“IF ONE DESIRES A CHANGE, ONE MUST BE THAT

CHANGE BEFORE THAT CHANGE CAN TAKE PLACE

-ANONYMOUS

CHANGE MANAGEMENT

Archana
Sahana
Gitanjali
Prithwiraj
WHY CHANGE ?

CHANGE IS THE ONLY

THING THAT WILL
NEVER CHANGE. SO
BETTER ADAPT TO IT.
 WHY PEOPLE DON’T CHANGE ?

 Changing another person is out of your

control
 We have all been “programmed”

 Physical habit

 Emotional habits

 Changes may lead to anger, hatred, jealousy

and violence
 TWO CHANGE MANAGEMENT
TRUISMS

1. We prefer the familiar to the comfortable.

2. We prefer the comfortable to the better.

So our role is
-to make ‘the better’ both familiar and
comfortable.
 CHANGE MANAGEMENT

 Managing Change is about helping people

adapt to changing practices, processes or
environments
 There are two approaches to change
management.
 THEORY E: ECONOMIC

 Dramatically and quickly improve shareholder

value
 Measured by improved cash flow or share price

 All implicit contracts between company and

employees are suspended; produce or you are
gone; failure is NOT an option
 All organizational elements are like chess pieces
on a chessboard
 Non value-add elements are especially valuable

 Top-management and ‘inner-circle’ driven

 Examples: GE under J. Welsh; IBM under L.

Gerstner
THEORY O
 Goal is to change
 Organizational culture to one supporting learning
and high performance
 Committed, capable, relatively autonomous
employee is best asset
Implicit contract can never be broken
 May be incompatible with top-down direction

 Highly participative from within the ranks

 Examples: Schwab, Merck, 3 M, Intel, Microsoft

E, O WHICH IS BEST?
 Theory E may lead to short-term gains but
 hurts long term

 Look at the IBM example

 And may backfire

 1990s downsizing did not guarantee higher

performance
 Theory O is a huge, multi-year project

 Hybrid approaches generally preferred

LEADING CHANGE AT P&G
P&G CEO Lafley makes changes that began with
previous CEO in the 1990s.
Significant changes made on structural lines.
Previous CEO, Jager, made changes using
combative style.
Corporate headquarters undergoing change.
Executives have open offices.
Division presidents’ offices located with their teams.
Changes made without alienating employees
THE CHANGE AT MCDONALD'S
 health conscious -Redefined its process to make
the product. McDonald’s responded with a
selection of salads and fruits
 more international- Norway serves the grilled
salmon McLak, Japan serves green tea-flavored
milkshakes
 Set standards for these and trained its employees
accordingly
 Redefined the “hamburger business”.
SEVEN STEPS TO CREATING CHANGE
 . Mobilize energy and commitment through
joint
 identification of problems and solutions

 . Develop a shared vision

 . Identify the leadership

 . Focus on results, not on activities

 . Start at the periphery, then let it spread

 . Institutionalize success through policies and

structures
 . Monitor and adjust as you go

 People will quit, elements will fail, the

setting may change
 RESISTANCE TO CHANGE..

 Resistance can be
 Overt
 Immediate

 Implicit

 Deferred

 Overt & Immediate – Easily Manageable

 Implicit & Deferred – Greater Challenge
 SOURCES OF RESISTANCE

 Individual Sources:

 Mindset

 Security

 Economic factors

 Fear of the unknown

 OVERCOMING RESISTANCE TO
CHANGE

 Communication
 Participation

 Counseling

 Implementing changes fairly

 Selecting the people who accepts change.

 Coersion
 FIVE WAYS TO IMPLEMENT CHANGE
SUCCESSFULLY
1. Understand common reactions to change
2. Leverage the involvement of key stakeholders
and opinion leaders.
3. Over-communicate the plan.
4. Monitor the change and seek feedback.
5. Your business as an organism… not a machine.
Thank you