Strategic Management notes

1. Managing Change: The Role of HR
Dr. Elijah Ezendu
FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,
PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

2. Learning Objectives
At the end of the course, participants should be able to do the
following:
 Identify role of HR in Change Management
 Identify the appropriate relationship between HR and internal
customers during a change project
 Explain the importance of change initiative
 Develop and implement strategies for managing change
 Conduct evaluation of change using appropriate analytical
tools
 Develop strategic change report

3. “A method of problem solving…..moving from
one state to another – from the problem state
to the solved state.” – Ramesh Mehay
“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

4. “Change Management is preparation for major
changes in the present and the future, as a
means of strengthening the agility, the
internal resilience, and the peripheral vision of
the organisation.”
- Peter Gumpert

5. Reactions of Human Beings to Change
• Denial
• Anger
• Antagonism
• Battle
• Bargaining
• Depression
• Acceptance

6. Why People Resist Change
i. Fear of the unknown
ii. Fear of becoming somewhat irrelevant
iii. Fear of redundancy
iv. Fear of aspiration negation
v. Fear of disconcerting work environment
vi. Fear of structural displacement
vii. Fear of failure in new path
viii. Clasping old habits
ix. Lack of trust and support
x. Lack of competence
xi. Lack of effective communication
xii. Learning Aversion
xiii. Peer Pressure
xiv. Obstinate Paradigm
xv. Short-termism
xvi. Wrong Timing
xvii. Organisational politics
xviii. Perception of poor benefits and reward
xix. Inhumaneness of top management
xx. Belief that the change is a fad
xxi. Belief in supposed superior alternative
xxii. Inability to identify the need
xxiii. Previous experience
xxiv. Inflexible and punitive implementation strategies
xxv. Non-participatory planning process

7. Three Human Disposition to Change

8. Exploratory Engagement
• List the tactics HR Leaders should deploy in
handling human resistance to change?
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9. Dave Ulrich Model of HR Roles

10. IPMA Model of HR Roles
Leader
Business
Partner
Change
Agent
HR Expert

11. “Of course change management isn’t restricted
exclusively to HR. Line managers are the
owners of change while HR can be seen as its
architect, facilitator and designer. Nobody
ever said that only HR manages change.”
- Dave Ulrich

12. Change management is a core HR Professional
Skill, leveraging on people dynamics and
organisational systems for planning, executing
and coordinating change-direction and human
capital control at the pre-change, active
change and post change phases.

13. HR as Change Agent
1. Provide impetus for conducting change at every
organisational stratum
2. Provide structured framework for change
3. Align top management with other employees
4. Develop requirements for appropriate organisational
agility
5. Identify and establish workable change management
processes
6. Reinforce change management communication as a
driver for attainment of effective change
7. Act as overwhelming influence for successful change

14. Operational Spheres of Change Agent
D
A
GF
E
CB
Change
Agent
Elijah Ezendu, Change Management

15. Requisite Abilities for Change Agents
• Diagnose Problems
• Build Relationships with Clients
• Ensure Vision is Properly Articulated
• Set Leadership Agenda
• Solve Problems
• Implement Plans to Achieve Change Goals
• Tolerate Ambiguity
• Manage Conflict
• Manage Projects
• Mitigate Resistance
• Manage Risk
• Coordinate Effective Communication
• Apply knowledge of business, products and work processes
Adapted from Dave Ulrich and Other Commentators

16. “Successful organizational change is about
coordinating the four different leadership
roles in an organization to produce employees
that are Ready, Willing, & Able to Change.”
- Randal Breaux, Managing Organisational Change

17. Change Agent in a Nutshell
• A Change Agent is a person tasked with creating
needed employee behavior change
• Successful organizational change is about
coordinating the four different leadership roles in an
organization to produce employees that are Ready,
Willing, & Able to change
• Good Change Agents know how to manage upwards
effectively.
• Only successful change projects can fuel long-term
improvement in an organization’s change
environment.
Adapted from Holland & Davis

18. Multiple Roles of HR as Change Architect

19. Two Phases of HR Role in
Change Management
• Planning
• Implementation

20. Planning Phase
• Evaluation of Viewpoint
• Strategic forecasting of Initiatives and
directions
• Development of business strategy for
initiatives and directions
• Determination of action points and elements
of execution
• Identification of performance targets for
action points.
• Establishment of communication plan

21. Evaluation of Viewpoint
The management should identify the need for
change in a specific area, and resolve its
attributes with the aim of protecting strategic
interest of the firm.

22. Strategic Forecasting of
Initiatives and Direction
This involves the use of analysis, synthesis and review for
determination of appropriate initiative and direction. Probable
initiatives should be evaluated using STEEPLED analysis, Issue
analysis, SWOT analysis, and Stakeholder analysis.
Industry direction should be identified by using four trajectories
of industry change analysis.
The specific forces of change in the industry and their impact can
be ascertained to a reasonable level by using driving forces
analysis.
Thereafter, several permutation levels of industry direction and
feasible action points of the organisation shall be appraised by
using Thirteen Forces analysis.

23. Change Initiatives
• Leadership Change
• Cost Change
• Quality Change
• Process Change
• Cultural Change
• Strategic Change

24. Four Trajectories of Industry Change Analysis
This tool was developed by Anita McGahan in
2004. It’s used for identifying and
understanding change in an industry, so as to
know whether to move out of it.

