This document provides an overview of change management training. It discusses why change management skills are important for organizations and outlines the key aspects that will be covered, including understanding change management dimensions, designing change management steps, and leveraging change management. It also references models for managing organizational change, including Kotter's 8-step problem-centered model and the appreciative 4-D model. The training is estimated to take 2-2.5 hours and provides examples and activities to help participants apply the concepts.

2. Before you start… You can maximise each of the presentations to full screen view by clicking the arrows at the bottom right hand corner of the slide.

3. The term used to describe your organisation ’ s history and its creations , which have the potential to uniquely innovate and differentiate your products and services, is Enterprise Cultural Heritage (ECH). Would you like to learn more about the theory behind ECH? Academic paper: Aaltonen, S, de Tommaso, D, Ielpa, G, Heinze, A, Kalantaridis, C, Vasilieva, E and Zygiaris , S (2010) Power of the past and SME competitiveness: A European study , in: ICSB 2010, June 24-27, Cincinnati, Ohio, USA 45202. Available online http://usir.salford.ac.uk/12488/ Wikipedia : Open resources about Enterprise Cultural Heritage at Wikipedia page: http://en.wikipedia.org/wiki/Enterprise_Cultural_Heritage Open community : Join our ECH Open Community on LinkedIn: www.linkedin.com/groups?about=&gid=3743528&trk=anet_ug_grppro What is Enterprise Cultural Heritage (ECH)?

5. The four pillars of ECH management Intellectual Property Management Protect and exploit your intellectual property rights highlighting the heritage assets which can have commercial value for the present and future of your enterprise. Change Management Improve your ability to develop and implement routine processes, tools and techniques which help to innovate and thus continuously adapt to changing customer needs. Heritage Management Optimise your tangible and intangible heritage assets by developing routines and policies for their preservation, organisation and stimulation of present and future enterprise activities. Brand Management Develop and implement processes to track customers’ value judgements about your product or service that help you to better differentiate your enterprise from others by highlighting your heritage assets where appropriate.

6. Why do you need to learn about change management? Bearing in mind the brand management knowledge that you have acquired so far, you have identified important aspects from your customers ’ feedback which require your organization to change. However, to implement these changes you need to get all staff in your organisation to accept the need for change. Some staff may feel threatened by change and therefore resist it. It is therefore important to know how to manage people and communicate regularly so that the staff understand that the change is in the best interests of the organization and themselves. Change management skills are vital if you wish to make changes in your business strategies or objectives.

7. What is change management? Change management is almost always concerned with how an organisation leads its staff through a process of transition from the current to the desired state. Change management is about substantial alterations to the usual business routines. Change management includes processes, tools and techniques which help to guide the organisation to achieve the intended outcomes For example, the introduction of new technology to roasting of coffee or changing opening times of a business could be perceived as a substantial change. However, the introduction of new product prices would nor require change management – since it could just be announced and implemented by staff as part of their usual routines.

8. Activity: Your past change management experiences… Was the change managed in line with your expectations? What made this change a success? What made this change a challenge? Think about your last successful managing change experience, it could be one that was organised by you or someone else, and identify the following elements:

9. Change management requirements Successful change management projects tend to display four elements which help those leading the change process: Appreciation of how people react to change – people are different and not all are eager to embrace new ideas. An understanding of what provokes negative reactions – this helps in eliminating or reducing certain activities that will irritate staff. Development of the ability to deal with different people in different ways – this helps management to develop different scenarios and plans for special groups of individuals. Ability to develop and implement plans – good project management skills are helpful to control the change process. Break the change process down into small, short term objectives (or stages) which are realistic, achievable and measurable. Are any of these four similar to the points you made on the previous activity?

10. Change management description The operating environments of firms are changing rapidly which causes the need for accompanying change in organisations. This calls for new skills.

11. The engineering approach focuses on observable & measurable business elements such as job roles, processes, organizational structures and business strategies. Change management: Engineering vs psychological approaches The psychological approach brings to change management the tools to (1) understand and (2) manage people in change situations. The focus of business development has been gradually moving from an engineering focused approach to a more psychological approach .

