2. Nature And Sources Of Change In Business Nature And Sources Of Change In Business Reasons For Resistance To Change Reasons For Resistance To Change Managing Change Effectively Managing Change Effectively

4. External influences External influences Internal influences Internal influences Structural responses to change Structural responses to change

5. Effects of accelerating technology Effects of accelerating technology Ecommerce Ecommerce New systems & procedures New systems & procedures New business cultures New business cultures INTERNAL Changing nature of markets Changing nature of markets Economic Economic Financial Financial Geographic Geographic Social Social Legal Legal Political Political Technological Developments Technological Developments

7. Ways of adopting new systems & procedures to cut costs & increase competitiveness in the marketplace: Ways of adopting new systems & procedures to cut costs & increase competitiveness in the marketplace: Outsourcing Outsourcing Flat structures Flat structures Strategic alliances & networks Strategic alliances & networks

8. Contracting with organizations outside your own for work that could otherwise be done by employees within your company Contracting with organizations outside your own for work that could otherwise be done by employees within your company Why do it? Why do it? Cost effectiveness Cost effectiveness Who does it? Who does it? Just about everyone – large and small companies Just about everyone – large and small companies Can you think of some examples from your workplace? Can you think of some examples from your workplace?

9. Financial costs Inertia of managers, owners Cultural incompatibility in mergers/takeovers Staffing

10. Resistance is futile……….

11. Purchasing New Equipment Purchasing New Equipment Currency = competitiveness Currency = competitiveness Example = airplanes Example = airplanes Redundancy Payments Redundancy Payments When jobs become no longer necessary staff are displaced and compensation payments are required When jobs become no longer necessary staff are displaced and compensation payments are required This is a significant cost to the business: This is a significant cost to the business: High financial payments High financial payments Possible loss of ‘old knowledge’ within the business Possible loss of ‘old knowledge’ within the business

12. Retraining Retraining Significant cost Significant cost Trainers Trainers Replacement staff for those on training Replacement staff for those on training Reorganising Plant Layout Reorganising Plant Layout Manufacturing e.g. where robotics & computerisation replaces people Manufacturing e.g. where robotics & computerisation replaces people Expensive & time consuming to move equipment in the short term Expensive & time consuming to move equipment in the short term Short term pain often = long term gain Short term pain often = long term gain

13. Go to page 29 of text ( HSC Business Studies Getting Better Results v2.0 (Sykes & Crawford) ) Go to page 29 of text ( HSC Business Studies Getting Better Results v2.0 (Sykes & Crawford) ) Read “Patricks - Business Example” Read “Patricks - Business Example” Based on the “Think about these” questions: Based on the “Think about these” questions: Create a SWOT diagram in your books Create a SWOT diagram in your books Complete 2 points per quadrant Complete 2 points per quadrant

14. Inertia = lack of energy or resolve to do something about a problem Inertia = lack of energy or resolve to do something about a problemhowever If you always do what you’ve always done….. then you’ll always get what you’ve always got. If you always do what you’ve always done….. then you’ll always get what you’ve always got. Can be seen when managers procrastinate about an issue – often don’t have the skills, or do but don’t realise it! Can be seen when managers procrastinate about an issue – often don’t have the skills, or do but don’t realise it!

15. e.g. “red’ business merges with “yellow” business to create “orange” business e.g. “red’ business merges with “yellow” business to create “orange” business Existing attitudes, beliefs & values about the way things should be done Existing attitudes, beliefs & values about the way things should be done A red job and a yellow job merges into one orange job. Who get the job? A red job and a yellow job merges into one orange job. Who get the job? Red Manager? Red Manager? Yellow Manager? Yellow Manager? Increased internal competition for promotions and roles Increased internal competition for promotions and roles

16. De-skilling De-skilling Technology replaces the old way of doing things e.g. typing pool staff replaced with word processing staff Technology replaces the old way of doing things e.g. typing pool staff replaced with word processing staff Acquiring new skills Acquiring new skills Opportunity required for Opportunity required for Regular upskill training Regular upskill training Development of 2-3 year career plans Development of 2-3 year career plans Loss of career / promotion opportunities Loss of career / promotion opportunities When jobs /roles are reviewed very often they move to a “less is more” position. When jobs /roles are reviewed very often they move to a “less is more” position.

