Management Change by clickmyadspleaseXOXO

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									Opening Thoughts
“The future just ain’t what it used to be.”
Yogi Berra

“A competitive world has two possibilities for you. You can loose. Or, if you want to win, you can change.” Lester C. Thurow “Change is the law of life. And those who look only at the past or present are certain to miss the future.” John Fitzgerald Kennedy “The best way to predict the future is to create it.” Peter Drucker

Change is Risky
About 90% of business process reengineering initiatives fail to produce breakthrough results. Abut 30% of all mergers and acquisitions fail outright, while most fail to realize expected synergies Fewer than 50% of all companies undergoing restructuring, de-layering, or downsizing realize lower costs or higher productivity as a result of those changes

Forces For Change
Proactive Change versus Reactive Change External Environmental Factors
The competitive marketplace STEPP: Social, Technical, Economic, Political/Legal, Physical environments

Change of strategy Workforce changes Equipment/process changes

Success Breeds Failure
…the successful organization gradually looses touch with present realities, gathers behavior inertia, and risks disaster by inadvertently choosing or creating a future situation that verges on stagnation. Social and technological changes are not seen, are underestimated or are interpreted as combatable threats; obsolescence accumulates, developing opportunities are not pursued, and no efforts are made to beget desirable opportunities.
– Starbuck and Hedberg, 1997

Understand Corporate Culture
External Environment
Complacent to longtime market dominance Slow response to changing customer tastes Competition from off shore manufacturer Overnight product and market competition.

Internal Management
Stay alert to competitive change. Develop new technologies Conduct damage readiness assessment

Areas of Change
Changing Strategy Changing Structure and Design via mechanisms like span of control, combining departments, removing vertical layers, increase standardization, increase decentralization, move to team-based structure, job simplification, job enhancement, etc. Changing Technology and Operations via new equipment, tools, operating methods, sociotechnical systems, information technology, etc.

Areas of Change (con.)
Changing people includes changing values, attitudes and behaviors of:
Individuals Groups Organization

Changing the physical setting such as space configurations, interior design, equipment placement etc. affects work demands, formal interaction requirements, social needs, etc.

Lewin’s Organizational Change Model
Successful change in organizations follows three steps:
Unfreezing the status quo Movement to the new desire state Re-freezing the new change to make it permanent

Force Field Analysis: helps change agents diagnose the forces that drive and restrain proposed organizational change.

Driving forces direct behavior away from status quo Restraining forces hinder movement from status quo

Force Field Analysis
Driving Forces Restraining Forces

Theory of Change for Developing Fit and Fitness
Change = D x M x x P > Cost D = Dissatisfaction with the status quo M = Model/Vision of future state P = High involvement process for developing D and M Cost = Potential losses people expect from change

Leading Change
John P. Kotter

Establishing a Sense of Urgency
Examining market and competitive realities Identifying and discussing crises, potential crises, or major opportunities

Forming a Powerful Guiding Coalition
Assembling a group with enough power to lead the change effort Encouraging the group to work together as a team

Creating a Vision
Creating a vision to help direct the change effort Developing strategies for achieving that vision

Leading Change
John P. Kotter

Communicating the Vision
Using every vehicle possible to communicate the new vision and strategies Teaching new behaviors by the example of the guiding coalition

Empowering Others to Act on the Vision
Getting rid of obstacles to change Changing systems or structures that seriously undermine the vision Encouraging risk taking and nontraditional activities and actions

Leading Change
John P. Kotter

Planning for and Creating Short-Term Wins
Planning for visible performance improvements  Creating those improvements Recognizing and rewarding employees involved in the improvements

Consolidating Improvements & Producing More Change
Using increased credibility to change systems, structures, and policies that don't fit the vision Hiring, promoting, and developing employees who can implement the vision

Leading Change
John P. Kotter

Consolidating Improvements & Producing More Change (Cont.)
Reinvigorating the process with new projects, themes, and change agents

Institutionalizing New Approaches
Articulating the connections between the new behaviors and corporate success Developing the means to ensure leadership development and succession

Six Organizational Sources of Resistance to Change
Over determination:existing organizational systems are in place to ensure employees and systems behave as expected to assure stability. Changing them is difficult, and can lead to structural inertia. Narrow focus of change: If the focus is too narrow it may not take into consideration the interdependencies among organizational elements such as people, structure, tasks, and the information system. Resource allocation: Groups may resist change which they feel will threaten future allocations.

