2. THE ROLE PROBLEMS: CONFLICT, AMBIGUITY, AND STRESS Pertemuan 5 - 6 By: Dr. Drs. Dominikus Tulasi, MM Mata kuliah: O0324 - CRISIS COMMUNICATION AND PUBLIC RELATIONS Tahun: 2010

3. Bina Nusantara University 3 THE CRUCIAL ROLE OF CHANGE COMMUNICATION Learning Objectives  Understand what communication is  Consider the important of role of change  Appreciate the nature and importance of feedback in communication and common errors that distort it  Understand and setting the sense for change  Know the role of transmitters and the problems of noise in the channel  Appreciate how corporate values and the way employees do their work.

4. Bina Nusantara University 4 THE CRUCIAL ROLE OF CHANGE COMMUNICATION Change communication is really a part of employee communication, Organizational change has become a way of life as a result of three inter-related forces: Globalization, the dramatic advances in information technology, and industry consolidation. They need to manage complex information flows,

5. Bina Nusantara University 5 Globalization and information technology will continue to spread. Globalization is the trampling of local communities by rapacious multinational companies.

6. Bina Nusantara University 6 THE CRUCIAL ROLE OF CHANGE COMMUNICATION Globalization is the integration of economies around the world. Globalization represents the economic, political, cultural and environmental ways, in which nations’ activities become increasingly linked. The effects of globalization are present in international treaties, deregulation, privatization of government- owned infrastructure, corporate mergers, foreign ownership and worldwide exchange of management expertise.

7. Bina Nusantara University 7 Globalization has led to the ‘Americanization’ of many societies, the US is actually its biggest loser.

8. Bina Nusantara University 8 STEPS TO SUCCESSFUL CHANGE MANAGEMENT Eight steps essential for good management of organizational change: (1) Urgency, trying to move out current ‘comfort zone’. (2) create a powerful guiding coalition, (3) develop a clear vision and strategy, (4) communicate the change vision, (5) empower employees for broad-based action, (6) generate short term wins, (7) consolidate gains, (8) anchor the new approaches in the culture. By: Professor John Kotter (Kim Harrison, 2008: 319).

9. Bina Nusantara University 9 COMMON ERROR IN CHANGE MANAGEMENT: 1) Allowing too much complacency, 2) Failing to create a sufficiently powerful guiding coalition 3) Underestimating the power of vision, 4) Under-communicating the vision, 5) Permitting obstacle to block the new vision, 6) Failing to create short-term wins, 7) Declaring victory too soon, 8) Neglecting to anchor changes firmly in the corporate culture. (Professor John Kotter)

10. Bina Nusantara University 10 SETTING THE SCENE FOR CHANGE: Continual improvement is a common philosophy in most organizations. This enables the organization to innovate. Over time, people form repetitive patterns of thought and activity that become embedded in the way they operate. The usual reaction is to work harder at doing the things that brought success in the past. To move the organization forward, the first task for top management is to convince the managers. The same principle applies to mergers. Top management must be relentless and unwavering in leading the change process.

11. Bina Nusantara University 11 THE ROLE OF CHANGE COMMUNICATION: “The only argument powerful enough to encourage people to embrace change is one that is rooted in the marketplace. If the customer insists on change, we have no alternative. To ignore the customer’s demands is to make the business irrelevant and eventually insolvent.” (Roger D’Aprix, on of the US leaders in change communication).

12. Bina Nusantara University 12 THE ROLE OF CHANGE COMMUNICATION: D’ Aprix’s strategy for market based communication involves: 1)Creating and communicating a clear and simple case for change, based on market and customer realities; 2)Clearly identifying and communicating about the market forces that the organization faces in doing business; 3)Formulating and communicating a responsive business plan; 4)Outlining the consequences of success and failure; 5)Telling and retelling—providing a constant focus.

13. Bina Nusantara University 13 ESSENTIAL TO KEEP EMPLOYEE TRUST DURING CHANGE: Research has found that people under stress. Achieving more successful outcomes during periods of change, management must focus on low-tech communication – especially face to face communication. Perception of threat is a powerful source of mental noise. To gain the advantages of trust, attitudes are based on: (1) honesty and openness, (2) competence and expertise, (3) dedication and commitment, (4) caring and empathic attitude.

14. Bina Nusantara University 14 CHANGE COMMUNICATION SHOULD IMPROVE PERFORMANCE: Change communication as the specialist part of employee communication designed to change behavior in the workplace. The communication should have one goal: To improve performance. It should change the way employees do their jobs. (expert, TJ Larkin). Too often, information is worded, intentionally or unintentionally, in the language of management. It is written in their terms—and fails to make an impact down the line.

15. Bina Nusantara University 15 COMMUNICATING MAJOR CHANGE: Larkin concludes that there three rules for successfully communicating major change to employees in large organizations: 1.Communicative directly to supervisors as the privileged receivers of information 2.Use face to face communication 3.Communicate relative performance Do not communicate major change directly to frontline employees. Do not rely on the change trickling down from middle management.

16. Bina Nusantara University 16 COMMUNICATE THROUGH FIRST-LINE SUPERVISORS: Larkin’s view about the importance of supervisors as the key communication link for frontline employees has been challenged on the basis that employees want different information from different sources. For instance, they want to hear about change issues from local senior management if the opportunity is available, employees should be surveyed to confirm their preferences, which may vary in different locations, especially in International organizations where preferences may vary from country to country.