12. There are a number of reasons for starting with the psychological approach, but the main reason is that those organisations that are keen to exploit their cultural heritage as a source of innovation are those that maintain their employees ’ job satisfaction. The knowledge and skills of your employees, in the craft sector in particular, can be very difficult to replace for any SME. Therefore, it is crucial that all employees are engaged in the change process and contribute to its development and implementation. Change management: Engineering vs psychological approaches This training material takes the psychological and people focused approach as the starting point for the change process which will be introduced in due course.

13. Key theories to help you in change management First you will get a chance to learn about the process of personal change. Then two different methods for managing organisational change will be explained. These are a problem-centred model (Kotter’s 8-step model) and an appreciative model (the 4-D Model of Change)

14. The process of personal change – “ bridging the gap between two peaks ” Change is a complex process encompassing a number of procedures that need to be carried out in order to achieve the desired state of affairs. Even though it touches upon a number of processes within the company, individuals are arguably most affected by the change. People have to cope with the change and incorporate it into their daily behaviour. The process of personal change has often been described as “bridging the gap between two peaks” the Start of Change and the End of Change; for more information read Chick (2009). How “deep the valley” will be depends on: a) how much support the employee gets from their superiors; b) how well the change is communicated; c) to what extent people are involved in the design and execution of change. Personal change is not easy to design and implement.

16. Looking at this curve, you can see how important it is for an individual to understand the impact that the change will have on their own personal view of the world and be able to work through the change. Managers should flatten the curve by providing the necessary training, communicating and managing the change process. Closing the gap between the two peaks

17. Activity: Closing the gap between the two peaks Please think of some practical examples of how you could help your employees… Change start: Change progress: Change end: s

18. Ideas for closing the gap between the two peaks Here are some ideas for you to think through… Change start: Make clear why this change is happening and get their buy-in early by involving them in the design of the change process. Making clear how this affects the individuals is important, hence private discussions with individuals are important. Change progress: Genuine change discussions and regular updates about the change are essential to stop the “grape vine” and rumour mill. All staff need to jointly identify any potential difficulties and allow these to be managed. Employee training and counselling opportunities can be offered. Change end: Celebrating a landmark, the achievement of the change; this could be in the form of rewards to your employees for putting up with the transformation. It is important to reinforce the new ways of doing things to make them permanent.

19. Managing organisational change: Main types So far we have talked about personal change, which is critical in Enterprise Cultural Heritage management. However, there are a number of other aspects when it comes to organisational change. Here are the main ones you may come across as a business…. Strategic change: Alteration of your main business objectives, long term commitments and plans. Technological change: Alteration of your workflow and processes and tools used to conduct business. Structural change: Alteration of the internal hierarchy of your management and operations. Cultural change: Alteration of attitudes & behavior of personnel to create improved group cohesion, dedication and loyalty to the organisation.

20. Managing organisational change: Main examples Here are some examples of organisational change types which most organisations face at one time or another… Strategic change: You decide to offer a new line of products or services to better serve your consumers and stop the production of existing offerings. The aim is to change the fundamental approach to doing business. Technological change: You invest in information technology systems to make your operations more efficient. The aim is to achieve optimum workflow and productivity. Structural change: Change of the hierarchy of authority, goals, structural characteristics, administrative procedures and management systems. Cultural change: This category of change entails 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.

21. Managing organisational change: Your organisation Think about your organisation, are there any of these change types that provide you with an inspiration for potential change in the way you can improve and sustain your business? Strategic change: Technological change: Structural change: Cultural change:

22. Managing organisational change So far we have talked about personal change, which is critical in Enterprise Cultural Heritage management. We then illustrated the main organisational change types which could inspire your business to alter its course. We will now examine two models which will help you to design and implement organisational change initiatives. These are the problem-centred model and the appreciative model. Problem-centered model In the problem-centred model of change, a gap between the existing and the ideal state of affairs is identified and then change processes are designed and implemented in order to reduce this gap. Appreciative model The appreciative model affirms the “best of what is” in the current organization by building on the organization’s existing strengths and developing processes that elaborate, develop and enlarge the organisation’s capacity. Read more on these two models in John Kotter, Leading Change, Harvard Business School Press (1996)

