at all levels in an organization” Readings: The Leadership of Profound Change

14. Copyright © 2005 South-Western. All rights reserved.8–14 Stages in the Change Process at General Electric Readings: Culture Change at General Electric

15. Copyright © 2005 South-Western. All rights reserved.8–15 Payoff Matrix Readings: Culture Change at General Electric

16. Copyright © 2005 South-Western. All rights reserved.8–16 The Integrated Learning Process Involve and engage all your employees, as well as customers, partners, and suppliers Identify and transfer best practices from inside and outside the company Integrate these initiatives with key human resource practices Set “stretch goals” Readings: Culture Change at General Electric