Managing Change Process, Types and

Challenges

Dr. G C Mohanta, BE, MSc(Engg), MBA,

PhD(Mgt)
Professor
 Change
Management
Change managementis an approach
to shifting or transitioningindividuals,
teams & organisationsfrom a current
state to a desired future state.
Change management is the process,
tools & techniques to manage the
people-side of change to achieve the
required business outcome(s)
 Change Management Process
The change management process is the
sequence of steps or activities that a change
management team or project leader would
follow to apply change management to a
project or change.
Change management processes contain the
following three phases:
Phase 1 - Preparing for change
Phase 2 - Managing change
Phase 3 - Reinforcing change
Process
 Change Management Process
1) Preparing for change
(Assessment)
Identifying the problem: Opportunity that
necessitates change (symptoms)
Data collection: Gathering structural, technological
and people information and effects of these elements
on the process
Data analysis: Summarizing the data ( advantages,
dis-advantages, risks, and consequences)
Strategic determination: Identifying possible
solutions, barriers, strategies
Decide if the change is necessary.
Make others aware of the need for the change.
Swat analysis and basic 4 forces models:
(environmental forces ,organizational forces , task
demand , personal need.)
Change Management Process (Contd.)
2) Managing change (Planning and
Implementation)
State goal and specific measurable objectives and also
the time allotted.
Establishing the who, how, what, and when of change.
Allocating resources, budget and evaluation methods.
Plan for resistance management.
Identify areas of support & resistance.
Include every one in the planning that will be affected.
Establish target dates for implementation.
Develop appropriate strategy for alteration.
Be available to support others through the process.
Evaluate the change then modify if necessary.
 Change Management Process
(Contd.)
3) Reinforcing change (Evaluation)
Determining effectiveness of change.
Achieved objectives and benefits -
qualitative as well as financial and the
documented evidences of being achieved.
Stabilize the change: - taking measures
to reinforce and maintain the change.
 Kurt Lewins Change Management Process
Lewin provides a social-psychological view of
the change process.
He sees behavior as a dynamic balance of forces
working in opposing directions .
Driving forces facilitate change because they
push persons in the desired direction .
Restraining forces impede change because they
push persons in the opposite direction.
Status quo level is the person balanced state or
state of equilibrium between 2 forces.
Kurt Lewins Change
Management Process
 Unfreeze
The existing equilibrium. Motivate persons by
getting them ready for change and increase
willing to change .
Build trust and recognition for the need to
change.
Actively participate in identifying problems and
generate alternative solutions.
Is the development through problem
awareness of a need for change.
 Moving
Work toward change by identifying the
problem or the need for change.
Explore the alternatives,
Defining goals & objectivities
Plan how to accomplish the goal &
Implement the plan for change.
Get persons to agree that the status quo is
not beneficial to them.
 Refreezing
Does the integration of the change
happened into ones personality &
consequently stabilization of the change
happened?
Then reinforce the new patterns of
behavior. (Positive change)
New level of equilibrium.
Frequently person tries to return to old
behavior after the change effort ceases.
(Negative change)
Steps For Successful Change management
Increase urgency : inspire people to move
Build the guiding team : the right people
Get the vision right : simple vision and strategy
Empower action : Remove obstacles
Create short-term wins : Set aims that are easy
to achieve
Don't let up : highlight achieved and future
milestones
Make change stick : Weave change into culture
 Types of Change
There are two types of change in an organization:
- Planned change and
- Emergent change
Planned change - refers to initiatives
that are driven top-down in an
organization.
Emergent change - refers to a situation
in which change can originate from any
level in the organization.
Areas of Change in an
Organisation
Strategic
Structural
Process-oriented and
People-centered
 Strategic Change
Sometimes in the course of normal business operation
it is necessary for management to adjust the firm's
strategy to achieve the goals of the company, or even
to change the mission statement of the organization in
response to demands of the external environments.
Adjusting a company's strategy may involve changing
its fundamental approach to doing business: the
markets it will target, the kinds of products it will sell,
how they will be sold, its overall strategic orientation,
