Types of Changes

Hard Changes (eg. Process, Information Systems, Structure) Soft Changes (Values, mindset, culture) Revolutionary (Dramatic Changes like BPR) Evolutionary (Incremental Changes like Kaizen) Accidental Change Planned Change

Doze of Change and Motivation

One day a farmer's donkey fell down into a well.The animal cried piteously for hours as the farmer tried to figure out what to do. Finally, he decided the animal was old, and the well needed to be covered up anyway; it just wasn't worth it to retrieve the donkey.

Story Continues ..
He invited all his neighbors to come over and help him. They all grabbed a shovel and began to shovel dirt into the well. At first, the donkey realized what was happening and cried horribly. Then, to everyone's amazement he quieted down.

What donkey did!

A few shovel loads later, the farmer finally looked down the well. He was astonished at what he saw. With each shovel of dirt that hit his back, the donkey was doing something amazing. He would shake it off and take a step up. As the farmer's neighbors continued to shovel dirt on top of the animal, he would shake it off and take a step up. Pretty soon, everyone was amazed as the donkey stepped up over the edge of the well and happily trotted off!

Moral
Life is going to push you in a deep well & shovel dirt on you, all kinds of dirt. The trick to getting out of the well is to shake it off and take a step up. Each of our troubles is a steppingstone. We can get out of the deepest wells just by not stopping, never giving up! Shake it off and take a step up.

The Change Management Process Model

Reactions to Change
Peoples reactions are based on past experiences and their perceptions of the change Most people do not resist change but resist the perception that it is being forced upon them People resist change when their personal interests are hurt or they seem to be hurt.

Resistance to Change / Welcome Change

Security Pride and satisfaction Friends and important contacts Freedom Responsibility Authority Good working conditions No need for change More harm than good Lack of respect Objectionable manner No input Create burdens or add more work The peer pressure

Resistance to Change / Welcome Change

Personal attitudes and personal impact Financial reasons Inertia / Status Lack of recognition of need Insufficient need Fear of the unknown Lack of trust Revenge Surprise Poor timing Poor approach Misunderstanding Absent benefits

Resistance to Change Evidenced

Absenteeism Decreased productivity Regression Resignation Transfer Sabotage

A Step-by-Step Change Model

1. Determining the need or desire for change. 7. Implementing the change 2. Preparing tentative plans.

6. Communicating the change

3. Analyzing probable reactions.

5. Establishing a timetable.

4. Making a final decision.

Empathy
Definition of Empathy is, Putting yourself in the shoes of other person. An Indian saying is, Do not criticize a person until you have walked in his moccasins What is the difference between empathy and sympathy?

Empathy
What is the most important quality of a fisherman? In managing change, the first key is to KNOW to what extent the change will be resented or rejected on one hand and accepted or welcomed on the other hand. This could be possible to know in advance by exercising empathy.

Empathy
Procedure of empathizing is: Develop Know Factor Develop Empathy Worksheet Analyze for Empathy regarding change ACTIVITY
Can you empathize your colleague/partner what would be his/her reaction if you ask him/her for combined studies or go for shopping/picnic or donate blood?

Communication
To make ideas common in such a manner that we get desired response/results.

Communication is one of the keys to the management of change. It is more than telling and means creating understanding

Communication
What is communication model and where barriers can be possible?

Sender Barriers
Sender does not know enough about the receiver. Sender has a negative attitude toward the message and does not want to communicate it. Sender has a negative attitude toward the receiver. Sender has a negative attitude toward communicating and does not care whether receiver understands or not Sender fails to get the attention and interest of the receiver. Sender has poor communication skill. Sender picks the wrong time

Sender Barriers
Sender uses the wrong method Sender chooses the wrong place Sender uses vocabulary that is not clear to the receiver Sender uses negative tone Sender is in a hurry Sender fails to verify whether receiver understands.

