“if you run you stand a chance
of losing, but if you don’t run
you’ve already lost.”
–Barack Obama

CHANGE MANAGEMENT
-For Change Is The Only Constant-

outline
• Defining Change Management
• Organizational Change & Entrepreneurship
• Introducing Change In An Organization
• Leading Strategic Change
• Possible Dimensions Of Change
• Employees‟ Perception Of Change
• Hurdles & Demerits Of Change
• Overcoming The Hurdles
• Merits Of Change
• Conclusion

Change Management:
The Process, Tools and Techniques to
manage the People-side of Change to
achieve a Required Business Outcome.
Tim Creasey
Director of Research and Development
Prosci Research

Change Management:
„The Coordination of a Structured Period of
Transition from situation A to situation B in
order to achieve lasting change within an
organization.'
-(BNET Business Dictionary)

Entrepreneurship & Organizational Change
Recognizing Entrepreneurship:
Not confined to the context of new venture creation or the
management of small businesses.
Organizations of all sizes, and in all sectors, are requiring people
to respond in ways that could be characterized as „entrepreneurial‟.

Corporate Entrepreneurship and Strategic
Management
Firms need both Diversity and Order in their strategic activities
to maintain their viability.
-Robert A. Burgelman

DIVERSITY
• Strategic initiatives of participants at the
operational level.
ORDER
• Imposing the concept of strategy on the
organization.

Middle level managers play a crucial role in this through combining their
support for autonomous strategic initiatives with various capabilities of the
firm, and by conceptualizing strategies for new areas of business.
Top management's contribution exists in strategic recognition rather
than planning.
Top management should control the level and the rate of change rather than
the specific content of entrepreneurial activity.

Conclusively, new Managerial Approaches and Innovative
Administrative Arrangements are required to facilitate the collaboration
between Entrepreneurial Participants and the Organizations in which
they are active.

Introducing Change
Business Process Redesign.
Management of Change: A narrative perspective of
Management Development.

Business Process Redesign
A research on the models of change tactics that an organization uses while
designing and implementing change.
Accomplished through studying the approaches to change (evolutionary
& revolutionary) at their different levels, that is, early and implementation
phase of the initiatives.

Revolutionary And Evolutionary Models Of
Change
Evolutionary Change models assume that change is adapted to the pace and
capabilities of people and widespread, frequent, and open communication are a
key tactic to enable incremental change.
These models also assume that change cannot be fully planned at the outset and
those who will be affected by the change must lead and participate in the
change process.

While according to the radical change theorists, a fundamental organizational
change cannot be accomplished piecemeal, gradually, or comfortably.
Rather, the change must unfold rapidly. The creation of new forms and
processes requires difficult compact revolutions resulting in a Revolutionary
Change.

BPR may be a revolutionary approach to design while the realization of
the design might take a long time and involve an evolutionary approach.

COMPARISON
Both evolutionary and revolutionary models advocate having senior executive
support or sponsorship of any large-scale change initiative.
Both argue for clear objectives and vision.
The revolutionary models call for leadership from outside the organization,
while the evolutionary models for leadership from the existing senior
management.
The evolutionary tactics call for broad participation of the current process
owners and contributors in the design and implementation whereas the
revolutionary tactics call for the exclusion of the current process owners and
users.

The pace of change is dependent on the process - that is, tactics, or techniques
used to encourage an organization's members to accept and to enact a proposed
change.
Evolutionary Change Process: Complies with current organizational values
and norms, skills, structures, and incentive systems.
Revolutionary Change Process: Change that challenges or undermines the
status quo, creates a new vision, and accomplishes fundamental change in
values and norms, work practices, and structures.

Scope of Change
The scope of change denotes the organizational reach of change - whether the
impact of change will be contained within one function, one organization, or
will cut across organizational boundaries.

Technology & Organizational Change
The revolutionary and evolutionary perspectives also require different
sequencing of technological changes.
Under Evolutionary change, a gradually staged socio-technical change occurs.
While the Revolutionary change assumes simultaneous change of both
technical and social systems .

Change Tactics
The categories of change tactics observed in BPR initiatives are as follows:
Leadership;
Employee Involvement;
Communication;
Motivation for BPR;
Change of Current Structure and Culture;
IT Change;
Status of Initiatives.

The affects of BPR are so widespread that a manager explained, "BPR is
about changing the engines of a flying airplane.“
A revolutionary change process might not be feasible given the risk and cost
of revolutionary tactics.
Sustainable incremental improvement via an evolutionary change process
might be what companies should sometimes expect as success from BPR.

