Change is a Continuous Process Where are we ? Where How are are we we doing? going? Organizational Change The main reason why change is often difficult in organizations is because the people who have been successful in the current culture are the very ones who must institute the change. Organizational Change PLAN ACT DO CHECK PLAN – Recognize a perceived need for change – Vision Statement • Sets the direction for change • Specifies how the organization is going to respond to the perceived need for change – Gap Analysis • Measurable difference between where the organization is and where it wants to be – Change Plan • Start small so you don’t lose control DO – Communicate the Vision Statement • It takes time for people to hear, understand, and believe the message • People will change if they understand why they have to - What’s in it for me? – Explorers • Open to new ideas – Rare – Conservatives • Will change if you show them why – Majority – Inhibitors • Accept change only because they have to CHECK – Reevaluate the Vision • Make sure conditions have not changed • Don’t let people forget the vision – Evaluate the Direction of Change • Make sure you are measuring the right things – Failures & Plateaus • Usually caused by poor planning • If you’re standing still, you’re really moving backwards ACT – Continuous Improvement • Look for additional areas for change • New changes should be easier – Change is now part of the organization’s culture. • Change should have short-term results – Society is changing so fast you need to see some results in at least 6 to 12 months – People will get frustrated if goals are too long-term 100 Years Ago… 1. The average life expectancy in the United States was forty-seven. 2. Only 14 percent of the homes in the United States had a bathtub. 3. Only 8 percent of the homes had a telephone. A three minute call from Denver to New York City cost eleven dollars. 4. There were only 8,000 cars in the US and only 144 miles of paved roads. 5. The maximum speed limit in most cities was 10 mph. 6. Alabama, Mississippi, Iowa, and Tennessee were each more heavily populated than California. With a mere 1.4 million residents, California was only the twenty-first most populated state in the Union. 7. The tallest structure in the world was the Eiffel Tower. 8. The average wage in the US was twenty-two cents an hour. The average US worker made between $200 and $400 per year. 9. A competent accountant could expect to earn $2000 per year, a dentist $2500 per year, a veterinarian between $1500 and $4000 per year, and a mechanical engineer about $5000 per year. 10. More than 95 percent of all births in the United States took place at home. 11. Ninety percent of all US physicians had no college education. Instead, Why Do Employees Resist Change? – Managers and employees view change differently • Managers – Change is an opportunity for growth • Employees – Change is disruptive and it upsets the balance – Personal Compacts • Employees and management have reciprocal obligations and commitments to one another Expectancy Theory People ask themselves: 1. What’s in it for me? 2. How hard will I have to work to get it? 3. What are my real chances of getting it? 4. Do I really want what’s in it for me? Reaching and Changing Frontline Employees – Don’t communicate values, communicate facts – Communicate values through your actions • Trust, Teamwork & Tomorrow – The most effective way to communicate change is informally, face-to-face, one-on-one! – Spend 80% of your change process time, money and effort on front-line supervisors.
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