Organizational Resistance (con.)
Group inertia: Group norms may act as a brake on individual attempts at behavior change. Threatened expertise: A change may threaten individual and group expertise. A specialized task could be shifted to another person or group threatening the specialist’s expertise. Threatened power: A redistribution of decisionmaking authority, as through reengineering, team based management, etc. may threaten power relationships with others.

Six Sources of Individual Resistance
Habit: It is easier to do something in the same way than learn new steps. People prefer easier work for the same amount of pay. Security: People tend to resist change if they feel their security is threatened. Economic factors: Fear of loss of jobs or levels of pay, or perceptions that promotions will be more difficult to earn lead to resistance.

Individual Resistance (con.)
Fear of the Unknown: Some are risk adverse and may fear, and therefore resist, anything unfamiliar. Lack of Awareness: People may pay attention only to things that support their point of view, and hence may not recognize a change in rules or procedures, thereby resisting change. Social factors: People can resist change for fear of what others may think. Groups can be powerful motivators of behavior. Employees may believe change will hurt their image, result in ostracism, or just make them “different”. Loss of face.

Problems Raised by Change
(Based on a training program by Mercer Delta)

Intensified nonproductive political activity stimulated by changes in the informal organization

Dysfunctional responses by individuals to the uncertainly and potential threat posed by change

Loss of managerial control as the current state is disassembled before the future state is in place

(Based on a training program by Mercer Delta)

Action Implications

Problem: Power
Action: Shape political dynamics
Build support with key power groups
• • • • • Participation Persuasion Incentives Isolation “Ventilation”

Employ leader behavior to create support
• Envisioning • Energizing • Enabling

Use symbols and language

Action Implications
Problem: Anxiety


Action: Motivate constructive behavior
Create dissatisfaction with the status quo Build participation in planning and implementing change Reward required new behaviors Provide time and opportunity to disengage from the current state

Action Implications
Problem: Control
Action: Manage the transition


Develop and communicate a clear image of the future state Use multiple leverage points to achieve change (See next slide) Employ transition management structures
• • • • • Transition plan Transition manager Transition team Transition time Transition resources

Collect and analyze feedback data

The Tyranny of the “OR”
(Built to Last by Collins and Porras

 You can have change OR stability  You can be conservative OR bold  You can have low cost OR high high quality  You can have creative OR consistency & control  You can invest for the future OR do well in the short term  You can make progress by methodical planning OR by opportunistic groping  You can create wealth for your shareholders OR do good for the world  You can be idealistic (value driven) OR pragmatic (profit driven

Managing Resistance to Change
Participation: “That which we create, we support” Education and Communication:Communication about impending change is essential, not only the details, but also the rationale behind the change. Empathy and Support: Helps employees deal with the natural adjustment issues which accompany change. Facilitation: Addresses the resources needed to effectuate the change. Negotiation Manipulation and Co-optation Explicit and implicit coercion

Managing Resistance to Change
Education and communication Participation and involvement Facilitation and support

When to use
When there is a lack of information and fear of the unknown When managers do not have all the necessary information or when others have power When people are resistant because of adjustment factors

Managing Resistance to Change
Negotiation and agreement

When to use
When there can be winners and losers and different groups have considerable power When nothing else works or other options are too expensive and timeconsuming When there is no time and managers have considerable power

Manipulation and cooptation Explicit and implicit coercion

Selecting a Path for Change
Amount and type of resistance expected Power of resisters Location of needed information and commitment Stakes involved Short and long term effects

Transition Curve








First: Denial
You See:
Avoidance Going through the motions Only routine work Exaggerated hardiness

You Hear: Silence “Everything’s okay.” “What’s the fuss about?” “I don’t want to talk about it.”

First: Denial
Typical Reactions:
Change “shocks” people and is perceived as a threat. People become immobilized and deny a change is happening. Productivity is low. People appear slower in their thinking, distracted, and forgetful.