“Never too old, never too bad, never too late, never too sick to start from scratch
once again.” -Bikram Choudhury.
“Even if you stumble, you‟re still moving forward.”
“Lay a firm foundation with the bricks that others throw at you.” -David Brinkley
“If you do what you‟ve always done, you‟ll get what you‟ve always gotten.” -Tony
Robbins
“If you run you stand a chance of losing, but if you don‟t run you‟ve already lost.” –
Barack Obama

Why Change Fails?!
1. Underestimate the system‟s complexity.
2. Management change knowledge/ skills missing.
3. Lack of accountability.
4. Management resistance/time pressure.
5. Participative management skills lacking.
6. Fatal assumption made—that it is easy/normal.

The Three Steps to Leading and Mastering
Change
Step 1: Plan-to-Implement Day.
Step 2: Strategy Implementation And Change.
Step 3: “Re-Plan Annually.”

Step 1: Plan-to-Implement Day
Iceberg theory:
 Reflects the natural reality of everyday life.
The three elements:
1. Content
2. Process
3. Structures

Step 2: Strategy Implementation And
Change
There are three agenda items:
1. Continually scanning the changing environment for
implications.
2. Tracking, reporting, and problem-solving “Key
Success Measures” (or success measures/goals).
3. Reviewing the status of core strategies and top
priority actions.

Step 3: “Re-Plan Annually”
 Reviewing the environmental changes, vision/values, and
updating.
 Updating the success of the yearly Strategic Management
Change System/Cycle itself and the Change Leadership Team
effectiveness.
 Reviewing and problem-solving the status of the alignment
and attunement leverage points.

Levels of Learning and Effectiveness
1. Individually (self change).
2. Interpersonally (one-to-one).
3. Team-wise (within departments).
4. Cross-functionally (projects between departments).
5. Organization-wide (and cultural change).
6. Organization-environment (the supply chain) and
strategy.

ROLES OF STAFF SUPPORT
AND EXTERNAL CONSULTANTS
As a strategist, facilitator, the external consultant
helps the executives, the Strategic Project Teams, and
the Strategic Change Leadership Team achieve their
objectives.

HOW TO GET STARTED WITH
STRATEGIC CHANGE?
Three main options to get started with creating your customer-
focused organization:
 OPTION A—Plan-to-Implement Day
 OPTION B —Plan-to-Plan Day
 OPTION C—Tailored to Your Needs

Using Real Time Strategic Change for
Strategy Implementation
Introduction
Explanation:
1. The challenges of strategic planning
2. Large group interventions
3. Large group theory
4. Real Time Strategic Change
5. The two examples
6. Conclusion

The Challenges Of Strategic Planning
Strategic planning:
Planing for the long term, that is, three to five years into the
future.
Several challenges:
 Creating a plan that is breakthrough in its orientation rather
than “more of the same.”
 Must create breakthrough strategies.
 Must align all internal and external resources around the plan.

Large group interventions are one set of methods for
addressing these challenges.
These approaches involve anywhere from 30 to
hundreds individuals.
In the process of working collaboratively, the
organization can more quickly achieve “one heart and
one mind”—a key factor in organizational alignment.

Large Group Theory
There are four dynamics of large group interventions:
1. The dilemma of voice (amount of individual airtime and the
feeling of being heard),
2. The dilemma of structure (amount needed to manage anxiety in
the room and active individual participation),
3. The egocentric dilemma (each person acting as though his or
her reality is the only true reality), and
4. Affect contagion (experiencing and expressing feelings
because one feels them vicariously in others).

Change And Culture
Change is highly culture sensitive. The effect of the
cultural differences on change management.
The Hofstede 5 dimension model :
1. Power distance
2. Individualism vs. collectivism
3. Masculinity vs. femininity

4. Uncertainty avoidance
5. Long term vs. short term orientation.

Six Clusters Of Countries
1. Contest cluster (Anglo-Saxon countries) they work
for their self-interest they will resist change to its
maximum.
2. Network cluster (Netherland and Scandinavian
countries) they believe in their leader and adopt the
change suggested by him.
3. Pyramid countries have the interest defined by the
top management.

4. Family clusters look for the common interest of all.
5. Solar cluster is same as pyramid and family cluster.
6. Well-oiled machine cluster (Germany and Austria) to
define new directions creditability must be increased
from a person to another.

Managing The Process Of
Organizational Change
Three important process-oriented perspectives:
Change is typified by certain patterns that affect
organizations similarly.
Organizations are challenged to maintain their entities
and identities throughout a transition.
Change affects the individuals within an organization
more fundamentally than it does the organization as a
whole.