23. Problem-centred model: Eight steps The problem centred model has the following eight steps, we will discuss each one of these in the following sections… 1) Establishing a sense of urgency 2) Creating the guiding coalition 3) Developing a vision and strategy 4) Communicating the change vision 5) Empowering employees for broad-based action 6) Generating short-term wins 7) Consolidating gains and producing more change 8) Anchoring the new approaches in the culture

24. Problem-centred model: Step 1 Establishing a sense of urgency Developing a sense of urgency around the need for change – this will help you to exemplify the potential negative and positive effects and enable you to use these as discussion points with your staff; hence it offers the opportunity to better understand the need for change. Practical actions: Identify potential threats to your organisation, make potential scenarios of these threats becoming real in different ways. These scenarios can highlight the need for change. Based on each of these scenarios find opportunities and discuss these with your staff and other stakeholders. Essentially you identify the organisational threat and anticipate its consequences.

25. Problem-centred model: Step 1 Create urgency example You are running a coffee blending and roasting shop and you have identified a need for a technological organisational change. Through your brand management your consumers feedback that they are interested in buying your products online, a service you don ’t currently offer and you also don ’ t have a website. Moreover, your sales figures suggest that purchases in person and over the phone are slowing down. Your threat is therefore twofold : your brand is not managed online and your competitors could attract your customers to them since they already have a presence. Your potential scenarios are: a) No change: Do nothing and hope that the local customers still come to you to buy coffee (inertia kills!  ). b) In-house development: Invest in the necessary technology, develop and implement your online strategy by training your staff and offering your customers the same high level of service that they currently receive offline (and waste money on technology). c) Outsource online interaction: Contract a third party company to manage your online presence and sales (and share your profits). This is a hypothetical example of how you could use the first stage of urgency creation…

26. Problem-centred model: Step 1 Create urgency scenarios a) No change - b) In-house development - c) Outsource online interaction - Think what the consequences of these scenarios could be – this is the process that you would go through with your staff… Bear in mind that there is no one right answer but there are options which might be more appropriate to your organisation than to others…

27. Problem-centred model: Step 2 Creating the guiding coalition Once you have identified a course of action and the need for change, it is important for you to show leadership and convince others that change is going to happen and communicate how it will happen. Practical steps are: a) Identify the key individuals who are influencers on others, these are not always management but colleagues who are highly regarded by others due to their personal qualities. b) Engage these influencers to become your key “change agents” who will form a team and share the responsibility of shaping and driving the changes needed. It is therefore important that all affected staff groups are represented and take an active part in consultations and contribute mutually supportive insights of the organisation. OK, we assume that as part of your scenario negotiations you selected the option of In-house developments. This was selected perhaps because your staff feel that they are most aware of your organisational heritage elements and they would be best placed to communicate the important brand values to your customers… The next step is to form a coalition…

28. Problem-centred model: Step 2 Creating the guiding coalition example a) How can you Identify your key individuals? Well, if you are a very small company with 8 employees each one of your staff is key to some extent, since each holds unique knowledge or is able to easily influence others all need to be involved. In larger organisations with say 70 employees you might want to have a team size of seven people since a bigger team could make the decisions too difficult. You could identify these by inviting those who are mostly selected as a point of reference by others when advice is needed. b) How can you engage your key individuals? There are a number of ways that you might communicate with staff but you could set-up regular update meetings, say at the end of the week, every Friday morning one hour is dedicated to this particular change process… etc. Empower them – give them opportunities to influence what happens and when. Bear in mind that some of your change agents could also be external contacts who bring in expertise on a particular topic; in our example it is in-house online strategy development and implementation. This might result in you deciding to hire a new employee with a certain set of skills and knowledge. Developing a routine for change management is a good way to make individuals comfortable with the process. What does “building a strong coalition” mean in practice?

