CHANGE

MANAGEMENT

Change & Change Management.

Adoption of a new idea or behavior by an
organization.
Organizations need to continuously adapt to
new situations if they are to survive and
prosper
Constant change keeps organizations agile
Indicative of learning organizations

BUT when you say Change,they

say:
This is a waste of time.
Why change if it was working just fine before?
If it isn't broken, don't fix it.
They never tell us whats going on!
How soon will this happen?
How will this impact me?
Will I receive new training?
Whats in it for me.
I doubt they are really serious about this.

Shifting
Demographics
World
Politics

Technology

Forces For
Change

Globalization
Competition

Economic
Shocks

Technology
Introduction of computers, cell phones are
now considered as necessitiy
E.g., music industry facing the challenge
of online music sharing
Deciphering of genetic code offers
potential for pharmaceutical companies to
produce drugs designed for specific
individuals

Competition
Global economy
Mergers and consolidations
Growth of e-commerce

Social Trends

Popularity of internet
Increase in no. of women in workforce
Consumer preferences changing
Brand awareness has increased
Rise in discounts

Nature of workforce
More cultural diversity
Educational level
New entrants with knowledge and skills

World politics
EXERCISE TO DO
What major changes have been brought
In world politics in past 10 years that had a
major impact on the way companies run?
Study one example for each factor of
change.

ORGANIZING FOR CHANGE

Doing the right things
Leadership

How you achieve

your goals

Who is responsible
Structure for what

Strategy

Purpose
shared vision/
values/goals
Culture
Underlying
assumptions
that drive behavior

Organizatio
n
systems

Workforce

Capacity and capabilities of

the people who do the work

Ongoing
processes

Four Roles in Organizational

Change
Inventor
Develops and
understands
technical aspects of
ideas
Does not know how
to win support for
the idea or make a
business of it

Champion
Believes in idea
Visualizes benefits
Confronts
organization
realities of cost,
benefits
Obtains financial
and political
support Overcomes
obstacles

Sponsor
High-level
manager
who removes
organizational
barriers
Approves and
protects idea
within
organization

Critic
Provides reality
test
Looks for shortcomings
Defines hardnosed
criteria that idea
must pass

TYPES OF CHANGES

Types of Changes:
1) Planned
2) AccidentalOrganizational
Change
Planned
PlannedChanges
Changes
Changes
Changesin
inproducts
productsand
and
services
services
Changes
Changesin
inadministrative
administrative
systems
systems
Changes
Changesin
inorganizational
organizational
size
sizeor
orstructure
structure
Introduction
Introductionof
ofnew
new
technologies
technologies
Advances
Advancesin
ininformation
information
processing
processingand
and
communication
communication

Accidental
AccidentalChanges
Changes
Changing
Changingemployee
employee
demographics
demographics
Performance
Performancegaps
gaps
Governmental
Governmentalregulations
regulations
Economic
Economiccompetition
competitionin
inthe
the
global
globalarena
arena

Types of Planned Changes

Two Types
Operational Change
based on efforts to improve basic work and organizational processes

Transformational Change
involves redesign and renewal of the total organization

Planned change
Change activities that are intentional and
goal oriented
First order change
Linear and continuous, no major shifts
(small QIPs)
Second order change
Multidimensional, multilevel, discontinuous
and radical (e.g., drastic cutting down of
cost/ inventory level)

CONTINUOUS/INCREMENTAL
CHANGE
Greiners model: views change as growth
One of life cycle theories
Evolution revolution evolution
Each phase of continuous growth gives rise to new
crisis: leadership crisis, control crisis, red tape crisis,
revitalisation crisis
Lessons for managers:
- know where you are in the developmental context
- you have a limited range of solutions for a specific
crisis
- realise that solutions breed new problems

Tushman, Newman and Romanelli

Organisation is in equilibrium where there is
perfect alignment between
Structure Strategy External environment
Organisations experience two types of
changes
Incremental change/Convergence
Discontinuous chane/ Frame breaking
change

Incremental Change
Minor changes made in strategies, structures, people
and processes
Include
- refining policies, procedures
- creating specialised units and linking mechanisms to
improve efficiency
- improving selection, training and appraisal procedures
- promoting organisational commitment
- clarifying role, status , power and procedures
- expanding sales territory
-introducing new machinary

HUMAN SIDE OF IT.

Change is fundamentally about feelings. It
needs peoples heads and hearts together.
Winning Attitudes do make a difference,
and it is important to market new ideas
and approaches within the organization
very carefully.

Lewins 3 step Change

process.

Unfreezing

Changing

Refreezing

Unfreezing Old behavior creates motivation to learn.

Lewins Three-Step Process

The first step, unfreeze involves the
process of letting go of certain restricting
attitudes during the initial stages of an
outdoor education experience.
The second step, "change" involves
alteration of self-conceptions and ways of
thinking during the experience.
The third step, "refreeze" involves
solidifying or crystallizing the changes into
a new, permanent form for the individual

Unfreezing Techniques
people are taken from a state of being unready to
change to being ready and willing to make the first
Burning platform: Expose or create a crisis.
step.
Challenge: Inspire them to achieve remarkable
things.
Evidence: Cold, hard data is difficult to ignore.
Education: Learn them to change.
Management by Objectives (MBO): Tell people
what to do, but not how.
Visioning: Form Visions. Visions work to create
change.

