1. Change Management

2. Contents
• Forces for Change
• Principles of Change
• Five Activities Contributing to Effective Change
Management
• Motivating Change
• Creating Vision of Change
• Developing Political Support
• Managing the Transition
• Sustaining Momentum
• Elements of Change Enablement
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3. Rate of Change
“When the rate of change outside
exceeds the rate of change inside,
the end is in sight”
Jack Welch
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4. Forces for Change...
“Knowledge Mergers &
economy” Virtual organizations acquisitions
Electronic Digital convergence Privatizations
commerce
“Information Superhighway”
... are transforming the world of business
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5. Rate of Success in Change Efforts
Moderately Successful 4%
Very Successful 9% Not Very
27%
Successful
Too soon to tell 27%
33% Unsure
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6. Two Sides of Change
Technical Side of Change
Technical Side of Change Human Side of Change
Human Side of Change
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7. Principles of Change
1. Change is a process that can be enabled, not
managed
2. The change process must be linked to business
and performance goals
3. Building capacity to change is a strategic
imperative
4. Building capacity for change is an evolutionary
process
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8. Principles of Change
5. Effective change processes require a systemic
view of the organization
6. The change process involves both organizational
and personal transitions
7. Behavioral change is a function of perceived need
and occurs at the emotional, not the intellectual
level
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9. Principles of Change
8. Resistance to change is predictable reaction to
an emotional process and depends on a person’s
perception of a change situation
9. A handful of change enablement best practices
account for the success of most change
processes
10.Change strategies are situational
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10. Five Activities Contributing to
Effective Change Management
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11. Five Activities Contributing to Effective
Change Management
1. Motivating Change
2. Creating Vision of
Change
Effective
3. Developing Political Change
Support
Management
4. Managing the
Transition of Change
5. Sustaining Momentum
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12. 1. Motivating Change
Sensitize
organizations to
pressure for
change
Reveal
Motivating change discrepancies
and creating between current
readiness for and desired states
change
Convey credible
positive
expectations for
the change
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13. Force Field Analysis Model
Restraining Forces for Change
Current
Situation
Driving Forces for Change
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14. Force Field Analysis Model
Strengthening
or adding
driving forces
Removing or
reducing
restraining Change
forces
Changing the
direction of
some of the
forces
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15. Group Exercise
• Take this opportunity to think of a situation in your organization
where Force Field Model could be demonstrated. Begin by
identifying a change being instituted in your organization.
• List the driving forces
• List the restraining forces
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16. Barriers to Change
20% 40% 60% 80% 100%
Resistance to Change
Limitations of Existing Systems
Lack of Executive Commitment
Lack of Executive Champion
Unrealistic Expectations
Lack of Cross-Functional Team
Inadequate Team and User Skills
Technology Users Not Involved
Project Charter Too Narrow
Source: Information Week, June 20, 1994
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17. Individual Resistance
Habit
Economic
Factors
Job Security Individual
Resistance
Fear of the
Unknown
Selective
Information
Processing
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18. Organizational Resistance
Threat to Established
Power Relationship
Threat to Established
Resource Allocations
Structural Inertia Organizational
Resistance
Limited Focus of Change
Group Inertia
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19. Four Phases of Transition
Denial Commitment
Past Future
Resistance Exploration
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20. Some of the Signs in Each Phase
Denial Resistance
• “How good things were in • Anger
the past” • Loss and hurt
• “It can’t happen here” • Stubbornness
• Numbness • Blaming others
• Everything-as-usual • Complaining
attitude • Getting sick
• Refusing to hear new • Doubting your ability
information
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21. Some of the Signs in Each Phase
Exploration Commitment
• “What’s going to happen to • “Where I am headed”
me?”
• Focus
• Seeing possibilities
• Teamwork
• Chaos
• Indecisiveness • Vision
• Unfocused work • Cooperation
• Energy • Balance
• Clarifying goals
• Seeing resources
• Exploring alternatives
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22. Overcoming Resistance to Change
Education and Negotiation
Communication
Overcoming
Participation and Manipulation Resistance
Involvement and Cooptation to Change
Facilitation and Coercion
Support
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23. 2. Creating Vision of Change
Bold and
Valued
Outcomes
Constructing
the Envisioned
Future Desired
Future
State
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24. 3. Developing Political Support
Assessing Change
Agent Power
Developing Identifying Key
Political Stakeholders
Support
Influencing
Stakeholders
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25. Roles in Organizational Change
These are individuals or groups with
Change
the power to determine that a change
Sponsor
will occur
These are individuals or groups
Change
responsible for seeing that a previously
Agents
determined change occurs
These are individuals or groups who are
Change
asked to change something (knowledge,
Target
skills, or behavior) as a result of the
change
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26. Influencing Key Stakeholders
A set of questions designed to profile an individual stakeholder:
• What is their source of power ?
Power
• What they can control: money, time,
resources, people, information ?
• Who they can influence: friends, admirers,
those who feel obligation ?