Receiver Barriers
Receiver is preoccupied with something more important Receiver does not like or respect the sender Receiver is not interested in the message Receiver knows what the message is going to be (or thinks he does) Receiver does not want to understand the message as it may be unpleasant Receiver has emotional barrier such as fear, anxiety, anger and frustration

Receiver Barriers
Receiver is physically tired Receiver is thinking about what to say when the sender finishes Receiver does not understand English (any language) Receiver pretends to listen when they do not listen Receiver pretends to understand when he does not understand.

To Whom and When?

Who should be told about change? The obvious answer is those who need and want change. In other words those who are concerned and involved in change. When is difficult answer unless we use the phrase whenever practical

How to communicate?
There are two ways of communication; oral and written. USE ORAL COMMUNICATION WHEN: The receiver is not particularly interested in getting the Message It is important to get feedback Emotions are high The receiver is too busy or preoccupied to read Criticism of receiver is involved The sender wants to persuade or convince

How to communicate?
Oral is more natural Discussion is needed The receiver can not read the language of the sender USE WRITTEN COMMUNICATION WHEN: The sender wants a record for future reference The receiver will be referring to it later The message is complex and requires study by the receiver. The message includes step-by-step procedure A copy of the message should go to another person

Participation
Case:
In 1958, there was a mens apparel manufacturing Company. Top management wanted to changeover from batch process to the continuous flow process. Despite good labor-management relations, there was a long history of resistance to change. There were 800 employees in three plants. Question: How a strategy is developed and implemented.

Need for Participation

An effective participative program must be based on a philosophy that the input of employees can contribute to the effectiveness of an organization, as well as achieve quality of work life and personal satisfaction for the Employees.

Participation and Decision Making

There are four approaches. 1. The manager decides without any input and informs subordinates of the decision 2. The manager asks for input from subordinates (either individually or as group), considers the input, then decides and informs subordinates of the decision. 3. The manager conducts a problem-solving conference with subordinates to reach a consensus on the decision. 4. The manager empowers the subordinates to make the decision. Question: Which approach is the best one.

When of Participation
Assumption is you have decided to make a radical change in your department: A. From the beginning, tell your subordinates some of your thoughts including the need for the change and get their reactions. B. Make a tentative plan and ask your subordinates for their reactions and comments. C. Prepare a final plan and sell it to your subordinates by explaining the need for the change and how you arrive at the final plan. Question: Which alternative gets more input?

Cautions to Consider
Participation management is not a panacea for solving all problems and for making everybody happy. Participation is something that the top orders the middle to do for the bottom. This approach will certainly fail. While Nissan establishing a plant in US, top management stated that they will get rid of any manager who does not believe and practice the company philosophy of participative management. This becomes an important criterion in both selection and promotion.

Cautions to Consider
The question of whether participation should be voluntary or mandatory must be carefully considered. People vary in their desire to participate.

CASE
MOVING INTO A NEW MANAGERIAL JOB Read the case and present as per following Instructions: Background of Case Problem Identification Change Methodology Implementation Strategy

Culture
Some questions are related with culture:
What is culture? How culture can be developed? Can culture be managed? What is the significance of culture in business? What is the significance of culture in change management? How change can be the part of culture?

Culture
The function of culture management during a process of change is to implement and sustain changes.

CULTURE SCREEN
Rules and Policies Goals and Measurement Customs and Norms Training Ceremonies and events Management Behaviors Rewards and Recognitions Communications Physical environment Organization Structure QUESTION: * Do these elements have some connectivity with org. culture?

