Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-1 Chapter 9 Leading Change

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-2 Learning Objectives  Define change and explain the forces for change  Describe types of change and explain the change process  Summarize the reasons for resistance to change and possible solutions  Present the leadership practices necessary to implement change, including the importance of vision  Explain the importance of creativity and improvisation in managing change  Apply the principles of learning organizations and positive leadership to leading change

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-3 Forces for Change CHANGE External Forces Economic & political Cultural and social Demographic Industry Technology External Forces Economic & political Cultural and social Demographic Industry Technology Internal Forces Low performance New leadership Low satisfaction New mission Conflict Internal Forces Low performance New leadership Low satisfaction New mission Conflict

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-4 Culture and Change  Tolerance for ambiguity  Higher tolerance likely to make change seem as opportunity  Relationship to and perception of time  Present-orientation likely to lead to quick reaction to change

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-5 Types of Change  Planned  Unplanned  Evolutionary  Convergent  Revolutionary

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-6 Lewin’s Model for ChangeChangingImplementing actual change ChangingImplementing Refreezing Providing support to assure change becomes permanent Refreezing Providing support to assure change becomes permanent Unfreezing Preparing people Understanding the need for change Unfreezing Preparing people Understanding the need for change

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-7 Lewin’s Steps in Change Process  Unfreezing  Prepare people for change by establishing need for change  Changing:  Implement desired changes  Refreezing  Help change take hold by providing support, resources and time

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-8 Factors to Consider in Change  The importance of recognizing the need for change  Preparing and motivating followers to implement it  The inevitable presence of the resistance to change  The focus on people as the source for learning and change  The need to support new behaviors and allowing them to take hold

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-9 The Process of Planned Change Step 1: Recognition of need for change Step 2: Development of ideas for change Step 3: Adoption of one or more ideas Step 4: Implementation Step 5: Allocation of resources Step 6: Evaluation Desired State Current State

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-10 Dealing with Unplanned Change  Avoid becoming too formal, hierarchical and inflexible  Infuse controlled unpredictability and spontaneity  Be proactive in introducing change  Replace and rotate leaders  Experiment with new ideas, methods and processes

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-11 Resistance to Change: Organizational Causes  Inertia  Organizational culture  Structure  Lack of rewards for change  Poor timing

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-12  Group norms  Group cohesion Resistance to Change: Group Causes

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-13 Resistance to Change: Personal Causes  Fear of the unknown  Fear of failure  Job security  Individual characteristics and traits  Previous negative experiences with change

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-14 Managing Resistance to Change  Education and communication  Participation and involvement  Facilitation and support  Negotiation  Manipulation and cooptation  Coercion

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-15 Visionary Leadership  Vision is essential to successful change  Empowerment and confidence in followers  Flexible organization  Teamwork and cooperation

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-16 Elements of a Motivating Vision  Simple and clearly understandable  Challenging and idealistic while realistic and achievable  Appeals to values, emotions and ideals  Forward-looking while based on present

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-17 Building Credibility  Clarifying values  Identifying what followers want  Building agreement and consensus  Communicating values with enthusiasm  Standing up for your beliefs  Role-modeling desired behaviors

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-18 Moderators of Executive Discretion Exemplary Leadership Challenge the process Creating a shared vision Role modeling Celebrating success Enabling followers Encouraging the heart

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-19 Practices of Visionary Leadership  Set clear standards and goals  Expect the best  Pay attention  Personalize rewards and recognition  Tell a story  Celebrate with follower  Be a role model

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-20 Factors that Support Creativity  Open and supportive leadership  Flexible structure; low centralization  Encouraging a questioning attitude  Tolerating mistakes

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-21 Improvisation Creation of something spontaneous  Requires :  Expertise  Knowledge  Perspective on the situation  Willingness to take risks

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-22 Core of Learning Organizations  Shared vision  System thinking  Mental models  Personal mastery  Team learning

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-23 Blocks to Learning Organizational leaders & members LEARNING ORGANIZATIONAL LEARNING DISABILITIES Isolated jobs Ignoring gradual change Emphasis on events Blaming others Skilled incompetence Illusion of taking charge

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-24 Supporting Learning  Being open to new ideas  Emphasizing local solutions  Providing time for learning  Having appropriate leadership

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-25 Positive Approach to Change  Knowledge does not change behavior  Role modeling positive change is key  Look for bright spots  Encourage change through positive approach

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-26 Role of Leader in Changing Culture  Communicate priorities clearly  Role model desired behaviors  Allocate resources to support change  Allocate rewards to desired behaviors

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-27 Leadership Challenge  Recognize feelings and anger  Role model desired attitudes and behaviors  Encourage participation in how to implement change  Seek information  Provide training  Provide support

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-28 Leading Change: Immelt  Implementing changes after a high successful predecessor  Soft approach and understated style  Helping employees know they can perform  Focused on engaging employees  Aware of danger of too much quick change

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-29 Leadership in Action: Best Buy  ROWE  Change implemented from bottom up  Based on clear need from employees  Upper management informed later  Continued resistance  Focus on education and training  Careful implementation based on word of mouth

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9-30 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.