1. Conflict and Change Management Night 1
Dr. Roy Philip

2. Rapidly Changing World
Change is accelerating
Power shifting from sellers to buyers
The power of the Internet
Unlimited substitution over competition
Leadership and management domain is worldwide now
Knowledge age
New world

3. Why Firms Fail Allowing Too Much Complacency
Failing to Create Sufficiently Powerful Guiding Coalition
Underestimating the Power of Vision
Undercommunicating the Vision by a Factor of 10 (or 100, or even 1,000)
Permitting Obstacles to Block the New Vision
Failure to Create Short-Term Wins
Declaring Victory Too Soon
Neglecting to Anchor Changes Firmly in the Corporate Culture

4. Consequences of Errors
New Strategies aren’t implemented well
Acquisitions don’t achieve expected synergies
Reengineering takes too long and costs too much
Downsizing doesn’t get costs under control
Quality programs don’t deliver hoped-for-results

5. Forces driving the need for major change
Technological Change
Faster and better communication
Faster and better transportation
More information networks connecting people globally
McGraw-Hill/Irwin
©2006 The McGraw-Hill Companies, Inc. All rights reserved.

6. Forces driving the need for major change
Technological Change
International Economic Integration
Faster and better communication
Faster and better transportation
More information networks connecting people globally
Fewer tariffs (GATT)
Currencies linked via floating exchange rates
More global capital flows
McGraw-Hill/Irwin
©2006 The McGraw-Hill Companies, Inc. All rights reserved.

7. Forces driving the need for major change
Technological Change
International Economic Integration
Maturation of markets in developed countries
Faster and better communication
Faster and better transportation
More information networks connecting people globally
Fewer tariffs (GATT)
Currencies linked via floating exchange rates
More global capital flows
Slower domestic growth
More aggressive exporters
More deregulation
McGraw-Hill/Irwin
©2006 The McGraw-Hill Companies, Inc. All rights reserved.

8. Forces driving the need for major change
Technological Change
International Economic Integration
Maturation of markets in developed countries
Fall of communist and socialist regimes
Faster and better communication
Faster and better transportation
More information networks connecting people globally
Fewer tariffs (GATT)
Currencies linked via floating exchange rates
More global capital flows
Slower domestic growth
More aggressive exporters
More deregulation
More countries linked to the capitalist system
More privatization
McGraw-Hill/Irwin
©2006 The McGraw-Hill Companies, Inc. All rights reserved.

9. Forces driving the need for major change
The Globalization of Markets and Competition
More Hazards
More competition
Increased speed
More Opportunities
Bigger markets
Fewer barriers
More Large-scale change in organizations
To avoid hazards and/or capitalize on opportunities, firms must become stronger competitors. Typical transformation methods include:
Reengineering Mergers and acquisitions
Restructuring Strategic change
Quality programs Cultural change
McGraw-Hill/Irwin
©2006 The McGraw-Hill Companies, Inc. All rights reserved.

10. Kotter’s Eight-Stage Change Process
Establishing a Sense of Urgency
Communicating the Change Vision
Consolidating Gains
and Producing More Change
Creating the Guiding Coalition
Empowering Broad-based Action
Anchoring New Approaches
in the Culture
Developing a Vision and Strategy
Generating Short-term Wins

11. Kotter’s Eight-Stage Change Process
Defrost Hardened Status Quo
Anchoring New Approaches
in the Culture
Establishing a Sense of Urgency
Communicating the Change Vision
Consolidating Gains
and Producing More Change
Generating Short-term Wins
Empowering Broad-based Action
Developing a Vision and Strategy
Creating the Guiding Coalition
Introduce New Practices
Grounds and Sticks the Change

12. Management The process of achieving organizational goals by engaging
in the four major functions of planning, organizing,
leading, and controlling.
It characterizes the process of planning, leading, and directing all
or part of an organization, through the deployment or manipulation
of resources

13. Leadership Leadership is the ability to influence others
towards the achievement of goals

14. Management vs. Leadership
Planning and budgeting
Organizing and staffing
Controlling and problem solving
Establishing direction
Aligning people
Motivating and inspiring
Produces a degree of predictability and order
and has the potential to consistently produce the
Short-term results expected by various stakeholders
(e.g. for customers, always being on time, for
Stock-holders, being on budget)
Produces change, often to a dramatic degree,
and has the potential to produce extremely
useful change (e.g. new products that customers
want, new approaches to labor relations that help
make a firm more competitive)

15. Management vs. Leadership -1
Management aims to give consistency
and order to organizations
Leadership seeks to provide constructive
and adaptive change
Management is directed toward
coordinating
activities in order to get the job done
Leadership is concerned with the
process of
developing mutual purposes.
McGraw-Hill/Irwin
©2006 The McGraw-Hill Companies, Inc. All rights reserved.

16. Management vs. Leadership -2
Management relies more on a
one-way authority relationship
Leadership relies more on a
multidirectional influence
relationship
Managers are people who do
things right
Leaders are people who do the
right things
McGraw-Hill/Irwin
©2006 The McGraw-Hill Companies, Inc. All rights reserved.

17. Three Competencies of Leadership
DIAGNOSIS
ADAPTING
COMMUNICATING
McGraw-Hill/Irwin
©2006 The McGraw-Hill Companies, Inc. All rights reserved.

18. Need for Management Skills
Managerial
Skills and
Life Success
Managerial
Skills and
Hiring
The Need for
Management Skills
Managerial
Skills in the
New Work
Environment

19. 16 Basic Skills Employees Need
Knowing How to Learn
Reading
Writing
Mathematics
Listening
Oral Communication
Problem Solving
Creative Thinking
Self-Confidence
Motivational Goal Setting
Personal and Career Development
Interpersonal Skills
Negotiation
Teamwork
Organizational Effectiveness
Leadership

20. Ranking of HR Managers’ Perceptions of Criteria for Evaluating Business Graduates

21. Managerial Skills in the New Work Environment
Growth in
Management Positions
Entrepreneurship
Demand for
Managerial
Skills
Hiring for the
Second Job
Downsizing and
Delayering
Self-Managed
Work Teams
Job Enrichment
and Empowerment

22. Managerial Skills Top-Level Managers Middle-Level Managers
First-Level Managers
Conceptual
Human
Technical

23. Lewin’s Model
REFREEZE
UNFREEZE
CHANGE

24. 3. Sequence of change
Change typically involves a three step process that follows the sequence:
Unfreezing the restraining forces that maintain the status quo
UNFREEZE
MOVE
REFREEZE
Moving the organisation to a new state
Refreezing to consolidate the change

25. 3. Sequence of change - Example
Freezing in order to take stock, identify patterns and highlight what is happening
FREEZE
REBALANCE
UNFREEZE
Rebalancing – reinterpreting history, identifying and amplifying best practice and re-sequencing patterns
Unfreezing to enable patterns of activity to resume with fewer blockages.