Culture
Activity
Take one example. A retail organization, for instance Makro, wants to change (improve) customer service in comparison with the competitors. Can this change be made the part of culture or sustain in organization for longer period of time? If yes, how? (Hint: Can culture screen be used)

Culture
Identify implementation actions of culture screen elements that require changes. Measure the impact. (Periodic measurement,
tracking progress, achievements of goal)

Continue to manage cultural components to reinforce change

CASE 2
ESTABLISHING VARIABLE WORK HOURS Read the case and present as per following Instructions: Background of Case Problem Identification Change Methodology Implementation Strategy

LEADERSHIP
What is leadership? What is role of leadership in change management? Is leadership responsibility of top management? Give examples of leaders who brought changes in any walk of life. What is the difference between Relationship and Position Power What are the traits required for a leader to acquire and exercise in change situations?

LEADERSHIP
Key attributes are:
Creativity Team Orientation Listening Skills Coaching Skills Accountability Appreciativeness

Change Implementation Model

Change Implementation models starts working for implementation at grass root level at either pilot testing or roll out stage.

Steps of Change Implementation Model 1.Set Goals 2.Measure Performance 3.Provide Feedback and Coaching 4.Be Generous with Rewards and Recognition

Activity
How goals are set? Answer the steps and procedure of it in group.

Goal Setting
Guidelines for effective goal setting are:
1. Keep it short and simple 2. Create goals at grass root level that are aligned with goals of strategic level. 3. Make goals achievable 4. Make goals challenging 5. Involve the team in goal setting process 6. Set a time line 7. Establish right away; Whats in it for me?

Measure Performance
Performance needs to be measured against the set goals. There are two important reasons of performance measurement. 1. Measurement provides a way to track progress. 2. To determine when goals have been achieved. Activity: Design a performance measurement system in group.

Guidelines for Effective Measurement

1. 2. 3. 4. Set specific and numeric expectations. Keep it simple Be creative Involve people in designing their own measurement 5. Determine the frequency of the measurement 6. Determine who will be responsible for keeping score

Feedback & Coaching

What is feedback? What is the need of feedback? What is, if there is no feedback? How feedback should be taken or given? What is the role of feedback in change management?

Activity
If you are given an assignment of coaching anyone, how will you coach him/her? Assume necessary information and answer in steps and what things you must consider or care of?

Effective Guidelines of Coaching

Before coaching anyone, establish up front that coaching will take place with everyone. Make coaching timely. Do your best to make people feel comfortable enough to be coached. Do not criticize. Keep it simple and informal Choose an appropriate time and location without interruptions. Be specific and keep it balanced Be empathetic Encourage team members to coach one another about changes they are making.

Be Generous with Rewards & Recognition

What are rewards and recognition and are they same? What would you prefer; reward or recognition for anything good you do? What is the role of empathy in finding what one needs; reward or recognition?

Guidelines for R&R

Directly link to rewards and recognition to performance Involve people in designing rewards. Try to make rewards and recognition fair for everyone. Be creative Make rewards and recognition equal to the efforts required to achieve the goals. Make rewards and recognition timely. Make rewards and recognition public and keep your team aware of them. Communicate success once change goals are achieved. Offer a few well-placed words of praise and appreciation. Remember the magic words, THANK YOU

The Dimensions of Change

Types of change Structural change Cost cutting Process change Cultural change

The Dimensions of Change

Theory E change aims for a dramatic and rapid increase in shareholder value. It is driven from the top of the organization and makes heavy use of outside consultants. Theory E relies heavily on cost cutting, downsizing, and asset sales to meet its objectives Theory O change aims to create higher performance by fostering a powerful culture and capable employees. It is characterized by high levels of employee participation and flatter organizational structure, and attempts to build bonds between the enterprise and its employees. Unlike Theory E, this approach to change is a long-term proposition.

The Dimensions of Change

Which is best or most appropriate?

Are you change ready?

Launching a change initiative is not likely to succeed if the organization is not change ready.

Activity
How an organization can be made change ready and what benefits an organization can derive from it?

Are you change ready?

The organization has effective and respected leaders. People in the organization are personally motivated to change. The organization has nonhierarchical structure.

Becoming change ready

Do a unit-by unit change readiness assessment Develop more participative approaches to how everyday business is handled. Give people a voice