29. Problem-centred model: Step 2 Creating the guiding coalition your organisation a) How can you Identify your key individuals? b) How can you engage your key individuals? Think about your organisation and the example of technological change, how would you identify key individuals and what are your engagement options…

30. Problem-centred model: Step 3 Developing a vision and strategy Those affected by the change need to know what the vision is and the final stage of the identified transformation. A vision is a summary of the project and states the main aim, scope and timelines of the change. Those affected by the change are the only judges of whether it is clear or not and efforts have to be made to ensure that feedback and consultation is offered to manage this change. Practical examples of a vision could be having it written down on paper, in larger organisations it could be posters or electronic media in order reach out to each employee. The message of change has to be consistently communicated and reinforced by all change agents in all forums – staff meetings and actions of the leadership. OK, we have so far identified the change options and recruited change agents. Next we need to agree a clear vision!

31. Problem-centred model: Step 3 Developing a vision and strategy Aim: Using an e-commerce website we will be offering all our existing coffee types online to anyone in the world. Scope: The website will use the latest search as well as social media optimisation techniques to engage with customers online and develop a community around our coffee blends. This will require in the short term complete staff awareness of the website and its functionality. A new organisational role will be created, all existing sales staff will be trained to take on the role of website administration and online customer engagement and customer support. Timelines: The project will be completed by October in time for the holiday season since a number of our customers buy our coffee as a present for their friends at the holiday season and we want to make the most of that shopping period. Here is an example of a vision, which uses aim , scope and the timelines of the project to help all concerned to see where the organisation is heading.

32. Problem-centred model: Step 3 Practice writing your vision Aim: What are the main achievements? Scope: Who will be affected? Timelines: When is it going to start and finish? Complete the following statements for your own organisation if you were to implement any change that you might be thinking off.

35. Problem-centred model: Step 5 Empowering employees for broad-based action Any change brings challenges whether these are technological or people focused. It is useful to plan for these and be prepared to respond with relevant mitigation and elimination activities. One simple technique of risk management could be to work through, with your team of change agents, the possible difficulties you can foresee and anticipate what you could do to reduce these. At this state a change leader who is solely responsible for leading change can be appointed – this individual would need to be freed up from their existing duties. Additionally, a more sensitive monitoring of staff behaviour could be useful to identify those who need help embracing change and those who are doing well and need recognition. Regular change focused staff meetings can be a good way to introduce a routine to the process. Now that you are in the process of change as we said before not all staff will buy into this and some will create obstacles…

36. Problem-centred model: Step 5 Empowering employees for broad-based action Unhelpful discussion - Staff speculations about what is going to happen and why (also referred to as “grape vine” and “gossip”) Lack of co-operation - Staff refusing to co-operate and becoming stressed and depressed about the change process Sabotage - The new technology is not being used by staff in the appropriate manner Think about these obstacles. a) How likely are they to happen in your organisation? b) How could you reduce or prevent them from occurring?

37. Problem-centred model: Step 5 Managing resistance Listen: Accept that resistance is natural – this is why you are planning for it! Don’t panic – a calm approach can be helpful in these emotionally charged times. Be curious – find out why the resistance is occurring – it might be simply a misunderstanding or need clarification? Participation and involvement : By accepting that resistance is normal, you are inviting comments and feedback from those affected by change and offering them opportunities to engage and take part in it. These are some principles for dealing with resistance…

38. Problem-centred model: Step 6 Generating short term wins Any major change project can have a number of stages, which helps people to see progression so far and offers opportunities to celebrate and recognise achievement. Success motivates people to engage and makes others wanting to join in. A commonly used technique for simplifying change process is the breaking down large change projects into smaller more manageable parts. It can also be done visually, where you can simply write down “A” – where you are now and “B” – where you want to be and label individual stages needed to get from “A” to “B”: A --/--/--/--/--/--/---B Having broken down change into major sections it is easier for you to manage it…

39. Problem-centred model: Step 6 Generating short term wins Project breakdown example: A --/--/--/--/--/--/---B “ A” – No online presence “ B” – An e-commerce website 1- Conduct current staff skills audit 2 – Implement training where appropriate 3 – Pilot test the website sales 4 – Open all sales processes 5 – Promote the website and new services 6 – Review the changes made Having broken down change into major sections it is easier for you to manage it…

