2. Managing Change Joyce Osland San Jose State University

3. What do we know about change?

4. The Challenge “How are you supposed to change the tires on a car when it’s going 60 miles per hour?” Epitaph of a change agent

5. Nature of Organizational Change Incremental or transformative Means reexamining basic assumptions Involves a mourning period for old ways New behavior leads to new attitudes Process of unfreezing, moving, refreezing Too much change is disturbing Process not an event Unpredictable Results in unanticipated consequences

6. TYPES OF CHANGE INCREMENTAL Linear Continuous Targeted at fixing or Modifying problems or procedures TRANSFORMATIVE Radical Discontinuous Multidimensional Multilevel Modifies fundamental structures, systems, orientation, strategies

7. Requirements for Organizational Change Top management support Critical mass Trust New psychological contracts New behaviors Organizational learning Institutionalization of innovations

8. Change is a process, not an edict. Technical Solution Process

9. Determining the Need for Change Steps in the Change Process Establishing an Implementation Plan Analyzing Potential Resistance and Obtaining Participation Creating a Tentative Plan Developing a Shared Vision Forming a Guiding Coalition Evaluating the Change Implementing the Change Communicating the Change

10. Conditions Favorable for Change C=(D X S X P) > X Where... C = change D = dissatisfaction with status quo S = an identifiable and desired end state P = practical plan for achieving the desired end state X = the cost of change to the organization

11. Leader’s Role in the Change Process Envisioning Energizing Enabling

12. The Leader’s Critical Path 1.Mobilize commitment to change through joint diagnosis of business problems. 2.Develop a shared vision of how to organize and manage for competitiveness. 3.Foster consensus for the new vision, competence to enact it, and cohesion to move it along.

13. The Leader’s Critical Path 4.Spread revitalization to all departments without pushing it from the top. 5.Institutionalize revitalization through formal policies, systems, and structures. 6.Monitor and adjust strategies in response to problems in the revitalization process. Beer, Eisenstat, Spector

14. HOW LEADERS CHANGE CULTURE PRIMARY MECHANISMS What they attend to How they react to crisis What they role model How they allocate rewards The criteria they use for personnel decisions

15. Resistance to Change A natural reaction to change Part of the process of adaptation Ensures that plans for change and their ultimate consequences are carefully thought through.

16. Resistance to Change Something else to manage: Understand the source Listen carefully to concerns Refrain from seeing resisters as adversaries Use the appropriate tactic in response

17. Sources of Resistance to Change Inadequate change goal Inadequate process Personal resistance Political resistance Systemic resistance

18. Yukl’s Sources of Resistance Lack of Trust Belief that change is unnecessary Belief that change is not feasible Economic threats Relative high cost Fear of personal failure Loss of status and power Threat to values and ideals Resentment of interference

19. When Change is Imposed STAGES IN THE REACTION PATTERN Denial Anger Mourning Adaptation

20. THE 7S MODEL Shared Values Systems Structure Style Skills Staff Strategy FIT

21. Tactics for Dealing with Resistance Empathy Education and communication Participation and involvement Facilitation and support Co-optation Negotiation and agreement Manipulation Coercion Commitment Compliance

22. Analyzing Resistance What kind of resistance would you expect to occur with the change you have in mind? What people would you need to get involved in order to reduce potential sources of resistance? Which tactic would work best in your situation and why?

23. Implementation Guidelines for Political and Organizational Actions Determine who can oppose or facilitate change Build a broad coalition to support the change Fill key positions with competent change agents Use task forces to guide implementation

24. …Implementation Guidelines for Political and Organizational Actions Make dramatic, symbolic changes that affect the work If necessary, implement change on a small scale initially Change relevant aspects of the structure Monitor the progress of change

25. Implementation Guidelines for People- Oriented Actions Create a sense of urgency about the need for change Prepare people to adjust to change Help people deal with the pain of change Provide opportunities for participation Provide opportunities for early successes

26. …Implementation Guidelines for People-Oriented Actions Keep people informed on progress Demonstrate continued commitment to the change Empower people to implement the change Don’t insult the people responsible for the status quo Give people time to make their peace with the change

27. Rules of Thumb for Change Agents Stay alive Start where the system is Never work uphill Innovation requires a good idea, initiative and a few friends Load experiments for success Light many fires Keep an optimistic bias Capture the moment