Patterns In The Change Process
The First Step :
Unfreezing the present level of behavior i.e creating motivation and
readiness for change. Three ways for this:
1. Disconfirmation, when members of the organization experience a need for
change which, in turn, motivates them to embrace change.
2. Induction of guilt or anxiety; causes perceived gap between what is not
currently working well and a desired future state
3. Creation of psychological safety, providing an environment in which
people feel safe enough to experience disconfirmation and induction.

outline
The Second Step:
Movement i.e. taking action to change the organization‟s social
system from its original level of behavior or operation to a new
level.
Integration Of Change Process Models
Dimensions of the model:
 • Individual response to change
 • The general nature of change
 • Planning change
 • Managing the people side of change
 • Managing the organizational side of change
 • Evaluating the change effort

CONCLUSION
Need for a “Strategic Change Management System”
as a new way to run business to develop a high-
performing, customer-focused organization.
The method of large group intervention to meet
challenges. Also, active support and involvement of
senior management.

While changing plan, see the 5 dimensions; applying
a change plan, different rules must be followed for
the different countries.
HR professionals show most agreement with the
integrated process model of the change process.

Dimensions of change
• Continuous improvement and stability.
• Change programs can take following forms:
1. Structural change- reconfiguring the
organization .
2. Cost-cutting change- elimination of non
essential activities or reducing costs out of
operations.
3. Strategic purpose change- changing
strategic intent, core purpose, or mission.

4.Process change

• These programs concentrate on altering how
things get done.
• Examples include re-engineering a process
or introducing a new technology.
• IT enabled change processes are different
from general change processes.
• They create unique issues for managers and
managers must know how to integrate these
processes, technology and organization in
order to achieve organizational goals and
objectives.

• This change reaches every department.
• It reduces cycle time for processes.
• It includes knowledge and power shift .
• Work methods for negotiation decision
process, inventory control and customer
delivery service have been changed and
improved.

Principles for IT enabled
change
• Systematic process.
• Managing equilibrium.
• Enough energy for change.
• Analyzing size of change effort.
• Hiring it champions.
• Stakeholder commitment.
• Organizational prototyping
• Reviewing whole change process.

5. Cultural change
• These programs focus on a company's
operating values, norms of behavior, and the
relationships.
• Examples of cultural change include
 Command-and-control to participative
management.
 Inwardly focused ‘product push’ mentality
to an outward-looking customer focus.
• What people need to change is their belief
and psychology. .

Prevailing conditions of
the organization
• The prevailing thinking about the
psychology of organizations differs.
• The „„feel of an organization‟‟ reflects both
its climate and culture
• One firm „„feels‟‟ like a dynamic and
interesting place to work, while another
„„feels‟‟ dull, uninspired and unproductive.

Organizational Climate
• Climate is based on the policies, practices,
procedures and routines inferred by its
people about organization and the goals it
pursue.
• Four climate dimensions:
1. The nature of interpersonal relationships
2. The nature of the hierarchy
3. The nature of work
4. The focus of support and rewards

Organizational Culture
• Firmly implanted beliefs and values of
organizational members .
• Changing the climate is important to
changing what an organization‟s believes
and values.
• When practices are changed, employees‟
values and beliefs are also changed.

MODELS AND METHODS OF TOTAL
ORGANIZATIONAL CHANGE (TOC)
• Designed to affect multiple policies,
practices, procedures, rewards.
• It can be sustained and can enhance
organizational health over time.
• It change that affects the psychology of
everyone in an organization.
• Different approaches lead towards
TOC.

Change Based on the Human
Potential Philosophy
• Related to relationships, sensitivity and
self actualization of employees in
organization.
• This perspective rests on a number of
assumptions :
 People desire growth and development.
 People value interpersonal interaction.
 People need trust, support, and
cooperation to function effectively.

Change Based on the
Sociotechnical Philosophy
• Effective change is a product of integrating
the social and technical aspects of work.
• It does not emphasize
 What employees believe the
organization‟s goals to be?
 What kinds of behaviors are rewarded and
supported?

Change Based on the
TQM Philosophy
• TQM focuses on the customer and requires
every facet of the organization to be involved.
• It emphasizes the broadest range of issues:
o Preplanning during the product design
o Training employees
o Encouraging employees
o Working with suppliers
o continuous improvement

How to implement TOC?
• Ensure that the organization is prepared to
handle a major organizational change.
• Be aware that proposed TOCs require
tremendous amounts of time and effort.
• Plan the TOC in as much detail as
possible.
• Pay particularly close attention to the
organization‟s reward system.

Attributes of weak management
that inhibit change:
• Strict rules and regulations from the top
management.
• Not being able to update operating systems
and technology.
• Dealings with lower-level employees are less
than completely honest and open, sometimes
harsh.
• In past, management has failed to articulate
its objectives.
• Avoids making tough decisions.

Who is a Change Agent?
• The change agent is one who manages
organizational roles, responsibilities,
structure, output, resources, systems,
technology and processes.
– According to this definition managers in a
organization are the biggest change agent as
they control and manage all the factors
mentioned in the above definition

The Linear-Rational view of
Change
• Change in organisations is perceived by
internal change agents in this study as
being “triggered by change in
environmental conditions” such as
competitive pressures, legislation,
environmental and safety regulations,
world-wide economic threats, key
stakeholders and leadership preferences
and technological advancements.

