1. Theoretical Perspectives on Change Dr Rajeev Sharma MBA and DBA Course Coordinator rajeev.sharma@cdu.edu.au Tel: 89466528 rajeev.sharma@cdu.edu.au

2. Presentation Title | 00 Month 2010 | Slide 2 Rational change perspective  Sequential, planned search for optimal solutions Learning approach to change  Change occurs through a series of small steps of experimentation and action Cognitive approach to change  A change in managerial and employee cognition must occur before behaviour will change Theoretical perspectives on change

3. Presentation Title | 00 Month 2010 | Slide 3 The three perspectives of change suggest quite different approaches to change Each perspective adds a useful dimension It is therefore relevant that all perspectives should be included in the change process It is important to be aware of both the content of change and the process of change Integrating the change perspectives

4. Presentation Title | 00 Month 2010 | Slide 4 A change model should consider:  How much change is needed?  How widespread across the organisation is change required?  What style of change process should be used?  How much time and resources are available? A General Model of Change

5. Presentation Title | 00 Month 2010 | Slide 5 The amount and type of change required comes from the gap analysis performed during the analysis phase If the gaps are large – transformational change will be required If the gaps are small – incremental change will be appropriate How much to change?

6. Presentation Title | 00 Month 2010 | Slide 6 Fine-tuning  Minor changes that have no major impact Incremental adjustment  Minor change that impacts across the whole organisation Modular transformation  Major change in a part of the organisation Corporate transformation  New strategic orientation or realignment, new structure and/or significant change to the culture, workforce or skills mix Breadth or Scope of change

7. Presentation Title | 00 Month 2010 | Slide 7 Collaborative  Relevant knowledge spread through organisation  Most appropriate in knowledge-based organisations Consultative  Management has a draft plan but requires input and different perspectives  Helps to focus on areas of contention Styles of change

8. Presentation Title | 00 Month 2010 | Slide 8 Directive  Most of the knowledge resides in the centre of the organisation  Plan is developed that is not open for discussion  Useful style where deliberate cultural change is required Coercive  Appropriate when the organisation is in crisis  Limited time and resources  Assumes that behaviour will change Styles of change

9. Presentation Title | 00 Month 2010 | Slide 9 Strategy implementation involves change Changes can be:  incremental (evolutionary) or  transformational (revolutionary) Changes may be:  reactions to unexpected conditions or  proactive results of good planning Time and resources available

10. Presentation Title | 00 Month 2010 | Slide 10 Incremental or evolutionary change requires small movements from the current set of operational practices Transformational change requires major changes in those practices, often scrapping practices altogether Incremental change process

11. Presentation Title | 00 Month 2010 | Slide 11 Periodically organisations can get out of alignment with their environment Misalignment can be due to:  Strategic drift  A change in the ‘rules of the game’ It could be argued that if incremental changes resulting from good strategic analysis of processes was done well, there would be little or no need for transformational change Transformational change

12. Presentation Title | 00 Month 2010 | Slide 12 Transformational change is often triggered by a crisis in the organisation Such a crisis can arise from:  An event in the external environment  Change in internal management  An internally created ‘crisis’ to shake up organisation Transformational change

13. Presentation Title | 00 Month 2010 | Slide 13 The unfreeze/change/consolidate theory of change posits that:  The crisis triggers the unfreezing of the established mindset, routines and systems  Changes are implemented  The new position is reinforced by new capabilities, systems, culture and structures Unfreeze/change/consolidate

14. Presentation Title | 00 Month 2010 | Slide 14 Unfreeze  Crisis triggers shift out of established mindset  Breaks down routines and systems Change  Changes to the content of the organisation are enacted  May often be short term, organisational survival may be paramount  Change processes vary depending on organisation and context Unfreeze/change/consolidate

15. Presentation Title | 00 Month 2010 | Slide 15 Consolidate  Need for consolidation with new systems, culture and structures  New ideas and individual actions institutionalised  Without the rigidity implied by ‘freezing’, organisation is not simply moving from A to B, but from A to B on the way to C… Z Unfreeze/change/consolidate

16. Presentation Title | 00 Month 2010 | Slide 16 A key problem of implementing change is unwillingness of people to accept change. Some reasons for resistance to change include:  Lack of understanding/uncertainty about proposed change  Self-interest/loss of power/loss of face  Different perceptions/frames of reference  Change means extra work  Change is a surprise  Lack of trust in management Resistance to change