• Reluctant and occasional
What is their
• Make response to threats
style of using
• Assertive and direct
power?
• Deception and subtlety
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27. Influencing Key Stakeholders
Effect of Change
How does the • Changes their power ?
change really affect • Affects other needs ?
them? • Affects goals, objectives and interests ?
• Opposition, uncertainty or support ?
What is their likely
response to the • Action now or ‘wait and see’ ?
change? • Open action or hidden action ?
• Individual action or acting with others ?
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28. Influencing Key Stakeholders
Effect of Change
What would be the • Significant or limited ?
impact of their • Local or widespread ?
response? • Recoverable or permanent ?
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29. Influencing Key Stakeholders
Influencing Key Stakeholders
What would make • Information / understanding ?
them more • Involvement and ownership ?
supportive of the • Changes in planned actions?
change? • Direction from more senior managers ?
• Evidence of the success of the change ?
What would make • Personal threat ?
them less • Non-involvement in decisions ?
supportive of the • Personal rivalries ?
change? • Insufficient evidence in ‘trial period’
(defined by them) ?
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30. 4. Managing the Transition
Current Desired Future
State State
Transition
State
• Activity Planning
• Change Management Team
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31. Change Management Team : Roles Example
• Corporate Management
Head
(Executive Sponsor) • Key project accountability and ownership
• Report to CEO on project outcomes/success
Head • Coordinate overall change program
Organizational • Develop clear change strategies for change
Development • Responsible and accountable for overall success
(Change Leaders) • Develop individual and team change capability
• Provide clear communication to all key stakeholders
Communication Role on change related issues
(Change Agents) • Develop 2-way communication channels to foster
ongoing organizational change
• Provide expert HR advice on personal transitions and
Human Resources Role support
(Change Agents) • Provide Change Office & project based HR
infrastructure
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32. Change Management Team : Roles Example
• Take responsibility for key initiatives
• Coordinate project team
Project Leaders • Report to business unit GM and Change Office on
project progress
Leadership Advisory • Develop leadership change management capability
Role • Provide ongoing change advice to leaders
Process Co-ordination • Coordinate project infrastructure & integration
Role • Prioritize and plan overall project timeframes
• Establish clear project performance measures and
Performance
reporting systems
Management Role
• Manage ongoing project performance
• Report to Executive on overall progress
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33. Critical Skills of Change Agents
Understands Appreciates Anticipates
change diversity and manages
dynamics resistance
Has high Understands Manages
credibility power and multiple tasks
influence
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34. 5. Sustaining Momentum
Providing Resource for
Change
Building a Support System
for Change Agents
Sustaining
Developing New
Momentum Competencies and Skills
Reinforcing New Behaviors
Staying the Course
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35. Five Activities Contributing to Effective
Change Management
1. Motivating Change
2. Creating Vision of
Change
Effective
3. Developing Political Change
Support
Management
4. Managing the
Transition of Change
5. Sustaining Momentum
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36. Elements of Change
Enablement
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37. Elements of Change Enablement
n
tio
Realizing
n si ng
ra
i
ign
lT
Future
s
na
De
State
tio
Change
a
iz
Architecture
an
Communication
rg
O
g
Performance
Cultural
din
Culture Management
Capacity
g
Lea
Capacity
nin
gin
Leadership Capacity
Individual
Be
Leadership & Team
n
Capacity Capacity
Individual &
o
iti
Team Capacity
ns
Current
ra
g
State
rin
T
plo
al
Ex
Ending on
rs
Pe
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38. Elements of Change Enablement
Change Leadership
Architecture Capacity
Team & Individual
Communication
Change Capacity
Process
Performance Cultural
Management Capacity
Organizational Personal
Transition Transition
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39. Change Enablement – Best Practices
There is an explicit strategy and
Change
structure which define the nature and
Architecture
sequence of specific activities and
resources required to facilitate the
change process.
An infrastructure and plan is in place to
Communicat build awareness of change goals,
ion communicate progress toward
attainment of these goals, and
encourage collective ownership of the
change process and outcomes.
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40. Change Enablement – Best Practices
Human Resources processes -
Performance
recruiting, training, measuring and
Management
rewarding - are aligned to drive new
behaviors in support of the business
vision.
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41. Change Enablement – Best Practices
Leaders’ values and behaviors are
Leadership
aligned with the business vision; leaders
Capacity
possess the skills to drive the change
process to completion, and accept the
responsibility for doing so
Team & Actions have been taken to increase
Individual individuals’ and teams’ ability to enact
Capacity the business vision and operate
effectively in the new environment.
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42. Change Enablement – Best Practices
Cultural The organization has assessed the
Capacity alignment of the current culture with the
change process and built new values
and behaviors as appropriate to support
it.
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43. Recommended Further Readings:
1. Thomas Cummings and Christopher Worley, Organization Development
and Change, South Western College Publishing
2. Lynn Fossum, Understanding Organizational Change, Crisp Learning
Publication
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