40. Problem-centred model: Step 6 Generating short term wins Your project breakdown: A --/--/--/--/--/--/---B “ A” – “ B” – 1 – 2 – 3 – 4 – 5 – 6 – … Think about your project and write down the key stages which will help you to celebrate short term wins…

41. Problem-centred model: Step 7 C onsolidating gains and producing more change One of the benefits of change is that the process itself can unearth more creative energy in your teams and if encouraged they might be eager to share their ideas for future changes. Seek new opportunities for change which do not fit your organisational vision. It is important throughout your change management processes to build in evaluation points as discussed in Step 6: Generating short term wins, and at each point see what went well and what did not. Share these lessons with your team and learn from them. Only those organisations that have change processes defined are able to continuously improve. The customers are a great source of ideas and inspiration - draw their feedback into your discussions. Change never stops, it is only the speed and level of change that will differ , it can help your business to innovate and encourage creative ideas shaping your competitiveness.

42. For example, you could encourage your staff to engage in reading the feedback from brand management activities and identify potential opportunities for change and discuss their ideas in a constructive environment. Hire, promote and develop employees which help you to drive the change vision forward. Document your change process. This could be a logbook or a diary – ideas which might sound out of reach today may be easily achieved tomorrow. Some organisations find that taking staff away from their working environment on “away days” is a good way to get them to think more clearly about the long term needs and demands of the organisation. This could be part of a yearly routine for all staff or monthly meetings for the management of the company. Setting change processes makes your business ready to react to unexpected changes ahead. Problem-centred model: Step 7 C onsolidating gains and producing more change

43. My processes currently in place: Processes which could be implemented are: Think about your business, what are the routines which you could encourage to build on change in your organisation? Problem-centred model: Step 7 Consolidating gains and producing more change

44. Problem-centred model: Step 8 A nchoring the new approaches in the culture Once the change is completed make it permanent – reinforce its existence in your organisational culture. Reward employees for their patience in what are difficult times – thank them and recognise their achievements. Achievements linking new behaviours and organisational success need to be recognised and also celebrated. To prepare for any future changes now is the time to manage your staff talent in line with your future projects and the potential need for skills such as leadership development and succession. Enterprise Cultural Heritage Management is not there to convert all businesses into museums – far from it – it is about making your heritage-rich business fit for purpose in a highly competitive environment. The internet has opened up barriers for instant global trade and your organisation has to manage this and many other challenges that are going to emerge in due course. “ Change is good ”

45. Activities which I can do to ‘fix’ any change in my organisation: How can you anchor change in your organisation? Problem-centred model: Step 8 A nchoring the new approaches in the culture

46. Where are we so far in change management training? So far we have looked at the 8 step model for problem centred change management. We will now look at the appreciation model.

47. Appreciative change model Appreciative models of change begin with the premise that the organization is doing something right and promote inquiry into the organization’s moments of excellence, life-generating values, and best practice. This is typically referred to as the positive core. Appreciative models affirm the “best of what is” in the current organization by building on the organization’s existing strengths and developing processes that elaborate, develop and enlarge the organization’s capacity. Appreciative inquiry is the dominant exemplar of an appreciative change model and is structured according to the 4-D Model of Change (Discovery, Dreaming, Dialogue, and Destiny). Read more in John Kotter, Leading Change, Harvard Business School Press (1996)

48. Appreciative change model: Step 1 Discovery The appreciative model ’s first step is to actively discover the things that make your organisation so good – what is appreciated and valued? Practice: Interview your staff members and ask them to comment on what they value in your organisation. Example: In a focus group ask employees to talk through those things: what about your organisation makes it a good environment? You could use prompts from customer feedback which you have collected as part of your brand management activities. In your company, are there any good values which your employees appreciate?

49. Appreciative change model: Step 2 Dreaming The appreciative model’s second stage is to collect your staff’s perspective aspirations on what their ideal organisation would be - how they would feel most at home. Practice: Staff focus groups which are conducted face-to-face or online if getting a number of them to talk about their dreams at the same time is difficult. Example: In a focus group ask your employees to work in groups of three and draw up their dream for your organisation. Can you think of letting your staff dream about your organisation?

