1. FORCES FOR CHANGE NATURE OF THE WORKFORCE TECHNOLOGY ECONOMIC SHOCKS
More cultural diversity
Aging population and many new entrants with limited skills
TECHNOLOGY
Faster, cheaper, more mobile computers
Understanding and manipulating the genetic code
ECONOMIC SHOCKS
Stock market fluctuations
Record low interest rates
COMPETITION
Global competitors
Mergers, consolidations, and growth of e-commerce
SOCIAL TRENDS
Internet chat rooms
Retirement of Baby Boomers and more “Singles”
WORLD POLITICS
War on terrorism
Opening of markets in China
PERFORMANCE GAPS
Disappointing results
Stockholder expectations

2. WHY CHANGE IS RESISTED VESTED INTERESTS THREATENED LACK OF TRUST
ECONOMIC LOSS --- LOSS OF WAGES, LAYOFFS
SOCIAL LOSS STATUS AND POWER ERODED
INCONVENIENCE HABITS MUST CHANGE
INTERPERSONAL DISRUPTIONS IT WILL BREAK UP THE GROUP
LACK OF TRUST
WHAT ARE MANAGEMENT’S TRUE INTENTIONS?
PAST INCIDENTS WHERE THE COMPANY TOOK UNFAIR ADVANTAGE
UNCERTAINTY & AMBIGUITY
MISUNDERSTANDING OF THE PURPOSE FOR CHANGE
A FEAR OF THE UNKNOWN
PEOPLE WITH LOW TOLERANCE FOR CHANGE OR RISK
PREVIOUS COMMITMENT TO THE STATUS QUO
INFORMAL AGREEMENTS AMONG WORKERS
CONTRACTS
PROMISES WERE MADE

3. ORGANIZATIONAL SOURCES OF RESISTANCE TO CHANGE
GROUP NORMS
UNIONS
POWER STRUCTURE AND DEPARTMENTATION
ORGANIZATIONAL CULTURE
REWARD & EVALUATION SYSTEM

4. DEALING WITH RESISTANCE TO CHANGE KOTTER (79)
EDUCATE & COMMUNICATE
DISCUSSION, DEMONSTRATION & PERSUASION
PARTICIPATION & INVOLVEMENT
INPUT & ADVICE FROM AFFECTED PARTIES
NEGOTIATION & AGREEMENT
OFFERING INCENTIVES FOR COOPERATION
FACILITATION & SUPPORT
PROVIDING TRAINING, HELP & ENCOURAGEMENT WHEN NEEDED
MANIPULATION & COOPTATION
COVERT ATTEMPTS TO INFLUENCE (LITTLE LIES & POWER GAMES)
EXPLICIT & IMPLICIT COERCION
USE OF FORCE, THREATS & PUNISHMENT

5. LEWIN’S CHANGE MODEL
PRESSURE FOR CHANGE RESISTANCE TO CHANGE
 
NORMALLY THESE FORCES BALANCE EACH OTHER OUT, MAINTAINING THE STATUS QUO
SUCCESSFUL CHANGE INVOLVES THREE STEPS:
Unfreezing
TENSION IS RAISED, NEED FOR CHANGE IS RECOGNIZED & ACCEPTED
Movement
THE CHANGE IS IMPLEMENTED
Refreezing
INTERNALIZING (LOCKING-IN) THE NEW PATTERNS OF BEHAVIOR

6. KOTTER’S EIGHT-STEP PLAN FOR IMPLEMENTING CHANGE KOTTER (96)
UNFREEZING
Create a sense of urgency – offer a compelling reason why change is needed
Form a coalition with enough power to lead the change
Create a new vision to direct the change, and strategies for its achievement
Communicate the vision throughout the organization
MOVEMENT
Empower others to act by encouraging risk-taking and creative problem-solving
Plan for, create, and reward short-term “wins” that move toward the new vision
Consolidate improvements, reassess changes, and make adjustments
REFREEZING
Reinforce the changes, show relationships between new behaviors and success

7. A PLANNED ORGANIZATIONAL CHANGE MODEL
ASSESS CHANGES & SHIFTS
ENVIRONMENT, ORGANIZATION, DEPARTMENT
FIND PERFORMANCE GAPS
SIGNIFICANT? MOTIVATED TO ACT?
DIAGNOSE ORGANIZATIONAL PROBLEMS
WHAT ARE THE PROBLEMS? WHAT ARE THE CAUSES? WHAT MUST BE CHANGED?
IDENTIFY SOURCES OF RESISTANCE
WHO IS LIKELY TO RESIST AND WHY?
SET OBJECTIVES FOR THE CHANGE EFFORT
TARGETS CLARIFIED? WILL THE RESULTS BE ASSESSED?
SEARCH FOR CHANGE APPROACHES THAT “FIT”
BEST METHODS & TECHNIQUES? COMPREHENSIVE & COMPLETE?
IMPLEMENT THE CHANGE
PREPARE THE ORGANIZATION FOR CHANGE
MAKE THE CHANGES
FOLLOW UP --- MEASURE THE RESULTS