Burning Platform
Show how staying where you are is not an
option, and that doing nothing will result in
disaster.
Look for a crisis that you can highlight.
They are often lurking nearby, forlorn and
unnoticed.
You can also engineer your own
crisis that forces change.

Challenge
Stimulate people into change by
challenging them to achieve something
remarkable. Show confidence in their
ability to get out of their comfort zone and
do what has not been done before.
Once the group has bought the challenge,
then they will bounce off each other to
make it happen.

Evidence
Find evidence that supports the need for
change.
Use data and statistics to create
impressive graphs and charts.
Cold, hard evidence is a good way of
changing minds as counter-arguments
require better data.

Education
Teach people about the need for change
and how embracing change is a far more
effective life strategy than staying where
they are or resisting.
Teach people the methods of change,
about how to be logical and creative in
improving processes and organizations.

Management by Objectives
(MBO)

Set formal objectives for people that they

will have to achieve, but do not tell them
how they have to achieve this.
Give people objectives that they can only
achieve by working in the intended
change.
Give them relatively free rein in
how they go about achieving the
objectives. Encourage them to
'look outside the box' for
creative new ways of achieving
the objective.

Vision
Create a motivating vision of the
future.
Share it with others.
Live it until it comes true.
Visions work only when they act to motivate and inspire
the large numbers of people that are needed to make the
change happen.
For the vision to be motivating, then it must be
memorable.
For it to be memorable, it must be exciting and short.
To be believed, it must be a regular part of the
conversation of senior people.

Changing Techniques
Once you have unfrozen the people, the next
question is how you keep them going.
Coaching: Psychological support for executives.
Facilitation: Use a facilitator to guide team
meetings.
First steps: Make it easy to get going.
Involvement: Give them an important role.
Open Space: People talk about what concerns
them.
Step wise change: Break the work into
packages.

Coaching
When you have individual people who are
having difficulty in managing to adapt to
change, be a Coach to them.
Coaching helps explore deeper
motivations and beliefs about other
people, and find practical ways to change
these.

Facilitation
Use skilled facilitators (HR) to support
change activities.
Facilitators can be used to guide various
group events, from brainstorming and
planning to improvement projects and
change activities.
Facilitators can also act as team coaches,
helping people to improve within
themselves and work together in better
ways.

First Steps.
Actually starting something is often the
hardest thing. The Greek poet Horace
said, He has half the deed done who has
made a beginning.
Make the first steps of change particularly
easy. Make them the most obvious thing
to do.
Then make the next steps easy that it
takes away all reasonable objections to
enacting it.

Involvement

Get them involved in the change.

Invite them to participate in discussions.
Give them things to do.
When people are a part of something, they
bond with it, making it a part of their
identity.

Open space

'Open Space' (or, more fully, Open Space Technology, or OST) is a

simple but very useful way of getting people to openly discuss issues
that are of concern to them.
It started when Harrison Owen was running conferences and found
that people preferred talking to others during the breaks than listening
to speakers. He then began running conferences without speakers.
The underlying philosophy is that trying to control a naturally chaotic
universe just makes things worse. If you want people to collaborate,
the basic principle is to bring them together and then get out of the
way. For managers and facilitators this can be a very difficult part of
the Open Space process. Yet the most successful Open Spaces are
managed with but a very light touch.
In change, this is useful for getting people talking together. For
example, you can use it to get people to talk about their fears and
concerns.

Stepwise Change
Have clear steps in the change. Break the
work into distinct packages and talk about
each separately.
Communicate about the change not as a
single, but as a set of activities, each of
which gains specific value.
Celebrate the Milestones.

Refreezing techniques
people are taken from a state of being in transition
and moved to a stable and productive state

Burning bridges: Ensure there is no way

back.
Evidence stream: Show them time and
again that the change is real.
Institutionalization: Building change into
the formal systems and structures.
Reward alignment: Align rewards with
desired behaviors.
Socializing: Build it into the social fabric

Burning the bridges

When changes are instituted, it is not
uncommon for people to seek ways to go back
the old way of working, hence ensure that there
is no way back to previous ways of working.
'Burning bridges' is a deliberate way of
preventing any backsliding by removing any
method by which people can go back.
Managers who may be not fully committed to the
change are now strongly motivated to continue.

Evidence Stream
Get people to accept that a change is real by providing
a steady stream of evidence to demonstrate that the
change has happened and is successful.
Communicate through a range of media. Get people
who have been involved to stand up and tell their
stories of challenge and overcoming adversity.
Evidence is a powerful tool for persuasion, particularly
when people are doubtful whether something is real.
This is particularly powerful when presented by people
who are trusted by the audience for the information.
A steady stream of evidence is needed because people
are not always convinced by a few pieces of early
evidence.

Institutionalization
Make changes stick by building them into the formal
fabric of the organization.
Make them an organizational standard, building them
into the systems of standards.
Put them or aspects of them into the primary strategic
plan.
Build them into people personal objectives.
Ensure people are assessed against them in personal
reviews.
The formal systems and structures within the
organization are those which are not optional. People
do them because they are 'business as usual.

Reward Alignment.
When you make a change, ensure that
you align the reward system with the
changes that you want to happen.
The saying 'Show me how I'm paid and I'll
show you how I behave' is surprisingly
common.

Socialize.
Seal changes by building them into the
social structures.
Give social leaders prominent positions in
the change. When they feel ownership for
it, they will talk about it and sell it to
others.