ORGANIZATIONAL CHANGE STRATEGIC MANAGEMENT IN HEALTHCARE 21 APRIL 2008

Organizational Change Any discernable modification in any aspect of an organization’s purpose or objectives. culture, strategies, tasks, technologies, people, or structures.

Managing Change Four stage model –Identification –Planning –Implementation –Evaluation

Stage One - Identification Identify the circumstances that require change. Identify the nature of the change needed. Identify the resources for change.

Stage Two - Planning Develop alternatives and evaluate feasibility and cost. Choose one of the alternatives. Shape a general approach. Build support and minimize resistance.

Stage Three - Implementation Unfreeze the status quo. Make the change. Refreeze the organization to give the change stability and durability.

Stage Four Evaluate the change and the status of the organization after the change.

Why Change Organizations, like people, are always growing or dying. Changes carry a variety of costs and should never be undertaken unless reasons are compelling.

How to Change Most change occurs by adopting someone else’s systems or technology. Change can occur from creative activities within the organization.

Who Makes Change Managers make the changes Change can be through coercion or through persuasion The greater the participation of the employees the easier the change

Resistance to Change When people are part of the status quo, even minor changes are disruptive. All change is personal and personnel. Individuals pay selective attention to the environment according to their interests and selectively interpret the information they receive.

Reasons for Resistance Insecurity or uncertainty Inconvenience Implies the current situation is bad Relationships change Individual and group status changes Economic losses Resentment of exercise of power Union opposition

Resistance to Change Economics are the most powerful issues. Downsizing means more work for fewer people. New jobs go to new people Survivor guilt

Reducing Resistance Education and communication Participation Support adjustment Negotiate agreement Manipulate or co-opt the opposition Coercion – inappropriate?

Platitudes/Truths Diapers and politicians should be changed regularly and for the same reason. No one likes to be changed but a baby. All change is stressful.