Effective Actions:
Give visible support and provide new information consistently and repeatedly. Help people build support networks with each other and encourage expression of feelings and reactions. Clearly communicate new directions and expectations. link to benefits, rewards, resources, etc.

Second: Resistance
You See:
Accidents Mistakes Careless or sloppy work Anger Low energy, listlessness Difficulty concentrating

You Hear:
Complaining “This will never work.” “It’s unfair.” “This is stupid.” “This never should have happened.”

Second: Resistance
Typical Reactions:
People express various reactions - anger, depression, withdrawal,etc. They attempt to hold on and maintain old, familiar ways. They will try to “bargain” to do things the “old” way - will get angry/frustrated and then apologize for their bad attitude. People/organizations can get stuck or recycle back to Stage 1 with each new change piece. Help people to identify what they are holding onto, and how to maintain or let go of it in new situations. Identify areas of stability: what is not changing. Ask “what’s risky” and “provide safety” in response to discomfort with risk taking.

Effective Actions:

Third: Exploration
You See:
Chaos Poor time management Endless training Taking excessive risks Endless preparation

You Hear:
Enthusiasm “Let’s try it another way (again).” “I’ve got another idea.”

Third: Exploration
Typical Reactions:
Although people express grief/sadness over loss, they begin to acknowledge and see the value of change. People are willing to listen to/explore new possibilities.

Effective Actions:

Involve individuals and teams in exploring alternative options and planning activities. Employ a thoughtful, participative approach to decision making. Ensure that systems and norms support new behaviors required for the change.

Fourth: Commitment
You See:
Independent decision making better.” High performance Teamwork Future orientation

You Hear:
Cooperation “We can do even “Let’s get together on this.”

Fourth: Commitment
Typical Reactions
People appear ready to establish new routines, adapt to new systems,and help others learn new ways. People’s comfort with the change engenders more flexibility, creativity, and risk taking on the job. The change is not viewed as a “change” but “the way we do things around here.”

Effective Actions
Fully implement change plans and new directions. Support risk taking and innovation. Establish feedback loops so that information travels in all directions, and midcourse corrections can be made when necessary.

Three Stages of Change


Neutral Zone


Managing the Endings
 Identify Who’s Losing What  Accept the Reality and Importance of the Subjective Losses  Don’t be Surprised at “Overreaction”  Acknowledge the Losses Openly and Sympathetically  Expect and Accept the Signs of Grieving  Compensate for the Losses  Give People Information, and Do It Again and Again  Define What’s Over and What Isn’t  Mark the Endings  Treat the Past with Respect  Let People Take a Piece of the Old Way with Them  Show How Endings Ensure Continuity of What Really Matters

Managing the Neutral Zone
 “Normalize” the Neutral Zone  Redefine it  Create Temporary Systems for the Neutral Zone  Strengthen Intragroup Connections  Use a Transition Monitoring Team  Using the Neutral Zone to do Things Differently and Better  A time to question the usual and devise creative solutions  Provide training in discovery and innovation  Encourage experimentation  Embrace losses and setbacks as entry points for new solutions  Brainstorm new answers to old problems  Restrain the natural impulse to push for certainty and closure

Starting New Beginnings
The Four P’s:  Explain the Purpose  Paint a Picture of the outcome  Lay out a step-by-step Plan  Give each person a Part to play in the plan & outcome Rule Rule Rule Rule One: Be Consistent Two: Ensure Quick Successes Three: Symbolize the New Identity Four: Celebrate the Success

Effective Change Management
Creating a Vision
Mission Valued outcomes and conditions

Motivating Change
Creating readiness to change Overcoming resistance to change

Developing Political Support
Assessing change agent and opposition power Identifying key stakeholders Influencing stakeholders

Effective Change Management

Managing the Transition
Activity planning Commitment planning Management structures

Sustaining Momentum
Providing resources for change Building support system for change agents Developing new competencies and skills Reinforcing new behaviors

Jick’s Ten Commandments for Implementing Change
Analyze the Organization and its Need for Change Create a Shared Vision and Common Direction Separate From the Past Create a Sense of Urgency Support a Strong Leader Role Line up Political Sponsorship Craft an Implementation Plan Develop Enabling Structures Communicate, Involve People, and Be Honest Reinforce and Institutionalize the Change

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