Contemporary Business Issues Change Management Theory Module Tutor: Nigel Bryant Session th February 2016

Module Outline 1.Introduction to Contemporary Business Issues 2.Strategic Management Theory 3.Layers of Business Strategy 4.Case Study Analysis 5.Strategic Planning 6.Reading Week 7.Change Management Theory 8.Assignment Workshop and Individual Tutorials 9.Assignment Workshop and Individual Tutorials 10.Decision Making Techniques 11.Review of the Decision Making Process 12.Reading week 13.Reading week 14.Assignment Workshop and Individual Tutorials 15.Assignment Workshop and Individual Tutorials Module Evaluation

What is change management? 4

Change management is an approach to shifting or transitioning individuals, teams & organisations from a current state to a desired future state. Change management is the process, tools & techniques to manage the people-side of change to achieve the required business outcome(s) 5 Change Management

1.Some workers will resist change 2.Good communication with employees will help to make the change management process more effective 3.Change occurs very rarely 4.Improving technology can be a driver for change 5.It is better if employees are not involved in the change process 6.Passive leadership is important during periods of change 7.Change is usually quick and inexpensive 8.The whole organisational culture may be affected by change 6 TRUE OR FALSE?

Leavitt’s Diamond (1964)

The change management process is the sequence of steps that a change management team would follow to apply change management to a project. Change management processes contain the following three phases: Phase 1 - Preparing for change Phase 2 - Managing change Phase 3 - Reinforcing change 8 Change Management Process

9 1. Preparing for change (Assessment) Identifying the problem: Opportunity that necessitates change (symptoms) Data collection: Gathering structural, technological and people information and effects of these elements on the process Data analysis: Summarizing the data (advantages, disadvantages, risks, and consequences) Strategic determination: Identifying possible solutions, barriers, strategies Decide if the change is necessary. Make others aware of the need for the change.

10 Change Management Process 2. Managing change (Planning and Implementation) State goal and specific measurable objectives and also the time allotted. Establishing the who, how, what, and when of change. Allocating resources, budget and evaluation methods. Plan for resistance management. Identify areas of support & resistance. Include every one in the planning that will be affected. Establish target dates for implementation. Develop appropriate strategy for alteration. Be available to support others through the process. Evaluate the change then modify if necessary.

11 Change Management Process 3. Reinforcing change (Evaluation) Determining effectiveness of change. Achieved objectives and benefits - qualitative as well as financial and the documented evidences of being achieved. Stabilize the change - taking measures to reinforce and maintain the change.

12 Change Management Process Lewin, 1947

13 Change Management Process Unfreeze: Reducing the forces that are striving to maintain the status quo, and dismantling the current mind set. Usually by presenting a provocative problem or event to get people to recognize the need for change and to search for new solutions.

14 Change Management Process Change: Developing new behaviors, values, and attitudes, sometimes through organizational structure and process changes and development techniques. There may be a period of some confusion as we move from the old ways of doing things to the new.

15 Change Management Process Refreeze: The final stage of crystallizing and the adaptation of ownership of the new 'as is'. The organization may revert to former ways of doing things at this point unless the changes are reinforced through freezing.

16 Change Management Process

Activity In groups of 2 or 3 look at the Penney Case Study Do you recognise this process in your own organisation? Is the model useful when considering the Lloyds Banking Group?

A Reminder - the Assignment Brief You will be required to identify two key business issues currently facing the Lloyds Banking Group. You must: - Identify the issues by using a range of analytical tools - Critically analyse the impact of those issues on each layer of business (strategic, operational and individual) Focussing on one of these key issues, you must: - Justify your choice of issue - Provide appropriate business solutions to the issue identified - Analyse the business solution implemented by Lloyds Banking Group - Investigate and evaluate the decision making process undertaken by Lloyds Banking Group. You will be required to present their findings in a 3,000 word formal report with relevant academic underpinning.

Another Reminder - Deadlines Progress report: Weeks 7 and 8 You will be required to present a progress report during weeks 7 & 8 to the lecturer within their 1:1 tutorial session. You should explain the analytical tools that you have used, your reasoning behind the selection of those tools and the issues you have identified as a result. One issue should be internal and the other an external issue that the organisation is currently facing. Assignment draft report: Week beginning 11 th April 2016 It is highly recommended that you submit a draft report during the week beginning 11 th April. This is a complex module and students that have done well in the past have ensured that a draft has been submitted. The draft assignment will not be marked, but it will allow you the opportunity to have a valuable discussion regarding your report with the lecturer during weeks 11 and 12. Submit Assignment: 28th April 2016

Next Week Assignment Workshop & Individual Tutorials