25. How to Conduct Four Trajectories of
Industry Change Analysis
• Identify all the core assets and core activities of an industry.
• Check-up threats to the core assets and core activities.
• Identify the trajectory of industry change occurring in the
industry using the format below:
(Radically: Core assets and core activities are threatened to
become obsolete
Progressive: Core assets and core activities are not affected.
Creative: Core assets are threatened but core activities are
stable.
Intermediating: Core activities are threatened but core assets
still have capacity to create value.
• Establish appropriate course of action.

26. Driving Forces Analysis
This tool is used for identifying the driving forces
of change and uncertainties in an industry, in
addition to assessing their impact, in order to
proffer solution.

27. How to Conduct Driving Forces Analysis
• Identify all the main driving forces in a
particular industry.
• Assess and rank the impact of each driving
force.
• Consider impact and proffer solution.

28. Identifying Driving Forces
Every set of stakeholders within a particular
industry and the ensuing macroenvironmental
factors would be examined in order to find out
associated driving forces.

29. Assessing and Ranking Driving Forces
A rating system of 1 to 10 (signifying weak to
strong) can be used to mark the strength of
each driving force as well as the ease of
influencing it. Thereafter, the sum of strength
and influence would be used to determine
rank of each driving force.

30. The Thirteen Forces
Suppliers
Industry
Competitors
Buyers
Substitutes
Potential
Entrants
Social
Shifts
Technological
Shifts
Demographic
Shifts
Ethical
Shifts
Economic
Shifts
Environmental
Shifts
Political
Shifts
Legal
Shifts

31. Implementation Phase
1. Lewin’s model
2. Kotter’s model
3. Lippitt, Watson and Westley model
4. Prochaska and DiClemente model

32. Lewin’s Model
• Unfreeze the status quo
• Movement from current level to a new
equilibrium
• Refreeze the new values to achieve stability in
new equilibrium

33. Kotter’s Model
• Unfreeze to overcome resistance, while
coordinating the employees towards the new
vision
• Movement by establishing lines of action for
every employee to participate and celebration
of short term success
• Refreeze by institutionalizing the new act

34. Lippit, Watson and Westley Model
1. Diagnose the problem.
2. Assess the motivation and capacity for change.
3. Assess the resources and motivation of the change agent. This includes
the change agent’s commitment to change, power, and stamina.
4. Choose progressive change objects. In this step, action plans are
developed and strategies are established.
5. The role of the change agents should be selected and clearly
understood by all parties so that expectations are clear. Examples of
roles are: cheerleader, facilitator, and expert.
6. Maintain the change. Communication, feedback, and group
coordination are essential elements in this step of the change process.
7. Gradually terminate from the helping relationship. The change agent
should gradually withdraw from their role over time. This will occur
when the change becomes part of the organizational culture

35. Prochaska and DiClemente Model
• Pre-contemplation
• Contemplation
• Preparation
• Action
• Maintenance

36. Change impacts activities, processes, systems,
techniques, work-flow streams and talents
thereby stimulating a particular level of
performance.

37. Causal Mode of Organisational Performance & Change
External
Environment
Individual and
Organisational
Performance
Mission & Strategy
Motivation
Work Unit Climate
Management
Practices
Organisational
Culture
Leadership
Task and Ind. Skills
Structure
Individual Needs
and Values
Systems (Policies &
Procedures)
Adapted from Burke and Litwin

38. Performance in Change
In accordance with Burke-Litwin Model, change
occurs in response to external environment and
affects transformational factors that in turn
impact transactional factors thereby influencing
motivation and finally determines performance.

39. The Human Resource Leader should carry out
responsibility of Change Architect by crafting
Strategic Change Report that shall act as
transparent and feasible prodder.

40. Strategic Change Report
This is a standard blueprint showing current
situation of an entity, required change, issues in
execution of change, and expected result within
specific timespan.

41. Contents of Strategic Change Report
• Current Corporate Condition
• Statement of Problem
• Statement of Solution
• Change Analysis
• Structure of Change Progression
• Performance of Change
• Expected Corporate Condition
Source: Elijah Ezendu, Change Management

42. Exploratory Engagement
What are Characteristics of Effective Strategic
Change Report?
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43. Change Management Case
The management of Angular Corporation had realised the
need for enterprise-wide exploration of Social Media. The
decision was based on effects of social media literacy and
applicability of social media as competitive advantage
through boosting of collaboration, innovation,
competitive intelligence, inductive learning, interactive
engagement, esprit de corps, business development,
intrapreneurship, corporate brand and techno-human
driven performance. You are required to develop a
Strategic Change Report.

44. Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise
in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing,
Interim Management, CSR, Leadership, Project & Programme Management, Cost Management,
Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud
Computing, eLearning & International Business. He holds proprietary rights of various systems. He is
currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special
Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board
of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training),
Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management
Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround
Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels;
Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles),
Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined
Shipping; Director of Programmes & Governing Council Member, Institute of Business Development,
Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of
Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of
Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola
University of Technology, Nigeria; Editor-in-Chief & Chairman of Editorial Board, Cost Management
Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of
Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business
Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is
an author & widely featured speaker in workshops, conferences & retreats. He was involved in
developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology
(Nigeria) and Jones International University (USA). He holds Interim Management Assignments on
Boards of Companies as Non-Executive Director.

45. Thank You