8. TARGETS FOR ORGANIZATIONAL CHANGE
MISSION & OBJECTIVES
PURPOSE, GOALS
STRATEGIES
NEW PRODUCTS, NEW MARKETS
POLICIES, PROCEDURES
TECHNOLOGY
TOOLS, EQUIPMENT, FACILITIES AND PROCESSES
STRUCTURE
SYSTEMS OF AUTHORITY, RESPONSIBILITY, AND COMMUNICATION
REWARD SYSTEMS
TASKS
JOB DESIGN, GROUP INTERDEPENDENCE
PEOPLE
ATTITUDES, SKILLS, MOTIVATION, KNOWLEDGE

9. ORGANIZATIONAL DEVELOPMENT TECHNIQUES
SURVEY FEEDBACK
TEAM BUILDING
INTERGROUP DEVELOPMENT
TRANSACTIONAL ANALYSIS
SENSITIVITY TRAINING
SYMBOLIC LEADERSHIP
JOB ENRICHMENT
MANAGEMENT BY OBJECTIVES
QUALITY CIRCLES (CONTINUOUS IMPROVEMENT)
PROCESS CONSULTANTS
APPRECIATIVE INQUIRY
PROCESS REENGINEERING
INNOVATION STIMULATION
IDEA CHAMPIONING

10. ASSESSMENT OF CHANGE EFFECTIVENESS
ATTITUDES & OPINIONS
How do those affected “feel” about it?
KNOWLEDGE GAINED
What was really learned? Do we have proof?
BEHAVIORAL CHANGES
Are people behaving and acting differently now?
RESULTS ACHIEVED
Have outcomes improved? Have performance gaps narrowed?

11. ROLE OF A CHANGE CONSULTANT ARGYRIS
GENERATE VALID, USEFUL INFORMATION
Investigate…have the clients help with this process
HELP CLIENTS DEVELOP INTERNAL COMMITMENT TO THEIR CHOICE
Help clients make a free, informed choice…it’s their decision
MAINTAIN SYSTEM AUTONOMY
The clients must assume ownership…they must feel responsible
IMPLICATIONS
CHANGE IS NOT THE PRIMARY OBJECTIVE…YOU’RE JUST THERE TO HELP THEM
FREE CHOICES MUST BE MADE AT ALL LEVELS
MUST HAVE A TRUSTING ORGANIZATIONAL SYSTEM IF CHANGE IS TO BE EFFECTIVE
LEAVE CLIENTS WHO CAN MAINTAIN THE SYSTEM WITHOUT OUTSIDE HELP…MAKE YOURSELF DISPENSIBLE!

12. SCHWAB’S 12 SUGGESTIONS FOR DEALING WITH CHANGE
1. THINK ABOUT WHO MIGHT RESIST AND WHY
2. PREPARE THOSE AFFECTED BY PROVIDING INFORMATION IN ADVANCE (Inform)
3. ENCOURAGE PARTICIPATION AND INPUT FROM THOSE AFFECTED BY THE CHANGE (Involve)
4. MAKE THE ADVANTAGES OF THE CHANGE CLEAR TO THOSE AFFECTED (How will workers be benefited?)
5. GUARANTEE AGAINST LOSS OF WAGES OR JOB, IF POSSIBLE
6. MAKE ONLY NECESSARY CHANGES (If it’s not broken, don’t try to “fix” it)
MAINTAIN USEFUL CUSTOMS & INFORMAL RELATIONSHIPS
(Don’t disrupt productive work groups and cultures)
8. BE WILLING TO TRY CHANGES ON AN EXPERIMENTAL OR TRIAL BASIS (Don’t rush! Consider a “pilot-test”)
9. PROVIDE EXTRA COACHING, TRAINING & SUPPORT FOR THOSE AFFECTED
10. MAKE SURE GRIEVANCES ARE SETTLED QUICKLY AND EQUITABLY
11. CAREFULLY EVALUATE & MONITOR THE EFFECTS OF YOUR CHANGES (Collect assessment measures)
12. PREPARE CONTINGENCY PLANS IN CASE OF UNFORSEEN PROBLEMS