17. As opposed to “How do I know if I want to change? As opposed to “How do I know if I want to change?

18. identifying the need for change identifying the need for change setting achievable goals setting achievable goals creating culture of change creating culture of change encouraging teamwork approach using change agents encouraging teamwork approach using change agents change models change models force-field analysis, force-field analysis, Lewin’s unfreeze/change/refreeze model Lewin’s unfreeze/change/refreeze model

19. It’s a little tricky sometimes…….. It’s a little tricky sometimes…….. Your text suggests capturing statistical information via MIS (management information systems) Your text suggests capturing statistical information via MIS (management information systems) What if…….. You don’t know what you don’t know? You don’t know what you don’t know? Formal capture of business information via MIS is good business practice Formal capture of business information via MIS is good business practice Reviewing the information provided via the MIS is even better business practice Reviewing the information provided via the MIS is even better business practice Then you get a clue as to what you should be looking for! Then you get a clue as to what you should be looking for!

20. Do people like change? Do people like change? Create SMART evolutionary goals Create SMART evolutionary goals Analyse: Analyse: Existing systems, resources and procedures Existing systems, resources and procedures Future systems, resource and procedure requirements Future systems, resource and procedure requirements Proper Preparation Prevents Poor Performance (5ps) Proper Preparation Prevents Poor Performance (5ps) Eat the elephant one bite at a time Eat the elephant one bite at a time Break the changes into manageable bits, create cultural change one small step at a time Break the changes into manageable bits, create cultural change one small step at a time

21. What It Is Used For To show how process variables or factors impact the process status quo. To show how process variables or factors impact the process status quo. When to Use It When looking at a complex situation to organize the variables that affect the situation in one direction or another. When looking at a complex situation to organize the variables that affect the situation in one direction or another. Important Notes Arrows are drawn to signify the forces pushing on an issue or situation. The relative size of each arrow should be adjusted to indicate its relative impact on the issue. Arrows are drawn to signify the forces pushing on an issue or situation. The relative size of each arrow should be adjusted to indicate its relative impact on the issue. Parties from all aspects of the issue or situation should be involved in setting up the force field Parties from all aspects of the issue or situation should be involved in setting up the force field

22. In your groups analyse the following: In your groups analyse the following: After receiving a consultants report the Senior Management Team (SMT) is about to make a significant change is organisational approach. It is proposing to move from a classical-scientific approach to a behavioural management style. After receiving a consultants report the Senior Management Team (SMT) is about to make a significant change is organisational approach. It is proposing to move from a classical-scientific approach to a behavioural management style. SMT would like feedback from their staff on the viability of this approach SMT would like feedback from their staff on the viability of this approach Note the answers on the worksheet provided. Note the answers on the worksheet provided.worksheet Nominate one person to share the groups outcomes with the rest of the class. Nominate one person to share the groups outcomes with the rest of the class.

24. Explains why certain things have to change. Explains why certain things have to change. For people to accept change they like to feel that they are part of it For people to accept change they like to feel that they are part of it Unfreeze Create a change management team Create a change management team Identify staff affected Identify staff affected Train them Train them Empower them Empower them Refreeze Consolidate the changes to reduce back slip Consolidate the changes to reduce back slip Reward staff for making the change Reward staff for making the change

26. Go to p36 of your text Go to p36 of your text In pairs complete the ThinkPairShare activity box “What are the forces resisting change at your school?” In pairs complete the ThinkPairShare activity box “What are the forces resisting change at your school?”