• Common problem that mangers deal with is
that managers have limited resources and
they also have to keep in mind the
organizational priorities.
• Managers feel frustrated when organizations
don‟t respond to their proposed plans, which
leads to disappointment and they don‟t make
any new plans.

• To bring a good change that is favourable
for the organization we need a good
change agent.
– It means we need a good management that is
capable of bringing a sustainable change in
organization.

• Change is difficult to implement in
organization when subordinates or front
line employees don‟t trust management.
– Research results indicate that Engineers in the organization see
administrators as ones who are deeply engaged in politics and
detached from actual change and top management is seen as
someone who is wasting resources and who are detached from
actual problems at production levels.

Reaching and
Reaching and Changing Frontline
Changing Frontline Employees
BY T.J. Larkin and Sandar Larki (Harvard Business Review)

• Your actions will demonstrate your values
much more clearly than words.
• Communicate face to face.
– Don‟t use videos or Booklets.
– Videos are ranked 11th among 14
communication methods in U.S

• Immediate supervisors are best change
agents.
– Because they interact more with front line
employees than management.
– Employees have more trust on supervisors
than on senior management.

Hurdles In Change Management Phenomena

Articles consulted..
How To Deal With Resistance To Change
By Paul R. Lawrence
Driving A Radical Change
By Joseph Isern And Caroline Pung
The Inconvenient Truth About Change
By Scott Keller And Carolyn Aiken
The Hard Side Of Change Management
By Harold L. Serkin, Perry Keenan, And Alan Jackson Harold

Fact about change in
organization
• 17 years ago the percentage of successful
change adoption in organization was only
30%.
• Today its still 30%.

Reasons for failure of
change
• Reluctance to change.
• Use of un appropriate approaches.
• Management failure.
• Focus on soft side or issues of change only..
• Failure to communicate the importance of the
elements of change.
• Failure in sustaining the change.
• Irrationality of people.

• Unpredictability about the nature of the
people.
• Emphasize on the employees attitude and
management behavior.

Solution to the hurdles in change management.

Articles
• How To Deal With Resistance To Change
By Paul R. Lawrence
• Driving A Radical Change
By Joseph Isern And Caroline Pung
• The Inconvenient Truth About Change
By Scott Keller And Carolyn Aiken
• The Hard Side Of Change Management
By Harold L. Serkin, Perry Keenan, And Alan
Jackson Harold

Formation of a DICE
network
• Duration
• Integrity
• Commitment
• Effort

Meeting The Transformational
Needs Of The Organization
Factors to be focused
• Process
• Engine
• Leadership
• Aspirations
• Design
• Delivery
• Energy

Strategies to mold the behavior
of employees towards change
• Creating a compelling story
• Role modeling
• Reinforcing mechanisms
• Capability building

Redefining change
 Broadening Staff Interests
New Job Definition
New Look at Resistance
Using Understandable Terms

Benefits of Change Management to the organization

• Quick and faster response to customer
needs.
• Better alignment of existing resources.
• Assessment of the over all impact of change.
• Reduced time.
• Reduced possibility of unsuccessful events.
• Increased employee performance.
• Increased and effective customer service.
• Anticipation of challenges and effective
response.

Benefits for employees
• Management and staff support .
• Organizational effectiveness and efficiency is
maintained and improved.
• Correct perception of the change for staff and
public.
• Efficient communication strategies.
• Minimizes resistance to change
• Improved morale, productivity and quality of
work.

• Improves cooperation, collaboration and
communication.
• Reduced stress and anxiety.
• Encouragement to stay loyal to the
organization.
• Increased employee acceptance of the
change
• reduced disruptive aspects

Successful change management example
Apple
Introduce new features slowly
• Constant Improvement.
• Comparison of the new product with the
previous one.
• They release features when they are ready.
• e.g.
• Introduction of App store after fully testing the
environment by releasing first Iphone.

Not being Caught up in
fads
• Working on features slowly regardless of
how many new products competitors
introduce.
• Mainly making products for general
population than Niche Market.
• e.g. Apple doesn‟t claim to use 8 mega
pixels cameras.

Making design and user
experience a priority
• Growth of iOS from 1.0 to 6
• Subtle and minute changes.
• Common system that works across all its
devices: iPods, iPhones, Apple TV, and
soon Macs
• No extensive user manuals
• Well designed operating system and
applications.

Change Management in
Apple
• Acceptance of change throughout the
organization.
• Implementation of change with more efficient
results.
• Reduced incidents affecting the efficiency
and maintained productivity.
• Successfully managing the employees
through change process.
• Instilling confidence about next project.
• Controlling the cost of change significantly.
• Evaluation of strong and weak areas.