50. Appreciative change model: Step 3 Dialogue The third step asks you to combine the information you have gathered so far and facilitate dialogue which is focused on practical commitments from your employees and your organisation in terms of what should be done. Practice: You could challenge your employees to organise their work in the most efficient way and challenge them to take the initiative. Example: If your staff feel that there is a need to introduce a flexible or home working policy, ask them how they would operationalize it? The idea of dialogue is to shift the ownership of the change to the employees with their consultation.

51. Appreciative change model: Step 4 Destiny The last stage of the appreciative model is formalisation of a decision upon which actions will be taken and converted to policies and procedures. Practice: Create an action plan as discussed in the “Problem-centred model: Step 6: Generating short term wins”. – (Slide 38 onwards) This stage merges the two approaches to change management which we have discussed in our training.

52. The role of change management in exploiting ECH As you have seen, ECH and change management have a twofold relationship with each other. ECH can be an inspirational source of change OR ECH can be used as a part of change implementation.

53. How could you successfully exploit your ECH? The tools of change management are crucial to increase the exploitation of ECH and successfully implement it in the company. These two examples help you to understand how you could use ECH management to help your business to change… Examples of aspects of change management bound together with the successful utilization of ECH are: Revival of a company ’ s vintage values and production processes – ECH here is the source of change where old recipes, patterns or designs are revived. Updating ECH with innovation to meet the needs of contemporary markets and customer requirements – ECH is taken to the next technological level. For example, a company might decide to have a social media presence for their heritage products; or a vintage machine is upgraded to comply with latest energy efficiency standards.

54. The acceptance of change: Communication & training Throughout this change management training material you will have realized that people are at the centre of change and they need engaging and nurturing – communication and training are therefore two important concepts to remember. Communication is related to creating acceptance & motivation as well as to clarifying common strategic goals and the rationale for the change. Do you have an effective means of staff communication? Personnel training is an essential part of the implementation of a new strategy. This is because people and their knowledge are the only source of sustainable competitive advantage. Individual personal development plans are therefore very important. Do you invest into your staff?

56. The development of this training material is a result of a collaborative project; MNEMOS, which researched this area of Quality and Innovation in Vocational Training for Enterprise Cultural Heritage. We would like to thank the following individuals who provided feedback and to improve this training material: Alex Avramenko, Alice Martzopoulou, Alison Kennedy, Anna Catalani, Carmela Gallo, Carolyn Downs, Costantino Landino, Eeva Laaksonen, Elisa Akola, Fiona Cheetham, Grazyna Rembielak-Vitchev, Joe Telles, Josef Svec, Niko Havupalo, Pawel Zolnierczyk, Peter Reeves, Soňa Gullová, Thomas Lemström, Tomas Lehotsky and Tony Conway. To learn more about ECH management you can visit www.enterpriseculturalheritage.org or join the ECH open community on LinkedIn: http://goo.gl/NXtFr This project has been funded with support from the European Commission. This publication reflects only the view of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein. Acknowledgements

59. The content included in this training material has been compiled by the MNEMOS project team from a variety of sources. The MNEMOS project team reserves the right to change the terms and conditions of use of this training material without notice and any time. The training material is produced for educational purposes only and does not offer legally binding advice. The training material as well as the www.enterpriseculturalheritage.org website are made available “as is” and “as available”. MNEMOS project team makes no representation and does not warrant: a) That the information selected for the training material and the website is comprehensive, complete, verified, organised and accurate; b) That it is licensed by the copyright or database right owner of any third party content to include or reproduce such content in this training material and the website; c) That the training material and the website will be uninterrupted and error-free; and d) That the server from which the training material and the website is available is free of viruses or bugs. Disclaimer This work is licensed under Creative Commons Attribution 3.0 Unported License .

60. End of Change Management training To leave the maximised screen press the ESC button on your keyboard. What would you like to do now? You can take a quiz to check your understanding of Change Management (to do this you need to be registered on the learning platform at http://training.enterpriseculturalheritage.org ) or You can take the next module which is Intellectual Property (IP) Management.