the level of global activity, and its various partnerships
and other jointbusiness arrangements.
 Structural Change
Organizations often find it necessary to redesign the
structure of the company due to influences from the
external environment.
Structural changes involve the hierarchy of authority,
goals, structural characteristics, administrative
procedures, and management systems.
Almost all change in how an organization is managed
falls under the category of structural change.
A structural change may be as simple as
implementing a nosmoking policy, or as involved as
restructuring the company to meet the customer
needs more effectively.
 Processoriented
Change
Organizations may need to reengineer
processes to achieve optimum workflow and
productivity.
Processoriented change is often related to an
organization's production process or how the
organization assembles products or delivers
services.
The adoption of robotics in a manufacturing
plant or of laserscanning checkout systems at
supermarkets are examples of process
oriented changes.
 Peoplecentered
Change
This type of change alters the attitudes, behaviors,
skills, or performance of employees in the company.
Changing peoplecentered processes involves
communicating, motivating, leading, and interacting
within groups.
This focus may entail changing how problems are
solved, the way employees learn new skills, and
even the very nature of how employees perceive
themselves, their jobs, and the organization.
Some peoplecentered changes may involve only
incremental changes or small improvements in the
process.
 Reasons for Change
Facing increased competition
Smarter and more demanding customers
Less brand loyal
Improvements in operations can
simultaneously lower costs and improve
customer satisfaction.
Improving operations often dependent on
advances in technology
Challenges in Change Management
Planning
Without step-by-step planning, change in an
organization is likely to fall apart or cause more
problems than benefits.
One need to understand exactly what changes will take
place and how those changes will occur.
One need to know if the new system is compatible with
the old system.
One also need to assign roles to individuals who are
responsible for the change so all duties are covered.
The time line for the change is also a key component.
One need to plan for downtime or difficulties in
completing regular work tasks while the change occurs.
Challenges in Change
Management (Contd.)
Lack of Consensus
If one fails to get everyone on board with the corporate
changes, one is likely to face barriers during the process.
The decision to implement changes should come from the
top level of the organization.
All management level staff needs to be on board and able
to deal with the changes or one may face dissension within
the staff.
One may not have everyone on board right from the
beginning.
Showing managers how the changes will affect the
company and the steps for implementing the changes
helps get them on board if they initially have reservations.
 Challenges in
Change Management
(Contd.)
Communication
Failing to communicate with all employees invites rumours and
fear into the workplace.
Employees want to know what's going on, whether it is positive
or negative news.
The feeling of uncertainty, when management doesn't
communicate, disrupts work and makes employees feel as if
they aren't a part of the decision.
Management should keep employees updated regularly about
the plans & progress toward the change implementation.
Management should involve all employees as much as possible
through meetings or brainstorming sessions to help during the
planning phase.
 Challenges in
Change Management
(Contd.)
Employee Resistance
In some cases, employees resist change.
They become comfortable with the way the
business is run.
They know the expectations and their role
within the company.
When a major change disrupts their
familiarity, some employees become upset.
They don't want to relearn their jobs or
change the way they do things.
Causes for Resistance to Change
Lack of trust
Perception that change is not necessary
Perception that change is not possible
Relatively high cost
Fear of personal failure
Loss of status or power
Threats to values and ideas
Social, cultural or organizational
disagreements
Resentment of interference
Handling Resistance to Change
Supporting employees and providing training
for any new responsibilities
Leadership Commitment
Knowledge of Change
Effective Communication
Active Participation
Building the Requisite Technical Capacity
Coercion
Negotiation
 Benefits of Successful Change
Management
Enhances institutional best practices
Projects the organization as progressive,
forward looking and proactive
Ensures quality service delivery
Earns the institution public goodwill and
support
Creates an enabling work environment
Increases employee morale, attitudes and
effectiveness